FAQ
Q: What is the estimated project cost? What is Bristol-Plymouth’s anticipated share?
A: The “all-in” not-to-exceed project cost including design, furnishings, technology, utility connections, move-in and appropriate contingencies is $333M. The project’s preferred schematic design submission projected MSBA reimbursement of up to $115M, leaving the remaining amount to be paid by the District. However, the project is still early in the conceptual phase and estimates are based upon average construction cost data for schools in Massachusetts. The School Building Committee is working diligently to reduce these costs to the maximum extent possible without compromising the district’s Educational Program.
Q: What is the MSBA reimbursement rate for eligible project costs? What items are ineligible for reimbursement?
A: The projected base reimbursement rate is 57.74%. Reimbursement applies to ‘eligible’ project costs only. Examples of ineligible costs include abatement of vinyl asbestos tile, moving costs, swing space, soft costs in excess of 20% of construction cost, site costs in excess of 8% of the direct building cost, and building costs in excess of $333/SF. Although assumed ineligible scope has been factored into the projected district share, ineligible costs and space are reviewed and negotiated with the MSBA upon completion of the schematic design phase.
Q: Why not repair the existing building?
A: The estimated cost to repair the existing building is $131.7M and does not resolve the overcrowding issue. An addition/renovation option which does solve the overcrowding and satisfies the district’s approved Educational Program, thus securing state funding, has been studied and found to be no less expensive than building new. Furthermore, a new building lends itself to better energy efficiency and lower long-term operational/maintenance costs, resulting in additional savings for years to come.
Q: When would construction start/end?
A: Schematic design will be completed by October of 2021. Detailed design, MSBA approvals, and bidding continue through 2022 so new construction could start as soon as early 2023. Target opening is the Fall of 2025. A second phase consisting of abatement and demolition of the existing building and final site improvements would be completed by 2026.
Q: Does the District need to borrow the entirety of the $333M estimated project cost? If so, what happens to the reimbursement payments from the MSBA, where does that money go?
A: While Bristol-Plymouth will vote to authorize the full project value, the District does not need to borrow the full amount for the project, just the anticipated district share. Reimbursements of eligible costs are made by the MSBA on a monthly basis. Upon receipt of MSBA Board approval in October 2021, a comprehensive cashflow projection will be developed by the Owner’s Project Manager which will forecast the anticipated district’s out of pocket expenses at any given point in time. This cashflow projection can then be utilized to limit borrowing to only what is absolutely necessary to keep the project moving along, thus keeping borrowing charges to a minimum.
Q: Why is it so expensive to repair the existing buildings when a new school would require all of the same work and then some?
A: The new school will need all the things and costs an upgrade would require plus new foundation, walls, roofs, fixtures, etc. So why is it more expensive?
Because the existing building also needs those exact same items in order to be brought up to current code. The walls and roofs do not meet current energy code (lack of insulation or vapor barrier). The plumbing systems do not meet low-flow or handicap accessibility requirements. The building requires new electrical, lighting and mechanical systems to support the educational program. It is true that the new building will require foundations, but the old building would also require extensive foundation work including steel shear bracing and seismic clips throughout as necessary to meet current structural code.
When working within the confines of an existing structure, costs for these items increase exponentially. Imagine trying to install new mechanical system ductwork (to satisfy the current code’s minimum outside air requirements) in an existing small cramped corridor with low ceilings and a plethora of other old systems in your way versus the same task in a new structure which has a clear route and has been designed and framed to accommodate these necessary systems.
Q: Do the $333 million estimates include what’s needed inside the building ex: desks whiteboards? Or will this a surprise after the fact?
A: The $333M is an all-in number, it includes contingencies, furnishings, equipment, technology, utility connections, even movers for when the building is complete. Furnishings, fixtures, equipment and technology are all fully reimbursed by the MSBA with an allowance of $2,400 per student.
Q: When is the budget locked in? What assurances do we have that the building committee will not seek further increase to budget upon completion of design?
A: The Building Committee intends on seeking funding authorization in late 2021, at that point the designer’s contract will include a design-to-cost clause based upon the authorized budget to prevent what the industry refers to as “scope creep.”
Q: I don’t have children in the school system and I am concerned about an increase to my taxes, what assurances do I have that costs will be kept down?
A: Keeping costs down is a priority, and it will continue to be right through project closeout. It is understood that many residents affected by this decision do not have children in the school system. Comparatively speaking, the cost per square foot of the proposed school is far lower than that of neighboring districts going through the MSBA’s process at the same time as Bristol-Plymouth.
Q: How will Bristol-Plymouth’s share of the project costs be funded?
A: It is anticipated that most municipalities would seek to fund project costs through a Debt Exclusion, which is a temporary increase to property taxes in order to pay for the costs of the project. Debt exclusions are typically funded over a period of 20, 25, or 30 years, once the debt has been paid in full, the temporary tax increase will disappear.
Q: Where does the MSBA grant money come from?
A: The MSBA is funded through 1% of the State’s 6.25% sales tax. Each year, the MSBA receives more than 150 applicants for project funding and selects approximately 20 recipients to be invited into the Core program.
Q: What happens if the voters do not pass a debt exclusion?
A: The MSBA allows for no more than 120 days to secure project funding from the time of MSBA Board approval of the project scope and budget, slated to occur in October 2021. If a district fails to authorize funding within the allocated period, then the project is removed from the MSBA’s pipeline and the funds are offered to the next district in need of a new school. Should the project receive another invitation from the MSBA at some point in the future, the MSBA will require that the Feasibility study and Schematic design be restarted from the beginning, and be 100% funded by the district, without reimbursement from the MSBA. Due to the number of districts in need, it may take 7 years, or longer, for the district to receive another invitation into the MSBA’s program.
Q: Many residential homes are as old (or older) than the existing schools and are successfully renovated, why is that any different?
When people update their home they are not required to make it handicap accessible, install sprinkler systems, upgrade the structure’s wind/earthquake/snow capacities, install new low-flow plumbing fixtures, or ductwork for code required mechanical ventilation.
New homes are constructed with 2x6 exterior walls to meet energy code, right? Now imagine they had to fur out all of the walls in their home to meet that new code, which then meant they needed to reconfigure interior walls to ensure they had proper wheelchair turning radius, all while still maintaining the minimum room size as determined by a State authority, and needing to keep their doors open to the public. If that were the case then building a new house next to that old house doesn’t sound so bad anymore, does it?
The point is: commercial building renovations/projects, and specifically those within the Educational Use Group, are held to a much higher standard. Renovations projects do exist in the MSBA’s pipeline, but are generally the result of either a historic designation or lack of space elsewhere to build upon. MSBA project data confirms that renovation is often no less expensive than constructing new, particularly as compared to Bristol-Plymouth’s cost effective design approach.