Board approves schematic design for Public Service Center Phase 2 despite larger cost estimate; staff recommends combined funding split

Fuquay-Varina’s Town Board on Tuesday concurred with a schematic design for Phase 2 of the Public Service Center after the design team presented an expanded program and an updated cost estimate that increased the project’s potential budget range.

Public Works Director Tracy Stevenson presented the schematic layout showing expanded heated equipment bays, new warehouse space, additional office and locker-room capacity, covered storage, and a parks-and-recreation-dedicated building on the site. Stevenson said the schematic is intended to cover roughly ten years of projected departmental growth and that the plan doubles the number of equipment/maintenance bays on the campus in the proposed layout.

Stevenson said the most recent schematic cost estimate, which includes a 5% owner’s contingency and a 3% construction contingency, is approximately $17,240,000, and staff noted the total contingency-adjusted potential budget could reach $19,500,000 compared with an original budget of $13,500,000. Staff recommended proceeding with the comprehensive schematic and funding the project with a two-thirds allocation from the general fund and the remainder from the utility fund. Finance staff had reviewed financing scenarios and staff indicated the town can afford the expansion without a tax-rate increase.

Board members asked about phasing and operations during construction; Stevenson and the construction manager at-risk advised the phasing shown is intended to sequence construction to allow continued operations and to reduce disruption. If construction begins in early 2026, Stevenson said the project would be a major construction year in 2026 with anticipated substantial completion in 2027, though exact durations depend on scope. The board moved, seconded and approved the schematic design as presented.