City Manager Matthews presented the City Council with a financial report for the Community Center project. Certain key factors were highlighted for the benefit of the City Council and the community.
Project revenues reflected an increase of $27,010. In September 2005, the City Council appropriated funds for landscaping and other site improvements, as well as for certain studies related to the possible construction of a gymnasium.
Estimated future expenditures reflect the balance of the City's contract with James F. Knott Construction Company, less the amount of liquidated damages ($174,000) payable as of October 23, 2005. The City Manager noted that the amount of liquidated damages ultimately withheld may vary from this amount, as the project architect has not yet issued the Certificate of Substantial Completion. She also noted that the contractor has requested an extension of the contract completion date.
City Manager Matthews then noted several changes in the expenditures section of the report. These included the addition of the costs associated with Phase Two (often referred to as the Community Plaza Level), including the contract with TRG Construction. The prior financial report included the projected cost for a two-inch water line installation required by WSSC. It was originally envisioned that the City would arrange for the conduct of this work; however, due to the need to have the line installed prior to occupancy of the building, James F. Knott Construction performed the work, the cost of which is recorded as Proposed Change Order (PCO) 1129. The City Manager commented that the prior report reflected the projected cost ($40,000) for Montgomery County's review and permitting of the consolidated drawing for the entire Community Center project. The project management team was successful in having this work performed at no additional cost to the City. New costs reflected in the report included the cost of installing the pavers purchased by the Takoma Foundation and the installation of wheel chair ramps for the Grant Avenue entrance and the recently installed walkway through the parking lot.
The City Manager then addressed the PCO log provided as part of the financial report. She noted that the current value of the PCOs was $544,252. The contractor had assigned a value to all but one item. The preliminary information received by the City in regard to this item is that a time extension would be requested but no monetary sum. As previously discussed, the City does not accept many of the PCOs submitted by the contractor. Some items were deemed to be part of the contracted scope of work while the value of others was deemed to be high. The preliminary analysis reflects a difference of approximately $316,000 between the amount submitted by the contractor and the amount deemed reasonable by the City's representatives. The City Manager noted that the most recently submitted PCOs were still in the process of being reviewed.
City Manager Matthews concluded her financial report by stating that the significant value of the PCOs that remain unresolved makes it difficult to determine the financial status of the project. As discussed in September, additional funding will most likely be needed. Assuming all outstanding PCOs are resolved at the amounts stemming from the City’s preliminary analysis, an additional $186,504 would need to be appropriated from the General Fund for the project. The projected shortfall is greater than that discussed in September for several reasons. The value of the contract with TRG Construction is greater due to the addition of the kitchen and the execution of Change Order No. 1. Additionally, the amount of the pending PCOs has grown. as noted above, the most recently submitted PCOs are still in the process of being reviewed, so the shortfall amount may ultimately be less.
The City Manager stated that the lack of an elevator near the Maple Avenue pedestrian bridge entrance was creating accessibility problems for some visitors to the Community Center. She recommended that the staff conduct further research about the cost of installing a second elevator to address this concern. The City Council concurred with the City Manager's recommendation.