R2016-76 AUTHORIZING CITY MANAGER TO ENTER INTO A CONSTRUCTION PROJECT MANAGMENT (Dewberry Architects)

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Item Coversheet Page 2 of 2 Project construction and management costs of$230,000, including Dewberry quoted project management fee of $217,948 plus$12,052 of estimated billable incidental costs. This investment would provide for securing facility repair and maintenance of required matters and exclude repair and maintenance of desired matters,as per the Dewberry study. The longer term course of action includes embarking on facility replacement to be conducted over the period of 2017, 2018 and 2019. This investment would amount to an estimated cost approaching$5+million, including: � Facility design,engineering and construction Project Funding The City has contemplated this investment in the approval of the 2016 budget, approved by City Council on December 7, 2015 with Council Resolution R2015-131,and with funding provided in the 2015 Tax Levy,approved by City Council on December 21, 2015 with Council Ordinance 2015-69. The City will enter into a debt arrangement,preferably with a local bank financing institution,to provide the capital to finance the investment of the short term facility repair and maintenance costs. Such debt would be secured by the City property tax levy, which includes a funding amount of$410k, as for the fiscal year 2016, with City intention to continue to fund the debt service through future property tax levies. Such debt would be termed for a period not to exceed ten (10)years, likely either 5 or 7 year term. The short term facility investment of$2.1 million principal and interest payment is secured with debt service annual property tax revenues of$0.4 million. The longer term facility replacement investment of$5.3 million would be financed with either a bank promissory note or GO bond with 15 or 20 year term. The current property tax levy will fund annual debt service amounting to $250k available beginning in calendar year 2018. POTENTIAL OBJECTIONS: There are no known objections to this resolution. INPUT FROM OTHER SOURCES: Dewberry Architects,Inc. STAFF REFERENCE: Tim Gleason,City Manager JeffAbbott,Chief of the Decatur Fire Department Gregg D.Zientara,City Treasurer&Director of Finance BUDGET/TIME IMPLICATIONS: Funding included in the 2016 budget and the 2016 tax levy. ATTACHMENTS: Description Type Resolution R�,��luti��n I �n�r Dewberr,y Agreement 13�ickup i�-latcrial https://decatur.novusagenda.com/AgendaWeb/CoverSheet.aspx?ItemID=678 6/20/2016