Department: County Engineer
Department Head: Milton Rahman, PhD., P.E., PMP, CFM, County Engineer
Regular or Supplemental RCA: Regular RCA
Type of Request: Investment Memo
Investment Memo Type: Final Investment Memo
Project Name: 1010 Lamar - Renovations
Project ID (if applicable): 1010_LAMAR
Vendor Legal Name (if applicable): N/A
MWDBE Contracted Goal (if applicable): N/A
MWDBE Current Achievement (if applicable): N/A
Justification for 0% MWDBE Participation Goal: N/A - Goal not applicable to request
Managing Entity: County Engineer
Incremental Authorization Requested: $20,000,000
Total Estimated Project Cost: $29,500,000
Request Summary:
title
Request for approval of a Final Investment Memo for the 1010 Lamar - Renovations project for an additional $20,000,000 for a total of $29,500,000 and for approval of additional commercial paper funding in the amount of $12,000,000 for a total of $21,500,000.
end
Project Description:
Necessary construction, renovations, and improvements to accommodate future County departments to the recently acquired 20-story building at 1010 Lamar St. Phase 1 focused on a comprehensive examination of the building and adjoining multi-level parking garage at 1111 Main St., assessing existing equipment and systems. The Office of the County Engineer is returning to the Commissioners Court for funding approval for Phase 2 of the project, which addresses deficiencies identified in Phase 1 and design and construction based on space planning for HC Tenants conducted during Phase 1.
Project Scope:
On October 31st, 2023, the Commissioner’s Court approved a Final Investment Memo for Phase 1 of the project. This initial phase focused on conducting a pre-engineering comprehensive examination of the mechanical, electrical, and plumbing systems within the 1010 Lamar St. 20-story building and the 1111 Main St. multi-level parking garage. The primary goal was to identify existing deficiencies that hinder the proper maintenance and safe occupancy of the building.
Phase 1 also encompassed pre-design activities with the objective of optimizing space utilization. This involved planning for the consolidation of County staff from various locations. Ongoing space planning activities are anticipated to conclude by the end of the first quarter of fiscal year 2024. Additionally, immediate improvements, as outlined in Phase 1, have been implemented to set the stage for Phase 2 design and construction activities.
Phase 2 of the project is for mechanical, electrical, and plumbing system repairs and upgrades according to findings on the comprehensive pre-engineering examination report to include engineering design. Phase 2 also includes design and expedited renovations for 8 floors, approximately 110,000 square feet, that will be utilized to consolidate and accommodate County staff according to the pre-design space planning activities conducted in Phase 1 of the project. Construction will include demolition, HVAC system upgrades, installation of energy-efficient lighting, adherence to accessibility, fire, and life safety regulations, and the installation of IT, AV, and security systems necessary for code conformance thorough the building.
|
|
Estimated Cost |
Benefits County Only |
Benefits All Tenants Equally |
|
Modernize Elevator (6 of 6) |
$500,000 |
|
√ |
|
CAO Renovation (7 Floors 'Carpet and Paint' - less 1 floors) |
$1,980,000 |
√ |
|
|
CAO Renovation (7 Floors 'Restrooms') |
$1,050,000 |
√ |
|
|
CAO Renovations (7 Floors 'Limited Wall, Door, HVAC and Suite Modifications) |
$3,800,000 |
√ |
|
|
Abatement Lead and Asbestos (7 Floors) |
$700,000 |
√ |
|
|
CAO Renovation (16th Floor - Christian Menefee Floor) - Design |
$400,000 |
√ |
|
|
CAO Renovation (16th Floor - Christian Menefee Floor) - Construction |
$3,000,000 |
√ |
|
|
CAO Renovation (Conference Center Renovations and AV Upgrades) |
$85,000 |
√ |
|
|
Stairwell Pressurization |
$585,000 |
|
√ |
|
Domestic Water Pumps Replacement |
$150,000 |
|
√ |
|
Domestic Water Piping & Water heater replacement (dead legs) |
$1,800,000 |
|
√ |
|
Domestic Sewer Replacement |
$300,000 |
|
√ |
|
Storm and Sanitary Drain Pipe Replacement |
$560,000 |
|
√ |
|
Permits Buildout on the First Floor |
$2,400,000 |
√ |
|
|
Contingency |
$2,690,000 |
|
|
|
Total |
$20,000,000 |
|
|
Note: Due to tax law, the Office of Management and Budget expects that up to $1 million of the renovations may need to be financed through non-debt sources.
Justification:
The 1111 Main St. parking garage (1951) and the 1010 Lamar St. building (1981) have outdated utility systems, unsupported by manufacturers, and corroded structural systems, posing safety risks. The comprehensive MEP assessment report highlights the urgent need to replace critical components. Mechanical and plumbing systems are beyond their useful life, lighting is inefficient, and critical Fire and Life Safety components require immediate attention. Building codes have changed since construction, necessitating updates. Overall, the condition of the building and adjacent parking garage requires immediate attention.
Alternatives and Engagement:
The MEP, building envelope, and security issues will have to be addressed. An alternative would be to maintain the building in current conditions and order very expensive, custom-made legacy parts, many of which have extremely long lead times and do not meet current codes. This approach would result in costly continuous repairs and maintenance that will likely increase over time due to inflation and continuing wear and tear on existing equipment. Operation expenses due to inefficient systems will become unsustainable and ultimately require the replacement of equipment.
There are existing systems that will have to be installed and updated if the building is to be occupied.
Anticipated Project Expenditures and Timeline:
|
Scope of Work |
Estimated Cost |
Estimated Completion |
|
Phase 1- Immediate repairs, Pre-engineering services (MEP examination), and Pre-design services (Space Planning for 6 floors, Basement, and Lobby). |
$9.5M Previously approved in 10/31/23 CC |
2Q2024 |
|
Phase 2- Building MEP upgrades & Renovations, Fire & Life safety upgrades, Design, Demolition, Renovations, Construction for upper 7 floors, Basement, and 1st floor. |
$20,000,000 |
1Q2026 |
|
|
|
|
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Total |
$29,500,000 |
|
Alignment with Goal(s):
x Justice and Safety
_ Economic Opportunity
_ Housing
_ Public Health
_ Transportation
_ Flooding
_ Environment
X Governance and Customer Service
Previous Court Action:
|
Date |
Agenda Item # |
Action Taken |
|
9/19/2023 |
23-5631 |
Approved Purchase Agreement 1010 Lamar and Garage |
|
9/19/2023 |
23-5603 |
Approved Public Necessity to Acquire 1010 Lamar and Garage |
|
9/19/2023 |
23-5630 |
Approved Final Investment Memo Purchase 1010 Lamar and Garage |
|
10/31/2023 |
23-6203 |
Approved Final Investment Memo for the 1010 Lamar Renovations - Phase 1 |
Address: 1010 Lamar Street, Houston, TX 77002
Precinct(s): Precinct 1
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Fiscal and Personnel Summary |
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Service Name |
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Current Fiscal Year Cost |
Annual Fiscal Cost |
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Labor |
Non-Labor |
Total |
Recurring Expenses |
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Funding Sources |
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Existing Budget |
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$ |
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$ |
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$ |
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$ |
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Choose an item. |
$ |
$ |
$ |
$ |
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Total Current Budget |
$ |
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$ |
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Additional Budget Request |
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Commercial Paper |
$ |
$12,000,000 |
$12,000,000 |
$ |
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Choose an item. |
$ |
$ |
$ |
$ |
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Choose an item. |
$ |
$ |
$ |
$ |
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Total Additional Budget Request |
$ |
$12,000,000 |
$12,000,000 |
$ |
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Total Funding Request |
$ |
$12,000,000 |
$12,000,000 |
$ |
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Personnel (Fill out section only if requesting new PCNs) |
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Current Position Count for Service |
- |
- |
- |
- |
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Additional Positions Request |
- |
- |
- |
- |
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Total Personnel |
- |
- |
- |
- |
Anticipated Court Date: 3/26/2024
Anticipated Implementation Date (if different from Court date):
Legal funding compliance confirmed by: Paige Abernathy, Assistant County Attorney, 3/13/2024
Department Approval by: Ross Hosket, P.E., (Interim) Director of Capital Projects Facilities Division, Harris County Engineering Department
OMB CIP Team Approval by: Amiel Chen, CIP Manager, OMB, 03182024
Commercial Paper Request (For OMB use only):
Receiving Department: County Engineer
Project PeopleSoft ID: 1010_LAMAR
CP Series Description: Commercial Paper Series D can be used for (1) construction of public works, (2) the purchase of automobiles, equipment and machinery, including computers, materials and supplies for the operation of the County’s precincts and departments (3) Professional services, including services provided by engineers, architects, attorneys, auditors, financial advisors, and fiscal agents, in connection with the contractual obligations described in (1) and (2).
Commercial Paper is being requested for the 1010 Lamar Renovations project and is expected to be repaid within the next three fiscal years either through bonds, budgetary means or pay-as-you-go sources.
OMB Financial Management contact: Amy Perez, Deputy Executive Director, Office of Management and Budget