Last week, the Lake County School Board unanimously approved the $12.6 million Eustis Heights Elementary School renovation project. Although on the surface it appears there was a victory for fiscal responsibility, many questions remain. Since we have reported on this project as well as the Umatilla Middle School project, there has been a growing angst in the community over the Lake County School District’s lack of fiscal responsibility; failure to hire local companies; and sheer incompetence when it comes to the bidding process. The main driver behind this project was School Board member Kyleen Fischer who, it appears in her zeal to construct this project, literally gave tax dollars away.
We are not sure if fiscal responsibility really did occur, because the original contract with AllState Construction, Inc. out of Tallahassee was $12.6 million, while the new contract is for the same amount with a caveat that the price may increase by $2 million. We are not sure why the contract price was not reduced. We have emailed this question to school officials, and have not received a response.
In the New Contract
The new contract contains several significant changes, which were pushed by School Board Members Bill Mathias and Tod Howard with absolutely no help from fellow School Board Members Rosanne Brandeburg and Kyleen Fischer. Let’s not forget that Lake County School District construction staff under Chief Operating Officer John Davis urged passage of the old contract at a much higher cost. Here are the primary differences in the contracts:
- AllState Construction’s general conditions under the old contract were $1,263,743. In the new contract, the amount has been lowered to $722,627–a savings of $541,116.
- Gone in the new contract is $133,230 in “other items” costs, which included $128,000 for relocating workers to Lake County–more savings.
- The profit and overhead percentage amount in the old contract was 5.85%, which for a $12,640,000 project would be $739,440. In the new contract the profit and overhead was reduced to 4.25% or $537,200. This saves taxpayers $202,240.
- What did not change is the 1.5% for owner’s contingency and 2.5% for the construction manager’s contingency. These are the amounts for foul-ups and omissions. For all of the planning and experts involved in this project, the amount is huge–$505,600!
According to the contracts, the Lake County School District should save $743,356 in profits and overhead–money that would have been paid to the construction manager– AllState Construction, Inc. out of Tallahassee. If School Board Members Fischer and Brandeburg and COO Davis had their way, this money would have been paid to the contractor. School Board Member Mathias brought the issue forward and School Board Member Howard stood with Mathias for fiscal responsibility.
Fischer Blamed for Overruns
As the heat intensified on COO Davis and his construction team, he was quick to the throw School Board Member Fischer under the bus for cost overruns on the Eustis Heights Elementary School renovation project. Multiple sources close to the District told us that Davis said as much as $200,000 in costs were added to the project based on special design requests made by Fischer.
School Board Member Howard questioned COO Davis several weeks ago on why established prototypes were not used at Eustis Heights Elementary School, and Davis never gave a straight answer. Many familiar with the project and School Board Member Fischer’s involvement theorize her passion for the project’s quick approval was to mask her role in the design, which created the huge cost overrun. From day one, Fischer voted “yes” on the project and she desperately wanted to get the discussion of money behind her.
The voters and taxpayers of Lake County won’t get the final cost for the project until sometime later, when “A Guaranteed Maximum Price (GMP) amendment will be presented to the Board at a future date upon completion of the Drawings and Specifications.” However, they can be rest assured that Fischer will be there with her “yes” vote to spend.
Teachers Should Learn Construction to Make More in Lake County
The Lake County School Board has promised no raises for teachers and they are threatening to layoff 59 others to cover a possible $16 million shortfall in the budget. On the contrary, when it comes to construction salaries the District spares no expense. Under the contract they have just signed with AllState Construction, Inc. they are paying top dollar for their employees for this 68 week long (one year and four months) project. Below are actual salaries being paid to AllState, which have been approved by the Lake County School Board:
- Project Manager – Keith Hendry – $220,887.04 for 64 weeks (or $3,451.36 per week)
- Assistant Project Manager/Project Engineer – Tom Campbell – $150,960.00 for 68 weeks (or $2,220 per week)
- Project Superintendent – Jason Woods – $194,436.48 for 68 weeks (or $2,859.36 per week)
- Project Administrator – Local Hire – $75,776.00 for 64 weeks (or $1,184 per week)
Plus all three men get some form of vehicle or fuel allowance.
Here is the question of the day: While teachers are not getting pay raises and they are facing layoffs, does it seem fitting that the Lake County School Board did not challenge the rates being paid to AllState employees? The District pays the best and buys the best in everything, except when it comes to teacher’s salaries. Is this fair? As a teacher, would you rather work in a regular building without extra Fischer designs and make more money?
Davis Has Got to Go
This new contract demonstrates above everything else that Lake County School District Chief Operating Officer John Davis has got to go. School Board Members Mathias and Howard drove this contract price down; and, if not for the intransigence of the other school board members the price would have gone lower on rebid. It cannot be forgotten that Davis said they had negotiated the best deal for the District on the first contract, which was $743,356 higher after Mathias and Howard got involved. We’ve asked this question before, “How many times can John Davis be wrong until he is terminated by Superintendent Dr. Susan Moxley?” His proven failures will soon become hers if she fails to take action.
Finally
The District claims to be charting a new course when it comes to local purchasing and construction. In Thursday’s edition of The Right Side of the Lake we are going to explore their new path to see if they have taken a new direction or the same old way. There have been so many failures in leadership regarding the Eustis Heights Elementary School renovation project; however, one thing is for sure—School Board Members Mathias and Howard earned their salaries for the next four years with this one. We are going to be closely monitoring this project to see if the cost comes in below $12 million. We hope the District is not going to be socked $2 million more for the custom-Kyleen-Fischer design!
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