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TMCNet:  USD 363 board approves remodeling change orders

[January 15, 2013]

USD 363 board approves remodeling change orders

HOLCOMB, Jan 15, 2013 (The Garden City Telegram - McClatchy-Tribune Information Services via COMTEX) -- The Holcomb USD 363 Board of Education on Monday night approved two of three proposed change orders for the Holcomb Elementary School project and were presented independent audit results for the 2011-12 school year.


Kent Carmichael of Gibson, Mancini, Carmichael and Nelson Architects suggested the board approve change orders involving the addition of heating and air conditioning and replacement of ceiling tiles, because of the likelihood for increased costs for certain materials if the decisions were delayed.

"With material prices, it would probably be more expensive, so my feeling is if we're thinking about doing any of these now, now would be the time to do it, or we just say we're flat not going to do any of it. If there's a chance we're going to do them, now would be the time to sign them into contract," Carmichael said, adding that the contractor, Dick Construction, is required to hold its contract and any prices agreed upon with material providers for 60 days. "After that 60 days, they're relieved of that price. And if we decide to do it, we'd have to put something out for them to go back and get a different price." Superintendent Jean Rush added that the 60 days is up on Feb. 4, reiterating that Monday night's meeting would be the only opportunity to add the change orders to the remodeling project.

The first change order involves adding heating and air conditioning to the hallway outside of the south gym. The second change order involves replacing the ceiling in the west corridor, and the third order involves replacing the ceiling and light fixtures in the east public corridors. Carmichael told the board that of the three, the latter could wait until a later date and that approving all three change orders would make the total cost of the remodel $1,085,582.

"The east corridor, which lets say is $18,000, could be done later on easily if you want a little bit of cushion. And if it's say, 10 percent more, it would only be $1,800 cost later on maybe," he said.

Rush told the board that she was comfortable adding all three alternates.

"I am very comfortable with our budget, our past expenditures and where we expect to be with the capital outlay budget," she said.

In the end, the board approved the change order adding heating and air conditioning to the hallway outside of the south gym and replacing the ceiling in the west corridor, making the total cost of the project $1,066,932.

In other business, Patrick Freiss, CPA and partner with Kennedy, McKee and Co. of Dodge City, presented board members with external audit results conducted by his firm. The state requires that the district be audited by an independent auditing firm every year.

In summary, Freiss said the district's financial statements present fairly in all material respects.

"There were no new accounting policies. You didn't change the way that you were accounting for stuff. We also look at estimates, and the biggest estimates in the audit report are budgeted receipts and expenditures and accounts payable, and we reviewed those, and we didn't have any problems with how the estimates are being measured. So they were reasonable information to the financial statements taken as a whole," Freiss said.

More specifically, Freiss went over items such as food service, driver education fund, the vocational education fund, KPERs retirement fund, professional development fund and several other state-mandated funds, and said that the district was managing each fund in accordance with both standard accounting practices and with state law.

___ (c)2013 The Garden City Telegram (Garden City, Kan.) Visit The Garden City Telegram (Garden City, Kan.) at www.gctelegram.com Distributed by MCT Information Services

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