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FINANCIAL IMPACT <br />Phase I -site improvements and some of the soft costs (architects fees, construction manager, survey <br />etc.) will be funded out of the Government Building Fund via a transfer from the Municipal Liquor Fund. <br />The amount that has been planned and built into the Liquor Fund forecasts is $2.75 million. The <br />remaining project costs, less the amount from the liquor store fund transfer, will be funded through G.O. <br />improvement plan bonds. The bonds will be issued in January or February of 2012, when some consider <br />the optimal time for new bond issuances. By planning and funding Phase I out of this transfer from the <br />liquor store, over the life of a 25 year bond, less internal rate of return on investments, the City would <br />save approximately $1 million in interest expense. <br />Prior to Council authorization to initiate Phase II (building construction), RJM will be working with the <br />Public Works Committee and providing a 95% design development budget for the complete project. <br />Currently, the staff, RJM, and 292 Design Group are in design development stages and working through <br />value engineering decisions which will lead up to the 95% budget in December 2011. <br />The following chart is the cash flow forecast of the Liquor Fund 2011-2016 with the transfer that <br />has been anticipated. <br />ATTACHMENTS <br />• RJM recommendations for award of contracts -Bid package 1 <br />• Transfer resolution from Municipal Liquor Fund to the Government Building Fund <br />• Capital improvement plan 2011-2015 (page 59) <br />A-Ctloll Morton b~ Second h}• Vote <br />Follow Up <br />N:APublic Bodies\City Council\Council KCA\;~genda Packet\09-19-?011\Phasclawardofbids[1].docs <br />