PUBLIC HEARING NEW K-6 ELEMENTARY & MIDDLE SCHOOL

SENECA VALLEY SCHOOL DISTRICT

PUBLIC HEARING on the proposed

NEW K-6 ELEMENTARY & MIDDLE SCHOOL

at the Seneca Valley Intermediate High School

Auditorium, 126 Seneca School Rd, Harmony, PA 16037

on November 4, 2019, 6:00 PM

ACT 34 PUBLIC HEARING New K-6 Elementary & Middle School

TABLE OF CONTENTS

Page Number

1. AGENDA 1

2. INTRODUCTION 2

3. PROJECT NEED 3

4. OPTIONS CONSIDERED 4

4. PROJECT DESCRIPTION 5-8

5. SUMMARY OF OWNED BUILDINGS AND LAND (A09) 9

5. PROPOSED SITE PLAN 10

6. E1.1 EXISTING FLOOR PLAN 11

7. PROPOSED FLOOR PLAN 12

8. PROJECT ACCOUNTING BASED ON ESTIMATES (D-02, 03) 13-14

9. DETAILED COSTS (D-04) 15

10. ACT 34 MAXIMUM BUILDING CONSTRUCTION COST (D-20) 16

11. ANALYSIS OF FINANCING ALTERNATIVES & INDIRECT COSTS 17-20

12. BOARD RESOLUTION OF MAXIMUM PROJECT COST AND BUILDING COSTS

21

13. ACT 34 HEARING - ADVERTISEMENT 22


AGENDA

1. CALL TO ORDER / INTRODUCTION Matt Hoffman Tucker Arensberg, P.C.

Solicitor for Seneca Valley School District

2. PROJECT DESCRIPTION Mr. Michael Corb, AIA CannonDesign Principal in Charge

3. FINANCIAL ANALYSIS Mrs. Alisha R Henry PNC Capital Markets, LLC Managing Director

4. PUBLIC COMMENT

A. Pre-registered speakers / comments B. Comments from attendees

5. ADJOURNMENT

1


INTRODUCTION

The School Board of the Seneca Valley School District is providing this opportunity to inform the public as to the Seneca Valley School District’s consideration to build a new K-6 Elementary & Middle school on Ehrman Road in Cranberry Township, Pennsylvania.

The project is in response to a review of the existing Evans City Elementary and Middle School’s physical facility and academic & technical program needs for the school population.

This public hearing is being held in accordance with Act 34 of 1973 of the Commonwealth of Pennsylvania. The purpose is to have the school administration, architect and financial advisors present a proposal for the construction of the new facility.

The specific purposes for this hearing are as follows:

1. Establish the need for the project by reviewing events leading to the Seneca Valley School Board’s consideration to initiate the building project.

2. Review the various options considered by the Seneca Valley School District prior to the decision to proceed with the current project proposal.

3. Describe the type of building to be constructed and the educational programs that serve as the basis for the project under consideration.

4. Present the estimated construction cost, the total project cost, indirect costs and the financial needs and estimate of the local tax impact of the project.

5. Provide citizens and residents an opportunity to offer comments and written testimony concerning the project.

Please feel free to participate during the comment period at the latter part of the presentation. An official transcript of the hearing is being recorded in order for the Seneca Valley School Board to consider and study your constructive comments, insights and observations.

2


PROJECT NEED

The Seneca Valley School District (SVSD) desires to undertake a new building project to replace the existing Evans City Elementary and Middle School in order to improve academic and technical program functions as identified in the district wide feasibility study. The current building’s existing conditions are hindering the district’s desire to provide specific program types. Further, the existing building’s capacity, spatial limitations, and the overall physical condition of the building justify the need for a building replacement. The majority of the existing school has not been modernized since its last renovation in 1989. New construction is needed as the most responsive long-term solution to meeting planned curricular and program needs for district students while allowing the building and site to adapt and grow if needed over time. These issues support the need for a new replacement building. The current school building, located in Evans City, Butler County, has existed on this site for 80 years. The original building was constructed in 1939 with additions and renovations in 1946, 1959, 1964, and 1989 as documented by the PA Department of Education. Currently, the building houses approximately 45 classrooms, library, art rooms, gymnasium, general music and band rooms, and two cafeterias. In addition to the existing classrooms there is inadequate educational support space within the existing building including special education, small group instruction, faculty preparation and proper strings music. There is limited designation for bus, visitor, faculty, parent and pedestrian circulation and parking. Due to site constraints that require both cars and busses to utilize the same internal and external streets, a safety hazard exists that needs to be addressed for the safety of students and staff. Through the findings of the feasibility study, the exterior envelope and all building mechanical, electrical and plumbing systems were found to be beyond their useful life and in need of repair or replacement. These include a roof that is at the end of its life expectancy and has limited roof insulation and adequate slope for drainage; windows and door systems that are not thermally efficient and are at the end of their life expectancy and required exterior masonry repointing and replacement. Interior finishes are dated and beyond their life expectancy. While the staff has maintained the building well, it has been 80 years since the building was originally constructed. If a major renovation was to be pursued, hazardous materials such as asbestos, lead based paint, etc. would need to be identified and remediated. It is believed that any such materials present within the existing building pose no current threat to students or faculty. The engineering systems (mechanical, plumbing and electrical), many of which are past their life expectancy, are in need of repair and replacement. Existing building system deficiencies include the following: electrical capacity, energy efficiency, lighting, emergency lighting, fire alarm, communications air quality / ventilation, heating, air conditioning, plumbing and handicapped accessibility. The above noted factors indicate that the existing building is currently being used beyond its maximum capabilities and will be unable to accommodate the services required by both the students and the community moving forward.

3


OPTIONS CONSIDERED

As part of district facility planning, the Seneca Valley School District completed a District-Wide Feasibility Study (DWFS) in October 2015 which was a comprehensive planning and assessment study of all district owned buildings. As part of the DWFS, Seneca Valley considered six (6) planning options for Evans City Elementary and Middle School. They were as follows:

• Option 1 – Minimal renovations to the existing building and site. • Option 2 – Extensive interior and exterior renovation with new building additions. • Option 3 – Construct a new K-6 building on the existing K-6 building site. Under this option, the

existing structure would be demolished after the new construction is complete. • Option 4 – Construct a new K-6 elementary school on a new site owned by the school district,

Ehrman Road. • Option 4A - Construct a new 5-6 elementary school on a new site owned by the school district,

Ehrman Road. • Option 4B - Construct a new K-4 elementary school on a new site owned by the school district,

Ehrman Road.

As a result of the feasibility study, Seneca Valley identified the existing Evans City Elementary and Middle School as the building in most need of attention within the district. As a result, the district moved forward with architect selection to address the needs presented by the Evans City Elementary and Middle School building. Upon award of the project, the architect, CannonDesign, conducted a site assessment of both the existing Evans City & Middle School building and site, as well as the District owned Ehrman Road property. The goal of the study was to provide an objective analysis of both sites to conclude which would be most appropriate to support existing and future needs of the District and Evans City Elementary and Middle School population. The site assessment focused on specific assessment categories including Enabling of the Vision, Community Sentiment, Outdoor Opportunities, Physical Capacity, Building Design Requirements, Security, Sustainable Site Potential, Site Accessibility, Vehicular Circulation and Parking, Site Investigation, Approvals, Site Preparation, and Construction Logistics/ Impacts. Each category was scored from poor to good. The results of this analysis indicated the Ehrman Road site presented more opportunities and fewer limitations than the existing Evans City site. Opportunities the Ehrman site offered over the existing Evans City site were:

• Larger site size allows for separate bus and car drop-off. • Larger site size allows for vehicle queuing and stacking on site vs. on borough streets as is the

case on the Evans City property. • Larger site size allows for future building expansion, if needed. • Larger site size allows for additional play fields. • Larger site size allows for more cost effective storm water management strategies. • Naturalized areas for outdoor learning opportunities. • Safety and security – Renovation or new construction on the Evans City property would require

students to be on site or in the building during construction activities. • The Ehrman property avoids phased construction while the Evans City property requires it. • Construction new on the Ehrman Property allows for an ‘ideal’ building design without limitations

imposed by an existing structure. • A new building on the Evans City property would require a three story building whose plan would

be partly dictated by the existing building. Given the opportunities above and the Ehrman Road property’s ability to best support the District’s goals for the project, a new building on the Ehrman Property (DWFS Option 4) was deemed the most appropriate option.

4


PROJECT DESCRIPTION

SITE – Ehrman Road, Cranberry Township, Butler County, PA.

Site Size: Approximately 46 Acres Current Site Usage: Undeveloped Topography: Moderate topography on the site. Wetlands: Small wetland areas have been identified on the site. Available Utilities: Electricity, Gas, Water, Sewer Site Access: Adequate Access across from the existing Foxmoor Estates Development. Community Use: The new school will accommodate community activities during non-school hours. This will be consistent with the exiting building’s community use. Parking: Parking on the existing site is insufficient requiring visitor parking on surrounding Borough streets. The new site will accommodate 300 total visitor and staff parking spaces. Staff and visitor lots will be separated. Existing Conditions Adjacent Site Affecting Health and Safety: None. Notable adjacencies are the Cook Brick brick yard and Interstate 79. Bus & Automobile Drop Off / Pick Up Areas: Separate parent/visitor and bus drop-off loops are planned for the new site. Loading and Receiving Area: Will occur at the north side of the new building. School Play Areas: Separate grassed and hardscaped play areas will be provided for grades 1 – 4 (elementary school) and grades 5-6 (middle school). A third separate play area will be provided for Kindergarten immediately adjacent to the Kindergarten classroom area. BUILDING Program: New construction elementary and middle school

Total Square Footage: 197,085 GSF

Building Structure: Two story steel framed structure with limited areas of concrete masonry bearing walls.

5


The new construction of the New K-6 Elementary & Middle School will serve Kindergarten through 6th grades. The building has been programmed with a variety of stakeholder groups including district educational staff, district and school administrators, parents, students and community groups to accommodate current educational programs while incorporating flexibility for the building to evolve educationally over its lifespan. Classrooms and collaboration areas are designed for flexibility.

Each grade level (K-6) is organized into a learning community. Grades K-4 each consist of seven (7) classrooms surrounding a common group collaboration area for a total of thirty-five (35) classrooms and five (5) collaboration spaces. Grades 5 and 6 each consist of twelve (12) classrooms surrounding common group collaboration areas for a total of twenty-four (24) classrooms and six (6) collaboration spaces. There will be a total of fifty-nine (59) classrooms. Each learning community also has small group instruction and other learning support spaces such as OT/PT, speech, gifted, faculty support, storage and restroom facilities directly adjacent to the classrooms to facilitate quick movement between education and activities to increase educational instruction time. Public spaces being built include dedicated cafeteria serving and seating areas (one for elementary school and one for middle school), gymnasium, stage, movement studio, art, music, chorus, strings and media / CIRC).

Security is a primary focus for the project, which will include a secured entry vestibule that only allows access to the building directly through the building’s administration offices once school is in progress. Glazing in these areas is scheduled to be impact resistant. Each zone of the building will be isolated from the remainder of the building with security doors that are magnetically held open, but also allow sectors of the building to be utilized after hours for community use. Security cameras, door hardware, electronic key hardware will also be incorporated into the project and discussed with district staff and emergency services personnel.

The building will have mechanical, electrical and plumbing throughout the building as described in the following building system pages. Building finishes include painted gypsum board walls throughout, luxury vinyl tile flooring, acoustic ceilings, white boards and tack boards, and casework (cabinetry) designed to meet district standards for elementary education.

The new building will be fully ADA compliant for accessibility. All spaces will meet PDE recommended sizes. The building is being designed with sustainability and energy efficiency in mind. This includes an increased efficiency of the thermal envelope of the building, reduction in energy and water use, daylighting of classrooms and primary educational spaces, lighting controls for daylight harvesting, energy efficient LED light fixtures, improved indoor air quality levels, acoustic performance, dedicated recycling stations, solar photovoltaic panels, limited green roof area and water efficient landscaping design. Green energy strategies are planned as teaching tools.

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Building Systems:

• Separate domestic water, fire water, sanitary, and storm water service. • New gas service for domestic water and building heating systems. • A new fire protection sprinkler system. • New domestic water distribution system. • New sanitary waste system. • Energy efficient gas-fired boilers. • New direct digital DDC HVAC control system. • New water source heat pump HVAC system with evaporative cooler supplemented with the new

boiler system. • New air distribution system. • A new metered electrical service will be installed utilizing a new pad-mounted transformer.

Underground trenching and raceway system will be installed to accommodate the electrical utility requirements. The service voltage will be 208/120V, 3 Phase, 4 Wire. The pad mounted transformer will supply a switchboard sized to handle the building.

• Panelboards supplied from the switchboard will be installed throughout the building and will be strategically located to accommodate building load requirements.

• Receptacles will be provided throughout the building as required. • The lighting system shall meet the current International Energy Conservation Code as required and

designed to accommodate building space requirements. • All lighting will be illuminated using LEDs. • Classrooms, Offices, and the Corridors will be primarily illuminated using recess-mounted LED

lighting fixtures with lenses. • All rooms will be equipped with a vacancy-sensing device to provide automatic shut-off where

permitted as well as daylight harvesting sensors. • Storage and Utility Rooms will be illuminated by surface or chain mounted lighting fixtures. • Library, Gymnasium and the Front Vestibule area shall be illuminated using pendant mounted

fixtures. • Stage lighting and sound system will be provided for the stage as directed by the school district. • Egress lighting will be provided to meet the requirements of the IBC Building Code. • Exit lights shall be internally illuminated LED type with directional arrows. • Four button low voltage switches will be provided in each classroom to control the front and back of

the room independently. Generally, the row of lights nearest to the whiteboard shall be switched separately. Day lighting controls shall be incorporated where deemed necessary.

• Parking areas will be illuminated using LED wall and/or pole mounted lighting fixtures. No bollard lighting fixtures shall be used.

• Site lighting shall be controlled through a lighting control panel with a manual override switch, contactors, time control, and a photocell. Light fixtures shall be provided over each exterior door to provide normal light controlled by a lighting control panel ‘on’ and programmable time clock ‘off’. The fixture shall also include an emergency light connected to the building generator.

• Light fixtures shall also be provided around the perimeter of the building to provide general illuminations. Building lighting shall be controlled by a lighting control panel ‘on’ and programmable time clock ‘off’.

• Emergency power shall be provided by a gas fired emergency generator. • Data wiring closets to accommodate building requirements will be installed. • An underground conduit and manhole system will be installed between the building and the

roadway from where system services will be supplied.

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• An addressable and voice-type fire alarm system capable of meeting current code standards will

be installed. • Rescue assistance systems will be installed in the building as required. • A master clock and intercom program/paging system will be installed. • Classrooms and cafeteria areas will be provided with local sound reinforcing for voice and audio-

visual sound reinforcement. Assisted listening systems will be provided for cafeteria and stage areas.

• A CATV system to accommodate building requirements will be installed. This building will be designed under the following code requirements: PA Uniform Construction Code, IBC, ADA, L&I

8

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SUMMARY OF OWNED BUILDINGS AND LANDDistrict/CTC: Project Name: Grades:Seneca Valley School District New K - 6 Elementary & Middle School K - 6

PRESENT PLANNED#1 #2 #3 #4 #5 #6 #7 #8 #9 #10 #11

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Connoquenessing Valley Elementary School 1958, 1991, 2003 19.75 K-4 654 Maintain 19.8 K-4 654 XXXXXXXX XXXXXXXXEvans City Elementary & Middle School 1939, 1946, 1959,

1964, 198920 K-6 1,002 Vacate and New

Construction146 K-6 1,400

XXXXXXXX XXXXXXXXHaine Elementary & Middle School 1968, 1985, 1990,

199625.68 K-6 1,329 Maintain 25.7 K-6 1,329

XXXXXXXX XXXXXXXXRowan Elemenary School 1951, 1958, 1990 16.05 K-4 498 Maintain 16.1 K-4 498 XXXXXXXX XXXXXXXXRyan Gloyer Middle School 1972, 2002, 2007 129.7 7-8 1,426 Maintain 130 7-8 1,426 XXXXXXXX XXXXXXXXSV Intermediate High School 1964, 1991, 1996,

2003129.7 9 1,592 Maintain 130 9-10 1,592

XXXXXXXX XXXXXXXXSV Senior High School 1994, 2002, 2007 129.7 10-12 1,609 Maintain 130 11-12 1,609 XXXXXXXX XXXXXXXX

Subtotal XXXXXXXXX XXX XXXX 8,110 XXXXXXXXXXXXXXXXXXXXXX XXX XXXX 8,508 8,508XXXXXXXX XXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXX XXXXXXXX

Subtotal XXXXXXXXX XXX XXXX XXXXXXXXXXXXXXXXXXXXXX XXX XXXXXXXXXXXX XXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXX XXXXXXXX

Subtotal XXXXXXXXX XXX XXXX XXXXXXXXXXXXXXXXXXXXXX XXX XXXXXXXXXXXX XXXXXXXX

DAO-Central Administration Office 1993 N/A N/A N/A Maintain N/A N/A N/A XXXXXXXX XXXXXXXXNextier Stadium N/A N/A N/A Maintain N/A N/A N/A XXXXXXXX XXXXXXXX

XXXXXXXX XXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXX XXXXXXXX

Subtotal XXXXXXXXX XXX XXXX XXXXXXXXXXXXXXXXXXXXXX XXX XXXXTOTAL XXXXXXXXX XXX XXXX 8,110 XXXXXXXXXXXXXXXXXXXXXX XXX XXXX 8,508 8,508

ACTIONS TO BE TAKEN IN THE FUTURE IF PROJECTIONS COME TRUE

AND THE SCHOOL DISTRICT EXPERIENCES EXCESS OR INSUFFICIENT CAPACITY (FTE MINUS PROJECTED ENROLLMENT (Col. 11) > + or - 300)

CHECK IF APPLICABLE:

X EXPAND PROGRAMS OR COURSE OFFERINGS

X PROVIDE SPACE FOR USE BY COMMUNITY GROUPS OR SERVICE AGENCIES

X OFFER FULL-TIME KINDERGARTEN OR PRE-SCHOOL

X REDUCE CLASS SIZE

CLOSE SCHOOL(S)

OTHER (DESCRIBE):

REVISED JULY 1, 2010 FORM EXPIRES 6-30-12 PLANCON-A09

New K-6 Elementary & Middle School (Evans City Elementary and Middle School Replacement) Seneca Valley School District Ehrman Road, Cranberry Township, Butler County, PA

Overall Proposed Site Plan

10


Overall Proposed First Floor Plan

11


Overall Proposed Second Floor Plan

12

13

PROJECT ACCOUNTING BASED ON ESTIMATES (1 of 2)District/CTC: Project Name: Project #:

Seneca Valley New K-6 Elementary & Middle School 5755ROUND FIGURES TO NEAREST DOLLAR

PROJECT COSTS NEW EXISTING TOTAL

A. STRUCTURE COSTS (include site development)

1. General (Report costs for sanitary sewage disposal on line E-1.) 41,118,717 41,118,7172. Heating and Ventilating 9,555,348 9,555,3483. Plumbing (Report costs for sanitary sewage disposal on line E-1.) 4,442,021 4,442,0214. Electrical 8,109,886 8,109,8865. Asbestos Abatement (D04, line C-3) X X X X X X

6. Building Purchase Amount X X X X X X7. Other * (Exclude test borings and site survey)

a. Building & Site Construction Contingency 1,264,519 1,264,519

b.

c.

d.

e. PlanCon-D-Add't Costs, Total

A-1 to A-7 - Subtotal 64,490,490 64,490,4908. Construction Insurance

a. Owner Controlled Insurance Program on 1,343,590 1,343,590 Structure Costs (Exclude asbestos abatement, building purchase and other structure costs not covered by the program)

b. Builder's Risk Insurance (if not included in primes 47,985 47,985c. Construction Insurance - Total 1,391,575 1,391,575

9. TOTAL-Structure Costs (A-1 to A-7-Subtotal plus A-8-c) 65,882,065 65,882,065

B. ARCHITECT'S FEE

1. Architect's/Engineer's Fee on Structure 3,795,815 3,795,8152. EPA-Certified Project Designer's X X X X X X

Fee on Asbestos Abatement X X X X X X

3. TOTAL - Architect's Fee 3,795,815 3,795,815

C. MOVABLE FIXTURES AND EQUIPMENT

1. Movable Fixtures and Equipment 5,000,000 5,000,0002. Architect's Fee

3. TOTAL - Movable Fixtures & Equipment 5,000,000 5,000,000

D. STRUCTURE COSTS, ARCHITECT'S FEE,MOVABLE FIXTURES & EQUIPMENT - 74,677,880 74,677,880TOTAL (A-9 plus B-3 and C-3)

E. SITE COSTS1. Sanitary Sewage Disposal2. Sanitary Sewage Disposal Tap-In Fee and/or

Capacity Charges 163,512 163,5123. Owner Controlled Insurance Program/Builder's Risk

Insurance on Sanitary Sewage Disposal4. Architect's/Engineer's Fee for

Sanitary Sewage Disposal

5. Site Acquisition Costs X X X X X Xa. Gross Amount Due from Settlement Statement X X X X X X

or Estimated Just Compensation X X X X X X

b. Real Estate Appraisal Fees X X X X X X

c. Other Related Site Acquisition Costs X X X X X X

d. Site Acquisition Costs - Total X X X X X X

6. TOTAL - Site Costs 163,512 163,512F. STRUCTURE COSTS, ARCHITECT'S FEE,

MOVABLE FIXTURES & EQUIPMENT, AND 74,841,392 74,841,392SITE COSTS - TOTAL (D plus E-6)

* Type "No Fee" beside each item for which no design fee is charged.

REVISED JULY 1, 2010 FORM EXPIRES 6-30-12 PLANCON-D02

14

PROJECT ACCOUNTING BASED ON ESTIMATES (2 of 2)District/CTC: Project Name: Project #:

Seneca Valley New K-6 Elementary & Middle School 5755ROUND FIGURES TO NEAREST DOLLAR

PROJECT COSTS (CONT.) TOTAL

G. ADDITIONAL CONSTRUCTION-RELATED COSTS

1. Project Supervision (inc. Asbestos Abatement Project Supervision)

2. Construction Manager Fee and Related Costs 650,0003. Total Demolition of Entire Existing Structures and Related Asbestos Removal

to Prepare Project Site for Construction of New School Building and RelatedAHERA Clearance Air Monitoring and EPA-Certified Project Designer's Feeon Asbestos Abatement (Exclude costs for partial demolition.)

4. Architectural Printing

5. Test Borings 125,0006. Site Survey 100,0007. Other (attach schedule if needed)

a.Joint Permit, NPDES, Land Development, Zoning, Sanitary, Tree Harvesti 1,125,000

b.PlanCon-D-Add't Costs, Total

8. Contingency 250,0009. TOTAL - Additional Construction-Related Costs 2,250,000

H. FINANCING COSTS BOND ISSUE/NOTE BOND ISSUE/NOTE BOND ISSUE/NOTE X X X X X X FOR THIS PROJECT ONLY SERIES OF 2018 SERIES OF 2020 SERIES OF 2021 X X X X X X

1. Underwriter Fees 122,465 152,320 159,845 434,6302. Legal Fees 59,253 65,000 65,000 189,2533. Financial Advisor

4. Bond Insurance5. Paying Agent/Trustee

Fees and Expenses 1,250 1,500 1,500 4,2506. Capitalized Interest 930,105 930,1057. Printing 7,500 7,500 7,500 22,5008. CUSIP & Rating Fees 19,359 22,800 22,800 64,9599. Other

a.

b.

10. TOTAL-Financing Costs 209,827 249,120 1,186,750 1,645,697I. TOTAL PROJECT COSTS (F plus G-9 plus H-10) 78,737,089

BOND ISSUE/NOTE BOND ISSUE/NOTE BOND ISSUE/NOTE

REVENUE SOURCES SERIES OF 2018 SERIES OF 2020 SERIES OF 2021 TOTAL

J. AMOUNT FINANCEDFOR THIS PROJECT ONLY 17,495,000 21,760,000 22,835,000 62,090,000

K. ORIGINAL ISSUE DISCOUNT/PREMIUM FOR THIS PROJECT ONLY 2,722,444 3,494,874 3,355,339 9,572,657

L. INTEREST EARNINGSFOR THIS PROJECT ONLY 475,000 167,274 130,952 773,226

M. BUILDING INSURANCE RECEIVED

N. PROCEEDS FROM SALE OF BUILDING OR LAND

O. LOCAL FUNDS - CASH (SEE INSTRUCTIONS) 6,301,206P. OTHER FUNDS (ATTACH SCHEDULE)

Q. TOTAL REVENUE SOURCES 78,737,089



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DETAILED COSTSDistrict/CTC: Project Name: Project #:

Seneca Valley New K-6 Elementary & Middle School 5755

NEW EXISTING TOTAL

A. SITE DEVELOPMENT COSTS(exclude Sanitary Sewage Disposal)

1. General (include Rough Grading to Receive Building) 11,613,254 11,613,254

2. Heating and Ventilating

3. Plumbing

4. Electrical

5. Other: Site Construction Contingency 632,260 632,260

6. Other: Site related FFE (playground equipment, etc) 900,000 900,000

7. A-1 thru A-6 - Subtotal 13,145,514 13,145,514

8. Construction Insurance

a. Owner Controlled Insurance Program 176,108 176,108 on Site Development Costs

b. Builder's Risk Insurance (if not included in primes 11,741 11,741

c. Construction Insurance - Subtotal 187,849 187,849

9. Site Development Costs - Total 13,333,363 13,333,363

B. ARCHITECT'S FEE ON SITE DEVELOPMENT 773,335 773,335

EXISTING

C. ASBESTOS ABATEMENT

1. Asbestos Abatement

2. AHERA Clearance Air Monitoring

3. Asbestos Abatement - Total (D02, line A-5)

D. EPA-CERTIFIED PROJECT DESIGNER'S FEE ON ASBESTOS

ABATEMENT (D02, LINE B-2)

E. ROOF REPLACEMENT/REPAIR

1. Roof Replacement Repair

2. Owner Controlled Insurance Program on Roof Replacement/Repair

3. Builder's Risk Insurance (if not included in primes)

4. Roof Replacement/Repair - Total

F. ARCHITECT'S FEE ON ROOF REPLACEMENT/REPAIR



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ACT 34 OF 1973: MAXIMUM BUILDING CONSTRUCTION COSTFOR NEW BUILDING OR SUBSTANTIAL ADDITION ONLY

District/CTC: Project Name: Project #:

Seneca Valley New K-6 Elementary & Middle School 5755

Act 34 applies only to costs for new construction. The legal requirementsdo not address the costs for alterations to existing structures. For thisreason, costs associated with the existing structure and other related costsshould not be included in the following calculations.

A. STRUCTURE COST, ARCHITECT'S FEE, MOVABLE FIXTURESAND EQUIPMENT (D02, line D-NEW) $ 74,677,880

B. EXCLUDABLE COSTS FOR NEW CONSTRUCTION

1. Site Development Costs (D04, line A-7-NEW $ 13,333,363

2. Architect's Fees on the aboveexcludable costs $ 773,335

3. Vocational Projects Only - MovableFixtures & Equipment (D02, line C-3-NEW) $

4. Total Excludable Costs (B-1 plus B-2 and B-3) $ 14,106,698

C. ACT 34 MAXIMUM BUILDING CONSTRUCTION COST(A minus B-4) $ 60,571,183

IF THE MAXIMUM BUILDING CONSTRUCTION COST BASED ON BIDS IS EQUALTO OR GREATER THAN THE MAXIMUM BUILDING CONSTRUCTION COST BASED ONESTIMATES PLUS EIGHT PERCENT (LINE D), A SECOND PUBLIC HEARING WILLBE REQUIRED BEFORE ENTERING INTO CONTRACTS AND STARTING CONSTRUCTIONON ANY PLANNED WORK.

D. ACT 34 MAXIMUM BUILDING CONSTRUCTION COSTTIMES 1.08 (C times 1.08) $ 65,416,877

THE BOARD MUST ADOPT THE FIGURE ON LINE C BEFORE SCHEDULING THE FIRST ACT 34 HEARING.

THE FIGURE ON LINE A SHOULD NOT BE ADOPTED BY THE BOARD.

THE FIGURE ON LINE D SHOULD NOT BE ADOPTED BY THE BOARD.


ANALYSIS OF FINANCING ALTERNATIVES We have analyzed four alternative methods of financing the proposed designing, constructing, furnishing, and equipping the new K-6 Elementary & Middle School (the "Project"). We also estimated the direct costs of financing as required by the Department of Education regulations issued November 4, 1978. ANALYSIS OF ALTERNATIVES The four alternatives of financing that we examined are:

1. Cash or a short-term loan. 2. General obligation bond issue. 3. A local authority issue. 4. A financing through the State Public School Building Authority (SPSBA).

Review of the financing projections prepared in connection with this Project, and discussions with the School District's Administration indicated that financing the entire project with cash is not feasible. The School District does not have the unassigned funds necessary to pay enough cash for its share of the Project, nor does it appear that the School District would be able to raise the required amounts from its anticipated cash flow to meet the proposed construction schedule. We then analyzed in detail the three alternatives which would require the School District to incur long-term debt. For each alternative, we estimated a bond issue size and calculated the average annual debt service requirements. We then constructed a repayment schedule assuming equal annual payments over 20 years at current interest rate levels for the General Obligation, Local Authority, and SPSBA Bond Issues. Financing costs for the local authority and SPSBA were slightly higher, which resulted in a larger bond issue and higher average annual payments. Bonds issued through either a local authority or the SPSBA would be classified as revenue bonds instead of general obligation bonds. Interest rates on revenue bonds are slightly higher than interest rates that would be received on general obligation bonds. This would result in higher annual debt service payments for the School District. The General Obligation alternative offers the School District the advantage of lower interest rates, more favorable refunding provisions and keeps more control with the local school board. Based on these analyses and past performance, the least costly alternative for financing the Project is the General Obligation Bond Issue.

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COMPARISON OF LONG-TERM FINANCING METHODS GENERAL LOCAL OBLIGATION AUTHORITY* SPSBA Construction & Related Costs $74,841,392 $74,841,392 $74,841,392 Contingency & Supervision 2,250,000 2,250,000 2,250,000 Capitalized Interest 930,105 950,105 950,105 Costs of Issuance 715,592 740,592 735,592 Total Costs 78,737,089 78,782,089 78,777,089

Less: Interest Earned 773,226 773,226 773,226 Less: Bond Premium 9,572,657 9,382,657 9,382,657 Less: District Cash Contribution 6,301,206 6,301,206 6,301,206

BOND ISSUE 62,090,000 62,325,000 62,320,000 Average Annual Payment at 3.50%** for 20 years $4,368,719 $4,485,038 $4,484,678

*A Local Authority would have annual administrative expenses, which have not been included in these calculations. **Local Authority and SPSBA Annual Payments are calculated assuming 3.75% as a result of higher interest costs associated with selling revenue bonds.

The School District is considering other ways to reduce the debt service and local effort needed to fund the Project.

1. School District will not utilize bond insurance which will generate savings on the Bonds as the District’s underlying credit rating is an “Aa2”.

2. The School District will use wrap-around debt service structure on the future Bonds in order to minimize the

millage impact.

3. For discussion purposes only, we have provided: Table 1- Series of 2018, 2020 and 2021 $62,090,000 1 mill = $600,000

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STATE REIMBURSEMENT Historically, the State has agreed to reimburse the District for a portion of the principal and interest paid each year for building construction projects approved through the PlanCon process. Since May 15, 2016 a moratorium on the acceptance of new PlanCon projects for approval has been in place. Recently enacted Act 70 of 2019 reforms the PlanCon program by, among other things, reducing the number of individual parts to the program, adjusting the reimbursement formulae, providing reimbursement for certain repair and maintenance projects and limiting state reimbursement payments to a fixed amount over a twenty-year period. However, the General Assembly did not include PlanCon funding in the 2019-20 fiscal year budget, and so the moratorium on new projects continues. The District intends to pursue state support for this project should funding become available in future years and the project be deemed eligible, however the impact of this potential reimbursement is not measurable at this time. INDIRECT COSTS At the completion of this project, it is not anticipated that indirect costs will increase or decrease. The project is planned to provide more appropriate square footage for education of students by current staff. It is not anticipated that additional staff will be hired specifically related to the Project. Costs associated with custodial services and supplies are not expected to change substantially. Finally, while the Project includes more square footage than the current Evans City Elementary School, it is anticipated that improved energy efficiency will offset energy costs associated with the increased space. TOTAL MILLAGE IMPACT The total millage impact of the Project is: $62,090,000 G.O. Bonds on Table 1 = 2.47 mills The millage impact from the bond issue of 2.47 plus the indirect costs of 0 mills equals a total millage impact of 2.47 mills.

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PUBLIC HEARING NOTICE

Please take notice that a public hearing will be held at the Seneca Valley School District Intermediate High School Auditorium located at 126 Seneca School Rd, Harmony, PA 16037 on Monday, November 4, 2019, at 6:00 p.m. for the purpose of reviewing all relevant matters relating to the construction and equipping of the proposed New K-6 Elementary & Middle School (the "Project").

This public hearing is being held pursuant to the requirements of PA Public School Code of 1949, approved March 10, 1949, as amended and supplemented, including amendments made pursuant to Act 34 of the session of 1973 of the General Assembly.

A description of the Project, including facts relative to educational, physical, administrative, budgetary and fiscal matters of the Project, will be presented and will be available for consideration at this public hearing, and, beginning Monday, October 14, 2019, a description booklet will be available during business hours at the Seneca Valley School District Administration Office located at the District Administration Building, 124 Seneca School Road, Harmony, PA 16037. The Seneca Valley School Board, by resolution duly adopted, has authorized a maximum building construction cost of $60,571,183 and a maximum total project cost of $78,737,089 in connection with the Project:

Any and all interested parties may appear at and attend the public hearing and may be heard at such public hearing and / or may submit testimony to the District Administration Office until 12:00 noon on Monday, November 4, 2019. Additional testimony will be received from the floor at the hearing. All testimony will be limited to five minutes per speaker.

Public comment will also be received in written format after the public hearing until 12:00 noon on Friday, December 6, 2019, at the Seneca Valley District Administration Office (address listed above).

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Documents

PUBLIC HEARING NEW K-6 ELEMENTARY & MIDDLE SCHOOL