Memorandum

City of Lawrence

City Manager’s Office

 

TO:

Mayor and City Commissioners

FROM:

City Manager David L. Corliss                            

C:

Bruce Flanders, Director, Lawrence Public Library

Date:

January 27, 2011

RE:

 Next Steps for Library Expansion

 

In November 2010, Lawrence voters approved Charter Ordinance No. 40 which provides authority for the City Commission to expand the existing library at 7th and Vermont and construct adjacent parking facilities, and issue general obligation debt to finance such project, in amount not to exceed $18,000,000.   On November 23, 2010 the City Commission authorized staff and the library to negotiate an architectural services agreement for the project with Gould Evans Architects.   Staff and library representatives have met with Gould Evans representatives on several occasions and have prepared the following for City Commission consideration.

 

Overview of Design Services

Gould Evans and their sub-consultants (included within their fee) will provide comprehensive design services for the project, including architect, interior design, civil engineering, survey,  structural engineering, parking garage consultant services, mechanical, electrical, plumbing, etc.   Additionally, Gould Evans will process the LEED (Leadership in Energy and Environmental Design) certification for the project.  The County/City Sustainability Coordinator will also be involved in the LEED process and sustainability values for the project.   The LEED outcome is dependent upon the selected design/construction that will ultimately be approved by the City Commission.   Gould Evans has indicated that substantial work will also be focused on the exterior appearance of the library to ensure that it will be a signature public facility.

 

Design Fee and Fee Justification

The project budget is $19,000,000, with $ 1 million to be paid by the Lawrence Public Library Foundation.  Within the $19 million project budget, the City will have some expenses that will not be designed or performed by Gould Evans or their subcontracted consultants including soil testing and special inspections and permits (approximately $100,000).  Additionally, $150,000 is budgeted for moving related costs associated with continuing the library operation as the parking garage is constructed, the expansion is constructed, and the existing library is renovated.  The exact sequence of construction, renovation, and moving has not been determined and will be evaluated to seek to achieve the goals of continuous library operation, cost effective construction, and minimal disruption to the area.   Removing these City/library only costs, provides a project budget of $18,750,000 for which the architect has primary design responsibilities. 

 

The City staff/library group negotiated a fee with Gould Evans of $1,242,051 for their services for the project.    The design fee represents   7.09%   of the project budget (subtracting the recommended architect fee of $1,242,051 from the project budget of $18,750,000 provides a project budget without architect services of $17,507,949) ($1,242,051 represents 7.09% of $18,750,000).  

 

Within the project budget, there is a contingency of approximately $750,000 at the construction stage of the project.  Additionally, the City will purchase for the library an RFID (radio frequency identification device) system which will significantly enhance the ability to check-out/check-in materials, at an estimated cost of $500,000.  The project budget also includes City/library purchased equipment/communications/phones budgeted at $240,000.  The architect will be involved in these items to a lesser degree than the rest of their design work.  If these items (totaling $1,490,000) are completely removed from the non-architect project budget, the architect fee of $1,242,051 represents  7.75% of that revised project budget of $16,017,949 ($18,750,000 – 1,490,000 -1,242,051 = $16,017,949).

 

Comparing either the 7.09% or the 7.75% design fee, to the City’s design fee policy (which was adopted during our negotiation period) indicates that the recommended fee is appropriate given the complexity of the work, the size of the project, the multiple entities served by the project (library, city), the likely length of construction, and the interest in a superior facility for our community.

 

Related City Improvements to Existing Library

In 2010 the City separately budgeted $500,000 in debt issuance authority for roof repairs to the existing library structure.  That roof repair work will be designed and coordinated with the larger library expansion/renovation project.  City staff understands that this is separate than the $18,000,000 resolution that will finance the project, however, if bids are lower than the current project budget and the project can be completed under the $18,000,000 resolution staff will recommend not issuing the $500,000 in additional City debt authority.  Conversely, the $500,000 bond authority will be available to pay for the roof work if necessary.  

 

As the Commission knows, the City has also allocated most of the City’s federal stimulus EECBG funding for library related projects.  The City has spent $436,420 for improvements to the existing library’s HVAC system.  These improvements are nearing completion and the library renovation/expansion will be conducted in a manner to complement these new HVAC improvements.  Additionally, the City Commission allocated $150,000 for lighting improvements in the existing library. The City plans to work to use these federal funds in the library renovation/expansion project as well.  The Gould Evans design work will also include this work.

 

Farmer’s Market and Transit Transfer Site – Exploring the Concept

City staff has also requested that the Gould Evans design contract include limited design work for two possible projects: 1) explore possible relocation of the Farmer’s Market to the 700 block of Vermont, and 2) explore possible relocation of a transit transfer location to the 700 block of Kentucky.   Exploration of these possibilities should be coordinated with the larger design work.

 

The Farmer’s Market is currently in two downtown locations:  the surface parking lot in east-side of the 800 block of New Hampshire for Saturday morning markets and the surface parking lot in the 1000 block of Vermont for Tuesday/Thursday afternoon market days.  Farmer’s Market representatives have previously indicated an interest in improved restroom facilities, possible portable kitchen opportunities, additional vendor space,  and additional amenities which might enhance their market.   Farmer’s Market representatives have been contacted to determine their interest about locating in front of a renovated library plaza area of the 700 block of Vermont.  Coordination of exploring this option should occur with the design phase of the library expansion.  If a relocated Farmer’s Market would proceed with City Commission approval, any City funding for these amenity improvements would occur outside the $18 million project.

 

The downtown transit transfer location has been historically located at 9th and Massachusetts.  It has moved on several occasions in this general area to respond to adjacent business concerns, most lately it has moved a couple of times to respond to the construction of a building at 9th and New Hampshire.  The transfer location is – in staff’s view – lacking appropriate amenities.  In other communities a transit transfer location includes indoor areas to allow transit patrons to have shelter, restroom facilities, etc.  As part of the parking garage construction, Gould Evans has been asked to explore possible conceptual designs for integrating a transit transfer facility on the 800 block of Kentucky.  Importantly, the City has buildings and facilities along the entire length of the 800 block of Kentucky (outdoor pool, Fire Station #1, parking, library), thus the location of the transit transfer location does not inconvenience any private businesses. Additionally, a location near the library, senior center, parking garage, may have certain advantages for a transit transfer location.  If the downtown transit transfer location is moved final design costs and construction costs associated with a new transfer location would be paid for separately from the library project.  As City staff explores this option we will be looking a federal transit grant opportunities in addition to City transit funds for funding opportunities.

 

Parking Garage Add-Alternate

Additionally, Gould Evans and their parking garage consultant are going to explore an additional parking ramp (possibly an additional 50-70 parking spaces) beyond the previously planned 250 spaces.  This would be an “add-alternate” to the bidding of the entire project.  If the add-alternate bids are acceptable to the City Commission, funding for that portion of the project would come from additional City resources (parking fund, capital reserve funds), but would not come from the $18 million project budget.  Staff strongly believes that additional parking is in the interest of sustaining our downtown.  The City infrequently builds parking structures for our downtown.  The Riverfront parking garage was built 1988-1989 and the 900 block of New Hampshire parking garage was built 2000-2001.  A new parking garage south of the library in 2012-2013 demonstrates that we have added capacity to our downtown parking system on an infrequent basis which means that we should maximize our ability to add parking spaces to serve our downtown when the opportunity arises.

 

Percent for Arts

City Resolution No. 6774 provides the authority, but does not mandate the requirement, for the City to spend up to 2% of the cost of certain eligible capital projects on art in public places projects.  The Lawrence Cultural Arts Commission makes recommendations to the City Commission pursuant to the resolution and their guidelines and policies.  The City has followed a practice on larger capital projects of modifying the percentage amount (downward) to reflect budget priorities and coordinating any artwork acquisition/installation with the design of the project.  Staff recommends that a similar practice be followed for this project and would anticipate that library staff, Cultural Arts Commission, architect and City staff meet during the design process to forward a recommendation to the City Commission on this item.

 

Construction Time Period Considerations

Gould Evans estimates a 20 month construction period after the project is successfully bid – hopefully in the fall of 2011.   This construction will be a major inconvenience to the library and adjacent property owners. (I met with the Senior Center Board of Directors this week to respond to their concerns.)  The library plans to remain open to the public during the construction period, with perhaps a few closures for material relocations, etc.   The lack of parking during the construction is a major concern.  Staff is exploring the possibility of creating a downtown transit circulator which could travel certain key parking areas in the downtown and include a pick-up/drop-off at the library.  This would allow library patrons to park at other parking areas in the downtown and ride the circulator to more easily use the library.  Whether this system is financially/physically viable is not known at this time; however, staff believes that alternatives for the library should be explored to ensure that the library can be better utilized while the parking lot can not be utilized.  Depending upon a number of factors (finances, utilization, etc.) the downtown circulator may be of benefit after the library construction is completed.

 

Debt Resolution and Mill Levy Impact

Bond counsel has drafted the attached debt resolution authorizing $18 million in debt issuance authority.  This follows up the voter approved charter ordinance authorizing this debt.   As previously discussed, staff estimates that it will require a 1.5 mill levy increase – beginning with the City’s 2012 budget year – to service this debt.  Additionally, the Library has indicated that the expanded facility will necessitate additional library expenses of 0.5 mills.  Commission approval of this debt resolution is recommended to allow for the design contract to be executed.  A fall debt issuance is planned to include the $18 million for this project.  Approval of the design contract and the debt resolution commits the City toward the mill levy increase necessary to service the debt.

 

Summary

The library expansion/renovation represents a major undertaking by the City and Library.     I plan to serve as the project director on behalf of the City, but will depend on substantial assistance from the Library Director and several others.  I have asked Scott McCullough to also assist me in this project. This is an exciting project for our community.  The patience required during the long construction period should not be underestimated.   However, the result of a modernized and expanded library, with improved parking opportunities for the library and downtown, will be a long standing enhancement for our community.

 

ACTION RECOMMENDED:

Authorize the City Manager to execute contract with Gould Evans Associates for the design of the library expansion/renovation and parking garage; and

 

Adopt Resolution No. 6917, authorizing $18 million for general obligation bond debt issuance for the project.