Wednesday, November 10, 2004
Wayland Town Building
School Committee Conference Room
Attendees
HSBC members: Lea Anderson, Josh Bekenstein, Dianne Bladon, Brian Chase, Jim Howard, Mary Lentz, Joe Lewin, Cindy Lombardo, Eric Sheffels, Steve Tise
Absent: Steve Breit
Ex Officio members: Gary Burton, Charlie Ruopp
Turner team: Dick Amster, Julie Bezoetdebie, Bob Ho
HMFH team: George Metzger, Doug Sacra
Call to order - Chairman Lea Anderson called the 29th meeting of the HSBC to order at 7:42 p.m.
Discussion on cost estimates and budget- Dick Amster led off the discussion by saying that the estimates presented two weeks ago ($57.1 million - $57.7 million) are based on the latest information on a two-phased project and represent the upside limit. He has shown a way to get back to the earlier estimate of $55.5 million with a list of material and scope changes. Barring a significant unexpected increase in commodity costs or interest rates, the project estimate is firm. Eric Sheffels expressed the view that we would be in trouble if we had done estimates a year ago, before commodity prices went way up. Steel prices more than doubled in a year, but now appear to be under control. The latest estimates are based on numbers that are high and that could go down. George Metzger reminded the group that in the next phase, prices will be reviewed three more times.
Escalation of 11% to the mid-point of construction (3%. in 2005, 4% in 2006, and 4% in 2007) has been built into the estimate. Mary Lentz said that she used 3% and 4% escalation in assumptions for a reimbursable project and will look to Dick and George to advise her on recalculating her numbers. Jim Howard asked why we didnÕt use 50% reimbursement as the best case. Mary used 40%-46% as the range. 40% is the minimum reimbursement written into the legislation and 46% includes a likely number of bonus points for which the project could qualify. 50% reimbursement is a possibility, but we chose to go with the most likely number.
Lea asked each member of the group to give an opinion on a budget number. Comments were:
- We have had a number of $55.5 million for a long time; it was well-thought out. It looks as if we have budget creep to go with the higher numbers.
- We made a decision in August to choose an option based on information available at the time. A seminal event occurred when we changed the location of the school from the football field. We sought input from the public and heard from neighbors concerned about the proposed location for the football field. We heard from town officials concerned about building in the flood plane. The new higher estimates reflect a change to two phases and an additional year of construction. That is the reality.
- We have a large contingency. Our ability to peg an accurate number depends on factors out of our control. That might be an argument for staying with the $55.5 million. Setting a budget is important, but donÕt set a line in the sand that forces us to make bad decisions down the road.
- It is too early to set a number in concrete. Learning from the MS project, we should go with the latest most realistic estimate, which is $57 million.
- Options 1 and 2 would have come in higher too. There are uncertainties that will drive a number up or down. We should be clear that $55.5 million was an estimate, not a budget, and now we have a more accurate estimate. The $2 million change is within the range of the SBA reimbursement assumptions.
- The price is going to be whatever it is. The price will be reviewed three more times. The ballot question deals only with the $4.2 million design, not the whole project.
- You donÕt know what the price of this job is. Boston City Hosp. came in 10% less than estimates. Our consultants worked to get $57 million; it is the best information we have. The high school can be built for $55 million or $53 million. It depends on what you want to cut out of it. We should go with the latest estimate.
- Long term operational cost should be considered. At this point we should not be cutting out things that shorten life expectancy of the facility.
- We have received estimates of $55.5 to $57.7 million. We also have a list of possible savings that reduce that number. We should be able to build a fine school for $55.5 million. The political hit of increasing the number, even though there is a logical reason for it, could be damaging.
- We are discussing two issues; what is the number and what does it mean? Are we ready to call it a budget and manage the design to it?
- There needs to be a commitment that this is the budget and we build to it.
Motion Š Upon a motion duly made (Cindy Lombardo) and seconded (Joe Lewin) the Committee voted (9 in favor, 1 against) to make a commitment, absent unplanned inflation, to design to a $57,300,000 budget.
HMFH/Turner Report- Doug Sacra led the group through the draft Final Report. Doug will accept feedback from the HSBC and edit the draft. As sections become available, he will send them out for review before next weekÕs meeting. Comments were:
- The executive summary should be longer and include more information. It should summarize the work of HMFH and Turner. There will be a separate report of the HSBC.
- There is no need for an overview.
- Numbers should be consistent.
- Add rationale for higher estimates (respect for neighborhood concerns and wetlands issues; project now has two phases).
- Tone down reference to Dore and Whittier report.
Doug expects to make final edits after next weekÕs meeting and provide copies of the Final Report in time to distribute before Nov. 24. He will provide 35 copies and a master copy that the HSBC can duplicate for people who request it at the forums or elsewhere.
Tax impact update- Mary explained to the group that the latest draft of the tax effect analysis incorporates suggestions received after she, Cherry Karlson, and Lea attended the Board of Selectmen meeting on 11/1. She expressed concern that the Wayland Voter Network has published an e-mail to their distribution with an incorrect conclusion on tax impact. Mary explained that this is the result of comparing last yearÕs tax bill to a 2010 high school tax effect. There is no time value of money considered. It assumes only the worst case, not the expected case scenario. Mary said that the average percentage of a homeownerÕs tax bill attributable to the high school over the life of the financing is in the range of 3.3% to 4.7% based on a $55.5M project, not 10.7% as reported by WVN. (Note: Since the meeting, Mary has recalculated the percentage effect to reflect the $57.3M budget and the numbers are now 3.5% to 4.9%.)
The group discussed ways to respond to misleading or incorrect information in the public arena. Mary suggested a one-page fact sheet that can be distributed at sports events and other gatherings. Dianne Bladon, who is leading the communications effort, reported that she is working on a fact sheet that will include this information. Lea suggested that the WVN report the information presented by Mary in its summary of this meeting. It was also suggested that a piece on tax impact be written for The Wayland Town Crier.
Display boards- Doug showed the group samples of a display that will be produced for presentations and posting in public areas. It was suggested that the field house should be more visible.
Discussion followed on ways to communicate the multi-function aspects of both the auditorium and athletic facilities. Combined usage has resulted in reduced square footage, e.g. the proposed auditorium will be the drama classroom, black box theater, lecture hall, and performance hall; the field house will house two practice basketball courts and indoor lacrosse courts.
Upon a motion duly made (Jim Howard) and seconded (Josh Bekenstein) the Committee voted unanimously (10-0) to approve the minutes of HSBC meeting #28 held on October 28, 2004.
The meeting was adjourned at 10:43 p.m.
Observers: Sam DiSavino, Linda Segal, Michael Short,
Comments and questions from observers:
- What is the size and height of the WWTP?
(Doug responded that the WWTP building will be below the height of the first floor of the academic building due to the contour of the land.)
- Has the committee determined what it will cost to maintain the WWTP on school property? There will need to be a service contract and operator for this facility.
The next regular meeting of the HSBC is scheduled for Thursday, November 18 at 7:30 p.m. in the Commons conference room, Wayland High School.