CITY COMMISSION AGENDA ITEM

Department:

Finance

Commission Meeting Date: March 7, 2017

Staff Contact:

Bryan Kidney, Director

Recommendations/Options/Action Requested:

Adopt Resolution No. 7192 authorizing the renovation of Fire Station No. 1 of the City of Lawrence, Kansas, Pursuant to Charter Ordinance No. 40, and the Issuance of General Obligation Bonds to pay the costs thereof.

Executive Summary:

The City has entered into several agreements in connection with the renovation of Fire Station No. 1. In order to use tax exempt financing for the payment of the agreements, the City must adopt a resolution that the City’s intent is to issue tax exempt bonds to pay for the improvements.

The Finance Department plans to issue temporary notes on May 2, 2017 to pay for the project costs. Once final costs are known, the City will issue general obligation bonds to pay off the temporary notes. The date of the definitive financing will not be known until the final project calendar is complete. The City has entered into an agreement with Douglas County for sharing the cost of improvements. The County paid a portion of their share upfront. The amounts below are estimates of the final costs. Once final costs are determined the amounts for the City and the County will be allocated based on the percentages below:

	Estimated City Portion	City Percent	Estimated County Portion	County Percent	Total
Fire Medical Facility Improvements	$2,937,000	74.36%	$1,013,000	25.64%	$3,950,000
Douglas County Resource Center Improvements	1,819,000	68.00%	856,000	32.00%	2,675,000
Contingency (3%)	142,000	-	40,000	-	182,000
Subtotal	4,898,000	-	1,909,000	-	6,807,000
Less: County Payment	-	-	(520,000)	-	(520,000)
Recommended Debt Authorization	$4,898,000	-	$1,389,000	-	$6,287,000

The purpose of Resolution No. 7192 is to set $6,287,000 as the maximum amount the City would finance with tax-exempt debt. While this resolution does authorize the project, the individual approval of contracts for improvements will follow the City’s purchasing policy.

Strategic Goal Area:

Public Safety

Fiscal Impact (Amount/Source):

The renovation of Fire Station No. 1 was included in the 2017-2021 Capital Improvement Program.  The debt service for the cost of improvements will be included in the debt service fund beginning with the 2018 operating budget. The estimated debt service will be included in the 2018 Manager’s recommended budget.

Attachments:

Resolution No. 7192

Reviewed By: (for CMO use only)

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