San Marcos Unified approves $7.4 million preliminary GMP for Nob Hill; bond-funded projects face rising costs

The San Marcos Unified Governing Board approved a preliminary guaranteed maximum price for Balfour Beatty Construction Company to begin the first construction increment at Nob Hill Elementary School, a staff member said during a special board meeting. The price for the initial work was described by staff as about $7.4 million.

The vote clears start of grading and interim housing to be built on the existing field after school ends, enabling classroom moves off portables and allowing construction to begin immediately. "They intend to start that on June 12, the day after school's out," a staff member said during the motion presentation. Member Herrick moved the approval and member Martin seconded; the motion carried on a voice vote.

The action comes as district staff updated the board on Measure JJ-funded projects and rising construction estimates. "We anticipate receiving about a $149 million of bond proceeds" from the first series of Measure JJ bonds, Erin Garcia, assistant superintendent of business services, told the board. Garcia said the district plans to use roughly $149 million from the first bond series, about $68 million from a second series planned three years from now, and about $129 million of additional funding sources across nine approved facility projects.

Those additional funding sources include CFDs (community facilities districts), state school facility funds, developer fees and redevelopment funds, Garcia said. One planned property acquisition in North City — four acres already purchased with redevelopment dollars and the adjacent four acres planned to be purchased with Measure JJ proceeds — remains part of the funding plan.

Rising contractor estimates prompted changes to project scopes and schedules. "Our architects gave us estimates that were low on the low side. As we brought on our general contractor, ... their estimates came in significantly higher," Garcia said. Tova Korman, executive director of facilities, said Nob Hill’s site elevations add roughly $8 million to $9 million in cost compared with earlier estimates. Korman said staff explored scope reductions but found few viable options at Nob Hill without leaving kindergarten or special-education classrooms undersized or without required bathrooms.

To manage risk, staff said each project currently carries a roughly 9% contingency: 3% held for potential contractor omissions, 3% for district-driven program changes and 3% for the architect. Korman said a separate design allowance of about $6 million remains while designs are finalized. She also cited an example of state-led scope growth: the Division of the State Architect required about $10 million in structural changes at San Marcos High School, underscoring the need for contingency funds.

Because costs rose significantly for Nob Hill and Woodland Park, district leaders said they will postpone construction at Paloma Elementary until the second series of Measure JJ bonds is available in about three years. "At this point, it does look like it's gonna be postponed for three years," Garcia said. Staff stressed the decision was to avoid starting Paloma and then stalling mid-construction if later bond proceeds are delayed.

The board also received project-level updates: Mission Hills High School’s athletic project to replace stadium turf, track and add lights is underway; Woodland Park’s modernization remains subject to DSA scheduling delays related to emergency workload in other offices; and the Carrillo field and drainage project is being funded from sources outside Measure JJ. Korman said interim housing for Nob Hill students is expected to be set up immediately after school ends and that the district is coordinating with teachers and principals on the move.

During public discussion and board questions, members pressed staff on contingency use and the district’s process for re-evaluating scope to avoid further postponements. Staff said contingencies tied to DSA approvals are released after DSA sign-off; other contingencies remain through construction and are reconciled at project completion.

The board approved the preliminary GMP for Nob Hill by voice vote (moved by Member Herrick; seconded by Member Martin). No roll-call tally was announced. The board set its next regular meeting for Thursday, June 12, 2025, at the North County Regional Educational Center.