Grand Forks School District's nutrition center to come in under original bid, board told

Jan. 22—GRAND FORKS — A project to build a new school district kitchen is coming in under the original bid, Grand Forks School Board members were told Monday evening.

The plan's technical name is the "Child Nutrition Central Kitchen Project," part of a three-pronged, $79 million project that was approved last year by the district's voters. The main component of the project — building a new $55 million Valley Middle School — stole much of the spotlight during the lead-up to the referendum, but the kitchen project and a security upgrade at buildings throughout the district also were approved on May 16.

During Monday's meeting of the Grand Forks School Board, district Business Manager Brandon Baumbach told the board that the kitchen portion of the project is coming in under the original bid of $6 million.

"Exciting news. ... It all came in under budget," he said. "That is really exciting."

According to Ben Matson, of Construction Engineers, the total project cost is $5,355,000, "which includes all soft costs related to the project."

More good news, according to Matson and Baumbach: Alternate portions of the project likely will be affordable, "the big one being a garage addition we put into the project," Matson said.

The garage was added "as kind of a cushion." Had the bids been higher, the garage could have been eliminated to stay within budget. As it is, the garage project and other alternatives were accepted, Matson said.

That pleased board member Bill Palmiscno.

"The garage is much appreciated by the people (who will be) delivering the food," he said. "They'll have dry trucks and trucks within a garage when they are loading, rather than be sitting outside and freezing up in the winter. It'll be nothing but a plus. And the price is under budget, which moving forward still leaves us some money if we need it within another location."

Any leftover funds within the $79 million must only be used on the projects that voters approved, Baumbach said. That means a few dollars left over on the kitchen could conceivably be added to some unforeseen expense at the new Valley Middle School, he said. But the funds probably cannot cross over into other projects outside the referendum's scope.

Monday's meeting generally focused on budgetary items. Along with the good news about the nutrition center's price, board members also approved a change order of $562,582 for the Career Impact Academy, which is under construction on the city's northern edge. Known by its initials — CIA — the facility will be located near the intersection of Gateway Drive and North 43rd Street and will offer instruction and training in high-demand occupations, such as advanced manufacturing, aerospace and unmanned aircraft systems, automotive services, building trades, computer science and information technology, culinary arts, engineering and robotics, health sciences and precision technologies,

according to past Herald reporting

.

Baumbach noted that the district's Finance Committee had been tasked with considering change orders, but that the committee members felt this particular order should be taken to the full board, due to its amount. The price increase is due to structural, architectural, mechanical and electrical factors, he said.

In an effort to stave off inflationary costs, bids were put out "as early as possible" on the project, Baumbach explained. Ideally, he said, "the longer you wait, the more certainty you have and less change orders that will follow." Now that construction has begun, Baumbach said, more large change orders are not anticipated.

Board member Eric Lunn said he appreciates the Finance Committee bringing it to the board because "$500,000 here and $500,000 there adds up pretty quickly."

The board approved the change order with a 7-0 vote. Members Dave Berger and Jeff Manley were absent.

The board also considered and approved the district's general fund financial statement, for the period of July 1-Dec. 31, 2023. According to the district, "for the first six months of fiscal year 2023-2024, total general fund revenues were $56,116,008 and total general fund expenditures were $55,402,518, resulting in revenues over expenses of $713,489."

Baumbach said revenue is up 7% compared to this time last year, while expenditures are up 20%.

The rise in expenditures can be attributed to an increase in salaries and benefits, per a new negotiated agreement with the teachers union. Also, legal services are higher this year.

"(The increase in legal services is) related to our international talent that's come in and some of the associated visa fees," he said.

He also said he expects the general fund balance to improve as the year goes on, due to scheduled revenues arriving in the coming months.

In other news from Monday's meeting:

* The board approved a consent agenda that included an open-enrollment application and a third-party student information request from homestyler.com. The former is listed on the board agenda as "an online software used to design floor plans for (an) architecture unit that will require the students' individual log-in, including their email address and name."

* Approved three resignations, including Melanie Craig, a band teacher at Discovery and Twining schools, effective May 31; Ryne Dolleslager, a history teacher at Central High, effective Jan. 8; and Samantha Casserly, an English teacher at Valley Middle School, effective Jan. 2. With Dolleslager and Casserly, the board approved the resignations with a 5% "liquidated damages" release-of-contract payment required.

* Approved a consideration of "Resolution Relating to the Issuance of Bonds and the Reimbursement of Certain Expenditures."

"In working with our bond council they had recommended that this resolution be considered by you, just to allow more flexibility," Baumbach said. "This would comply with regulations in order to preserve the option for the district to be reimbursed. ... So, it's a cash flow issue — if you pay a bill prior to some of the proceeds coming in."

It was approved 7-0.