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APPROPRIATION COMMITTEE - STM 2016 -4 (PART 1)
<br />NEASC placed MRHS on "Warning" status solely due to the condition of the building. This warning has
<br />forced the school to provide regular progress updates to NEASC on addressing these issues.
<br />In addition, the existing 40 year -old building is no longer properly sized. With a total gross floor area of
<br />305,000 sq. ft., it was built to handle 800 students. Experience has shown that this is much larger than the
<br />actual enrollment coming from member towns.
<br />Renovation is not a practical option. A capital project to renovate the existing building would trigger a
<br />mandate to correct all outstanding code violations, raising the price to over $100 million. With no swing
<br />space, the renovations would create up to ten years of continual disruption and displacement. The renova-
<br />tion would not receive MSBA support, and would not be eligible for supplemental funding from capital
<br />fees for out -of- district students. Therefore, a renovation project would take longer and cost member towns
<br />more than the proposed reconstruction.
<br />Reconstruction
<br />In 2009, the MSBA agreed to partner with MRHS on a school renewal project with a reimbursement rate
<br />of at least 40 %. The next step was to initiate the Feasibility Study required by the Massachusetts School
<br />Building Authority (MSBA). A school building committee was formed and an owner's project manager,
<br />architect and estimator were hired. However, the project planning missed key MSBA deadlines while the
<br />District's towns disagreed on details of the school project, including the size of the new school.
<br />Understanding the critical nature of this project, the MSBA was patient and granted several deadline ex-
<br />tensions, but in 2014 they set a final deadline of June 30, 2016. In 2015 the School Committee agreed to
<br />design the school for an enrollment of 628 students. The MSBA process moved forward, creating prelim-
<br />inary costs estimates for three options: school renovation, school renovation with an addition, and a new
<br />school. The cost estimates showed that the new school option was not only the most cost - effective, but
<br />also that it had the shortest construction time, with an expected opening on or before September 2020.
<br />The new school will be constructed adjacent to the existing building on land that the school currently
<br />owns in Lincoln, MA. It will have a total gross floor area of 257,745 sq. ft. and will support an enrollment
<br />of 628 students. The design of the new school will enhance the MRHS educational program by allowing
<br />the implementation of a Career Academy Model, which closely connects and integrates career education
<br />with rigorous academics. The District will seek LEED Silver certification for the new building.
<br />Funding
<br />The total project budget now stands at $144,922,480, with a construction budget of $119,200,892. The
<br />MSBA has agreed to a reimbursement rate of 44.75 %, but only for costs that it deems eligible. The ineli-
<br />gible costs total $46,018,268, the majority of which are due to the project's $446 per sq. ft. construction
<br />cost which exceeds the maximum MSBA reimbursement rate $299 per sq. ft. This means $33,829,737 of
<br />the project costs are ineligible for reimbursement. The project's cost per square foot ratio is comparable to
<br />that of other recently completed renovations at Massachusetts vocational technical schools, which typical-
<br />ly have a higher ratio due to the specialized spaces needed for vocational education. Additional ineligible
<br />cost include $6,192,009 for a construction contingency; $3,050,538 for site work costs, which exceed the
<br />MSBA reimbursement level of 8 %; $1,295,588 for construction bonds, insurance and other costs;
<br />$1,150,396 for permitting; and $500,000 for moving and communications costs. The total MSBA reim-
<br />bursement is estimated to be $44,100,000, which is 30.4% of the total project budget.
<br />The MRHS funding plan anticipates issuing a series of 30 -year bonds to fund the construction. Three
<br />bonds would be issued: one in July of 2016, a second in July of 2018 and a final issue in 2020. The bonds
<br />would use a level debt - service schedule, with relatively consistent annual payments. This bonding sched-
<br />ule creates a higher total interest cost, but it provides some advantages. It significantly reduces the higher
<br />debt service payments that happen in the early years for municipal bonds on a level - principal schedule. It
<br />also allocates debt service evenly over the life of the bonds.
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