8.4 Agr Bid Library T-Notes City Of Salina
Request for Commission Action
Date Time
5/19/97 4:00 PM
AGENDA SECTION: ORIGINATING DEPARTMENT APPROVED
NO. FOR AGENDA
8 FINANCE
ITEM NO,
BY: Rodney Franz By:~'I/~'
ITEM: Resolution Authorizing the Finance director and city clerk to obtain bids for Temporary Notes to
finance Improvements to the Salina Public Library.
BACKGROUND: The Public Library is currently engaged in an expansion and rehabilitation of their
facilities. The roots of this project extend to 1992. I have enclosed a "Project History" that was done in
mid-1995 on this project. Since that time, the City and Library have entered into an interlocal agreement
providing for financing in an amount up to $750,000 and for the repayment of that amount from Library
resources. A copy of that agreement and the "Request for Commission Action" that accompanied it are
also enclosed.
Current estimates project that the Library will need about $310,000 in early to mid-June in order to finish
the project. They wish to pay that back over a three year period. The temporary notes that we will be
taking bids on will be structured to mature over the 3 year period, with $110,000 due in 1998 and $100,000
due in 1999 and 2000.
The resolution enclosed simply authorizes the staff to proceed with the process of advertising for and
collecting bids. Bids will be opened on June 2 with an anticipated closing date of June 17.
, REQUESTED ACTION:
Adopt Resolution Number 97-5158
COMMISSION ACTION
MOTION BY: SECOND BY:
THAT:
Library Renovation Project
Item
Project Cost:
Construction Contract with Harbin
Architectural Fees
Furnishings
Original Contingency Remaining
Additional contingency
Total Costs
Amount
$ 1,563,940.00
$ 155,207.00
$ 160,585.00
$ 2O,OOO.OO
$ 20,000.00
$ 1,919,732.00
Paid to Date (2/3/97)
Construction
Architect
Furnishings
Total Paid to Date
$ 688,401.00
$ 131,232.00
$ -
$ 819,633.00
Balance Leffto Spend
Cash on Hand
Financing Needed
Issuance Costs and rounding
Total to be Financed
$ 1,100,099.00
$ 796,604.00
$ 303,495.00
$ 6,5O5.OO
$ 310,000.00
Principal Amount Due in 1998
Principal Amount Due in 1999
Principal Amount due in 2000
$ 110,000.00
$ 100,000.00
$ 100,000.00
Annual Interest Amounts will be in addition to the principal amounts
and will vary depending on the interest rate on the issue.
Library renovation
City Of Salina
Request for Commission Action
Date Time
AGENDA SECTION: ORIGINATING DEPARTMENT APPROVED
NO. 8 FOR AGENDA
ITEM NO,
BY: Rodney Franz B~.,.. , .. L'~
ITEM: Resolution 96-5055. A Resolution Stating the intent of the City to issue
Obligations of the City to finance the reconstruction, remodeling, furnishing and
equipping of the existing Salina Public Library, and approving an interlocal agreement
with respect to such project and financing.
BACKGROUND:
The Salina Public Library has requested that the City of Salina use it's ability to issue
debt to help finance the improvements scheduled at the Library. The improvements
convert basement space to effective use, and re-organize first floor space to better use
of the facility. It is the intent of the Library Board to pay to the City an annual amount
sufficient to retire the debt over the term of the issue.
The City is authorized to issue debt for these purposes under K.S.A. 12-1736 et seq.
The bids for the work have been opened with Harbin construction being the lowest and
;best bid. The amount for construction of the project is $1,460,000. In addition, the
library is anticipating expending approximately $200~000 for furnishings, and there is an
allowance of $100,000 for contingencies on the construction contract. The total project
will cost $1,760,000 for construction and improvements. A 5% allowance for overhead
!and issuance costs results in a total project estimate of $1,848,000. The project is
I scheduled to take from 12 to 14 months to complete. The Library Board is scheduled to
approve the contract with Harbin on August 13, 1996.
The Library does have some resources accumulated towards this project. They have on
hand about $900,000; and are expecting to receive an additional $200,000 in 1996,
providing a total of $1,100,000 cash they can contribute to the project. $300,000 more
is in the process of being levied for 1997, however, this may not be available in a timely
manner due to the times and uncertainties in the distribution of taxes. It could however.
be used to pay down a part of the note. The amount of additional financing thus
required is on the order of $750,000.
In order to consummate this transaction, the City of Salina and the Salina Public Library
will need to enter into an intertocal agreement setting out the terms as described above,
and other administrative provisions. A proposed agreement, drafted by City Attorney
Gregg Bengtson is attached. The Agreement has also been approved by the Kansas
Attorney Generals Office.
The City of Salina will also have to declare the City of Salina's intent to issue debt in
this amount for this project, and provides the authorization to do so at such time as the
funds are required. This action will permit the Library to enter into the contract and still
comply with cash basis requirements.
Our intent is to permit the Library to expend their committed resources first, and actually
issue temporary notes or bonds at such time and in such amounts as may be needed.
This approach has several advantages:
1. It will permit more closely matching the amount of the temporary note issue to
the project requirements, should additional costs be incurred.
2. It may allow for the Library to apply at least part .of the 1997 receipts to the
~roject, thus reducing the amount of notes needed to be issued, and
3. It delays issuance of the debt thereby reducing the amount of interest costs
incurred.
RECOMENDATION:
1. Approve Resolution Number 96-5055, which declares our intent to issue the debt,
and approves entering into the interlocal agreement.
COMMISSION ACTION
MOTION BY: SECOND
BY:
THAT:
INTERLOCAL AGREEMENT
THIS INTERLOCAL AGREEMENT is entered into pursuant to the Kansas Interlocal
Cooperation Act this __ day of August, 1996, between the CITY OF SALINA, KANSAS, ("the
City"), and the BOARD OF DIRECTORS OF THE SALINA PUBLIC LIBRARY, ("the Library
Board").
Recitals
A. Pursuant to K.S.A. 12-1736 and 1737, the City is authorized to "alter, repair,
reconstruct, remodel, replace or make additions to, furnish and equip a public building" jointly
or in cooperation with any other governmental unit so empowered and to issue general
obligation bonds of the City for such purpose.
B. Pursuant to K.S.A. 12-1215 et seq., the Library Board is empowered to maintain
the Salina Public Library building, including major capital improvements.
C. The Salina Public Library building is in need of major capital improvements.
D. The total estimated cost of the proposed capital improvement project (the
"Project") is $1,848,000. The Library Board has on hand approximately $900,000 (the "Funds
on Hand") to be applied toward the cost of the Project. The Library Board also expects to
receive an additional $200,000 in 1996 (the "1996 Revenues") and $300,00 in 1997 (the "1997
Revenues") in property tax revenues to be applied toward the Project.
E. It is the desire of the City and the Library Board to enter into this Iaterlocal
Agreement to provide for the financing of a portion of the Project through the issuance of
general obligation bonds of the City.
THE PARTIES agree as follows:
1. Duration. This Interlocal Agreement shall be effective upon its approval and
filing in accordance with the Kansas Inteflocal Cooperation Act and shall remain in effect until
all bonds issued pursuant to the terms of this Interlocal Agreement are paid in full.
2. No Separate Entity. The public purpose to be served through this Interlocal
Agreement does not require the creation of a separate legal or administrative entity.
3. Public Purpose. This Interlocal Agreement is for the purpose of providing a
means of financing a portion of the cost of the Project through the issuance of general obligation
bonds of the City.
4. Financing the Cooperative Undertaking. The Library Board agrees that it will
apply the Funds on Hand, the 1996 Revenues, and the 1997 Revenues toward the cost of the
Project. The City agrees to issue general obligation bonds or temporary notes of the City in an
amount not to exceed $750,000, and to make the temporary note and/or bond proceeds available
to the Library Board to be applied toward the balance of the cost of the Project. The Library
Board agrees that any funds remaining from the proceeds after payment of the cost of the Pro.iect
(including any of the 1997 Revenues) which are not needed to make the first debt payment shall
be applied to reduce the amount o£ long-term debt issued by tile Cit.,,, pursuant to this Interlocal
Agreement.
5. Payment of Bonds. The bonds issued by the City under this Agreement shall
mature in substantially equal principal amounts annually over a period of no more than ten
years. The principal and interest payments due for the bonds issued by the City under this
Agreement shall be paid by the Library Board's remittance to the City of the principal, if any,
and interest due not less than ten (10) days prior to the respective payment dates for such
principal, if any, and interest. The Library Board shall also remit to the City the amount of any
direct expenses of the City in conjunction with the bonds. The Library Board's obligation to
make such remittances shall be an annual obligation of tile Library Board and shall be payable
solely from funds budgeted and appropriated for that purpose during tile Library Board's then
current budget year.
6. Termination. Due to the single purpose of the cooperative undertaking and tile
intended issuance of general obligation bonds of tile City under this Interlocal Agreement,
provision for a method for tile partial or complete termination of this Interlocal Agreement and
for disposing of property upon such partial or complete termination is inappropriate.
7. Contract for Improven~ents. The Library Board agrees that it shall enter into an
and administer the contract necessary to carry out the completion of the Prqject and to apply the
proceeds from the temporary notes and/or bonds of the Cit_,,, to be issued tinder this Interlocal
Agreement toxvard tile payment of such contract.
8. ,q. dministration. The_joint undertaking provided roi- under this Interlocal
Agreement shall be administered cooperatively by the City Manager on behalf of the City and
tile Director on behalf of tile Library Board.
9. Real and Personal Property. Due to the nature of tile joint undertaking, it will not
be necessary to acquire, hold, or dispose of any real or personal property in carrying out tile
purpose of this Interlocal Agreement.
10. Bindin~ gl't~ct. This Agreement shall be binding upon anct inure to tile benefit of'
tile parties and their successors.
IN \\;ITNESS \VHEREOF, tile Governing Body o/'ttle City has b5' adoption of
Resolution No 96- ()iq August 12, 1996, approved and authorized tile Mayor to execute this
Interlocal Agreement: and the Library Board has upon appropriate motion adopted and recorded
-2-
in the minutes of its meeting of August 13, 1996, approved and authorized its President to
execute this lnterlocal Agreement; to be effective.upon approval of the Attorney General of the
State of Kansas the day and year fa-st above written and upon filing with the Register of Deeds
of Saline County, Kansas, and with the Kansas Secretary of State.
CITY OF SALINA, KANSAS
ATTEST:
By:
Evelyn Maxwell, Mayor
Judy D. Long, City Clerk
BOARD OF DIRECTORS OF THE
SALINA PUBLIC LIBKARY
ATTEST:
By:
James E. Sullivan, President
Janet Wilbur, Secretary
Approved this ~ day of
State of Kansas.
,1996, by the Attorney General of the
KANSAS ATTORNEY GENERAL
By:
Mary Feighny, Assistant Attorney General
-3-
RESOLUTION NO. 96- 5 0 5 5
A RESOLUTION STATING THE INTENT OF THE CITY OF SAIJNA, KANSAS
TO ISSUE OBLIGATIONS OF TIlE CITY TO FINANCE ~
RECONSTRUCTION, REMODELING, FURNISTIING AND EQUIPPING OF TH~
EX/STING SALINA PUBLIC LIBRARY, AND APPROVING AN INTERLOCAL
AGREEMENT W1TH RF_SPECT TO SUCH PROJECT AND FINANCING.
Wlq-E.~, the Salina Public Library (the "Library") desires to alter, repair, reconstruct,
remodel, replace or make additions to, furnish and equip its existing library facility (the "Project") at an
estimated costs of approximately $1,848,000, a portion of which cost will be paid by the Library from
fimds on hand or to be received during the work on the Project; and
~, the City of Salina, Kansas (the 'City") has agreed to assist the Library in the
Project by providing financing for that portion of the Project which the Library will be unable to pay for
with funds on hand or to be received during the work on the Project; and
WtlERF_.AS, the City is authorized to issue its obligations to finance the Project under the
authority of K.S.A. 12-1736 ~ seq.
~EFORE, BE IT RF~OL~ BY Tlq2E GOVERNING BODY OF TII2E CITY OF
SALINA, KANSAS:
SECTION 1. It is hereby deemed and declared to be necess~, and in the public interest for
the City to issue its obligations in the form of general obligation bonds (and, if necessary, pending
issuance of the bonds, its temporary notes) under the authority of K.S.A. 12-1736 et s~.. to finance a
portion of the cost of the Project in the amount of approximately $750,000.
SECTION 2. The City expects to incur capital expenditures on and after the date of adoption
of this Resolution (the "Expenditures") in connection with the Project, and intends to reimburse itself for
such Expenditures with the proceeds of such obligations of the City in the estimated maximum principal
amount of $750,000.
SECTION 3. The proposed Interlocal Agreement between the City and the Board of Directors
of the Salina Public Library (the "Agreement") with respect to the Project and the financing thereof is
hereby approved in substantially the form presented to the governing body on the date hereof. The
Mayor is hereby authorized to execute the Agreement for and on behalf of the City.
SECTION 4. This Resolution shall be in full force and effect from and after its adoption by the
governing body of the City.
ADOPTED by the governing body of the City of Salina, K~sas, on August 12, 1996.
(S~)
ATTEST:
Mayor
City Clerk
PROJECT HISTORY
Once the need became evident, the Board, in 1992, appointed a
committee of Board, staff and public, who were library users and members
of the Friends of the Library. An architect was hired to help work through
the early planning phases and to give cost estimates. The firm of
Jones-Gillam, Inc. of Salina was hired.
The committee met monthly for a year. The Salina Journal ran a front
page story in July, 1992, and the committee obtained ideas from the
public, Board, and staff through a short survey form. The priorities were
discussed and set.
PRIORITIES
1 Increased space for Children's services and collections
2. Multi-purpose Room for Pre-school Storytime, programs and
meetings
3. Creation of quiet study spaces and a machine room for.
copiers and microfilm readers
4. Improved access for the disabled
5. Use of existing space(including lower level) first and to best
advantage
The committee reviewed several options, all of which involved
adding on to the Children's Library and using the basement for some
public services. The cost estimates were in excess of 3 million dollars, so
the Board directed the committee to find a more economical plan.
The Committee completed their work in late 1993. The final
cost estimate came in at $1.86 million. A timetable of 1996-97
was proposed for consideration. In December, the Board hired Jones-
Giilam, Inc. to work with the Staff to develop schematic plans to display to
the public. The plans were completed in the fall of 1994. The plans have
been on public display for 7 months now and the response has been
positive.
In October,The Library Director, Joe McKenzie, met with the City
Manager, Dennis Kissinger, City Finandal Director, Bob Biles, and City
Planner, Roy Dudark to discuss the plans, funding options and City Capital
Improvement Projects. This led to a meeting with the City Commission in
November of 1994, during a study session. The purpose of this meeting was
to increase the City Commission's awareness of the details of the project
and to let them know that a possible proposal for an interlocal agreement
to complete funding for the project could be coming in 1995.