Travis County Commissioners Court
June 26, 2007
Item 14
>> and that is item number 14, consider and take appropriate action on transfers, discussion items.
>> leroy nellis, planning budget, I have our analyst and she can walk you through our recommendation.
>> and the main point that I need to make right now is that there is a correction on my memo on the amount being requested. It ties -- the correct amount is listed on your cover page, 263-030 and the 910-556. I was using an older figure that I had been provided, I was using 1,137,110. So the correct figure that is being requested is the $1.27 million. All that means is on my memo it's a little understated throughout. Basically pbo is concurring with facilities management on the source of funding which is the $362,030 from the cost escalation reserve, and then taking the budget for the human marion sweat courthouse project h 3 in car funding this fiscal year. The construction portion of it is $910,556.
>> now, on that hvac, we didn't approve a contract to do that work recently? Was that just for design or what?
>> director of facility management department. We have about three phazes, phase I is -- phase ii is finished now. Phase iii we had the decision completed, that's what we awarded --
>> okay.
>> but construction budget left on that is $910,000 to do phase iii, and we're saying about two more months until the budget...
>> but we had an amount in the '07 budget for it?
>> that's correct.
>> yes.
>> that amount is less than we need, plus we're not ready to do it?
>> and that has request --
>> right, it's requested to be funded again in '08.
>> '08.
>>
>> [inaudible]
>> correct.
>> but also in this I tried to go through this as thoroughly as possible, which the se. T money, reserve money with the hvac money, that will be used a little more than 1. Million dollars for their shortfall. There was some things I still needed to get a handle on, and what that actually is is that we looked at the -- and the portion I need to get a handle on is the bid request that is going to go out because whatever happened it appears that the money, the bid process as far as material and a whole lot of things, has far exceed what we expected so we have actually gone beyond the amount of money, $4.9 million we were looking at originally. So looking at those aspects, even though fke -- fk and e, the capital, the pump, all of the things needed out there, the construction deal is still something that I want to make sure that we get our arms around thoroughly, and we actually ended up putting looking at an fte earlier to make sure that we addressed this cost escalation stuff, so I really need to find out, number one, where all we are filling that position, that fte address concerns just as we're dealing with the other day to make sure that the cost escalation factor does not play such a significant impact on us as it's doing now. Can someone answer that question for me, please?
>> sure. If I may go back a little bit and talk about the project.
>> in the budget -- come in, $4,920,000, $4,920,000 to do 8 buildings on Travis County. Then we ask the court for 20% escalation, and the 20% escalation was approved by the court and replaced reserves and now we have a total budget of $5,900,000, of which $300,000 went to planning, design, and the rest -- so what is left on our budget is $5,600,000. We didn't design the project in a way that we have a base bid plus alternative, this way it can fit the budget by awarding buildings that fit the budget. So we have the base bid -- the base bid was service building, it's about 36,000 square feet, actually 35,065 square feet. The bid was a base and the bid on that came from the low bid on that, $3,032,000. Facility management budgeting for that is 3,349,000, so it's a little bit below the budget, and if I go through all of those buildings, the total amount of the low bid, look at all 8 buildings, is $5,978,000. We have a budget for $5,600,000 now, if you look at the spreadsheet I sent in the e-mail late last week, I did and an analysis for all the buildings, each building separate as, you know, you can pick and choose if you want to award alternate one. Alternate one by the way is public building, it's 8,393. Just want to mention that the low bid came about $1,485,000 which is $176.90 per square foot. Well, our budget was $100 per square foot plus 10%, 110, so really a differential of that, it's about like half a million dollars. I cannot explain. This is not a fort. This is a building, typical buildings that we do for the last six, seven, eight years, we do all buildings in that -- administrative buildings. Second is the crew building. The crew building is 2,388 square feet and the low bid came $600,000. Which is translate to $251 per square foot. Well, facility management number is $100 per square foot plus 10%. So that is an addition right here of 337 above and beyond the normal construction process I cannot explain. I don't understand why this -- the pre-fabricated metal buildings for 2,300 square feet cape out at $600,000.
>> did you we ask the bidders?
>> pardon me?
>> did we ask the bidders how the bids came in twice our estimate?
>> no, we did not. We did not ask the building.
>> it may be something about our bid that made them go twice our estimate. It's really a large number that we factor in we put a 20% escalator in there and some contingency on top of that, and then their bids came in double that.
>> that's correct.
>> so, I mean I may not be -- but I think they would know, right?
>> we are -- I'm planning to meet with purchasing on these issues and then if we can talk to the contractors, you know, if he can open his, you know, bid. Usually the contractor does not open their bid, but I think we can -- the purchasing might have a way.
>> how many bids did we get?
>> hmmm?
>> how many bids did we get?
>> we got 3, one bid was 1,485,000 t second low bid on that particular building is 985, and management cost estimate for that building assigned. $500,000 differential from the low bid number one, and low bid number two, and I think I did have it on attachment number one, as you could see it, and it says an alternate bid number one it's 1,485 to 985, the differential, the difference between bidder number one and number 3 is $500,000. Now what I'm trying to get over here is if we hold facility management number which is like a little bit conservative on the upper side, you know, $110 per square foot and award all of those buildings, then we are -- we will be $500,000 less than our budget which is 5,600, which is -- we are within the 20% of the escalation not over. Those two buildings right there, they skew the whole process, the whole budget, and that's what I'm trying to tell the court, that the whole -- the whole building, if you look at each of those buildings I might add, you know, the warehouse and the design shop, the low bid was $563,000. This is 11,948 square feet and its about the same thing, it came less than what we budgeted for which was 695. And the alternate bid number 4 is a covered parking lot, was a structure, and alternate number 5, the same thing is covered parking lot structure, the bids are similar, they come within 85 to 98 on the low bid and we got about 127 including our contingency. If you look across the sheet right there, that's what I'm trying to say, if -- if those two buildings hold back just like all other buildings, now to the normal plus or minus, you know, like 5 or 10% just like we had all the other buildings, then we would have the whole bid including, you know, the base bid and all alternate under the budget by $500,000 within the 20% project escalation. There is $895,611. Those are the differential between what the low bid has on those two buildings and what facility management has. We estimated and designed it and we run so many right through $110 per square foot. Those guys they come up with 151 and 176. I'm saying there's about $900,000 above and beyond the normal construction costs and I cannot find that, and I don't think anybody can.
>> are we convinced that our $110 is at market?
>> yes, sir.
>> yes, judge, I'm sorry.
>> yes, $110, a pre-fabricated metal building, they're not as expensive as if you build up just like we did on prison 3, on precinct 4, it was columns and beams and all of that, pre-fabricated metal bidding should be less. Let me give you an example, it's a pre-fabricated metal building for 4,000 square feet in the -- it's storage. It's called -- it's a storage, and offices and come out with $200,000. 4,000 square feet, that is about -- you know, you divide that 400,000 by -- 200,000 by 4,000, you're talking about $50 a square foot, rented. Might have a little bit more on a crew service building or administrative buildings. But cannot go up to $251 per square foot.
>> what you're saying is we ought to reject all of these bids.
>> I'm not recommending rejecting all these bids --
>> what is your recommendation today?
>> all right, my recommendation today is this: let us award the base bid, which is the bid services and the warehouse and the shop, and the covered area a, covered area b and wash bay, and if you would let me talk to tnr on that, tnr the user, they would like to move forward with the public and crew, let me go talk to tnr one more time. We can see if we can save $900,000. 110 I can't -- my recommendation is if I can't pull alternate number one and alternate number 2 and come back later on with the three months and change the design from pre-fabricated metal buildings to a wood structure building also, I it's one story level, the cost might go down, only the schedule would be shifted three months only.
>> okay. Does that cover -- does that cover the -- we have a 1 and t 1 here, and I need to add pbo, what he suggested here with the recommendations, those particular items, a 1 and t 1 cover those requests that he's making this morning?
>> I'm not sure they would be needed at this point, if he's doing with the lower bid, it's first time I've heard this recommendation, so I have to go back and do the math on it. I don't know, roger, do you know how much -- have you totalled out the base bid and then all the other structures, alternate except -- alternate one and two, are you going to need the extra or --
>> I think -- I think I will not need the extra at this time but this is for the project. All I'm saying -- all I'm saying is if I take the alternate one and alternate two, I have the picture right now, I still have a budget on $110,000.
>> yes.
>> I can't do it.
>> right. Because alternate one and alternate two --
>> my question is this: in t 1 we have no more than 9 or $10,000, project we looked at, and then of course a 1 being the money coming from the reserve, the cost escalated reserve of more than $300,000 here, and those combined total a little more than $1.2 million, so what my concern is that is will that amount cover whatever you are subjecting, because this is the way it came to to us, I looked at it, I saw what you were doing, the only question that I had that was significant in my mind, in fact there were three points -- three factors in this proposal that kind of stood out, and one was basically dealing with the -- with the f -- f and e, which you went through, you know, of course the construction, the bid portion of that, and that was, you know, I looked at those different situations and I said, well, wait a minute, that is the one that we really don't have, I think what you're trying to explain to me today is that particular portion of that, so the other was dealing with water and wastewater, talking about $500,000 dealing with the water and wastewater here, so I'm still a little not lost, but I'm still trying to make sure if you are talking about the portion that we don't have a certainty on at this point which is the two subject matters which she's talking about the construction, the bid process which seemed to be kind of out there somewhere, what about those other two components that I just mentioned, the f, f and e that was brought up, and the water/wastewater, that was brought up in the whole scheme of things as far as a 1 and t 1, I'm trying to put my arms around it, roger, you have to let me know.
>> it's going to take a week to do that.
>> pardon me?
>> it's going to take a week to do that. The recommendation today makes sense to me.
>> thank you.
>> but the first question is whether the facility -- whether tnr can live with that. Too, I guess, make sure those bids we plan to use are still outstanding. I touched base with the contractor that submitted bids and found out why it's what we expected.
>> sure.
>> what you're saying, the two cost of pieces, let's hold off on that.
>> okay.
>> so the question then is what money transfers recommended today do we need to make in order to implement your strategy.
>> okay.
>> and then the question is overall can we make that strategy a go and keep moving forward with the plan?
>> I understand.
>> but another week of work.
>> that's correct.
>> I would like to go over issues and also...
>> tnr too.
>> tnr for sure.
>> if I'm understanding roger correctly, he's just recommending the base bid which is the sleep services, that means the admin building, the crews building and the sign shop is not included.
>> no, no, that's not what I'm recommending. I'm recommending did I time, you know, with this particular low bid contractor right now, I'm trying to recommend the fleet service building and also the warehouse and sign shop. I'm recommending also the covered area, that's four buildings. I'm recommending the covered area b, which is five buildings, and I know they need that
>> [inaudible] and if we can handle that, it's not that much, it's within our budget t only two things here I'm not recommending at this time is alternate number one and the crew piling. I'm asking the court to go back to the design table and change the structure from a pre-fabricated metal building to the wood billing, and then I think it's going to come back right there within my allocated budget which is $110 per square foot and I can make it within the budget of --
>> roger -- roger, is it not possible to award alternate one and two to that number three bidder which is substantially lower than everyone?
>> I think we can, but we told on the pre-bid meeting, I think with purchasing, want to award only to one contractors, you know, but different alternatives, you know, depends on how the budget money is available, but again it's still, if you want to go for alternative number one, we cannot hold to it I believe 90 days. (one moment, please, for change in captioners...)
>> if the -- the timing would be the concern. You have the buildings there, no crew shop for them to show up. No crew, no admin building for which we work -- it's the timing. -- I mean, there's a way to work it out, we still come out with the right time, I am sure that we are -- we are more than willing to listen. It's just -- it's difficult when you get all of the rest of the buildings without the admin and the crew shop at the same time.
>> all I'm saying is that we have a -- a possibility that -- that we will build those administrative buildings and also the crew buildings within three months from and you are normal schedule. From our normal schedule. What I'm saying is in lou of finishing this, in about like -- in lieu of finishing this in 110 days, then we will finish it in 270 days. If you are awarded right now, the contract, have the money, the contractor will do it, then the contractor will have 170 days. The way it was structured in the schedule, also, add for the base -- if I work the base, the schedule is only 180 days day. If I work the
>> [indiscernible] add only 30 days, that means 210. If I add the base date in our permit to not add another 30 days. What I'm trying to say is we -- we do the base bid, the warehouse and shop, that's 30 days addition to the 180, that's 210, all the cover -- wash bay are within 210, that's what the contractor bid on this schedule, also. The only thing left is 60 days for alternative one and alternative two. So if -- if we award all of that, it's going to take 270 days, if I work only the one recommended right now, it takes 210. That two months, I will change the structure, I probably save my $100,000.
>> go to bit and everything.
>> that's correct.
>> the --
>> I don't think -- I tell you this, 110
>> [indiscernible] that's -- that's normal going everywhere for an administrative office.
>> give us a clean memo covering this recommendation today. Now the backup that we received, left the impression that the decision on the wash bay was still open. That it might make sense based on the cost, might make sense to use commercial wash bays.
>> we are still looking into that. Will quo in and
>> [indiscernible]
>> recommended that we build it.
>> right.
>> and --
>> that's right.
>> so the question between now and next week is let's land on that as well as the reasons why. I can hardly wait until next week. One week long enough?
>> that's correct.
>> or two weeks.
>> that's the question.
>> is one week long enough roger or do you need two.
>> > one week, that's enough.
>> okay.
>> one week,.
>> one week, all right. That was the only --
>> one more actually.
>> okay.
>> item -- other or 01 is transfers 81,100 from the general fund allocated reserve to -- to line item we have a line item now that I would like to read into the record. 00108705189018 and what that is is an operating transfer out to fund 18, due to some recent legislation changes we have to create 18 for purchases related to voter enhancement. Basically this money that we are transferring from the allocated reserve will serve as working capital for them to begin those purchases. I will be happy to answer any questions.
>> in the account, let me just read the revenue account that it would go into and fund 18. It would be 01808703212025. That's -- that's state
>> [indiscernible] governmental revenue.
>> the money would be used for what now?
>> this is more or less -- the tax office was getting, purchasing services and supplies for voter registration and they would send the invoice, just send their receipts over to the state may just reimburse them now. The state would pay for them previously. Now we are having to -- to front the cash. And basically what this operating transfer does, is moves cash over to fund 18. And then what we will do is in the '08 budget is we will move it back into the general fund when we get the reimbursement from the state. It's just a matter of setting up an account and making sure it has cash.
>> move approval.
>> second.
>> discussion? All in favor? That passes by unanimous vote. Thank you all very much.
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Last Modified:
Wednesday, June 27, 2007 8:59 PM