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Council reviews FY26 budget amendment and component demolition contract for new City Hall; items moved to consent
Summary
City Finance staff outlined a third budget amendment for FY2025–26 allocating $1.2 million to reserve for new city hall and increasing contingency by $103,000; separately staff presented a component GMP to begin abatement and demolition work for the new city hall (enabling work estimated at a little over $700,000), with abatement expected 3–4 weeks after Memorial Day and utility work around August; council placed both items on the consent agenda for the May 18 meeting.
At the May 14 work session, Council Member Chris Watts introduced a finance package that included a general fund budget amendment and related items tied to the new city hall project.
Karen Callen, chief financial officer and assistant city manager, summarized the third budget amendment for FY2025–26. She said building‑permit revenue exceeded the original budget (in part due to Microsoft and apartment projects), and staff propose allocating $1.2 million to a fund balance reserve to support construction of the new city hall. Other adjustments included distributing health‑insurance premium costs across department lines and increasing the contingency line by $103,000. Callen also noted excess franchise fees and revenue adjustments were part of the net changes presented to council.
On a linked procurement item, Chelsea Jackson and Jacob Adams (project manager for CPS) described a component Guaranteed Maximum Price package to start enabling work for the new city hall. Adams said the component GMP covers abatement and demolition so the project team can mobilize before the full GMP is executed. He noted asbestos was found and that abatement will follow state protocols; staff said abatement will take roughly 3–4 weeks after the Memorial Day holiday, with demolition mobilization to follow and utility work expected around August. Adams characterized the enabling contract amount as “a little over $700,000” to start demolition and abatement work; staff said a full GMP for construction will return to council after thorough vetting.
Council members asked about impacts to nearby businesses, staging and fencing plans, and notice procedures. Staff said they would provide at least two weeks’ written notice to affected businesses, coordinate temporary easements where required, and employ vibration‑mitigation and overhead protection measures during demolition. Council agreed to place both the budget amendment and the component GMP on the May 18 consent agenda for formal consideration.
No final votes were taken at the work session.
