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L-D School District awards Phase 2 facility update bid for $4 million

November 8, 2018

DEADWOOD — The Lead-Deadwood School Board awarded Phase 2 of its facility update plan work at elementary school to Heavy Constructors dba Gustafson Builders for a base bid of $3,929,000, and two alternates totaling $34,800, for a grand total of $3,963,800. The project came in right at the amount earmarked for the project, not allowing for other essentials, and will require value engineering pursuits and other adjustments to stay on target.

“Originally, we had a budget for phases one and phase two, and phase one, at $1.3 million, came in almost at budget, involving the high school elevator, tuckpointing at the high school and elementary schools and two retaining walls at the elementary school,” said Superintendent Dr. Dan Leikvold. “For phase two, we had $4 million earmarked for the project that included not only the base bid, but also other items such as asbestos abatement, legal work, owner costs, and design costs and fees. So when we looked at it, between the base bid from Gustafson at $3,963,800 and alternates totaling $34,800, and other items such as design, site surveys, construction testing, insurance, owner costs, we were $964,880 over project budget. So, one of the things we did was we sat down and reduced that number through value engineering.”

The next step in the process is for the district’s consultant, ICS Consulting, its architect, and Gustafson Builders to sit down and further identify areas in which to reduce cost.

“We’ve already identified $306,509 worth of items we’d like to value engineer,” Leikvold said. “This is a list of items that were in the original base bid that we’re not going to do anymore. For example, a lot of it was materials costs, so we’ll use different types of metal, concrete, case work, carpet, tile, doors, tack boards and paint instead of developing murals.”

Another area of potential costcutting is $162,290 for asbestos abatement, which after further examination, is likely not required.

“So with $306,509 in value engineering reduced from the target figure and $162,290, the amount over budget is more like $468,799, rather than $964,880,” Leikvold said.

The district’s original plan to fund the facilities updates was to raise the capital outlay levy to the max for three years in order to generate $7.5 million over three years.

“To essentially do three things: Have $1.3 million for phase one; $4 million for phase two; and have an additional $2.3 million to reallocate toward the general fund, if needed,” Leikvold said. “The issue with being way off, the way it’s going to pan out is $1.3 million for phase one, $4.5 million for phase two, and $1.8 million to transfer to the general fund. We’d obviously much rather have $2.3 million, but we are not going to have to make cuts in response to the change.”

Leikvold said once the value engineering discussion is complete, hopefully, if all goes well, the district will be remodeling the third and fourth floors in the elementary school over summer of 2019 and the first and second floors over summer of 2020.

“It’s mainly a redesign of the classrooms, to make them bigger and more open, to enhance the educational environment,” Leikvold said. “Independent study and special services rooms will be right next to the classrooms and heating, ventilation, and air conditioning systems are going to be upgraded dramatically.”Lead-Deadwood Elementary is currently a three-section school, or three sections of each grade, and the renovations will accommodate a smaller number of sections up to the three sections, leaving flexibility.

Phase 3 of the facilities update has not been designed yet but originally called for completely tearing down the 1985 portion of the building and rebuilding it.

“And we haven’t lined up the money for this phase yet. However, the essence of that conversation was to expand the footprint of the school to be able to do that. We had conversations about expanding to south, but that didn’t happen. So right now, we’re having conversations about phase 3 being different. Rather than tear it down, which would be very disruptive and very expensive, we’re considering renovating that building, mainly the cafeteria and kitchen,” Leikvold said. “There would be some renovation of the classrooms, but it wouldn’t be a total rebuild. It would be less disruptive if it was done in summer, rather than taking a whole year and, in theory, less expensive. But that is all in the conversational state right now. We don’t have designs completed or funding complete. That is a conversation we’ll have down the line. Money is a big factor. We believe that area is functional, it’s OK, but it needs to be upgraded and doing upgrades costs money. We’ll figure it out a couple of years down the line.”

A total of seven bidders bid on the phase 2 project; five of which bid on the entire project and two bid on portions.

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