06/26/1985 Meeting - Laserfiche WebLink

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~ . M E M 0 RAN DUM - July 5, 1985 TO: Mayor and City Council FROM: Mike Gleason, City Manager SUBJECT: FINANCING AIRPORT TERMINAL DESIGN At your June 3 work session on the Eugene Agenda, Councilors Hansen and Rutan suggested that work on the airport terminal design continue during the period that Council is seeking a capital financing source (July -- November, 1985). Completion of the design work will ensure that the project can go to bid within six months of assured financing, the cost estimates continue to be valid and the expenditures to date on the design are not lost due to design/cost obsolescence. Staff was asked to prepare an analysis of the cost to continue the design work and to propose a financing plan. Based on a workp1an prepared by the project team, $610,000 is reauired to complete the design development plan. The breakdown is as follows: Architectural fees and reimbursable expenses $445,700 Value engineering and architectura1/ engineering coordinator 20,000 e Landside engineering 120,000 Landscape architecture 20,000 Administrative costs 4,300 TOTAL $610,000 The FAA has indicated it will commit $107,000 toward this effort, leaving a balance of $503,000 to be financed. Please note that the $610,000 will take the project to the end of the design phase ( a four-month effort) and that an additional $500,000-$600,000 will be reauired to complete the bid contracting documents. However, if financing for the project is obtained, the $17.1 million project cost includes the design/bid document preparation cost; and, thus, the expenditures for the design and bid documents can be repaid from the proceeds of the long-term financing. The Airport Fund does not have unobligated funds to finance the design nor are there other unobligated or unreserved sources of funds available. However, we do have Internal Service Funds with replacement reserves that can support an interfund loan to the Airport Fund. We are proposing an interfund loan from the Fleet Fund, using fleet replacement reserves as the source of funds. Fleet replacement reserves are dedicated to future replacement of vehicles and communications eauipment and are not currently reauired for expenditure. The interfund loan will be repaid as follows: e .