04-09-2014 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL APRIL 9, 2014 PUBLIC WORKS - PARKS FACILITY PROJECT UPDATE The City Administrator reported that the Council held a workshop meeting earlier this evening to review the Public Works -Parks Garage project. The Administrator reported that the estimated cost of the project has increased, so the Council reviewed cost reduction options which were recommended by the project committee. The Administrator noted that the City sold bonds to finance the estimated project costs of $3.4 million, and project estimates were approximately $900,000 over that amount. The project committee recommended cost reductions in the amount of $372,000, and the Council concurred at the workshop meeting with those reductions. The Administrator reported that the project is still approximately $500,000 over the $3.4 million bond issue. The Administrator pointed out that these estimates include $225,000 in contingencies. He noted that the Construction Manager has indicated that as schematic designs are finalized and better estimates obtained, the contingency amount will reduce. The Administrator reviewed the cost reductions that were agreed to, some of which include a reduced height on the building, the moving of the parks shop into the mechanics bay, reduction in the square footage for the office area and mezzanine, and building drainage changes. Again, these cuts total $372,000, which leaves the project at $494,778 over budget. The Administrator noted that the City had been prepared to fund a $2 million project with cash -on -hand. He pointed out that the increase project costs will not change water and sewer rates nor increase the City's tax levy if we fund the additional amount from cash reserves. The Administrator also pointed out that the Construction Manager has indicated that as the project moves toward final design and bidding, project estimates should be within 1% to 2% of final costs. Blesener indicated that as the project moves forward to the design stage, it may be possible to identify more cost savings. Blesener agreed that the Construction Manager suggested that within the next 4 to 6 weeks, the City should have estimates to within 1% to 2% of final costs. At this point in the meeting, the City Administrator compared the first building plan with the revised plan that includes the cost reductions. He noted that the exterior has a lower roof line and that the brick treatments have been eliminated. The Administrator reviewed internal building changes as discussed earlier. The Administrator stated that the design committee does not feel changes proposed compromise the long -term functionality of the building. 5