HomeMy WebLinkAbout27. 17-116 MARCH 14, 2017 17-116 RESOLUTION
(CARRIED 6-1 LOST LAID OVER WITHDRAWN )
PURPOSE: AMEND 2017 CAPITAL IMPROVEMENT PROGRAM
INITIATED BY: CITY ADMINISTRATION
WHEREAS, the City Manager has prepared, submitted and recommended a
Capital Improvement Program for the year 2017, wherein is listed all anticipated revenue
and expenditures for said year, which program has been filed with the Common Council
and the City Clerk, and is available for public inspection.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Oshkosh that the 2017 Capital Improvement Program, on file in the City Clerk's Office,
is hereby approved with adjustments as listed in attached Exhibit "2".
PROPOSED AMENDMENTS: 02.28.16
Convention Center Capital Project
Funded with State Trust Fund Loan, applied for March 2017 or
project contingency
PROPOSED AMENDMENTS:
2017 CAPITAL IMPROVEMENT PROGRAM ADJUSTMENTS
PROP. IMP. PARK
PAGE STREETS TRAFFIC EQUIPMENT IMPROV SIDEWALKS WATER SANITARY STORM
R - R - R 1 SM flflf) R - R - R - R - R -
1$ - $ - $ - $ - $ - $ - $ - $
EXHIBIT 2
TOTAL
1,500,000 $
- $
- $
- $
- $ -
$ 1,500,000
1,
ushkosh
MEMORANDUM
TO: Honorable Mayor and Members of the Common Council
FROM: Trena Larson, Finance Director
DATE: March 9, 2017
RE: Amend 2017 Capital Improvement Program to increase available project funds for
Convention Center Improvements and authorize borrowing from Board of
Commissioners of Public Land (BCPL) State Trust fund Loan program.
BACKGROUND
In 2015 assessments were conducted of the Oshkosh Convention Center to identify a 15-year capital
replacement program to ensure the facility continues to be operationally functional and competitive
among convention/meeting facilities throughout the State. The assessments covered a wide variety of
areas including HVAC,roofing,kitchen equipment, AN equipment/systems, interior design items,
electrical systems, emergency generator, moveable walls and more (See exhibit 1). The assessments
identified approximately$1.5M in necessary capital improvements. Working with Facilities
Maintenance staff and representatives from the Convention Center Operator (Oshkosh Investors, LLC),
the priority of these projects were determined based on existing operational need.
This evening the Council will consider a Resolution 17-08 to award bid to Maccos commercial Interiors
Inc.for Carpet Replacement($239,090.00),Faith Technologies Inc.for Electrical Upgrades($37,800.00) &
Omni Glass&Paint for Painting&Wallcovering Improvements($65,877.00)for the Oshkosh Convention
Center to begin the proposed capital improvements.
ANALYSIS
The items that have been included in Exhibit 1 were not included in the 2017 Capital Improvement
program (CIP) as staff was still evaluating and prioritizing the projects which needed to be completed.
Staff is requesting a 2017 CIP Amendment be made to include the Convention Center Capital Project
into the 2017 CIP. As shown on Exhibit 1, this project is divided into 2 phases. It is anticipated that
Phase I projects will be completed in 2017. It is anticipated that Phase II projects will be awarded in
2018. However, prior to awarding the Phase II projects staff will reevaluate and prioritize these Phase
II projects with any emergent or currently unknown issues which may also require capital investment
with in the facility.
City Hall,215 Church Avenue P.O.Box 1 130 Oshkosh,WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us
FISCAL IMPACT
Staff is recommending funding the 2017 CIP proposed amendment with a State Trust Fund Loan. The
BCPL has a program through which the City is able to issue a revenue loan based upon the city's
pledge of room tax revenue. Staff has proposed a term of 10 years for repayment. It is anticipated this
loan will be approved at 4.5%interest rate,which is slightly higher than market rate,however, there
are no costs of issuance. In discussion with Ehlers,they have advised a sale in the public debt markets
would not be cost effective due to the small loan size, the pledge of room taxes as a security, and high
transactional costs. Because the City has outstanding debt related to the 2010D General Obligation
bond issue which will satisfied in 2020, BCPL will allow the City to make a reduced principal payment
in the first three years of this loan.
Pending approval from the BCPL of the loan, the City will pledge an alternative funding source from
project contingency, in the 2017 Capital Improvement Program.
RECOMMENDATION
Staff recommends adoption of the above noted amendments to the 2017 Capital Improvement Plan and
seeks authorization to apply to BCPL for a State Trust fund Loan in the amount of$1,500,000.
Respectfully Submitted, Approved:
Yr-
a larson
Trena Larson Mark Rohloff
Finance Director City Manager