School Building Project Estimated to Cost $13 to $16 Million More
The newest estimate for the school building project is $120.8 or $123.8 million.
The Secondary School Building Committee (SSBC) held its second public forum Thursday evening to explain why the school building project is over budget and how much more the town will need to complete the school the way it was originally designed. The range of additional funds will be $13 to $16 million.
The school building project is over budget because the original project estimate was too low, there was a change in market conditions and site challenges.
The new cost estimate is based on 90 percent complete construction documents. The range of additional cost to complete the project as originally designed is $13 to $16 million, which brings the total for the school building project from $107.8 to $120.8 or $123.8 million.
That number is still an estimate. The Guaranteed Maximum Price (GMP) will be available on March 11. According to a pamphlet handed out at the first public informational forum in February, "The GMP is the amount that the Construction Manager at-Risk guarantees the project construction cost will not exceed. The GMP includes the cost of work, plus contingency, the CM's General Conditions and Fee."
With the new estimated total for the project, the estimated tax increase, based on the average home value of $450,000, will be $155 to $190 per year.
Residents will be able to vote to approve the additional funds at Special Town Meeting on March 18 at 7 p.m. and Special Election on March 22.
If residents vote to approve the additional funds, the project will remain on schedule, items will not be removed from the budget, the MSBA will still reimburse the original amount planned and there will be no annual impact on the operating budget. The school will be built the way it was originally designed.
If residents decide not to approve the additional funds and vote against it, there could be up to a seven-month project delay at a cost greater than $400,000 per month, the project will not be constructed as it was originally designed and the following items will be removed from the budget:
- Athletic field team room building
- Audio visual equipment (projections screens, televisions, etc.)
- Auditorium lighting and stage equipment
- Motor for basketball hoops
- District office (a district office will have to go elsewhere in town and space will have to be rented)
- Gym divider curtain (divides gym into separate instructional spaces)
- Plantings (partial)
- Rubber fitness flooring
- Rubber stair treads
- Tennis courts
- Traffic Light (at the end of the access road)
- Vinyl tile flooring
- Colored concrete
- Concrete seat walls
- Granite curbing
- Marker and track boards (white boards and bulletin boards)
- Unit Pavers (Pavilion)
Since the first public forum, additional items have been added to the list of items to be removed from the budget:
- Brick building facade
- Fixed auditorium seating (free-standing chairs will be in the auditorium)
- Sports fields
- Gymnasium bleachers
- Cooling (there will be no air conditioning)
- Window coverings
- Paving top coat for parking and driveway areas
According to a presentation handed out at the meeting, the SSBC recommends the restoration of these items to meet the project mission.
"We have a problem, we need to fix it, the time to fix it is right now," School Committee member Gerald Venezia said.
The next informational forum, when the GMP will be announced, is on March 14. Special Town Meeting is on March 18 and Special Election is March 22.
Jessica
7:11 am on Friday, March 1, 2013
I forget the reason for the delay if the additional money is not given.
Kevin MacDonald
10:27 am on Saturday, March 2, 2013
The North Reading voters should be studying the CM at risk aspect of this job and that big money contracts do not have to go out for competitive bid on the State's Central Register. The taxpayers of North Reading should consider halting the project and having a combined Regional High School with Wilmington. Regardless, the taxpayers should stop allowing themselves to be gouged of out their hard earned wages.
Kevin MacDonald
10:27 am on Saturday, March 2, 2013
The North Reading voters should be studying the CM at risk aspect of this job and that big money contracts do not have to go out for competitive bid on the State's Central Register. The taxpayers of North Reading should consider halting the project and having a combined Regional High School with Wilmington. Regardless, the taxpayers should stop allowing themselves to be gouged of out their hard earned wages.
Jeff Witts
7:56 am on Friday, March 1, 2013
$400,000 per month. If the voters do not approve the additional money, then th project requires some redesign and contractor rescheduling that will delay the project 7 months. That translates to $3 million in additional costs,
Stev
8:25 am on Friday, March 1, 2013
Enough is enough !! Work within the original budget and get rid of the people who can't. So, we have now gone from $4 mil a few months ago to $13-$16 mil additionally needed for the school project. Stop this nonsense!! ....let's discuss the overage on the snow removal budget that's approaching $.5 mil and how this will be balanced.
Stev
8:26 am on Friday, March 1, 2013
Enough is enough !! Work within the original budget and get rid of the people who can't. So, we have now gone from $4 mil a few months ago to $13-$16 mil additionally needed for the school project. Stop all this nonsense !! ....let's discuss the overage on the snow removal budget that's approaching $.5 mil and how this will be balanced.
Jeff Witts
8:32 am on Friday, March 1, 2013
Stev,
Are you willing to join the committee if we get rid of them? Someone needs to do it. It is always easier to critize than understand.
JIM
8:57 am on Friday, March 1, 2013
NO MORE MONEY
pattie d
9:10 am on Friday, March 1, 2013
Sorry SSBC I have no more money to give. I am a single home owner with 4 jobs, yes 4! I can NOT come up with a single dime. The cost of food , gas, taxes, ins,, medical , cable etc have all gone up. Unless I can pay in blood, I have no more to give!( I know I am not alone in this.) I beg every homeowner to get out there this time and vote NO. We all need to live with in our budgets I suggest the schools do as well
Dante Spetter
10:32 am on Friday, March 1, 2013
I am sure there are some families for whom the additional funds feel impossible. While we all make choices where to spend, and I prefer to spend on my children's and my town's future, some really are up against a wall. I would be willing to pay a bit more, so that people could apply for an abatement of part of their share if they really cannot afford it. To apply for such funds, one would have to provide documentation of true financial need. But really, charge me $100 more per year if that is what it takes to get the school our children deserve. If you think education is expensive, try ignorance.
Jessica
11:18 am on Friday, March 1, 2013
Who determines what the level would be? Would a person have to be at poverty level to say they cannot afford higher taxes?
Jeff Witts
11:36 am on Friday, March 1, 2013
The tax impact is based on the valuation of your home and property. I am not sure about tax abatements for poverty levels.
John T
10:43 am on Friday, March 1, 2013
While I am upset that the state process allowed for an estimation to be off by this much, it doesn't make any sense to take a knee on the goal line. Some things on the list can go -- like granite curbs. Others make no sense to drop -- keep the a/v equipment, white boards/bulletin boards, put the seats/lights in the auditorium, etc.
JP Lee
10:52 am on Friday, March 1, 2013
Voting no will increase the spend, and time to completion further. The SSBC and town followed the rules as set out by the state. The initial estimates were based on the dictated requirements. Were mistakes made in the estimates? Yes. Am I happy about it? No. Have people owned up to the mistakes? Yes. Are they working as hard as they can to address the problems? In my opinion, absolutely Yes. Do they still deserve our support? Yes again, absolutely.
If the budget was presented based on 90% complete construction documents last year, I am confident the project would have still passed the vote. It will cost what it will cost. It's unfortunately more than we had originally thought. We will pay it out (or more if we vote no) one way or the other. We must vote yes again. No one likes this situation, but we need to step up to the plate and ensure the project can be completed on time, and within the final budget as outlined last night. The guarantee from the contractor will cap our final cost. This is as good as it can get.
I wish to commend the volunteers who make up the School Committee, Finance Committee, and the Secondary School Building Committee who have worked tirelessly on this project. As unhappy as I am about the situation, I support them fully and am extremely grateful for their commitment towards making North Reading a better place to live and raise our children.
Jeff Witts
10:54 am on Friday, March 1, 2013
I too am not happy with paying more.
Just keep this in mind, a no vote does not gaurantee your taxes will not go up for this project. The SSBC will be forced to make additional cuts to the project reducing educational space. The MSBA reimbusrement rate is based on size and total square footage of educational space. This will cause the reimbursement rate to drop and that money will be switched to north reading causing an increase in exempt debt. The exempt debt increase will trigger a tax rate increase due to the money lost in reimbursement from the state.
I just want people to understand this before they vote no. This may not make sense, but the cheapest solution is to vote the extra money now without delay. The Contruction Manager will gaurantee the cost of the project. That means if there are any additional overruns, they will be absorped by the Contruction Manager, not the town. This is called CM at Risk. This will also gaurantee full reimbursement from the MSBA.
Jessica
11:16 am on Friday, March 1, 2013
If the construction manager can gaurantt the cost, then why wasnt it gauranteed in the first place. I am not being snippy, I just dont understand.
Jeff Witts
11:31 am on Friday, March 1, 2013
This is confusing and it took me awhile to understand.
The intial cost was an estimate based on the design of the school at 20% completion. That is why is it cannot be gauranteed. Also, the contruction manager is not involved at this early stage of the process. They are hired once the voters approve the project.
The next question will be: "We should have waited until the design was 90% complete before we asked the voters for money" That does seem logical to me. However, the cost to the town for the 90% design would be about $8 million. If the town rejected the money, the taxpayers would have been on the hook for the $8 million.
Also, the process of cost estimating is what the MSBA approves.
John Intorcio
11:49 am on Friday, March 1, 2013
Because "in the first place", it was an ESTIMATE based on a design that was 20% complete. The design is now 90% complete and the construction manager can now much more precisely calculate a cost and include some buffer, guarantee it, and assume the risk that things won't change.
It's just like building a deck or making an addition on your house. You draw a sketch and you talk to some people and you get an estimate that it will cost $20,000. So you start to move ahead and you figure out the details of the materials you need, how deep the footings are going to be, the fact that you're going to need to move some pipes or whatever and you get a price from a contractor that's $25,000 to do the work. Estimates are just that - estimates.
Maureen Vacca
11:12 am on Friday, March 1, 2013
"If the voters do not approve the additional money, then the project requires some redesign and contractor rescheduling that will delay the project 7 months. That translates to $3 million in additional costs". THAT IS NOT ACCEPTABLE....NOR IS IT BELIEVABLE. Redesign does not take that long. The contractors & project managers should be working on some of these NOW and, in light of their contributions to this debacle, SHOULD make it a priority. Someone needs to get tougher. And yes I am speaking from experience and would be willing to get involved IF the objective is to build within the approved budget a wonderful school for all children into the future. IT CAN BE DONE.
Jessica
11:16 am on Friday, March 1, 2013
Thank you.
Jeff Witts
11:17 am on Friday, March 1, 2013
Maureen,
You should go to the meetings. Remember, the rules with the state have changed since you where invoved. The next seesion is March 11. Please go and ask these questions.
Mel Webster
12:07 pm on Friday, March 1, 2013
There are several reasons that could result in up to a 7-month delay. The two biggest being that many aspects of the project would have to be rebid, and the fact that the phasing of the project would be delayed. Because the high school completion would be delayed, then moving the middle school students to the old high school would also be delayed. This alone results in a 4-5 month delay on beginning the middle school portion of the project. As far as "building a wonderful school for all children into the future" within the approved budget -- based on everything I have seen, this absolutely cannot be done. Take a look at the items that have already been removed from the product and add in the new list of items to get us closer to the original construction cost, and without the extra money we will be building a white elephant. The process is far different today than it was when we built/renovated the elementary schools. Everything has to be done within the boundaries of the MSBA guidelines.
Sharon
1:47 pm on Friday, March 1, 2013
I wasn't at the meeting, and I'm not completely happy with the cost overruns, but this type of thing is not uncommon in the field of construction. What I am concerned with are the things that are going to be cut if an extension is not passed. No air conditioning? An incomplete auditorium? No Gym bleachers? Some of the things i wouldn't mind cutting (I really don't have a strong need for colored concrete) but some of these things shouldn't be cut. We can grumble all we want but voting no isn't going to make the construction firm suddenly say, "Oh we suddenly found a way to make everything work for the budget you have."
I am a mother of two children and making ends meet too, so I definitely can see why this is pissing people off. I'm also in an industry that deals with a lot of construction and I know that cost overruns are not uncommon. Everyone should keep in mind they aren't asking for thousands of dollars from people. The cost cited ends up being about $15/month for houses worth $450K... I'm willing to do that if it means having a school done on time and without cuts in the design.
Marci Bailey
2:44 pm on Friday, March 1, 2013
The town has a Taxation Aid Committee, which, in fact, met this morning. The Assessor's Office can help anyone who needs assistance with taxes explore available programs and fill out applications. Anyone can donate to the Taxation Aid Fund. We have had flyers in our waters bills about this, and you can call the Assessor's office to learn where to make a donation, which will help North Reading neighbors in need.
Laying blame isn't going to change the facts. For those who are concerned and have ideas, attend the meetings, talk with project leaders, and get answers.
TMJ
7:53 am on Saturday, March 2, 2013
Two questions:
I went to the first informational meeting, not the second. I could be wrong, but was 'no air conditioning' mentioned as one of the items to be cut at the first meeting? I remember thinking I could live without colored concrete, a motorized basketball hoop and district offices, but no AC is kind of a big deal. I moved here specifically for the schools, but I'd like to make sure tax payers are not being given an extra heaping of doom-and-gloom if the second increase doesn't go through.
Secondly, if the second round of funding is approved, I'd like to know how taxpayers will be reimbursed if the town does recoup money from the entities who bungled the original estimate. I'm getting the vibe that we're kind of chalking up the wrong estimate to the notion that "hey that's just what happens with construction estimates." This may very well be the case; however, in a contract/project of this magnitude, why didn't the town incorporate a safety net where the risk of this type of "run-of-the-mill' overrun was borne by the Project Manager or GC and not the town itself?
If the town can recoup money because of the overrun, how will taxpayers on the hook for a second tax increase be reimbursed?
JIM
7:57 am on Saturday, March 2, 2013
John Intorcio. what is websters definition of BAMBOOZLE ? If You paid 25% over Your original Quote for Your deck That doesnt mean that NR taxpayers should.
Mel Webster
10:28 am on Saturday, March 2, 2013
JIM -- No one is being "bamboozled." Every shred of information about this project has been made public. There are no secrets here. The original estimate from our professionals was too low and market conditions have changed significantly. Those two items make up the majority of the cost overruns. Just wondering if you have attended any of the information sessions in order to get the facts and to ask questions.
TMJ
8:34 am on Saturday, March 2, 2013
The article states items were added between the first and second public forums (my bad for reading too quickly) but it seems like air conditioning and fixed auditorium seating are fairly big ticket items the school will lack which weren't even mentioned a month ago.
Mel Webster
10:26 am on Saturday, March 2, 2013
Correct. After we got the latest estimates for the cost of the project this past Tuesday, the SSBC needed to begin developing a list of additional items to consider for elimination to get us back to the original construction budget. That is the list that proposes removing air conditioning, fixed seating in the auditorium, bleachers in the gymnasium, etc. As has been the case all the way through this process, the SSBC is looking only at items that do not affect the educational programming, as well as items that could be added back toward the end of the project and not have an impact on current construction.
malcolm nichols
10:30 am on Saturday, March 2, 2013
BAMBOOZLE? I think the word is Swindled. If you want to reduce scope to save money, it will cost more! If you want to move forward as is it will be $13mm over budget. Rock? hard place?
Mel Webster
11:48 am on Saturday, March 2, 2013
Actually, "swindled" would be even more inaccurate. I know it is fun to hurl accusations and trump up false charges, especially if one is not aware of the facts, but no one is being swindled or bamboozled or anything else. The estimate for the project was too low, the market has changed and the bids are coming in higher, and we need more money to complete the project as promised. While no one is happy about it, It's a simple concept to understand.
malcolm nichols
8:28 am on Sunday, March 3, 2013
In December, "Once the construction documents are 90 percent complete, additional value engineering may be necessary."
Seems like this has been anticipated for a long time. Just do it.
The process as indicated is mismanagement by all involved. If this was intentional to force approval of an overbuget project then "Swindle" is right on.
Jeff Witts
10:48 am on Saturday, March 2, 2013
Kevin,
I believe your are a Wilmington resident? Though a regional school is intriguing, it is too late for that.
Mel Webster
11:51 am on Saturday, March 2, 2013
And, two towns just don't decide, "Hey. We have a good idea. Let's build a regional high school." I do not support the idea, but as an FYI, forming a regional school district requires a lot of thought, a lot of planning and a lot of time, as well as approval from the state. And yes, Jeff, Kevin is a Wilmington resident.
Jeff Witts
12:02 pm on Saturday, March 2, 2013
Kevin,
Please do not tell us to halt our project when you do not live in North Reading. The plan will not be changed.
Maureen Vacca
3:32 pm on Saturday, March 2, 2013
I don't think I have to convince anyone that I support education (15 years on the school committee) and have extensive experience in school construction projects (5 years on the school building committee). Even with new MSBA regulations in place, my experience is still relevant. Construction, design plans, educational needs, etc. are still the same. In the past we were not required to have a project manager, the SBC members did that job. I spent every morning at on-site meetings during the Hood School construction project. But that's not the point...
I cannot believe that the town is not able to build a new high school & core facility & renovate the middle school...produce a more-than-adequate school facility... that will last for generations...for $107 million!
However, we are voting NO because we cannot afford the tax increase.
It's simply a matter of affordability.
It's not about trash fees, it's not about what other towns do. I understand the consequences of reducing the scope of the project.
We voted for the project knowing it would stretch our budget. We voted yes, we have made sacrifices in our personal finances. We cannot do anymore.
I hope people can appreciate that, no amount of information shared at a meeting is going to put more money in my bank account.
Mel Webster
3:46 pm on Saturday, March 2, 2013
Maureen -- have you seen what has to be cut out of the project in order to build these schools within the current budget? If you have, then I guess a "more-than-adequate-school" facility means schools with no bleachers in the gym, no chairs in the auditorium, plain concrete floors, limited lighting and other facilities in the auditorium, no additional sports playing fields (which are badly needed), no rubber flooring in one of the two fitness rooms, no audiovisual equipment, no tennis courts, no traffic light at the main entrance to the schools, etc. etc. etc. I simply do not see how that equals a "more-than-adequate school facility."
As I have said a thousand times, if people cannot afford the project, then do not vote for it. What bothers me though is those who say we can build it and it will be just fine without raising additional funds. That is dead wrong and the public needs to understand that.
JIM
8:54 am on Sunday, March 3, 2013
Mel Webster, No I havent attended any of the misinformation sessions and I will not be because most of the information seems to turn out incorrect. Lets totally eliminate both fitness rooms we dont need tennis courts nor traffic lights Atheletic field team room building etc. etc. etc. Seems like there was to much FAT in this project to start out with. How much tax money does each of these information sessions cost the town taxpayers ?
ancmay
7:41 am on Monday, March 4, 2013
Accountability
The obligation of an individual or organization to account for its activities, accept responsibility for them, and to disclose the results in a transparent manner. It also includes the responsibility for money or other entrusted property.
Responsibility
A duty or obligation to satisfactorily perform or complete a task (assigned by someone, or created by one's own promise or circumstances) that one must fulfill, and which has a consequent penalty for failure.Found in BusinessDictionary.com
John Intorcio
8:21 am on Monday, March 4, 2013
ancmay -
Found in Merriam-Webster's Online Dictionary: point: noun \ˈpȯint\ b : the most important essential in a discussion or matter <missed the whole point of the joke>
What's yours?
JIM
8:28 am on Monday, March 4, 2013
John Intorcio - What is the definition of BAMBOOZLE ?
Tom
8:59 am on Saturday, March 9, 2013
Neither of which have been afforded thus far towards either this project or the citizenry of North Reading.
JIM
8:27 am on Monday, March 4, 2013
Lets use the profits from the Hillview Country Club to help fund this fiasco.
John Intorcio
9:07 am on Monday, March 4, 2013
JIM -
Your protests would carry more weight if they were based on facts or made sense.
Hugo
9:37 am on Monday, March 4, 2013
Jim:
I asked someone in the know about that. I thought The Hillview could al least take on the cost of the athletic building. I was told that all the revenue for the Hillview will go to paying off the bonds for the Athletic (football & track) Field by the High School, for decades.
melee
10:04 am on Monday, March 4, 2013
I will be voting in favor of the increase. I think that the messaging around the school project has caused much of the contention but the need for the increased fee for me is understandable and appropriate. To build a new complex and not have it done correctly does not make sense to me. I do respect however the politics of people's own pocket books but find the adjectives used to describe the increased costs and the people involved with the decision making process to be frustrating and insulting and not helpful to the discussion. From a messaging perspective this increased costs amounts to about $13 - $16 more per month for the average household or about $ 52 - $63 more per quarter. I think that this is the message that needs to be sent rather than the increased annual cost. I commend all who have worked on this project. It is a complicated matter and involves so many constituents. I certainly will vote in favor of a modernized facility for the benefit of our entire town.
JIM
4:53 pm on Monday, March 4, 2013
John Intorcio - Which comments were not based on facts and what didnt You understand ?
Tom
4:12 pm on Friday, March 8, 2013
School Building Project Estimated to Cost $13 to $16 Million More and that figure is just an estimate. Wish I could pay my bills that way. Here you go here is an estimate of what I can afford this month. Forget about asking for any more money until you have contractors and project managers who know how to build schools not spin their wheels waste time and are able to provide timely exact hard numbers. Until changes are made to the bid process, where you must choice cost of experience. This problem will occur over and over again. Cheaper more often than not means trouble. Maybe you should consult Angie's List. Sorry, just like everyone else this taxpayer doesn't have the luxury of expecting through some miracle additional monies will appear out of nowhere to help pay my bills every month. It's called living within a budget, this is reality and thus far SSBC is a fairy tale. While the Batch looks nice, I would steer clear of any reimbursement joint projects be it state of federal. As we all know their track records with our roadways, transportation infrastructure transit system are in a state of decay. None of the items on the decide not to approve list appear to have anything to do with improving education for students. Good luck!