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City purchases land for future conference center

Labor agreement will have employees pay part of CalPERS benefit
By: Sena Christian, The Press Tribune
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The city of Roseville is moving forward on efforts to attract a hotel and conference center through a purchase agreement of 20 acres of property adjacent to Westfield Galleria with frontage visible from Highway 65.

During Wednesday's meeting, Roseville City Council unanimously approved the purchase of the parcel at 310 Conference Center Drive in the North Central Roseville Specific Plan for the purpose of acquiring five acres on the site for commercial development. Councilman John Allard was absent.

“I think it sounds really good,” said Mayor Pauline Roccucci. “I think it’s an opportunity we’ve been looking at to have a potential convention center. This gives us a good opportunity at a great price.”

The sale price for the 20-acre property is $1.9 million plus closing costs, which amounts to about $2.20 per square foot.

The city will enter into a purchase agreement with Sterling Savings Bank, which holds title on the property, and Fulcrum Property Corporation, who is assigning their portion of the purchase agreement to the city and will provide financing for the city’s part of the parcel.

The city will enter into a loan agreement with Fulcrum for $1.9 million and closing costs. The term of the loan is five years at an interest rate of 5 percent.

“Acquisition of the site enables the property to realize its full economic potential (and) the city can secure a 5-acre site suitable for commercial development,” said Assistant City Manger John Sprague.

Fulcrum has a five-year option to purchase 15 acres from the city, and will make annual option payments of $50,000 to the city, which are non-refundable and not applicable to the purchase cost. As part of the agreement, the city will retain five acres of the site.

Other costs associated with the property are expected to be less than $100,000 annually, which will be partially offset by the payments. The city estimates its annual cost will be less than $50,000.

Labor agreement reached

The city and management/confidential group entered into a new one-year labor agreement that will require these employees to pay half of the employee portion of their retirement benefits to CalPERS — about 4 percent — in 2012.
These employees will pay the full contribution of 8 percent to 9 percent by January 2013.

“Savings resulting from this change will be very significant,” said the city’s Human Resources Director Stacey Haney.

The change will save the city $1.73 million through fiscal year 2013.

Currently, the city’s International Brotherhood of Electrical Workers (IBEW) are paying the full 8 percent employee share to CalPERS. The city pays the full contribution for Roseville Fire Fighters, Roseville Police Officers Association and Roseville Police Association.

Effective Dec. 31, the city will pay the full 8 percent employer-paid contribution for Local 39 represented employees for a cost of $459,170.

In July 2003, the council authorized the city to pay the 8 percent contribution on behalf of Local 39 employees. In 2009, the council approved an agreement that these employees would pay 4 percent of the contribution formerly picked up by the city. The city agreed to return to paying 8 percent in 2011.

Here’s a look at some other items approved during the Dec. 21 council meeting:

Recruitment for public works director: The city will use Bob Murray and Associates to recruit a new public works director for a cost of $17,500 plus expenses not to exceed $5,800. Former Public Works Director Rob Jensen was promoted to assistant city attorney in December 2010.

Contract award for Fire Station No. 9: The city will use United Building Contractors, Inc. to build the fire station in the West Roseville Specific Plan for a total amount of $2.8 million, with a 10 percent construction contingency. No general funds will be used.

Parks, Recreation and Library staffing change: The department will reclassify a vacant assistant parks and recreation director position to create a recreation manager position to oversee the recreation vision, which maintains hundreds of programs with thousands of participants. This will save the city $5,609.

Permit software update: The city will implement a new permit system used by the permit center and all development departments to track project submittals from initial entitlements to certificates of completion. The current Accela system is 13 years old. The new system will be implemented at a cost not to exceed $426,960 with a 10 percent contingency for a total cost of $595,054.

To finance the system, the city will borrow from the public facilities fund, assess a 3 percent technology fee on permits once the system is live and repay the public facilities fund with interest from the technology fee.

Repeal of local fire code amendments: The city will repeal regulations for mid-rise buildings following a recommendation for the development advisory committee that found the cost of required safety measures created a significant cost burden on the construction of these buildings. Mid-rise buildings generally have five to eight floors.

The council adopted the regulations in 2007, which required additional safety improvements for buildings with a finished floor 55 feet or more above grade. Since then, the state of California adopted the International Building and Fire Codes. The city says no risk factors apply to Roseville that would define a need for mid-rise regulations to exceed those adopted by the California State Fire Marshal.

Joint use agreement of city modular facilities: Roseville City School District has requested the use of Buljan Middle School and Eich Intermediate School student union facilities for overflow classroom space and occasional meeting rooms and programs.

Current agreements grant the city permission to place facilities on school district property for the purpose of providing child care and recreational programs and to use district facilities without cost for the purpose of community programs. This agreement grants the school district permission for reciprocal use of city-owned City Adventure Club and Student Union modular facilities. No fiscal impact.

Sena Christian can be reached at senac@goldcountrymedia.com. Follow her on Twitter at SenaC_RsvPT.