Demolition Management and MonitoringDemolition Management and Monitoring LLT Board – Financial Update

October 11, 2010,

1

Current Property Inventory 10,404*◦ 10 213 at last amendment◦ 10,213 at last amendment◦ Increase of 191 since April 11, 2010◦ 10 593 projected total LLT inventory by March 201110,593 projected total LLT inventory by March 2011◦ Inventory increase of 1,097 properties (12%) since

February 2009

48% - Properties in Orleans Parish 42% - Properties in St. Bernard 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 2009.

2

Demolition Progress Schedule

Parish 9‐Mar‐09

6‐Ap

r‐09

4‐May‐09

1‐Jun‐09

29‐Jun

‐09

27‐Jul‐09

24‐Aug

‐09

21‐Sep

‐09

19‐Oct‐09

16‐Nov

‐09

14‐Dec‐09

11‐Jan

‐10

8‐Feb‐10

8‐Mar‐10

5‐Ap

r‐10

3‐May‐10

31‐M

ay‐10

28‐Jun

‐10

26‐Jul‐10

23‐Aug

‐10

20‐Sep

‐10

18‐Oct‐10

15‐Nov

‐10

13‐Dec‐10

10‐Jan

‐11

7‐Feb‐11

7‐Mar‐11

Orleans

St. Bernard 240

Jefferson 1 3 3

Plaquemines 5 6 1

8 Week+ EPA/LDEQStormwater Issue Delay

Northeast 33 4 3

West 9 8 4

Central 7 1 1

C

3

Cameron

Scattered release of properties following initial contract 

completion (# of properties released / month).

Parish/ Total Slab/ Flatwork Structures Total

Completed Percent Area Available* Flatwork

Completed Completed Completed Demo’s Complete

Orleans 2,320** 1,071 1,006 2,077 90%,

St. Bernard 4,338 3,862 21 3,883 90%

Other Parishes 816 428 362 790 97%

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.**S t t till i NCDC l d l t d E i t l R d (OCD)

4

**Some structures still require NCDC approval and completed Environmental Record (OCD).

All currently assigned LLT abatements, demolitions, and slab removal will be stopped immediately

No additional properties will be assigned No additional properties will be assigned Closeout documentation will be left

incompleteincomplete Project office closed Storm Water compliance inspections cease Storm Water compliance inspections cease

immediately (compliance inspections assumed by LLT)

Additional costs for contractor demobilizations will be incurred

5

Approximately 700 properties will remain pp y p pincomplete and require disposition as follows: Incomplete Property Clearance◦ City / Parish acceptance of incomplete properties

C t t t t l f ti◦ Cost to re-contract clearance of properties◦ Close and reopen files to complete clearance

Contract termination expenses Contract termination expenses Eligibility of termination expenses for grant

fundingfunding

6

Approximately 1000 storm damaged properties willApproximately 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◦ 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 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)◦ 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

All currently assigned LLT properties will complete demolition

No additional properties will be assigned for demolitiondemolition

Closeout documentation completed All project files delivered to LLT All project files delivered to LLT Project office closed Storm Water compliance inspections cease at Storm Water compliance inspections cease at

closeout (compliance inspections beyond December 31 assumed by LLT)

8

Approximately 1000 properties will remain and req ire disposition as follo srequire disposition as follows: Property Transferred “As Is” to City/Parish ◦ “As Is” transfer subject to City/Parish approval in accordance with

A i PlAction Plan◦ City responsible for maintenance and disposition

Property Transfers as a Demolished Property (d l f 2 0 d )(delay of 240 days)◦ Procure a Management Firm (60 – 90 days)◦ Develop and Prepare Bid Package(s) (60 - 90 days)

P D li i C (30 60 d )◦ 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)◦ Re-Introduction to Outside Process Costs (LDEQ, NORA, NCDC)◦ Maintenance of Properties Costs extended

9

All currently assigned LLT properties will complete demolition

Additional properties accepted at current rate through December 31 2010through December 31, 2010

Anticipated assignment of 100 properties per month for demolitionmonth for demolition

Closeout documentation completed All project files delivered to LLT All project files delivered to LLT Project office closed Storm Water compliance inspections cease at p p

closeout (compliance inspections beyond March 31 assumed by LLT) 10

Approximately 700 properties will remain and i di i i f llrequire disposition as follows:

Property Transferred “As Is” to City/Parish ◦ “As Is” transfer subject to City/Parish approval in accordance with

A i PlAction Plan◦ City responsible for maintenance and disposition

Property Transfers as a Demolished Property (d l f 240 d )(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)◦ 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)Re Introduction to Outside Process Costs (LDEQ, NORA, NCDC)◦ Maintenance of Properties Costs extended

11

All currently assigned LLT properties will complete demolition by December 31 2010demolition by December 31, 2010

All remaining eligible properties will be tasked for demolition by LLT by December 31, 2010 (approx. 1000 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 Closeout documentation completed All project files delivered to LLT Project office closed Storm Water compliance inspections cease at closeout Closeout complete by May 15, 2011

12

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) Procure Demolition Contractors (30 – 60 days) Completes all LLT inventory tasked for demolition Reduces on-going LLT security and maintenance Reduces on going LLT security and maintenance

costs Completes all LLT goals for properties prior to

di itidisposition

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Summary of Closeout Scenarios(Management Costs)(Management Costs)

Average

Scenario

e ageMonthly

ExpenditureDemolitions Completed Cost at Completion

Completion Date

1 $0 6750 $26,192,000 Oct 2010

2 $413 000 7500 $27 432 000 D 20102 $413,000 7500 $27,432,000 Dec 2010

3 $413 000 7800 $28 671 000 Mar 20113 $413,000 7800 $28,671,000 Mar 2011

4 $856,250 8500 $33,043,000 Mar 2011

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4 $856,250 8500 $33,043,000 Mar 2011

Expenditure & Production Rates Versus Time1000$1,400,000.00

800

900$1,200,000.00

ProjectedOct 2010 Dec 2010

500

600

700

$800,000.00

$1,000,000.00

nt C

osts

PropertieScenario 4

300

400

500

$400 000 00

$600,000.00

Man

agem

enes Com

plete

100

200

$200,000.00

$400,000.00

Scenario 1

Scenario 3

S i 2

Actual

0$-

1 - 19 20 21 22 23

Scenario 1 Scenario 2

Project MonthsScenarios

Average Monthly Expenditure

Demolitions Completed

Cost at Completion

15

––––Management Costs / month (Actual)------Management Costs / month (Projected)––––Demolitions Completed / month (Actual)------Demolitions Completed / month (Projected)

p p p1 $0 6750 $26,192,0002 $413,000 7500 $27,432,0003 $413,000 7800 $28,671,0004 $856,250 8500 $33,043,000

Detailed CDM Budget for Scenario 4Task Category Amend. 3 Amend. 4 Difference Description

Permitting $ 2,218,683 $ 2 999 000 $ 781,000

Increased inventory. More time/effort on NCDC permits. More resistance to demo versus preservation. More NCDC hearings to present smaller numbers of e tt g $ , 8,683 $ 2,999,000 $ 781,000 g papplications. 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.

Utilit Di ti I d i t L l di t f tilitUtility Disconnection Coordination $ 447,980 $ 509,000 $ 61,000 Increased inventory. Larger scale disconnects from utility

providers.

Asbestos Air Monitoring $ 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.

Demo Monitor. (including abatement) $ 7,580,878 $ 10,405,000 $ 2,825,000

Increased inventory. Request by St. Bernard Parish authorities to increase level of monitoring. Also, lost efficiency due to smaller batches of demo’s in New Orleans. QA/QC costs for 100%. Under estimated cost for storm water compliance.

Contract Procurement $ 3 894 956 $ $ (271 000)Increased inventory. Recent trend toward larger contracts (l titi f LLT ti t t)Contract Procurement

& Management $ 3,894,956 $ 3,624,000 $ (271,000) (larger quantities of LLT properties per contract). Efficient management of contract.

NORA Coordination $ 1,145,120 $ 1,918,000 $ 773,000

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 versusproperties quickly. More resistance to demo versus rehabilitation

Survey & Site Screening $ 1,127,304 $ 1,601,000 $ 474,000 Increased inventory. More problems with boundaries and

incorrectly identified properties. Litigation prevention.

Totals $26,192,000 $ 33,043,000 $ 6,851,000 16

Cost Category Previous Assumptions Projection Cost Projection

Major Cost Differences from Amendment 3Cost 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 10213 10593 $ 1,770,000 ERR Assistance to OCD None necessary CDM asked to provide ERR research & documentation

for outlying Parish's $ 56 000for outlying Parish s $ 56,000

QA/QC - 100% Accountability/AuditingLLT would perform QA/QC auditing on CDM and demo contractors invoices

CDM asked to provide extensive preliminary QA/QC auditing of all invoices. $ 380,000

eGrants Management LLT managed much of eGrantsIncreased numbers of demo's result in much more time managing eGrants (e.g. processing and uploading substantial completions) $ 310 000uploading substantial completions) $ 310,000

NORA Management End on August 30 Extend until March 2011 $ 330,000

SHPO Management LLT & NORA handling most issues

CDM coordinated all aspects including: historic assessment, deconstruction planning and contract specifications, attend meetings, SHPO, HDLC, LLT, NORA. $ 300,000 ,

HRQL Management Minimal coordinationMore extensive coordination, daily report generation, weekly meetings, Commission meetings, joint approval of completes. $ 50,000

New Orleans City Council Recovery Committee - NFIP Compliance Didn't exist Multiple meetings, council presentation, position

papers, extensive mapping, elevation surveying $ 270,000 R i it ( I d it b th i b d tiSt. Bernard Debris Monitoring Roaming monitors (one per contract)

Increased monitor presence both in numbers and time 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 S bt t l $ 6 851 000

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Subtotal $ 6,851,000 Previous Contract Amount $ 26,192,000

Projected Contract Amount $ 33,043,000

Amendment ComparisonsOriginal Contract Amend. 1 Amend. 2 Amend. 3 Amend. 4Description Original Contract

(01/07/09)Amend. 1(03/11/09)

Amend. 2(02/10/10)

Amend. 3(08/06/10)

Amend. 4(Proposed)

# of Properties 5,800 9,307 9,837 10,213 10,593

Develop policies and Scope Clarification Inventory increase Inventory increase Inventory increase

ork

oversight procedures Scope Clarification Inventory increase Inventory increase Inventory increase

Budget tracking and oversight

Manage process for permits

Haz. Mat. Inspect. for all properties

Storm Water Compl. Inspections

Immediate release of remaining eligible

properties

Develop and integrateIT Identification of HHW LDEQ Coord. and

Sl b ClFund all other tasks f A d t 2

Fund all other tasks f A d 2 & 3

of W

o IT de t cat o o Slab Clearances from Amendment 2 from Amend. 2 & 3

Contact Management Demo Contractor will remove HHW

NORA Coord. for demo approvals

Increased number of contracts managed

(60)Project Closeout

Review ERRs and coordinate with OCD

Identify disposal fees and permits

NCDC Permitting Requirements

ope

o coordinate with OCD and permits Requirements

Prepare Scope for Demolitions

Demo Contractor to pay for disposal

EPA Storm Water Prevention

Prepare Bid Documents Survey & Site Verifications

Sc

Monitor all demolition contracts

Obtain permits and coordinate utilities

Quality AssuranceQuality 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

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(A) (B) (C) (D) (E)

DemolitionQuantity of Properties Anticipated Costs / Anticipated Total Actual Costs / Projected CostsDemolition

ActivityProperties(at Project

Completion)

Anticipated Costs / Property (01/2009)

pCosts based on

(B)Property through

10/2010

jto 03/2011

based on (D)*

Management 10,593 $3,000 $31,779,000 $3,120 $33,043,000 g , $ , $ , , $ , $ , ,

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 2011.

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Includes demolition of all eligible properties through March 2011.

Average C t /

% ofM t lit

ion

plet

e00 ed

for

mo 0* nspe

ctpl

ete

00 der

ratio

n75 Wor

k pl

eted

30Cost / Property

Mgmt. Costs

Dem

oC

omp

750

Prep

peD

em 800

Initi

al In

Com

p20

Fold

Prep

ar 157

No

WC

omp 33

s

Initial File Preparation $49.00

Initial Property Assessment $343.36

n A

ctiv

ities 54%LDEQ required Inspections for Asbestos

Sampling & Testing & Storm Water compliance $844.80

Coordination with LLT and Local Entity to Assign Demolition $461.80

Bid Specification Preparation $80 87

-Dem

oliti

o Bid Specification Preparation $80.87

21%

Advertise Contract, Open Bids, Recommend Award $26.96

Prepare Contracts and Review Submittals and Weekly Progress Meetings and Storm Water Compliance Review

$143.78

Pre- C p

Obtain Demolition Permit $351.21

Coordinate/Monitor Utility Disconnect (Electric, Gas, Sewer & Water) $53.83

s Prepare Abatement/Demolition/Slab Removal $106 97

o A

ctiv

ities Work Order $106.97

21%

Monitor Abatement/Structure Demo/ Slab Clearance/Removal/ Final Accept $570.95

Storm Water Compliance Inspections (30-90 days until 70% growth) $92.32

20

Dem

o 4%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.

Cost Comparison LLT vs Other Demo. ProgramsEstimated Management Average Total Equivalent Cost

Parish/Municipality Demo Cost per House

Estimated Cost of Slab*

Management Cost per House

Average Cost Per House

Total Equivalent Cost (Anticipated Work 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 $6 680 $13 591 $129 745 395Jefferson Parish FEMA $12,698 $4,233 $6,680 $13,591 $129,745,395

St. Bernard Parish FEMA* $25,829 $8,610 $3,500 $17,557 $157,053,150

C h S C S C S C S C S CCameron Parish FEMA* USACE USACE USACE USACE USACE

Average Cost* $17,323 $5,775 $6,003 $15,431 $144,059,004

A i i d W kAnticipated 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

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* 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.

22