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Mr. Price had to leave and the City Manager said he would send him a response in answer <br />to his questions. <br /> <br />Mr. Kraft continued by stating that a new firehouse would have to be built eventually and <br />this was a discount at $52 a square foot. He thought it would be irresponsible of the <br />Council not to fund it and have it cost the City much more in the future. He said we know a <br />new firehouse will be needed – the current building is 100 years old. <br /> <br />Mr. Crow asked to verify that the two cost drivers were the increase cost of construction and <br />the reduction in the grant award. He asked for the letter from FEMA awarding the grant and <br />when the new construction figures were given to the City. Chief Miner said the reduction in <br />the grant award was announced in September of 2009. The new construction figures were <br />verified at the end of July 2011. <br /> <br />Mr. Sharpe said Mr. Price’s main concern was how the project would be managed, as <br />previously this became an issue with another City project. He said the City should use an <br />independent project manager and not one supplied by the builder. <br /> <br />Mr. Walker said it would be more advisable to hire a project manager than to rely on staff. <br /> <br />Ms. Ricci said the police and fire are her one priority. She noted in this case she was gun <br />shy, as the grant was applied for before the Council approved it. She asked if any non- <br />essentials can be taken out, to lessen the shortfall and added back in when funds were <br />available. Ms. Ricci asked if the fact that it was on a flood plain was considered and if it <br />was addressed. <br /> <br />Chief Miner said he looked at the floodplain question extensively. He pointed out that and <br />in the packet, an environmental assessment was provided stating it was on a 500 year flood <br />plain. He said Engine House 2 is on a 100 year flood plain and it has never flooded. He <br />said the architect is looking at options to possibly bring the cost down. <br /> <br />Mr. Walker confirmed the construction cost numbers were received the later part of July, <br />after the budget was adopted. He said the City is constantly going back to the architect so <br />the numbers continue to be refined. <br /> <br />Mr. Kraft said the Council approved the $200,000 match on September 10, 2010, and asked <br />if it was sequestered then or does it have to re -authorized. <br /> <br />Mr. Walker said it would need to be re-authorized. <br /> <br />Mr. Kraft suggested a different way to finance: <br /> <br /> The City would expend the $200,00 in this year’s budget and <br /> <br /> Borrow the remaining from the reserves that would be paid back at $100,000 per <br />year out of the operating budget for the next seven years. <br /> <br />Ms. Ricci asked it the total amount would be needed at one time. <br /> <br />Mr. Walker said he believed it would be due at one time. <br />3 <br /> <br /> <br />