Agenda - Council Work Session - 07/22/2014

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Funding Source: Tonight Council is considering authorization of Final Design & Specifications ($51,000) along with Construction Documents ($77,000) for a total cost of $128,000. Funding Source: Short Term: Facilities Fund ($182,993 projected balance at year end). Long Term: This work will be refunded via a reimbursement resolution and wrapped up within bonding for the entire project. What about the big picture? Considering the bigger picture, the proposed project will have a TOTAL price tag of about $4M (including all soft costs). Staff estimates the annual debt service to be about $300,000 for a 20 years. As previously discussed with the Council, debt service for Fire Station #1 will be retired after 2016. The City pays about $140,000 annually for debt service on Fire Station #1. Therefore, if Fire Station #2 was constructed, and Fire Station #1 was paid off, the NET increased annual cost to the City would be about $160,000. Below are two other factors to consider: • If Fire Station #2 is constructed in 2015, debt service would begin in 2016 (which would overlap with the last year of debt service payments for Fire Station #1). As a result, if this scenario played out, Staff would recommend capitalizing interest in 2016, and beginning bond payments in 2016 for Fire Station #2. Attached is an example $3.5M bond run with capitalized interest in year one. • One major unknown in this scenario is the sale and development of the old municipal center site. Previously, staff has received direction from the Council to pledge proceeds from the sale of the old municipal center site to Fire Station #2. Staff would estimate the 'Asking Price' for the old municipal center site to be near $820,000. Responsible Party(ies): Administration Department, Patrick Brama Fire Department, Dean Kapler Outcome: Included in the section above, is a Staff recommendation. This case is also located on the City Council regular session consent agenda tonight. If the Council decides to move forward with the proposed work, staff would suggest approving the proposed consent agenda case as presented. If a consensus to move forward with the proposed work does not exist, Staff would suggest discussing or tabling the regular session consent agenda item. NOTE: the formal contract being considered tonight with BKV Group is called a AIA Standard Form of Agreement Between Owner and Architect. Staff will seek Council approval of said contract contingent upon review and changes from the City Attorney. Attachments BKV Group Proposal Preliminary Project Budget (less bond issuance and cap interest) Ref Map Preliminary Site Plan (Step Three) Feasibility and Space Needs 2006 (Step One) Debt Scenarios Professional Services Agreement (AIA Standard Form) Example Bond Run Form Review