Tim Ryan, tryan@wolfrivermedia.com
The first phase of the Franklin Park project will cost more than the city projected, making some officials anxious about whether the borrowing being proposed for additional park development in an April referendum could also fall short of actual costs.
Shawano Parks and Recreation Director Matt Hendricks told the city’s finance committee Monday that the lowest of five contractor bids for Phase 1 at Franklin Park came in about $55,000 above projections.
The first phase calls for an archway at the main entrance at the northeast corner of the park, at Division and Washington streets; landscaping with native plantings; a concrete walkway; 18 parking stalls; electric utilities available for the farmers market and other public use; lighting at the main entrance and the east entrance across from the civic center; a 1o-foot-wide sidewalk on the other side of the parking stalls; and a pedestrian crossing across Washington Street from the park to the civic center parking lot.
The city expects to have the first phase completed by June 15.
Officials initially projected Phase 1 would cost a maximum of $140,000, with $75,000 coming from the city, $15,000 donated by the Rotary, $20,000 from the Egan Foundation and $30,000 from the Shawano County Tourism Council.
However, the lowest bid for the work, from Martell Construction Co. of Green Bay, came in at just over $185,000.
Hendricks said the park and recreation commission looked at options and recommended going forward with all elements of the project and having the city cover the additional costs.
He said removing some components was discussed.
“The issue there is you’re watering down the project,” Hendricks said. “You’ve sold an idea and a concept, and we’d be putting something in that is less than what was anticipated and what was desired by the community.”
He said organizations who pledged money toward the project might rethink it if the project is changed.
“If we deliver something that is maybe not what they expected, would they still be interested in providing that money? I don’t know the answer to that,” Hendricks said.
He said the overage could possibly be made up by cost-savings on other projects or putting off some purchases, but that it was too early in the year to guarantee that.
City Administrator Brian Knapp said those savings were not likely.
“We’ve been budgeting tighter and tighter, and I wouldn’t expect to be able to find $55,000,” Knapp said.
The finance committee recommended going forward with the project as designed and recommended to the Common Council that this year’s budget be amended for an additional $55,000 in borrowing.
Knapp said that would mean $6,300 in additional debt service each year for the next 10 years.
He said that would add 0.14 percent to the 2018 tax levy and 0.013 cents per $1,000 to the tax bill, which would work out to an additional $1.30 in taxes on a $100,000 home.
Assistant City Administrator Eddie Sheppard noted that another option of rejecting all bids and rebidding at some later date was not likely to fetch a lower price.
“We hear from contractors that they’re a lot busier this year, so we’re expecting numbers to be higher,” Sheppard said. “We got basement bids last year, but that was just because people were willing to take losses just to get their people working.”
The Phase 1 sticker shock comes at an awkward time, just as the city is launching a public information campaign on a referendum to borrow $1.85 million for further park development projects.
The advisory referendum will be held on April 4.
Some city officials wondered if the expected costs of the projects covered in that referendum might also be too low.
“What happens if the bids come in higher than everything we projected again?” Alderwoman Rhonda Strebel said. “If this part is over, do we feel we have a good projection for the rest or are those bids going to come in higher, too?”
Knapp said the city and its consultant reached the best estimates they could, but the chance those estimates could turn out to be too low is a possibility.
“It does give us all pause about that,” he said. “We’re a little nervous that maybe the other projections aren’t as accurate as they could be.”
Knapp said there wasn’t much in the proposed development projects that could be cut.
Hendricks said the city would continue to pursue outside funding sources to cut some the city’s costs.
Alderman Bob Kurkiewicz voted against moving forward with Phase 1 at Franklin Park for now.
“I’m waiting for the referendum,” he said. “Since the referendum is advisory only, I think people will tell us whether they’re happy to spend a few more dollars to get the job done. I think the referendum is really critical for us to get the pulse of the community as far as parks are concerned.”