Serving Boone, Blowing Rock, Banner Elk, and other towns of the North Carolina High Country | Founded 05-05-05

WHS Price Tag Higher than January Estimate

Total Project Cost to Date: $72 Million

Story by Kathleen McFadden

In January, the Watauga County Board of Commissioners and the Board of Education met in joint session to hear to hear the pre-bid estimate for the third guaranteed maximum price on the new Watauga High School project. At that meeting, Marty Moser, director of preconstruction services for Barnhill-Vannoy, the construction manager at risk, said, “I want to emphasize that this is an estimate, not a guaranteed price.” Based on architectural drawings that were 90 percent complete, the estimated construction cost in January was $47,189,697.

On Tuesday, March 18, the two boards met again in joint session to hear the final figure for the third maximum guaranteed price. After Barnhill-Vannoy reps opened, read and evaluated more than 58 trade bid packages last week, the price increased more than $1 million—to $48,215,338.

That price includes the main high school building and all built-ins, sports fields and bleachers and the Leadership in Energy and Environmental Design (LEED)-certified features being built into the high school, including the geothermal heating system, as well as exterior lighting, signage, lockers, stage rigging, food service equipment, auditorium seating, paving, contingencies and the construction manager at risk fees.

Costs to Date

The total land cost for the high school property was $7,567,336. This amount includes the approximately 2-acre tract set aside for a proposed county recreation center that is technically not part of the high school cost. In addition, the county may decide to sell two adjacent tracts once construction of the high school is completed that will recoup some of the land acquisition cost.

The guaranteed maximum price for the site preparation—the first GMP presented and approved in September 2007—was $7,153,103.

The guaranteed maximum price for the steel and foundation package—the second GMP presented and approved in December 2007—was $4,531,559.

The guaranteed maximum price for the building construction—the third GMP presented and approved this week—is $48,215,338.

The total architectural fees to date are $3,925,500. The original architectural contract was for $3.1 million. The current total includes additional fees of $55,000 the two boards approved Tuesday night, a $99,800 charge for LEED certification and a $232,500 credit for reducing onsite oversight of the construction.

Estimated LEED registration and certification fees payable to the U.S. Green Building Council are $10,350.

The estimated fee that will be payable to an ASU team for LEED commissioning is $50,000.

Barnhill-Vannoy charged $529,002 for preconstruction work.

The total of all these costs is $71,982,188. This amount does not include debt service on the financing for the school.

The $35,000 Dishwasher

On Tuesday, the two boards approved additional architectural fees of $55,000—$35,000 to add a dishwasher to the high school kitchen and $25,000 to add a sports building for the baseball fields that is outside the original scope of work.

According to Watauga County Schools Superintendent Dr. Bobbie Short, the kitchen was originally designed without a dishwasher based on the architect’s recommendation. According to the architect, the last ten schools built in the state have not included dishwashers because school cafeterias are transitioning to using only disposable food dishes and eating utensils.

In addition, Short said, the architect pointed out that using disposables instead of washing dishes is a LEED certification issue because of the amount of water needed to wash the dishes.

“We took that recommendation at face value,” Short said, “but as we did more exploring, we felt that it was not the best thing to recycle and went back to the architect to request the addition of a dishwasher.”

Short said that interested citizens also voiced concerns about the lack of a dishwashing facility and the complete reliance on disposable products. “We listened to that input,” Short said, “and think adding a dishwasher is the wisest decision for Watauga High School and the community.”

Short said that water-efficient, “green” dishwashers are available that will reduce the amount of water needed to clean a load of dishes.

Because the dishwasher and its associated plumbing and electrical needs were not initially designed into the kitchen, the redesign of the space carries additional architectural fees of $35,000.

Financing the School

On Tuesday, the two boards approved a deed of trust security agreement and installment financing contract with BB&T for $70 million.

The deed of trust pledges approximately 89 acres of the high school land and the building as security for the loan. Excluded from the deed of trust are the proposed recreation center site and the adjacent parcels that the county may sell upon completion of the high school construction. County Attorney Tony di Santi filed the plat for the mortgaged land on Tuesday, and it is recorded in plat book 20, page 445.

Under the financing arrangement, the county can pay off $25 million of the loan without penalty within three years. This provision gives the county the option to pay down the loan with proceeds from the sale of the current high school. If the current high school does not sell, the county has the option of converting the $25 million to long-term debt.

The balance of $45 million is on a 20-year note.

The interest rate is 4.17 percent.

If the Local Government Commission approves the arrangement, closing will take place in April, and the first payment will be due June 1, 2008.