Agenda - Council - 04/14/2015 - Laserfiche WebLink

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amount of $293,000 annually for 20 years (roughly). #2 - Re -bid project. (+) minor chance bids would come back significantly lower. (-) more than likely, bids would not come back significantly lower. (-) additional professional service dollars incurred for a third bidding process (about $4,000-$8,000 depending on variables). (-) project completion would be pushed back resulting in negative operation effects to the Fire Department (temporally) and potentially result in termination of an existing purchase agreement for the former municipal center site. If the current PA was terminated, staff would re -list. #3 - Cancel/ table project (+) City would save dollars on remaining costs associated with completing this project. (-) Not capitalizing on previous work completed for this project --now sunk costs (BKV Group professional services and staff time). NOTE: generally, plans are good for five years. (-) Not solving the long-term needs of the City's Fire Department; and, police and ambulance coverage not enhanced. Funding Source: Funding Source: Capital Improvement Plan (CIP) Bond. Attached to this case is a detailed 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 interim bond payments. Permanent project financing will come from a $3.97M CIP bond (estimated). Annual payments for this bond are roughly $293K. The City will utilize the general levy to pay for bond payments, beginning in 2016. NOTE 1: 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. NOTE 2: The current CIP bond as noted, is $3.97M. This amount may be reduced prior to the bond sale adoption on May 26, 2015 due to the lower than estimated bid. NOTE 3: CIP bonding is regulated by the State ofMinnesota. Per Statute, a public hearing process is required to allow the public an opportunity to counter petition the proposed bonding/project. The public hearing was held on March 10, 2015 with any counter petition to the project needing to be filed by April 9, 2015. No counter petition or comments were received. Recommendation: See alternatives. Action: Motion to: Adoption Resolution #15-04-079 Accepting Bids and a Awarding Contract for Improvement Project #14-30; Fire Station #2. -and- Approve the attached AIA A101 Standard Form of Agreement Between Owner and Contractor; subject to amendments by the City Attorney