title
Report regarding a resolution amending Resolution 109-2025 to allow the City Manager to utilize any unspent amount of the total project budget, if necessary, towards additional construction contingency budget for The Corporation Yard Roofing Project (Project No. pf2202). (Jake Gilchrist, Director of Capital Projects)
label
RECOMMENDATION
Recommendation
It is recommended that the City Council adopt a resolution amending Resolution 109-2025 to allow the City Manager to utilize any unspent amount of the total project budget, if necessary, towards additional construction contingency budget for The Corporation Yard Roofing Project (Project No. pf2202).
...Body
BACKGROUND/DISCUSSION
Following the City Council’s approval of the construction contract for the replacement of the Corporation Yard Roof on August 13, 2025, work began in earnest approximately two weeks later. Soon the project team discovered more dry rot of the underlayment than anticipated, as well as significant damage beneath the metal roof at the front of the building. Western Roofing has ensured that the roof is able to weather an initial wave of wet weather this Fall, but the metal roof replacement needs to be installed before major weather events to avoid damage to the sub-layers of the roof system.
It is standard procedure for staff to recommend that the City Council approve a clause in contracting resolutions to authorize the City Manager to approve change orders beyond the typical 10% construction contingency amount if the overall project budget has remaining funding to accommodate the additional cost. Capital Projects Director Gilchrist did not include this clause in the August 2025 resolution, so staff is now requesting the amendment so that the City Manager has the authority to pay the necessary contract change orders and complete work on the roof.
From the original $2 million budget, there is approximately $120,000 remaining in unspent and unencumbered project funds. Staff anticipate needing roughly $53,000 of the $120,000 to complete the project. This would increase the total construction contingency from $158,610 to $212,000 or approximately 13.5% of the base construction contract. With this approval, the work will be completed in early November 2025.
FISCAL IMPACT
There is no additional fiscal impact as a result of this amending resolution. The project is a named project within the 2021A Series Lease Revenue Bonds. The $2 million dollar bond appropriation will cover the costs of the project. Any unused funding will be returned to the portion of the Capital Improvement overall budget funded by Bond Series 2021A.
RELATIONSHIP TO STRATEGIC PLAN
Approval of this action will contribute to the City’s Strategic Plan. It aligns with Priority #2, which is focused on enhancing quality of life by building and maintaining a sustainable city, making our city a great place to live, work, learn, and play.
CONCLUSION
Staff recommends that the City Council approve a resolution amending Resolution 109-2025 to allow the City Manager to utilize any unspent amount of the total project budget, if necessary, towards additional construction contingency budget for The Corporation Yard Roofing Project (Project No. pf2202).