REFERENDUM DISCUSSION February 8, 2016file/Referendum...Board of Education presentation of projects and costs for input and comment January, 2016 Revisions to scope and costs based

REFERENDUM DISCUSSION

February 8, 2016

Why Do We Need A Referendum?● In 2014, HVRSD conducted a facilities needs assessment to determine the current state

of our facilities. Over $60 Million dollars of projects were identified.

• The cost and number of identified projects exceeds what can be accomplished in an

annual budget. (e.g. We have over $6 million dollars of roofs that need to be replaced.)

• Opportunity for up to 40% debt service aid from the state.

• In addition to need maintenance items, the projects will improve the safety, security

and access at Central High School and other buildings.

• Indoor air quality at CHS and TMS and other locations make learning difficult.

The Proposed Projects• Roofs

• HVAC

• Life/Safety/ADA Access: Fire Alarms/Intercoms/CHS

Entrance

• Building Envelope: Windows/Doors/Brick

• Renovation: CHS Entrance and Office Reconfiguration

• Renovation: CHS Kitchen/Cafeteria

• CHS Lighting/Ceiling Tile Replacements

• Addition: CHS Arts and Wellness Space

• Renovation: Playgrounds/Restrooms/Media Center

Project Costs● Roofs $6,006,200*

● Building envelope $1,308,300*

● Life-safety PA/Clocks & Fire Alarms $3,300,200*

● HVAC Improvements $8,165,600*

● CHS Lighting/Ceiling $2,089,400*

● CHS Kitchen/Cafeteria $3,579,300*

● CHS Front Entrance and Office $3,550,750*

● CHS Arts and Wellness Space $4,916,600

● Restrooms/Media Centers/Playgrounds $2,981,650*

Project Total: $ 35,898,000

*Eligible for 40% State aid

The Projects By Funding Costs

Total Project Cost $35,898,000

Projects eligible for 40% ($4,916,600 not eligible) $30,981,400

Eligible projects cost after State aid $18,588,840

CHS Arts and Wellness space + $4,916,600

Estimated Final Cost to the Taxpayer: $23,505,440

Sample Debt Impact - Will Change As We Move Through The Process

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2030 2035 2045

Existing Debt $4.8m $4.8m $4.6m $4.7m $4.7m $3.7m $3.7m

Hopewell Borough $100 $100 $94 $98 $98 $76 $76

Hopewell Township $100 $100 $96 $100 $100 $77 $77

Pennington Borough $100 $100 $96 $100 $100 $77 $77

Referendum Debt $0.9m $0.7m $0.8m $1.6m $1.5m $1.9m $1.9m $1.9m $1.7m $1.5m $1.0m

Hopewell Borough $19 $15 $16 $32 $32 $39 $40 $40 $35 $31 $21

Hopewell Township $19 $15 $16 $32 $32 $40 $41 $40 $36 $31 $22

Pennington Borough $19 $15 $16 $43 $32 $40 $40 $40 $36 $31 $21

Total Debt $4.8m $4.8m $5.5m $5.4m $5.5m $5.3m $5.2m $1.9m $1.9m $1.9m $1.7m $1.5m $1.0m

Hopewell Borough $100 $100 $113 $113 $114 $108 $108 $39 $40 $40 $35 $31 $21

Hopewell Township $100 $100 $115 $115 $116 $110 $109 $40 $41 $40 $36 $31 $22

Pennington Borough $100 $100 $115 $115 $116 $109 $109 $40 $40 $40 $36 $31 $21

All $ amounts per $100k of assessed value

A Note About Project Costs...● All costs are architect estimates.

● Looked at as individual projects; as the board determines how projects are grouped

we can achieve economies of scale.

● Estimated costs are determined using accepted estimate rates.

● All projects are subject to lowest bid contractors.

● School projects must pay “prevailing wage”.

● Monies from projects that come in under budget can either be used to: Increase the scope of

the project (e.g. upgrade materials or increase A/C units) or returned to the taxpayer

Safety, Security and Accesses● CHS entrance provides

○ ADA compliance

○ Locking vestibule

○ Controlled public entrance

○ Minimized exposure of ill students

● Fire and Intercom system improvements in all schools

○ Emergency announcements from every classroom and remote locations via cell phone

○ Text messaging and automated phone messages can be sent as soon as incidents occur

Front Entrance Renovation

CHS Arts And Wellness Space● Black Box Theater

● Provides for a dedicated teaching space for the Theatre Arts Program. ○ The Black Box can be used for rehearsals, freeing up the PAC for other tasks.

● This teaching space may also be used for dance rehearsals and recitals, public speaking and debates.

● Gallery Spaces

● Natural Light and Ventilation Improvements in the Existing Art room

● Wellness Space● Addresses equity concerns for male and female athletic program gymnasium access.● Provides space for the increased offerings of our physical education classes during the year.

Often 60+ students in the same gym, grades 9-12, increasing the possibility of injury. Adaptive phys. ed. students can be educated in a dedicated space.

● Addresses hygiene concerns by allowing the wrestling mats to be moved from Aux cafeteria and placed in a dedicated space.

CHS Rear RenovationPerforming Arts

Black Box / Dance Room

(can be joined to create one

large space)

Wellness w/ full court

basketball and volleyball

Toilet Rooms- indoor/

outdoor access

Roof - Project Costs

● CHS (200, 300 and 400 areas) $ 2,703,200*

● HW (existing flat roofs) $ 1,186,950*

● TG (Main building roof, downspouts and gutters) $ 363,962*

● TMS (Cafe and 6th grade wing) $ 1,752,135*

Total Roof Projects: $ 6,006,200*


**New roof space becomes “Solar Eligible”, meaning spaces can be fitted for solar panels through either

a Power Performance Agreement (PPA) and/or Solar For All (SFA) at no cost to the tax payer and

potential revenue to the District.

● CHS HVAC and electrical upgrades $5,443,600*○ 200 and 300 hall classrooms

● TG HVAC and electrical upgrades $649,440*○ Gym and chiller replacement

● TMS HVAC and electrical upgrades $2,072,550*○ Cafeteria and classrooms with window units or no AC

Total HVAC Projects: $8,165,600*


HVAC Improvements - Project Costs

Life/Safety Projects - CostsHW Fire Alarm System $369,000*

TG Fire Alarm System $123,000*

TMS Fire Alarm System $731,850*

BT, HW, SB, TG intercom system integration and replacement of clocks and speakers $1,123,729*

TMS intercom system integration and replacement of clocks and speakers $418,200*

CHS Intercom System Integration and replacement of clocks and speakers $534,440*

Total Life Safety Cost: $3,300,200*


Building Envelope - Project Costs

CHS breezeway door replacement $ 63,000*

HW brick repair / pointing $ 183,933*

HW/TG window replacement $1,061,367* **

Total Building Envelope Costs: $1,308,300*


** Expected reduction in utility costs

CHS Lighting/Ceiling Upgrades

Brightness in classrooms and hallways is below current standards

Updated light fixtures in classroom, hallways and exterior $1,589,400* ** ***

Occupancy Sensors in every classroom

Ceiling tile replacements (grid stays in place)

$5 sq/ft x 100,000 sq/ft (Total CHS = 215k sq/ft) $500,000*

Total Lighting/Ceiling Upgrades $2,089,400*

* Eligible for 40% State aid

** Expected 15% reduction in annual lighting cost. (Annual cost approx. $37,000 = $5,500)

***Smart Start and other incentives of $15 or $25 per fixture depending on size for 500-700 fixtures

Playground/Restroom/Media Center Projects

● Playground upgrades @ TG and BT $246,000*● Restroom upgrades @ TG, HE, BT, TMS, CHS (20 total) $1,996,650*● Media Center upgrades at all schools $739,000*

Total for Renovation Projects: $2,981,650*

*Eligible for 40% State funding

What is included in the Project Support costs?

● Construction contingency

● Architect, engineers and consultant fees

● Construction administration - Project oversite using a “clerk of the works” model

● Bonding and legal fees

● Inspections and utility fees

● Application, submission and permit fees

*All covered by 40% Debt Service Aid

Who Are Our Architects?

Fraytak Veisz Hopkins Duthie (FVHD) is a medium sized architectural firm specializing in K-12 public

school design located in nearby Ewing Township.

FVHD Partner George R. Duthie (Principal in Charge) is very familiar with our facilities and provides a high

level of personal service to our district.

FVHD Quick Facts:

Year Founded 1918

Current number of school district clients 50+

Number of referenda past 10 years 30+

Number of school projects past 10 years 600+

Number of employees 27

Number of Principals 3

Tentative Timeline (dates subject to change)

Board of Education presentation of projects and costs for input and comment January, 2016

Revisions to scope and costs based upon Board/Community input 01/29/16 - 02/22/16

Board approval of final scope of work, questions and referendum costs for NJDOE submission 02/22/16

Referendum Publicity - Get Out the Vote March - September

FVHD final prep work for NJDOE submission 03/25/16

Submit to NJDOE and Hopewell Twp. Planning Board 03/01/16 - 03/25/16

NJDOE review period 03/28/16 - 06/30/16

Tentative Timeline (Continued)

NJDOE issuance of PEC letters June 30, 2016

Attorney preparation of ballot question(s) July 5, 2016

Upon receipt of PEC letters - Board accepts costs and approves final form of question July 11, 2016

Board approves final scope of work, questions and referendum costs for NJDOE submission July 27, 2016

NJDOE issuance of Final Eligible Cost (FEC) letters no later than July 30, 2016

Final costs and statement to County Clerk September 9, 2016

CONDUCT REFERENDUM September 27, 2016

Why now?Fiscally, there are several reasons why now is the right time:

First, the State will pay 40% of allowable costs associated with the proposed improvements to our buildings

and grounds.

Second, interest rates remain historically low, although recent moves by the Federal Reserve indicate we will

see increases moving forward.

Third, the District currently has outstanding long-term debt of $24M requiring an annual payment of $4.9M

that will be retired by August 2021. As the old debt is retired, the new, lower debt will replace it keeping the

debt portion of the tax levy stable (at a decreased level) after the initial impact.

Fourth, construction costs are projected to increase over the next two years. Raw materials and commodities

are fairly stable or decreasing.

Fifth, the Future Planning Committee helped establish priorities.

What happens without a Referendum?

● The vast majority of these projects need to be completed, regardless of a referendum,

over the next 3-5 years.

● Without a referendum, all improvements must be done without financial support from

the State – Projects will be paid through the district budget costing the taxpayer more.

● The Department of Education will only support the projects with Debt Service Aid if

the project is approved by the voters.

● Delaying these projects will cause further damage and create an unsafe environment

for our students.

Adding these projects to the existing budget?

Project Cost Budget Year 1 Budget Year 2 Budget Year 3 Budget Year 4 Budget Year 5

Roofs $ 6,006,200 1,201,240 1,201,240 1,201,240 1,201,240 1,201,240

Building envelope $ 1,308,300 261,660 261,660 261,660 261,660 261,660

Life-safety PA/Clocks & Fire Alarms $ 3,300,200 660,040 660,040 660,040 660,040 660,040

HVAC Improvements $ 8,165,600 1,633,120 1,633,120 1,633,120 1,633,120 1,633,120

CHS Lighting/Ceiling $ 2,089,400 417,880 417,880 417,880 417,880 417,880

CHS Kitchen Cafeteria $ 3,579,300 715,860 715,860 715,860 715,860 715,860

CHS Front Entrance and Office $ 3,550,750 710,150 710,150 710,150 710,150 710,150

CHS Arts and Wellness Space $ 4,916,600 983,320 983,320 983,320 983,320 983,320

Restrooms, Media Centers and Playgrounds $ 2,981,650 596,330 596,330 596,330 596,330 596,330

Cost to complete projects in the budget: $ 7,179,600 $ 7,179,600 $ 7,179,600 $ 7,179,600 $ 7,179,600

Consider these:

• Projects will not receive 40% Debt Service Aid

• Year one alone will increase the budget 9% over last year – Exceeds the 2% budget cap

• To accomplish within the existing budget, we would need to reduce in other areas - $7m = Over 25% of staff

• Would require a second question every year over cap

• Does not account for increases in costs

How does this impact our annual capital expenses

portion of the budget?

● We anticipate capital expenditures of the budget will be reduced for 2 years,

helping to mitigate the increase in debt.

● The need for major projects is eliminated for the near future - barring a

catastrophic occurrence.

● Paving parking lots needs to be addressed at some point.

● Technology infrastructure needs will still exist.

Roofing and Rehabilitation Projects Summer 2017

Event Start Date Completion Date

Completion of construction documents 10/10/16 2/23/17

Bidding and Award 2/23/17 3/30/17

Procurement and preparation work 4/16/17 6/26/17

Construction 6/26/17 8/31/17

Roofing and Rehabilitation Projects Summer 2018




Procurement and preparation work 3/5/18 6/24/18


Tentative Construction Timeline

Addition/Renovation Projects Summer 2017 - Summer 2018



Plan review, agency approvals, final NJDOE educational review 3/30/17 5/9/17


Mobilization date, install temporary measures, traffic flow

changes, isolate work areas

7/17/17 8/31/17


Tentative Construction Timeline (Cont.)

REFERENDUM DISCUSSION February 8, 2016file/Referendum...Board of Education presentation of projects and costs for input and comment January, 2016 Revisions to scope and costs based

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