LLT Board Financial Update October 11, 2010

Transcription

1 Demolition Management and Monitoring LLT Board Financial Update October 11,

2 Current Property Inventory 10,404* 10,213 at last amendment Increase of 191 since April 11, ,593 projected total LLT inventory by March 2011 Inventory increase of 1,097 properties (12%) since February % - Properties in Orleans Parish 42% - Properties in St. Bernard Parish 10% - All other Parishes *Inventory was advertised as 5,800 at award of contract and updated to 9,307 by February

3 Demolition Progress Schedule 9 Mar 09 6 Apr 09 4 May 09 1 Jun Jun Jul Aug Sep Oct Nov Dec Jan 10 8 Feb 10 8 Mar 10 5 Apr 10 3 May May Jun Jul Aug Sep Oct Nov Dec Jan 11 7 Feb 11 7 Mar 11 Parish Orleans St. Bernard 240 Jefferson Week+ EPA/LDEQ Stormwater Issue Delay Plaquemines Northeast West Central Cameron Scattered release of properties following initial contract completion (# of properties released / month). 3

4 Parish/ Area Total Available* Slab/ Flatwork Completed Structures Completed Total Completed Demo s Percent Complete Orleans 2,320** 1,071 1,006 2,077 90% St. Bernard 4,338 3, ,883 90% Other Parishes % Totals 7,474 5,345 1,389 6,750 90% *Quantity of LLT properties that have been approved for demolition, slab removal or site restoration. **Some structures t still require NCDC approval and completed Environmental Record (OCD). 4

5 All currently assigned LLT abatements, demolitions, and slab removal will be stopped immediately No additional properties will be assigned Closeout documentation will be left incomplete Project office closed Storm Water compliance inspections cease immediately (compliance inspections assumed by LLT) Additional costs for contractor demobilizations will be incurred 5

6 Approximately 700 properties p will remain incomplete and require disposition as follows: Incomplete Property Clearance City / Parish acceptance of incomplete properties Cost to re-contract t clearance of properties Close and reopen files to complete clearance Contract termination expenses Eligibility of termination expenses for grant funding 6

7 Approximately 1000 storm damaged properties will remain as is and require disposition as follows: Property Transferred As Is to City/Parish As Is transfer subject to City/Parish approval in accordance with Action Plan City responsible for maintenance and disposition Property Transfers as a Demolished Property (delay of 240 days) Procure a Management Firm (60 90 days) Develop and Prepare Bid Package(s) (60-90 days) Procure Demolition Contractors (30 60 days) Start-up Costs for Management Firm (database, filing system, office) Re-Introduction to Outside Process Costs (LDEQ, NORA, NCDC) Maintenance of Properties Costs extended 7

8 All currently assigned LLT properties will complete demolition No additional properties will be assigned for demolition Closeout documentation completed All project files delivered to LLT Project office closed Storm Water compliance inspections cease at closeout (compliance inspections beyond December 31 assumed by LLT) 8

9 Approximately 1000 properties will remain and require disposition as follows: Property Transferred As Is to City/Parish As Is transfer subject to City/Parish approval in accordance with Action Plan City responsible for maintenance and disposition Property Transfers as a Demolished Property (delay of 240 days) Procure a Management Firm (60 90 days) Develop and Prepare Bid Package(s) (60-90 days) Procure Demolition i Contractors (30 60 days) Start-up Costs for Management Firm (database, filing system, office) Re-Introduction to Outside Process Costs (LDEQ, NORA, NCDC) Maintenance of Properties Costs extended 9

10 All currently assigned LLT properties will complete demolition Additional properties accepted at current rate through December 31, 2010 Anticipated assignment of 100 properties per month for demolition Closeout documentation completed All project files delivered to LLT Project office closed Storm Water compliance inspections cease at closeout (compliance inspections beyond March 31 assumed by LLT) 10

11 Approximately 700 properties will remain and require disposition i i as follows: Property Transferred As Is to City/Parish As Is transfer subject to City/Parish approval in accordance with Action Plan City responsible for maintenance and disposition Property Transfers as a Demolished Property (delay of 240 days) Procure a Management Firm (60 90 days) Develop and Prepare Bid Package(s) (60-90 days) Procure Demolition Contractors (30 60 days) Start-up Costs for Management Firm (database, filing system, office) Re-Introduction to Outside Process Costs (LDEQ, NORA, NCDC) Maintenance of Properties Costs extended 11

12 All currently assigned LLT properties will complete demolition by December 31, 2010 All remaining eligible properties will be tasked for demolition by LLT by December 31, 2010 (approx properties) New Demolition Contract(s) advertised and awarded by December 31, 2010 All remaining eligible properties will complete demolition by March 31, 2011 Closeout documentation completed All project files delivered to LLT Project office closed Storm Water compliance inspections cease at closeout Closeout complete by May 15,

13 8500 properties are cleared for disposition: Property Transfers as a Demolished Property (all demolitions complete in 170 days) Complete under current Management Contract Procure Demolition Contractors (30 60 days) Completes all LLT inventory tasked for demolition Reduces on-going LLT security and maintenance costs Completes all LLT goals for properties prior to dispositioniti 13

14 Summary of Closeout Scenarios (Management Costs) Average eage Monthly Scenario Expenditure Demolitions Completed Cost at Completion Completion Date 1 $ $26,192,000 Oct $413, $27,432,000 Dec $413, $28,671,000 Mar $856, $33,043,000 Mar

15 Expenditure & Production Rates Versus Time $1,400, $1,200, Projected Oct 2010 Dec $1,000, Managemen nt Costs $800, $600, $400, $200, $- Actual 600 Scenario Scenario Scenario 1 Scenario 2 0 Propertie es Complete Project Months Average Monthly Demolitions Cost at Scenarios Expenditure Completed Completion Management Costs / month (Actual) 1 $ $26,192, Management Costs / month (Projected) 2 $413, $27,432,000 Demolitions Completed / month (Actual) 3 $413, $28,671, Demolitions Completed / month (Projected) 4 $856, $33,043,000 15

16 Detailed CDM Budget for Scenario 4 Task Category Amend. 3 Amend. 4 Difference Description Increased inventory. More time/effort on NCDC permits. More resistance to demo versus preservation. More Permitting $ 2,218,683 $ 2,999,000 $ 781,000 NCDC hearings to present smaller numbers of applications. Slower permit approvals at Safety & Permits. Site Assessments & Asbestos Insp. $ 9,583,012 $ 11,672,000 $ 2,089,000 Increased inventory. Scattered location of remaining LLT inventory reduces cost efficiency (10/day versus 6/day). Due to recent safety issues, 2 man teams assigned. Utility Disconnection Increased dinventory. Larger scale disconnects from utility $ 447,980 Coordination $ 509,000 $ 61,000 providers. Asbestos Air Monitoring Demo Monitor. (including abatement) Contract Procurement & Management $ 194,614 $ 314,000 $ 119,000 Increased inventory. Increase of RACM demos and associated air monitoring. (due to IDCs) Additional air monitoring based on complaints by adjacent homeowners. Increased inventory. Request by St. Bernard Parish authorities to increase level of monitoring. Also, lost $ 7,580,878 $ 10,405,000 $ 2,825,000 efficiency due to smaller batches of demo s in New Orleans. QA/QC costs for 100%. Under estimated cost for storm water compliance. Increased inventory. Recent trend toward larger contracts $ 3,894, $ 3,624,000 $ (271,000) (larger quantities of LLT properties per contract). t) Efficient management of contract. NORA Coordination $ 1,145,120 $ 1,918,000 $ 773,000 Survey & Site Screening $ 1,127,304 $ 1,601,000 $ 474,000 Increased inventory. NFIP compliance coordination (mapping, working group participation, research, documentation, etc.), Transition in NORA staffing. This could be drastically reduced by approving more properties quickly. More resistance to demo versus rehabilitation Increased inventory. More problems with boundaries and incorrectly identified properties. Litigation prevention. Totals $26,192,000 $ 33,043,000 $ 6,851,000 16

17 Major Cost Differences from Amendment 3 Cost Category Previous Assumptions Projection Cost Projection Program Schedule Extension End on August 30 March 2011 conditional to release of properties from NORA $ 1,920,000 Additional LLT Inventory $ 1,770,000 ERR Assistance to OCD QA/QC - 100% Accountability/Auditing None necessary LLT would perform QA/QC auditing on CDM and demo contractors invoices CDM asked to provide ERR research & documentation for outlying Parish's s $ 56,000 CDM asked to provide extensive preliminary QA/QC auditing of all invoices. Increased numbers of demo's result in much more $ 380,000 egrants Management LLT managed much of egrants time managing egrants (e.g. processing and uploading substantial completions) $ 310, NORA Management End on August 30 Extend until March 2011 $ 330,000 SHPO Management HRQL Management New Orleans City Council Recovery Committee - NFIP Compliance St. Bernard Debris Monitoring LLT & NORA handling most issues Minimal coordination Didn't exist CDM coordinated all aspects including: historic assessment, deconstruction planning and contract specifications, attend meetings, SHPO, HDLC, LLT, NORA. $ 300,000 More extensive coordination, daily report generation, weekly meetings, Commission meetings, joint approval of completes. $ 50,000 Multiple meetings, council presentation, position papers, extensive mapping, elevation surveying $ 270,000 Roaming monitors (one per Increased monitor presence both in numbers and time contract) at request of St. Bernard Parish $ 490,000 Storm Water Inspections End on August 30 Continue until end of program $ 450,000 Additional Photos for Substantial Completion Review Not required Post substantial completion photos for LLT review and approval $ 525,000 Subtotal t $ 6,851,000 Previous Contract Amount $ 26,192,000 Projected Contract Amount $ 33,043,000 17

18 Amendment Comparisons Description Original Contract Amend. 1 Amend. 2 Amend. 3 Amend. 4 (01/07/09) (03/11/09) (02/10/10) (08/06/10) (Proposed) # of Properties 5,800 9,307 9,837 10,213 10,593 Sc ope of Wo ork Develop policies and oversight procedures Budget tracking and oversight Develop and integrate IT Contact Management Scope Clarification Inventory increase Inventory increase Inventory increase Manage process for permits Identification of HHW Demo Contractor will remove HHW Haz. Mat. Inspect. for all properties Storm Water Compl. Inspections Immediate release of remaining eligible properties LDEQ Coord. and Fund all other tasks Fund all other tasks Slab Clearances from Amendment 2 from Amend. 2 & 3 NORA Coord. for demo approvals Review ERRs and Identify disposal fees NCDC Permitting coordinate with OCD and permits Requirements Prepare Scope for Demolitions Prepare Bid Documents Monitor all demolition contracts Obtain permits and coordinate utilities Demo Contractor to pay for disposal EPA Storm Water Prevention Survey & Site Verifications Increased number of contracts managed (60) Project Closeout Quality Assurance Amendment Totals $0.00 $0.00 $12,500,000 $6,192,943 $6,851,000 Contract Value $7,500,000 $7,500,000 $20,000,000 $26,192,943 $33,043,000 18

19 (A) (B) (C) (D) (E) Demolition Activity Quantity of Properties Anticipated Costs / (at Project Property (01/2009) Completion) Anticipated Total Actual Costs / Projected Costs Costs based on Property through to 03/2011 (B) 10/2010 based on (D)* Management 10,593 $3,000 $31,779,000, $3,120 $33,043,000, Structure Demolition 2,700 $17,323 $46,772,100 $10,000 $27,000,000 Slab Removal 5,835 $5,775 $33,697,125 $3,950 $23,048,250 TOTAL $112,248,225 $83,091,250 *Includes demolition of all eligible properties through March

20 Average Cost / Property % of Mgmt. Costs lition plete 00 Demo Comp 750 Preppe ed for Dem mo 800 0* Initial In nspect Comp plete Fold der Prepar ration No Work Comp pleted n Activities Pre- -Demolitio Initial File Preparation $49.00 Initial Property Assessment $ LDEQ required Inspections for Asbestos Sampling & Testing & Storm Water compliance Coordination with LLT and Local Entity to Assign Demolition 54% $ $ Bid Specification Preparation $ Advertise Contract, Open Bids, Recommend Award Prepare Contracts and Review Submittals and Weekly Progress Meetings and Storm Water Compliance Review $ % $ Obtain Demolition Permit $ Coordinate/Monitor Utility Disconnect (Electric, Gas, Sewer & Water) $53.83 Demo Activities Prepare Abatement/Demolition/Slab Removal Work Order Monitor Abatement/Structure Demo/ Slab Clearance/Removal/ Final Accept Storm Water Compliance Inspections (30-90 days until 70% growth) $ % $ $ % Invoice Review and Payment Recommendation $18.54 Final QA / QC of Demolition File $23.08 * Some properties were removed from demo after being prepped for demo. 20

21 Cost Comparison LLT vs Other Demo. Programs Parish/Municipality Demo Cost per House Estimated Management Average Total Equivalent Cost Cost of Cost per Cost Per (Anticipated Work Slab* House House through 03/2011) New Orleans FEMA* $14,639 $4,880 $7,708 $15,675 $149,650,944 St. Tammany FEMA* $16,125 $5,375 $6,122 $14,898 $139,750,971 Jefferson Parish FEMA* $12,698 $4,233 $6, $13,591 $129,745,395 St. Bernard Parish FEMA* $25,829 $8,610 $3,500 $17,557 $157,053,150 Cameron Parish FEMA* USACE USACE USACE USACE USACE Average Cost* $17,323 $5,775 $6,003 $15,431 $144,059,004 Anticipated i Work through 03/2011 2,700 5,835 10,593 N/A N/A Louisiana Land Trust** $10,000 $3,950 $3,120 $8,984 $83,091,250 * FEMA work did not remove slabs; Demo Cost per House adjusted to include Estimated Cost of Slab. ** Includes structure demo, slab removal, site restoration, monitoring & management. 21

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