Select Board reviews updated GMP and funding plan for New Island Home project

The Select Board heard an updated budget and Guaranteed Maximum Price (GMP) for the New Island Home project at its April 15 meeting. Staff reported a proposed construction total of $94,321,000 and a total project cost near $137,310,000. The finance director said contingency had been reduced from roughly $10.1 million to about $6.0 million after removing tariff contingencies and refining allowances, and that certain allowances were reallocated.

Board materials show a proposal to retain prior borrowing levels: to keep the borrowing requested in Article 11 at $119,000,000, staff proposed using $8,500,000 previously appropriated by Article 11 (2022), $500,000 from sewer (Article 4), and drawing from Island Home retained earnings. Staff said retained earnings were certified at just over $13 million as of the previous July 1 and can cover the proposed use; a small technical amendment to warrant language would be prepared to reflect the final numbers.

Select Board members exchanged questions about cost changes, contingency reductions and how the revised figures compared to last year’s bid. Staff said the project scope remains the same as the prior year’s bid, and that small adjustments in allowances and builder’s risk insurance lowered some costs. The board did not take a final funding vote but asked staff to provide the technical amendment and final GMP figures in time for town meeting materials.