Firehouse Costs

Something seems to be seriously out of whack with the City's building contract system. The current "new" city hall costs $355 per SF, the Westside service center, which is a metal building with some office space, cost more than $300 per SF and now the new fire stations cost $494 per SF and $560 per SF.

By way of contrast, Liberty Hill is just completing a new fire station on Ronald Reagan similar in size to Georgetown's two new fire stations at a cost of $429 per SF.

What is going on down at Georgetown's building department? Why are they not getting less expensive bids? Have they required too many "bells & whistles", or more expensive materials?

Inquiring minds would like to know!

Also note that the two Georgetown fire stations are being funded with Certificates of Obligation, which do not require voter approval and supposedly are to fund things with a relatively short life, <10 years. Liberty Hill issued 20 year bonds to build their fire station.

Is the city abusing the use of Certificates of Obligation?

Money to Complete Downtown West

We said in the Georgetown Watch Post of November 19, 2018 that the City would have to find additional funds to complete the new Downtown West City Hall complex since the sale of existing city owned buildings did not provide sufficient funds.

The end of year budget amendment passed at the November 27, 2018 City Council meeting transferred $1,108,200 from the Council Fund, also known as the Council slush fund, to the General Capital Project fund.

Occupancy date for the City Center complex is yet to be announced.

Show Me the Money Follow Up

Well, that didn't take long! This is on the Council Workshop agenda for tomorrow.

Council Fund
• The proposed amendment is to transfer funds from the Council fund to the General Capital Projects Fund to partially fund the City Center project (new City Hall and Council Chambers/ Muni Court). This action is in lieu of selling the Visitors Center building.

General Capital Projects
• The proposed amendment is to transfer funds from the Council fund to the General Capital Project to partial fund the City Center project (new City Hall and Council Chambers/ Muni Court). There is no adjustment to the expenses. Staff is recommending to reduce the budgeted revenue from the sale of the buildings by $1,108,200 and increase the transfer in from the Council fund by the same amount.

So, the additional funding to complete the City Hall is coming from the City Council Fund, aka the Council Slush Fund! Good use of those excess $s.

Show Me the Money!

The City recently authorized closing two deals to sell city property and apply the proceeds to the costs of the new city hall known as Downtown West. The old post office on East Eighth Street sold for $1.5M and the existing council chambers and municipal court building sold for $1.155M for a total of $2.655M.

Prior budget documents have indicated that $6,249,018 in cash would be available to apply to the construction of Downtown West.

Bonds had been sold when the City purchased the old Albertson food store to convert it into a city hall.  When plans changed and the old Albertson store was sold for $3.5M, the proceeds were banked and the original bonds continued to be paid down.

Lets examine the cash elements earmarked for Downtown West.

Albertson proceeds       $3,500,000
Subtract architect fees ($1,014,182)
Old Post Office sale      $1,963,200
Council Chambers        $1,200,000
Visitor Center                $   600,000
Total                              $6,249,018

Observe that both property sales did not meet expectations and the City has decided not to sell the Visitor Center at this time.

The net cash available to contribute toward construction of Downtown West is $5,140,818. And occupancy of Downtown West is projected for early in 2019.

So where is the shortfall of $1,108,200 going to come from?  More bond sales, higher than budgeted revenue, or rearranging other budget items?  Stay tuned!

New Purl Elementary School to Cost $262/sq ft

Perhaps the City needs to contract with Georgetown ISD for the construction of the new city hall. Georgetown ISD is demolishing and removing asbestos from the old school and building a brand new 116,000 square foot elementary school for $30.4M. For those who care to do the math, that is $262/sq ft.

Compare that with the $13.0M for the city hall at $355/sq ft for 36,600 sq ft. For anyone who believes the $13.0M final cost, there is a bridge in Brooklyn for sale at a very reasonable cost!

In fact it is even worse than that. To demolish the old library and communications buildings, the City estimated the cost to be $20.936M which is $572/sq ft. Something is seriously wrong with the city's cost estimates.

A call is repeated to 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.

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

.

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!