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Council reviews $350,000 addition to City Hall renovation budget
Summary
City staff told the Enterprise City Council work session that the Public Building Authority may request an additional $350,000 to cover unanticipated items on the City Hall renovation, and explained the contract is a cost‑plus arrangement with a not‑to‑exceed cap of $8.2 million.
City staff told the Enterprise City Council work session that the Public Building Authority may request an additional $350,000 to cover work not included in the original City Hall renovation bid.
The city manager, Jonathan, said the extra money would address several unanticipated items, including demolition of a small auxiliary structure used to wash police vehicles and repairs to areas of the parking lot that were not contemplated in the original scope. He said the additional funds would be added to the Public Building Authority’s contract if the authority signs the change order.
City Attorney Ashley reminded the council that the contract is between the Public Building Authority and the contractor and that the city’s agenda item is contingent on the authority approving the change order. Ashley also explained the contract is a cost‑plus arrangement with a not‑to‑exceed cap of $8,200,000 and described negotiated overhead and profit terms. "We negotiated an overhead rate and a defined profit for this project," Ashley said, adding the structure helped reduce costs compared with earlier bids.
Ashley said the contract includes a savings‑share provision: a portion of any project savings would be returned to the contractor and a larger share to the city. "I think it was 20% of the savings goes to the contractor, 80% of the savings go back to us," Ashley said. She said the cap can come down if true costs are lower but there is no guarantee the final number will be less.
Staff said the additional funding would allow finishing touches while the contractor is already mobilized on site, rather than pausing and remobilizing later. No formal council vote on the change order was recorded in the work session; staff indicated they will return with recommended action once the Public Building Authority and contractor finalize the change order.
Ending: The council did not take final action in the work session. Staff said they will bring formal documentation back for the council if and when the Public Building Authority signs a change order that requires Council action.
