Thursday, September 17, 2009
Wayland Town Building
School Committee Conference Room
Attendees
HSBC members: Lea Anderson, Josh Bekenstein, Dianne Bladon, Jim Howard, Fred Knight, David Lash, Joe Lewin, Cindy Lombardo, Eric Sheffels, Jennifer Steel
Absent: Brian Chase, Mary Lentz
HMFH Team: Steve Millington
KVA Team: David Saindon
Ex Officio members: Gary Burton, Louis Jurist, John Moynihan, Pat Tutwiler
Call to order – HSBC Chairman, Lea Anderson, called the HSBC meeting to order at 7:16 p.m.
Project update
á Steve Millington reported that KVA and HMFH spent most of the past two weeks working on the budget submission to MSBA.
á Lea reported that she and Steve attended the DPW meeting on Sept. 14 to give the committee an update on the high school project and to solicit feedback.
Report on Project Scope and Budget conference: Lea reviewed the meeting at MSBA headquarters on Wed. Sept. 16. Among the attendees from MSBA were Mary Pichetti, John Jumpe, Christine Nolan, Brian McLaughlin, Carolyn Welsh, and Katie DeChristofaro. Attendees from Wayland were Gary Burton, Joe Lewin, Eric Sheffels, Rep. Tom Conroy, Frank Vanzler, David Saindon, George Metzger, Steve Millington, and Lea Anderson.
The Wayland team offered to provide a revised budget by the next morning with a detailed value engineering list that addresses the costs noted by MSBA. Mary said that updated schematics tying to the revised budget would be required before the PFA (project funding agreement) is signed after the town vote.
The Wayland team thanked the MSBA for their hard work and especially the responsiveness of John Jumpe. They agreed to talk again the next day.
Follow-up: Eric reported that the Wayland team met at Leggat McCall to work on the value engineering list that KVA and HMFH had developed over the past several weeks. The team submitted a revised budget of $74.7 million with a suggested reimbursable project at $69.2 million. After consideration of the revised budget, MSBA initiated a conference call this afternoon to recommend further belt tightening in light of the cost per square foot numbers they are seeing from other projects in the pipeline. Mary Pichetti offered Wayland a basis for a grant eligible project not-to-exceed $62.5 million, resulting in a grant amount not-to-exceed $25 million. She also strongly recommended that the HSBC bring down the total cost of the project even further. The change in market conditions is clearly having an impact on costs.
The budget team regrouped and is ready to recommend a significantly lower project budget based on:
á value engineering cost reductions
á consideration of an accelerated schedule using Construction Manager at Risk (CM-R)
á new market conditions allowing us to reduce costs and contingencies
Eric noted that the offer from MSBA is comparable to what peer groups are getting and that the MSBA is doing their job to protect the taxpayer. Wayland is being treated fairly here. The cuts made so far have been the low hanging fruit. For example, the HSBC was aware that there were items in the cost estimate that were out of line, such as the landscaping. We also knew that the square footage was not yet at the agreed upon number. The cuts to further reduce the budget will be more painful, but we are prepared to do it. We are going to have to be very disciplined. This tighter budget cannot absorb pressure from groups looking for additional project scope.
Review of Value Engineering – David Saindon reviewed the latest value engineering summary as follows:
á Building size reduction to 154,350 s.f. valued at $750,000
á Superstructure, exterior and roofing reduced by approximately $658,000
á Interior finishes reduced by $267,000
á Plumbing, HVAC, Electrical reduced by approximately $342,000
á Furnishings and equipment reduced by $284,000
á Site work reduced by $864,000
At this stage, the reductions for direct costs are around $3.2 million. Now we go back to look for more reductions.
Discussion ensued:
á How is there such a big difference with other communities? There are design teams and committees just like us.
á We compared ourselves to Wellesley and Hanover because we were able to get their information on public web sites. The MSBA just distributed their comparison chart today.
á The budget process is like sausage-making and we are in the thick of it.
á The state assumes their numbers are apples to apples comparisons, but we have no idea about the quality of the materials or the local market.
á The administration will need to help us figure out decisions on security systems, the reuse of white boards and other equipment.
á In the end the MSBA does not want to have a grant eligible project at more than $365/sf on a 171,000 sf project or $62.5 million.
á What do we need to do to get to a $70 million project? Can we build to it?
á The potential delta between the grant eligible amount and the total budget is around $8 million. This must be well explained to the town. It is made up of ineligible costs including but not limited to costs associated with the waste water treatment plant, moving and storage, and utility costs. In addition there is site cost above the limit set by MSBA and contingency to cover the town for appropriate degree of risk.
Motion: A motion was made by Eric Sheffels and seconded by Josh Bekenstein to accept the MSBAÕs offer of a basis for total facilities grant not-to- exceed $62.5 million at 40% reimbursement resulting in a grant not-to-exceed $25 million.
Vote: The motion was approved unanimously – 10 in favor, 0 opposed.
Motion: A motion was made by Eric Sheffels and seconded by Dianne Bladon to recommend a total project budget between $69.6 million and $71 million.
There was discussion about the political value of coming in under $70 million versus the degree of risk we could accept by lowering contingencies even more, given the TownÕs liability should bids come in over budget. Cindy Lombardo reminded the group about the middle school budget and the need to go back to the town a second time to complete that project. That is not where we want to be. The following amendment to the motion was made.
Amended Motion – The motion was amended by Eric Sheffels and seconded by Cindy Lombardo to recommend a $70.8 million total project budget to the School Committee.
Vote: The motion was approved unanimously – 10 in favor, 0 opposed.
Lea thanked David Saindon, Frank Vanzler, Steve Millington, George Metzger, Joe Lewin and Eric Sheffels for their effort in getting through this budget process (still not done!). She also thanked Rep. Tom Conroy for his help with the MSBA process.
Communications Plan – Dianne Bladon reviewed the communications plan. It includes public forums on October 15 and October 20, news media press releases, easel-type displays, flyers announcing meeting dates, fact sheet, FAQ sheet, and tax impact summary (to be developed with help from FinCom).
Key dates are:
á 9/10 – 9/22: Special Town Meeting warrant open (placeholder article)
á 9/21: 7:00 pm, Presentation to School Committee, BoS, and FinCom recommending project budget
á 9/21: School Committee formally requests BOS to authorize debt exclusion
á 9/22 : 4:30 pm, Warrant closes
á 9/30: MSBA board vote on Wayland Project Scope and Budget Agreement
á 9/30: publicity on public forums released
á 9/30: 7:00 pm, State of the Town meeting
á 10/1: HSBC meeting
á 10/5: BoS meeting with PetitionerÕs Workshop
á 10/5: FinCom meeting; article hearings with departments, committees and petitioners
á 10/5: BoS/FinCom meeting to discuss fiscal capacity for debt exclusion question
á 10/8: 9:00 am, CH PTO meeting with HSBC presentation
á 10/13: Board of Selectmen vote debt exclusion ballot question
á 10/14: 9:00 am, Loker/HH PTO meeting with HSBC presentation
á 10/15: 7:30 pm, first HSBC forum in large hearing room
á 10/20: deadline for comments for warrant articles
á 10/20: 9:30 am, second HSBC forum (School Committee conference room)
á 11/2: Warrant is mailed; HSBC mailing with STM information
á 11/9: BoS Warrant hearing
á 11/17: Special Election for debt exclusion ballot question
á 11/18: 7:30 pm, Special Town Meeting
á 11/19: 7:30 pm, Special Town Meeting continues if necessary
Other things: Lea referred the committee to the ballot question and article language required by the MSBA. There is also a Capital Improvement Program (CIP) required by the Finance Committee in the next few weeks.
Motion: A motion was made by Jennifer Steel and seconded by David Lash to approve the minutes to HSBC meeting #82 held on September 3, 2009.
Vote: The motion was approved unanimously: 10 in favor, 0 opposed
Adjournment – The HSBC adjourned at 9:16 p.m.
Next meeting – Tentatively scheduled for Thursday, October 1 at 7:00 pm in the School Committee conference room
Observers: Malcolm Astley, Betsy Brigham, Kay DÕOrlando, Joe Karbowski
Comments from the Public: There we no comments from the public.