Hoover school board tables arts center construction due to escalating costs

The Hoover school board today tabled consideration of a construction contract for a new fine arts center at Hoover High School after construction costs came in much higher than anticipated, and school officials now will try to negotiate a lower price.

When the school board hired Lathan Associates to design the new theater and Volkert Inc. to serve as program manager in August of last year, the estimated construction cost was $9.7 million and estimated total cost (with design fees) was $10.5 million.

But when construction bids for the 36,000-square-foot facility recently were submitted, they came in at $18.3 million from Taylor and Miree Construction and $17.4 million from Blalock Building Co.

School board member Craig Kelley said he knows costs have been increasing lately but he was surprised when the lowest bid came in almost 80% higher than estimates the board was given a year ago.

Glenn Slater with Volkert said earlier estimates were based on data from other recent similar projects and said his company was caught by surprise as well by the $17.4 million bid. His company had built in some potential cost escalation into its earlier projections, but they never anticipated costs would go this high, he said.

Rick Lathan with Lathan Associates said costs have particularly been escalating with masonry and mechanical jobs and said he believes a lot of that has to do with lesser availability of subcontractors.

School board member Alan Paquette recommended the board allow Superintendent Dee Fowler, his staff, Volkert and Lathan Associates to try to negotiate a lower price with Blalock Building, the low bidder for the project.

In particular, he recommended the professionals try to get Blalock to seek estimates from additional subcontractors in some of those key areas where costs are escalating.

School board President Amy Tosney, the board member who has spearheaded the fine arts center project, said she’s fine with trying to get costs down further, but she’s doesn’t want to see the project get whittled down too far. Seating already has been reduced from 1,200 seats to 945 seats.

“My concern is this is Hoover, and I do not want to do anything that is less than the Hoover standard,” Tosney said.

She also doesn’t want to delay the project with too much renegotiation because school officials only have so long to spend the state bond money they planned to use for the arts center.

Michele McCay, the school system’s chief financial officer, said the state likely won’t allow the bond money to be used on projects unless the projects are about 80% complete by October 2023.

Tosney said she’s tired of waiting to get this project moving. While they may be able to get costs down some, she doesn’t believe they can reduce the cost by $5 million. Paquette said he thinks a $3 million reduction in cost might be possible.

Slater said his team will sit down with Blalock Building Co. and go line by line to see where savings can be found.

McCay said the six-year capital plan recently approved by the board would allow the school system to keep its reserves high enough to cover at least five months’ worth of operating expenses, but if the school board ends up spending $5 million more on a fine arts center at Hoover, some other capital projects may need to be delayed. The board has to determine its priorities, she said.

Kelley said there is indeed a limit on what the school board can spend on the fine arts center. “I’m not sure what that is, but there is a limit,” he said.

Paquette said the fine arts center project has been on the books for a long time.

“My feeling is that Hoover High School, through its excellence in arts, has deserved a first-class building,” he said.

He recently visited Albertville High School and was blown away by their arts facility, he said.

“Let’s use all of our intellectual energy and see if we can find a path forward and not just close down on this,” Paquette said.

The board voted unanimously to allow the superintendent to negotiate with Blalock Building for a reduced price and bring that price back to the board for its consideration.