2.4.
CC Work Session
- Meeting Date:
- 07/22/2014
Information
Title:
Purpose/Background:
PURPOSE:
The purpose of this case is to consider moving forward with the next step in the process to construct a new Fire Station #2 -- Final Plans and Specifications (Design Development Stage). Below is a process outline and a staff recommendation.
PROCESS (Background):
STAFF RECOMMENDATION:
Currently, the City has completed the first three steps of the process identified above. The purpose of this case is to consider step 4--authorize Final Design & Specifications. Staff's recommendation is to authorize BKV Group to complete said work. This step will provide the following benefits:
The purpose of this case is to consider moving forward with the next step in the process to construct a new Fire Station #2 -- Final Plans and Specifications (Design Development Stage). Below is a process outline and a staff recommendation.
PROCESS (Background):
1. Space Needs Analysis - August 2006
The purpose of this step is to answer a number of questions regarding the existing Fire Station #2 site; and to identify Fire Department space needs. For example, does the existing site work for Fire Station #2? Can we renovate the old municipal center building? Should we demolish and rebuild a new fire station? Attached is a Fire Station #2 Feasibility Report and Space Needs Analysis for the old municipal center site (existing location of Fire Station #2). This work was completed by BKV Group. In 2006, it was determined, utilizing the existing municipal center site was not a feasible or practical long term solution. At that time, a new Fire Station #2 site was identified and proposed--5650 Alpine Drive NW (just northeast of the old municipal center site).
2.Surplus City Owned Property--Summer 2012
In 2012, the City Council identified the old municipal center site surplus City owned property; and provided Staff with direction to identify opportunities to return this property back to the private sector. As part of that discussion, the current location of Fire Station #2 was identified as a factor in the future development of the old municipal center site. In order to allow for future development of the old municipal center site, a new location for Fire Station #2 would need to be planned and prepared for in order to effectively react to future development. NOTE: the process to develop site plans, architectural plans, bid documents, award a bid, and attain government approvals can span several months to a year.
3.Preliminary Design Stage--November 2013 ($19,000)
The purpose of this stage is to develop schematic designs of what Fire Station #2 could look like (often referred to as concept design). The outcome of this stage is preliminary architectural designs and preliminary site plan documents. Additionally, a preliminary project budget is developed. This work was authorized by the Council in November 2013. Attached are results developed by BKV Group. Construction costs were estimated at $3,165,000 and soft costs are estimated at $604,500 ($3,769,500 sub total). If the City bonded for this project, the total bond issue would be estimated just above $4M (total estimated project costs). The outcome of this process is a design the will adequately accommodate long term Fire Department needs; and provide one garage stall for an Allina Health Care ambulance; and provide a satellite office and garage stall for the Police Department.
4. Final Design & Specifications--July 2014 ($128,000)
The purpose of this stage is to develop final site plans, architectural plans, civil plans, landscaping plans, electric/mechanical plans, construction specifications and bid documents. By completing this step, the City would be in position to move forward with constructing Fire Station #2 in an a quick and effective manner. Value exists in completing this step now, rather waiting for a development proposal/purchase agreement to be presented to the City Council (for timing purposes). This work does have a shelf life of five years. This is work will need to be completed in order to construct a new Fire Station #2. Unless the Council was not interested in pursing a new Fire Station #2 in the next 1-5 years altogether, Staff would recommend this step be completed. The purpose of this case is to authorize this step to be completed by BKV Group. Please see staff recommendation for details.
5. Bidding & Bid Award ($9,000)
The purpose of this stage is to bid and potentially award the proposed construction project to a general contractor. Staff would recommend the City Council have a detailed/formal policy discussion regarding this project before this step is completed. This would entail a detailed review of the project budget and the proposed funding source (bonding). The outcome of said discussion would be consensus support for construction of a new Fire Station #2, or not. Bidding and bid award could be completed ASAP (which would allow occupancy in the fall of 2015) or it could be done at a later date (for example, when a purchase agreement is signed for the old municipal center site).
6. Administration & Construction (about $4M total project cost, less costs above)
The purpose of this stage is to physically construct a new Fire Station #2 and provide construction administration services. This step would be authorized when a bid is awarded.
The purpose of this step is to answer a number of questions regarding the existing Fire Station #2 site; and to identify Fire Department space needs. For example, does the existing site work for Fire Station #2? Can we renovate the old municipal center building? Should we demolish and rebuild a new fire station? Attached is a Fire Station #2 Feasibility Report and Space Needs Analysis for the old municipal center site (existing location of Fire Station #2). This work was completed by BKV Group. In 2006, it was determined, utilizing the existing municipal center site was not a feasible or practical long term solution. At that time, a new Fire Station #2 site was identified and proposed--5650 Alpine Drive NW (just northeast of the old municipal center site).
2.Surplus City Owned Property--Summer 2012
In 2012, the City Council identified the old municipal center site surplus City owned property; and provided Staff with direction to identify opportunities to return this property back to the private sector. As part of that discussion, the current location of Fire Station #2 was identified as a factor in the future development of the old municipal center site. In order to allow for future development of the old municipal center site, a new location for Fire Station #2 would need to be planned and prepared for in order to effectively react to future development. NOTE: the process to develop site plans, architectural plans, bid documents, award a bid, and attain government approvals can span several months to a year.
3.Preliminary Design Stage--November 2013 ($19,000)
The purpose of this stage is to develop schematic designs of what Fire Station #2 could look like (often referred to as concept design). The outcome of this stage is preliminary architectural designs and preliminary site plan documents. Additionally, a preliminary project budget is developed. This work was authorized by the Council in November 2013. Attached are results developed by BKV Group. Construction costs were estimated at $3,165,000 and soft costs are estimated at $604,500 ($3,769,500 sub total). If the City bonded for this project, the total bond issue would be estimated just above $4M (total estimated project costs). The outcome of this process is a design the will adequately accommodate long term Fire Department needs; and provide one garage stall for an Allina Health Care ambulance; and provide a satellite office and garage stall for the Police Department.
4. Final Design & Specifications--July 2014 ($128,000)
The purpose of this stage is to develop final site plans, architectural plans, civil plans, landscaping plans, electric/mechanical plans, construction specifications and bid documents. By completing this step, the City would be in position to move forward with constructing Fire Station #2 in an a quick and effective manner. Value exists in completing this step now, rather waiting for a development proposal/purchase agreement to be presented to the City Council (for timing purposes). This work does have a shelf life of five years. This is work will need to be completed in order to construct a new Fire Station #2. Unless the Council was not interested in pursing a new Fire Station #2 in the next 1-5 years altogether, Staff would recommend this step be completed. The purpose of this case is to authorize this step to be completed by BKV Group. Please see staff recommendation for details.
5. Bidding & Bid Award ($9,000)
The purpose of this stage is to bid and potentially award the proposed construction project to a general contractor. Staff would recommend the City Council have a detailed/formal policy discussion regarding this project before this step is completed. This would entail a detailed review of the project budget and the proposed funding source (bonding). The outcome of said discussion would be consensus support for construction of a new Fire Station #2, or not. Bidding and bid award could be completed ASAP (which would allow occupancy in the fall of 2015) or it could be done at a later date (for example, when a purchase agreement is signed for the old municipal center site).
6. Administration & Construction (about $4M total project cost, less costs above)
The purpose of this stage is to physically construct a new Fire Station #2 and provide construction administration services. This step would be authorized when a bid is awarded.
STAFF RECOMMENDATION:
Currently, the City has completed the first three steps of the process identified above. The purpose of this case is to consider step 4--authorize Final Design & Specifications. Staff's recommendation is to authorize BKV Group to complete said work. This step will provide the following benefits:
- Provide final site plan and architectural documents.
- Provide construction documents and bid documents.
- Provide a finalized project budget for policy discussions.
- Put the City in position to 'pull-the-trigger' on a new Fire Station #2 if/when desired.
- All plans and specs will be available for use for the next five years.
- Price: $171,000 total cost. Step 4 $128,000 (this step), Step 5 $9,000, Step 6 $34,000.
- BKV did discount their original proposal by $19,000 to compensate for work previously completed.
- Additionally, due to BKV Groups' familiarity with this project, they reduced the proposal price to just below 6% of construction costs (which is a competitive rate by industry standards).
- BKV Group has effectively provided professional services for steps 1 and 3 of this process.
- BKV Group is very familiar with this project.
- BKV Group discounted their price to compensate for previous work; and has dropped their total asking price due to their familiarity with the project (below 6%). NOTE: staff will have informal proposals from other companies available at the Council meeting.
- A formal RFP process is not required in this situation (by Statute). A formal RFP process is a lengthy and staff intensive process.
Timeframe:
15-30 minutes.
Funding Source:
Tonight Council is considering authorization of Final Design & Specifications ($51,000) along with Construction Documents ($77,000) for a total cost of $128,000.
Funding Source:
Short Term: Facilities Fund ($182,993 projected balance at year end).
Long Term: This work will be refunded via a reimbursement resolution and wrapped up within bonding for the entire project.
Short Term: Facilities Fund ($182,993 projected balance at year end).
Long Term: This work will be refunded via a reimbursement resolution and wrapped up within bonding for the entire project.
What about the big picture?
Considering the bigger picture, the proposed project will have a TOTAL price tag of about $4M (including all soft costs). Staff estimates the annual debt service to be about $300,000 for a 20 years. As previously discussed with the Council, debt service for Fire Station #1 will be retired after 2016. The City pays about $140,000 annually for debt service on Fire Station #1. Therefore, if Fire Station #2 was constructed, and Fire Station #1 was paid off, the NET increased annual cost to the City would be about $160,000. Below are two other factors to consider:
Considering the bigger picture, the proposed project will have a TOTAL price tag of about $4M (including all soft costs). Staff estimates the annual debt service to be about $300,000 for a 20 years. As previously discussed with the Council, debt service for Fire Station #1 will be retired after 2016. The City pays about $140,000 annually for debt service on Fire Station #1. Therefore, if Fire Station #2 was constructed, and Fire Station #1 was paid off, the NET increased annual cost to the City would be about $160,000. Below are two other factors to consider:
- If Fire Station #2 is constructed in 2015, debt service would begin in 2016 (which would overlap with the last year of debt service payments for Fire Station #1). As a result, if this scenario played out, Staff would recommend capitalizing interest in 2016, and beginning bond payments in 2016 for Fire Station #2. Attached is an example $3.5M bond run with capitalized interest in year one.
- One major unknown in this scenario is the sale and development of the old municipal center site. Previously, staff has received direction from the Council to pledge proceeds from the sale of the old municipal center site to Fire Station #2. Staff would estimate the 'Asking Price' for the old municipal center site to be near $820,000.
Responsible Party(ies):
Administration Department, Patrick Brama
Fire Department, Dean Kapler
Fire Department, Dean Kapler
Outcome:
Included in the section above, is a Staff recommendation.
This case is also located on the City Council regular session consent agenda tonight. If the Council decides to move forward with the proposed work, staff would suggest approving the proposed consent agenda case as presented. If a consensus to move forward with the proposed work does not exist, Staff would suggest discussing or tabling the regular session consent agenda item.
NOTE: the formal contract being considered tonight with BKV Group is called a AIA Standard Form of Agreement Between Owner and Architect. Staff will seek Council approval of said contract contingent upon review and changes from the City Attorney.
This case is also located on the City Council regular session consent agenda tonight. If the Council decides to move forward with the proposed work, staff would suggest approving the proposed consent agenda case as presented. If a consensus to move forward with the proposed work does not exist, Staff would suggest discussing or tabling the regular session consent agenda item.
NOTE: the formal contract being considered tonight with BKV Group is called a AIA Standard Form of Agreement Between Owner and Architect. Staff will seek Council approval of said contract contingent upon review and changes from the City Attorney.
Attachments
- BKV Group Proposal
- Preliminary Project Budget (less bond issuance and cap interest)
- Ref Map
- Preliminary Site Plan (Step Three)
- Feasibility and Space Needs 2006 (Step One)
- Debt Scenarios
- Professional Services Agreement (AIA Standard Form)
- Example Bond Run
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Diana Lund | Kathy Schmitz | 07/17/2014 08:13 AM |
| Bruce Westby | Bruce Westby | 07/17/2014 12:04 PM |
| Kurt Ulrich | Kathy Schmitz | 07/17/2014 02:32 PM |
| Kurt Ulrich | Kurt Ulrich | 07/17/2014 03:07 PM |
- Form Started By:
- Patrick Brama
- Started On:
- 07/15/2014 02:44 PM
- Final Approval Date:
- 07/17/2014