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Sunol Glen Unified weighs financing and phasing options as main building seismic costs rise
Summary
Consultants told the board the historic main-building seismic renovation now estimates $12–13 million in scope, well above the original $8 million construction budget; advisers recommended a mixed bond/bridge strategy that would yield about $3.6 million now while warning of repayment risk if state funds do not arrive as expected.
Sunol Glen Unified board members heard detailed presentations on a widening funding gap for the district's main building seismic upgrades, with consultants estimating a full-scope cost of "$12,000,000 to $13,000,000" and describing state and local funding timing that could leave a multi‑million-dollar shortfall.
"The cost of the work and the latest cost estimate is $12,000,000 to $13,000,000 for the full scope," said Bill Savage, the district's bond implementation consultant, summarizing destructive testing, DSA submittal status and the need to preserve character‑defining features of the historic building. John Isom, the district's financial adviser, walked the board through several financing scenarios and recommended a hybrid approach. "What that allows you is to net about $3,600,000," Isom said of a combination of current‑interest bonds and capital‑appreciation bonds.
The presentations laid out three main levers: (1) adjust the project by phasing and reducing nonessential elements; (2) pursue state seismic mitigation and small‑district funding under Proposition 2 (applications open November 2, 2026); or (3) use short‑term bridge borrowing to accelerate work now and repay once state funds arrive. Consultants emphasized tradeoffs: bridge loans reduce the short‑term funding gap but add interest costs and shift repayment risk to the district if anticipated state reimbursements do not materialize.
Board members asked for more granular phasing plans and additional cost estimates from the selected contractor for the November study session, where staff plan to bring an updated revenue adjustment, a refreshed bond authorization resolution, and a request for direction on bridge financing.
The board did not take a final vote on a financing package at this meeting; staff said they will return with modeling and contractor input at the November study session.
