City Hall improvement costs to top $4 million

A project approved last year to redo Spokane City Hall’s heating and air conditioning system now will top $4 million.

The Spokane City Council on Monday voted 6 to 1 to add $509,000 to the $3.6 million project approved last year. The money will come from a construction and special projects fund. The amount approved in 2007 was paid through the city’s 2006 budget surplus.

The budget picture has turned gloomier in recent months, and leaders may dip into reserves to balance the books in 2009.

The extras approved include new ceiling tiles, heat sensors and drinking fountains on the top three floors, which are being remodeled as the duct work is completed. It also will pay to move the mayor’s office to the top floor.

Last year the council hired Seattle-based McKinstry to design and oversee the project. Rather than put the project out for bid, the city joined a state program allowing officials to interview and pick from seven firms.

Two council members last year criticized the cost and lack of a traditional bidding process, but administrators expect the new system to be more energy efficient, generating some cost savings. On Monday, only Councilman Bob Apple voted against the extra cost, saying the amount is excessive. The McKinstry contract guaranteed no cost overruns. Administrative Services Director Dorothy Webster said Monday’s changes are new items requested by the city and not included in the initial agreement.

More than a third of the extra cost is related to a recent decision to relocate the mayor and city administrators’ offices to the seventh floor. Webster said police recommended the move in a recent security evaluation.

Webster said the city decided to replace ceiling tiles on two floors because it should be cheaper than cleaning and reinstalling them. Changes in building code forced the city to install on the top three floors a better infrastructure to hold up lights and ceiling panels in the event of an earthquake and to add heat sensors to the fire alarm system.

The changes could have been done by a bidding process, Webster said, but officials felt that it would be best to add them to McKinstry’s proposal because the project is under way.