School Building Project Needs $15.5 Million More
The Guaranteed Maximum Price and new total for the school building project were announced Monday night.
The Board of Selectmen and School Committee held a joint meeting Monday night to announce the new school building project total of $122,652,133. The town will need $15,500,000 more to complete the school the way it was originally designed.
Original Budget
When first presented, the original project budget of $107,727,074 million was split into two parts: $86.5 million was the construction cost estimate and $21.2 million was for professional services, contingencies, furniture, fixtures and technology. According to Selectmen Chairman Sean Delaney, the $86.5 million construction cost estimate was wrong.
"We undervalued the project," Chris Carroll from PMA Consultants said Monday night.
New Total
The project is now going to cost $122,652,133, which breaks down to the total Guranteed Maximum Price (GMP), $101,452,133 plus the soft costs, $21,200,000.
The difference between the old and new total is $14,925,059.
The additional owner's contingency is $574,941, which makes the maximum additional funds needed $15,500,000.
According to a pamphlet handed out at one of the SSBC's informational sessions, "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."
How does this impact my tax bill?
With the new estimated total for the project, the estimated tax increase, based on the average home value of $450,000, will be $176 per year. That is in addition to the tax increase residents would have seen before the new total was announced.
Next steps
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 several items will be removed from the budget, including cooling, sports fields, rubber stair treads, tennis courts, vinyl tile flooring, colored concrete and much more.
The selectmen and School Committee voted unanimously to recommend the article at Special Town Meeting.
However, none of the members of the board were happy with the situation.
Selectman Steve O'Leary said that he supports the additional funds because he thinks it’s necessary and the community deserves a completed project. However, he went on to say that he was first elected 40 years ago and in that time has seen a lot of projects completed in town including other schools and public safety facilities. All of those projects had their own issues, but the school building project “disgusts me and it angers me," he said.
It's not so much the price tag, he explained, because he believes that if the town had the right number to begin with the project would have been accepted.
“What angers me is that most of the people sitting in this room who were supportive of this project put their credibility on the line, and that’s what's hurting this community right now," he said.
Selectman Bob Mauceri said that he believes O'Leary's comments echo how the rest of the board feels.
"None of us are very happy with what has happened," Mauceri said.
He went on to say that "the bottom line is, we're here, we need another $15.5 million dollars to complete this project as originally proposed and failure to do so, at least from my looking at the numbers and looking at what would have to be removed from the project, we'd have no project. And without having a project, we've spent a lot of money, too."
Selectman Joe Foti mentioned that he heard from residents that if the final number was presented a year ago, people still would have voted for it. He believes there is a misconception around town that the project was mismanaged.
"That's not the case, not on the part of the town anyway," he said.
Selectmen Chairman Sean Delaney said that no one is more angry than he is about the situation because he stood in front of residents last year and said that the project would be finished on time and on budget.
He hopes that the town will not make a decision based on anger, because most of the time that would be the wrong decision, he said.
Anger is the emotion that most think of when they think of this project, School Committee Chairman Mel Webster said. He also mentioned that most sympathize for those who can't afford it, but he still believes that the additional funds are necessary.
"I do think we need to do this," he said
If the funds are not approved, "it won't be the project we hoped for and it won't meet the needs of the school department or the students," Webster said.
ancmay
8:04 am on Wednesday, March 13, 2013
Will home owners be the only one's allowed to vote ?
Ce ce
8:30 am on Wednesday, March 13, 2013
On items of tax override issues I believe there should be a one vote per one taxable property. This makes every taxable property equal, Isn't that what we all want an equal and fair vote.
melee
5:12 pm on Wednesday, March 13, 2013
I am not sure that would be any fairer. If two spouses have differing view then should they then get no say? Additionally with taxes being based on the value of one's home, the person with the most expensive house is the one who pays the most so perhaps it is not fair that said person's vote weighs the same as the person with the least expensive house. Let's keep things simple. All registered voters have a say.
Jeff Witts
8:19 am on Wednesday, March 13, 2013
Anyone registered to vote as of March 2.
ancmay
9:16 am on Wednesday, March 13, 2013
Absentee Ballots from Children who are in College and Children who are in the Military
will be counted ? Seems unfair to the property owners .
Ce ce
8:21 am on Wednesday, March 13, 2013
Let's all thank the Hillveiw Commision for building new tennis courts (at NO cost to the taxpayers) that the SSBC had destroyed and now is on the chopping block and may not be rebuilt (rebulit with taxpayers $ this time). also in the above article you site the cost of the new override to taxpayers but neglect to site the original cost to taxpayers will pay for the first override. Are you afraid of sticker shock!
Jeff Witts
8:32 am on Wednesday, March 13, 2013
The Hillview Commission went to the SSBC before the installation of the new tennis courts and asked if there was a chance they could be taken down due to the school project. The response of the SSBC was yes. The went forward anyway knowing there was a chance they would be removed.
JIM
8:39 am on Wednesday, March 13, 2013
So what is the total tax increase for the whole project based on the average home value ?
Ashley Troutman
9:14 am on Wednesday, March 13, 2013
That amount is roughly $850-900.
Stev
8:48 am on Wednesday, March 13, 2013
$400K a month delay cost if the vote is no. Unheard of !!!!! Sounds like silly tatic to scare the voters. VOTE NO!!!!
Jeff Witts
8:54 am on Wednesday, March 13, 2013
This is not a scare tatic but reality. It will not be cheaper than it is right now.
HRW
9:00 am on Wednesday, March 13, 2013
If the town selectman and the SSBC are not responsible for the failure to properly budget this project then as the good stewards of our town they should hold those who are accountable. Our home taxes have increased over $100 per month already. Why is it that homeowners are not allowed to declare that there is no more money to give. Stop trying to frighten residents with monetary delays and find another solution.
Jeff Witts
9:39 am on Wednesday, March 13, 2013
The Selectmen have retained a legal firm that specializes in construction law. The solution with no extra money is to severly reduce the school to a point that it may not be educationally functional. That is not scare tactics but reality.
Ashley Troutman
9:11 am on Wednesday, March 13, 2013
Selectmen Chairman Sean Delaney explained that the SSBC "has engaged" both PMA and Dore and Whittier in discussions regarding the wrong estimate and "that is ongoing." The town is pursuing any and all avenues, he said, and Town Counsel is aware of the situation.
Alain & Yvonne LeBlanc
10:11 am on Wednesday, March 13, 2013
We all need to think about our children's future. I know this is a hard pill to swallow, but it is very difficult to imagine the kids in a building less impressive than what was originally proposed. At the end of the day this will save us money because we are getting two schools out of this project, not just one.
pattie d
9:42 am on Thursday, March 14, 2013
We do think of the children's future, that is why NR has one of the top 50 high schools in the state, it is our great teachers in the town that have done this, not the buildings!( most of the towns income goes to the schools).
we voted for 2 schools not one and it passed, we agreed to pay, but the buck stops there! if the building is less then impressive so what! many homes in town are less then impressive and families live in them!
A NO vote will keep us in our homes and less chance of a lean for those who can not pay the high taxes .
Does anyone ever think of the people who are struggling now ?( many are on a fixed income )
Not all homes in NR are mc mansions with big paychecks!
WHY are there so many empty stores in town?
How many homes and business's already have a lean on them?
Do people look at their paychecks and see it is less then a few months ago?
A NO vote will let us keep our homes and food on our tables.
please vote NO.
HRW
10:32 am on Wednesday, March 13, 2013
I agree with the split tax rate system but not to fix the current mistake. The town is going after the wrong people. The taxpayers did their part already; they voted, approved and funded this. The mistake must be corrected at its source.
Nick
4:02 pm on Saturday, March 16, 2013
Good Point. How about bringing equipment from the current school to the new school. How about reducing the town spending yearly to cover the school budget for the next 25 years. No more tax increases.
John Intorcio
11:04 am on Wednesday, March 13, 2013
First I've heard of "Soft Costs" - thought we were getting a GMP for the whole project? What's soft about $21,200,000??
Jeff Witts
11:11 am on Wednesday, March 13, 2013
Every project has soft costs. When I was on the Elementary school building committee, the Batch had a large soft cost line items as well. The GMP is for $101 million and these are the hard costs of construction. The hard costs for the project were originally estimated at $86 million plus the $21 million soft costs. The soft costs are solid and have been from the beginning. The cost overrun is due to the hard costs only.
John Intorcio
11:37 am on Wednesday, March 13, 2013
Ah, I get it - just hadn't heard that term before. This the $21.2 million for professional services, contingencies, furniture, fixtures and technology. Thanks Jeff.
HRW
11:07 am on Wednesday, March 13, 2013
The highly qualified North Reading school administration, teachers and staff, supported by the parents is the reason we have a superior school system, not the buildings. Let us not lose sight of the former for the latter. I can think of many nearby towns with beautiful buildings and failing schools. I find it strange that we connect the facility itself with our children's success.
Jeff Witts
11:08 am on Wednesday, March 13, 2013
If you need to point blame, then I believe it falls onto the Project Manager and the Arhcitect. The Selectmen are starting the legal process to recoup some money. Do not expect the whole amount to be recouped and the legal process will take years. I am not willing to wait for that outcome as it is uncertain. What I know today is the extra cost is guaranteed by Gilbane is certain and moves things foward.
Trisha
12:00 pm on Wednesday, March 13, 2013
From day one this project has been all or nothing, even this 15.5 million request. As ONE example, we are told "colored concrete" is essential:
Bob Mauceri ". . . from my looking at the numbers and looking at what would have to be removed from the project, we'd have no project."
Mel Webster "it won't meet the needs of the school department or the students,"
The rational given for the largest increase is that the construction business is "hot". Right, go over to Moynihan's and continue to tell us about this so-called "booming business".
Joe Foti said in this article that "He believes there is a misconception around town that the project was mismanaged." No, we know this project was mismanaged, otherwise you would not be hiring lawyers.
Educating the children of North Reading is THE priority, but of this 122.6 million dollars, there is money that has nothing to do DIRECTLY with education, and we have not been given any options once again.
I am tired of being treated as if I am stupid, but I am in good company. Jeff Witts said, "The Hillview Commission asked if there was a chance (the tennis courts) could be taken down due to the school project. The response of the SSBC was yes. The went forward anyway knowing there was a chance they would be removed." I have a hard time believing that because I KNOW none of the members of Hillview are stupid either.
Ryan
2:16 pm on Wednesday, March 13, 2013
I agree with the "vote no" contingent that this sham is an insult to intelligent voters. Groundbreaking was forecast for a future date, and construction futures all pointed to industry growth and cost increases. Simple fact is the hard cost contingency wasn't what it should have been.
So, while I'm hesitant to have any faith that this will be the last time this happens on a town project, I have a bigger fear. Reading underwent a similar project not long ago. They scraped by with marginal design, sub-par GC, and poor oversight. The result is the same crazy tax increases, and a sub-par facility that will be in need or repair well before it's time.
The only thing worse than investing another $15/month in this project per household, would be not investing it now, and paying in spades down the road.
I'll regretably vote yes.
Stev
3:31 pm on Wednesday, March 13, 2013
Be prepared that the classroom sizes will be decreasing very quickly as the many young families begin to move out of this town that is so expensive to live in. Vacant store front will begin to spread to vacant residential fronts. The future is very clear....
Jeff Witts
3:35 pm on Wednesday, March 13, 2013
Stev,
Interesting statistic about the decrease in classroom sizes. Can you provide data of that situation happening in other school districts where tax increases directly led to a decrease in classroom sizes? I would be very interested in that.
JIM
5:02 pm on Wednesday, March 13, 2013
Oh Stev, You must be mistaken because according to Jeff Witts Guess what happens when the people in the McMansions move out? A young couple will move in that has young children or are about to start of family. There will never be a huge enrollment decline in the schools becuase the McMansions only attract buyers that have school age children. These homes are not bought buy retirees, unfortunately. One positive of the McMansions is that they have driven up housing prices throughout town. The ranch and cape is now selling in the range of $350,000 - $450,000. So, someone who bought this home in the 60s or 70's, now has seen a huge profit increase of 30+ times the original value. That is wonderful. The schools have also played a role in this value increase. However, home prices would decline without the MS/HS schools being updated to 21st century standards. The MS/HS project has caused a flurry of home selling/buying in town because prospective buyers waited for the vote to pass then made the move to purchase. I have been told this by several people who have recently sold their homes.
Jewel
7:50 pm on Wednesday, March 13, 2013
Construct only the high school, excluding the renovation of the middle school.
Mel Webster
10:54 am on Thursday, March 14, 2013
We cannot construct only the high school and exclude the middle school renovation. We need to build the project as approved by the MSBA.
Trisha Curtin Colella
10:55 pm on Wednesday, March 13, 2013
"Trisha" is NOT Trisha Colella......needed to make that clear after a good friend called me to tell me about that post. VOTE YES
Michael L
12:34 pm on Thursday, March 14, 2013
NOT ONE PENNY MORE
Jewel
7:20 pm on Thursday, March 14, 2013
I think if the result is a NO vote the residents should be able to have some input on what gets left unfinished. Who populates the list of what gets left out? Are the items that the SSBC listed to be eliminated the only items that can be left out of the project? If "we" the residents are paying for the project, then why can't "we" have a choice of what items get left out of the project. My concern is that if there are more choices for lowering construction costs (that the MSBA approve of) the residents should know and that information should not be with held. Everything needs to be on the table at this point. No disrespect to the SSBC, how were they suppose to know what the economy was going to do. Attend Town meeting folks and make sure you listen to the what the residents and SSBC have to say. Take the long run into consideration! Time is money and this town can not afford to keep coming back for over rides or to lose funding from the state.