Title
Amending the financing and spending plan in the Department of Parks and Recreation’s Capital Projects Fund to establish the Como Hoofstock Geothermal Heating Project budget in the amount of $528,475, financed by an internal loan and the transfer of annual program funding for capital maintenance projects.
Body
WHEREAS, the Department of Parks and Recreation needs to purchase and install a replacement for the heating system in the Hoofstock building at the Como Park Zoo and Conservatory; and
WHEREAS, Parks and Recreation, with the help of Sustainable Energy Savings, Inc. and other City staff, has developed a budget plan to install a new Geothermal Heating System; and
WHEREAS, Parks and Recreation will use additional funds for the installation of the geothermal heating unit, geothermal well, backup electrical boiler, and associated pumps, piping, and valves to improve the heat distribution in the Hoofstock building, allowing for increased comfort; and
WHEREAS, Parks and Recreation estimates the total cost of the Como Hoofstock Geothermal Heating Project to be up to $528,475; and
WHEREAS, the project is expected to be completed in 2021 and will be financed by a transfer from annual program funding and interest earnings in the amount of $328,475; and
WHEREAS, Parks and Recreation proposes to finance the remaining $200,000 of the project through the use of an interdepartmental loan; and
WHEREAS, there are available funds in Fund 700, (the "City Internal Loan Fund"), to make an advance in 2021; and
WHEREAS, the advance, until repaid, will bear interest at the monthly City treasury portfolio investment rate, ("Pool Rate"), which is variable and reset monthly by the City and will be paid as part of the project cost; and
WHEREAS, the advance will be secured and repaid by energy savings attained by the projects; and
WHEREAS, the Internal Loan has been documented in the Record of Internal Loan, which is attached in substantially final form, and will be repaid within 10 years of the initial City advance as shown in the illustrative example of the Exhibit; and
WHEREAS, it is the desire of Parks and Recreation to amend the financing and spending budget for this project in the amount of $528,475; 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 $528,475 in excess of those estimated in the 2021 budget; now, therefore, be it
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 $328,475 is available for appropriation in the 2021 Capital Improvement Budget, and said 2021 budget, as therefore adopted by the Council, is hereby further amended.
FURTHER RESOLVED, that the Saint Paul City Council hereby approves the attached Record of Internal Loan, and authorizes the Director, Office of Financial Services and the Director, Parks and Recreation to execute the agreement.
Financial Analysis
See Attachment
CIB Recommendation
The St. Paul Long-Range Capital Improvement Budget Committee received this request on June 14, 2021 and recommended approval.