HomeMy WebLinkAboutPACKET Town Board Study Session 2012-06-26* Revised
NOTE: The Town Board reserves the right to consider other appropriate items not available at the time the
agenda was prepared.
STUDY SESSION
TOWN BOARD
Tuesday, June 26, 2012
4:30 p.m.
Board Room
170 MacGregor Ave.
AGENDA
4:30 p.m. Board Reimbursement Policy.
5:00 p.m. Police Lobby Remodel. Chief Kufeld/Director Zurn.
Break for Dinner.
5:30 p.m. Street Improvement Plan (STIP). Director Zurn.
Future Agenda Items.
6:30 p.m. Meeting Adjourn – Prepare for Board Meeting.
Page 1
POLICE DEPARTMENT Memo
To: Honorable Mayor Pinkham
Board of Trustees
Town Administrator Lancaster
From: Wes Kufeld, Chief of Police
Scott Zurn, Director of Public Works
Date: June 26, 2012
RE: Police Lobby Renovation
Background:
Many police facilities throughout the country continue to operate well past their planned
life span (20 to 50 years) often becoming overcrowded, suffering from the lack of
sufficient infrastructure (HVAC, electrical, data telecommunications) and making do with
outdated security and safety systems. Recent security concerns throughout the country
have forced police officials as well as town officials to heighten their awareness relating
to the security of police facilities and boardrooms. Effective security planning for
renovation is a cost effective effort to insure a higher level of security is obtained without
constructing a new facility. The mandates at the state level relating to the confidentiality
of in-depth shared data systems and confidential investigative information systems both
locally and nationally, has forced an ongoing review of security planning for the
protection of confidentiality and safety of personnel.
The Town has moved towards increasing the level of security for the municipal building;
including installation installing a video system, electric door locks, securing doors during
working hours, developing evacuation plans and a security plan for elected officials as
well as employees during Town Board sessions.
Staff has evaluated the level of security at the front window reception/window area of
the Police Department and determined the front window is not secure or protected from
penetration and or a violent physical attack. Increasing security at this location is
critical. Security initiatives are supported by the most recent document pursued by
most police officials relating to police building security. (International Association of
Chiefs of Police (IACP) “Police Facility Planning Guidelines” (1998)) These guidelines
follow the National Clearinghouse guidelines as the “updated and futuristic” version of
police facility planning (1990).
Customer service is considered high priority for the Police Department; having said that,
the front reception window should be constructed securely but with a customer service
mindset. The design affords increased office space, as well as internal security by the
addition of a “safe passage hallway” for persons in custody. This hallway affords the
opportunity to maintain a safety zone between prisoners and civilian employees.
The original project intended to address security concerns by providing a bullet proof
assembly of walls, glass and doors to protect the civilian police staff and secure the
police area from assault. This also included extending the walls out to provide for more
front reception / records space.
As per Town Policy, staff of the Public Works Department requested three proposals
from local architectural firms, Thorpe associates was the lowest design fee proposal.
The architectural design costs were $5000.00, leaving $35,000.00 for construction of
the original project budget.
The architect, Public Works and the Police Department Staff began scoping the police
area and realized several areas of security concern, and opportunities for improvement.
Staff also realized the original proposed budget was not enough to complete the project.
Staff is proposing to develop a full set of plans that would address these various
elements of improvement. Staff intended to fully develop these plans so that phasing of
improvements could be accomplished if needed and as funds become available.
Although phasing is feasible, staff is recommending that one project would be more cost
effective and the least disruptive to the operation and customer service.
Budget:
The project cost of $140,000.00 is proposed to be funded through the Community
Reinvestment Fund.
Recommendation:
Staff recommends approval of the award of contract for $104,650.00 to Westover
Construction for the Police Lobby Renovation, Including a 10% contingency. The cost
for the total architectural project, not to exceed $115,115.00. Also, staff recommends
approval of an additional $24,885.00 to complete related mechanical and electrical
modifications directly pertaining to moving various walls.
Motion:
I move for the approval/denial of the award of contract to Westover Construction for the
Police Lobby Renovation. In addition, I move for the approval/denial of the budget for
design/build of electrical and mechanical system improvements.
TOWN OF ESTES PARK
CONSTRUCTION AGREEMENT
THIS AGREEMENT is effective as of the day of , 2012 by and between the
Town of Estes Park (TOEP), a body corporate and political, P.O. Box 1200, Estes Park, Larimer County,
Colorado, 80517, (hereinafter called OWNER) and Westover Construction, Inc. (hereinafter called
CONTRACTOR).
OWNER and CONTRACTOR, in consideration of the mutual covenants hereinafter set forth, agree as
follows:
Article 1. WORK
CONTRACTOR shall complete all Work as specified or indicated in the Contract Documents. The Work
is generally described as follows:
Police Department Remodel
Article 2. PROJECT MANAGER
The PROJECT MANAGER is to act as OWNER's representative, assume all duties and responsibilities
and have the rights and authority assigned to PROJECT MANAGER in the Contract Documents in
connection with completion of the Work in accordance with the Contract Documents.
Article 3. CONTRACT TIMES
The Work must be substantially completed by July 31, 2012, and ready for final payment in accordance
with the General Conditions subject to applicable laws regarding final payment by August 31, 2012.
Article 4. CONTRACTOR PRICE
OWNER shall pay the CONTRACTOR for completion of the Work in accordance with the Contract
Documents an amount in current funds equal to the sum of the amounts determined pursuant to the unit
prices times the quantities of work actually completed. Unit prices are those shown in the Proposal and
Quantities of work actually completed will be determined by the PROJECT MANAGER.
Article 5. PAYMENT PROCEDURES
CONTRACTOR shall submit Applications for Payment in accordance with the General Conditions.
Applications for Payment will be processed by the PROJECT MANAGER as provided in the General
Conditions.
5.1 Progress Payments; Retainage. OWNER shall make progress payments per the Town’s Annual
Vendor Payment Schedule on account of the Contract Price on the basis of CONTRACTOR's
applications for Payment as recommended by PROJECT MANAGER, as provided by the
General Conditions during construction as provided in paragraphs 5.1.1 and 5.2 below.
5.1.1 Prior to Substantial Completion, progress payments will be made in an amount equal to the
percentage indicated below, but, in each case, less the aggregate of payments previously made
and less such amounts as PROJECT MANAGER shall determine, or OWNER may withhold, in
accordance with the General Conditions.
a. Ninety-five percent (95%) of Work completed (with the balance being Retainage).
b. Ninety-five percent (95%) with the balance being Retainage of materials and equipment
not incorporated in the Work (but delivered, suitably stored and accompanied by
documentation satisfactory to OWNER as provided in the General Conditions).
5.2 Final Payment. Upon final completion and acceptance of the Work in accordance with the
General Conditions, final payment shall be subject to the provisions of Section 38-26-107 C.R.S.
Article 6. INTEREST
Following settlement of any claims posted again this Contract; final payment will be made in accordance
with the Town’s Annual Vendor Payment Schedule. All moneys not paid when due as provided in
paragraph 27 of the General Conditions shall bear interest at the rate of 10% per annum compounded
monthly.
Article 7. CONTRACTOR'S REPRESENTATIONS
In order to induce OWNER to enter into this Agreement, CONTRACTOR makes the following
representations:
7.1 CONTRACTOR has examined and carefully studied the Contract Documents (including any
Addenda(s)) and the other related data identified in the Bidding Documents including "technical
data".
7.2 CONTRACTOR has reviewed the site, and become familiar with, and is satisfied as to the general,
local, and site conditions that may affect cost, progress, performance or furnishing the Work.
7.3 CONTRACTOR acknowledges he knows, understands, and accepts all plans, specifications, and
design intent of the Work.
7.4 CONTRACTOR acknowledges he has met with the Project Manager and has been in
correspondence with the Project Manager and has sought and received clarification of all issues
concerning construction and design.
7.5 CONTRACTOR assumes full responsibility and obligation for safety, high quality workmanship,
and timely completion of this project as illustrated by the plans, drawings, and specifications.
Contractors are required to comply with applicable federal, state, and local safety and health laws,
regulations and ordinances
7.6 CONTRACTOR understands that he may make on-site layout and grading and construction
modifications to achieve the desired intent. Such modifications/grading changes and layout cost
are already included in the Contract Documents.
7.7 CONTRACTOR understands and acknowledges that this Agreement is based on unit prices
totaling $104,650.00 that shall not be exceeded or increased, except for contract changes allowed,
agreed, and approved in writing by Change Order.
7.8 CONTRACTOR will work cooperatively with the PROJECT MANAGER to mutually achieve a
final product acceptable to OWNER.
7.9 CONTRACTOR shall indemnify, save and hold harmless the OWNER from all damages, claims,
and judgments whatsoever (including costs, legal fees, and expenses incurred by the OWNER
related to such damages or claims) to the OWNER or claimed by third parties against the OWNER,
arising directly or indirectly out of CONTRACTOR'S negligent performance of any of the
requirements, provisions, or services furnished under this Agreement.
7.10 CONTRACTOR has obtained and carefully studied (or assumes responsibility for obtaining and
carefully studying) all examinations, investigations, explorations, tests, reports and studies which
pertain to the subsurface or physical conditions at or contiguous to the site or otherwise may affect
the cost, progress, performance or furnishing of the Work as CONTRACTOR considers necessary
for the performance of furnishing the Work at the Contract Price, within the Contract Time and in
accordance with the other terms and conditions of the Contract Documents, including specifically
the provisions of Paragraph 9 of the General Conditions; and no additional examinations,
investigations, explorations, tests, reports, studies or similar information or data are or will be
required by the CONTRACTOR for such purposes.
7.11 CONTRACTOR has reviewed and checked all information and data shown or indicated on the
Contract Documents with respect to existing underground facilities at or contiguous to the site
and assumes responsibility for the accurate location of said underground facilities. No additional
examinations, investigations, explorations, tests, reports, studies or similar information or data in
respect of said underground facilities are or will be required by CONTRACTOR in order to
perform and furnish the Work at the Contract Price, within the Contract Time and in accordance
with the other terms and conditions of the Contract Documents, including specifically the
provisions of the General Conditions.
7.12 CONTRACTOR has correlated the results of all such observations, examinations, investigations,
tests, reports, and data with the terms and conditions of the Contract Documents.
7.13 CONTRACTOR has given PROJECT MANAGER written notice of all conflicts, errors, or
discrepancies that he has discovered in the Contract Documents and the written resolution thereof
by PROJECT MANAGER is acceptable to CONTRACTOR.
Article 8. CONTRACT DOCUMENTS
The Contract Documents which comprise the entire agreement between OWNER and CONTRACTOR
concerning the Work, consisting of the following:
8.1 This Agreement
8.2 Exhibits to this Agreement.
8.2.1 Notice of Award
8.4 Notice to Proceed.
8.8 Drawings bearing the title: Police Department Remodel
8.9 Addenda (s).
8.10 Contractor’s Bid. (Bid Proposal, Price Quote, Bid sheet & Appendix)
8.16 Change Orders (post approval signatures)
8.17 Insurance Certificate, Business License, Tax Certification.
8.18 The following which may be delivered or issued after the Effective Date of the Agreement and
are not attached hereto:
All Written Amendments and other documents amending, modifying, or supplementing
the Contract Documents pursuant to the General Conditions.
The documents composing the Contract Documents are attached to this Agreement and made part hereof
(except as expressly noted otherwise above).
There are no Contract Documents other than those listed above. The Contract Documents may only be
amended, modified, or supplemented as provided in the General Conditions.
In case of conflicting provisions, requirements or discrepancies the order of application of the Contract
Documents is as follows:
1. Change Orders for clarification of drawings
2. This Agreement
3. Addenda
4. Drawings
5. Special Conditions
6. General Conditions
Article 9. MISCELLANEOUS
9.1 No assignments by a party hereto of any rights under or interests in the Contract Documents will
be binding on another party hereto without the written consent of the party sought to be bound;
and, specifically but without limitation, moneys that may become due and moneys that are due
may not be assigned without such consent (except to the extent that the effect of this restriction
may be limited by law), and unless specifically stated to the contrary in any written consent to an
assignment no assignment will release or discharge the assignor from any duty or responsibility
under the Contract Documents.
9.2 Except for the intended beneficiaries of any "Labor and Material Payment Bond" executed in
conjunction with this Agreement, nothing in this Agreement shall be construed to give any rights
or benefits by virtue of this Agreement to anyone other than OWNER and CONTRACTOR, and
all duties and responsibilities undertaken pursuant to this Agreement will be for the sale and
exclusive benefit of OWNER and CONTRACTOR and not for the benefit of any other party.
9.3 OWNER and CONTRACTOR each binds itself, its partners, successors, assigns and legal
representatives to the other party hereto, its partners, successors, assigns and legal representatives
in respect to all covenants, agreements and obligations contained in the Contract Documents.
9.4 In the event of default of any of the provisions of this Agreement by either party which shall
require the party not in default to commence legal actions against the defaulting party, the
defaulting party shall be liable to the non-defaulting party for the non-defaulting party's
reasonable attorney fees and costs, including fees of experts, incurred because of the default.
Additionally, CONTRACTOR shall indemnify the OWNER for legal expenses and costs incurred
by the OWNER by reason of claims filed by suppliers, subcontractors or other parties,
against the Retainage held by the OWNER where the OWNER has paid such sums to
the CONTRACTOR.
9.5 The OWNER has appropriated sufficient funds to pay the contract price.
9.6 Any provisions or part of the Contract Documents held to be void or unenforceable under any
Law or Regulations shall be deemed stricken, and all remaining provisions shall continue to be
valid and binding upon OWNER and CONTRACTOR, who agree that the Contract Documents
shall be reformed to replace such stricken provision or part thereof with a valid and enforceable
provision that comes as close as possible to expressing the intention of the stricken provision.
IN WITNESS WHEREOF, OWNER and CONTRACTOR have signed this Agreement in triplicate. One
counterpart each has been delivered to OWNER, CONTRACTOR, and PROJECT MANAGER. All
portions of the Contract Documents have been signed, initialed or identified by OWNER and
CONTRACTOR or identified by PROJECT MANAGER on their behalf.
This Agreement will be effective as provided on the first page hereof.
TOWN OF ESTES PARK
By: ______________________________ By: __________________________
William C. Pinkham
Title: ____________________________ Title: ________________________
(If CONTRACTOR is a corporation
attach evidence of authority to sign.)
Attest: __________________________ Attest: ______________________
Address for giving notices: Address for giving notices:
170 MacGregor Avenue
P. O. Box 1200
Estes Park, Colorado 80517
970-577-3586, mmcbride@estes.org
Page 1
FINANCE Memo
To: Honorable Mayor Pinkham
Board of Trustees
Town Administrator Lancaster
From: Steve McFarland, Finance Officer
Date: June 26th, 2012
RE: Street Improvement Plan Economics (Town Board Study Session)
Background:
The Town has historically provided an annual budget for the Street Improvement
Program (STIP) in the $400-500,000 range. This has proven to be inadequate funding
for addressing the general deterioration of the Town’s road system. Consequently, staff
now forecasts that a STIP in the range of $1,000,000/year for 10 years is necessary to
bring the road system back to a manageable maintenance level.
A variety of available funding mechanisms for the STIP are available for consideration,
depending upon the Town’s needs and goals. Some broad categories/strategies
include:
Borrow money “up front”. If a determination is made that a large amount of money is
needed to begin the STIP process, the Town could consider borrowing money through
the following mechanisms:
• General obligation bonds – acquired through a vote affirming a property tax
increase.
• Revenue obligation bonds – acquired through a vote affirming a sales tax
increase.
In both instances, money would be secured only through an affirmative vote of the
People. Current rates are hovering around 2.5% for a 10-12 year bond. A revenue
obligation bond would come with more complex debt coverage requirements, much the
same as our utility loans/bonds.
The benefit of this approach is that a large amount of money would be acquired up
front. Offsets include needing an affirmative vote of the people, and the accompanying
repayment of the amount borrowed, with interest.
Page 2
FINANCE Memo
Another option for acquiring a large amount of capital “up-front”, would be a Certificate
of Participation (COP). COPs do not require a public vote, but they come with some
“strings” nonetheless. Collateral is required, and the loaned amount of the COP is
equal to the appraised value of the collateral. For example, if Town Hall is put up as
collateral, the amount of the loan would be equal to the appraised value of Town Hall.
This could be more or less money than is needed to administer the STIP program.
There are limited pieces of collateral that would be usable for COPs – Town Hall and
the CVB Building are probably the two most marketable pieces. Once the collateral is
put into play, it cannot be used again until the COP is paid off. The Town would have to
assure itself that no additional projects would occur in the near future where a COP
would be needed. Interest rates are also higher for COPs (3.0-3.5%) than for the
obligation bonds (2.5%).
If a large amount of money is not needed to begin the STIP process, then the above
options do not make a great deal of sense. Staff merely references the debt options so
that all paths may be considered.
Pay as we go. Town has long employed the philosophy of “paying as we go”, prudently
avoiding debt if at all possible. This strategy has served the Town very well over the
years, as the Town enjoys a healthy fund balance without debt. The 2011 CAFR reports
an unrestricted, unassigned (usable) General Fund fund balance of $6,084,967 as of
December 31, 2011. Applied to the 2012 budget, this is a fund balance % of 49% (!).
Some caveats regarding the 49%:
• Rollovers from 2011 will use $91,328 of this fund balance in the 2012
budget.
• Approximately $283,000 of unused STIP from the 2011 year was released
into fund balance. It is expected that this will be re-appropriated for STIP
when the 2012 Budget is reviewed during the budget process.
• $1,440,000 of fund balance results from the merging of the Catastrophic
Loss Fund into the General Fund on December 31, 2010. Town Board
has not made a determination as to the fate of this amount, but from both
a legal and an accounting standpoint, the funds are available for use as
the Board sees fit.
The Board took action to reduce fund balance to 25% for the 2012 Budget in order to
provide additional STIP funding. The above information reveals that the Board could
consider applying approximately $1,825,000 of the usable fund balance to STIP and still
maintain a 30% fund balance.
Page 3
FINANCE Memo
Another course of action for consideration would be to seek a sales tax increase
(through a public vote) that would be dedicated towards STIP use. There is no statutory
limit (maximum) on sales tax percentage. Staff polled the CML’s Finance Officer
Listserve, and received numerous responses from communities that have successfully
navigated this path. Sales tax percentages vary (most are ~ 1%); some programs
sunset and some do not.
Estes Park has budgeted $7,300,000 in collections this year at a 4% sales tax rate.
Assuming a $1,000,000 funding level is sought, this would equate to a sales tax
increase of approximately 0.55% (each 0.25% increase equals ~ $455,000).
Yet another course of action to consider would be to implement a Street Improvement
Fee, initiated by ordinance (public vote not required). A street utility (similar to the L&P
and Water Enterprise Funds) could be set up to manage the STIP. Town Attorney
White has researched such a concept in the recent past, and in a memo to Director
Zurn, noted:
“Pursuant to your request, I have reviewed my file on street and/or stormwater utilities. I am
attaching my Memo (not attached in this report) dated August 25, 2009, which I think is a fairly
comprehensive summary of legal status of these issues. In reviewing the file and looking at the
Fort Collins and Loveland ordinances, which are attached, it is my opinion that the most
effective way to present information to the Town Board is to develop a proposed rate
structure for both of the projected utilities. This would allow the Town Board to evaluate the
impact on private property owners for both of the proposed utilities. Legally, the requirement
is to have a rate structure that bears a reasonable relationship to the benefits to the individual
properties. There is no prescribed rate structure or method in designing a rate structure.
Also, the establishment of a rate structure would also indicate the revenue levels to be
expected by the utilities which then translates into what improvements can be constructed and
timeframe of construction.”
Conclusion/summary
In attempt to be concise, staff is attaching the below chart that summarizes options
presented above. The most immediate path to funding a STIP would seem to be to
utilize some of the available fund balance to supplement the annual STIP budget, while
pursuing either a STIP fee program (street utility) or sales tax increase. This would
allow the Town to avoid debt in the General Fund, as a large influx cash that would be
provided by incurring debt is not needed at this time.
Page 4
FINANCE Memo
OPTIONS FOR FUNDING STREET IMPROVEMENT PROGRAM
FUNDING INCUR NEED
MECHANISM DEBT? VOTE? BENEFITS NOTES
General Obligation Bond Yes Yes
large, up-front cash
infusion ~2.5% for 10/yr bond
Revenue Obligation Bond Yes Yes
large, up-front cash
infusion ~2.5% for 10/yr bond
Certificate of Participation Yes No
large, up-front cash
infusion ~3.25% for 10/yr loan, collateral
(COP) tied up
Use some of fund balance No No immediate start, money uses excess reserves
available now provided by Cat Loss Fund (2010)
Sales tax increase No Yes new stream of $$ (no drain 0.25% increment = ~$455,000
on General Fund)
Street Improvement Fee/Utility No No new stream of $$ (no drain passed by ordinance
on General Fund)
Staff Recommendation:
N/A
Sample Motion:
N/A
Memo
To: Honorable Mayor Pinkham
Board of Trustees
Town Administrator Lancaster
From: Jackie Williamson, Town Clerk
Date: June 18, 2012
RE: Future Town Board Study Session Items
July 10, 2012
Volunteer Policy
July 24, 2012
TVC/Shuttle Committees
Stall Barns – Zurn
August 14, 2012
August 28, 2012
Other Items Not Scheduled for Town Board Study Sessions
• Kathay Rennels – Economic Council
• Communication Policy
• Museum Storage
• Agenda Policy / Board Governance
• Review Town Board Committee Process
• Friends of Stanley Hall (FOSH) Fund Distribution Strategies
Town Clerk’s Office