Okaloosa County BOCC — September 16, 2014 — Action Item Printout — reading text

BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: September 16, 2014 TO: Honorable Chairman and Members of the Board FROM: Don Turner SUBJECT: New SO Building GMP DEPARTMENT: Facility Maintenance BCC DISTRICT: 2 STATEMENT OF ISSUE: (FM) Requests BCC approval of the proposed Guaranteed Maximum Price (GMP) for the New Sheriff's Building in Shalimar. BACKGROUND: In the interest of keeping the project on schedule, the work to build a new building for the Sheriff's office in Shalimar has raced ahead of the approval of a Guaranteed Maximum Price (GMP) for the project. The Sheriff's new building is well under way. The building package has been ordered, the site work contract has been let, and the contractor is about ready to break ground. The project began many months ago with a target GMP of $1,500,000. The soil borings revealed poor soil conditions under the proposed building due to high sub-surface water levels. The engineering solution is to dig out the poor soils and bring in about 600 c.y. of suitable fill and to reinforce the slab with additional concrete and heavier steel. This item alone has added tens of thousands of dollars to the cost of the project. In addition, market prices for the goods and services necessary to construct a building have gone up steadily over the last year or two. A couple of years ago when the county build another major project, the county benefited from a depressed economy. Contractors were desperate for work and submitted extremely discounted bids to work on this project. Thankfully, the economy has improved substantially since then. But, the improved economy comes with higher prices for goods and services. On a $1,500,000 expense, a price increase of just 5% results in an additional $75,000 of cost for the very same purchase. The county isn't immune from such market increases. At one point during the SO's project's development, the project's total costs were nearing $1,600,000. Subsequent value engineering efforts have brought that number back down to $1,474,074. The project team continues to comb through the individual components of the project in the attempt to identify any additional savings that may be identified. There are a few items that were added to the scope since the project was first conceived that have added some costs. Those items are identified on the attachment. The project team as challenged every item for savings, but left those items alone that were operationally necessary or reasonable. These items account for most of the overage that still remains. Staff recommends BCC approval of the GMP for the Sheriff's new building in Shalimar in the amount of $1,474,074. RECOMMENDATIONS: (FM) Requests BCC approval of the proposed Guaranteed Maximum Price (GMP) in the amount of $1,474,074 for the New Sheriff's Building in Shalimar. RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator