HomeMy WebLinkAboutAgenda - 02-05-2019 6-b - Northern Campus Project Update 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: February 5, 2019
Action Agenda
Item No. 6-b
SUBJECT: Northern Campus Project Update
DEPARTMENT: County Manager's Office
ATTACHMENT(S): INFORMATION CONTACT:
1 - Northern Campus Schematic Design Travis Myren, Deputy County Manager,
Cost Estimates 919-245-2308
2 - Value Engineering Strategies
3 - Scope Reductions
4 - Project Deferments
PURPOSE: To review schematic design cost estimates for the County's Northern County
Campus and consider budget adjustments to the project.
BACKGROUND: The County's FY2018-19 Capital Investment Plan merged three
independent projects into the Northern Campus development. This development, located off of
Highway 70 in Hillsborough, is intended to include a replacement Detention Center,
Environment and Agricultural Center, and Parks Operations Base. The Board of
Commissioners appropriated approximately $28 million for the project.
As currently designed, the new Detention Center would consist of one hundred forty-four (144)
beds in approximately 48,900 square feet. The new facility would replace the existing 40,227
square foot detention facility located in downtown Hillsborough that was originally constructed
in 1925 with additions and modifications occurring in the early 1980's and mid-1990's. The
new 17,200 square foot Environment and Agricultural facility would replace the 19,087 square
foot office building currently located on Revere Road that houses the Department of
Environment, Agriculture, Parks and Recreation, Cooperative Extension, Farm Service
Agency, and Soil and Water Conservation. Finally, the 8,500 square foot Parks Operations
Base would replace scattered facilities at Millhouse Road Park used for office and equipment
storage.
The County has recently completed the schematic design phase of the project and updated
cost estimates based on the building dimensions described above and programming needs of
the future building occupants. Based on those estimates, the current authorized budget
amount is not sufficient to complete the entire scope of the project.
With no changes to the current project scope or value engineering, the project is projected to
exceed the budgeted appropriation by approximately $13 million. Attachment 1 details the
schematic design cost estimates and budgeted appropriations for each element of the project.
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At least three factors have contributed to this difference. First, these projects have been
included in the Capital Investment Plan for several years without budget escalation to
recognize inflationary cost pressures. The Detention Center has been in the CIP since 2012.
The Environment and Agricultural Center was originally included in the CIP in 2014, and the
Parks Operations Base was included in 2013. In recent years, construction costs have
escalated by five to seven percent annually. Second, the current construction environment is
highly competitive, so an inflationary adjustment of seven percent (7%) is added to the
projected costs. Finally, the original budget did not assume site acquisition costs or the
associated increase in site preparation for a larger site compared to the original detention
center site owned by the State.
Several strategies can be used to reduce the cost of the Northern Campus Project.
Repurpose Previously Appropriated Funds: The County had previously borrowed funds for
Detention Center Design. Of this amount, approximately $718,000 is remaining to apply to the
current Northern Campus Project.
Value Engineering: Value engineering strategies can be used to change architectural and
aesthetic features without impacting how the facilities function. The project team has identified
$875,000 in value engineering strategies as detailed in Attachment 2.
Project Scope Reductions: Elements of the project may be reduced or eliminated to produce
savings. The staff team has identified $438,000 in potential scope reductions as detailed in
Attachment 3. As part of the scope reduction exercise, the number of Detention Center beds
was examined. The Detention Center capacity could be reduced by forty (40) beds which
would eliminate any capacity to house federal inmates and would immediately fill the available
beds. The elimination of federal inmates would also reduce operating budget revenue by $1.6
million.
Project Deferments: Projects that are currently programmed in the Capital Investment Plan
could be eliminated or deferred to a later date when the County's debt capacity would
accommodate them. The Southern Human Services expansion and a portion of the Cedar
Grove Park Phase 2 expansion could be postponed for a savings of $2.6 million. Components
of the Northern Campus project could also be postponed. Postponing the Environment and
Agricultural Center and the Parks Operations Base would defer $7.75 million in construction
costs. Given the County's current debt profile, debt capacity will begin to increase in FY2023-
24. See Attachment 4.
Using a combination of these strategies, current project costs may be reduced. The following
table outlines different strategy combinations in four (4) different options.
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Northern Campus Project Options
Current Estimated Costs and
Budget Option 1 Option 2 Option 3 Option 4
Estimated Project Costs-January
2019 $ 41,155,486 $ 41,155,486 $ 41,155,486 $ 41,155,486
Appropriated Budget $ (28,095,831) $ (28,095,831) $ (28,095,831) $ (28,095,831)
DIFFERENCE $ (13,059,655) $ (13,059,655) $ (13,059,655) $ (13,059,655)
Cost Reduction Strategies
Repurpose Funds from Prior Jail
Project $ 719,700 $ 719,700 $ 719,700 $ 719,700
Value Engineering Strategies $ 875,000 $ 875,000 $ 875,000 $ 875,000
Project Scope Reductions $ 438,000 $ 438,000 $ 438,000 $ -
Other CIP Deferments $ 2,655,500 $ 2,655,500 $ 2,655,500 $ 2,655,500
Postpone EAC and Parks Ops.
Construction $ 7,751,375 $ 7,751,375 $ - $ -
Reduce Detention Center Capacity
by 40 Beds $ 2,647,020 $ - $ - $ -
TOTAL COST REDUCTION
STRATEGIES $ 14,366,895 $ 11,719,875 $ 3,968,500 $ 3,530,500
DIFFERENCE $ 2,026,940.00 $ (620,080.00) $ (8,371,455.00) $ (8,809,455.00)
Option 1 would fund a smaller Detention Center only. It employs a sufficient number of
reduction strategies to create a positive project balance of approximately $2 million.
Option 2 funds a 144 bed Detention Center but defers construction of the Environment and
Agricultural Center and Parks Operations. This option would require an additional $620,000 in
budget authorization.
Option 3 completes all of the components of the project but eliminates project scope
requested by the stakeholders. This option would require approximately $8.37 million in
additional budget authorization.
Option 4 completes all of the project components and funds the full project scope as
requested by the project stakeholders. Option 4 would require an additional $8.8 million in
authorized funds.
FINANCIAL IMPACT: The options outlined above would have varying levels of budget impact.
Each option is evaluated below in terms of its impact on the County's debt to revenue policy.
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Northern Campus Options and Five Year Debt to General Fund Revenue Policy
Policy Target Status Quo CIP Option 1 Option 2 Option 3 Option 4
FY 2020 15.00% 13.24% 13.24% 13.24% 13.24% 13.24%
FYW1 151W. 14.52% 14.49% 14.53% 14.64% 14.65%
FY 2022 15.00% 17.79% 17.71% 17.81% 18.12% 18.13%
FY 2023 15.00% 16.25% 16.17% 16.27% 16.57% 16.58%
FY 2024 15.00% 15.46% 15.38% 15.48% 15.73% 15.73%
FY 2025 15.00% 13.86% 13.79% 13.89% 14.15% 14.17%
The Board of County Commissioners has established a debt to general fund revenue policy of
fifteen percent (15%). Given the amount of debt that the County has issued and plans to issue
in the approved Capital Investment Plan, that target is exceeded in FY2022, 2023, and 2024.
Adding budget authorization in Options 2, 3, and 4 will have some impact on this metric. Option
4, for example, adds $8.8 million to the project budget and increases the debt to revenue
measure from 17.79% to 18.13% in 2022, an increase of 0.34%.
SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goals are applicable
to this item:
• GOAL: CREATE A SAFE COMMUNITY
The reduction of risks from vehicle/traffic accidents, childhood and senior injuries, gang
activity, substance abuse and domestic violence.
• GOAL: ESTABLISH SUSTAINABLE AND EQUITABLE LAND USE AND
ENVIRONMENTAL POLICIES
The fair treatment and meaningful involvement of people of all races, cultures, incomes
and educational levels with respect to the development and enforcement of
environmental laws, regulations, policies, and decisions. Fair treatment means that no
group of people should bear a disproportionate share of the negative environmental
consequences resulting from industrial, governmental and commercial operations or
policies.
• GOAL: ENABLE FULL CIVIC PARTICIPATION
Ensure that Orange County residents are able to engage government through voting and
volunteering by eliminating disparities in participation and barriers to participation.
Proceeding with the Northern Campus Project will allow the County to improve safety and
security in the Detention Center. The Campus will also employ sustainable environmental
practices and produce renewable energy, and the campus components will engage the public
through educational programming to increase civic participation.
RECOMMENDATION(S): The Manager recommends that the Board approve Northern
Campus Option 1, 2, 3, or 4 and authorize staff to present a budget amendment at an upcoming
meeting to appropriate funds based on the Board-approved Option.
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Attachment A
Northern Campus Schematic Design Cost Estimates
Site Detention EAC Park Ops Totals
Acquisition $ 399,050 $ 399,050
Construction $ 6,136,334 $ 20,912,440 $ 5,149,700 $ 1,260,771 $ 33,459,245
Enhanced Energy Efficiency $ 2,144,124 $ 169,497 $ 118,608 $ 2,432,229
FF&E $ 500,000 $ 75,000 $ 50,000 $ 625,000
Owner Contingency $ 245,453 $ 836,498 $ 205,988 $ 50,431 $ 1,338,370
Professional Fees $ 175,000 $ 2,266,332 $ 671,380 $ 3,112,712
TOTAL CAMPUS COST ESTIMATE $ 6,955,837 $ 26,659,394 $ 6,271,565 $ 1,479,810 $ 41,366,606
Budget Appropriation $ 5,550,050 $ 16,825,780 $ 4,415,000 $ 1,305,001 $ 28,095,831
Difference 1 $ (1,405,787) $ (9,833,614) $ (1,856,565) $ (174,809) $ (13,270,775)
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Attachment B
Value Engineering Strategies
Site Detention EAC Park Ops TOTAL
Delete One of Three Multipurpose Rooms $ (384,800)
Delete Precast Masonry Watertable to Brick $ (50,000)
Delete Pop Up Roof at Entry/Sallyport $ (200,000)
Replace Exterior Metal Wall Panels with Utility Brick $ (95,000)
Contract Supply Video Visitation Equip $ (46,200)
Reduce Parking by 25% $ (50,000)
Delete Pop Up Roof at EAC $ (24,000)
Convert West Hill Connector from Asphalt to Stone 1 $ (25,000)
TOTAL VALUE ENGINEERING STRATEGIES 1 $ (25,000) $ (776,000) $ (74,000)1 1 $ (875,000)
Reduction of 2,600 sq.ft.in Environment and Agriculture Center Included in Base Cost
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Attachment C
Project Scope Reductions
Site Detention EAC Parks Ops TOTAL
Convert Sallyport Walls to Fence Barrier $ (200,000)
Delete Automatic Flush Valves in Public Areas $ (35,000)
Eliminate Hearing Room for Magistrate $ (128,000)
Eliminate Generator for Parks Ops $ (75,000)
TOTAL SCOPE REDUCTIONS 1 0 $ (363,000) $ $ (75,000) $ (438,000)
Detention Bed Space Reduction of 40 Beds
Delete Two Housing Units-Eliminate Capacity for Federal Inmates 1 1 $(2,647,020) $ (2,647,020)
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Attachment D
Other Capital Investment Plan Deferments
Postpone Southern HS Expansion $ (1,555,500)
Postpone Cedar Grove Park Phase 2 $ (1,100,000)
TOTAL OTHER CIP DEFERMENTS $ (2,655,500)
Northern Campus Project Deferments
Site Detention EAC Parks Ops TOTAL
Postpone EAC Construction $ (6,271,565) $ (6,271,565)
Postpone Parks Ops. Construction $ (1,478,810) $ (1,478,810)
TOTAL NORTHERN CAMPUS DEFERMENTS $ (7,750,375)