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Home My WebLink About04-06-09 Worksession Packet 1 7 • FILE COPY CITY OF OAK PARK HEIGHTS CITY COUNCIL MEETING MONDAY, APRIL 6, 2009 AT 5:30 P.M. I. Call to Order /Approval of Agenda I1. City Hall Facility II1. Adjourn • • Page I of I Eric Johnson From: Michael Lueth (michaellueth@buetowarchitects.com) Sent: Thursday, April 02, 2009 11:46 AM To: Eric Johnson Subject: City Hall Project - Alternates Eric, See below for Alternates: 1. Provide interior window blinds. 2. Marker Boards and Tack Boards. 3. Provide bonded terrazzo flooring and base in the Rotunda and adjacent Alcove in lieu of terrazzo floor tile. 4. Provide flag pole. 5. Provide Police Lockers in Locker Rooms. 6. Fluorocarbon Color on exterior aluminum windows, louvers, entrance door frames and sunshades. 7. Replace aluminum windows with wood windows. 8. New Public Works Building instead of adding onto existing, • 9. Humidification System — Add interior Humidification System. Refer to Mechanical Addendum for description. 10. Interior Finishes — Provide Porcelain Tile at flooring, base and walls in the following Rooms: 006 Janitor, 015 Men's Lockers, 016 Women's Lockers, 164 Public Works Locker Room and 165 Public Works Rest Room. Base Bid: Provide sealed concrete floor and epoxy-painted base and wall in each of those rooms. 11. Interior Finishes - Provide Porcelain Tile flooring and base in the following Rooms: 004 Janitor, 006 Voting Machines, 007 City Archives and 008 Hall. Base Bid: Provide sealed concrete floor and epoxy-painted base and wall in each of those rooms. I spoke to Jennifer about the sets of drawings. One set was in the conference room (missing spec books, let me know if you want them replaced) and the other Jim Butler has. Mike Michael Lueth, LEEDO-AP Project Architect Buetow and Associates, Inc. 2345 Rice Street, Suite 210 St. Paul, MN 55113 Phone (651) 483-6701 Fax (651) 483-2574 • 4/2/2009 1. City of Oak Park Heights 14168 Oak Park 131vd. N • Box 2007 . Oak Park Heights, MN 55082 • Phone (651) 439 -4439. Fax (651) 439 -0574 4/3/09 MEMO �4 TO: City Council Members FROM: Eric Johnson, City Admi i 1 r ; RE: City Hall Facility 1. As a follow up the to the City Council Workse ion of 3/31/09, Attached is a spreadsheet showing the current estimates for the City Hall Facility and possible funding sources for covering the known shortfalls as a result of the bidding process as compared to the Architect's estimate. Essentially, the City must input an additional $1.25 million dollars into the project. All other amounts are held constant. We ill walk through this at the City Council meeting. 2. On Thursday, April 2 ^d , the Building design Committee met and reviewed the Alternates and does • recommend that if the City Council does decide to move forward that Alternates 1,2,4,5,7 & 9 be selected. 3. The Building Design Committee also discussed that should the City Council decide to REBID this project, there was a consensus that the project should: "Use a metal roof instead of skylight at Rotunda, face brick instead of stone at exterior of Council Chambers, acoustical tile ceiling and vinyl wall covering instead of wood ceilings and acoustical panels in Council Chambers, simplify council chamber dais, delete front canopy and delete clerestory windows at east and west ends of building: anticipated cost reduction of approximately $160,000 to $200,000." (Implement Option 2A — see attachment 2) 4. In speaking with Steve Mattson of Northland Securities as to the possible option of the City issuing the balance of its BOND CAPACITY of an additional $1.2 million dollars to fund the majority of the apparent shortfall; if the City did issue these bonds, the City would net approximately $1,150,000 in proceeds after all issuance /capitalized interests costs were factored in. From a tax impact standpoint, it would be approximately 1/6 of the previous issuance, +/- $15.00 per year on a $200,000 home, but I do need to verify this number. (Please see 4/3/09 email Steve Mattson) 5. 1 have asked Judy Hoist, Finance Director if the City did proceed with funding the project shortfall from internal resources would it cause the City to experience any'cash -flow' problems through the course of the upcoming years. Judy H, indicated that she did not believe that this action would cause the City to experience any short —term cash flow issues nor would result in short term borrowing between tax settlements from Washington County. (See J. Hoist's email as attached) Attachments: 1. Additional Funding Source Spreadsheet, 2. Email from Randy Engel offering various design changes I savings est., 3. Final Bid Tabulation w1 Recommended Alternates 1,2,4,5,7 & 9., 4. Email from Steve Mattson, Northland Securities. 5. Email from Judy Hoist, Finance Director • Oak Park Heiiahts - City Hall Facilitv Additional Funding Source - Updated Costs and Fund Sources (4/3/09 update) ESTIMATED PROJECT COSTS Construction Contract - Base Bid (Includes Geothermal) $6,319,000 Cost of Alternates as reccomended by Committee (4/2/09) $39,500 Alternate N3 (blinds) $4,000 Alternate g2 (marker / tack boards) $7,000 Alternate e4 (flag pole) $7,000 Alternate p5 (lockers) $2,500 Alternate g7 (wood windows) $3,000 Alternate #9 (humidification) $16,000 Total Construction Contract (Base Bid and Alteranates) $6,358,500 (Jorgensen - Bid) Other Anticipated Costs (Placehoiders only for budgeting purposes) Furniture & Fixtures $100,000 Thou amo.n+. may<nange, Audio Visual/Telecommunications $70000 • but aunu th-we maa Old Building Investigation Shou eslimted 8 B $150,000 ~— snouw Architectural Fees and /or Reimburseables (includes Geothermal) $530,000 ;. >.,�.._,.. • mourns mama+dr ae ins, City Engineering/Geotechnical /Survey $50,000 racnae,.ci u1efe will w fewer tunes needed from aher wurces Other (Legal, Publishing, etc.) $10,000 ii,rma«..! • wbw Contingency $122,504 1 f ~ Total Estimated Costs $7,391,004 — ACTUAL FUNDS AVAI FOR PROJECT Net Bond Proceeds $5,952,504 Accrued Interest (Estimate) _ _ $184,406 Total Actual Funds Available $6,136,910 Amount Needed From Other Sources (Based on Other Estimates) $1,254,094 FUNDS AVAILABLE FROM OTNR REVENUE SOURCES Budgeted projects - Outdoor Storage $65,000 Budgeted Projects - Municipal Building $160,989 Budgeted Projects - Unallocated $89,941 Park Dedication Fund (New Trail, Prairie Restoration, Green Space Restoration) $100 Storm Sewer Fund (pond and storm lines of project) $75,000 (awaiting additional information) Reallocate Next Year's Transfer Out to Streeet Reconstruction $320,000 (unknown budget conditions In 2010) • Capital Revolving Fund (Balance 9) $826,479 Possible Funds Available From Other then Revenue Sources $1,637,409 ( Note: There Is also a cost associated with the holding of bond proceeds; the City issued Its notes at 4.00% and Is currently earning less than this amount in Interest, approximately 3.00%a this time. This equates to a $5,000.00 loss -value on these funds each month. Pagel of 2 • Michael Lueth From: Randy Engel [ randy _engel @buetowarchitects.com] Sent: Wednesday, April 01, 2009 2:00 PM To: Eric A. Johnson Cc: Michael Lueth (� o J'N Subject: OAK PARK HEIGHTS CITY HALL (BA #0822) D April 1, 2009 Summary as follows: 1.0) Estimated Project Budget: $5,070,000 + $300,000 for Geothermal System = $5,370,000 2.0) Apparent Low Base Bid: $6,319,000 3.0) Prices for 11 Bid Alternates and 5 Unit Prices were received. 4.0) Possible Bid Result Options: Option 1 Accept Apparent Low Base Bid of Jorgenson Construction and either no Bid Alternates or any combination of Bid Alternates. Option 2 Reiect Bids. seek some or all of the following changes for rebid: 2A) metal roof instead of skylight at Rotunda, face brick instead of stone at exterior of Council Chambers, acoustical tile ceiling and vinyl wall covering instead of wood ceilings and acoustical panels in Council Chambers, simplify council chamber dais, delete front canopy and delete clerestory windows at east and west ends of building: anticipated cost reduction of • approximately $160,000 to $200,000. Could be selected individually or could be combined with other Option 2 paragraphs. Second round of bids expected to be received in 5 to 6 weeks. 213) delete geothermal system and heat pumps exchanged for boiler(s) and air handler(s) instead: anticipated cost reduction of approximately $300,000. Could be selected individually or could be combined with other Option 2 paragraphs. Same re- bidding timetable expectations as 2A above. 2C) Eliminate Rotunda and replace with continuation of gable roof: anticipated cost reduction of approximately $150,000 to $200,000. Could be selected individually or could be combined with other Option 2 paragraphs. Second round of bids expected to be received in 7 to 8 weeks. Note that the addition of an intersecting blank -face roof gable in place of the Rotunda would reduce the anticipated cost savings in this paragraph and could add back $75,000 to $100,000 depending on its size. 2D) Eliminate metal -clad gable roof system and replace with flat surfaced (but sloped to drain) built -up roofing system: anticipated cost reduction of approximately $100,000. Roof structural system would be horizontal joists instead of sloped joists. Could be selected individually or could be combined with other Option 2 paragraphs. Second round of bids expected to be received in 7 to 8 weeks 2E) Eliminate 1000 square feet from each floor: anticipated cost reduction of approximately $200,000. Could be selected individually or could be combined with other Option 2 paragraphs. Second round of bids expected to be received in 7 to 8 weeks. Note: Rebiddine could shift Droject timetable farther into winter. occupancy in February or March. 2010 and would require two extra months of temporary heating costs for the interior during construction at about $8.000 to $10.000 Der month that the Contractor would add to the Rebid. Option 3 Accept Alternate 8 Demolish Public Works Building and do not add to it: anticipated cost reduction of $500,000. Could be selected individually or could be combined with any of the above paragraphs in Option 2. • BUETOW AND ASSOCIATES 4/1/2009 rk Heights City Hall, Oak Park Heights, MN M-M5r-09 Bid Tabulation Buetow S Assoc. 1 ❑ ❑ ❑ BAJ� [a ❑ (D [a tl TOM I d --- — ----- --LxL--zL!— Vmen L 5 �K"'nj ndT �' T.— R." u. T. G.. - t -�— --- — G-v. sy— —DY' $6.602850 W571000 In= S27MJ S3.2=Wo (S5.D30) SSYSD v.- 17.1- -.-1! si.noo IU.oco 313,aM S4,75 $800 SO.50 35507 3305." 4m Y. 26.6 74.430 S6.6$= V4. I.. 325.6X) I'.. W—) so r$ M20.000)1 sm-ow Vs.= Woo I,. I... Y. Y� � 52 j I�! S3cW fS5M.COG) is-oco m saso G" 12 4w Y- j— se.319.=! 533 s<=Q' 523.000 $1.000 w= I 'joo '.00 La 6�' c..�j m S1.7, 525,500 so s5.300 sB...Dc m4kq 000), ($%-,000j M I s n $:: 3 sloo S',600 $30 M 5',0 Y. Y., 56.6Z7. o c-- ft. X55S.-M $*420.0.- $45.990 S< 5 ?2= $'4.300 Is= m= sl'mc m Is 312 00 sso) 551')' $2700 353 Y- yl_ M-2—yc— $6.766.622 $6.673.27Z 553.350 S4800 48.000 530.000 so'sm sA7.6m VE.000 52-M (SSM.000J $21.mo M$Do sis.000 sizoo Moo ssoo cc Moo Q. Y- V. ki— c—a. m I.x 56.433251 ss,lw_m 523.355 I. $34.707 33.6o v, I3507 5'5 !,00 (53.w.x 7 sw.m — 112- IT.- I! -- SMW I Y- ty 56.63£3K $6. sno.�—r_ 351.864 S2 &-* S. 1 3D S23.= SID50c 3 7-3K $ (I672.00011 5 1 54.000 1472 5625 I sm. I 113 L5 3160 1 47 1 Yam Ya sh—, s?.000 Y c—y .33D ss.030 Is oco "5.8w issoDo'l s slo-ow zsk=) ow 551W :2 52300 s%oc 1. Y., � 0 — c-11.1 sm-5 o3c 1 ss,mwo $30.000 Is.ow M0001 - Y� saoco s" ' s"5 ' =1 � ses-M zm= $26ow 3 ssm I S 00 tk Page 1 of' 1 • Eric Johnson From: Steve Mattson [ smattson @northlandsecurities.com] Sent: Friday, April 03, 2009 4:10 PM To: Eric Johnson Subject: additional financing Eric, You have asked the question "What is the cost of issuance for another small issue to finance the city hall project "? The answer is as follows $5,000 for legal expenses $6,000 for rating fees $1,000 for misc. (paying agent set up fees plus first year fee) Total of $12,000 for fixed expenses Variable expenses would be the discount of 1.30% of the size of the bond issue and maybe some capital interest (construction interest) 9 months estimated to be $36,000. Capital interest could be eliminated if the city has monies on hand. (the $36,000 assumes an issue size of approx. 1.2 million) • Hope this answers you question. if you need a schedule run that would include blending in the original issue I would be happy to do that. Steve Steven J. Mattson Executive Vice President Northland Securities, Inc. 612- 851 -5919 h II ":I. ` ji , 't.,. .l. (:'. �:;.. ..1. (: .: .:'i :: ail ...:. ...: '.t il? : ,. :: "[.,I• :.. - 1,.: .. ': 11', .. ; �. :1.l :`: , ,1` I 1 l : .7:) il- ;,,. .,t.: n; ., 5. L V..; -;.' SS(111)tSonO 11101 thli711(tsocurltio 1. - ' - , ..`i )1. ;1 :Ii: ,.i ,:.: :'•..1 .. :. :::;':..IC ,. .. C.L., , 5::. I al S , .. iSl - ,i : :1.....!lt'. ,.UJ,. ;IQ:.. .: 11 .. t�; .1.. .•1. I.,.... 4/3/2009 Page 1 of l • Eric Johnson From: Judy Holst Sent: Friday, April 03, 2009 1:47 PM To: Eric Johnson Subject: Cash Flow Estimates for City Hall Project and Regular AP and Payroll Eric, I have updated the estimated draw schedule for construction of City Hall and reviewed the investments due through March 2010. After review of the investments, estimated draw schedule and the cost of normal operations of the City, it appears we will have sufficient funds to meet cash flow if the Council decides to go ahead with the project. Let me know if you need further information. Judy • 4/3/2009