Providence Special Committee on Ways and Means Meeting on School Construction – October 27, 2026

The Special Committee on Ways and Means met to review the status of Providence's school construction program, including phase 2 and 3 projects managed by Downs, and phase 4 projects managed by Leftfield. Members present included the Chair, Vice Chair Teler, Council Davidson, Councilman Grace, and Councilwoman Peterson. Finance Director Crystal, Director of Program Management Joe Sankey, Interim COO Jen Holstein, and Leftfield project executive Chris Spiegel also attended.

Phase 2 & 3 Project Updates (Downs)

• The Spaziano Middle School upper campus was recently completed, with a ribbon cutting a few weeks prior.
• Projects under construction include Lima, Master West Broadway, Kazarian, Pre-K at Providence Pre-K, Mount Pleasant, and RK.
• Kazarian has faced challenges, including contaminated soils, a work stoppage, and an impacted schedule. A recovery schedule is being reviewed, and a Plan B has been developed with PPSD to add temporary classrooms at Narducci in case the school is not ready by September 2027.
• Fogerty: overall budget of $73.77 million, estimated enrollment of 858, draft GMP of $69 million, 95% subcontractor buyout, dry-in scheduled for December, substantial completion targeted for June 30, 2027.
• Kazarian: budget of $79 million, estimated enrollment of 158 (as stated), new construction with a renovated gym, students temporarily housed at Narducci.
• Mount Pleasant: $110 million budget, approximately 1,000 students, hybrid renovation and new addition, draft GMP of $102 million, 96% bought out, project closeout expected around February 2028.
• West Broadway: $84.5 million budget, 996 estimated enrollment, draft GMP of $78.4 million, approximately 80% subcontractor buyout.
• RK (RFK): $77.7 million budget, 858 estimated enrollment, slightly behind schedule, 70% subcontractor buyout; project was pulled forward from phase 4 to phase 3 due to district need and availability of Hopkins as swing space.

Financing and Cash Flow Discussion

• The city is closing on a $140 million bond the next day (October 28), which is expected to provide enough cash through July 2027.
• A further $100 million bond is anticipated in July 2027 to cover June and July invoices.
• The Finance Director stated there are currently no cash flow concerns, with constant monitoring and coordination with the OPMs to borrow only when needed.
• Borrowing is structured to avoid paying a full year of debt service on projects not yet complete.
• Invoicing is reviewed by the OPMs (Downs or Leftfield), who validate that work is completed before payment is processed through the city's ERP system.
• A Ride request for information is due the next day; it relates to invoicing questions. Downs reported a minor discrepancy of four hours for one person over a six-month period, amounting to less than $1,000.

Phase 4 Project Presentation (Leftfield)

• Chris Spiegel presented feasibility study findings and proposed MOA adjustments for phase 4 projects.
• Roger Williams School has a special education population of approximately 24%, compared to the 8% assumed in the original budget; this drove the budget increase to $112 million.
• Dr. Martin Luther King Jr. rebuild was identified as the most impactful and cost-effective approach; community engagement showed strong support for a new building while preserving the school's culture.
• Del Sesto was identified as able to absorb the Carnival student population due to underutilization; the original separate budgets for Carnival and Del Sesto were $11.4 million and $12 million respectively. The revised plan proposes a new pre-K–8 school at Del Sesto for $50 million.
• Carnival has structural issues related to being built on a landfill with an environmental cap; fixing structural issues would require excavation below the cap, which is prohibitively expensive. The current plan would demolish the Carnival building and potentially create green space.
• Hope High School needs a roof replacement and other work; an estimated $7 million would make the building like new, and the scope was increased accordingly.
• Phase 4B projects (Classical, Nathan Green, and smaller schools) are proposed to be funded through capital reserve funds and bonds; the capital reserve fund currently has $5.5 million, and no sustainable funding source has been identified.
• Over 160 stakeholder engagement meetings have been held, along with surveys and multilingual videos; feedback has generally supported the proposed plans.

Schedule and Reimbursement Risks

• All phase 4 projects must be substantially complete by June 30, 2029 to retain an additional 10% bonus reimbursement. The base reimbursement rate is 80.201%, rising to about 90% with the bonus.
• If the bonus is lost, the city would lose reimbursement on approximately $46 million, equating to about $4 million in additional annual operating costs.
• Construction costs are rising: producer price growth for school construction is 5–6% annually, schematic design cost increases are 6–7%, and fuel costs are over $1.50 higher than when the MOA was approved.
• Steel tariffs have already led to a $220,000 change order, and the project team emphasized the need to move quickly to lock in prices.

Key Outcomes

• No formal votes were taken on project approvals; the committee heard presentations and discussion.
• The committee will need to review and approve contract amendments for phase 4A projects in the winter/spring to maintain the construction start schedule.
• The Ride request for information response is due the next day, October 28, 2026.
• PPSD is expected to make final swing space decisions in November.
• The committee will continue monitoring project schedules, cash flow, and the capital reserve fund.