School board takes new approach with bond projects

Nov. 2—The Baker School District will try a new approach now that rapidly rising construction costs have temporarily thwarted the district's schedule to build a cafeteria/multipurpose building at Baker Middle School.

The estimated $4.5 million project was the largest the district planned to undertake with money from the $4 million property tax bond measure that district voters approved in May 2021.

It was the first voter-approved measure for district capital improvements since 1948.

The district combined the $4 million bond with money from several other sources for an overall budget of about $14.5 million for a variety of projects across the district.

The middle school cafeteria, though — the school lacks such a facility — was one of the showcase projects that district officials touted in promoting the bond measure in 2021.

But when the district solicited bids this summer it received only one, from Sid Johnson & Co. in Baker City. The bid was $9.1 million, more than double the district's projected cost.

Accepting that bid would have left the district unable to do most of the other work officials pledged to do when they asked voters to approve the bond measure, Erin Lair, the district's superintendent, said in August.

The school board voted unanimously on Aug. 18 to reject the lone bid.

Lindsey McDowell, the district's public information and communications coordinator, said district officials believe Sid Johnson & Co.'s bid was a realistic reflection of the current construction market, one that takes into account supply chain issues, rising costs and uncertain availability of both materials and labor.

"The economic climate is to blame for a lot of this," McDowell said.

Julie Huntington, chair of the Baker School Board, agreed that the $9.1 million bid was a realistic, and dramatic, demonstration of how much construction costs have increased since the district put the bond measure on the ballot.

A different approach

In August district officials said that given construction costs, the board would consider what's known as a construction manager/general contractor approach rather than solicit another round of bids for the middle school cafeteria.

The idea is to hire a contractor that can work with the district to come up with an affordable proposal for the middle school and other projects that also meets the district's goals, Lair said.

The school board, meeting on Oct. 20, agreed to hire CB Const, Inc. of La Grande as construction manager/general contractor for remaining bond projects, including the proposed middle school cafeteria.

The district will pay CB Const $38,880 for work prior to construction.

During construction, CB Const fees would not exceed 3% of construction costs, according to the company's proposal.

The district also received a proposal from Wright Brothers The Building Company of Boise.

A committee including district staff and members of the school board and bond oversight committee recommended the board choose CB Const.

District officials met on Monday, Oct. 31 with representatives from CB Const, as well as Wenaha Group, the district's project manager, and LKV Architects, to start planning.

"We are entering an intensive pre-construction period with CB Const that is expected to last through March 2023, where the team will work together to form a plan that maximizes project scope within the remaining budget," McDowell said. "Until we are further into the process, we won't know how this will affect plans for the middle school cafeteria/multipurpose building, but no one has given up hope that the building will still get built."

CB Const is familiar with the district and in particular with the middle school. The company was the contractor for a $2.3 million project, completed on Oct. 14, to make the middle school gymnasium better able to withstand the effects of earthquakes. That project was paid with a state grant for seismic projects and was separate from the bond measure.

Other money sources and projects

The district also has a $4 million grant from the state, $2 million from its capital projects budget, $2 million from the state Student Investment Act, $1.5 million from federal COVID-19 aid, and $1.4 million from another state program earmarked for work at the Baker Early Learning Center (BELC), which is in the former North Baker School building at 2725 Seventh St.

Details, including deadlines and allowed uses, for each of the money sources:

—$4 million voter-approved bond can be used for any bond expenses; 85% must be spent by December 2024.

—$4 million state grant (Oregon School Capital Improvement Matching Grant), can be used for any bond expenses. Money must be spent by March 30, 2024, but the district has requested an extension.

—$2 million from the Student Investment Act, must be used for safety/security projects. District has spent $1 million, primarily at Brooklyn Primary, and the remainder must be spent by June 30, 2023.

—$1.5 million federal COVID-19 aid, must be spent for HVAC projects, and the money must be spent by Sept. 30, 2024.

—$2 million from district's capital projects budget. Money can be used for any bond expense, and there is no spending deadline.

—$1.4 million from the Oregon Legislature must be spent for projects at the Baker Early Learning Center. Deadline is Sept. 30, 2023, but the district has requested an extension.