Agenda Item Title:
Title
Public Works Department requesting Council direction on the project's bid status and funding
Body
Presenter:
Mike Gladbach, Public Works Director
Brian Kelley, Administrative Services Director
Body
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of the Public Works project includes the construction of a new Maintenance Facility to address inefficient work space, outdated systems, and a decaying structure.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 2023-24 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.
On March 19, 2024 The council requested additional details and recommendations on possible funding sources to cover the shortfall. Finance staff has worked with Council Staff to identify capital funding sources for the council to consider. Attached to this agenda item you'll find a list of those sources identified, including the recommendations of the finance staff.
Please see the attachments for 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 direction, via motion, on whether to move forward with this new bid for Public Works Phase 2. The Council may also consider adoption of the attached Resolution 24-11C, which transfers appropriations within the capital projects fund.
Recommended Action and/or Suggested Motion:
Recommendation
Suggested motions for the counc...
Click here for full text