Council Blasts $3.3M Middle School Project Overrun

City Councilors were not pleased with a request for $3.3 million in additional funds to complete the Portsmouth Middle School project.

Councilors held a work session at City Hall on Monday night where they learned more about why those funds are needed from members of the Joint Middle School Building Committee and JCJ Architects of Hartford, Conn., the firm that designed the project.

“I wish we were here talking about how the project is on time, on budget and moving forward,” Assistant Mayor Robert Lister said. “I am personally very disappointed that we are talking about this.”

Lister said he was not pleased that the committee is asking the council for $3.3 million that, if approved, would increase the local property tax rate by 5 cents at a time when many city residents are struggling to pay their taxes.

“We knew, everyone knew, that there might be some surprises when we started tearing that building apart,” he said.

Jim LaPosta, chief architectural office for JCJ Architects, told the council that when Gilbane Construction began work on the current Portsmouth Middle School building, a number of serious structural problems were discovered that increased the cost of the project from the $37.5 million that was appropriated in 2009 to $40.8 million.

Some of those problems include deteriorated concrete, unsuitable steel bearing conditions and lead paint on existing structural steel in Phase 2. In Phase 1, he said there was a delay by the utility company to provide permanent gas service, which required a temporary tank farm and was very expensive. They also found clay tile in the existing walls instead of solid brick.

City Councilor Esther Kennedy said she was also disappointed with the $3.3 million request. “I feel a little let down,” she said.

She said the project is actually $6 million down from what was originally agreed upon between the $3.3 million that is being requested and the $2.8 million in items that were cut from the original design. She also criticized the committee and the architectural firm for seeking so much remediation to deal with issues such as lead paint. "You knew there was lead paint in there," she said.

School Board member Dexter Legg, who co-chairs the Joint Middle School Building Committee, said the committee is not happy that it has to ask the council for more money. He said it has tried to go with a very aggressive budget that keeps costs down. He said it is critical that the council chooses to complete this project.

"At the end of the day it's going to be good for the students and it's going to be good for the city," Legg said.

As background, Legg said JCJ Architecture's original estimate for the project in 2009 was $40.8 million and that figure was approved by the New Hampshire Department of Education. He said the city is also due to receive a 40 percent reimbursement on the middle school construction project when it is completed.

LaPosta said a number of things were cut from the original design to bring the total project's cost down to $37.5 million so the project could move forward. The original project cost was also based on assumptions such as the depressed construction market that existed in 2008 and 2009, he said.

"I am disappointed that I may have to pay 5 cents more, but I am not at all disappointed in that school," said City Councilor Anthony Coviello.

During the regular council meeting, City Councilor Chris Dwyer, who co-chairs the Joint Middle School Building Committee, moved to have the $3.3 million request go before the council for a first reading on April 1 followed by a public hearing at a future date.

Councilor Brad Lown opposed the motion because he didn't want to hurt city taxpayers. He argued the council approved the project at $37.5 million and it should remain there. He also said the contract included a guaranteed maximum price. Lown said he doesn't blame the members of the Joint Middle School Building Committee for the problems that were discovered, but he said he would not support bonding the additional money.

Coviello said that if the council doesn't support a bond, the council "would put tens of millions of dollars at risk" in potential lost state reimbursement money, which amounts to about $16 million.

Dwyer said a bond will also allow the city to receive reimbursement from the state, which means taxpayers would be funding 60 percent of the $3.3 million.

Councilor Jack Thorsen said it is clear the city will finish the project, one way or the other, and he was inclined to support Dwyer's motion so a public hearing could be held.

The council then approved Dwyer's motion. During the work session, City Manager John Bohenko explained that if the council chooses to go for a bond, it requires two-thirds majority, or six votes, to pass.