HISTORIC ST. AUGUSTINE PRESERVATION BOARD

MEM RANDUM


TO: William R. Adams

FROM: Robert H. Steinbach f &

SUBJ: De Mesa Costs

DATE: August 1, 1979

Cost estimates were made December 1977-January 1978.

Project estimated to cost $ 108,000.00
Funds available were 101,000.00

Difference = $ 7,000.00

The $7,000 shortfall was to be made up by utilizing some of our maintenance
staff as well as CETA workers.

The problem is inflation! The project was finally approved and funds
released in June of 1979, 1 years after the date of the cost estimate.

Assuming an 8% inflation rate the project would cost:

January 1979 (one year) $ 116,600.00
January 1980 (two years) 126,000.00

The inflationary trend is reflected in the bids we have received to date:

Est. Low Bid Difference

Roof 10,000 14,400 44%

Mechanical 14,000 15,500 11%