ADMINISTRATION - Joe Huss, Finance Director
Title
ADOPT 2021 FACILITIES FUND BUDGET
Background
Council reviewed the 2021 Facilities Management Budget at two previous Workshops - September 21 and October 12. At the October 12 Workshop Council recommended dropping the 2021 appropriation for the painting of the City Hall atrium. That reduction has been incorporated into the 2021 Recommended Budget.
Revenue
The primary funding source for the internal service fund comes from charges assessed to each of the departments in the city’s general and utilities funds. The charges are split between two different categories: maintenance and replacement. The maintenance chargeback is used for operational expenses and any repairs to the facilities maintained in this fund, while the replacement charge assists in funding capital replacement items. For 2021, maintenance and replacement charges will increase a combined $29,600 (3%), from $986,500 to $1,016,100.
Expenditures
Operationally, the Facilities Maintenance fund accounts for wages and benefits of staff related to building maintenance. Consistent with other City staff, a 3% increase in wages and a $50/month increase in benefits has been incorporated into the 2021 Facilities Budget. Other expenditures include utility fees for City Hall, Public Works, and the Mary Ann Young Senior Center, and cleaning, and pest control services.
Additionally, the fund accounts for the contract the City has with McGough Facility Management, LLC. McGough acts as the City’s facility manager and assists the City in the management of maintenance and repairs at City Hall, Public Works, and the MAYC. McGough’s fees for management services are expected to remain flat for 2021, while reimbursable costs for repairs and maintenance of equipment is expected to decrease by about $30,000 in 2021. McGough has held the facilities management contract for the last several years and staff is recommending the City solicit a Request for Proposals (RFP) for facilities management in 2021.
2021 Capital Requests
For capital, there are mechanical system components that are scheduled for replacement at City Hall. These include:
• VAV Controllers $35,010
• Exhaust Fan Replacements $13,440
Staff has reviewed the condition of the above items and determined that replacement is necessary and advisable in 2021.
Additionally, there are items that are under review for consideration in 2021 for City Hall:
• Exterior caulking $42,250
• Carpet replacement $20,600
• Chair Replacement $7,500
• Garage flooring repairs $6,000
• Exterior security cameras $20,000
• Clock tower renovation $15,000
For Public Works facilities, there are three items recommended for funding in 2021:
• Additional parking lot lights $35,000
• Security cameras (Cold storage building) $25,000
• Brick replacement (Cold storage building) $20,000
The current projected fund balance for 2021 would be adequate for funding all operating and capital expenditures without additional unrestricted reserve transfers.
Five-Year Outlook
The five-year outlook for the facilities maintenance fund is stable if additional funding can be identified for larger, high dollar amount improvement projects related to the Facilities Maintenance fund (e.g. Roof replacement for PW Facility in 2022).
Staff continues to update and refine the City’s five-year Capital Improvement Plan, which includes the facilities maintenance plan. The CIP actually extends projections out for 10 years and ensures that the City has adequate funding to consistently replace and implement new capital and improvements to the City’s public buildings.
Recommendation
By motion, approve the following resolution.
Body
WHEREAS, a proposed Facilities Maintenance Fund Budget for the fiscal year commencing January 1, 2020 has been prepared by the City Manager; and
WHEREAS, the City Council has examined, studied, and reviewed said proposed Facilities Maintenance Fund Budget; and
WHEREAS, the City Council has, after due consideration and deliberation, made such amendments and adjustments in the proposed Facilities Maintenance Fund Budget as they consider necessary, desirable, or expedient.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Blaine as follows:
1. That the proposed Facilities Maintenance Fund Budget attached hereto is approved.
2. That the 2021 appropriations attached hereto are approved.
3. That the 2021 funding sources identified and attached hereto are approved, and, if and where indicated, the transfer of excess reserves from the General Fund is approved.
4. That the City Manager is authorized and directed to implement and to administer, within the budgetary funding limits and within adopted City policy and relevant State and City laws and regulations, said approved Facilities Maintenance Fund Budget.
PASSED by the City Council of the City of Blaine this 2nd day of November 2020.