Memorandum 17-047 Fire Hall Improvements

Memorandum 17-047

TO:                        Mayor Zak and Homer City Council                  

FROM:                 Katie Koester, City Manager

DATE:                   March 8, 2017

SUBJECT:          Fire Hall Improvements                                                                                                                           

The purpose of this memo is to seek formal direction from the Mayor and City Council on the Fire Hall Improvement project.

Ordinance 16-16(A) appropriated $80,000 for design of the project. Ordinance 16-28(A) appropriated $1,000,000 for improvements and Ordinance 16-52 approved a $115,000 loan from the revolving energy fund for the converting the station to natural gas for a total budget of $1,195,000.

The Fire Hall Improvements project contains many overdue and needs improvements to the station such as painting, an air exchange system, replacing original floor coverings, and remodeling the kitchen. However, one item on the list, a 2,000 square foot expansion to accommodate live-in volunteers, is predicted to run approximately $200,000 over budget. This has given staff the opportunity to pause and re-evaluate the project. The attached memos from the Public Works Director and Fire Chief detail the different options available and the value of expanding the square footage of the station. However, in light of the changing dynamics of the project, I would like to take this opportunity to solicit Council feedback on the different options before proceeding. 

Option 3, eliminating the building expansion and focusing on extending the life of the current facility, would provide the most immediate tangible benefits to the staff and volunteers. Under this option, items that were not included in the original scope of work such as restroom remodeling, roof replacement, replacing existing furnishings, and installation of audio-visual training equipment will be added to further the utility of the building. However, at a cost of around $850,000, eliminating the expansion saves the general fund $350,000. It is worth noting that if Council decides not to proceed with the expansion, figuring out a way to expand our volunteer capacity with housing options in the future will still need to be addressed.

Recommendation: Approve Option 3 for Fire Hall Improvements, Eliminate Building Expansion – Focus on Extending Life of Existing Facility.