Eddy School Roof Update

I’m writing to share with you some important news that the board discussed at our meeting last night. The bids for the Eddy School roof project (new roof, fire alarm equipment, and heating and ventilation) came back roughly 50% higher than the estimate in our January 2014 feasibility study. Therefore, we will ask the citizens to authorize approximately $3.3 million instead of $2.3 million for this project. While this is very concerning, we remain committed to seeing this project through to completion.

After our discussion, we understand that there are several reasons that the bid price was higher than our original estimate.

First, the diligent work of our Building and Needs Assessment Committee resulted in several changes to the scope of the project. The most expensive of these is the replacement of the controller unit for the HVAC system. It was determined that the current unit is antiquated, far less efficient than a new unit, and potentially unreliable compared to a new unit. We also included the replacement of old sidewall above the roof eaves so that we don’t risk damage to the new roof carrying out this work only a few years from now. In addition, we opted to extend the manufacturer’s warranty from 20 years to 30 years. These additional items approached $300,000.

Second, the HVAC units themselves are approximately $450,000 more expensive than estimated. This is likely due to the final specifications, challenging construction logistics, and bid climate.

Finally, the total reflects an evolving public construction environment. Fewer contractors are pursuing a surge in municipal projects, so prices for projects are rising as a result.

While the bottom line was much higher than expected, the bids we received were competitive and very comparable. One positive is that the low bidder is a contractor with whom we’ve worked very successfully in the past.

Despite this unfortunate news, we believe that we must go forward with this project. The Eddy School is an important town asset that we need to protect and maintain. The significant leaks and the dysfunctional HVAC and fire alarm systems must be addressed. We are spending between $50,000 and $100,000 each year to maintain broken systems without getting satisfactory results. We need to move forward and get this project done. The condition of the school will only deteriorate further should we ignore this need. Delaying the project will likely cost town even more money.

In order for this project to go forward, the town must vote in favor of appropriating the construction monies ($3.3 million) by a two-thirds vote at town meeting and by a majority vote at the town election. We will temporarily borrow these funds, at a reduced interest rate, for a few years before going to permanent financing, and we may pay off some of the capital during the temporary note in order to reduce the amount we have to borrow over the long term.

I hope you this explanation helps you better understand the situation we face with this project as we go to town meeting and election. And I hope you will support it. Thank you!