How should Manatee pay for new schools?
By SYLVIA LIM
MANATEE
- In just four years, the Manatee County School District has built, replaced or renovated 22 schools, for
$295 million.
So far, officials say those completed projects have been delivered on time
and are supposed to last for decades.
But can future work - more than 60 projects
in the next 10 years - cost less?
That is what the school board will examine this
week.
The debate centers on whether to hire a construction manager to oversee a project
or to bid it out to a contractor.
"There are no right or wrong ways to do it,"
said Wayne Blanton, executive director of the Florida School Board Association.
But
critics question how the district can guarantee that tax dollars aren't being misused. A recent internal audit, in fact,
found that while no public money had been misspent, there were opportunities where it could have been.
In Manatee, the school board has always opted to hire the manager in the past 10 years, rather than bidding
out the projects.
A construction management firm is usually hired at the beginning
of a project. Typically, up to 23 construction management firms apply, said Sherry Dowling, the district's director of
construction services.
District officials cut the list to no more than six firms, interview them
and then rank them. The district then negotiates a price with the highest-ranking firm.
The construction manager works with an architect on design, then comes up with estimates of how much a project will cost.
The final estimate, which includes an "unforeseen conditions" fund, is called
a guaranteed maximum price. If the scope of the project changes, it must be approved by the school board.
The manager will then proceed to build the project.
The alternative
calls for licensed contractors to bid for the project based on an architect's plans. The lowest bidder would usually be
selected.
If there's a change in the midst of the work, then the contractor has
to ask the board for more money.
Many school districts in Florida, especially those that are growing,
often opt for a construction manager because they take care of logistical problems that come with simultaneous projects, Blanton
said.
Like any other construction project, the district's goal is to have its
facilities completed on time, last several decades and be within a reasonable budget.
"If you can't have a job done in a timely manner, it can be a humongous hassle," said Ed Daugherty, the district's
chief internal auditor. "And dollars are important. It's public money, and we don't want to be accused of wasting
taxpayers' money. We're taxpayers, too."
Many advocates for hiring a
construction managing firm say the process delivers better-quality work, on time.
The problem
with bidding out contracts is that you pay for what you get, the advocates say, citing horror stories of schools built with
substandard material that had to be fixed within a few years of being constructed.
"You're
forced to use the lowest bidder that you might not have used," said Stan Stephens, a former Manatee County commissioner
and president of Manasota Commercial Construction. "It's either you save money on the front end, or pay for it later."
State law allows districts to set up their own guidelines regarding these firms, Blanton
said.
In Manatee, the district has the discretion of selecting which firms it wants to consider.
The district pays these firms a fixed fee for preconstruction services at the beginning
of the project, Dowling said. Then, the final estimate will include a negotiated fixed fee.
"My main concern with it, is that you're giving the contractor the contract even before you know what he's
going to charge you, and then you're going to negotiate the price," said Bob Gause, a school board member who has
questioned the lack of competition in the procedure.
In the most recent internal audit
finalized in December, auditors did not find that funds were abused. But in one example, they noted that the district did
not monitor how fees were calculated on nine projects last year worth more than $1 million. As a result, payments were made
before they had been earned. And some payments that were made did not have supporting invoices.
The use of the "unforeseen conditions" fund was also questioned by the auditors. They said that the use of these
funds for changes in a project's scope should cease.
In one instance, the fund
was used to add more than $150,000 worth of sports lighting at Nolan Elementary. The county parks and recreation department
eventually reimbursed most of that to the district.
Dowling said "unforeseen
circumstances" include the rising cost of materials during the work.
But the district's
chief auditor disagreed.
If the price of a certain material goes up, then it's
up to the construction manager "to resolve that with their contractors or suppliers," Daugherty said. "If there's
a change in the cost, then a change order has to come before the board."
Most
of the audit's findings have been corrected based on the auditor's recommendations, Dowling said.
"In my opinion . . . the percentage of transactions questioned by the auditor is remarkably low in industry
standards," Dowling said. "But could we do better? Sure."
Whether the
millions of dollars spent on the district's new or renovated schools is justifiable remains to be seen.
"I don't think the school board is doing a good job of explaining 'building a 50-year-old school,'
" Stephens said. "I'm not sure if they have 50-year-old schools."
Most of the schools in the district have been either remodeled or rebuilt at one time or another, he said.
Changes in education policies and laws may change the future structure of schools.
Dowling agreed, but said the district aims to build structures that will hold out for 50 years.
So
are construction managers still the best bang for the taxpayer's buck?
"One
size doesn't fit all," Stephens said. "Cost has gone up so much, how can we save money? Maybe we should review
how things are done."
If you go:
What: Manatee School Board workshop on construction bidding process and changes in code of student conduct handbook
When: 5:45 p.m. Wednesday
Where: School district administrative building, 215 Manatee Ave. W., Bradenton
Information: Agenda posted at www.manatee.k12.fl.us
Code of student conduct handbook
The board will also go through the revised code of student handbook. The handbook deals with student behavior,
rights and other student- or parent-related matters. The portion on opting out from being on the military's mailing and
calling list was made more clear, said Louis Robison, the district's executive director of school improvement and accountability.
Sections on the use of cell phones, Internet, computers and other electronic devices also were detailed.
At a glance:
22...New,
replaced or renovated schools in past four years
50...Years schools are built to last
$295M...Cost
of completed work so far
$426M...Capital budget,
including construction work for 2006-07
Source: Manatee County School District
