Document text
0 of 3 Premium Clicks used this month SUBSCRIBE Print + Online Subscriber Activation | Register x Forgot Password | Need an Account? e-edition | subscribe | newsletter | deals Classifieds Jobs Autos Real Estate FEATURED » NEWS NOW Oregon judge under investigation for refusing to perform gay marriages ... Fate of new Medford fire stations up in the air ... 'No Californians' stickers appear on Portland for-sale signs ... Oregon judge under investigation for refusing to perform gay marriages ... Fate of new Medford fire stations up in the air ... 'No Californians' stickers appear on Portland for-sale signs ... MEDFORD Budget busters: Medford police, fire stations $6 million over estimate Subcontractor expenses have skyrocketed, officials say Comment By Damian Mann Mail Tribune MailTribune.com By Damian Mann Mail Tribune Posted Aug. 27, 2015 at 2:33 PM Updated Aug 27, 2015 at 5:51 PM By Damian Mann Mail Tribune Posted Aug. 27, 2015 at 2:33 PM Updated Aug 27, 2015 at 5:51 PM » RELATED CONTENT • Faulty towers: How will Medford pay $6 million in cost overruns for police and fire stat... » Social News New police and fire stations are a staggering $6 million over budget because of an overheated subcontractor market, the Medford City Council was told Thursday. “Nobody saw this coming,” said David Wilkerson of ORW Architecture, the architect for the projects. “The severity and quickness of this upturn is unprecedented.” Higher costs for plumbers and masonry workers have helped push up the price tag of the new police station, which is currently under construction, by almost $1.67 million. A proposed façade to improve the look of the police parking garage has added more than $900,000, boosting the police station total to nearly $2.6 million over budget. The three new fire stations are $3.39 million over budget. If the council decides against adding the improved façade for the police parking garage, the city still would be looking at a $5 million shortfall. Faced with the higher costs, the city is considering borrowing money to pay for the projects, which were budgeted at $32.7 million in 2012. The new budget for the police and fire stations is just short of $38 million, with almost $24 million for the police station, not including the police garage façade, and $14 million for the fire stations. Councilors will hold another study session at 6:15 p.m. Thursday, Sept. 3, to consider their options. “The good news is everybody’s employed," Wilkerson said. "It’s good for Medford, but not good for this project." Councilor Chris Corcoran responded to Wilkerson, “I’m looking for the silver lining, dude.” Tom Walker with Adroit Construction said he has pleaded with subcontractors to bid on some jobs, but many have responded that they already are slammed with work. The housing construction sector is booming and many subcontractors prefer to work on houses rather than large commercial projects, he said. Walker said since earlier this summer, project managers have seen increases of 20 to 30 percent because of subcontractor price increases.  “The downside is that projects that didn’t go out to bid in the June window are taking a hit,” he said. “Manpower is in short supply.” In some cases, masonry workers have been imported from Utah to complete projects in Southern Oregon, Walker said. Medford Finance Director Alison Chan said she’d received information about the higher costs on Wednesday. She told the council she had talked with officials from U.S. Bank, who offered to lend the city $4.8 million at a 2.5 percent interest rate. Chan said she’d need another week before she could present a possible solution to the higher costs to the council. Councilor Daniel Bunn said, “There is no way to sugarcoat it. It is more expensive than we thought.” Bunn said he’s more concerned about the fire station costs — a 32 percent increase — because the three fire stations together were budgeted at $10.6 million, while the police station was budgeted at $22 million. The police station cost increase is 9 percent without the improved facade and about 13 percent with it.  “For me, it’s the fire stations that cause the real worry; $340 a square foot seems a bit high," he said. Bunn said the council will have to look at cutting one of the fire stations or delaying its construction as an option. “We can’t go back to the public and say give us more in taxes,” he said. “I think that is untenable.” Bunn said the city has the ability to borrow money on a short-term basis at a low interest rate, and he thinks it is worth the investment in public safety buildings that are designed to withstand an earthquake or other catastrophic event. “It’s frustrating, and I’m disappointed, but the council understands it’s a priority,” he said. Reach reporter Damian Mann at 541-776-4476 or  [email protected] . Follow on Twitter at @reporterdm .   By Damian Mann Mail Tribune MailTribune.com By Damian Mann Mail Tribune Posted Aug. 27, 2015 at 2:33 PM Updated Aug 27, 2015 at 5:51 PM » Comment or view comments Reader Reaction » STAY INFORMED Email NewsLetter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. Southern Oregon Directory Featured Businesses Loading... Business Name address Location, ST | website.com Find Southern Oregon Attractions Bars Restaurants Beauty Salons Entertainment Doctors Medical Specialists Contractors Education Lawn Services Lawyers Shopping Travel Tanning Used Cars Wedding Services ▼ Add your business here + Events Calendar Connect with MailTribune.com Facebook Twitter RSS Back to top Reader Services Reader Services Home Subscriptions Subscriber controls Contact us Submissions Photos Events Letters to the editor Corrections Announcements Obituaries Story ideas Since you asked Alerts Email Alerts RSS Feeds Text Alerts Advertise Media Kit Home Products and services Ad rates Advertising contacts Propel Marketing Mail Tribune Daily Tidings The Nickel Shop Our Valley Blogs Mobile Site Stay Informed Email newsletter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. Your privacy is important, read our privacy policy. © Copyright 2015 Local Media Group, Inc. All Rights Reserved. Privacy Policy | Terms of Service | Local Media Group Publications Original content available for non-commercial use under a Creative Commons license, except where noted. MailTribune.com | P.O. Box 1108, Medford, OR 97501