SAN BENITO — The school board faces “critical budgetary” decisions as the district plans to complete a bond-funded construction project whose total costs have climbed from an estimated $40 million to about $44 million while the contractor and subcontractors are requesting change orders totally about $1.47 million.
On the district’s website, officials have posted Servellon’s financial report presented to school board members during a meeting last week.
“The board of trustees will need to make critical budgetary considerations and decisions in order to bring the last two bond construction projects to fruition,” Servellon stated in a website post preceding the report.
Cost-driving factors debated
On Tuesday, Joseph Palacios, president of the Brighton Group, the project’s Edinburg-based project manager, attributed much of the increased costs to the coronavirus pandemic’s economic slowdown, which sparked the supply chain crisis inflating materials’ costs.
“No one could have predicted any of these challenges,” he said during an interview.
Palacios, who said he has been presenting the school board with monthly reports since the district launched the project, said the school board approved the cost increases while revising the project in 2019 before board attorney Steven Weller negotiated the contracts during July and August 2021.
“We have not changed the costs of these projects since they were approved by the board in August 2021,” Palacios said.
In the district’s report, officials attributed some cost increases on the former administration’s decision against hiring consultants to help estimate project costs.
“The cost estimates included in the bond proposition were based on costs for similar facilities at other school districts in the area,” Servellon’s report states. “The district did not hire outside consultants to assist in the preparation of the cost estimates during the pre-bond planning process. As a result, the cost estimates included in the $40 million bond proposition were rough estimates and did not account for site development costs, inflation or specific design plans that would be selected by the district.”
Project cost increases
In her report, Monica Mata, the district’s chief financial officer, presented school board members last week with information showing the bond project’s originally estimated $40 million cost had increased to about $43.9 million to $44.02 million as of June 30, 2022.
Among the three projects, the completed indoor practice field increased in costs from an estimated $3.5 million to $4 million to about $6.7 million, the report shows.
The report shows the aquatics center’s costs increased from an originally estimated rage of $5 million to $5.5 million to about $11.2 million while the performing arts theater’s cost, originally estimated at $30 million to $31 million, were at about $24. 7 million as of Jan. 15.
In response, Palacios said the school board approved an additional “warm-up” pool be included in the aquatics center project in August 2021.
Meanwhile, the report shows the performing arts theater project is awaiting its parking lot, sidewalks, drainage work, landscaping and other features.
Change-order requests
In the report, officials state the contractor’s and subcontractors’ change-order requests are totalling $1.47 million.
In response, Palacios said he and the subcontractors will meet with district officials to negotiate the requested change-order costs.
In the report, Davila Construction, the project’s San Antonio-based subcontractor, estimates the cost of materials including steel and air conditioning and heating units increased costs by $1.29 million.
“They don’t have to be accepted,” Palacios added, referring to the change-order requests.
Construction completion dates
Meanwhile, the district’s report stated Davila Construction is requesting the performing arts theater’s completion date be pushed from upcoming July 21 to Dec. 28 while the aquatics center’s completion date be changed from April 14 to Sept. 19.
Background
In a 2018 election, 54 percent of voters approved a $40 million bond proposal to build an indoor practice field, a performing arts center and an aquatics center.
