Public Safety Facility
City Council Meeting
By Jorge Garcia, Assistant City Manager
May 2, 2023
Agenda •DBE Scoring
•Value Engineering
•Project Cost Savings Beyond Value
Engineering
•Alternative Options
•Timing/Next Steps
Design-Build Entity Scoring
Final
Rank Cost*
F&H/LDA 1 $44,796,000
Swinerton/Ten
Over 2 $52,778,566
*Includes Base Project Price, FFE,
and new Fire Apparatus cost
I.
Proposed Team Technical Design &
Construction Expertise
II.Proposed Design & Design Approach
III.Base Project Pricing
IV.
Project Pricing - Additive Enhancements
(Voluntary)
V.Draft Project Management Plan
VI.
Preliminary Baseline Design /
Construction Schedule
VII.Life -Cycle Costs over 30 Years
VIII.
Quality of Proposal / Presentation &
Questions
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Value Engineering
•Staff identified three areas that could result in
cost savings through the value engineering
process:
•Foundation
•Façade
•Electrical elements
Project Cost Savings Beyond Value Engineering
•The Police and Fire Stations right-size the building to current and future needs. •Proposal to serve 50-75 years
•The building systems have already been value engineered (electrical, mechanical, plumbing) •Cuts to square footage do not have a 1-1 relationship to total cost ($1,197/ sq.ft .), most likely closer to $800/ sq.ft . •For example, to cut an additional $4.8M, would require 6,000 square feet in cuts and limits current needs and future growth
Fiscal Impact
Fiscal Impact of the Public Safety Facility
Fiscal impact are estimates
Project Costs are estimates as they are not final
Debt service can be structured in different ways
Interest costs are fluctuating
Available funding sources depend on operating revenues and expenditures
Estimated Project Cost
Soft Costs
Contingency $ 5,000,000
Permitting Connection Fees 1,500,000
Construction Management 1,000,000
Hazmat/Survey/Abatement 250,000
Plan Check 250,000
Inspection/Special Inspection 1,000,000
Total Soft Costs $ 9,750,000
Construction Cost 43,250,000
Total Estimated Project cost $ 53,000,000
Funding Sources: PAYG vs Financing
Funding Sources
Pay -As-You -Go (PAYG) cash
Set-Aside TOT 1% in FY 2023 to FY 2025 $ 4,435,000 General Fund Reserve 2,000,000
Development Impact Fees 250,000
Subtotal Pay -As-You -Go (PAYG) cash $ 6,685,000
Remaining financing 46,315,000
Total Funding Sources $ 53,000,000
Financing the Public Safety Facility
Financing
Total Financed $46,315,000 30-year level debt
FY 2026 FY 2036 FY 2046 FY 2053
Annual Debt Service, begins FY
2026 3,058,500 3,058,500 3,058,500 3,058,500
Total cumulative debt service $105,948,602
Interest $59,633,602
Financing – TOT 1% vs Estimated Debt Service
Debt Service Payments FY 2026 FY 2036 FY 2046 FY 2053
Annual Debt Service, begins FY 2026 $3,058,500 $3,058,500 $3,058,500 $3,058,500 TOT 1%1,507,977 1,838,215 2,240,774 2,573,945
Financing less TOT (Shortfall)(1,550,523)(1,220,285)(817,726)(484,555) Overhead recovery from other funds beginning
FY25 259,000 284,900 313,390 344,729
General Fund Contingency 2%300,000 300,000 300,000 300,000 Next Level Services Fund 150,000 150,000 150,000 150,000 709,000 734,900 763,390 794,729
Remaining Debt Service Surplus/(Shortfall)$ (841,523)$ (485,385)$ (54,336)$ 310,174
Options to Close the Projected Ongoing Shortfall
•Reduce construction costs – negotiate,
potential reduction in scope
•Allow other funding sources to support PAYG
(reducing the financed portion) and ongoing
General Fund costs
•Amend City’s Municipal Code or take
other Council action
•Reduce or delayed spending on other projects
or services, avoiding reduction in revenues
•Impact is reduction in services to the
public, which could impact fee revenues,
TOT, sales tax, etc.
Parking Enterprise Fund Example – PAYG & Operating
•Parking Enterprise Fund
•FY 2023 projected ending fund balance $7M
•FY 2025 projected ending fund balance $9M
•$4M of this could be used for PAYG
•Operating Surplus $600K per year for first 10 years, $300K per year for next 10 years Funding Sources
Pay -As-You -Go (PAYG) cash
Set-Aside TOT 1% in FY 2023 to FY 2025 $ 4,435,000 General Fund Reserve 2,000,000
Parking Enterprise Fund 4,000,000
Development Impact Fees 250,000
Subtotal Pay-As-You -Go (PAYG) cash 10,685,000
Remaining financing 42,315,000
Total Funding Sources $ 53,000,000
Parking Enterprise Fund Example - Financing
Debt Service Payments FY 2026 FY 2036 FY 2046 FY 2053
Annual Debt Service, begins FY 2026 $ 2,844,352 $ 2,844,352 $ 2,844,352 $ 2,844,352 TOT 1%1,507,977 1,838,215 2,240,774 2,573,945
Financing less TOT (Shortfall)(1,336,375)(1,006,137)(603,578)(270,407) Overhead recovery from other funds
beginning FY25 259,000 284,900 313,390 344,729
General Fund Contingency 2%300,000 300,000 300,000 300,000 Next Level Services Fund 150,000 150,000 150,000 150,000 Shift costs to Parking Enterprise Fund 600,000 300,000 - - 1,309,000 1,034,900 763,390 794,729
Remaining Debt Service
Surplus/(Shortfall)$ (27,375)$ 28,763 $ 159,812 $ 524,322
Alternative Options
•Direct staff to cut square footage of the project.
•Do not move forward with the current proposals.
•Provide staff direction to repackage the project.
•Build a new apparatus bay only.
•Building a new two-story fire station and acquire
additional property
Parallel Paths Moving Forward
•If a contract is awarded staff will proceed to move forward with the following:
•Release RFP for:
•Plan Check services
•Specialty Inspections
•Entitlements/Lot Line Adjustments
•Financing
•Temporary relocation of Police and Fire Departments