20210902PAC to PIIC Attach 30 APR 24015328 - LCT Open Office Plan.pdf

Appropriation Request Summary Report
APR: 24015328
Title: LCT Open Office Plan
Estimate Type: 100% DSGN
Requesting Cost Center: 11679 - SS_Facilities LCT Bl
Investment Reason: RQ
Priority:
Implementation Start: 03/18/2019
In-Service Date: 12/31/2022
Approver: Nikki Kobliha Approved On: 05/14/2019
Asset Location: 000090
WBS : DPOR/2019/C/002/B
Func Group: MSC CGEN
State: OR
Plant 5005
Status: Approved
Responsible Manager: SUSAN SOSNIKA
Spent To Date: 4,208,786
Cal.
Year
Labor Material Purchase
Services
Other Removal
Costs
Salvage SurCharge &
AFUDC
Total Gross
Capital
CIAC O&M
Expense
Total
APR
Network
Upgrade
Betterment
2019 150,000 0 5,676,257 0 700,000 0 978,939 7,505,196 0
200,000
7,705,196 0 0
2020 150,000 0 8,413,143 0 700,000 0 1,389,471 10,652,614 0
200,000
10,852,614 0 0
2021 150,000 0 5,346,600 0 700,000 0 929,490 7,126,090 0
200,000
7,326,090 0 0
2022 50,000 0 3,143,000 0 250,000 0 516,450 3,959,450 0
200,000
4,159,450 0 0
Totals 500,000 0 22,579,000 0
2,350,000
0 3,814,350 29,243,350 0
800,000
30,043,350 0 0
* Description of Assets and Work or Proposed Change:
Assets will include architectural services, construction of conference
rooms and enclaves at the Lloyd Center Tower. Provide and install
power/data/phone wiring, flooring, furniture, appliances, and finishes
on the floors. Construct and furnish two common breakrooms: one
breakroom on floor 6 and another on floor 18.
* Purpose and Necessity or Reason for Change:
The furnishings and finishes on these floors are worn and dated as they
were installed in 1998 without any major changes. Hiring and retaining
employees is necessary in the competitive work environment, and this
remodeled space will offer an environment that will increase
Printed 10/30/2019 Page 1
Appropriation Request Summary Report
collaboration as well contribute to retaining employees.
Height-adjustable furniture will be provided to all staff offering
ergonomic benefits. The new work space will offer an environment that
will encourage collaboration among employees and teams; ultimately
benefitting customers.
* Projected Conditions/Benefits of Change:
* Risk Assessment and Alternatives Evaluated:
Risk Assessment:
1. Furnishings and finishes will continue to deteriorate and will
require replacement. Failure to proceed with the remodel will leave the
space in poor condition which will impact employee effectiveness and the
ability of the company to hire and retain employees.
Alternatives Evaluated:
1. Perform a remodel where only carpet and paint are changed. This
alternative would not meet the objective of providing space that will
enhance the hiring process as well as retaining employees. The
alternative would also not meet the objective of providing space that
will improve collaboration and teamwork; nor would it provide ergonomic
workstations for all employees.
2. Relocate to an existing facility. This alternative was eliminated
due to lack of available space that can accommodate the corporate
offices. The company looked for an existing building that could provide
the necessary office space as well as a variety of transit options for
employees. There were no available properties that could meet these
requirements.
3. Relocate to a new facility including construction of a new building.
This option was rejected based on the financial analysis which showed
this alternative would be more expensive to customers. In addition to
the financial analysis, this alternative presented two significant risk
elements: the relocation of the data center and the selling of the Lloyd
Center Tower condominium unit once the relocation was complete.
Both of these risk elements could significantly impact the costs of the
project (these potential costs are not reflected in the financial
analysis, since it is difficult to affix a dollar value to them).
Printed 10/30/2019 Page 2
Appropriation Request Summary Report
Customer Benefit:
It is recommended that the company spend approximately $30 million
remodeling the Lloyd Center Tower (LCT) to a concept that allows for
greater employee engagement. The project will also generate
approximately $200k per year in expense after completion of the project.
The remodel is expected to create a sustainable competitive advantage
ultimately benefitting customers through higher employee retention and
recruitment, enhanced productivity, and greater operational performance.
PAC also evaluated the alternative of constructing an equivalent sized
building with the same collaborative design concept. The LCT Open Office
Plan is recommended because it would result in a $1.6 million present
value revenue requirement benefit to customers over relocating.
Please see the attached financial review of the LCT Open Office Plan to
remodel all ten company-owned floors. The requested funds are to
remodel the first three floors.
Facility Address: LLOYD CENTER TOWER, 825 NE MULTNOMAH, PORTLAND OR 97232
Printed 10/30/2019 Page 3