March 7, 2007 Minutes
Library Building Committee
City of Fargo
Minutes of March 7, 2007
Members present: Linda Coates, Mike Williams, Pat Zavoral, Herb Snyder, Helen Levitt, Beth Postema, Betty Kerns
Others Present: Richard Moorhead and Marcia Pulcinski of Image Group; Jack Poling of MS&R via telephone; City of Fargo staff; public and media
I. Welcome Betty Kerns
Betty Kerns replaces Michael Sebille on the Library Building Committee as the Friends of the Fargo Public Library representative.
II. Minutes
Helen Levitt moved to approve the minutes of December 19, 2006, as presented. Herb Snyder seconded the motion; the motion carried.
III. Continuing Business
The bids to the main library were significantly more than anticipated. Jack Poling pointed to three components underlying the difference. First, the estimates were off. The other factors included the complexity of the project in using existing structure as well as partially dismantling the building and constructing around what is left.
The design is larger than the 45,000 square feet from the building plan, but Robert Rohlf traditionally programs very tightly for circulation, stairways, toilets, and mechanical rooms. All items from the program remain in an efficiently designed space appropriate for use. The overhang of the second floor could be eliminated and reduce the plan by 2,000-3,000 square feet.
Currently the capital fundraising campaign is in the quiet phase seeking leadership gifts. The public phase of the capital fundraising campaign will kick off during National Library Week in April.
Kent Costin, City of Fargo Finance Director, presented the committee with funding spreadsheets for the construction fund, consisting of 90% of the sales tax revenues, and the start up fund, consisting of the 10% of sales tax revenues set aside for operations and maintenance as approved by the City Commission.
Construction fund total revenues are approximately $13 million, with $93,000 in donations received and $500,000 interest added at approximately 5%. $1.3 million (10%) was taken from the construction fund for the start up fund as per the City Commission, leaving $12.3 million of which $4.9 million has been expended or encumbered. With projected figures for additional interest and capital campaign fundraising, approximately $8.8 million will be available.
Mike Williams stated the use of more efficient energy saving features could be used out of the 10% set aside start up fund when looking at the operational savings these features would create. $800,000 was suggested to be earmarked for construction. This would bring the available budget to approximately $9.6 million.
Helen Levitt asked how the architects could not have known about the added caisson support and complexities of building on existing structure. The contract for the main library construction transferred from Image Group to M S & R, neither of which have a structural engineer on staff. Caissons typically are not needed for buildings under three stories. The new construction may not need caissons as the differential load between old and new structures will no longer be a concern.
The building authority discussed a form of bridge financing for construction while collecting capital donation pledges. New revenue streams such as methane and electricity may be able to be used to pay off the bridge funding or add to the proposed budget. The general fund can receive up to 20% of the revenues from the new methane and electricity enterprise funds.
Jack Poling stated the architects can proceed from here with two options. The first would take the existing plan which works well based on the program and needs of the library and create a new shell with less complexity. It would no longer have large glass curtain walls, but would still have lots of glass and an elegant exterior. The price per square foot would be similar to the Carlson Library as it would be new construction. $9.6 million would be in the ball park.
The other option would be to look at the existing building and build out instead of up. Again there would be complexity to add to existing structure. It would be a simpler way to reuse the existing structure by adding on to one or two sides of the building and melding it together.
Conceptual designs could be ready in two weeks. Timing would be different with the two approaches. Using the existing plan would be done more quickly and it would work on a fundraising perspective. Some rooms that have been sold with naming rights would no longer exist when creating a one story space. Adding on to the side of the building would be like starting from scratch.
Helen Levitt moved to reject the construction bids of the main library project as submitted. Herb Snyder seconded the motion; the motion carried.
Helen Levitt moved to direct the building committee to work with the architects to come up with a plan with all due speed within a $9.6 million budget. Mike Williams seconded the motion; the motion carried.
A recommendation will be brought to the City Commission on March 12 to earmark $800,000 for construction from the start up fund and to proceed with bridge financing while collecting capital donation pledges. The third element to be brought before the City Commission is the use of future revenues to mitigate some risk in the construction process.
Jack Poling stated the architects were eager to move forward to present a design within budget. Rarely do projects suffer from this process. The final product will not be any less than what was first envisioned.
The committee directed the architects to wait until after the City Commission meeting before proceeding.
III. Next Meeting
The next meeting will be as needed. The meeting was adjourned.
Respectfully submitted,
Monique Andresen