Posted: April 21, 2017
Rapid City
Agenda Item Summary

Agenda Item Ref. #: LF042617-06

Agenda Item Title:

Authorize Mayor and Finance Officer to sign Agreement Between the City of Rapid City and Wellspring, Inc., d/b/a Wellfully for the use of City Vision funds to construct an adolescent care center.

Origination Group:
Legal & Finance Committee
Origination Meeting Date:
04/26/2017
City Council Hearing Date:
05/01/2017
Petitioner:
Wellfully
Staff Contact:
Joel Landeen, City Attorney
Agenda Item Summary:
This agreement authorizes the expenditure of funds from the Vision Account to help fund Wellfully’s new adolescent care center. The total cost of the center is estimated to be $5.61 million dollars and the City’s contribution from the Vision Account is $1.125 million. The City’s contribution will primarily cover the estimated cost of the public space dedicated to a teen development program called Life Above and Beyond (“LAB”). Due to the fact that the costs are all estimates and the difficulty of breaking out the costs associated solely with the LAB space from the total construction costs, the agreement is written so that the City contribution can be used to reimburse Wellfully for the overall construction costs of the entire center up to the amount approved. Wellfully has access to sufficient funds to design and pay for the initial construction work, so the agreement is structured that the City will reimburse Wellfully for construction work once it has been completed and paid for by Wellfully. Since the project is being paid for in part by public funds, Wellfully has agreed to follow state laws on public bidding. Wellfully is already moving forward on the project. They have acquired the land, retained an architect, and are in the process of selecting a construction manager-at-risk. Rod Johnson from the City’s Public Works Department is assisting them in the selection process. Wellfully expects to be under construction sometime later this year.

Funding Source & Fiscal Impact (if applicable):

Funding Cost Center
The funding source is the Vision Account. There are sufficient funds available in the account to cover the entire $1.125 million dollar cost of the project.

Recommendations:

Origination Recommendation Action:
Approve
Origination Recommendation Notes:
This project was recommended by the Vision Citizen Committee and the recommendation of the committee was ratified by the City Council on December 5, 2016.
City Council Options:
Approve as presented or deny. If you deny it is unlikely that Wellfully could move forward with the new adolescent care center. Wellfully has already retained an architect to design the project and is currently reviewing proposals for a construction manager-at-risk.

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