Board approves GMP amendment; district leaders outline renovation costs and contingency exposure

The Brooklyn City Board of Education on Aug. 19 authorized a guaranteed maximum price amendment with construction manager at risk Dunlop & Johnson for Package 2 of the district's capital-improvement program.

Board discussion focused on the pricing and contingency structure of the Guaranteed Maximum Price (GMP) package the board approved that night. A board member prefaced the vote saying, "the hard cost of the total project with D and J is at $17.05," and the superintendent and staff explained that figure reflects roughly $15.03 million in hard construction costs plus allowances and contractor fees that bring the total near $17.05 million.

The superintendent told the board the district's bond assumptions include conservative estimates for interest earnings (Stifel initially projected about $1.1 million; the district budgeted about $750,000) and about $1.3 million in reimbursables or allowances built into the project. After current allocations, the board packet showed approximately $19.58 million of bond proceeds earmarked to the project; with maximum use of allowances and contingencies the total project exposure could approach the low $20 millions range.

Project-specific line items discussed included abatement and demolition, a community walking path and asphalt work (figures discussed clustered around $90,000—120,000 depending on scope), terrazzo refinishing ($135,000) and cafeteria flooring ($80,000). The superintendent said some capital-improvement funds (referred to as 003 or 07L in the packet) could be used if contingencies are fully expended.

Treasurer Mr. Shearhart described a strategy of delaying bond drawdowns to maximize interest revenue and noted that no drawdowns had been made yet; July interest income on bond investments was reported as $15,273, and the treasurer said the market value of reinvested interest was roughly $658,000 as of July 31. He said he expects to begin reimbursements/drawdowns this month or next as the project billing requires.

Votes at a glance: the GMP amendment with Dunlop & Johnson was moved and seconded and passed on roll call; the transcript records affirmative roll-call responses by board members present and no recorded "no" votes. The consent agendas and related construction-package approvals described in the meeting packet were also approved by roll call during the session.

What happens next: the superintendent said the district will monitor allowances and contingency use and report back to the board if adjustments are needed or if particular scope items should be delayed or removed to control costs. The board moved into executive session later in the evening to discuss personnel matters.