Board may ask voters for another $3M
High school project was initially approved at $47M in 2005
BY MICHAEL ACKER Correspondent

"It's been my experience that if you are honest with people, they will understand." — Michael Macagnone Board of Education President

T he Sayreville school district is facing its most significant dilemma yet: cost overruns and delays of the high school construction project.

The Sayreville Board of Education is considering holding a special referendum in December to ask voters for an additional $3 million to complete the $47 million project at Sayreville War Memorial High School, which was originally approved in a 2005 referendum. If approved, the total cost of the additions and renovations would be about $50 million.

"For the average homeowner, $17 will buy you a better building for a better education," board President Michael Macagnone said in a press release regarding the additional funds.

The project is no longer expected to be complete by September 2009, as was hoped. It is now likely that the project would be finished in June 2010, according to board member Kevin Ciak.

"The project has not been without enormous challenges," Ciak said.

By state law, the board cannot overextend the project's $47 million cost. It can only fund as much work as voters approve. However, as contingency money continues to dwindle, it has become clear that the district will need additional funding to complete the project.

School officials cannot significantly modify the original scope of the project. However, smaller changes are allowed, and the board said it has eliminated aesthetic improvements and additions to the administrative offices, in favor of educational enhancements.

Further discussion and public input are needed before the board can decide whether to seek another referendum, Ciak said. At this point, he said, it is a matter of either getting voter approval for the additional $3 million or abandoning the project, which would significantly increase its cost.

"I can't even quantify what the costs would be of abandoning this project, independent of the educational impact of not having a finished project," Ciak said.

Board member Thomas Biesiada also stressed the importance of finishing the project. Failure to do so would have dire consequences for the district, and the additional cost of the project would greatly exceed $3 million, he said.

The referendum would likely be held on Dec. 9 if the board decides to go through with it.

"A lot of people aren't going to be happy about a new referendum to get the monies, but the building has to be done, and there will be accountability when the building is done," Biesiada said.

Change orders for phase one of the project cost the district $500,000, leaving the board with $200,000 in remaining unencumbered funds for change orders, as of last month. That figure is now down to $39,465, according to School Business Administrator Emidio D'Andrea.

However, change orders were not the primary reason for the bulk of the cost overruns, according to board members.

Ciak attributed the added expenses primarily to the rising cost of materials, particularly copper and steel. He noted that material inflation has accounted for $3 million worth of cost overruns.

"If we had that $3 million right now, we wouldn't be having this discussion," Ciak said.

Bill Morris, of Epic Management Inc., the firm overseeing the renovations, said in the board's press release that copper and steel increased by 107 percent and 83 percent, respectively, between October 2004, when the referendum dollar figure was established, and June 2006, when the board went out to bid.

Macagnone said the high cost of materials, including concrete and dry wall, is unprecedented. He said that $3 million would be enough for the district to see this project through to completion.

"We are very confident that this additional money will cover everything," Macagnone said.

The board's Construction Oversight Committee, which is composed of Ciak, Biesiada, Macagnone and board Vice President Pasquale "Pat" Lembo, met last week to discuss the possibility of seeking another referendum. Lembo said an agreement was reached with the project's architect, RSC Architects, to scale back on the board's monthly payments.

Biesiada said that approximately $56,000 in contingency money was lost due to fume hoods that are needed for the science laboratories. The borough's construction department found that the fume hoods were not in accordance with the code, so the architect had to redesign them, he noted.

Also, some of the valves in the piping of the school's B wing had to be replaced, and the port system was changed to wireless technology, resulting in more contingency money being lost, Biesiada said. Most of the $3 million that is needed would go toward contingencies, since workers never know what kind of problems or outdated structural designs they are going to run into during a reconstruction project, he added.

Ciak said the work being done this summer at the high school will be completed on time for the start of school Sept. 4. The only exception is the delivery of lockers for the locker rooms in the gymnasium. Ciak said the lockers are going to be installed in time for the start of physical education classes this semester.

Phase two construction at the cafeteria and the B wing is being delayed and is now expected to be finished in October 2009, Ciak said. The work was originally scheduled for completion before school starts next month. Workers are currently erecting steel for both structures, he said.

In the press release, officials lauded the new look of the upper and lower A wing that spans the front façade of the school, saying the work that has been finished presents a brighter and enhanced educational environment.

Crews replaced windows, removed all unit ventilators and removed the asbestos flooring, replacing it with new vinyl tile in the upper and lower A wing. The installation of a new heating, ventilating and air conditioning (HVAC) system is expected to be finished before the first day of school, but work on replacing bulletin boards, chalk boards and repainting the classrooms is going to take place next summer, Ciak said.

Workers painted the gymnasium, replaced heating units in the gymnasium and refurbished the locker rooms this summer, Ciak said. They are finishing the hardwood floor over the next two weeks.

The board is waiting until the project is complete before it considers any mediation or litigation, Ciak said. The board wants a clear understanding of the total costs that are recoverable for the entire scope of the project, he added.

The board has until Oct. 10 to determine whether to hold the referendum in December. If a referendum is held and voters defeat it, Macagnone said, the construction would halt until another referendum is successful. State law does not allow a project to be scaled back, just as it does not allow spending beyond the approved funds.

Macagnone noted that the timing of this potential referendum is bad, and no board member is eager to hold another vote on a referendum for this project. He added that he is confident the voters are going to see that it is imperative that the building be finished.

"It's been my experience that if you are honest with people, they will understand," Macagnone said.