SEQUIM—The Sequim City Council voted to accept the Civic Center construction contract with Lydig Construction as complete at the December 14, 2015 City Council meeting. The Civic Center includes the Police Station, City Hall, and Community Plaza.
Project Contract
On January 6, 2014, the City Council authorized the signing of a contract to construct the new Civic Center under the Design Build model with a Guaranteed Maximum Price (GMP) of $11,845,000. It was recognized that the Council would likely approve change orders for upgrades or additions to the project for additional agreed expenses. A total of $856,945.59 in change orders were approved. Approximately half of that expense was the completion of the Community Plaza in the front of the building. The total contract with Lydig Construction is for $12,723,131 including the sales tax on the change orders.
The close out of the contract contains a short list of punch items guaranteed to be completed by Lydig Construction, including the application for Leadership in Energy & Environmental Design (LEED) Silver Certification. Developing an energy efficient and environmentally friendly building was a priority throughout the design and construction process. The “green” features of the building help to minimize the overall operating costs.
Project Financing
In 2012, the citizens of Sequim approved a .1% Public Safety Tax to help pay for the Police Station portion of the building, which made the overall vision of a new facility possible. $10.4 million in municipal bonds were sold in 2013 for construction. An additional $3 million in utility bonds were sold in 2014 to pay for the utility portion of the building.
The annual debt service on the bonds will be repaid with revenue from the voter approved Public Safety Tax, rent savings, Real Estate Excise Tax (REET), utility rate revenue, and other current revenue.
Residents of the City of Sequim will not see an increase in property taxes to help pay for the Civic Center.
Accountability Audit
In November 2015, the Washington State Auditor's office completed an Accountability Audit of the City of Sequim for the years of 2012, 2013, and 2014, which included the construction of the
Civic Center. The Accountability Audit is designed to verify that public resources are
safeguarded from fraud, loss, and abuse and ensure compliance with rules, regulations, and internal policies and procedures. The audit found that the City complied with applicable requirements and provided adequate safeguarding of public resources. There have been no findings in City audits in more than 20 years.
Acceptance of the contract work as complete will allow City staff to work with the State Departments of Labor and Industries, Revenue, and Employment Security to complete contract closeout procedures.