Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Capital Projects topic
No spam. Unsubscribe anytime.
Council awards $641,500 contract to remodel community center; staff outline financing plan
Summary
After receiving five bids and identifying unexpected roof and structural repairs estimated at $70,000–$100,000, Junction City Council awarded the community center remodel to GBC Construction for $641,500 and approved an interim/ interfund loan plan to fund the work.
Junction City Council voted Aug. 27 to award the community center remodel to GBC Construction for $641,500 and to proceed with financing that will allow the project to meet state deadlines.
Staff told council that five contractors bid on the project and that bids were relatively close (about 10% between low and high). However, unanticipated structural and roof repairs added a large cost component. "A large portion of that is due to the roof repairs that we have to do, the structural repairs to that. We were not anticipating that," staff said, estimating roughly $70,000 to $100,000 in additional costs for structural work.
To avoid returning grant funds or delaying the project, staff proposed funding the work through two pieces: a short-term, one-year interim loan that would allow use of this year's unappropriated capital fund balance next year, and a standard 10-year interfund loan for the remaining amount. Staff said the community center fund can absorb an estimated $4,000 annual repayment under the 10-year option. A 5% contingency was included in staff recommendations but council discussed whether a 10% contingency might be preferable; staff said they are planning with a 5% contingency and will return if adjustments are needed.
Councilor Leach moved and councilor Hancock seconded a motion to award the project to GBC Construction in the amount of $641,500 and authorize the city administrator to sign the necessary documents; the motion passed unanimously. Council adjourned the regular session at 7:23 PM.
