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Regular City Council Meeting Monday,August 13, 2012 Page 19 The presentation included costs for the Fire Station as designed; unanticipated project costs due to the Fire Station portion of bond litigation and attorney fees ($194,236); additional project delay costs due to the litigation, including profes- sional services, supplies and material costs, architectural and construction man- agement team costs, heating and enclosure for late-start construction, and rebid- ding the earthwork contract (estimated at $425,072 depending on the upcoming winter weather conditions). Also included in the presentation and discussion were the options for geothermal costs, including: • Option #1 — full distance piping using 8" pipe with stubs for future connec- tions to the utility garage and city hall: $393,600 • Option #2 —full distance piping using 4" pipe and eliminate all stubs and 8" piping for future use: savings $94,000 Chief O'Neill noted that project costs with geothermal would total $9,013,908, with additional funding needed estimated to be $1,013.908. Chief O'Neill not- ed that, without the geothermal component, the total project cost was estimated at $8,620,308. Discussion included clarifying the potential net savings for geothermal in rela- tionship to savings on other bid packages; restructuring of bid package #2; an- ticipated geothermal payback timeframe of fifty (50) years, with a $21,000 an- nual savings through use of geothermal; and projected life of the building at fif- ty(50)plus years. Councilmember McGehee stated that she had specifically asked for efficiency numbers related to more effective use of excess heat at the skating center the last time the team was here; and had yet to receive that information. In response, City Manager Malinen provided a bench handout, attached hereto and made a part hereof, detailing that information as requested by Councilmem- ber McGehee relative to the OVAL and a summary of actual gas/electricity us- age and $10,000 annual savings in utility costs from use of geothermal. City Manager Malinen referenced page 2 and conditions, noting that the south entry was added after the 2007 number, which was a fairly sizable addition using ad- ditional heat and electricity and not in the initial 2007 projections. City Manag- er Malinen further noted that prior to geothermal, the City was not realizing much in ice rental revenue due to the function of ice quality; however, now it was better than before and generating$20,000 more in revenue. Councilmember McGehee noted that, since more heat was not being generated than could be used, if the existing system was hooked up to the Fire Station, what improved efficiencies were projected by experts for the system already in- stalled.