Concurrently with this report, the City Council will be considering awarding a contract for Project No. 7009 – Design and Build Fire Station No. 6 and Community Building within Westhaven Park, in the amount of $5,535,919 to RABC-ECC, A Joint Venture. One of the recommendations of this contract award is to strictly appropriate funding for all contractual costs.  However, award of the contract by the City Council does not include appropriations for incidental costs. 

To fully complete the Project, other incidental costs need to be appropriated to the Project. These incidental costs have been identified and briefly described on Attachment 1, titled "Incidental Project Costs." Specifically, incidental expenses include construction management, permitting and environmental fees, along with contingencies.  The amount of these incidental expenses totals $464,081, which is the exact remaining balance after subtracting the design-build contract amount of $5,535,919 from the original project funding amount of $6,000,000.

Proceeds from the issuance of the Lease Revenue Bonds, Series 2015A will be used to finance the Project.  It is requested that the bond proceeds be appropriated in the current fiscal year.

It is recommended that the City Council:

• Appropriate $464,081 of the bond proceeds held by fiscal agent; and

• Authorize the Finance Director to request for construction fund disbursements as necessary from the fiscal agent construction fund and account for all related project transactions in fund 105 (Public Safety Fund).

By:  Dan Candelaria, P.E., T.E.  

       City Engineer