After reviewing a design-build proposal that exceeded the city’s allocation, the Oroville City Council on Oct. 7 instructed staff to work within available funds and to focus on operational priorities for a recently acquired corporation-yard property.

Tim (city staff) explained that the city used a design-build approach and awarded conceptual design work to United Building Contractors with architecture by Studio W and a topo survey by Northstar. The contractor returned a guaranteed maximum price (GMP) proposal just above $4,000,000; the city’s budget for the acquisition and improvements is $1.75 million.

Staff presented three options: (1) proceed with the contractor’s full GMP (~$4 million) to implement a 20-year buildout, (2) scale back to address current operational needs (a reduced-scope renovation focused on the mechanic’s shop and limited admin work; still over budget by staff estimate), or (3) remain at the existing courtyard and defer use of the new site while considering ground-up construction at another time.

Council discussion emphasized fiscal restraint. Vice Mayor Smith said he could not support the roughly $4 million price and urged staff to pursue a solution closer to the originally discussed $1.75 million. Multiple council members asked staff to identify the minimum work to make the new site operational and to prioritize a fuel station and vehicle wash rack if possible.

Tim said the GMP included necessary electrical upgrades, insulation and HVAC for the mechanic shop as part of the contractor’s approach; those elements drove much of the cost. Council members suggested evaluating evaporative cooling and other lower-cost mechanical strategies instead of large air-conditioning systems and to solicit detailed input from the employees who would occupy the facility.

Rather than vote on a single option, council gave staff direction to proceed within available funding, to explore lower-cost mechanical systems, to prioritize fuel and wash facilities and to engage the current courtyard staff for implementation ideas. Staff will return with revised cost options and recommended next steps.