School costs may be higher than estimates

Architects on the new Sisters High School expect to have new cost information before the November 2 school board meeting.

Costs for a slightly modified design, pared from 162,500 square feet to 159,500 square feet, are being calculated.

The school board is debating whether to spend part of the interest generated by reinvestment of the $20.5 million bond on the new school, or return it to voters. The interest is expected to be about $1.9 million.

Board members Bill Reed and Glen Lasken are in favor of spending the interest while Heather Wester and Steve Keeton would like to return it to voters. Jeff Smith has suggested spending part of it.

The board may have little choice about spending the interest, unless it cuts the school design more drastically than has so far been proposed. The bond was for $20.5 million. With the interest, the district would have $22.4 million for the project.

However, an analysis by The Nugget indicates that a schematic design package dated September 24 would cost more than $26 million before "accepted value engineering" items are deducted, including substituting a composite roof for a metal roof and the reducing contingency from 10 percent to 2.5 percent.

After these deductions, The Nugget estimates the costs would be $23,521,188. This is still $1.1 million more than the district has to spend, even if all the interest is used.

The $23.5 million figure includes all costs for the school, including $20,668,796 for the high school project, $379,332 for renovations at the middle school (down from $450,000 estimated at the time the bond was approved by voters), and $114,225 for items that have not appeared in previous cost calculations, such as resurfacing the track, building a javelin pit and resurfacing the gym floor at the existing high school.

It also includes $2,358,835 in "soft" costs, including architectural fees, legal fees, estimated land use fees and systems development charges. This is about $458,000 more than the $1.9 million the school district has been using it its calculations.

These costs are not provided by the architect.

The most significant difference in "soft costs" are Systems Development Charges" which will be paid to the City of Sisters for water and sewer at the new school and at the future middle school (existing high school).

The district used $265,005 for its entire SDC estimate. The City of Sisters told The Nugget that the costs are more likely to be $701,900. This includes $482,230 for the high school for both sewer and water and around $219,670 for the middle school, just for sewer.

The schools and the city will be negotiating the SCDs and the final amount could change.

It is important to recognize that the numbers in this story represent a snapshot in time. The original school cost, based on an unedited "wish list" totaled about $29 million just for construction, according to architect Steele. That number came down sharply to the figures in the September 24 document presented to the board.

It will decline further as the design is refined and the board makes decisions about priorities.

On October 13, the board voted to spend $20 million on the school and hold out $1 million for contingency.

Since that meeting, the architect has modified the design, trimming an additional 3,000 square feet from the structure. The entry vestibule has been made smaller, the early child development class area has been eliminated, a storage room has become a shed and science lab rooms have been slightly reduced.

At $145.29 per foot, a number provided by the architects, this would be a saving of about $435,870. This would leave the cost at $23,085,318, about $685,318 more than the district has available, even if all the bond interest is used.

The district could sell other assets, including the Lundgren Mill property, against which it has taken an $800,000 loan, and the current middle school, which could be sold to developers once the students move out.

However, money from the bond may not be used to furnish the school. Desks, chairs, curtains and other items traditionally cost an additional 5 percent, or $842,398 according to schools facilties manager Bob Martin. Martin noted the actual number will vary depending on how the distict uses furnishings from the existing schools.

Actual cost figures for the modified design should be completed this week.