Committee approves amended guaranteed maximum price for courthouse remediation work after lower bids

The Finance Committee voted to amend the existing ordinance to reflect a new guaranteed maximum price (GMP) of $1,366,156 for the first phase of courthouse work after contractor pricing returned lower than earlier estimates.

Officials reported that when the project was earlier estimated using Ruland’s preliminary figures, the GMP was set at about $2.17 million. Subsequent hard pricing yielded the lower GMP and the committee instructed staff to amend the ordinance to reflect the revised amount. The committee noted the work will be drawn from multiple GMPs: the current amendment covers initial remediation/renovation work (GMP #1); planned additional GMPs will cover foundation/structural remediation (GMP #2) and the full renovation and finishes (GMP #3).

Council and administration members discussed project timing and budget planning. The administration said the committee can expect GMP #3 pricing in the coming weeks, at which point the council may hold dedicated sessions to review larger renovation cost estimates and determine the city’s share. The committee reiterated that funding may come from a mix of the city’s funds and the court’s special projects fund, and that any short-term city borrowing would likely be structured as a bond anticipation note to be repaid from future court fee collections and lease payments.

The committee approved splitting the revised GMP cost 50/50 between the city and the court’s special projects fund for the current amendment, with each party’s share approximately $683,078. Committee members emphasized the need to safeguard the special projects fund so it can support lease payments over time.

The amended ordinance will move to full council; committee members indicated no emergency clause was necessary for this amendment.