2022 12 20 City Council Agenda Packet

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PUBLIC WORKS

plans to avoid any cost increases beyond the contingency amount already included in the bid price.
However, our greatest concern is regarding the sanitary sewer in the building as most of it is currently
non-functional and the pipes are in the slab so the extent to which we could investigate this issue was

limited.

Therefore, the approximate all-in cost of $3,200,000 for our project is still less than we would anticipate
a new facility to cost at today’s prices. Additionally, our project will benefit from having more square
footage available in the remodeled facility at a lesser cost than a new facility. The estimated all-in cost
includes the building purchase, the base bid, design fees, and approximately $50,000 in various
accessory items which will be needed before the building is fully operational. However, it does not
include an expense offset in an approximate amount of $285,000 comprised of funds contributed by

McMinn County and raised by MRHS.

It is important to note this all-in cost includes the building purchase, design fees, hazardous materials
survey, asbestos abatement, and some miscellaneous other expenses already incurred. Therefore, the
current authorization request is for the base bid amount, plus up to $50,000 in miscellaneous
accessories which will be needed for operations, many of which were identified in the bid specifications
as to be owner supplied and contractor installed.

We developed the recommendation to award the base bid with Alternate #1 should MRHS choose to
fund the alternate project based upon all the information outlined above provided Council wishes to
keep the project moving forward to meet the original needs identified for this facility. Any other option
will result in significant delays and design changes which will not allow the facility to meet all the goals
established and, in the end, may not achieve additional savings either.

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