HomeMy WebLinkAbout2009_01_20 Board Minutes
IDAHO FALLS SCHOOL DISTRICT 91
BOARD OF TRUSTEES
BOARD MEETING
DISTRICT OFFICE BOARD ROOM
January 20, 2009
12:00 Noon
Present from the Board of Trustees: Present from the Administration:
Mary Ann Smith, Board Chair George Boland, Superintendent
David Lent, Vice Chair Dr. Gail Rochelle, Director Secondary
Ernest Jensen, Treasurer Karla LaOrange, Director Elementary
Jerry Wixom Guy Wangsgard, Director of Business
Deidre Warden Caroline Meagher, Recording Secretary
Scott Marotz, District 91 Attorney
Jeffery McConnell, Design Build Contract Attorney
Board Chair Mary Ann Smith called the meeting to order.
Pledge of Allegiance was led by George Boland.
ADOPTION OF THE AGENDA
Deidre Warden motioned to adopt the agenda. Ernest Jensen seconded the motion. Motion passed.
WORK SESSION
a.Facilities upgrade guaranteed maximum price review and bond discussion:
Dana Wood, Director of Operations took a moment to recognize district 91 employees: Kent Chaffee, Mike
McGuyer, and Ferel McArthur who have all worked very hard with Trane and their contractors.
The Board of Trustees and District 91 administrators received binders with the GMP (Guaranteed Maximum
Price) of the job scope. During this meeting, Board members will ask questions about this document. Their
questions will go to Dana Wood first, and then to the Trane team members.
1.Is the PM (Project Management) fee of 2.5% added onto everything?
Yes it is. Trane will be the project manager for the entire project. They lowered this fee from 5%.
Trane will bring on multiple contractors and their PM will manage the entire scope. Bateman Hall
has a PM. The Project Managers will take the responsibility to ensure that all inspections are done.
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2.Please explain the 10% warranty - is that labor and materials on the whole project for 365 days?
Does MSS have a warranty?
MSS is providing their services, Trane will cover their warranty. Bateman-Hall will provide their own
warranty. Each individual contractor is responsible for their work.
MSS is still charging 15% to provide labor and work and the 1% warranty is for all work contracted
that goes through Trane. If MSS makes a mistake, Trane covers it and then they will seek
reimbursement from MSS for the costs – yet we are paying up front for this warranty.
In the original contract, that warrantee fee was 2%, which is industry standard.
3.What is the difference between Design fee and Architectural fee?
We have been charged 5.7% to date for the architecture fee. The design portion happens as we
progress.
4.The 21% mark-up covers what? Trane assesses 21% for their profit.
Then what are the contingency fees? Contingency fees for Bateman Hall are 5.5%
5.What is the commissioning fee? In an RFQ based on performance contracting, this fee covers the
monitoring verification or process control to guarantee the service. It is an additional function. It
makes sure that equipment functions as designed.
6.What are we doing in the remodel for energy upgrades? Will there be new light fixtures for all
buildings? Or just new bulbs? In the major remodel jobs, there will be new fixtures. In the smaller
remodel jobs, we will replace the ballasts and the bulbs.
7.Are there any more energy cost savings? Mike Boyer of Trane verified that there are some potential
rebates for energy savings through the City of Idaho Falls Power.
8.Would we consider eliminating any lighting changes? We can make some changes, like not having
a dimmer in the auditorium.
The district went into this under the impression that we will have more energy savings. We are not
seeing those. The design build will cost us more because of the compressed schedule.
Your savings will come in the rebate. These lighting changes will cost $145K through Trane. If we do
this work independently, it will cost $87K.
Design Build typically does cost more than a bid on the front end; with change orders, which are
inevitable with the bid process, design build ends up costing less.
We really want to use local subcontractors.
This is design build, you can control who we are soliciting.
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How much did Hawthorne cost? Hawthorne cost $4.4 million at $100 per square foot. The remodel
costs that you are quoting us are twice as much as the Hawthorne project. $8.3 Million for a new
school. Have construction costs raised that much? This is $125 per square foot.
Trane is inline with other contractors. Look at comparison schools.
9.With the changes in the economy in the last six months, why are these prices higher?
The pricing is still a moving target. Prices are dropping, but they are up from where they were a year
ago.
How much concrete are we looking at? When will ARIVA start their construction – their competition
for the concrete will drive those prices up.
ARIVA probably won’t begin construction for another couple of years. We should be able to do this
without an impact from them.
10.Is MSS charging us to cover their profit?
There is a difference between actual and proposed costs. If the numbers come in less, we can use
those savings for other items. That different will not go towards their profit.
11.If we have additional money, don’t we have those items specified in the bond? If it doesn’t cost as
much, we can reduce the last bond and reduce the taxes for our taxpayers.
12.We also do not know if the new Presidential Administration will offer any stimulus packages. There
are a variety of programs will probably become available. We need to watch this.
13.Idaho Falls Power offers rebates based on kilowatt hours saved.
14.The bond interest rate dropped by 1%. Eric ran the numbers again, for an $85 million dollar bond,
the cost is $10.75 per month on a net taxable home value of $100K, as apposed to $12 per month.
15.We might not be able to get levy equalization from the state.
16.Have we generated a list of the energy conservation measures? Dana will look into that. We do
have a comprehensive energy audit and we have reduced our scope about as much as we can.
If we have to, we can use some of the Plant Facility money on this instead of purchasing new buses.
We need to run some numbers and show the contingencies in the Liquid Fund balance of the
General Fund Budget, in the Plant Facilities budget, and the Operations budget.
Dave would like Dana to provide the cost per classroom for the additions and to replace the
portables. He would like it in order of cost associated with replace, ECM, and need. We have to
show something for everyone.
Jim Knutson, Trane inc., thanked the Administration for their help through the process. He offered
the support of Nick Hallett and his resources for our bond campaign.
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Jeffery McConnell, Design Build Contract Attorney commented that the concept behind design build
is to design as we build. This give us more control over the final product. Design Build is a more
flexible concept instead of design it and then build it.
You have good contract form. The form will not change. What is unclear is who the single point of
contact is? If we have a problem do we contact Trane or the subcontractors? We ultimately need
one point of contact. I think that is what the 2.5% fee is for the Project Manager.
Trane will be the single point of contact and they will put that in their contract.
Jerry Wixom motioned to adjourn the meeting. David Lent seconded the motion. Motion passed.
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