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Committee backs placing TCF amendment for expanded public works administration building on council calendar; $40M facility estimate
Summary
The Public Works Committee voted to put TCF Architecture's amendment for redesign of the public works administration building on the Oct. 7 council calendar; the amendment raises the consultant total to $3,697,727 and reflects an expanded building footprint to meet staffing needs.
The Public Works Committee on Sept. 18 voted to place Service Provider Agreement Amendment No. 1 with TCF Architecture PLLC on the Oct. 7 City Council consideration calendar, with a recommendation to approve and authorize the mayor to sign.
Jared Verhey summarized the amendment: the city originally programmed an 8,000‑square‑foot administration building at the new public works facility but, after revisiting staffing and space needs, is redesigning the administration building to approximately 24,400 square feet to accommodate transportation engineering and water resources office staff previously housed off‑site.
The amendment increases the consultant not‑to‑exceed amount by $1,247,727 to a new total of $3,697,727 and extends the agreement through 2026. Jared said the total design and construction costs for the public works facility are currently estimated at approximately $40 million when constructed around 2027; staff said the project will be financed with a bond issuance and that the design amendment is intended to complete the plans, specifications and estimates needed to go to bid.
Troy, the city’s finance director, presented illustrative bonding options and noted that market conditions were changing: as of his presentation the 20‑year bond illustrations assumed an interest rate near 4.65% and a 30‑year near 4.90% (figures based on market conditions earlier in the week), meaning a 20‑year bond would have higher annual payments but lower total interest; a 30‑year bond would reduce near‑term annual payments but increase total interest costs. Troy also noted that Federal Reserve action announced after his memo could lower rates and reduce borrowing costs.
Staff explained funding splits used in planning: the project cost was discussed as split approximately 33% general fund, 28% water, 22% sewer and 17% storm. Staff said the city has little outstanding debt and that the proposed $40 million general obligation bond would be councilmanic (no voter referendum required under state law for this level of indebtedness), with the internal allocation of payments to utilities handled through city accounting.
Council members and staff clarified which staff will move to the new administration building: Jared and Brandon said the plan is to bring transportation engineering (TED) and water resources (WERS) office staff into the new facility and to end a current off‑site lease. Staff emphasized that parks and maintenance functions remain off the current program and that other city offices will be evaluated under a separate city hall campus facilities initiative.
Ending: The committee placed Amendment No. 1 with TCF Architecture on the Oct. 7 City Council consideration calendar with a recommendation to approve; staff will return to council later with financing and final budget decisions as design and cost estimates are refined.
