The Fayette Citizen-News Page

Wednesday, August 13, 2003

BOE OKs McIntosh construction without $1.5 million to pay for it

By J. FRANK LYNCH
jflynch@theCitizenNews.com

The Fayette County School Board will consider a number of options to raise the estimated $1.56 million it needs to "top off" renovations and additions at McIntosh High School, construction work it signed off on last week by awarding a contract, even though it lacks the funding mechanism to finish the job.

In a called meeting Aug. 5, the board spent well over an hour debating the addition of a new physical education facility at the Peachtree City school, and whether it would be followed by minor changes to the old gym or a complete overhaul that would convert the cavernous space into a fine arts auditorium.

The new construction, which will include expansion of the cafeteria, was priced at $7.7 million. The finance department came up $1.56 short to build out the auditorium, however, and school district staff recommended the final phase be postponed.

But at the same meeting, the board was asked to sign off on a $3.6 million contract to build an auditorium at Sandy Creek High, modeled after the Willie Duke Auditorium at the Starr's Mill South Complex.

Fayette County High still has first dibs on F.A. Sams Auditorium, though that facility is across the road on the old high school campus. And when Whitewater High opens next fall, it will also include a finished auditorium.

That left the possibility that McIntosh, which opened in 1981, would be the only high school in Fayette County without adequate performance space.

The desire among board members to see each of the county's high schools with "equitable" facilities ended up being the factor that drove their decision, beyond fears of the economy

The board hopes time is on their side. Because the old gym renovation is in the final phase of the project, the work on retrofitting it won't start for nearly two years.

All the work is projected for completion in 30 months, or February 2006, when the ninth graders who started at McIntosh this week are halfway through their junior year.

That's a better option than coming back a year or more beyond that to finally finish out the old gym, board members agreed last week.

"I don't see how we can't do this," said Board Member Greg Powers. "This is the last opportunity we have to make these schools equitable, to put them all on a level playing field.

In the grand scheme of funding, Powers argued, the Board could find $1.5 million somewhere, even if it has to come out of the district's $12 million reserve fund, though that would be a last resort.

Other options include seeking state grants for capital improvement projects on aging facilities, which could divert local funds for routine maintenance or repairs to McIntosh. Cutting back on replacing ceiling tiles, carpet or coats of paint on existing buildings was another option offered.

Fayette schools have entered into "Certificates of Participation" or COPS agreements in the past to come up with capital funds in difficult times, but they carry debt burden. Adding the project to a proposed 2004 school bond referendum won't fly because of laws specific to the type of work voters approve at the ballot box.

But the most likely scenario: Sell off some of what you got. Powers recalled that the school board still owned a chunk of land off Lester Road, near Cleveland Elementary, land that was originally considered for a South Complex-type cluster of schools, an idea that was later dismissed.

"We could probably sell off that excess acreage there for $800,000, and then we'd only need $700,000," he said. "We can put it in next year's budget if we have to. We're foolish if we don't take advantage of this."

Smola questioned the board's obligation to the community, to avoid spending money it does not have but also to take advantage of situations that might save money down the road.

"If we obligate the taxpayer without the taxpayers' permission, is that taxpayer going to support a bond vote a year from now?" she asked. "Or do we have an obligation to get the most for that taxpayer's dollar now?"

The McIntosh and Sandy Creek additions, though not proposed as part of a $65 million bond referendum approved by voters in 2000, nonetheless are the last in a string of major projects to come as a result of that vote.

Nearly $81 million in work will have been completed when this phase of school system expansion is finished, Powers pointed out, thanks to interest earnings, lower construction costs and overall good fiscal management by the district.

There's no reason to think the same careful spending can't compensate for the $1.56 million needed to complete McIntosh, money that won't be needed for another two years anyway, Powers said.

That optimism was little comfort to his fellow board members.

"This is the most difficult decision I've made since I've been on this board," said Janet Smola afterward. Added chairman Terri Smith, "This is the hardest I've had to work."

And it was even less comfort to the folks who have to find the money, and then figure out how to spend it wisely.

System finance director Jim Stephens, who has a reputation for fiscal conservancy, appeared visibly shaken when the board finally agreed, by a reluctant 5-0 decision, to proceed, without the cash.

"Does this worry you?" Smola asked Stephens directly at one point.

"Yes, it does," he responded.

Board member Lee Wright insisted on close scrutiny of the projects, the costs and the funding mechanisms.

"If we proceed, I think it's imperative we track this thing closely, that the finance and facilities staffs stay in close contact," Wright said.

He was seconded by Marion Key, who reluctantly voted for the McIntosh contract despite insisting she did not approve of "spending money we don't have."

"If the costs don't come in close to the bids or there are cost overruns, I want to know about it ahead of time," she said, addressing school district staff. "I don't want to have to come to a board meeting and find out on a memo about this stuff. We need to know what's going on."