Board approves two GMPs; staff reports EPIC construction progress and a $5.4M shortfall on Community Engagement Center

The Spring ISD Board of Trustees on March 25 approved two guaranteed maximum prices (GMPs) tied to bond projects and heard a detailed update on bond spending, EPIC site work and operations planning, fleet purchases and a revised cost estimate for the Sheila Jackson Lee Family and Community Engagement Center.

GMP votes: Trustee Adams moved approval of the Education Performance and Instructional Center (EPIC) package 1 GMP of $16,953,586; Trustee Newhouse seconded the motion and the board approved it unanimously. Trustee Newhouse then moved approval of the multi-campus safety-systems package 3 GMP of $6,376,034; Trustee Jensen seconded and the board again voted unanimously.

Why it matters: The approvals advance construction for EPIC and districtwide safety system work funded by the 2022 bond authorization; staff said approving those GMPs will allow site work and initial packages to proceed and will increase encumbrances that move funds from available to committed as projects start.

Bond issuance and proposition breakdown: Staff presented the status of bond proceeds and expenditures. Of the $850,000,000 authorized in the 2022 bond program, roughly $318,000,000 has been issued to date (about 37% of the authorization, staff said). The bond program is organized into three propositions: - Proposition A (facilities, safety and security, and fleet): authorized ~ $681M; staff reported about $240M issued against that proposition and showed $90M expended to date, $52M available and $114M encumbered within the issued funds. - Proposition B (EPIC): authorized ~ $141M; staff reported about $50M issued and said EPIC had early planning and encumbrances; GMP 1 (approved tonight) is part of that work and a second EPIC GMP was expected next week. - Proposition C (technology): authorized $28M; staff said the technology proceeds were sold in two tranches and that approximately all of Prop C had been issued, with classroom tech and network upgrades underway.

Recent and planned spending: Staff described purchases and deliveries funded from the bond: 60 new buses (35 regular and 25 special-day buses) with safety features and smart tags; police pursuit vehicles with upgraded equipment and a new body-camera docking system integrated to district Wi-Fi; classroom flat-panel displays and devices; cabling and network upgrades for redundancy and cybersecurity.

EPIC construction and operations planning: Gary Hutton and district construction staff presented updated site plans and parking phasing. Hutton said initial construction will affect some parking during the football season but added that by playoff time most additional parking and circulation would be available. For EPIC operations, staff presented a conservative estimate of operating costs and potential offsetting revenue if the district markets the facility: - Estimated non-personnel operating costs (utilities, supplies, contracted services): about $282,819 annually (staff labeled this an average estimate). - Personnel and event operations: staff outlined three personnel groups (facility/event staff, lighting/video/technical staff, custodial/maintenance), and said a full, stand-alone staffing model could raise the annual operating cost to roughly $1.2 million if no offsets were realized. Staff emphasized some positions could be offset by repurposing existing district employees or by revenue from rentals and district-wide event management. - Potential revenue: staff presented conservative rental assumptions (arena/day $5,000; pavilion $2,000; performance hall $2,000; recital hall $1,000) and estimated that even modest utilization (25% of days rented) could generate hundreds of thousands of dollars in annual revenue, offsetting operating costs.

Community Engagement Center (Sheila Jackson Lee name) cost revision: Staff presented a three-phase estimate for renovating the existing facility (pool house/demo, new pool house/finishes/parking resurfacing, and a more extensive building renovation). The combined estimate with fees was about $7.9 million; the district had previously set aside $2.5 million from interest income for the project, leaving an estimated shortfall of roughly $5.4 million. Staff discussed options including: removing the pool scope (estimated savings about $900,000), staging work across multiple phases, or relocating the family and community engagement functions to underutilized district space (Teach Up) while deferring or re-scoping major capital work. Staff said no final decision was required at the March meeting and that they would return with options.

Audit and oversight: Trustees asked whether the bond-construction auditor had reviewed expended and encumbered costs; district staff said the auditor (Debbie Townsend) is engaged throughout project pay applications and has access to expenditures and is sampling and reviewing work as projects progress.

What passed at the meeting (actions): The board approved the EPIC package 1 GMP ($16,953,586) and the multi-campus safety-systems package 3 GMP ($6,376,034). Staff said EPIC GMP 2 and other encumbrances will be forthcoming and that the weekly bond updates will continue.

Attribution: Direct motion language and timing are taken from the meeting record; program and budget figures were provided by Spring ISD staff during the March 25 finance meeting.