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Library Renovation ProjectTHE CI'T'Y OF DUB E Masterpiece on the Mississippi Carnegie-Stout Public Library 360 West 11th Street Dubuque,lowa 52001-4697 (563) 589-4225 office (563)589-4217 fax www.dubuque.lib.ia.us Dubuque AIFMIdiCe lull I®' Carne ie-Stout 8.- 2007 PUBLIC LIBRARY To: The Honorable Mayor and City Council Members From: Alan Avery, Library Board of Trustees President and Library Board Members ~' Re: Resolutions -Library Renovation Date: February 13, 2008 INTRODUCTION The Mayor and City Council has been extremely supportive of the Library's renovation project, and we are most grateful for your support. Without it, the project would have remained a distant wish instead of an attainable goal. Most recently -and unexpectedly - we learned that the City has requested an additional $500,000 for the project in this year's CIP budget. Thank you. We understand the tremendous demand for CIP money and the budget challenges the City faces. Under those circumstances, we are even more grateful for additional financial support. REQUEST With your approval the enclosed resolutions will initiate the public bidding procedure for the Carnegie-Stout Public Library F.enovation Project. The Library Board of Trustees requests your approval for this process to begin. REASONS FOR THE REQUEST - Cost containment. The Library renovation project was originally scheduled to begin construction in September 2007. After speaking with the City Manager the Library Board set a new construction target date to provide time for the renovation capital campaign to move closer to its goals and thereby increase the comfort level in making the decision to move forward. A revised estimate of probable cost was developed based on the new target date. Costs increased about $250,000 from the first estimate and will require evaluation again in April if the target date is moved back again. - Favorable bidding climate. Durrant Group is the project:'s construction management firm. Please see the attached letter from Jim Kolf, which expresses a. professional opinion that encourages us to request your approval of the attached resolution. CAPITAL CAMPAIGN STATUS REPORT Please refer to the attached capil:al campaign status report. The report indicates the campaign is $1,351,000 short of meeting private fundraising's share of project costs. In his January 16 memo and in conversations with Library staff, the City Manager expressed his concern about the City's financial liability if the project were to move forward without having this shortfall addressed. That is a valid concern, and we intend to address it here. The following section outlines vvhy the Board is confident the capital campaign will reach its fundraising goal. PROJECTIONS FOR REACHING PROJECT COSTS Capital Campaign The capital campaign is scheduled to conclude most activities by the end of March. However, follow up will continue beyond that tirrle. The campaign is divided into divisions, and the following projections are our best estimate; of additional funds that are actively being pursued and the potential from each division* Lead and Major Gifts - $25, 000 and up $1,000,000 Community Gifts - $2, 000 to $2~4, 999 300,000 Special Gifts - $1 - $1,999 100,000 Total 1 500 000 * Estimates provided by Trustee Diann Guns, who is currently overseeing overall campaign activities. Kresge Challenge Grant The Library has applied for a $7'00,000 Kresge Challenge Grant. Based on continued requests for updates on the project and our progress to date, we are cautiously optimistic that the grant will be awarded. Kresge has indicated in writing that its decision will be communicated to the Library no later than the last week in March. If the grant is awarded, there are; conditions. The grant is a challenge grant, designed to help a community reach the end of its ;;oal after the community has demonstrated 1) its need for financial assistance and 2) its ability to raise most of its financial goal. Service People Integrity Responsibility Innovation Teamwork The Library project cannot complete its fundraising sooner than 6 months nor longer than 18 months after the award is granted. This has implications that we will have to deal with if and when the award is granted. Suffice to say, $700,000 would be most welcome, and we will do whatever it takes to work within the parameters of the grant if we are fortunate enough to receive it. Conclusion The Board is confident the private fundraising goals of this project will be met through the capital campaign, a Kresge grant, or a c;ombination of the two. WHAT HAPPENS IN MARCH? If the Council grants our request and allows the project to go to bid, the Board commits to provide the following information prior to the awarding of bids: 1) An update on fundraising activities to determine how much of the $1,351,000 in project costs yet to be raised at this time has been raised. 2) An update on the status of the Kresge Challenge Grant. 3) A list of assets that could be used as collateral on a loan to cover any potential shortfall in private fundraising. This will provide a safety net to the City should private fundraising and grants ultimately fall short of meeting project costs. If, after reviewing the information listed above, the Council is not comfortable in awarding bids in March and allowing the project to move forward, the Council has the option of declining to award the bids. Thank you again for your continued support of the Carnegie-Stout Public Library and for considering our request. Service People Integrity Responsibility Innovation Teamwork Crate the Nest Chapter CREATE THE NEXT CHAPTER PROJECT/CAMPAIGN STATUS REPORT FEBRUARY 12, 2008 THE PROJECT Project cost* $6,800,000 ' City funding $2,700,000 General 450,000 Green design enhancements 500,000 General-approved in 2008 2 3,650,000 Balance 3 150 000 ' Latest figures provided by City Engineer's office. z Pending certification of City budget in March 2008. THE CAMPAIGN -INITIAL GOALS Campaign goal $3,200,000 Share of initial costs of $6.4 million s 500,000 Endowment 4 Total $3,700,000 s Based on original City contribution of $2.7 million plus $450,000. a Optional, except for funds donated through the Community Foundation of Greater Dubuque. THE CAMPAIGN REQUIREMENTS TO COVER CURRENT PROJECT COSTS Campaign share of project costs $3,150,000 Less funds raised to date, available for project S 1,799,000 Balance remaining to cover project costs $1,351,000 s Total of $1,834,000 less $35,000 donated through Community Foundation of Greater Dubuque. RATIOS Campaign raised /Meet share of project costs = 57% Campaign raised + City Pledge /Total project costs = 80% February 12, 2008 D U R K A N _l, Susan Henricks Carnegie-Stout Public Library 360 West 11th Street Dubuque, Iowa 52001 700 Locust Street Suite 942 RE: Carnegie-Stout Public Library Renovation Dubuque,lA 52001 T 563.583.9131 Susan: F 563.557.9078 Last month I strongly recommended that we release the project to bidders in January and ahead of www.durrant.eom the 100% commitment of funds. I made this recommendation because of the favorable bidding market in Dubuque at the time. This morning I made calls to some of the contractors that represent the larger contracts for the project and the contractors that I believe are likely to be awarded this work. I asked them about their current bidding situation and workload and what they anticipate or know ~of that will be coming out in the next couple of months. These were some of their comments: • They all indicated there is little work of any magnitude in Dubuque to bid at this time. • Most said they ~u^e having to bid more work out of town and are seeing a greater number of contractors submitting bids on the same projects. Architecture • Projects cominf; out this spring for summer work are anticipated to be down somewhat Engineering from past years but all knew of projects that should bid in the April and May timeframe. Planning • All said they felr. this is still a good time to put this project out fox bidding. A couple said Project Delivery they certainly will be bidding work tighter considering the market. One contractor did say last month would have been better. Financing . Only one of the. contractors I spoke to said that they are still pretty busy at this time. Interior Design Graphic Design Based on this research I again recommend we release the project this month for bidding in March. If we delay another month or two we will certainly face a heaver bidding load that will likely reflect inflated pricing. Also, last month the City Manager expressed his concems with bidding a project that might not be able to go to contract due to a shortfall in funding. I can appreciate the Ciry Manager's concerns and would never recommend a project moving forward without a solid plan to obtain funding. Most contractors are accustomed to bidding a certain percentage of their work on a speculative Denver, CO basis. This could include projects that require firm bids to present for funding consideration, projects that are a go/no-go based on bids or GMP, or even projects that could fall apart from Des Moines, IA factors external to their project. I don't believe this project falls into the speculative category nor Dubuque, IA do I think contractors would see it that way. With the options you have identified for the Hilo, HI remaining funds, I believe there is little risk in the project not moving forward providing bids Honolulu, HI received are within the project budget. Madison, WI Sincerely, Minneapolis, MN Phoenix, AZ St. Louis, MO Tucson, AZ F. James Kolf, CCM, LEED® Principal Cc: B. Hamus S. Brown R. Golus P:\Projects\0712850 - Carnegie-Stout Renovauons-CM\WP\CORR\OWNER\B~dding Letter to Susan 2.1^_.08.doc DUB . E Dubuque Masterpiece on the Mississippi AM-Am~icaCay Carnegie-Stout Public Library 360 West 11th Street Carnegie-Stout Dubuque, lov~a 52001-4697 (563) 589-4225 office PUBLIC L I B R A R Y 2~~7 TO: Honorable Mayor and City Council Members FROM: Alan Avery, Library Board of Trustees President and Board of Trustees Members SUBJECT: Carnegie-Stout Public Library Renovation Project CIPs 1001141 and 1011141 DATE: February 12, 2008 The enclosed resolutions authorize the public bidding procedure for the Carnegie-Stout Public Library Renovation Project. BACKGROUND Prior to the start of design work on the renovation project, the Carnegie-Stout Public Library Board of Directors conducted a community survey to determine how best the Library could meet the needs of its patrons. The survey results netted a performance confidence level of ±95%. Over 66% of the survey respondents answered the following community survey question with a rating of "Very Important" and "Important" - "How important do you think these renovations are to the Library's ability to continue offering its current level of services, as well as improving its service to the citizens of Dubuque?". Survey respondents also repeatedly mentioned the need for "more computers/internet access" and a "more comfortable, inviting environment". DISCUSSION The Carnegie-Stout Public (Library Renovation Project will not only maximize use of space to accommodate the growing collections and expanded offering of services, it will also restore "a cultural and historic treasure of Dubuque to its original splendor". The project will include: - A complete renovation of all public and staff spaces. - Update of the obsolete HVAC system to one that is designed to be environmentally efficient. - New furnishings and equipment. - Expanded wireless access and computer services. - Replacement of the existing elevator - New roof on the original building - New sidewalk and steps including a snow melt system for the newer building. - Upgraded security systerrl. - Reopening of the stairswell to the second level in the original building. - Reopening of the original mezzanine and uncovering of the rear skylight in the original building. The project will be designed and constructed in such a manner so that the Library can file for the U.S. Green Building Council's LEED (Leadership in Energy & Environmental Design) certification. If granted, Carnegie-Stout Public Library will become the first library in the state of Iowa to be LEED-EB (existing building) certified. PROJECT SCHEDULE The schedule for the project is as follows: Initiate Public Bidding Process February 18, 2008 Publish Notice to Bidders, Advertise for Bids February 22, 2008 Publish Public Hearing Notice on Plans & Specs February 22, 2008 Public Hearing on Plans & Specifications March 3, 2008 Pre-Bid Construction Conference March 13, 2008 Receipt of Bid Proposals (Bid Letting) March 26, 2008 Award Construction Contract April 7, 2008 Project Completion Date June 29, 2009 RECOMMENDATION It is recommended that the City Council give preliminary approval to the construction plans and specifications for the Carnegie-Stout Public Library Renovation Project, and to establish the date of February 4, 2008 for the public hearing and hereby authorize the City Clerk to advertise for bid, proposals. BUDGET IMPACT The estimate of probable coast for the Carnegie-Stout Public Library Renovation Project is summarized as follows: PROJECT COSTS ESTIMATE Construction Hard Costs Base Construction Work $ 4,851,267* Contin enc - 6% 291,076 Hazardous Material Abater~nent 3,400 Fixtures, Furnishin s & E ui ment 692,680 Total -Bid Project Cost 5 837 953 `Includes 4% bid contingency O tional Add Alternates: 1 Re lace North Sk li• ht + $ 250,000 2 New Windows on Locus St. for Tech. Services Area + $ 30,000 3 Gra hic Wall Coverin + $ 10,000 4 Move Admin. Offices to 3~d Floor + $ 203,000 O tional Deduct Alternate: 3 Reduce IT Infrastructure Re lacement Work - $ 127,000 Pro'ect Soft Costs En r./Arch./LEED Cert. Fees $ 584,967 Construction Mana ement Fees $ 327,628 Cit En ineerin Fees $ 30,000 Hazardous Material Abaternent Testin $ 2,800 Misc. Costs -Builders RisEc Ins., Cleanin , Tem . Si ns, etc. $ 16,000 Total - Pro'ect Soft Costs $ 961,395 TOTAL PROJECT COST $ 6,799,318 The project funding summary is as follows: Fund CIP No. Fund Descri tion - Amount 1001141/ GO Bond (TIF~ Abated) $ 1,900,000* 1011141 General Funds $ 1,356,743* '`The access to use of matching funds is contingent upon 100% funding of the Total Project Cost by supplemental contributions from the fund-raising campaign. TOTAL PROJECT BUDGET Total -Bid Project Cost $ 5,837,953 Remaining Engr./Arch./LEED Cert. Fees to be Billed $ 307,033 Remaining Construction Management Fees to be Billed $ 297,628 Remaining City/Misc. Fees to be Billed $ 47,100 Subtotal -Future Costs $ 6,489,714 City Contributed -Available Funding $ 3,046,041 Needed Private Fund-Raising Matching Funds $ 3,443,673 ACTION TO BE TAKEN The City Council is requested to establish the date of the public hearing and to authorize the City Clerk to advertise for proposals through the adoption of the enclosed resolutions. cc: Michael C. Van Milligen, City Manager Gus Psihoyos, City Engineer Jenny Larson, Budget Director THE CITY OF Dubuque I~~~ E ~lll.~~ Masterpiece on the Mississ%~pi 2007 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Carnegie-Stout Public Library Renovation Project CIPs 1001141 and 1011141 DATE: February 13, 2008 The Carnegie-Stout Public Library Board of Trustees is requesting initiation of the public bidding procedure for the Carnegie-Stout Public Library Renovation Project. The City of Dubuque is providing matching funds to a fundraising campaign to fund the $6,799,318 in total project costs. The fundraising campaign is not yet complete and there are not commitments to fund the total project costs. I have spoken with City Attorney Barry Lindahl and he advises that the City should not award a contract without certainty that the funds are available. The only other option would be to cause the bidders to go through the difficult and time- consuming process of bidding the job and then rejecting the bids if the money is not available. I believe that this will limit the number of bidders, and that it will undermine the credibility of the City as contractors look at bidding future jobs. There is no compelling reason to bid this project at this time. The architect on the project, Jim Kolf of Durrant, said that he contacted the contractors that he believes are most likely to bid this job. Thee responses were as follows: • They all indicated there is little work of any magnitude in Dubuque to bid at this time. • Most said they are hawing to bid more work out of town and are seeing a greater number of contractors submitting bids on the same projects. • Projects coming out tf its spring for summer work are anticipated to be down somewhat from past years, but all knew of projects that should bid in the April and May timeframe. • All said they felt this is; still a good time to put this project out for bidding. A couple said they certainly will be bidding work tighter considering the market. One contractor did say last month would have been better. • Only one of the contractors said that they are still pretty busy at this time. As you evaluate these responses, remember that all these contractors are basing their opinions on the City of Dubuque's reputation, and therefore, they are assuming the City will award the bids. Library Board President Alan Avery's solution to the money not being available at the time of bid award is that the Library Board will provide "A list of assets that could be used as collateral on a loan to cover any potential shortfall in private fundraising. This will provide a safety net to the City should private fundraising and grants ultimately fall short of meeting project cost:>." Now the City Council has two policy decisions to make. 1. Should a project that is over $1 million short of funding be put out to bid? 2. Should the City mortgage Library assets, which I assume is some or all of the artwork owned by the Library, that would then be sold if the fundraising campaign is unsuccessful? I respectfully recommend that the Mayor and City Council do not approve the request from the Library Board of Trustees to initiate the public bidding procedure until the funds have been raised to completE; the project. ,,~ ~_ Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Susan Henricks, Library Director Alan Avery, President, Library Board of Trustees ~~~ '~ ~ Dubuque ~~,P l 0 RF Mc~st~rpiecc an the Mississi~~~i All-AmericaC" Camege-Stout Public Library 360 West 11th Street ~ ~•°.; $& = YA ~ ~ ~,E~ (, Dubuque, Iowa 52001-4697 a ~,:.~~ ~ ,, (563) 589-4225 office PUBLIC L I B R A R Y 2007 TO: Honorable Mayor and City Council Members FROM: Alan AvE:ry, Library Board of Trustees President and Board of Trustees Members SUBJECT: CarnegiE:-Stout Public Library Renovation Project CIPs1001141 and 1011141 DATE: February 12, 2008 The enclosed resolutions authorize the public bidding procedure for the Carnegie-Stout Public Library Renovation Project. BACKGROUND Prior to the start of design work on the renovation project, the Carnegie-Stout Public Library Board of Directors conducted a community survey to determine how best the Library could meet the needs of its patrons. The survey results netted a performance confidence level of ±95%. Over 66% of the survey respondents answered the following community survey question with a rating of "Very Important" and "Important" - "How important do you think these renovations are to the Library's ability to continue offering its current level of services, as well as improving its service to the citizens of Dubuque?". Survey respondents also repeatedly mentioned the need for "more computers/internet access" and a "more comfortable, inviting environment". DISCUSSION The Carnegie-Stout Public Library Renovation Project will not only maximize use of space to accommodate the growing collections and expanded offering of services, it will also restore "a cultural and historic treasure of Dubuque to its original splendor". The project will include: - A complete renovation of all public and staff spaces. - Update of the obsolete HVVAC system to one that is designed to be environmentally efficient. - New furnishings and equipment. - Expanded wireless access and computer services. - Replacement of the existing elevator - New roof on the original building - New sidewalk and steps iincluding a snow melt system for the newer building. - Upgraded security systerri. - Reopening of the stairswE:ll to the second level in the original building. - Reopening of the original mezzanine and uncovering of the rear skylight in the original building. The project will be designed and constructed in such a manner so that the Library can file for the U.S. Green Building Council's LEED (Leadership in Energy & Environmental Design) certification. If granted, Carnegie-Stout Public Library will become the first library in the state of Iowa to be LEED-EB (existing building) certified. PROJECT SCHEDULE The schedule for the project is as follows: Initiate Public Bidding Process February 18, 2008 Publish Notice to Bidders, Advertise for Bids February 22, 2008 Publish Public Hearing Notice on Plans & Specs February 22, 2008 Public Hearing on Plans & Specifications March 3, 2008 Pre-Bid Construction Conference March 13, 2008 Receipt of Bid Proposals (Bid Letting) March 26, 2008 Award Construction Contract April 7, 2008 Project Completion Date June 29, 2009 RECOMMENDATION It is recommended that the City Council give preliminary approval to the construction plans and specifications for 1rhe Carnegie-Stout Public Library Renovation Project, and to establish the date of Februiary 4, 2008 for the public hearing and hereby authorize the City Clerk to advertise for bid proposals. BUDGET IMPACT The estimate of probable cost for the Carnegie-Stout Public Library Renovation Project is summarized as follows: PROJECT COSTS ESTIMATE Construction Hard Costs Base Construction Work $ 4,851,267* Contin enc - 6% 291,076 Hazardous Material Abaternent 3,400 Fixtures, Furnishin s & E ui ment 692,680 Total -Bid Project Cost 5 837 953 " Includes 4% bid contingency O tional Add Alternates: 1 Re lace North Sk light + $ 250,000 2 New Windows on Locus St. for Tech. Services Area + $ 30,000 3 Graphic Wall Coverin + $ 10,000 4 Move Admin. Offices to 3~d Floor + $ 203,000 Optional Deduct Alternate: 3 Reduce IT Infrastructure Replacement Work - $ 127,000 Pro'ect Soft Costs En r./Arch./LEED Cert. Fees $ 584,967 Construction Mana ement Fees $ 327,628 Cit En ineerin Fees $ 30,000 Hazardous Material Abatement Testin $ 2,800 Misc. Costs -Builders Rislc Ins., Cleanin ,Temp. Si ns, etc. $ 16,000 Total - Pro'ect Soft Costs $ 961,395 TOTAL PROJECT COST $ 6,799,31$ Th, e project funding summar~~ is as follows: CIP No. 1001141/ GO Bond (TIF Abated) 1011141 General Funds -- - Fund.:.:. Amount _ $ 1,900,000* $ 1,356,743* *The access to use of matching funds is contingent upon 100% funding of the Total Project Cost by supplemental contributions from the fund-raising campaign. TOTAL PROJECT`BUDGET Total -Bid Project Cost $ 5,837,953 Remaining Engr./Arch./LIFED Cert. Fees to be Billed $ 307,033 Remaining Construction (Management Fees to be Billed $ 297,628 Remaining City/Misc. Fees to be Billed $ 47,100 Subtotal -Future Costs $ 6,489,714 City Contributed -Available Funding $ 3,046,041 Needed Private Fund-Raising Matching Funds $ 3,443,673 ACTION TO BE TAKEN The City Council is requested to establish the date of the public hearing and to authorize the City Clerk to advertise for proposals through the adoption of the enclosed resolutions. cc: Michael C. Van Milligen, City Manager Gus Psihoyos, City Engineer Jenny Larson, Budget Director ~;:~ ~~. CREATE THE NEXT CHAPTER l ~ ~ ~~` PROJECT/CAMPAIGN Create the Next Chapter STATUS REPORT FEBRUARY 1 Z, 2008 THE PROJECT Project cost* $6,800,000 ' City funding $2,700,000 General 450,000 Green design enhancements 500,000 General-approved in 2008 3,650,000 Balance 3 150 000 ' Latest figures provided by City Engineer's office. Z Pending certification of City budget in March 2008. THE CAMPAIGN -INITIAL GOALS Campaign goal $3,200,000 Share of initial costs of $6.4 million 3 500,000 Endowment 4 Total $3,700,000 s Based on original City contribution of $2.7 million plus $450,000. a Optional, except for funds donated through the Community Foundation of Greater Dubuque. THE CAMPAIGN REQUIREMENTS TO COVER CURRENT PROJECT COSTS Campaign share of project costs $3,150,000 Less funds raised to date, available for projects 1,799,000 Balance remaining to cover project costs $1,351,000 s Total of $1,834,000 less $35,000 donated through Community Foundation of Greater Dubuque. RATIOS Campaign raised /Meet share c-f project costs = 57% Campaign raised + City Pledge /Total project costs = 80% rr r e cr~rx or Dus _- E Masterpiece atr tTze Mississippi Carnegie-Stout Public Library 360 West 11th Street Dubuque, Iowa 52001-4697 (563) 589-4225 office (563}589-4217 fax www.dubuque.lib. ia.us Dubuque ~~Q10RE All-America CiIY 2007 PUBLIC LIBRARY To: The Honorable Mayor and City Council Members From: Alan Avery, Library Board of Trustees President and Library Board Members Re: Resolutions -Library Renovation Date: February 13, 2008 INTRODUCTION The Mayor and City Council has been extremely supportive of the Library's renovation project, and we are most grateful for your support. Without it, the project would have remained a distant wish instead of an attainable goal. Most recently -and unexpectedly - we learned that the City has requested an additional $500,000 for the project in this year's CIP budget. Thank you. We understand the tremendous demand for CIP money and the budget challenges the City faces. Under those circumstances, we are even more grateful for additional financial support. REQUEST With your approval the enclosed resolutions will initiate the public bidding procedure for the Carnegie-Stout Public Library Renovation Project. The Library Board of Trustees requests your approval for this process to begin. REASONS FOR THE REQUEST - Cost containment. The Library renovation project was originally scheduled to begin construction in September 2007. After speaking with the City Manager the Library Board set a new construction target date to provide time for the renovation capital campaign to move closer to its goals and thereby increase the comfort level in making the decision to move forward. A revised estimate of probable cost was developed based on the new target date. Costs increased about $250,000 from the first estimate and will require evaluation again in April if the target date is moved back again. - Favorable bidding climate.. Durrant Group is the project's construction management firm. Please see the attached letter from Jim Kolf, which expresses a professional opinion that encourages us to request your approval of the attached resolution. CAPITAL CAMPAIGN STATUS REPORT Please refer to the attached capital campaign status report. The report indicates the campailm is $1,351,000 short of meeting private fundraising's share of project costs. In his January 16 memo and in conversations with Library staff, the City Manager expressed his concern about the City's financial liability if the project were to move forward without having this shortfall addressed. That is a valid concern, and we intend to address it here. The following section outlines vvhy the Board is confident the capital campaign will reach its fundraising goal. PROJECTIONS FOR REACI3ING PROJECT COSTS Capital Campaign The capital campaign is scheduled to conclude most activities by the end of March. However, follow up will continue beyond that tirrle. The campaign is divided into divisions, and the following projections are our best estimate; of additional funds that are actively being pursued and the potential from each division*: Lead and Major Gifts - $25, 000 and up Community Gifts - $2,000 to $24,999 Special Gifts - $1 - $1,999 Total $1,000,000 300,000 100,000 1 500 000 * Estimates provided by Trustee Diann Guns, who is currently overseeing overall campaign activities. Kresge Challenge Grant The Library has applied fora $700,000 Kresge Challenge Grant. Based on continued requests for updates on the project and our progress to date, we are cautiously optimistic that the grant will be awarded. Kresge has indicated in writing that its decision will be communicated to the Library no later than the last week in March. If the grant is awarded, there are conditions. The grant is a challenge grant, designed to help a community reach the end of its goal after the community has demonstrated 1) its need for financial assistance and 2) its ability to raise most of its financial goal. Service People Integrity Responsibility Innovation Teamwork The Library project cannot complete its fundraising sooner than 6 months nor longer than 18 months after the award is granted. This has implications that we will have to deal with if and when the award is granted. Suffice to say, $700,000 would be most welcome, and we will do whatever it takes to work within the parameters of the grant if we are fortunate enough to receive it. Conclusion The Board is confident the private fundraising goals of this project will be met through the capital campaign, a Kresge grant, or a combination of the two. WHAT HAPPENS IN MARCH? If the Council grants our request and allows the project to go to bid, the Board commits to provide the following information prior to t:he awarding of bids: 1) An update on fundraising activities to determine how much of the $1,351,000 in project costs yet to be raised at this time has been raised. 2) An update on the status of the Kresge Challenge Grant. 3) A list of assets that could 1'~e used as collateral on a loan to cover any potential shortfall in private fundraising. This will provide a safety net to the City should private fundraising and grants ultimately fall short of meeting project costs. If, after reviewing the information listed above, the Council is not comfortable in awarding bids in March and allowing the project to move forward, the Council has the option of declining to award the bids. Thank you again for your continued support of the Carnegie-Stout Public Library and for considering our request. Service People Integrity Responsibility Innovation Teamwork February 12, 2008 ~ ~1 ~~ ~ ~ ~ ~ ~ Susan Henricks - Carnegie-Stout Public Library 360 West ll~h Street Dubuque, Iowa 52001 700 Locust Street Suite 942 RE: Carnegie-Stout Public Library Renovation Dubuque,lA 52001 T 563.583.9131 Susan: F 563.557.9078 Last month I strongly recommended that we release the project to bidders in January and ahead of www.durrant.com the 100°'o commitment of funds. I made this recommendation because of the favorable bidding market in Dubuque at the time. This morning I made calls to some of the contractors that represent the larger contracts for the project and the contractors that I believe are likely to be awarded this work. I asked them about their current bidding situation and workload and what they anticipate or know of that will be coming out in the next couple of months. These were some of their comments: • They all indicated there is little work of any magnitude in Dubuque to bid at this time. • Most said they are having to bid more work out of town and are seeing a greater number of contractors submitting bids on the same projects. Architecture • Projects coming out this spring for summer work are anticipated to be down somewhat ~ngineerr,~g from past years but all knew of projects that should bid in the April and May timeframe. Pianninq • All said they felt this is still a good time to put this project out for bidding. A couple said Project Delivery they certainly will be bidding work tighter considering the market. One contractor did say last month woLild have been better. r~nar~ci~iy • Only one of th~~ contractors I spoke to said that they are still pretty busy at this time. interiar Design Gragh~e Desic;n Based on this research I again recommend we release the project this month for bidding in March. If we delay another month or two we will certainly face a heaver bidding load that will likely reflect inflated pricing. Also, last month the City Manager expressed his concerns with bidding a project that might not be able to go to contract d~ae to a shortfall in funding. I can appreciate the City Manager's concerns and would never recommend a project moving forward without a solid plan to obtain funding. Most contractors are accustomed to bidding a certain percentage of their work on a speculative Denver, CO basis. This could include projects that require firm bids to present for funding consideration, projects that are a go/n~o-go based on bids or GMP, or even projects that could fall apart from Des Moines, IA factors external to their project. I don't believe this project falls into the speculattve category nor Dubuque, IA do I think contractors would see it that way. With the options you have identified for the Hilo, HI remaining funds, I believe there is little risk in the project not moving forward providing bids Honolulu. HI received are within the ]project budget. Madison, WI Sincerely, Minneapolis, MN Phoenix, AZ St. Louis, MO Tucson, AZ F. James Kolf, CCM, LEED® Principal Cc: B. Hamus S. Brown R. Golus P~\Pto~cas\I)713851i (.amc~nr Stout Rcno~anons Ch[\AFP\CURRVOAC-NI:RVBiJdmK Lcttcc to Susan _°. L.~~B.doc