Memorandum

City of Lawrence

City Manager’s Office

TO:	David L. Corliss, City Manager
FROM:	Diane Stoddard, Assistant City Manager
CC:	Cynthia Boecker, Assistant City Manager Bob Nugent, Transit Administrator
Date:	December 11, 2009
RE:	Transit Facility Update

Please place the following item on the City Commission agenda for December 15, 2009:

          Receive a status briefing on KU bus facility actions

Background:

City and University of Kansas officials have been working together for over a year as part of a KU-City Transit Planning Team, focusing on increasing the coordination and cooperation efforts between the City of Lawrence Transit System and the KU Transit System.  One of the areas of discussion has been future facility needs. 

In August 2009, the City Commission provided general direction and feedback to City staff that it supported the concept of a joint transit maintenance facility and the plan that the University of Kansas would proceed with the issuance of a Request for Proposals for a joint transit maintenance facility. The RFP requested lease, lease/purchase or turnkey options. KU issued its facility RFP in late August and responses were received in early October.  Since that time, a team of KU officials has been involved in the review of the proposals and City staff members were also invited to participate in this review, though not as a formal member of the procurement committee.  Through the review process, the procurement committee narrowed the responses to a preferred proposal. 

Preferred Proposal:

The preferred proposal is from Advanco, Inc. and involves a turnkey purchase option on property north of Reuter Organ and south of Westar Energy property in the Timberedge Industrial Park.  KU has placed an item on the Board of Regents agenda for its meeting on December 17, 2009 (see page 48 of the Board of Regents packet) regarding the contingent purchase of this property and a contract with Advanco for the facility construction. 

Possible Next Steps:

As an agenda item soon, staff will bring information for the City Commission to consider a lease with KU for a joint transit facility.  As the Commission is aware, the City contracts with MV Transportation for the bus facility currently.  If the City proceeds to enter into a lease with KU for the bus facility, the MV contract will need to be renegotiated to eliminate the facility-related costs.  Additionally, an analysis will need to be completed in order to demonstrate anticipated cost savings to the City as a result of a lease with KU.  Tentatively, this discussion is anticipated at the January 5, 2010 City Commission meeting.