Board awards about $11.6 million in construction contracts and weighs bond-timing options

The Bronxville Union Free School District Board of Education approved four construction-related contracts for an upcoming project and discussed financing options, including the potential to split a bond issuance to hedge against uncertain interest rates.

The facilities lead presented bid awards recommended by the facilities committee and noted vendor reference checks. The transcript records the awards as: general construction to Poratty Corp for $8,739,539; plumbing to Mengele Mechanical for $587,000; HVAC to Mengele Mechanical for $1,562,000; and electrical to Neighbor Electric Corp for $698,765. The facilities lead said these vendors had prior work for the district, references were checked, the contracts include allowances for change orders and letters to proceed would be issued the next morning. The aggregate of the four recorded contract amounts is approximately $11.6 million (calculation based on figures read in the meeting). The meeting transcript contains vendor spellings as recorded; those spellings have not been independently verified in this report.

Board members and an adviser discussed the financing outlook. The adviser described a rising-rate environment and gave a working estimate that a bond issued now might price around 3.5 percent. Board members debated amortization length (15- versus 20-year) and whether the district should split the bonds (issue part now and part later) to manage risk; the finance discussion concluded with a plan for further review by the finance committee before final bond issuance decisions.

A motion to accept the contract awards carried and the facilities lead said letters to proceed would be issued the following morning, allowing the construction work to begin the summer schedule described by staff.