AGENDA MEMORANDUM

Meeting Date:           October 11, 2010

From:                          Raymond S. Sharp, Environmental Services/Public Works Director

Subject:                      Resolution authorizing staff to proceed with demolition of structure at 216 S. 6^th Street and conversion of the site to staff parking

Staff Recommendation:

Staff recommends approval of the demolition of the structure at 216 S. 6^th Street and conversion to staff parking.

Analysis:

Resolution 7593, March 13, 2006 authorized purchase of the properties at 216 S. 6^th Street (former Tru-Temp site).  The site was purchased with the intent of expanding on-site parking for city staff located at the Main Water Plant.  At present, the water fund leases a vacant lot on 6^th Street from Lifestream for parking.

Water staff has occupied the structure at 216 S. 6^th Street on a temporary basis until such time as the plant operations center at Canal Street was fully staffed, and other location changes were made.  Those have been completed and the building at 216 S. 6^th Street has been vacated.

At the time of acquisition, the structure was in poor condition.  Any significant, long term use of the structure would have required substantial capital investment; given the temporary use of the building, the cost of renovation was disproportionate to the benefits.  During this past summer, the condition of the structure was once again reviewed by a competent general contractor.  Those findings corroborated the original analysis.  The contractor found substantial structural deficiencies: the truss and framing systems have long term insect damage that would require a complete rebuild; the slab and stemwall are in questionable condition, with visible cracks.  In addition, the electrical system would require substantial upgrading to conform to code.  Given that the cost of rehab is estimated to be nearly double the value of the site, there is no reason to consider rehab.

On August 25, 2010, the request for demolition of the structure was presented to the Historic Preservation Board of Leesburg.  After due consideration, the Board voted unanimously to approve the City’s request for demolition of the structure.

Staff is seeking authorization to proceed with demolition of the structure and conversion of the site to staff parking.  Doing so will offset two significant costs to the water fund:  First, the cost of utilities averages about $8,400 per year; second, the cost of the lease of the vacant lot for parking is an annual expense of $3,900.  Thus, demo of the structure will eliminate $12,300 of annual costs to the water fund.

The cost of demolition is $9,550, based upon current quotations.  The asbestos survey has been completed, with no adverse findings.  Staff will provide fill as necessary to convert the site to parking.  Costs of paving and fencing are estimated at $5,000.  Demo and restoration costs total $14,550, or slightly more than one year of recurring costs for utilities and lease. 

Options:

1.  Authorize staff to proceed with demolition of the structure at 216 S. 6^th Street and conversion of the site to staff parking; or,

2.  Such alternative action as the Commission may deem appropriate.

Fiscal Impact: 

The cost of demo and restoration slightly exceeds the annual average cost of utilities and lease payments, which will be eliminated.  Therefore, beginning in FY 11-12, there will be a net reduction in costs to the water fund.  The cost of demolition and conversion of the property to a parking lot was not specifically budgeted.  A budget adjustment will be necessary to appropriate fund balance to cover this expense.

Submission Date and Time:    10/8/2010 5:19 PM____

Department: Environmental Services Prepared by:  R. Sharp                      Attachments:         Yes____   No  X Advertised:   ____Not Required ______ Dates:   __________________________                      Attorney Review :       Yes___  No ____ _________________________________            Revised 6/10/04

Reviewed by: Dept. Head rss Finance  Dept. ____JB____________                                    Deputy C.M. ___________________                                          Submitted by: City Manager ___________________

Account No. _043-3099-533-6310___ Project No. __430006___________ WF No. ____WF 686694 jobs 1 & 2 Budget  ______________________ Available _____________________

RESOLUTION NO._______________

A resolution of the City Commission of THE CITY OF Leesburg, Florida, authorizing staff to proceed with demolition of the structure at 216 S. 6th Street (former Tru-Temp building) and conversion of the site to staff parking for approximately $14,550.00; and providing an effective date.

BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:

            THAT City Staff is authorized to proceed with demolition of the structure at 216 S. 6^th Street and conversion of the site to staff parking..

 THAT this resolution shall become effective immediately.

PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the  11^th  day of October 2010.

                                                                                    __________________________

                                                                             Mayor

ATTEST:

_____________________________________

City Clerk