Sequim Mayor Ken Hays and City Manager Steve Burkett say the city is ready to take the next step toward building the new City Hall-Police Station complex.
The two addressed the crowd gathered at Sunland for the Sequim-Dungeness Valley Chamber of Commerce monthly luncheon Tuesday, April 23.
On May 15, the city will issue the documents that “bond underwriters” will use to prepare plans to sell $12.5 million in municipal bonds to finance the project.
Elray Konkel, administrative services director for the city, said the various underwriters will respond by providing the city with their qualifications to sell the bonds and also will describe the terms they will use to market the bonds to investors.
“We’ll look at (the responses) to determine the quality of the firms,” Konkel said.
Burkett said the timing is right, with interest rates at historic lows.
He added that the city should complete the reviews of the submissions by July 1 and will then select the finalists.
By September of this year, the city will have selected a “Design Build” firm for the project, with a negotiated “not to exceed” contract price.
Construction is set to begin in early 2014 and should be completed by early 2015, Burkett said.
The bonds will be paid back from a variety of sources, including the revenues of the one-tenth of 1 percent public safety tax approved by Sequim voters in 2012.
Other funding will be derived from savings on rental payments, as all of the city’s functions are moved into the new facility.
Konkel said the city’s water and sewer utilities also will pitch in, with the balance drawn from real estate excise taxes and general revenues.
Konkel said he feels the city can “comfortably and diligently pay off the bonds.”
The city also is using another $3 million in saved funds for the construction project, which will have a total price tag of more than $15 million.
Reach Mark Couhig at firstname.lastname@example.org.