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City Hall Project Update; Lenz CITY OF HOPKINS Memorandum To: Honorable Mayor and Council Members Mike Mornson, City Manager From: Ari Lenz, Assistant City Manager Date: November 13, 2018 Subject: City Hall Project Update _____________________________________________________________________ PURPOSE Wold Architects and Engineers and Krause Anderson will be present to give an update on the status of the City Hall project and to receive any feedback from the Council. INFORMATION The project team has been working to finalize the plans and construction documents for bidding. They will provide an update on the plans and review the budget (attached). Below are some updates on the project. Timeline 12/4/2018 - Bid Documents 12/18/2018 - Council Award Bids 12/20/2018 – Raspberry Room will shutdown 12/26/2018 – Mail services will transition to Fire Hall 12/31/2018 – Big Move Day! City Hall closed. 1/2/2019 – Doors at City Hall closed during day. 1/2/2019 – Last Council Meeting in the Chambers 1/3/2019 – Council Chambers shutdown  Council, Park Board and Planning Commission meetings will be at the Fire Hall during the project.  MAC meetings will be at the Police Department. 1/14/2019 – ICA and Resource West will pick up donated items. 1/21/2019 – Remove remaining items for project 1/28/2019 – Project begins 8/2019 – City Hall reopens Administration Temporary Office Locations Employees will have regular phone numbers and email during project Moving of staff 12/21 – 1/7 (plan to take advantage of holidays to lower impact) Fire Hall Inspections Chris Kearney Brian Stevens Justin Arries Elizabeth Page Susan Zasada Maria Jimenez Planning Jason Lindahl Courtney Pearsall Finance Mary Lein Administration/Community Services Mike Mornson Ari Lenz Laura Wolfson Amy Domeier Kelsey Baumann Kristen Stacey Pavilion Planning Jan Youngquist Kersten Elverum Finance Nick Bishop Katelyn Lindbery Jackie Thoennes Depot John Guertin Public Works Engineering Nate Stanley Eric Klingbeil Vance Campbell Facilities Thomas Conrad Police (IT Office) IT Alex Hepp Below is a summary of the current estimate provided by Kraus-Anderson for the project. In line 2, Staff is recommending an increase in PEG funding revenue to pay for some of the technology being proposed for the project. More details on provided below. OVERALL PROJECT BUDGET HOPKINS CITY HALL RENOVATION PROJECTION REVENUE 1 Construction Budget - Base + Alternates w/ Bond Issuance Fees $4,395,000.00 2 PEG Funding, Additional $66,511.00 3 Total Available Dollars $4,461,511.00 CONSTRUCTION COSTS 4 Construction 5 Construction Contracts & KA Services, Fees & General Conditions $3,609,574.00 6 CONSTRUCTION COSTS SUB-TOTAL $3,609,574.00 81% OWNER COSTS 7 Owner Construction Contingency - 5% $180,000.00 8 Design Fees and Reimbursable - Wold Architects $223,750.00 9 Plan Review Fees, Utilities, Surveys, Testing, Inspections, Abatement & Misc. Items $168,300.00 10 Bond Issuance Fees $125,000.00 11 Furniture, Equipment & Technology Allowance $308,306.00 12 OWNER COSTS SUB-TOTAL $1,005,356.00 23% 13 PROJECT GRAND TOTAL $4,614,930.00 14 BALANCE ($153,419.00) Communications & PEG Funding The City receives funds from our cable providers as part of our franchise agreement with the providers. The budgeted balance at the end of 2018 is $569,524. A portion of that funding called PEG (Public, Educational, and Governmental) fees are for limited uses relating to capital investments for PEG purposes. The City’s project PEG fund balance at the end of 2018 is $160,729. Staff is recommending several items of the proposed project come from the limited PEG funds and communications funds generally. Staff had previously proposed $150,000 of the project come from the communications fund but had not designated how much of the project would be PEG funds versus general communications funds. Staff’s recommendation is for any funds that are eligible for PEG to use PEG funds first. Based on conversations with Morecom, the City’s AV consultants, Staff is making the recommendations to increase the contribution by $66,511 to cover some additional scope and to pay for the following items with communications funds. City Hall Estimates Included in Project Council Chambers AV 112,875 PEG FEES Conference Room Scheduling 12,580 PEG FEES IT Conference Rooms 20,000 PEG FEES Lighting for Council Chambers 27,250 PEG FEES SUB-TOTAL 172,705 PEG TOTAL Morecom Consulting Fee 43,806 COMMUNICATIONS FUND (General) Total 213,705 Total The additional items added to the scope include moving to HD (new cameras, software, etc. and reorganizing the cable room with the new equipment). We also moved a portion of the lighting cost for the Council Chambers to PEG funds since these are specially formulated lights for the broadcast system. Reasons for the recommendation to increase the scope include:  It is more cost effective to make these changes at one time.  There will be no additional service impact or downtime because the Council Chambers is already closed. Some of the projects if done separately would have major service impacts on the Council Chambers and broadcasting abilities.  With an unknown future for cable and associated franchise fee revenues having made the large investments already will lower potential impact.  The City is overdue to make the HD investment and continuing to try to replace items without being HD is becoming increasingly difficult and costly. Communications Fund 2018 Projected 2019 Projected w/project included PEG Balance $ 160,728.77 $ 16,293.77 Non-PEG Balance $ 408,795.41 $ 326,005.78 Projected Fund Balance $ 569,524.18 $ 342,299.55 FUTURE ACTION The project will be going out to bid with a bid opening date on December 4. We will be asking council to approve bids on December 18.