Administration - Michelle Wolfe, City Manager
Joe Huss, Finance Director/Asst. City Manager
Title
Award Bids and Quotes for the City Hall/Police Department Improvements
Executive Summary
Council is requested to award the bids and quotes for the City Hall/Police Department expansion and improvements project.
Background
Construction of City Hall began in 2001 and the building opened in April 2002. The total cost to construct the 115,000 square-foot facility was just under $15 million and included 21,250 square feet of unfinished space on the third floor. At the time, the construction of the third floor was acclaimed as a strategic decision intended to save future costs of constructing additional space that would be needed for staffing growth (especially for the projected growth of the police department) as Blaine continued on its path to full buildout. The initial vision and resulting design of the building allowed for Police expanding to the Finance and Administration area of the second floor with those areas displaced by the police expansion moving up to the third floor. While it was clear at the time of the building’s construction that there would be additional future costs to complete the third floor, it was recognized that this cost could be reduced to include only finishing costs if the third floor was constructed at the same time that the first two floors were being constructed. Since opening in 2002, significant increases in the city’s population, especially the city’s daytime population from expanding commercial/industrial and retail businesses, along with residential development, has driven demand for public services. In response, roughly 40 additional staff members have been added to the City Hall and Police Department. With this and increased demand for community space at City Hall, discussions about expansion of City Hall started to take place.
In fall of 2017, the City Council authorized a space needs study of City Hall and the Police Department to look at making efficient use of existing space as well as develop a plan for occupying the third floor. After review of the space needs study, in the spring of 2019, City Council authorized the hiring of an architect and construction manager to design improvements that would allow for the expansion of the Police Department including the finishing of a portion of the third floor. With that, the City contracted with Wold Architects and RJM Construction Management to start design of the improvements for City Hall and authorized the sale of $4.2 million in capital improvement bonds to finance the project.
As the final drawings were nearing completion, the pandemic hit and these improvements were put on hold. However, with the receipt of bond proceeds in August 2019, the clock to complete the project began ticking and at a June 2020 workshop meeting, City Council discussed the need to proceed with the project. Treasury and IRS regulations require that proceeds from the bonds be substantially spent within three years of receipt. If the City does not comply with this timeline, the bonds could convert from tax exempt bonds to taxable bonds and would negatively affect bondholders as well severely compromise the City’s bond rating.
The design has focused on enhanced customer service with an expanded customer service area in the lobby and by co-locating representatives from multiple departments to the customer service area. In addition, the plans include a significant increase in meeting and training space that can be used by the public. City Hall conference rooms are actively used by many community organizations and recreation staff often struggles with locations to host their programs and events.
The design of future spaces and the expansion of the first floor customer service area have taken into account the recent pandemic requirements for resident and employee health and safety. The front service counter with glass barriers will handle the majority of the business that comes to City Hall. Future workspaces will have cubicles with higher barriers for improved employee safety. In addition, consideration has been given to the possibility that more remote work will occur in the future. If the number of employees periodically or regularly working from home continues to increase, workspace should be designed to be more flexible.
On March 2, RJM and Wold conducted the bid opening at City Hall. There were nine different bid categories and 14 quote categories. The bids and quotes were reviewed by RJM and Wold and the estimated project cost is $4,196,852, including contingencies, which is slightly under budget.
As part of the project, the city requested alternate bids on four items, and staff is requesting Council consideration of three of the alternates at this time. Funds available for the project total about $4.3 million and include initial proceeds of $4.2 million from the sale of the bonds and roughly $100,000 of premium and interest earnings to date. In addition, project contingencies of around $200,000 are included in the project estimate. If Council wishes to move ahead with the alternates, funding is available. Additionally, two of the alternates would qualify for use of forfeited police funds. As a safety measure, if contingency funds would be required for other project costs, the forfeited funds could act as a safety net and provide funding for completion of the alternates.
The three alternates for Council to consider are as follows:
Alternate 1 - Additional offices for future growth in building inspections
Cost: $47,484
Alternate 2 - Storage cubbies for officer duty bags
Cost: $40,795
Alternate 3 - Expansion of high-density storage in evidence room
Cost: $36,229
Strategic Plan Relationship
Well-maintained infrastructure - City Hall and Police Department will undergo improvements during the remodel that will meet the needs of the community for the next 20 years.
Organizational health - providing adequate work spaces for employees. Providing a wellness room for employee health.
Board/Commission Review
Not required
Financial Impact
The financial impact of increasing occupied workspace has been incorporated in the city’s five-year budget model.
Public Outreach/Input
The project was financed with Capital Improvement Bonds which required a public hearing to adopt a five-year Facilities Capital Improvement Plan and the financing of the project.
Staff Recommendation
Approve the following Resolution awarding bids for the Blaine City Hall and Police Department improvements and the three bid alternates and their funding sources.
Attachment List
PowerPoint
RJM Construction Estimate
RJM Recommendation of Award
Build-Out Plan
Body
WHEREAS, the project was identified in the 2019-2023 Capital Improvement Plan (CIP). On March 21, 2019 Council authorized the issuance of 4.2 million of capital improvement bonds for City Hall and Police Department improvements; and
WHEREAS, the current estimated project construction cost, as tabulated and recommended by RJM Construction, the project manager, including bids, quotes, contingency, management fees, and projected soft costs of $616,000 is $4,196,852; and
WHEREAS, the City will manage the project soft costs of $616,000 which are inclusive of furniture and equipment, SAC/WAC fees, plan review and special inspections, low voltage, advertising and printing, audio visual, soft cost contingency, legal fees, evidence room security and audit, moving expenses, and bond issuance fees and commission fees; and
WHEREAS, the estimated base project cost of $4,196,852 is slightly below the $4.2 million budget; and
WHEREAS, the Council has approved the three bid alternates listed below and their funding sources.
Alternate 1 - Additional offices for future growth in building inspections
Cost: $47,484
Alternate 2 - Storage cubbies for officer duty bags
Cost: $40,795
Alternate 3 - Expansion of high-density storage in evidence room
Cost: $36,229
WHEREAS, the estimated project cost including all bid alternates is $4,321,360 and sufficient funds for the base project plus bid alternates are available.
NOW THEREFORE, BE IT RESOLVED that the bids, quotes and recommend alternates for the City Hall and Police Department improvements for $4,321,360 is approved.
BE IT FURTHER RESOLVED that the overall project cost of $4,321,360 will be financed utilizing General Obligation Tax Exempt Bonds
PASSED by the City Council of the City of Blaine this 15th day of March, 2021.