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Dallas County News
WCV agrees to proceed with Facilities Cost Management Group
By: Amber Williams
08/14/2008
Updated 08/22/2008 12:06:04 AM CDT
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The WCV Board of Directors address financing and budget issues with financial specialist Merle Rambo. Pictured from left to right, board president Harry Light, superintendent Dr. Dave Arnold, and directors Carey Gilman and Jeff Baker, who have been the most vocal about concerns.
The WCV Board of Directors address financing and budget issues with financial specialist Merle Rambo. Pictured from left to right, board president Harry Light, superintendent Dr. Dave Arnold, and directors Carey Gilman and Jeff Baker, who have been the most vocal about concerns.
      Despite several concerns and accusations surrounding financial specialist Merle Rambo, a reluctant West Central Valley Board of Directors mutually agreed to continue contract negotiations with Facilities Cost Management Group, LLC, the Omaha-based firm hired by the district to facilitate a tax management plan for $16.95 million in bonded projects.
      In recent weeks, board members and WCV superintendent Dr. Dave Arnold have accused Rambo of needlessly swelling the scope of the projects in order to make more money for himself and his firm. In fact, the entire project was recently delayed in order for the board to discuss those concerns in closed session with the district's attorneys.
      "He does not communicate with the board. He does his own thing," Arnold said in a later interview. "He increases the square footage to make more money for himself. We can't afford it, and we don't need it. It's our building; it's our contract. He's working for us."
      However, Rambo insists his motive is only to work for the school district, especially its voters, by educating the board of all available financing options and getting the district the most for its money. He said the decision ultimately lies with the board, but he urges them to use blended financing options, such as partnering with the city, which is projected to save the district $80,300 a year.
      With counsel present for both sides, Tuesday, Aug. 12, the board and Rambo hashed out specific issues to be covered in the newly drafted contract between the school district and FCMG.
      "We want to clarify our requirements before we enter into a contract," Arnold said. "A short list of specifics - which are not optional - was given to Merle Rambo from our attorneys."
      The top item on the list commands Rambo to keep the entire budget within the bonded $16.95 million. All parties agreed the Stuart Elementary building is the area where cutbacks would be most effective.
      "We need an adequate elementary with a good, sound building, but we don't need a fancy one - and, for that matter, we don't need a fancy high school either," director Carey Gilman said. "We need to just do the minimum to get by and have a good building, so we can afford to do the maximum at the high school. How much remodeling is really necessary on a 40-year-old building to make it an adequate elementary? We need to tone it down a bit."
      Much of the budget concerns mounted in recent weeks with Rambo's unofficial liaise with the City of Stuart to possibly partner with the school for mutual projects, such as a public library and community wellness center on school sites. However, such proposals are merely "alternates," and are up to the discretion of the school board.
      It was a consensus among the board not to pursue alternates in the project requiring a monetary partnership with the city. In the preliminary contract, the board directs Rambo to keep the potential city library as a "separate entity" from the Elementary School project, forcing the City of Stuart to develop its own separate contract for the project if the city so chooses.
      "The scope of the project needs to fall within our budget," director Marty Doud said. "Afterward, a partnership with the city might happen, but not before."
      To further free the district from being at the mercy of the city for infrastructure work, the board agreed to scrap the original plan to have the elementary addition built westward, across North Main Street. Instead, the addition would be built in a similar design to the current west wing slated for demolition yet this summer. However, Rambo warned the school would be trading the infrastructure expenses of the original plan for added site development costs of the alternative.
      Other specifics mentioned in the contract included the contingency fund, which currently sits at about $149,000 in the project budget. Several board members feel that is not enough to cover possible change orders that may arise during construction. However, Rambo reminded the board that eliminating alternates from the project frees extra dollars to be added to the contingency fund.
      "As long as the board has control of the scope, it has control of the contingency fund," Rambo said.
      Rambo immediately agreed to the specific terms set before his firm, and expressed an urgent desire to continue moving forward on the projects for a new high school and remodeled elementary in Stuart.
      "Our intention is to work with the board; not to take a step back," Rambo urged. "You're within less than 10 days for bidding on-site prep work. We can do it, if we work as a team."
      Rambo went on to discuss a handful of ways the district could cut project costs, such as by adjusting the size of the visitor's locker rooms in the new high school building, considering different options for a high school drive or doubling the production stage as an additional music room.
      After hearing the board's concerns, Rambo concluded the project will need to be scaled back by about three percent, which is expected to increase the longer the board waits to finalize budget plans.
      In the end, director Jeff Baker moved to direct attorney Danielle Hindfield, of Ahler's Law Firm, to continue working with FCMG counsel regarding the specifics of the contract, which will be brought back for the board's review and possible approval Monday, Aug. 18, during a special workshop meeting.

West wing demolition
      In the meantime, the district students head back to school Aug. 21, and demolition to the current high school's west wing has yet to begin. Workers are on site, and the building has been gutted, but Arnold said they are taking extra care to ensure no damage occurs to the existing, usable walls that will remain.
      Demolition will be underway despite classroom operations. The west wing will be fenced off, and students and staff are expected to be cautious when maneuvering around campus. Arnold does not believe the demolition will have adverse affects on student parking or bus loading or unloading.
      "We'll play it by ear," he said. "If there is an issue, we'll just move the busses over to the other side of the street. It's no big deal."


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