Opinion
Editorial: City has a perception problem
When is a guaranteed maximum price not a maximum price?
When it doesn’t include all the expenses needed to finish a project.
The city council learned this week that the renovated civic center will wind up costing more than $1 million more than the $9.4 million price tag they approved to renovate the center and add a performing arts facility to the project.
The project was approved with a guaranteed maximum price agreement, a common contract these days. With a GMP, a contractor assumes the risk of most cost overruns, which keeps the buyer from having to worry about rising costs.
If material costs fall, or if the contractor can find comparable materials for a cheaper price, he reaps greater profit.
Somehow city council members missed that the GMP for the civic center did not include items like landscaping, audio for the theater and tables and chairs. So they had to approve funding to the tune of more than $900,000 for the trees, bushes and sound, and will have to cough up more cash for furniture.
Again, this is not all that unusual. Some building contractors fold those kinds of items into their bids, others don’t.
But on a project of this magnitude, which has already generated controversy because of its cost, everyone involved should know exactly what is included in a contract.
And the total costs and procedures should be made clear to the taxpaying public.
The perception among the residents will probably mirror their perception of the golf course renovation — that taxpayers were sold one project and handed another.
Many believe neither project will provide that much benefit to the city, a debatable point, but now they will have ammunition to claim the city is wasting money and being deceitful.
Once again the city faces a perception problem.
Having council members say, “Wait, we thought we’d funded the whole project,” while city staff says, “No, this was the plan all along.” does not improve residents’ perception that the project is being handled ineptly.
Spending money is always a touchy issue, and it’s touchier now.
The city’s leaders need to work harder to provide transparency in all their dealings and show residents they know what they are doing.
Anything less will only lead to calamity.
This editorial is the opinion of the Cleburne Times-Review
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