ITEM 6.2 Funding for Prairie Center Project. 10 Request for
Ots""e�-o City Council Action
A
DEPARTMENT INFORMATION
ORIGINATING DEPARTMENT' REQUESTOR, MEETING DATE:
Administration Lori Johnson, City Administrator July 8, 2013
PRE SENTER (s), REVIEWED BY' ITEM ft:
Lori Johnson, City Administrator 6.2
AGENDA ITEM DETAILS
RECOMMENDATION:
Recommend review of funding options for the Prairie Center Project for the cost that exceeds the
previously approved budget of $326,000 and designating an additional funding source(s) based on the
Council -'s approval of the project at a cost of $450,000 plus furniture, fixtures, and equipment (FF & Q.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?
No I No
BACKGROUND/JUSTIFICATION:
The Prairie Center Reuse Committee has been meeting since December, 2012, to review the current and
proposed uses at Prairie Center and to define a space/building design based on those uses. In
anticipation of this project, the 2013 Capital Improvement Plan (CIP) included funding of $326,000 for
the Prairie Center project.
At the June 26., 2013, City Council meeting the proposed design and estimated project budget were
presented. According to Grady Kinghorn of Kinghorn Company, based on the Committee's proposed
design which the Council approved with very minor changes, the construction cost is approximately
$389,000. As I stated at that meeting, the addition of a construction contingency, permits and fees, and
additional architectural fees bring the project cost to approximately $450,000 excluding costs for
furniture, fixtures, and equipment (FF & E). The Council unanimously approved moving forward with the
project based on the $450,000 plus FF & E cost estimate.
A brief discussion of funding sources took place at the June 26 meeting after which the Council directed
me to return with funding options on July 8 for the project assuming a $450,000 plus FF & E budget. As I
stated at the June 26 meeting, the 2013 CIP budget for the project is $326,,000; of that $7,000 is
payment from an insurance claim for roof damage, $75,,000 is planned to come from the Community
Facilities Fund to replace the approximately 20 year old heating and air conditioning systems that are at
the end of their useful lives and to fix the related existing design issues that cause water damage, and
the remaining $244,000 is planned to come from the Revolving Capital Improvement Fund. This leaves a
funding gap of $124,000 plus the cost of furniture and equipment items which has not yet been
estimated.
Furthe�as|stated onthe '6'»,other sources offunding are available ifCouncil wants tofund this
project as propoaed. Funds are available in both the Community Facilities and Revolving Capital
Improvement funds; although, funding another $124,,000 plus FF & E from those funds will require a
shifting ofpriorities, changing the scope ofone ormore projects oradTust|ngproject timing. Aoa|wmys,
there |salimited amount ofmoney available; therefore, |t/scritical that projects andQoa|sare
prioritized ensuring that available funds are spent on the Council's highest priorities. Bythe action on
June 26,the Council has determined that completing this project ayreoommendedbytheConlDl(tteeiS
a high priority.
Below isasummary of each ofthe funds from which this projectbbudgeted:
Community Facilities Fund: AsofJanuary I,3OI3,this fund had afund balance of $748,000.
This fund has noongoing revenue source. Ofthe fund balance $3S5,00Owas approved 1n2O13
for the soccer field complex with $100,000 to be reimbursed by TRSA over the next eightyears.
That leaves acash balance of$3g3,OOOavailable /nZO13. After deducting the $75,OOO
budgeted for Prairie Center, the cash balance available is $318.,000 and $328.,000 after the
$20,,000 TRSA reimbursement due in 2013 is received. The CIP budgeted $480,700 for
DarhenvvaldLand|ng and $44,OOOfor moving the sledding hill |nZO14. The sledding hill project
will be deleted based on the recommendation to keep the hill at its existing location. The 2013
OPpr 'eotedacashshortfaUof$lOB,7OOaftertheTRSAre|mburaementispaid(nfuU|n2O21-
that shortfall |sreduced toto$65,7OOafter deleting the sledding hill project. Per the ZOl8C|P,a
portion ofthe Oarkenea|dLanding project vvou|dneedtobefundede|sevvhenoun|esathescope
ofthe project vvaareduced. Additionally, other interim funding will need tobeidentified and
committed tothe DarkenvvaldLanding project lf1t1snotde|ayeduntUthe$lOO,O8Osoocer
complex reimbursement |sreceived.
Revolving Capital Improvement Fund: As of January 1, 2013., this fund had a fund bGbDCe of
$727,000 and acash balance of$3S4OOO. The main revenue sources for this fund are special
assessments and transfers from the General Fund, the estimated annual total of which ranges
from $99,OOOupto$146OOOfor the five year period from ZOl3toZU17. The 2023C|P
budgeted expenditures included $24,,000 for campus signage, $244,000 for Prairie Center., and
$13,500 for park signage. Special assessment revenue of$98,OOOisdue |n2O13resulting /na
projected 2013 year end cash balance of $168,500; if the demolition of old City Hall is
comp|eted,that balance decreases to$138,OOO This excludes any transfer from the General
Fund because the amount of that transfer, if a transfer will even be made, will not be known
until the end ofthe year. The ZDl3C|Pstates that the Revolving Capital Improvement Fund
balance hits alow point of$174,OOOin2O14and climbs to$458,OOOatthe end of2O17.
Based onthe assumptions above and the 2013 adopted CIP, funding is available |nthe Revolving Capital
improvement Fund for the $124,000 and FF & E costs of the Prairie Center project in 2013. Funding is
available |Dthe Community Facilities Fund only |fthe Darkenwa|dLanding project |Sde[8yed/[edUcediD
scope, orfunded through other sources. |fthe balance nfthe Prairie Center project (ossumiDg $15,000
to $25,000 for FF & E) is funded by the Community Facilities Fund, approximately $186,000 to $196,000
would beavailable for the Darkenwa|dLanding project |nZO14wlth8DOth8r$8(\C0O0Vertl0efora
total ofapproximately $218,OOO to $226,00,0.
SUPPORTING DOCUMENTS: X ATTACHED Ej NO
• Preliminary Cost Estimate from Kinghorn Company
• CIP Excerpts
POSSIBLE MOTION
--- r I
Please word motion as you would like it to appear in the minutes.
BUDGET INFORMATION
FUNDING- I BUDGETED: u YES
D NO
ACTION TAKEN
APPROVED AS REQUESTED DENIED ❑ TABLED n OTHER (List changes)
COMMENTS:
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Som-ce 2013 2014 2015 2016 2017
208 Community Facilities Fund
Begimmig Balance 735,000 335,000 (179,700) (169,700) (159j700)
Revemics and Other Fujid Som-ces
Revemie
T ContfibutIon 20,000 10,000 10,000 10,000 101000
Nige 6 Afonclay, July 01, 2013
Total
20,000
10,000
10,000
10,000
10,000
Total Reveimes mull Othet- Fetid Som-ces
20,000
10,000
10,000
10,000
10,OOD
Total Fujids Available
7551000
345P000
(1693700)
(1592700)
(149,700)
Eximi(fituves and Uses
Capital Pwjecls & Equipmew
City Facilities
Prairie Center Remodeling
FAC -12-002
(75,000)
0
0
0
0
Total
(75,000)
0
0
0
0
Parks & Recreation
Darkenwald Landing
P&R-DL12-033
0
(480,700)
0
0
0
prairie Park Soccer Fields & Parking Lots
P&R-PP12-054
(345,000)
0
0
0
0
Praide Park Sledding Hill
P&R-PP 13-001
0
(44,000)
0
0
0
Total
(345,000)
(524,700)
0
0
0
Total Expen(fiftwes an(Il Uses
(420,000)
(524,700)
0
0
0
Chmige in. Mimi Balmice
(400,000)
(514,700)
10,000
10,000
10,000
Eiidhig hmice
335,000
(179,700)
(169,700)
(159,700)
(149,700)
Nige 6 Afonclay, July 01, 2013
Source
2013
2014
2015
2016
2017
414 Revolving Capital Inipi-v
B eg i n ii i ii g Balance
615;000
254,175
174,175
279,175
343;175
Reveiittes aiid Offer Ftiiid Sout-ces
Revetilie
Sale of McDonald Property
13,500
0
0
0
0
Total
13,500
0
0
0
0
Other Flund Soiaes
Special Assessments
96,000
57,000
55,000
49,000
65,000
Transfer from General Fund
50,000
50,000
50,000
50J000
50,000
Total
146,000
107,000
105,000
99,000
115,000
Total Reveiiiies aiid Othei- Ftiiid Sotirces
159,500
107,000
105,000
99,000
115,000
Total Fmids Available
774,500
301, 75
279J75
375,175
458,175
Expeiidityi-es awl Use
Cap 1 ta I Noje c ts & Eq ti ipiii e i? t
AdniWstragon
City Entrance Signs (3)
ADM -12-001
0
(60,000)
0
0
0
Q� Campus Signs
ADNI-13-901
(24oOOO)
0
0
0
0
Total
(24o000)
(60,000)
0
0
0
City FacIlIfies
Prairie Center Reniodellng
FAC -1 2-002
(244;000)
0
0
0
0
Demolition of Old Town Hall
FAC -1 2-009
(30;000)
0
0
0
0
Total
(274,000)
0
0
0
0
Finance
2004 G. 0.Improvement Bond (Quaday)
FIN -13-001
(2080825)
0
0
0
0
Total
(208,825)
0
0
0
0
Parks & Recrealon
Waterfront East Park
P&R-12-047
0
0
0
(35,000)
0
Park Signage
P&R-13-001
(131500)
0
0
0
0
Total
(13,500)
0
0
(35,000)
0
PublIc Safe
Erna rgency Sirens (2)
PS -12-001
0
(27,000)
0
0
0
Total
0
(27,000)
0
0
0
Public Works
Highway 1011144 Project Coritflbution
PW-ST1 3-001
0
(100,000)
0
0
0
Total
0
(100,000)
0
0
0
Total Exl)etidittwes azi(I Uses
(520,325)
(187,000)
0
(35,000)
0
Page 13 AIonday, July 01, 2013
Source
414 Revolving Capital Impry
Change in Ftmd Balance
Endhig Balance
vi I.M4 2015 2016 2017
(360,825) (80,000) 105,000 64,000 115,000
2543175 174j175 279,175 343,175 458175
S0111-ce 2013 2014 2015 2016 2017
Other Local Sources
Begiiiiiing Balance 0 0 0 0 0
Revel es amd Othei- Rigid Soiu-ces
Reve?ute
Insurance Reimbursements 7j 000 0 0 0 0
Tolal
7,000
0
0
0
0
Total Revetwes niid Othei- Ftuid Both-ces
7,000
0
0
0
0
Total Funds Available
7,000
0
0
0
0
Expendittwes and Uses
Capital Pi-ojects & Equiptnetit
City Faciffie-s
Pralie Center Remodeling FAC -1 2-002
(7,000)
0
0
0
0
Total
(7,000)
0
0
0
0
Toftwl Expewlitui-es and Uses
(7,000)
0
0
0
0
Chaiige hi Fuiid Babitice
0
0
0
0
0
E nding Balance
0
0
0
0
0
Pzige 2 1 Monday, July 01, 2013