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By Damian Mann Mail Tribune August 27. 2015 2:33PM Budget busters: Medford police, fire stations $6 million over estimate The cost for Medford's new police station, now under construction, has climbed by $1.67 million due to a shortage of subcontractors. Mail Tribune / Bob Pennell 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 .   http://www.mailtribune.com/article/20150827/NEWS/150829661 © 2015 Copyright © 1995-2011 Crain Communications Inc. All Rights Reserved. Terms of Use Privacy Statement -->