Council approves $358,000 contingency increase for Lions Park improvements; accepts YMCA design grant for Lions Park community building

Council members voted unanimously Tuesday to increase the contingency for the Lions Park improvement project by $358,000, bringing the not-to-exceed construction cap to $6,358,000, and separately approved an MOU that will allow the city to accept YMCA-held design grant funds for architectural work on the planned Lions Park community building.

City staff told the council the additional contingency is needed after design and site conditions produced higher costs, including removing vegetation on an island and replants, modifications to building plans, replacing asphalt pathways with wider concrete pathways, and additional excavation behind a pond retaining wall to address groundwater from an underground spring. Staff estimated total construction costs at about $6,200,000 and said roughly $138,000 remained unaccounted for in the previously approved contingency.

"When we first awarded the contract to Nelson Construction, we were optimistic ... that a 5% contingency would be sufficient," a city staff member said, then outlined the new items that have increased cost pressure. Anderson Perry engineers Brian Hansen and Jay Penninger were on hand to answer technical questions.

Council discussion touched on accessibility upgrades — including an ADA-compliant fishing platform — and confirmed the project team expects to complete construction by about April 1. Council members also discussed how to cover the increased cost: staff said the city plans to reallocate REET II (real estate excise tax) funds that had been set aside for Veterans Park, effectively postponing that park work by about a year to use the REET II balance for Lions Park.

The motion to increase the contingency was moved by Council Member Sherman and seconded (recorded only as "second"). The vote was unanimous in favor.

On a separate but related agenda item, the council approved a resolution permitting the city administrator to sign a memorandum of understanding with the YMCA to accept remaining design-development grant funds the YMCA received from the Washington State Department of Commerce. City staff said the original Commerce grant — described in the meeting as about $200,000 at the time it was awarded — could be used on architectural design for a new center either across from the existing YMCA or in College Place. Because the YMCA made the site across the street available for sale and because of extra requirements for a standalone facility in Walla Walla, the YMCA elected to make the unused design grant available for College Place. The city confirmed the grant funds are restricted to architectural design and may not be used for construction.

The council moved and approved the MOU resolution (listed in the meeting record as resolution number 205-9) by voice vote; Council Member Peterson seconded. The vote was unanimous.

Staff and the council said the combined actions keep the Lions Park project moving while using a mix of county, state, and local funds and by temporarily reassigning REET II funds that had been slated for Veterans Park to cover the immediate shortfall. No construction contracts were re-awarded at the meeting; the approvals were for contingency funding and for accepting design funds via MOU.

The council closed the Lions Park discussion after thanking staff and the project team for their work and for answering commissioners' questions.