HomeMy WebLinkAboutItem A: Tour of Eugene Water & Electric Board Riverfront Site and Discussion of Relocation Project
ECC
UGENE ITY OUNCIL
AIS
GENDA TEM UMMARY
Work Session: Tour of Eugene Water & Electric Board Riverfront Site and
Discussion of Relocation Project
Meeting Date: November 15, 2006 Agenda Item Number: A
Department: City Manager’s Office Staff Contact: Jim Carlson
www.eugene-or.gov Contact Telephone Number: 682-5524
ISSUE STATEMENT
City Council support is essential to Eugene Water & Electric Board’s (EWEB) financing of the
proposed move of its operations from the riverfront site to a site in West Eugene, located at the southeast
corner of Beltline Road and Roosevelt Boulevard. The Roosevelt site is approximately 52 acres in size
and is zoned for industrial use.
The purpose of the tour, which will commence at 12:15 p.m., is to lay the foundation for the council’s
understanding of the need to relocate EWEB’s operations, and to enhance council understanding of the
financing component of the move, once that decision is made by the EWEB Board. Sandra Bishop,
EWEB Board President, will welcome the Mayor and City Council in front of EWEB headquarters.
During the tour, EWEB staff will provide the council with an update on the current status and projected
schedule for the Roosevelt Building project. Time is being reserved after the tour (12:45-1:15 p.m.) for
councilors to ask questions and comment on EWEB’s plans. This meeting will convene in the EWEB
Training Center (lunch will be provided).
Four out of five EWEB commissioners are planning to attend the tour, and will therefore be noticed as a
public meeting. Staff hopes to schedule a joint meeting with council sometime early next year to more
thoroughly discuss the policy issues involved and additional formal and informal meetings may also be
scheduled in 2007.
BACKGROUND
The attached memoranda from Ken Beeson provide background as to why and when EWEB plans to
move its operations from the riverfront site to the Roosevelt site. He has also provided information that
details construction financing.
RELATED CITY POLICIES
This is a tour, followed by brief discussion. A joint meeting to deliberate policy issues will be scheduled
in the near future.
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COUNCIL OPTIONS
No options are presented at this time.
CITY MANAGER’S RECOMMENDATION
No recommendation is made by the City Manager, as this tour/meeting is informational only.
SUGGESTED MOTION
No motion is suggested for this item.
ATTACHMENTS
A.Memorandum from Ken Beeson, EWEB Roosevelt Building Project Manager Concerning EWEB
Roosevelt Project Review
B.Memorandum from Ken Beeson Concerning Roosevelt Construction Financing
FOR MORE INFORMATION
Staff Contact: Jim Carlson
Telephone: 682-5524
Staff E-Mail: james.r.carlson@ci.eugene.or.us
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M E M O R A N D U M
EUGENE WATER & ELECTRIC BOARD
GENERAL MANAGER’S DIVISION
TO: Eugene City Council
FROM: Ken Beeson, EWEB Roosevelt Building Project Manager
DATE: November 2, 2006
EWEB Relocation Project Review - Council Work Session November 15, 2006
SUBJECT:
_________________________________________________________________________________
In preparation for the City Council November 15, 2006 Work Session visit to the EWEB
Headquarter’s site, please find attached the following material related to the EWEB Relocation
Project:
1.“EWEB Relocation Project Review” provides a review and summary of EWEB’s riverfront
site planning process and the EWEB Roosevelt Building Project.
2.“EWEB Riverfront Site Plan”
Attachments
C: EWEB Commissioners
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Eugene Water & Electric Board
EWEB Relocation Project Review
Background.
Since the mid-1990s, the Eugene Water & Electric Board has studied whether to move all or part of its operations
along the Willamette River in downtown Eugene. Much of the current non-headquarters operating facilities need
replacement, and the 27-acre property has access and congestion problems that hinder water and electric utility
operations.
In November 2005, after a year of detailed review and analysis, the EWEB Board received a “30% design” study
which described two alternatives for development of new EWEB headquarters and operations facilities: a) a
“combined facility alternative” – providing for relocation of all EWEB functions to a new location near Roosevelt
and Beltline, and b) a “split alternative” – where administrative and public service functions would remain
downtown and electric and water operations would move to west Eugene.
In February 2006, the Board decided on the “split alternative” and directed staff to pursue final design to relocate
the utility’s operating and engineering functions to the Roosevelt site. The current administrative staff and
customer service functions will remain in the headquarters building on the riverfront in Eugene.
Riverfront Site Planning Project.
The decision to relocate a portion of the EWEB operation raised the question of how to plan for the functions that
would remain on the site, as well as the land that EWEB would no longer need. A project team was formed to
develop a project scope for work intended to result in a Board Approved Master Plan that meets City planning
requirements. Completion of this planning work is expected by December 2007.
Purpose of EWEB’s planning for the Riverfront Site. The scope of work that will guide creation of an overall
plan for the Riverfront site acknowledges EWEB’s goals and objectives as well as those expressed by the City of
Eugene in the Downtown Plan.
EWEB Vision: In April 2000, EWEB Commissioners adopted the following goals to guide planning
work for the riverfront site (“Eugene Water & Electric Board Headquarters Visioning”, April 18, 2000,
Page 1):
1.
Protect the Riparian Edge,
2.
Maximize Operational Efficiencies, and
3.
Minimize Rate Impacts to our Ratepayers.
Eugene Downtown Plan: In April 2004, the Eugene City Council approved the “Eugene Downtown
Plan” as “a framework” for Downtown Eugene. The plan calls for the City to “Partner with EWEB to
develop a master plan for the EWEB site.” Principles to be applied to the riverfront site include creating a
“people place” that is accessible and multi-use; provide appropriate setbacks; incorporate appropriate
building and site design and incorporate educational aspects into the site.
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EWEB’s role in site planning.EWEB staff is working with City planning staff and legal counsel to clarify
EWEB’s authority and role in performing master planning type work for EWEB property. EWEB understands
that the Downtown Plan requires that a Master Plan be prepared before any land use action can be taken at the
riverfront site. However, EWEB is not in the business of land use planning and is exploring how best to meet the
requirements of the Downtown Plan while also meeting its fiduciary responsibility to customers to maximize the
value of the utility’s assets, including property.
However, while it is important to plan for the future use of the riverfront site, EWEB’s primary focus over the
next several months is on designing its new Roosevelt facility and financing the relocation. EWEB cannot vacate
portions of its riverfront property until these design plans are completed and bond financing is assured.
Schedule for Preliminary Planning work on the EWEB Riverfront Site. Initial EWEB Site PlanningWork
involves preliminary planning for the EWEB riverfront site, and includes identifying possible lot line adjustments
and easement locations, identifying applicable Metro Plan land use designations, determining possible zoning for
identified parcels, and determining how best to meet City planning requirements (July 2006 – September 2007).
The second phase of EWEB Site Planning will is expected to begin after bond authorization for the construction
of the Roosevelt Site has been obtained (as early as summer 2007). EWEB would begin work on a Metro Plan
Amendment, Zone Change, re-aligning tax lot lines, and related land-use changes needed to maximize the value of
the land for possible sale.
Roosevelt Building Project Summary and Status.
The Roosevelt site, located at the southeast corner of Beltline Road and Roosevelt Boulevard, is approximately
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52 acres in size and is zoned for industrial use. The site has previously been used as farmland and, more
recently, for lumber mill operations. Approximately half of the site is comprised of wetlands, which EWEB will
retain as a natural feature.
There are three new buildings planned including an operations building (set to house electric and water operations
and engineering functions), a warehouse, and a fleet operations center. Also planned is a storage yard for electric
and water material and equipment, and employee parking. The site plan also includes space for a future
construction of an Administration Building.
Design Status. Final design for the Roosevelt project is being led for EWEB by PIVOT Architecture of Eugene
and is expected to be complete by the end of 2007. The initial phase of design (design development) is expected
to be substantially complete by April 2007 and includes completion of a project cost estimate for use in the
construction funding decision.
Design for Performance. Current design work includes finalizing work area locations and space and
equipment requirements. During the next several months, architectural, structural, electrical, mechanical,
and civil plans describing systems and components will be completed. Constructability reviews will be
ongoing with advice from the Construction Manager / General Contractor (see below). Basic systems will
be evaluated for suitability and cost versus the final use or design intent.
Design for Sustainability. It is EWEB’s desire to design and develop the Roosevelt site in a way that is
sustainable not only to ensure that our community and customers can realize the associated benefits, but
also to provide leadership in the community by demonstrating how to develop an industrial site in a
sustainable manner. To that end, EWEB is working to obtain LEED certification for the development.
In 2006, EWEB purchased approximately 46 acres at the southeast corner of Roosevelt and Beltline. EWEB is currently
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completing purchase from Union Pacific Railroad of an additional 6 acres adjacent to and south of the original property.
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Some sustainability design features include (1) enhancing and maintaining a significant portion of the
wetlands associated with the site, (2) working to ensure the facilities are energy efficient, (3) designing
the storm water system to capture all storm water on site and not utilize the community storm sewer
system, and (4) reviewing the possible use of a “living machine” that would allow all sanitary effluent to
be handled on site with out connection to the city sanitary sewer system.
Design for Economy. As is the case with most other construction projects in this community and this
region, we are very concerned about how the February 2007 estimate will compare to the June 2006
project budget estimate and how rising construction and material costs will impact the project. One step
we have taken to address this concern has been to hire a construction manager / general contractor
(CM/GC) (Lease Crutcher Lewis) to work with EWEB and the architect during design, provide
constructability review and input as part of the design process, and help ensure economical completion of
the project.
Permitting. There are two significant permits required for completion of the facility: a Building Permit from the
City and a Joint Removal-Fill Permit from the Oregon Department of State Lands and the Corps of Engineers.
All permitting is currently underway.
Project Cost and Funding Process. In June, prior to commencement of the final design, the Board approved a
budget estimate of $72.3 million for the Roosevelt project. This amount was based in part on the November
2005 30% design estimate and included a 5% reduction requested by the Board. As mentioned earlier, another
cost estimate based on design development work will be prepared in February 2007. It is expected this estimate
will provide the basis for a Board decision in the March/April 2007 period on whether to proceed with
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authorization for bond funding for the Roosevelt project construction. This Board decision will also address
whether to utilize the URBA process (whereby notice of the proposed bond issue is placed in the paper and,
following a 60 day remonstrance period during which 5% of the registered voters in the City can petition to have
the question referred to the ballot) or refer the question to a ballot. Either decision will also require City Council
authorization.
Based on current schedule assumptions, EWEB staff believes successful use of URBA would allow construction
to begin in the summer of 2007 with completion of the project by summer 2009. Referral to a ballot would
probably delay a funding approval until fall 2007 which would delay construction to the 2008 – 2010 time frame.
Community Communication. A communication plan to support successful completion of this project has been
completed and implemented. Objectives include ensuring that Eugene citizens, EWEB customers and employees
know what EWEB is doing and why, ensuring that resident and business owners in the Roosevelt area are kept
informed about the project, and being sure that the city staff and council are aware of our work and progress.
Schedule. Current Project schedule assumptions include:
-Final Design - August 2006 – December 2007
-Construction Funding Cost Estimate – March 2007
-Construction Financing Authorization – (early) Spring 2007 or (late) Fall 2007
-Complete Permitting – June 2007
-
Construction – (early) July 2007 – July 2009 or (late) July 2008 – July 2010
The $8 million funding authorization completed in July provides funding for design and permitting costs which are a
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portion of the $72.3 amount.
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M E M O R A N D U M
EUGENE WATER & ELECTRIC BOARD
GENERAL MANAGER’S DIVISION
TO: Commissioners Bishop, Menegat, Lanning, Simpson, Farmer
FROM: Ken Beeson
DATE: November 2, 2006
Roosevelt Building Project – Construction Financing
SUBJECT:
_________________________________________________________________________________
Issue Statement.
This memo provides support material for Board discussion on November 7 of potential use of the
URBA process in mid-2007 to secure bond authorization for construction funding for the Roosevelt
Building Project.
Background.
In January 2006, staff prepared an initial work plan and schedule for completion of the Roosevelt
Building Project. This plan, based in part on the 2005 30% design work, assumed Board
authorization of bond funding for construction would be obtained in the fall of 2007 with
construction in the 2008-2010 time period. That same assumption was in place last spring when the
Board decided to relocate operations and engineering to Roosevelt and also approved using the
URBA process for bond funding of the Project design costs.
By July, as decisions were made to proceed with final design and also to employ a CM/GC for pre-
construction support, the possibility of beginning construction in the summer of 2007 began to
emerge and was referenced in some of the staff-Board discussions. This possibility included a staff
assumption that the URBA process would be considered by the Board to obtain bond authority for
construction financing. The Board has made no decision or commitment on this matter.
Given the above, it is now important, as staff proceeds with project development, that the Board
understand the scope and timing of the decisions required to ensure funding authority is in place to
allow for 2007 construction. Fundamental to this is a Board decision on whether they will support
use of URBA for bond funding or whether they want to refer the funding question to the ballot.
It is staff’s belief, based on current schedule assumptions on development of cost estimates that can
be relied on for determining construction funding requirements, it will be necessary to use the
URBA process in mid-2007 to secure funding authority to allow for a construction start in summer
2007. If the Board decides to refer this funding question to the ballot, staff believes that September
2007 would be the earliest election date we could obtain which, given wet weather constraints on the
initial construction, would push the construction start to mid-2008.
Given the above, staff would like to discuss with the Board use of URBA process and the related
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issues and decisions that will need to be addressed.
Discussion.
Attachment A presents a timeline list of the significant issues and decisions that need to be
addressed to allow commencement of construction on the Roosevelt Project in 2007. The notes
below provide brief explanation and context for the various items on the timeline.
1.Design. The current schedule assumes completion of all design work (Design Development
and Construction Documents) by February 2008. Design Development is expected to be
85% complete by February 2006 allowing for completion of “Design Development Estimate”
(item 3c).
2.Determine Final Electric and Water Rate Assumptions. These questions and decisions
should be addressed by the Board prior to approval of any final cost estimate (item 3e) or
approval of a bond funding resolution (item 5b).
a.Determine Water Utility Cost Share. Estimates of rate impacts related to the
Roosevelt Project previous shared with the Board have assumed the traditional 86%
electric and 14% water split. Staff will review the Roosevelt plan to determine if that
cost sharing assumption is accurate or if another assumption should be considered.
b.Water Utility: Lease or Own? The Finance Department will provide background for
Board review and consideration on this question.
c.Include Riverfront Property Sale Price Assumption? The most recent estimate of
long-term water and electric rate impacts associated with the Roosevelt Project were
provided to the Board in June and assumed that some portion of the EWEB riverfront
property would be sold post-2013 and the proceeds would be used to offset project
debt service. We will provide the Board, for review and perspective, estimates with
and without this assumption on sale price.
3. Complete Final Cost Estimate.
a.Project Budget Estimate. This amount is $72.3 million and was approved by the
Board in June 2006 and includes a 5% reduction from the November 2005 30%
design estimate.
b.CM/GC Estimate.Completion of this estimate is expected in November 2006; it will
be compared to the project budget estimate (item 3e) and used to specify, resolve and
eliminate differences. The CM/GC estimate will also be referenced and adjusted by
the design team as we proceed with design development work.
c.Design Development Estimates. These estimates will be completed separately by the
Architect and the CM/GC in early March 2007 and will be based on the Design
Development work completed to that point (estimated to be about 85%).
d.Reconcile / Justify Estimates. Differences in the Design Development estimates (item
3c), as well as differences with the Project Budget estimate (item 3a), will be
reviewed and resolved, with the goal of completing a single project cost estimate that
can be brought to the Board for review and consideration.
e.Approve Final Estimate. This estimate will need to be consistent with the Project
Budget Estimate (item 3a) and any variation justified for and approved by the Board.
This estimate will also need to include adequate contingencies and reserves to cover
any expected escalation of building construction costs in the 2008-09 period.
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4.Complete Permitting. We will need to secure, before any construction can begin in 2007, an
approved Fill and Removal Permit from the Corps of Engineers and the Oregon Department
of State lands, and permit approval from the City.
5. Financing Decisions
a.Authorize URBA Preparation. This is the “URBA or Ballot” question referenced
above.
b.Authorize URBA (EWEB Resolution). This is the formal decision to issue bonds for
construction funds using the URBA process. Board approval of a final cost estimate
(item 3e) would precede this authorization. This authorization would also refer this
question to the city council.
c.Authorize URBA (City Council Resolution). This is the council authorization
necessary to proceed with the URBA process (proceeded by item 5b).
d.URBA Remonstrance Period. This is the 60 day period during which 5% of the
registered voters in the City can petition to have the question referred to the ballot) or
refer the question to a ballot. This period can start immediately after council
authorization.
6. Construction Agreements
a.Consider “2 phase” GMP. Our current plan is to negotiate a Guaranteed Maximum
Price” (“GMP”) agreement with the CM/GC for construction of the project. As a
variation to using one GMP agreement for all construction, staff will want to review
with the Board the possibility of using two GMP agreements: (1) one agreement for
the initial earthwork portion (see item 7 below) of the project which would be
completed in late summer 2007; and (2) a second agreement for the building
construction which would start in early 2008.
b.Authorize Construction Agreement. This would be the Board authorization of the
necessary construction agreement with the CM/GC that will allow us to proceed.
7.Construction (earthwork). The initial construction necessary for the project includes
installation of the base roads and rock pads for the buildings, yard and parking areas. It also
includes installation of some underground substructure (conduit, pipes, vaults) necessary for
water, electric and on-site storm and sanitary sewer systems. Our current understanding is
this work would need to be competed by November 1 to comply with the Fill and Removal
permit requirements as well as adverse weather in the late fall. Completion of this work in
2007 would position us to start building construction by spring 2008 allowing for project
completion by mid-2009.
Recommendation / Requested Action.
There is no recommendation or requested action at this time. On November 7, I want to review this
material with the Board and discuss how best to work through them in the next few months.
Please call me with any questions or if you need additional information.
Attachment
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