State Tech getting new health sciences building

This rendering shows the health sciences building to be built on State Technical College's campus, just east of Linn. The Board of Regents on Friday accepted a $3,590,200 contract with Verslues Construction of Jefferson City for the project.
This rendering shows the health sciences building to be built on State Technical College's campus, just east of Linn. The Board of Regents on Friday accepted a $3,590,200 contract with Verslues Construction of Jefferson City for the project.

LINN, Mo. -- State Technical College soon will begin building a new Allied Health Sciences Center.

During a 40-minute conference call Friday afternoon, the school's Board of Regents approved a $3,590,200 contract with Verslues Construction of Jefferson City for the project and authorized school officials to negotiate the final terms of a $5.1 million, tax-exempt financing plan to pay for it.

Verslues had the lowest bid among nine submitted.

"Given the strong economy, we were a little concerned going into it, but we had a good bid day," President Shawn Strong told the board. "We're happy with the numbers we got."

The original estimate had been higher, Strong reported, and officials had been concerned there wouldn't be enough money available for new furniture, fixtures, equipment and other items.

The base bids ranged from Verslues' low $3.236 million to a high of $4.2 million submitted by Bales Construction.

The difference means the project can include a number of alternates, including putting finishes on the planned concrete floors and getting new equipment and furniture rather than moving old items from the current classroom space.

Strong said they also plan to "add a canopy to the front of the building, that kind of emulates what a hospital would look like and will allow us to simulate unloading a patient and that type of thing."

Board President John Klebba noted Verslues is a Mid-Missouri company that has done other State Tech projects, and "we've been happy with the outcomes and the quality of their work."

The 21,000-square-foot building will be on the east side of State Tech's 360-acre campus just east of Linn and will house classroom, lab, and office space for four programs: Dental Assisting Technology, Medical Radiologic Technology, Physical Therapist Assistant and Practical Nursing Technology.

Paying for the building is a little more complicated, the board determined.

School administrators asked eight banks for financing proposals on $5.1 million, which includes some money that could "be used in case there were additional expenses for the Health Sciences Center," Chief Financial Officer Jenny Jacobs reported, "or we could use that money for other educational facility renovations or improvements on campus. We would be obligated to spend that money within three years."

Four banks responded, she said, and UMB submitted the best proposal in terms of interest rates.

The regents approved four recommendations tied to the construction financing, that the board:

Accept UMB's terms, and work with the bank to complete the tax-exempt financing.

President, Klebba, "negotiate with and retain" Gilmore & Bell as bond counsel for the financing.

Authorize the tax exempt financing through MOHEFA - the Missouri Health and Educational Facilities Authority.

Its mission is providing access to the capital markets, "in an effort to lower the cost of health and educational services in Missouri, by providing high quality, readily available, low-cost financing alternatives for Missouri nonprofit health and educational institutions."

Authorize Klebba to approve and execute the final bond documents, after the school wins MOHEFA's approval.

Finally, facing continued withholding of state funds from the 2016-17 state budget and expecting a cut to its core funding in the 2017-18 budget lawmakers now are considering, State Tech's regents on Friday authorized an increase in tuition and fees for classes starting this fall.

A state law - the Higher Education Student Funding Act - limits colleges and universities to increase the costs to students, Jacobs reminded the board.

The state Higher Education department calculates the permitted increase for each school, based on the schools' average tuition and changes in the Consumer Price Index from December of one year to the next December.

The regents in January approved an increase of $1.50 per credit hour for the rest of this school year, but Jacobs reported, "We did not implement that increase in the current spring semester."

The new calculation for the 2017-18 school year allows a $4.75 per-credit-hour increase in the fall - for a total of $6.25 per-credit-hour since January.

The board approved the change.

Klebba said: "No one likes increasing tuition. No one likes increasing fees.

"Somehow, some way we've got bills to pay, and we have to figure out how we're going to generate revenue in order to do so."

He pointed to increases in health insurance and utility costs as two strong factors driving budget increases.

Strong told the regents: "In a perfect world, we'd upgrade tuition further - but I don't know that we can do that to our students.

"I think a 2.1 percent increase in tuition is extremely fair for next fall."