Federal building Renovation Project_Budget Increase RequestTHE CITY OF
DUB E
MEMORANDUM
January 10, 2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Dubuque Federal Building Renovation Project
Project Manager Steve Sampson Brown is recommending that the Fiscal Year 2007
budget expenditure for the Federal Building Renovation Project be increased from
$1,259,785 to $3,194,843.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Gus Psihoyos, City Engineer
Steven Sampson Brown, Project Manager
THE CITY OF
Dus E MEMORANDUM
January 10, 2007
TO: Michael C. Van Milligen, City Manager
FROM: Steven Sampson Brown, Project Manager~~"
SUBJECT: Dubuque Federal Building Renovation Project
INTRODUCTION
This memorandum is to seek authorization to increase the Fiscal Year 2007
budget expenditure for the Dubuque Federal Building Renovation Project.
BACKGROUND
Recognizing that the Federal Building is an historic structure anchoring
downtown, on September 6, 2005, the City Council directed City staff (Resolution
427-05) to prepare the formal application to General Services Administration
(GSA) for the conveyance of the Federal Building to the City of Dubuque. Based
on the building evaluation by Anderson Design that evaluated the existing
condition of the building, it was projected that the renovation costs for the next
five years would total just over $2.2 million and then another $2.0 million
rehabilitation beyond would be required.
The sources identified to finance the Federal Building improvements in the Fiscal
Year 2007 - 2011 budget were:
Use the Capital Improvement Project (CIP) for the renovation of the
Housing & Community Development Department at 1805 Central
Avenue (General Fund: $438,500; and Section 8: $71,500)
Use of Port of Dubuque Property Acquisition CIP (DRA Distribution)
Greater Downtown TIF Receipts
DRA Distribution
Use Cable Franchise fees to cover audiovisual/broadcast expenses
Net operating income from the Federal Building (FY 2007 - 2011)
Total Capital Sources in Fiscal Year 2007 - 2011 CIP
* Amounts to be recovered from Greater Downtown CIP.
$ 510,000*
700,000*
684, 500
200,000*
50.000*
55,705
$2,220,205
After the City took possession of the building on July 1, 2006, a determination
was made to have the project architect, The Durrant Group, conduct more
detailed studies of the existing condition and remaining service life of all
mechanical (HVAC), electrical and window systems within the building. Since
cost/benefit decisions of a particular mechanical system are interrelated to other
supporting mechanical system upgrades, a comprehensive study was the only
way to determine how to cost effectively upgrade each system. City staff
involved with the operation of the Federal Building reviewed the recently-
completed studies with Durrant to update the project's capital improvement plan.
DISCUSSION
On December 18, 2006, the City Council was provided an update on the overall
capital costs based on the most recent study recommendations.
The preliminary cost estimates are as follows:
1. Second Floor Renovations
As part of this project, the former courtroom and two jury rooms on the
second floor will be converted to a public meeting room, a small conference
room, and local channel 8 cable TV studio.
2. Third Floor Renovations
The City Housing & Community Development Department will move into the
west and south areas of the third floor. The area being taken over by the
Housing Department will be completely renovated by relocating interior walls,
painting, flooring replacement, installation of voice and data systems, new
furnishings and two new bathrooms will be constructed.
3. Miscellaneous Phase 1 Improvements
- ADA improvements: Automatic door operators, existing door
modifications, and bathroom modifications.
- Replacement of second and third floor windows in the renovated areas.
- Replacement of existing fire alarm system for renovated areas.
- Dedication plaque.
- Mechanical system improvements to second and third floor renovated
areas only.
- Exterior building sign and landscaping.
- Green roof for the second floor light well.
- Paint exterior spandrels.
Total Phase I Construction Cost
Total Phase I Design Cost
Total Phase 1 Project Cost
$3,263,328
326, 320
$3,589,848
In addition, the following improvements, with a cost estimate of $5,159,040 were
identified for completion in the future years beyond Fiscal Year 2012:
- Structural repairs to the loading dock and building foundation.
- Building-wide replacement of the mechanical system with a new
geothermal system and asbestos removal.
- Kiosk on 2"d floor.
- Fire alarm for remaining portions of building.
- Emergency Operation Center.
- Replacement of the existing windows with new steel windows, lead paint
abatement, and window frame painting in remaining portion of building.
- Reconstruction of rear building parking lot and associated stormwater
drainage improvements.
I recommend that the Fiscal Year 2007 budget be amended to increase the
Dubuque Federal Building Renovation Capital Improvement Project (CIP) from
$1,259,785 to $3,194,843 (additional $1,935,058) to cover Phase I
improvements. The remaining $394,500 of Phase I costs will be recommended
through the Fiscal Year 2008 budget process.
BUDGET IMPACT
The estimate for the project is as follows:
Project Construction and Other Costs (Shown Above)
Design Cost
Total Estimated Cost
$3,263,328
326, 320
$3,589,648
The additional cost of $1,935,058 to be amended in Fiscal Year 2007 is
recommended to be funded using:
General Fund Cash balance which includes land sale revenue and
savings from Fiscal Year 2006 budget.
Existing funding sources:
Use the Capital Improvement Project (CIP) for the renovation from
Housing & Community Development Department at 1805 Central
Avenue (General Fund: $438,500; and Section 8: $71,500)
Use of Port of Dubuque Property Acquisition CIP (DRA Distribution)
Use Cable Franchise fees to cover audiovisual/broadcast expenses
Recommended Fiscal Year 2007 Funding
* Amounts to be recovered from Greater Downtown CIP.
To be recommended through Fiscal Year 2008 Budget process.
TOTAL PROJECT COST
$1,935,058*
510,000*
700,000*
50,000*
$3,195,058
394, 590
$3.589.648
ACTION TO BE TAKEN
The City Council is requested to amend the Fiscal Year 2007 budget to increase
the Dubuque Federal Building Renovation Project Capital Improvement Project
from $1,259,785 to $3,194,843 to continue Phase I renovation.
Prepared by Steven Sampson Brown, Project Manager
cc: The Durrant Group
Cindy Steinhauser, Assistant City Manager
Dawn Lang & Jennifer Larson, Budget Directors
David Heiar, Economic Development
David Harris, Housing & Community Development
Gus Psihoyos, City Engineer
Rich Russell, Building Services