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HomeMy WebLinkAboutResolutions - 1973.12.06 - 15389December 6, 1973 Moved by Wilcox supported by Richardson that Resolution #6482 _on Oakland County Hospital Renovation be taken from the table, A sufficient majority having voted therefor, the motion carried. Miscellaneous Resolution 6482 November 29, 1973 BY: BUILDINGS. AND GROUNDS COMMITTEE - Richard R. Wilcox, Chairman REPORT IN RE: OAKLAND COUNTY HOSPITAL RENOVATION TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Mr. Chairman, Ladies and Gentlemen: WHEREAS on March 1, 1973 by Miscellaneous Resolution #6238, as amended, the Oakland County Board of Commissioners voted to renovate the Oakland County Hospital; and WHEREAS on March 15, 1973 by Miscellaneous Resolution #6257 funds in the amount of $1,500,000.00 were earmarked for financing renovation of the County Hospital, pursuant to Miscellaneous Resolution #6238 and further, on March 15, 1973 by Miscellaneous Resolution #6251 authorized architects to provide schematic plans and preliminary drawings and specifications for the proposed renovation to the County Hospital and $25,000.00 was appropriated for such purpose; and WHEREAS on March 29, 1973 the Buildings and Grounds Committee approved said plans and said plans were sd,secluently approved by the State Health Department; and • WHEREAS on November 5, 1973 the Facilities and Operations Division of the Board of Auditors and the architectural firm of Tarapata, McMahon, Paulsen furnished the Buildings and Grounds Committee with a total project cost estimate of $2,991,000.00 for the proposed hospital renovation; NOW THEREFORE BE IT RESOLVED that the Buildings and Grounds Committee hereby presents the matter of the County Hospital renovation to the Oakland County Board of Commissioners without recommendation for disposition by this Board. The Buildings and Grounds Committee, by Richard R. Wilcox, Chairman, moves the acceptance of the foregoing report. BUILDINGS AND GROUNDS COMMITTEE Richard R. Wilcox, Chairman #6482 December 6, 1973 Moved by Wilcox supported by Hobart tho'resolution be referred back to the Health Committee and the Buildings and Grounds Committee, A sufficient majority having voted therefor, the motion carried. #6482 Mo ,,ed by Wilcox supported by Hobart the report be accepted and action on the report be laid on the table until the December 6, 1973 meeting. Discussion followed. AYES Houghten, Kasper, Moffitt, Montonte, Nowak, Patnales,Rich Vogt, Wilcox, Brotherton, Button, Coy, Dearborn, Dunieavy, Gabler, Hobart, Hoot. (17) NAYS: Lennon, Mathews, Olson, Perinoff, Remick, Walker, Berman, Burley, Douglas. (9) A sufficient majority having voted therefor, the motion carried. as on , STATE OF MICHIGAN) - COUNTY OF OAKLAND) • I, Lynn D. Allen, Clerk of the County of Oakland and having a seal, do hereby certify that I have compared the annexed copy of 4064000446444 ****444490 WO*40 e 44 4*9044 ****404404:00e404444349400d4O0640440**.** . 4 ,0 0064.4444mgoe*9•044410060444 40040041,08 n 440044erosSft000000008600-19.1111090•9000.41- with the original record thereof now remaining in my office, and that it is a true and correct transcript therefrom, and of the whole thereof. In Testimony Whereof, I have hereunto set my hand and• affixed the seal of said County at Pontiac, Michigan thi S4 44 ********43*********day o fe044 44 444 Lynn D. BY,col000ssoce.apaotros.movooved au g o . .Deputy Clerk Architect's Fees Administrative Construction Supervision Start-Up Expenses S190,000 - 1,000 22,000 - 20,000 OAKLAND COUNTY BOARD OF AUDITORS DEPARTMENT OF FACILITIES AND OPERATIONS FACILITIES ENGINEERING DIVISION HOSPITAL RENOVATIONS PROJECT COST ESTIMATE Project 71-28 November 5, 1973 - Based on construction cost estimates furnished on November .2 by telephone, the following information Ts listed toindicate the total estimated project cost for the Oakland ',County Hospital Renovations: COST ESTIMATE Construction (Base)--- Replacement of Windows in 1926 Building-- $2,401,000 120,000 , Exterior Renovations 16,000 Total Minimal ConStruction: $2,53.7,000* Furniture & Equipment .Carpeting $ 6,000 Draperies 20,000 Kitchen Equipment 35,000 Other (Allowance) 60,000 $T21,000 Contingency (45) TOTAL PROJECT COST: 354,000 1 0 0 ,0(10 $2,991,000 *The construction cost includes $180,000 of contractor's overhead cost caused by the phasing operation. The phasing operation also extends the construction time from 18 months to .about 27 months. OAKLAND COUNTY HOSPITAL Remodeling Program File 7316 40,000 140,000 120,000 16,000 • 45,000 50,000 -0- PRELIMINARY COST ESTIMATE - November 5, 1973 1, Base Price* 2. Add Alternates • Air-conditioning 1. To provide for future installation 2. To include at this time • Sash Replacement - 1926 Building Masonry repair - both buildings • Masonry veneer - 1954 building Upgrade Nurses call sys • Roof repair te $2,401,000 - * Including $180,000 premium for 9 mpnths additional time involved in 3-stage phasing. NOTE: This estimate is based upon current market conditions escalated to May 1974. COST INCREASE FACTORS Cost estimate increases for this project as reflected in the October 15, - 1973, presentation for this project are due primarily to the factors listed below. Revised estimates attached; presented on November 5, continue to reflect these factors; however, further refined drawings, additional estimating time and some adjustmentS in the quality of the design have resulted in savings. PHASING A "Schemes B and D" presented in December, 1972, did not require phasing of construction since each involved a new addition to be constructed first, into which patients could be shifted from the existing,1926 and 1954 buildings , leaving those two structures available for remodeling at one time. The present scheme, limiting construction to remodeling of the 1926 and 1954 buildings could be handled in this same way if these buildings could be vacated. The ultimate decision that a minimum of 80-100 beds must remain in service requires phasing construction into three stages, adding considerable time and cost to the process. QUALITY A Development of the mechanicali and electrical engineering design during preparation of the schematic drawings did produce some upgrading of quality but only because of an honest concern for the patients' comfort and to hold maintenance and operational costs to a minimum. For example, hot water, fan coil units mounted above the ceiling in lieu of self-contained, free-standing electric heating and cooling units would be less space consuming, less noisy and cost less to operate but would cost more initially. Similarly, nurses' call sys- tems as provided in most modern hospitals today are relatively sophisticated, providing total audio supervision; however, they are almost a third more costly than the basic "old fashioned" push but- ton luminous signal. In this new estimate, mechanical and electrical systems have been revised to hold design and equipment selection to only the essen- tials but provide adequately for reasonable comfort and operational cost. III MARKET CONDITIONS A The information provided to the County in December, 1972, for this project was well done and the Utley-jamas organization was willing to take the project at its estimate at that time or to extend its prie It is the frank opinion of ljtley-jarnes at this time that had it done:' so, it would be in financial trouble on the job today. We believe this to be a realistic evaluation of factors to be con- sidered in evaluating the attached estimate and also feel it is im- portant to note the following: 1, Phasing was considered at many stages along the way in development of this project. 2, The report of May 9, 1973, emphasized that phasing would have to be studied and drawings further developed to arrive at a more definitive cost estimate. 3. Letter of May 31 confirmed previous estimates for Schemes B and ID, neither of which required phasing. 4. Project Memorandum of August 17, 1973, indicated that a final decision had been received at that meeting, reversing earlier ind4ca.tions that the buildings could be vacated and that phasing would be required also, that construction costs could well be in the $2 million range because of this. Rapidly rising costs in the construction industry, particularly in the past two months are due only in part to the general inflation of the economy. A major factor in these spiraling costs is due to the un- availability of materials. The industry is, to use an expression, "running scared" and subcontractors are refusing to commit on prices due to this very recent development. Sixty per cent of U. S. steel is going abroad, cement and brick are in very short supply as are insulation, roofing and many other basic materials, Four to six month delivery dates for shipment of steel joists and mechanical and electrical equipment are becoming common. Subcontractors are 'protecting" their quotations with additional mark- ups to cover the unknowns of late completion dates as those of you involved in the construction industry are aw ,,,,re. Escalation factors based upon realistic projections early this year have been outstripped by market demands. Manpower also, as viewed within the last month, begins to become a previously unimportant source of cost increase concern when vie wed within the context of such huge, newly announced building programs as Edison's $12 billion expansion schedule to be carried out over the next two to three years. C2 CC-SCRIPT (D1.1 f Cost Smmary Architectural Mechanical Electrical LINiT QUAN-- TITY ,Total Alternatives %. Air CondIET6rang 1, Future 2. Now B. Brick 1954 Wall ! C. Sash Replacement (1926) D. Tuck Point & Repair (192 E. NurseCall_peluxe) F. Phasing 9 Months @ $20,000/Mos. I 72,00011 SIP 4,1004,000 11 1 l3,95 72,000 1 SF ! -1 72,000ISF 11 —t-- 'I coq•T L. 11 • 1CySTI/SQ.,T. I ! 727,00 401 ; co I! II -4-- AT)1.- 1D ADD t 14q,00g , • L . ..... .1. _ADD... -1,-- -4 4 ! 50,000 !: r- -1-- !! 1- 1 1 DEDUCT' 118Q , 00 II I r II I - ! !I - • -1 — - !.! 1 , 1 I 11 1 . ... _ . .. . 0 2 SI,L.'.z.l. :J..). ITEM ESTIMATE ESTIMATOR: W . Street Utley-James 8 Inc. BID CATE: November 5, 1973 -r- J 0 B Oakland County Hospital_ LOCATION: Pontiac PT_RMA',11kMT MAT1JAL. C ": • ,• • • • 1 UT A k. . 1.1,P .1[ TOT AL U.P. II r. f -I' P TOAL 1 U.P. T 07 A Project 71-28 November 5, 1973 120,000 16,000 Architects Fees Administrative Construction Supervision Start-Up Expenses $190,000 1,000 22,000 20,000 OAKLAND COUNTY BOARD OF AUDITORS DEPARTMENT OF FACILITIES AND OPERATIONS FACILITIES ENGINEERING DIVISION HOSPITAL RENOVATIONS PROJECT COST ESTIMATE Based on construction cost estimates furnished on November 2 by telephone, the following information is listed to indicate the total estimated project cost for the Oakland County Hospital Renovations: COST ESTIMATE Construction (Base)--- Replacement of Windows in 1926 Building Exterior Renovations $2,4 01,00 0 Total Minimal Construction: $2,537,000* Furniture & Equipment Carpeting $, 6,000 Draperies 20,000 Kitchen Equipment 35,000 Other (Allowance) 60,000 $121,000 $ .354,000 Contingency (4%) 100,nn0 TOTAL PROJECT COST: $2,991,00(1 *The construction cost includes $180,000 of contractor's overhead cost caused by the phasing operation. The phasing operation also extends the construction time from 18 months to about 27 months.