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CITY COMMISSION AGENDA ITEM |
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Department: |
Public Works Department |
Commission Meeting Date: March 21, 2017 |
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Staff Contact: |
Tammy Bennett |
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Recommendations/Options/Action Requested: |
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Options: 1) Award bid No. B1700 for Public Works Solid Waste Facility Phase 2 – 2215 Kresge Road (CIP# PW17SW1), in the amount of $2,994,853.89, which includes no alternatives, to First Construction. Authorize additional expenditures in the Solid Waste Non-bonded Construction Fund of $594,854 to fund the project.
2) Delay awarding bid No. B1700 for Public Works Solid Waste Facility Phase 2 and consider Solid Waste facility needs as part of the 2018-2022 Capital Improvement Program. |
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Executive Summary: |
The future Solid Waste facility project at 2201 Kresge Road has been in development since 2013. The project was prompted by the need to relocate the city’s Household Hazardous Waste (HHW) facility from the former Douglas County Public Works maintenance yard when the county relocated its Public Works operation to its current location at 3755 E 25th St. and sold the former property. Additionally, there was a need to consolidate Solid Waste operations at a single location
Currently, the city’s Solid Waste division operates out of three facilities: the Public Works Department maintenance yard at 1140 Haskell, the Solid Waste Annex North (SWAN) facility at 320 Industrial Lane, and the compost facility at 1140 Haskell. Solid Waste’s administrative and refuge hauling functions are currently located at the maintenance yard which is functionally obsolete. Improvements cannot be made at that property. Upon completion of the Kresge Rd facility, the Solid Waste division’s operations, with the exception of the compost function, will consolidate at the new Kresge Rd location.
The design team, including Bartlett & West and Hernly Architects, has reviewed bids, qualifications, and current commitments of the low bidder, First Construction, LLC. If the department’s request to award the bid is approved, phase 2 construction would begin in April and be completed in October.
As an alternative, the Commission could delay awarding the bid and instead consider the Solid Waste division’s facility needs in the context of the 2018-2022 Capital Improvement Program (CIP). Significant facility needs exist for the maintenance and field services functions within the Public Works, Water and Wastewater Utilities and Parks and Recreation departments. These departments will present a coordinated CIP request to address these facility needs through co-location. Co-locating these functions would maximize the economy of the city’s investments in facility needs and would enhance operational efficiency through resource and knowledge sharing across the departments.
The proposed bid is guaranteed for only 30 days. Delaying award of the bid would result in the city not being able to utilize the current bid. |
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Strategic Goal Area: |
Innovative Infrastructure and Asset Management Core Services Sound Fiscal Stewardship |
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Fiscal Impact (Amount/Source): |
Solid Waste facility phase 2 construction was included in the 2017-2021 Capital Improvement Program (CIP# PW17SW1) and budgeted for $2,700,000 in the 2017 operational budget. The low bid exceeds the budget and does not include additional funding needs for phase 2 construction. Current resources are sufficient to fund the budget increase required for this project though, as explained below.
The low bid is $2,994,854, which exceeds the budget allocation by $294,854. Additional expenditure authority of $300,000 is needed to fund construction inspection services, materials testing services, furnishing and equipment for the new facility, and to provide a construction contingency of approximately 3 percent. This brings the total cost for phase 2 construction to $3,294,854 which is $594,854 more than the budget allocation for the project. To fund phase 2 construction, the Commission will need to authorize additional expenditure authority of $594,854 in the Solid Waste non-bonded construction fund.
The Solid Waste non-bonded construction fund has an available balance of $2,962,674, which is $262,674 more than the 2017 adopted budget for that fund ($2.7 million). This leaves $332,180 in additional funding needed for the project. That funding is available in the fund balance of the division’s operational fund. Solid Waste’s actual 2016 operational budget ended with revenue exceeding expenditures by approximately $1,400,000, so the additional $332,180 can be transferred from the division’s operating fund to the non-bonded construction fund.
The following table reports the proposed funding sources for the project if the Commission desires to award the bid.
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Attachments: |
Memorandum on Public Works, Utilities and Parks and Recreation Facility Considerations Memo on property options for Solid Waste (December 9, 2013) |
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Reviewed By: (for CMO use only) |
☐TM ☐DS ☐CT ☒BM |
City of Lawrence
Public Works Department
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TO: |
David Corliss, City Manager Charles Soules, Public Works Director
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FROM: |
Tammy Bennett, Assistant Public Works Director
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CC: |
Kathy Richardson, Solid Waste Manager
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Date:
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December 9, 2013 |
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RE: |
Property options for Solid Waste update and request approval to purchase |
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The Public Works Department has been working diligently to identify property options for the relocation of the Solid Waste Division, and the Household Hazardous Waste operation, since the spring of 2012. This memo provides a brief update on the current status of our efforts, to date and requests authorization to purchase property at 2201 Kresge Road.
Reasons for purchase of land
The Public Works Department has been actively looking for suitable properties for its Solid Waste Division for several reasons:
- The Household Hazardous Waste facility located at Douglas County’s 711 E. 23rd Street property will need to move to a new location once the County’s Public Works operations move to a facility to be built on E. 25th Street and vacate the E. 23rd Street property.
- The Solid Waste Division office building located at 1140 Haskell Avenue is in very poor condition and is too small to accommodate all employees. The slab is dropping in the middle of the building. The foundation was mudjacked to stabilize the floor. The building lacks adequate locker rooms and restrooms for the number of employees reporting to that location.
- The Division’s facilities are currently spread throughout Lawrence with a total of five locations. Having most of the Division’s facilities and staff at one location would greatly enhance efficiencies.
Property options investigated to date
Staff has investigated a number of properties to this point. They are listed below as a quick reference of the on-going efforts.
- East 11th Street property (Polk property). This was a small site located north of the intersection of 11th and Haskell, which was considered in conjunction with the building at 1050 E 11th Street. Public Works contracted for a Phase I Environmental Assessment for this property in April 2012. While under consideration by the City, the property was purchased by Bo Killough for relocation of the 12th and Haskell Recycle Center. The building at 1050 E. 11th was then sold to the City for the relocation of a Parks and Recreation function.
- 1861 E 1450 Road (former Schmidt Lumber property). This property was eventually eliminated from consideration due to the following elements: distance from City limits, inability to extend city services cost-effectively, concerns about traffic movements on/off highway without signalization, and cost of property acquisition.
- 936 N 3rd Street (Puckett property). This was an odd shaped property with a small frontage on N 3rd Street, which then followed the drainage way for the North Lawrence Pump Station on the east and bordered the City’s Solid Waste Annex North on the north side. The property was eliminated from consideration due to the following elements: access to an arterial road, shape of property, floodplain issues, and anticipated conflict over use with property to the east, based on experiences with the drainage way property.
- 1809 E. 1450 Road (Youngquist property). This was a 7 acre property in floodplain and floodway at the junction of 24/40 and 24/59 highways. The property had direct access onto the highway, but also had access to the signalized intersection. The property was adjacent to the City limits. Water and sewer services could be extended to the property. It required considerable fill to elevate out of floodplain. The Public Works Department contracted for an appraisal and a Phase I Environmental Assessment for this property. The property was sold through an auction process. The City was not the successful bidder.
- 2201 Kresge Road (Koch and Sons property). This is a 10.7 acre site currently under consideration. The status of the property evaluation is outlined below.
2201 Kresge Road
The property at 2201 Kresge Road is a 10.7 acre property in the City limits. The property features a 9,200 square foot building, housing both drive-thru truck bays and approximately 2,800 square feet of office space. The site was developed in 1989 with the office expansion in 2008. The site is served by all utilities and has an IG zoning classification. Located in the Santa Fe Industrial Park, it provides a good location for the Solid Waste operations, including the Household Hazardous Waste Facility. The property is bordered by I-70 on the south and the K-Mart Distribution Facility on the west. There are no floodplain zones on the property. The area is designed for truck traffic, but also close enough to residential developments to feel “in the City” for the HHW program. Trash and recycling trucks would have fairly easy access to the south, west, and north (via the turnpike).
Current due diligence efforts in evaluating the property prior to possible acquisition include:
- Acquisition of the Phase I Environmental Assessment completed by the owner (2007)
- Acquisition of the appraisal completed by the owner (June 2013)
- Certification of Title by Kansas Secured Title (October 2013)
- Contracted with Bartlett & West for professional site investigation and feasibility study
- Contract for updated appraisal completed by City-selected appraiser (December 2013)
- Requested review of site for future location of solid waste services from Planning Department and Fire.
The asking price for the property is $1,100,000. The property is marketed by Doug Hedrick with Colliers International. The valuation of the property on the Douglas County Appraisers website is $1,112,240. The appraisal completed by Keller and Associates in June 2013 on behalf of the owner placed the current market value at $1,190,000.
Site Investigation and Feasibility Study
Bartlett & West was engaged by the City to do a general assessment of the buildings and possible property layout for the site at 2201 Kresge Road. The goal was to determine if the site could adequately meet current and reasonable future needs for the Solid Waste Division, as well as ensure there are no significant issues with the current facilities. Attached to this memo are the overall layout and the complete report provided by the engineering firm. The layout is a tentative plan for how the property may be used. Several options were reviewed. Staff favored the option attached because it provided clear separation of public traffic and employee vehicles from the movements of the heavy trucks. There are multiple ways the property could be laid out to meet current and future needs. If purchased, the City will need to re-plat, site plan, and prepare public improvement plans. Improvement of the property would be phased in over time.
Other Items of Note
· Funding of property purchase: The Solid Waste Division has been actively researching properties for some time, and funding has been allocated for the purchase of property. At the current time, the division has sufficient funding set aside to pay for the purchase of this property (at a full price offer), and anticipated fees for professional design services for the property development process. Construction will be phased, as noted below.
· Phasing of improvements: There are several ways to phase-in the improvements to the property. If acquired, the first step would be to complete the plat, site plan, public improvement plans, and a formal phasing strategy. The first element to be constructed will be the Household Hazardous Waste (HHW) Facility, which will be on the north edge of the property. The second phase would be expansion of building and construction of parking lots for employees and equipment. Future possible phases would include construction of fueling abilities on the site.
· Grant options: If this property is acquired in the near future, the City would be eligible to apply for grant funding to assist with the construction of a new HHW facility through the Kansas Department of Health and Environment. The next grant period will receive competitive applications until May 2014. There is approximately $200,000 available state-wide. The local match requirement will be a minimum of 40 percent. Availability of these types of grant monies in future years is unknown.
· SWAN facility: The Solid Waste Annex North is a converted warehouse facility on Industrial Lane that houses administrative office for Waste Reduction and Recycling, a material processing area for two horizontal balers for the fiber programs (commercial cardboard, etc.), and maintenance operations for containers (welding stations for large metal dumpsters, motor repair for compactors, greasing for large equipment, and roll-out cart maintenance). The administrative offices and the maintenance operations will be relocated in future phases of the site development. The current SWAN building could be sold to assist with future development on the Kresge site. The county valuation of the property is $686,500.
· Compliance with Planning and Fire Codes: Any future activities on the Kresge site will comply with the City’s planning and construction codes. The preliminary lay-out has been reviewed by Planning and Fire. Neither department identified any major concerns that would suggest the planned solid waste operations are not a suitable use for this property.
Request authorization to negotiate purchase agreement for property
The Public Works Department would like to request authorization for the City to negotiate a purchase agreement for approximately 10.7 acres at 2201 Kresge Road.
Attachments:
- Proposed site layout
- Bartlett & West General Building and Site Observation / Analysis