District holds Phase IV for Feb. 8, 2007 referendum

    District voters will be asked by the GESD Board of Education to approve spending additional funds to complete the final phase of a district-wide capital project approved by voters in 2004. The board in January voted to delay the final phase of the $60.3 million capital project in order to keep the project within budget without compromising the scope or quality of the work.

    We recognize that residents may have questions at this time. We are providing the following information that we hope will help you and your family understand what decisions are being made by the school district and why.

Capital Project Q&A

Where are we?

   The new main office and entrance to Park Terrace Elementary School is complete and will be occupied by mid-January. The renovated high school library is also nearing completion. It will also be ready to open by mid-January. The new high school cafeteria was opened in late fall, as was the new entryway and main office at Boulevard Elementary School. Main offices at the high school are being moved to the 300 wing, which has been closed for renovations until recently. The renovations to the high school offices will begin as soon as the rooms are emptied.

Why was Phase IV delayed?

   The board voted to delay construction of Phase IV because construction costs were running about $1.5 million more than originally budgeted in 2003, when the original project was being planned.

   Many of these rising costs for materials are due to the enormous growth in China and India, and world events such as hurricane Katrina. The cost of some construction materials rose by more than 40 percent during the last two years. In addition, higher fuel costs have contributed to higher material and delivery costs.

Will Phase IV be eliminated?

   School officials do not want to eliminate Phase IV, but that work can only be completed if a majority of residents approve the proposed referendum on Feb. 8. District officials are currently identifying the projects in Phase IV that are vital for the health and safety of our students and staff. When that list is completed, the board will then repackage the remaining elements of the project to be included in the upcoming referendum.

What will be the total cost of the upcoming referendum?

   The cost will be determined by the scope of the project to be decided upon by the Gloversville Board of Education.

What will the financial impact of the upcoming referendum be?

   Local taxes are projected to remain the same if residents approve the proposed referendum for Phase IV. The district would pay for  97.1 percent of the costs of Phase IV with state aid. In addition, the district would be eligible to receive $2.4 million in EXCEL aid, recently appropriated by state Legislature to be used for capital construction projects.

   Thus, the district’s fiscal advisors have determined that there would be no tax impact related to the upcoming referendum.

How will these delays impact the students and staff?

   District officials are confident that the quality of education will not be affected by delaying the work in Phase IV, and that the health and safety of our staff and students will not be jeopardized.

What if voters reject the upcoming referendum?

   If a majority of residents vote no in February, the Board of Education would scale back the original scope of Phase IV of the $60.3 million project to match whatever funds (approximately $4.5 million) are still available in the construction budget.

Are the costs for Phases I-III over budget?

   Yes. Right now, the first three phases of the project are approximately $2 million over budget. 

How will this accumulated shortfall be paid for?

   In order to keep the project within the amount of money authorized by residents in 2004, members of the Board of Education can either allocate funds originally earmarked for Phase IV, or scale back the scope of Phase III.

What will happen to the money currently reserved for Phase IV?

   Of the original $60.3 million budget, between $4.5 and $5 million has been set aside for Phase IV work, pending the outcome of the upcoming vote on February 8, 2007.

Was inflation planned for when setting the budget for the $60.3 million project?

   Yes. Based on the average rate of inflation from 1993–2003, district officials budgeted three percent per year for inflation. In addition, each phase of the project contained a 15 percent contingency budget. The nearly 10-percent increase per year that occurred in 2004 and 2005 could not have been anticipated in 2003.

Why was the project planned in phases?

   Multi-facility school district projects are usually phased so as to avoid disrupting all buildings at the same time, although although some overlapping of phases would normally occur. Managing the construction at seven schools and a transportation center at the same time would have been a difficult task for district administrators, faculty and students, as well as for construction managers, architects, engineers and contractors.

Were parts of Phases I-III eliminated along the way?

   Yes. The following items were deleted to reduce construction costs:

Transportation Center

• The salt/sand storage shed.

• Perimeter fencing.

High School

•Refurbishing auditorium seating.

•Replacing auditorium carpet.

•The front entrance screen wall.

• Cafeteria air conditioning.

• Gymnasium.

• The reconfiguration of roads between the high school and middle school.

• Resurfacing the west parking lot.

• Cafeteria skylights.

• Recoating existing foam roofs.

Middle School

•The maintenance storage shed.

The following items were modified to reduce construction costs:

Park Terrace Elementary

•Simplified the ramp at the front entry.

•Replaced the sink faucets only in lieu of full fixture replacement.

Boulevard Elementary

•Handicapped lift added, in lieu of an elevator.

•Replaced glass only in the 1990 wing, in lieu of full window replacement.

•Deleted the full replacement of kitchen equipment.

•Replaced sink faucets only, in lieu of full fixture replacement.

Could these things be added to the upcoming referendum?

   Yes, where practical and cost effective.

Why were these items eliminated?

   These items were eliminated in an effort to keep the cost of construction within budget.