Schools are under budget on capital improvement projects

There is a ray of sunshine in the Sisters School District's current storm of controversies over state withholding of funds and the hiring of a new superintendent.

The district has saved almost $48,000 in a series of projects. Working under the guidelines of its newly initiated Capital Projects Management Process, the Sisters School District has completed during the past 11 months 18 capital improvement projects at a cost of $551,780.13. The projects came in at $47,919.87 under the budget for a savings of 7.99 percent to the district.

Of the 18 projects, 12 were under budget. Two were on budget and four were over budget. Nine were completed early. Six were finished on time, and only three went past their projected completion dates. Poor weather and delays in receiving parts were the major reasons projects were not completed on time.

Sisters School District Superintendent Ted Thonstad told The Nugget that with the new Capital Project Management Process the district can much more accurately estimate project costs and completion dates.

"We are definitely doing things differently than in past years. ... The new (procedure) requires us to define the scope of the project," he said.

Thonstad explained that after defining a job's scope and its cost, what the district will receive in return must be considered. He added that for both cost and time estimates to be accurate, contingencies must be added into the plan. Thonstad explained that when doing a project the norm is to add between 10 and 15 percent to the cost estimate and if the project is a remodel 20 percent must be added to the cost estimate.

"We get a bid from a contractor, and we add 10 percent to it generally as a contingency because when you look at projects over time that can be what happens," he said.

Regarding completion dates Thonstad said, "We have learned from experience, we can say when we want it done but that doesn't mean it will be done then."

To have a realistic completion date, extra time must be added.

According to Thonstad, the 18 projects were maintenance and improvements which for the most part have needed to be done for some time or necessary upgrades and changes related to the move of the fifth grade to the middle school (see related article, page 15).

Funding for the projects was made possible from proceeds the district received from the sale of the district's Lundgren Mill property. The district sold the property in September of 2005.

"We sold it on the basis of $1,200,000 down; then we have three payments of $700,000 plus interest," Thonstad said.

He added that the district has used the money received to date to pay off the debt it incurred to finish the high school construction project, for the middle school remodel and to cover cost overruns on the new administration remodel project, as well as to pay for the 18 recently completed projects.

To cover all of these costs, approximately $1,500,000 has been spent. According to Thonstad, a little over $400,000 of the district's first $700,000 payment has not been used. The district is scheduled to receive its final two payments from the sale of the Lundgren Mill property October 1 of this year and again on October 1, 2008.

School board chairman Rob Corrigan commented on the benefits of the new management process: "One aspect of the Capital Projects Management Process is a clear, up front statement of exactly what has been approved and who is accountable for all aspects of the project.

Every week a small team meets to remind themselves of the original goals of the project, to review the latest tally of spending and discuss progress toward the delivery of the original performance goals.

If the program isn't on track to hit its schedule, budget or performance goals, the project manager is obliged to bring it immediately back to the board for review.

This form of 'Management by Exception' eliminates surprises, improves oversight and instills feedback and learning into the process."

For the 18 recently completed projects Leland Bliss, Facilities Supervisor, Todd Pilch, Technology Coordinator and Thonstad have served as the project managers.

Glen Lasken and Steve Rudinsky serve as the board's Facilities Committee members.

Over the past 11 months, the Sisters School District has completed 18 capital improvement projects at a total cost of $551,780.13 (see related article, page 14). According to superintendent Ted Thonstad, the projects were maintenance that has needed to be done for some time and necessary improvements or upgrades and changes directly related to this year's move of the fifth grade to the middle school.

Six projects came in under budget and early. They are:

• A mobile computer lab was purchased for the middle school as a result of the move of the fifth grade to the school.

• The commons, gym and boiler room roofs at the elementary school were re-roofed, insulated and brought up to fire code. Thonstad remarked, "It (the roof) had been patched so many times, it could no longer be patched. It was a necessity."

• Furniture, fixtures and equipment were purchased for the elementary school. Thonstad explained, "It was replacement furniture and the addition of some furniture that the elementary school needed because of increased enrollment."

• Portions of a broken curb and sidewalk were replaced at the elementary school. "We had a broken curb and a broken sidewalk that was to the point of being dangerous," Thonstad explained.

• The front entry roof was repaired at the elementary school to fix a long standing leak. According to Thonstad, the problem has not been completely solved, as the roof still leaks when there is ice build up.

• The elementary school's exterior doors were repaired. Thonstad remarked that these repairs are necessary maintenance that results from continual use.

"The hinges start to tear and they have to be welded back on," he said.

Four projects came in under budget and were completed on time. They are:

• The elementary school's library was remodeled to include a media center. A fourth grade teacher was added and an additional classroom was needed. Consequently, the media center became a fourth grade classroom, and the media center was moved to the library.

• The middle school was remodeled to accommodate additional staff members and the move of the fifth grade to the school.

• Phase I of the landscaping project at the administration building was completed. According to Thonstad, two more phases remain to be completed.

• The telephone system at the elementary school was upgraded to provide voice mail. Thonstad explained that a new telephone system was installed at the new administration building.

"We took the old telephone system we had at the old admin office and put it in the grade school," he added.

Two projects came in under budget but were completed late. They are:

• A paved play area was constructed at the middle school for students to play basketball, wall ball and four square. Due to poor weather conditions, it was not competed on time. This project was necessary because of the move to the fifth grade to the middle school.

• The elementary school's boiler was replaced with a new unit. The project was completed only two days late.

Thonstad explained, "When the boiler inspector came and inspected the old boiler, he red tagged it which means we couldn't operate it. The cost of fixing it was exactly the same as buying a new boiler."

One project was on budget and on time. It is:

• Electrical service was added to the high school's wood shop to provide sufficient power to operate a large sander and other wood working equipment.

One project was on budget but was completed late. It is:

• Playground equipment was installed at the middle school to accommodate fifth grade classes. Poor weather conditions caused the delay in its completion.

Two projects were over budget yet completed early. They are:

• The duct system at the elementary school was cleaned, and the water heating pipe system was flushed. The project ran over budget as new fire doors had to be installed that were not included in the original proposal. "The duct work had not been cleaned since the building was built," Thonstad commented.

• The elementary school's underground fuel tank was cleaned and lined. This project ran over budget because of the additional expense of pumping 30 years of sludge and replacing a foot valve on the tank that had not been included in the original proposal.

Two projects were over budget but completed on time. They are:

• Furniture, fixtures and equipment were purchased for the middle school as a result of the move of the fifth graders to the school.

Three classrooms needed furniture, overhead projectors, bulletin boards and the like. The project ran over budget because of additional furniture that was needed for the drama/lecture room.

• The HVAC, electrical, refrigeration and lighting systems were evaluated at the elementary school to determine what upgrading and repairs are necessary.