Primary Department: Harris County Resources for Children and Adults
Primary Department Head/Elected Official: Joel Levine, Executive Director
Managing Department: County Engineer
Managing Department Head/Elected Official: Milton Rahman, County Engineer
Regular or Supplemental RCA: Supplemental RCA
Type of Request: Investment Memo
Investment Memo Type: Change Investment Memo
Project Name: HAY Center Design
Project ID (if applicable): Hay Center Design Project ID: 100001000001036
Vendor Legal Name (if applicable): N/A
MWBE Contracted Goal (if applicable): N/A
MWBE Current Achievement (if applicable): N/A
Justification for 0% MWDBE Participation Goal: N/A - Goal not applicable to request
Grant Indirect Costs Rate (if applicable): N/A
Justification for 0% Grant Indirect Costs Rate (if applicable): N/A - Not a grant item
Incremental Authorization Requested: $1,857,538
Total Estimated Project Cost: $2,833,243
Request Summary:
title
Request by Harris County Resources for Children & Adults for approval of a Change Investment Memo for the Hay Center Design project, for an Incremental amount of $1,857,538 for a total authorization of $2,833,248, and commercial paper funding in the amount of $1,855,000 for a total allocation of $2,835,000.
end
Project Description:
In July 2020, the County and Engineer entered into an agreement with M. Arthur Gensler Jr. & Associates for Professional Architecture and Engineering services to provide improvements to The Hay Center located at 3131 Gulf Freeway, Houston, TX 77003 in Harris County Precinct 1.
Anticipated Project Expenditures and Timeline:
|
Project Scope Breakdown |
Estimated Cost |
Estimated Completion |
|
Contactor claims for associated delays and rework |
$765,250 |
FY 2025 |
|
Additional Professional Services - architecture and engineering services caused by an extended construction schedule |
$180,000 |
FY 2025 |
|
Exterior Building Logo, Building Signage, and Donor Wall |
$340,000 |
FY 2026 |
|
Additional Construction Costs - hardware, communications, electrical work, drywall and painting, repair damage caused by defective appliance, additional appliances |
$330,000 |
FY 2025 |
|
Subtotal |
$1,615,250 |
|
|
Contingency (15%) |
$242,288 |
|
|
Total |
$1,857,538 |
|
Justification & Alternatives:
The cost of this project extension is $1,857,250. Harris County Resources for Children and Adults (HCRCA) does not have the fiscal capacity to cover these additional costs, nor are there any alternate funding sources available. This critical incremental funding is necessary to complete the project and address outstanding financial and contractual obligations. Without this funding, the County is exposed to an increased risk of further project delays.
In the Final Investment Memo (FIM), approved at the December 14, 2021 Commissioners Court Meeting, construction costs were projected at $19,000,000. The County advertised the project for bid three separate times, receiving no responses in the first two rounds. In the third round, the County received a single bid from Arch-Con Corporation, which included a list of exclusions omitting key design elements. With the CDBG-DR grant deadline fast approaching, the County accepted the base bid of $23,356,200 to avoid forfeiting the funding.
Since then, the total estimated construction cost has grown to $27,300,000, reflecting a $3,943,800 increase over the accepted bid.
To avoid further delays, the Office of the County Engineer has engaged Job Order Contractors (JOCs) to complete the remaining work, including appliance-related repairs, hardware installation, replacement of lighting fixtures, provision of air conditioning for IT rooms, and final building cleaning.
This funding is necessary to responsibly close out the project and ensure the facility is fully functional and safe.
Anticipated Impact on Other Funds (If Applicable): N/A
|
Fund Code |
Description |
Estimated Cost |
Funding Method (Existing or Future Budget Request Required) |
Estimated Date of Needs |
|
|
|
$- |
|
- |
|
|
|
$- |
|
- |
|
Total |
|
$- |
|
- |
County Strategic Plan Goal: 2. Connect our community with safe, reliable, equitably distributed, and well-maintained infrastructure.
County Strategic Plan Objective: W: Transition people experiencing homelessness into permanent supportive housing.
Justice/Safety Initiative (Goal 1): D2: Increase the employment rate of individuals exposed to the justice system through a workforce reentry.
Infrastructure Initiative (Goal 2): N/A
Economy Initiative (Goal 3): N/A
Health Initiative (Goal 4): N/A
Climate/Resilience Initiative (Goal 5): N/A
Housing Initiative (Goal 6): W1: Use data to increase homelessness diversion.
Decision Analysis Matrix Score (rubric on last page): 20
Previous Court Action:
|
Date |
Agenda Item # |
Action Taken |
|
11/10/2020 |
1.g.2. |
Approval of an additional $67,500 to original contracted amount |
|
5/25/2021 |
21-2413 |
Commissioners Court had authorized a total of $919,000 for the Hay Center Design project to date. Resources for Children & Adults requests funding of $920,000 for a total CP funding of $920,000. |
|
8/6/2024 |
24-4601, 164 |
Approval of an additional $56,710 for a total authorization of $975,710 and commercial paper funding of $60,000 for a total allocation of $980,000. |
Address: The Hay Center located at 3131 Gulf Freeway, Houston, TX 77003
Precinct(s): Precinct 1
|
Fiscal and Personnel Summary |
|
Service Name |
|
|
|
|
Current Fiscal Year Cost |
Annual Fiscal Cost |
|
|
Labor |
Non-Labor |
Total |
Recurring Expenses |
|
|
|
|
|
|
|
Funding Sources |
|
|
Existing Budget |
|
|
|
|
|
Choose an item. |
$ |
$ |
$ |
$ |
|
Choose an item. |
$ |
$ |
$ |
$ |
|
Choose an item. |
$ |
$ |
$ |
$ |
|
Total Current Budget |
$ |
$ |
$ |
$ |
|
Additional Budget Request |
|
|
Commercial Paper |
$ |
$1,855,000 |
$1,855,000 |
$ |
|
Choose an item. |
$ |
$ |
$ |
$ |
|
Choose an item. |
$ |
$ |
$ |
$ |
|
Total Additional Budget Request |
$ |
$1,855,000 |
$1,855,000 |
$ |
|
Total Funding Request |
$ |
$1,855,000 |
$1,855,000 |
$ |
|
Personnel (Fill out section only if requesting new PCNs) |
|
|
Current Position Count for Service |
- |
- |
- |
- |
|
Additional Positions Request |
- |
- |
- |
- |
|
Total Personnel |
- |
- |
- |
- |
Anticipated Court Date: 8/7/2025
Anticipated Implementation Date (if different from Court date): Click or tap to enter a date.
Emergency/Disaster Recovery Note: Not an emergency, disaster, or ARPA related item
Legal funding compliance confirmed by: Paige Abernathy, Special Assistant County Attorney, 7/30/2025
Department Approval by: Joel Levine, Executive Director, 7/30/2025
OMB CIP Team Approval by: William McGuinness, Director-Capital Projects & Infrastructure, 7/30/2025
________________________________________
Commercial Paper Request (For OMB use only):
Receiving Department: Harris County Resources for Children and Adults Choose an item.
Project PeopleSoft ID: 100001000001036
CP Series Description: Commercial Paper Series D-2 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 Hay Center Design project and is expected to be repaid within the next three fiscal years either through bonds, budgetary means or pay-as-you-go sources.
Note: Commercial Paper is issued in increments of $5,000 and the excess is not available to be spent by the department.
OMB Financial Management contact: Amy Perez, Deputy Executive Director, Office of Management and Budget
Decision Analysis Matrix scoring tool - Commissioners Court has approved the rubric below for scoring capital projects. Please complete the last two rows for OMB review.
|
Scoring option |
Strategic Plan alignment (3x weighting) |
Evidence base |
Impact on outcomes |
Cost effectiveness |
Ease of implementation |
Collaboration / partnerships |
Environmental sustainability |
Equity |
Total |
|
-1 |
Antithetical to one or more aspects of the Strategic Plan |
Evidence shows net negative impact on the intended goal |
Impact is clearly negative |
Costs expected (or shown) to outweigh benefits |
County has no/limited existing capabilities and dependencies are likely to impede |
Could negatively impact relationships with partners |
Negatively impacts environment and/or climate change mitigation efforts |
Inequitable |
n/a |
|
0 |
Does not align to a Strategic Objective |
Evidence base is not well defined or measurable |
Size of impact on one or more strategic outcomes is negligible or unclear |
Net comparison is unclear |
County has no/limited existing capabilities or dependencies are likely to impede |
Does not involve collaboration with partners |
Net neutral impact on environment and/or climate change mitigation efforts |
Does not consider equity to a meaningful degree |
n/a |
|
1 |
Aligns to a Strategic Objective but not to a Strategic Initiative |
Limited evidence-based research on outcomes; may have qualitative/theoretical support |
Outcomes are defined but without target levels and/or expected impact is moderate |
Moderate direct/indirect benefit relative to costs |
County has existing capability to implement or dependencies are unlikely to impede |
Moderately expands County leverage through collaboration with partner(s) |
Marginally positive impact on environment and/or climate change mitigation efforts |
Considers equity to a meaningful degree, but not comprehensively |
n/a |
|
2 |
Aligns to a Strategic Objective and a Strategic Initiative |
Outcomes are directly supported by evidence base or credible research supports anticipated outcomes |
Outcomes are clearly defined and include target levels; expected impact on outcomes is high |
Significant direct/indirect benefit relative to costs |
County has existing capability to implement and dependencies are unlikely to impede |
Significantly expands County leverage through collaboration with partner(s) |
Positively impacts environment and/or climate change mitigation efforts |
Considers equity meaningfully and comprehensively |
n/a |
|
Score (-1,0,1,2) |
2 |
2 |
2 |
2 |
2 |
2 |
2 |
2 |
20 |
|
Rationale |
Connects foster youth as they age out of the system with safe, reliable, equitably distributed, and well-maintained housing infrastructure to prevent homelessness. |
This funding is necessary to responsibly close out the project, mitigate legal exposure, and ensure the facility is fully functional and safe. |
This critical incremental funding is necessary to complete the project and address outstanding financial and contractual obligations. Without this funding, the County is exposed to an increased risk of further project delays, non-compliance with the approved contract, and potential legal action from the contractor due to unresolved claims. |
This funding is necessary to responsibly close out the project, mitigate legal exposure, and ensure the facility is fully functional and safe. |
Does not require additional resources outside the scope of this request for implementation. |
Highly expands County leverage with local vendors by building trust and strong partnerships. |
Represents a critical investment in the well-being and safety of youth in the foster care system; particularly those who are aging out and require housing intervention. |
Linked to services provided to vulnerable and at-risk clientele populations. |
n/a |