High fuel prices one reason for $2.1 million more to complete project
Increased fuel prices are one of the reasons an additional $2.1 million will be necessary to complete work at Hutchinson Elementary School, Laurel Highlands School Board members learned Thursday. During a public hearing, architect Jeannine Russell of Michael S. Molnar Associates explained to the board why a proposed $6.4 million renovation/construction project now has an estimated pricetag of nearly $8.8 million.
Most telling, Russell said, has been the increase in gasoline prices and the impact on the costs of construction materials, plus shipment and delivery costs.
In speaking with the general contractor who just completed a four-classroom addition to the district’s Marshall Elementary School, Russell said the prices of many materials have greatly increased in less than a year.
She said the price of asphalt has increased by $2.75 per square yard, concrete prices have increased by $3 per cubic yard, steel prices have increased 5 percent, drywall prices have increased 27 percent, metal prices have increased 10 percent, and all material deliveries are typically assessed a 5 percent fuel surcharge.
“We have no way to gauge how much that affected this project,” she said.
Russell said the budget costs were developed prior to the institution of the state’s Uniform Construction Code and the required changes added an estimated $324,000 to the total project. The geotechnical engineer for the project recommended changes in how the additions are to be built, adding $175,000 more to the overall total, she said.
She noted that the school district is expected to receive an additional $531,200 in state reimbursement for the project because of an increase in the state school construction reimbursement rate, the first such increase in 18 years.
Joyce Estocak, business manager, said a $7.5 million bond issue approved by the board last year was supposed to cover the cost of Hutchinson and the addition to Marshall, but those projects now have a total cost of $9,586,886.
She presented the board with a list of other projects that could be done should the board decide they are necessary. Proposed work includes $570,000 in paving projects at several schools and $850,000 in building improvements.
Chris Brewer of bond counsel Thorpe, Reed & Armstrong of Pittsburgh said the board needs to consider at least a $2.1 million bond issue to finish Hutchinson and would be $3.7 million if directors are on board with other improvements.
Brewer said the board needs to decide how much will be borrowed because contracts have already been awarded for much of the work. Directors gave no indication Thursday how much they would support borrowing.
Simon Goehring with NatCity Investments said a $3.7 million bond issue would require an additional .3 mills in taxes, while a $2.1 million issue has a .101 mill impact. He said those figures do not include the additional state reimbursement discussed by Russell.
Director Angelo Giachetti said that the district cannot keep asking the taxpayers for more money.
“This was not our fault, and now we have to turn around and make the taxpayers responsible? It has to stop somewhere,” he said. “I cannot in my right mind ask people for more money every time an issue comes up.”
No members of the public offered any testimony during the hearing, which was required because the cost estimates exceeded the projections presented at a hearing in November.
During a special meeting that followed the hearing, the board placed several long-term substitutes in faculty positions, effective Thursday.
The board hired Adrialee Duncan for a fifth grade position at Clark Elementary, Carrie L. Cuppett as a first grade teacher at Hutchinson, Sabrina Dowling as a first grade teacher at Marshall, Julie A. Valentic as a first grade teacher at Hutchinson, Erica M. Hogan as a fifth grade teacher at Hutchinson, and Robert J. Walters as a fifth grade teacher at Clark Elementary.
Directors also voted to hire Lisa Peccon as a high school math teacher and Kristen Miller to fill a special education position.
The board also accepted the resignations of Carol Roberts Kefalas, fifth-grade teacher at Hatfield Elementary; Gwen Yoney, high school math teacher; and Terri Mangas, special education.
Directors accepted the retirements of Monteen L. Barnhart, first-grade teacher at Hutchinson, Elizabeth A. Strickler, first-grade teacher at Hatfield, Elaine K. Conway, second-grade teacher at Hutchinson, Gloria Duritsa, high school librarian, and Bernard T. Guy, middle school math teacher.
Board members voted to grant insurance coverage to a district employee on disability retirement at his current rate for another seven years. Director Cathy Rice cast the lone vote in opposition to that motion.
Directors also voted to deny re-admission to three students who were responsible for some of the bomb threats that plagued the district last spring. Parents of the students petitioned the school district, but the board sided with the administration’s recommendation that they not be allowed to return.
Only director Tom Vernon voted against the motion.