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Regular City Council Meeting Monday, May 12, 2008 Page 18 Parks and Recreation Director Lonnie Brokke presented options for the City Council's consideration of general and non-private proposal information to-date in preparation of Council approval on May 19, 2008 as well as the proposed pro- ject schedule, detailed in the project report dated May 12, 2008. Mr. Brokke noted that there were a total of three project proposals, and they all came in higher than anticipated in the feasibility study and engineer estimates, with proposals at least 60% higher than the engineer's estimates. Mr. Brokke noted that given that all proposals were over the anticipated budget the pre-award phase of the best value contracting process included value engineering ideas in an attempt to reduce the price without compromising the project or changing its scope. Mr. Brokke's written report included two charts outlining options, and outlining a history of costing factors and potential options. Mr. Brokke reviewed the primary reasons for price variations from those estimates that included miscalculations, in- flationary factors, and involved risk items uncovered during the best-value proc- ess. Some of those specific reasons included: the schedule and overtime costs due to that tight schedule; sand removal and reinstallation and equipment demolition and reinstallation based on the rink's limited access; more electrical work than originally anticipated; substantially higher costs for rooftop units and screening; new roof openings and curbs for rooftop units based on code requirements; paving and curbing of the well field areas; prevailing wage provisions; and concrete ra- dius for boards. Discussion included specific components and comparisons between the charts; comparable volumes with the City of Bloomington's example; vulnerabilities of ice conditions in summer months and frost issues in winter months; inflationary factors; and revised projected payback between conventional indirect system and the geothermal system increased from 17 years to approximately 27 years; and cost increases as the project is delayed. Further discussion included the reasons driving increased costs (i.e., fuel, steel costs, etc.); the unique and complex nature of the project; the value seen already in the best value process in identifying risks previously unknown that would have represented Change Orders to an ordinary low bid award process; the need to re- tain the aggressive schedule to facilitate event bookings and ice schedules. Mr. Brokke advised that KFI representatives would be present at the next council meeting and acampus-wide master plan would be presented, in addition to specif- ics of this project; with the actual numbers provided for Council consideration. Mayor Klausing requested that staff, as part of next week's report, estimate reve- nue impacts and factors for extending the project, and whether those losses could represent any savings in the overall project. c. Discussion on Agenda for Joint Meeting with I.S.D. No. 623 School Board