Gilroy
– Construction estimates for the Gilroy Unified School
District’s Facilities Master Plan are almost $20 million over
budget, according to a report by the district’s director for
facilities planning development and construction.
Gilroy – Construction estimates for the Gilroy Unified School District’s Facilities Master Plan are almost $20 million over budget, according to a report by the district’s director for facilities planning development and construction.
Charlie Van Meter revealed significant increases Thursday at the GUSD school board meeting, when explaining construction cost estimates for both Las Animas School and the New Christopher High School. Total overages for both schools amount to $16 million, and upgraded construction plans for Eliot School and Gilroy High School add another $2.5 million to the cost.
“When we wrote our Master Plan, we had projected for the year an acceleration rate of five percent,” Van Meter explained. “And now that things are going up 20 percent a year, that five percent doesn’t hold up.”
Administrators suggested that the district might have to sell land or front another ballot measure to raise additional funds. However, at least one board member questions the projected cost overruns.
“From April to May we saw a $20 million increase – and I don’t think that’s accurate,” Jim Rogers said. “Those were somebody’s wild idea of what it might be.”
Rogers questions the formula used to calculate the future construction costs because it relies upon an oscillating market. He acknowledged that costs will be over, but doubted the figure will be that high.
He expressed concern about the budget increases, but lamented making cuts to the Master Plan, or asking for additional funds from voters.
“We made a deal with the voters in 2002 that it was going to cost $155 million … now it’s more like $180 to $190 million,” Rogers said. “We need to stay on track with the plans we have already underway, before we even talk about going back to the voters.”
While no cuts to the Master Plan have been made, both Van Meter and Rogers said the district’s priorities are going to have to be evaluated.
“Realistically, we don’t (have enough funds to pay for all the construction in the Master Plan,” Van Meter said.
Eventually, the district will have to borrow money to pay for the projects, he explained.
The Facilities Master Plan is a 25-year maintenance and construction plan that includes repairing and upgrading current GUSD facilities as needed, as well as building new facilities. Construction projects under the plan involve building a second high school and the new Eliot School; upgrading the football field at Gilroy High School, and relocating and rebuilding Las Animas Elementary School.
The plan is a road map for facilities work funded primarily by Measure J, a $14-million bond passed in 2001, and Measure I, a $69-million bond passed in 2002. Developer fees, state funding and grants round out the funding.
Originally, the cost of the Master Plan was estimated at $155 million, but that figure jumped to $177.85 million in March and with recent estimates, that cost has been pushed to more than $190 million.
According to Van Meter, the increase is projected upon the current cost of building materials and transportation costs for both future and existing construction projects.
“In the last two years plywood has gone up 300 percent,” he said. “And we have a lot of plywood.”
Other factors considered in the calculations were the cost of fuel for transportation and shipping materials.
“We’re at the mercy of the economy right now,” Van Meter said.
Both Las Animas and CHS were tagged with $8 million overtures, which inflated the budget considerably.
Possible payment solutions include selling off district-owned land, creating joint ventures with the city, and performing value engineering on future construction projects to reduce costs.
For example, the new CHS may have a second–story design like the new Eliot to reduce the amount of land needed to purchase required.
Other ideas Van Meter presented at the May 5 school board meeting include: relocating the district office, selling the school farm, selling the Christopher parcel, and a joint use CHS aquatic center with the city.
“The cost increases for construction in general have been so substantial it’s put a lot of districts in a bind,” said Steve Brinkman, GUSD’s Assistant Superintendent for Administrative Services.
“What you do for the future is another bond measure, a tax overide, state funding … hope (Jeff Garcia) does well in Detroit,” Brinkman said, referencing the professional football player and GHS alumni’s $350,000 donation to GHS this past February.
In the meantime, GUSD will continue to look for ways to cut corners on the rising costs of construction, he said.
The need for more funds
Possible sources of additional funds for overages, presented to GUSD board May 5 by Charlie Van Meter. These are estimates:
• $2 million from sale of Christopher land parcel
• $4 million from sale of school farm off Wren Avenue
• $1 million from relocating the district office
• $3 million from joint use of Christopher High School aquatic center with city
• $6 million from Brownell Academy modernization expenses
• Unknown savings from value engineering of new construction projects and borrowed funds.
