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Approving the use of the Internal Loan Fund for the Department of Parks and Recreation's Como Pool Project Initiative for costs incurred to address unstable soil conditions in the Como Pool Project.
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WHEREAS, the City closed the Como Regional Park Pool when maintenance and operation costs began to outweigh cost effective and suitable operation of the pool; and,
WHEREAS, the City Council approved the Como Pool Replacement project as part of the 2010 Adopted Capital Improvement Budget (CF: 09-1368); and
WHEREAS, the City Council also approved the Como Pool finance plan in preparation for the 2010 bond sale (CF 10-776); and
WHEREAS, the City is committed to providing an aquatics facility at Como Regional Park; and,
WHEREAS, a public design process was held to develop a master plan for the Pool facility; and,
WHEREAS, an aquatics consultant was hired to develop a pool facility based on the outcome of the public design process and prepare construction documents for construction; and
WHEREAS, the construction of the pool project is currently underway through October 2011 with an opening of the pool scheduled for spring of 2012; and,
WHEREAS, during excavation for the pool and support facility, severely unstable soil conditions were found to a depth of 30 feet including the remnants of an old building structure. These soils had to be removed and replaced with stable soil suitable for building and pool foundations; and,
WHEREAS, the soil issue necessitates a change in the capital budget for Como Pool; and,
WHEREAS, in addition to soil issues, contracts for the east parking lot, parking lot lighting and a trail to Horton Ave were not included in the original contract award due to insufficient funding, and
WHEREAS, Parks and Recreation had an original budget including a solar grant for Como Pool construction of $7,530,207.66; and,
WHEREAS, Parks and Recreation requested and was granted from the Metropolitan Parks and Open Space Commission approval to revise the scope of an existing 2008 Metro Parks grant for Como Regional Park-Estabrook Dr./Nason Place improvements to include the Como Regional Park Pool project and to utilize the balance of $240,567; and,
WHEREAS, Parks and Recreation also requested and received approval from the Metropolitan Parks and Open Space Commission to request funding in the next Regional Park Capital Improvement Process (CIP) cycle to reimburse funds to the Como Pool project; and,
WHEREAS, this funding/ reimbursement opportunity from Metropolitan Council will make additional funding available in the amount of $1,344,347 to solve the soil issues and complete the originally approved project by including the parking lot, parking lot lighting and the trail to Horton Ave for a total pool project of $8,874,554.66; and,
WHEREAS, in March of 2011, the Parks requested that the City provide an internal loan; and
WHEREAS, $803,780 of this funding is not available until July 1, 2012; and
WHEREAS, it is less expensive to borrow money internally than it is from outside the City; and
WHEREAS, to continue the project and remain on schedule, Parks and Recreation needs an internal City loan of $803,780 to be paid back upon actual funding from Metro Parks CIP that is projected to be available July 1, 2012; and,
WHEREAS, the Office of Financial Services has prepared a "Record of Internal Loan" agreement to accomplish the financing of $803,780 which is attached as Exhibit A; and
WHEREAS, there will be secure assets dedicated to the Internal Borrowing Fund - Fund 070 to support repayment of principal and interest to the funds advancing the use of cash: and
WHEREAS, the details of the advances from the Internal Loan Fund and repayment are set forth in the Record of Internal Loan (see Exhibit A);
WHEREAS, Parks and Recreation also seeks to utilize $300,000 of spending authority in 2011 from the Parks and Library Capital Asset Revitalization Fund to be paid back by the Metropolitan Council Parks CIP in July, 2012; and,
WHEREAS, with the actions stated above, Parks and Recreation will have assembled the additional $1,344,347 of budget authority to continue the project and open on time in Spring, 2012; and,
WHEREAS, the Mayor, pursuant to Section 10.07.1 of the Charter of the City of Saint Paul, does certify that there are available for appropriation, funds of $1,344,347 to be redirected from those estimated in the 2011 Capital Improvement Budget;
NOW THEREFORE BE IT RESOLVED, the City Council approves the use of the Internal Loan Fund for the Parks Como Pool Project Initiative, and for the Parks to reimburse City's Internal Loan Fund for costs incurred as described above; and
BE IT FURTHER RESOLVED, that the proposal set forth in this resolution is approved; and
BE IT FURTHER RESOLVED, that the Interim OFS Director and the Parks Director are authorized to execute Record of Internal Loan to memorialize this in Exhibit A; and
BE IT FURTHER RESOLVED, that the Financial Services Director and the Treasurer will use the cash from the City pool allowed by law, to provide secure financing for the transactions and assure the interest is paid and properly credited; and
BE IT FURTHER RESOLVED, that all internal borrowing and pledges of repayment be reviewed and rated for investment quality by an impartial Saint Paul financial institution and that information be provided to the City Council for consideration in its decision; and
BE IT FINALLY RESOLVED, by the City Council of the City of Saint Paul, upon recommendation of the Mayor and the advice of the Long Range Capital Improvement Budget Committee, that $1,344,347 is available for appropriation in the 2011 Capital Improvement Budget, and said 2011 budget, as heretofore adopted by the Council, is here by further amended as depicted in the Financial Analysis attachment.
Financial Analysis
See Attached
CIB Recommendation
The St. Paul Long-Range Capital Improvement Budget Committee received this request on March 14, 2011 and recommends approval.