Agenda - 02-19-2019 8-a - Minutes

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I As currently designed, the new Detention Center would consist of one hundred forty-four (144) 2 beds in approximately 48,900 square feet. The new facility would replace the existing 40,227 3 square foot detention facility located in downtown Hillsborough that was originally constructed in 4 1925 with additions and modifications occurring in the early 1980's and mid-1990's. The new 5 17,200 square foot Environment and Agricultural facility would replace the 19,087 square foot 6 office building currently located on Revere Road that houses the Department of Environment, 7 Agriculture, Parks and Recreation, Cooperative Extension, Farm Service Agency, and Soil and 8 Water Conservation. Finally, the 8,500 square foot Parks Operations Base would replace 9 scattered facilities at Millhouse Road Park used for office and equipment storage. 10 11 The County has recently completed the schematic design phase of the project and updated 12 cost estimates based on the building dimensions described above and programming needs of 13 the future building occupants. Based on those estimates, the current authorized budget amount 14 is not sufficient to complete the entire scope of the project. 15 16 With no changes to the current project scope or value engineering, the project is projected to 17 exceed the budgeted appropriation by approximately $13 million. Attachment 1 details the 18 schematic design cost estimates and budgeted appropriations for each element of the project. 19 20 At least three factors have contributed to this difference. First, these projects have been 21 included in the Capital Investment Plan for several years without budget escalation to recognize 22 inflationary cost pressures. The Detention Center has been in the CIP since 2012. The 23 Environment and Agricultural Center was originally included in the CIP in 2014, and the Parks 24 Operations Base was included in 2013. In recent years, construction costs have escalated by 25 five to seven percent annually. Second, the current construction environment is highly 26 competitive, so an inflationary adjustment of seven percent (7%) is added to the projected 27 costs. Finally, the original budget did not assume site acquisition costs or the associated 28 increase in site preparation for a larger site compared to the original detention center site 29 owned by the State. Several strategies can be used to reduce the cost of the Northern Campus 30 Project. 31 32 Repurpose Previously Appropriated Funds: The County had previously borrowed funds for 33 Detention Center Design. Of this amount, approximately $718,000 is remaining to apply to the 34 current Northern Campus Project. 35 36 Value Engineering: Value engineering strategies can be used to change architectural and 37 aesthetic features without impacting how the facilities function. The project team has identified 38 $875,000 in value engineering strategies as detailed in Attachment 2. 39 40 Project Scope Reductions: Elements of the project may be reduced or eliminated to produce 41 savings. The staff team has identified $438,000 in potential scope reductions as detailed in 42 Attachment 3. As part of the scope reduction exercise, the number of Detention Center beds 43 was examined. The Detention Center capacity could be reduced by forty (40) beds which would 44 eliminate any capacity to house federal inmates and would immediately fill the available beds. 45 The elimination of federal inmates would also reduce operating budget revenue by $1.6 million. 46 47 Project Deferments: Projects that are currently programmed in the Capital Investment Plan 48 could be eliminated or deferred to a later date when the County's debt capacity would 49 accommodate them. The Southern Human Services expansion and a portion of the Cedar 50 Grove Park Phase 2 expansion could be postponed for a savings of $2.6 million. Components