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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 Visit Ow• Website at: www.ci.colunabia-heights.mn.c~s 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.