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City weighs $2M Chevron gift for Union Oil building: spend $1M now, invest $1M for future maintenance
Summary
Staff recommended using up to $1,000,000 of a $2,000,000 Chevron gift for immediate deferred‑maintenance priorities at the Union Oil building and placing the remaining $1,000,000 in two interest-bearing accounts (maintenance and CIP), with a proposed revenue-split policy to sustain the property over time.
Director Barnes reviewed the deferred maintenance report for the Union Oil Building and said consultant RWC’s due‑diligence estimate totals about $2.7 million in repairs. Barnes proposed spending up to $1,000,000 immediately to address highest-priority items — basement abatement, sump-pump work to stop water intrusion, roofing and structural protection, sprinkler inspection already completed — and placing the remaining $1,000,000 into two interest-bearing accounts (75% reserved for ongoing maintenance, 25% for capital projects) with restricted annual uses to grow a sustainable fund balance.
Staff and the city’s project manager described priorities that preserve structural integrity and avoid triggering costly code changes related to changes of use; council expressed broad support for the conservative approach and asked staff to return with a formal budget resolution and implementation plan.
