Kirk Arity and Kelly Clafin conceded there was apprehension among people in the room when initial construction bids were opened April 7 for the proposed Tomah emergency services building (ESB) project.
Arity is Tomah's Public Works Director. Clafin is affiliated with Keller, Inc., the firm working with the city to design the building which will be located on North Glendale Avenue.
Initial cost after bids were opened exceeded $14 million. But Clafin said the Keller team sharpened its pencils with a process called value engineering to trim the cost to approximately $13.5 million, $13,492,740.27 for those counting every dollar.
The bid package was presented to the Tomah Council Committee of the Whole Monday night and approved by the council Tuesday night. The bond sale to finance the project is expected to take place early next week, according to Tomah City Treasurer Molly Powell.
"There was some concern when bids were opened," Clafin said. "(Costs) were higher than expected. But there was a good faith effort to cut those costs."
Some cuts or design alternates at this stage include"
*Change in asphalt paving from six inches to five inches
*Remove landscaping and seeding from project (city will assume that work)
*Masonry insulation, the work was bid by two separate contractors, which saved money
*Eliminate in-floor heat in apparatus bay only (the largest cost savings)
*Eliminate the flag and flagpole (to be installed later)
*Eliminate a reader board sign
*Change full vision overhead doors to two panel full vision
The total cost savings of that list, nearly $304,000.
Still early in the process, Arity said there may be opportunities for some items on that list to be included if other cost savings are identified or additional grants are secured. But Clafin did not hesitate to assure the council on one point.
Clafin told the council not to expect any change orders for the project. The bid as presented is firm.
"There will not be any change orders unless (the city) asks for them," Clafin said.
Of 29 contractors awarded separate bids for the building there is some local flavor. Gerke Excavating for site prep/earthwork, Americon Construction for carpentry/gypboard assembly. Many contractors are regional.
There was a shared sentiment from Arity and Clafin regarding council approval to move onto a bond sale. Communities considering building projects don't have the luxury of over thinking things. Contractors are looking to plan their schedules and order supplies. Bids may be good one week and off the table the next week, Arity added.
Powell said discussion among Tomah's Senior Executive Team (SET) favored bonding the full amount rather than half this year and the remainder in 2023. Interest rates are favorable now and the risk of waiting to finance the building over two budgets is a fiscal risk.
Tomah taxpayers will see an initial tax increase the first year the project goes on the tax roll for the owner of a $100,000 property. But that figure will stabilize, according to figures presented to the council.
Alderwoman Nellie Pater supports the project, but added, "I want to see the city prepared when questions are asked by taxpayers."
Alderman Dean Peterson did not pull any fiscal punches, but was firmly in support.
"This will make other projects tight for the next (few years)," Peterson said.
Tomah Public Safety Director Tim Adler informed the council that one step to improve fire service is being put on hold for the immediate future to make the ESB a reality.
The inclusion of a new ladder truck for the fire department, estimated at over $1 million, was pulled from a capital improvement list. Adler said there is no need to plan for the truck unless there is a building where it can be parked.
Tuesday night before the council vote Arity presented several pros and cons.
What the city gains from moving ahead with the project? Assurance development of the Flare Avenue ball complex project will be ongoing the same time the ESB is being built. The goal is to have Flare Avenue ball fields ready to offset the loss of one field at the North Glendale ball complex and keeping in mind Bud's Ball Park will remain viable for recreational use.
Arity said the ESB will provide additional incentive for the fire and ambulance departments to build their respective rosters and maintain quality emergency services.
On the flip side...
Arity concedes there will be an increased tax burden associated with the project. It will make the city's ability to deal with those budget "unknowns" more difficult, Arity added. The city will have to follow a strict capital improvements budget the next four years. All something department heads are fully aware of he noted.
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