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33 <br /> office building currently located on Revere Road that houses the Department of Environment, <br /> Agriculture, Parks and Recreation, Cooperative Extension, Farm Service Agency, and Soil and <br /> Water Conservation. Finally, the 8,500 square foot Parks Operations Base would replace <br /> scattered facilities at Millhouse Road Park used for office and equipment storage. <br /> The County has recently completed the schematic design phase of the project and updated cost <br /> estimates based on the building dimensions described above and programming needs of the <br /> future building occupants. Based on those estimates, the current authorized budget amount is <br /> not sufficient to complete the entire scope of the project. <br /> With no changes to the current project scope or value engineering, the project is projected to <br /> exceed the budgeted appropriation by approximately $13 million. Attachment 1 details the <br /> schematic design cost estimates and budgeted appropriations for each element of the project. <br /> At least three factors have contributed to this difference. First, these projects have been <br /> included in the Capital Investment Plan for several years without budget escalation to recognize <br /> inflationary cost pressures. The Detention Center has been in the CIP since 2012. The <br /> Environment and Agricultural Center was originally included in the CIP in 2014, and the Parks <br /> Operations Base was included in 2013. In recent years, construction costs have escalated by <br /> five to seven percent annually. Second, the current construction environment is highly <br /> competitive, so an inflationary adjustment of seven percent (7%) is added to the projected <br /> costs. Finally, the original budget did not assume site acquisition costs or the associated <br /> increase in site preparation for a larger site compared to the original detention center site owned <br /> by the State. Several strategies can be used to reduce the cost of the Northern Campus Project. <br /> Repurpose Previously Appropriated Funds: The County had previously borrowed funds for <br /> Detention Center Design. Of this amount, approximately $718,000 is remaining to apply to the <br /> current Northern Campus Project. <br /> Value Engineering: Value engineering strategies can be used to change architectural and <br /> aesthetic features without impacting how the facilities function. The project team has identified <br /> $875,000 in value engineering strategies as detailed in Attachment 2. <br /> Project Scope Reductions: Elements of the project may be reduced or eliminated to produce <br /> savings. The staff team has identified $438,000 in potential scope reductions as detailed in <br /> Attachment 3. As part of the scope reduction exercise, the number of Detention Center beds <br /> was examined. The Detention Center capacity could be reduced by forty (40) beds which would <br /> eliminate any capacity to house federal inmates and would immediately fill the available beds. <br /> The elimination of federal inmates would also reduce operating budget revenue by $1.6 million. <br /> Project Deferments: Projects that are currently programmed in the Capital Investment Plan <br /> could be eliminated or deferred to a later date when the County's debt capacity would <br /> accommodate them. The Southern Human Services expansion and a portion of the Cedar <br /> Grove Park Phase 2 expansion could be postponed for a savings of$2.6 million. Components <br /> of the Northern Campus project could also be postponed. Postponing the Environment and <br /> Agricultural Center and the Parks Operations Base would defer$7.75 million in construction <br /> costs. Given the County's current debt profile, debt capacity will begin to increase in FY2023- <br /> 24. See Attachment 4. <br /> Using a combination of these strategies, current project costs may be reduced. The following <br /> table outlines different strategy combinations in four (4) different options. <br />