City Council Spending on New City Hall OUT-OF-CONTROL!

After the City staff presentation July 26 on the new city hall project to the City Council, known as Downtown West, at which it was disclosed that the estimated cost had ballooned from $6.5M to $13.0M, the council evidently directed the staff to do the following:

• Renovation Plan that is Worthy of our City and Exemplifies our Values

• Cursory Review of Demolition and Reconstruction

• Funding Strategy • $13,000,000

Thus, the Council blindly accepted a doubling in cost for the project!

On August 23, the City Staff reported back to the Council.  Renovating and adding to the existing buildings, the old library and communications building, would cost $13.0M  That includes $10.5M of construction costs at $285/sq ft and $2.5M for contingencies and outfitting the buildings.

Demolition of the old buildings and replacement with new construction was estimated to cost $20.936M.  This estimate was based on $25/sq ft demolition costs and $300/sq ft new construction costs.  Needless to say, this was a non-starter with the Council.

Under the $13.0M plan, 36,600 sq ft of space will be realized at a total cost of $13,000,000/36,600 = $355/sq ft.  For comparison purposes, the city spent $29.3M for the Public Safety Building, 76,000 sq ft at a cost of $385/sq ft.  The new Westside Service Center, due to open shortly, cost $377/sq ft for 11,000 sq ft.

The last three schools that Georgetown ISD constructed has cost an average of $145/sq ft for construction costs according to the Texas Comptrollers website.  Clearly, Georgetown’s building costs are out of line with school building costs in Georgetown and around the state.

So it seems the Council and City Management have their heads “Up and Locked” as they directed the staff to proceed with the $13.0M plan.  It is full steam ahead without regard to the costs!  Keep in mind that these costs are purely estimates and experienced project managers will tell you to expect cost growth of up to 100% by completion.  Cost estimates have already doubled from $6.5M to $13.0M.  Just go back and review the initial estimates versus the final cost for the last two city building projects for guidance.

Rational taxpayers would ask the following questions and demand rational and reasonable answers before proceeding.

1.    Why Now?  What is the urgency?

2.    Why not sell the old library and communications buildings and use the proceeds to build new in a different location if it would save multi-millions of dollars?

3.    Establish a series of project off-ramps if cost targets are not being met

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4.    Establish in priority order the items to be eliminated as costs exceed planned expenditures.  For example, complete the old library renovation and construction before starting on the communications building.

5.    Why not establish a citizen review board of knowledgeable development/construction Georgetown taxpayers to review proposed plan before Council commits to proceed and monitor construction as it progresses?

It is time for the citizens of Georgetown to get involved with their Council and City Management to let them know keeping City spending in check is a priority!