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Home My WebLink About4.05 Maint Facility Yard Fundsti~~ \ \~/e: SUBJECT: Appropriation of Funds for Maintenance Yard Facility Improvements (Project 93571) Report Prepared by Herma Lichtenstein, Parks & Facilities Development Manager ATTACHMENTS: 1) Resolution Amending the Adopted 2008-2013 Five Year Capital Improvement Program to Add a New Project - Maintenance Yard Facility Improvements Project 93571 2) Budget Change Form RECOMMENDATION: 1) Adopt the Resolution Amending the Adopted Five Year Capital Improvement Program 2008-2013 to add a new Project - "~~ Maintenance Yard Facility Improvements Project 93571; and (r/ _ 2) Approve budget change form for the estimated Fiscal Year 2008/2009 project expenditures. FINANCIAL STATEMENT: The total cost of the project is estimated to be $844,625. Fiscal Year 2008/2009 estimated expenditures of $94,000 will be funded from a transfer of $28,000 from the Maintenance Yard Acquisition Project (95370) and $66,000 from unappropriated reserves. The Fiscal Year 2009/10 expenses are projected to be $750,625 and that appropriation will be included as part of the Fiscal Year 2009/10 Update to the 2008-2013 Capital Improvement Program and the Fiscal Year 2009/10 Budget. DESCRIPTION: At its December 16, 2008 meeting, the City Council approved a Purchase and Sale Agreement for the property at 5777 Scarlett Court ("the 84 Lumber Property"). The purchase satisfied the City's needs for a Maintenance Yard Facility. The Property is approximately 2.61 acres and contains an approximately 18,020 square foot metal warehouse and two other structures totaling approximately 13,200 square feet. The Maintenance Yard Facility, along with an Emergency Operations Center, was identified as a future project in the Five Year Capital Improvement Plan (CIP) (2008-2013) that was adopted by the City Council in June 2008. Although the project was identified in the CIP at an estimated total cost of $16,500,000, including $6,000,000 for land and right of way and $10,000,000 for improvements, no funds were appropriated for Fiscal Year 2008/2009. The City of Dublin had designated $1.5 million in the General Fund Reserves for this project. On December 16, 2008, the City Council appropriated $3,925,000 for the Acquisition of a Maintenance Yard Facility (Project No. 93570). The appropriation was inclusive of the project specific reserve of $1.5 COPY TO: CITY CLERK File # ^^'L ^3 a^-0~ AGENDA STATEMENT CITY COUNCIL MEETING DATE: April 21, 2009 Page 1 of 2 ITEM NO. T million. The property purchase CIP reflected only the acquisition of the Maintenance Facility site and building. The Purchase and Sale Agreement required that the City take the property "as is" and it was anticipated that upon acquisition of the property, Staff would need to prepare a separate Capital Improvement Project (Improvement Project) to address the cost of design and improvements necessary to make the facility functional for City use. At the time of acquisition, preliminary projections of these costs were $1,075,000. In order to move forward with a separate Capital Improvement Project it is necessary to include a new project, Maintenance Yard Facility Improvements, in the 2008-2013 Capital Improvement Program and to appropriate funds for this project. Following the acquisition of the 84 Lumber site, Staff solicited budget costs from contractors to perform the design and improvements for the project. The proposed improvements include removing and replacing all exterior metal cladding, including the roof, repairing minor structural issues, upgrading the electrical service, constructing enclosed and secure storage space, and installing a new fence enclosure around the perimeter of the site. These improvements will accommodate Maintenance staff, equipment and supplies. If it is determined that additional City Staff will be required to relocate to this facility at a future date, Staff will return to the City Council to consider additional funding for that project at that time. The total anticipated budget for the Maintenance Yard Facility Improvements CIP (Project No. 93571) is $844,625. The following table outlines the anticipated project expenditures and timing of expenditures by Fiscal Year: FY 2008/2009 FY 2009/2010 TOTAL PROJECT Staff Project Mgt $ 8,500 $ 1,625 $ 10,125 Bidding / Misc Printing, etc. 500 11,500 12,000 Ins ection None 7,500 7,500 Contract Design Services 60,000 20,000 80,000 Engineering /Testing None 15,000 15,000 Utility /Electrical & Filing Fees None 30,000 30,000 Contract Services -General 25,000 25,000 50,000 Improvements None 640,000 640,000 PROJECT TOTAL $ 94,000 $ 750,625 _ $ 844,625 At this time Staff is seeking City Council approval to appropriate $94,000 in the current Fiscal Year to Project 93571 Maintenance Yard Facility Improvements, which will allow for the beginning of the design process. It is expected that a construction agreement will be awarded after July 1, 2009, and that the improvements will be completed prior to the end of 2009. The Acquisition Project No. 93570 included an appropriation of $50,000 for escrow costs, special studies and other processing fees. The actual cost incurred for these items was approximately $22,000. Therefore $28,000 can be transferred from Project 93570 to the new project 93571. The balance of the Fiscal Year 2008/2009 appropriation of $66,000 will need to come from Unappropriated General Fund Reserves. The appropriation is also described in the Budget Change Form (Attachment 2). The Fiscal Year 2009/2010 costs will be incorporated by Staff in the Update to the Five Year Capital Improvement Program as a Fiscal Year 2009/2010 Budget appropriation. Since there is not currently a designated source to fund the improvements it is anticipated that the entire Fiscal Year 2009/2010 will .need to be funded from Unappropriated General Fund Reserves. RECOMMENDATION: Staff recommends that the City Council: 1) Adopt the Resolution Amending the Adopted Five Year Capital Improvement Program 2008-2013 to add a new Project - Maintenance Yard Facility Improvements Project 93571; and 2) Approve budget change form for the estimated Fiscal Year 2008/2009 project expenditures. Page 2 of 2 /~a RESOLUTION NO. -08 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN AMENDING THE ADOPTED 2008-2013 FIVE YEAR CAPITAL IMPROVEMENT PROGRAM TO ADD A NEW PROJECT - MAINTENANCE YARD FACILITY IMPROVEMENTS PROJECT 93571 WHEREAS, the adopted 2008-2013 Capital Improvement Program (CIP) identified the need for a Maintenance Yard Facility/Emergency Operations Center; and WHEREAS, on December 16, 2008 the City modified the project and established an appropriation for the acquisition of the industrial real property commonly known as 5777 Scarlett Court for the purpose of serving as the City's Maintenance Yard Facility; and WHEREAS, the property is currently developed with paved storage and parking areas, a metal warehouse building and two other structures that will accommodate the City's Maintenance Yard Facility. WHEREAS, the operation of the facility will involve outdoor storage, vehicle storage, maintenance and related administrative office use; and WHEREAS, the condition of the metal warehouse building will require renovation prior to facilitate its use as a City Maintenance Facility; and WHEREAS, it is appropriate to establish a separate project in the Five Year Capital Improvement Program to account for the improvement of the property acquired for a Maintenance Facility (Project No. 95370). NOW, THEREFORE, BE IT RESOLVED that the City Council of Dublin approves the addition of Project No. 95371 Maintenance Facility Improvements to the adopted 2008-2013 Five Year Capital Improvement Program as described in the Staff Report presented April 21, 2009. PASSED, APPROVED AND ADOPTED this 215` day of April, 2009. AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk ATTACHMENT 1 a,~d_ CITY OF DUBLIN BUDGET CHANGE FORM CHANGE FORM # New Appropriations (City Council Approval Required) _X Froin Unappropriated Reserves From Designated Reserves From New Revenues Budget Transfers: From Budgeted Contingent Reserve (1080-799.000) X_ Between Projects (City Council Approval Required) Other DECREASE BUDG-ET AMOUNT- INCREASE BUDGET AMOUNT ACCOUNT ACCOUNT Name: GENERAL FUND -Maintenance Name: GENERAL FUND -Maintenance Facility / EOC Acquisition Capital Project $2$,000 Facility Improvements Capital Project - $ 8,500 - Maintenance Facility Phase -Contract Staff Time Salary /Benefits Services -General Account#:001-93570-740-000 Account#:001-93571-701-001 Name: GENERAL FUND -Maintenance $ 500 Facility Improvements Capital Project - Services & Supplies -Printing Account #: 001-93571- 716-000 Name: GENERAL FUND -Maintenance Facility Improvements Capital Project - $ 25,000 Contract Services -General Account#:001-93571-740-000 Name: GENERAL FUND -Maintenance $ 60,000 Facility Improvements Capital Project - Professional Services -Design Account #: 001-93571- 741-000 Fin Mgr/ASD: ~,_,' ~:~`.~~~ ~~~ Signature f Date: '"~ 1a's~~~ REASON FOR BUDGET CHANGE ENTRY: On December 16, 2008 the City Council appropriated funds for the acquisition of a site that can be utilized as a Corporation Yard /Maintenance Facility. This Budget Change will establish an appropriation to begin the design process to improve the acquired site. Funding in the amount of $28,000 was available from the acquisition project, which was completed for less than the amount appropriated. There fore the acquisition project will be reduced to allocated the $28,000 to the improvement project. The balance is being funded from unappropriated general fund reserves. The appropriation for the construction of the improvements will be made with the CIP Update and Fiscal Year 2009/10 Budget appropriation as described in the Staff Report. City Manager: Date: Signature As Approved at the City Council Meeting on: Date: 4/21/2009 Mayor: Date: Signature Posted By: Date: Signature ATTACHMENT 2