Agenda Item Title:
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Public Works Department requesting the Council receive an update on Public Works Phase 2, and requesting Council direction on the project's bid status.
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Presenter:
Mike Gladbach, Public Works Director
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Description/Background:
Phase 2 of the Public Works project includes the construction of a new Maintenance Facility to address inefficient work space, outdated systems, and a decaying structure. In 2023, the project had an estimated cost of $7.4 million, and the Council allocated $7 million in funds towards the project in the FY 2023-34 budget. However, after initially going out to bid in June of 2023, the low cost estimate of the project was $9.8 million, resulting in a $2.8 million shortfall.
Considering the amount of the initial low bid, the Public Works Department has since redesigned the construction plans in an attempt to lower costs, and requested new bids for the updated project in March of 2024. The new bids ultimately came in a bit lower at $8.1 million, however, a shortfall still exists.
Please see the attached presentation for additional details.
Fiscal Impact:
The Public Works Department is requesting $1.7 million in additional funds for the completion of Public Works Phase 2.
Further action to be taken:
The Public Works Department is looking for Council feedback and direction on whether to move forward with this new bid for Public Works Phase 2. Should the Council provide direction to move forward, the FY 2023-24 budget would need to be reopened at a future date to appropriate the additional funding needed for the project.
Recommended Action and/or Suggested Motion:
Recommendation
Motion directing the Public Works Department to move forward with the $8.1 million low bid for Public Works Phase 2.