HomeMy WebLinkAboutMinutes - 10/16/1989 - City CouncilSPECIAL MEETING
MONDAY, OCTOBER 16, 1989
A Special Meeting of the McHenry City Council was called to
order by Mayor Busse on Monday, October 16, 1989 at 7:30 p.m. at City
Hall. At roll call the following Aldermen were present: Bolger, Lieder,
McClatchey, Patterson, Serritella, Smith. Donahue arrived at 8:05 P.M.
Absent: Teta. City staff in attendance: Assistant to City Clerk Marth.
Absent: City Clerk Gilpin.
Mayor Busse announced the purpose of the meeting was to discuss
the next steps in the construction of a new city hall.
The first item for discussion was whether or not to utilize the
current City Hall with some departments remaining here.
Busse felt that if the Police Department stayed, there would
have to be extensive remodeling to bring it into conformance with State
life -safety codes which on January 1st become Federal regulations as
well. If in 5 years the Police Department is moved into the new
building, the same life -safety codes would have to be built in to begin
with, thus doubling the cost of complying with those regulations. Busse
would like to see all departments moved into the new building, if the
cost is not prohibitive. He felt the current city hall should be sold
with the proceeds used to help pay for construction of the new building.
Serritella felt that since all departments worked closely
together, they should all be in one building.
Patterson said that he felt the Police Department could be
segregated without any loss of service in the community, but he didn't
think it wise to put money into two buildings if we could get all
departments into one.
McClatchey was in favor of every department under one roof. He
felt the new city hall should also be a civic center with a lot of
activity.
Smith said he too would like all departments under one roof and
the only thing that would change his mind would be the cost. He felt the
quality of the new building should not be jeopardized by putting all
departments under one roof if the cost is prohibitive. He wanted a
quality building for what we could afford and if that meant leaving the
police department here for a few years and then adding on later, that
would be o.k.
Lieder said he would like to keep the police department here for
a while along with the Court facilities because of the wear and tear and
traffic problems these would create on the new building. But, if the
cost to renovate the current city hall along with duplicating operation
and maintenance is too much, then he would favor putting everything under
one roof
Bolger thought that the consensus at the last meeting was thdi
the current city hall would be kept and not sold. He felt that when we
start receiving the estimate of costs for construction, there would be a
rude awakening. He felt that this building could be utilized along with
space at the Landmark School building.
The next item to be discussed was the financial needs.
Busse explained a new law recently passed called "alternate
bonds" which are payable from a pledged revenue source, such as
annexation fees, sales tax, etc. The advantages of this general
obgligation alternate bond issue would be:
- The bonds do not count against the general obligation bond
debt limit of the City.
Bond payments are not included in the tax rate unless the
alternate revenues are not available.
- Bonds do not require a referendum;
Monday, October 16, 1989
Page 2
- Bonds will sell at interest rates lower than an
installment contract, lower than revenue bonds and
possibly lower than voted bonds due to both the pledge of
revenue and property tax backup.
Bond proceeds can be invested to earn interest for a three
year period without arbitrage limitation.
Busse stated that the land was purchased for cash and the City
would realize a conservative year-end cash balance of approximately
$500,000 excluding the water/sewer fund. These funds could be used to
furnish the building. Capital Development fees could be used to extend
the water/sewer lines to the site and possibly water system improvements.
Busse said that a reasonable construction amount would be
between $2,000,000 - $3,000,000 and using an alternate G.O. bond issuance
over 15 years, the debt service would be $220,000 to $260,000 a year for
principal and interest. The construction amount is based approximately
on a 30,000 square foot building at $90 a square foot which comes to
$2,700,000 plus or minus 20%.
The third item discussed was the design -build option of
construction versus the architect option.
Donahue explained that the essential difference between the
design -build and architect options is that a design -build firm has the
architect and developer/builder usually on staff and is a complete
management concept from inception to owner occupancy, as in a turn -key
operation. The architect option is that each entity would be chosen
separately by the Council - the architect, developer/builder, and
possibly someone to monitor construction. An advantage of the
design -build over the architect option is knowing up front what the total
cost of construction would be at the beginning. Donahue felt that
design -build would be the most cost-efficient way to go. With both
options using the bidding process on subcontractors, local tradesmen
could be utilized. Donahue stated that after viewing several newly
constructed city halls, she found that those who went with the architect
option ended up with problems still needing to be resolved because of
dissatisfaction with the end results.
A long discussion followed on the merits and drawbacks of both
methods. The following poll was taken of the Council to determine which
option was preferred:
Donahue Design -build.
Lieder No opinion - need more information.
Smith Either way.
McClatchey Leans toward design -build.
Patterson Either way.
Serritella Need more information.
Bolger Design build.
Busse Design -build.
Of the list of 23 firms that submitted literature to the City on
a rvices they provided, it was decided to choose five firms to give a
ju-minute presentation each on October 30, 1989 beginning at 7:00 p.m.
based on the following criteria:
1. Services provided - detailed.
2. How fees are structured and rate.
3. Portfolio of firm's accomplishments in municipal
building/complex area.
4. List of municipal references.
5. Whether they offer design/build or architectural services
only.
The Mayor and Donahue are to choose the five firms.
Motion by Smith, seconded by McClatchey to adjourn.
Meeting adjourned at 9:20 p.m.
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