Text · page 5 of 14
that the existing library (7,000 square feet) would be renovated at a cost of $175 per square foot and the addition would be constructed at a cost of $275 per square foot, which we calculated at an estimated total cost of $3.9 million. The Supervisor told us that in November 2014 a snow storm damaged the building that housed the Town’s recreation department and in 2015, another building, which housed the Town’s finance office, was found to have damage. Due to concerns, the finance office was moved to a temporary location. The Supervisor told us that it became necessary to address these issues by including them in the capital project. Additionally, the Board wanted to create a community center that Board members believed would be a catalyst for the Town’s economic development and growth. The engineer prepared a preliminary estimate of $9.8 million for the community center construction and library renovation project, which was presented to the Board in March 2016. This estimate included such things as unfinished space for future offices on the first floor, a community recreation room, first floor mechanical room and unfinished space for a café. Based on this estimate, on May 23, 2016, the Board passed a bond resolution subject to permissive referendum3 that determined the estimated maximum cost of the project to be $9.8 million. The project was to be financed by the issuance of up to $8.4 million in serial bonds, application of $1.4 million in funding from the Town’s equipment lease/ purchase agreement dated February 12, 2016, related to the Town’s energy performance contract dated November 15, 2014 (energy performance contract funding), and application of any funding expected to be received from the State for the project. The $9.8 million estimated maximum cost included $7.9 million for building repairs and construction and $1.9 million for furnishings and contingencies. In September 2016, the Board formally accepted the proposal from the engineer’s firm to provide engineering and architectural services related to the project; this proposal stated that the project budget was approximately $9.5 million. The Board solicited bids in October 2016, which were received in November, and awarded to five contractors on December 5, 2016. While the engineer’s initial estimate for the project was $9.8 million, the post-bid estimated cost increased to more than $13.4 million, approximately $3.6 million more than the estimated maximum cost established by the Board. According to a memo from the engineer to the Board dated December 5, 2016, the bids were more than the initial estimate because it was made prior to the addition of second-story office space 3 A permissive referendum is a ballot proposition submitted to qualified electors of the town at a special election, to approve or disapprove a bond resolution that has been adopted by the town board. A permissive referendum is held if the requisite number of qualified electors petitions the town board to hold the special election for the ballot proposition. Of f ic e of t he New York State Comptroller 3