APPROVED
WINDHAM SCHOOL
BOARD
Business Meeting
Public Session
Town Hall
August 17, 2006
School Board Members: Chairman Bruce Anderson, Beverly Donovan
Beth Valentine, Barbara Coish, Galen Stearns
Superintendent: Dr. Elaine Cutler
Business Administrator: Brian Gallagher
School District Attorney: Greg Michael, Esquire
Bruce Anderson called the Public Session of the School Board to order at 6:59 p.m. with a call of the roll.
All those in attendance stood to salute the flag and to observe a moment of silence.
Chairman Anderson gave a brief history over the last two years with regard to the high school project. He stated that the project went out to bid and that bids came in 6-7 weeks ago higher than expected. He noted at that time the Board had to stop and re-look at value engineering in an effort to bring the budget back in line. Mr. Anderson then stated to all those in attendance that the School Board had to make a decision tonight. He acknowledged that it would be a tough decision and that the Board wanted public input. At this point in time, he reminded everyone in attendance that the Area Agreement with Salem would end in 2008.
Presentation from Team Design: Windham High School
Dan Bisson, from Team Design, spoke about their shock at hearing that the bids came in so high. He noted that after 21 years in the business, this had never happened to Team Design. Mr. Bisson outlined the time-line with regard to the project starting in 2004 with an anticipation of going out to bid in January 2006.
Mr. Bisson stated that conversations were had with Harvey Construction to try to identify items that effected cost. He noted double digit inflation which was forecasted through the Department of Labor along with the timing of going out to bid. He also noted the rising cost of diesel fuel, cooper, steel and brick. With regard to the roadway, Mr. Bisson noted that London Bridge was deemed a significant structure; the Town requested the roadway be a town road rather than a driveway; the road was asked to be expanded to meet an abutter and underground utilities were requested.
Mr. Bisson stated that the scope of the project was reduced without affecting curriculum. The redesign was based on 800 students and that support facilities were left intact. Mr. Bisson explained flex spaces and stressed that core capacity would still be the same as the original design.
Presentation from Harvey Construction: Windham High School
Carl DuBois, from Harvey Construction, spoke to everyone in attendance about the scoped-down project by stating the program would be preserved along with the original architecture of the building. He stated that in order to get where we are today, they had to reconfigure space. He noted that they are fighting with time and money. He then stated that after the bids came in, they were analyzed and then value engineering was looked at. Mr. DuBois stressed that his company only makes a 2% fixed fee and that they work as the District’s agent. At this time, Mr. DuBois stated that after value engineering and re-bidding with the redesigned plans, the project was now at $34,945,165 or about $2.7 million over budget. He noted that other areas still need to be looked at such as soft costs and some hard costs. He noted that it was extremely tight and that they were not quite there yet. He stressed that in order to obtain better, more accurate bids, reengineering had to be done with the new specifications/designs.
Questions from School Board Members
Beverly Donovan questioned how interest money on the bond could be used in defraying the overage on the project. Mr. Dubois stated that this would require a vote from the Town to approve its use for the project. He would not want to be presumptuous.
Galen Stearns questioned what the bond interest would buy us back in terms of design. Mr. Dubois noted that the Board would have to prioritize items they wanted back in the project.
Mr. DuBois explained contingency money as money held for something unexpected – as the job proceeds, contingency money would be released.
Beth Valentine questioned how susceptible the schedule would be to bad weather conditions. Mr. DuBois noted that weather does have an effect, however, a schedule would be developed and if there were set-backs, the project would be accelerated and a contingency plan would be in place. We are dealing with a masonry building with very little drywall.
Bruce Anderson questioned how long it would take Harvey Construction and Team Design to complete a reengineered concept and completed bid package. Carl DuBois stated that if the modified design was reengineered it could capture the real essence on paper and that it was the right thing to do. He noted the best time to go out to bid is the dead of winter. Mr. Bisson stated that once the School Board agreed on a plan, the plans could be done by November with some pieces being ready sooner
Galen Stearns wanted to know if they could get GMP numbers (guaranteed maximum price) for future space. Mr. DuBois noted that the Board would have to prioritize add alternates for the bid package in order to get firm GMP’s.
Public Comment regarding Windham High School
Before opening up to public comment, Dr. Cutler explained what was included in the packet handout that was made available to everyone in attendance. Mr. Anderson reminded the public to respect each others opinions.
Tom Case stated he was in favor of moving ahead at this time, but was disturbed with pairing it down. He questioned if the new delta included site work and suggested a special town meeting be held to raise the excess money for the site work.
Jeffrey Vorce stated that in regards to the three (3) surveys that were obtained, the District should only be paying for one of them. Bruce Anderson noted that our attorney was aware of the situation. He also stated that he was against underground utilities from Rte. 111 to the site. He then gave some suggestions for cutting costs. He felt that underground utilities would cost about $2 million.
Roger Hohenberger stated that it would not cost $2 million for underground utilities. He stressed a need for a firm fixed GMP. His opinion was for the Board to take a step back and take extra time to do it the right way.
Mike Hatem agreed with the need to take extra time and to send the bid package out in the winter. He stated other properties in town should be looked at, he feels the high school project should wait. He feels the town’s needs are at Golden Brook, Middle School and adding public kindergarten.
Ken Phillips stated he felt rushed into the project. He stated he was told from day one that we have road access and that the School Board has been inaccurate. Bruce Anderson replied that 100 volunteers had been working for over 2 years on the project and that we do need a high school.
Daphne Kenyon stated she was appreciative of the explanations from Team Design and Harvey Construction. She felt we should get going on the project and that the $2.5million in bond interest should go to the high school project. She stated she would accept the School Board’s decision to wait but would not accept looking at other pieces of land.
Tom Cleary agreed with Roger Hohenberger. He would like to know which costs actually went up and suggested putting a halt on the project for the moment.
John Hollinger stated that he was horribly disappointed. He then asked Team Design if they were comfortable with this site. Team Design stated that yes, they were comfortable with the site. Mr. Hollinger noted it was the easiest thing to say to wait a year, but what will the cost be of waiting. He asked the opinion of Team Design and Harvey Construction.
Carl DuBois stated there was always a risk in waiting. He noted that they can provide detailed backup numbers for the $12 million delta, but that they do not want to compromise the bidding process by disclosing such information now. He stated he understood both sides of the equation – that this was extremely tight, but what is the cost of waiting.
John Hollinger stated we need the best economic choice from Harvey Construction and Team Design. Mr. DuBois stressed that he believed they could find money if the project was reengineered and went back out to bid. He also noted that they were able to get the delta down to $2.7 million in just 2 weeks.
Robin Cino thanked the School Board for their time and effort and questioned what the risks would be for waiting a year. Bruce Anderson responded by stating the risks would be that if we cannot build for $33million range then we would have to go back to voters for more money; we would have to go to voters to ask for permission to use the bond interest; inflation is a risk and although Salem states we can stay for one more year, they have us over a barrel.
Dr. Cutler noted that the State of New Hampshire would not allow our high school students to sit on the side of the road. Salem would not agree to a Tuition Agreement but would agree to a short-term Area Agreement.
Pam Kaiser stated that it has been clear that we need a high school since 1999. 77% of Windham voters said yes to building our own high school. We told our School Board to go forward. We are talking about our 700 students. She then stated with stand with the School Board and build it.
Randal Donovan had two (2) observations: inflation has an impact – it is hard to believe it is a 35% increase and that the new proposal gives us 79% of what we were told we would get. How much will it cost to scope back now and how much money will it cost down the road. He stressed to look and understand the numbers.
Brian McNamara stated he was disheartened with the new scope. He suggested adjusting the site costs but still keeping original project.
Kimberly Smith requested an explanation of the money in Article 3. Business Administrator, Brian Gallagher explained that $9.6 million was for the land purchase, site costs and engineering and that $3.4million was for the facility, furnishings, contingency and permitting fees. Dan Bisson noted that the land article was to get the road built.
Kimberly Smith questioned what fields were included in the project. The Board explained there are three fields involved, football, soccer and a baseball field. They also stated that there never was a track in the original proposed design, however there is space to build a track later.
Carl DuBois noted that at present, it would cost $1.2 million to finish the auditorium, $280,000 for the 2nd gym and $750,000 for the finished third floor. Kimberly Smith stated that she thought we should wait and get firm bids and feels confident the voters will approve the use of the bond interest come March.
Beth Valentine suggested two (2) difference scenarios: wait, fine tune plans and get a GMP and then ask voters permission on the bond interest; or if the answer is no from voters, the alternative at that time would be that we can not even afford the scaled back model. She is really concerned that if we do not get additional funds in March, that we will be affecting the program of studies.
Carl DuBois stated that he felt the numbers didn’t add up and that the high price was not solely due to inflation. His company will go back and look at numbers more closely, as they have not had sufficient time yet to do so.
Jim Frisone stated that he is a supporter of the high school and thanked the School Board and volunteers. His concern is the time frame and budget. He feels delays can continue and that it would be miraculous to open in September 2008. He stated that we voted for a first class school and thinks the confidence in town is low. He feels we need to look at the long-term impact on the Town along with home values. He suggested the Board investigate more and take their time.
Charlie McMahon asked for clarification of a track at the high school. Again it was stated by the Board that there was never a track in the proposed plans, but there is space for a track to be built later. Mr. McMahon appreciated Harvey Construction, but feels construction management is an open checkbook program. He doesn’t support reducing the scope of the project. He stated that Windham supports a high school but the Board should wait until the March vote. He wants a first class high school. His points were as follows: site is biggest cost; we need to do it for the future children; doesn’t want to do enough just to get by; industrial arts are important; redirect efforts; wants to do as much as we are getting now from Salem High School or better; feels we are settling for less and it will bring down property values; look at other sites in Town – there are choices; wants to do the right thing the first time; taxpayers need to know impact. To that end, he implored the School Board to take a step back.
Bruce Anderson questioned representative McMahon as to why Windham was losing money at the state level. Mr. McMahon responded by saying he continues to fight at the state level but that Windham is not at the top of their list for education reimbursement. The state feels Windham is wealthy and that we are not a needy town.
Beth Valentine took this opportunity to comment on education funding. She stated that the Board expected our Representatives to speak on our behalf. She would like to know why the entire southern tier of New Hampshire is silent. She would like our Representatives to explain our growth problems and noted that a lot of citizens work in Massachusetts and pay Massachusetts taxes. She hopes our Representatives can work with the School Board.
Beverly Donovan wanted to be clear that we will not be loosing Tech Education, but rather components are just moved around within the space.
Mark Charbeaneau stated that it is an extremely tough piece of land. He felt it was a fact, that if you continue to delay it will cost more money. He noted that energy costs have been driving up construction costs and further noted that China is gobbling up our raw materials.
Alan Carpenter stressed that we don’t really have a choice. He noted that the Articles were very specific. Timelines are important and we have a compressed timeline. He felt that by pushing out, we will gain more competitive bids. He feels it is not realistic for the School Board to look three (3) years down the line and predict costs. He is concerned that we haven’t broken ground yet and feels that there will be other issues.
Mark Brockemeier stated that the worst thing is to make no decision at all. He stressed that a $34 Million scaled back high school will probably cost $38 Million later. It may not have porcelain tile or a 2nd gym but it has adequate space enough. He stated that the students will get a first class high school and that programs are maintained. This is a first-class facility. He noted that we maybe won’t open in 2008, but urged the Board to move forward and he congratulated the Board on keeping the core curriculum.
Kevin Waterhouse echoed Mr. Brockemeier’s sentiments. He stated that he has seen public works and highway construction costs go up. He asked the Board not to delay and to come to us in March with a list of priorities and ask the voters for permission to spend the Bond interest. Delays cost money and it would be absurd to wait. He also noted that the site is large enough.
Laura Bellavia confirmed that a track was never on the first proposal, and if Team Design reengineered the plans that it would take 3 months. She also confirmed from that point, it would take Harvey Construction 1 month to receive new bids. She stated that she was torn as to whether to start now or wait for re-bid.
Carl DuBois reiterated that they had not made any commitments to subcontractors yet. They will need to know exactly what they are bidding on.
Diane Carpenter echoed Mr. Waterhouse sentiments. She stressed that the Town not loose sight regarding the land. It was purchased because it was big enough to hold two schools. She asked the Board to give priorities in March. She also noted that Windham still will attend Salem High School for the vocational programs as do other schools currently. She stated that Salem wants to be able to plan for when we leave and that Windham has waited long enough.
Dennis Senibaldi questioned Brian Gallagher as to how much money the District had paid Team Design to date. He stated he was not happy with Team Design and that he felt it was beyond comprehension when they did not see London Bridge as an issue. He stressed that the Board should consider suing Team Design. He also stated that we have residents in this town that can not afford this.
Brian Gallagher, Business Administrator, responded to Mr. Senibaldi’s question - through July, there were about $5.6 million expended: This included $3.3million – land, counsel fees, land surveying fees and $1.8 million paid to Team Design.
Chairman Anderson commented that London Bridge was identified a long time ago by Team Design.
Dan Bisson of Team Design responded, by stating that he found some statements outlandish and that if was no fault of Team Designs that they could not get on the site sooner. He stated that bidding could not go out in January, 2006 as planned because of the London Bridge issue. He also noted that the NHDOT was sitting on the traffic study of RTE. 111, and that Team Design could only react on other agencies as best they could. He noted countless evening meetings and items that were not in their control.
Name Withheld from Sign-in Sheet – Person questioned how many students there would be per classroom. The Board responded that there would be approximately 24-25 students per classroom.
Karl Dubay stated that he felt bids were high on all types of projects, and that they were only going up in price. He stressed that it doesn’t matter if you wait 6 weeks or 6 months it has nothing to do with the design. He questioned why elected officials are telling us to wait and that it is confusing to the voter. He noted that this plan can be flexible and that the core facility can be added onto in the future. He also stated that any site in Windham is difficult to build upon and that a better site does not exist.
Mr. Dubay then reminded voters that we as a town have current use fees that we can determine will be used for the high school project. These fees add up to about $1.2 million yearly. He reminded people that we need to look at this as one big family and to do what is right.
Joe Sharon stated that if the town is going to delay the project, then we need to get answers from Salem with regards to the terms for a 1 year contract. Mr. Sharon asked the Board if we had secured the land from Mr. Logan
Attorney Michael responded by saying that yes we have a contract with Mr. Logan – we have access. To Attorney Michael’s knowledge, there are no other land obstacles.
Donna Hume urged the Board to go forward and to come back to voters later with a priority list.
Pam Kaiser addressed the Board again by stating that Windham is not a community of fear and anger but rather one of hope. She noted that it was not Team Designs fault and thanked everyone for their work thus far.
Tom Case addressed the Board again by stating he would like the road started next week. Mr. Anderson responded that he understood what he wanted, but that this site is called a balanced site – there is a lot of cut and fill.
Dr. Cutler made note that the Town would be fully reimbursed 30% by the state. It does not matter what the new design will be. She also noted that any prioritized projects would also be subject to state reimbursement.
Mr. Case questioned if we could go back to a drive way with overhead utilities. Mr. Anderson responded by stating that London Bridge is part of the Master Plan by the Town. Beverly Donovan noted that it would be worthwhile for the town to have a town road as this could generate future use fees/taxes.
At this point in time, Chairman Anderson read a letter from a member of the public, Chris Rossetti. Mr. Rossetti went on the record as stating he would like to see as much of the structure built as fiscally possible, while leaving some classroom space and areas unfinished for the time being. He noted that Windham High School is going to be a welcomed addition to our community and thanked the Board for their dedication to the education of our community’s future.
Beverly Donovan made a Motion that the School Board Begin Construction of Windham High School with a 2nd by Barbara Coish. Motion did not carry.
Galen Stearns stated that after listening tonight, we do owe our residents a first class facility and a GMP (guaranteed maximum price). He noted that we do not have a GMP yet and we may have other problems down the road. He stressed that it would be unfair to all teachers and Salem High School if we can not open on time. Mr. Stearns also stated that he felt we had insufficient funds to begin the project, we need to wait until we have firm, reengineered plans and then go to voters with choices in March. Mr. Stearns would like to get clarification regarding the wording of the land article. He suggests the Board step back and take a breath.
At this point, Bruce Anderson questioned Brian Gallagher about the difference tax implications regarding the Bond. Mr. Gallagher stated that after several conversations with Bond Counsel, he was lead to believe that the bonds would remain non-taxable due to unforeseen circumstances. However, if funds are not spent accordingly to what was set out, then we would have little rebates. To that end, Mr. Gallagher noted that if the Town never went forward with the project, the funds could be used to pay down the principal.
Beth Valentine stated that after listening tonight, it was evident that the support was phenomenal and that she has never been more committed to the project than she was now. However, she feels uncomfortable with the schedule and not having the GMP numbers. Mrs. Valentine stated that we will have a premier facility, she would like to hold off until March and go to voters with the GMP and all facts. She wants students to know where they stand.
Barbara Coish stated that she would like to see the project start tomorrow.
Beth Valentine noted that by slowing down and waiting, we may end up with less than what we see here tonight.
Bruce Anderson stressed that this has taken a big part of everyone’s life and that personally he would like to go out tonight and start the project, but he is uncomfortable with not having the reengineered plans and GMP numbers. He feels that although we will loose a school year, he cannot go forward now.
Beth Valentine stressed to everyone listening that other sites have to be off the table. She questioned if we could come back to the voters before the official March election. Galen Stearns stated that it would require a special school district meeting and that it falls into a whole host of legal requirements.
Bruce Anderson stated that the first order was to get to the original bond amount.
Motion to Begin Construction of Windham High School – Galen Stearns –no; Beth Valentine – no; Barbara Coish – yes; Beverly Donovan – yes; Bruce Anderson – no
Motion does not carry.
Consent Agenda
Dr. Cutler informed the Board of the resignation of Mickey Pelletier, nurse at Center School. She stated that they are actively seeking a replacement.
Motion to Accept Resignation of Mickey Pelletier was made by Beverly Donovan with a 2nd by Barbara Coish. Approved 5-0.
Other Business Items
Proposed Self-Contained Special Education (Pilot) Program – Tina McCoy addressed the Board about the proposed program by stating that she had applied for federal funding. She noted that it costs the district about $178,000 per year/per student to send our special education students elsewhere to be taught. She would like to use a classroom at the middle school and hire teachers to keep some students in district. She noted that this would be done on a case by case basis. She would target a few students that have not been out placed as of yet. Ms. McCoy noted that this would not affect AYP issues. She also stressed that the Board look as this now with regard to high school curriculum.
Motion to Accept Proposed Self-Contained Special Education (Pilot) Program was made by Beth Valentine with a 2nd by Galen Stearns. Approved 5-0.
Motion to Go to Non Public Session under RSA91-A:3II c) was made at 11:45 p.m by Beverly Donovan with a 2nd by Galen Stearns. All in Favor: Aye