2022 12 20 City Council Agenda Packet

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PUBLIC WORKS

to cost, we do not believe there are any alternatives to keep the project moving forward while achieving
the intended outcomes. The project costs have increased due to supply chain issues and an overall
increase in building materials and construction costs.

As per the agreed upon Memorandum of Understanding, the MRHS is responsible for funding Alternate
#1 if it is to be constructed. Therefore, we recommend accepting this alternate only if they choose to go
forward with this portion of the project.

It is also important to note a decision must be reached by the regular City Council meeting on December
20" if we are to move forward utilizing these bid prices. As is typical for bids of this type, a period of
sixty days was specified as the period during which the contractors must honor their bid. Our sixty-day
period expires about three days prior the City Council meeting, but we have worked with Robert Roberts
to get him to agree to hold the price until December 21* at which time we must either provide him with
a notice of award or the bids will be invalid. Therefore, if Council chooses not to accept the low bid it
needs to take action to reject all bids.

If the discussion during the study session seems to indicate there is a chance the project will be
approved, Mr. Roberts will begin preparing all the paperwork needed to place orders for the materials
required for the project. Because most price increases are implemented at the first of the year, he must
get all items ordered before year end to honor the current bid price. His plan is to have all purchase
orders written and ready to submit to the suppliers between December 22™4 and December 31* if the

bid is awarded.

Staff has discussed several alternatives to find a way to reduce the cost of construction to bring it more
in line with the budgeted amount. These range from design changes to trying to forecast whether
construction prices will decrease in the short term. However, we do not feel there will be any significant
decrease in construction costs in the short term. Additionally, the only design change we know of which
would result in cost reduction would be the elimination of the indoor/outdoor kennels. However, this
would not be an ideal environment for the animals in the shelter and we would lose needed kennel
space. Additionally, this was one of the primary requests of the MRHS representatives who worked with

us on the design.

We recently found a news article where Monroe County is raising funds to construct a new animal
shelter. They have identified a funding goal of $4,100,000 for their project. While this number may
seem high given our initial projection was approximately $2,200,000 for a new facility, the price for the
project given the current economy seems to be within the range of current construction costs. Using
the projected budget for the Public Works Construction Project versus actual costs, we believe the
Monroe County budget to be reasonable. We have thoroughly evaluated the facility and the design

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