Town of Prescott Valley officials on Jan. 9 heard a professional cost review showing the proposed YMCA community center likely will exceed the town's $29 million budget, and asked staff to return with a proposal for a citizen bond committee to explore funding and scope options.

The presentation, led by a town staff member and a team from Kitchell, showed the town-approved program and the YMCA's site plan could produce a final project cost far above the approved figure. The town did not vote on a final funding plan; council members directed staff to bring back details about a citizen bond committee including size, appointment process, timeframe and tasks.

Town staff member Ms. Ruiter opened the briefing with an overview of the project and the town's use of a CMAR (construction manager at risk) process to bring design and contractor input early. Damian Glaze of Kitchell told the council his firm's independent estimating work and database of comparable projects led Kitchell to a significantly higher opinion of likely costs than the YMCA's earlier budgets. "Our professional opinion is that it's closer to a $42,000,000 to $48,000,000 project right now," Glaze said.

Kitchell estimating director Matt Chappell described how the firms normalized an earlier $28,000,624 figure provided by Grow Development by adding typical state taxes, general conditions, escalation and soft costs. The town packet shows the project budget that passed the town's prior contract was $29,000,000, with a $3,000,000 contribution expected from the YMCA and an additional $2,500,000 for a planned Main Street extension, for a program total of $31,500,000 as previously presented to council.

Kitchell staff told the council the largest differences were escalation, contingency and soft costs (town-side design, inspections and project management). They also flagged industry pressures including long lead times, higher trade wages, and a premium to recruit contractors outside the Phoenix metro area. "We are seeing a lot of that increase on projects," Glaze said, citing recent local projects that rose significantly over budget.

Representatives of the YMCA and the local YMCA board urged the council to keep the project moving while exploring value engineering and alternative funding. Steven Polk, an attorney representing the YMCA, said the YMCA remained a committed partner and suggested the council could instruct staff to investigate additional funding sources. Wayne Bennett, chairman of the Prescott Valley Community Center Initiative, said the original YMCA concept always included an aquatic facility and that the board is willing to pursue funding and value-engineering measures to add a pool. "This has always been part of our plan," Bennett said. He later cautioned that "a pool is a money hole that you pour money into," and emphasized sustainability and YMCA operational experience as critical to long-term success.

Damon Olson, CEO of the YMCA, described program benefits that drove community support, including youth programs and swim lessons. "When you teach a child to swim or you teach an adult to swim, that is a life saved," Olson said, arguing for the programmatic value of an aquatic component.

After the presentations and public comment, Vice Mayor Merritt asked staff to return with a proposal to form a citizen bond committee that would examine public appetite and ballot options, including committee size, appointment process and an estimated timeframe. "I'd like to see if we can have staff come back to council with a proposal to form a citizen bond committee, including size of a committee, appointment process, estimated timeframe for the committee's work, and what the committee is tasked with doing," Merritt said. The council did not take a formal vote on the YMCA funding option that night but expressed support to continue working with the YMCA and professional advisors.

The town and YMCA will continue design and cost work; staff will return with the requested citizen bond committee proposal for council consideration.