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Home My WebLink AboutReg 2019-11-04 Item 7D - Public Safety Plan - $5.7 Million Additional Funding for Public Works Shops Phase I (Heiser Site) / $500,000 Funding for Public Works Minkler Shops Interim ImprovementsCOUNCIL AGENDA SYNOPSIS Meeting Date Prepared by Mayo ir review Council review 10/28/19 HK 11/04/19 HK W W ITEM INFORMATION ITEM No. 7.D. STAFF SPONSOR: HARI PONNEKANTI ORIGINAL AGENDA DATE: 10/28/19 AGENDA ITEM Trn,E Public Adopt Safety Plan - Public Works Shops Master Plan C.vrilGORY FI Discussion 10/28/19 El Alotion Altg Date 11/04/19 fl Resolution AN Date III Ordinance il I 1:g Date El Bid Award Misg Dale 0 Public Hearing Mt,g Date . Other AN Date A lt,g Date SI' ONSOR Council Mayor 1111/R EIDCD IIFinane LjFzre TS EP&R Police [ZIPW 11Court SPoNSoit'S Council is being asked to adopt the Public Works Shops Master Plan. The Public Works SummARy 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. Ri A' BM U) BY C.O.W. Mtg. El CDN Comm 111 Arts Comm. & 10/22/19 J Finance Comm. El Public Safety Comm. Comm. Planning Comm. CHAIR: ZAK IDAN VI Trans &Infrastructure . Parks DATE: 10/08/19 CO Mil I EE RECOMMENDATIONS: spoNsoR/ADmiN. CommiTTFE Public Works Department No recommendation; Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED 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 Forward to next Regular Meeting 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 11/04/19 Info memo updated 11/1/19 after 10/28 C.O.W. 245 246 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 11/01/19) 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-Pubtio-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. 247 *19(110 Info Morrinc1Infn AAamn AAnctor PInn Pruinr4 111ni 10 line, Informational Memo Page 2 • With the table below, George Long's future square footage needs will be covered in Phase 1. If Minkler were to move to Heiser at this time, their future needs would not be met and would have to move twice (see page 48 and 53 of Master Plan). Facilities Current Square Footage Future Square Footage Needs George Long Shops Facilities, Fleet, Spoils and Police Impound Yard 57,770 55,670 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 100,618 376,001 Heiser Program Area 73,925 Next Steps Approval of $4,4 $5.7 million for funding the PW Shops First Phase 1 (to move forward with Heiser improvements) • Demolition of two outbuildings at the Heiser site. QetlNov 2019 • Heiser design for additional seismic retrofitting and interior and exterior improvements. Upgrades to HVAC, mechanical, electrical, and storm drainage. Nov 2019 - April 2020 • Advertise and award additional seismic retrofitting and improvements. April 2nd Qtr 2020 • Project completion. December 2020 1st Qtr 2021 )- 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. The Public Works gi-nal-Phases 2 and 3 will include 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 First Phase General Fund $ 2,850,000.00 Utilities 2,850,000.00 Total $ 26,191,051.88 $ 30,000,000.00 $ 5,700,000.00 Budget Balance $ 3,808,948.12 After the October 28, 2019 Committee of the Whole meeting, Council recommended that the Public Works Shops Phase 1 include additional seismic improvements to the Heiser building for an additional cost of up to $1.3 million to improve the building's integrity in the event of a catastrophic earthquake. SHKS estimates that the PW Shops First Phase 1's costs will be $6.7 $5,8 million and soft costs at $2.8 $2.1 million, for an estimated total project cost of $9.5 $8.2 million. Project soft costs include design fees, construction management fees, construction contingency, and sales tax. 248 W•V,1110 Infn AA.mne \ Infer Mon.,. Nine... PI In Dr.trui l0 o Informational Memo Page 3 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 $9.5 million, additional funding of $5.7 $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 $2.85 $.2,2 million and the Utilities would fund the remaining $2.85 $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 $2.85 $2,2 million that will not impact utility rates or capital improvement projects. FINANCING PLAN To fund the gap of $2.85 $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. St-aff4,41-walic-thr-Gugh-the-entire-finanGing-plan-at-the-meeting-G1:1-Osteber--8720-19, 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. RECOMMENDATION G(341461-is-being-asked-to-approve-pfejeGt-fundiag-of-$8,244iiii0P4Gr-the-Publis-Works-ghops-Fifst-Rhase-,and-aliow-staff-te m4ve-ferward-vvith-tne-negetiation-ef-the-desigri-GGRtfaGt-Of-the-Heis' er-improvements-and-te-Gensider-this-item-at-OGtober 14, 2019 Committee 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: 11 Approve the Public Works Shops Phase 1 (Heiser) Master Plan and fund an additional $4.4 million and up to $1.3 million for additional seismic retrofitting for Public Works Shops Phase 1 (Heiser) for a total of $5.7 million and, 2), 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 10/18/19) Link to PW Shops Master Plan https : / /staksarcriltects .sharefile.com/ci-s563380e59a646708 249 W 0(110 infts hApryine1Infn AA arnn Nifqetor PI,, I 1 fl 1 10 Arvw