New school plan comes in below projections

Proponents of the new Longfellow Elementary School learned Monday that the district will incur a total $10.14 million net cost on bonds to finance the new school.

Board member Eric Christensen said that means the construction project will come in $3 million under the original cost projections.

Superintendent Joe Graves, who was out of town on business, participated telephonically. He told the board that the district’s $7.17 million bond offering was sold last Thursday by Dougherty & Company, of Sioux Falls.

Under a federal economic stimulus program, the district will get an average 3.78 percent interest rate on the bonds.

“We were very pleased at how the bonds came in, and obviously part of that had to do with the new federal program,” said Graves. “We were hoping we’d get the bonds underneath the 5 percent we originally projected. We started at 5 percent, dropped to 4.2 percent and they came in well under 4 percent, which will really reduce the overall cost of the Longfellow project over a 20-year period.

“The true interest rate was 5.6 percent, but with the Build America Bonds program, the district will receive a 35 percent rebate from the federal government on any interest it pays,” said Graves.

That means that instead of paying $600,000 a year for 20 years, the district will pay between $505,000 and $511,000 for that same period.

In another action that could consolidate all Mitchell Technical Institute services at the MTI south campus as early as the fall of 2010, the board approved an architectural/engineering and construction management contract with Puetz Corporation, for a new student services and administration building.

The project is expected to run between $9 to 11 million, said MTI President Greg Von Wald.

Von Wald said it’s not yet known how much of about

$23 million in state bonding support MTI will receive for the project, but he said he was assured MTI and Western Dakota Tech will receive the “lion’s share.”

“I’d like to have a groundbreaking on the project this fall, but if the bonding falls through, we would only be out $40,000 for design costs and that money would not be wasted, since we will eventually use the design,” said Von Wald, who is anticipating a fall bond offering, if all goes according to plan.

In other MTI business Monday, the board, after a brief executive session with Von Wald, decided to reject all bids on a student-built home, including the $210,000 high bid offered at the June 1 house auction by Jordan and Kendra Widstrom of Mitchell.

That bid, which was subject to board approval, did not cover costs incurred building the home, which has a finished basement, three-car garage and a geothermal heating system, said Von Wald.

The board authorized Von Wald to reopen bidding on the custom-built house using a different sales method. MTI will, after publishing an official announcement, accept sealed bids on the property with a minimum bidding price of $220,000.

Bids will be opened July 9 and the winning bid will be submitted for board approval on July 13.

Also Monday, the board:

• Approved on second reading an official district policy on bullying or cyber-bullying. Violators of the policy will be subject to disciplinary action “that may include, but is not limited to, the loss of computer privileges, detention, Saturday School, suspension, or expulsion for verified perpetrators.” Actual violations of law will be referred to local police.

• Approved the following personnel items:

New hires: Rick Jones, full-time custodian at MTI at $10 an hour, effective July 1; Robert Nicholson, part-time power sport lab assistant, MTI, at $10 an hour; Patrick Soukup, instructor, electrical construction and maintenance, MTI, $42,000 a year — all for the 2009-2010 school year.

Transfers: Brad Olson, from assistant varsity football coach to assistant 10th-grade football coach, $2,621 a year; Walt Moody, from assistant 10th-grade football coach to head ninth-grade football coach, $2,558 a year. Non-certified salaries: Mary Liz Crockett, middle school nurse, $17.70 an hour; Nicole Hohn, nurse for Longfellow and Gertie Belle Rogers elementary schools, $16.60 an hour; Anita Sutherland, nurse for L.B. Williams Elementary and Mitchell High School, $17.10 an hour; Bobbie Schelske, computer network specialist, $27,664 annually; Jeremiah Kirchmeyer, computer network technician, $30, 282; Mark Moore, network systems technician, $36,373; Sherry Velin, computer network technician, $33,147; Levi Hohn, information systems technician; $41,110; Sharon Max, employee services director, $34,600.

• Approved a supplemental budget for areas that have exceeded their budget in 2009, or that recognizes revenues and expenditures for grants that were approved after the budget was approved in July 2009. There was a $25,000 supplement to the food service budget, for instance, that will be covered by the federal government to cover the increased number of meals served. The general fund was supplemented by $289,700, with $118,600 of that amount coming from state revenues and $78,400 from federal grants.

The special education budget was supplemented with $26,300 in local money and the total supplement to the food service budget was $45,000.

• Approved a 3 percent average raise, about $2,100, for the following administrators: Brad Berens, middle school principal; Steve Culhane, business manager; Greg Girard, director of buildings and grounds; Geoff Gross, activities director; Vicki Harmdierks, GBR principal; Craig Mock, MHS assistant principal; Sean Moen, food service director, $2,100; Yvonne Palli, MHS principal; Becky Roth, LBW principal, and Shane Thill, assistant principal, Second Chance High. Curriculum Director Marilyn Forst, received a .5 FTE, $1,050 salary increase.

• In the public commentary segment of the meeting, Mitchell resident Steve Sibson asked the board to consider lowering the district’s special education levy because the district received additional SPED assistance in 2009. The money would help to bolster a weak housing market, said Sibson.

Tags: school board, news, local, longfellow, mti