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Fort Mill council approves Hood Construction contract amendment and forwards budget amendment for new operations center
Summary
Council approved an amendment setting a guaranteed maximum price (GMP) of $34,858,984 for the town's new operations center, extended the construction schedule to 15 months, and advanced a budget amendment to fund the remaining $13.25 million of the estimated $38.25 million project.
Fort Mill council voted to approve a contract amendment with Hood Construction that sets a guaranteed maximum price of $34,858,984 for the town's planned operations center on Banks Road and moves a related budget amendment forward for a final vote.
The amendment, presented at the meeting by council member Carrie Vargo, establishes a GMP that includes a $1,250,000 contingency and $379,000 in allowances. Vargo said the total project cost is expected to be about $38,250,000 when soft costs such as FF&E, design, IT and related items are included.
The budget amendment introduced by Eric Davis would allocate the remaining $13,250,000 beyond an earlier $25,000,000 state appropriation. Davis said the town's plan is to issue $10,000,000 in installment purchase revenue bonds and to use $3,250,000 in cash reserves and investment earnings to cover the balance. The second reading of the budget amendment is scheduled for the council's next business meeting in June.
Council members pressed staff on several contract details. One council member questioned a line item that bills the town for the contractor's business license and insurance, saying, “that's just a little hard to stomach that we're having to pay for them to do business when they should be purchasing a business license on their own.” The comment was answered by Vargo, who described the practice as common in construction contracts and said the contractor will ultimately pay those costs and that the town had worked to secure transparent pricing.
Council also discussed schedule and liquidated damages. Vargo said the amendment moves the completion timeline from 14 months to 15 months, with penalties of $1,000 per day if the contractor exceeds 450 days. She told council members to expect site work (fencing) to begin imminently and projected a groundbreaking in mid-June.
The council approved the contract amendment by voice vote with no recorded dissent. The budget amendment received its first reading; the second reading and final vote are set for the next business meeting.
Funding and schedule remain the primary next steps: final bond issuance for $10,000,000 and the second reading of the budget amendment in June. The town will return with the second reading and any final project details before fully committing funds.
