Council approves $91,675 pay request for park building; council hears potential change orders and cost pressures

The Dell Rapids City Council approved pay application No. 5 for APX Construction for the park building project in the amount of $91,675. Steve (city administrator) described the work covered by the payment as concrete, masonry, structural steel, carpentry, plumbing/HVAC and electrical; he said underground plumbing, stoops and column bases are complete and interior masonry is nearly finished so roof installation can proceed.

Steve and other staff updated the council on project finances and potential change orders. He said the original park-building budget was $900,000, the construction bid was about $758,000, and the city has a $250,000 grant and an ARPA allocation to help fund the project. Staff cautioned that the current budget does not include contingency; additional scope or change orders will reduce fund balance.

Potential change orders the council heard about included a $9,000 additional cost to meet Build America (“Buy America”) procurement requirements for lighting fixtures, a roughly $5,000 cost to order vaulted trusses to create an open ceiling in the main room, and a contractor change-order claim of about $27,000 related to how the contractor was required to flip elements of the structure after excavation. City staff said they are reviewing bid documents and plan to discuss the $27,000 item with the architect and contractor; an upcoming change order is likely and staff said they will attempt to mitigate costs with the architect.

Council gave staff a head nod to proceed with ordering the vaulted trusses so the project can move forward; staff said they will return with formal change orders for council action at a future meeting.