Cortland council approves larger scope for Resideo Safety Service Complex, raising guaranteed maximum price

The Cortland City Council on Monday approved Ordinance O-03-25, an emergency measure authorizing a scope change in the agreement with ES Architecture LLC for professional design services for the Resideo Cortland Safety Service Complex. The ordinance, submitted by the mayor, passed on a roll-call vote.

City staff and council members said the project's planned addition was increased from an originally planned 12,000 square feet to a 17,700-square-foot addition plus remodeling of an existing 4,400 square feet, and that the change increases the contractor's guaranteed maximum price (GMP). A staff presenter said the GMP is a cap: if the contractor's actual construction cost comes in below the GMP the city will pay the lower amount; design and consulting fees will change because they are calculated as a percentage of construction cost.

The change order increases overall project cost because the building size and scope grew. A speaker identified in the meeting as Patty (finance department) told the council the city already has a purchase order for design services of $590,000 and has spent roughly $348,000 of that amount; the ordinance will lead to a second purchase order to cover the expanded scope. Council members pressed staff on how the city will address the higher construction price.

Staff said the funding plan includes state money the city already received, a federal contribution the presenter described as "the 3.5" (reported by the speaker as $3.5 million), and a plan to borrow — either a U.S. Department of Agriculture loan if available or conventional bonds if necessary. A staff member said an internal working spreadsheet estimates the total project at about $11,000,000 and that the city is considering borrowing scenarios of roughly $8,000,000 or $5,000,000 depending on grant outcomes and other funding. Council members were told a decision on a pending federal grant was expected around March 5.

Councilors raised logistical and cost concerns during discussion but there was no recorded amendment to the ordinance; the council approved the emergency ordinance as presented.

The ordinance authorizes the mayor and staff to proceed with the amended design agreement and associated purchase orders within the parameters described at the meeting. The city will return to the council with financing details once grant awards and loan terms are certain.

Copies of the project estimate and the staff spreadsheet were offered to council members by staff during the meeting.