Agenda Item Title:
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Council considering funding options for Phase Two of the Public Works Facility
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Presenter:
Mike Gladbach, Public Works Director
Brian Kelley, Administrative Services Director
Dustin Fratto, Council Executive Director
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Description/Background:
Phase 2 of the Public Works project includes the construction of a new Maintenance Facility to address inefficient work space, outdated systems, and a decaying structure. In 2023, the project had an estimated cost of $7.4 million, and the Council allocated $7 million in funds towards the project in the FY 2023-24 budget. However, after initially going out to bid in June of 2023, the low cost estimate of the project was $9.8 million, resulting in a $2.8 million shortfall.
Considering the amount of the initial low bid, the Public Works Department has since redesigned the construction plans in an attempt to lower costs, and requested new bids for the updated project in March of 2024. The new bids ultimately came in a bit lower at $8.1 million, however, a shortfall still exists.
On March 19, 2024 The council requested additional details and recommendations on possible funding sources to cover the shortfall. On March 26, 2024, via motion, the Council expressed its support for moving forward with the low bid to complete Public Works Phase 2 and expressed its intention to fund the $1.7 million shortfall.
Following that direction staff worked to develop additional funding options for the council to consider. Attached to this agenda item you'll find two resolutions for council consideration.
- Resolution 24-15C includes transfers from existing appropriations within the capital projects fund and the sale of city property (West of the America First Stadium) to fund the Public Works Phase 2 project.
- Resolution 24-11C includes transfers from existing appropriations within the capital projects fund, the use of FY24 general revenue surplus (switch with Park Impact Fees proposed for FY25 to match RAISE Grant for trails).
Please see the attachments for additional details.
Fiscal Impact:
The Public Works Department is requesting $1.7 million in additional funds for the completion of Public Works Phase 2.
Further action to be taken:
If the council opts to adopt resolution 24-15C, when the property referenced in the resolution is sold, the council will need to appropriate the proceeds from that sale to the Public Works Phase 2 project at that time.
Recommended Action and/or Suggested Motion:
Recommendation
Motion to adopt Resolution (24-15C or 24-11C).