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Public safety facility costs rise; revenue found to cover increase
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Turlock's Public Safety Facility is still on schedule for a June opening, but the cost has surged pass the original $28.3 million budget allotted to the project.
Construction delays along with a decline in expected savings has combined for an additional $1.5 million to the project, bringing its total to $29.8 million, City Engineer and Director of Development Services Mike Pitcock told the City Council Tuesday night.
Even though the project is over budget, the city has another stream of revenue that wasn't originally part of the budget and should cover the overages.
"The costs for the project are a little higher than anticipated, but we have additional funding we didn't anticipate in the game plan," Pitcock said. "So overall, we're looking good."
In 2008, the City Council approved construction of a 57,000 square foot complex that will be home to the city's police and fire departments. Ground broke on the project in 2011 and was soon thereafter hit with an unexpected delay when soil contamination from an old gas station was found at the site. The removal of the soil and the resulting delays in construction, along with other expenditures has caused about $526,000 in contract changes.
"When you delay the project, you tend to have people asking for more money," Pitcock said.
Coupled with the increased costs was a loss of value engineering savings of $353,000 that was never generated.
The majority of the contract changes have been approved by the City Council. A request of about $340,000 from architectural firm WLC has been included in the budget, but is still pending. Pitcock said he hopes to negotiate down the fee.
The increase costs of the project will be paid for mostly from $4 million in redevelopment agency funds the city had not expected to receive. The City Council also unanimously approved the transfer of $170,000 from Prop 1B funds to the project.
On Tuesday, the Turlock City Council also:
• Recognized the service of Director of Salvation Army Major Debi Shrum in the Turlock community for the past 10 years.
• Authorized the city's membership in the Bay Area Recycled Water Coalition for the purpose of obtaining federal and state financial assistance for the construction of the North Valley Recycled Water Program, a project that will provide recycled water to farmland and wildlife refuges on the west side of the San Joaquin Valley. The membership expenses were approved up to $20,000.
• Approved the purchase of two replacement unmarked Turlock Police Department vehicles from Patchett's Ford of Turlock in an amount not to exceed $47,803.
• Heard a presentation about the Property Assessed Clean Energy Program, which if brought into Turlock, would allow homeowners and property owners the opportunity to take out low interest loans for environmentally friendly improvements.