City Manager Matthews directed the City Council's attention to her memo dated September 1, 2005. As noted in the memo, the City and James F. Knott Construction Company had reached agreement on a number of Proposed Change Orders (PCOs). These items were processed as Change Order No. 22, representing an addition to the contract in the amount of $71,490.
The City Manager then provided an overview of the project financial report, a copy of which was included in the meeting agenda packet. Project revenues were increased by $122,324 to reflect the anticipated receipt of Program Open Space (POS) funds for FY06. Estimated future expenditures reflect the balance of the contract between the City and James F. Knott Construction Company, adjusted for Change Order No. 22 and the amount of liquidated damages as of August 31, 2005 ($121,000). New costs reflected in the financial report include the cost of installing the pavers purchased by the Takoma Foundation and work required by WSSC. Certain costs related to the Community Plaza Level (i.e., the renovation of the existing space on the main level of the Municipal Building) were also taken into account. These costs include the rental of trailers to house the Recreation Department staff. Salary and benefit costs for the City of Takoma Park's project manager have been adjusted to reflect the anticipated duration of the Community Plaza Level work. Architectural and design fees and anticipated construction administration services have been adjusted accordingly as well. City Manager Matthews noted that the total value of the unresolved PCOs was $555,985. Based on the review of the project architect and the City's construction management consultant, the City does not accept many of the PCOs as submitted by the contractor. The preliminary analysis showed a difference of approximately $399,000 between the amount submitted by the contractor and the amount deemed reasonable by the City's representatives. The financial report reflects this amount as a potential add-back. The actual reduction in the value of the PCOs may vary from this amount, depending on the outcome of the City's continued discussions with the contractor. The City Manager concluded her remarks by noting that the resolution of the PCOs would have a significant bearing on the available funding for the Community Plaza Level phase of the Community Center project.
City Manager Matthews informed the City Council that the completion date for the current construction was uncertain. Certain work and inspections could not be performed until a new gas meter was installed. Staff has been in discussions with Washington Gas about moving the installation up in the company's work schedule.
Lastly, the City Manager advised the City Council that staff was actively planning for the relocation to the new space. This was challenging as there was no firm time frame for turnover of the building to the City. In the interim, staff has been directed to pack up their offices to the extent possible. An e-mail directory has been established to communicate information to City staff as it becomes available.