Memorandum 17-082 New Police Station Project Recommendations

Memorandum 17-082

TO:                        MAYOR ZAK AND CITY COUNCIL

FROM:                 POLICE STATION BUILDING TASK FORCE

THRU:                  RENEE KRAUSE, CMC, DEPUTY CITY CLERK I

DATE:                   MAY 24, 2017

SUBJECT:          RECOMMENDATIONS FOR THE NEW POLICE STATION PROJECT

Through Resolution 16-128(S)(A) the City Council established the Police Station Building Task Force to build on the extensive work completed by the Public Safety Building Review Committee to assist the city to move forward on a separate Police Station Building Project.

The Task Force was directed to analyze and report back to City Council on the following:

Two Proposed Not To Exceed Budgets - $6 Million and $9 Million
Site Selection
Possibility of Public Private Partnerships (such as Lease to Purchase)
Feasibility of remodeling the HERC  
Impact to the operating budget of ongoing maintenance costs
A funding mechanism and repayment method that takes in account capital and maintenance expenses

The members of the Task Force have had four meetings and recommend the following in accordance with the scope of work as outlined:

Not to Exceed $6M and $9M Budget:  Option 2A $6 M for an 8400 square foot building or Option 2B $9M for a 13,900 square foot building as shown on the Conceptual Cost Estimate attached

Site Selection:  Waddell parcel located at the confluence of Grubstake, Heath and Snowbird

Possibility of Public Private Partnerships:  Consider Private Public Partnership with emphasis on Local Investment by Person(s) and/or Group(s) and Lease with Purchase Option Build to Suit

Constructing in Phases:  Not Addressed by the Task Force

Feasibility of Remodeling the HERC:  Not Addressed by the Task Force

Impact on the Operating Budget with ongoing Maintenance Costs:  Annual costs for a $6M project is an additional $44,830 and for a $9M project is $127,330 for operational expenses

Either option would require additional ½ time janitorial/maintenance personnel at $56,575 annually

Funding Mechanism and Repayment Method to account for Capital & Maintenance Expenses:  Bonding with Repayment by Seasonal Sales Tax, Private Investment Group(s) and/or Person(s), Lease Build to Suit with Purchase Option

Additional Recommendations from the Task Force:  Re-Advertise the Project for Bid

Attachments:

Conceptual Cost Estimate New Homer Police Station – Four Alternative Corrected

Homer Police Station Funding Potential Spreadsheet

Minutes for the May 23, 2017 meeting

Minutes for the May 16, 2017 meeting

Minutes for the May 1, 2017 meeting

Minutes for the April 18, 2017 meeting