Status update on New Public Works Building Design and Cost Estimates

Purpose:
The purpose of this case is to bring the council up to date on where staff and consultants are in the design of the new PW building.  Representatives from both RJM Construction, the city's construction management firm on the project, and Oertel Architects, the city's design firm, will be on hand to explain where we are in the process, how we arrived there, and to answer any questions the council may have.

N/A

The City of Ramsey has long planned for a new public works facility and added it to our Capital Improvement Plan (CIP) in 2006. The land was secured in 2008 by the purchase of the former Bury-Carlson site.  That purchase was finalized in 2013 and the  BKV Group was hired in 2015 to perform a space needs study. In September of 2019, council authorized the hiring of RJM Construction to over see the construction of the new PW facility, followed by the hiring of Oertel Architects in February of 2020 to provide architectural/engineering services.  Attached to this case are draft site plans, building layout, and conceptual design drawings from Oertel Architects. Also attached are the preliminary budget numbers for the project provided by RJM construction

Staff prepared a summary showing the recommended applicable percentage of staff and capital costs related to Enterprise funded activities (Water, Sewer, Storm Water utility) in relation to total costs of capital/personnel costs attributed to the public works division.  Based on this calculation, approximately 34% of  costs is attributed to the city's utility funds.  

Using the 34% enterprise rate, the Public Works funding scenario would be as follows:
 
  Enterprise funds would make up $6,222,000 of the total (i.e., $18.3M estimated)

•     Water:    $2,736,000
•     Sewer    $2,736,000
•      St Lt:     $250,000
•      Storm:  $500,000

Total Enterprise    $6,222,000
 
Other Funds:
                   Landfill Trust Fund:     $2.2M (brings fund to $0)
                   Facility Fund:              $1.0M
Total Other                                     $3.2 M
 
Net Bonding:              $8,878,000

In regard to bonding, revised debt schedules are currently being prepared and will be provided as soon as available.
 

Informational only

 Staff is seeking council consensus with the following direction:

 Option #1 -  Move the project forward based on current $18.3M cost estimate, while continuing to seek ways to lower overall cost.
 Option # 2 - Reduce project scope to reduce size and cost of facility.
 Option #3 -  Expand the project to include the future expansion of the vehicle storage area at this time and bid as an alternate to the existing plan. The expansion would increase the size of the vehicle storage area to  by 12,000 sq ft at an estimated cost of $2,000,000.00.  This addition would be considered the eventual size needed for future growth of the city and the PW department.