Mounting construction costs, hidden expenses concern school board members
Jan. 4—HAMLET — For the second Richmond County School Board of Education meeting in a row, additional construction costs and expenses for three projects in Richmond County Schools was shared in an update to the board members.
Maintenance Director Steven King stated that in order to be in compliance with Section C408 of the NC Energy Conservation Code, updated in 2018, any building in excess of 10,000 square feet that is being constructed must be commissioned by a third-party certified company to review that the HVAC, plumbing and lighting is energy-efficient and will be able to be maintained. This commission is a cost that King was not informed of in previous phases of this project. The current projects are a 28,000 square foot auxiliary gym at Richmond Senior High School, a 6,000 square foot gym at Fairview Heights Elementary and an 8,900 square foot six-classroom addition at Mineral Springs.
Two projected-proposals were shared with the board of $47,700 and $38,300 for the commissioning of all three projects. An adjusted price for only the high school project was either $26,400 or $19,700.
"We have to do the high school," King said. "It's up to us if we want either of the other two."
Chairman Wiley Mabe asked King what his recommendation would be. King responded that it would be beneficial to have a commission report for the Mineral Springs project, since it is very close to the 10,000 square foot threshold and would ensure that this project is in compliance with the geothermal heating at Mineral Springs, the only school in the district to have that system.
"Fairview Heights would be another $9,000 dollars and I don't think it's worth $9,000," King added.
Funds for this extra expense will be used from the ESSER funds, which came from the U.S. Department of Education through the North Carolina Department of Public Instruction (NCDPI). The three projects had a total projected costs of $13,000,000 in September of 2021.
Board member Bobbie Sue Ormsby inquired if this required commission is something that is new. King replied that this sort of compliance was not necessary when East Rockingham Elementary, the most recent new building in the district, was built. Board member Cory Satterfield said he wasn't familiar with this commission as of a few years ago.
"Why can't the builders [LS3P] pay this?" Satterfield asked King. King responded that is wasn't a part of their initial contract.
"I know when we first started coming up with these estimates for these three projects...it seemed like that should have been a part of the equation," board member Ronald Tillman continued. "Especially when you're using builders that are familiar with this process, it seems like that should have also been included."
Tillman envisioned a scenario where each board meeting, more unexpected costs will accrue for the project. At the December meeting of the RCBOE, a plan to relocate electric conduits and wiring at the high school was quoted by LS3P to be in excess of $500,000. It was negotiated down to $224,000; money was used from a contingency fund to solve this issue.
"As some point, it's going to fall on the board," Tillman said. "The money has got to come from somewhere. and it's going to end up coming from fund balance. I don't like touching fund balance unless it's an absolute emergency. I just hope and wish that at some point... I would like to know the bottom line upfront. All these other expenses that is coming and coming. That's kind of frustrating and bothering me. As a board member, it just concerns me and I'm thinking long-term these funds have to come from somewhere."
Satterfield said he agreed with Tillman.
"Every month we're coming in here, it's another $50,000 here, $40,000 here, $60,000 here," Satterfield said. "The plan was to always move — this was being built because the ninth graders were going out the high school. and we would finally have a high school with 9-12. Now there's some questions that the ninth graders may not fit out there with all this construction."
"That was the plan," Satterfield continued. "Where are we going to get the funds to make sure they stay out at the high school? We have to be really careful how we are spending our money. I don't want this to blow up in anybody's face....I don't want to have a project where we renege on not moving the ninth graders out to the high school. To me that was the selling point for this entire project."
Following their comments, the board members unanimously approved a commission report for Richmond Senior High, which was required, and for Mineral Springs.
Satterfield again inquired to King if this was a known-expense for the project. King again reiterated that it was a surprise.
"So you could be coming to us every month while this project goes until next November?" Satterfield surmised. "Is there anyway you could have a meeting with the builders because they know what's coming? They do this every day for a living. I would like to know if we have to look forward [to an unknown payment] every month...The architects should know this expense...[They] came and told us this great presentation...I'm not liking it so far."
Tillman inquired to see if there is a way that this unexpected cost could be split between the builders and the school system.
"They have experience with building schools and renovations. In my personal opinion, they should have included the commission in the estimate," Tillman said. "In my opinion, they dropped the ball on that part."
Over winter break, completed projects in Richmond County Schools include a re-painting of the main halls at Fairview Heights, a re-painting of the cafeteria at Cordova Middle (along with a carpet being removed from the media center), and the demolition of an old building behind Rockingham Middle School.
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