Memorandum

City of Lawrence

City Manager’s Office

TO:	Tom Markus, City Manager
FROM:	Brandon McGuire, Assistant to the City Manager
CC:	Charles Soules, Dave Wagner and Ernie Shaw
DATE:	March 16, 2017
RE:	Solid Waste Facility Project and Operational Facility Needs in Public Works, Utilities and Parks and Recreation

Project Background

The property was purchased in 2014 and the city is undertaking a three phase project to develop the facility for use by the Solid Waste division. Phase 1 was completed in 2015, resulting in construction of the HHW facility along with stormwater drainage improvements. In 2016, phase 2 engineering services were completed. Public Works’ current request is for the Commission to authorize the department to proceed with phase 2 construction. The future third phase of the development will add a fuel island after the current SWAN facility is sold.

Phase 2 provides for the areas needed to consolidate operational staff at this site. If completed, trucks and staff would be relocated to this facility from the Public Works maintenance yard and the Solid Waste Annex North (SWAN). This phase incorporates changes to the building currently on-site and includes an expansion to house operational staff. The facility improvements include restrooms, locker rooms, and a dual-purpose training/employee area, along with administrative office space. In the shop area, the division will relocate the welding and specialty equipment for both dumpster and cart maintenance. A storage space for carts and materials will be constructed to the east of the existing shop. A canopy will be constructed over two rows of truck parking along with adequate security lighting and truck plug-ins for cold weather. Fuel will not be available on-site until completion of phase 3 construction.

Operational efficiencies compared to the current situation will result for the Solid Waste division from consolidating operations at the site. Currently, operational and administrative staff are separated from both the maintenance group and the waste reduction and recycling staff. Resulting from the co-location of all Solid Waste staff, the division anticipates the ability to better share resources, provide adequate staff coverage for public functions, and increase household hazardous waste program hours.

Project Milestones and Costs

The city received $180,000 in grant funding from the State of Kansas to aid this project, $140,000 for the construction of the HHW facility and $40,000 for HHW equipment. A summary of the progress to-date follows.

Completed Milestones	Cost
Property Acquisition	$995,000
Taxes paid at closing	$13,953
Phase 1 site plan, engineering and design	$161,678
Phase 1 construction HHW facility and equipment Stormwater drainage improvements	$1,416,857
Geotechnical and special inspections (estimated cost)	$15,000
Phase 2 engineering services	$182,890
In-kind services
Water line construction (Utilities)
Landscaping (Parks and Recreation)
Inspection of infrastructure and building (Public Works)
Total Cost To-date	$2,785,378
Future Milestones
Phase 2 construction
Renovation and expansion of existing building to consolidate operational staff	$2,994,854
Construction inspection, materials testing and furnishings (estimated cost)	$300,000
Phase 3, fueling station (estimated cost)	$1,000,000
Estimated Total Future Costs	$4,294,854
Estimated Total Project Costs	$7,080,232

Phase 2 construction of the Solid Waste facility is funded in the 2017 Capital Improvement Program (CIP# PW17SW1) and the 2017 operating budget. The budget for phase 2 ($2,700,000) was based on the preliminary facility concept design. The lowest bid received for the project was $2,994,854. Funding of approximately $300,000 in addition to the construction budget is needed to pay for construction inspection and materials testing services as well as purchase furnishings and equipment for the facility. In total, phase 2 is expected to cost $3,294,854.

Upon completion of phase 2 construction, the SWAN facility will become excess property and will be sold. Revenue from the sale of this property can be deposited in the Solid Waste Fund to offset the future cost of phase 3 of the project.

Significant Additional Facility Needs

The Public Works Department has significant and pressing facility needs. The Public Works facilities at the intersection of 11^th and Haskell, including the maintenance yard, Solid Waste Division, Streets Division and Central Maintenance Garage, are functionally obsolete and improvements cannot be made at the current location. Factors inhibiting the city’s ability to make improvements at 11^th and Haskell are space constraints and environmental factors, including the location of the property within the floodway of Burroughs Creek and Brook Creek. This was a motivating factor for relocating Solid Waste functions to the new Kresge Rd facility. It is also a motivating factor for an upcoming project request in the 2018-2022 CIP to address additional facility needs.

Public Works has long needed a new location to house the department’s operations, including Solid Waste, Traffic Engineering and Control, Street Maintenance and the Central Maintenance Garage. The Water and Wastewater Utilities Department is also facing a significant and pressing need to relocate and expand its maintenance yard which houses its Field Services Division. The current yard is located at the Kaw River Water Treatment Plant and the facilities are functionally obsolete and provide insufficient space. The current location does not allow for expansion of the maintenance yard and Field Services facilities. Additionally, future expansion needed at the Kaw Plant will encroach on the existing limited space utilized by Field Services. Parks and Recreation also faces facility needs for its maintenance, forestry and horticulture functions.

Each of these departments’ needs must be considered in the broader context of the whole city operation as well as the city’s financial constraints. While each of these departments provide distinct services and have distinct needs, common facility needs as well as operational and administrative support needs must be acknowledged in any decision about their facilities. Addressing each of these departments’ needs by co-locating in one facility would result in significant operational and administrative efficiencies. Co-location would foster knowledge and resource sharing between employees of these departments and would enable more cost efficient provision of overhead and support systems.