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MINUTES OF THE <br />ORONO CITY COUNCIL MEETING <br />Monday, July 28, 2014 <br />7:00 o’clock p.m. <br />_____________________________________________________________________________________ <br />  <br />  Page 14 of 17  <br />(11. ORONO POLICE DEPARTMENT REMODEL AND EXPANSION – BID AWARD, <br />Continued) <br /> <br />Walsh stated the City is looking at spending lots of money and that in a situation like this people usually <br />take a break and re-evaluate. Walsh noted the City Council is sitting here tonight still asking questions <br />about the construction but at this point they should know it inside and out given the fact that it is a $3 <br />million project. <br /> <br /> <br />Walsh stated he hopes the Council re-evaluates the project and perhaps come to the conclusion that they <br />need more general contractors bidding on the project to see if they can save additional money. Walsh <br />stated the money saved could pay for a bunch of roads but that the City Council is spending it like there is <br />no tomorrow. <br /> <br />McMillan stated the City has been working on this project for the past year and that the City Council <br />packets have been available to the public and have included the plans for the project. <br /> <br />Loftus stated Staff has identified three funding options and that she is aware of Council Member Printup’s <br />concerns on the third option. Loftus stated one option is the Community Investment Fund (CIF), which <br />originated with the construction of this building. While the City does not currently set aside improvement <br />dollars for a 20-year building that money has been accumulating over the years. Loftus stated in the <br />City’s finance policy it says that any positive fund balance gets transferred into that fund from the <br />operating and general fund. Loftus noted there are two projects that have been discussed in connection <br />with that CIF fund. The first one is the Navarre street light project and the second is the turnback project <br />for 112. Loftus stated that source of money would not be Staff’s recommendation at this point. <br /> <br />Loftus stated the other option would be the PIR Fund, which is a temporary fund for construction <br />projects. Loftus stated when the City bonds for a project, the money goes into that fund and the expenses <br />come out of that fund. Loftus stated the City has had a number of projects over the years that have come <br />in under budget and that the funds have slowly accumulated. The current balance in that fund is <br />approximately $1.1 million, with the majority of those funds not presently being designated. Loftus <br />stated approximately $300,000 is designated as an emergency contingency. Loftus stated the PIR Fund <br />would be the fund Staff would recommend at this time for funding of this project. <br /> <br />Levang stated in her view the PIR fund is a good choice. <br /> <br />Bremer asked if that addresses Council Member Printup’s concerns. <br /> <br />Printup indicated it does. <br /> <br />Levang amended her motion, Bremer seconded, to award the Orono Police Department remodel <br />and expansion project to the contractors identified by Kraus-Anderson in the amount of <br />$2,308,648, and to approve Alternates 4, 7, and 8, in the amount of $320,950, with funding coming <br />from the PIR Fund. <br /> <br />McMillan asked when the General Fund Reserves are typically allocated. McMillan noted in the past <br />funds have been allocated to the Pavement Management Fund and the Community Investment Fund.