ss_pw_2016_budget_issues

Memorandum

City of Lawrence

Public Works

TO:	David L. Corliss, City Manager
FROM:	Charles F. Soules, Director of Public Works
CC:	Diane Stoddard, Casey Toomay, Tammy Bennett, Mark Thiel
DATE:	April 22, 2015
RE:	2016 Public Works Budget Issues and Information

For detailed information about the Public Works Department functions, please review the department’s annual report. Following is a brief discussion/identification of issues and updates of various programs to consider with the development of the 2016 budget. Public Works is committed to maintaining the City’s infrastructure and facilities in good condition. We are always looking for ways to improve service delivery to meet the community’s growing expectations. Appropriate resources including tools, equipment, technology, facilities, and staffing need to be provided in order to provide those services.

1. Infrastructure: Street Maintenance Program	Emphasis on the importance to continue to fund this program. Over the last few years several major projects have been completed with the Infrastructure Sales Tax. Maintenance funding has slowly decreased and progress on improving the PCI and reducing the deterioration rate has flattened. It just takes a bad winter and wet spring to cause serious deterioration. We need to increase our curb replacement program. The City needs to be vigilant in maintaining our infrastructure; an annual program of $6 million/year is needed to maintain the current condition. The 2015 budget for street maintenance includes: Street Maintenance Program Staff Memo & Attachments Street Maintenance and CIP Presentation - Revised 02/24/15 CIP Staff Memo & Attachments Ø $1.9 million from general fund Ø $325,000 from gas tax Ø $800,000 from infrastructure sales tax Ø $140,000 from stormwater for curb & gutter There is currently not a maintenance program for downtown parking lots, brick streets or downtown alleys. When those projects are completed they are funded through the Street Maintenance Program. There is not a separate funding source for sidewalks or bike lanes. In 2016, the City will address improvements on BBP from K-10 to Kasold. The funds have been identified in the Infrastructure Sales Tax in the amount of $2.25 million.
2. Equipment: Fleet and equipment assessment	Fleet age and condition have become critical for many operations and departments. A fleet assessment completed by the Fleet Manager in 2015 found 67 percent of the municipal fleet was over seven years old, with 48 percent being greater than 10 years old. Age of the fleet is often used as a short-hand indicator of fleet condition; aging units result in decreased productivity, increased downtime, and increased maintenance costs. The Central Maintenance Garage tracks vehicle downtime and costs of repairs. Another indicator of fleet condition is the percentage of units that have exceeded the life cycle costs by 100% of the unit purchase price. The recent fleet assessment shows several divisions with more than 20% of fleet units exceeding 100% of purchase price in repair costs. The fleet covers everything from animal control units, to snow plows, dump trucks to sewer vacuums, trash trucks to public safety equipment, and so on. Deferred replacement and equipment needs for Public Works general fund, alone, would be around $2,000,000.
3. Facilities: Capital Improvements	PW maintains 40 facilities. These facilities require routine maintenance and Capital Project Maintenance (roofs, HVAC, exterior). It will continue to be important to dedicate capital improvement funding to support major maintenance projects. The Top Priority for the facilities in 2016 are: Fire/Med #3 roof replacement ($140,000) Fire/Med #5 drainage area, west side ($68,000) Senior Center elevator ($70,000) Fire/Med #5 drainage/sidewalk, eastside ($50,000) Community Health boiler replacement ($200,000) Community Health chiller replacement ($150,000) Community Health stabilization ($20,000) Municipal Airport asphalt repairs ($100,000) Senior Center seal and tuck point exterior ($180,000) Senior Center HVAC compressor replacement ($60,000) See attached memo for list of facility needs. In 2013 the New Hampshire garage was added to the facilities being maintained (a new garage sweeper is needed approx. $150,000) The facilities division is also maintaining downtown lighting (need to continue to fund pole replacement @ $100,000/ yr.). A new maintenance worker position is needed. The Santa Fe Depot will be another new facility that the City (PW or P&R) will have maintenance responsibilities and utilities costs to fund.
4. Stormwater	Stormwater Utility began in 1997 (Ordinance 6895) with a fee of $2/Equivalent Residential Unit (ERU). The last increase was 2003 to $4/ERU. The Master Plan identified 41 projects, 13 have been completed. Staff is currently working on plan revisions for the Maple Street Pump Station in North Lawrence funded through the Infrastructure Sales Tax. Plans will be complete for 23^rd and Ousdahl Storm Sewer improvements this year, however there is not an identified funding source. The Stormwater Staff consists of a maintenance crew, engineer, and part-time technician. We have not had the staff/time to assess the overall condition of the system. Attempts with summer interns have been tried. Maintenance is reactive not proactive. Auditing stormwater accounts for accuracy is behind. New MS4 (Municipal Separate Storm Sewer System) permit requires storm water sampling. A storm sewer camera (including staffing) would provide the condition of the current system. A formal lining /replacement program is needed. A rate increase would be necessary to fund these programs.
5. Traffic Calming	Currently there are 21 approved/unfunded projects, and 3 approved/unfunded Pedestrian Hybrid Beacon projects. [list attached]
6. Multi-modal Infrastructure (sidewalks and bike lanes)	The City does not have a sidewalk maintenance program. The process for deteriorating sidewalk infrastructure is based on complaints and compliance. In 2014 a sidewalk inventory was completed that identified several million dollars of sidewalks needing to be repaired and additionally approximately 47.5 miles of missing sidewalks (providing sidewalk on only one side of residential streets). A Task Force is being established to provide recommendations on improvements, the most significant will be funding.
7. Pavement Marking- Including long lines, intersection and crosswalks	Community expectations are high. The budget only includes $70,000. An intersection such as 6^th & Wakarusa will cost $25,000; crosswalks at a 4-way intersection will cost $10,000. Lane lines must also be maintained on all roads. We can paint when temperatures and moisture are favorable. Painting will last approximately 6 months. The City maintains 520 crosswalks including 60 school crosswalks.
8. Solid waste rates Landfill contract	Solid Waste rates are being evaluated at this time. The current landfill contract will expire at the end of 2015. If negotiations are not reopened, the landfill rate will increase by 3.5 percent annually ($28.92 per ton). The other pressure on the solid waste fund at this time is the depression in recycling commodity markets. The contract with the material recovery facility states the City pays $45 per ton to drop off recyclables, and is eligible for rebates based on material blends and commodity markets. Revenues from rebates were estimated over $190,000 for 2015. The markets are depressed. Rebates for the last two months were $0.
9. Solid Waste Commercial Recycling	Commercial recycling options are currently under review by the department for presentation to the City Commission. Commercial recycling will be proposed as a fee-for-service option for businesses. Due to the rate structures in the downtown district, alternatives will be presented for that area as well. City staff is getting input from downtown business owners as options are developed.
10. Street Division Facility	NEW FEMA MAPS have placed the 11^th & Haskell facility including the fueling station in the FLOODWAY. Neither repairs nor expansion at the existing site can be made. The facilities are insufficient and access is through residential areas.
11. Fiber Infrastructure	The City continues to build the fiber backbone and bring more City and other partner facilities on line. Public Works and IT are currently coordinating efforts to install this infrastructure. The City needs a Fiber/ Network Manager to plan new fiber networks, coordinate partnerships, and manage/oversee the City’s fiber infrastructure. The City also needs a Fiber Technician to repair, maintain, and install fiber. This function is currently being contracted and handled through our Traffic Division.
12. GIS Analyst	Public Works infrastructure streets, storm sewer, signal, and fiber does not have a dedicated staff person to maintain GIS information. This information is needed for project and land development and asset management. As time allows, we try to complete some of this work with other staff positions. This has been identified as a priority need for both Public Works and Information Technology Departments.
13. Right-of-Way Management	Public Works is trying to improve in the area. We are actively issuing right-of-way permits and monitoring more work being done in the right-of-way. Public Works has also absorbed event coordination and permitting. It takes part of three staff positions to manage these activities (permit fees are only $10). As construction actively increases, time to manage right-of-way issues becomes less, as we have to prioritize staff time for project management and inspection.
14. Airport	The West Apron has deteriorated and is no longer serviceable. The City applied to KDOT for funding to replace this area, however the project was not selected. The Street Division will complete this project in 2015 at a cost of approximately $100,000 for materials. In the last couple years the City has invested approx. $1.5 million to provide a sewer system and adequate water supply to the Airport for Development. In 2016 the FAA will provide funding for a Wildlife fence around the airport. This project is approximately $900,000 and the city will have a 10% match requirement. The apron in front of the terminal and the runway will need substantial maintenance in future years. These projects are on the City’s ACIP (Airport Capital Improvement Plan) which has been received by the FAA. The City leases 30 Tee Hangers (individual plane hangars).There is a waiting list for spaces. This is one priority for the Airport Advisory Board which is not eligible for FAA funding.
15. Salt	On average, it takes 5000 tons of salt annually to treat all streets. Public Work’s goal is to have 10,000 tons of salt on hand each year prior to the winter season. In 2012, we used all the salt on hand by mid-winter and everyone in Kansas needed salt at the same time Lawrence did. It was difficult to obtain. In 2014, we met our goal of material on hand and had an average winter. Budget for salt has not increased in several years, at $130,000. This will purchase close to 2,500 tons of salt. We need an additional $150,000 per year ($280,000 annually) to adequately fund the average anticipated need.
16. Traffic	With budgets remaining flat the Traffic budget is not set up to replace older technology/failing equipment. Video detection cameras have a life of 7 +/- years. Several intersections have 1^st generation equipment over 15 years old, replacement costs for an intersection is approximately $20,000. School crossing beacon notification/communication system – The current technology used for school crossing beacon commination is 20 plus year old pager based. It is no longer supported and has many failures – which result in communication failures to the beacons – meaning they do not turn on when needed. The remedy is an upgraded technology to cell phone based communications. The initial cost for conversion is approximately $65,000. Both the Traffic and Street Division use Cartegraph Software for project tracking, costs, asset management, and maintenance history. This software is also used for FEMA reporting in disasters. The current version is not supported and will cost $50,000/annually to upgrade.
17. Fleet work space	The current fleet has almost 750 units (vehicles, equipment, off-road, trailers, etc.). The Central Maintenance Garage is significantly undersized for modern equipment (such as the quints used by Fire-Medical) and technologies (such as compliance with needs to work on compressed natural gas equipment). Physical limitations of work space impact productivity in the maintenance shop. The industry standard is to provide two work bays per technician, to maximize hands-on work time while waiting for parts. Mechanics are creative in working in alternative spaces (such as outside, when weather permits). Productivity would be significantly enhanced by space improvements for this function.
18. Tub grinder	The tub grinder is critical to process materials at the compost site (both from grass/leaf collection, drop-offs, and P&R tree removal contractor). The unit was purchased in 1999 with the assistance of grant funds. No grant funds have been identified for replacement. It has experienced critical failures and has exceeded its life expectancy at this time. Life-to-date repair costs for the tub grinder have been 163% of purchase price and the unit has had over 6000 hours of downtime. Replacement is estimated to cost $450,000. Funds are not available for this purchase. If the equipment experiences catastrophic failure, operations changes would likely be required.

FYI Section

Commitments

The City has a few commitments for 2016.

After KDOT prepares the final costs for the 31^st Street project, the City will owe KDOT for right-of-way acquisition (approximately $300,000 ), and any CO (approx. $400,000). These costs may be due in 2016/2017.

Levee: The periodic inspection from 2012 identified the rip rap is deteriorating and recommended replacement. We have addressed this with the CORPS to repair/replace $50,000 of rip rap/year.

The City Commission confirmed a $2.25 million budget for improvements along BBP corridor.

Solid Waste development on Kresge property

2201 Kresge Rd

Development on Kresge will occur in phases, beginning with the HHW building. Phase I is under construction. Phase 2 will consolidate operational staff in a single building. At this time, Solid Waste collections staff stages approximately 90 people from a 2500 square foot building that is in the active floodway. The facility is extremely inadequate and could not be repaired if damaged due to location. The funding source for this development will be solid waste fund / fees.

Additional details for any of the issues are available. Please let me know if additional information is needed or if there are any questions.

Respectfully Submitted,

Charles F. Soules, P.E.

Director of Public Works

ATTACHMENT 1:

Memorandum

City of Lawrence

Public Works

TO:	Mark Thiel
FROM:	Steve Bennett
CC:	Charles Soules
DATE:	March 03, 2015
RE:	Capital Improvement Program for Facilities & Structures Division

The Facilities and Maintenance Division reviews their CIP program every year. Repairs are reviewed and assigned to the CIP spreadsheet. The highest priority items are then request to be included in the City of Lawrence Capital Improvement Plan for 2016.

Staffs main priorities are being submitted for your consideration. There are many buildings and structure repairs to be completed, but we have identified the following as the most urgent.

The staff updates a five-year improvement plan regularly. Items are then reviewed for urgency and safety. This division works on numerous buildings throughout the City of Lawrence, and tries to maintain them all equally.

The Top Priority for the Facilities and Maintenance Division are list below:

	Project	Estimated Costs	Description
1	Fire/Med #3 - Roof Replacement, 3708 W. 6th	140,000	Replace the entire roof; we have tried numerous times to repair the roof. It has many leaks.
2	Fire/Med #5 - Redesign drainage area by dorms on west side of building	18,000	Water is infiltrating the west wall and getting into the dorm area.
3	Senior Center - elevator rehabilitation	70,000	Elevator is unreliable, can’t get a service contract because of age. Replaced the pump in 2015 to keep it running.
4	Fire/Med #5 - Drainage and sidewalk repairs east side	50,000	Removal and redesign Concrete walk on east side of Fire Station. Funnels water into building.
5	Community Health Building - replace boilers	200,000	Replace all boilers. Old and obsolete. No repair parts available.
6	Community Health Building - Chiller replacement	150,000	Original Chiller, unreliable and energy inefficient.
7	Community Health Building -Stabilization	20,000	Building has an area where the ground floor is settling.
8	Lawrence Municipal airport - asphalt repairs	100,000	The apron and taxi areas around the hangers have deteriorated.
9	Senior Center - seal and tuck point exterior	180,000	Seal and tuck point entire building. Tuck pointing has deteriorated and bricks are cracked or missing. Water is penetrating the building.
10	Senior Center - HVAC compressor replacement	60,000	The compressors are old, constant repairs needed. Very energy inefficient.
	Top Priority Total	$988,000.00

Additional Maintenance Items needed:

	Project	Estimated Costs	Description
11	Salt dome West 40 – roof replacement	150,000	Replace the roof the salt dome. Roof is in bad condition. This has been put off for the last couple of years.
12	City Hall – misc. concrete repairs	30,000	Concrete around City Hall has cracked and settled.
13	Vehicle Maintenance Garage -furnace	10,000	Replace main furnace for the garage. This is a large heater that operates when the overhead doors are opened to keep the building heated.
14	Vehicle Maintenance Garage -overhead heaters	30,000	Replace overhead heaters in the bay areas of the garage.
15	Vehicle Maintenance Garage -lighting	20,000	Replace the shop area lighting with better and energy efficient lighting.
16	Senior Center – concrete replacement	25,000	Replace broken and uneven concrete around the building.
17	Riverfront Parking Garage –Painting and seal electrical room	40,000	Paint all the metal on the Parking garage. It has flaked off and metal rusting.
18	Riverfront Parking Garage - concrete replacement	30,000	Replace and repair concrete on the ramp area of the parking garage.
19	City Hall – windows replacement	500,000	Replace all windows in City Hall, They are inoperable, deteriorated, and are not energy efficient.
	Total	1,823,000

Douglas County Senior Center:

See attachment A

Fire and Medical Buildings:

See attachment B

Summary:

The Facilities and Maintenance Division meets with buildings occupants during the year, to get their input for maintenance items that impact the operation of the facility. We update the 5 year improvement plan as necessary.

The Facilities division does an executive summary of all buildings. This report tracks and list the age and condition of the building. We also include repairs made, needed and energy improvements made to the building. This is updated throughout the year.

We have listed our top priorities for the 2015 Capital Improvement Budget. Although other items may come up during the year, and other departments may have priority items, these are the items we feel need the most immediate attention.