Minutes - Council - 08/11/2014 - Laserfiche WebLink

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Improvement Project #14 -24, Center Street Improvements, as revised to include an option for a spring construction. Motion carried. Voting Yes: Mayor Strommen, Councilmembers Riley, Johns, Kuzma, LeTourneau, and Tossey. Voting No: None. Absent: Councilmember Backous. 7.02: Authorize Contract for Professional Architectural Services and Adopt Reimbursement Resolution #14 -08 -156 for Fire Station #2 Project #14 -30 Assistant to the City Administrator Brama reviewed the staff report and recommendation to authorize execution of a contract for professional architectural services with BKV Group for Fire Station 2, contingent upon review and amendments from the City Attorney; to authorize BKV Group to complete final design and bid documents; and adopt the draft resolution that will provide a mechanism to pay back the City's Facility Fund with future bonds. Fire Chief Kapler stated staff is operating under one assumption, that the Fire Department will continue to be a paid -on -call Fire Department for the foreseeable future, which is the most financially responsible model. The Fire Station is not being designed to host a full -time Fire Department. Bruce Schwartzman, BKV, stated if approved, their goal is to bid the project in January of 2015 with award in January/February. He stated the bids are typically good for 45 -60 days. With regard to the bid documents, they may be good for longer than five years as the only change needed would be if the Code changes. Councilmember Tossey agreed that a new Fire Station was needed; however, he was concerned with consideration of a $4 million bond and resulting debt service for Fire Station #2, the Municipal Center, and future road projects. Mr. Schwartzman explained how the $4 million estimate was derived based on the size of the Fire Station, current construction costs, and soft costs. He stated the estimate is in line for an 11,500 square foot Fire Station. City Administrator Ulrich stated staff used the $4 million estimate to show the budget impact. He noted the debt service for Fire Station #1 is coming off the end of 2016, which will be about half of this cost. Finance Director Lund stated the municipal center debt of just over $1 million goes through 2031 and Capital Equipment Certificates of $160,000 per year go through 2023. The proposed 2015 budget includes additional Capital Equipment Certificates and the Road Reconstruction Bond. She explained that with Fire Station #2, the interest would be capitalized in 2016 and the payment would be pushed to 2017. She noted that all of this information was included in the 2015 budget handout discussed at the tonight's Work Session. City Administrator Ulrich stated the land proceeds for the Fire Station site was not included. City Council / August 11, 2014 Page 7 of 13