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$21 million school project ok’d
Construction cost could add three cents to real estate taxes
, Staff Writer
06-14-2007
PULASKI — Pulaski County Board of Supervisors last night gave the go-ahead to proceed with construction of Riverlawn Elementary School — a move which could add just over three cents to county real estate taxes in fiscal year 2008-2009.
Total cost of the project, which has an estimated completion date of fall 2008, is $20.9 million. Thor Construction of Roanoke was the lowest of four bidders with a construction bid of $18,303,000 or $213.25 per square foot.
Pulaski County School Superintendent Dr. Don Stowers said there was only $660,000 difference between the highest and lowest bids received. Other bidders were Avis Construction of Roanoke - $18,965,000 ($220.97 per square foot); Branch & Associates of Roanoke - $18,950,000 ($220.79); and Martin Brothers Construction of Roanoke - $18,388,000 ($214.24).
Although the new school could result in a real estate tax increase in the future, County Administrator Pete Huber pointed out that the county will be undergoing a re-assessment prior to the debt service “kicking in” on the project.
Huber said the estimated 3.11 cent increase does not include any consideration of re-assessment values.
“So we really don’t know how much it will increase until the re-assessment is done?,” Ingles District Supervisor Ranny Akers commented.
Jeff Bain, Massie District representative on the Pulaski County School Board and a real estate appraiser, said he would expect to see property values increase by about the same amount as the last time a re-assessment was completed.
“There will be a flattening out of values over the next few months though. In some cases I’m seeing some drop,” Bain added.
“Then we might be able to leave the rate at 62 cents (per $100 of value) after the re-assessment — or maybe even go down to 60 cents or 58 cents,” Akers said.
Massie District Supervisor Frank Conner said that sounds good, but that doesn’t mean property owners still won’t be paying more due to the increased values.
Conner said he has said from the beginning that Riverlawn would cost too much, but “without making some major changes to the school, which would take a long time, I don’t see where we have much choice” but to proceed.
Conner questioned why architectural and engineering fees are higher for Riverlawn than Pulaski Elementary School. He said he thought they were supposed to be cheaper since the same plans are being used for both schools.
Stowers pointed out that those fees are based on a percentage of the estimated cost of the job. He said the Riverlawn fees are actually cheaper because the $623,114 cost for Riverlawn is 4.4 percent of the total estimated cost. He said the fees were 5.5 percent of the total cost for Pulaski Elementary.
Wednesday, the supervisors voted to authorize the school system to spend just over $20 million to cover construction, architectural and engineering fees, hiring of a clerk of the works to oversee the job, surveying and geotechnical studies, legal fees, utility connection fees and testing.
However, the supervisors decided to hold off approval of about $1.8 million in spending for furnishings, equipment and technology for the school.
Huber recommended the supervisors delay approval of the furnishings and technology costs to give the school system time to further study those costs and fine-tune the figures. He said it would be best to avoid borrowing more money than is needed so the county will not end up spending more in debt service than is necessary.
Bain said he understands Huber’s concern, but he is concerned about “starting a project without being able to also assemble the technology and furnishings.” He said he hopes the supervisors would be “cognizant” of how the school system handled money for construction of Pulaski Elementary School.
“Just because we have money allocated doesn’t mean we have to spend it,” Bain said.
Huber said he isn’t trying to suggest the school system wouldn’t handle the money properly; he just wants to avoid spending more in debt service than is necessary.
According to figures provided to the supervisors last night, estimated technology costs for Riverlawn are nearly double what was spent at Pulaski Elementary.
Stowers said the primary reason for the increase is that the school system is looking at putting smart boards in each of the classrooms. He explained that smart boards allow what is on the students’ and teachers’ computer screens to be projected for the entire class to see. Also, he said, Riverlawn has more classrooms, thus requiring more technology equipment; and some of the telephone equipment is running about $150,000 over Pulaski Elementary costs.
Stowers pointed out that the bids for Pulaski Elementary “came in at just the right time for the market.” The total cost for construction of that school ($10.5 million) was almost half the projected cost for Riverlawn.
“We really got a good deal on that school,” Stowers added. “Right after we got the bids is when things exploded (materials costs skyrocketed).”
According to Stowers, Riverlawn will be a 660-pupil school with 30 classes of K-5 and 20 pupils per class.
Stowers said new school construction generally takes about 18 months.
A motion by Robinson District Supervisor W.E. “Eddie” Hale to authorize allocation of all but the furnishing and technology costs passed unanimously. The motion was seconded by Conner.
