Facility Renovations Narrowly Approved

Faced with a bid nearly double in cost to a city-hired architect firm's original estimate of $1,932,000, Council members Amy Howorth and Richard Montgomery voted against moving forward with renovations of the Joslyn Community Center, Manhattan Heights Community Center and Begg Pool at a new estimated total project cost of $3,610,145. 

The two were outvoted Tuesday night, however, by Mayor Nick Tell, Mayor Pro Tem Wayne Powell and Councilman David Lesser who approved a $3,173,000 contract with Harbor Construction Company, Inc., with the provision that they attempt to reduce costs 20 percent by using less expensive materials. 

The approval authorized the additional appropriation of $1,678,145 from the Capital Improvement Fund, where the project's previously approved funding comes from. Council also approved an additional 10 percent, not to exceed $310,389, as a contingency to cover construction cost overruns. 

"How do we know that ten percent will be enough contingency?” questioned Councilwoman Howorth. “What if it [the cost] doubles again?”    

“If we go with this, what happens next time?" said Council member Montgomery who feared setting a precedent in accepting a final bid so far off from the original estimate. 

“What happened, what went wrong?” questioned Councilman Lesser, requesting an explanation about the substantial cost increase.

Public Works Director Jim Arndt and Harbor Construction responded by saying that every cost, across the board, was higher than estimated, an unusual circumstance, but one that does happen. They told council that even with the increase, the higher new cost, at $120 a foot, is considered low.

The original project cost of $1,932,000 was established by Andresen Architects, Inc., according to city officials, under an Aug. 2 council-approved contract of $128,900 to prepare plans and specifications. On Oct. 18, council approved the Manhattan Heights and Begg Pool Locker Room renovations, at a cost of $508,00 and $706,000 respectively. After council approved Joslyn's renovations at $718,000 on Nov. 1, staff packaged the three facility renovations into one project bid.

Harbor Construction was the lowest bidder at $3,144,000, outbidding two other construction firms. 

Montgomery explained that Council had considered entirely rebuilding Joslyn, a facility frequently used by seniors who have been pushing for it to be updated, but with the economic downturn, had compromised on renovation. He said that with no major cracks, council believes the buildings that make up the three facilities are sound. The planned renovations/improvements are expected to extend each facility's useful life by seven to ten years.

At Tuesday night's meeting, all council members expressed a desire to keep the council's prior commitment to seniors by making the Joslyn improvements.

Council discussed sending the bid back to Harbor Construction for more "value engineering," but the terms of the contract proposal require that work begin in January, 2012. Without keeping to the January start date, the contract would be nullified, and a whole year could be lost in renegotiating or selecting another contractor. “And in another year, the costs could rise even higher," said Mayor Tell Tuesday night.

City Attorney Roxanne Diaz advised council that major changes and reductions in the contract could not be allowed without risking challenge by the competing bidders, but that change orders in materials were acceptable.

A recommended change order to the original proposal removed the roofing work at Begg, saving $69,115. 

Work is expected to be completed within three months of its January start date.