November 1, 2013 at 4:31 p.m.
Nicolet College LRC project team recommends referendum for remodeling project
Nicolet College LRC project team recommends referendum for remodeling project
That figure is significant because it means the college is likely headed toward a voter referendum for the LRC remodeling. But that's not all. It also has officials looking at expanding the scope of the project by about $1.6 million and eliminates the primary issue that has held up the project in recent months.
That issue was Nicolet board trustee Dave Hintz's questioning of state statutes governing when a referendum is required for a technical college building project.
When Nicolet administration brought the $4.5 million LRC remodeling to board trustees in August it was presented as three $1.5 million projects and thus three different bond issuances to finance the work - upgrading HVAC and electrical systems, interior improvements related to code issues and exterior improvements. Under state statutes, the maximum amount a technical college can borrow per building project without going to referendum is $1.5 million. The proposal was similar to recent Nicolet College remodeling efforts such as the renovation of the University Transfer Center in 2012 which was three $1.5 million projects.
But Hintz said he viewed the LRC remodeling as a single project that should be financed under a $4.5 million bond issuance. Because of that, a referendum would be required.
His fellow board trustees didn't view the matter the same way and said state statutes allow a technical college to take on multiple remodeling efforts at a single time - even in the same building - if they can be considered distinct projects each under the $1.5 million cap. Ultimately, approval of a technical college building project is up to the Wisconsin Technical College System Board which has approved projects structured like the LRC proposals in the past, officials said.
The differing opinions over the state statutes soon extended beyond the Nicolet board and others started weighing in including two state politicians - Rep. Steve Nass (R-Whitewater) and Sen. Tom Tiffany (R-Hazelhurst).
It all led to a September Nicolet board meeting in which board trustees decided to delay action on the LRC remodeling and instead create a collaborative project team that would be charged with recommending how to proceed with the LRC.
Wednesday the project team met for the third time and after reviewing the new construction cost figures prepared by SDS Architects, it didn't take long for the group to finalize the recommendation it will be making to the Nicolet board - an estimated $6.4 million remodeling of the LRC that would require a voter referendum.
"What this means is the recent discussion, argument, wrestling match, whatever you want to call it (over the interpretation of state statutes) no longer exists," said Ron Zimmerman, Nicolet board trustee and chair of the project team. "(The LRC remodeling) isn't on the board for approval anymore. It has to go to referendum based on these cost numbers."
The key is when the remodeling is expected to occur. The project was on track to be completed during the summer of 2014. To meet that timetable, however, the Nicolet board had to sign off on the project at its September meeting. Since the decision was to delay action and create the collaborative project team instead, the remodeling cannot be completed until 2015 at the earliest. That one year makes all the difference. The same three projects costing a total of $4.5 million as proposed to the board in August (and not needing a referendum) are projected to cost $4.8 million in 2015. None of the projects will be under the $1.5 million cap so a referendum is required and the dispute over whether the original proposal had to go to referendum is moot.
Though Hintz's questioning of state statues has resulted in $300,000 being added to the original proposal for the LRC, there is also an opportunity to expand the project. The original proposal addressed only the most critical needs of the 43-year-old LRC. Five additional projects have been discussed during the project team's meetings. The consensus reached Wednesday was that since the three critical LRC projects now have to go to referendum anyway, the entire scope of work in the building should be pursued. That's nearly $1.6 million of additional projects that would include upgrades to the library, classroom space, the auditorium and food service area. In total, the project would cost $6.4 million based on 2015 projections.
"Grouping all the projects together would result in a lot of cost-efficiency," said project team member Mel Davidson. "And I think there's a good chance at coming in below that bottom number ($6.4 million) in the end."
But Davidson said if the Nicolet board ultimately decides to pursue the project team's recommendation and go to referendum on the LRC remodeling, communication will need to be greatly improved from 2006, the last time the college sought voter approval for a project. That referendum was for $23.5 million and the proposal called for construction of a new Health Occupation and Science Center in addition to various remodeling projects. It failed by nearly 6,800 votes.
"It was just laid out there," Davidson said. "There was no communication."
The other members of the team agreed that it is important to tackle all the projects at once for the best cost-efficiency but also to make sure voters understand that.
"I think we have to educate the public about not just the need for this work, but the importance of doing it an efficient way," team member Bob Martini said. "It's important to show that we can do this in an efficient way or string out the projects over several years in an inefficient way."
"I think we move forward with all eight projects," Zimmerman said. "It's the most cost-effective. If it doesn't work with the referendum we can revisit it, but I think we have to go for this opportunity (while construction costs are lower)."
He added that the LRC is a key building on the Rhinelander campus because with the theater, library and food service it is the building most often used by the public.
"This is the building the public sees. I don't know if they see the rest," Zimmerman said. "I've always said first impressions count and this is your first impression of Nicolet College if you haven't been here before."
Nicolet's Director of Accounting and Business Services John Van De Loo said doing the full scope of work in the LRC would cost every taxpayer in the Nicolet district an additional $4.67 a year for a 10-year period on every $100,000 of assessed value. That's according to a conservative estimate of 3.5 percent interest for the project's 10-year loan, he noted.
Despite those figures, many project team members reiterated that the college will have to be strategic in marketing the proposal to the public.
"I say do all eight projects, but my concern is how you present this. It's only another $1.5 million but it's like anything - what's in it for the public and the taxpayers," Bob Egan said.
"I'm all in. This is our college in the Northwoods. This is what we have here. To me I don't see how we can separate the eight projects," said Mary Cole-Laub. "The (additional cost) for taxpayers doesn't even make me blink, but communication will be important."
Jenny Bonardelli said she believes it would be irresponsible not to pursue all eight projects at once and have to bring in a contractor every few years to do work on the LRC.
"We have to sell that, for the cost of a pizza per year, you can reinvest in your community," she said.
In addition to a strong marketing campaign for a referendum, the project team is recommending the Nicolet board create a donation program for the LRC and consider putting multiple referendum questions on the ballot so voters have options to choose from.
The next Nicolet board meeting is scheduled for Nov. 19. No matter what the final decision is regarding the LRC remodeling, Hintz, the person who served as the catalyst for this process, said it's good to see consensus has shifted toward a referendum.
"I'm pleased we're talking about going to referendum and let voters have the final say," he said.
Kyle Rogers may be reached at [email protected].
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