064-05
BOARD OF SUPERVISORS
RESOLUTION
FISCAL YEAR 2004-2005 BUDGET AMENDMENT
WHEREAS, the Frederick County Board of Supervisors, meeting in regular session and
public hearing held on May 25, 2005, took the following action:
NOW, THEREFORE, BE IT RESOLVED, by the Board of Supervisors that the FY 2004-
2005 Budget be Amended to Reflect:
School Construction Fund Supplemental Appropriation in the Amount of$3,767,000. This
Amount Represents Funds Needed Above Original Project Estimates for the Eleventh
Elementary School Project.
ADOPTED, this 25th day of May, 2005.
Upon motion
Bill M. Ewing
made by Gary W. Dove
, the above was denied
and seconded by
by the following recorded vote:
Richard C. Shickle
~
Bill M. Ewing
~
Gary W. Dove
Aye
Gene E. Fisher
Aye
Barbara E. Van Osten
Nay
Gina A. Forrester
Nay
Lynda 1. Tyler
Nay
A COPY TESTE:
John. ey,Jr.
I
Clerk, oard of Supervisors
County of Frederick, Virginia
Resolution No.: 064-05
Original: Cheryl B. Shiffler, Finance Director
cc: C. William Orndoff, Ir., Treasurer
Lisa Frye, School Finance Director
Dr. William Dean, School Superintendent
YFrederick County Public Schools
~ .__ to ensure all students an exceHent education
Superintendent of Schools
deanw@frederick.k12.va.us
May 6, 2005
Mr. John R. Riley, Jr.
County Administrator
County of Frederick
107 North Kent Street
Winchester, VA 22601-5000
Dear John:
At the May 5, 2005, school board meeting, the Frederick County School Board unanimously
passed a motion requesting the Frederick County Board of Supervisors consider and approve a
supplemental appropriation in the amount of $2,992,000 for the eleventh elementary school project.
The attached letter from the school division's architect outlines the reasons why the low bid for
construction submitted by Caldwell and Santrnyer was significantly higher than the construction estimate.
This will cause the total project estimate to exceed the $12.9 million amount currently appropriated.
The school board respectfully requests the Board of Supervisors act favorably on this request for
these reasons:
a) Bid prices are good only until June 20, 2005, which is 60 days after the bid opening date;
b) The building is scheduled to open in August 2006. We are approximately a month behind
schedule for ground breaking.
We understand, given the requirement for public hearing for budget adjustments, the earliest date
and only feasible date for board of supervisor action can be Wednesday, May 25, 2005. Your earliest
distrIbution of this information and placement on the May 11, 2005, agenda for consideration will be
greatly appreciated. If I can respond to questions before or during the meeting, I would be happy to do
so.
?I:
I
William C. Dean, Ph.D.
Superintendent of Schools
WCD/sl
Attachments
pc: School Board
Mr. AI Orndorff
Mrs. Lisa Frye
Mr. Steve Kapocsi
1415 Amherst Street
P.O. Box 3508
Winchester, Virginia 22604-2546
www.frederickk12.va.us
540-662-3888
fax 540-722-2788
~Il\l Oliver, Webb, Pappas & Rhudy, ,Inc.
200 Country Club Drive Plaza One Building E
L It Blacksburg, VIrginia 24060 :reI: (540) 552-2151
III Ita. FAX: (540) 951-0219 e-mBlI: owpr@owpr.com
.ARC-HfTECTS " '.. . . ETilGINEER5
May 4, 2005
Steve Kapocsi
Frederick County School Board
P. O. Box 3508
Winchester, VA 22601
Re: Eleventh Elementary School
AlE Commission #0440
Dear Mr. Kapocsi:
At 2:00 P.M. on April 21, 2005, bids were received from two general contractors for the above
referenced project. Caldwell & Santmyer submitted the lowest responsive and responsible base bid
in the amount of $12,997,000.00. The following four alternate bid items were also submitted:
Alternate No. 1
Alternate No.2
Alternate No.3
0440_ bIOO'. wpd
Provide Parks & Recreation addition
including enlarged gym for regulation
cross court volleyball; this includes
approximately 5,600 sq. ft. of
additional building, including an
activities room, demo lab, multi-
purpose room, office, lobby and
support spaces. This alternate
includes expansion of the
gymnasium, increased seating
capacity and electric operation
of the gymnasium bleachers and
additional gymnasium striping
and volleyball equipment.
Provide additional 52 parking
spaces at the Southwest side of
the building.
Provide fully adhered 90 mil
EPDM roof in lieu of60 mil
EPDM.
$730,000.00
45,000.00
128,000.00
Steve Kapocsi
Page 2
May 4, 2002
Alternate No.4
Provide VCT floors in lieu of
fritz tile.
<89,000.00>
The original cost estimate for this project, prepared 4/27/2000, was $102.66 per sq. ft. This number
was projected to our final cost estimate of$124.00 per sq. ft. based on our experience in school
construction along with the state averages published by the Virginia Department of Education. This
projection was close to the state's fiscal year 2003-2004 average of $124.48 per sq. ft.
Historically, Frederick County school project bids have been near the state averages with several
General Contractors bidding. For example:
School State Average Actual No. of Bids
Redbud Run Elementary $ 88.41 $90.61 5
Stonewall Elementary 86.33 86.73 5
Orchard View Elementary 102.66 100.22 5
Admiral Richard E. Byrd Middle 125.66 121.63 6
Today's construction costs far exceeded anyone's projections. Although construction prices rose
throughout 2004, a more severe spike in subcontractor and supplier pricing occurred towards the end
of 2004. We feel that the following factors are currently influencing this pricing.
Wodd demand exceeds the available supply for certain commodities such as steel. This,
coupled with the reduced value of the U. S. dollar, has made it more profitable for
manufacturers to supply materials to China and other countries with heated economies than
to ship those same materials to the U. S. As this situation continued and became more
volatile, manufacturers and in turn supply houses, started locking in their pricing only on the
date an order was placed. Today, this situation has worsened in that manufacturers and
supply houses for some products will not lock in prices at all. That is, their pricing is not
finalized until their date of shipment. As a consequence, subcontractors and suppliers are
starting to qualifY their bids to avoid the risk of any price increase.
. Regional demand exceeds available supply for certain commodities such as cement. There
is reportedly an adequate amount of cement throughout the world to satisfy the current world
demand for cement, but the product is not always available in the places it is needed.
Cement within this region is currently in short supply and plants are running at full capacity
with no stockpiles of reserves.
. The rising cost of crude oil has impacted the availability and cost of all petroleum-based
products as well asthe shipping costs for all materials.
044D_bJOO7.wpd
Steve Kapocsi
Page 3
May 4, 2002
. There is a significant amount of residential and commercial/institutional work within this
region. Currently, and within the foreseeable future, demand exceeds the available
subcontractor/supplier resources. This is particularly true with site and road contractors who
have been inundated with the many residential developments within this region. It is also
true with several other divisions of work such as drywall subcontractors, mechanical and
plumbing subcontractors, and electrical subcontractors. This situation has driven up the cost
of construction and forced contractors to solicit bids over a much larger area in attempts to
achieve an acceptable level of subcontractor pricing.
Two elementary schools we recently bid were twenty-three percent over the estimate. One school
had only one bidder. My conversation today with Mr. Hunter Barnes from the Virginia Department
of Education revealed the same magnitude of cost increases throughout the state. In particular, he
mentioned the following:
An elementary school bid in September 2004 at $151.22 per sq. ft.
An elementary school with an original bid of$180.00 per sq. ft. that was revised and
rebid at $158.00 per sq. ft.
A middle school for $176.40 per sq. ft.
Historically, school construction costs increase approximately four to five percent per year.
Currently, and in the foreseeable future, increases in the mid twenty percent will not be unusual.
If you need any additional information, please let me know.
Sincerely,
PP/csp
D440_bI001.wpd