KYLE MURPHYStaff Writer

As the construction at Jack T. Farrar Elementary School nears completion, the Tullahoma City Schools Board of Education approved a second amendment to the project’s budget, bumping it up to over $21 million.

At the May 22 meeting, Finance Director Hank Jordan presented the item to amend the guaranteed maximum price (GMP) budget for the project from $19,040,155.46 to $21,935,033. When the project was first approved back in January 2024, the GMP budget was set for $18,097,370, where the budget was based on estimates as the school district had yet to receive bids from four trades: HVAC, general trades, casework/millwork and building concrete. After receiving the four bids, including two exceeding their estimated costs and additional electrical work needed, Jordan would request and get approval to amend the GMP budget to $19,040,155.46, an increase of $942,785.46, to the project in June 2024.

Nearly a year later, Jordan would again go to the school board to make a second amendment to the budget, but this time it was for remodeling the old building into the Early Childhood Education Center.

“At that time, TCS declined two additional add-ons: installing a sprinkler system in the existing art, music and gym areas of the old building, and adding a fire alarm system to the old building,” Jordan said at the May meeting. “As discussions and planning progressed to remodel the old building into the Early Childhood Education Center, it became clear this additional work would be necessary to meet code requirements.”

Per Jordan, the installation of the sprinkler system also necessitated the replacement of ceiling titles. In addition, the lighting system in the large pod area would need to be replaced for zone control and improved functionality. He said to complete the work, American Constructors presented the change order in the amount of $2,894,877.22, which included a 10% contingency. This would amend the GMP budget to $21,935,033, if approved by the school board.

“The work would begin immediately, with the focus being to complete the area that will house K-5^th students before the beginning of the next school year,” Jordan said. “The work on the portion of the building that will become the Early Childhood Center will begin soon after and is expected to be completed by December 2025.”

Jordan told the board that part of the increase was due to the steel support needed in the cafeteria area.

“When (American Constructors) got in and started working on the kitchen they realized that there needed to be some additional work,” Jordan said.

He added that the updated cost was still lower than the $2,971,000 cost estimate they saw a few weeks prior to the meeting.

After his presentation, Director of Schools Dr. Catherine Stephens informed the board that funds for the additional cost would be coming from reserves. In a joint study session with the Board of Mayor and Aldermen, Jordan informed the board by the end of the last fiscal year, the school district’s reserves were at $10.3 million. It was during the study session that Stephens told the board that they would need to pull from their reserves for the project, where at the time they were expecting to pull over three and a half million dollars.

“Reserves, as you know, is supposed to be a one-time hit,” Stephens said to BOMA. “It’s not supposed to be something you access in a recurring manner.”

When opened for discussion, Chairman Kim Uselton said the board members have discussed the matter numerous times and were aware of the cost increase. She added the increase was more than they previously discussed, but still less than what they thought it was going to be.

With no further discussion, the school board voted 5-0 to approve to amend the GMP budget for the Jack T. Farrar project to $21,935,033. Board members Teresa Lawson and Andy Whitt were absent from the meeting.