Agenda Item
ix. Capital Improvement Plan (CIP) Project Budget Adjustments ~ Updated 5.6.2024
Summary: Presented by: Mr. Erick Hofstetter, Chief Operations Officer, Operations Division
Request: It is requested that the Board of Education approve the recommended budget adjustments to projects in the District’s E-SPLOST V program found in the document “E-SPLOST V Project Budget Adjustments April 2024.pdf."
Why: The recommended budget adjustments are needed to close E-SPLOST V projects which are no longer necessary or no longer feasible and move all remaining budget from these project to program contingency.
Details: Sprinkler installation projects 10135, 10235, and 10335 have experienced several large increases in expected cost since being initially approved in 2016. Given that all DCSD facilities are designed, constructed, and maintained to be safe for all students and staff; the primary utility to the District of installing new sprinkler systems in facilities not designed to require them for life safety is to decrease potential facility damage in case of a fire. As such, the large cost increases for “stand-alone” installation of sprinkler systems (not paired with another installation such as HVAC) have made these projects infeasible. Moving forward, the District will seek to pair sprinkler installations with other building system installations such as HVAC in order to increase the cost efficiency of these projects.
New Dunwoody Chamblee ES, project 22435, was approved and funded at a time when elementary school enrollment in the Dunwoody and Chamblee clusters had grown beyond the capacity of the local schools and was expected to continue to grow rapidly. Since being approved, elementary enrollment in the area has changed dramatically, particularly the Dunwoody cluster where the new school facility would be located. As such, the need for a new elementary school facility at the Shallowford road site has disappeared. These changes in enrollment have made the New Dunwoody Chamblee ES facility no longer necessary.
All remaining budgets will be moved from these projects to contingency programmes. This will allow the District to approve upcoming construction contract awards and other expected commitments to complete the remaining active E-SPLOST V projects.
Financial impact: See attached document “E-SPLOST V Project Budget Adjustments April 2024.pdf” for financial impact on individual E-SPLOST V projects.
Contact: Mr. Erick Hofstetter, Chief Operating Officer, Operations Division, 678.676.1475
Mr. Hans Williams, Director of Planning & Capital Improvement Programming, Operations Division, 678.676.1588.
Effective: Upon Board Approval
Status: Approved by General Counsel
CHRONOLOGY OF THE AGENDA ITEM
In March of 2017 the Board approved the “Proposed E-SPLOST V Project Listing with Anticipated
Start/Finish Dates (March 17, 2020)”. This March 2017 project list included a budget, scope, and
anticipated schedule for each E-SPLOST V project.
On February 10, 2020, the Board approved the “E-SPLOST V Budget Adjustments and Scope Revisions
(February 10, 2020)”. This February 2020 project list included major adjustments to the budget and scope
of existing projects, as well as created new E-SPLOST V projects.
On June 8, 2020, the Board approved the creation of 10 new Capital Renewal Projects using funds set
aside as part of the February 10, 2020, budget adjustments and scope revisions. On April 18, 2022, the
Board approved increasing the overall E-SPLOST V Program budget from $561,000,000 to $630,00,000.
On February 1, 2023, the Board approved the E-SPLOST VI Scope of Projects.
If approved, the recommended budget adjustments to projects in the District’s E-SPLOST V program will
increase the efficiency and effectiveness of District’s Capital Improvement Program by closing no longer
necessary projects and make budget available to support active E-SPLOST V projects.