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Wagner calls for closer look at Comp. construction costs

By Paula Canning

Staff Writer



CHICOPEE Citing extraordinary site preparation costs and misleading information about project finances by Mayor Richard Goyette, State Representative Joseph Wagner (D Chicopee) has requested that the state Inspector General (IG), Gregory Sullivan, investigate contracts and costs surrounding the construction of the new Chicopee Comprehensive High School.

Wagner has also requested that the Massachusetts School Building authority (MSBA) withhold issuance of a project funding agreement until the evaluations by the IG are complete.

He said that after the Board of Alderman approved an additional $17 million in funding for the construction of the new school, he began to look into the source of the increase in costs.

He said it was then that he discovered that the project's site preparation costs, which he said are currently pegged at $13 million, showed "a substantial difference" from the originally predicted $5 or $6 million in costs.

According to Wagner, this $13 million figure was not revealed to the Board of Aldermen when they were asked to approve the additional funding.

"When the mayor went to the Board of Alderman to request the funding, site preparation costs were never mentioned as one of the reasons for needing more money for the project," he said.

In addition, Wagner said that, he reviewed a request by the city that was made in 2002 for a waiver for site preparation costs for $6.4 million, and subsequently questioned the Mount Vernon Group of the discrepancy between the originally anticipated costs and the current $13 million in site preparation costs.

A memo written to Wagner from Stephen Dauphine of Mount Vernon Group, dated June 15, 2005, states: "As discussed, preliminary analysis of bid figures indicate actual site expenses (soil, constrained urban site, drainage, retaining walls, cut and fill, special foundation, demolition, abatement, water retainage, wetlands protection, etc.) in excess of $12 million (compared with a waiver request based on estimates of $6,397,862 and a grant of $2,972,741).

Goyette, however, has a different interpretation.

Goyette said that site preparation costs are still set at $6.4 million, because the demolition of old buildings, utilities, and electric costs, "do not fit into the category," of site preparation.

Goyette, who said "he has no issue at all" with Wagner's request, explained that the IG's investigation of costs will likely make a better case for the city to receive more funding for Chicopee Comp.

"It will show the state that there have been significant increases in cost of steel, electrical work and plumbing," he said. "It's only going to better prove our point.

While Wagner has charged that Goyette has not been forthcoming to the Board of Alderman with regards to the project costs, Goyette said, "I made it clear to the Board that we were going to ask for additional money, but that there were no guarantees on the state's behalf."

He said that the city "couldn't afford not to build" the school, and that the state's generous reimbursement is enough for the city to handle the project's costs.

He added that, although State Treasurer Timothy Cahill has informed the city that the state will not provide any further funding, he still hopes the city will be able to secure additional reimbursement from the state.

Wagner said he is especially concerned about the $3 million in project alternatives that were added to the base bid.

"A lot of times when the bids come in lower than anticipated, you can begin to add in things on your wish list," he said. "But the bids came in many millions over what was projected, and for the city to then turn around and add $3 million in project alternatives it just doesn't make sense."

He said that one of these alternatives includes a $717,000 athletic field concession stand.

Wagner added that he didn't understand the logic behind these alternatives, especially when the city knew it would not receive additional funding from the state, which has agreed to reimburse the city at 90 percent the original $72 million cost for the new school.

He said that the analysis to be conducted by the IG will not interfere with construction of the school.