HomeMy WebLinkAboutJuly 16, 2007 Work SessionIY L I I
590 40th Avenue N.E., Columbia Heights, MN 55421-3878 (763) 706-3600 TDD (763) 706-3692
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ADMINISTRATION
NOTICE OF CITY COUNCIL MEETING
to be held in the
CITY OF COLUMBIA HEIGHTS
as follows:
Meeting of: COLUMBIA HEIGHTS CITY COUNCIL
Date of Meeting: MONDAY, JULY 16, 2007
Time of Meeting: 5:30 P.M.
Location of Meeting: CONFERENCE ROOM 1
Purpose of Meeting: WORK SESSION
AGENDA
Mavor
Gmy L. Peterson
Councilmembers
Tammera Ericson-Diehm
Bruce Kelzenberg
Bruce Naivrocki
Bober[ A. Will[ams
City Manager
Walt Fehs[
Generator Bids for Murzyn Hall, Municipal Service Center, and Water
Pumping Station #2
2. Infrastructure Fund 20 Year Projection (Funding)
Jamboree/Police Issues-Discussion
4. Commercial Maintenance Code Update
5. Discuss Dates for City Manager's Review
The City of Columbia Heights does not discriminate on the basis of disability in the admission or access to, or treatment or
employment in, its services, programs, or activities. Upon request, accommodation will be provided to allow individuals with
disabilities to participate in all City of Columbia Heights' services, programs, and activities. Auxiliary aids for handicapped
persons are available upon request when the request is made at least 96 hours in advance. Please call the City Council Secretary at
706-3611, to make arrangements. (TDD/706-3692 for deaf or hearing impaired only)
THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES
EQUAL OPPORTUNITY EMPLOYER
CITY COUNCIL LETTER
Meeting of: 7/16/07
AGENDA SECTION: WORK SESSION ORIGINATING DEPARTMENT: CITY MANAGER
NO: PUBLIC WORKS
I'T'EM: ACCEPTING BIDS ON THREE GENERATORS BY: K. Hansen BY: ~~
AND AWARDING A CONTRACT TO CUMMINS DATE: 7/12/0 DA ,~~/ ~
NPOWER I
Background:
h~ September of 2005 a severe thunderstorm swept through the area causing the entire City to lose power. The City Hall building, due tc
the prior purchase of a new building generator, was fully operational until power was restored. This was not the case with other City
buildings, specifically Murzyn Hall and Public Works. Both of these buildings are a vital part of City services and are part of the City's
overall Emergency Operation Plan.
Public Works is proposing to replace the 1960's generator in the City pump house at 44`x' Avenue and Reservoir Boulevard. Due to age,
and the fact it can only run one of the two pumps makes this generator insufficient. A ] 00 kW replacement generator is proposed.
The overall goal of Emergency Management staff is for the City to provide ] 00% of vital city services during, and after
emergencies. The purchaseh•eplacement of these three generators brings us closer to meeting this goal. At this time both
generators for Public Works are in the 2007 budget. The Mw•zyn Hall generator is not in this year's budget. In discussions
with generator vendors, the purchase of three generators at once will save approximately 5 - 7 % over buying them separately.
It is our recommendation that the generator for Murzyn Hall be purchased at this time with the other two due to the cost
savings, The City authorized staff to seek bids for the 3 generators at their April 9`~' meeting.
Analysis/Conclusions:
Staff prepared specifications for the supply and installation of three generators and advertised for public bidding. Eight contractors
or suppliers requested copies of the bidding documents. Six bids were received and publicly read aloud at the June 27`h, 2007 hid
opening. A copy of the complete bid tabulation is attached.
The low bid is ftom Cummings NPower out of White Bear Lake, who provides Onan Generators. The existing generator at City
Hall is an Oran generator. Staff had received pricing in 2006 on individual locations and the bids received herein represent an
approximate 8 % savings from those price quotes.
The Municipal Service Center and Water Pump Station #2 were budgeted in the 2007 adopted budget. The Murzyn Hall generator
is proposed to be funded out of the Capital hnprovements General Government Buildings Fund (fund 411). This fund was
established to fund capital improvements to the City's four major buildings. As of December 31, this fund has a balance of
$688,290.
RECOMMENDED MOTION: Move to accept bids and award the contract for the purchase of generators, including installation,
for Water Pump Station 2, Municipal Service Center and Murzyn Hall to Cummins NPower of White Bear Lake, MN, in the
amount of $163,390 and authorize the Mayor and City Manager to enter into a contract for the same and to appropriate $56,900 in
the Capital Improvements General Government Buildings fund for the Murzyn Hall generator.
COUNCIL ACTION:
Bid Opening
Stationary Generators (3)
Project #0710
June 27, 2007
Municipal
Murzyn Service Water Pumping
Bidder Hall Center Station No. 2 TOTAL BID
Cummins NPower $56,990.00 $ 59,900.00 $46,500.00 $163,390.00
Interstate Power Systems $63,078.00 $ 64,612.00 $38,093.00 $165,783.00
Mtec Electric $59,670.00 $ 65,195.00 $51,740.00 $176,605.00
Killmer Electric $63,500.00 $ 76,500.00 $45,650.00 $185,650.00
Ziegler Power Systems $74,118.00 $ 79,123.00 $57,887.00 $211,128.00
Ridgedale Electric $89,000.00 $109,000.00 $73,000.00 $271,000.00
CI`fY OF COLUMBIA HEIGHTS
Minutes of Bid Opening on Wednesday, June 27, 2007
200 7 Improvement Program
Stationary Generators (3) -City Project #07I 0
Murzyn Hall, Municipal Service Center & Water Pumping Station #2
Pursuant to an advertisement for bids for Stationary Generators (3), City Project #0710, an
administrative meeting was held on June 27, 2007 at 10:00 p.m. for the purpose of bid opening. Bids
were opened and read aloud.
Attending the meeting were:
Anna Mark, Mtec Electric
Jerry Boggs, Interstate Power Systems
Doug Eclcerman, Ziegler Power Systems
Vaughn Lenander, Ziegler Power Systems
Brian Balclc, Killmer Electric
Kevin Hansen, Public Worlcs Director
Joanne Balser, Public Works Secretary
Bids were opened and read aloud as follows: See attached Exhibit `B,' bid tabulation slieet.
Respectfully submitted,
OG~i l~iGfe~
Joanne Baker
Public Works Secretary
jb
City of Columbia Heights
Public Works Department
Worlc Session Discussion Item
Work Session Date: July 16t~', 2007
Prepared by: Kevin Hansen, Public Works Director/City Engineer
Item: City-wide Street Rehabilitation Program
Update of 20-year Financial Projection -Revenue Needs
Background:
In 1996 the City of Columbia Heights adopted Resolution No. 96-28 that initiated a Street
Rehabilitation Program. This program was set up to preserve the large investment in and extend. the
life of the local street system. Under the Street Rehabilitation Program, the City is divided into seven
zones (or areas) providing for a repeating 8-year program, with the additional year added for alleys or
other projects.
Analysis/Conclusions:
At the time that the original program was set up, a 20-year cash flow projection was prepared by
Public Works. At that time, a detailed analysis of the condition of the City streets was not available.
Therefore, assumptions were made based on the age of the street section and the likely treatment to
extend that section life. Many streets were assumed to be in satisfactory condition, with the
recommended treatment of a mill and overlay.
As the program moved into the construction phase, detailed analysis became available each year, and
staff treahnent recommendations have resulted in more partial and full reconstniction than originally
projected. Staff provided the City Council with updates of the 20-year cash flow in 2002 ((1/07/02)
and 2005 (1/17/05). With a complete 8 year cycle now completed, and work in Zones 2 & 3 cui7•ently
ongoing in the second 8-year cycle, a more accurate update of that 20-year projection has been
prepared and attached as Exhibit "A". Exhibit "A" projects out through the year 2020, carrying out
three full cycles through the 8-year citywide program. A couple of important assumptions should be
noted of Exhibit "A".
• The City pays for the first seal coat after one of the tln•ee resurfacing treatments.
• Many Zones have been split into quadrants, adding additional years to the overall program.
• The assessment policy and associated City share (percentage) remains constant over the
projection.
• Costs and revenues are estimated with an annual 3% inflation factor.
• Alley or other construction is assumed in each subsequent `off year @ $170,000 (unfactored).
This may or may not occur.
• Additional program revenue of $270,000, annually, is included from the certification of the
City's Local State-Aid System, which has to be recertified every two years and is not
guaranteed.
Worlc Session Item: City-wide Street Rehabilitation Program
Update of 20-year Financial Projection
Work Session Date: July 16`x', 2007
Page 2
In the 2002 and 2005 20-year financial projection distributed to the Council, it was reported that the
fund would be drawn into the red, or incur a negative operating balance for 5 and 8 consecutive years,
respectively, but end the 3'~`~ eight year program cycle in 2020 with a fiend balance of $450,000 -
$550,000.
Exhibit `A' shows that the program is now expected to incur negative operating losses for 12 of the
last 13 years. There are two main reasons for this:
1. Accurate analyses of the existing street conditions have resulted in more partial and full
reconstruction than originally projected.
2. Constntction costs have experienced significant increases over the last several years.
To financially sustain this extremely important program, additional revenue is needed. We are
currently applyn~g for and receiving the maximum amount of State-Aid funds with the certification of
our system. General Obligation (G.O.) Bonding is recommended to provide the necessary financial
support for the program. The impact of a $800,000 and $1,000,000 bond revenue are shown on
exhibits "B' and `C.'
As originally set up, the program is thought to be continuous and ongoing, but that costs should
decrease as the condition of the street is brought up and maintained at or above a reasonable level. At
the end of three 8-year cycles, the program should have a large enough balance to continue and
sustain recommended treatments. The program will incur negative operating balances over the
remaining two fiill program cycles without additional revenue or changes to the current assessment
policy.
It is critical to recognize that infrastructure represents a huge public investment and in the long tet-~z~,
it is more cost effective to make the investment to maintain streets at a satisfactory or good condition
level as opposed to letting the streets go and bear that extraordinary cost in the future.
Recommended Motion:
Authorize the sale of $1,000,000 of G.O. Bonds with the proceeds dedicated to the Infrastructure
Fund 430.
Attaclunents: Exhibit `A' - 2007 20-year cash flow update
Exhibit `B' - 2007 20-year cash flow update w/$800,000 new revenue
Exhibit `C' - 2007 20-year cash flow update w/$1,000,000 new revenue
2007 Jamboree Activity OT Tabulation
Wed June 20
On duty officer Korts (Shrs)
Thur June 21
OT Sturdevant (5.5 hrs)
Fri June 22
Parade and Carnival OT 76.00 Officer OT
7.25 CSO OT
On duty officers Johnston/Hanly (11.Shrs)
Sat June 23
Carnival/Fireworks
On duty officer
Sun June 24
On duty officer
38.5 Officer OT
7.0 CSO OT
Hanly (Shrs)
Bugos (Shrs)
Sub Total:
Officers (OT) (figured at Officer Top Patrol OT Rate w/o benefits):
120.00 hrs @ $42.83/hr = $5139.60
CSOs (OT) (average of the 2 CSO's OT wage rates w/o benefits):
14.25 hrs @ $23.34/hr = $332.60
On Duty Officer costs (based on Top Patrol Rate w/o benefits):
26.50 hrs @ $28.55/hr = $756.58
Total OT cost: $5472.20
Total ON duty costs: 756.58
Grand Total: $6228.78
NOTE: Above costs do not include 11 hrs. invested by Chief and Captain during
the activities.