CC SHS Add Appropriation 2022Jun09 v2 — File 213954

SHS Supplemental Appropriations Presentation to City Council Mayor Katjana Ballantyne Richard E. Raiche, Director of Infrastructure & Asset Management Edward Bean, Director of Finance 9 June 2022

Presentation outline • Construction management update since December 2021 • Finance plan • If interested: • Background information from November 2021 presentation to City Council 2

Construction management Work and budget update 3

December 2021 Budget Adjustment • Extraordinary unforeseen costs & schedule impacts • ACM soils • Covid-19 • Auditorium walls • Executed settlement agreement with Suffolk 4

Revised project budget Dec 2021 Category March 2017 Value Dec 2021 Value Construction $199,747,908 $237,066,092 Soft costs $36,702,127 $34,423,765 Furnishings & equipment $5,096,000 $5,784,414 Contingency $14,436,669 $6,584,962 Total $255,982,704 $283,859,233 Building occupancy Phase 1: Jan 2020 Ph 1&2: Mar 2021 Building occupancy Phase 2: Aug 2020 Ph 2A: Dec 2021 Field completion Summer 2021 Summer 2023 5

Dec 2021 6

Jun 2022 7

December 2021 8

June 2022 9

Continuing challenges • ACM-containing debris from old library • Limited landfill availability • 4+ amendments to DEP workplan • Exports in 2022 • ACM: 1,010 truckloads, 34,340 tons • Clean: 10 truckloads, 340 tons 10

Revised project budget June 2022 Category Dec 2021 Value Dec 2021 Value Construction $237,066,092 $240,672,114 Soft costs $34,423,765 $34,423,765 Furnishings & equipment $5,784,414 $5,784,414 Contingency $6,584,962 $2,978,910 Additional debris disposal $800,000 Total $283,859,233 $284,659,233 11

Finance plan 12

Somerville High School Funding 2017 2022 City Share 134,147,557 168,659,233 MSBA Share 121,835,148 116,000,000 Total Funding 255,982,705 284,659,233

Planned City Resources 2017 Debt 130,300,000 Facility Stabilization Fund (Reserve) 7,174,379 Total Planned City Resources 137,474,379

Debt Allowable under Debt Exclusion Debt Exclusion 11/8/2016 130,300,000 Additional debt exclusion allowable under borrowing 9,682,704 Total allowable debt under debt exclusion 139,982,704 Borrowed debt exclusion as of 6/3/2022 135,367,851 Remaining amount available for debt exclusion 4,614,853

City Share Funding Sources 2022 Borrowed Debt Exclusion 135,367,851 Additional Borrowing Debt Exclusion 4,614,853 Energy Rebate 258,029 Premium Revolving 3,673,158 D2 (Land Proceeds USQ) 7,108,112 Facility Stabilization Fund 8,964,735 Free Cash 7,080,519 Unallocated Covid 19 Stabilization Fund 1,545,805 Unused SHS bond proceeds (Completed Projects) 46,171 Total City Share 168,659,233

Additional slides to aid in answering questions Background presented to City Council November 2021 17

Change management 1,700 PCOs, CCDs & risk items over project lifetime 18

Corrections & clarifications to contract • guideline 19

Owner-directed discretionary 20

Unforeseen site conditions 21

Unforeseen building conditions 22

New restrictions and conditions 23

Extraordinary unanticipated costs High-level overview of significant costs 24

Standard change & approved costs Category Amount Declined value management $2,640,153 Design changes & clarifications ≈ $2,400,000 Discretionary design changes $377,934 25

Unforeseen direct costs Category Amount Phase 1 Asbestos containing material (ACM) disposal $1,859,528 Phase 2A Auditorium structural revisions $754,630 Covid-19 mitigation expenses (including Mods rental) $1,482,332 Additional police & fire details $712,820 Phase 3 ACM disposal to date $3,942,526 Projected phase 3 ACM disposal (NTWP 8) $2,099,343 26

Schedule impact costs Category Amount Phase 1 ACM delays $2,640,153 Covid-19 & additional Phase 1A, 1B, 2, 2A delays $6,962,440 Phase 3 ACM delays through August 2023 (NTWP 8) $7,620,617 27

Settlement Agreement: Adjust GMP & schedule for all completed & known required work • 198 open PCO’s & potential claims for completed work • Phase 3 work & delays known as of October 22nd • Shift final cost negotiation & litigation risk to Suffolk • Exceptions for items outside of Suffolk’s control 28