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City officials scramble to cut costs on overbudget project

October 16, 2024 | City Council Meetings, Guthrie, Logan County, Oklahoma


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City officials scramble to cut costs on overbudget project
In a recent government meeting, officials addressed significant budget overruns for a local project, revealing that the total bid packages had escalated to approximately $5.4 million—far exceeding initial estimates. As a result, city staff are reevaluating the project scope and exploring options to amend grant applications and seek additional funding.

The project, which aims to develop sports fields, has faced challenges due to rising costs attributed to various factors, including compliance with the Buy America, Build America (BABA) requirements and the Davis-Bacon Wage Act. These stipulations have contributed to inflated construction costs, prompting officials to consider cutting certain elements of the project to stay within budget.

Among the proposed reductions are the elimination of lighting for some fields, irrigation systems, and modifications to fencing and parking lot construction. City officials believe these adjustments could save around $1 million while still adhering to the original grant's intent of providing three playable fields, restrooms, and ADA-compliant access.

In a proactive move, the council unanimously voted to reject all current bids, allowing for a fresh approach to the project. Officials discussed the potential for breaking the project into smaller bid packages to attract more contractors and reduce costs. This strategy aims to enhance competition and ensure that the project remains feasible without compromising its core objectives.

Additionally, the council approved a resolution to commit approximately $2.4 million in local funds to the project, which will be matched by the Oklahoma Tourism and Recreation Department. This funding is crucial as the city seeks to secure a total project budget of over $4.7 million, with hopes of receiving additional grant support.

The urgency of these decisions is underscored by a looming deadline; the city must demonstrate progress by September 2025 to avoid losing grant funding. The council's swift actions reflect a commitment to navigating the complexities of the project while ensuring it meets community needs.

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