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Burns Building renovation delayed; staff warns lease extensions may eat contingency
Summary
Bids for Burns Building renovations have not yet arrived; staff reported alternates totaling $1.3 million and said they negotiated a six‑month lease extension at Marine View, which will draw on project contingency and could require a lands‑fund transfer if bids exceed estimates.
City staff provided an informational update on the Burns Building renovation. Manager Kester said bids had not yet been returned and that the project bid package included alternates totaling $1,300,000 (flooring upgrades, ceiling replacements, paint, restroom doors and mechanical control upgrades). Deputy Manager Barr described demolition scope that includes interior structural demo of non‑load bearing walls, ceiling tile removal and reconfiguration of office space.
Because construction timing will push past the original target to vacate the Marine View Building by year‑end, the city negotiated an additional six‑month lease at Marine View to avoid short stay premiums. Manager Kester warned that leasing costs will draw on contingency and that the general fund portion of the project may be impacted; she suggested one option could be a transfer from the lands fund with the expectation that proceeds from a future sale of city hall would reimburse that transfer.
Staff plans to award the renovation contract on July 27 and said they will return to the assembly with award details and any funding requests if bids exceed the budgeted amount.
