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DALLASTOWN AREA SCHOOL DISTRICT
700 NEW SCHOOL LANE
DALLASTOWN, PA 17313
PUBLIC HEARING
IN COMPLIANCE WITH
ACT 34
For the Renovations and Additions
Of the
Loganville-Springfield Elementary School
MONDAY, JUNE 11, 2018
7:00 p.m.
LOGANVILLE-SPRINGFIELD ELEMENTARY SCHOOL
CAFETERIA
The material contained in this packet is provided for the
express purpose of informing all citizens
of the District for the Loganville-Springfield Elementary
School. These materials are designed
to explain the entire planning and review process undertaken by
the Dallastown Area School
District Board of Directors in arriving at the proposed
projects.
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Dallastown Area School District
700 New School Lane
Dallastown, PA 17313
BOARD OF SCHOOL DIRECTORS Ronald J. Blevins, President
John E. Hartman, Vice-President Steven C. Bentzel Sue A.
Heistand Michael Jones
William A. Lytle Michael D. Noll, Jr. Anthony J. Pantano
Hilary S. Trout
ADMINISTRATIVE STAFF Dr. Ronald E. Dyer, Ed.D.,
Superintendent
Dr. Joshua Doll, Ed.D., Assistant Superintendent Kurt Rohrbaugh,
Director of Business Operations
Lisa M. Kirby, Executive & Board Secretary; Open Records
Officer Kelly Kessler, Principal, Loganville-Springfield Elementary
School
SOLICITOR Fox Rothschild LLP
Jeffrey T. Sultanik, Esquire Brian Subers, Esquire
David H. Comer, Esquire
BOND UNDERWRITER RBC Capital Markets Kenneth A. Phillips
Lauren E. Stadel
ARCHITECTURAL FIRM RLPS Architects, LLP
Christopher S. Linkey, AIA Andrew R. Blaydon, AIA
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TABLE OF CONTENTS AND AGENDA
Opening Remarks: Dr. Ronald E. Dyer, Ed.D., Superintendent of
Schools Ronald J. Blevins, President, Board of School Directors
Page Section I Legal Documents
Resolution 7 Certificate 10 Exhibit “A” – Notice of Public
Hearing in Accordance with ACT 34 11
Section II Introduction of Project Background Information 15
Options Considered 18
Section III Architectural Design Summary of District Buildings
21 Architectural Narrative 22 Proposed Renderings 23 Proposed Site
Plan 24 Proposed Floor Plan 25 Project Accounting Based on
Estimates 26
Section IV Analysis of Financing Alternatives Analysis of
Financing Alternatives – Direct Cost Study 33 Indirect Project
Costs 37
Questions and Comments from Public
Any and all interested persons attending the hearing will be
given reasonable opportunity to be
heard. Sign-in sheets will be available in the cafeteria of the
Loganville-Springfield Elementary
School at the time of the hearing. The Board of School Directors
will call upon individuals
signing such sign-in sheets in the order in which they appear.
Commentary will be limited to
three (3) minutes per interested person. No person shall be
allowed to speak a second time until
all parties commenting the first time have been heard. The Board
of School Directors will allow
public comment and/or questioning until the conclusion of the
hearing. Residents and employees
of the School District were given the opportunity to submit
written testimony regarding the
Project until 12:00 p.m. on Monday, June 11, 2018. Such written
testimony was required to be
mailed via first-class U.S. Mail or hand-delivered (electronic
mail did not constitute acceptable
delivery) to: Ronald E. Dyer, Ed.D., Superintendent, Dallastown
Area School District, 700 New
School Lane, Dallastown, PA 17313. Following the hearing,
written comments regarding the
Project will also be received by the Superintendent at the
School District’s administrative offices
until 4:00 p.m., Wednesday, July 11, 2018. Such written comments
should be mailed via first-
class U.S. mail or hand-delivered (electronic mail shall not be
acceptable delivery) at the
address noted above.
Adjournment
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SECTION I
LEGAL DOCUMENTS
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DALLASTOWN AREA SCHOOL DISTRICT York County, Pennsylvania
Renovations and Additions to Loganville-Springfield Elementary
School
RESOLUTION NO. 2018-02
WHEREAS, the Board of School Directors of this School District
(''Board of School
Directors") has determined that a renovated elementary school
facility with additions to the
elementary school facility is required for the use of the pupils
of this School District and has
authorized preliminary steps to be taken with regard to this
school project, consisting of
planning, designing, constructing, and furnishing a renovated
Loganville-Springfield Elementary
School and additions to the Loganville-Springfield Elementary
School ("Elementary School
Project"); and
WHEREAS, the Pennsylvania Public School Code of 1949, as amended
(the "School
Code"), including amendments made pursuant to Act 34 of the
Session of 1973 of the General
Assembly (''Act 34"), requires, inter alia, that a public
hearing be held prior to the construction,
the entering into a contract to construct, or the entering into
a contract to lease a new school
building or a substantial addition to an existing school
building; and
WHEREAS, in accordance with the requirements of Act 34 and the
School Code, a
public hearing is required to be held in conjunction with the
Elementary School Project; and
WHEREAS, the School Code requires that a notice of such public
hearing under Act 34
be advertised at least twenty (20) days prior to such hearing
and that certain information be made
available to persons in attendance at such hearing and that
certain financial information be
available for inspection by interested citizens during the
period of such advertisement; and
WHEREAS, the Board of School Directors desires to authorize its
Solicitor,
Superintendent, Director of Business Operations, Architect,
Financial Consultant, and others to
take certain actions with respect to the Elementary School
Project; and
WHEREAS, the School District wishes to take certain action with
respect to the
Elementary School Project and to comply with Act 34 and the
School Code.
NOW, THEREFORE, BE IT RESOLVED, by the Board of School Directors
of the
Dallastown Area School District, York County, Pennsylvania, as
follows:
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I . The School District hereby authorizes a public hearing to be
held in accordance
with and in compliance with the requirements of Act 34 and the
School Code, in the cafeteria of
the Loganville-Springfield Elementary School, I 69 N. Main
Street, York, PA 17403, on Monday,
June 11, 2018, beginning at 7:00 p.m., prevailing time.
2. The Secretary of the Board of School Directors is hereby
authorized and directed
to advertise the Notice of Public Hearing set forth in Exhibit
"A," which is attached hereto and
made a part hereof in accordance with the requirements hereof
and of Act 34 and the School
Code.
3. This School District hereby authorizes the maximum project
cost and maximum
building construction cost for the Elementary School Project as
follows:
Maximum Project Cost
$24,9 l 0,021.00
Maximum Building Construction Cost
$8,395,851.00
4. The Board of School Directors hereby authorizes and directs
that project
descriptions of the Elementary School Project be prepared and
hereby directs the Superintendent
of the School District to make copies of such descriptions of
the Elementary School Project
available to interested citizens requesting the same at the
place and during the reasonable hours
stated in the Notice of Public Hearing, after approval thereof
by the Solicitor of this School
District, and also to make such project descriptions available
to the public media as required by
Act 34, the School Code, and the regulations of the Pennsylvania
Department of Education.
5. This School District hereby authorizes Jeffrey T. Sultanik,
Esquire, and the law
firm of Fox Rothschild LLP, Blue Bell, Pennsylvania, Solicitor
for the School District, to
perform such acts on behalf of this School District as may be
necessary in connection with the
Elementary School Project.
6. This School District hereby authorizes the architectural firm
known as RLPS
Architects, Project Architects for the designated Elementary
School Project, to perform such acts
on behalf of the School District as may be necessary in
connection with the Elementary School
Project.
7. This School District hereby authorizes the firm of RBC
Capital Markets, LLC as
financial consultant, to perform such acts on behalf of the
School District as may be necessary in
conjunction with the Elementary School Project.
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8. This School District further authorizes the engagement of a
court stenographer to
transcribe the Act 34 proceedings, consistent with the intent of
this Resolution.
9. This School District further authorizes its Orficers,
Administration, Solicitor.
Financial Consultant, and Project Architect to take any and all
necessary actions in order to
effectuate the intent and purpose of this Resolution.
DULY ADOPTED, by the Board of School Directors of this School
District. this 17th
day of May, 2018.
Attest � rn. � Lisa M. Kirby� Board Secretary
,
DALLASTOWN /\REA SCHOOL DISTRICT York County, Pennsylvania
By:
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CERTIF ICATE
I, undersigned, Secretary of the Board or School Directors of
the Dallastown Area School District, York County, Pennsylvania (the
··School District"), hereby certify: that the foregoing is a true
and con-ect copy of the Resolution, which was duly adopted by
aflirmative vote or a majority or all members or the Board or
School Directors of the School District duly convened and held
according to law on May 17, 2018 at which meeting a quorum was
present; that said Resolution has been duly recorded in the minutes
of the Board of School Directors of the School District: and that
said Resolution is in full force and effect. without amendment,
alteration. or repeal as or the date of this Certificate.
I further certify that the Board of School Directors of the
School District met the advance notice requirements of the Sunshine
Act, /\ct No. 1998-93 of the General /\ssembly of the Commonwealth
of Pennsylvania, approved October 15, 1998, by advertising said
meeting and posting prominently a notice of said meeting at the
principal office of the School District or at the public building
in which said meeting was held. all in accordance with such
Act.
IN WITNESS WHEREOF, I set my hand and affix the official seal of
the School District. this 17h clay of May, 2018.
(SEAL)
Lisa.Kirby u Board Secretary
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EXHIBIT "A"
BOARD OF SCHOOL DIRECTORS OF THE
DALLASTOWN AREA SCHOOL DISTRICT
NOTICE OF PUBLIC HEARING IN ACCORDANCE WITH ACT 34
Renovations and Additions to Loganville-Springfield Elementary
School
TO: ALL RESIDENTS OF THE DALLASTOWN AREA SCHOOL DISTRICT
Please take notice that a public hearing will be held in the
cafeteria of the LoganvilleSpringfield Elementary School, 169 N.
Main Street, York, PA 17403, on Monday, June 11, 2018, beginning at
7:00 p.m., prevailing time, relating to the planning, designing,
acquiring, construction, and furnishing of a renovated
Loganville-Springfield Elementary School, York County, Pennsylvania
and additions to the Loganville-Springfield Elementary School
(herein "Elementary School Project") in accordance with Act 34 of
the Pennsylvania Legislature.
A description of the Elementary School Project, including the
facts with respect to the educational, physical, administrative,
budgetary, and fiscal matters relating to the Elementary School
Project, and certain other information, will be presented and will
be available for consideration at the public hearing on Monday,
June 11, 2018, and from Monday, May 21, 2018 until the public
hearing during regular business hours of the School District at the
offices of the Superintendent located in the School District's
administrative offices at 700 New School Lane, Dallastown, PA
17313. Regular business hours of the School District's
administrative offices are from 7:30 a.m. to 4:30 p.m. Monday
through Friday until and including June 8, 2018 and from 8:00 a.m.
to 4:00 p.m. Monday through Thursday from Monday, June 11, 2018 to
and including Wednesday, July 11, 2018 or by appointment made by
calling the School District at 717-244-4021.
The Board of School Directors of the School District ("Board")
by Resolution duly adopted has authorized the following:
Maximum Project Cost $24,910,021.00
Maximum Building Construction Cost $8,395,851.00
This public hearing is being held with respect to the Elementary
School Project pursuant to the requirements of the Pennsylvania
Public School Code of 1949, approved March I 0, 1949, as amended
and supplemented, including amendments made pursuant to Act 34 of
the Session of 1973 of the General Assembly.
Residents and employees of the School District may submit
written testimony regarding the Elementary School Project no later
than 12:00 p.m. on Monday, June 11, 2018. Such written testimony
should be mailed via first-class U.S. Mail or hand-delivered
(electronic mail shall not constitute acceptable delivery) to:
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Ronald E. Dyer, Ed.D., Superintendent Dallastown Area School
District 700 New School Lane Dallastown, PA 17313.
The written testimony shall include the name and address of the
person submitting the request, idenli fication of the sender as a
School District resident or employee, and a description of the
support or objection to the Elementary School Project. To be of
most benefit, a statement of objection should be followed by a
viable alternative solution.
Any and all interested persons may further appear at and attend
the public hearing and
will be given reasonable opportunity lo be heard at such public
hearing. Sign-in sheets will be available in the cafeteria of the
Loganville-Springfield Elementary School at the time of the
hearing. The Board will call upon individuals signing such
sign-in sheets in the order in which they appear. Commentary will
be limited to three (3) minutes per interested person. No person
shall be allowed to speak a second time until all parties
commenting the first time have been heard. The Board will allow
public comment and/or questioning until the conclusion of the
hearing.
Written comments regarding the Elementary School Project will
also be received by the Superintendent at the School District·s
administrative offices until 4:00 p.m .. Wednesday, July
11. 2018. Such wrinen comments should be mailed via first-class
U.S. mail or hand-delivered(electronic mail shall not be acceptable
delivery) at the address noted above.
BY THE ORDER OF THE BOARD OF SCHOOL DIRECTORS
DALLASTOWN ARE/\ SCHOOL DISTRICT York County, Pennsylvania
Lisa M. Kirby Secretary of the Board or School
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SECTION II
INTRODUCTION OF PROJECT
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BACKGROUND INFORMATON
Introduction
Beginning in the 2014-15 school year, the Board of School
Directors, Superintendent, senior staff members and the District's
Leadership Team discussed the condition and future needs for the
Loganville-Springfield Elementary School. The discussions were part
of the District's on-going examination and analysis of all
buildings and grounds in the District. The Bond Funds, which are
included in the current tax rate and annual debt service amounts,
were discussed and considered for use in a potential project. The
Board of School Directors evaluated two options, including
upgrading (renovations/additions) or building new on the same site,
that would meet the District's long-range educations and facilities
goals.
Educational Specifications were developed and applied to both
upgrade and new build approaches with a 100,000 square foot
building program. The process included on-site visits, physical
condition analysis, evaluation of the existing school and its
program capacity. The District's educational delivery standards and
other required components of Pennsylvania's Planning and
Construction Workbook (PlanCon) A and B process were reviewed. The
PlanCon requirements are necessary for possible reimbursement of a
percentage of construction costs to the District.
Planning Processes
At its September 2015 Team of 10 Workshop, the Dallastown Board
of School Directors authorized the formation of a
Loganville-Springfield Elementary School Facility Study Committee.
The Superintendent, Dr. Ronald Dyer, and Board Vice President,
Ronald Blevins, led the committee of community representatives,
teachers, administrators, the principal and Loganville-Springfield
parents.
The Committee met eleven (11) times throughout the 2015-16
school year. During initial meetings, the Committee considered
demographic data, current floor plans and site maps (which included
an addition in the 1970's), programmatic usage, deficiencies,
instructional and curricular trends, articles on creative methods
and quality elements in new elementary school design and pre- and
post-visitation perceptions. Members also toured the Intermediate
School.
Establishment of Project Need
At its November 18, 2015 meeting, the Committee created a list
of building 'deficiencies' and weighted those areas receiving
scores of 10 or more which included:
• Proximity of motel (traffic and safety concerns)• Office area
to include office, health suite and conference rooms• Open
classroom design (need defined learning spaces)• Layout and floor
plan• Classrooms (need to increase number)• No maker space
classrooms• Inadequate classroom storage
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• Lack of grade level common areas• Front entrance (safety and
flow)• Technology (need to increase infrastructure)• Playground too
close to parking lot• Age of plumbing• Bathrooms (fixtures need
upgraded)• Windows (need for more natural light, upgraded)• Roof
leaks• Lack of a sprinkler system
During December, 2015 and January, 2016, site visitation
committees were selected to tour recently built or renovated
elementary schools in York County, Lancaster County and Harford
County, MD. Those schools were: Wallace Elementary, Paradise
Elementary, Hambright Elementary, Shrewsbury Elementary, Friendship
Elementary, Clearview Elementary, Baresville Elementary, Yorkshire
Elementary, Valley View Elementary and Ebb Valley Elementary.
Features of these schools – both pro and con – were presented by
each site visitation committee in February.
Also, in February 2016, after a selection process involving
three firms, Site Design Concepts (SDC) were retained to perform a
Site Feasibility Review to consider site features and limitations
for three (3) options: renovation and expansion, demolition of a
portion with re-construction and an expansion, and a new school.
The consultants also considered a playground, playing fields and
traffic/parking flow while examining zoning, utilities and
stormwater management, and presented a report on March 30,
2016.
On March 16, 2016, concurrent with the work of SDC, committee
groups worked through these two (2) activities:
Activity 1: "Major Requirements" to be added or eliminated based
on enlightenment through various building visitations.
Activity 2: "Burning Questions" to build consensus on key issues
surrounding upgrade (renovation/addition) or new building
options.
On April 13, 2016, the Committee then considered the viability
of all three options as stated above.
Concurrent with the aforementioned activity in April, the PA
Legislature enacted legislation that created a Planning and
Construction Workbook (PlanCon) Commission. The purpose of the
Commission would be to study current legislation and PlanCon
processes and, if applicable, to make a recommendation on
streamlining the processes and funding parameters.
The legislation also included a 'moratorium' on any building
projects submitted after May 15, 2016. Given that information, the
L-S Facility Study Committee and Crabtree Rohrbaugh &
Associates Architects collaborated with District administration to
formulate a project recommendation at the May 11, 2016 committee
meeting. It included the state's PlanCon Workbook Parts A and B
requirements for Board consideration and possible action.
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On May 12, 2016, the Board did accept the non-binding
recommendation for "Option 3" (new building). The project, along
with PlanCon A and B components, was then submitted to the
appropriate office at the Pennsylvania Department of Education on
Friday, May 13th, ahead of the deadline. As required by the Board
of School Directors and the state's PlanCon requirements, the
design recommendations were developed in response to a detailed
analysis of the current and projected educational programs, a
comprehensive evaluation of the existing building conditions and a
determination of facilities necessary to support future enrollment
and programs.
2016-17 School Year
On September 16, 2016, Superintendent Dr. Ronald Dyer, Business
Manager Donna Devlin, Executive/Board Secretary Lisa Kirby and CRA
Architect/Director of Design Rick LeBlanc met with James Vogel,
Architectural Consultant for PDE's Division of Budget and School
Facilities to review the District's PlanCon A and B submission and
future PlanCon requirements. There were two (2) key findings:
• The project is site specific (i.e., the building must remain
on the site of the current schoolper the PlanCon A and B
submission).
• Prior to July 1, 2019, the District must first have (a) PDE's
written approval of PlanConPart F, Construction Documents and (b)
subsequent signed construction contracts.
The Facility Study Committee also reconvened on September 28,
2016 for a preliminary view of District finances and possible
limitations before revisiting all three building options. After
review, the Committee re-affirmed that "Option 3" (new building)
would be its strong recommendation. It then formed a sub-committee
to complete a Report and Final Recommendation document which
received full-committee deliberation and approval on October 26,
2016 and was presented at the November 10, 2016 meeting of the
Board of School Directors.
During the winter of 2016-17, the Board of School Directors
collaborated with its bond counsel, Rhoads & Sinon, and bond
underwriter, RBC Capital Markets, in refinancing the current bonds
and issuing the previously authorized remaining bonds. All of this
was accomplished within our current tax rate and annual debt
service amounts.
The Board also authorized the formation of the board-level
Loganville-Springfield E.S. Steering Committee. Members included
Chairman William A. Lytle, Vice President John E. Hartman, Kenneth
A. Potter, Jr., and Steven C. Bentzel who initiated an RFP process
for architectural services. After conducting three (3) rounds of
interviews, it reached its recommendation for RLPS Architects.
2017-18 School Year
On September 7, 2017, the Board approved the Steering
Committee's recommendation and subsequent contract for RLPS
Architects. On December 14, 2017, it created the Building &
Capital Projects Committee (of-the-whole) by consolidating the
efforts of the Steering Committee and the Capital Improvements
Committee. By April 12, 2018 the Board also approved a project
management agreement with Abacus Construction Management, LLC.
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Work also commenced on re-evaluating the previously considered
May 12, 2016 District Wide Feasibility Study Options for either a
renovation/upgrade or new construction. After much consideration
and deliberation, the Board decided to proceed with design
documents for a renovation/upgrade elementary school. This decision
redirected the building project from the May 12, 2016 District Wide
Feasibility Study Option 3: New Construction to the May 12, 2016
District Wide Feasibility Study Option 2: Renovations &
Additions. The project will encompass nearly 90,000 square feet,
will reflect specific educational features related to District
initiatives and future needs, expandability for future program
growth, and newly built structures for music, gymnasium, cafeteria,
kitchen, and administrative, nursing, and guidance functions. The
project will maintain the Planned Enrollment Capacity for the
building as identified in the May 12, 2016 District Wide
Feasibility Study. The community and municipalities have been
engaged during all stages of the project, including recent visits
in mid-March and early April, and a Facility Study Committee update
planned for late May.
Options Considered
The District considered the viability of three options by
looking at major design features, possible sacrifices and
construction challenges. Incorporating these into the District Wide
Feasibility Study from May 16, 2016, the Options are listed as:
Option 1: Renovations & Additions – Some renovation to the
existing facility with a minor addition
Option 2: Renovations & Additions – Extensive renovation and
expansion
Option 3: New Construction – Build a new school The Dallastown
Area School District Board has elected to proceed with Option 2:
Renovations
& Additions.
Option 2: Renovations & Additions was chosen in the best
interests of the Dallastown Area School District for the following
reasons:
• It achieves the Facility Study Committee’s recommendation of
providing a hybrid of renovations (upgrades) and new
construction
• It provides the Administration recommended minimum educational
program
• It meets the Board of School Directors’ budgetary goals
• It optimizes the building location on the existing
Loganville-Springfield Elementary site
• It maximizes the existing Loganville-Springfield Elementary
site for future expansion
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SECTION III
ARCHITECTURAL DESIGN
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SUMMARY OF DISTRICT BUILDINGS (From approved PlanCon Part A)
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ARCHITECTURAL NARRATIVE
The existing Loganville-Springfield Elementary School is a
one-story building, totaling approximately 56,500 SF and located on
an approximately 16.5-acre site. The existing building was
originally constructed in 1952 with an addition in 1970 and
received various system upgrades in 1985 and 2005. As part of this
project, most of the existing building footprint will remain and
will see comprehensive upgrades of all finishes, building systems
and exterior envelope. Improvement of the building's technology
infrastructure will be included in the upgrades and the completed
project will support wireless internet access throughout and
provide data access points for the latest classroom visualization
and 21st Century learning needs. The project will also include
interior alterations in order to provide classroom and support
spaces for existing and expanded educational programs. The interior
alterations of the existing building will include comprehensive
accessibility upgrades and the project will be designed to be
compliant with the accessibility requirements for new construction
per ICC/ANSI A117.1 2009 as well as the 2015 International Building
Code, Chapter 11. Loganville-Springfield Elementary will also
receive a new addition as part of this project. The proposed
building is anticipated to total approximately 90,700 SF of space
to be used for educational functions as well as community
activities. The addition to Loganville-Springfield Elementary will
be located along the north side of the building and will be one
story. The addition's exterior envelope is being designed to meet
the International Energy Conservation Code parameters for
commercial construction. This addition will include several
enlarged and updated spaces which will enhance the day to day
educational program of the building. Several of these spaces are
also being designed with community activities in mind. This will
reinforce the desire for the completed project to provide
Dallastown Area School District and their residents with an anchor
Elementary school for the community located within the southern
portion of the District. Loganville-Springfield Elementary School
will be designed to be more secure. Measures to provide enhanced
security for students, staff and visitors include, but are not
limited to, controlled building access points, a secure entrance
vestibule adjacent to the new administration suite and
cross-corridor doors separating community functions from the
classroom areas of the building.
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PROPOSED RENDERINGS
Main Entrance
Classroom Exterior
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The proposed site plan has been omitted for security
reasons.
A printed copy of the site plan will be available for public
review during the ACT 34 Hearing and at
the Dallastown Area School District Offices during normal hours
of operation.
PROPOSED SITE PLAN
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PROPOSED FLOOR PLAN
The proposed floor plan has been omitted for security
reasons.
A printed copy of the floor plan will be available for public
review during the ACT 34 Hearing and at
the Dallastown Area School District Offices during normal hours
of operation.
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PROJECT ACCOUNTING BASED ON ESTIMATES
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SECTION IV
ANALYSIS OF
FINANCING ALTERNATIVES
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DALLASTOWN AREA SCHOOL DISTRICT
ANALYSIS OF FINANCING ALTERNATIVES – DIRECT COST STUDY
We have analyzed several alternative methods of financing the
renovations and additions to the Loganville-Springfield Elementary
School (the "Project"). We have also estimated the direct costs of
financing, all as required by Department of Education regulations
issued November 4, 1978. Analysis of Alternatives The alternatives
of financing which we examined are: 1. Cash or a short-term loan 2.
A local general obligation bond issue 3. A local authority issue 4.
State Public School Building Authority (SPSBA) Analysis of the
School District's recent financial statements and of the financing
projections in connection with this Project indicated that a
short-term bank loan was not feasible. We also analyzed the
remaining alternatives which would require the School District to
incur long-term debt. For each alternative we estimated a bond
issue and average annual debt service. Financing costs for each
were slightly different due to the nature of the issue structure
and entity issuing the debt. These costs are presented on the
attached Table I. Based on these estimates, at this time the least
costly alternative for financing the capital projects is through
the use of a General Obligation Note Issue. This alternative also
offers the School District the advantage of increased flexibility
and control over the construction of the project, structure of the
Note Issue, lower interest rates through the general obligation
issue, investment of Note Proceeds and more favorable refunding
provisions. The School District anticipates funding the Project
with funds available from the Series of 2017 General Obligation
Note Issue, whose purpose was to fund new capital projects, provide
capitalized interest and refund the 2016 District Bonds. The total
size of the 2017 Note was $66,010,000 with approximately
$30,000,000 allocated for several future capital projects.
STATE REIMBURSEMENT
The State reimburses a School District for a portion of the
principal and interest which the School District pays each year on
its bonds. The amount of the reimbursement is determined by two
factors—the percentage of the Project determined by the Department
of Education to be reimbursable and the School District's Market
Value Aid or CARF ratio. Current estimates by the Architect
indicate that the Project will have a net effective reimbursement
of approximately 3.41% for the 2017 General Obligation Note after
taking into consideration the School District's 2017/18 Market
Value Aid Ratio of 51.40%. Therefore, for each dollar paid by the
School District toward principal and interest, the state will
reimburse the School District approximately 3.41 cents for the
Project. There can be no assurances that the State will pay
reimbursement to
the District. The financial analysis for this Act 34 Hearing
assumes no reimbursement and
the debt is 100% local effort.
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TABLE I
Dallastown Area School District
Comparison of Various Methods of Financing
Loganville-Springfield Elementary School
General Local Costs Obligation Authority SPSBA Costs of
Construction: Loganville-Springfield (1) $22,614,786 $22,614,786
$22,614,786 Financing Costs: (2) Bond Discount $190,925 $203,500
$202,750 Legal Fees 23,397 38,500 37,000 Capitalized Interest
2,066,000 2,100,000 2,100,000 Printing & Miscellaneous 3,074
6,500 6,250 Rating & CUSIP 10,106 15,200 15,200 Compliance/PDE
Filing 1,240 3,500 3,500 Paying Agent 493 2,000 2,000 Total
Requirements $24,910,021 $24,983,986 $24,981,486 Less: Interest
Earned (3) $452,981 $452,981 $452,981 Original Issue Premium
2,637,040 2,636,005 2,638,505 Size of Bond Issue(s) $21,820,000
$21,895,000(4) $21,890,000(5) (1) Includes total Project Costs for
Project appearing on PLANCON D-02, Line F;
Contingency Fund Allowances and funds for Project Management
occurring on PLANCON D-03, Line G-9.
(2) Financing Costs are estimates based upon recent averages and
fees realized from bond
issues sold in the municipal market. (3) Interest earnings on
construction funds being available from investments based upon
approximate payout schedule and possible use for millage
phase-in. (4) A local authority would have annual administrative
expenses, which have not been
included in these calculations and also higher rates due to
revenue bond issue. (5) SPSBA average annual payment is calculated
assuming higher interest rates for a general
obligation bond issue as compared to rates for a revenue bond
issue.
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Debt Service and Millage Impact
Table IIA and IIB is a summary of the debt service and
approximate millage impact anticipated by the completion of the
Project. The School District is funding the Project with a portion
of the funds available from the Series of 2017 General Obligation
Note issue. It is anticipated that the required funds for the
School District's share of debt service requirements will be
derived from using capitalized interest and School District
reserves in the early years of the Project and, in later years,
using existing debt related mills currently in the budget which
become available as previous bond issues are retired. Based on
careful budgeting
and preparation, the District anticipates ZERO new mills
required for the funding of future
capital projects from proceeds of the Series 2017 Note.
Based upon an estimated current value of 1 collected mill being
$2,830,212 and remaining constant, a summary millage impact and
debt service analysis is shown below on Table IIA. The supporting
bond amortization schedule for the Project funded from a portion of
the proceeds from the 2017 Note is also shown as an attachment on
Table IIB.
Table IIA
Net Debt Service Total Mills Average Annual After State Mills
Required Required for Direct Debt Service (1) Reimbursement (2) for
Direct Debt and Indirect Costs $1,914,865 $1,914,865 0.677 Mills
0.701 Mills 0.677 Mills (3) 0.701 Mills (3)(4)
1. Table IIB illustrates the Project portion of debt from the
Series 2017 Note. (The Project will require 33.06% of the total
$66,010,000 Series of 2017 Note issue).
2. Assumes a zero project reimbursement for the Note.
3. Amount of mills already in the District budget for the
Project.
4. The breakdown of Indirect Costs follows the discussion on the
Direct Costs.
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INDIRECT COSTS FOR THE
LOGANVILLE-SPRINGFIELD ELEMENTARY SCHOOL
The costs below reflect the anticipated increases related to the
proposed addition of the Loganville-Springfield Elementary School.
The personnel that currently resides in the building will continue
to be housed in the upgraded school. All costs are based on
utilization of the facility beginning approximately January
2021.
Personnel
The following is a list of the proposed new staff that would be
required: Personnel Additions Projected Category Required Cost
Custodial staff 1 Total Estimated Salary Cost $25,056 Estimated
Cost of Fringe Benefits $27,825
ESTIMATED COST OF SALARY & BENEFITS: $52,881
Purchase of Materials and Supplies
The need for textbooks, materials and supplies is related to the
number of students. As the student population grows, the School
District's needs in this area will also increase.
Cost of Fuel and Utilities
The estimated additional cost includes fuel, oil, electricity,
water and sewage usage because of the addition to the existing
building.
ESTIMATED ADDITIONAL COSTS: $14,000
Building Operation and Maintenance The need for general building
maintenance is related to the number of students and staff and the
age of the building. As the student population grows, the School
District's needs in this area will also increase.
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Transportation
It is estimated that no additional buses will be needed to
transport students to and from school each day based on the student
capacity that the building will have.
Insurance
Additional property and equipment protection insurance will be
required for the new building. Liability coverage is based
primarily on number of student population, so as the number of
students increases, the liability insurance cost will also
increase.
ESTIMATED ADDITIONAL COSTS: $2,000
Summary of Indirect Costs
Estimated Cost Increases $68,881 Estimated Value of One Mill
(2018-19) $2,830,212
TOTAL INDIRECT COST IN MILL EQUIVALENTS .024 MILLS