The Plum School Board is expected to advance two multimillion-dollar projects this month.

The board will vote to approve the next phase of design work for an addition and renovations at O’Block Elementary School and a purchase order agreement for 25 electric buses during its Dec. 17 meeting.

The district is considering paying HDG Architects up to $375,000 for the design development phase for the addition and alterations at O’Block. That cost is after a $10,000 credit for work the firm previously did for the district.

Paying the fee would be the first use of $10 million the district recently borrowed, district Business Manager Ryan Manzer told the school board.

The district plans to borrow an additional $20 million over the next two years, for a total of $30 million, to pay for work at O’Block and the district’s middle school.

HDG’s first estimate of the total cost of the work at both schools is about $39.6 million. Most of the cost, $26.95 million, is for work at O’Block.

The district could borrow more but has set a self-imposed limit of $30 million, board President Angela Anderson said.

School Director Michelle Stepnick said she wants the firm to come back with a project no higher than $30 million. She said she would never vote to approve any of the exterior flourishes shown on preliminary renderings.

O’Block is moving forward first because the work there is more complex than that contemplated for the middle school, Assistant Superintendent Ashley Boyers said. Some work, such as windows and doors, is expected to start next summer at the middle school, with more work in the summer of 2026, he said.

The design development phase would advance the design of the project in greater detail and update the probable cost, according to HDG’s proposal to the district.

Some parts of the phase cannot be finalized until the district hires a construction manager, according to HDG’s proposal. The district is expected to make that hire in February.

If approved by the board in December, HDG says the design team could begin work immediately. The design development phase would end in early April with a presentation to the school board in mid-April.

Electric buses

The proposed purchase order for 25 electric buses with Highland Electric Fleets would be for up to $10.675 million — reflecting a cost of up to $427,000 per bus, according to the district’s purchase authorization form.

The district received a $5 million federal grant — $200,000 per bus — to replace diesel buses with electric ones. Approving the purchase order will obligate the funds, which the district is required to do, Manzer said.

If not approved, the district would lose the funds, Boyers said.

“We need to fulfill the terms of that grant,” Manzer said. “To obtain the rebate, you have to initiate the orders. We have a period of time to be able to implement the infrastructure and take delivery of the buses.”

The district will be able to cancel the purchase authorization and any contract by Feb. 28 if the infrastructure to charge the buses is not available, is not fiscally viable or is not physically available at its garage. They also can be canceled if the federal funding to pay part of the bus cost is no longer available.

District officials have been evaluating electric buses from a number of manufacturers.

While the $427,000-per-bus cost used on the authorization form is for the most expensive electric bus, the district has not settled on a model or vendor, Anderson said.

The district is using a “not-to-exceed figure” of $10.675 million in making its final decision, Manzer said. It will allow Highland Electric Fleets to initiate purchase orders, with the cost adjusted down to the actual cost, he said.

The district is negotiating a transportation equipment services agreement with Highland that will be brought to the board for approval, Manzer said. It will determine the role the company has in the district.

The district previously anticipated the buses to cost about $9.6 million, with other costs pushing the total to about $12.8 million.

The additional costs include upgrading electric lines to the district’s garage on Greensburg Road, resurfacing the parking lot and adding charging stations.

As of October, the district said, about 78% of the total cost was covered by grants, tax credits and expected cost savings. Officials have said they will seek more grants to cover as close to the total cost as possible.

Board member Ron Sakolsky said he is concerned about asking taxpayers to pay for the buses.

Right now, the district is at about a 50-50 split of the total project cost between grant and local funding, Manzer said.

“Normally when we purchase a bus, we’re at 100% (local funding). We normally don’t receive any (grant) funding for buying a diesel bus,” he said. “When you layer in projected cost savings … the cost split is about 76% grant funded to 24% locally funded.

“You’re always going to bear a cost for buying a school bus,” he said. “This is an incredibly good deal for the district. Essentially, right off the top, they’re half off.”

In the service agreement with Highland, the district will be able to choose between an upfront cost or a monthly cost over 10 years, Manzer said.

“That is a part of the pending agreement that we will enter into with Highland Electric Fleets,” he said. “We will not enter in that agreement if it is not financially viable. It must be financially viable for the district or we will exercise the cancel rights that we have in this agreement.”