NORTH ROSE-WOLCOTT CAPITAL PROJECT MAY 15, 2018

Transcription

1 NORTH ROSE-WOLCOTT CAPITAL PROJECT MAY 15, 2018 Presented by Stephan J. Vigliotti, Sr., Superintendent of Schools & Robert Magin, Assistant Superintendent for Business & Operations

2 THE ISSUE: Bids Too High On March 8, 2018, bids for the Capital Project were opened and were approximately $4 million over budget. WHY? The market trend for construction costs has been rising for the past year The steel and aluminum tariffs have dramatically increased the prices of both products The lack of workers/abundance of work in the general trades has increased costs

3 How Estimates For The Project Were Established Scope (work to be done) is developed by the Board of Education based on the New York State Building Condition Survey The District s architects and construction managers develop estimates based on the scope of the project. The estimates provided by the Construction Manager were approximately $4 million low. Many factors influence these estimates to include: current construction (labor) costs availability of qualified tradesmen amount of work in progress in an area material costs market (northeast) and time of year (season)

4 Area Project Bid Opening Results Since February 2018 a number of NYS schools have opened project bids as follows: Project Bid Date Est. GC Value Base Bid Value Variance Gananda CSD 2/20/2018 $5,100,000 $5,700,000 $600, % Olean CSD 2/27/2018 $3,850,000 $4,997,000 $1,147, % NRW CSD 3/8/2018 $11,500,000 $15,400,000 $3,900, % HFL CSD 3/13/2018 $7,400,000 $10,569,000 $3,169, % Webster CSD 3/15/2018 $3,015,000 $3,991,000 $976, % Churchville CSD 3/22/2018 $12,100,000 $14,391,000 $2,291, % % of Est. Value

5 Local School Bid Results

6 BOE Options Faced with an approximate $4 million deficit the Board of Education had three options: 1. Cut $4 million from the scope of work to be performed 2. Rebid the entire project 3. Propose an increase in funding from the original amount to make up for the shortfall to complete the work included in the original scope of the project

7 Option 1: Reduce The Scope of the Project by $4 million Pros: Current bids would still be valid. No risk of higher bids Cons: All of the reductions would be work that needs to be completed as per the taxpayers authorization in February of 2017 Reducing the scope of work to be completed by $4 million would significantly decrease the amount of work that could be completed, leaving work for future projects. By delaying $4 million of work to the future, it will result in work costing taxpayers more money than it would if the work is completed now based on escalating costs and further deterioration of facilities Not all work items included in the resolution proposed to voters would be able to be accomplished

8 Option 2: Rebid Current Project Pros: Bids may come in lower Cons: Bids could come in higher and additional scope would need to be reduced. It is estimated that rebidding the project WOULD result in additional items being reduced from the original scope The timeline of the project may be extended

9 Option 3: Vote To Authorize Additional Funds Pros: Would allow the work in the original scope to be completed Would receive additional state aid (approximately $2.5 million) Would allow the project to be completed as advertised (Fall 2020) Cons: Would require taxpayers to authorize an additional $2 million dollars of capital reserve that could have been applied to future projects

10 Board Of Education Decision The Board of Education elected to let the voters decide whether or not to allocate additional funds to complete the work covered in the original proposition Considerations: Construction costs for work would cost taxpayers less now than in the future Concern over additional deterioration of the facilities If Proposition 4 is passed, there would be no impact on tax levy: $2.5 million State Aid, $2 million Capital Reserve

11 If Proposition 4 Is Defeated. If Proposition 4 is not approved, the Board of Education would have only two (2) remaining options: 1. Rebid the project 2. Reduce the scope of the project by approximately $4 million Some of the work that will be eliminated is work that voters were told would be in the original project. However, the Board of Education can not overspend the amount of the original proposition and thus reductions would have to be made. The following slides contain a list of the items that could be reduced in the event the Proposition 4 fails:

12 Potential Items To Be Removed From The Project

13 Potential Items To Be Removed From The Project (continued)

14 NORTH ROSE-WOLCOTT PROPOSED SPENDING PLAN

15 PROPOSITION NO. 1: Proposed Spending Plan Proposed Spending Plan of $28,467,400 The District s NYS Tax Cap Calculation is 4.09% which means under the Law this could be proposed with a simple majority needed for passage For the 3 rd year the Board is including a $100,000 Capital Outlay Project. The project will receive 83.5% state aid with a net cost to the tax payers of approximately $16,500. The funds will be used to restore windows and masonry at North Rose-Wolcott Elementary.

16 PROPOSITION NO. 2: Purchase of Six (6) Buses Net amount due to Seller after trading in old buses - $541, With the approval of Proposition No. 2, we will use $541, from our bus reserves. The purchase of six (6) school buses for the School year after trade-ins Amount $541,638 State Aid Reimbursement at approximately 87.2% $472,309 Estimated Net cost of 6 buses $69,329

17 Proposed Tax Levy Tax Levy: $9,383, Tax Levy: $9,562,122 This is an increase of 1.90% The district s tax levy limit (tax cap) is 4.09%

18 Tax Levy History - Years Tax Levy Limit Actual Increase % 0% % 0% % 0% % 1.9% % 1.9% 5 year levy increase average: 0.76%

19 NR-W Tax Rate History $19.00 NR-W Tax Rate History Dollars Per Thousand $18.50 $18.00 $17.50 $17.00 $16.50 $16.00 $15.50 $15.00 $14.50 $14.00 $18.69 $16.07 $15.53 $15.08 $15.30 $15.29 $15.19 $15.05 $14.93 $14.84 $14.86 $

20 Propositions/Election of Trustees to the Board of Education PROPOSITION No Budget Be it resolved that shall the budget for the North Rose-Wolcott Central School District (the District ) for the fiscal year commencing July 1, 2018 and ending June 30, 2019, as presented by the Board of Education, in the amount of $28,467,400 be approved and adopted and the required funds be appropriated and the necessary real property taxes required shall be raised by a tax on the taxable property in the District to be levied and collected as required by law.

21 Propositions/Election of Trustees to the Board of Education PROPOSITION No. 2: Bus Purchase RESOLVED, that the Board of Education of the North Rose-Wolcott Central School District, Wayne County, New York, is hereby authorized to spend $541, from the District s existing School Bus Reserve Funds approved by the District s voters in May of 2016 for the acquisition of six school buses.

22 Propositions/Election of Trustees to the Board of Education PROPOSITION No. 3: Annual Appropriations for Wolcott Public Library and Rose Free Library Shall the annual sum collected by the North Rose Wolcott Central School District as required by New York State Education and Municipal laws for the operating budgets of the Wolcott Public Library and the Rose Free Library, as determined by both Library Boards of Trustees, be increased by $12, to the total sum of $144,100 annually to be allocated in the amounts of $101,000 to the Wolcott Public Library and $43,100 to the Rose Free Library.

23 Propositions/Election of Trustees to the Board of Education PROPOSITION No. 4: Increase the Maximum Estimated Cost of the Project Shall the Board of Education increase the maximum estimated cost of the Project approved by the District voters on February 28, 2017 from $30,590,000 to $35,095,000 and amend the plan of finance to spend $11,500,000 from the District s Capital Reserve and the levy of a tax which is hereby voted for the foregoing in the amount of $23,595,000 subject to any other revenues available for such purpose, which tax shall be levied and collected in annual installments in such years and in such amounts as may be determined by the Board of Education and in anticipation of the collection of such tax, bonds and notes of the District are hereby authorized to be issued at one time or from time to time in the principal amount not to exceed $23,595,000, and a tax is hereby voted to pay the principal and interest on said obligations when due?

24 VOTING DETAILS Budget Vote: Date: May 15, 2018 Time: 12:00 noon - 9:00p.m. Location: High School, Salter-Colvin Road, Wolcott, NY Absentee ballots: Applications for absentee ballots may be obtained from the District Clerk between 8:00 AM and 4:00 PM Monday - Friday, excluding holidays. Applications must be received at least seven (7) days before the election if the ballot is to be mailed to the voter, or the day before the election, if the ballot is to be delivered personally to the voter. The District Clerk must receive absentee ballots no later than 5:00 PM local time on Tuesday, May 15, A list of all persons to whom absentee ballots have been issued will be available for public inspection during regular business hours at the district office. The District Office has moved and is now located at 6188 West Port Bay Road, Wolcott, NY. (old Electromark building)

25 QUESTIONS?