HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 05/15/2007 - ITEMS RELATING TO THE SOUTHEAST BRANCH LIBRARY ITEM NUMBER: 26 A-B
AGENDA ITEM SUMMARY DATE: May 15, 2007
FORT COLLINS CITY COUNCIL STAFF: Ken Mannon
Marty Heffernan
SUBJECT
Items Relating to the Southeast Branch Library.
RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading and adoption of the Resolution.
FINANCIAL IMPACT
On March 6, 2007 Council appropriated $5.5 million in library capital expansion fees to design,
construct, furnish and provide technology,books and materials for a southeast branch library. The
cost of the project is now estimated to be $6.6 million. Adoption of Ordinance No. 074, 2007
appropriates an additional$1.1 million for the project. Of this amount, $479,613 is available from
library capital improvement expansion(impact)fees,$339,304 is available from library equipment
replacement and saving reserves, and $281,083 is available from donations made to the library.
Library impact fees have been collected from new residential construction in Fort Collins since 1996.
These fees are collected to pay for the impact of growth on the quality of library services. Funds
must be spent within a reasonable time of collection (approximately 10 years) to provide library
materials or facilities.
Future equipment replacement needs of the library will be provided by the new library district. The
ballot language creating the new library district authorized and provided funding for the district to
operate the southeast branch library once it is constructed. The annual operating budget would be
approximately$750,000 - $1,200,000 depending on staffing levels.
EXECUTIVE SUMMARY
1. Resolution 2007-054 Authorizing an Exemption to the Competitive Process for the City to
Enter into a Contract with Bayer Properties for the Construction of the Southeast Branch
Library.
B. First Reading of Ordinance No. 074, 2007, Appropriating Prior Year Reserves and
Unanticipated Revenue Designated for Library Improvements in the Capital Improvement
Expansion Fund and Prior Year Reserves in the General Fund for Transfer to the City's
Capital Projects Fund to Construct a Southeast Branch Library.
May 15, 2007 -2- Item No. 26 A-B
Resolution 2007-054 increases the amount of the sole source authorization for the City with Bayer
Properties from $1.5 million to $2,219,176 for construction of the core and shell of the branch
library. On March 6, 2007, Council adopted Resolution 2007-020, which provided sole source
authorization up to$1.5 million for the core and shell contract. Staff now has better estimates from
Bayer and from independent analysis and the cost of this work will likely exceed$1.5 million. The
City will only pay for the actual cost of this work but the estimated cost of the work is now
$2,219,176.
Ordinance No.074,2007 appropriates an additional$L l million for the branch library project. Staff
is now estimating the cost of the branch library project,including furnishings,technology,books and
materials at$6.6 million. This is$1.1 million more than previously estimated. Funding is available
from library capital expansion impact fees, from library equipment and savings reserves and from
donations to the library. Adoption of this ordinance appropriates $1.1 million from these sources
to the branch library project. Actual costs may be less than estimated. The City will only pay actual
costs. Staff will work hard to contain actual costs without compromising the quality of the project.
At its meeting on May 7, 2007, the Library District Board of Trustees unanimously approved a
motion supporting Council's adoption of the Resolution and Ordinance.
BACKGROUND
The City is working with Bayer Properties to include a 17,400 square-foot library in the Front Range
Village development. 16,000 square feet of the library will be located on the second floor of an
attractive, centrally located building with 1,400 feet on the first floor. The first floor space will
include a lobby,a stairway and two elevators. The library will be owned by the City and will provide
convenient and much needed library services for the community.
Area voters recently approved the new library district,including new funds to pay for the operation
of the Southeast Branch Library. This branch will help meet the goals identified in the Library
Capital Improvement Plan of four books per capita and .7 square feet per capita of library space by
2015. The library is currently at 2.56 books per capita and .4 square feet per capita.
Resolution 2007-054
Bayer Properties has retained a construction contractor for all the buildings in the Front Range
Village development, including the core and shell of the building the library will occupy. By
coordinating the construction of the library core and shell through Bayer, the City will realize
efficiencies, benefit from economies of scale and expedite the completion of the library. The core
and shell includes the foundation, walls, roof and associated elements of the building. Because
Bayer's contractor will be constructing the first floor core and shell, it would be difficult and
inefficient to bring in a separate contractor to build the core and shell for the second floor. Having
two contractors working on the structure of the same building would also create significant
coordination issues and cause confusion regarding responsibility for warranty work. The cost of the
library's portion of the core and shell will be determined by the final design of the library space but
is not anticipated to exceed $2,219,176. Under the City's agreement with Bayer, the City must
May 15, 2007 -3- Item No. 26 A-B
approve the design and all costs associated with construction of the core and shell on a line item
basis. The City has hired an independent estimator to verify the reasonableness of all costs.
Staff intends to utilize a competitive process to select a contractor to finish the library space. The
finish work includes the entire interior space of the library, everything from drywall and electrical
to carpeting, lighting and shelving.
• Partnering with Bayer on the Library project maximizes use of the impact fees designated
for library services and materials. Bayer's contribution to the library project is substantial.
• Bayer is providing the land for the library building and paying for the infrastructure costs
associated with bringing necessary utilities and streets to the development and to the library
building itself.
• Bayer is also providing the adjacent parking lots and paying the associated offsite
development costs and fees.
• Operation Services has estimated that the cost savings to the City by partnering with Bayer
is approximately 2.2 million dollars compared to the cost of the City building a stand alone
branch library.
Ordinance No. 074, 2007
The City would use remaining library impact fees of $479,613, library equipment and savings
reserves of$339,304 and library donations of$281,083 to pay for the estimated$1.1 million increase
in cost for the design,construction and furnishing of the library,for library technology and for books
and materials.
Staff has determined the estimated increase in cost is reasonable based on the following:
Data used to estimate cost numbers for the Development Agreement phase for the Southeast Branch
Library were put together with conceptual drawings only in order to keep the agreement time-frame
moving on track. The City commissioned Capstone Planning&Control to generate a"conceptual"
estimate for the 16,000 square foot area before any of the library design for the core and shell was
accomplished. The City also asked Bayer Properties for the unit cost per square foot estimate that
Bayer would be using for retail/office space in the buildings in this development. Although Bayer's
numbers were somewhat higher than Capstone's, the Capstone numbers were the only itemized
estimate staff had before the Development Agreement was written and authorized. Bayer's unit cost
estimate for retail/office space in the buildings was at$88 per square foot. The Capstone numbers
were somewhat less. After drawings were produced during the preliminary design for the library
core and shell, the City asked Bayer's general contractor to provide a detailed estimate of the core
and shell costs based upon the design drawings. The current design area of the Southeast Branch
Library has increased to 17,415 square feet with the inclusion of 1,415 square feet on the first floor
dedicated for the library. The estimate came in at approximately$127 per square foot.
With this new information in hand,Operations Services analyzed the estimated costs and discussed
the estimate with Bayer and their general contractor Hoar Construction. In addition,we have done
May 15, 2007 -4- Item No. 26 A-B
unit price cost comparisons of other Libraries in our market area,specifically along the Front Range,
and have consulted with our architect/engineer, Aller-Lingle and Associates relative to the costs.
We believe the estimate received from Bayer at the$127 per square foot is reasonable and that these
costs fall within an acceptable range for a quality library space in our market area at this time. We
are recommending that the budget be brought up to meet the current design estimated cost to produce
the kind of project we can all say we're proud to have as a City facility.
The Development Agreement provides that the City will be paying actual costs for the library core
and shell. The general contractor is required to provide the receipts showing this cost. Some notable
facts concerning the current construction market and this particular project include:
• Total cost of the Southeast Branch Library is estimated at $259 per square foot. (for
construction only).
• This cost falls within the range for Libraries nationwide adjusted for location.
• Cost for the new Arvada Library is very comparable in price to the proposed Southeast
Branch.
• Construction cost escalation has been running as much as 30%above last year's prices,with
the costs of concrete and steel being a primary driver.
• Cost trends in the building industry continue to climb at an unprecedented rate.
• Conceptual costs for a new stand-alone library including land, site costs, development fees,
permits, etc in 2005 were estimated at $520 per square foot so the City receives at least a
$250 per square foot economy over a stand alone facility that was estimated in 2005.
It is anticipated that construction of the new library will be completed by fall of 2008.
RESOLUTION 2007-054
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING AN INCREASE TO THE EXEMPTION TO THE
COMPETITIVE PROCESS FOR THE CITY
TO ENTER INTO A CONTRACT WITH BAYER PROPERTIES
FOR THE CONSTRUCTION OF THE SOUTHEAST BRANCH LIBRARY
WHEREAS, Bayer Properties has agreed to construct a 17,400 square foot branch library
located over retail space planned for the Front Range Village, located near the intersection of
Harmony and Ziegler Roads (the"Branch Library'); and
WHEREAS,the Purchasing Agent has determined that substantial savings will be realized
by partnering with Bayer Properties for the construction of the Branch Library; and
WHEREAS, on March 6,2007,the City Council adopted Resolution 2007-020 approving
sole source authorization up to $1.5 million for the core and shell contract for construction of the
Southeast Branch Library; and
WHEREAS, staff now has better estimates from Bayer and from independent analysis and
the cost of this work will likely exceed $1.5 million but the City will only pay for the actual cost of
this work, which is now estimated at$2,219,176; and
WHEREAS, Staff is asking for approval of sole source authorization up to $2,219,176 but
limited to the actual cost of the work; and
WHEREAS, pursuant to Section 8-161(d)(1)(b) of the Code of the City of Fort Collins
authorizes Council to approve an exemption to the competitive process when,although there exists
more than one responsible source,a competitive process cannot reasonably be used or,if used,will
result in a substantially higher cost to the City,will otherwise injure the City's financial interests or
will substantially impede the City's administrative functions or the delivery of services to the public;
and
WHEREAS,the Purchasing Agent has submitted the required written j ustification to the City
Manager for approval; and
WHEREAS, the City Manager has reviewed and concurred in that determination for this
procurement; and
WHEREAS, Section 8-161(d)(3) required approval of this purchasing method by the City
Council for items costing more than ONE HUNDRED THOUSAND DOLLARS ($100,000).
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NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that the construction of the exterior shell of the Southeast Library at Front Range Village
by Bayer Properties in an additional amount up to SEVEN HUNDRED NINETEEN THOUSAND
ONE HUNDRED SEVENTY-SIX DOLLARS($719,176)is approved as an exemption to the City's
competitive procurement requirements.
Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 15th
day of May, A.D. 2007.
Mayor
ATTEST:
City Clerk
ORDINANCE NO. 074, 2007
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING PRIOR YEAR RESERVES AND UNANTICIPATED REVENUE
DESIGNATED FOR LIBRARY IMPROVEMENTS IN THE CAPITAL IMPROVEMENT
EXPANSION FUND AND PRIOR YEAR RESERVES IN THE GENERAL FUND
FOR TRANSFER TO THE CITY'S CAPITAL PROJECTS FUND TO CONSTRUCT A
SOUTHEAST BRANCH LIBRARY
WHEREAS, on March 20, 2007, the City Council adopted Ordinance No. 037, 2007,
appropriating prior year reserves in the Capital Improvement Expansion Fund designated for library
capital improvements ($4.5 million) and prior year reserves in the General Fund ($1 million), for
construction of a 17,400 square foot southeast branch library at the proposed Front Range Village
(the"Branch Library"), and for the purchase of books and materials for that library; and
WHEREAS,significant increases in the cost of construction materials and a more complete
estimate of material needs has resulted in a revised cost estimate for construction of the Branch
Library; and
WHEREAS,the revised estimate to construct the Branch Library is$5.6 million,excluding
the $1 million previously appropriated for the purchase of books and materials; and
WHEREAS, staff recommends using the following sources to fund the additional $1.1
million needed for construction of the branch library:
General Fund prior year reserves $ 620,387
Capital Improvement Expansion Fund prior year reserves
designated for library capital improvements $ 394,198
Capital Improvement Expansion Fund unanticipated revenue 85,415
total $1,100,000
WHEREAS, the proposed General Fund prior year reserves ($620,387) to be used for this
purpose consist of an appropriation from General Fund undesignated prior year reserves, totaling
$339,304, and an appropriation from General Fund prior year reserves representing unspent and
unencumbered general library donations, totaling$281,083; and
WHEREAS,City Code Section 7.5-27(a)requires that library capital improvement expansion
fee funds be used only for capital improvements related to the provision of general library services
as those improvements maybe identified in the capital improvements plan for library services; and
WHEREAS, on May 19, 1998, the City Council adopted Resolution 1998-83 creating the
Capital Improvements Plan for the library,which plan recommends that the library strive to provide
4.0 books per city resident and provide 0.7 square foot per capita; and
WHEREAS, the construction of the Branch Library and the purchase of books and other
library materials needed for the Branch Library are consistent with the Capital Improvements Plan;
and
WHEREAS, the request for appropriation of fees is consistent with the uses of the fees set
forth in Chapter 7.5 of the City Code; and
WHEREAS,Article V, Section 9, of the Charter of the City of Fort Collins (the"Charter")
permits the City Council to appropriate by ordinance at any time during the fiscal year such funds
for expenditure as may be available from reserves accumulated in prior years,notwithstanding that
such reserves were not previously appropriated; and
WHEREAS, Article V, Section 9, of the Charter also permits the City Council to make
supplemental appropriations by ordinance at any time during the fiscal year,provided that the total
amount of such supplemental appropriations,in combination with all previous appropriations for that
fiscal year, does not exceed the current estimate of actual and anticipated revenues to be received
during the fiscal year; and
WHEREAS, staff has determined that the appropriation of 2007 Library Capital Expansion
Fee revenue, as described herein, will not cause the total amount appropriated in the Capital
Improvement Expansion Fund to exceed the current estimate of actual and anticipated revenues to
be received during the fiscal year; and
WHEREAS, pursuant to Section 23-304 of the City Code, one percent of the funds
appropriated for the construction of capital projects should be set aside in the Art in Public Places
Reserve account in the Cultural Services & Facilities Fund, for use in the acquisition or leasing of
works of art,maintenance, repair or display of works of art, and administrative expenses related to
the Art in Public Places Guidelines adopted by Council in Ordinance No. 047, 1998; and
WHEREAS,Article V, Section 10, of the Charter authorizes the City Council to transfer by
ordinance any unexpended and unencumbered amount or portion thereof from one fund or capital
project to another fund or capital project,provided that the purpose for which the transferred funds
are to be expended remains unchanged; and
WHEREAS,it is the desire of the City Council to: (a)appropriate the sum of$620,387 from
prior years reserves in the General Fund, $394,198 from prior year reserves designated for library
capital improvements in the Capital Improvement Expansion Fund,and$85,415 from unanticipated
revenue, in the form of 2007 Library Capital Expansion Fees, for transfer to the Capital Projects
Fund- Southeast Branch Library project for construction of a branch library at the proposed Front
Range Village; and(b)provide funding for the City's Art in Public Places program by authorizing
the transfer of$56,000 from the Capital Projects Fund - Southeast Branch Library project, and
$10,000 from the General Fund 2007 Library budget, to the Cultural Services & Facilities Fund.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
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Section 1. That there is hereby appropriated from prior year reserves in the General Fund,
the sum of SIX HUNDRED TWENTY THOUSAND THREE HUNDRED EIGHTY-SEVEN
DOLLARS ($620,387), for transfer to the Capital Projects Fund- Southeast Branch Library capital
project,and appropriated therein,to be used with previously appropriated funds to construct a 17,400
square foot branch library at the proposed Front Range Village.
Section 2. That there is hereby appropriated from prior year reserves designated for library
capital improvements in the Capital Improvement Expansion Fund,the sum of THREE HUNDRED
NINETY-FOUR THOUSAND ONE HUNDRED NINETY-EIGHT DOLLARS ($394,198), for
transfer to the Capital Projects Fund - Southeast Branch Library capital project, and appropriated
therein, to be used with previously appropriated funds to construct a 17,400 square foot branch
library at the proposed Front Range Village.
Section 3. That there is hereby appropriated for expenditure from unanticipated revenue in
the Capital Improvement Expansion Fund, the sum of EIGHTY-FIVE THOUSAND FOUR
HUNDRED FIFTEEN DOLLARS ($85,415), for transfer to the Capital Projects Fund- Southeast
Branch Library capital project, and appropriated therein, to be used with previously appropriated
funds, to construct a 17,400 square foot branch library at the proposed Front Range Village.
Section 4. That the unexpended appropriated amount of FIFTY-SIX THOUSAND
DOLLARS ($56,000) is hereby authorized for transfer from the Capital Projects Fund- Southeast
Branch Library capital project to the Art in Public Places Reserve Account in the Cultural Services
and Facilities Fund for appropriation therein to be used for purposes consistent with the City's Art
in Public Places Program.
Section 5. That the unexpended appropriated amount of TEN THOUSAND DOLLARS
($10,000) is hereby authorized for transfer from the General Fund 2007 Library budget to the Art
in Public Places Reserve Account in the Cultural Services and Facilities Fund for appropriation
therein to be used for purposes consistent with the City's Art in Public Places Program.
Introduced and considered favorably on first reading and ordered published this 15th day of
May, A.D. 2007, and to be presented for final passage on the 5th day of June, A.D. 2007.
Mayor
ATTEST:
City Clerk
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Passed and adopted on final reading this 5th day of June, A.D. 2007.
Mayor
ATTEST:
City Clerk
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