Thursday, October 13, 2011
The "Estimate"
I'll start with the final page [8] so you can see how quickly $29.9 million becomes $22.8 million--see lines 415 & 417. {Remember, with debt service, we are paying nearly $42 million for these funds} Granted, some degree of the numbers deducted via lines 415 & 417 are normal; but 25 & 6 percent in the current economic environment? Sure, "YES" paints these numbers as estimates, however, if they accept a single estimate with a 31% starting point, where will reality be?
Subscribe to:
Post Comments (Atom)
Wow...no wonder our country is $10 trill in the hole!
ReplyDeleteIf we approve the bond with $0 for contingency, what happens if something comes up and they end up 10% over budget? Do they skip maintaining one of the roofs or parking lots and risk getting accused of not spending the money where they were supposed to?
ReplyDeleteI've never built a house, but I've done several maintenance and update projects - and I can't recall a single one which has come in on-budget or less.
However, I'm on-track with you in that I hope they spend it wisely and don't spend the contingency $ if they don't end up needing it. If the bond passes and you're elected to the Board, that's what I'd expect of you - to help ensure the money gets spent on exactly what was proposed.
Thanks for the post, 11:12!
ReplyDeleteThe 6% inflation contingency protects the contractors if the cost of construction goes up. There are other contingencies within the 25% soft cost number that will cover issues that arise during construction. Besides, what can go wrong? How many times have we heard, "we spent 18 months putting this plan together etc etc...?" :)
The other issue here, is what happens to the "leftover" $900,000 should the cost of construction only inflate 3% during the project? We have already heard Ann Bremer tell the world, 'we were elected to make decisions we feel necessary and didn't need to allow a vote on OPEB!' If I am elected, and when a bond of this magnitude passes, there will be an independant project accountant watching every penny.
I've reviewed Tom Notchs' $16M counter-proposal in detail. I found it interesting that he chose to cut out most of the types of items which result in an ROI payback (like replacing leaking windows and changing over to energy efficient lighting which automatically turns off when no one is present). Aparently, he doesn't know anyone who's in a wheelchair because he thinks that ADA compliant bathrooms are "not essential" (even though those line items also included water conserving plumbing).
ReplyDeleteThe most disturbing cut I saw was eliminating all of the locks and security features. About 9 months after 9/11 I met a New York school teacher who told me that all of the schools in New York were revamping security because "authorities know that terrorists will target schools in the future and the only way to avoid it being your school is to have better security than the other schools".
Some valid points, but I am not sure how to respond to your al-Qaeda is coming to Hilltop theory. Maybe you could present it at a future school board meeting?
ReplyDeleteWould you rather see the Notch, Hejna & Saatzer plan pass or nothing? Wait, this plan is caput...why even bring it up??? It's not on the ballot next week. It's the B team & Kraus Anderson or nothing........
Terrorists? Are you serious? I've heard it all now. You wonderful yes people will say just about anything, won't you?
ReplyDelete