Higher costs could force school bond project cuts
By Angie Valencia-Martinez, Daily News Staff Writer

SIMI VALLEY - School officials are considering scaling back bond-related projects because of soaring construction costs that have put plans as much as $60 million over budget, school officials said.

Voters approved a $145 million school bond measure in 2004, but because of cost overruns officials now estimate that the price tag to complete the laundry list of proposed projects is about $243 million.

From the Daily News...

Higher costs could force school bond project cuts
By Angie Valencia-Martinez, Staff Writer

SIMI VALLEY - School officials are considering scaling back bond-related projects because of soaring construction costs that have put plans as much as $60 million over budget, school officials said.
Voters approved a $145 million school bond measure in 2004, but because of cost overruns officials now estimate that the price tag to complete the laundry list of proposed projects is about $243 million.

"About 80 percent of the projects should be done," said Lowell Schultze, associate superintendent of business and facilities.

To limit rising costs, construction will be compressed from a 10-year schedule to six, with completion by 2010. To be on the safe side, officials are now using an annual inflation rate of 14 percent, up from 4 percent.

The projects planned at each of the district's 29 campuses were estimated to cost $186 million before the bond measure was approved, and the district relied on receiving an additional $41 million from the state. Since then, the cost has skyrocketed.

"We need to prioritize," school board member Greg Stratton said. "Changes have to be looked at unless we can cough up more money. ... The board has to get to the nitty-gritty of what needs to be done at every school."

To make up the difference, school officials are considering selling off surplus property, although some support the idea more than others. Last year, the district requested appraisals on three parcels: the Wood Ranch conference center, an equestrian center south of Long Canyon and Walnut Grove Elementary School.

The combined value is more than $10 million, with the closed campus alone worth about $6 million, Schultze said.

Last week, the school board agreed only to pursue the idea of possibly selling the equestrian center and Wood Ranch conference center. Before anything can happen, an advisory committee must be formed to declare the assets as surplus.

With the available funds, officials will first concentrate on priority projects, including fire safety, electrical and technology upgrades, as well as making sure all buildings are handicapped accessible, Schultze said. Other projects likely will have to be dropped from the


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construction list.

"Whatever funding is left, we will work with the schools themselves to set up a priority list," he said. "We'll get a good handle on that as we go along."

So far, the district has spent about $17 million of the $145 million bond authorized by voters. Much of the work performed has been design-related. Modernization of Royal and Simi Valley high schools is now complete, and the expansion at Atherwood Elementary School will continue, including a new administration building, library and classrooms.

Among the issues the district now faces is the Simi Valley High School stadium project. An all-weather track and artificial turf should be in place by September, but there isn't enough money for more seats and a press box, as originally planned.

Also, plans for Santa Susana High School have come in $1 million over budget; they include modernization of the campus, a multipurpose auditorium and more library space.

School board member Carla Kurachi, who has been pushing for the sale of unused property, said now is the time to get rid of some of the district's holdings.

"We're not in the real estate business," she said. "Our job is to educate today's children, and hanging on to property that costs us a bit of money every year is not very prudent."

Mike McCaffrey, chairman of the district's bond oversight committee, said the group will continue to monitor how the money is spent.

"We want to aid the district in stretching the dollars as far as we can," he said. "The best way we can do that is to make sure they are spent in the most efficient manner possible."