Title
Approval of Lease with Lacey Fire District 3 for Use of Storage and Self Contained Breathing Apparatus (SCBA) Building at the Fire Training Center
Recommended Action
City Manager's Recommendation:
Move to authorize the mayor to sign the lease when the building is complete; authorize the City Manager to sign all documents needed to construct the Storage and SCBA Building; and authorize the Fire Department to receive the $205,000 from Lacey Fire District 3 for this project.
Report
Issue:
Whether to approve construction of an additional building and at the Fire Training Center that will provide for storage of equipment and recharging of firefighter's breathing air. The construction cost of the building will be offset by funds received from Lacey Fire District 3. In return, the District will be able to use the building to store a fire engine for the next 35 years under a lease agreement.
Staff Contact:
Greg Wright, Deputy Fire Chief, 360.753.8466
Background and Analysis:
When the City first considered developing a Fire Training Center, Lacey Fire District 3 had hoped to be a partner. Unfortunately, funding issues at the District prevented that from happening. The City voters approved a bond for the construction of a forth fire station and a fire training facility. The District has since become a customer of the City at the Fire Training Center and the District has continued to look for ways to use the center.
The District has $205,000 in Capitol funds and the need for a place to store a fire engine. They would like to store a fire engine at the training center and be able to use that engine when training at the center. They have offered the funds to Olympia in exchange for a 35 year lease of a portion of the building in which they would store the engine.
Olympia Fire has developed a plan for a pre-engineered metal building large enough to hold the engine for the District, provide much needed storage space for Olympia Fire Department's use and house a Self Contained Breathing Apparatus (SCBA, firefighter's air bottle) compressor on existing property at the Fire Training Center.
This building could be constructed and the SCBA compressor purchased with the funding from the District and the funds remaining from the bond used to build fire station 4 and the training center. Lacey will receive a pre-paid 35 year lease that will begin upon completion of construction. Language in the lease accounts for insurance, maintenance, early termination, as well as other standard lease terms. The building is the property of City of Olympia. This project continues the cooperative spirit fostered by the two departments over the years. The two departments train together and respond together on many calls. This co-locating of tools is an extension cooperation enjoyed by both parties that benefits the citizens of both communities.
The building was designed and sent out to bid. Nine bids were opened on February 12, 2014. Bids showed a large range with low bid coming in 11% higher than the engineer's estimate which was prepared approximately 6 months ago. This bid is well within the available budget. Apparent low bidder meets all the supplemental bidder requirements and their references have been checked. They are a local company.
The contract is for less than $300,000, which would not normally require City Council approval but because this is a package with a lease requiring City Council approval, both are being brought before Council for approval. For the District to turn over the funds, the City must build a building.
Finally, the Fire Department is asking for authorization to take delivery of funds from the District from the District in the amount of $205,000. These funds will be placed in an appropriate City account that can be accessed for construction of the Storage and SCBA Building (planning, permits, fees, professional services, construction, materials testing, labor, materials, SCBA compressor, etc.) and no other purpose.
Neighborhood/Community Interests (if known):
None.
Options:
Accept the City Manager's recommendation to:
· Authorize the mayor to sign the lease with Lacey Fire District 3 upon completion of the Storage and SCBA building. The lease will be in substantially the same form as the draft lease, attached.
· Authorize the City Manager to sign the contract with Berschauer Construction Incorporated and all associated documents.
· Authorize the Fire Department to accept $205,000 from Lacey Fire District 3 and place it in the appropriate City account.
Do not accept the City Manager's recommendation.
Lacey Fire District 3 will not offer the $205,000. There will be no SCBA compressor for the Fire Training Center and no permanent storage area constructed.
Financial Impact:
None to the operating budget. The Fire Department will expend the last of the bond funds from their construction budget (approximately $70,000) which is a bond requirement; they will also spend the balance of the $205,000 received from Lacey Fire District 3 on the Storage and SCBA Building project, nothing more.