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HomeMy WebLinkAboutItem 10February 21, 2012 Item No. RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND SETTING BID DATE FOR RENOVATION OF THE FORMER POLICE STATION INTO THE HERITAGE CENTER Proposed Action Staff recommends adoption of the following motion: Move to approve resolution approving plans and specifications and setting bid date for renovation of the former Police Station into the Heritage Center. Overview On August 1, 2011, the City Council authorized moving forward with the renovation of the former Police Station into the Heritage Center. Subsequently, Wold Architects and Contegrity Group were hired to develop detailed plans and specifications. Staff has spent several months working with the groups involved with the project. A complete site plan, building floor plan, project budget and financing proposal was presented at the January 23, 2012 City Council Work Session. As a result of these efforts, staff is now requesting the City Council to consider approving plans and specifications and setting a March 20 bid opening date. An April 2 bid award date for the Heritage Center project is anticipated. Staff and consultants are confident that efforts to date will produce a well - planned public facility and will do so within the budgetary guidelines established by City Council. Fundraising efforts are continuing for this project, and currently approximately $74,000 has been raised. Prior to bid award, the Council will be apprised of the status of funding efforts and in -kind donations. Primary Issues to Consider • The project is anticipated to be awarded April 2nd and completed in September 2012 Supportinq Information • Resolution approving plans and specifications and setting bid date for r novation th form Police Station into Heritage Center • J nuary 23, 01 Wo Session packet Gerald S. Michaud Parks & Recreation Director Financial Impact: $1,120,000 Budgeted: Y/N Y Source: Various Related Documents (CIP, ERP, etc.): CIP and Capital Projects Fund Notes: CITY OF LAKEVILLE RESOLUTION NO. RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND SETTING BID DATE FOR RENOVATION OF THE FORMER POLICE STATION INTO HERITAGE CENTER WHEREAS, on September 19, 2011 City Council approved agreement with Wold Architects and Engineers for the architectural and engineering design services for the Heritage Center; and WHEREAS, on October 3, 2011 City Council approved agreement with Contegrity Group, Inc. for construction management services for the Heritage Center; and WHEREAS, Wold Architects and Engineers has prepared plans and specifications for the renovation of the former Police Station into the Heritage Center; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lakeville, Minnesota that the plans and specifications for the renovation of the former Police Station into Heritage Center, City Improvement Project 12 -09, are hereby approved by the City Council of the City of Lakeville, Minnesota. BE IT FURTHER RESOLVED, that bids will be advertised as required and opened at 2:00 PM on Tuesday, March 20, 2012 at Lakeville City Hall, 20195 Holyoke Avenue, Lakeville, Minnesota. APPROVED AND ADOPTED this 21 day of February, 2012. CITY OF LAKEVILLE Mark Bellows, Mayor ATTEST: Charlene Friedges, City Clerk Lam ((e Memorandum To: Mayor & City Council From: Steve Michaud, Parks & Recreation Director Dennis Feller, Finance Director John Hennen, Park Maintenance & Operations Manager Steve Mielke, City Administrator Date: January 20, 2012 Re: Heritage Center Status Report: Design and Cost Estimates City of Lakeville Parks & Recreation In February, 2010 City Council authorized staff to explore the reuse of the former Police Station to accommodate space for the Lakeville Senior Center, Lakeville Area Historical Society and the Lakeville Yellow Ribbon organization. Several studies were completed, a public information campaign implemented, a project financing plan and a preliminary project schedule presented. On August 1, 2011, City Council approved a resolution authorizing the renovation of the former Police Station into a Senior Center /Historical Society facility and directed staff to proceed with the planning and construction. Since August, 2011 City Council authorized hiring Wold Architects and construction management firm, Contegrity Group to design and manage the project. A core planning team consisting of architect, construction manager, staff and representatives from the three user groups has been working closely together to refine the building and site plan, develop a revised budget cost estimate and prepare preliminary plans for City Council review. Representatives from Wold Architects and Contegrity Group (construction management firm) will be present at the January 23 work session to guide us through a PowerPoint presentation that includes site plan (EXHIBIT A), building floor plan (EXHIBIT B) and an updated construction budget estimate (EXHIBIT Q. John Hennen and representatives from each of the three tenants will also be present. In addition, a separate planning team was established to oversee fundraising activities. To date, approximately $69,000 has been raised towards the project goal of $337,750. Several fundraising activities and events are scheduled through 2013 (EXHIBIT D). Staff has also submitted applications for two major grants and is preparing to write and submit several others. In summary, momentum continues to grow as the project gets closer to becoming reality. Several businesses within the community have expressed interest in supporting the project and are now developing plans for additional fundraising activities. Staff will be presenting the plans and specifications to the City Council at the February 21 meeting and requesting the approval of the bid opening date. Prior to the February 21 meeting, staff is seeking City Council feedback regarding the project. If Council has any questions prior to the work session, please do not hesitate to contact me. Facility Features Site Layout Additional parking, bus and car access and circulation were a planning priority for the site. The site plan achieves these goals. Two new accesses will be added off Heritage Drive along with the elimination of the existing access from the southwest corner of the site. Approximately 58 additional parking stalls are proposed. Total site parking will be 112. An additional 25 parking spaces are available for future expansion. The current Senior Center site has approximately 24 parking spaces, which results in the attendees parking in the lots of adjoining property owners during special events. The site plan is shown on EXHIBIT A. Facility Layout Much discussion took place concerning the multi -use capabilities of the building plan. Each of the three tenants will have access to several multi - purpose rooms including conference rooms, kitchen, dining areas, game rooms and restrooms, while maintaining their own spaces for programming needs. Great efforts were taken to overcome the perception of walking into a Police Station. The Heritage Center will be fresh, open and inviting to all who enter the building. The "main street" open corridor surrounded by open lobbies and visible multi - purpose rooms will provide a pleasant perception of openness and provide a welcoming feeling. The improved west access will be primarily used by seniors and Historical Society visitors while the east access will provide handicapped accessibility directly adjacent to the dedicated Yellow Ribbon space. The banquet multi - purpose room will accommodate 176 people, while the "skylight" multi- purpose room will seat an additional 40 for a seating capacity of 216. The current Senior Center seats just under 100 people. In addition to the multi - purpose rooms, the center provides card rooms, a computer room, a library, a fitness area, an art room, a game room, restrooms with lockers, storage space, display rooms in the Historical Society wing and administrative offices for staff. Circulation throughout the building provides access to all active areas but also allows the facility to be locked down and segregated by use areas. The building floor plan is shown on EXHIBIT B. 2 Project Cost Based on the facility design developed by the architect and the core planning team, the construction manager has provided a detailed estimated budget. (EXHIBIT C) The project will be at or under the August 2011 budget estimate. A summary of the current January estimated cost compared to the August 2011 estimate is as follows. Estimated Project Costs Estimate General requirements Existing conditions Demolition Concrete Masonry Metals Woods and plastics Thermal & moisture protection Doors and windows Finishes Furnishings Special construction Fire suppression Plumbing Heating Ventilations and Air (mech. Electrical Communications Earthwork Exterior improvements Utilities Construction Manager fee Architect /engineer Furniture Kitchen equipment Technology Automated Temperature controls Miscellaneous Contingency 23 -Jan-12 1- Aug -11 77,368 70,000 15,553 12,000 15,900 12,826 8,700 9,184 22,000 5,000 3,000 121,894 34,395 136,064 11,000 6,000 34,978 15,500 64,500 84,500 600 43,636 121,975 13,581 39,900 60,750 29,785 20,100 12,000 20,000 42,245 83,666 $ 1,120,000 8,600 130,000 38,300 75,200 30,000 17,500 55,500 87,000 50,000 200,000 45,000 77,500 50,000 26,000 25,800 75,000 $ 1,120,000 The estimated cost may be reduced based on the ongoing effort to receive donations and in -kind contributions from volunteers. Project management and cost control remain a priority for the project. As such, bid alternates will be sought for a number of items including, but not limited to landscaping, concrete (sidewalks) and fireplace. All of the bid alternates are included in the 3 January 23 cost estimate. Should the bids exceed budget, the bid alternates will be removed from the project. A number of the bid packages such as painting will take into consideration the potential cost reduction as a result of using volunteers. In future years, as funding becomes available, the existing irrigation system will be modified and utilized and additional furnishings (such as display cabinets) will be acquired. The HVAC system and skylights have been inspected and deemed adequate and functional. As they age in future years, they will need to be replaced. Financing The financing of the Heritage Center is provided from several sources including City non -tax revenues (Building and Park Dedication Fund), sale of the existing Senior Center, Lakeville Senior Organization, fundraising activities as well as CDBG grant funds. The volunteer effort by seniors, local businesses and residents has been outstanding and in the end will be responsible for savings of several thousands of dollars, contributing to the feasibility of this project. The following is a summary of construction financing sources: Construction Financing Estimate Financial Sources City of Lakeville Building Fund Park Dedication Fund Sale of Senior Center Market value Grant funds - refunded CDBG grant funds Lakeville Senior Organization Fundraising activities Total construction financing January 23, 2012 August 1, 2011 377,000 150.000 345,000 (189,750) 377,000 527,000 150,000 155,250 100,000 337,750 $ 1,120,000 527,000 345,000 (189,750) 155,250 249,750 100,000 88,000 $ 1,120,000 The CDBG grant funds are not likely to be a viable revenue source. At least 51 % of the facility users must meet the low and moderate income qualification test. Based on the results of the voluntary senior center membership survey as well as the potential user composition of the Historical Society and Yellow Ribbon group, it will be very difficult to meet the low and moderate income qualification test. CDBG funding requires compliance with the Davis Bacon Act with respect to ensuring all contractors are meeting or exceeding the prevailing wage rates for workers. The increased cost of program compliance reduces the benefits of this funding source. With the elimination of CDBG grant fund, the reliance on fundraising activities will be increased and extended over a period of years. The staff is recommending that Park Dedication Fund 4 provide the interim financing (to offset the loss of CDBG grant funds) for an extended period of time until the fundraising is completed. A comprehensive list of ongoing events is attached as EXHIBIT D. Interim Financing The net proceeds from the sale of the existing Senior Center were also anticipated to be available to finance the Heritage Center. However, the City has not received a definitive purchase offer for the facility. The issue therefore becomes whether the City Council wishes to also provide interim financing from the Park Dedication Fund until the facility is sold. The Park Dedication Fund will provide $150,000 of financing for the project as well as the interim financing until fundraising goals are met. If the Council wishes to also provide the interim financing until the existing Senior Center is sold, the fund balance for the Park Dedication Fund would be approximately $146,129 in December 2012. A summary of proposed changes to the Park Dedication Fund budget to accommodate the interim financing is as follows. The Park Dedication fund would be replenished as funds become available. Park Dedication Fund 2012 Budget 5 Adopted Adjust Revised Revenues Park Development Fees 296,045 296,045 Valley Park antenna 18,500 18,500 Other 50,000 50,000 Interest on investment 5,259 - 5,259 Total Revenues $ 369,804 $ - $ 369,804 Expenditures General items $ 50,000 50,000 Developers Credit 50,000 50,000 Kenrick: 205th to CSAH 60 (net of 460,000 grants) 460,000 Disc Golf Course 10,000 10,000 Heritage Center - fund raising - CDBG grants 249,750 249,750 Sale of Senior Center 155,250 155,250 Total Expenditures 570,000 405,000 975,000 Net Increase /(Decrease) (200,196) (405,000) (605,196) Fund Balance, Jan 1 751,325 - 751,325 Fund Balance, Dec 31 $ 551,129 $ (405,000 $ 146,129 5 The increased operating costs for the Heritage Center compared to the current Senior Center and Historical Society building will be financed with non -tax revenues as shown in EXHIBIT E. Subsequent Actions Assuming the City Council concurs with concept plans as presented at the January 23 work session, the plans and specifications will be prepared and submitted to Council for approval. The following is the anticipated schedule for project completion. Council approval of plans and specifications and set bid date February 21 Bid opening March 13 Special Council meeting to award contracts March 26 Anticipated project completion Sale of Senior Center Exhibits A. Proposed site plan B. Facility floor plan C. Project cost estimate D. Fundraising /event schedule E. Estimated operational costs and financing F. Description of revenue sources to finance operations September 1 .m lw N C\j Q Oo 0 Ca EXHIBIT A z o E E 0 d 3 Y V 9 N 0 N 0 6 pi fit __,6 6 6 A 6 6 Q) Z - U U') to Ln W Lu LU LL) LZLJ 6; of w L Q I (� I 6 _ +� w z 6 e i All 3AM �VMIGW 2 LU I > z W LU C) LU ,q o < >- rr WoL EXHIBIT B CITY OF LAKEVILLE HERITAGE CENTER January 23, 2012 Comm No: 112148 EXHIBIT C LAKEVILLE HERITAGE CENTER JANUARY 20, 2012 SCHEMATIC DESIGN ESTIMATE Construction Management Services DESCRIPTION OF WORK Division Total Cost /SF 17,489 Division 0 & 1 - General Requirements 77,368.00 4.42 Division 2 - Existing Conditions 15,553.28 0.89 Division 3 - Concrete 12,826.00 0.73 Division 4 - Masonry 9,184.00 0.53 Division 5 - Metals 5,000.00 0.29 Division 6 - Woods & Plastics 3,000.00 0.17 Division 7 - Thermal & Moisture Protection 121,894.05 6.97 Division 8 - Doors & Windows 34,395.00 1.97 Division 9 - Finishes 136,064.20 7.78 Division 10 - Specialties 0.00 0.00 Division 11 - Equipment 0.00 0.00 Division 12 - Furnishings 11,000.00 0.63 Division 13 - Special Construction 6,000.00 0.34 Division 14 - Conveying System 0.00 0.00 Division 21 - Fire Suppression 34,978.00 2.00 Division 22 - Plumbing 15,500.00 0.89 Division 23 - Heating, Ventilating & Air Conditioning 64,500.00 3.69 Division 26 - Electrical 84,500.00 4.83 Division 27 - Communication 600.00 0.03 Division 28 - Electronic Safety and Security 0.00 0.00 Division 31 - Earthwork 43,636.00 2.50 Division 32 - Exterior Improvements 121,975.00 6.97 Division 33 - Utilities 13 580.50 0.78 Sub Total Construction 811,554.03 46.40 CM Fee 39,900.00 Architect /Engineering Fee 60,750.00 Total Construction Cost 912,204.03 52.16 Owner Items Furniture 29,785.00 Kitchen Equipment 20,100.00 Technology Needs 12,000.00 Topo /Site Survey 4,445.00 Automated Temperature Controls 20,000.00 Block Infill Material 1,200.00 Demo Work as of 1 -13 -12 1,000.00 Electrical Disconnection for Demo Work 2,500.00 Palm Trading Company 500.00 Builders Risk Insurance 3,500.00 Misc Safety /Demo Supplies 1,500.00 MCES SAC Unit Charges($2,230 /Unit) 10,000.00 Testing /Adjusting /Balancing 5,000.00 Expenses w /Sale of Senior Center 2,600.00 Existing Historical Building Site Restoration 10,000.00 Contingency 83,665.97 Total Project Estimated Cost 1,120,000.00 4b. CONTEGRITY GROUP I N C O R P O R A T E D Prepared by Contegrity Group, Inc. EXHIBIT D W l Z W W 0 C� w w Q w G1; w o o U m x O U a) > > U L O Qe � > a) Y S 2 N N Y J C C 'a U U Q p C p C - a O o @ ° (o F L a) V) a) p (1) U a) U) -0 ai o E .� c ° 0 n Ls > W _0 -0 7 U) o co a C'. L o o Y J E O L 0 0 z o 7 m L O > (o U C F, r- C U Q L U Q C) o o `� ° � ° Q U Y m W - 'O O .� U E E .D ..0 W U 0 — 3 L O Q O a - 0 — 3 Q `�- `� o cn ° p -° N - p - O C ? ' 'O C, _o 70 a a) _o 'O co Z o > � c� a) Q) a) 0) c a) c a) a) o a) Z > d m Z Z J > Z Z Z W Z U a) co W cn Z) m C J � 07 G) 07 -OO E (n d C -2 CO C p I m C O U) (n U) (n W m a � o cu � > - a ° > > > > 0 0 (DI c6 c6 a) L L O C Cn J a3 W m c6 d. 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Q U - O @ - O O Cn W a E co L 7 L C U o - p (o L O c O W C a) (� U) a) C O RS '— O Co N O C co . 3 >� > C �_ . >_ O a� L a) 3 CO E o" c n3 c L c= p m p Q H Z U ..Q A~ J_ p L p ,� U c O L U= (n U (n L �_ E ' co O_ 7 -° O>, _ C n3 Q O N Z Q W (o ( ) co ° 0) C O) C d -0 d Q> d W > CL O U L '� — � 0 p 0 cn C O O) U 'C .� L .� L O > 4) a) C O U co T co c a) U p Q E O 7 n E O Z C O O z Q � c°a m� o_ o_ 0 0 0 0 0 o a a oL o .> Y a) CL) o> o ID o 2) C C c O �; m J E O X co Q (o c O c p 0 0 � Y . 2 N w c W U� (n(n(ndd0 nd W (n U (nU Cn0 0a - 2mm W U��0 c) L> QJZ CO f-- CO M O : N M 'ct Lo (O N 00 Cn O N M ":J in CO I- M M O r N co � in I — N N N N N N N N N N co c`') co CJ c'7 c`') EXHIBIT E Estimated operational costs and financing From project inception, it has been assumed that any increased operational costs incurred for this project would be paid for by new or additional non -tax revenue sources. The new Heritage Center will cost approximately $22,296 more than if the existing facilities were operated as status quo. There are no changes in the estimated operating costs since August 1, 2011. The following schedule summarizes the increased cost of the proposed facility compared to the status quo. Heritage Center Operating Costs Revenues to support the increased operating costs will be derived from a number of sources including, but not limited to, increased membership fees, fundraising and facility rental opportunities. The potential for new and increased revenues exceeds projected operating costs. There have been no changes in anticipated revenue sources for financing operations since August 1, 2011. The following is a summary of potential revenue sources. Heritage Center Operations Financing Senior membership fees $14,000418,000 Yellow Ribbon $2,500 - $2,500 Historical Society $2,500 - $2,500 Facility rental $500 - $1,000 Fundraising $2,000 - $4,000 Total $21,500428,000 A comprehensive discussion of revenue sources is shown on EXHIBIT F. If the City is unable to sell the existing Senior Center, operating costs would increase by approximately $8,500 per year. Total Status Quo Existing Senior Center $ 186,136 Existing Historical Society 7,090 "Former" Police Station 14,794 Total $ 208,020 Proposed facility $ 230,316 Increased operating costs $ 22,296 Revenues to support the increased operating costs will be derived from a number of sources including, but not limited to, increased membership fees, fundraising and facility rental opportunities. The potential for new and increased revenues exceeds projected operating costs. There have been no changes in anticipated revenue sources for financing operations since August 1, 2011. The following is a summary of potential revenue sources. Heritage Center Operations Financing Senior membership fees $14,000418,000 Yellow Ribbon $2,500 - $2,500 Historical Society $2,500 - $2,500 Facility rental $500 - $1,000 Fundraising $2,000 - $4,000 Total $21,500428,000 A comprehensive discussion of revenue sources is shown on EXHIBIT F. If the City is unable to sell the existing Senior Center, operating costs would increase by approximately $8,500 per year. Description of revenue sources to finance operations Revenues to support the increased operating costs will be derived from a number of sources including, but not limited to, increased membership fees, fundraising and facility rental opportunities. The following is an overview of potential revenue sources. ❖ Membership Dues Proposal In recent years, the Senior Center has averaged about 1,000 members annually. Of the 1,000 members, approximately 60% are Lakeville residents and 40% are non - residents. In addition, approximately 40% of the resident members are couples. A map illustrating current Senior Center membership in Lakeville is attached as Exhibit B. City staff is recommending the following senior dues structure: Membership fee Current Proposed Resident single member: $9 $18 Resident couple $15 $34 Non - resident $15 $30 Staff believes it is reasonable to assume $14,000- $18,000 of new member revenue based on the proposed fee structure and conservative estimates of membership renewals. ❖ Annual Fundraising Activities Historical Society: The Historical Society has committed to providing $2,500 annually towards building operational expenses. Yellow Ribbon Organization: This organization has committed to providing $2,500 annually towards building operational expenses. Total annual fundraising to be applied to building operations: $5,000 •'• Senior Center Annually, the Senior Center conducts 6 -8 fundraising events. The fundraising activities generate approximately $8,000- $10,000, of which $2,000 - $4,000 is appropriated to this project. Senior Center revenue from fundraising activities have been used to pay for producing the senior newsletter, postage to mail the newsletter, cost associated with special events, operational cost for fundraising activities and writing down the cost of major annual events. Facility Rental Revenue Proposal Upon completion of the facility renovation, staff is proposing the renovated facility be made available to accommodate private use events similar to the Lakeville Area Arts Center. We anticipate that private rentals would grow over time, but are estimating a conservative amount ($500 - $1,000 per year) the first few years of the facility being open. The potential for new and increased revenues exceeds projected operating costs. Heritage Center Operations Financing Senior membership fees Yellow Ribbon Historical Society Facility rental Fundraising $14,000418,000 $2,500 - $2,500 $2,500 - $2,500 $500 - $1,000 $2,000 - $4,000 Total $21,500- $28,000