Medical Lake updates commercial-kitchen remodel after contractor default; staff targets Aug. 1 completion

City staff provided a detailed update May 5 on the City Hall commercial‑kitchen remodel that will serve community meal programs, classes and disaster-response needs.

Staff said the project was originally budgeted at $270,000, then design and bid developments pushed estimated construction costs higher. The original contractor was declared in default in January after change orders tied to prevailing‑wage and unforeseen conditions emerged. To avoid further escalation, staff assumed direct project management and shifted to a multi‑contractor approach to coordinate specialty trades.

"The contractor failed to perform in accordance with the contract requirements and was formally declared in default in January," staff said. The equipment package was purchased in October 2025; staff reported the design refinements and required mechanical, electrical and fire‑suppression systems were clarified before construction resumed, a step intended to reduce long‑term risk.

Staff said change‑order estimates earlier had increased the project to about $418,000, but a revised scope reduced that to roughly $379,000 in internal planning. With under $83,000 in ARPA funds remaining for the project and careful scope coordination, staff told the council the project can be completed within the previously authorized $305,000 budget target and avoid a request for additional funding.

Based on current coordination with specialty contractors and inspection dependencies outside city control, staff said the realistic target completion date is Aug. 1, 2026. Staff listed remaining tasks, required inspections and operational readiness criteria the project must meet before being used for public programming.

What’s next: Staff will continue coordinating specialty trades, aim to close out punch list items and report back to the council as construction milestones and inspections are completed.