MEMORANDUM 04-_______

MEMORANDUM 04-25

DATE: February 4, 2004

TO: Mayor Cushing / Homer City Council

FROM: Walt Wrede

SUBJECT: Animal Shelter Construction / Proposed Action Plan

Introduction:

As you know, the administration and the City Council have repeatedly expressed their desire to build a new Homer Animal Shelter this year. Attached is a proposed action plan to accomplish that goal. We are bringing this proposal forward now because there is an urgent need to establish square footage and budget parameters in order to keep the project on track. We cannot proceed to the final design phase until those parameters are established.

The City has been planning for a new animal shelter for many years. The City conducted an exhaustive search for a suitable location for the shelter. It has invested funds in an architect and spent a considerable amount of time consulting with interested parties and advocacy groups like the Animal Friends and SOS. At some point, decisions have to be made so that the City is able to fulfill its obligation to provide a clean, safe, and modern shelter. The attached recommendation is based on a synthesis of the information we have compiled to date. It is an attempt to strike a balance between the City’s needs, its fiscal and political constraints, and the desire to build the shelter this year.

Attached is a memo from the Public Works Director which analyzes the estimated costs of three different construction options. Options 1 and 2 are for the building proposed by SOS sited at two different locations. Option 3, the preferred Alternative, is for a smaller building (3,000 feet plus dog runs), with a footprint specifically designed to meet the characteristics of the lot. We recommend Option 3. Preliminary design drawings will be available at the Council meeting.

Benefits of Option 3:

Cost: it is the least costly option because it reduces costs associated with design, construction, earthwork, and site improvements
It provides the best footprint for the physical and dimensional characteristics of the property. The result is better parking options, better traffic flow, and less disruption to existing drainage, water and sewer infrastructure.
It is a modern and humanitarian facility that will meet the City’s needs for the next 20 years or more.
The design and location makes shelter expansion relatively easy.

Assumptions:

The cost estimate provided for Option 3 ($ 899,000) is a not to exceed number. This estimate was calculated as though the construction will be carried out entirely by contractors. It is our intent to investigate options for performing portions of the work using force account labor and volunteers. There are other ways in which we may be able to cut costs. In short, we hope to construct the building for less than this amount.
Although this proposal establishes size and budget parameters, there is still room for public input on the interior design. The next step will be to bring the architect to Homer to work with the City and the public final interior design.
The construction schedule contained on page 2 of the Public Works Director’s Memorandum.

Funding Issues:

The big question on everyone’s mind is of course, where is the money coming from. That is a very legitimate question and I appreciate that concern. I am concerned myself. However, I think the bottom line is that the City must assume some financial risk if the building is going to be constructed this year. We presently have about $450,000 in construction funds for this project. That means that we will have to raise about $450,000 more in the next six months or so. As I noted above, we hope to build the facility for less than $900,000 but we should assume that this is the amount we need for planning purposes.

In order to assure that construction begins this year, I believe that the Council will have to “bite the bullet” and commit to using General Fund money to complete the project. We (the City, SOS, Animal Friends) will try to raise as much of that amount as we can. I have asked Rachel Livingston to take an active roll in helping to generate money for this project. Rachel will work with SOS and the Animal Friends to look for grants and conduct fund raising activities. The animal shelter will get the same level of staff support from the Manager’s office as the library and the ice rink are receiving.

The money that the Council provides for construction will have to come from either the General Fund or a reserve account. The Council has options to repay the impacted fund. These options include selling bonds, taking a commercial loan, designating sales tax revenues to a capital construction fund, etc. These issues can be discussed as part of the long range fiscal plan discussions.

It is important to note that at this time, I am asking for authorization to proceed with the final design only. The final design will provide us with much more refined cost estimates. We will come back to the Council for authorization to proceed with construction at that time. The money for construction must be identified before we can offer a construction contract.

RECOMMENDATION: Council approval and adoption of Option 3 as depicted in the attached Memorandum from the Public Works Director including cost estimates, site location, and dimensions. Authorize the Manager to proceed with the final design phase.