Town manager: school project moving to design‑development, guaranteed maximum price expected this fall

Town Manager Andy Tites updated the council on March 25 about the status of the school construction program and said the project is progressing from schematic design into design‑development and value‑engineering discussions. He told the council the owners’ project manager and consultants are finalizing design‑development documents and that the town expects to receive a guaranteed maximum price (GMP) from the construction manager in the late summer or fall.

Key technical and schedule points: Tites said the consultant team will provide a detailed design‑development package by late April and that the town is vetting commissioning‑agent proposals (two finalists) and reviewing value‑engineering items. He told the council that some of the remaining cost‑reduction discussions include consolidating standalone gymnasiums into a combined cafeteria/gym design; that option would reduce square footage but would affect programming. Tites said cost estimates in recent briefings have ranged from the low‑$160 million level upward, and that the project team is focused on additional value engineering to reduce cost where feasible.

Funding, PAYGO and timing: Tites explained the town will not receive earlier ‘‘PAYGO’’ reimbursement funds that had been discussed during earlier planning; RIDE (Rhode Island Department of Education) reimbursement will be paid according to the department’s schedule. Tites provided a fiscal snapshot: in fiscal 2026 the town expects to incur interest on debt issuance and estimated gross interest expense of roughly $3.5 million; the town expects to invest bond proceeds conservatively and to earn an estimated $1.5 million, producing a net FY26 financing expense of approximately $2.0 million. Because of state aid reductions tied to local wealth, Tites said East Greenwich lost roughly $800,000 in state school funding for a recent year; that cut, combined with project financing, means the town should expect to apply for an exception to the 4% tax‑levy cap in coming years to fund the construction program’s peak debt service.

Council debate and concerns: Councilor Michael Zarrella publicly raised concerns about affordability, the timing of state and federal funding changes, and the broader economic environment; he said he intends to continue pressing those issues publicly. Council members and staff noted that teachers and the school department have been involved in planning and that the town’s project team includes an experienced construction manager and owners’ project manager. The town manager said the SEC (School Construction Committee) and consultant team are meeting weekly and that several contractual packages, including commissioning services, are moving toward award.

Next steps: Tites said the town is preparing materials to present to RIDE about shifting some scope between high‑school and elementary allocations and will continue value engineering; the council will receive updates at upcoming meetings. The town expects a more definitive GMP and a firmer sense of reimbursement timing in the fall, at which point the council will have the information necessary to decide whether to proceed as currently planned.

Ending: The council continued the discussion and asked staff to return with more refined cost estimates and any recommended changes to scope ahead of the GMP. Council members said they will review the GMP when it arrives and consider any needed budget or levy exceptions at that time.