Requested Agenda Date:
5/4/2021
Requested Agenda Title:
Title
Budget Adjustment: Library's Request for $1,451,031 in Additional Funds for the Granite Library
Body
Requested Agenda Item Description: This project was requested and approved by Council in 2018. An estimated budget was developed at that time. Since then, several circumstances have caused overruns to the project. 1) When excavation was done on this project, mounds of unexpected debris were uncovered. Deeper excavation had to be done as well as additional fill brought in to fill the space. The change order for this issue was in excess of $700k. 2) Once COVID hit, construction costs increased dramatically. There were also major delays due to shutdowns of suppliers and shipping delays. 3) Standard percentages are used to develop a construction budget, including FF&E. Our original estimates were developed using these set amounts. However, libraries have special equipment needs. As we got started, we realized the set formula did not account for specialty equipment. Additional funds are needed to cover these equipment needs. A standard 10% owner's contingency was set aside for this project. We've done our best to use the contingency to cover the unanticipated cost overruns. However, the contingency spenddown is greater than anticipated at this point in the project. While we still have some funds set aside in contingency to cover additional unanticipated costs, our project manager regularly reviews this amount and adjusts, as necessary. If the contingency is not needed, it will be used to offset some of the increase we are requesting. The additional amount being requested will be included in the bond issuance done this fall.
Requested Action: Discussion - Vote Needed
Presenter(s) (with titles): Brad Kendrick Budget and Policy Analyst
Time Needed: Less than 5 MINS
Is this Item Time-Sensitive and/or Requesting a Time-Certain? No
Requesting Staff Member: Holly Yocom
Are Supporting Documents Needed fo...
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