Laserfiche WebLink
To: <br />From: <br />Date: <br />Subject: <br />Mayor Callahan and Orono City Council <br />Ronald J. Moorse, City Administrator <br />December 31, 1992 <br />City Facilities Financial Update <br />This memo is to clarify a number of items for the Council regarding <br />the new facilities financial picture. <br />1. Clai-ification of initial budget and funding sources. The <br />attached table shows the total original budget amount is $4,259,500 <br />to be funded through bond proceeds, sale of land and the building <br />fund. <br />2. Clarification of the status of construction contracts. <br />A. The attached construction status spreadsheet shows the <br />value of approved contracts and change orders along with the <br />amounts that have been paid toward those contracts and the <br />amounts remaining to be paid. This information ties into the <br />facilities budget as follows: <br />The "scheduled value" or total amount of approved <br />construction contracts and change orders is $3,254,040. <br />In addition to this amount, there are a number of items <br />such as the cold storage building that have been <br />deferred or are pending. The dollar amount of these <br />items is $137,295. These two amounts together give us <br />the total construction amount of $3,391,335. This <br />amount together *.ith the remaining non-construction <br />items including demolition of buildings, furnishings and <br />equipment, consulting costs and the net land costs <br />result in the total project amount of $4,075,500. <br />3. Clarification of the progression of the project costs from the <br />initial budget projection to current. John Davies of Kraus Anderson <br />will provide a spreadsheet showing this progression to the Council <br />under separate ccver. A brief outline of the progression is as <br />follows: <br />A. Initial project bids came in beyond the project budget. <br />B. Council directed that the architect and construction <br />manager work to reduce the contract amounts. <br />C. Numerous project changes resulted in substantial coat <br />reductions. <br />D The project experienced various unplanned costs which <br />resulted in a negative contingency amount on September 23, <br />1993. <br />B. Council directed the architect and construction manager <br />to find further reductions. <br />'9