A new $14.9 million Panola College Energy Technology building received a unanimous nod of approval by the college’s board of directors on Jan. 17.
The board approved setting $12,339,142 as the maximum guaranteed price for construction and related expenses. In addition to construction expense related to get the facility ready to be occupied, an estimated $2.57 million is expected to be spent for furnishings and specialized equipment, according to David Zatopek, project representative from Corgan Architects.
That brings the total project cost to $14.9 million, he said.
David Zatopek, representative of Corgan Architects, told the board so far development cost for the project stand at $504,840. That expense includes professional services, survey, platting, geo-technical investigation and related expenses, he said.
“As the project advances we will have another just over $2 million in development cost, and the vast majority of that is related to the specialized equipment that is needed for the laboratories and shops,” Zatopek said. That will include equipment like hydraulics, welding equipment and much more, he said.
“Some of that equipment will be coordinated directly with construction,” he said. “A lot of it will be installed by the college as you start to move in.”
He outlined details of the project, which includes a student gathering area, classroom and lab areas,
“For this particular project most of the learning happens in the technical labs,” Zatopek said.
Clint Harris, with contractor Jacobe Brothers, said construction should get underway late this month.
“This GMP (guaranteed maximum price) is based on construction duration of approximately 18 months,” he said. Construction is scheduled to begin the week of Jan. 30.
“That would put us at a substantial completion date of Aug. 1, 2024 and a final completion date of September 2024,” Harris said. Officials have already been in contact with local building officials, with a City of Carthage building permit expected to be issued soon.
Harris said supply chain issues with getting needed equipment and supplies, which arose during the height of the COVID pandemic, are continuing to impact the construction industry in both timeline and expense.
“We continue to see those effects on construction for both cost and procurement of materials. they are quite a challenge,” For example, he said the delivery time for a critical element in the college’s energy building project is nearly a year.
“We still are facing the issue of getting the electrical panels here. That procurement duration now is 50 weeks,” Harris said. “That is part of what’s driving the duration of the project to 18 months. We initially thought it would be quicker than that, but with that critical element of the project being so late, that pushes it out, and also drives up the cost.”
College President Greg Powell said School of Energy Chairman Daniel Hall said the college could expect as much as a tripling of enrollment in the department’s programs once the Panola College Energy Technology Center is open and operational with new state-of-the art equipment in place for students to work with.
“It will be approximately 32,000 square feet indoors with a 25,000 square-foot working yard, Powell said. “Inside the building will be a welding lab and engines and compression lab, along with shops and classrooms for commercial wiring, electrical and motor control, instrumentation, hydraulics and mechanical, and HVAC.”
Powell recommended the board approve the GMP for the building. On a motion by Kevin Smith and a second by Richard Thomas, the board approved the maximum price.
The board also approved authorizing Powell to enter into contracts with Jacobe Brothers Constructio. That vote came up on a motion by Bobby Phillips and a second by Fatha Burchette.
Other Items
In other business, Alan Howard, vice president of fiscal services, said the overall cash balance at the end of November was up by $5.6 million compared to the prior year.
“Overall, the revenue and expenses were within budget at the end of November,” Howard said.
For the college’s quarterly investment report for the first quarter of 2022-2023, Howard said $3.036 million in unrestricted funds invested in low interest certificates of deposit and other investments, earning an average of 0.3 percent, were reinvested in U.S. treasury bills that earn 4.56 percent.
Gloss