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<br />
<br />
<br />
<br />
<br />Memorandum
<br />
<br />Date: October 24, 2016
<br />
<br />To: Honorable Mayor and City Council
<br />
<br />From: Brian Erickson, Director of Public Works/City Engineer
<br />
<br />Subject: Public Works Facility Cost Estimate Update
<br />
<br />Staff has been working with Oertel Architects on the cost estimate for the new Public Works Facility. At this
<br />point, the total cost estimate is $6,972,808. The previous working total project estimate was $7,753,725. This
<br />estimate includes the following items:
<br />1. Public Works building with offices, vehicle storage, vehicle maintenance, and shop space.
<br />2. Attached cold storage building.
<br />3. Salt storage shed.
<br />4. Fuel tanks and pump area.
<br />5. Material storage bins
<br />6. Associated site work, landscaping, stormwater management and fencing.
<br />7. Demolition of existing buildings.
<br />8. Allowances for furniture, public works equipment, geotechnical evaluation, furniture,
<br />telecommunications/information technology, special inspections, sewer access charge, system
<br />commissioning, and the design fees.
<br />
<br />Within this estimate are costs which are estimated based on the construction estimate. Those include design
<br />and construction contingency and general requirements of the contract. They were estimated at 10%
<br />respectively; however based on recent bids the general requirements was reduced to 5% and the contingency
<br />was reduce to 6%. This resulted in estimated costs reductions of $322,000 and $264,000 respectively for a
<br />total of $587,000. The contingency will likely drop to 3% at time of contract award, resulting in an additional
<br />reduction of $175,000.
<br />
<br />We also reviewed additional areas for savings and have incorporated those in the current estimate. These
<br />include:
<br />• Eliminating one maintenance bay at an estimated savings of $123,000.
<br />• Reducing the pavement area and yard space at an estimates savings of $40,000.
<br />• Removing the purchase of public works equipment (lifts, crane, wash bay) from the contract and
<br />purchasing this equipment from state bid at an estimated savings of $30,000.
<br />
<br />The following table lays out the estimates and reductions shown above:
<br />
<br />Current
<br />Estimate
<br />Previous
<br />Estimate Cost Reduction
<br />Main Building 4,490,767$ 4,805,431$ (314,664)$
<br />Site Work 880,618$ 927,269$ (46,651)$
<br />Auxillary Structures 347,397$ 347,397$ -$
<br />Subtotal 5,718,782$ 6,080,097$ (361,315)$
<br />General Conditions*285,939$ 608,010$ (322,071)$
<br />Contingency **343,127$ 608,010$ (264,883)$
<br />Other Costs/Allowances 624,959$ 457,609$ 167,350$
<br />Total Project Estimate 6,972,807$ 7,753,725$ (780,918)$
<br />* General Conditions at 10% and reduced to 5%
<br />** Contingency at 10% and reduced to 6%
<br />TOTAL PROJECT ESTIMATE
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