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MINUTES <br />CITY COUNCIL <br />APRIL 9, 2014 <br />City Administrator reported that with the cost reduction changes, the <br />estimate is now at $3.895 million without land and equipment costs. That <br />is approximately $500,000 over the bond issue amount and also includes <br />$226,000 in contingency costs. The Administrator stated that he assumed <br />the biggest variable, at this time, is soils. <br />Corbett indicated that the project is still in the early stages of design. He <br />noted that as project drawings are further developed, the contingency <br />would decrease. Corbett indicated that while no one knows what will <br />happen on bid day, the further the project documents progress, the better <br />the estimates will be. <br />Gagne asked the cost of getting the site ready for construction. The <br />Administrator reported that those costs are included in the project <br />estimates. He felt the estimates for the site work were close given the City <br />Engineer has done a lot of work on the civil engineering and drainage <br />design. The one unknown will be relative to contamination remediation. <br />Gagne noted that this property is now off the tax rolls, and asked if anyone <br />has figured the cost to the City in foregoing future tax collection revenue <br />from this property. The City Administrator pointed out that Little <br />Canada's share of property taxes would be in the 20% to 25% range. <br />Gagne pointed out that there are approximately 10,000 people over which <br />the burden of property taxes is spread. Montour pointed out that once the <br />new Public Works -Parks facility is complete, the City will sell its current <br />building and this property will return to the tax rolls. It was also noted <br />that the former Roseville Plumbing property is in a redevelopment area <br />and will eventually return to the tax rolls. <br />Keis asked the cost per square foot for this project. Corbett estimated <br />$135 per square foot. Corbett noted that the contingency is set at 7% at <br />this time, but as detailed drawings are developed, it may be possible to <br />reduce that contingency. There was some discussion about the cost of <br />other similar projects over the past few years, and the fact that there is <br />more work in the market at this time. Keis indicated that the increase in <br />estimates for this project have resulted in sticker shock. The Director <br />reported that the Review Committee has worked to reduce the cost of the <br />project without negatively impacting operations. The Director felt it <br />would be a mistake to eliminate square footage from the northeast corner <br />of the building or to combine the wash bay and maintenance bay. With <br />regard to sticker shock, the Administrator pointed out that the last project <br />that the City undertook was 24 to 25 years ago. That was the Fire Station <br />which was constructed for $1.5 million. <br />6 <br />