Board approves fuel contract, reviews ELC, TNHS construction projects
By JIM BROOKS
Nelson County Gazette / WBRT Radio
Thursday, April 2, 2015, 11:55 p.m. — The Nelson County Board of Education discussed Thursday plans to expand the Early Learning Center and build an auditorium at Thomas Nelson High School though the cost estimates currently exceed the amount of money the district can borrow to pay for them.
Board member Diane Breeding listens to a report by Kim Brown, director of the district’s secondary schools, on the comprehensive district improvement plan at the board’s working session Thursday at Central Office.
At its working session Thursday, Chief Operating Officer Tim Hockensmith told the board the ELC project cost is estimated at $2.25 million. Construction costs for Phase III at Thomas Nelson High School — which includes an auditorium — is estimated to be $2.55 million, Hockensmith said.
“The estimates still exceed what our bonding potential is,” Hockensmith told the board. The exact costs won’t be known until bids are opened for the projects, he said.
He acknowledged the board’s interest in making sure both projects are completed prior to the start of the 2016 school year. “As we start to have these meetings in the next few weeks we’ll do everything we can to make it happen,” he said.
Board member Larry Pate reviews documents during Thursday’s working session.
Hockensmith said he will recommend the district use the same architect and construction manager for the Thomas Nelson project as it hired for the ELC expansion — Studio Kremer and BCD. Doing so creates opportunities for the district to save money that can make the simultaneous projects more affordable.
For example, BCD has offered to take 90 percent of its allowed management fee for the Thomas Nelson project, he said. Having the same firms also streamlines the management of both projects.
The district’s personnel will also work to reduce the necessity for some of BCD’s on-site services, which offers the district additional savings. “Everybody benefits if we can complete these projects at the same time,” he told the board.
Last month board selected Studio Kremer as architect of the ELC expansion and BCD to serve as construction manager. Hockensmith said he will recommend the district hire both for the TNHS Phase 3 project as well.
Superintendent Anthony Orr listens during an update of the district’s plans to expand the Early Learning Center and build Phase III of Thomas Nelson High School.
Using the same firms is to save money. BCD is offering to charge 90 percent of their standard fee on the Thomas Nelson project — a move that will save money at a time when the district faces not having enough bonding capacity to afford both projects.
As he did for the ELC project, Hockensmith said he will also recommend prohibiting BCD from bidding on construction jobs that are part of the Thomas Nelson project. The move is designed to draw interest from other contractors in the area.
FUEL CONTRACT. The board took a rare vote at a working session to give Hockensmith the authority to move forward with seeking a fixed price for the district’s fuel for transportation.
Last May the district approved the bulk purchase of fuel with the intention of saving money — but the drop of fuel prices meant the district paid a fixed price higher than it would have if it had purchased fuel at market price.
“I don’t think anybody expected that to happen,” Hockensmith said. “We expected to save 15 cents a gallon.”
However, looking at the next year, Hockensmith said the price of fuel is more likely to increase than decrease. If the district locked in Thursday’s 3 p.m. fuel price, the district could save about $1 a gallon over the price it is paying now, he said.
Locking in fuel costs now while fuel is less expensive — even if the savings are just pennies per gallon — still represents substantial savings, he explained.
“Seven cents multiplied by 155,000 gallons is $10,000,” he said. “Obviously we want to lock in at the best price we can, and we can budget accordingly.”
Once locked in, the new rate will be effective July 1.
A Powerpoint slide highlights the recommended rate changes for the district’s childcare program.
PROPOSED CHILDCARE RATE HIKES. The board also reviewed a recommendation for increases in the district’s childcare rates, and questioned the increases aimed at the district’s own employees.
The recommendation suggested raising district employee’s full-time childcare and all-day preschool rates by $4 per day and part-time preschool by $2 per day.
Sara Wilson, the district’s executive director of student support, told the board that the district’s childcare rates have not increased in five years. “With the increase in salaries for next year, we thought we needed to address our rates,” she explained.
Board member Diane Breeding questioned the need to raise rates for employees. Wilson said the rate changes were based on the Bardstown school district’s rates.
“I don’t like the idea of raising employee rates as high as this,” Breeding said. “I think the sacrifice and the time, effort and energy and the impact they have, I think its a great benefit to have for employees.”
Affordable rates are a retention tool she said, adding that “I just think a $4 jump sends the wrong message.”
Orr said the rate changes are based on the fact that all of the district’s employees will have a 2 percent state-mandated salary increase. After questions by the board, he said the employee rates would be revisited prior to the next meeting.
In other business, the board:
— discussed a recommendation to approve a three-year contract with Smith & Company to conduct the district’s audits;
— heard a report from Hockensmith that the district’s food services is advertising for proposals to upgrade hardware and software;
— reviewed the district’s latest updates to the comprehensive district improvement plan.
NEXT UP. The board’s next meeting is Tuesday, April 21, 2015.
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