1.
From the Ground Up:
Getting Your Capital
Construction Project Started
Presented by
Michael Shilale, AIA, LEED
Architect

2.
Outline
• Getting Started - Overview
• Assembling Team
• Determining Scope of Work
• Referendum
• Design and Documentation
• NYSED
• Bidding and Construction
• Creative Financing
• Pitfalls – What to watch for

3.
Struggling budgets / Post 2% Cap
• Staff reductions
• Program reductions
• Reduction/Elimination of Capital
Reserve Accounts
• Consolidations/Closings
• Defer Maintenance/Capital
Projects

4.
Importance of
Maintaining/Upgrading Facilities
• Avg school bldg in US 42 yrs old*
• 75% built before 1970 *
• “ The Majority of our Nation’s Schools
have Inefficient Mechanical and
Electrical Systems, Leaking Roofs and
Inadequate Windows and Security
Systems.” *.
• Section 155.1
* USDOE Report “Condition of America’s Schools

5.
“First we shape
our
environments,
thereafter our
environments
Winston
Churchill
shape us”

6.
Effective schools
• Teachers
• Parents
• Environments

7.
Why?
• Extend life of materials and
systems
• Reduce maintenance and
upgrade costs
• Reduce operating costs
• 7.5 B annually on energy (more than on
textbooks and computers combined)
• High quality learning
environments - 15% of our lives

8.
Assemble Team
• Board of Education
– Facilities Committee
• Architects/Engineers
• Parent/Teacher Associations
• Community Groups

9.
Board of Education
District Facilities Committee
• Responsibility is to study and make
recommendations to BOE:
• Facilities Assessment – BCS
• Walk the Buildings

10.
RFP for Architects, Engineers
Construction Managers
• RFP process is not a bid
• Can use Quality Based Selection
Process (QBS)
• Similar to Attorney or
Accountant Procurement

11.
North Rockland Central School District
Creatively Funding Capital Projects
www.nysqbs.org

12.
Scope of Work
• Facility assessments
• Program needs
• Community needs
• Prioritize needs

13.
Facility Assessment
• Building Condition Survey’s
– (RESCUE – 2010)
– Health and Safety items !
• Five Year Plans
• Facilities Committee
• District Needs
• Existing Building Evaluations –
FP-EEB !

14.
Scope of Work
• Document District Priorities
• Determine Preliminary Budgets
– Hard Costs
– Soft Costs
• Present to BOE and Community
• Encourage Feedback - Not a
linear process

15.
Pre-Referendum
• BOE action
• SEQRA before the vote
– http://www.dec.ny.gov/regs/4490.html
• Bond Counsel
• Outreach
– Surveys
– Task Force
– Meetings

16.
Design Development and
Construction Documentation
• Complete Documents to Further
Define Scope of Work
• Pre-Referendum work usually
only part of Schematic Design
• Expect revisions in scope/costs
• Budget’s Fixed/Scope’s Change

17.
Cost Control

18.
NY SED
• AHJ – Building Department
• Letter of Intent
• Building Permit - when required
– Pure site work
– Playgrounds
– Bleacher - Grandstands
– Small storage structures < 350 sf
– Special structures - i.e. flagpoles
• Inspections
• Supervision
– Clerk of the Works, CM

19.
NY SED
• Documentation Required:
– State Historic Preservation Office Review
– Existing Building Evaluations EEB
– Contract Documents (Drawings and
Specifications)
– Building Permit Application
– Five Year Plan
• BCS Health and Safety Items

20.
Emergency Projects
• Must require immediate corrective
action that cannot wait
• No need to advertise bids
• May not need multiple proposals
• Drawings and Specifications required
• SED approval required

21.
Hazardous Materials
• Environmental Assessment
– Asbestos
– Lead Paint
– PCB’s
• AHERA reports
– In 1986, the Asbestos Hazard Emergency Response Act (AHERA)
was signed into law, requiring public and private non-profit
primary and secondary schools to inspect their buildings for
asbestos-containing building materials
• Update every three years

22.
State Building Aid
• Reconstruction, Additions and
New Buildings
– BAU Calculations
• Payable over 15, 20 or 30 yrs
• Project > $10,000 to be eligible
• District Aid Ratio
• 100K exception
http://www.p12.nysed.gov/facplan/publicat/building_aid_guidelines_072804.html

23.
Creative Financing
• EPC
• EXCEL
• Grants
• FEMA
• Leasing
• Primary Electric

24.
ENERGY SAVING
PERFORMANCE CONTRACTS
• No cost to taxpayers
• No referendum
• Qualifies for Building Aid
• ‘Green’ your buildings
• Improved test scores
• Increased productivity
• Reduced absenteeism

25.
ENERGY SAVING
PERFORMANCE CONTRACTS
• All risks and
responsibilities of any
Construction Project
• District Priorities need to
be made clear
• Construction quality more
difficult to control
• Measurement and
Verification is important to
assure savings

26.
EXCEL
Expanding our Children’s
Education and Learning
• Use to fund capital
improvements not eligible
for EPC or other strategies
• No cost to taxpayers
• Qualifies for Building Aid
• Building Aid Increases
Capital Dollars of EXCEL
project at no cost to District

27.
EXCEL
Expanding our Children’s
Education and Learning
• Need voter approval
• Limitations on what type of
projects can be funded

28.
EXCEL
Expanding our Children’s
Education and Learning
• Include Building Aid in Project total?
• Calculations
District EXCEL Aid $2,600,000
Building Aid Ratio 53%
Total Building Aid $1,378,000
Total Capital Project $3,978,000

29.
NYS DEC GRANT
• The result of consent
decree from NYS DEC
• Competitive application
• Qualifies for Building Aid
• Energy Modeling showed a
40% reduction in fuel use
• Hybrid boiler design to
permit interruptible gas
service

30.
NYS DEC GRANT
• Cost to apply
• No guarantee of funding

31.
FEMA FUNDING
• Storm flooded baseball field
• Federal Disaster area declared
• Filed with FEMA
• Qualifies for Building Aid
• Field restored and drainage
improvements
• FEMA conducts information
seminar
• http://www.nysasbo.org/no
de/8221

32.
FEMA FUNDING
• Must be a declared emergency
• Long time frame
• Federal and State oversight
• Will only pay for remedial
work based FEMA estimates
• Must work with state
emergency office SEMO
• Must spend the money first
and then be reimbursed.

33.
LEASING
• No Voter Approval
• Can pay for bleachers, solar
panels and even
‘temporary’ classrooms
• Great for BOCES

34.
LEASING
• Still a construction project
• Even if not going to SED
should still have expert
oversight and inspection
• More difficult to control
quality on modular space
contracts

35.
CONVERSION TO PRIMARY
ELECTRIC SERVICE
• Many electric services over
40 years old
• One District - Two services
failed in last 10 years
• Planned service upgrade
permits conversion
• Payback under 15 years
• Qualifies for Building Aid

36.
CONVERSION TO PRIMARY
ELECTRIC SERVICE
• Voter approval required
• Must lay out initial funding
• Transformer will be district
owned
• Underground excavation
has risks

37.
Haverstraw Middle
School
kWh Estimated Commodity
Typical Month Usage /Month 35,000 Charge Secondary Primary
KW ¢ per
Demand 125 0.05 kWh 0.0498
Typical Typical
Month Typical Month Typical
Secondary Service Summer Month Primary Service Summer Month
June-Sept Oct-May June-Sept Oct-May
Typical Monthly
Totals $3,947.63 $3,328.03 Typical Monthly Totals $3,394.45 $2,804.45
Typical Savings
per Month $553.18 $523.58
Typical Savings $6,401.4
per Year 1

38.
Bidding
• Wage Rate Requirements
• Wick’s Law
• GML Public Bidding
Requirements
• Advertise
• Lowest ‘Responsible’ Bid
• Alternates

39.
Construction Phase
• Supervision!
• Pre-Construction Meeting
• Application for Payments
• Payroll Certifications
• Schedule
• Substantial Completion
• Certificate of Occupancy
• Final Completion
• Post Construction – Warranty
Review

40.
Cautions?
• Scope items, EEB, BCS/HS
• Change Orders
– Errors and Omissions
– Unforeseen Conditions
– Scope changes
• Substitutions
• Budgets
• Delays –
– ‘No damage for delay clause’

41.
What questions can we
answer for you?

42.
Thank You