TOWN OF DURHAM 75 NEWMARKET ROAD

DURHAM, NH 03824-2.(~NDA ITEM. Tel: 603/868-5577 ·

Fax: 603/868-5572 DATE: May 20. 2013

COUNCIL COMMUNICATION

INITIATED BY:

AGENDA ITEM:

CC PREPARED BY:

PRESENTED BY:

AGENDA DESCRIPTION:

Todd I. Selig, Administrator

PRESENTATION AND DISCUSSION RELATIVE TO PROGRAM, DESIGN, COST ESTIMATES, CONSTRUCTION OPTIONS, AND LEED DESIGNATION FOR THE TOWN HALL PROJECT- ART GUADANO, AG ARCHITECTS AND PAUL LEVEILLE, THE JORDAN INSTITUTE

Jennie Berry, Administrative Assistant

Art Guadano, AG Archit s Todd I. Selig, Adminis ator

On Monday evening, architect Art Guadano will give a presentation to the Council relative to the Town Hall project at 8 Newmarket Road which will include the elements of program, design, cost estimates, construction options, and LEED designation/ certification. Paul Leveille of the Jordan Institute will also be in attendance to answer questions and provide information.

At the conclusion of Mr. Guadano's presentation and following a discussion between Councilors and Messrs. Guadano and Leveille, the Council will be asked to provide direction on this project regarding, among others:

1. Whether or not the Council desires to pursue Scheme J. 2. Discuss other design elements relating to anal a carte of potential items. 3. Discuss and decide whether or not to pursue LEED certification. 4. Discuss what funding sources are available and which to use in order to

support any project enhancements.

LEGAL AUTHORITY:

N/A

LEGAL OPINION:

N/A

~ -\..,. Pnnted on Recycled Paper

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Council Communication, 5/20/13- Page 2 Re: Presentation & Discussion w /Art Guadano and Paul Leveille-Town Hall Project

FINANCIAL DETAILS: Project budget (construction/engineering) $ 1,333,700.00

Estimated Construction Cost $ 1,141,550.00 HV AC Commissioning (Code Requires) $ 15,808.00 Final Design/Construction Fees PO No. 13024 $ 191,814.00 Total Est. Project Cost $ 1,349,172.00

*Est. Dollar Amount (Over)fUnder Project Budget $ (15,472.00)

Administrator's Recommended Additional Items (Group 1 -function driven) First Floor Rear Expansion (Provides fully functional Town Clerk-Tax Collector/ Meeting Space) $ Basement storage below lobby (providing equivalent space to existing facility) Drywall and vapor barrier second floor of existing bldg. (LEED generated but high performance item) Bike rack ($1000 cost but eliminated by using existing bike rack at 15 Newmarket Rd.) RlO insulation under slab (LEED generated but high performance item) R5 windows (LEED generated but high performance item) R20 perimeter insulation (LEED generated but high performance item)

$

$

$

$ $

$ R40 insulation above foundation (LEED generated but high performance item) $ R60 roof insulation (LEED generated but high performance item) $ Replace plumbing fixtures w. low flow (LEED generated but high performance item) $ Deeper foundation for long-term future expansion behind Council chambers $ Subtotal Group 1: $

37,752.00

26,360.00

3,234.00

1,000.00 5,000.00

2,000.00

2,000.00 5,000.00

5,000.00

8 015.00 95,361.00

Items recommended by the public at 4/25/13 forum (Group 2- aesthetically driven) Scheme J (Preferred design at 4/25/13 public forum) $ 50,000.00 Set back Council Chambers for additional landscaping in front of bldg. (Preferred design at 4/25/13 public forum) $ 14,400.00 Subtotal Group 2: $ 64,400.00

Additional items suggested by community members at 4/25/13 public forum Revised basement stair/First floor office entry $ 26,565.00 Alternate stair w I corridor window, view to pond $ 39,560.00 Subtotal Group 3: $ 66,125.00

Council Communication, 5/20/13- Page 3 Re: Presentation & Discussion w /Art Guadano and Paul Leveille-Town Hall Project

Additional Items for Consideration (Group 4) LEED Silver Certification $ HV AC Enhanced commissioning LEED $ Commissioning alternates $ Basement bathroom w /shower $ Replace HVAC Equip.(for greater efficiency and fewer emissions) $ Water filters for drinking water $ Hot water dispensers $ Certified 1 umber $ Subtotal Group 4: $

ADMINISTRATOR'S OVERVIEW AND RECOMMENDATION:

6,600.00 11,002.00

6,628.00 4,368.00

36,750.00 1,500.00 1,000.00 9,000.00

76,848.00

The goal of the Town Office project was to cost effectively reuse the 8 Newmarket Road former bank building so as to meet the basic functional needs of Town operations for the next 20+ /-years with opportunity for expansion to meet the Town's needs for the next 50+ years.

We have the capacity to stay within the original project budget of $1,333,700 (*)but as a result of the architects detailed review of plans with staff and a LEED review undertaken to meet the Council's goal of sustainability we have arrived at several conclusions which are itemized in Group A (above)and described below:

A) Storage space should be created under the new lobby to allow for sufficient storage capacity to properly service the building.

B) A modest rear expansion is necessary to provide truly functional space for the Town Clerk/Tax Collector and an additional small meeting room.

C) Through our LEED discussions, we undertook energy modeling of the building and additional insulation should be added resulting in a high performance facility per Council goals.

Mr. Selig recommends moving forward and increasing the project budget by $95,361 to include Group A items, all of which are function-based. Such funds are recommended to be derived through the use of unreserved fund balance totaling $100,000.

The items in Group B are important aesthetically for the community based upon feedback received at the public forum we held on April25, 2013. They are items that, without which, community support is diminished for the project. It is recommended that the Council give serious consideration to these items although they are not necessary for a properly functioning facility.

I£ the Council is inclined to move ahead with Group B items, Mr. Selig recommends funding them through increased project debt service.

Council Communication, 5/20/13- Page 4 Re: Presentation & Discussion w /Art Guadano and Paul Leveille-Town Hall Project

Items in Group C and D are worthy items for consideration. Some of them were suggested during the April 25th public forum, others have to do with LEED commissioning in order to set an example for the community and developers in terms of excellence in sustainable design. If these items are included, Mr. Selig recommends addressing them as funding allows through use of undesignated fund balance. Recall, though, that we have been working overtime to increase undesignated fund balance per our fund balance policy. (See attached)

It is important to remember that the Public Works Department will be undertaking considerable excavation work to allow the project to be constructed which is not included in our HUTTER estimates. In addition, while we plan to reuse virtually all of our existing furniture, there will be a need to purchase some new furniture and this will be addressed through the Town's general contingency line, as would other unforeseen terms that might arise during construction that exceed the project contingency line of $25,000.

*Note: There is a $25,000 contingency line within the construction budget and the pricing listed at this juncture is based on HUTTER's best estimates, subject to change upon receipt of bids. We plan to bid the project in various configurations allowing some flexibility in keeping within budget or adding desired components. The take away from this figure is that we are tracking very closely to original budget.

SUGGESTED ACTION OR RECOMMENDATIONS: Hold discussion and take action relative to the Administrator's recommendations stated under "Financial Details" above.

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TOWN OF DURHAM, NH GENERAL FUND- FUND BALANCE POLICY

I. PURPOSE AND SCOPE

The general purpose of this policy is to ensure the Town of Durham's financial stability by protecting itself against emergencies and economic downturns. This policy is also designed to help the Town prepare for a fmancial emergency as well as contribute to the continuity of financial operations. This policy encompasses the minimum required fund balance reserves, as well as the allowable uses of fund balance reserves.

This policy is written in accordance with the Governmental Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, effective for periods ended June 30, 2011 and later.

II. DEFINITIONS

Fund Balance: The accumulated equity balance in a governmental fund resulting from operations over the years. This is the difference between fund assets and fund liabilities. Total Fund Balance is classified into the following categories:

Nonspendable Fund Balance- permanent trust funds (nonexpendable portion) and non­cash assets such as inventories or prepaid items.

Restricted Fund Balance- funds legally restricted for specific purposes, such as grants, public library, income balance of permanent funds, and capital project funds which cannot change purpose.

Committed Fund Balance - amounts that can only be used for specific purposes pursuant to a formal vote by the Town . Council; such as expendable trust (capital reserve), nonlapsing appropriations, and other special revenue funds not listed under restricted which can change purpose via vote by the Town Council in accordance with the provisions of the New Hampshire Revised Statutes Annotated (RSAs).

Assigned Fund Balance- amounts intended by the Town Council for specific purposes. All appropriations shall lapse at the end of the fiscal year unless authorized in accordance with the provision of RSA 32:7. The Council can choose to delegate to the Town Administrator or Business Manager, depending on the situation. Items that would fall under this type of fund balance could be encumbrances.

Unassigned Fund Balance - residual spendable fund balance after subtracting all of the above amounts.

General Fund: A fund used to account for basic governmental services supported mainly by tax revenue. Accounts for all fmancial resources not required to be accounted for in another fund.

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GENERAL FUND- FUND BALANCE POLICY

Overexpenditure: In emergency situations which may cause an overexpenditure of total appropriations, the Town will follow the provisions of the State Municipal Budget Law (RSA 32:11).

Spending Prioritizations: When an expenditure is incurred that qualifies for payment from either of the three unrestricted fund balance categories, it will be applied in the following order:

·1) Committed; 2) Assigned; 3) Unassigned

III. FUND BALANCE RESERVES- GENERAL FUND

Fund Balances recommended by the NH Department of Revenue Administration (DRA) and the Government Finance Officers Association (GFOA) are as follows:

If All Appropriations

and Tax Unassigned Fund Balance Commitments Recommended:

Total:

8% 17% $25,000,000 $2,000,000 $4,250,000 $30,000,000 $2,400,000 $5,100,000 $35,000,000 $2,800,000 $5,950,000 $40,000,000 $3,200,000 $6,800,000 $45,000,000 $3,600,000 $7,650,000 $50,000,000 $4,000,000 $8,500,000

Minimum Target Balance: The Town shall work toward maintaining an unassigned fund balance of at least 5% to 8% of the general fund's annual budget, including Town, School and County appropriations.

Plan for Target Balances: The unassigned fund balance target level shall be achieved by conservatively estimating revenues and using only minimal amounts to reduce the tax rate when necessary. Furthermore, attaining the target fund balance level of 8% may also be achieved by adding a line item to the annual budget for the sole purpose of building unassigned fund balance, if it is determined appropriate to do so.

Fund Balance Uses: Unassigned fund balance may be used to offset property taxes as part of the final adopted budget for a fiscal year keeping in consideration the Town's desire to maintain a targeted unassigned fund balance level of 5% to 8%. For emergency purposes, or other uses as deemed necessary, the Council may appropriate unassigned fund balances even if such use decreases the unassigned fund balance below the designated percentage.

j Adopted by Durham Town Council 0 c to be r 1 , 2 0 12

Page 2

Budget Summary

Durham Town HallAG Architects Project No. 12-63515 May 2013

Estimated Construction Cost:Scheme E, 7 Nov 12 Plan w/Blinds and Markerboards $1,111,550 Scope Not Included:Automatic Entry Doors 10,000 Sound SystemAdd ERV’s in Existing Building for Ventilation 20,000 Security System

GeneratorSubtotal $1,141,550 Furniture

Work by Town:HVAC Commissioning (Code Requires) $15,808 Sitework/Excavation

Site Utilities

Final Design/Construction Fees, Purchase Order No. 13024:Schematic Design Completion $4,200Design Development Completion 14,814Geotechnical Evaluation 5,000Energy High Performance Design/Modeling 28,600Construction Documents 78,400Civil 4,500Bid 8,000Construction Administration 43,800Reimbursables 4,500 Est.

Subtotal $ 191,814*

Budget Summary:Estimated Construction + Commissioning + Design Costs

Total $1,349,172

Potential Changes:First Floor Rear Expansion (Town Clerk/Tax Collector/Meeting) $ 37,752Basement Storage Below Lobby 26,360Scheme J 50,000Landscape Area/Council Chambers 14,400Insulation Upgrade 7,355Drywall and Vapor Barrier Second Floor 3,234Basement Bathroom with Shower 4,368HVAC Enhanced Commissioning (LEED) 11,002Commissioning Alternates 6,628LEED Silver Certification 6,600LEED Additional Items 25,500Revised Basement Stair/First Floor Office Entry 26,565Replace HVAC Equipment 36,750Deeper Foundation for Future Expansion 8,015Alternate Stair with Corridor Window, View to Pond 39,560

$ 304,089

Total CIP Budget for Design and Construction: $1,333,700

* Alternate Two-Floor Rear Addition fees not included, Scheme J design changes included.

General Conditions $93,820Bonds $10,550Demolition $12,000Concrete $75,725Masonry $65,045Metals $35,000Rough Carpentry $68,500Millwork $30,000Insulation $44,145Weather Barriers $7,925Roofing $30,000Siding $7,000Joint Sealants / Caulking $5,000Doors and Hardware $34,100Storefront / Glass $30,000Wood Windows $19,000Gypsum Wall Board $38,000Acoustical Ceilings $28,275Flooring $31,000Painting $22,250Signage $500Window Blinds $5,000Marker Boards $8,000Toilet Accessories $1,980Fire Extinguishers $500Elevator $50,000Fire Protection $35,000Mechanical $115,045Electrical $130,190* Rear Addition / Town Clerk Conference Space $37,752* Basement storage $26,360* Automatic Door 10000Construction Contingency $25,000Fee $53,000

TOTAL $1,185,662

Durham Town HallOption E Schedule of ValuesNovember 7, 2012 and revised May 16, 2013

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* Alternate entry to Town Clerk / revised basement stai $26,565* Landscape area in front of council chambers / lobby $14,400* Alternate stair with corridor window, view to pond $39,560* Basement Bathroom / Shower $4,368* Add for LEED Items $34,500* Drywall and vapor barrier for existing trusses $3,234* Replace HVAC equipment $36,750* Add ERV;s in existing building for ventillation $20,000* Upgrade insulation for addition $7,355* Scheme "J" $50,000* Deeper foundation for west side of council chamber for future addition $8,015

TOTAL $1,430,409

All * items include fee

Not included:Sound System AllowanceSecurity System AllowanceGeneratorSitework and Excavation

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P.O. Box 257, 810 Turnpike Road, Route 124, New Ipswich, New Hampshire 03071

Office: (603) 878-2300 FAX: (603) 878-3519

May 15, 2013

LEED Items

1. 3’ x 3’ fiberglass shower 2000

2. Bike rack 1000

3. R10 under slab insulation 1000

4. R5 windows 5000

5. R20 perimeter insulation 2000

6. R40 insulation above foundation 2000

7. R60 roof insulation 5000

8. Water filters for drinking water 1500

9. Hot water dispensers 1000

10. Certified lumber 9000

11. Replace existing plumbing fixtures with low flow 5000

$34500