Title
Amended FY11 - FY15 Capital Improvement Plan (B)
This item relates to amending the FY11 - FY15 Capital Improvement Plan.
Explanation
During the initial year of each two-year budget process the City Commission adopts a Five Year Capital Improvement Plan. The FY11 - FY15 Capital Improvement Plan was adopted by the Commission during the FY11& FY12 budget hearings last summer.
During the April 21, 2011 meeting the City Commission directed staff to amend the FY11 - FY15 Capital Improvement Plan by:
----Moving the Main Street Streetscape Project form FY15 to FY11/FY12. The change in the scheduling of the project would be funded through cost savings recognized on completed roadway construction and reconstruction projects, and
----Adding the NE 2nd Street project in FY15. This project would be funded from the FY15 monies originally identified in FY15 for the Main Street Streetscape project.
The Commission also asked staff to explore the possibility of accelerating the design portion of the NE 2nd Street Project to FY11/FY12. Interest earnings and unappropriated bond proceeds from the Series 2002 FFGFC Bond Fund and Series 2009 Capital Improvement Revenue Notes are potential sources of funds to accommodate the advanced timing of this project if so directed by the City Commission.
Staff is requesting that an adjustment to the GPD Headquarters Campus Project be considered as we amend the FY11 - FY15 Capital Improvement Plan. The original scope of the project project consisted of several parts:
----Land acquisition,
----Construction of a new Headquarters Annex Building,
----Renovation of the existing Administration Building (721 Building),
----Construction of a Community Meeting Facility, and
----Refurbishment of an acquired concrete block building for a Firearms Training Facility.
Due to budgetary constraints, the project scope has been scaled down, and construction of the Community Meeting Facility is no longer being considered. To date, the property has been acquired, the new Headquarters Annex building has been constructed and interior demolition of the 721 Building is mostly completed.
The original plans for the renovation of the 721 Building envisioned a moderate renovation project which would require painting, new carpets, some remodeling and a limited degree of structural repair to the building. The budget for this phase of the project was originally established at approximately $3.5 million. However, as interior demolition progressed, it became clear that the building, which was constructed in 1952 and expanded in 1961, 1972, and 1983, had structural defects which were much more severe than originally contemplated. Revised estimates indicate that the costs of the project will substantially exceed the original project budget.
Staff has developed three different options for completing the project.
----Option 1 proposes renovating approximately 28,000 square feet of the 721 Building and adding just over 12,000 square feet of new construction to the building. This option also includes a Physical Training Facility of just under 9,000 square feet to be developed in the concrete block building acquired as part of the project located just south and east of the newly constructed Headquarters Annex. This option would provide a total of 49,247 square feet with a total cost of approximately $9.54 million.
----Option 2 also proposes renovating 28,000 square feet of the 721 Building and adding 12,000 square feet of new construction to the building. The difference from Option 1 is instead of the proposed Physical Training Facility, this option suggests construction of a substation facility in southwest Gainesville of approximately 6,220 square feet. This option would provide a total of 46,528 square feet with a cost of approximately $9.74 million.
----Option 3 proposes demolishing the entire existing 721 Building and replacing it with new construction of just over 40,000 square feet. A physical fitness training area would be contained within this structure. This option would provide a total of 40,305 square feet with a cost of approximately $9.94 million.
The previous square footage of the 721 Building was 56,396 square feet. As you can see, all three options will provide less square footage than currently exists with the 721 Building. All three options suggest additional space needs for future GPD expansion within the next decade.
Staff is recommending Option 1 which, taking into account monies already reserved within the General Fund fund balance for the project, will require an additional $5.5 million more in funding than is currently appropriated. Potential funding sources to provide the incremental $5.5 million are:
----$4 million dollars from a proposed 2013 bond issue. The debt service on this issue would be funded through extending the GPD vacancy rate.
----$1.5 million from the fund balance of the Federal Law Enforcement Contraband Forfeiture Fund.
Fiscal Note
If the City Commission accepts the proposed amendments to the FY11 - FY15 CIP, the projected additional costs will be $5.5 million, to be funded as noted above.
Recommendation
The City Commission approve amendments to the FY11 - FY15 CIP to include: 1) moving the Main Street Streetscaping project from FY15 to FY11/12, 2) adding the NE 2nd Street project in FY15, and 3) adding an additional $5.5 million to the GPD 721 Building project under staff Option 1, approving a $4 million FY13 bond issue to provide a portion of the funding needed for the project, and utilizing $1.5 million dollars from the Federal Law Enforcement Contraband Forfeiture Fund to fund the balance of the additional cost.
Alternative Recommendation
The City Commission approve amendments to the FY11 - FY15 CIP to include: 1) moving the Main Street Streetscaping project from FY15 to FY11/12, 2) adding the NE 2nd Street project in FY15, 3) accelerating the design portion of the NE 2nd Street Project to FY11/FY12, utilizing interest earnings and unappropriated proceeds from the Series 2002 FFGFC Bond Fund to fund the design study, and 4) adding an additional $5.5 million to the GPD 721 Building project under staff Option 1, approving a $4 million FY13 bond issue to provide a portion of the funding needed for the project, and utilizing $1.5 million from the Federal Law Enforcement Contraband Forfeiture Fund to fund the balance of the additional cost.