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HomeMy WebLinkAbout2018-10-23 Transcription Page 1 Item 2. Public Works Facility Phase I- Resolution awarding contract and authorizing the Mayor to sign and the City Clerk to attest a contract for construction of the Public Works Facility Phase I Project. Throgmorton: Could I have a motion to approve please? Mims: So moved. Thomas: Second. Throgmorton: Moved by Mims, seconded by Thomas. Discussion? Hi, Ron! Knoche: Good morning. Ron Knoche, Public Works Director. Um, obviously,uh, we took bids on Thursday for this project, uh,but to help,uh, Councilman Teague understand kinda what our process is I thought we'd run through the presentation that we did for the public hearing. Um, so this is for the Public Works facility, phase one. Urn, as we....as you know, in 2016 we approved a master plan, went through a master planning study for this,um, site,uh, down on south Gilbert Street. Uh,this is, uh, a....a map of Iowa City, um, current layout of our corporate boundaries and also our growth area. Uh, this slide shows, uh, our growth in our community, uh, over the decades. Uh,the....the master plan for this, uh, site was to pull together a major....a number of other facilities around the community and have 'em co-located on one Public Works facility. Um, obviously we have the Landfill to the west; uh,Big Ten Rental down off of Highway 1 is a facility that we have,uh, rented for our public safety; urn, Fairgrounds, we rent that facility,um....in the winter and that's where we store that's where all of our snowplows are at in the winter, uh, at the Fairgrounds; ana Napoleon is a site that we're looking at, uh, for the master plan. Uh, Riverside Drive is our current Public Works facility, um, it's also where Transit is. Uh, Gilbert Court we have our Water Distribution facility there. Urn, obviously Fire, Police is down here at City Hall and then the Water Works,which is the water plant to the north. Um, as a part of.....as a part of the....the study, we looked at, uh,where our vehicles were stored at and the time and distance it takes to get from those facilities,uh, to our...our Napoleon Street site. Um, as a part of that, urn, as we look at co-locating and...and moving folks in, urn, we figure there's about 1,600 hours of staff time saved by co-locating,uh, to our facility down on Napoleon Street. About$68,000 roughly per year in....in operation costs. As a part of,uh, the master planning for this site, uh, we did look at the South District Plan. Um, obviously this site is bookended between Napoleon Park, which is the softball facility, and Terry Trueblood Recreational Area. Uh, so the....the idea This represents only a reasonably accurate transcription of the Iowa City City Council special formal meeting of October 23, 2018. Page 2 was, uh, to try to, urn, have....have pieces of the facility that would, urn, help break down the scale along that Gilbert Street side, urn, and then also, urn, be able to somewhat hide our back ends of our facility, urn, with....with the buildings that we build. Urn, so the way that the project was split up was it was into basically four phases and then there was a major future phase,urn, so we had,uh, the...the Public Works, the.....we had, uh, the vehicle storage as phase one. Included, urn, the (mumbled) so our phase one is....is the vehicle storage and the wash bays, urn, some changes some warm storage space to use for, uh, for Public Safety, both Fire and Police, and then also the construction of a fire training tower. Uh, our phase two then is office space, added on to this building. Uh, at the time of the master plan it was,uh, Refuse, Solid Waste was going to be in addition to this building. Uh,phase three is the vehicle and transit maintenance building, uh, equipment transit, and then also storage for transit, uh, facilities and then some future, urn,build-out of Transit. So this site, uh, would co-locate Public Works, our....our Transit and Parking, and then our Fire training facility. Uh, to get an understanding of kind of the....the size of the site that we're lookin' at. Urn, this is just showing Kinnick Stadium over....overlaid on the site that we have. So our phase one of the project, uh, was designed by Neumann Monson. Uh, they had a....a number of consultants that they were workin' with on the project to....to bring this thing to fruition. Um, with this, we will be able to, uh,vacate our,uh, lease that we have with the Fairgrounds. Urn, also be able to....to, uh, eliminate our lease that we have with Big Ten Rentals. Urn, we will take the Gilbert Court facility, Water Distribution, we'll move those down to this site and then we'll also take Refuse, which is currently on the corner of the Riverside,urn, Highway 6 facility and move them to the Water Distribution building. So we're kind of shifting folks around, and Traffic Engineering will also move off that corner. So it'll open that corner for redevelopment. Um, our Equipment facility will still be on that site,uh,but we would have some ability to do some redevelopment on that corner. Uh, the project, urn, so we started the design of the project, urn, earlier this year and....and this is kind of the layout as we work our way through. Urn, with the ability to award today, we'll be able to start, uh, a little sooner, urn, hopefully be able to beat the weather a little bit this winter and get our...at least our foundations in, uh, line. Urn, as we were working through the project, uh, we had some issues with budget, and so we worked through those,um, worked with staff, urn, to....to really optimize the facility that we were...that we were looking to bid. Urn,the....the thing that we weren't really certain of, obviously the....the tariffs and some of the other....the outliers that we were gonna have, but with the University and their moratorium,we weren't quite certain how that was gonna affect the bid prices that we were gonna receive. So the project for the phase one is, uh, a little bit smaller footprint than what....that what we showed earlier with This represents only a reasonably accurate transcription of the Iowa City City Council special formal meeting of October 23, 2018. Page 3 our master plan. Uh, we have vehicle storage. The wash bay is....is now internal to the building. Urn, Fire training tower stays the same, and then obviously the work storage, cause those buildings already exist. Urn,what you'll notice is the Refuse facility piece ended up bein' pulled out and that'll be in a future phase. Uh, in a stand-alone building. Um, we will have the site security all the way around the site, urn, add some security to the back end so the Animal Shelter, urn, and then our back ends, and then also we'll do future grading for any of the, uh, future build-outs for the Animal Shelter, and then also our future phases...of the project. Uh, the alternates that we bid with this—alternate one was, uh, a 50-foot extension to the building to the north, urn, that is the warm storage and vehicle storage, and then the alternate two that we bid was a canopy for outdoor covered storage along the west side of the building. Urn, alternate one is about 11,000- square feet; alternate two adds about, I think it's like 3,000- square feet of...of covered storage with the facility. (mumbled) So this is the, this will be the ultimate master plan right now as far as revised concepts, urn, what we have here is, uh, obviously alternate one, alternate two is shown on here. Then there's also, uh, office space to the north, urn, the future Refuse, if they are co-located here, then the....the Transit equipment facility stayed the same in the master plan. Uh, as far as our site features,urn, obviously we are, um, going for LEED certification on the project. Urn, you know we had the site features of bike racks, storm water quality. Uh,we're obviously separatin' the sand and oil separator. Uh, the native and diverse plantings of, uh, along the west and south sides of the facility. We will have electrical vehicle, urn, charging stations here, uh, and then we'll have spaces set aside for low-emitting and carpool parking spaces. We could use daylight harvesting for the site, uh, with wall panels and skylights. Uh, we'll have light reflective materials inside the building to help with those things,uh, and then, uh, we'll have,uh, the (mumbled) vacancy, harvesting sensors within the... the shop spaces themselves. Urn (mumbled) speed coil doors, so obviously it's a big open box, so we'll have, urn, some different doors there to allow for vehicles in and out and then be able to hold the heat within the building itself. Urn, and then water efficiency, we'll have low-flow fixtures. One of the things we're lookin' at, uh, was added with the project was, uh, pump test pits. Our Fire Department,um, will able to basically reuse the water that they use for testing of their pumpers and their equipment. Um, and then we have some, uh,usin' water reclamation within the wash bays themselves. So the....this is the rendering from the south Gilbert Street side of the building. Uh,there'll be landscaping that'll be along there. Uh, you an see the(mumbled) of panels,uh, that are along the side of the building. Urn....the, uh, west face,just wanna point out, the....this piece to the north is the alternate one, so it's an additional 50-foot, and then the...space along here is the covered storage. So, uh, that covered storage is about 13-feet This represents only a reasonably accurate transcription of the Iowa City City Council special formal meeting of October 23,2018. Page 4 deep and it's about 12-foot tall. Uh, so we'd be able to off-load pallets, urn,be able to store materials back in these areas. Our project,uh, at the time that we went to,uh,bid, uh, was a$10.9 million project estimate. We had about$12 million that we were looking for overall total budget. Urn, I'll point out that that did not include any contingency,uh, in that original budget. The,um,base bid for the project if 74,250-square foot of storage, um, anticipated we'll have this project completed in a little over a year, urn, silver certification for the LEED. Uh, alternate one was estimated at 715,000. Alternate two was estimated at 270,000. Urn, last Thursday we had nine bidders, uh, so it was a very good bidding climate for us. Uh,we had, urn......our....our low bid, or our apparent low bid, was Merit Construction. Uh, their base bid was $10,187,300. Urn, their alternate one bid was $597,000, and then alternate two was $193,000. So the total base bid, uh, was $10,978,700. Um, so we were roughly within I00...er, within$100,000 roughly of what our original construction budget was. Urn, was able to go through.....wanted to add a contingency back in, so our overall, uh, project budget right now would be about $12.8 million. That includes about a half million dollars in contingency for us. Urn, the....the way the funding package is set up, um, I think we'll....we would be able to move forward with, urn, alternate one and alternate two on this project, so we would recommend then moving forward with both alternates, and uh, move forward with Merit Construction. Throgmorton: Ron, could you, or....and/or Dennis,talk a little bit about the financing? You know, how we gonna pay for it....just explain that for us, please. Fruin: Dennis, why don't you come up and walk through that. Bockenstedt: Dennis Bockenstedt, Finance Director. Uh, we've really pulled the financing for this,uh, project from a number of sources. Um, we've really been accumulating funds from the...the various, uh, operations and funds that are gonna be used in the facility,uh, those include,uh, six different funds. Uh, dollars are corning from the Equipment fund, uh, a portion from the Water fund, Storm Water fund, and, uh,those total about $6.9 million. Uh, we've also had a(mumbled) bond issues. One for the Fire training center and,uh, also for the design of the facility, and those total bond funds come to $2.3 million. Uh, there is a contingent piece of funding, and that is, uh, $1 million for the future sale of the land. So, right now that piece is just gonna be, uh, kind of I would say in limbo, uh, and hopefully once the facility is built and the old facilities are demolished, uh,we'll realize that $1 million from that sale and then, uh,to cover the additionally expanded footprint and, uh, the cost,we are gonna use a$2.5 million internal loan. That'll be repaid over 20 years at 3% interest, uh, with road use tax and general funds. This represents only a reasonably accurate transcription of the Iowa City City Council special formal meeting of October 23, 2018. Page 5 And so overall we managed to,uh,pull together this package over several years, uh, from a variety of sources, and we're able to meet, uh,that$12.8 million budget. Is there any questions about..... Throgmorton: (several talking) ...would wanna follow up on that particular question. Cole: Uh, I have a question. Hey, Dennis, was any consideration given to the savings of a solar installation over the course(mumbled)third-party purchase agreements explored at all in this project? Bockenstedt: Uh, we did not explore third-party, uh,purchase agreements. I'm not sure what, uh,Neumann Monson looked at as far as, uh, in the solar or other,uh,potential, uh, green energy options. Um, and I believe that's not currently in this,uh, package. Uh, so the construction costs for that,uh, is not incorporated into this, uh, and so what any potential savings or funding options have....have really not been included in this budget at this point. Throgmorton: But, Ron, the building,the main building, is designed to accommodate PV panels, is it not? Knoche: That is correct. So the....the structure for the roof has the capacity to hold solar panels and one of the....one of the projects that we're to bring forward with this next,uh, CIP process would be a solar,uh,project for the facility. Uh,Neumann Monson has done some, urn,preliminary, very preliminary, looks into the solar side of things and....and as we dive into that a little bit deeper we'll have a better understanding of....of what options we really have with the solar side of....on this building. Um,but...but the, you know,the operating costs or the operating savings would be an operating budget(mumbled)be in the capital side of this project. Fruin: So just a....just to be clear on that(several talking in background) we do plan to present that to you in your CIP this...this January, so you'll see that project in there. Uh, and that would probably be paid for with an additional GO bond. Salih: Yeah, can you just tell me how much is (unable to understand) fund and the loan, and the (unable to understand) internal loan from where exactly? Bockenstedt: Uh, the internal loan is $2.5 million(both talking) Salih: 2.5.... This represents only a reasonably accurate transcription of the Iowa City City Council special formal meeting of October 23,2018. Page 6 Bockenstedt: ...split that 60/40 between the road use tax fund and the general fund as far as repayment, uh, of that loan, and that'd be over 20 years and we've utilized that for other, uh, large facilities that the City's constructed, versus trying to go out in the bond market or do some other means of financing. Urn, it allows our internal funds to, uh, achieve maybe a better rate of return they would in the investing market and at the same time borrowing the money at a lower rate than we would from an external market. Salih: Yeah. Okay, and you said (unable to understand) Bockenstedt: Uh,the road use tax fund. And....and, uh, those funds, particularly the road use tax fund (mumbled) achieve some savings from some of the things Ron talked about, uh, so some of the lease, uh, leased facilities,uh, and also the Police and Fire were leasing facilities and so there's some savings, uh, that we'll achieve through....from not leasing facilities, that will help offset the cost of payments. Salih: And how much the bond? Bockenstedt: Well, it's an internal loan. It'll be $2.5 million. Salih: No,that's for the internal loan (both talking) Is there is any like, uh, what was it, Geoff? Fruin: What have we issued so far with GO bonds? Bockenstedt: Oh! I'm sorry, we've issued$2.3 million, um, and that's been over a series of years. So that's....that's not just been all at one time, and uh, 700,000 was issued for the Fire training center and that was several years ago. Um, we issued, uh, actually$350,000 a number of years ago. It was from the master plan and we still had some funds bein', uh, held over from that, and then we issued 700,000 for the design of the facility a couple of years ago. Uh, and that was....that's the 1.7. Then we additional, uh, another....or 1.6, and then we issued an additional 700,000, uh, this past year for the construction portion. So it's been a series of three or four issues over, you know, like four-year period that have accumulated, but the total is $2.3 million in....in GO bonds over that period of time. Salih: (mumbled) Okay. This represents only a reasonably accurate transcription of the Iowa City City Council special formal meeting of October 23, 2018. Page 7 Fruin: And then again you might, in the CIP, you might see another,um,up to 700,000, uh, related to this project, primarily to pay for, uh, solar,but we could also work...work some additional GO bonds into the....into the funding itself, and then we need to work out, uh...uh, a little bit more on our end. So I....I think when it's all said and done you're probably lookin' at close to $3 million in GO bonds, uh, which is pretty remarkable, at least from where I sit,when you're gettin' a....a facility of nearly$13 million. Just shows how long it's taken to accumulate the reserves in some of those other funds to help bring this project to reality. Throgmorton: Ron, could you say a little bit about the improved working conditions for our employees that will result from this project? Knoche: Yeah, so the...the, you know,right now, urn, and especially during the winter maintenance side of things, our....our folks have to show up off site to a facility that you basically can....have to squeeze between the trucks to be able to....to get in the trucks and pull them out, uh, during the winter maintenance. Um, so you know the....the facilities that....that are there are very tight, um, and you know any type of maintenance that you're doin' as far as, urn, replacing blades and doing some of those things, you're doing those things outside. You're not doing them, uh, in a warm facility. So,um, this would allow folks to be able to,urn, you know, in the winter maintenance fight of things, um, be able to get to their... maintain their vehicles in a manner,urn, that...that is more modem times,uh, versus,uh, the old times. Um,but uh, the other side of it is, urn, you know, in the morning when our folks are goin' out now, um, they're havin' to warm up trucks, they're having to do things to.....to, you know, from a maintenance standpoint, uh,they would be able to basically get in their truck and drive out, and....and to to work, uh, versus havin' to let vehicles warm up, uh, having equipment warm up, um, and uh, there's efficiencies there. Um, you know,this facility, um, you know, we're workin' out of buildings that are in the 60s on this site currently, um, vintage and even the facilities that we're working out of in other places in town are that same vintage, so they're, um, getting to the end of their useful life as far as, uh, you know, being able to use them as....as public facilities. Throgmorton: Great,thanks! Any further questions for Ron or Dennis? Mims: I don't have any questions. I would just want to comment and....congratulate the staff on the long, hard work that you've done to get this thing designed and more importantly to pull the financing together. Um, I think, you know,prior to Dennis we had a great Finance Director and Dennis has....has certainly,uh, continued and/or exceeded that, and I...I don't think, if you don't typically understand the This represents only a reasonably accurate transcription of the Iowa City City Council special formal meeting of October 23, 2018. Page 8 details of...of municipal fmance and the limitations on things we can do, I don't think you realize how hard it is to pull together almost $13 million for a project like this and that's where I think staff has just done an outstanding job over a number of years to figure out ways to accumulate reserves, you know,how to use GO bonds within the limits for various pieces of the project, urn, this is....this is a huge,huge project for the City and obviously the next really big one related to this is Transit and, um, I expect that staff will be just as (laughs) creative in trying to find the money for that one as well, so....thank you very much to staff! Throgmorton: Any other questions for Dennis or Ron? Thank you! Any Council discussion? Glad to see us moving ahead on this. I think it's a much needed project. Many of us have had an opportunity to visit some of the existing facilities and they are in pretty bad shape, especially from the point of view of anybody who has to work in those facilities. So I'm pleased we can do this. Great job, Dennis! Great job, Ron! No further discussion? Roll call please. Motion carries 7-0. This represents only a reasonably accurate transcription of the Iowa City City Council special formal meeting of October 23,2018.