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HomeMy WebLinkAboutVIII-05 - Authorize Police Department Buidling Project City Council Memorandum To: Mayor Fasbender & City Councilmembers From: Melanie Lammers, Finance Manager and Kurt Stoudt, Facility Manager Date: March 4, 2019 Item: Authorize budget amendment Council Action Requested: Council is asked to approve a budget amendment for a 2019 project that includes a new roof on the Police building and a new chiller that cools the Police building and City Hall. Background Information: During the 2019 budget process, a capital project was approved for a new Police building roof and a new chiller. The chiller cools not only the Police building but also City Hall. The chiller broke down in September of 2018 and at over 30 years old it is more beneficial to replace the chiller than fix it. The roof over the Police station has problems with leaking during rain events and multiple fixes over time are not lasting. While both of these projects are approved in our Capital Plan for 2019 and in the budget, both need an adjustment to the budget which requires council approval. Staff received two bids for the replacement of the Police Building roof. Berwald Roofing & Sheet Metal bid $149,463 and McPhillips Bros. Roofing Co. bid $147,600. Staff would like to enter into an agreement with McPhillips Bros. Roofing Company for a four ply asphalt and gravel built up roof system. The new roof will have a 15 to 20 year lifespan. Our current budget for the Police Department roof is $125,000. Staff requests a budget amendment in the amount of $22,600 from the budget stabilization fund to fully fund the roof replacement. The City would like to enter into an agreement with Trane for the chiller in the amount of $138,838. Trane is the preferred priced vendor through a cooperative purchasing agreement with US Communities. We currently have $125,000 budgeted for a chiller. We anticipated $25,000 in grant money from the State Historical Society and have since learned because the chiller is located on the Police building we are not eligible for historical grants. We are requesting a budget amendment to remove $25,000 in anticipated grant fund revenue, and transfer an additional $13,838 from our budget stabilization fund. Note, we have been saving over several years for anticipated improvements to be made to City Hall in our budget stabilization fund. VIII-05 Financial Impact: An additional $36,438 will be spent from our Budget Stabilization reserves for City Hall campus improvements. Advisory Commission Discussion: None. Council Committee Discussion: None. Attachments: VIII-05