City Council Meeting Date: February 13, 2018
To: Mayor and City Council
City Administrator
From: David E. Bennett, Public Works Director/City Engineer
Title
Consider Resolution to authorize Budget Amendment for the Northfield Community Resource Center (NCRC) Senior Center Roof Repair Project.
Body
Action Requested:
The Northfield City Council approves the attached Resolution authorizing a Budget Amendment to the NCRC Fund for the Senior Center Roof Repair Project. This requires a super majority vote of the Council for approval (5 of 7).
Summary Report:
In July, staff updated Council that it has been working with the management company at the NCRC and representatives from the Senior Center reviewing issues with the roof over the pool area of the Senior Center. Staff engaged ATS&R Architects to review the roof and provide a scope of work on the needed repairs.
ATS&R provided an estimate of the repairs on the roof (Attachment 1) of $180,000. However, prior to proceeding, ATS&R recommended that we complete mechanical testing and balancing on the air circulation and pool dehumidification to make sure it is operating properly for the space at the operation temperature of the pool.
A mechanical review of the existing dehumidification equipment was completed in July (Attachment 2). Upon review of the existing mechanical equipment it was determined the main Seresco dehumidification unit is in good condition and appropriately sized for the space. However, three exhaust fans were found to be not operating or in poor condition and need to be replaced. The management company has replaced the exhaust fans and is in the process of getting the mechanical systems balanced.
With mechanical systems sized correctly and operating, the focus is now on the needed roof repairs. After further review of the roof, staff reviewed potential warranty issues with the shingles, however, with the mechanical systems not operating appropriately the sheathing/decking underneath has warped, which is causing the leaking. It is not a shingle warranty issue. Therefore, the project scope includes replacing the warped sheathing.
Staff has submitted an insurance claim to the League of MN Cities Insurance Trust, the City’s insurance provider. Should all or a portion of the claim be accepted by insurance, this would reduce the amount needed from the NCRC Fund.
Staff is reviewing language of the lease agreements on the NCRC Fund and some of the costs of repair may potentially be allowed to be recaptured through future lease repayments. AEM Financial Solutions is continuing their financial analysis. Staff will be giving a more detailed report as the project proceeds including more evaluation of financing. For now, it is very important to proceed with repairs.
Alternative Options:
Staff is recommending replacement of the entire roof over the senior center. An alternative option is to just fix the area over the pool, which could save roughly $50,000. However, there are other leaks in the roof over the senior center, not just over the pool. If Council would like to discuss this further it may be recommended to be removed from the consent agenda.
Financial Impacts:
This repair was not included in the 2018 NCRC Fund budget. An amendment is needed to include this $180,000 expenditure in 2018. The fund balance is approximately $230,000 at 12/31/17. After this expenditure, the fund balance would drop to approximately $50,000.