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Home My WebLink About08-05-19 • RESOLUTION 08 -05 -19 A RESOLUTION AUTHORIZING THE CONSTRUCTION OF A NEW CITY HALL FACILITY Whereas, the City of Oak Park Heights currently conducts the majority of its municipal operations from the City Hall Facility (hereafter referred to as the "Facility ") located at 14168 Oak Park Blvd and which houses general administrative operations, finance, public meeting space, all law enforcement operations and significant public works activities, and; Whereas, part of the current Facility was initially constructed in 1968 with additions in 1980, and 1989, bringing the current Facility to 15,000 + /- square feet, and; Whereas, considering the age and configuration of the Facility, the City will be required invest significant funds to maintain the current Facility for continued use, including replacement of HVAC systems, roof replacements, ADA compliance initiatives and other code compliance improvements, and; Whereas, the City Council has invested considerable time and resources in the discussion and investigation of numerous options for possible replacement and/or renovation of the Facility, including the formation of a Citizen's Advisory Committee to study the options in more detail; and, • Whereas the City of has received the Final Report from the Citizen's Advi ry Committee that recommended the construction of a new facility as opposed to a major renovation or a facility expansion as the investment of significant dollars to expand the current Facility and to ensure significant code compliance, future spacing needs and efficient operability is not an economical long -term investment as compared to construction of a new building, and; Whereas, market conditions are opportune for the advancement of a new facility, with historic lows for bond interest rates, the City maintaining no current debt service and that the current commercial - residential make -up of the City's tax base would fairly balance debt service revenues sources, and; Whereas, if the City proceeded with a $6.3 million project, it is estimated that single - family residential property valued at $200,000 would incur a tax impact of approximately $77.86 per year based on a twenty -year bond repayment schedule as attached and incorporated into this Resolution. NOW, THEREFORE, BE IT RESOLVED that the City Council for the City of Oak Park Heights does hereby deem that it is necessary and vital for the future operations and services to the City's residents that it construct a new City Hall Facility estimated at $6.3 million dollars and that this option will provide the most • • cost - effective investment for the City for both useable square footage and long -term durability. BE IT FURTHER RESOLVED that the City Council does direct the preparation and immediate issuance of up to $6.3 million in General Obligation Capital Improvement Bonds necessary to fully fund a new City Hall Facility and in such increments that best preserve financial flexibility for the City, and BE IT FURTHER RESOLVED that the City Council does hereby direct that The City shall enter into a contract as prepared by the City Attorney's office with Buetow and Associates to prepare schematic designs and provide design development services for a new City Hall Facility at a price not exceed $160,000.00. BE IT FURTHER RESOLVED that the City shall enter into a contract as prepared by the City Attorney's office with Buetow and Associates to oversee and manage all aspects of the project including but not limited to, providing final design, providing construction specifications and documents, prepare final bid forms, analyze and direct contract award, providing subsequent construction oversight to include at a minimum, weekly site visits and progress reports and satisfactory close -out of the project, all at a price not to exceed 9 % of the final awarded base bid and all approved alternates. The amounts due under this percentage shall be reduced for amounts already paid for schematic designs and design development services. . Passed by the City Council of the City of Oak Park Heights this 13'' day of May, 2008. a David Beaudet, Mayor T T E 'c Johnson it Administrator • • FILE: OPH CITY HALL (CIP) D 20YR I CITY OF OAK PARK HEIGHTS, MINNESOTA DATE OF ANALYSIS: APRIL 28 2008 GENERAL OBLIGATION CAPITAL IMPROVEMENT BONDS OF 2008 CITY HALL PROJECT DATED DATE OF ISSUE: JUNE 15, 2008 PAR AMOUNT: $6,270,000 (J) ( ANNUAL ) TAX I (M MARKET VALUE HOMESTEAD (P) (0 (RI ICOMN E:RCIAL ; EST, TOTAL ANNUAL TAX CAPACITY CAPICITY $100,000 $150,000 � $200;000 $250,000 $350,000 $500,000 $500,000 CAPITALIZED TAX SURPLUS CUMULATIVE VALUE a RATE TAX CAPACITY VALUE (12_1) INTEREST DEBT STATUTORY YEAR PRINCIPAL RATES IN'T'EREST SERVICE 0.00% INTEREST LEVY /DEFICIT BALANCEI 2.50 %I INCREASE) $1,000 $1,500 ',.:$2 w $2,500 $3,500 $5,000 1 $9,250 2008 121,423.75 121,423.75 121,423.75 $242,847.50 121,423.75 121,423.75 9,274,811 92.04 128.86 184.08 340.55 -' -' 2009 $125,000.00 2.60% 242,847.50 367,847.50 367,847.50 350,000.00 (17,847.50) 103,576.25 9,506,681 3.6816% 36.82 55.22 `73 -.63' 2010 140,000.00 2.80% 239,597.50 379,597.50 379,597.50 380,000.00 402.50 103,978.75 9,744,348 3.8997% 39.00 58.50 . -_ 77.99' 97.49 136.49 194.98 360.72 2011 155,000.00 2.95% 235,677.50 390,677.50 390,677.50 390,000.00 (677.50) 103,301.25 9,987,957 3.9047% 39.05 58.57 - 7$.09 97.62 136.66 195.24 361.18 - 2012 170,000.00 3.10% 231,105.00 401,105.00 401,105.00 400,000.00 (1,105.00) 102,196.25 10,237,656 3.9071% 3907 58.61 78.14 97.68 136.75 195.36 361.41 2013 185,000.00 3.20% 225,835.00 410,835.00 410,835.00 410,000.00 (835.00) 101,361.25 10,493,597 3.9071% 39.07 58.61 78,.14' 97.68 136.75 195.36 361.41 2014 200,000.00 3.35% 219,915.00 419,915.00 419,915.00 420,000.00 85.00 101,446.25 10,755,937 3.9048% 39.05 58.57 - 78.1 97.62 136.67 195.24 361.20 5 215,000.00 3.50% 213,215.00 428,215.00 428,215.00 430,000.00 1,785.00 103,231.25 11,024,836 3.9003% 39.00 58.50 ' -78.01 97.51 136.51 195.01 360.78 2015 230,000.00 3.60% 205,690.00 435,690.00 435,690.00 440,000.00 4,310.00 107,541.25 11,300,457 3.8936% 38.94 58.40 77.87 97.34 136.28 194.68 360.16 2017 250,000.00 3.70% 197,410.00 447,410.00 447,410.00 450,000.00 2,590.00 110,131.25 11,582,968 3.8850% 38.85 58.28 -77.70 97.13 135.98 194.25 359.36 460,000.00 1,840.00 111,971.25 11,872,542 3.8745% 38.74 58.12 77:49 96.86 135.61 193.72 358.39 2018 270,000.00 3.80% 188,160.00 458,160.00 458,160.00 2019 290,000.00 3.85% 177,900.00 467,900.00 467,900.00 470,000.00 2,100.00 114,071.25 12,169,356 3.8622% 38.62 57.93 77.24 96.55 135.18 193.11 357.25 480,000.00 (1,735.00) 112,336.25 12,473,590 3.8481% 38.48 57.72 - 76.96 96.20 134.68 192.41 355.95 2020 315,00000 3.90% 166,735.00 481,735.00 481,735.00 2021 340,000.00 3.95% 154,450.00 494,450.00 494,450.00 495,000.00 550.00 112,886.25 12,785,429 3.8716% 3872 58.07 - 77.43 96.79 135.51 19358 35812 2022 370,000.00 4.00% 141,020.00 511,020.00 511,020.00 510,000.00 (1,020.00) 111,866.25 13,105,065 3.8916% 38.92 58.37 77.83 97.29 136.21 194.58 359.98 2023 405,000.00 4.05% 126,220.00 531,220.00 531,220.00 525,000.00 (6,220.00) 105,646.25 13,432,692 3.9084% 3908 58.63 78.17 97.71 136.79 195A2 361.52 540,000.00 (9,817.50) 95,828.75 13,768,509 3.9220% 39.22 58.83 78.44 98.05 137.27 196.10 362.78 2024 440,000.00 4.10% 109,817.50 549,817.50 549,817.50 5 485,000.00 4.15% 91,777.50 576,777.50 576,777.50 555,000.00 (21,777.50) 74,051.25 14,112,722 3.9326% 39.33 58.99 78.65 98.32 137.64 196.63 36377 202 202 525,000.00 4.20% 71,650.00 596,650.00 596,650.00 570,000.00 (26,650.00) 47,401.25 14,465,540 3.9404% 39.40 59.11 '78.81 98.51 137.91 197.02 364.49 2027 560,000.00 4.25% 49,600.00 609,600.00 609,600.00 585,000.00 (24,600.00) 22,801.25 14,827,178 3.9455% 39.45 59.18 78.91 98.64 138.09 197.27 364.95 2028 600,000.00 4.30% 25,800.00 625,800.00 625,800.00 605,000.00 (20,800.00) 2,001.25 15,197,858 3.9808% 39.81 59 7l - 79'.62 99 52 139.33 199.04 368.23 6,270,000.00 3,435,846.25 9,705,846.25 9,705,846.25 242,847.50 $9,465,000.00 52,001.25 AVO;r1NN1TALINCR. ,:.,,$38:93;: {:.$ -, $77.86 $9733 :::;$386:26: >:$194: is . 60 MO Y3NL7; NTHL :i ::::: {53,24::::.54.87: $6.49 ,:•:$ },$16:21,: APPLICATION OF FUNDS ___ _ ESTIMATED CONSTRUCTION NEEDS $6,000,000.00 BONDS DATED: JUNE 15, 2008 �T TED AVERA � E COUPON RATE: 4.0362 -- - -- TOTAL HARD COSTS 6,000,000.00 ADD SOFT COSTS OF ISSUANCE BONDS MATURE: DECEMBER 15, 2009 THROUGH 2028 E __MATED NET _FECTIVE RATE __________________________ 4_•1246 % I DISCOUNT FACTOR (1.20% OF PAR) 75,240.00 CAPITALIZED INTEREST (12 MONTHS) 242,847.50 INTEREST: DECEMBER N 2008 AND SEMIANNUALLY THERE R BOND YEARS 85,125.00 EST. REGISTRATION (PREPAID TO CALL DATE) 3,355.00 ON EACH JUNE 15 AND DECEMBER 15. ESTIMATED RATING FEE 6,500.00 ESTIMATED FAIRNESS OPINION 1,250.00 OPTION: ALL BONDS MATURING IN THE YEARS 2017 OUGH ESTIMATED FAIRNESS STATEMENT PRINTING 750.00 2028 ARE CALLABLE AT THE OPTION OF CITY OI PLUS y NORTHLAND SECURITIES ESTIMATED LEGAL SERVICES 8,500.00 DECEBMS ACCRUED 1, RU @ OR ANY DATE THE R SUBTOTAL $6,338,442.50 PAR INTEREST. NORTHLAND SECURITIES, INC. LESS: INVESTMENT INCOME ON CONSTR. ACCOUNT ($70,968.22) (A) PURCHASE PRICE: $6,194,760.00 STEVEN J. MATTSON, EXECUTIVE VICE PRESIDENT GRANDTOTAL $6,267,474.28 PAYING AGENT 8 ROUNDED FOR ISSUANCE $6,270,000.00 REGISTRAR: NORTHLAND TRUST SERVICES 612 -851 -5919 (A) ASSUMES NET CONSTRUCTION AND INTEREST FUNDS INVESTED EST. BOND SALE DATE: MAY 27, 2008 800.851 -2920 FOR AVERAGE OF 120 DAYS rQi 3.50% EST BOND CLOSING DATE: JUNE 19, 2008 Tql IMPACT W0 A- 440*1 f V' f. J F D A-'r 00 $200 DOD