MEMO. DATE: June 17, Cumberland CID Board of Directors. Executive Director. Akers Mill Strategy and Cost Estimates (Project A 12)

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3 MEMO DATE: June 17, 2015 TO: FROM: RE: Cumberland CID Board of Directors Executive Director Akers Mill Strategy and Cost Estimates (Project A 12) At the CID s March Board meeting, the Board expressed a strong desire to highly prioritize and advance the Akers Mill Improvements (project A 12). GDOT and SRTA had recently indicated preliminary state approval of the project and assuming the CID s desire to pursue it recommended the project s inclusion in the state s project which is currently under construction. Initial cost estimates were reported to be in the $8m range for construction and about $1m+ for design. Confirming its desire to pursue the project, the Board took advantage of an opportunity to apply for federal construction funds and committed $1.6m in local money to leverage up to $6.4m in federal funds to cover the anticipated $8m construction cost. Since that time, the strategy to deliver the project has evolved given the very tight schedule. Cost estimates have evolved, too. The purpose of this memo is to outline this information as you will need to give it serious consideration for our Board meeting next week. In order to deliver this project under the state s timeframe, the CID must adhere to the Northwest Express Roadbuilders (NWER) construction schedule. The project must be designed and constructed by NWER in only 35 months while the team is on site. The CID has just 23 months from now (until May of 2017) to complete preliminary and final designs, have approved environmental documents, prepare an Interchange Modification Report, and have all construction funds assembled. This is a tight timeframe and does not leave room to miss a step, but it is doable. Attached is an internal memo that outlines the schedule benchmarks as well as the estimated costs. The information was provided over the past few weeks by the NWER team (Archer Western, Parsons, and PB) in consultation with GDOT. To summarize, the CID would need to immediately initiate the environmental work this month as well as the preliminary engineering. Those documents would be completed at the end of 2016 at which time final engineering would begin and subsequently finish in May At that point, all of the aforementioned documents are completed and the funds assembled. Construction would commence at that point with the project opening in May NWER and the firms involved have provided quotes for their work. The total design fees are just over $3.1m. Along with design, the construction estimate and NWER s oversight fees are $19.5m at this point. These estimates together total $22.7m for the project. Clearly this is much higher than the initial estimates. Based on

4 input from Jacobs and others, we believe there is room to bring this construction figure down. However these are the estimates we have at this time. To initiate the project, the CID would need to assume the total design fees of $3.1. This figure can be committed to either in its entirety at this month s meeting, or in two commitments: $1,072,000 this month for the initial work, and $2,091,210 in November 2016 for the final design. If pursued, it would bring the CID s commitment up to $4.7m ($1.6m for the construction match and $3.1m for design). This is 21% of the project s current total cost. At this point, we have no firm commitments from others to help pay for construction. As previously noted, there is a $6.4m federal request pending which we should hear about at the end of the year. We would also pursue funding partnerships at the County, state, and federal levels as we always do. Additionally, we have not incorporated these costs into the cash flow model at this point. We will have this information at the Board meeting. Although it s exciting to fast track an important improvement that would make a big difference in our community, the recent cost estimates are sobering and deserve your thoughtful consideration. Please feel free to call me with any questions or comments that you have. I will also do the same to reach out to you over the next week.

5 MEMO DATE: June 15, 2015 TO: FROM: RE: Executive Director Director of Operations Akers Mill Road Improvements (A12) Design Schedule and Cost Last year, Parsons Brinckerhoff (PB) completed a preliminary concept of this project at the request of the CID; this concept formally presented the engineering basis and project feasibility to GDOT and SRTA for review. Subsequently, GDOT and SRTA agreed the Akers Mill project could move forward, recommending inclusion within the current project. The Northwest Express Roadbuilders (NWER) is the design/build team constructing the project under the supervision of GDOT. NWER prepared a detailed estimate to design and construct the Akers Mill Road Improvements based on the PB concept. Moving forward, PB will complete the environmental plans as Parsons with the NWER team develops the concept and costing plans as the basis for preliminary and final design. Upon completion of design, NWER will construct the project. As the entire project must be completed by May 2018, a partnership with GDOT, SRTA, and NWER to deliver the Akers Mill project ensures a rapid delivery. With the environmental and costing plans complete by December 2016, Parsons will then finalize the design, enabling construction to begin in May Milestone Date Parsons & PB Begin Environmental & Preliminary Design June 2015 Parsons Begins Final Design December 2016 Parsons Completes Final Design May 2017 NWER Begins Construction May 2017 Project Complete May 2018 Cost estimates provided by GDOT, SRTA, NWER, Parsons, and PB: Task Vendor Cost % of Funding Due Total 1 Owner s Rep Jacobs $167, % June 2015 Environmental Design PB $400, % June 2015 Preliminary Design Parsons $505, % June Final Design Parsons $2,091, % December 2016 Design Total $3,163,210 14% Construction NWER $10,724,153 47% December 2016 Overhead/Fees/Bond NWER $3,233,956 14% December 2016 Equipment/Software SRTA $261, % December 2016 Oversight/Owner Verification GDOT $1,753, % December 2016 Contingency GDOT $3,612,891 16% December Construction Total $19,586,135 86% December 2016 Project Grand Total $22,749, % 1: The Owner s Rep will value engineer the project, pursuing expense reductions and efficiencies to lower overall cost 2: Funds due to GDOT in December 2016