East Ridge awards Pillar Construction $1.718 million contract to expand community center; council OKs $536,434 from capital projects fund

The East Ridge City Council voted March 20 to award a $1,718,000 construction contract to Pillar Construction for the expansion of the East Ridge Community Center and to authorize using $536,434 from the city's capital projects fund to cover a remaining shortfall.

City Manager Miller told the council the project is funded in part by a state Local Parks and Recreation Fund (LPRF) grant that provides $600,000 from the state and $600,000 from the city. Miller said consultants'and construction bids pushed total project costs to an estimated $2,118,000 and recommended the city award the low construction bid with two alternates to Pillar and approve a contingency for change orders.

The recommendation and vote matter because the awarded contract will expand the center's gym to regulation size, upgrade senior-area restrooms and kitchen space, and require a sprinkler system that triggered additional ceiling and demolition work beyond the original grant scope.

Miller summarized the budget and shortfall: "The grant is $1,200,000" (state $600,000, city $600,000), and the consultant and construction totals led to "a total of the expenditure side of $2,118,000." He said staff identified $381,566 from an unspent balance tied to Venue 1921 and recommended drawing the remaining $536,434 from the city's capital improvement fund balance. "I'm recommending that that amount be taken from the city's capital improvement fund balance," he said.

The city's memo shows the lowest construction base bid from Pillar was $1,590,000; Miller said the council was being asked to approve a contract award in the amount of $1,718,000 to include alternates (restroom upgrades and ceiling replacement) while holding contingency authority of up to $200,000 for change orders. He also told council the city will fund kitchen equipment (estimated at $40,000) and that architectural/consulting fees of about $160,000 were already committed.

Council members asked for clarification of the numbers. Vice Mayor Tyler and Council Member Witt moved and seconded the motion to approve resolution 3,670, awarding the bid to Pillar and authorizing staff to manage change orders up to the contingency amount. The roll-call vote was unanimous.

Council members and staff said timing weighed into the decision: Miller warned costs are likely to rise if the project is delayed and noted prior examples of later requests for additional state funding by other jurisdictions. He urged moving forward to complete the project in one phase rather than returning later.

The council approved the resolution with the following immediate effects: Pillar Construction will receive the contract to construct the expansion and related alternates; the city manager is authorized to approve change orders up to $200,000; and $536,434 is to be transferred from the capital improvement fund balance to cover the remaining deficit after applying the Venue 1921 balance and other identified sources.

Miller and staff said the city will pursue additional state grant funding (an amendment request to LPRF) to reduce the local contribution, but council approval of the award allows work to proceed with the local funding plan.

Resolution: East Ridge City Council Resolution 3,670 (award contract to Pillar Construction for the East Ridge Community Center expansion and authorize funding/contingency).

Votes: Resolution 3,670 passed on a unanimous roll-call vote.

Next steps: Staff will execute the construction contract with Pillar, manage construction under the authorized contingency, procure kitchen equipment, and pursue additional state grant support to offset the local contribution. The project schedule presented by staff aims to complete structural work and required system upgrades in the coming months.