Sturgis City Commission on April 22 gave a consensus to pursue a private placement bond to repair the roof at Doyle Community Center.
In January, city staff asked for direction and the commission’s recommendation was to proceed with a “metal roof retrofit” option, estimated to cost $696,000.
Official cost based on the low bid is just under $730,000.
Strategies considered were a private placement bond and a capital improvement bond.
Sadie Griffin, city controller, said option 1, private placement involving a local bank, is a more viable just to fund the roof work, since it is less than $1 million. Trying for a bond under that amount is not advisable, Griffin said.
Duration of the private placement bond is shorter than a capital improvement, typically 10 to 15 years, and requires 60 to 90 days to complete. That time frame allows the project to be completed this year.
This option has lower issuance cost, but would have a higher debt service payment that is estimated to be $75,000 per year, based on the current interest rate environment. Currently, the Doyle fund is not able to service the debt through its fund balance or operations and would require an additional annual transfer from the general fund, Griffin said.
Option 2 could encompass multiple projects under the same funding source. That would allow the city to complete the Doyle project along with another project or two as desired by the commission.
For example, the commission could decide to use this funding for parking lot improvements. The length of the bond would be 20 to 30 years, allowing for a longer payback period than the private placement bond. But the process could take up to six months, pushing the project to 2027.
At the April 22 meeting, commissioner Justin Wickey reiterated what board members have mention during previous discussions, that the roof’s condition has necessitated placement of buckets in some areas inside, to catch dripping water.
“The longer we go and wait, the more damage could be done and we’d be paying for damage inside the building,” Wickey said.
The general agreement among commissioners is, since roof repair is imminent, private placement can accelerate the process.
The metal retrofit technique involves removal of the TPO and base materials, installation of a custom purlin system, R-19 insulation and a new concealed fastener, mechanical seam 24-gauge roof panels and specified flashing systems at slope transitions. The Doyle board recommended that approach to city commissioners, who gave their go-ahead in January.
At the commission’s meeting, Daniel Root, manager of facilities, outlined two proposals, and city staff presented preliminary approaches to pay for the project.
Doyle Community Center was built in 1996, according to Daniel Root, manager of facilities.Within the past seven years, the facility has undergone numerous improvements, including addition of the Iron Mill weight room, installation of a new court and track surface, remodeling of the locker room and restroom facilities and installation of LED court lighting.
During winter 2013, there were several large snow events, followed by warm-ups, then deep freezes, that led to a significant amount of ice to accumulate on the lower sections of the roof, Root said.
A contractor was summoned to help remove ice from the roof. While doing so, steel panels were damaged, Root said, causing leaks and requiring emergency repair.
