HomeMy WebLinkAboutAgenda 03-01-22; 7-a - 203 Project Status Update 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: March 1, 2022
Action Agenda
Item No. 7-a
SUBJECT: 203 Project Status Update
DEPARTMENT: Asset Management Services
(AMS)
ATTACHMENT(S): INFORMATION CONTACT:
1) Original Project Budget Steven Arndt, AMS Director, 919-245-
2) Project Bidding, Approval and Financing 2658
Memorandum
3) Tentative GMP (February 22, 2022)
PURPOSE: To receive an update of the 203 Project including the current status of the
Guaranteed Maximum Price (GMP) development and to provide direction on the range of options
to consider as next steps. Final consideration is currently scheduled for the Board's Business
meeting on March 15, 2022.
BACKGROUND: At the March 10, 2020 Orange County Board of Commissioners' Business
meeting, the Board approved a final scope and budget for the construction of the 203 Project,
named for its address at 203 South Greensboro Street, Carrboro, NC. This project is a joint
venture between the Town of Carrboro and Orange County that is intended to construct an Orange
County library branch, as well as permanent facilities for the Skill Development office. The Town
of Carrboro portion of the project includes meeting spaces, a small theater, and offices. The
proposed site of the development at South Greensboro Street is located on an existing Carrboro
municipal parking lot near the center of the town. At that meeting, the Board approved a
construction budget of $11,777,000 for the Orange County portion of the project. The total
approved construction budget, including Carrboro's portion, was $22,282,000 (Attachment 1).
This project is being performed through a Construction Manager at Risk (CMAR) delivery method.
This delivery method entails a commitment by the Construction Manager (CM) to deliver the
project within a Guaranteed Maximum Price (GMP)which is based on the construction documents
and specifications at the time of the GMP plus any reasonably inferred items or tasks. The project
architect selected for the project is Perkins & Will and the Construction Manager is the Barnhill
Contracting Company.
The design process began shortly after the approval of the project with the start of Schematic
Design (SD) development. At the completion of the Schematic Design phase in November 2020,
a construction estimate derived from the design showed that the project was significantly over
budget. A Value Engineering (VE) effort immediately ensued and scope modifications were made
to bring the project costs down. After the completion of Value Engineering, the project was still
2
over budget, and at the March 2, 2021 BOCC Business meeting, the Board approved additional
funding through a combination of capital funding reallocation and a minor scope reduction to close
the budget gap of $1,807,160. Including the CMAR fee of $723,520, Orange County's portion of
the construction budget totaled $14,232,856. The total construction budget, including Carrboro's
portion, grew from $22,282,000 to $25,306,336. The cost overrun was attributed the escalating
costs associated with the parking deck. The Town of Carrboro did not incur a cost overrun at that
point in time. See the Chart #1, below for further detail:
Chart #1
203 Project
Original Construction Budget Town Orange County Total
Construction 10,505,000 11,777,000 $22,282,000.00
CMAR Fee 568,480 723,520 $1,292,000.00
Total Const 11,073,480 12,500,520 $23,574,000.00
BOCC Schematic Budget Adjustment $1,807,160 $1,807,160.00
14,307,680 $25,381,160.00
Scope Adjustment(Part of BOCC Change) -74,824 -$74,824.00
Revised Construction Budget(March 2021) $11,073,480 $14,232,856 $25,306,336.00
The project next proceeded into the Design Development (DD) phase of project design. Upon
completion of Design Development in May 2021, a new construction estimate was prepared and
the project was once again found to be significantly over budget. Another round of Value
Engineering (VE) ensued, additional modifications were made, and the project cost was brought
down within budget.
On February 4, 2022, a memorandum was sent to the BOCC and Carrboro Town Council
(Attachment 2)that provided a project bidding, approval and financing schedule. Per the schedule,
thirty-two bid packages were released for bidding on January 17, 2022 with received bids opened
on February 9, 2022. Unfortunately, several bid packages could not be opened on that date due
to insufficient bidding by members of the construction community.
Re-bidding of those deficient packages began on February 10, 2022 and were opened on
February 17, 2022. The tabulation of all of the bid packages has produced a tentative Guaranteed
Maximum Price of $34,692,067 (Attachment 3). This GMP is $9,385,731 over the March 2021
revised approved construction budget of$25,306,336. Orange County's share of the construction
costs rose from $14,232,856 to $19,202,063, an increase of $4,969,207 over the March 2021
budget adjustment. See Chart #2 below for more details:
Chart #2
Town Orange County Total
Revised Construction Budget(March 2021) $11,073,480.00 $14,232,856.00 $25,306,336.00
Project GMP(tentative) $15,490,004.00 $19,202,063.00 $34,692,067.00
Estimated Additional Funds Needed $4,416,524.00 $4,969,207.00 $9,385,731.00
The escalation of construction costs can be attributed to the unprecedented supply chain
disruptions and labor shortages associated with the ongoing COVID 19 pandemic. While all sub-
3
components of the construction budget experienced some escalation in the range of 3-5%,
several areas stand out for their outsized contribution to the overall escalation:
• Glass and Glazing increased 84% from $800,000 to $1,470,000.
• Drywall and metal studs increased 40% from $999,000 to $1,398,609.
• Electrical costs increased 36% from $2,900,000 to $3,946,000.
Barnhill Contracting Company is now in the process of reviewing and revising these numbers and
is expected to provide a final GMP by March 7, 2022. An agenda item requesting final review of
the project GMP is scheduled for the Board's March 15, 2022 Business meeting.
A total project cost based upon this tentative GMP, including design fees, Furniture, Fixtures and
Equipment (FFE) and contingencies, is shown below:
03/01/22 Total Project Budget(Updated with GMP)
Town Orange County Total
A.Construction
Total Construction&CMAR $15,490,004.00 $19,202,063.00 $34,692,067.00
B.Design
Architectural Fees(Ratio of CBO/OC Sq. Ft. =44.52/55.48) $752,074.13 $937,220.87 $1,689,295.00
Supp.Architectural Fees(Ratio of CBO/OC Sq. Ft. =44.52/55.48) $252,784.56 $315,015.44 $567,800.00
$1,004,858.69 $1,252,236.31 $2,257,095.00
C.HE&Contingency
Furniture,Fixtures and Equipment(FF&E) $1,688,850.00 $802,225.00 $2,491,075.00
Owner's Contingency(5%) @ Ratio of CBO/OC 44.52/55.48 $772,245.00 $962,358.00 $1,734,603.00
Subtotal FFE&Contingency $2,461,095.00 $1,764,583.00 $4,225,678.00
TOTAL Project Budget $18,955,957.69 $22,218,882.31 $41,174,840.00
FINANCIAL IMPACT: Orange County's share of the project construction budget overrun is
approximately $4,968,033. Project Owner's Contingency, based upon a 5% of the GMP, rose
from $530,050 to $962,358, an additional $432,300. Total construction financial impact is
$5,400,333. Additional operating costs for the new Library are currently estimated to be $537,670
in the first full year of operation. Final consideration of next steps is scheduled for the Board's
March 15, 2022 Business meeting.
SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goals are applicable
to this item:
• GOAL: FOSTER A COMMUNITY CULTURE THAT REJECTS OPPRESSION AND
INEQUITY
The fair treatment and meaningful involvement of all people regardless of race or color;
religious or philosophical beliefs; sex, gender or sexual orientation; national origin or ethnic
background; age; military service; disability; and familial, residential or economic status.
• GOAL: ENSURE ECONOMIC SELF-SUFFICIENCY
4
The creation and preservation of infrastructure, policies, programs and funding necessary
for residents to provide shelter, food, clothing and medical care for themselves and their
dependents.
• 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 203 Project will allow the County to provide amenities for the surrounding
Carrboro community.
ENVIRONMENTAL IMPACT: The following Orange County Environmental Responsibility Goal
impacts are applicable to this item:
• ENERGY EFFICIENCY AND WASTE REDUCTION
Initiate policies and programs that: 1) conserve energy; 2) reduce resource consumption;
3) increase the use of recycled and renewable resources; and 4) minimize waste stream
impacts on the environment.
• CLEAN OR AVOIDED TRANSPORTATION
Implement programs that monitor and improve local and regional air quality by: 1)
promoting public transportation options; 2) decreasing dependence on single-occupancy
vehicles, and 3) otherwise minimizing the need for travel.
• RESULTANT IMPACT ON NATURAL RESOURCES AND AIR QUALITY
Assess and where possible mitigate adverse impacts created to the natural resources of
the site and adjoining area. Minimize production of greenhouse gases.
The design of the 203 Project embraces many energy efficiency technologies and green
construction methodologies. The building site is located on a public transportation route and
includes a bus stop.
RECOMMENDATION(S): The Manager recommends that the Board review and discuss the
information on the 203 Project and provide direction to staff on the final range of options to
consider at the Board's March 15, 2022 Business meeting.
5
Attachment #1: Original Project Budget
Option 1 - Budget Allocation with Skills Development
Square Cost Per Carrboro Orange County
Function Feet unit Cost Cost Total Cost
A.Construction Costs
Recreation and Parks Program and Office Space 15,000 $ 315 $ 4,725,000 $ - $ 4,725,000
WCOM Radio*during SD to be reduced to 500 sgft with
grossing factor 850 $ 370 $ 314,500 $ $ 314,500
Seed Library 200 $ 315 $ 63,000 $ 63,000
Virtual Justice Center 500 $ 315 $ 157,500 $ - $ 157,500
Teen Space 1,200 $ 315 $ 378,000 $ - $ 378,000
Black Box 4,200 $ 500 $ 2,100,000 $ - $ 2,100,000
Library 15,000 $ 315 $ - $ 4,725,000 $ 4,725,000
Skills Center 12,600 $ 315 $ - $ 3,969,000 $ 3,969,000
Common Area Site and Civil Work(Ratio of CBO/OC Sq. Ft.
44156) - - $ 792,000 $ 1,008,000 $ 1,800,000
Parking(Ratio Cl30/OC Spaces=79/83) - $ 25,000 $ 1,975,000 $ 2,075,000 $ 4,050,000
Subtotal-Construction 49,550 - 10,505,000 11,777,000 22,282,000
B.[Design&(MAR Fees
Architectural Fees (Ratio of CBO/OC Sq.Ft.®44/56) $ 743,290 $ 946,005 $ 1,689,295
Supp.Architectural Fees(Ratio of CBO/OC Sq. Ft.=44/56) $ 249,832 $ 317,968 $ 567,800
CMAR Fees(Ratio of CBCT/OC Sq. Ft. =44/56) $ 568,480 5 723,520 $ 1,292,000
Subtotal-Design&CMAR Fees 5 1,561,607 $ 1,987,493 3,549,095
C. HE&Contingency
Furniture, Fixtures and Equipment(FF&E) $ 1,250,000
Owner's Contingency(5%) @ Ratio of CBO/OC 44/56 $ 525,250 $ 588,850 $ 1,114,100
D.Total Construction and Service Fees 49,550 12,591,852 15,603,343 $ 28,195,195
Carrboro Square Footage 21,950 44%
Orange County Square Footage 27,600 56%
Total Square Footage 49,550 100%
6
Attachment #2: 203 Project Bidding, Approval and Financing
Memorandum
C)R AKIrX rni INITY
v� v •1 .vim vv v. 111 1
NORTH CAROLINA
MEMORANDUM
TO: Orange County Board of County Commissioners
Town of Carrboro Town Council
FROM: Bonnie Hammersley,County Manager
Richard J.White 111,Town Manager
DATE: February 4,2.022
SUR ECT: The 203 irProject Construciion Bidding and Approval Scneduie
On December 22,2021,County and T own stars met to discuss the progress of the 2u"3 Project ana to
develop a construction bidding and approval schedule.The purpose of this memorandum is to share that
schedule with you.
Meeting agenda items will be scheduled such that Orange County Board of County Commissioners
(BOCC)and Carrboro Town Council approvals occur on the same night.
i fie 203 Project Bidding Scireduie and Approvai muestones(governing board meetings in Bola)[onow:
��
L january i r•— ilia Advertisemem by csamniii
2. February 4"—Public Bid Opening(Town Nall)
3. February 16"—Re-bid specific scopes if needed
4. February 16"through March 4"—Detailed scope&bid review by Barnhill
5. March I'—Update provided to governing boards with status of Guaranteed Maximum Price
(GMP)—Barnhill available to attend both meetings
6. March 7"—Final GMP provided to town staff by Barnhil l
7. March 15t'—Final GMP presented and voted on by governing boards,Town Council authorizes
contract with Barnhill,BOCC&Town Council authorize Development Agreement amendment
8. April 2"d—Application submitted to Local Government Commission(LGC)
9. May 3'd—LGC approval
10. nr<`ray s•-—T own Council approves financing
The Town will issue a Request for Proposals (RFP) for the implementation of solar photovoltaic (PV)
systems in conjunction with the 203 Project construction bid documents so that the Town can fully
understand the cost implications of such development through a variety of potential financing options,e.g.,
full ownership, leasing, and/or debt financing. The Town has received an Orange County Community
Climate Action Grant in the amount of$40.568 that will help fund a portion of the solar photovoltaic panels
and the green roof.
Town staff is planning for communications regarding construction and parking impacts on the downtown.
A formal groundbreaking will be coordinated with Orange County and the Town.
Please let us know if we can provide additional information.
cc: Travis Myren,Grange County Assistant County Manager
Gary Donaldson,Orange County Finance Director
Steve Arndt,Crane County Asset Management Services Director
Arche McAdoo,Carrboro Finance Director
Trish McGuire,Carrboro Planning Director
Ben Schinadeke,Carrboro Capital Projects Manager
8
Attachment #3
Tentative GMP (2/22/22)
BARNHILL
CONTRACTING GUARANTEEDMAXIMUM PRICE-DRAFT
COMPANY February 22,2022
The 203 Project
Carrboro,NC
Building Area= 199,338 SQF F
Amount Total CostISF
Cost of the Work
Subcontract Base Bid 1 $28,796,592 $0.00
Subtotal Cost of Work 1 $28,796,5921 $29,796,5921 $263.37
Contingencies
Construction Contingency $1,505,1781 1 $13.77
Subtotal Contingencies 1 $1,505,1781 $30,301,7701 $277.14
General Conditions
Labor 1 $0 $0.00
Subtotal General Conditions 1 $1,900,5771 $32,202,3471 $294.52
Bonds&Insurances
CMAR Insurances&Bonds $726,297 $6.64
Subcontractor Default Insurance $359,957 $3.29
Subtotal Bonds&Insurances $1,096,254 $33,288,602 $304.46
Fees&Allowances
Construcbcn Management Fees 1 $1,296 959 $11.86
Subtotal Fees&Allowances 1 $1,2136,9591 $34,585,5601 $316.31
Cost of the Work with Accepted Alternates
Accepted Alternates:
E-1:EV-Ready Parking Spaces(Shared) $25,724 $0.23
L-11:Soil Cells(Town of Carrboro) $41,600 $0.38
CST-1:Theatrical Drapes(Town of Carrhoro) $39,683 $0.36
Subtotal Cast of Work with Accepted Alternates $106,507 $34,692,0671 $317.29
GMF Total with Alternates $34,692,067 $317.29