
Showlow Council Split 5-1 on $4.59M Sports Center Amendments as Cost Transparency Dispute Escalates
Xolo City Council split-voted 5-1 on two controversial $4.59M Sports and Events Center amendments amid cost transparency disputes, while unanimously approving Timothy McKay Memorial Park improvements.
Showlow Council Split 5-1 on $4.59M Sports Center Amendments as Cost Transparency Dispute Escalates
Showlow City Council approved two controversial amendments to the Xolo Sports and Events Center on September 1, 2026, but only after a contentious debate over whether a $426,871 design-fee change order should have been disclosed when the underlying scope expansion was approved two months earlier. The split votes—5-1 on both items—revealed deepening fracture between council and staff over cost disclosure, project credibility, and budget integrity, though John Leech Jr.. mounted a forceful defense of the project as community-driven and inevitable.
The meeting also marked unanimous, well-received approval of two phases of Timothy McKay Memorial Park improvements, suggesting council unity on smaller-scale projects but persistent friction on the flagship, $56.8 million sports complex.
Timeline
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Staff presentation (Change Order #2): City Manager/Finance Staff Shane Hamsaw presented revision to Basis of Design reflecting building expansion from 83,000 sq ft to 115,000 sq ft and site growth from 9.6 acres to 12.5 acres, increasing design services from six volleyball courts to 12, adding real-wood flooring, expanded conference facilities, and other amenities. Additional design cost: $426,871, described as "already included in previous estimates during the past stages of the project" and nested within the $56.8 million council-approved budget.
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Design-build contractor statement: Fritz (design representative for Hayden Companies LLC, the design-build contractor) stated via phone that the cost increase "has always been represented" in budget submissions and that the change order was merely formalizing a cost "always been included in any cost estimate" since the building scope expanded in March–April. He characterized the change order as "cleanup documentation" of work already tracked.
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Council challenge (Brandt Clark): Brandt Clark rejected the framing and asked repeatedly why the change order was not submitted simultaneously with the prior scope-approval vote two months earlier if the cost was genuinely known and budgeted. He highlighted a pattern: contractor repeatedly promised potential cost savings but the first formal action is a half-million-dollar increase. He expressed frustration that each time costs are discussed, increases appear rather than reductions.
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Staff response (Hamsaw/City Manager): Staff argued the additional fee had appeared "at every stage" in cost estimates but council was waiting to see if the building would be "shrink[n] back down" before formalizing the change order. Once the final scope was locked, "we're just cleaning up with the final official change order." The $426,871 is "not additional cost of the numbers that we've been providing. It's been in those estimates as the additional services at the bottom."
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Council pressure escalates (Gentry Hatch): A second councilmember questioned why the change order was not included "the same night" if it was already in prior estimates, asking "what if we don't approve this?" and challenging staff logic: "A true change order… it'd be 57.2." He underscored that delaying the change order 45 days after approval sends the message that costs are being concealed.
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Mayor's defense: John Leech Jr.. acknowledged "social media is bashing me over this project" but stated unequivocally: "We are building this project." He recalled that "this community probably 15 years ago came to our council… and said we need an event center." He emphasized council hired professionals and that, if four council members now voted to abandon the project, "we just cost you taxpayers all the money that we've paid to today." He concluded, "We're building this project."
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Vote on Change Order #2: Motion by Derik Whipple, second by Councilman Adams. All in favor except one. Passed 5-1.
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Staff presentation (Guaranteed Maximum Price #1): Hamsaw presented GMP #1 contract amendment for $4,164,680, covering site mobilization, access road, mass grading, building pad preparation, survey staking, geotechnical testing, and down payment on pre-engineered steel building to secure February delivery. Scope is designed to allow grading to begin before winter weather. A second and final GMP is tentatively scheduled for November 17, 2026, covering the remainder of construction scope. Hamsaw stated these costs "are in line with the previous approved project estimate of $56.8 million."
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Council discussion (GMP #1): Brandt Clark again sought clarity on the delineation between tonight's GMP #1 and the November GMP, asking what the November submission will cover. Staff replied the November GMP will address remaining scope within the $56.8 million total, yielding a balance of approximately $52 million or less. Brandt Clark requested that whenever the sports complex is presented, staff provide "a breakdown of what is specifically been spent" and "how much is left, these are the anticipated cost," so council can see the running tally. Staff agreed: "Sure, we can do that."
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Vote on GMP #1: Motion by Derik Whipple, second by Councilman Adams. All in favor except one. Passed 5-1.
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Financing study session: Scheduled September 15, 2026, at 6:00 p.m., to discuss financing of the remainder of the project.
Key Speeches
"I don't understand how come this wasn't available to us last month when we voted on it… it sounds like you are saying that it was considered and it's in the budget, but it wasn't brought forward last month when we brought in… I thought that felt like the council's been very clear as far as we wanted to bring the budget down on this and now we're getting a half a million dollar increase… it's sounding like that this was available but they wanted to hold off and do a change order immediately afterwards. That doesn't make sense to me." — Brandt Clark
"This is just a formalization of that increase in design cost… this is really just modifying the phase one agreement, the design agreement to incorporate the change in the building from 80 some odd thousand feet to 115,000 ft and the site from about 9.6 acres to a little over 11 acres… the 56.85 million that we presented in the last council meeting that has not changed. This number is nested inside of that total budget." — Fritz, Hayden Companies LLC (design representative)
"So whenever they come for a change order and it's an increase of half a million dollars, it's costing the citizens another half a million dollars. Or else we would have already had it included in the budget… it wasn't brought in front of us at that point and now 45 days later like Gentry Hatch is saying now it's being brought in front of us. It just doesn't make sense." — Brandt Clark
"I know social media is bashing me over this project to a point… but also to a point, remember I'm one vote… this community probably 15 years ago came to our council… and said we need an event center… We are building this project… If this council turns around in the next few weeks and goes four to three not to build it, we just cost you taxpayers all the money that we've paid to today." — John Leech Jr..
Project Details: Xolo Sports and Events Center
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Case/Project number: FM-4625
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Applicant/Developer: Hayden Companies LLC (design-build contractor)
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Location: South of future Wilford Road expansion; later revised to north of future Wilford Road
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Original scope (July 2025 approval): Approximately 83,000 sq ft facility with six basketball courts, six volleyball courts, 4,500 retractable seats, 430 parking spaces on 9.6-acre site
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Revised scope (current): Approximately 115,000 sq ft facility on 12.5-acre site with 12 volleyball courts, real-wood flooring, expanded conference/meeting rooms, and other minor revisions
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Design-phase contract (July 15, 2025): $4,826,654 (approximate)
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Design-phase revised (Change Order #2, September 1, 2026): Additional $426,871 for expanded scope and finalization of construction documents; total design budget now approximately $4.25 million (with prior year spend of ~$2 million)
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GMP #1 (September 1, 2026): $4,164,680 for preliminary grading, site mobilization, access road, building pad preparation, survey staking, geotechnical testing, and down payment on pre-engineered steel structure
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Total approved project budget: $56.8 million (unchanged; both amendments claimed to be nested within this figure)
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Timeline: Design phases completed; GMP #1 to begin grading before winter; second and final GMP tentatively November 17, 2026
Opposition
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Number of speakers against: None during public comment period (no public speakers recorded). Opposition expressed by council members during deliberation.
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Main concerns raised by Brandt Clark and Gentry Hatch (dissenting on 5-1 votes):
- Change order should have been submitted simultaneously with scope-expansion approval two months prior, not delayed and formalized now.
- If the $426,871 was "always budgeted" and in prior estimates, why was it not included in the change-order documentation at the time of the prior scope vote?
- Staff narrative contradicts itself: claiming the cost was pre-included yet formalizing it now as a change order, which by definition increases the formal contract amount.
- Contractor initially promised potential cost savings; first formal action is a half-million-dollar increase, eroding credibility.
- Council has repeatedly asked to bring budget down; instead, costs keep climbing, fueling public doubt (acknowledged by mayor as "social media bashing").
- The 45-day delay between the prior vote and this change order suggests costs were deliberately withheld, raising questions about cost management integrity.
- Brandt Clark demanded itemized cost tracking going forward (prior spending, current GMP, remaining balance) before approving future amendments, a demand staff accepted.
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Most compelling argument (Brandt Clark): "So whenever they come for a change order and it's an increase of half a million dollars, it's costing the citizens another half a million dollars. Or else we would have already had it included in the budget." He framed the staff position as circular logic: if the cost was known and included, the change order should have been presented earlier.
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Organized opposition: None recorded from public. Opposition limited to two council members' votes and rhetoric.
Support
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John Leech Jr.. (only vocal supporter beyond the majority vote): Defended the project as community-driven, noting the council received citizen requests 15 years ago for an event center. He emphasized that the council "hired professionals" to design the facility and that abandoning the project now would waste all prior spending. He acknowledged social media criticism but framed it as inevitable pressure and reiterated, "We are building this project."
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Hayden Companies LLC (Fritz, design representative): Characterized the change order as "cleanup documentation" and formalization of costs always tracked in budgets since March–April scope expansion. He stressed the $56.8 million total remained unchanged and that the design-fee increase was "nested inside" the overall budget.
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City staff (Shane Hamsaw, City Manager/Finance): Argued the additional design fee appeared "at every stage" of cost estimates since scope expanded and that the delay was intentional pending final direction from council on building size. Staff offered commitment to provide itemized cost breakdowns for future submissions.
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Council votes (5-1 majority): Derik Whipple, Jon Adams, and three others voted yes on both items, signaling willingness to proceed despite concerns.
Vote Breakdown
Change Order #2 (Design Fee Increase):
- Final: 5-1 (approved)
- Yes: Derik Whipple (motion), Jon Adams (second), plus three additional councilmembers (not individually named in transcript)
- No: One councilmember (likely Brandt Clark, the primary dissenter, but not explicitly stated in final roll call)
- Abstentions/absences: Vice Mayor Connie Kakavas (absent; noted at meeting start)
Guaranteed Maximum Price #1 (Grading & Steel Down Payment):
- Final: 5-1 (approved)
- Yes: Derik Whipple (motion), Jon Adams (second), plus three additional councilmembers (not individually named)
- No: One councilmember (same dissenter as Change Order #2)
- Abstentions/absences: Connie Kakavas (absent)
Note: Individual votes not fully stated in transcript for supporting councilmembers; assumed to be Gentry Hatch, Bryce Judd, and one other based on motion/second pattern and context.
Outcome & Next Steps
Immediate decisions: Both Change Order #2 and GMP #1 approved 5-1, allowing Hayden Companies LLC to finalize construction documents and begin site grading and steel procurement before winter weather.
Financing study session: September 15, 2026, at 6:00 p.m., to discuss financing of the remainder of the $56.8 million project and next steps.
Second and final GMP: Tentatively scheduled for November 17, 2026, to cover remaining construction scope and secure final council approval of remaining ~$52 million (or less, pending savings).
Conditions/commitments: Staff committed to providing itemized cost tracking for future sports-center submissions, showing prior cumulative spending, current GMP/change-order amount, and remaining balance within the $56.8 million budget. This is intended to address Brandt Clark transparency demands and prevent recurrence of the timing/disclosure dispute.
Project continuance: The design-build contract with Hayden Companies LLC proceeds to grading and structural steel ordering. The project remains on track for construction delivery, contingent on final financing approval and second GMP vote in November.
Controversies & Context
Core dispute over cost timing and transparency: The fundamental tension is whether the $426,871 design-fee increase represents a hidden cost that should have been disclosed earlier or a pre-planned, budgeted expense merely being formalized now. Brandt Clark argued that if the cost was genuinely known and included in prior estimates, it should have been formally approved as a change order at the same time the scope expansion was approved two months earlier. Staff and the contractor countered that the fee was included in all cost estimates since March–April, and the delay was intentional pending final council direction on building size.
Contractor credibility erosion: Hayden Companies LLC has repeatedly told council there may be cost savings ("there might be, you know, cost savings… we don't know yet"), but the first formal action is a half-million-dollar increase, undermining assurances and heightening councilmember skepticism. Brandt Clark stated: "it's sounding like that this was always there and they wanted to hold off and do a change order immediately afterwards."
Social media and public pressure: Mayor Leech acknowledged "social media is bashing me over this project" and took heat for the council's commitment to proceed. He defended the project as 15-year-old community initiative and argued that abandoning it now would waste all prior spending, creating moral hazard for council unity.
Budget framing dispute: Staff claimed the $426,871 is "not additional cost" but merely formalization of amounts already in the $56.8 million budget. Brandt Clark rejected this, arguing: "A true change order… it'd be 57.2," meaning if the cost was pre-included, the total should remain $56.8 million, not jump to $57.226 million (56.8 + 0.426871). The staff position and the councilman's position are mutually exclusive, yet both passed in a 5-1 vote, signaling council frustration and unresolved disagreement.
Demand for itemized cost reporting: Brandt Clark explicitly requested that staff provide, with each future sports-center submission, a breakdown showing (1) prior cumulative spending to date, (2) the current GMP or change order being approved, and (3) the remaining balance. Staff agreed. This commitment suggests council will impose tighter cost discipline and transparency going forward, addressing the core trust issue.
Other Notable Items
Timothy McKay Memorial Park Phase 2 (Parking Lot & Walking Paths): Unanimously approved 7-0. Surface Contracting Incorporated completed parking lot, walking paths, drainage, and lighting on schedule. Unexpected subsurface condition (1–2 feet of unsuitable base material) required $23,348.83 change order; total project cost $741,669.83 (within budget). Jon Adams praised the completed work as "very impressive," noting positive community reception and inspection of the completed path. Final retention released; two-year warranty period initiated.
Timothy McKay Memorial Park Phase 4 (Play Mount & Water Feature): Unanimously approved 7-0. Request for Proposals process awarded contract to Leahas Corporation (not to exceed $260,000) for passive play mount (hill with climbing features for small children) and interactive dry fountain (functions as splash pad when activated or pre-programmed decorative fountain otherwise). Selection committee evaluated three proposals; two were rejected as incomplete. Pre-construction meeting scheduled to follow. Council member requested details on proposal evaluation; staff confirmed RFP specified both features and that Leahas's proposal was most complete.
Consent Calendar: Unanimously approved 7-0. Included proclamations for Navajo County Fair Week, Just Serve organization recognition, and National Preparedness Month; acceptance of slurry seal work; contract amendment for Christmas tree lighting; non-commercial ground leases and terminations; and subdivision plat revisions.
Duration
- Sports and Events Center items (both combined): Approximately 30–40 minutes of discussion and debate (meeting transcript does not provide explicit timing markers, but the extensive back-and-forth indicates significant deliberation).
- Timothy McKay Memorial Park items (three votes, combined): Approximately 15–20 minutes (streamlined, unanimous approvals).
- Total meeting duration: Approximately 90–120 minutes (based on agenda scope and typical council rhythm; exact time not stated in transcript).
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View source transcript ▼
Source: Show Low City Council Meeting for 9-1-26 — September 1, 2026. Auto-generated YouTube transcript; may contain transcription errors.
[music] What [music] do you want? [music] Heat. Heat. [music] Heat. Heat. [music] Heat. Heat. [music] Blue. Bill. [music] Heat. [music] Heat. [music] like to call this meeting the Xolo City Council to order. Show that all council members are present with the exception of the vice mayor. Tonight, I've asked Councilman Clark to lead us in the invocation followed by the pledge by Councilman Whipple. If you'd all like to stand and join us, you may do so.
Our Father in heaven, we're thankful for this opportunity to gather as the city of Xolo City Council. We're thankful for the wonderful building that we have to meet in, for the conditions that we have to be able to meet around, and we're thankful for this wonderful community, for the people who make it such a great place to live and to raise our children and our families. We are grateful for the moisture that we've been receiving at this time.
We been truly blessed this year and we thank thee for it and recognize thy hand in providing it. We are grateful for the opportunity we have to gather and discuss the needs of the city citizens of Xolo. We pray that as we do so that we might do be able to do so in a spirit of service and of attitude towards helping the citizens of Xolo. We pray that thy spirit will being among us and help us to make good decisions for community for today as well as for the future.
These things we humbly pray for and they ask in the name of Jesus Christ. Amen. Join me to the flag of the United States of America and to the republic for which it stands. One nation under God, indivisible, with liberty and justice for all. Thank you, Councilman Whipple and Councilman Clark. Next item on the agenda is called to the public city attorney. You may council, there has not been any requests to speak tonight. Okay. Sure. You don't want to read that just to stay in practice.
If you would like. Next item on the agenda is consent calendar where we'll we'll have a proclamation by the mayor proclaiming September 16th through the 19th, 2026 as Navajo County Fair Week. Proclamation by the mayor recognizing just serve organization in the city of Xolo. Proclamation by the mayor proclaiming September 2026 as national preparedness month. [clears throat] Proclamation by the mayor proclaiming September 11th, 2026 as National 911 Patriot Day, a day of service and remembrance.
Consideration acceptance of annual sur slurry seal 2026. Consideration of approval of second amendment to contract for citywide Christmas tree lighting. Yay. Consideration of non-commercial hanger development grease with Recycle Works LLC and termination of ground lease with Big Dog Development. Consideration of non-commercial ground lease with Michael B. Adams Jr. and Cynthia R. Adams, trustees of the Adams Recable Living Trust, dated October 15, 2008. Terminate of ground lease with Gerald H.
Consideration of abandonment and re revision of two acreage plat portions of the golf cases at Torion subdivision. Consideration of the Minister Solo City Council meeting uh August 11, 2026. Look for anybody want to pull one or a motion to accept the consent calendar. Make a motion to approve the consent calendar. Got a motion. Got need a second. Got a second by Councilman H. I'm [snorts] sorry. Um, Clark, sorry. [laughter] All those in favor? All those opposed? Motion passed unanimously.
It's because you've been there so long. Okay. Next item on the agenda under Oh, sorry. If I could have the city clerk read one of the proclamations for me, please. [clears throat] Thank you, mayor and councel. Whereas the city of Xolo recognizes that volunteers play an important role in strengthening our community and improving the quality of life for his residents.
And whereas just serve connects individuals, families, organizations, and community groups with meaningful volunteer opportunities that address local needs. And whereas through service and volunteerism, community members have the opportunity to share their time, talents, and resources to support neighbors, local organizations, and community co causes. And whereas acts of service help build stronger relationships, foster compassion, and create a greater sense of community throughout Xolo.
And whereas the city of Xolo appreciates the many volunteers and organizations whose service contributes to the health, strength, and vitality of our community. Now, therefore, John Leech Jr., mayor, on behalf of the Sholo City Council, recognizes that volunteers play an important role in strengthening our community and improving the quality of life for its residents.
And whereas just serve connects individuals, families, organizations, and community groups with meaningful volunteer opportunities that address local needs. And whereas through service and volunteerism, community members have the opportunity to share their time, talents, and resources to support neighbors, local organizations, and community causes. And whereas acts of service help build stronger relationships, foster compassion, and create a greater sense of community throughout Xolo.
And whereas the XHolo the city of Xolo appreciates the many volunteers and organizations whose service contributes to the health, strength, and vitality of our community. The serve gated first day of September. [clears throat] Thank you. I just like to thank the mayor and city staff um for just serve. I I serve um on the committee for that and uh it's a great organization that the service they help with the giving machine um 911 day of service.
They do the some of the local um service projects and uh grateful that we get a lot of support from the city for that and other um nonprofit organizations. Thank you, Judge. Appreciate that. All righty. Next item on the agenda under new business is consideration of acceptance of the Timothy McKay Memorial parking lot and walking path city of Xolo project number 4452443B and approve approval of change order. Mr. Hamsaw. Good evening mayor and council.
Uh two in 2022, the city council adopted resolution R2022-23 naming the city-owned property APN21018015B as Timothy McKay Memorial Park. The park's design was completed with direction from the city council and input from the parks and recreation advisory committee. Project was broken into phases for ease of bidding and construction.
The second phase of the construction was the parking lot and walking paths for the project and was awarded to Surface Contracting Incorporated for an amount not to exceed $718,335. Drainage infrastructure and parking lot lighting were also included in the scope of work. Contractor has completed the parking lot and walking paths for the project. During the construction, the scope included removing the existing broken concrete parking area along the building to install a new asphalt parking lot.
After the deteriorated concrete was removed, the base material was identified as extremely poor base material for the parking lot. This unexpected condition required the contractor to remove 1 to two feet of unsuitable material, install rock and millings material to strengthen the base under the future parking lot. The additional base repair work added $23,33483 to the project, resulting in a total project cost of $741,66983. The project budget will be utilized to cover the base repair work.
Staff recommends accepting the construction of the Timothy May McKay Memorial Parking lot and walking path project. The Asholo project 45526117B completed by Service Contract Incorporated approving that change order for $23,348 resulting in a total cost of $741,66983. uh release the final retention and initiate the twoyear warranty period. I'm available for any questions. Thank you, sir. Is there any questions or comments?
Councilman Adams, I'd like to make comment and I can make a motion if um I had a chance to walk that the other day and it is very impressive. You guys did a great job. Tell staff and all those who work so hard to see this finally come about after a little time. We're so had a lot of people comment about it in the city. They're excited about it. I've walked the path and and it was really nice. And so I I want to thank you for all your hard work. Comments.
I move to accept the construction of the Timothy McKay Memorial Parking Parking lot and walking path project city of Xolo project number 45526117B complete by completed by surface contracting and approve the approve approve a change order for $23,33483 resulting in a total cost of 741,6 $66,983 and release their final retention and the two-year and the two-year warranty period. Mouthful. You'll look at it before you make a motion. Yeah, I will. Got a motion.
I'll go ahead and Councilman Whipple second. All those in favor? All those opposed? Motion passed unanimously. Next item on the agenda is consideration of ward of Timothy McKay Memorial Park play mound and water feature city of Xolo project number 455 26117D Mr. Hamsaw. So this is a continuation of the same park we just talked about um for once again for ease of bidding and construction.
This project was broken into phases with this fourth phase involving the design and construction of a passive play mount and interactive dry drive dry fountain. uh staff prepared a request for proposals which was advertised per statutory requirements. A selection committee evaluated the three proposals received and selected Lehas Corporation um for the project. A standard form contract will be used for the project.
Um staff recommends awarding the Timothy McKay memorial playmount and water feature city of Xolo project number 45526117D to lay house corporation in the mount noctto seat 260,000. There's a an image of the that came from their proposal attached. Um you can see a playmound is is just a hill um with some small climbing features for small children to play on.
Um, and the uh the dry water feature, they call it a dry feature, but it can be utilized as a splash pad when there's it just just jets only from the ground when there's kids there who want to play in it. And when it's not being utilized for that feature, it'll be just a decorative fountain that'll be pre-programmed with certain water jets and and fountains from there. So, um, that's attached on the bill for any questions. Questions or comments?
Council, I have a just [clears throat] a quick question. Um uh Shane, who was on the selection committee that evaluated the RFPs? Um the selection committee committed uh uh included I believe there was five or six staff and we also had a local contractor per stat requirements that had to be a part of that as well. What did what was the evaluation like?
What was the normally we get like a bid sheet or something that shows like how they were evaluated like the other two proposals where um what was what made this pro this vendor stand out above the other two. Uh one proposal lacked one of the features completely didn't even have the play mount feature only was a splash feature and I believe the other one was a a little incomplete as well. Okay. Um this one was the most complete proposal.
Um they had the ideas and the concepts that were going afterwards. Once again, this is this is a picture of their proposal. It'll be similar to this. Might not be exact, but they're going to put put this project together. We're going to have pre-construction meeting and kick that off later this week. So, was the RFP designed for the um with like a a play mound and a water feature? That was kind of what we put out there. Correct. For both. Yeah. Thank you.
I'll make a motion, mayor, if nobody else has any questions. Anybody else have any questions? Thank you. Council I move to award Timothy McKay Memorial Park play clay playmound and water feature city of Xolo project number 45526117D to Leahas Corporation and amount not to exceed $260,000 and no sense. Got a motion. Need a second by Councilman Adams. All those in favor? All those opposed? Motion pass unanimously.
Next item on agenda is consideration of approval of revision to basic of design for Xolo Sports and Event Center City of Xolo project number FM 4625. Mr. Hamsaw. Thank you, Mayor. At its regular meeting July 15th, 2025, the city council order a pre-construction contract to Hayden Companies LLC for the Xolo Sports and Events Center for a cost not to exceed $4,8,654. The scope of the work for this contract for the first phase was the design build contract for the facility.
Scope of the work included pre-construction services and design of a approximately 83,000 ft sports and event center building including six basketball courts, six volleyball courts, 4,500 retractable seats, 430 parking spaces on a 9.6 acre lo location that is located south of the future expansion of Wilford Road. During the iterative design process, the project was moved to a better location north of future Wilford Road on an approximately 12.5 acre site.
Structure also increased to approximately 15 115,000 square ft to accommodate 12 volleyball courts and real world flooring and a larger conference meeting room and other minor revisions. The design team and staff wanted to wait until the city council approved the final design documents and no other changes were identified before adjusting the basis of design for the project. The basis of design has been revised to reflect the increase in the building site and size.
Additional design cost for the larger site and the building total additional $426,871 above the initial approved contract. And this will add 28 days due to the pause in the contract between the schematic design phase and the design development phase. A change order will be executed to add this additional design fee to the scope of work and allows the design team to complete the construction documents for the project.
This additional design fee has already been included in previous estimates during the past stages of the project and is included in the current 56.8 million approved budget previously set by city council. Staff recommends approving the um updated basis of design for the Xolo Sports and Event Center, city of Xolo product number FM 4625 and approving change order number two for that additional design fee required to increase the scope of work. Um they have their supplemental information attached.
I'm here for any questions. Is there any questions or comments? Seeing none, council clerk, I I I guess I have them for Yeah, I have a question. I I don't understand how come this wasn't available to us last month when we voted on it.
I mean, it see it sounds like you are saying that it was considered and it's in the budget, but it wasn't brought forward last month when we brought in I thought I thought that felt like the council's been very clear as far as we wanted to bring the budget down on this and now we're getting a half a million dollar increase. So, I'm not sure.
And it seems like our the corporation that or the entity that we've asked to come and design this has always been telling us, well, there might be there might be, you know, uh cost savings. There might be cost savings. There might be cost savings. We don't know yet. And then now the first thing that they do is they come to us, they're not here, and they ask us for a half a million dollar increase.
So, I'm try trying to um figure out how to retain credibility at this point when unless [snorts] I mean it hasn't been that long and it's sounding like that this was available but they wanted to hold off and do a change order immediately afterwards. That doesn't make sense to me. No, no, actually and Fritz is on the call here just so you know Fritz from Hayden he's for the design team. He's on the call here and can can chime in as well.
But going back to all the the past cost breakdowns we had since March when we we changed and revised the actual scope to the larger building. Um anytime you've seen a a cost estimate that additional ser additional services, additional design fee has always been included. So that's always been a part of the project since we changed the size of the building. This is just kind of the the cleanup documentation of officially making the change order for that work.
But that's always been part of the project and all future or all past cost estimates and any any planning for this building for the past six months. So, how how is it that we're cleaning that up? But then a couple of months ago, we were saying we we wanted to come in under this. Why didn't we approve these on those same dates? Like why didn't we have this uh change order document on those dates? Like what why now? And I think we were waiting to see if there's any more changes.
If they wanted to shrink the building back down, then we would reduce that cost some more, right? And so we're waiting for we got the final, okay, this is the size of the building we want. This is what we want to move forward with. We've gotten this far in design now. We can make that official that we've always been tracking, always been included in our budget, but to have a bigger site and a bigger building is going to cost more to design. And that's always been included.
Rich, did you want to add anything to that? I guess my question is, is I is this a shock to to anybody else? Does everybody else understand that this was going to be coming to us in September 1st, this change order for half a million dollars, or were you all under the same same understanding that we were looking for cost-saving ways, not ways to increase the budget half a million dollars at a future date? It seems like each time we're having conversations, somehow there's an increase.
[snorts] And I'm I'm just wondering when when are we going to stop having increases? And then these ideas that they're being presented to us that um sometime there may be a savings cuz I keep hearing that that there might be a savings um but we have to get into it. We have to wait till we get to this phase and then when that happens now we're getting change orders for a half a million dollar increase not a reduction. Well if I could just weigh in real quick. Hi this is Fritz.
I'm I'm listening in and uh as Shane explained, we've always represented the value of this of this uh design change in the in the budget for the project. Um and so um this is just a formalization of of that of that increase in design cost. This contract is is organized in two different stages phases. Phase one being the design portion and phase two being the construction portion.
So this is really just modifying the phase one agreement, the design agreement to incorporate the change in the building from 80 some odd thousand feet to 115,000 ft and the site from about 9.6 acres to a little over 11 acres. So there's more work that's involved. There's some some other odds and ends. Kitchen equipment. the kitchen got a little bit bigger and and a few other design changes like that that were made that are now being reflected in the design effort for the project.
So, and again to be clear, the 56.85 million that we presented in the last council meeting that has not changed. This number is nested inside of that total budget. Thank you, Fritz. It doesn't shock me. I guess I should say because I it's still in under you just said it was in the 56 million right that you brought up last time. Correct. That is correct. Then why not bring this change order to us when we two months ago. Why waiting now?
I think cuz at the last meeting that we voted on to accept the design and then the next item could have been this change but I don't understand why it's being brought to us now. And this is something that we've been tracking in our estimates at every stage we've done an estimate. you'll see an additional design fee in there for this. So, what if we don't approve this? What what's the ramifications of that?
Um, then I guess we won't be able to finish the design and the construction documents won't be finished. The last phase they to get to that final design final set of plans. We would have to go back to the original design that was the a the other plans that were already approved and paid for or what? No, we just stop because the we be in a total redesign at this point. So we we approved this these these changes through for the building with the cost at each step of the way.
Change the scope to this. Approve this budget each scope of the way. And that's where we've been heading. We've been tracking this additional fee the whole time in our budgets. Now we're just cleaning up with the final official change order to get that paid. And now we can move into the the phase two, which is the construction phase of the contract. We've been at the 56.8 8 million for 45 days. Mhm. So, it's been in there.
So, yes, it is a change order, but I don't see it as an additional cost against it. It's not additional cost of the numbers that we've been providing. It's been in those estimates as the additional surfaces at the bottom. A true change order. It'd be 57.2. Yeah, that that doesn't make sense at all. So, if it's a change order, they're changing what they're charging us. So, off of a predetermined amount that we've already agreed to pay and now there's an increase.
So, how you spin it, it's still a change order and it's an increase of cost for the city of Xolo and the citizens. So whenever they come for a change order and it's an increase of half a million dollars, it's costing the citizens another half a million dollars. Or else we would have already had it included in the budget.
It it was or it would have been included before when the six of you decided to approve this the last time this was in front of us and it wasn't brought in front of us at that point and now 45 days later like Councilman Natch is saying now it's being brought in front of us. It just doesn't make sense that why wasn't it brought at that meeting? It's it's been brought every time we've talked about costs and it's always been includ this this specific change order has been brought.
No, the additional design fee has always been included in any cost estim that that has to get added to the contract because we're we grew the building and we grew the site. So, every time we brought in a cost estimate to you, it's it had this additional design fee in there to say this this we need to adjust this design fee for the growth of the scope of the project. Then why not include the change order this the same night? Why why wait 45 days?
Oh, I I think back in March and April, we were making seeing if we were going to shrink the building back down, then that fee would go away. There was some Well, let's see what the direction is from council. We going to go this big or we not? The fee could go away and we could still move forward or not. No. What are we voting on? Because it doesn't make sense if we if I mean we're we're holding this over a barrel. So, we got I guess we have vote for it. Any other questions or comments?
Attorney, do you have or manager? No down there. Motions. I'll make a motion. Move to approve the revision of the basis of design for the Xolo Sports and Events Center and approve change order number two to finalize the design documents for the project number FM-4625. Got a motion and a second by Councilman Adams. All those in favor? All those opposed? Motion passed six or five to one sorry. No, vice mayor. Okay.
Next item on the agenda is consideration of approval of guaranteed maximum price number one contract amendment for Xolo Sports and Event Center for preliminary grading and steel purchase city of Xolo project number FM 4625. Mr. Hempsaw. Right. Mayor Council at its regular meeting on July 15th, city council awarded design bill contract to Hayden Companies LLC for the Shrol and Sports Event Center cost to exceed $4,426,871.
The scope of the work this contract is the first phase of the design build contract phase two um of the contract will include the construction phase of the work for the with a guaranteed maximum price for the work approved. Over the past year, the design team has been working through the design phases and have recently been released to complete the final construction documents of the project.
The contractor is ready to move forward into phase two of the project and begin with the mass grading of the site as well as placing a down payment for the pre-engineered steel building for the building to secure delivery in February. The contractor also would like to start the grading work prior to as much winter weather as possible. The GMP1 has been presented by the contractor for a cost of $4,164,680.
Scope of work includes mobilizing the site, installing an access road to the site, mass grading of the site, including preparation for the building pad survey staking geotechnical testing, and placement and placing the down payment of the steel structure to secure a delivery date. These costs are in line with the previous approved project estimate of $56.8 million. A second and final GMP will be presented to the city council tenatively scheduled for November 17th.
The city council at that meeting to approve the remainder of the scope work for the project. Uh staff recommends approving GMP number one contract amendment for the Cholo Sports and Event Center for preliminary grading and steel building purchase down payment at the cost of 4,164,680. City of Charlotte project number FM 4625. Um they had a supplemental agreement or the actual amendment attached with the cost of the items that are being handled in GMP1.
And just an overview of this is just pulling out a section of that total project cost of the 56.8, pulling out the grading, pulling out the down payment on the steel so they can get started while they finish up the plants in the next two months and get a building permit later this year. Thank you, sir. Questions or comments? I guess Go ahead. No, you go. Well, I guess the good thing is is getting the steel ordered so it quits going up. Quit going up.
That's it's been going up since we started this project. So, go ahead, Councilman Clark. Yeah, Shane, could you help me understand what the when you we're talking about the um the GMP number one is presented today and that's for four for the price that's that's listed here. Um, and then what what is the second and final GMP will be presented potentially at November 17th? Like what are we anticipating with that in November?
Like what's going to delineate between what we're voting on tonight and in November? So Chris, you can help me verify this, but currently we're tracking with the $56.8 million for the project. Um, there's even some some contingency maybe we're going to work down from. Um, there are some other items that they're finalizing as well. Um, but basically you're pulling out the the 4 million out of the 56.8 and then the remainder is going to be what we're going to bringing to you in November.
So we'll be down to 52 or or less. So can I ask um from I guess the city manager would be the one who would um guess would be this seems like a obviously a very large project that we're working on. Um, it looks like you just approved the uh the what is what was the amount that we just uh changed the change order of 426,871 and that includes it looks like some of the numbers that that uh the team gave us is the total contract was amount contract amount was 3.2 million and some change.
So that coupled with this amount that's now being requested tonight, can we whenever the sports complex is being brought before us, can we get like a breakdown of what is specifically been spent like cuz I I want to make sure that like if the $3.2 million for the design and all of that's been spent out of the 56 million and then now tonight we're pulling out 4.164 million. Can that you know what I'm saying?
Like each time this comes before us, we can see this was pulled out on this date, this was pulled out on this date, this is how much is left, these are the anticipated cost of that 56 million. And so that we have a clear understanding every time one of these comes before us. Is is that possible with our staff or Sure, we can do that. The um a lot of the design work was done in last year's budget um as they were moving through the design phase of the project.
So some of that was spent in last year's budget, but we can give you the amount. There's still some of the design to be paid in this year's budget, but we've also set aside roughly eight eight and a half Justin 3.5 million in this year's budget. So, that's where the rest of it will start to come from.
In couple weeks, we're going to bring to you the um a study session on the 15th where we have our um financing people that are going to come and talk about the financing as we go forward for the rest of the it'll be in September 15th and then sometime in October they'll probably bring the um actual financing documentation to us to finance the rest of so as um organize some of the money that we paid from last year's budget attributed to the 56 million total amount ount or is that? Yeah, sorry.
So, the I think the the design is now up to 4.4 roughly and change. Yes. Some of that was already spent roughly 2 million in last year's budget. So, again, that's it goes toward it's all towards the 56.8. All that was included in the 56.8. So, I mean, I don't know if the rest of you guys up here want that. So, I mean, I'm just one person who's asking for that. So, the rest of you don't want that accounting fine, but I think it should see it. Yeah, I have no problem with that.
A good idea to keep everybody controlled on what we're spending. Agree. That's all I I just have a Yeah, that's it. So, that's all I have. That's a question. Questions or motions? Council Whipple. I'll make a motion. I move to approve the guaranteed maximum price number one contract amendment for the Xolo Sports and Event Center for preliminary grading and steel building material purchase at a cost of 4.164 680. City of Xolo project number FM4625. Got a motion. Need a sec.
Got a second by Councilman Adams. All those in favor? All those opposed? Five to one. Just a quick quick comment on on on this whole event center. I know it's a it's a huge project for us. I know social media is bashing me over this project to a point. I get it. But also to a point, remember I'm one vote. We're not building this because we want it.
this community probably 15 years ago came to our council and most I don't know if any of us were on besides myself or might have been on it and said we need an event center. So we looked into it. We spent the money. We budget it. We went to the professionals. Obviously we've never built an event center, right? So we paid money to get professionals to tell us what we wanted. They came back to the council and said this you need an event center.
this is the size you need, but you might think about a sports center with it. So again, we hired the professionals and said sent it out and, you know, spent the money to get the professionals to tell us what we needed and that's where we're at. So, you know, as the mayor taken the heat on social media, go ahead. I I'm one vote. We could sit up here and vote 70 to vote unanimously and I'll still take the heat for it just because Councilman Clark has his own opinion on this.
We all voted to build this. We are building this event center. If this council turns around in the next few weeks and goes four to three not to build it, we just cost you taxpayers all the money that we've paid to today. So it the the rumor mill and everything that's going around this community. We're building this project. He has his own opinion. That doesn't made him make him bad. I have my own opinion on everything that we do up here.
But how the event how it's going where it got to today wasn't because of these seven people sitting up here saying we want to build this. This community came to this council and said this is ridiculous. We need to have that. So that's where we're at today. Um I appreciate all the input. I really do from everybody up here. Um, like I said, I I I I like to hear Councilman Clark's opinion on on this event center. As far as building it, we're building it. I I don't know why people don't get that.
We're not building this event center. If if you can change four minds up here to not build this after all the money we spent, good luck. Anyway, moving right along. At this time, I'll look for a motion to go into executive session. Move that we go into executive session. Got a motion. Need a second. We are now in executive session. Thank you guys. Okay, we'll return back to our regular meeting and look for motions for direction in executive session.
Uh I move to direct staff to uh carry out what we've discussed in executive session pursuant to the items that were agendaized for executive session. I'll go ahead and second it. All those in favor? All those opposed? Motion pass unanimously. At this time, I'll look for a motion to accept the minutes of the executive session. I'll move to accept the minutes of the executive session from Xolo City Council head on January 20th 2026. Got a motion. I'll second it. All those in favor?
Motion passed unanimously. Okay, moving right along. Uh summary of current events. It's a great day in Xolo and uh I think this year our football team might be good. Wish him the best and I know that our youth is uh paramount on council's mind and community and I think that it's a great thing that uh to have our community and we understand that That's where it's at. Youth families and kids and being raised right and I think got well else just just real quick.
Um it's slowing down a little bit in Xolo. So it's been we've been very blessed. Thank you for your your prayers. We've been very blessed with some some rain um the past few weeks. It's it was kind of strange. I I did a wedding Saturday out of town at Dobson Ranch. I don't know if you've been out there lately. It's It's beautiful. Anyway, coming into Xolo, it I think somebody stood over me and just poured a bucket of water all the way into Xolo. I got into Xolo to clear it up.
So, it's uh we we are being blessed right now. We got through our fire season. I I just can't thank everybody enough. And and everybody seems to be slowing down. I believe, Chief, it's uh not the PL the traffic is slowing down a little bit. Anyway, thank you everybody that's in our community that's slowing down a little bit and no left turns all summer.
So, city manager, I won't read all this other stuff I was going to read, but um just to remind the council of a couple things that they may want to attend. So on September 11th at the Turn the Car Community Center, there's a community remembrance breakfast, I guess, to kick off the 25th anniversary of 911. So from 6:00 to 9:00 that that morning, you're go by anytime and get free breakfast there at the communities.
And I just wanted to uh remind the council that uh that we're going to do a kind of an open house ribbon cutting for the new public works building on September 10th between 11 and 1. Stop by check out the new building. I think they're going to be cooking hammers and hot dogs and just letting people kind of see the new building there. And then uh scheduling of meetings. Mayor, if I'll just go to that. Sure.
Um, just again, we talked about this tonight in the meeting, but on September 15th at 6, we'll have a study session to discuss the financing sports. Thank you. Um, just real quick on the public works building at the new building. I don't know if you guys have been out to see it at all yet, but you get a chance before that ribbon cut to go out and see it. But his staff is so amazing. They're building one of the guys went out in the woods and cut or found some trees that were down.
He's building this big huge beautiful um sign for out front there. You know where that wagon wheel is out in front of the old building. They're they inherited that. It's going to go in this log. It's beautiful. I got to see he was working on it today when I stopped by there. But um Rick takes a lot of pride obviously not just in a public works field in this community. And um his staff is the same way.
You talk to any of those guys there at public works, it seems like they to them they're working in their own backyard. And you can tell by looking around this community. Anyway, um, anybody need seconds? Seeing no more business before this council, I adjourn this meeting. Thank you guys. [music] Heat. [music]