Memo - Facility Project Update
of.
CITY OF HOPKINS
I:FIN~~C;Il)El?ARt'MENT I
MEMORANDUM
Date: October 19, 2005
To: Mayor & City Council
From: Christine Harkess, Finance Director
Subject: Facility Project Update
The facility project is near completion with a few retainages and punch items remaining.
Attached you will find a detailed financial update on the three projects.
In summary:
Proiect
Public Works
Fire Station
Total
Bond Proceeds
Available
Police
$10,557,452
$ 2,721,120
Actual Costs
$5,080,507
$3,755,475
$8,835,982
$4,105,453
(Over)/Under
$1,721,470
($1,384,333)
Available Bond Funds
$ 336,385
The remaining bond funds in excess of project requirements will be used to pay down the
outstanding debt.
If you recall when we last reviewed this project in September 2004 (a copy of that report is
included for your review) our anticipated under-budget amount was $147,041. At that time we
were in the middle ofthe police portion ofthe project, the public works and fire projects were
beginning to wrap up and we had significant balances, retainages and change orders outstanding.
As the public works and fire project were completed and the police project progressed actual
costs were recorded and a more accurate final total became available. As of October 2005 we
have under $180,000 in outstanding retainages due.
The good news is that we now expect to have $336,385 remaining on a $14.2M project, almost a
$200,000 increase from our last report.
CITY OF HOPKINS
FACILITY PROJECTS
ANALYSIS OF PROJECT COSTS
Public Works & 9906 220 240
Fire Station Total
Total Project Public Works Fire Station Police Remodel Memo Only
Original Budget (per info in files) $ 9,865,000.00 $ 3,500,000.00 $ 13,365,000.00
Bonds Sold $ 10,760,000.00 $ 3,050,000.00 $ 13,810,000.00
Add:
Underwriter's Premium paid to City $ 148,887.48 $ 148,887.48
Accrued Interest from 6/1/03 to 6/19/03 $ 5,245.31 $ 5,245.31
Less:
Underwriter's Discount $ (52,568.20) $ (52,568.20)
Financial Advisor $ (37,352.00) $ (18,676.00) $ (18,676.00) $ (22,000.00) $ (59,352.00)
Bond Counsel $ (8,300.00) $ (4,150.00) $ (4,150.00) $ (10,200.00) $ (18,500.00)
Bond Rating Fee - Moody's $ (5,750.00) $ (2,875.00) $ (2,875.00) $ (6,800.00) $ (12,550.00)
Bond Rating Fee - Standard & poor's $ (8,400.00) $ (4,150.00) $ (4,150.00) $ (5,000.00) $ (13,400.00)
Paying AgentlTrustee Fees $ (2,350.00) $ (1,175.00) $ (1,175.00) $ (2,500.00) $ (4,850.00)
Hennepin County Auditor's Certificate $ (163.60) $ (81.80) $ (81.80) $ (151.00) $ (314.60)
MBIA Surety Bond Fee (1) $ (31,000.00) $ (15,500.00) $ (15,500.00) $ $ (31,000.00)
MBIA Bond Insurance Premium $ (129,000.00) $ (64,500.00) $ (64,500.00) $ $ (129,000.00)
Deposit to Debt Service Reserve Fund $ $ (234,906.26) $ (234,906.26)
Unused Discount deposited to Debt Redemption Fund to
pay 8/1/03 interest payment $ (129,120.00) $ $ (129,120.00)
$
Bond Proceeds Available for Project Costs $ 10,557,451.88 $ 2,721,119.85 $ 13,278,571.73
Proiect Costs
Actual through 10/17/2005 - per project reports $ 9,148,496.82 $ 5,426,011.60 $ 3,722,485.22 $ 3,963,872.77 $ 13,112,369.59
Outstanding Balances & Retainages
Fire Station $ 32,990.00 $ 32,990.00 $ 32,990.00
. Police Station $ $ 141,580.00 $ 141,580.00
Site Improvements $ 4,495.00 $ 4,495.00 $ 4,495.00
Reimbursement ISO 270 - Katherine Curren site work $ (350,000.00) $ (350,000.00) $ (350,000.00)
Additional Expenditures Expected
Miscellaneous additional estimated expense $ 20,000.00
Total Project Costs $ 8,835,981.82 $ 5,080,506.60 $ 3,755,475.22 $ 4,105,452.77 $ 12,961,434.59
Bond Proceeds Remaining for Project Costs $ 1,721,470.06 $ (1,384,332.92) $ 317,137.14
Interest income $ 19,248.00
Available Funds 10/17/2005 $ 336,385.14
Costs in CfP Fund and not posted to project accounting (2) $ 10,944.52 $ 10,847.77 $ 96.75 $ 46.76 $ 10,991.28
(1) Surety Bond was purchased in lieu of placing $877,250 into a debt service reserve fund.
(2) 2002 expenses incurred in CIP fund but not charged to specific project.
Reconciliation of working capital in CIP fund and available funds per this analysis
Working Capital per CIP Fund
Avaialbe Bond Funds per this Analysis
$ 770,357.00
$ (336.385.00)
$ 433,972.00
$ 234,906.26
$ 199,065.00
$ 433,971.26
Difference
Deposit to Debt Service Reserve Fund on $3.050M issue - this should have been done in 2003 - the entry was never made
Project retainages and estimated additional expenses
Reconciled Difference
r
FACILITY IMPROVEMENTS FUND
2001 2002 2003 2004 2005 2006 Totals
Working Capital Beginning Year 0 10,196,651 6,241,043 1,298,334 770,357
Proceeds from bond issue 10,760,000 3,050,000
Reiimbursements ~ project costs 350,000
Interest 246 11,994 7,008 0 19,248
Interest ~ accrued interest pd on $3.05M bonds 5,245
Premium on 2002 Bonds 148,887
Total Sources 10,909,133 3,067,239 357,008 0 0
Fire Station 136,350 2,066,734 1,515,393 4,009 3,722,486
Public Works 157,648 4,406,480 844,623 17,260 5,426,011
Police Remodel 67,050 450,414 2,939,701 506,708 3,963,873
Bond issue costs ~ public works/fire 222,314
Bond issue costs - police 99,219
Transfer to Debt 129,120
Total Uses 712,482 7,022,847 5,299,717 527,977 13,563,023
Working Capital Year End 10,196,651 6,241,043 1,298,334 770,357 770,357
, .
Public Warks Department
Melllorandulll
From:
Honorable Mayor and Members of the City Council
Jim Genellie, Acting City Manager / ,;-(7,
-\) \) /
Steven J. Stadler, Public Works Director
To:
Copy:
Date:
September 24, 2004
Subject:
Facilities Project Update
The purpose of this City Council update is to inform Council of the current project budget status and
answer any questions. City staff, the construction manager and the project architect will be in
attendance to provide input and answer questions.
I have attached spread sheets showing costs in greater detail by individual project. Below are project
.maries. -
OVERALL PROJECT BUDGET SUMMARY
Bonds sold:... ...... ... ... ... ... .., ... ... ... ... ... ....$13,810,000
School District contribution:... .,. ... ......... .... ... ..$350,000
Total available projectfunds:................. ...$14, 160,000
Bond costs:... ... .,. ... ...... ... ... ... ............ ... .....$536,674
Project costs paid to-date... ..... ,........... ... ..$11,181,545
Outstanding payments and retainage:... .......$1 ,796,716
Change orders pending or expected (RFPs):... ..$72,024
Anticipated additional expenses:... ... ... ... .......$426,000 (1)
Expected under-budget amount:................ ..$147,041
(1) These expenses include PO furniture: $100,000; estimate for addnl PO change orders: $100,000;
estimate for miscellaneous addnl expenses: $40,000 and anticipated addnl K-A fees: $186,000
tf!24J200+
CITY OF HOPKINS
FACILITY PROJECTS
ANALYSIS OF PROJECT COSTS
Public Works & 9906 220 240
Fire Station Total
Total Project Public Works Fire Station Police Remodel Memo Only
Original Budget (per info in files) $ 9,865,000.00 $ 3,500,000.00 $ 13,365,000.00
Bonds Sold $ 10,760,000.00 $ 3,050,000.00 $ 13,810,000.00
Add:
UndelWriter's Premium paid to City $ 148,887.48 $ 148,887.48
Accrued Interest from 6/1/03 to 6/19/03 $ 5,245.31 $ 5,245.31
Less:
UndelWriter's Discount $ (52,568.20) $ (52,568.20)
Financial Advisor $ (37,352.00) $ 18,676.00 $ 18,676.00 $ (22,000.00) $ (59,352.00)
Bond Counsel $ (8,300.00) $ 4,150.00 $ 4,150.00 $ (10,200.00) $ (18,500.00)
Bond Rating Fee - Moody's $ (5,750.00) $ 2,875.00 $ 2,875.00 $ (6,800.00) $ (12,550.00)
Bond Rating Fee - Standard & poor's $ (8,400.00) $ 4,150.00 $ 4,150.00 $ (5,000.00) $ (13,400.00)
Paying AgenVTrustee Fees $ (2,350.00) $ 1,175.00 $ 1,175.00 $ (2,500.00) $ (4,850.00)
Hennepin County Auditor's Certificate $ (163.60) $ 81.80 $ 81.80 $ (151.00) $ (314.60)
MBIA Surety Bond Fee (1) $ (31,000.00) $ 15,500.00 $ 15,500.00 $ $ (31,000.00)
MBIA Bond Insurance Premium $ (129,000.00) $ 62,500.00 $ 62,500.00 $ $ (129,000.00)
Deposit to Debt Service Reserve Fund $ $ (234,906.26) $ (234,906.26)
Deposit Accrued Interestto Bond Fund $ (5,245.31 ) $ (5,245.31)
Unused Discount deposited to Debt Redemption Fund to
pay 8/1/03 interest payment $ (129,120.00) $ $ (129,120.00)
$
Bond Proceeds Available for Project Costs $ 10,557,451.88 $ 2,715,874.54 $ 13,273,326.42
Proiect Costs
Costs not posted to project accounting (2) $ 96.75 $ 10,847.77 $ 46.76 $ 10,991.28
Actual through 9/15/04 $ 8,926,978.62 $ 5,260,950.33 $ 3,666,028.29 $ 2,243.575.49 $ 11,170,554.11
Outstanding Balances & Retainages (3) $ 332,533.34 $ 152,234.76 $ 180,298.58 $ 1,266,940.28 $ 1,599,473.62
_ange Orders Pending (3) $ 10,966.00 $ (1,113.00) $ 12,079.00 $ 12,908.00 $ 23,874.00
P's outstanding (3) $ 23,937.00 $ 6,407.00 $ 17,530.00 $ 24,213.00 $ 48,150.00
utstanding Balances & Retainages - Site Improvements (3,4) $ 197,241.77
Additional Expenditures Expected
Police Department Furniture $ 100,000.00 $ 100,000.00
Police Department Change Orders $ 100,000.00 $ 100,000.00
Krause Anderson Comstruction'Manager (est) (5) $ 186,000.00
Miscellaneous (est) (5) $ 40,000.00
Total Project Costs $ 9,294,414.96 $ 5,418,575.84 $ 3,886.783.64 $ 3,747,683.53 $ 13,476,284.78
Bond Proceeds Remaining for Project Costs $ 1,263,036.92 $ (1,031,808.99) $ (202,958.36)
Add - Payment from School District for Site Improvements $ 350,000.00
Bond Funds Remaining after Actual and Anticipated Costs are met $ 147,041.64
(1) Surety Bond was purchased in lieu of placing $877,250 into a debt service reserve fund.
(2) Shown net of bond costs since bond project funds are shown net of bond issuance costs
(3) Per Facility Project Budget Status report as prepared by S. Stadler.
(4) Costs shown in total column as I wasn't sure which project these costs were reported in
(5) Costs shown in total column as project breakdown was not available.