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Cost of new county prison soars

Estimate swells to $41.4 million and counting

Butler County officials hope the new county prison project doesn't balloon past $45 million, well above the original estimate.

When the county first borrowed money in 2003 for the project, the cost was estimated at $30 million. That figure inflated to $40 million in late 2005.

Now, the contracted cost for construction is pegged at $41.4 million.

However, that number doesn't factor in associated expenses such as parking issues, building a new secure vehicle entrance to the government center or legal fees and judgments.

"This $41.4 million is the starting point," said county Controller Jack McMillin at Tuesday's prison board meeting.

He stressed expenses connected to the construction have yet to be determined, preventing an accurate projection of the total cost.

Commissioner Dale Pinkerton, board chairman, agreed.

"I don't think it will be any higher, hopefully, than $45 million," Pinkerton said after the meeting. "We have some unknowns."

To safely drive inmates from the new prison on South Washington Street the short distance to the government center walkway leading to the courthouse, there must be a new vehicle sallyport, or secure entrance, built behind the government center.

County officials also have yet to devise a permanent solution to the city zoning requirements for parking. The county does not own sufficient parking space for the new building.

Legal expenses loom as well. The county is named as a defendant in three lawsuits involving the project.

In one suit filed in April, the project's former general contractor, A.G. Cullen Construction of Pittsburgh, sued the county for $3.8 million.

One of Cullen's former subcontractors, Cost Co. of Forest Hills in Allegheny County, sued the county, Cullen and Cullen's insurer, Travelers Casualty & Surety.

In federal court, Travelers sued Cullen, and the county is named a defendant.

The county is paying two law firms — Dillon, McCandless, King, Coulter & Graham of Butler and Burns, White & Hickton of Pittsburgh — to handle the legal issues surrounding the project.

Cullen walked off the job in December, citing a payment dispute with the county.

Rycon Construction Inc. of Pittsburgh was hired in May to finish the job.

Warden Rich Gigliotti said a new construction schedule is not set, so the county doesn't know if the proposed April 14, 2009, completion date has been pushed back. The original deadline was Oct. 13, 2007.

This latest completion date was jeopardized by the recent holdout of two other prime contractors, Clista Electric and Wayne Crouse, for more money to resume work. The companies stated they would lose money if the county didn't pay them additional funds.

But following negotiations, the companies lowered their initial demand of $1 million each by about $750,000.

While waiting for other costs to be determined, some county officials question whether there even is an accurate estimate for new furniture.

Judge Timothy McCune asked if the $401,553 budget for items including furniture is a realistic figure.

Gigliotti said the prison transition team is finalizing what is needed for the new building.

"It's a long, painstaking process," he said.

Sheriff Dennis Rickard answered McCune's question.

"Is that a realistic number? The answer is no," Rickard said.

Commissioner Jim Lokhaiser agreed.

"We're not even close," he said.

Lokhaiser complained officials worry too much about what is put in the prison.

"It's a dang jail," he said. "It's not a Hilton hotel."

McMillin pointed out the worst scenario facing the project is the county running out of money. The county is paying for the project with borrowed funds.

Chief county clerk Bill O'Donnell, who oversees the county budget, was on vacation and did not attend the meeting.

The new prison, which will have space for 512 inmate beds, will replace the current prison on Vogely Street, which housed 139 inmates as of Tuesday.

The temporary prison annex in the city tier garage had 42 inmates, with another 80 housed in other county prisons.

The commissioners were scheduled to vote today on requesting bids for 400 inmate mattresses for the new prison.

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