Thursday, July 23, 2009

Costs Up, Still Many Unknowns In High School Renovation

Here's another article from guest blogger Bob Williams...

Perhaps a year before construction crews arrive at Mt. Lebanon High School, board members added an additional $875,000 in fees and expenses to the $115 million project, bringing the total in added fees and scope changes since June 8 to almost $5 million.

On July 20, the school board added “commissioning” and its intent to seek “silver status” LEED certification (Leadership in Energy and Environmental Design) by the U.S. Green Building Council. Commissioning may be a PDE requirement when seeking LEED status to receive the extra reimbursement. PDE adds a 10 percent premium in state reimbursement for a project receiving LEED certification. In the case of Mt. Lebanon, it amounts to an extra $70,000 a year in reimbursement over the life of the borrowing term, board members said.

Commissioning adds another level of management oversight to a project. In addition to the architect firm, project management firm and contracting firms, a commissioning agent is employed to coordinate the mechanical, electrical and HVAC systems in a building to streamline and reduce energy usage. The bonus is there are likely fewer change orders (unless the school board adds new features), fewer callbacks for repairs after a building is occupied, and a measurable reduction in energy usage in a commissioned building versus a non-commissioned building. Studies have shown commissioning is most effective on new construction, and also when the commissioning agent is hired at the onset of the process.

One question school board members in Mt. Lebanon could not answer July 20, was whether the savings in future energy usage would offset the extra design and engineering fees, the commissioning agent fee and extra LEED certification costs. The LEED filing fee is $450. But in order to receive “silver” LEED status, Mt. Lebanon needs a specified number of points on the LEED scale. LEED gives points for energy efficient amenities such as geo-thermal heating or energy efficient lighting. There's a wide spectrum of items LEED grants credit for.

Right now, LEED gives certification for projects receiving from 26 to 69 points. On Jan. 1, 2010, however, LEED is changing its point system and requiring 40 points for certification and 50 points for “silver.” LEED upper point range "platinum" will be 80 points after Jan. 1.

Board member Mark Hart said the district could add all the energy efficient features without the LEED certification and commissioning. Costs would be less upfront and energy savings would still come down the road, he said. He voted against the $875,000 expenditure. Board member Dan Remely said the $450 fee would be payable immediately. But, he said the architect and project manager could weigh costs to see whether the building could even attain LEED silver. Those data will be offered in November. If it couldn’t attain silver, some or most of the $875,000 would be saved.

Board President Alan Silhol asked representatives from Celli-Flynn Brennan Architects to rate on a scale of 1-10, how confident they were the building could attain LEED silver. They said they were “extremely” confident, but declined to assign a number on a scale of 1-10.

Board member James Fraasch said costs are of extreme concern to him even before the project begins. “We don’t even know how many classrooms will be in the new building, but we are already within a hair’s breath of referendum,” he said. “Plans are to make Horsman Drive two-way, but we have no indication whether that will impact Lebanon Avenue or Cochran Road, and those costs. That's one example of what we just don't know about this project.”

Architects said the site work budget is $4 million and possibly could account for those roadway fees.

Right now, if the district borrows beyond $115 million, a referendum would be required to pay any costs beyond that. District Finance Director Jan Klein said perhaps the district could borrow $90 million this year in two bond sales. In a three and one-half year project, the $90 million (and interest generated) would carry the district through a couple years.

By that time, the debt limit will have increased as older debt is paid down. The district also has $10-$12 million in various surplus funds that could be drawn to pay for additional work. That money is separate from the current debt limit and won’t count towards it, Klein said.

On June 8, the school board added two more lanes to the proposed swimming pool and a third gymnasium, adding over $4 million to the $110 million estimates.

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1 Comments:

Anonymous Bill Lewis said...

Compare this coverage with that of the following posting of the Almanac article by Bob Williams' *replacement* .. both attended the same meeting, I hear.

July 23, 2009 8:13 PM  

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