Title
Agenda Item:
Building Repair and Replacement Fund
Body
Issue:
Update on Fund 029 (Building Capital Repair and Replacement Fund).
Committee Recommendation:
To be developed
City Manager's Recommendation:
Review Status of the Building Capital Repair and Replacement Fund 029.
Staff Contact:
Debbie Sullivan, Director of Public Works Technical Services, 753.8494
Presenter(s) and others notified
Rich Hoey, Public Works Director
Jane Kirkemo, Administrative Services Director
Dean Walz, Finance Manager
Background and Analysis:
Staff is responsible for managing major capital repair and replacement projects for 18 City-owned buildings. This represents over 400,000 square feet of property. These buildings provide workspace for nearly 500 employees who welcome more than 2,000 visitors every day. Four of the buildings are leased or occupied by community organizations. Attached is a complete list of the City's portfolio covered by Fund 029.
To understand the long-term needs of the City's buildings, Public Works conducted a Building Condition Assessment in May 2008. The study evaluated the major systems, estimated the remaining useful life, and provided an estimate where it was feasible. We asked that the analysis focus on life-safety, code requirement, and operational continuity issues. It was through this report that the issues at the Washington Center were identified. In summary, every building had items that needed to be addressed and the preliminary estimate exceeded $10 million. A 20-year capital improvement plan was developed based on this report.
That same year, the City entered into an Interlocal Agreement with General Administration (now Department of Enterprise Services) to initiate an Energy Savings Performance Contracting Project. Through this work, the City completed a $2.7 million project that resulted in over $200,000 in annual resource savings and addressed some of the projects identified through the assessment. For example, replacing old lighting systems, installing new low consumption toilets, replacing the single-pass cooling system at the Justice Center, and upgrading HVAC controls. The money saved by reducing our utility costs is paying the 10-year low-interest bond the City borrowed to pay for the project.
Since the May 2008 report was finalized, the City has built four new buildings (City Hall, Hands on Children's Museum, the 4th Fire Station, and the Fire Training Center). We also did a more in depth analysis of the mechanical needs at each of our buildings and have a better understanding of the actual costs and timeline. The revised estimate for the known projects (excluding the new buildings) is $13,230,000. The debt service to repair the Washington Center will also be paid from Fund 029. This adds $2,700,000 through 2012 ($300,000/year) to the total.
Over the past three years through the CFP, Fund 029 has received $600,000 plus a varying amount of year-end funds to address the deficit. However, the average amount needed is $1.5 million per year. It is important to note that this spring we will be updating the Building Condition Assessment to include the four new buildings so this number will be revised.
The needs of Fund 029 continue to grow and there is concern that if anything catastrophic were to happen in any of the buildings, the City may not be in a position to financially address them.
Neighborhood/Community Interests (if known):
None.
Options:
For information only.
Financial Impact:
$ 1,882,864 2012 EOY Fund Balance, 029 (18 City-owned Buildings)
$ 5,832,000 Estimated Appropriations through CFP
$ 7,714,864 Total Available Resources
$15,931,677 2013-2021 Estimate for Capital Projects, Including WCPA Debt Service
($8,216,813) Balance