ITEM 9-B
Council Meeting: October 24, 2000
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Recommendation to Approve in Concept Two Proposed Corporation Yards Master Plan Alternatives, Authorize the City Manager to Negotiate an Agreement with Southern California Disposal for Lease of Property and Facilities, and Authorize the City Manager to Negotiate an Amended Agreement with Allen Company for Provision of Recycling Services.
INTRODUCTION
This report recommends that the City Council approve in concept two proposed Corporation Yards Master Plan alternatives, authorize the City Manager to negotiate an agreement with Southern California Disposal for lease of property and facilities, and negotiate an amended agreement with Allen Company for provision of recycling processing services to the City.
BACKGROUND
The City Corporation Yards, located near the intersection of Twenty-fourth Street and Michigan Avenue, has been used by the City as a headquarters for field operations since the 1940s. The City divisions that occupy the Yards include Solid Waste Management, Street Sweeping, Fleet Maintenance, Street Maintenance, Maintenance Management, Facilities Maintenance, the Central Warehouse, Water and Wastewater Operations, Traffic Operations, and the Household Hazardous Waste Collection Facility. Also located at the City Yards are the City's Solid Waste Transfer Facility, which processes up to 400 tons of solid waste per day from Santa Monica residents and businesses, and the Recycling Buy-Back and Processing Center operated by the Allen Company under a contract with the City (see Exhibit A).
Today, the City Yards currently houses approximately twice the functions and many times the employees as it was originally designed to accommodate. The scope and breadth of the operating divisions have evolved over time, and their functional needs are no longer met by the facility. The facilities do not meet current federal, state and/or local requirements. Deficiencies include inadequate shop space and hoist facilities to repair and maintain heavy duty vehicles, antiquated and inefficient loading facilities at the refuse transfer station for long haul transfer trucks, inadequate restroom, locker and clean-up/changing facilities for employees, a shortage of parking for both City and employee vehicles, difficult and unsafe traffic circulation within and around the City Yards for both City vehicles and members of the public, and insufficient space and facilities to adequately serve members of the public at the various City Yards offices. To address these problems, in 1996 the City engaged RNL/Interplan, Inc. to prepare a Master Plan that would address the physical reorganization, renovation and rehabilitation needs of the City Yards.
DISCUSSION
Working closely with City staff, RNL/Interplan has developed alternative City Yard Master Plan scenarios which address operational problems with the existing facilities, achieve acceptable maintenance and safety standards for employees and the public, and accommodate the current and projected space needs for the staff and vehicles of the various City services housed at the City Yards.
The preferred alternative, Alternative A (see Exhibit B) meets the space needs, provides new and improved facilities within the shortest time frame, and requires the minimum amount of temporary facilities and outsourcing while the Plan is being implemented. The preferred alternative depends upon negotiation of a cooperative agreement with Southern California Disposal. If negotiations should not prove fruitful, staff recommends that Alternative B be pursued (see Exhibit C). Alternative B would require relocation and construction of a new transfer station facility, relocation and construction of a new fire training facility and construction of a taller parking structure. Alternative B would also involve more outsourcing of services and would result in a longer duration of construction and increased costs.
The estimated range of cost for the two alternatives is between $45 million and $55 million. The General, Solid Waste Management, Water, Wastewater and Vehicle Management Funds would share this cost based on pro-rata allocations of space in the City Yards. Construction of Alternative A, in the best-case scenario, would take approximately seven years and would be phased according to the plan outlined below (See Exhibit D).
Phase 1 -
During the first stage of Phase I, the Southern California Disposal (SCD) transfer station would be expanded to accommodate the City's needs, and new truck scales and a diversion area would be constructed on a combination of City and SCD property. Next, the City's existing transfer station would be demolished and a new household hazardous waste facility would be constructed. The third stage would involve relocation and expansion by the Allen Company of the Recycling Buyback and Processing Center on City property. As the final stage, the household hazardous waste collection facility would relocate to the new building.
Phase 2 -
In Phase 2, the existing two-story, 12,000 square foot building at 2330 Michigan Avenue, which was recently leased with an option to buy by the City, would be remodeled to accommodate City operations. The adjacent parking area would be re-paved and re-striped to accommodate City vehicles.
Phase 3 -
In Phase 3, the bulk of the current employee parking would be temporarily relocated to a portion of the Recycling site to construct a one-story, 25,000 square foot vehicle maintenance building, a warehouse, construction materials storage bunkers, a general Yards storage area, and vehicle fueling and wash facilities.
Phase 4 -
In Phase 4, the maintenance shops and offices would be moved to temporary facilities at the Yards storage area, and the current vehicle maintenance building, shops, offices and warehouse would be demolished. A one-story, 30,000 square foot operations building; a three-story, 29,100 square foot administration building, grade level parking areas and a one-story, 4,250 square foot fire training building would be constructed. All of the maintenance and water/wastewater operations would then move into their new permanent facilities.
Phase 5 -
In Phase 5, the vacated Water/Wastewater shops and offices would be demolished and a new three-story, 231,000 square foot parking structure would be constructed to provide 533 parking spaces for City and employee vehicles. Much of the parking structure would be accessible from Michigan Avenue and could provide parking on a contract basis during off hours for events at Bergamot Station or other properties close to the City Yards. The temporary employee parking at the Recycling site would be relocated to the new parking structure, allowing the Allen Company to complete expansion of the Recycling Center.
Southern California Disposal Company
During the Master Plan development process it was determined that significant benefits could be achieved by the City through a well structured business partnership with the Southern California Disposal Company. SCD owns and operates a refuse transfer station on Frank Street which is within 100 yards of the City's transfer station. The firm also owns property next to its transfer station and next to City Yards property on the east side of Frank Street. The SCD transfer station is permitted by the State to process up to 1,060 tons per day (tpd) of refuse. The City's transfer station is permitted to process up to 400 tpd of refuse.
In preliminary discussions with SCD management, the company has expressed interest in entering into negotiations with the City to arrive at a mutually beneficial agreement which would allow the City to provide for its long-term waste diversion and transfer needs in the most cost-effective manner and allow SCD to fully utilize the economic potential of its transfer station facility and adjacent properties. The City's analysis supports the conclusion that a property lease and joint use agreement between the City and SCD may be the optimum strategy for the City and should be fully explored.
Allen Company
The Allen Company has operated a Recycling Buyback and Processing Center under contract with the City since 1994. The contract between the Allen Company and the City expires in 2004. During the period of their contract with the City, the Allen Company has provided excellent service and has been flexible and adaptable to the City's evolving needs. In preliminary discussions about the proposed Master Plan, the Allen Company has expressed interest in negotiating an amended agreement with the City which would be compatible with the Master Plan and facilitate investment by the Allen Company in new facilities and equipment to service the City's programs. Such an agreement has the potential to significantly enhance the City's waste diversion options.
Upon Council approval of the recommendations in this staff report, City staff will enter into negotiations with SCD and the Allen Company to determine if mutually beneficial agreements are achievable. Staff will return to Council in February or March, 2001 with a report on the outcome of these negotiations and a recommendation either to proceed with execution of agreements or, if negotiations are not fruitful, pursue City Yards Master Plan Alternative B.
Design and Environmental Review Consultants
In order to move forward with the proposed Master Plan, an Environmental Impact Report must be completed. Both Master Plan alternatives (A and B) will be evaluated in the EIR. Staff will initiate and complete the selection processes for an environmental review consultant and a design consultant to provide architect and engineering services, on a phased basis.
BUDGET/FINANCIAL IMPACT
Approval in concept of the proposed City Yards Master Plans does not have a fiscal/budget impact. Once negotiations with Southern California Disposal and the Allen Company are completed, staff will return to Council with recommendations and a comprehensive multi-year financing and budgeting plan.
RECOMMENDATIONS
City staff recommends that the City Council:
1. Approve in concept the Two Proposed City Corporation Yards Master Plan Alternatives;
2. Authorize the City Manager to negotiate an agreement with Southern California Disposal for lease of property and facilities; and
3. Authorize the City Manager to negotiate an amended agreement with Allen Company for provision of recycling services to the City.
Prepared by:
Craig Perkins, Director of Environmental and Public Works Management
Anthony Antich, City Engineer
Joe Delaney, Solid Waste Operations Manager
Lauren Friedman, Senior Architect
Lorrie Brown, Civil Engineering Associate
Exhibits: Electronic versions of Exhibits "A-E" are not available for review. Hard copies of the exhibits are available at the City Clerk's Office and Public Libraries.
A. Existing Site Plan
B. Alternative A Master Plan Site Plan
C. Alternative B Master Plan Site Plan
D. Phasing Plan for Alternative A
E. Phasing for Alternative A/Existing Plan