HomeMy WebLinkAbout2.a. City Hall Remodel UpdateCITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR DISCUSSION
COMMITTEE OF THE WHOLE DATE: FEB. 14 2001
AGENDA ITEM: City Hall Re- Modeling
AGENDA SECTION:
Discussion .
PREPARED BY: Jim Parsons
AGENDA NO.
Community Development Director
2.A.
ATTACHMENTS: Floor Plans; Budget Work Sheet and
APPROVED BY:
Construction Cost Break -down;
Project Schedule
Background
Staff and consultants will present the current plan for the city hall remodeling project.
Todd Christoferson from Amcon is the construction manager for the project; Bob Vanney
from Vanney Associates is the architect. They and staff have explored the various
components of the project with vendors for such systems as heating, power, security, etc.
The estimated cost of the project is $3,128,079. The project would start May 15 and end
on Nov. 29 of this year. The benefits of the project include a new Council chamber
equipped for cable - casting; greater space for the Police Department on the lower level;
and additional office area for the Finance, Administration, Community Development and
Public Works Departments on the upper level.
Staff is seeking further Council direction on this proposed project.
RECD
None.
COMMITTEE ACTION:
MEMORANDUM
DATE: February 9, 2001
TO: Thomas D. Burt, City Administrator
FROM: Jeff May, Finance Director
SUBJECT: City Hall Remodeling/Expansion
In looking at the funding for the City Hall remodeling/expansion, there are a few factors that
should be considered before proceeding:
1) There are 2 years of debt currently left to pay on the original City Hall bonds
Year 2001 - $138,870 (2/1 P &I Payment & 8/1 Interest Payment)
Year 2002 - $138,038 (2/1 Final P &I Payment — Taxes Collected in 2001)
2) There is current and future funding built into the Building CIP Fund that could be used
for the remodeling:
Prior Years - $60,000 donated for cable setup in the Council Chambers
Year 2000 - $ 39 for City Hall Improvements unexpended in 2000
Year 2001 $160,000 for Lease - Purchase Payments on City Hall Improvements
Years 2002 & On - $180,000 for City Hall Lease - Purchase Payments
3) We are looking at issuing Lease Revenue (L/R) Bonds to fund the remodeling. As of
2/7/01, 15 -Year L/R Bonds were estimated to be issued at 4.95% and 20 -Year L/R Bonds
were estimated to be issued at 5.20 %.
4) The total cost of the remodeling /expansion is estimated at $3,000,000 (original estimate -
$2,000,000).
5) Annual payments on 15 -year financing would be approximately $320,000 per year and on
20 -year financing would be approximately $270,000 if the whole $3,000,000 was
financed. Those payments could be lowered if a portion of the total cost was bought
down. This has been discussed by using water, sewer and storm water utility funds to
contribute towards the cost of the remodeling. Another possibility would be to use
General Fund reserves to buy down the total. When this was discussed last year our
estimate was about $2,000,000 and we had talked about buying down $500,000 of the
total to finance a total of $1,500,000. This is where we came up with the $180,000 per
year that we budgeted in the Building CIP ($1,500,000 at 15- years). We have asked
Springsteds, our financial consultants, to run us some additional scenarios now looking at
buying down the $3,000,000 total and extending the term of the lease to 20 -years as well
as the 15- years.
City Hall Remodeling/Expansion - Page 2
At this point there are different financing options that are available in proceeding with this
project. In giving these options, I am making the assumption that we are going to do our best at
minimizing the impact on the taxpayers. In making these assumptions I am also going to assume
that the Water Utility Fund, Sewer Utility Fund and the Storm Water Utility Fund would all
contribute funds one time ($100,000 each in the $500,000 buydown and $200,000,200,000 and
100,000 in the $1,000,000 buydown) and the General Fund would contribute funds as well
($200,000 in the $500,000 buydown and $500,000 in the $1,000,000 buydown) to the cost of the
remodeling reducing the total financing needed.
1) The first option would be to issue the total $3,000,000 and have the levies be at $320,000
per year for 15 -years or $270,000 for 20 -years as discussed on the previous page. The
years 2002 and beyond payments would be made as part of the Building CIP Fund budget
and would increase the taxes for only the difference between the lease - purchase payments
and the $138,000 that we levied in 2000 for the final 2001 collection (2/1/2002 payment)
for the original City Hall bonds. This is because the original bond issue for the City Hall
would be paid off and replaced by the levy for the remodeling. This option would have
the greatest impact as far as taxes that I can see. Also, we could look at the Water Utility
Fund and Sewer Utility Fund each contributing a yearly amount if they do not contribute
a lump sump payment up front (much like the Public Works building expansion project).
2) The second option would be to buy down $500,000 of the total debt (breakdown
described above) issuing a total of $2,500,000. The levies for $2,500,000 would be at
approximately $270,000 per year for 15 -years or $225,000 per year for 20- years. Under
this option the Building CIP would make the total payments because of the upfront
contributions of the utility funds.
3) The third option would be to buy down $1,000,000 of the total debt (breakdown
described above) issuing a total of $2,000,000. The levies for $2,000,000 would be at
approximately $220,000 per year for 15 -years or $180,000 per year for 20- years. Under
this option the Building CIP would make the total payments because of the upfront
contributions of the utility funds.
At this point in time, it would appear to me that Option #3 above would be our best choice. We
would finance $2,000,000 to complete the work, issuing the debt mid -2001 with the first
payment coming in February, 2002 using funds levied in 2001 and collected in 2002. Years
2003 and beyond payments would be from Building CIP levies that will be made that replace the
original City Hall bond issue. We had originally planned/budgeted for $180,000 in annual levies
to do this project. With this buydown, even with the increased cost, we can still meet this goal
with the 20 -year financing. Using $200,000 to $500,000 of General Fund reserves will still
allow us to maintain a healthy fund balance. At this time we anticipate that after final year -end
adjustments that the General Fund balance will increase by $300,000 to $600,000. At the end of
1999 our fund balance was at approximately 58% of our next year's budget. So with the
buydown we should not decrease that number at all. Our goal has been to get back to at least
City Hall Remodeling/Expansion — Page 3
50 %, which we did last year. Even with this buydown we may want to look at using other funds
to pay the difference between the 15 -year and 20 -year financing to decrease the length of the
debt. One source that we could possibly use to accomplish this would be a portion of the SKB
user fees. Right now we earmark $50,000 per year of this money to the Street CIP for annual
street overlay projects. We have been collecting more than that each year and we could utilize
those additional funds to help make the payments on the building if the Council so chose. Either
way, the taxes should increase minimally for the citizens because of the remodeling/expansion
project.
Rosemount City Hall
Expansion Remodeling
Budget Work Sheet
Funding Source
City of Rosemount
Expenditures
Total
A/E Base Fee
Vanney Associates
A/E Reimbursables
Vanney Associates
AN consultant
Mark Moore
Land Costs
2,317,229
Legal Fees
$3,128,079
Financing Costs
0
City Road & Utility Fees
Public Utility charges
Geotechnical Services
Allied
Surveying
WSB
Bid Advertisement and Printing
Vanney Associates
Construction Testing
Sub - totals
Furniture Systems
Audio visual Systems
Security and Access Systems
Telephone System
Computer Network
Paula Graff
Mark Moore
Videotronix
Frontier
CIT
Sub - totals
Budget
3,128,079
3,128,0791
Budget
229,150
10,000
0
0
5,000
0
0
0
2,500
1,500
40,000
3,500
291,650
250,000
90,000
80,000
10,000
35,200
465,200
Temporary Move Expenses
Trailer Rental (including Furniture)
Temporary Utilities
Temporary Computer Network CIT
Temporary Telephone System Frontier
Moving Company
Sub- totals
Construction Cost
Construction Hard Costs
Construction Manager Fee
Contingency
Uncommited Funds
20,000
8,000
15,000
5,000
6,000
54,000
Contractors (to be bid)
1,997,229
Amcon CM
70,000
250,000
Sub - totals
2,317,229
Totals
$3,128,079
(Fund Shortage)
0
2/9/01
AMCON CM RM City Hall est email version.xis
Total Project Cost
£0'd - 1i101
Rosemount City Hall
Expansion Remodeling
Construction
COST ESTIMATE
21712001
AWIIICON CM
£0'd t7900 068 Z19
NWWOD tOIlOfIb1SN00 NO:)WU
RosWWA City Nan Est.
CoW Cost Est Swmary
SZ:80 t002- LO -83d
PROJECT DATA
Duration (Months)
6.00
Total Building Area
24,909
CONSTRUCTION COST BREAKDOWN
Item
Cost
Cost1SF
General Conditions
111,994
4.50
Demolftion
52,088
2.09
Concrete
117,166
4.71
Masonry
99,236
3.99
Metals
70,676
2.84
Carpentry, Rough & Finish
135,405
5.44
Roofing, Insulation, Caulking -
120,691
4.85
HM Doors, Frames, Hardware
33,151
1.33
Glass/Glazing, mirrors
24,705
0.99
Overhead, coiling doors
21,650
0.87
Metal StudstGyp/Plaster
72,014
2.89
Finishes
157,874
6.34
Visual Display Boards
1,000
0.04
Signs
1,500
0.06
Lockers
13,750
0.55
Specialties
11,750
0.47
Mechanical
502,700
20.19
Temp. Controls
36,355
1.46
Electrical
344,865
13.85
Miscellaneous
0
0.00
Sub - Total Cost Estimate
$1,928,580
77.45
Site Improvements
68,649
2.76
Total Cost Estimate
$1,997,229
$80.21
AWIIICON CM
£0'd t7900 068 Z19
NWWOD tOIlOfIb1SN00 NO:)WU
RosWWA City Nan Est.
CoW Cost Est Swmary
SZ:80 t002- LO -83d
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