Agenda - Council - 01/27/2015 - Laserfiche WebLink

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Funding Source: Capital Improvement Plan (CIP) Bond. Attached to this case is a project budget and a bond run provided by Ehlers, the City's financial consultant. In the short term, the City will utilize our Facilities Fund (about $300K balance) for interim payments to the architect and the first bond payment in 2015 (interest only). Permanent project financing will come from a $3.97M CIP bond. Annual payments for this bond are roughly $293K. The City will ultimately utilize the general levy to pay for bond payments, beginning in 2016. It should be noted, bond payments for City's existing Fire Station #1 will be completed at the end of 2016 (about $147,400 annual payment). As a result, staff is recommending interest only payments for Fire Station #2 in 2015 and 2016. The net result will be an approximate 2016 tax levy of $260,200 which would consist of the final debt payment on Fire Station #1 in the amount of $147,400 and $112,800 for interest debt on Fire Station #2. UPDATE: At the January 13 City Council meeting, staff was asked to update the City's proposed bond solution. Specifically, staff was asked to remove capitalized interest from the proposed bond package. This request was implemented by staff The attached project bond run, project budget, and content in this case have all been updated. This item is addressed in the "Council Questions" document attached to this case as well. STAFF NOTE: Use of CIP Bonding requires implementation of a specific public process; which is regulated by State Statute (about 60-90 day process). In order to meet the assumed project timeline (potentially awarding a project on March 24) staff will need to begin said process soon. The Council should expect subsequent cases related to bonding for this project. By starting this process now (before awarding a contract) the Council will NOT be obligated to award a contract on March 24. However, starting this process now, will ALLOW the Council to award a contract on March 24, and avoid delays to this project. Recommendation: Please see alternatives section. Action: Motion to: Approve Final Plans & Design --and-- Authorize Bid Letting for Fire Station #2 Project 14-30 Attachments Visual Project Timeline Project and Process Background Project Budget Bond Run 01202015 Council Questions Comparison Overview Final Design 01222015 Space Needs Analysis Ref Map 5650 Alpine