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HomeMy WebLinkAboutSolid Waste Division Building Addition1 COMMISSION MEMO Memo To: Mayor Jacobson and City Commissioners From: Chuck Winn, Assistant City Manager Debbie Arkell, Director of Public Services Date: February 9, 2009 Agenda Re: RECOMMENDATION: Direct staff to proceed with the redesign and rebid of the project based on current FY09 budget authorization and projected growth within the division. Solid Waste Division Building Addition BACKGROUND: On December 8, 2008, Staff presented bids for an office and vehicle storage addition to the Solid Waste Division’s office / vehicle storage building to the Commission and recommended that all bids be rejected and the project be rebid. This recommendation was made because the project was originally designed to a higher than authorized budget number and bids came in at approximately $150,000 over the budgeted amount. We feel the project can be redesigned to better reflect the needs of the Division by taking a closer look at the details of the floor plan with respect to current operations and future growth based on actual customer counts. We also believe we are in a position to take advantage of the current construction market. The CIP projects a 4% increase in customer accounts over the next five years. Over the past five calendar years, residential accounts have increased an average of 4.7% per year and commercial accounts have increased an average of 3.95% per year. Using the projected 4% growth increase, we will need to add one residential collection truck and one FTE every three and a half to four years, with a new truck and driver anticipated in FY12. These projections will be used to work with the architects to design an addition to accommodate these projected growth numbers. CURRENT FACILITY: The current solid waste building is used for vehicle storage, repairs and maintenance, office, break/training room, and locker areas. Presently, there are 14 staff in the solid waste division that serve 6,841 collection accounts, the Gallatin Solid Waste District’s cardboard bins per contract, and approximately 580 curbside recycling accounts. The staff works, trains, and takes breaks and lunch in the office area of the landfill shop. This area is 688 square feet in size and includes an enclosed 80 square foot Superintendent’s 34  Page 2 office, a 270 square foot work area shared by the two foremen and one leadworker that includes two work stations, files, and copy area, and 169 square feet for the break/training area. The men’s locker room and restroom are contained within one room and the area is inadequate, both in size and layout, for the 13 men currently employed. Along with housing 14 garbage trucks, 2 1-ton pickups, 1 bucket loader, 1 water truck and 4 pickup trucks, the 12,000 square foot vehicle garage is also used for storage and work benches and minor vehicle repairs. As seen in the photo, the staff makes use of every space available within this area. Having indoor storage protects hydraulics and other mechanisms on the trucks, and also provides a secure parking area for these assets. PROJECT HISTORY: The FY07 budget appropriated $125,000 for a small office addition. After considering the division’s longer term needs, an administrative decision was made to not pursue the office addition, and to request additional funds in FY08 so that a longer term solution incorporating improvements to the break/training area and locker room could be included. The FY08 budget approved an additional $175,000 for the project. This provided $300,000 for the project. Dowling Sandholm Architects worked with staff to design the addition. In February 2008 an additional $200,000 was requested in the Division’s FY09 budget request due to projected construction costs, and in March 2008 the architects were given a $500,000 budget to work with. The architects were asked to design the project incorporating current and anticipated 35  Page 3 staff numbers including an office area for a future clerk and recycling coordinator, as well as locker, break and training facilities for nearly double the staff we currently have. The addition was also designed and bid with an alternative to add a 1,802 square foot vehicle storage area to the existing 12,000 square foot garage, as that area is full. The FY09 budget did not include any additional money for the project and Staff neglected to advise the architects of the total project budget - $300,000. Thus, they continued to work with Solid Waste and Facilities staff on preparing the project for bid. Bids were requested and opened on October 8, 2008. Five bids were received, with the apparent low bidder submitting a bid of $407,575 and the highest bidder submitting a bid of $937,000. The low bid with the vehicle storage area eliminated was $351,326. Once architect, building, and impact fees, IT improvements, and 10% contingency are added in, approximately $447,776 would be needed to complete the project. This would require the use of about $150,000 in solid waste reserve funds. After the bids were received, we had the architect draw up some rough designs to further reduce the scope of the project by reducing the office and break/training areas by 1,100 square feet. They estimated this would provide an additional $88,000 in savings, bringing the base amount to $263,300. The architect then contacted the apparent low bidder to review the redesign, and the contractor indicated this would likely result in only a $35,000 savings, bringing the total cost of the project to almost $410,000. The contractor indicated the costs could be further reduced by approximately $13,000 if the parking area asphalt was eliminated. FISCAL EFFECTS: The FY09 budget authorizes $300,00 for the solid waste building addition. During the December 8, 2008 meeting we reported the solid waste reserve fund had approximately $820,360. We feel it is prudent to retain approximately $570,000 of this reserve for Operating & Capital Reserves for Collection and Recycling operations. Additionally, we reported to the Commission that approximately $80,000 is needed to address a building code issue in the existing garage. This leaves a balance of $170,360 in the reserve fund. The Commission voted to reject all bids and directed staff to make a formal presentation to the Commission on the project. ALTERNATIVES: As recommended by the Commission. Report Prepared On: February 5, 2009 36