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Home My WebLink AboutA6. Resolution 4643 Law and JusticePage 1 of 5 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Chuck Winn, Assistant City Manager Anna Rosenberry, Administrative Services Director SUBJECT: COMMISSION RESOLUTION NO. 4643 - A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, AMENDING FISCAL YEAR 2016 (FY16) GENERAL FUND BUDGET FOR ARCHITECTURE AND DESIGN COSTS ASSOCIATED WITH THE CONSTRUCTION OF A JOINT LAW & JUSTICE FACILITY WITH GALLATIN COUNTY. MEETING DATE: October 5, 2015 AGENDA ITEM TYPE: Action RECOMMENDATION: Approve Resolution No 4643 after taking public comment, with any modifications made by the Commission. PROPOSED MOTION: Having considered public comment and the information presented by staff, I hereby move to approve Resolution No 4643. BACKGROUND: The Budget Amendment: During the past months, City and County staff and Commissions have been working to gain consensus and approval of the architect, design contracts, and their associated funding for the preliminary development of a joint project at the Law & Justice Center site (L&J). Many of our city and county public processes and public notice requirements differ; in either case, time is of the essence in order to meet a July 1, 2016 deadline for delivery of construction documents and project cost estimates. Due to overlapping timelines for budget amendment and contract approval, the City developed a “Total City Cost” amount and advertised for tonight’s budget amendment before knowing the outcome of the Tuesday, September 29, 2015 joint City and County Commission meeting. The highest “Total City Cost” amount was to fund “Option 1 – 80% Documents” and totaled nearly $1,327,000. The Budget Amendment was written and advertised for Option 1 costs scenarios. If we had waited until after the September 29 meeting in order to advertise for the budget amendment, we could not have had the City’s budget amendment hearing/signing of Architects contract until the meeting on October 19th. This would have been an additional 2 week delay in an already compressed project schedule. 358 Page 2 of 5 On Tuesday, September 29, 2015, at a joint meeting of the City and County Commissions, the City and County approved two professional service agreements with ThinkOne Architects for the preliminary development of a joint project at the Law & Justice Center site (L&J.) Discussion on the record indicated agreement to move forward with “Option 2 – 30% Documents.” Click Here to view the full City Commission memo. The total approved by joint-commission action was $774,702. Under Option 2, the funding requirements have decreased below the amounts originally advertised for budget amendment. The attached *Revised* Resolution No. 4643 has been modified with underline/strikeout in support of Option 2, below. A clean version of Revised Resolution No 4643 has been provided to the City Clerk for signature. Table 1 - City Funding Sources Option 1 - 80% Documents Option 2 - 30% Documents Sources of Funds: Current Budget - Police Department $ 50,000.00 $ 50,000.00 FY16 Budget Reserve – Set Aside for L&J project $ 452,000.00 $ 452,000.00 FY16 Budget Reserve (exceeded min. required) $ 304,000.00 $ 304,000.00 FY16 Tax Revenue - Unanticipated $ 280,000.00 $ 198,000.00 FY16 CM General Fund Contingency $ 100,000.00 $ - Remainder - Not Yet Identified $ 140,000.00 $ - Total Sources of Funds $ 1,326,000.00 $ 1,004,000.00 Difference between Use of Funds and Source $ (272.92) $ 269.55 We recommend moving forward with the entire budget amendment tonight, based on: 1. All of the described work is expected to be completed in the current budget year; and 2. We are not aware of any additional costs that will need to be added to the design phase; and 3. Budgeted amounts are not required to be spent. They authorize the City Manager (or, a delegated project manager) to spend up to that amount. City staff will carefully analyze each service request and authorize only the amount needed to complete the project most economically; and 4. Advertising for City budget amendments will add a minimum 2 week timeframe to processes in the future. This might not delay the project in all cases, but it adds advertising expenses and public hearing processes. The Design Project and Contract Amounts: While the City and the County approved portions of the ThinkOne Contract total (Service Order #1 and a Master Agreement that incorporates items that are described as “Optional”), their motion and discussion indicted full support for 30% Enhanced Design Development. Service Order #2 will be back before both Commissions at a later date, assumed before the December 15th scheduled completion of Service Order #1. 359 Page 3 of 5 The table below summarizes the full amounts described in ThinkOne’s Option #2 Proposal. We have split the Service Order totals to better summarize the amounts that were described in the AIA Documents that were approved on September 29, 2015. ThinkOne Contract Allocations Based on Gross Square Footage Estimates Option 2 - 30% Documents Think One Contract Hours Reimbursables Service Order #1 Program Validation $ 94,859.00 $ 8,765.00 Schematic Design $ 654,098.00 $ 16,980.00 $ 748,957.00 $ 25,745.00 $ 774,702.00 Service Order #2 Design Development $ 932,668.00 $ 16,945.00 30% Enhanced Design Development $ 382,770.00 $ 25,645.00 $ 1,315,438.00 $ 42,590.00 $ 1,358,028.00 Base Design Fee Total $ 2,132,730.00 As-needed items, described in contract $ 249,000.00 Optional items, described in contract $ 573,500.00 ThinkOne Contract Total $ 2,955,230.00 County Share $ 1,986,499.55 City Share $ 968,730.45 In addition to the contract with ThinkOne, we anticipate entering into an agreement with a Construction Manager. We recommend adding those costs to the project budget. Table 3 - ThinkOne Contract plus Construction Manager Option 2 - 30% Documents City Share of Contract $ 968,730.45 Construction Manager $ 35,000.00 Total City Cost anticipated in FY16 $ 1,003,730.45 UNRESOLVED ISSUES: 1. Approval of a contract for Service Order #2 work and agreement on joint funding for Optional/As Needed items. 2. Development of joint alternative project delivery resolutions as required by state statute and begin the process to select a qualified GC/CM. 360 Page 4 of 5 3. Development of an interlocal agreement that will detail the issues specific to the continued development of this project including land issues, future cost allocations and long-term operations and maintenance agreements. ALTERNATIVES: The Commission could choose to budget only for Service Order #1 – delaying future budget amendments until after additional service agreements and Optional/As Needed items are approved. Another option would be to change the allocation of sources for funding this project; for instance, funding could be found by making cuts to existing appropriation items/projects. FISCAL EFFECTS: The approved FY16 budget includes $50,000 for continued planning efforts for police and courts facilities. The Budget Amendment would add appropriations of $954,000, from the following sources: 1. General Fund Reserve: a. The City Commission held $452,000 in the City’s general fund reserve for possible allocation for design services. b. The $304,000 that the General Fund’s FY16 ending unreserved balance exceeded minimum levels be allocated to this project 2. Unanticipated Tax Revenue: Use of $198,000 (of the $280,000 total) in additional tax revenues that were levied this year. Table 1 - City Funding Sources Option 2 - 30% Documents Sources of Funds: Current Budget - Police Department $ 50,000.00 FY16 Budget Reserve – Set Aside for L&J project design $ 452,000.00 FY16 Budget Reserve (exceeded min. required) $ 304,000.00 FY16 Tax Revenue - Unanticipated $ 198,000.00 Total Sources of Funds $ 1,004,000.00 Difference between Use of Funds and Source $ 269.55 This would budget for all known project costs and would not require the City to go below the established General Fund Minimum Unreserved Fund Balance. When the Commission approved the levy of the additional $280,000 in tax revenues, there was discussion and vote related to decreasing this amount from the FY17 budget/tax levy. Use of a portion of the money in FY16 will most certainly lead to discussions about budget cuts/levy decreases in FY17. Attachments: Revised - Resolution No. 4643 (underline/strikeout) 361 Page 5 of 5 Revised – Resolution No 4643, clean copy Report compiled on: 09-29-2015 362 Page 1 of 3 COMMISSION RESOLUTION NO. 4643 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, AMENDING FISCAL YEAR 2016 (FY16) GENERAL FUND BUDGET FOR ARCHITECTURE AND DESIGN COSTS ASSOCIATED WITH THE CONSTRUCTION OF A JOINT LAW & JUSTICE FACILITY WITH GALLATIN COUNTY. WHEREAS, the City Commission did, on the 22nd day of June, 2015, after due and proper legal notice conduct a public hearing on and adopt Resolution No. 4602 - A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, APPROPRIATING FUNDS FOR VARIOUS BUDGET UNITS, AND FURTHER ESTIMATING REVENUE NECESSARY TO OPERATE AND MAINTAIN SERVICES OF MUNICIPAL GOVERNMENT FOR THE FISCAL YEAR ENDING JUNE 30, 2016; and WHEREAS, Resolution No. 4602 appropriates $50,000 within the Police Department’s budget for such costs. However, up to an additional $$954,000 is needed in the fiscal year; and WHEREAS, Resolution No. 4602 left $452,000 unappropriated, indicated for this project after a budget amendment occurred; and WHEREAS, Resolution No. 4602 resulted in a General Fund Ending Undesignated Fund Balance that was $304,000 above the established minimum reserve level; and WHEREAS, The City’s approved annual tax levy exceeds the estimate contained in Resolution No. 4602 by $280,000. The additional General Fund tax revenue could be used for this project; and WHEREAS, the City Commission did, on the 5th day of October, 2015, after due and proper legal notice, conduct a public hearing on the proposed budget amendments. 366 Page 2 of 3 NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, to wit: Section 1 – Appropriation Additions The City Commission of the City of Bozeman, Montana, does hereby authorize additional expenditures for Joint City-County Law & Justice Center architecture and design costs in Fiscal Year 2016 in the following fund and amounts: General Fund: Police Department – Contracted Services Expenditures $954,000 Total Additional Appropriations $954,000 Section 2 – Source of Funding for Appropriation Additions In addition to the $50,000 appropriated in the General Fund – Police Department budget for the project, the increased appropriation will be funding in the following ways: General Fund: Reduction of the General Fund Reserve: Amount earmarked, but not appropriated, at Final Budget $452,000 Amount that Final Budget exceeded minimum reserve level $304,000 Use of Unanticipated Revenues: Tax Levy exceeded Final Budget Estimate $198,000 Total Sources of Added Funding $954,000 Section 3 Pursuant to Section 7-6-4030, M.C.A., this resolution, upon its passage, shall be in full force and effect on July 1, 2015. Section 4 That should it be found by any court of competent jurisdiction that any section, clause, portion, sentence, word, or phrase of this resolution is deemed to be contrary to any existing law or regulations, that in this instance, it is the intent of the City Commission of the City of Bozeman, Montana, that all other portions, sections, words, clauses, phrases, or paragraphs of this document shall remain in full force and effect. PASSED AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 5th day of October, 2015. 367 Page 3 of 3 ________________________________________ JEFFREY K. KRAUSS Mayor ATTEST: _____________________________________ STACY ULMEN, CMC City Clerk APPROVED AS TO FORM: ________________________________________ GREG SULLIVAN City Attorney 368