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Wednesday

August 2014

20

Oconomowoc dealing with extra community center costs

City of Oconomowoc - City staff gained Common Council approval Tuesday night to borrow $87,000 more for its contingency fund.

Utilities Manager Dennis Bednarski explained that because of issues with soil borings, the previously approved $300,000 for contingency has been depleted. The city now needs more to pay for $43,000 of its share to fix a structural design oversight. The total cost to rectify the oversight is $132,000, but the construction management, design and engineering firms hired for the project have agreed to pay the rest after several days of mitigation with city staff.

Council approved $87,000 which will leave a buffer for any other incidental expenses that might arise as the project progresses.

The new completion date for the recreation center is by the end of December. Common Council approved borrowing $4.5 million for the 21,000-square-foot center on the shore of Lac La Belle.

Alderman Dave Nold had concerns with borrowing from city reserves. He wanted more details on where costs will be cut to cover the extra expense. While the money will come from a reserve fund and not impact taxpayer debt for the project, Nold argued it's taxpayer dollars that create the reserves.

City Administrator Diane Gard said staff will come up with more details on ways to cut costs for Council to review when it meets again in two weeks.

More on this story in Thursday's Oconomowoc Focus.

 

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