City Manager Matthews advised the City Council that the sale of the bonds for the Community Center was held during the previous week. Seven bids were received. The true interest cost for the city's bond issue is 4.334%. The City Manager noted that the $205,000 included in the proposed budget for FY06 would be sufficient to pay the first year of debt service on the bond issue.
The City Manager directed the City Council's attention to the memo she had distributed that pertained to Change Order No. 20. The city and James F. Knott Construction Company had reached agreement on a number of Proposed Change Orders (PCOs), exclusive of the contractor's request for extended general conditions and time. The City Manager noted that PCO 1073 and PCO 1074 had been resolved at an amount higher than that reflected on the March 31, 2005 financial report. This was attributable to the city's request that testing and inspections associated with the work be included in the PCO amount. Based on this request, the contractor submitted revised pricing, which was subsequently reduced through the negotiation process.
City Manager Matthews then addressed the report detailing all pending PCOs. She directed the City Council's attention to PCO 1089, which covered the removal and replacement of soil. As of the March 31, 2005 financial report, this item had not yet been assigned a value by the contractor. The contractor subsequently submitted a cost of $197,486. The City Manager also noted that several recently submitted PCOs were in actuality components of PCO 1075, which involved mechanical and air handling systems. PCO 1075 was being broken into these components in an attempt to resolve this item. As a result, the overall value of the outstanding PCOs ($1,069,788) was likely overstated.
Lastly, the City Manager provided a status report on the permanent power connection to the building. PEPCO recently completed the overhead work and would soon begin the underground work. James F. Knott Construction Company estimated that it would need approximately four weeks to perform the remaining tasks to achieve the permanent power connection to the building. Certain interior work, including carpeting and millwork, was on hold until the permanent power connection to the building was completed and the space was climate controlled.