Thursday, September 3, 2009
Wayland Town Building
School Committee Conference Room
Attendees
HSBC members:
Lea Anderson, Josh Bekenstein, Dianne Bladon, Brian Chase, Jim Howard,
Fred Knight, David Lash, Joe Lewin, Cindy Lombardo, Eric Sheffels, Jennifer
Steel
Absent: Mary Lentz
HMFH Team:
Steve Millington
KVA Team: David Saindon, Frank Vanzler
Ex Officio members: Gary Burton, John Moynihan
Call to order Ð HSBC Chairman, Lea Anderson, called the
HSBC meeting to order at 7:12 p.m.
Project update -
David Saindon, Project Manager, reviewed the activity of the past week:
Update on reconciled cost estimate Ð David reported that the estimates are
about 96% reconciled. The
remaining items to reconcile do not add up to more than $500,000. This will be finished tomorrow (Friday,
Sept. 4).
Eric, Joe, Lea,
and John Moynihan (Wayland Facilities Director) met with HMFH, KVA, and PMC on
Wednesday, Sept. 2 to review the reconciled cost estimate. Lea explained that the cost estimate is
based on ÒfreezingÓ the project a month ago so that the cost estimators would
not have a moving target. The new
construction square footage was around 159,000 s.f. at that point. The target square footage is 154,350
s.f. as approved by MSBA. Steve is
continuing to work on reducing the number to the MSBA approved number. At this point, the budget that will be
presented is an upper limit. Value
engineering has begun and will be presented at a future meeting.
Eric reported
that the group spent four hours scrutinizing the estimate. He said that he looked for several
things:
He explained that contingency planning is an ÒartÓ. He does not look at it in a vacuum, but analyzes the prices in the estimate to figure out contingencies. Were we buying it today, numbers would be lower, but we have to plan for swings in the market. Contingencies are built into the budget in four ways: design contingency, contractorÕs contingency, ownerÕs contingency, and allowance for escalation (inflation). EricÕs conclusions are:
á The quality of the estimates is high; there are no gaps or holes. Every line item has been thought about.
á Unit prices are rational.
á Contingencies are rational.
Budget overview Ð David and Frank reviewed the MSBA budget form Ò3011Ó. This budget includes the current Feasibility Study and Schematic Design budget. The budget is based on detailed estimates from knowledgeable sources. Only about $1 million is forecasted. Specific points made were:
á The contingency built in is 7.5% for design and pricing. This is usually 10%, but the documents are very good. We will likely use this up during design development. The estimate is based on 40 or 50 drawings. There will be 250 drawings at bid. This is the first of three cost estimates. The more information we have the less contingency we need. It is a Òlaw of physicsÓ that more information relates to more cost. As drawings evolve, there is more disclosure and more confidence in the estimates. The contingencies cover forgetting something in the design, discovering latent conditions.
á The MSBA requires building in escalation to the mid-point of construction. We are using about 4% a year. Brain Chase explained that TurnerÕs analysis of construction costs showed an index declining about 10% from a year ago. This is highly unusual and to be conservative, we have to look at longer term averages. The longer this project stretches out, the more risk for escalation. Joe Lewin thinks we could be vulnerable to inflationary increases in two years.
á Construction contingency is Òchange orderÓ contingency. The budget includes 5% for new construction and 10% for renovation (field house).
á Commissioning is supposed to be covered entirely by the MSBA. We should clarify this with MSBA.
á Eric recommends that the Field House reconstruction take place in one phase and will clearly take longer than one summer.
á FF&E (Furnishing, fixtures, and equipment) allowance by MSBA is $2,400 per student. The budget shows significantly higher numbers. This will be addressed.
á Eric reminded the group that the estimators assumed that everything proposed is included and is new. There will be an inventory taken later in the project to determine what furnishings and equipment can be reused and moved from the old buildings to the new school.
á The contingencies add up to $13.9 million. This is very conservative, rational, and appropriate.
á Speeding up the building schedule will save money. The Empire State Building was built in one year.
á The unit pricing anticipates a level of quality we would be proud of, but is not in any way extravagant.
á Cost savings will be found, especially in the site work.
á Durability has been the goal of the materials. We will look at this again in design development.
á There is about $500,000 worth of line items still to be reconciled. We should give KVA the flexibility to finish the reconciliation.
Motion: A motion was made by Eric Sheffels and seconded by David Lash to submit to the MSBA the estimate and budget not to exceed $82.5 million.
Vote: The motion was approved unanimously Ð 11 in favor, 0 opposed.
The HSBC expressed its thanks to HMFH and KVA for completing the tasks required by MSBA for submission on Sept. 8th for consideration at its Sept. 30th board meeting.. Lea also thanked Joy Buhler and Mike DiPietro for completing the MSBA required Budget Statement for Educational Objectives (all 34 pages) on such short notice.
Schedule: Lea reviewed
the dates being considered for the debt exclusion vote and Special Town
Meeting. Since last week there had
been some discussion about combining the debt exclusion vote and the newly
called primary election for the late Senator KennedyÕs senate seat on Dec. 8th. The Town Clerk has raised concerns
around combining the votes and requests that the debt exclusion vote remain on
the originally planned date of Nov. 17th. This is acceptable to the HSBC and we will plan
accordingly. The Board of
Selectman will vote on the dates on Sept. 8th.
Key dates are:
á 9/10 Ð 9/22: Special Town Meeting warrant open (placeholder article)
á week of 9/14: HSBC negotiates Project Scope and Budget Agreement with MSBA
á 9/17: HSBC meets to finalize proposal to present to School Committee
á 9/21: School Committee formally requests BOS to authorize debt exclusion
á week of 9/21 or 9/28: suggested HSBC briefing for BOS and FinCom
á 9/30: MSBA board vote on Wayland Project Scope and Budget Agreement; publicity on public forums released
á 9/30: tentative date for State of the Town meeting
á 10/5: Special BOS/FinCom meeting to discuss debt exclusion
á week of 10/12: Public forums
á 10/13: BOS vote to approve ballot question for debt exclusion
á week of 11/2: HSBC mailing with STM information
á 11/17: presumed date for special election for debt exclusion ballot question
á 11/18: presumed date for STM
á 11/19: STM continues if necessary
Motion: A motion was made
by Josh Bekenstein and seconded by Cindy Lombardo to approve the minutes to
HSBC meeting #81 held on August 27, 2009.
Vote: The motion was approved: 8 in favor; 3 abstentions
Adjournment Ð The HSBC adjourned at 9:04 p.m.
Next meeting Ð Thursday, September 17 at 7:00 pm in the
School Committee conference room
Observers:
Kay DÕOrlando, Barb Fletcher, Joe Karbowski