Mountview School Building Committee
Community Meeting Minutes
February 5, 2013
7PM HMLD
Present: Chairman Paul Challenger, David White, Gary Kaczmarek, Chris Lucchesi, Margaret Watson, Erik Githmark, Jacquie Kelly, Anthony Gasbarro,
Mike Sherman
Others Present: Mike Pagano, LPA, Bill Senecal, LPA, Elizabeth Helder, Recording Secretary
No one from the public was present at the meeting.
Gary Kaczmarek reported that the construction cost estimates have come in from Daedalus (the Owner’s cost estimator) and Fogarty (the LPA cost estimator). The group spent time reviewing a cost comparison spreadsheet of the estimates. The two estimates came in very close with a delta of approximately $1.1M. Mr. Kaczmarek said the major difference in the two estimates is that the Daedalus estimate allowed for a slightly larger contingency (10%) compared to the Fogarty contingency of (7.5%). The estimates were based on the design, bid, build construction method and not CM@Risk.
Mr. Pagano commented that Fogarty does a majority of cost estimates for the MSBA.
Mr. Lucchesi said he was not alarmed with the $1.1M variance. He said he thought the estimates were good and that it was just a business philosophy variance.
Mr. Pagano said LPA has a contractual responsibility for the Town for any overages if the building comes in above budget and the MSBA will not reimburse as such. However, if the project comes in below budget, the MSBA will expect to receive their portion of reimbursement.
The MSBA caps the cost per square foot at $275. Mr. Pagano said no school building being built can be properly built for this cost and the MSBA does not expect the Town to be able to build the project for $275/sq.ft.; this is just what they are willing to pay. Mr. Pagano said the MSBA doesn’t care what type of school you build: pre-school, elementary, middle or high school. They cap the square footage reimbursement at $275.
The benefit of going with the higher estimate is that the Town will not have to borrow again if the project goes over the Fogarty estimate.
Mr. White said when LPA worked on previous school projects in Holden LPA only used 1% of the contingency.
The Committee reviewed a document entitled Total Project Budget. The document, prepared by Mr. Kaczmarek, provides a total estimate that includes soft costs (OPM fees, architectural costs, FF&E, site survey/engineering costs for street and natural gas conversion/construction, and construction and owner’s contingencies, etc.) and construction costs. The Total Project Budget estimate as of 2/5/13 is $54,655,295. Mr. Kaczmarek said that the estimate from Fogarty does not include the purchase and installation of a new transformer from the Light Department. This is a requirement for the project and is considered a reimbursable expense.
Mr. Challenger said he would like to get a statement in writing from NSTAR to confirm that they will run the gas line to the school free of charge. Mr. Kaczmarek said he did not feel that this would be a problem with NSTAR; they are in it for the business and bringing a gas line to the school will open the door for many new residential customers in the neighborhood. The Project’s only cost associated with the gas installation will be paving and police detail.
Mr. Pagano said the MSBA caps FF&E per student at $2,400. The Total Project Budget also includes $1M for FF&E, $1M for computers, and $750,000 for equipment.
The group discussed line item Scope Items Excluded or Otherwise Ineligible (-6,843,539). This estimate includes the sq. ft. overage above $275/sq.ft., and some non-reimbursable site, design, and engineering work. Mr. White and Mr. Lucchesi commented that based on the sq.ft. overage, they did not think that the $6.8M estimate was high enough; they felt this estimate should be increased to $9M.
The MSBA will only reimburse 53% of the eligible reimbursement costs; the town will be responsible for all non-reimbursable costs. The project anticipates being able in increase its reimbursable percentage to 55.89% by earning points by participating in the green/energy efficiency MA-CHPS program.
Mr. Challenger called the $54,655,295 estimated total budget a conservative number.
Mr. Challenger expressed concern about factoring some of the contingency money into a reimbursable expense to the MSBA. He agreed that the contingency needs to exist. However, will the MSBA reimburse it? Mr. Kaczmarek added that the budget being presented was prepared using a MSBA form and formula which calculated all portions of the total budget estimate.
Mr. Pagano said the town must authorize a total expenditure of the total budget less any reimbursement from the MSBA. The ballot election will only have language to issue the borrowing for the total project and will not include a dollar amount. The dollar amount will be approved at the vote at the Special Town Meeting.
The estimated final cost for the average household annually (based on an appraised value of $266,000) will be $267.00 or approximately $1/per thousand.
Mr. White reviewed the history between the MSBA and Wachusett Regional High School project. The MSBA has since corrected the financial mistakes that occurred during this project and it they will not happen again. Mr. Pagano added that the new MSBA Pro Pay reimbursement program will save the town many thousands of dollars in interest by promptly reimbursing school building costs on a monthly basis. In the past, a school building project had to be completed and then all receipts were submitted to the MSBA for an audit. Often, reimbursement from the MSBA did not occur until several years past the completion of the project. This meant that the municipality was on the hook not only for the total project borrowing but the carrying costs as well until the reimbursement kicked in.
Mr. White said that he felt that he and Mr. Lucchesi and Mr. Kaczmarek should work with Ms. Kelly to review the final Total Project Budget document prior to the joint meeting with the Selectmen and Finance Committee on February 11th. The final document must be filed with the State on February 14th.
The Committee reviewed correspondence from Mr. Kaczmarek regarding pursuing the project as a CM@RISK. Mr. Kaczmarek said that based on the fact that the CM@RISK estimate came in higher than the Total Project Budget estimate, he did not recommend that the Committee pursue this construction method.
Motion by Dave White, seconded by Mike Sherman, it was UNANIMOUSLY VOTED TO NOT PURSUE A CM@RISK PROJECT.
Motion by Chris Lucchesi, seconded by Dave White, it was UNANIMOUSLY VOTED TO APPROVE THE SUBMITTAL OF MSBA 3011 TOTAL PROJECT BUDGET NOT TO EXCEED 102% OF THE ESTIMATED $54,655,295 FOR A TOTAL PROJECT BUDGET OF $55,748,401.
If after conducting the review and the new budget is in excess of this amount, the Committee agreed to meet prior to February 14th to approve these new changes.
- Feasibility Study and Full Schematic Design Presentation
The Committee reviewed the proposed presentation to be made to the Select Board and Finance Committee on February 11th. Members were asked to forward their comments/changes/feedback to the Chairman for approval prior to Friday.
Mr. Lucchesi held the Community Outreach kick-off event in January. The event received press coverage in The Landmark and a Facebook page has been created in support of the project.
At the Select Board meeting on February 4, 2013, the Board directed Ms. Kelly and the Committee to generate a flyer to outline the scope and costs of the project to be sent through the light department bills in March. Mr. Lucchesi also suggested that the Committee expend funds to send out a secondary informational flyer to homeowners. Mr. Sherman will work on both flyers. Mr. Sherman also added that the Committee should hold a coffee and chat night at each elementary school and the ECC to help publicize the project. Parents and their children would be invited to hear about the project. These K-5 meetings should be held in March. Mr. Lucchesi suggested also holding a PTA night at Mountview and invite all PTA’s to an open house/meeting.
Ms. Watson suggested that the Committee should update its website linked to the WRSD website. Mr. Sherman suggested that a more dedicated effort be made to update the website. After some discussion, it was agreed that Liz Helder would be responsible to gather information to update the website and keep it current. Ms. Watson suggested that the list of Committee members be updated.
The Committee discussed where the Special Town Meeting should be held in April. Mr. Sherman said the meeting should be held at the high school for convenience purposes and that child care should be provided.
Motion by Dave White, seconded by Mike Sherman, it was UNANIMOUSLY VOTED TO HOLD THE APRIL 8, 2013 SPECIAL TOWN MEETING AT THE HIGH SCHOOL.
Ms. Kelly said that she will propose that the Select Board open, set, and close the Special Town Meeting Warrant at their February 19th meeting. Ms. Kelly and Mr. Kaczmarek will speak with the MSBA about the possibility of receiving an answer regarding the final reimbursement/budget from the MSBA two weeks prior to the April 8th STM. Ms. Kelly said this information will be necessary in order to set the Warrant for the STM.
Ms. Kelly asked the Committee if they wanted to update the list of Committee members as Town Manager Galkowski is no longer employed by the Town. Ms. Kelly is now the Town Manager. The Committee directed Ms. Kelly to inform the MSBA that Ms. Galkowski is no longer a member of the Committee.
Ms. Watson voiced concern regarding student safety during the ballot election and requested that police presence will be available on that day at all polling locations.
Motion by Dave White, seconded by Erik Githmark, it was UNANIMOUSLY VOTED TO ADJOURN THE FEBRUARY 5, 2013 MEETING AT 9:23PM.
APPROVED:
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