Boyne City facilities $600k more after clerical error found

new city hall concept
At the previous Boyne City Commission meeting, commissioners approved construction costs for the new city facilities project at $5,993,374 but, according to Boyne City Manager Michael Cain, the final estimated costs are actually $6,593,374.

By BENJAMIN J. GOHS, EDITOR

The Boyne City Commission, at its regular Tuesday March 29 meeting, had to correct the amount it recently approved for the new facilities project.

At the previous Boyne City Commission meeting, commissioners approved construction costs for the new city facilities project at $5,993,374 but, according to Boyne City Manager Michael Cain, the final estimated costs are actually $6,593,374.

 

“The difference between the two was how the $600,000 in additional funding from the local streets and fire department funds was and should have been reported,” said Cain. “In the ‘Value Engineering’ sheet that was provided in your last agenda packet … that additional funding was incorrectly calculated as a reduction in the revised contract price when it actually had nothing to do with the construction price. It should have been treated separately.”

He added, “It should have been shown for what it is: money to be used for expenses associated with the project including the construction costs.”
Cain said there are no changes to the bid prices by the contractor, nor by the city’s architect.

Cain said the city merely needed to approve the new monetary amount to fix the clerical error.

“There are sufficient funds available to undertake the project as proposed in the 2016-2017 budget as initially recommended,” he said.

Cain said the budget has been corrected to reflect the accurate estimated cost of the new facilities construction.

The Boyne City facilities project will include a new city hall, police and fire departments, space for the museum, MSU Extension Office, administrative offices and public meeting space.

The project is expected to begin the first week of April with asbestos abatement and be finished by July 2017.

Boyne City Commissioner Laura Sansom asked if the new amount includes a contingency fund.

Cain said the contract amount of $6,593,374 does not include the contingency fund nor the engineering costs and asbestos removal expenses or costs for signage and furnishings.

“I, too, am in favor of the revised budget,” said Boyne City Mayor Tom Neidhamer. “I think it all makes sense. It’s all doable. It just changes our fund balance over the next two to three years but it’s a needed adjustment for a sense of transparency.”

Cain apologized for the error, adding that he wanted to make the change now to avoid any confusion regarding the costs.

Boyne City Commissioners voted unanimously to approve the new cost.

Cain said he is looking to schedule a pre-construction meeting with the city’s architect and construction firm.

The property should be ready to be turned over to the Hallmark Construction on or around May 2.