2018-02-07 Council Work Session PacketCITY OF MENDOTA HEIGHTS CITY
COUNCIL WORK SESSION
AGENDA
Wednesday, February 7, 2018
5:00 pm
Mendota Heights Fire Station
2121 Dodd Road
1. Open Session--Call to Order
2. Discussion of Fire Station Remodel/Addition
3. Adjourn
CLOSED SESSION
(To follow Open Session—Fire Station Day Room)
1. Call to Order
2. Roll Call
3. Convene in Closed Session
a. Closed Session: Pursuant to Minnesota Statute §13D.03; for Attorney Client Privilege for
Discussion of Labor Negotiations Strategy – MNPEA
4. Reopen in Open Session
5. Adjourn
To: Mayor and City Council
From: Mark McNeill, City Administrator
Subject: Fire Station Information
Date: February 7, 2018
COMMENT:
Introduction:
Assuming the City Council is interested in pursuing the design and ultimate construction of a fire
station addition/remodeling project, there are financial and scheduling issues to consider.
Background:
Process—State law does allow for the issuance of General Obligation Capital Improvements
Bonds (the “bonds”) for this type of public improvement without a referendum. However,
according to the City Attorney’s office, these steps that must be taken:
th
March 6: The City Council approves a resolution calling for a Public Hearing on a Capital
Improvements Program, and the issuance of Bonds. The CIP is different than what is included in
the City’s annual budget process, and would be prepared by the City’s Bond or Financial
Counsel.
Notification: A Notice of this Public Hearing would need to be published in the City’s legal
newspaper (the St. Paul Pioneer Press), at least 14 days, but not more than 28 days in advance of
the Hearing.
rd
April 3: (Tentative) The City Council holds the Public Hearing on the CIP, and gives the
preliminary approval issue the bonds.
th
April 4: A 30 day timeframe starts, during which time a petition may be circulated calling for a
referendum to consider issuance of the bonds. If the petition is sign by at least 5% of the voters
in the last general election, a referendum would need to be held. Based on the 2016 vote count,
that would mean at least 401 signers. If the petition is returned and it is determined not to move
ahead with a referendum, the City would have to wait at least a year before considering the issue
again.
rd
May 3: If no petition is received, this is the earliest date that the City could move ahead to sell
the bonds. This assumes approval of Plans and Specifications for the construction has been
made.
Financial: According to Ehlers and Associates, assuming a $6 million construction budget with
st
proceeds to be available August 1, bonds with a 15 year term would mean an annual levy
increase of an average of $509,320. For an average value home of $356,700, that would mean
an increase of $90.24 per year for the City’s portion of the property taxes. That is an increase of
6.7%, and would bring the tax rate to 40.345.
A twenty year term would mean an average annual levy of $418,453, or an increase of 5.5%.
The annual tax increase for that same home would be $74.05. The tax rate would be 39.891.
See attached sheets for details.
Schedule: The Fire Station Committee is anxious to get this project underway as soon as
possible, so as to avoid the extra costs of winter construction. Their concern is that needing to
enclose the exterior for masonry (similar to what happened for the City Hall masonry work)
could add (ballpark) $350,000 to the overall cost. Waiting until warmer weather in the spring of
2019 would mean bidding in January, 2019, and would add an estimated $252,000 to the cost.
The architect estimates that construction plans and specifications will take approximately 3
months to prepare; the bid process is 3 to 4 weeks in addition. Once the bids are received, there
is an additional 4-5 weeks needed to write the contract, get insurances in place, etc. Therefore, if
the decision to begin design at the first meeting in March, construction is projected to get
underway in August, which would avoid winter construction costs. If, however, it is decided to
rd
wait to begin design until after the 30 day comment period has passed on May 3, winter
construction could not be avoided.
rd
The financial risk is that if the design work began, and on the May 3 date the decision was
made to stop further design work, the City would need to pay approximately $150,000 in
incurred architectural and engineering fees. However, a decision could be made to complete the
design work, so that the City would have “shelf ready” plans for a future construction timeframe.
In either case, the payment for the architectural and engineering fees would have to come out of
fund reserves, as the City would not have bond proceeds from which to draw.
Whatever is done, it is important that the process is transparent, and that residents know what is
being contemplated. While the fire station improvements are badly needed, it is very important
that the public is aware of the process, and potential impact on taxes.
Council should discuss the timing of the start of construction design.
Mark McNeill
City Administrator
Mendota Heights, Minnesota
$6,125,000 General Obligation ICP Bonds, Series 2018
Assumes Current Market BQ AAA Rates plus 35bps
15 Years
Sources & Uses
Dated 08/01/2018 I Delivered 08/01/2018
Sources Of Funds
Par Amount of Bonds
Total Sources
Uses Of Funds
$6,125,000.00
56,125,000.00
Total Underwriter's Discount (1.000%)
61,250.00
Costs of Issuance
Deposit to Project Construction Fund
Rounding Amount
60,000.00
6,000,000.00
3,750.00
Total Uses
Series 2018 GO CIP Bds- 1 SINGLE PURPOSE 1 1/30/2018 1 9:57 AM
56,125,000.00
EHLERS
LEADERS IN PUBLIC FINANCE
Mendota Heights, Minnesota
$6,125,000 General Obligation ICP Bonds, Series 2018
Assumes Current Market BQ AAA Rates plus 35bps
15 Years
Debt Service Schedule
Date Principal Coupon Interest Total P+I Fiscal Total
08/01/2018 - - -
08/01/2019 - - 156,507.50 156,507.50
02/01/2020 275,000.00 1.900% 78,253.75 353,253.75 509,761.25
08/01/2020 - - 75,641.25 75,641.25 -
02/01/2021 355,000.00 2.000% 75,641.25 430,641.25 506,282.50
08/01/2021 . - - 72,091.25 72,091.25
02/01/2022 365,000.00 2.050% 72,091.25 437,091.25 509,182.50
08/01/2022 - 68,350.00 68,350.00 -
02/01/2023 370,000.00 2.150% 68,350.00 438,350.00 506,700,00
08/01/2023 - - 64,372.50 64,372.50 -
02/01/2024 380,000.00 2.250% 64,372.50 444,372.50 508,745.00
08/01/2024 - 60,097.50 60,097.50 -
02/01/2025 390,000.00 2.350% 60,097.50 450,097.50 510,195.00
08/01/2025 - - 55,515.00 55,515.00
02/01/2026 400,000.00 2.450% 55,515.00 455,515.00 511,030.00
08/01/2026 - - 50,615.00 50,615.00 -
02/01/2027 410,000.00 2.500% 50,615.00 460,615.00 511,230.00
08/01/2027 - - 45,490.00 45,490.00 -
02/01/2028 420,000.00 2.550% 45,490.00 465,490.00 510,980.00
08/01/2028 - - 40,135.00 40,135.00 -
02/01/2029 430,000.00 2.650% 40,135.00 470,135.00 510,270.00
08/01/2029 - - 34,437.50 34,437.50 -
02/01/2030 440,000.00 2.750% 34,437.50 474,437.50 508,875.00
08/01/2030 - 28,387.50 28,387.50 -
02/01/2031 450,000.00 2.850% 28,387.50 478,387.50 506,775.00
08/01/2031 - - 21,975.00 21,975.00 -
02/01/2032 465,000.00 2.950% 21,975.00 486,975.00 508,950.00
08/01/2032 - 15,116.25 15,116.25
02/01/2033 480,000.00 3.050% 15,116.25 495,116.25 510,232.50
08/01/2033 - 7,796.25 7,796.25 -
02/01/2034 495,000.00 3.150% 7,796.25 502,796.25 510,592.50
Total $6,125,000.00
$1,514,801.25 $7,639,801.25
Yield Statistics
Bond Year Dollars
$55,452.50
Average Life
Average Coupon
9.053 Years
2.7317096%
Net Interest Cost (NIC)
True Interest Cost (TIC)
Bond Yield for Arbitrage Purposes
2.8421645%
All Inolusi
e Cos
(AIC)
2.8428615%
2.7143701%
2.9704571 %
IRS Form 8038
Net Interest Cost
Weighted Average Maturity
Series 2018 GOCIPBds- 1 SINGLE PURPOSE 1 1/30/2018 i 9:57AM
2.7317096%
9.053 Years
lat EHLERS
LEADERS IN PUBLIC FINANCE
Mendota Heights, Minnesota
$6,125,000 General Obligation ICP Bonds, Series 2018
Assumes Current Market BQ AAA Rates plus 35bps
15 Years
Debt Service Schedule
Date Principal Coupon Interest
02/01/2019 - -
02/01/2020 275,000.00 1.900% 234,761.25
02/01/2021 355,000.00 2.000% 151,282.50
02/01/2022 365,000.00 2.050% 144,182.50
02/01/2023 370,000.00 2.150% 136,700.00
02/01/2024 380,000.00 2.250% 128,745.00
02/01/2025 390,000.00 2.350% 120,195.00
02/01/2026 400,000.00 2.450% 111,030.00
02/01/2027 410,000.00 2.500% 101,230.00
02/01/2028 420,000.00 2.550% 90,980.00
02/01/2029 430,000.00 2.650% 80,270.00
02/01/2030 440,000.00 2.750% 68,875.00
02/01/2031 450,000.00 2.850% 56,775.00
02/01/2032 465,000.00 2.950% 43,950.00
02/01/2033 480,000.00 3.050% 30,232.50
02/01/2034 495,000.00 3.150% 15,592.50
Total P+l
509,761.25
506,282.50
509,182.50
506,700.00
508,745.00
510,195.00
511,030.00
511,230.00
510,980.00
510,270.00
508,875.00
506,775.00
508,950.00
510,232.50
510,592.50
105%
Overlevy
535,249.31
531,596.63
534,641.63
532,035.00
534,182.25
535,704.75
536,581.50
536,791.50
536,529.00
535,783.50
534,318.75
532,113.75
534,397.50
535,744.13
536,122.13
Total $6,125,000.00
$1,514,801.25 $7,639,801.25 $8,021,791.31
Significant Dates
Dated
First Coupon Date
8/01/2018
8/01/2019
Yield Statistics
Bond Year Dollars
Average Life
Average Coupon
$55,452.50
9.053 Years
2.7317096%
Net Interest Cost (NIC)
True Interest Cost (TIC)
Bond Yield for Arbitrage Purposes
All Inclusive Cost (AIC)
2.8421645%
2.8428615%
2.7143701%
2.9704571%
IRS Form 8038
Net Interest Cost
Weighted Average Maturity
2.7317096%
9.053 Years
Series 2018 GO CIP Bds - 1 SINGLE PURPOSE 1 1/30/2018 1 9:57 AM
ei EHLERS
LEADERS IN PUBLIC FINANCE
Mendota Heights, Minnesota
$6,125,000 General Obligation ICP Bonds, Series 2018
Assumes Current Market BQ AAA Rates plus 35bps
20 Years
Sources & Uses
Dated 08/01/20181 Delivered 08/01/2018
Sources Of Funds
Par Amount of Bonds $6,125,000.00
Total Sources 56,125,000.00
Uses Of Funds
Total Underwriter's Discount (1.000%)
Costs of Issuance
Deposit to Project Construction Fund
Rounding Amount
Total Uses
Series 2018 GO CIP Bds - 1 SINGLE PURPOSE 1 1/30/2018 1 9:57 AM
61,250.00
60,000.00
6,000,000.00
3,750.00
$6,125,000.00
q,*
EHLERS
LEADERS IN PUBLIC FINANCE
Mendota Heights, Minnesota
$6,125,000 General Obligation ICP Bonds, Series 2018
Assumes Current Market BQ AAA Rates plus 35bps
20 Years
Debt Service Schedule
105%
Date Principal Coupon Interest Total P+I Overlevy
02/01/2019 -
02/01/2020 160,000.00 1.900% 258,558.75 418,558.75 439,486.69
02/01/2021 250,000.00 2.000% 169,332.50 419,332.50 440,299.13
02/01/2022 255,000.00 2.050% 164,332.50 419,332.50 440,299.13
02/01/2023 260,000.00 2.150% 159,105.00 419,105.00 440,060.25
02/01/2024 265,000.00 2.250% 153,515.00 418,515.00 439,440.75
02/01/2025 270,000.00 2.350% 147,552.50 417,552.50 438,430.13
02/01/2026 275,000.00 2.450% 141,207.50 416,207.50 437,017.88
02/01/2027 285,000.00 2.500% 134,470.00 419,470.00 440,443.50
02/01/2028 290,000.00 2.550% 127,345.00 417,345.00 438,212.25
02/01/2029 300,000.00 2.650% 119,950.00 419,950.00 440,947.50
02/01/2030 305,000.00 2.750% 112,000.00 417,000.00 437,850.00
02/01/2031 315,000.00 2.850% 103,612.50 418,612.50 439,543.13
02/01/2032 325,000.00 2.950% 94,635.00 419,635.00 440,616.75
02/01/2033 335,000.00 3.050% 85,047.50 420,047.50 441,049.88
02/01/2034 345,000.00 3.150% 74,830.00 419,830.00 440,821.50
02/01/2035 355,000.00 3.250% 63,962.50 418,962.50 439,910.63
02/01/2036 365,000.00 3.300% 52,425.00 417,425.00 438,296.25
02/01/2037 375,000.00 3.400% 40,380.00 415,380.00 436,149.00
02/01/2038 390,000.00 3.450% 27,630.00 417,630.00 438,511.50
02/01/2039 405,000.00 3.500% 14,175.00 419,175.00 440,133.75
Total $6,125,000.00
$2,244,066.25
$8,369,066.25 $8,787,519.56
Significant Dates
Dated
First Coupon Date
Yield Statistics
8/01/20_18
8/01/2019
Bond Year Dollars
Average Life
Average Coupon
Net Interest Cost (NIC)
True Interest Cost (TIC)
Bond Yield for Arbitrage Purposes
All Inclusive Cost (AIC)
IRS Form 8038
$73,657.50
12.026 Years
3.0466229%
3.1297780%
_3.1200330%
3.0170346%
3.2223400%
Net Interest Cost
Weighted Average Maturity
3.0466229%
12.026 Years
Series 2018 GO CIP Bds - 1 SINGLE PURPOSE 1 1/30/2018 1 9:57 AM
>si EHLERS
LEADERS IN PUBLIC FINANCE
Date Principal Coupon Interest Total P+I Fiscal Total
08/01/2018 - - -
08/01/2019 - - 172,372.50 172,372.50
02/01/2020 160,000.00 1.900% 86,186.25 246,186.25 418,558.75
08/01/2020 - 84,666.25 84,666.25
02/01/2021 250,000.00 2.000% 84,666.25 334,666.25 419,332.50
08/01/2021 82,166.25 82,166.25
02/01/2022 255,000.00 2.050% 82,166.25 337,166.25 419,332.50
08/01/2022 - 79,552.50 79,552.50 -
02/01/2023 260,000.00 2.150% 79,552.50 339,552.50 419,105.00
08/01/2023 76,757.50 76,757.50 -
02/01/2024 265,000.00 2.250% 76,757.50 341,757.50 418,515.00
08/01/2024 - 73,776.25 73,776.25 -
02/01/2025 270,000.00 2.350% 73,776.25 343,776.25 417,552.50
08/01/2025 - 70,603.75 70,603.75
02/01/2026 275,000.00 2.450% 70,603.75 345,603.75 416,207.50
08/01/2026 - 67,235.00 67,235.00
02/01/2027 285,000.00 2.500% 67,235.00 352,235.00 419,470.00
08/01/2027 63,672.50 63,672.50
02/01/2028 290,000.00 2.550% 63,672.50 353,672.50 417,345.00
08/01/2028 59,975.00 59,975.00
02/01/2029 300,000.00 2.650% 59,975.00 359,975.00 419,950.00
08/01/2029 56,000.00 56,000.00
02/01/2030 305,000.00 2.750% 56,000.00 361,000.00 417,000.00
08/01/2030 51,806.25 51,806.25
02/01/2031 315,000.00 2.850% 51,806.25 366,806.25 418,612.50
08/01/2031 47,317.50 47,317.50
02/01/2032 325,000.00 2.950% 47,317.50 372,317.50 419,635.00
08/01/2032 - 42,523.75 42,523.75 -
02/01/2033 , 335,000.00 3.050% 42,523.75 377,523.75 420,047.50
08/01/2033 37,415.00 37,415.00
02/01/2034 345,000.00 3.150% 37,415.00 382,415.00 419,830.00
08/01/2034 - 31,981.25 31,981.25
02/01/2035 355,000.00 3.250% 31,981.25 386,981.25 418,962.50
08/01/2035 - 26,212.50 26,212.50
02/01/2036 365,000.00 3.300% 26,212.50 391,212.50 417,425.00
08/01/2036 20,190.00 20,190.00
02/01/2037 375,000.00 3.400% 20,190.00 395,190.00 415,380.00
08/01/2037 13,815.00 13,815.00 '
02/01/2038 390,000.00 3.450% 13,815.00 403,815.00 417,630.00
08/01/2038 - 7,087.50 7,087.50 -
02/01/2039 405,000.00 3.500% 7,087.50 412,087.50 419,175.00
Total $6,125,000.00
$2,244,066.25 $8,369,066.25
Yield Statistics
Bond Year Dollars
Average Life
Average Coupon
$73,657.50
12.026 Years
3.0466229%
Net Interest Cost TIC)
True Interest Cost (TIC)
Bond Yield for Arbitrage Purposes
All Inclusive Cost (AIC)
IRS Form 8038
3.1297780%
3.1200330%
3.0170346%
3.2223400%
Net Interest Cost
Weighted Average Maturity
Series 2018 GO CIP Bds - 1 SINGLE PURPOSE 1 1/30/2018 1 9:57 AM
0 LEADERS IN PUBLIC FINANCE '
3.0466229%
12.026 Years
EHLERS
Mendota Heights Fire Station
Mendota Heights
City Council
MHFD Fire Station
February 7, 2018
Mendota Heights Fire Station
Agenda
Lexington Avenue
• Programming
• Preliminary Site Plan & Floor Plans
• Preliminary Exterior Images
• Critical Elements
• In-Station Training Features
• Preliminary Cost Estimates
• Project Delivery Methods
• Project Timeline
• Questions
Mendota Heights Fire Station
Programming
Programming –Space Needs
Lexington Avenue
New:
Public Access: 2,085 SF
Admin Spaces: 2,278 SF
Living Spaces: 3,563 SF
Apparatus Bays: 2,639 SF
Training: 2,577 SF
HealthEast Garage: 1,351 SF
Mech/Elec: 250 SF
Subtotal: 14,743 SF
Existing:
Apparatus Bays: 7,860 SF
Support: 3,358 SF
HealthEast Space: 935 SF
Mech/Elec: 244 SF
Subtotal: 12,397 SF
Total: 27,140 SF
Mendota Heights Fire Station
Increase from
Preliminary
plan: 5,363 SF
Preliminary Site Plan
Overall Site Plan
Lexington Avenue
Private Property
(Agricultural)
City Property
(Future Use)
City Property
(Future Use)
Mendota Heights Fire Station
Preliminary Floor Plans
First Floor –Overall
Mendota Heights Fire Station
Preliminary Floor Plans
First Floor –Admin
Mendota Heights Fire Station
Preliminary Floor Plans
First Floor –Dorms/Fitness
Mendota Heights Fire Station
Preliminary Floor Plans
First Floor –Apparatus Bays
Mendota Heights Fire Station
Preliminary Floor Plans
First Floor -Support Areas
Mendota Heights Fire Station
Preliminary Floor Plans
First Floor -HealthEast
Mendota Heights Fire Station
Preliminary Floor Plans
Second & Third Floors
Mendota Heights Fire Station
Preliminary Exterior Image
Northeast Perspective
Mendota Heights Fire Station
Preliminary Exterior Image
Southeast Perspective
Mendota Heights Fire Station
Preliminary Exterior Image
Northwest Perspective
Mendota Heights Fire Station
Preliminary Exterior Image
Digital Signage Perspective
Mendota Heights Fire Station
Critical Elements
Classroom/EOC & Conference
Mendota Heights Fire Station
• Design to allow for public
use and other City training
needs
• Seating for 40
• Ability to split room into two
rooms with operable partition
• Storage space for EOC
equipment
• Conference Room large
enough for Command and
Department meetings
• New furniture with flexibility
to use for two EOC rooms
• New phones and monitors
needed to handle
EOC/Command areas
Critical Elements
Admin Offices
Mendota Heights Fire Station
• Six offices to meet
department needs
• Captains have a defined office
with their own storage
• Operational groups have
defined offices with their
own storage
• Provides supervision and
security of public entrance
• Centralized Work Room for
printers and office supplies
• New computer Training Room
for simulation training
• New furniture is needed for
new and additional offices
• New phones and monitors
Critical Elements
Fitness Room
Mendota Heights Fire Station
• Allows firefighters to
exercise within the fire
station with ability to
respond if needed
• Large enough to accommodate
various equipment to be
beneficial
• Designed for potential use by
City employees
• New fitness equipment
• New card access, phone and
monitor
Critical Elements
Training Tower
Mendota Heights Fire Station
• Allows firefighters to train
safely in well lit, slip
resistant designed spaces in
a permanent facility
• Ability to simulate commercial
and residential fire attack
through tower
• Ability to simulate ladder
truck rescue drills
• Allows for exterior as well
as interior rope rescue
training
• Allows for interior year
round training due to heated
space with drainage for hose
drills
In-Station Training Features
Interior Training Examples
Mendota Heights Fire Station
• Provides safe, well lit areas for firefighters to train
• Potential to share training elements with police or
other fire departments
• More efficient use of volunteer time
• Better trained firefighters
• Recruitment and retention benefits
• Eliminate rental training cost for department
• Firefighters remain on site and available to respond
• Many elements use existing space with minimal added
cost
Cost Estimate
Cost Estimate -Preliminary
Preliminary Estimate presented at
December Council Study Session
$4,300,000 Hard & Soft Cost
$ 360,000 Dorm Addition
$4,660,000 Combined Total Cost
Mendota Heights Fire Station
Cost Estimate
Cost Estimate -Schematic
Scope changes between Preliminary
Diagram and Schematic Plans
• Based on input from in-depth design
committee meetings
• Incorporate some critical elements
not in earlier architect’s designs
• Response to further investigation and
discovery of certain existing facility
and equipment’s aging condition
Mendota Heights Fire Station
Cost Estimate
Cost Estimate -Schematic
Fitness Room and Equipment
• Not included in previous designs, but
Critical for Firefighter health
• Includes both larger building area,
fitness flooring, and cost of a
reasonable mix of fitness equipment
Mendota Heights Fire Station
Cost Estimate
Cost Estimate -Schematic
Expanded Office and EOC Needs
• Evaluated the office needs for
departmental leadership
• Provided public entrance lobby to
meet NFPA and DHS requirements
• Upgraded training room and
conference room to meet EOC needs –
furniture, technology, Flexibility
Mendota Heights Fire Station
Cost Estimate
Cost Estimate -Schematic
Existing Equipment & Facility Upgrades
• Detailed review of existing systems
found elements that did not meet the
long term needs of the station
– Existing HVAC Rooftop Units
– Existing Radiant Heat in Apparatus Bays
– Replace existing generator with new generator
with capacity to handle the new facility
– Telephone and Computers outdated or not
expandable
– Trash enclosure required (not existing)
– Pavement replacement expanded
– Existing exterior façade improvements
Mendota Heights Fire Station
Cost Estimate
Cost Estimate -Schematic
Mendota Heights Fire Station
Preliminary Cost Estimate
$4,660,000 Hard & Soft Cost
Additional Costs
$ 130,000 Fitness Room & Equip
$ 330,000 Expanded Office/EOC
$ 260,000 Exsting Improvements
$5,380,000 Combined Total Cost
Contingency Recommendation (10%)
$ 538,000
Cost Estimate
Cost Comparisons
MHFS Building Costs – Schematic
Estimate
Gross Area = 27,140 sf
Cost / SF = $192
All New Fire Station Buildings
Cost / SF = $295 (Eagan, 2016)
Cost / SF = $315 (1/18 Dollars)
Mendota Heights Fire Station
Construction Delivery Method
CM vs GC Comparison
Benefits of Construction Manager
• Selected by quality, not public bid
• Site Superintendent – Daily quality /
schedule representing City
• Represent the City along with
Architect, part of Team – cost control
• Involved during construction
documents phase – minor cost
Benefits of General Contractor
• Single contract with City
• Can include small subcontractors (?)
Mendota Heights Fire Station
Project Timeline
Schedule
Mendota Heights Fire Station
• Completion of design
• Accurate final budget
• Critical construction phasing start date
• Drawings can be used immediately or in 2019
• 2018 construction start saves money over 2019 start
Questions
Mendota Heights Fire Station