Board to trim building project
CONNELLSVILLE – As the Connellsville Area School Board takes action this evening to potentially trim the $35.2 million estimate for the general contracting work proposed to be done at the senior high school, the directors have yet to decide how the district will pay for the project. Bids received last week for the renovation and new construction at the nearly 40-year-old building exceeded the $61 million estimated cost provided by the district architectural firm and the expectations of many of the board members, who were anticipating a much lower bottom-line figure.
Board President Kevin Lape told Crabtree, Rohrbaugh and Associates senior project manager Jeff Straub at the board’s work session Monday that the directors were disappointed with the more than $65 million price tag.
“We are not happy with the numbers,” said Lape after Straub reviewed the bids with the board. “We have to decide what to do.”
The board has 60 days to either accept or reject the bids offered by the contractors.
Despite the re-bidding of the general contracting work, the board will likely have sufficient time to make a decision within the two-month time frame, according to Straub.
Lape speculated Monday that the board could opt to reject all the bids and solicit new cost proposals or halt the project due to the expense.
Should the project proceed, the district has yet to decide how it will be funded and how any loans will be repaid.
Last year, the board secured a $30 million general obligation bond to fund a portion of the work. The district has tapped the funding by more the $1.25 million to pay for expenses tied to the recent renovation of the Connellsville Area Career and Technical Center.
At Monday’ meeting, Boenning & Scattergood managing director John P. McShane advised the directors that should the district decide to move forward with the project at the current cost, the overall impact to the local budget would be 2.4 mills, up by 0.2 mills, because of the added costs.
He recommended that the district secure a Build America Bond that is available until the end of the year. The bond, said McShane, would save the district about $100,000 a year because there is no need to purchase bond insurance.
McShane urged the board to take action before September to avoid higher interest rates.
“It is typically a flat market during the summer months, but it will begin to fluctuate in September,” he said, noting the current interest rate is about 4 percent.
Earlier, McShane had recommended the board raise its property tax rate by 0.5 mills each of the next four years to meet loan obligations.
After reducing the 2010-2011 budget by $500,000 or 0.5 mills, the board maintained the current tax rate.
There have been public discussions about closing certain elementary schools to further reduce district expenses and although the board has solicited public input as to what buildings should be closed, it has yet to take official action to do so.
The board has voted to move the freshman class now at the two junior high schools to the high school when construction is completed.
Directors Jon Detwiler and P.J. Carte have publicly supported the closure of Dunbar Township and Zachariah Connell elementary schools to cut costs, while Director Francis Mongell has proposed that South Side, Dunbar Borough, Connellsville Township and C.N. Pritts be shuttered.
Director Jim Fabian said he favors the scaling back of the high school project in conjunction with building closures, but has not identified which ones he would sell or demolish.
Dr. David Goodin, superintendent, said that the board must initiate several actions to afford the high school project and future renovations, including the increase of revenues, school closures and staff reductions.
“We can not address the district’s future needs by simply raising revenues as we do not have that capacity,” he said. “It must also be done with cutting expenditures.”
The administration has proposed Zachariah Connell, South Side and Dunbar Borough elementary schools be closed to reduce yearly operational costs and avoid needed renovations at the buildings.
The board will meet in regular session at 7 p.m. today in the high school cafeteria.