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City receives bids for Diamond Z Arena addition; lowest bid exceeds budget unless meeting room is deferred

2711728 · March 19, 2025
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Summary

Bids for the Diamond Z Arena addition came in with a low total roughly $300,000 over the project budget. City staff said removing an alternate for a meeting/banquet area would bring the low bidder within budget; council and parks staff discussed using other funding sources to complete the meeting room later.

City engineering reported competitive bids for the Diamond Z Arena addition. The low total, which included all bid alternates (the new building, wash bay and a meeting/banquet room with restrooms and kitchen), would leave the project about $298,000 over the currently available budget. If the council removes the meeting‑room alternate, staff said the low bidder would come within the project budget.

Jonathan Staphos, the city engineer, said the building shell has already been delivered to the site and that removing only the meeting‑room interior would be the most straightforward path to remain within the current budget. He and Parks & Leisure Services Director Ken Nelson discussed phased options: pour the concrete slab for the meeting space now so the structure can be finished at lower marginal cost later, then fund the interior finish through a future funding source such as RAP (recreation, arts, parks) tax funds or private donations.

Parks staff noted the banquet/meeting room would add rental revenue and better support arena events, but that the larger arena space and wash bay — critical for the event schedule — are the highest priorities. The donor who funded much of the project has been involved in planning; staff will check donor expectations if the room is deferred. Council asked staff to return with options for covering the shortfall, including potential RAP‑tax requests or phasing the interior work, before awarding the contract.