2B, Ramsey County Public Works Facility Discussion

Home Browse Search

r r -A EN HILLS MEMORANDUM DATE: February 21, 2007 AGENDA ITEM 4E TO: Honorable Mayor and City Council Michelle Wolfe, City Administrator FROM: Sue Iverson, Finance Director SUBJECT: Final Payment to Ramsey County for Joint Public Works Facility BACKGROUND In 2003, the City of Arden Hills entered into a Joint Agreement for Financing, Operations, and Use of the Ramsey County Public Works/Partners Facility. This agreement was between Ramsey County, Mounds View School District and the City of Arden Hills. Work started on the facility in August of 2003. The original budget for the facility was $30,443,461, of which $2,387,514 was allocated to the City of Arden Hills_ Per the agreement, the City made quarterly payments of$1,790,636, with the balance due upon substantial completion. $596,879 was set up in a contracts payable account in 2004. DISCUSSION The City has now received the final billing from Ramsey County. Total construction costs for the facility were $27,733,713 vs. the budgeted costs of$30,433,461. This results in a savings of $2,709,748, of which $255,131 is allocated to the City of Arden Hills. FINANCIAL IMPLICATIONS The amount that was reserved for these costs in the PIR capital fund is $596,879. The final bill to Ramsey County is $341,747.50. The difference is $255,131.50 which is now available to allocate to other capital improvements. CITY STAFF RECOMMENDATION Motion to approve payment to Ramsey County in the amount of$341,747.50 for the final payment of the City of Arden Hills share of the Ramsey County Public Works/Partners Facility.