by Bradley Parsons
Staff Writer
The project manager for the City’s library construction said Wednesday the City could save up to $600,000 by buying materials directly for its branch library projects.
Rex Holmlin said the Direct Purchase Program has already saved the City about $1 million on building materials for the Main Library. The City does not have to pay sales tax and saves money by buying big-ticket items directly rather than purchasing them through contractors. When contractors buy the items, the cost of the sales taxes is passed on to the City, said Holmlin.
“This is really a situation where everybody wins,” said Holmlin. “It saves the taxpayers money in how much the projects cost, and the contractors like it because it doesn’t tie up their working capital.”
When contractors front the costs, Holmlin said, they often have to
wait for City paperwork before they are reimbursed. The direct purchases free contractor money for actual construction.
The direct purchases are reserved for particularly expensive expenditures like air conditioning equipment, ductwork, structural steel and concrete.
The City is still in the process of identifying contractors for the branch library projects. When they are found, Holmlin said it shouldn’t be too difficult to get them to go along.
Although the purchases will require more paperwork at construction’s beginning, Holmlin said the contractors should enjoy the extra working capital.
By saving money on construction costs, Holmlin said the City should have extra funds to outfit its libraries.
“If you think about a library book costing about $25, that’s almost 24,000 books we could buy just from what we save on the main branch,” said Holmlin. “Add what we hope to save on the branch libraries and we should be that much better off. That’s been a major focus of Mayor [John] Peyton: exceeding expectations.”
Holmlin said the direct purchases are already a feature of most Better Jacksonville Plan projects, including the Baseball Grounds of Jacksonville and the new Veterans Memorial Arena.