AGENDA #8.1
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Contract and Budget Amendment for Preliminary Design Services for Town Operations Center
DATE: December 12, 2002
This memorandum was intended to be distributed on Friday, December 6, for the December 9 Council meeting. We regret that lack of power has delayed the distribution until today, and we explain below the scheduling pressure that has led us to request your consideration a day after you receive this item.
The following resolution would authorize the Town Manager to execute a contract with Corley Redfoot Zack for preliminary design services for the Town Operations Center on Millhouse Road, north of Eubanks Road.
The following budget ordinance would amend the General Fund and Transportation Fund budgets to accommodate the cost of the contract.
The Public Works and Transportation Departments are located on land owned by the University on the Horace Williams Tract. The rent is $1 a year, and the 30-year term ends on December 31, 2006. Over the past several years, the Town has talked with the University about extending the lease, but the University has declined to do so.
In June, 2001, the Town Council purchased 54 acres for part of the new site for the Public Works and Transportation Departments. In December 2001, John Allen and Ann Cates gifted to the Town 7 acres of land adjacent to the northern border of this site. In September 2002, the Council approved the purchase of a 14-acre tract adjacent to the original acquisition. Closing on this purchase is scheduled for this calendar year.
Attachment #1 shows the location of the combined 75-acre site between Millhouse Road and I-40. Attachment #2 is a more detailed site map showing the stream that bisects the site and serves as the jurisdictional boundary between Chapel Hill and Orange County.
In July 2002, we advertised for proposals from consultant teams to provide preliminary design services for this project, including a needs assessment, site analysis, conceptual site plan and preliminary cost estimates. We received 16 proposals and followed a multi-step process that resulted in negotiations with a team led by Corley Redfoot Zack. The team also includes the national firm of Parsons Brinckerhoff with expertise in transit and public works facilities, and four local firms with different specialties.
There are four years and three weeks until the Town’s Transportation, Public Works, and Police impoundment lot operations must vacate the Horace Williams site. The County’s animal shelter, Solid Waste offices and small recycling operations must go as well. Between now and December 31, 2006, we must design, finance, build, equip and occupy a new operations site on Millhouse Road, north of Eubanks Road. The first steps are those needed to determine the space needs that can be accommodated, a detailed site analysis, and a conceptual site plan that respects the findings of the site analysis and accommodates the various uses to be made of the site. Once that work is completed, it would be possible to project the cost of the development of the new site. That cost estimate is essential to begin the process of procuring a federal grant for most of the Transportation Department costs and determining the financing of the rest of the costs.
We believe that the Council may want to consider a bond referendum this fall in order to carry out the timely completion of this project. In order to provide that choice to the Council, we would need to suggest a general budget figure in late June and provide a more specific number for the Council’s consideration no later that the Council’s August 25 meeting. We believe that it is necessary to begin immediately the preliminary architectural and engineering work in order to meet these deadlines.
Design Process
The scope of services includes a process that lays out all the tasks needed. Some of the work would be going on concurrently. For example, the consultants will begin the site analysis immediately, even while they are preparing and conducting the first questionnaires, inventories and interviews for the needs assessment. The consultants will be paying careful attention during the site analysis to this community’s concern for sustainable development, including the protection of streams, preservation of stream buffers, establishment of perimeter buffers; cutting edge stormwater management techniques; and energy efficient siting of buildings.
As part of the needs assessment, the consultants would include an inventory of present space, vehicles, equipment and procedures as well as their advice on the best practices for transit and public works operations based on their long nation-wide experience. Staff and consultants would work together to project needs 30 years into the future. Our intent would be to plan to accommodate our needs 30 years off, but not to build all the facilities in the first phase. For example, utilities would be sized and located and space would be reserved in the site plan, so that expansions could take place in the most efficient, most flexible and cost-effective way.
Public Process
The process for this design work would include scheduled opportunities for input from the public and decisions by the Council. There would also be carefully scheduled times for staff review of the consultants’ work. We anticipate presenting a detailed proposal to the Council at the January 13 meeting which would include a Design Advisory Committee composed of neighbors of the site, other Chapel Hill residents, representatives of several Town advisory boards and Council Members.
Scope of Services
State statutes require that we select architect and engineering services through consideration of qualifications of each candidate firm or team of firms. Once the most qualified firm is selected, we may negotiate a price. If a mutually acceptable price cannot be reached with the first firm, then negotiations begin with the next most qualified firm.
We have reached agreement on a scope of services and what we believe is a reasonable price with Corley Redfoot Zack, the firm we found most qualified. This contract would cover the most important research and fundamental decisions in this project. We expect the Town Operations Center would be the largest and most expensive construction project the Town has ever undertaken, with an estimated project cost in the range of $20 to $30 million. Therefore, we believe that we must proceed carefully and thoroughly in the preliminary work described above, because our remaining design work, construction and life cycle costs, operating efficiency and financing decisions will be based on the analyses developed and conclusions reached during the next several months.
Costs
The negotiated price for this contract is $303,000, including reimbursable expenses such as travel for Parsons Brinckerhoff, surveying, soil borings, printing and copying. We estimate that the traffic impact analysis required to project costs of off-site road and signal improvements will cost about $17,000. Because neither the reimbursable expenses nor the price of the traffic impact analysis are firm, we suggest adding a contingency amount of 5%, or $16,000, for a total budget of $336,000.
Both the Transportation Department and the Public Works Department will be housed on the site. We believe that a single site plan, a single needs assessment and a design process that looks for the most efficient use of space, stormwater management, utility and driveway design, will result in the best plan. An integrated approach would allow for the most efficient sharing of facilities such as water and sewer lines, a sewer pump station, a fueling station and parking areas. Because we do not have sufficient data at this point to allocate costs for an integrated design process, we believe that charging half the design cost to the Transportation Fund and half to the General Fund would be fair and reasonable.
The Public Works Department could pay most of its $168,000 share with the remaining $150,000 of 1996 Public Works Bonds, assuming the remaining bonds are sold in early 2003. The remaining $18,000 could come from the additional revenues from the State which the Council considered in November and will again consider in January. We believe that funding for the General Fund’s share of additional design work and the construction would need to be financed with long term instruments such as general obligation bonds or certificates of participation.
The Transportation Department could take its $168,000 share of the design costs from its Capital Reserve Fund. Such an expenditure would require its replacement next year in the capital reserve fund for replacing buses. We anticipate that funding for the remaining design work and the construction might be available from the Federal Transportation Administration. Such capital funding might be available at 80% or 90% of the total, with the Town’s share being the remainder. We have been following federal procedures in land acquisition and consultant selection, so that we will be able to count the costs of land acquisition and this preliminary design contract as part of the Town’s share of the total cost.
NEXT STEPS
If the Council approves the execution of the contract with Corley Redfoot Zack and the necessary budget amendments, the consultants would begin work the next day. Our objective is to provide a conceptual plan and cost estimates to the Council by late spring. The process to reach that point will include opportunities for Council and public input. On January 13, we will present a detailed proposal for general public input, advice from a Design Advisory Committee and for Council decision-making.
We believe that once the consultants have completed the conceptual site plan and design criteria, they would be ready to produce a reasonably accurate cost estimate. With this cost figure, it would be possible to apply for a capital funding grant from the Federal Transportation Administration (FTA) and for the Council to consider the best financing methods for the portion that FTA would not fund.
RECOMMENDATION
We recommend that the Council adopt the following resolution authorizing the Town Manager to execute a contract with Corley Redfoot Zack for $303,000, for preliminary design and planning work on the new Town Operations Center.
Funding of $168,000 for the General Fund functions could come from the 1996 Public Works bonds ($150,000) and from $18,000 in additional State revenues expected this year. The attached budget ordinance (O-2) would transfer $18,000 from the General Fund to amend and supplement the $150,000 already available in the existing Public Works Bond project ordinance (O-3).
We also recommend that the Council enact the following project budget ordinance that would establish an initial project budget (O-4) for transportation portion of the Town Operations Center. This budget ordinance would be a multi-year project ordinance that could be amended later as needed. Initial funding for the transit portion of the project would come from the Transportation Capital Reserve Fund.
ATTACHMENTS
A RESOLUTION AUTHORIZING THE TOWN MANAGER TO EXECUTE A CONTRACT WITH CORLEY REDFOOT ZACK FOR PRELIMINARY PLANNING AND DESIGN SERVICES FOR THE NEW TOWN OPERATIONS CENTER (2002-12-12/R-12.1)
WHEREAS, the Council has determined that a new operations center is necessary for the Transportation and Public Works Departments to occupy by January 1, 2007; and
WHEREAS, a site has been acquired and a budget needs to be developed; and
WHEREAS, Corley Redfoot Zack has emerged from a multi-step selection process from among 16 potential design teams as the most qualified firm;
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Manager is authorized, consistent with the terms and price mentioned in the Manager’s memorandum of December 12, 2002, to execute a contract with said firm for services including a site analysis, needs assessment, conceptual site plan and preliminary cost estimate for a Town Operations Center on Millhouse Road, north of Eubanks Road.
This the 12th day of December, 2002.
AN ORDINANCE TO AMEND "THE ORDINANCE CONCERNING APPROPRIATIONS AND THE RAISING OF REVENUE FOR THE FISCAL YEAR BEGINNING JULY 1, 2002” (2002-12-12/O-2)
BE IT ORDAINED by the Council of the Town of Chapel Hill that the Budget Ordinance entitled "An Ordinance Concerning Appropriations and the Raising of Revenue for the Fiscal Year Beginning July 1, 2002" as duly adopted on July 26, 2002, be and the same is hereby amended as follows:
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ARTICLE I |
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APPROPRIATIONS |
Current Budget |
Increase |
Decrease |
Revised Budget |
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GENERAL FUND |
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Non-Departmental |
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Transfer to Public Works Capital Project Bond Fund |
0 |
18,000 |
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18,000 |
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ARTICLE II |
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REVENUES |
Current Budget |
Increase |
Decrease |
Revised Budget |
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GENERAL FUND |
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State Shared Revenues |
9,171,000 |
18,000 |
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9,179,000 |
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This the 12th day of December, 2002.
AN ORDINANCE TO AMEND THE CAPITAL PROJECTS ORDINANCE FOR RENOVATIONS AND IMPROVEMENTS TO PUBLIC WORKS FACILITIES FUNDED FROM 1996 BONDS (2002-12-12/O-3)
BE IT ORDAINED by the Council of the Town of Chapel Hill that, pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, that the capital project established for Public Works Facility renovations funded from 1996 bonds approved by the voters in November 1996 is hereby amended as follows:
The capital projects as authorized by bond referenda approved in November, 1996 and as determined by the Town Council, includes the capital costs of renovating and adding facilities to support Public Works operations.
SECTION II
The Manager of the Town of Chapel Hill is hereby directed to proceed with implementation of these projects within terms of funds appropriated herein.
SECTION III
Revenues anticipated to be available to the Town to complete the project are amended as follows:
Current Revised
Budget Budget
Bond Proceeds 500,000 500,000
Transfer from General Fund 0 18,000
Total 500,000 518,000
Amounts appropriated for the project are amended as follows:
Current Revised
Budget Budget
Public Works Renovations and Improvements 500,000 518,000
SECTION IV
The Manager is directed to report annually on the financial status of the project in an informational section to be included in the Annual Budget, and shall keep the Council informed of any unusual occurrences.
Copies of this ordinance shall be entered into the Minutes of the Council and copies shall be filed within 5 days of adoption with the Manager, Finance Director and Clerk.
This the 12th day of December, 2002.
AN ORDINANCE ESTABLISHING A CAPITAL PROJECT ORDINANCE FOR A NEW TRANSPORTATION OPERATIONS CENTER (2002-12-12/0-4)
BE IT ORDAINED by the Council of the Town of Chapel Hill that, pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, a grant project ordinance is hereby established as follows.
SECTION I
Funds available for this project include local contributions from the Town’s Transportation Capital Reserve Fund and potential grants and agreements from the Federal Transit Administration.
SECTION II
The Manager of the Town of Chapel Hill is hereby directed to proceed with the implementation of the project within the terms of grant agreements executed with the Federal Transit Administration and the funds appropriated herein.
SECTION III
Initial revenues anticipated to be available to the Town to complete activities as outlined in the project budget are as follows:
Amount
Town of Chapel Hill (local match from
Transportation Capital Reserve Fund) 168,000
SECTION IV
Initial amounts appropriated for the project are as follows:
Amount
Transportation Operations Center 168,000
SECTION V
The Manager is directed to report annually on the financial status of the project in an information section to be included in the Annual Budget, and shall keep the Council informed of any unusual circumstances.
Copies of this project ordinance shall be entered into the Minutes of the Council and copies shall be filed within 5 days of adoption with the Manager, Finance Director and Town Clerk.
This the 12th day of December, 2002.