Council approves resolution funding new East Providence high school proposal

Action needed to be taken to meet RIDE project deadline

By Mike Rego
Posted 4/9/18

EAST PROVIDENCE — The potential construction of a new East Providence High School crossed another important threshold during the last 10 days, the most consequential action on the matter taking …

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Council approves resolution funding new East Providence high school proposal

Action needed to be taken to meet RIDE project deadline

Posted

EAST PROVIDENCE — The potential construction of a new East Providence High School crossed another important threshold during the last 10 days, the most consequential action on the matter taking place Thursday evening, April 6.
Then, the city council to a raucous chorus of cheers and a standing ovation from a packed audience at a special session unanimously approved a resolution backing the issuance of $189.8 million in bond money to pay for the cost of a new EPHS.
The vote was significant because it met the latest deadline the school district faced in putting a funding package together. The marker was imposed by the Rhode Island Department of Education in the run-up to a vote by Governor’s School Construction Board on Tuesday, April 10, when it decided whether or not to approve all submitted proposals from districts throughout the state.
Thursday’s council vote, however, was only just one more aspect of a process still in flux. The General Assembly must give its approval to a proposal by Governor Gina Raimondo to place a state-wide initiative to voters on the November ballot seeking some $500 million in bonds for school construction, $250 million of which would begin to be used over the course of the next few years. East Providence, as it has been stressed by backers of the new EPHS project, would be among those first in line to access those funds.
Later in this session, the council will, likewise, have to approve a referenda item to be presented to voters in the city-only to support the issuance of the $189.8 million bond for the new construction. If both the state and local measures are approved, the actual process of building a new EPHS — planning, permitting, etc. — would formally commence sometime in 2019.
In expressing their support of the plan prior to last Thursday’s vote, members of the council pointed to various elements of it as their reasons to back the proposal.
Ward 1 Councilor Bobby Britto said he saw a new EPHS as “a long-term project for the community as a whole,” adding “everyone gains by this.” He continued, “It’s a great investment for not only our community, but for our kids.”
At-Large member and council president Jim Briden, noting the need for fiscal discipline and responsibility in the future, said, “I support going forward and approving this resolution.”
Ward 3 Council Joe Botelho, harkening back on lessons learned about the value of investing, said, “This city has been starving for investment for 30 or 40 years. So, it’s about time we did it.”
And Ward 4 Councilor Brian Faria, who noted he was urged to support the measure by his 13-year-old daughter, said, “This a decision that’s much bigger than the council. The residents need to vote on this.”
Final approval locally to approve the bond for a new high school came over the course of three meetings conducted by the city’s elected governing bodies last week.
School committee meeting
The school committee was first to broach the matter, doing so at a special session of its own held Monday night, April 2. Then, the committee backed seeking voter support to completely rebuild the soon-to-be 66-year-old facility at the cost of $189.8 million.
Initially, the city would be reimbursed by the state at a rate of 54.5 percent of the construction costs. However, if the General Assembly abides by a proposal of Gov. Raimondo and a state-wide referenda question also passes this November, that reimbursement figure could rise by as much as 20 more points or a total of 74.5 percent. If the state-wide referenda item calling for borrowing $250 million for school construction fails, the reimbursement rate would remain at the existing 54.5 percent.
In response to a question posed by fellow committee member Jessica Beauchaine asking what would happen if the project goes over budget, Ward 3 representative and building sub-committee chairman Nate Cahoon said, “that would be a real bad situation.”
He continued, saying it was imperative on the committee to help keep the project in line with projections. He added, “We would have to make sure our project management team controls costs.”
Mr. Cahoon stressed oversight of and input into the project does not end at any point. “The building committee is not going away. Really, this is just the beginning of our work…There will be change orders. There will be site conditions. There will be things that will pop up that will require our attention. We just have to stay on it.”
Council meetings
The second of the three meetings involving the topic took place Tuesday night, April 3, a forum held by the City Council during a regularly scheduled session where Superintendent Kathryn Crowley and Mr. Cahoon led a presentation on the new school proposal.
Superintendent Crowley told the council, “The (Rhode Island) Department of Education has indicated, under their regulations on square footage and cost per square foot, we can expect reimbursement on $135,581,800,” meaning the city’s portion of the new high school would be “$54,218,200.” And if East Providence is only reimbursed at 54.5 percent, the actual cost to the city would $115,907,919. If it reaches the 74.5 percent max, the actual cost would $88,791,559.
The superintendent noted construction of athletic fields is not reimbursable under RIDE regulations. Approximately $10 million is included in the plan to completely rebuild most of the sports surfaces at EPHS and refurbish others.
Though he supported the measure, Ward 2 Committeeman Tony Feola, saying he has been employed in the construction trade for 35 years, questioned the total cost of the building. At both the committee forum and the council meeting the following evening, Mr. Ferreira said it was likely the final cost of the proposal as it is currently constituted would be closer to $230 million.
The bulk of the discussion by the council at the April 3 session dealt with the potential financial ramifications to the city’s overall budget.
Last fall, the council backed a five-year plan assuming tax increases averaging around 3 percent without taking into consideration the added costs of paying for a new high school. The city currently has about $35 million in outstanding debt on a capacity of some $120 million. Also, East Providence, because its fiscal year is not aligned with that of the state, must annually borrow upwards of $40 million in Tax Anticipatory Notes (TANs) to fund operations.
Mr. Briden and state-appointed Municipal Finance Advisor Paul Luba showed particular concern about any increase to the city’s impending tax burden and any additional debt it could and should take on.
After being asked to review the projections of a new high school along with City Finance Director and Acting City Manager Malcolm Moore as well as former manager Bill Fazioli, serving as an unpaid consultant to district on the project, Mr. Luba said at Thursday’s meeting the actual impact on the budget going forward wouldn’t be as severe as previously thought.
If the project is reimbursed at its lowest possible rate of 54.5 percent, the anticipated tax increases starting in FY2019-20 would be 4 percent, 5.7 (which will require a waiver from Department of Revenue for being over the state cap), 3.2 and 4. If the district received reimbursement from RIDE at 64.5 percent or the max 74.5 percent, rates would remain around three percent with a spike in FY2020-21 when construction would begin.
On the city’s bonding capacity, Mr. Luba said worst case scenario it would rise to 6 percent of total property value. The best and more likely case, if the district is reimbursed at the highest levels, it would grow from the current 1.1 percent to 3.5, seen he said as a much more palatable figure by state administrators.
When asked by Mr. Britto how much of an increase in taxes the project would impose on a residential property owner, Mr. Luba said it would average around $120 per year.
“If we’re going to do this, we need to look at it as a city improvement program…so we can really transform the city,” Mr. Botelho said, adding the figure would be low enough at the moment that it wouldn’t have a significant impact on most taxpayers.
In response to a question about the overall cost of the EPHS proposal, Superintendent Crowley said the $189.8 figure includes paying for demolition of the existing building as well as “furniture, safety, the equipment, fields, everything” needed for new structure. She also noted the city “won’t have to bond out the entire amount when it comes time to actually begin the project.”
Of potential changes to the plan before it begins, the superintendent added, “Certain aspects like classroom size can’t be changed, but things like athletic fields could. If we found we were going over budget, absolutely, we could (change the plan), but I don’t intend to.”
Long-time educator, district athletic director and state representative from District 65 Gregg Amore when asked to discuss the matter backed the proposal. He and the superintendent said RIDE determines what amount it will reimburse projects based on state regulations for class size, enrollment, safety and accessibility, which in East Providence’s case was determined to be up to $135 million. Also, RIDE’s figure is based on a national average while the district plan used construction costs based on Northeast regional numbers. In addition, echoing the thoughts of Mr. Botelho and Mr. Britto, Mr. Amore said the new high school would be an investment for the entire city going forward and key to future funding from the state.
“I think it’s important for all of us to realize that the (state school) funding formula mechanism is flattening out after this year,” said Mr. Amore. “Once that flattens out our funding will be based on student population. We want to keep our student population and increase that student population. When you create a facility that is 21st century, you’re going attract people into the community and you’re gonna keep students who may be thinking about a private education say maybe I’ll give East Providence High School a try.”

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MIKE REGO

Mike Rego has worked at East Bay Newspapers since 2001, helping the company launch The Westport Shorelines. He soon after became a Sports Editor, spending the next 10-plus years in that role before taking over as editor of The East Providence Post in February of 2012. To contact Mike about The Post or to submit information, suggest story ideas or photo opportunities, etc. in East Providence, email mrego@eastbaymediagroup.com.