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Oswego approves $26.41 million Public Works facility budget after soil-related cost rise
Summary
Trustees authorized a revised budget of $26,408,960 for a new Public Works facility after soil borings showed unsuitable conditions that added about $1.5 million in mitigation costs; the board also granted PUD approval to expand at 100 Theodore Drive and set a bid/timeline for construction starting spring 2026.
The Village of Oswego Board of Trustees on Sept. 16 approved a revised budget of $26,408,960 for a new Public Works facility after project geotechnical testing revealed unsuitable soils on the expansion site and staff proposed mitigation measures that raised costs.
Project representatives said the board had been presented two conceptual budgets earlier — one at about $25 million and another at about $43 million — and that soil borings returned in May found pervasive unsuitable conditions on the expansion property. Jack Hayes (construction management) told trustees the team developed a three-pronged mitigation strategy including undercutting and importing stone, reinforcing pavement sections with engineered fabrics, and using rammed aggregate piers (GeoPiers) to support foundations. "We believe we have a good and cost-effective strategy to mitigate these issues," Hayes said.
Design and construction contingencies are part of the estimate: the presentation identified an $800,000 design contingency and a construction contingency (board directed 5% carry when bids are opened). Staff said the added soil mitigation accounts for roughly a $1.5 million increase; project funding will come from the village's general fund reserves rather than new bonding.
Trustees pressed the team on options to reduce cost (smaller garage footprint, cutting façade features), on tariff and supply-chain exposure, and on schedule. The construction manager stated current plans target early March for opening bids for the majority of the work, with a plan to break ground in May 2026 and substantial completion in 2027.
After discussion, trustees approved the budget by roll call. Separately, the board approved a preliminary and final PUD amendment and plat to permit the expansion at 100 Theodore Drive; planning staff noted the P&Z Commission recommended approval and the design is "solar-ready" though no panels will be installed initially.
The board directed staff and the steering committee to continue refining bid documents and identify potential cost-savings to keep the project within the approved authorization. Bids and final contract amounts will return to the board for final authorization as required by procurement rules.
