7.3.
CC Regular Session
- Meeting Date:
- 01/27/2015
- Submitted For:
- Patrick Brama
- By:
- Patrick Brama, Administrative Services
Information
Title
Approve Final Plans & Design and Authorize Bid Letting for Fire Station #2 Project 14-30
Purpose/Background:
PURPOSE
The purpose of this case is to consider Approving Final Plans & Design and Authorizing Bid Letting for Fire Station #2, Project 14-30.
BACKGROUND (General):
The City of Ramsey's Fire Department currently operates Fire Station #2 from the City's "Old Municipal Center" site. The existing location of Fire Station #2 has been identified as a non-feasible/ineffective long term solution for Fire Station #2; and the City's overall fire protection/public safety needs. As a result, beginning in 2006, the City shifted attention to the property located at 5650 Alpine Drive to become the long-term home for Fire Station #2. Recently, the City completed final plans and design for a potential new Fire Station #2. Attached to this case is detailed background information on this project and process.
The purpose of this case is to consider Approving Final Plans & Design and Authorizing Bid Letting for Fire Station #2, Project 14-30.
BACKGROUND (General):
The City of Ramsey's Fire Department currently operates Fire Station #2 from the City's "Old Municipal Center" site. The existing location of Fire Station #2 has been identified as a non-feasible/ineffective long term solution for Fire Station #2; and the City's overall fire protection/public safety needs. As a result, beginning in 2006, the City shifted attention to the property located at 5650 Alpine Drive to become the long-term home for Fire Station #2. Recently, the City completed final plans and design for a potential new Fire Station #2. Attached to this case is detailed background information on this project and process.
UPDATE: a project update was provided to the City Council on January 13 in work session. Attached to this case are responses to a number of questions asked by Council members. Generally, no major objections to constructing a new Fire Station #2 were identified on January 13.
Notification:
NA
Observations/Alternatives:
ALTERNATIVES
Approve Final Design and Authorize Bids (staff recommendation)
(+) long term/permanent solution for Fire Station #2 would be put in motion for completion
(+) ensure a core City service will be provided efficiently and effectively now and into the future
(+) enhance police and ambulance services for greater Ramsey
(+) perpetuate the City's redevelopment efforts of the former municipal center site
(-) $3.97M bond, $293K annual bond payments (roughly)
Do NOT Approve Final Design and Authorize Bids
(-) long term/permanent solution for Fire Station #2 unsolved
(-) unable to enhance police and ambulance services for greater Ramsey
(-) unable to perpetuate the City's full redevelopment efforts of the former municipal center site
(+) save $3.97M bond, $293K annual bond payments (roughly)
(+) final design documents and specs are useful for up to five years
Approve Final Design and Authorize Bids (staff recommendation)
(+) long term/permanent solution for Fire Station #2 would be put in motion for completion
(+) ensure a core City service will be provided efficiently and effectively now and into the future
(+) enhance police and ambulance services for greater Ramsey
(+) perpetuate the City's redevelopment efforts of the former municipal center site
(-) $3.97M bond, $293K annual bond payments (roughly)
Do NOT Approve Final Design and Authorize Bids
(-) long term/permanent solution for Fire Station #2 unsolved
(-) unable to enhance police and ambulance services for greater Ramsey
(-) unable to perpetuate the City's full redevelopment efforts of the former municipal center site
(+) save $3.97M bond, $293K annual bond payments (roughly)
(+) final design documents and specs are useful for up to five years
Funding Source:
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.
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.
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
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Diana Lund | Diana Lund | 01/22/2015 10:58 AM |
| Brian Hagen | Tim Gladhill | 01/22/2015 11:46 AM |
| Bruce Westby | Bruce Westby | 01/22/2015 01:04 PM |
| Kurt Ulrich | Kathy Schmitz | 01/22/2015 02:51 PM |
- Form Started By:
- Patrick Brama
- Started On:
- 01/21/2015 10:35 AM
- Final Approval Date:
- 01/22/2015