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Board approves Crescent City contingency change; members ask staff to review sales-tax and labor charges
Summary
Trustees approved a contingency change request for the Crescent City PK6 construction package that includes added labor to install exterior blue LED strobe lights; board members asked staff to investigate whether sales tax was charged appropriately and whether any credits are due.
The Putnam County School Board approved a contingency change request (G4) for the Crescent City PK6 construction package that included installation of blue exterior emergency strobe lights, while asking staff to investigate the invoice’s labor lines and sales-tax treatment.
Why it mattered: The change adds safety features to the new building but raised questions from trustees about a large labor line item and why both materials and labor were taxed, producing roughly $3,100 in sales tax on the $47,000 invoice.
Bill Elliott, senior project manager on the Crescent City project, told the board the blue strobe lights were added after the original scope as a safety feature and that installing them required retrofitting conduit and wiring in completed phases. “It’s very labor intensive…we’re already past the phase where we normally do that,” Elliott said, explaining why labor costs were higher than expected.
Board member Miss Wagner questioned the tax calculation because the invoice appeared to apply 7% tax to both materials (about $10,000) and nearly $38,000 in labor. Project staff said they would pursue explanations and possible credits. “He did…assure us that he would go back through, take a look at it, and recoup any sales tax that were owed,” a district staff member said regarding follow-up with the subcontractor.
Contractor representation at the meeting noted that some construction labor can be taxable under Florida law if the labor produces materials on-site, and that answers can be context-dependent. The board approved the contingency change with the understanding staff will seek any tax credits due and confirm the final settlement reflects any adjustments.
Action: Motion to approve contingency change request package number 1 for Crescent City PK6 (Ajax) passed unanimously with the caveat that staff will investigate and, if appropriate, recoup sales tax and pricing adjustments.
What’s next: Facilities staff and project managers will follow up with the subcontractor/installer and the district’s project engineer to review the invoice detail and recover any improperly charged taxes or identify cost reductions.
