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HomeMy WebLinkAbout1/2/2003 - STAFF REPORTS (13) DATE: January 2, 2003 TO: City Council FROM: Executive Director- Airports CONVENTION CENTER EXPANSION (PHASE 1) ADDITIONAL APPROPRIATION RECOMMENDATION: It is recommended that City Council approve a Budget Amendment to appropriate funds from the General Fund Reserves for the First Phase Convention Center Expansion Project (CC P-1). SUMMARY: This action will put in place the remainder of the funding necessary to complete the CC P-1 project. BACKGROUND: In the next few days, the CC P-1 project will begin construction. The funding of this work and all the related soft (consulting) costs have been previously allocated by City Council from the collection of incremental Transit Occupancy Tax (TOT); incremental being those collections between the old TOT rate and the voter- approved increased TOT rate. In the current fiscal year, the City budgeted $1,697,071 in Account No. 261-4282- 50003. Based on the actual bids we have received to date and estimates of trades yet to be bid, the following updated project estimate is provided: Meeting Item Kitchen Rooms Hard Construction Cost $1,246,993 $1,165,357 10% Contingency 124,699 116,536 Turner General Conditions 117,417 110,538 Turner Fee 2.9% 42,342 39,570 Project Representative 31,625 25,875 Architectural/Construction Period/HNTB 24,800 14,000 General Liability Insurance 972 909 Survey 4,000 1,000 Materials Testing/Inspection 18,000 12,000 Miscellaneous Expenses 10,000 8,000 Project Subtotal $1,620,848 $1,493,785 PROJECT TOTAL $3,114.633 With the up to date estimate at $3,114,633, less the current funding level of $1,697,071,the project is approximately$1.425 million short of appropriated dollars. The attached Budget Resolution, offered for City Council consideration, would appropriate the additional dollars from General Fund Reserves with the anticipation that it will be repaid from fiscal 03/04 incremental TOT funds or future bond proceeds. 104, Convention Center Expansion(Phase 1) Additional Appropriation January 2, 2003 Page 2 These funds are available as it is anticipated that the second phase debt service, which will depend on the incremental TOT for a repayment funding source, will not begin until sometime in fiscal 04/05. BAN ��2 APPROVED: ....-dZC?of TkL' MOZ5T,h. A. E. THOMAS M. KANARR Executive Director - Airports Director of Finance and Treasurer APPROVED- =��..- City Manager Attachment: 1. Budget Amendment A RESOLUTION NO. OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR THE 2002-03 FISCAL YEAR. WHEREAS Resolution 200357 approving the budget for the fiscal year 2002-03 was adopted on June 5, 2002; and WHEREAS the City Manager has recommended, and the City Council desires to approve, certain amendments to said budget; NOW THEREFORE BE IT RESOLVED that the Director of Finance is authorized to record inter-fund cash transfers as required in accordance with this Resolution, and that Resolution 20357, adopting the budget for the 2002-03 fiscal year is hereby amended as follows: SECTION 1. ADDITIONS Fund Activity Account Amount 261 4282 50003 $1,425,000 Capital Projects Convention Center Bldg & Equip Phase I Purpose: To provide additional funding needed for Phase I of the Convention Center expansion — kitchen remodel and redo of Springs Theatre. SECTION 2. SOURCE The Advance from the General Fund will be repaid either from future TOT Collections or from Bond Proceeds. Fund Activity Account Amount 001 12415 $1,425,000 General Fund Advances to Other Funds Adopted this day of 12003. AYES: NOES: ABSENT: ATTEST: CITY OF PALM SPRINGS, CALIFORNIA By City Clerk City Manager REVIEWED AND APPROVED 105