Council questions bonding, costs as staff prepares central-kitchen contract work
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Summary
Staff told council there is $1 million in congressional spending and $500,000 from the Northern Border Commission for a proposed central kitchen; councilors urged final cost and bonding details be settled before negotiating contracts and asked BED to review the project.
Craig, director of community and economic development, told the council the central-kitchen project has secured roughly $1,000,000 in congressional earmarks and $500,000 from the Northern Border Commission and that current budgeting allows for up to $6,000,000 in bonding to support the project.
Councilors pressed staff on sequencing: several said it would be poor practice to negotiate a construction-manager contract or issue bids before finalizing expected bonding and confirming the city’s financial commitment. "It's a waste of time negotiating a contract if you don't have the money to pay for the contract," one councilor said.
Craig said staff have been refining cost estimates and plan to return with a proposal and contingency numbers before the council commits to bonding or a final construction contract; he recommended discussing the project at the January BED meeting so councilors can review updated costs and ask detailed questions before approving any contract.
Councilors asked staff to place the central-kitchen item on the next BED agenda and to provide prior feasibility and operating-cost estimates that had guided earlier planning. Staff said the project began in 2015–16, that a shift from renovation to demolition-and-rebuild had driven changes in scope, and that initial assumptions for early operating subsidies will be re-sent to councilors for review.
The council agreed to remove the central-kitchen contract-approval item from the consent agenda and schedule a fuller discussion at the next committee/board meeting so members can examine funding contingencies before proceeding.