School designs will be recycled to cut cost

With cash running out, state agency also tightens the penalties for errors by architects
Thursday, June 23, 2005 • BY DUNSTAN McNICHOL • Star-Ledger Staff

Two years ago, architects for a new school in Long Branch offered district officials a 50 percent discount to re-use the building's blueprints for a nearly identical school they were about to construct in the town.

But the Schools Construction Corp., the state agency managing school construction in Long Branch and 30 other needy communities, turned down the offer and put the new school project out to bid. The firm that offered the discount, Tomaino & Tomaino, won the new bid for $1.5 million -- double its cut-rate offer.

Yesterday, spurred by a recent state Inspector General's report that assailed it for waste and mismanagement, directors of the Schools Construction Corp. voted to re-use school designs whenever possible. Officials said the new policy should cut design costs in half.

The board also agreed to charge architects for design mistakes that end up increasing the cost of school projects by at least 2 percent. In her report, Inspector General Mary Jane Cooper said $22.9 million of change orders had been attributed to errors and omissions, and recommended adopting a policy to seek reimbursement of those costs.

The policy shifts come after the SCC has already spent $465 million on architecture fees.

"We would expect to save about 50 percent of the design cost through the re-use of the design on another site," said Jack Spencer, chief executive officer of the SCC.

Vineland architect Bruce D. Turner, president of American Institute of Architects New Jersey, said the SCC changes appeared reasonable. "We understand we have to be sensitive to the issues that are important to taxpayers," he said.

The new policies are the latest in a series of sweeping reforms developed since February, when a Star-Ledger analysis showed the six schools built by the SCC since 2002 cost, on average, 45 percent more than 19 schools built without SCC involvement at the same time. The analysis found that the SCC paid it architects fees that are almost double the industry standard.

The new policies also come as the corporation is running out of funds. At yesterday's monthly meeting, SCC officials said they have $1.2 billion left for school construction in the 31 needy communities. Those communities, meanwhile, have received state Department of Education approval for about 270 new school projects -- at least six times the number the remaining SCC funds will cover.

Al Koeppe, who was named chairman of the corporation in April in response to the Inspector General's report, said a three-member panel is evaluating which of the 270 projects should be built with the remaining funds. That panel will forward its recommendations to the full board for consideration next month, he said.

He said the schools will be selected based on how vital they are to the educational needs of the children in the communities, how far along in design and development they are and whether the corporation has previously made commitments to local officials regarding the projects under consideration. Corporation officials declined to provide a list of the schools that are under consideration.

"These are hard decisions," said Koeppe. "We're going to manage the remaining resources in a way that will provide the maximum benefit to the children."

Yesterday's board meeting was crowded with representatives from Newark, Camden, Gloucester, Vineland and Trenton, who lobbied for projects that are slated to be built in their communities.

Wanda Miranda, a resident of Camden's Cramer Hill neighborhood, implored the board to continue funding for a replacement to the 99-year-old Washington Elementary School, which she said has been unchanged since she attended it 37 years ago.

"They have no cafeteria, they have no playground," said Miranda. "Thirty-seven years is a long time without a change."

The schools corporation was set up three years ago to manage a court-ordered overhaul of more than 400 school buildings in 31 of the state's neediest communities. Lawmakers who established the school construction program authorized $6 billion in bonds to bankroll the court-mandated program and another $2.5 billion to pay for portions of school building costs in the rest of the state.

Today, the $2.5 billion fund is essentially tapped out, and all but $1.6 billion of the $6 billion fund has been committed to school jobs already under way.

Of the remaining $1.6 billion, about $400 million is needed to pay for property and equipment, leaving $1.2 billion for new school construction. Since the typical SCC school costs about $30 million, that would be enough to build only 40 new schools.

Lawmakers already are considering legislation that would add another $2 billion to the court-mandated construction program, and one lawmaker last week suggested it might cost another $25 billion to fully comply with the court's school building order.


© 2005 The Star-Ledger. Used by NJ.com with permission.

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