HomeMy WebLinkAboutCC RES 03-091 A RESOLUTION TRANSFERRING FUNDS FROM THE WATER/SEWER REVENUE BONDS TO THE PUBLIC FACILITIES PROJECT Meeting Sheet
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Box: 31
Folder: RES 2003
Document: CC RES 03-091 A RESOLUTION TRANSFERRING FUNDS
FROM THE WATER/SEWER REVENUE BONDS TO THE PUBLIC
FACILITIES PROJECT
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• CITY OF ST ANTHONY
RESOLUTION#03-091
A RESOLUTION TRANSFERING FUNDS FROM THE WATER/SEWER REVENUE BONDS
TO THE PUBLIC FACILITIES PROJECT
WHEREAS, the bidding process has been completed for the Public Facilities Project; and
WHEREAS, soil contamination has since been discovered at the Public Works site; and
WHEREAS, the City Council has considered all viable alternatives to balancing the budget,
including reducing or eliminating portions of the new facility; and
WHEREAS, Oertel Architects/Krause Anderson feel the low bidders are good contractors and
find the bids to be competitive; and
WHEREAS, the funds are available to transfer from the Water/Sewer Revenue Bond Projects
Fund;
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NOW,THEREFORE, BE IT RESOLVED that:
1) The sum total of $157,000 is transferred from the Water/Sewer Revenue Bond
Project to the Public Facilities Project. The funds shall serve as funding to correct
the soil contamination costs at the Public Works site.
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Adopted this day of CA,44th.J K03
ATTEST:
City Clerk
Reviewed for administration: CityManager
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MEMORANDUM
DATE: September 29, 2003
TO: Mike Mornson, City Manager
FROM: Roger Larson, Finance Director
ITEM: PUBLIC FACILITIES - SOIL CONTAMINATION & FIRE STATION
I performed an analysis to determine if funds are available to support the cost of
correcting the soil contamination issue at Public Works and the higher costs for the Fire
Station.
The original budget for the project included:
Public Works Facility $2,481,750.00
• Fire Station $1,757,750.00
Land Acquisition $ 500,000.00
Architect—Oertel $ 340,000.00
Kraus Anderson (CM) $ 126,000.00
Bond Issuance/Insurance $ 138,000.00
Bond Discount $ 186,500.00
Total $5,530,000.00
The initial budget did not include contingency funding for soil contamination issues or
bids coming in higher than projected. At the time the budget was set, it was felt that the
construction bids would be considerably less than the projected costs and would serve as
a funding source for unforeseen costs such as contaminated soil problems or higher costs.
As we are aware, the bids for Public Works came in very near the budget allocation,
creating a need to research alternative funding to correct the soil contamination issues.
Also, the bids for the Fire Station were higher than projected which requires the
appropriation of additional funding or trimming back on the quality of the building.
When trying to determine what funds might or might not be available, one of the first
options is to check existing projects to determine if funds could be accessible and redirect
those funds to support the deficit of another project.
Upon researching our current projects, funds (up to $390,000) are available from the
• Water/Sewer Revenue Bonds Projects that could be transferred to the Public Facilities
Project to fund the deficits.
• In March, the City sold a$2.2 million bond(funded by water rate increase) to support
four water and sewer improvement projects:
1) Water Main Replacement/Kenzie Terrace $ 630,000
2) 27th Avenue Sewer Replacement $ 440,000
3) Water Filtration/Chemical Room Upgrade $ 960,000
4) Up-Grade Electrical System/Wells 3,4 & 5 170,000
$2,200,000
Because of a favorable bidding climate, WSB & Associates combined the Kenzie Terrace
Water Main Project and the 27th Avenue Sewer Project. By doing so, the actual cost was
$850,000 compared to the projected cost of$1,070,000.
Because the remaining funds $220,000 are associated with Public Works activities such
as maintaining the water and sewer system, Council could authorize the unused funds to
fund another public works project.
I contacted Todd Hubmer, WSB & Associates, to inquire if he had any concerns
regarding use of the funds for another project. Mr. Hubmer's only concern was that, if
these funds were transferred to another project, we establish a contingency plan for the
possibility that costs for the Chemical Room Upgrades could come in higher than the
• adjusted budget.
If the actual costs of the projects did come in higher than expected, my recommendation
would be to transfer reserves or interest earnings from the water filtration funds to offset
a deficit in funding.
An additional, $170,000 could be made available by deferring the budget of the Electrical
System Improvements for Wells 3,4 & 5. Future funding options would include:
1) If the Chemical Room Upgrades came in under budget,
the funds could be used to complete the electrical
improvements to the wells.
2) As part of the 2003 water rates, Council approved an increase
of 5 cents per 100ccf to fund non-recurring maintenance costs.
These funds could be designated to fund some or all of the
electrical improvements.
Consideration:
To balance the budget for the Public Facilities/Public Works Site, Council authorizes a
transfer of$157,000 from the Water& Sewer Projects to finance the soil corrections.
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