City council is tasked with awarding the winning contract to build a bigger and better Preston Memorial Auditorium next week.
The expansion project, which includes the addition of an NHL-sized ice pad, seating, changing rooms, washrooms, multipurpose rooms and office space, was originally budgeted at just over $27.3 million in 2022 but is coming in $5.7 million over budget a year later.
Staff is recommending Ball Construction for the work after receiving three bids for the project.
Ball's bid came in at $28.8 million, exclusive of HST.
Estimated additional costs of $4,207,650, however, push the total budget to $33,112,172.
Staff say the added costs include so called soft costs, transformer, permitting and contingency.
In its report to council next Tuesday, staff said it worked with the project consultant to mitigate the financial impact of the construction tender and looked at a number of options to reduce project costs.
"However, all options had impacts to the building program and/or building performance."
"It is recommended that the construction scope be awarded at full value and that staff and the project consultants work with Ball Construction Ltd. to achieve construction cost savings, wherever feasible, that do not result in substantially altering the building program or building performance from the tendered project specifications."
To help pay for it, staff is proposing committing "unexpended and uncommitted demolition funding" of $433,566 to the construction budget along with $255,340 from the city's development charges parks and rec reserve fund.
The additional $5 million needed for the job will be funded through debentures, including tax supported debt of $3.6 million and assessment growth debt of $1.4 million.
The project will expand the arena to about 71,000 square feet and include improvements to the existing change rooms, ice pad, ice resurfacing room and other amenities.
The city demolished its adjacent parks services building and the city owned Kinsmen Centre building to accommodate parking for the new addition.
The demolition tender was awarded to Flint Demolition of Woodbridge for $105,800, plus HST with an additional $68,000 held as contingency.
Demolition work commenced the week of Nov. 6 and wrapped up last week.
The construction tender was issued Aug. 28 and closed Oct. 11.
Three pre-qualified contractors submitted bids for the arena expansion, the lowest bidder being Ball Construction Ltd.
Bid amounts were: Ball Construction for $28,860,000; Melloul Blamey for $29,240,000; and Aquicon for $36,797,500.
