Friday, April 19, 2024
After receiving a guaranteed maximum price that was $476,098 higher than anticipated for the expansion of the Coryell County Jail , the Coryell County Commissioners Court will have a special meeting at 9 a.m. Monday, April 17 to discuss possible solutions.
The commissioners court had budgeted for both the jail expansion and also the construction of the Leon Street Annex nearby. During a presentation, Elan Shney with Butler-Cohen general contractors noted the price will be "roughly $4.5 million."
Miller initially thought the cost was $642,000 more than the projected cost was in January.
"That's kind of the big number, that's an eye-opening number," he said.
Commissioner Scott Weddle, who worked closely with Heffelfinger and Butler-Cohen before the presentation to the commissioners court, said when he found out about the unexpected increases, "I expressed my disappointment that we were that far off. I went on about a 10-minute rant."
He said when looking closely at the numbers, the amount over budget is actually $476,098 more than the county had budgeted for the jail expansion project.
"So we're $476,000 over — where do we cut $476,000," Miller asked. "I don't say it flippantly."
"That's a question, not a solution," Weddle said.
"I don't know the solution," Miller responded.
"I have some thoughts," Weddle said. "In the real world we deal with these things all the time. That is our maximum risk. All I'm doing is giving y'all my assessment and opinion. That number includes contingencies. I'm hoping the second project (the Leon Street Annex) can come in at or under the estimate. I have a feeling there will be some money coming back."
"Money not being spent," said Commissioner Kyle Matthews.
Because of the specialized nature and exact requirements to meet standards connected with a jail, finding areas to cut on that project "is a tough row to hoe," Weddle said. He added that the commissioners court will have to "figure out in the budget to make sure we have it covered. Worst-case scenario, we pay it. Best case, we don't spend it all and can give back to taxpayers or to budget for other construction."
Weddle said he only saw two possibilities.
"One is we cut our losses right now and run (opting not to expand the jail)," which he said is not a valid choice. "Two, we move forward and figure out how to cover the $476,098."
Miller said one difficulty was getting the news on short notice.
"I'm challenged with — in one hour’s notice seeing these numbers and being able to say I'm comfortable being $476,098 more than I was expecting," he said. "I'm not saying I'm opposed to it. Mr. (Eric) Cohen I appreciate all y'all have done. This is an eye-opening experience for me and I have the utmost respect for what y'all have done.
"I will propose to the court that we regroup" to explore options. "I do think there are some options.
Commissioner Kyle Matthews proposed one potential solution.
"I believe we go to a local bank if we need to make this up and work some terms out," he said. "All the meetings I've had with y'all (Butler-Cohen and architect Jeff Heffelfinger) everything's been 100% fabulous."
Several bids have been received from subcontractors for work, and Shney provided detailed information about potential costs, including about $69,000 to relocate the heating, ventilation and air conditioning at the jail and an additional $166,000 to replace and modernize the fire alarm system on site.
There will also be a $100,000 allowance to make any necessary adjustments and $5,000 for a consultant to ensure the building's watertight seal.
"Unlike with a new building, we came to the conclusion it is in the county's best interest to have a third party look at it," said Jeff Heffelfinger, president of Southwest Architects.
Matthews voiced agreement, saying the fee was "cheap insurance" to make sure the work is done correctly.
Shney said the cost estimates provided are valid "until April 22." He added that the duration of construction is expected to be 39 weeks.
The cost of preconstruction work will also include a scan with ground-penetrating radar.
"They just did this in Kendall County and it showed us some (underground) utilities that were not recorded," Shney said. "It saved us a huge amount in time and expense (finding those utilities before construction began)."
Heffelfinger said that with the county committed to jail expansion and construction of the Leon Street Annex in the same timeframe, "there will be cost sharings. We will work to make sure that masonry debris is taken to be used by road and bridge. Any time we don't spend money, it benefits the county."
A 6% construction contingency is included, which means default insurance will help protect the county from unexpected delays.
"In simple terms, instead of the client paying 2% to 3% to bond, we're carrying the bond, essentially," Shney said.
Heffelfinger pointed to a nearby example of unexpected complications impacting major construction.
"I think you're familiar with what happened in Lampasas County," he said. "A contractor defaulted and it caused over a year delay. This allows us to keep the project going and avoid delays, working with the bond insurers, court hearings, et cetera. At the end of the day, it saves y'all money and we get a better project. It's an awesome 1.5% savings, and it also opens up the subcontractor list."
Shney went over a detailed list of those who responded to the county's bid request for the project.
"In some cases, we felt based on the experience of vendors that the low bid was not always the best bid," said Eric Cohen, one of the owners of Butler-Cohen.
County Judge Roger Miller asked how many local contractors responded, those located "within a 50- or 60-mile radius?"
"We had roughly 10 to 15 local contractors (respond)," Shney said.
Miller asked if any of those were selected as the best bid, and Shney said several were.
