Council backs moving ahead with CBC police remodel; staff recommends $15M COPs and line of credit for contingency

City staff told the Casper City Council they completed phase 1 demolition and asbestos abatement at the Casper Business Center and recommended proceeding with phase 2 — the building’s core mechanical, electrical and fire-suppression infrastructure — while continuing design for a later phase to finish police department spaces.

Tom (staff) said phase 1 came in under budget at about $4.925 million and that subcontractor bids for phase 2 were under review. He described phase 2 as the vertical infrastructure — boilers, chillers, fire risers, primary electrical risers and new windows — and said phase 3 would be primarily the horizontal work (interior walls, finishes, fixtures) needed to finish police department floors.

Why it matters: staff and council framed the project as a way to consolidate police dispatch and some police functions into downtown facilities, reduce offsite leases, and reuse an existing building rather than building new. Staff presented a funding plan that mixes cash on hand, a short-term line of credit for contingency, and certificates of participation (COPs) to finance an estimated shortfall.

Key fiscal and schedule points presented by staff: - Phase 1 (demolition/asbestos): reported cost about $4.925 million, finished under budget. - Phase 2 (core infrastructure): staff gave a range of estimates during discussion; a detailed subcontractor review was pending. In council materials staff listed a construction estimate in the mid-teens millions (report text referenced $15,500,000 with contingency and other figures); staff said they expected final bids to be lower than older estimates. - Phase 3 (interior finishes for police): staff estimated a remaining scope earlier in briefing that contributed to an upper-end project target of about $40 million for phases 1–3; staff said they aim to reduce that total through value engineering. - Certificates of participation: staff recommended using COPs of about $15,000,000 to cover a funding gap and estimated roughly $1.4 million per year over 20 years at an interest rate staff cited near 4.2 percent. Staff said they were also earning higher returns in their investment pool and therefore preferred COPs to drawing down long-term invested funds.

Council direction and next steps: councilors signaled support for awarding and contracting phase 2 once guaranteed maximum price (GMP) documents and final subcontractor reconciliations are complete. Staff asked for formal authorization to open a line of credit to cover contingency and to proceed with preparations for COPs (credit-rating, bond counsel, offering documents); staff said the COP sale would still require subsequent formal council steps.

Unresolved items and caveats: staff emphasized several items remain to be finalized — firm subcontractor numbers for phase 2, final scope for police spaces, and precise financing terms. Staff recommended proceeding with phase 2 now to avoid further inflation on construction costs; council members asked staff to return with clear financing plans for the long-term debt service and to provide a formal resolution if council wants the city manager and finance director to open a line of credit.

The discussion took place during a detailed agenda item on remodel planning for the Casper Business Center and police facilities.