City Council Minutes 2014 01 07 - Laserfiche WebLink

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City Council Meeting Minutes January 7, 2014 Page 8 of 22 Council member Lipton stated his understanding that there will be some engineering and a guaranteed maximum price based on scope of work designed, but inquired how this would align through the budget. City Manager Fleming explained the Council will review this at their January 14th budget meeting. Staff will provide forecasts based on the projections for staffing costs, for the construction, repair and mitigation costs and projections based on expenditures and revenues for the next five years. There will also be projections for the capital projects fund, general fund and open space and parks fund. This will provide a preliminary forecast on how this will all come together. The projection for the Golf Course reconstruction is 5 Million dollars and the design work will further determine what can be accomplished at that price. The amount of repair and reconstruction will consist of 3 factors, how much will be reimbursed through FEMA; how much in improvement, based on the Golf Course Advisory Board recommendation and how much is mitigation to prevent future issues, including drainage issues, for which the City anticipates reimbursement. Council member Lipton inquired whether there will be time to evaluate engineering options in order to have some agreement should the bids come in too high and alternate pricing, which might be added or deleted later on. He felt this would eliminate having to deal with this on the backend of the project. He asked how the City would deal with bids being too high and unaffordable. Parks and Recreation Director Stevens explained the project is a design/build with a guaranteed maximum price. On February 4 the guaranteed maximum will include a schedule of all the improvements to the golf course, so the City will know what value they are getting for their money. The budget will identify what is needed and the only exception would be unforeseen contingencies, change orders or value engineering. Council member Lipton asked if the project cost exceeds the budget, wouldn't it be better to have the discussion first on what gets deleted, rather than waiting until the end. Parks and Recreation Director Stevens explained they will have to prioritize, but there will still be a guaranteed maximum price, FEMA reimbursements, funds in the golf course improvement budget and insurance reimbursements from Western Golf. Council member Lipton clarified guaranteed maximum price is based on the program defined. Parks and Recreation Director Stevens explained the program is designed in concert with Landscapes Unlimited, who will provide the numbers and guarantee maximum price. Council member Lipton asked what is the strategy for deleting items if the price comes in too high. Parks and Recreation Director Stevens stated items will be prioritized, but noted they will have firm prices and Landscapes Unlimited will agree to build it for the maximum guarantee price. Public Works Direct Kowar explained the City is in partnership with Landscapes Unlimited and they will help prioritize and be creative in making the needed cuts.