HomeMy WebLinkAboutCity Vehicle Maintenance Bus Barn Shared Complex1
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Debbie Arkell, Director of Public Services
Chris Kukulski, City Manager
SUBJECT: City Vehicle Maintenance / Bus Barn Shared Complex Proposal
MEETING DATE: March 23, 2009
RECOMMENDATION: Consider whether to: direct staff to continue working on the proposal
to construct a shared facility for city vehicle maintenance and the Streamline Bus Barn, with a
future phase for City Streets/Sign & Signal/Forestry Divisions; enter into a Memorandum of
Understanding with HRDC for the construction of a shared facility; commit funding for the
City’s costs of the facility.
SHARED FACILITY PROPOSAL: The HRDC operates the Galavan and Streamline bus
services. They have been looking for a bus barn location for many years. They have recently
been awarded funding for the construction of a facility but have no land on which to build such a
facility. The City Manager asked staff to investigate the possibility of constructing some kind of
shared facility with HRDC, recognizing the cost benefits that would be attained by each entity.
Portions of the facility could be shared, including restrooms, break rooms, office areas, vehicle
wash bay, and perhaps a mechanics bay or mechanics services. Parking areas, driving aisles,
landscaping, mechanical and electrical components could also be shared 50/50. In addition,
there would be cost savings for architectural and construction costs.
Two sites were considered: the lower yards on North Rouse Avenue (corner of Griffin and
Rouse) and property west of the landfill office building at the Story Mill Landfill site. The cost
of extending water and sewer mains and road improvements to access the Landfill site is over
$1.5M. While this area would be large enough to accommodate all City public works
departments in the future, the cost of preparing the site for construction is considerable.
The prospect of constructing a shared facility at the lower yards site has been investigated jointly
by staff and architects from each entity, and they have determined it is very feasible. The
attached sketches show a potential layout of the project. Two major questions must be answered
by the Commission before work continues on the project:
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1) Is the Commission interested in pursuing the construction of a shared facility with HRDC
for a bus barn/city vehicle maintenance shop (phase 1) on the City’s lower yards property
that will require the City entering into a 99 year lease with HRDC (required by funding
source), and if so, would the Commission sign a Memorandum of Understanding with
HRDC so work to get the project fully designed and bid can commence?
2) Will the Commission commit funding to construct, at a minimum, the City’s vehicle
maintenance facility and shared site/building components?
BACKGROUND ON CITY’S SHOPS COMPLEX: The City Shops Complex is located at
814 North Bozeman Avenue on approximately four acres. The 15,900 sq.ft. building was
constructed in 1975 and is the headquarters for the water/sewer operations, streets, forestry,
parks, facilities and maintenance, and vehicle maintenance operations. A 10,000 sq.ft. vehicle
storage shed, 1,888 sq.ft. parks barn (944 sq.ft. office and 944 storage/parking), 600 sq.ft. storage
shed (pipe storage), waste oil collection station, public water fill station, above-ground vehicle
fuel station, and vehicle and equipment parking are also on the site.
The Public Services and Parks Departments utilize the old landfill for asphalt, road mix, and
other storage, and the 8-acre lower yards on Rouse for inside (11,529 sq.ft.) and outside storage.
Approximately 50 FTE employees report to work at this facility. During the summer months, as
many as 30 seasonal employees join the workforce. The complex has no women’s shower
facility and a 280 sq.ft. break room, which can seat 18 employees (by building code occupancy),
which is not large enough for divisions to hold a staff meeting or training.
The FY2002-2006 Capital Improvement Program (CIP) identified the need for a new Shop
Complex. The decision was made to not pursue the project at that time due to lack of finances.
The FY2004-2008 CIP retained the project but recognized the need to save money over time for
the construction, and moved the construction out to FY08. Nine million dollars was estimated as
being needed to acquire a site and relocate the shop complex on 10 +/- acres.
In 2003, an architect was hired to conduct a needs assessment, to assist with determining how
much building and land area was needed for a new complex. This study recommended
combining all facilities on a minimum 20 acre site. The construction of the structures and
parking area was estimated at $9+ million. This did not include infrastructure or land costs.
PAST EFFORTS: The FY2008-12 Water and Wastewater CIPs proposed the construction of
Phase I of a shops complex at the Wastewater Treatment Plant for the water and wastewater
operations divisions. This phase would have been done in conjunction with Phase I of the
WWTP expansion, and was estimated at nearly $5 million. The project was proposed to be
funded 30% from the water utility fund ($1.5M); 30% from the wastewater utility fund ($1.5M);
20% from water impact fees ($990,000) and 20% from wastewater impact fees ($990,000. Phase
II, which would include area for the Streets, Forestry, Building Maintenance and Parks
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Divisions, was not included in the next 5-year CIP window. At the time this construction was
envisioned, we anticipated being able to abandon the I/P beds at the WWTP and use that land for
a shops complex. Upon further design of the WWTP expansion, it was determined that the I/P
beds could not be abandoned, so this location was eliminated.
In March 2007, the Commission authorized the purchase of the Cardinal Distributing property on
Evergreen Drive for $3.2 million, plus approximately $1 million for remodel. This would have
provided a facility to replace the Complex at 814 North Bozeman and all divisions and
equipment located at that site would locate to the new facility. A Buy-Sell Agreement was
signed but the deal could not be completed because of an issue with the railroad right-of-way.
Since that time, the Impact Fee consultant recommended that impact fee funds not be used for
the construction of this type of facility. Staff then began working with an architect on the design
of a facility to house just the vehicle maintenance and streets/sign & signal/forestry divisions at
the lower yards on Rouse Avenue for the $3 million remaining in the CIP for the project. It was
determined that the water operations and parks divisions could remain at the existing site, a
portion of $3 million in water and wastewater funds would be used for some remodeling at the
existing complex and the remainder would be used to essentially “buy out” the streets divisions
interest in the existing project, providing funding for the new construction. It was determined
there is adequate room at the site for this type of facility, along with some further expansion area,
and that the project could be completed in the $3M range.
SHOP COMPLEX FUNDING COMPLEXITIES: In October 2008 the bids for the
wastewater plant expansion were received, and because the bids came in considerably higher
than anticipated, the Commission determined that the $1.5M reserved in the previous CIP in the
wastewater utility fund would be reallocated to the construction of the Plant.
The FY2010-14 CIP provides $1.5M from the water utility fund for phase 1 of the shops
complex. The project consists of identifying a site (ideally, among currently owned City
properties) for the phased construction and relocation of all City Shops facilities. Thus, the work
on the vehicle maintenance / streets divisions facility was put on hold, but we asked the
architects to determine if just the vehicle maintenance portion of the project could be designed,
permitted and constructed for the remaining $1.5M. We chose this element of the project
because the vehicle maintenance facility is very inadequate for the amount of work performed
there. We were advised that it could be constructed within that budget amount.
We have recently been advised by the design engineers for the Water Treatment Plant that the
projected cost of that facility is far greater than the number that was used during the rate
adjustment study. Because of this, the projected water rate increases will need to increase
considerably from the previous projections in order to fund the water plant construction. Further,
the relocation of the just the vehicle maintenance portion of the complex to the lower yards does
not free up much area for the water operations division and there is a question of whether the
water operations division would fully benefit from the move. Thus, the availability of the $1.5M
from the water utility fund for shop complex improvements comes into question.
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FISCAL EFFECTS: Funding for the vehicle maintenance facility and shared costs would need
to be committed. Very rough estimates are in the $1.2 to $1.5M range. Funding sources are
being investigated and staff should have additional information at the Commission meeting.
ALTERNATIVES: As suggested by the City Commission.
Attachments: Two (2) sketch plans
Report compiled on March 18, 2009
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