Depending on the outcome of a council resolution, workers at Athens City Hall may be moving into new digs by Labor Day.

It won’t be a permanent move, however, but would afford construction crews the opportunity to demolish the City Hall building on Hobbs Street to make room for a new and improved facility. The proposal was one of many important issues discussed Thursday by the City Council during a work session.

Mayor Ronnie Marks asked the council to consider passing a resolution to renovate about 10,000 square feet of space on the second floor of the Athens Utilities building to accommodate City Hall operations while a new building is constructed. He estimated renovations would cost between $70,000 and $100,000.

Marks said if the council passes a resolution, the renovation process could start within 30 days.

“I think we can have all of City Hall moved to that facility by Labor Day,” he said.

Council members all agreed to bring up the resolution at Monday’s city council meeting and voiced support for the proposal.

Marks also recommended using the same architecture firm — Krebs Architecture and Engineering of Birmingham — for the renovation project. The company has been working with the city on the new City Hall project.

Marks would like the council to consider building the new City Hall at its current location, but build a two-story facility that would “tie into the historical part of Athens a little better.” He said a previous idea to move City Hall into the new library building on South Jefferson Street is no longer an option, and that the former Kroger building will be used as a library only.

Council member Mignon Bowers said moving City Hall operations to the utilities building is a “win-win” for the city.

“I didn’t realize what a valuable asset we have just sitting there,” she said. “When City Hall moves out of there, it will be an asset to the utilities (department).”

Marks said it is imperative the city move quickly on the City Hall project because of the continuing decline of the building. He said mold is starting to form in parts of the building and it would be unsafe to continue to expose workers to that environment.

The only part of the City Hall facility that may remain intact is the old City Council chambers. Built in 1984, Marks said the chambers and an adjoining work session room are still functional and could provide additional meeting space for organizations that need such a facility.

“We can change the roofline, pitch and façade on it (to match the new City Hall),” he said. “It doesn’t make sense that we would bulldoze that down.”

Marks also suggested saving marble from the current City Hall to be used in the new facility.

Library project

City Council members also discussed the proposed library project and how much money it would take to complete Phase 1.

Marks said CMH Architecture, which is conducting architecture work on the facility, has been challenged to drastically scale back costs. Phase 1 would include a new roof and heating and cooling system. Once those primary goals are established, Marks said, then the groups committed to funding the project can consider how to develop the interior floor plan.

Three of the four groups — the city, Limestone County and Library Foundation — have agreed to begin moving committed funds into a joint account to be overseen by the city. However, Marks said the Library Board of Trustees is considering several “variables” before shoring up its monetary commitment.

“If they’re going to build this phase, they’ve got to get to the table,” he said. “If the foundation has $300,000, the city has $300,000 and the county has $300,000, if the Board of Trustees puts in $1 million, you can build Phase 1.”

Right now, there is about $3.5 million committed to the project, with the estimated cost for Phase 1 about $2,018,000.

Marks said there was no budget established for the project initially, which enabled planners to develop a “dream” project that is no longer feasible. He said some design ideas, which would have implemented green technology, are no longer part of the plans because they are no longer cost effective. There was also an initial furniture budget of $400,000, which Marks said will likely have to be cut in half.

Technology

Marks also asked the council to consider funding a new phone system at a cost of about $330,000. He said the current system is so outdated, the city can no longer purchase equipment.

The city would pay $180,000 out of the general fund while $150,000 would come out of the utilities department fund.

“It is a very important part of being progressive in moving toward the future,” he said.

Revenue

Financial administrator Annette Barnes presented council members with good and bad news regarding the city’s budget.

The bad news related to the city’s gasoline expenditures, which are about $2,000 over the budgeted amount for this time of year. Even worse, she said, the months, which require the most gasoline usage, are still ahead.

Marks said the city may look at parking some vehicles or cutting down on gasoline usage to get numbers more in line.

On the upside, Barnes said the city’s revenues for the first five months of the 2011 fiscal year are about $300,000 over this time last year at $1.5 million. Overall taxes are up about $180,000, which includes $60,000 in lodging taxes. Sales taxes were up $56,000 and property taxes were up $31,000.

The city splits all tax revenue with Athens City Schools.