HomeMy WebLinkAbout9/8/2010 - STAFF REPORTS - 5.C. V AA M S,6
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CALI FR°tRN�P CITY COUNCIL STAFF REPORT
DATE: September 8, 2010 CONSENT CALENDAR
SUBJECT: ANIMAL CARE FACILITY PROJECT - LOAN
FROM: David H. Ready, City Manager
BY: Owner's Representative
SUMMARY
The proposed action would result in $650,000 being loaned to the Animal Shelter
Project.
RECOMMENDATION:
Adopt Resolution No. , "A RESOLUTION OF THE CITY COUNCIL, OF THE CITY
OF PALMS PRINGS, CALIFORNIA APPROVING A LOAN TO THE ANIMAL CARE
FACILITY PROJECT OF $650,000 FROM THE PROCEEDS OF THE SALE OF
WHITEWATER STOCK CURRENTLY HELD IN THE TRUST AND AGENCY
ACCOUNT AND APPROPRIATIING SAID FUNDS FOR CONSTRUCTION."
STAFF ANALYSIS:
On May 19, 2010 the City Council awarded the contract for construction of the Palm
Springs Animal Shelter Project. As part of the award staff was directed to reduce the
overall cost of the project by $1,656,948 or provide additional funds for the Friends of
the Animal Shelter. The Friends, as of the writing of this report, had collected and
deposited with the City $450,000, thus reducing the budget deficit to $1,216,546. Staff
has identified furniture, fixtures and equipment, valued at $523,272, which has been
withheld from the purchasing process until such time as funds are raised to cover it,
thus reducing the deficit to $683,676. As of this report preparation a first change order,
reducing the project by at least $38,000, is in the works to reduce the deficit to
$655,273.
ITEM NO.
City Council Staff Report
September 8, 2010 - Page 2
Animal Shelter Loan
A summary of the above project costs as well as funding sources is as follows:
Original Contract Award $5,919,000
Amount
Project Soft Costs 416,192
Project Utility Costs 110,000
Owner FF&E costs 528,546
Construction Contingency 395,755
Total Project Costs $7,369,493
Project Funding Sources
Bond Proceeds 4,988,947
Sustainability 700,000
Transfer
Friends of the Animal Shelter Fund Raising 450,000
SCE 14,000
Grant
Total Available 6,152,947
Funds
Project Surplus of(Deficit) ($1,216,546)
Further
Adjustments
Change Order 1 Reductions (pending) 38 000
Current Deficit ($1,178,546)
To Complete the Project
Proposed Loan 650,000
Friends Fund the FF&E 528,546
Project cuts beyond the initial change order to cover the deficit have been identified
such as eliminating all landscaping, shelling out the medical wing, deleting all stainless
steel cabinetry, deleting "get acquainted areas" and the adoption garden, deleting all
fencing, and deleting the freezer. Many of these cuts will not bring full value as sub-
contractors have been quickly buying their construction materials to avoid the price
escalation that is currently occurring. These cuts can be implemented now and added
back at a later time if fund raising is timely. However, staff has estimated that $650,000
in cuts, due to material and labor escalation as well as out-of-sequence-construction
cost premiums, would probably cost close to $900,000 to add-back.
Staff has identified the proceeds from the sale of the Whitewater Stock as a possible
funding source for a loan up to $650,000. The loaning of these funds now would
eliminate the need for cutting the project further and would mean that the Friends fund
raising efforts would be going towards funding the furniture, fixtures and equipment
currently cut from the project and then repaying the loan.
2
City Council Staff Report
September 8, 2010- Page 2
Animal Shelter Loan
FISCAL IMPACT:
Staff recommends the source of funding to be a $650,000 loan from the $1,361,512.25
received from the sale of Whitewater stock. A Resolution establishing the parameters of
the loan and appropriating the funds is attached for City Council consideration. Please
note that as additional funding comes from the Friends of the Animal Shelter, it will first
be applied to add back the FF&E cuts and then to pay off the loan.
Allen Smoot, Owner's Representative
David H. Ready ager
Attachment: Resolution
RESOLUTION NO.
OF THE CITY COUNCIL OF THE CITY OF PALM
SPRINGS, CALIFORNIA APPROVING A LOAN TO
THE ANIMAL CARE FACILITY PROJECT OF
$650,000 FROM THE PROCEEDS OF THE SALE
OF WHITEWATER STOCK CURRENTLY HELD IN
THE TRUST AND AGENCY ACCOUNT AND
APPROPRIATING SAID FUNDS FOR
CONSTRUCTION.
WHEREAS the Palm Springs Animal Care Facility Project, CP # 07-24, currently
has a construction funding deficit of $650,000 and a Furniture, Fixtures and
Equipment (FF&E) funding deficit of approximately $525,000; and
WHEREAS the prospect of cutting the project while a very successful funding
campaign is underway will only add to the funding needs, as to add back work
later will result in a higher deficit from construction escalation and out-of-
sequence-work premiums; and
WHEREAS the recent sale of Whitewater stock has resulted in dollars being
available to assist in the development of the Animal Care Facility; and
WHEREAS to help insure the timely completion of this project, the City Council
is desirous of providing a loan to the Animal Care Facility,
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Palm
Springs as follows:
SECTION 1. That a loan of $650,000 from the proceeds of the Whitewater
stock, currently held in the Trust and Agency Account, to the Animal Care Facility
Project is hereby approved.
SECTION 2. That the loan shall be at zero interest and any fund raising
proceeds deposited with the City from the Friends of the Animal Shelter,
following the full funding of the FF&E deficit, shall be applied to pay off this loan.
SECTION 3. The $650,000 loan proceeds shall be appropriated in the
Capital Project Fund, account number 261-1395-54092.
SECTION 4. That the City Manager is hereby authorized to execute all
necessary documents on behalf of the City.
ADOPTED THIS day of September, 2010.
David H. Ready, City Manager
ATTEST:
James Thompson, City Clerk
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, James Thompson, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. is a full, true and correct copy, and was duly adopted at a
regular meeting of the City Council of the City of Palm Springs on September 8,
2010, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
James Thompson, City Clerk
City of Palm Springs, California