The Oneonta Common Council unanimously approved amending the $23.3 million Market Street transportation and streetscape capital project to pay a $3 million fee to consulting firm Wendel Companies for architectural and engineering design and construction administration services on Tuesday, Jan. 7.
The original fee estimate was $1.9 million in May 2022. Since then, the scope of work was modified significantly enough throughout design and construction that Wendel incurred additional costs, according to the council resolution. A modified fee estimate of $2.5 million on Dec. 5, 2023 has risen to $3,058,000.
The council previously voted down allocating the additional funds and increased the budget for the capital project at its Dec. 3 meeting.
Two representatives from Wendel, project managers Liz Colvin and Susan Sherwood, attended Tuesday’s meeting to answer questions from the council.
Colvin said that the initial bid was only for the construction limits identified on the plans, and the additional scope was added later, causing the cost increase.
Sherwood said that one of the added costs was on-site supervision, “to make sure … the city was not taken advantage of in that situation, where we had these factors and engineers out there making sure that was properly coordinated for you.”
“The project isn’t today the same as it was even three years ago, or two years ago,” Sherwood added. “They’ve made some modifications and changes throughout the bidding process to actually save you money by phasing it, and advancing the corridor project ahead of the building project, and so forth. So yes, there may be some additional cost on the consultant side to do some of that work, you saved significantly, in our opinion, on the construction side, by eliminating a lot of that overhead cost to the contractor.”
Sherwood said that Wendel plans to resume work in the spring with inspectors continuing to finish many of the pedestrian improvements as well as the transit hub.
“Currently, right now, we have site personnel out there that are out of contract,” she said, “so that’s why it’s urgent on our part. We want to keep our people out there. We want to keep this moving. Otherwise that causes other problems we do not want to incur.”
City Administrator Greg Mattice said that even with Wendel’s increased fee, the whole project tis still under budget.
Most of the Market Street project is being funded by state and federal aid. The local share is $7.5 million.
City Finance Director Virginia Lee said that she anticipated the aggregate bond — for the streets, transit hub and parking lot — to be between 15 to 25 years with the bonding rate.
“If we go right now for the 7.5 million, if we go 30 years with that, the estimate is about $500,000,” Lee said. “However, if the project actually does come under budget, the savings will be realized in the issuing of the bonds.”
The entire project is slated to be completed in September.
“If we finish early, the cost is less,” Sherwood said.