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Home My WebLink AboutCOW 2019-10-28 Item 3A - Public Safety Plan - Master Plan and Funding for Public Works Shops Facility Phase ICOUNCIL AGENDA SYNOPSIS Initials MeetiugDate Prepared by Mayo s review Council review polL 10/28/19 HK Y 11/04/19 HK ITEM INFORMATION ITEM No. 3.A. STAFF SPONSOR: HARI PONNEKANTI ORIGINAL AGF;NDA DATE: 10/28/19 AGENDA 'MN TIM; Public Safety Plan - Public Works Shops Adopt Master Plan cATI,;(;01tY Discussion AltgDate 10/28/19 E Motion ANDate 11/04/19 Ei Resolution Altg Date 0 Ordinance Mtg Date El Bid /lward 1141,g Date [I] Public Hean'ng MtgDate E Other Mtg Date SPONSOR Counci l Mayor HR El DCD DFinance - " e TS El P&R EPoiice Court PIF SP oNsoie s Council is being asked to adopt the Public Works Shops Master Plan. The Public Works SilmmARy Master Plan's Phase 1 focuses on relocating the Public Works Fleet and Facilities divisions from George Long to the Heiser property after seismic retrofitting and upgrades. The Public Works Phase 1 also includes moving the Police vehicle evidence storage and Surface Water spoils from the Longacres site. RiwitAx/i;.1) BY fl C.O.W. Mtg. El CDN Comm E Finance Comm. 0 Public Safety Comm. Arts Comm. EI Parks Comm. El Planning Comm. & 10/22/19 COMMII 1EE CHAIR: ZAK IDAN LI Trans &Infrastructure DATE: 10/08/19 RECOMMENDATIONS: SPoNsoR/ADNuN. COMMIT Public Works Department No recommendation; Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPUNDITURE REQUIRIM AMOUNT BUDGETED APPROPRIATION REQUIRED $8,200,000.00 $30,000,000.00 $4,400,000.00 Fund Source: 306 FUND & WATER, SEWER, AND SURFACE WATER FUNDS Comments: pg 59, 2019 CIP MTG. DATE RECORD OF COUNCIL ACTION 10/28/19 11/04/19 MTG. DATE ATTACHMENTS 10/28/19 Informational Memorandum revised date 10/18/19 Financial Framework Summary Public Works Shops Master Plan PowerPoint Presentation (distributed separately) Minutes from the Transportation & Infrastructure Committee 10/08/19 & 10/22/19 2 City of Tukwila Allan Ekberg, Mayor Public Works Department - Henry Hash, Director INFORMATIONAL MEMORANDUM TO: Transportation and Infrastructure Committee FROM: Henry Hash, Public Works Director BY: Hari Ponnekanti, City Engineer CC: Mayor Allan Ekberg DATE: October 4, 2019 (revised 10/25/19) SUBJECT: Public Safety Plan — Public Works Shops First Phase 1 Project No. 91630601 Master Plan Next Steps ISSUE Approve the Public Works Shops Master Plan and funding for Public Works Shops Phase 1. Update on the Public Works Shops Master Plan and seek approval for financing the improvements to the Heiser property. BACKGROUND The City hired SHKS Architects to conduct a Master Planning and Programming effort for the City's Public Works Maintenance Shops facilities in September 2018. Master Planning efforts are a good tool to logically implement overall facility improvements. The Public Works Master Plan envisions the redevelopment of over 13 acres of land, which will serve the Public Works Department into the future with planned growth through the year 2045. SHKS conducted several meetings with PW staff, visited the existing facilities, toured similar PW facilities in the region and developed a Master Planning and Programming Report. Several options were discussed and the selected Master Plan and the proposed tenant improvements to the Heiser site are the most practical and least expensive option. The current George Long building lacks sufficient spacing for routine maintenance and is also one of the most seismically deficient City building. The new site will be much safer for our employees and provides more space, therefore increasing operation efficiency. In addition, some of the equipment from Minkler Shops can also be moved to Heiser, allowing more space at Minkler Shops for maneuverability and productivity. ANALYSIS The findings from the Public Works Shops Master Plan are summarized in the attached updated PowerPoint presentation. The City took possession of the Heiser properties in July 2019 and will take possession of the UPS site in 2023. Master Plan Summary • The Public Works Shops First Phase 1 of the Master Plan focuses on relocating the PW Fleet Maintenance and Facilities divisions from George Long Shops to the Heiser property after seismic retrofitting and upgrades. The First Phase 1 will also include moving the Police vehicle evidence storage and spoils from the Longacres site. • The Longacres site will need to be vacated and moved to the Heiser site by 2021. To meet federal NPDES regulations, spoils need to be stored in a covered site. • Public Works staff agree that the best option is to move George Long and Longacres operations to the Heiser Building. • George Long was chosen to move to the Heiser Building, after necessary renovations, as the George Long Building is seismically and environmentally deficient and is hazardous to City employees. • The Fleet mechanics work full-time in George Long as opposed to other Public Works employees that are mainly in the field. The George Long facility does not have an adequate exhaust system and does not meet regulatory requirements. • As George Long is seismically deficient, if there is an earthquake and the building is destroyed, the entire City would be without the facilities and fleet divisions to assist with Police, Fire and other emergency operations. 1/10PW Eng PROJECTStA- BG Projects101 Public Safety Plan I PW Shops First Phase (91630601)1Info Memo Master Plan Round 3 102519.docx 3 Informational Memo Page 2 • With the table below, George Long's square footage needs will be covered in Phase 1. If Minkler were to move to Heiser at this time, their needs would not be met and would have to move twice (see page 53 of Master Plan). Facilities Current Square Footage Phase 1 Square Footage George Long Shops 57,770 55,670 Facilities, Fleet, Spoils and Police Impound Yard Longacres site (need covered spoils) 13,215 15,460 Subtotal 70,985 71,130 Minkler Shops Streets, Water, Sewer, Surface Water New Decant facility, New Fleet Parking 100,618 Heiser Program Area 73 925 Next Steps Approval of $4.4 million for funding the PW Shops First Phase 1 (to move forward with Heiser improvements) • Demolition of two outbuildings at the Heiser site. Oct/Nov 2019 • Heiser design for seismic retrofitting and interior and exterior improvements. Upgrades to HVAC, mechanical, electrical, and storm drainage. Nov 2019 — April 2020 • Advertise and award seismic retrofitting and improvements. April 2020 • Project completion. December 2020 Staff will return to Council for financing of Phase 2. Phase 2 - Possession of UPS site in 2023. Build Administrative offices and relocate Minkler. Cost estimate of $33 million. At the completion of Phase 2, all Public Works employees will be relocated to safe and efficient facilities. Phase 3 — Build new Fleet Maintenance Building, demolish Heiser Building, and install covered storage for $37 million. At the end of Phase 3, all future needs will be met with the entire buildout of the Heiser and UPS sites. PHASE 1 FINANCIAL IMPACT Expenditures 2019 Budget Budget Request Land Purchases $ 25,334,123.00 $ 30,000,000.00 Contracts & Demolition 856,928.88 PW Shops Phase 1 General Fund $ 2,200,000.00 Utilities 2,200,000.00 Total $ 26,191,051.88 $ 30,000,000.00 $ 4,400,000.00 Budget Balance $ 3,808,948.12 SHKS estimates that the PW Shops First Phase 1's costs will be $5.8 million and soft costs at $2.4 million, for an estimated total project cost of $8.2 million. Project soft costs include design fees, construction management fees, construction contingency, and sales tax. The 2019 CIP's PW Shops budget is $30 million and to date $26,191,051.88 is estimated to be spent, which leaves a balance of $3.809 million. To complete the PW Shops First Phase 1 at an estimated cost of $8.2 million, additional funding 4 W \ PW Eng \PROJECTS A- BG Projects \ 01 Public Safety Plan \PW Shops First Phase (91630601)\ Info Memo Master Plan Round 3 102519 docx Informational Memo Page 3 of $4.4 million is needed. The current funding has the PW Shops split 50/50 between the General fund (Streets, Facilities, & Fleet) and the Enterprise funds (Water, Sewer, & Surface Water). To continue with this 50/50 division, the General fund will need to budget $2.2 million and the Utilities would fund the remaining $2.2 million. Both Water and Sewer Utilities appear to have sufficient unreserved fund balance to absorb the additional costs, further analysis is needed to determine if the Surface Water utility can absorb the additional costs with the current rate model. There is funding available in all three of the Water/Sewer/Surface Water Utilities to fund the $2.2 million that will not impact utility rates or capital improvement projects. FINANCING PLAN To fund the gap of $2.2 million in the General fund, funds can come from two sources. A transfer of $1 million from the general fund to the arterial street fund is currently budgeted in 2020. Because there is currently a healthy fund balance due to impact fees exceeding budget, the budgeted transfer can be redirected to the PW Shops project fund. Additionally, the 2020 general fund budget has a budgeted surplus of $1.4 million and could be utilized to fund the remaining request of $1.2 million. Staff will walk through the entire financing plan at the meeting on October 8, 2019. Due to favorable interest rates in the bond market, coupled with the City's upgrade in rating from AA to AA+, total debt service for the 2019 LTGO bond issue was $3.6 million less than budgeted (attached in updated financing schedule). The resulting savings will be realized in the general fund and utility funds over the life of the bonds, which is 20 years. The general fund will realize savings of approximately $2.8 million and the utility funds will realize a combined savings of $800,000. Minkler Shops Interim Improvements Until we take possession of the UPS site in 2023, Minkler Shops will require some improvements in the interim. Currently there are limited bathroom facilities, only one shower, and the locker room does not have adequate space. Proposed improvements include an expansion of the men's restroom, relocating the locker room and building a new mud room. Also proposed are safety and security upgrades that include additional yard lighting and main gate improvements. The existing gate is currently not automated and left open during the day as staff come and go. The cost estimate for the Minkler Shops Interim Improvements are $500,000 and would be included in a new CIP project with funding from the Utility Enterprise funds. Update after 10/22/19 Transportation and Infrastructure Meeting: • An updated PowerPoint presentation includes a full timeline and details of the Master Planning effort along with the two options developed (Spine and Filter). • Staff has confirmed that the only Minkler upgrade in the last ten years was a renovation to the surface water office in 2016 for $27,000. RECOMMENDATION GGURGii-iS-IaeiRg-asked-te-approve-KejeGt-fuRding-of-$8,2-miWon-fof4e-Pubk-Works-Sbops-First-P4ase-an4-aiiGW-staff-to 2019-Gommiftee-of-the-Whole,. Council is being asked to approve one or both of the following options and to consider these items at the October 28, 2019 Committee of the Whole and subsequent November 4, 2019 Regular Meeting: Option A) Approve the Public Works Shops Master Plan and fund an additional $4.4 million for Public Works Shops Phase 1 (Heiser) and, Option B) Approve the Minkler Shops Interim Improvements that would be funded by utility enterprise funds for $500,000. attachments: Financial Framework Summary (updated 10/16/19) PW Shops Master Plan PowerPoint (updated 10/25/19) Link to PW Shops Master Plan https : //shksarchitects sharefile com/d-s563380e59a6467c8 WAPW Eng \PROJECTS \A- BG Projects \ 01 Public Safety Plan \PW Shops First Phase (9163060 I )\lnfo Memo Master Plan Round 3 102519 docx 5 6 A B E F 1 3 4 Public Safety Plan - Financial Framework Summary Public Works Shops Current Plan w/19-20 budget Net Changes Revised as of 10/16/19 5 6 7 8 9 10 11 14 15 16 17 1 V 19 21 22 23 24 25 27 28 29 30 31 32 33 34 35 36 Revenues LTGO Bond Proceeds 27,674,036 (2,000,000) 25,674,036 (A) Transfer Fund 301 3,000,000 3,000,000 Interfund transfer in (out) (2,033,709) 2,033,709 (B) Investment Earnings 243,426 243,426 General Fund Contributions 141,854 2,200,000 2,341,854 Utility Fund Contributions 3,141,854 3,141,854 Total Revenues 32,167,461 2,233,709 34,401,170 Project Expenses Public Works Shops 30,000,000 30,000,000 Addt'l Tenant Improvements - 4,400,000 4,400,000 (C) Total Expenses 30,000,000 4,400,000 34,400,000 Increase/(Decrease) 2,167,461 (2,166,291) 1,170 Debt Service 2018 LTGO 2019 LTGO (A) Increase PSP 2019 LTGO Bond allocation from $17.5M to $19.5M. Budget included $2.033M transfer from PW Shops to PSP. Remove budget transfer in/out of $2.033M (B) from PW Shops to PSP. Settlement Costs not eligible for bond procceds. 28,720,676 10,734,241 (3,671,701) 28,720,676 7,062,540 (D) General Fund Debt Service 19,727,459 (2,935,851) 16,791,608 Utility Fund Debt Service 19,727,459 (735,850) 18,991,608 Reduce PW Shops 2019 LTGO Bond allocation from $7.5M to $5.5M. (C) Increase PW Shops project budget by $4.4M to complete Phase 1 (estimate). Debt Service updated to actual for 2019 LTGO; GF/Utility contributions adjusted to maintain 50/50 (D) split. Cost of debt is less due to lower interest rates, conservative budgetting, and the City's improved debt rating of AA+. Combined General Fund contributions to PSP plan decreases by $236k; $2.2M increase to operating E transfer plus a reduction of $2.436M for debt service. Printed: 10/16/2019 Page: 1 of 2 7 A B E F 37 Public Safety Plan - Justice Center and Fire Stations/Eq/APP 38 39 40 41 42 43 44 45 46 47 48 50 52 53 54 55 56 57 59 VV 61 62 63 64 66 67 68 Project Revenues UTGO Bond Proceeds 77,385,000 LTGO Bond Proceeds 17,500,000 Fire Impact - Segale 4,750,000 Fire Impact - Other 8,017,000 Property/Land Sales 13,053,090 REET 1 10,000,000 Sales Tax Mitigation pmts 4,017,452 Interfund transfer in (out) 2,033,709 Investment Earnings 1,227,398 General Fund Contributions Total Revenues Project Expenses Justice Center Fire Station 51 Fire Station 52 Fire Station 54 App/Eq Total Expenses Increase/(Decrease) Debt Service 2019 LTGO 2,000,000 (2,033,709) 77,385,000 19,500,000 (A) 4,750,000 8,017,000 13,053,090 10,000,000 4,017,452 (B) 1,227,398 137,983,649 (33,709) 137,949,940 66,994, 711 66, 994, 711 14,814,632 14,814,632 23,490,000 23,490,000 1,502,000 1,502,000 15,825,796 15,825,796 122,627,139 122,627,139 15,356,510 15,322,801 25,046,585 (6,671) 25,039,914 (D) General Fund Debt Service 25,046,58 (6,671) 25,039,914 Combined Project Summary 69 70 71 72 73 74 75 76 77 78 (A) General Fund Project Costs General Fund Debt Service 141,854 44,774,044 2,200,000 (2,942,522) 2,341,854 41,831,522 44,915,898 (742,522) 44,173,376 (E) Reduce PW Shops 2019 LTGO Bond allocation from $7.5M to $5.5M. Increase PSP 2019 LTGO Bond allocation from $17.5M to $19.5M. Budget included $2.033M transfer from PW Shops to PSP. Remove budget transfer in/out of $2.033M from PW Shops to PSP. Settlement Costs not eligible for bond procceds. (C) Increase PW Shops project budget by $4.4M to complete Phase 1 (estimate). Debt Service updated to actual for 2019 LTGO; GF/Utility contributions adjusted to maintain 50/50 (D) split. Cost of debt is less due to lower interest rates, conservative budgetting, and the City's improved debt rating of AA+. Combined General Fund contributions to PSP plan decreases by $236k; $2.2M increase to operating (E) transfer plus a reduction of $2.436M for debt service. (B) Printed: 10/16/2019 8 Page: 2 of 2 Transportation & Infrastructure Committee Minutes October 8, 2019 E. Demolition Agreement: Public Safety Plan - Public Works Shops Phase 1 Staff is seeking Council approval of Amendment No. 5 to Contract 18-001 with Lydig Construction in the amount of $73,707 for demolition of the Lifestyles landscape building and the former coffee shop building on the new Public Works shops site. Council Resolution 1964 declared these building, fixtures and equipment as surplus and authorized their disposal, and demolition is deemed necessary to begin the other site improvements and to deter squatters and trespassers. Chair Idan noted that the estimated project management hours seemed high and asked if BNBuilders had been asked to participate? Staff stated that Lydig has the capacity to perform this demolition work now and BNBuilders do not. RETURN TO COMMITTEE. F. Public Safety Plan - Public Works Shops Phase 1 Staff is seeking Council approval to move forward with Phase 1 of the Public Works facility Master Plan, which was created by SH KS Architects in partnership with Public Works staff at all levels. Staff recommends beginning implementation of the Master Plan by moving the George Long operations, Police vehicle evidence, and spoils from the Longacres site to the Heiser site as the most practical and least expensive option. Subsequent phases will include the entire buildout of the Heiser and UPS sites and relocation of the Minkler operations. The UPS building is not available until 2023. Phase 1 is estimated to cost $8.2 million. The CIP budget for PW Shops has a balance of $3.783 million, so an additional $4.4 million is needed. Of that, $2.2 million is available from utilities, and existing resources can be reallocated to fund the remainder, offset by reduced debt service payments due to better than projected interest rates. The City needs to identify funding for Phase 2 and beyond and will put together a comprehensive facilities plan to identify all the needs. Councilmembers discussed the proposal and did not arrive at a recommendation to move forward with Phase 1 at this time. Staff was asked to return to Committee with additional information on the following: • Better justification for George Long operations to move ahead of Minkler operations • Other options for housing Minkler staff, such as former landscaping building, 6300 Building, Station 51 • Opportunity to discuss Phase 2 and beyond • Call out in the memo that no utility projects will be delayed by moving forward • Cost estimate for improving current Minkler site • Contingency update on other Public Safety Plan projects RETURN TO COMMITTEE. II. MISCELLANEOUS The Transportation Committee Meeting adjourned at 6:59 p.m. Committee Chair Approval Minutes by LH 9 City of Tukwila City Council Transportation & Infrastructure Committee TRANSPORTATION & INFRASTRUCTURE COMMITTEE Meeting Minutes October22, 2019 - 5:30 p.m. - Hazelnut Conference Room, City Hall Councilmembers: Zak !clan, Chair; Kate Kruller, Thomas McLeod Staff: David Cline, Henry Hash, Pat Brodin, Hari Ponnekanti, Vicky Carlsen, Han Kirkland, Gail Labanara, Bryan Still, Laurel Humphrey Guests: Jonathan Hartung & Adam Hutschreider, SHKS Architects; Steve Goldblatt, PMQA CALL TO ORDER: Committee Chair !clan called the meeting to order at 5:30 p.m. I. BUSINESS AGENDA Chair !clan announced that item B will be postponed to another meeting. A. Public Safety Plan - Public Works Shops Master Plan Committee members and staff continued discussion of the Public Works facility Master Plan and the request to move forward with Phase 1. Phase 1 includes moving the George Long and Longacres site operations to the Heiser site which was determined to be the most practical and least expensive path forward. Future phases will include the entire buildout of the Heiser and UPS sites and relocation of the Minkler operations. Staff returned with additional information explaining the preference to move George Long staff and operations before Minkler staff and operations, more detail about funding Phase 1, and a $500,000 cost estimate for near -term improvements to the Minkler Shops. Councilmember Kruller does not support putting money into Minkler and asked for a list of investments at the site since 2011. She would also like to understand how much of the Master Plan is "must have" versus "nice to have," and asked if Phase 1 could be broken down further. Staff replied that seismic work, wiring and exhaust cannot be phased and bid results will be more favorable with a total package. Mr. Goldblatt agreed that it would be more expensive to separate Phase 1 into further phases. He stated that the Master Plan is a well -designed program and Phase 1 is not an expensive retrofit for the scale of the operation. Councilmember McLeod asked about stopping after Phase 2, and if that would have an impact on the design of Phase 1. Mr. Hartung advised that the full program through Phase 3 reflects a consolidated operation and that stopping at Phase 2 will not get the City the recommended site circulation or needed space for operations through 2045. Councilmembers Kruller and McLeod asked several questions about what other design options had been considered, which can be found in the Plan appendices. Staff will plan to present additional information about the design options to the Committee of the Whole. Chair !clan clarified that funding for Phase 1 is in place and as a result he supports moving forward as the deficient Public Works buildings need to be addressed. Councilmembers McLeod and Kruller were in favor of forwarding the discussion to the Committee of the Whole without a Committee recommendation. NO MAJORITY RECOMMENDATION. FORWARD TO OCTOBER 28, 2019 COMMITTEE OF THE WHOLE. B. Public Safety Plan - Amendment with SHKS Architects Postponed. 10