12/14/1977 Meeting - Laserfiche WebLink

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Res. No. 2799--Authorizing formation of County service district re: wastewater management was read by number and title. Mr. Haws moved, seconded by Mr. Delay, to adopt the ~ resolution. Motion carried unanimously. . III. Land Acquisition for Consolidated Maintenance Facility--Memo distributed. Manager noted this project had been in process for at least eight years, at which time a study by an outside organization advised the City to take the step in consolidating maintenance facilities in the interests of efficiency of operation. Council had taken a tour of the County shops which will be vacated April- 30, 1978. The City has an option to purchase the property, shops, and equipment in place, for $575,000; the option expires January 2, 1978. Ken Hatch, supervising engineer, said the concept of centralized mainte- nance means the City would consolidate its fleet maintenance activities into a single shop and place management under one professional manager. The two basic reasons for taking this action would result in more effi- cient service and use of people with experts running the operation, and would reduce the cost of operations, which he noted were skyrocketing. He said in the last ten years the City maintenance costs have risen 562 percent with an annual cost increase of over 15 percent per year. He noted the City's maintenance facilities are now highly diversified in five different departments requiring five separate supervision staffs. The centralized maintenance concept has been in process since the study done eight years ago, and since that time staff had been looking at locations and evaluating prices for such consolidation. In 1974 the .~ estimated price for such a maintenance facility was $1.75 million. Later ~ . in 1974 it became apparent that the County was going to vacate its facili- ties on Roosevelt Boulevard. The facilities appeared to provide enough space for the City maintenance facilities, with an excess of ten percent space in which to expand. Also, there is enough acreage for future building expansion. He noted the extremely crowded conditions of the present City facilities and the fact that the City insurance company had indicated the need to develop more space because of the crowded unsafe working conditions. Last year City Council approved an option agreement with Lane County to purchase the property for $575,000. Mr. Hatch said this was one-fourth to one-third what the cost would be if the City were going to construct its own consolidated maintenance facility. He felt in the interest of the economy to be achieved and to provide a base for future expansion, Council should approve. In response to a question from Mr. Haws, Mr. Hatch said this purchase would pay for itself in three to five years. In projecting out budget operations, he noted $138,000 more would be needed for the City to maintain its facilities this year if the consolidation were not achieved. Therefore, it would take only a three-to-five year period to make up the $575,000. Mr. Haws moved, seconded by Mr. Delay, to authorize City Manager to exercise option for purchase of property lo- cated at 1820 Roosevelt Boulevard for central maintenance facility. Motion carried unanimously. . 12/14/77--4 ~ qt3