Board approves $6.68M early procurement GMP for structural steel despite Phase 1 funding gap

The Sunol Glen Unified School District board approved an early-procurement guaranteed maximum price (GMP) for structural steel to support the Measure J main-building seismic upgrade, with a fiscal impact of $6,682,497 charged to fund 21.

Phil Savage, the bond implementation consultant, told the board that Landmark Constructorss initial Phase 1 subcontractor price was $8,043,495 and the districts available funds for Measure J stood around $7,845,576, leaving a "delta" of roughly $3.9 million for the main building. Savage said the district is working with Landmark to lower Phase 1 costs, move some scope into Phase 2 and seek a state funding match or bridge loan to bridge the shortfall. "The phase 1 here is 8,043,495," he said during the presentation.

Trustees discussed best-value scoring of steel subcontractors, workforce-certification requirements under Education Code provisions for lease-leaseback projects, and the need to keep lease terms governing any exclusions. Board members approved the early-procurement GMP so the district can secure steel now amid volatile materials prices; Savage said the early procurement is a preconstruction action and that no DSA-required work will occur before approvals. Staff warned the board they may need a special meeting in late March if further contract revisions are required.