construction review - broward county, florida 1 fire...construction review executive summary this...

Exhibit 1

Construction Review Fire Stations Construction Cost Review

August 16, 2010 Report No. 10-17

Office of the County Auditor Evan A. Lukic, CPA

County Auditor

Construction Review

Table of Contents

Executive Summary .....................................................................................2

Purpose and Scope......................................................................................3

Methodology.................................................................................................3

Background ..................................................................................................5

Observations and Recommendations ........................................................9

APPENDIX A ...............................................................................................15 Photos of Broward Fire Stations and Comparables from Miami-Dade, Ft. Lauderdale and Hollywood Listed by Type

APPENDIX B ...............................................................................................18 Methodology for Comparison of Fire Stations Built by Other Local Governments

APPENDIX C ...............................................................................................20 Summary Information-Broward Fire Stations and Comparables

APPENDIX D ...............................................................................................21 Comparison of Fire Stations Costs Per Square Foot by Type

Office of the County Auditor 1

Construction Review

Executive Summary

This report summarizes our review of the construction costs for the following four fire stations built by Broward County:

Regional Everglades Fire Rescue Station Number 106, Regional Hazardous Materials Team Station Number 32, Airport/Seaport Fire Rescue Station and Regional Technical Rescue Station Number 17

and logistic warehouse, and Fire Rescue station 17/27.

Our objective was to evaluate the reasonableness of the construction costs of the Broward stations by comparing the costs to similar fire stations built by other governmental entities in South Florida.

We found that Broward’s four fire stations cost $12 million (84%) more than the adjusted cost for functionally comparable facilities ($26.2 million versus $14.2 million). The County’s costs were higher for each facility type, ranging from 55% for Fire Rescue station 17/27 to 139% for Everglades.

Construction Management Division (CMD) managers gave the following explanations for Broward’s higher costs but did not provide documentation to validate their claims or quantify the cost differential for each assertion.

The remote project site for the Everglades fire station resulted in extended travel time impacting the cost of materials and labor,

The clearance for Broward’s apparatus bays is higher than Miami-Dade1,

FDOT required the County to match aesthetics of the adjacent rest area by using the same metal roof and color schemes for the Everglades station and the City of West Park required the County to match the aesthetics of the adjacent community, i.e. landscaping,

Broward County facilities utilized better finishes2 and building equipment such as air conditioner, kitchen equipment, etc. that will result in longevity and reduced future maintenance,

The Hazmat station was built on a larger site with greater site work costs compared to the Fort Lauderdale 4-Bay station, and

Unprecedented cost increases3 in the construction industry.

In an effort to quantify the $12 million cost difference we noted that Broward’s facilities are larger than the functionally comparable facilities. The square footage of Broward’s facilities exceeded

1 Our analysis indicates the height of the Broward County apparatus bays is the same as the cities of Hollywood and Fort

Lauderdale. 2

Finishes include architectural features, polished concrete flooring, and hurricane resistant windows. 3

Construction Management Division provided the Construction Cost Index information for the Ft. Lauderdale region.


Construction Review

the average square footage for the functionally comparable facilities by 11,208 square feet, which might explain approximately $3.8 million (32%) of the $12 million difference. CMD managers did not provide us with documentation justifying the need for larger facilities built with more expensive materials and equipment. Controlling construction costs is difficult to achieve without an adequate process or mechanism to validate the need for each expenditure. The desire for an effective construction cost control process is even more important in tight budget times.

We recommend the Board of County Commissioners (Board) direct the County Administrator to take steps to ensure:

1. Cost proposals of future County projects are evaluated based on functionality and costs

of comparable projects completed by others, and

2. Adequate justification is provided for enhancements exceeding minimum standards or

requirements including life cycle cost analysis4, when applicable.

Purpose and Scope

The objectives of our review were to evaluate the construction costs of the following four fire station projects administered by Construction Management Division:

Regional Everglades Fire Rescue Station No. 106 (Everglades),

Regional Hazardous Materials Team Station No. 32 (Hazmat),

Airport/Seaport Fire Rescue Station and Regional Technical Rescue Station No. 17 (Airport/Seaport) and logistic warehouse, and

Fire Rescue station 17/27 (17/27),

The four Broward County fire station projects had construction award dates in 2006 and 2007.

Methodology

To accomplish our objectives, we:

Reviewed: o The Managing General Contractor (MGC) agreements for construction of the

Broward fire stations selected: three dated December 5, 2006 and one dated December 11, 2007,

4 National Institute of Building Services defines Life Cycle Cost Analysis (LCCA) as follows: LCCA is a method for assessing

the total cost of facility ownership. It takes into account all costs of acquiring, owning, and disposing of a building or building

system. LCCA is especially useful when project alternatives that fulfill the same performance requirements, but differ with

respect to initial costs and operating costs, have to be compared in order to select the one that maximizes net savings. For

example, LCCA will help determine whether the incorporation of a high-performance HVAC system, which may increase

initial cost but result in dramatically reduced operating and maintenance costs, is cost-effective or not.


http://www.wbdg.org/resources/hvac.php?r=lcca

Construction Review

o The Professional Design Services agreements, and subsequent amendments dated June 29, 2004 for the Broward fire stations,

o Construction and Design Criteria documents for the Miami-Dade County projects, o Specifications and Drawings for the Broward fire stations, o Specifications and Drawings for the fire stations in Miami-Dade County and the

cities of Ft. Lauderdale and Hollywood, o Project estimates prepared by an Independent Consultant for the Broward fire

stations, o Selected “Contract Price Elements Adjustment Memorandum5” (CPEAM)

supporting scope changes in the MGC agreements for Broward fire stations, o Selected “Work Authorizations6” supporting changes to the scope of the

Professional Design Services for the Broward fire stations, o Subcontractor bids and tabulation documents, and o Project cost schedules, invoices, and square footage associated with the four

Broward and the seven fire stations used as comparisons.

Interviewed staff at: o Broward County Construction Management Division (CMD), o Miami-Dade County Fire Rescue Department, o City of Ft. Lauderdale Public Works - Engineering & Architectural Bureau, o City of Hollywood Construction Management Division, o Miami-Dade County, Ft. Lauderdale, Broward County, and Hollywood fire stations

included in the analysis, o The Managing General Contractor, and o The Professional Design Consultant.

Toured: o The four Broward County fire stations under review, and o The seven fire stations used as comparisons in Miami-Dade County and the cities

of Ft Lauderdale and Hollywood.

Compared Broward County costs and square footage to functionally comparable fire stations constructed in Miami-Dade County and the cities of Ft. Lauderdale and Hollywood with construction award dates between 2005 and 2008.

Analyzed construction cost elements of the individual fire stations to facilitate comparison between fire station types.

5 CPEAM: A document issued to memorialize the reallocation of funds between contract price elements included within the

Contract Price. 6

Work Authorizations approved by the Contract Administrator, Purchasing Director or Board were used to authorize Optional Services included in each design contract.


Construction Review

Background

Broward County’s Fire Station Projects Broward County Fire Stations provide both fire rescue and emergency medical services throughout selected areas of the County. We reviewed the project costs associated with the fire stations that service the following areas:

Regional Everglades - Interstate 75/Alligator Alley,

Port Everglades/Fort Lauderdale-Hollywood International Airport (Airport and Seaport),

Regional Hazardous Materials, and

Fire Rescue Station 17/27 servicing the Cities of Pembroke Park and West Park.

The four fire stations have fuel dispensing equipment in addition to the standard features such as apparatus bays, sleeping quarters, secure parking areas, and emergency backup power. The stations are similar in architectural features and finishes with variations due to function, conditions, and location. Refer to Appendix A at page 15 of this report for pictures of the sites.

Regional Everglades Fire Rescue Station No. 106 Mile Marker 34 on I-75 North, Alligator Alley The Regional Everglades Fire Rescue Station, located fourteen miles west of the City of Weston on Interstate I-75, is a 7,622 square-foot facility that opened in August 2008. Because of the remote location water supply for the fire sprinkler system to the station is provided by fire wells. The station has five personnel and two apparatus bays that accommodate an Advanced Life Support (ALS) Engine and an ALS Rescue unit and provides rescue services for the I-75 corridor and areas of the Everglades. The station also has additional specialized emergency response equipment, including a Rescue Airboat and Jonboat used to maneuver through the swampy terrain and wilderness environment of the Everglades.

Regional Hazardous Materials Team Station No. 32 3400 S.W. Fourth Avenue, Fort Lauderdale The Hazardous Materials Team Fire Rescue Station is a 17,450 square-foot facility built on 6.1 acres, with four apparatus bays. The station opened in August 2008 and has a Hazardous Materials Team of approximately seventeen personnel. The team provides regional emergency response for incidents in Broward County involving hazardous chemical leaks, biological leaks, biological agents, radiological/nuclear emergencies and weapons of mass destruction agents. The service area includes Broward County highways, railways, pipelines, airports and Port Everglades.

Airport/Seaport Fire Rescue Station and Regional Technical Rescue Station No. 17 2300 S.W. 42nd Street, Dania The Airport/Seaport Fire Rescue Station, located within Ft Lauderdale-Hollywood International Airport property, is a 16,103 square-foot facility that opened in August 2008. The station has three apparatus bays and accommodates ten personnel. The station provides fire rescue services to the Ft Lauderdale-Hollywood International Airport and Port Everglades and regional emergency response to incidents involving aircraft and marine vessels. The site also includes a 26,000 square foot logistical warehouse.


Construction Review

Fire Rescue Station No. 17/27 2610 SW 40th Avenue, West Park Fire Rescue Station No. 17/27 is a 12,241 square-foot facility which opened in February 2009 to service the cities of Pembroke Park and West Park. The station has nine personnel and three apparatus bays that accommodate Advanced Life Support (ALS) Engine and ALS Rescue units.

Project Design On June 29, 2004, Broward County contracted for design consultant services for the four fire station projects. The four professional services agreements, including subsequent amendments, totaled $1.3 million. The contract amounts for design costs by station are shown in Table 1 below:

Table 1 Broward Fire Station Projects

Design Contract Costs By Station

Everglades 17/277

Air/Seaport Hazmat Total [Note 1]

Basic Design Fees $ 79,524 $197,375 $ 294,108 $ 462,330 $1,033,337

Optional Services 41,800 75,725 73,380 98,250 289,155

Reimbursable 4,000 3,750 2,000 2,000 11,750

Total Design Contract Fees $ 125,324 $ 276,850 $ 369,488 $ 562,580 $1,334,242 Source: Prepared by Office of the County Auditor Note 1: Actual design costs were approximately $1,456,000

The Basic Design Services for the four professional services agreements were awarded as a lump sum. “Work Authorizations” were used to approve funding for changes to the scope of work using the Optional Services amounts in the agreements. The scope of work for each of the four contracts required the Consultant to:

1. Provide complete professional architectural, engineering and other professional design services, all necessary personnel, equipment, and materials to perform services,

2. Complete the design services in accordance with the project schedules,

3. Complete services that will deliver a facility (or facilities) within the County’s established budget for the project, and

4. Participate in the [County’s] programs of value engineering and constructability reviews during the Schematic Design, Design Development, and Contract Document phases of the project.

7 The initial contract for Fire Rescue Station 17/27 was for renovation of the existing station and was subsequently amended to

require design services for a new fire station.


Construction Review

Pre-Construction The fire stations built by Broward County were procured using the CM@Risk model. Under this delivery model the Managing General Contractor (MGC) is selected based on qualifications and experience, before project design is completed. On September 15, 2005, the Director of Purchasing executed four MGC agreements, to provide pre-construction services for the fire station projects above. The agreements totaled $150,000. The scopes of services included estimating, scheduling, constructability analysis, value engineering, subcontractor prequalification and other pre-construction services. Generally preconstruction services allow the managing general contractor and the design firm to work collaboratively during the design phase.

Project Construction In December 2006 the Board executed three agreements with the MGC and later in December 2007 approved a fourth agreement to provide services to build the fire station projects designed by the Consultant, as noted above. Under the agreements, the MGC agreed to furnish labor, materials, equipment, services, and incidentals necessary to perform work described in the contract documents8 for a total Guaranteed Maximum Price (GMP9) of $32.4 million. A summary of the GMP contract price elements are shown in Table 2 below.

Table 2 Broward County Fire Station Projects

Summary of GMP Construction Contract Price Elements

Contract Price Elements Everglades 17/27 Air/Seaport Hazmat Total

Estimated Direct Construction Cost $4,016,182 $4,548,668 $10,686,055 $6,715,763 $25,966,668

Contractor’s General Conditions 212,138 451,002 305,620 283,362 1,252,122

Contractor’s Management Services 348,589 501,376 443,231 380,281 1,673,477

Contractor’s Fixed Fee (4%) 274,615 302,558 571,745 368,970 1,517,888

Document Completion Allowance 100,405 113,717 267,151 167,894 649,167

Construction Contingency for Direct Costs 120,485 136,460 320,582 201,473 779,000

County’s Allowance Account 80,324 90,973 213,721 134,315 519,333

TOTAL GMP $ 5,152,738 $ 6,144,754 $12,808,105 $8,252,058 $32,357,655

Source: Article 9.1 of the Managing General Contractor Agreements between Broward County and the MGC.

8 Contract documents include drawings, specifications, and addenda.

9 Article 2, Definitions, Section 2.16 of the Managing General Contractor Agreements define the GMP as the amount

negotiated by the County and the Contractor as payment for the complete construction of the project which shall include but not be limited to all profits, on-site and off-site conditions and administrative costs.


Construction Review

Subcontractor Selection and Award Process The MGC administers the bid solicitation process to award construction work to subcontractors. The MGC determines each bidder’s responsiveness and responsibility, experience, ability to perform and conformance to the project schedule. The MGC also:

Tabulates the bid responses, including an assessment for certified minority participation, Recommends a contractor for each scope of work, Seeks approval from the Consultant and Contract Administrator, and Executes contracts with approved subcontractors.

Project Management County staff in the Construction Management Division are responsible for:

Monitoring progress of the projects through site visits, meetings, etc., Reviewing and approving pay applications submitted by the MGC and Consultant, Managing CPEAMs and work authorizations for optional services and scope changes

within the construction and design contracts, and Maintaining ongoing contact with the MGC and the Consultant.

Procurement Methods used by Other Local Governments: The City of Hollywood utilized the CM@Risk procurement model described on pages 7 and 8 under preconstruction, project construction, and subcontractor selection and award, while City of Ft Lauderdale and Miami-Dade County used the following procurement methods:

Design-Bid-Build: The City of Ft Lauderdale used the Design-Bid-Build model, also referred to as “hard bid” which involves three distinct phases. First, an architect/engineer is employed to develop the project design, including drawings, plans and specifications. After design is complete, construction drawings and specifications are used to solicit bids from MGCs. Typically, the lowest responsive bidder is awarded the contract. Once selected, the MGC is responsible for obtaining bids and executing agreements with subcontractors.

Design-Build: Miami-Dade County used the Design-Build construction model. This procurement method uses a consultant to prepare a Design Criteria Package for the selection of a general contractor and an architect, who collaborate to provide project design and construction services. Both the architect and general contractor are hired together and work as a team to develop construction drawings, specifications, and solicit and hire subcontractors for construction.


Construction Review

Observations and Recommendations

According to building construction industry literature, performance indicators that are commonly used to evaluate construction project success10 include:

Meeting customer needs,

Achieving operational efficiency,

Controlling construction costs,

Monitoring project timelines, and

Ensuring quality construction.

This review focuses on analysis of the costs of four fire station projects built by Broward County.

Specifically, we benchmarked the average cost per square foot11 of these facilities to functionally

comparable fire stations recently built by other local governments.

To improve comparability of costs, we analyzed the respective cost elements of each fire station and excluded the land acquisition costs, and major dissimilar items including the logistic warehouse at the Air/Seaport fire station, fueling equipment at the Broward stations, and the fire wells at the Everglades station. Design costs for the Broward stations were added to the total adjusted cost because fire stations built by other local governments included design costs. Then we adjusted each comparable fire station’s cost, as appropriate, to eliminate the effects of inflation caused by different construction contract award dates. Also see summary at Appendices C and D at pages 20 and 21.

Observations

The average cost per square foot of Broward County’s fire stations exceeded the average cost per square foot of comparable local facilities by 45%.

Cost per square foot is generally used in the construction industry to assess cost-effectiveness of construction projects. We benchmarked the average cost per square foot (i.e. total construction cost divided by total square footage) of the four Broward County fire stations, to seven comparable (i.e. similar function) local fire stations built by Miami-Dade County and the cities of Ft Lauderdale and Hollywood. For a detailed description of the methodology we used to identify comparable fire stations, to calculate the average cost per square foot, and to compare data to the other local governments’ construction costs, refer to Appendix B, page 18.

10 For reference, see Office of the County Auditor Report No. 10-13, Program Performance Review of Construction

Management Division within Public Works Department, dated April 1, 2010 11 According to RS Means, cost per square foot is a commonly used performance indicator of a construction project’s cost-

effectiveness


Construction Review

Our analysis indicates the average cost per square foot of the four Broward County fire stations is $490. This is 45% more than the average cost per square foot of $337 for the seven comparable fire stations reviewed. Exhibit 1 below compares the average cost per square foot of Broward’s four fire stations to the seven local fire stations.

Exhibit 1 Total Average Cost per Square Foot

Broward vs. Comparables

Source: Prepared by Office of the County Auditor

Broward’s cost per square foot ranges from a low of $437 for the Air/Seaport station to a high of $639 for the Everglades station. These costs are higher than the range of costs for the other local facilities. The average cost per square foot for the comparable facilities range from $290 for the three 2-bay stations in Miami-Dade to $382 for the three 3-bay stations built by Miami-Dade County and the City of Hollywood. See Exhibit 2 on page 11.


Construction Review

Exhibit 2 Cost per Square Foot by Type

Broward costs are higher than Comparables


As shown in the chart above, Broward’s cost per square foot for each of the three facility types is also higher than comparable facilities:

For the 2-bay fire station, Broward’s Everglades cost per square foot of $639 is 120% higher than the average cost per square foot of $290 for comparable facilities,

For the 3-bay stations: o Broward’s Air/Seaport cost per square foot of $437 is 23% higher than the average

cost per square foot of $355 for comparable facilities, o Broward’s Station 17/27 cost per square foot of $481 is 26% higher than the

average cost per square foot of $382 for comparable facilities, and

For the 4-bay station, Broward’s Hazmat cost per square foot of $481 is 51% higher than the cost per square foot of $318 for the comparable facility.

Broward’s construction costs exceeded comparable facilities by 84%.

We compared costs for Broward’s four stations to average construction costs for the seven local facilities, by type of facility. We found that Broward’s costs exceeded the comparable facilities’ costs for each of the three facility types:

For the 2-bay station, Broward’s Everglades cost of $4.87 million is 139% higher than the

average cost of $2.04 million for comparable facilities,

For the 3-bay stations:

o Broward’s Air/Seaport cost of $7.04 million is 99% higher than the average cost of

$3.54 million for comparable facilities,


Construction Review

o Broward’s Station 17/27 cost of $5.89 million is 55% higher than the average cost

of $3.81 million for comparable facilities, and

For the 4-bay station, Broward’s Hazmat cost of $8.39 million is 73% higher than the cost

of $4.84 million for the comparable facility.

Table 3 below illustrates the differences in costs between Broward’s fire stations and comparable facilities by type.

Table 3 Costs by Facility Type

Broward’s fire station costs are higher than Comparables (In Millions)

No. of

Bays Broward Fire Stations Broward

Cost

Average Cost of

Comparables Cost

Difference Percentage Difference

2 Broward Everglades $4.87 $2.04 $2.83 139%

3 Broward - Air/Seaport - FS 7.04 3.54 3.50 99%

Broward - 17/27 (West Park) 5.89 3.81 2.08 55%

4 Broward - Hazmat 8.39 4.84 3.55 73%

Total $26.19 $14.23 $11.96 84%


Broward’s total square footage exceeded the average square footage of comparable facilities by 27%.

We analyzed facility size or building square footage, and found that Broward’s fire stations were 27% larger than comparable local facilities:

For the 2-bay station, Broward’s Everglades square footage of 7,622 is 9% greater than the average square footage of 7,020 for comparable facilities,

For the 3-bay stations: o Broward’s Air/Seaport square footage of 16,103 is 61% greater than the average

square footage of 9,973 for comparable facilities, o Broward’s 17/27 (West Park) square footage of 12,241 is 23% greater than the

average square footage of 9,973 for comparable facilities, and

For the 4-bay station, Broward’s Hazmat square footage of 17,450 is 14% greater than the square footage of 15,242 for the comparable facility.


Construction Review

Table 4 below illustrates the differences in square footage between Broward’s fire stations and comparable facilities by type.

Table 4 Square Footage by Facility Type

Broward’s square footage is greater than all Comparables

No. of Bays

Broward Fire Stations Broward Square Footage

Average Square

Footage of Comparables

Difference in Feet

Percentage Difference

2 Broward Everglades 7,622 7,020 602 9%

3 Broward - Air/Seaport - FS 16,103 9,973 6,130 61%

Broward - 17/27 (West Park) 12,241 9,973 2,268 23%

4 Broward - Hazmat 17,450 15,242 2,208 14%

Total 53,416 42,208 11,208 27%


CMD managers explained, but did not quantify, the reasons for Broward’s higher costs.

In response to our request that they provide reasons for Broward’s higher costs, Construction Management Division managers stated the following:

The remote project site for the Everglades fire station resulted in extended travel time impacting the cost of materials and labor,

The clearance for Broward’s apparatus bays is higher than Miami-Dade12 ,

FDOT required the County to match aesthetics of the adjacent rest area building by using the same metal roof and color schemes for the Everglades station and the City of West Park required the County to match the aesthetics of the adjacent community, i.e. landscaping,

Broward County facilities utilized better finishes13 and building equipment such as air conditioner, kitchen equipment, etc. that will result in longevity and reduced future maintenance,

The Hazmat station was built on a larger site with greater site work costs compared to the Fort Lauderdale 4-Bay station, and

Unprecedented cost increases14 in the construction industry.

Although requested to submit documentation to validate these assertions, and quantify the cost differential for each assertion, CMD management had not provided us with such documentation

12 Our analysis indicates the height of the Broward County apparatus bays is the same as the cities of Hollywood and Fort

Lauderdale. 13

Finishes include architectural features, polished concrete flooring, and hurricane resistant windows. 14

Construction Management Division provided the Construction Cost Index information for the Ft. Lauderdale region.


Construction Review

as of August 18, 2011, except for the information relative to the construction cost index. This index was used to adjust fire station costs, see Appendix B at page 18.

Recommendations:

We recommend the Board of County Commissioners direct the County Administrator to take steps to ensure:

1. Cost proposals of future County projects are evaluated based on functionality and costs

of comparable projects completed by others, and

2. Adequate justification is provided for enhancements exceeding minimum standards or

requirements including life cycle cost analysis15, when applicable.

15 National Institute of Building Services defines Life Cycle Cost Analysis (LCCA) as follows: LCCA is a method for

assessing the total cost of facility ownership. It takes into account all costs of acquiring, owning, and disposing of a building or

building system. LCCA is especially useful when project alternatives that fulfill the same performance requirements, but differ

with respect to initial costs and operating costs, have to be compared in order to select the one that maximizes net savings. For

example, LCCA will help determine whether the incorporation of a high-performance HVAC system, which may increase

initial cost but result in dramatically reduced operating and maintenance costs, is cost-effective or not.


http://www.wbdg.org/resources/hvac.php?r=lcca

Construction Review

APPENDIX A Photos of Broward Fire Stations and Comparables from Miami-Dade, Ft Lauderdale and

Hollywood Listed By Type

2- Bay Stations

Broward County - Everglades

Miami-Dade County – Port of Miami (Number 39)

Miami-Dade County – Trail (Number 61)


Construction Review

APPENDIX A - Continued

3- Bay Stations

Broward County – Air/Seaport

City of Hollywood (Number 5)

City of Hollywood (Number 31)


Construction Review

APPENDIX A - Continued

3- Bay Stations – Continued

Miami-Dade County – Village of Homestead (Number 66)

4- Bay Stations

Broward County – Hazmat

Fort Lauderdale (Number 47)


Construction Review

APPENDIX B Methodology for Comparison of Fire Stations Built by Other Local Governments

In order to evaluate the construction costs of the Broward fire stations, we identified seven fire stations built by other local governments in South Florida between 2005 and 2008. Recognizing that no two fire stations are identical we focused on similar functionality by grouping fire stations with the same number of apparatus bays.16 The following table shows the fire stations grouped by number of apparatus bays.

Number of Apparatus

bays

Broward County Stations

Comparable Fire Stations Built by Other Local Governments

2 Everglades Miami-Dade Number 61 Miami-Dade Number 65 Miami-Dade Port Number 39

3 Air/Seaport, and

17/27 (West Park)

City of Hollywood Number 5

City of Hollywood Number 31 Miami-Dade Number 66

4 Hazmat City of Fort Lauderdale Number 47


To improve comparability of costs, we analyzed the respective cost elements of each fire station and excluded the land acquisition costs, and major dissimilar items including the logistic warehouse at the Air/Seaport fire station, fueling equipment at the Broward stations, and the fire wells at the Everglades station. Design costs for the Broward stations were added to the total adjusted cost because fire stations built by other local governments included design costs. Then we adjusted each comparable fire station’s cost, as appropriate, to eliminate the effects of inflation caused by different construction contract award dates.

Finally, we computed the cost per square foot based on the adjusted costs for the individual stations and an average cost per square foot for all comparable groups (2-bay, 3-bay, etc.). The following provides further details of our adjustments and calculations.

Calculation of Average Construction Cost per Square Foot

Adjustment for Construction Cost Index During the period between 2005 and 2008 the Construction Cost Index (CCI)17 for the Ft. Lauderdale area increased annually at a rate of 7.55%. In order to account for cost escalation between construction award dates, we adjusted reported costs for the seven comparable fire stations above to reflect the effects of the CCI index as of the award dates for the Broward fire stations. For example, the adjustment for a 2-bay station was calculated as follows:

16 Fire stations apparatus bays typically provide parking or servicing area within the fire station structure for emergency

equipment including fire trucks or EMS equipment and or special equipment 17

The Construction Cost Index measures changes in the cost of construction over time


Construction Review

The construction award date for Miami-Dade’s Station Number 61 was December 23, 2005, approximately 1 year prior to the December 5, 2006 award date for the Broward Everglades fire station. Using the 7.55% CCI rate, we recalculated the total project cost for Station 61 from $1,654,696 to $1,773,251 to reflect the increased cost due to the Construction Cost Index as of December 5, 2006.

Calculation of Average Adjusted Cost and Square Footage In addition to adjusting the costs to reflect the CCI, we calculated the average cost for fire stations when more than one comparable station was analyzed. To arrive at the average cost we added the total cost adjusted for the CCI for all fire stations with the same number of apparatus bays and divided the result by the number of fire stations (in the example below the average cost is $6,114,986 divided by 3 = $2,038,329).

To calculate the average square footage we added the building square footage (area) for the fire stations and divided the total by the number of fire stations (in the example below the average square footage is 21,061divided by 3 = 7,020).

Example: For the 2-bay stations:

Adjusted Cost Building Area 2-Bay Stations for Comparisons (Sq Ft)

Miami-Dade - Number 61 $1,773,251 6,960

Miami-Dade - Number 65 2,068,565 7,065

Miami-Dade - Port Number 39 2,273,170 7,036

Total $6,114,986 21,061

Average Adjusted Cost & Sq Ft. $2,038,329 7,020


Calculation of Cost per Square Foot After computing the averages above we calculated the cost per square foot by dividing the average adjusted cost by the average building square footage. For example: Using the 2-Bay stations above the cost per square foot is $290 or $2,038,329 divided by 7,020.

We then compared the following data:

Total Adjusted Cost for Broward fire stations to the average adjusted cost for comparable fire stations,

Cost per Square Foot for Broward fire stations to the average cost per square foot for comparable fire stations, and

Square Footage (area) for Broward fire stations to the average square footage for comparable stations.


Construction Review

APPENDIX C Summary Information - Broward Fire Station and Comparables

No. of

Bays Fire Stations Construction Award Date

Occupancy Date Original Cost

Broward Adjusted Cost

[Note 1]

Adjusted Cost for

Comparables [Note 2]

Bldg. Area (SqFt)

Cost per SqFt

2 Broward - Everglades 12/5/06 Aug-08 $ 5,275,656 $ 4,873,632 7,622 $639

2 Miami-Dade - No. 61 12/23/05 Jul-07 1,654,698 $1,773,251 6,960 2 Miami-Dade - No. 65 5/9/06 Dec-07 1,983,730 2,068,565 7,065 2 Miami-Dade - Port No. 39 2/17/05 Jun-07 1,994,434 2,273,170 7,036

Average SqFt & Cost of Stations used for Comparison 2,038,329 7,020 $290

3 Broward - Air/Seaport [Note 3] 12/5/06 Aug-08 $ 7,133,122 $ 7,040,186 16,103 $437

3 City of Hollywood - No. 31 1/15/07 Nov-07 4,121,014 4,087,458 9,729 3 City of Hollywood #5 1/16/08 Dec-08 4,553,438 4,198,476 11,037 3 Miami-Dade - No. 66 12/29/05 Oct-07 2,172,200 2,325,047 9,153


3 Broward - 17/27 12/11/07 Feb-09 $ 6,123,328 $ 5,886,293 12,241 $481

3 City of Hollywood - No. 31 1/15/07 Nov-07 4,121,014 4,401,324 9,729 3 City of Hollywood #5 1/16/08 Dec-08 4,553,438 4,520,867 11,037 3 Miami-Dade - No. 66 12/29/05 Oct-07 2,172,200 2,503,582 9,153


4 Broward - Hazmat 12/5/06 Aug-08 $ 8,570,832 $ 8,385,730 17,450 $481

4 Ft. Lauderdale - No. 47 7/10/06 Mar-08 4,700,951 4,841,759 15,242 $318

Total Broward County Square Footage & Cost $ 26,185,841 53,416 $490 Total Comparative Averages Square Footage & Cost $ 14,225,672 42,208 $337


Note 1: Amount excludes cost of the fire wells at the Everglades station and the fueling equipment at all four Broward stations. Note 2: Cost for comparable stations adjusted to the contract award dates of the respective Broward stations at an annual Construction Cost Index rate of 7.55%. Note 3: Amounts for Broward County Air/Seaport fire station exclude the cost and square footage of the logistic warehouse.


Construction Review

APPENDIX D Comparison of Fire Stations

Costs Per Square Foot by Type



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