City approves aquatic center change order, Nat demo payment; discusses funding for new facility

Posted on April 23, 2024 by Jenn Rowell

City Commissioners approved a seventh change order for the new indoor aquatic center during their April 16 meeting.

Staff recommended approval of the change order to Swank Enterprises for $31,135.57.

The city is scheduled to open the new indoor aquatic and recreation facility in Lions Park at 900 29th St. S. in June.

The change order includes, according to the city staff report:

cast letter changes: $20,541.92
key switches for gym equipment: $953.91
Knox Box: $837.32
sponsor signs for gym scoreboards: $564.65
FDC relocations: $8,237.77

The change order increases the total project budget to $21,049,435.43.

In November 2021, commissioners awarded a contract to Swank Construction for $18,349,000, which included the base bid of $17,995,000 and an alternate for $354,000.

Previous change orders were:

March 2022: commission approved the first change order that reduced the contract price by $244,655. The change order did not affect any of the amenities of the facility; changes affected materials used to accomplish a cost savings without jeopardizing the quality of amenities or facility.
July 2022: the second change order to Swank for $91,029.58 addressing plan review and permit fees as well as structural enhancements.
June 2023: the third change for $116,680.25, addressing structural enhancements and added three alternates.
September 2023: the fourth change order for $588,052.50, addressing site work, structural enhancements and added three alternatives.
October 2023: the fifth change order for $13,753.20, addressing structural and aesthetic enhancements in the office areas.
January 2024: the sixth change order for $52,978.33 addressing some functionality, aesthetic and safety enhancements in the HVAC system, exterior lighting, camera wiring and locations, exterior fencing, emergency eyewash and shower, and added an alternate.

The project’s budget summary so far is:

architectural services
- budgeted: $1,885,109
- expended: $1,684,998.58
construction services
- budgeted: $18,966,838.86
- expended: $16,665,332.64
miscellaneous construction/professional services
- expended: $166,351.58
total project cost
- budgeted: $21,018,299.86
- expended: $18,516,682.80

The new indoor aquatics and recreation facility is about 45,000 square feet of new construction and the project included site work such as excavation, new utility extensions, new parking lots, playgrounds, and landscaping.

The building will be multi-functional and will include a recreation pool, lap pool, gym, fitness center, walking track, multipurpose room, party room, locker rooms, restrooms, child watch area, attractive lobby with seating and fireplace, reception area, offices, storage and mechanical rooms, and an elevator.

The city received a $10 million grant from the U.S. Department of Defense for the project that was identified in the 2016 Park and Recreation Master Plan. The city will match that with $10 million through the sale of bonds by the park district.

The facility will be city owned and managed, but will also help the military with their water training needs for both Malmstrom Air Force Base and the Montana Air National Guard.

During the April 16 meeting, commissioners discussed the change order, which included a change requested by the city fire marshal when he noticed the fire department connections, or FDC, was too close to a power supply to move that water connection, according to staff.

Steve Herrig, park and rec director, said that the fire department had been involved throughout the process of developing the new aquatic center.

There was no public comment on the change order during the meeting.

Commissioner Rick Tryon said that $31,000 probably isn’t a lot in the grand scheme of things, but seems like a lot to the public.

He said he understands the cost of everything is going up, but he didn’t think a KnoxBox $837.32, as included in the change order.

Tryon said he found a cheaper KnoxBox on Amazon.

From the KnoxBox website, to purchase a box through Great Falls Fire Rescue, a standard commercial model is $487. With a tamper alarm, the basic commercial box is $506.

The maximum capacity commercial KnoxBox, which is larger, through GFFR is listed at $844 or with a tamper alarm, it’s $858. According to KnoxBox, the unit would have a retail cost of $1,086.

Herrig said the first change order was a deduction, then staff brought alternates back in as funding allowed, which totaled about $699,000.

He said there had been about $110,900 of changes needed for permits and codes, and about $83,000 in contractor changes.

Herrig said that the project is about $1.4 million over budget but the city has received private contributions toward the construction costs and some committed over the next few years.

During their April 16 work session, staff reviewed the aquatic center funding with commissioners.

Melissa Kinzler, city finance director, said that there’s a lot going on with the aquatic center funding.

The current construction budget is $21,049,435.

The city has $577,000 of donations received and in hand to use toward the construction costs, she said.

More donations are committed, but over five years, so those funds aren’t necessarily available for construction costs now, she said.

Kinzler said that staff has scraped together some funding sources to cover construction costs and the initial operating budget until those donations come in to reimburse the other city funding sources.

The construction budget includes $10 million from the U.S. Defense Department, $10 million from the park maintenance district bond issuance, $87,434 in a tourism grant, $577,843 of donations and $384,158 from the park maintenance district assessment.

She said city staff are anticipating $375,000 in startup costs that aren’t covered by the construction budget and that staff will likely bring a budget adjustment to commissioners in June for the aquatic center.

Those startup costs will be covered in part by $112,566 of a tourism grant and $262,434 of park special revenue fund reserves, Kinzler said.

She said staff is also projecting to pay their fee to Bannack Group, LLC using the park special revenue fund.

In March 2022, commissioners approved a professional services agreement with Bannack to explore fundraising and sponsorship opportunities for the project.

The city is paying Bannack a monthly retainer of $7,500, pro-rated for any partial month. Out-of-pocket expenses for all services, including travel to/from on-site services and expenses related to third-party services, are additional. All expenses will be reimbursed at cost, according to the March 2022 staff report.

Kinzler said staff is working to cover costs that have been coming up for the new aquatic center.

For the operational budget for April through June 30, which is the end of the current fiscal year, Kinzler said staff is recommending using $180,000 from the existing swimming pools fund, plus an estimated $186,510 in charges for services and $5,100 in other revenues to cover projected $371,610 in operating expenses.

Kinzler said it’s early in the process of estimating the new facility’s budget as it depends on when staff are hired, when the facility opens, among other things.

There are a “lot of variables in this budget,” Kinzler said.

Staff also did a 12-month budget estimate, for the next fiscal year, running July 1 through June 30, 2025.

That budget includes a $178,000 subsidy from the general fund plus an estimated $2,163,688 in charges for services and $5,250 in other revenue to cover an estimated $2,546,938 in expenses.

Commissioner Rick Tryon said that the city isn’t increasing the park maintenance district to pay for the aquatic center, but using those funds toward the construction, took those funds away from other projects.

Kinzler said that as donations come in, or if the facility generates more revenue, those park maintenance district funds would be reimbursed.

She said that by December, the park maintenance district would have funding available for other projects.

Kinzler also explained to commissioners that the park special revenue fund includes payments in lieu of parkland, Pasta Montana’s lease payment, and other park related revenues that can be used for park projects. The fund is completely separate from the park maintenance district.

Kinzler said there’s currently about $400,000 in the swimming pools fund and that the city had continued putting money into the fund, after the Wave Rider was shut down, knowing those funds would be needed for the new aquatic center.

The city is creating a new fund for the new aquatic center.

She said currently, the city moves $39,000 from the general fund to the existing Recreation Center and about $265,000 to the swimming pool fund, so some of those funds will go to the new aquatic center instead.

During their April 16 meeting, commissioners also approved final payment for the Natatorium demolition of $36,606.14 to Shumaker Trucking and Excavating Contractors and $369.76 to the State Miscellaneous Tax Fund.

Commissioners awarded the construction contract to Shumaker for the Parks and Recreation Natatorium demolition project in July 2023 for $289,775.

Demolition and abatement was done over the winter.

The project is funded with federal Community Development Block Grant funds for a contract total of $283,575.00, slightly under the contracted price, so the remaining funds will be available for other projects.

The new aquatic facility is replacing the Natatorium, which was closed in 2018 and is scheduled for demolition this fall, and once opened, the city will close the current Community Recreation Center in the downtown area.

The city dubbed the facility Aim High Big Sky during the conceptual design phase while pursuing the DOD grant but has named it the Scheels Aim High Big Sky for 20 years for the store’s $1 million contribution to the project.

The decision to close the Nat came after bricks fell off the exterior of the building in early 2018, exposing additional problems with the façade and roof with repairs at an estimated $539,834 to $613,088.

The Nat that was demolished over the winter was the second indoor pool built on the site, a piece of property at 2nd Avenue North and 12th Street that was deeded to the city for park purposes.

City receives $1 million from Scheels to name new aquatics facility

City Manager Greg Doyon told commissioners in previous meetings that the deed specifies that if the property ceases to be used for park purposes, the property reverts to the owner who deeded it to the city.

He told commissioners that it was never his intention to build a third pool on that location that would fail again.

He said that he could remember saying before 2018 that they’d bandaid the Nat until something catastrophic happened.

“It would have made absolutely no sense for this community to invest any more into that site,” he said of the facility that was well past its life expectancy.

The Natatorium was closed in December 2018.

Doyon told commissioners that after the pool was drained, it filled back in, highlighting the issues with the structure and water issues on the site.

Commissioners voted unanimously in January 2023 to approve a $34,250 professional services agreement with TD&H for design and construction phases to support the demolition of the 17,200 square foot Natatorium.

The planning phase was funded by park maintenance district funds, Herrig said.

The Nat was built in 1966, after its predecessor on the same site was closed in 1963 due to significant settling throughout the building causing walls to shift, the pool to leak and the foundation to crack, according to a memo from City Manager Greg Doyon during the city’s 2018 budget process, which included multiple public meetings.

Usage lower at smaller Mustang Pool; city still working on Natatorium replacement, demolition plans [2020]

A 2011 study found masonry staining, groundwater concerns, water leakage in the basement and other nonstructural issues. The high water table at the site was also a concern in the report and it recommended projects totaling $997,114 that should be done over 1 to 50 years, according to city records.

Proposed pool fee increases small; aquatics program facing larger budgetary challenges [2018]

After than report, the city partially removed the top of nonbearing load walls to allow for foundational movement, mud jacking and door replacement.

Since 2004, the city completed more than $357,939 in repairs including roof repairs, ventilation tunnels around the pool were filled with concrete since they were in danger of collapsing, a new pool liner, drain pipe liner, boiler replacement, pool desk resurfacing, asbestos testing, southwest corner to women’s locker room lifted due to cracks and settling in foundation, doors and door jams replaced.

For more background on the new indoor aquatics and recreation center, read our previous coverage:

City Commission to consider aquatic center change order during April 16 meeting

City approves new recreation fees, including fees for new aquatics facility

City proposes fee structure for new aquatics center; planning June opening

Commission approves aquatic center change order

City considering change order for aquatic center

New aquatic center on track to open in May, staff discusses operations, fees

City approves aquatic center change order

City Commission to consider indoor aquatic center change order

City receives $1 million from Scheels to name new aquatics facility

City to consider change order for new indoor aquatic facility

City approves change order for new aquatic center