Measure I funds won’t cover all planned facilities and now
district faces a $10 million gap
Gilroy – It’s a common story for public entities: a project’s final price tag ends up millions higher than originally projected.
And the Gilroy Unified School District wasn’t exempt from the public construction-cost curse.
When Measure I was approved by voters in 2002, the district surmised that $69 million would cover a long list of modernization and new construction projects.
But, three years later GUSD is staring at a $10 million gap.
District officials say the gap is a result of a higher cost of construction materials and 30 percent inflation since the original facilities plan was drawn up in 2002.
“This is pretty typical in public as well as private,” said Jane Howard, chair of the Citizen’s Oversight Committee. “Particularly because of steel and plywood and the market has driven the price up.”
The three main projects that have fattened up the budget are the new Christopher High School, the new Las Animas Elementary School and modernizations at Gilroy High School.
Initial costs for Las Animas were estimated at $16.5 million but now may top $24 million. Christopher High School’s past estimate of $39 million has been increased to $47 million, while the new GHS student center was expected to cost $10.2 but increased to $10.7.
Assistant Superintendent Steve Brinkman said the GHS estimate didn’t include the implementation of a consistent fire alarm system in seven buildings. Brinkman said the alarms should be up and running within the next couple weeks.
The student center is expected to be complete by April. Measure I funds also paid for Eliot Elementary School. The two-story school, which is complete, was expected to cost $13.9 million but actually added up to $15.3 million.
There were also various other projects funded by Measure I such as the El Roble and Glen View elementary schools multi-purpose rooms and South Valley Middle School upgrades.
Howard is concerned about the extra zeros. In a September COC report the group said they were satisfied with the project information until hearing about the bond gap.
To avoid another snarl, COC recommends that the district is more conservative when establishing costs of future projects; allot a greater amount to the contingency portion of the budget; create a reserve until all projects are complete and before awarding construction bids conduct a complete cost and benefit analysis.
The district plans to tap into other funding sources to cover construction costs. Selling district land, including the plot donated by Don Christopher and the 10-acre Las Animas Elementary School parcel, is one source of revenue.
The board recently held a meeting to discuss the facilities plan and the excess project costs.
Trustee Jim Rogers, who attended the meeting, said he hopes that when Brinkman gives the board an updated report at tonight’s meeting that the $10 million gap is significantly smaller.
“Obviously we don’t want it to go the other direction,” he said.
Rogers said it’s difficult for school districts to estimate project costs particularly in the Bay Area where the cost-of-living is continually rising. Unlike private parties, who can usually get the job done quicker, it takes much longer to complete public projects so by the time construction begins the price is much higher than the estimate, he said.
The district may reach out to voters again since the money allotted for Christopher High will only fund half of the campus, or a 900-student capacity. But Rogers said he doubts that the community would approve a bond so soon after passing Measure I.
Before making that move the district has to complete current projects and prove that it can get things done, he said.
The public is welcome to attend the COC meeting on Tuesday at 7:30pm at the GUSD office. The COC will present an updated report on all Measure I projects.
