act 34 hearing booklet

8/14/2019 Act 34 Hearing Booklet

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MIDDLETOWN AREA SCHOOL DISTRICT

PUBLIC HEARINGo the proposed

NEWMIDDLETOWN AREA HIGH SCHOOLat the

Middletown Area High School55 North Union StreetHigh School Auditorium

oMonday November 18 20137:00 P


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ACT 34 PUBLIC HEARINGNew Construction ofThe Middletown Area High School

GEND

C LL TO ORDER INTRODUCTION

PROJECT DESCRIPTIONBy Crabtree, Rohrbaugh Associates

FINANCIAL ANALYSISBy RBC Capital Markets , LLC

Ms. Barbara LayneMiddletown Area School DistrictSchool Board Pres iden tDr. Lori SuskiMiddletown Area School DistrictSu perintendent of Schools

Mr. R Jeffrey Straub AlADirector, Senior Pro ject Ma nager

Mr . Ken PhillipsFinancial Advi sor

4. PUBLIC COMMENTQuestion and An swer PeriodA Pre-registered speakers commentsB. Please ra ise hand, stand, and state name, addressC. One question at a time

5. ADJOURNMENT


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ACT 34 PUBLIC HEARINGNew Construction ofThe Middletown Area High SchoolINTRODU TION

The School Board o the Middletown Area School District for Middletown Area High School,Middletown, Pennsylvania, is providing this opportunity to inform the public as to the MiddletownArea School District s consideration of a project to construct a new high school facility .

The project is in response to a review of the physical facility and academic and technicalprogram needs for the school population.

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

The specific purposes for this hearing are as follows:1. Establish the need for the project by reviewing events leading to the Middletown

Area School Board s consideration to initiate the building improvement project2 Review the various options considered by the Middletown Area 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 programsthat 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 o 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 thepresentation . An official transcript of the hearing is being recorded in order for the MiddletownArea School Board to consider and study your constructive comments, insights andobservations.


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ACT 34 PUBLIC HEARINGNew onstruction ofThe Middletown Area High School

PROJE T NEEDThe Middletown Area School District desires to undertake a building construction project for anew high school to replace the existing high school. This project is needed in order to improveinfrastructure and academic and technical program functions as identified in the District WideFacility Study. Improvements to the building have been made in the past; however, newconstruction is needed to provide equity to the educational program and facilitate the academicachievement of the students. Exis ting conditions relative to program capacity, spatiallimitations, as well as the overall physical condition of the building justify a need for a newbuilding and in fact are less costly than an additions and renovations project These issuessupport the need for this building improvements program.The existing high school building was original ly constructed in 1962. The existing buildinginfrastructure is outdated and in need of major costly improvements. In addition, variousacademic and support spaces are inadequate in quantity and size.The exterior envelope and a number of systems were found substandard. These include a roofthat is at the end of its life expectancy, windows and door systems that are not thermallyefficient and are at the end of their life expectancy, and various conditions to the existing fayadewhich need repair. While the staff has maintained the building well , interior finishes are datedand beyond their life expectancy. These include ceilings and casework which need totalreplacement and flooring finishes which need repaired/replaced throughout many areas of thefacility. The furnishings and equipment throughout the facility are vastly out of date to todayseducational standards. The engineering systems each have componen ts which are past theirlife expectancy and are in need of repair and replacement. These include the need to replacethe entire HVAC system including controls, all plumbing fixtures along with the domestic watersupply system, all lighting and associated wiring, and the fire alarm system. Various buildingsystems are also inefficient and costly to operate. Air conditioning does not exist. In addition tothe deficiencies in the building materials and systems noted above, there are numerousaccessibility, safety, security and code compliance issues that need addressed and corrected.Aside from the general condition of the building, many programmatic and educationaldeficiencies exist at the existing high school. Storage is inefficient and inadequate, theadministrative areas are lacking appropriate space and function , configuration of the buildingand entrances are substandard with regards to security and safety, and spaces of inadequatesize and quantity exist to deliver the educational program of the district.The above noted factors indicate that the existing building is currently being used beyond itscapabilities and will be unable to accommodate the services required by both the students andthe community.


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ACT 34 PUBLIC HEARINGNew onstruction ofThe Middletown Area High School

PROJE T NEEDState reimbursement criteria is an important consideration when defining th e scope of buildingimprovements. The Pennsylvania Department of Education (PDE encourages all schoolswis hing to implement a building improvement project to bring the entire building up to prevailingeducational and reasonably current construction standards and code compliance as a conditionof reimbursement. PDE recognizes that every 20 ye ar period a building facil ity should bebrought up to the above noted standards. That is why measures for reimbursement are set inplace at that time to help with the financial burden. The existing Middletown Area High Schoolwas last renovated in 1990 as a PDE reimbursable project, making it (3) years beyond PDEs20 year re com mendation for building improvements.No additional capital improvement reimbursement from PDE will be available to this building forthe next 20 year period after this construction project. It is im perative that the building projectplan for all building improvements, because it is unlikely another building wide constructionproject will occur for 20 years and may not occur for up to 30-40 years.


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ACT 34 PUBLIC HEARINGNew Construction ofThe Middletown Area High SchoolOPTIONS ONSIDERED

The District completed a District Wide Feasibility Study in August 2012. In this study fouroptions were explored. Each option included maintenance and upgrades to all existing schools.The variables in each option were the means to address the needs at the existing high schooland district administrative offices. The options for these facilities were as follows:

A - Additions and Renovations to the EXisting High School New DistrictAdministration Offices at the Existing High School Estimated Construction Cost- 49,303,681 A2 - Additions and Renovations to the Existing High School Maintenance andUpgrades to Existing District Administrative Building Estimated Construction Cost- 47,213,181 B - Construct New High School and Demolish Existing High School NewDistrict Administration Offices at the New High School Estimated Construction Cost- 46,344,158 B2 - Construct New High School and Demolish the Existing High SchoolMaintenance and Upgrades to the Existing District Administrative Building Estimated Construction Cost- 45,042,358

Due to cost and feasibility issues, the Middletown Area School District selected Option B2,to construct a New High School and keep the District Administration Offices in their existingbuilding. The goal of the fina l selection was to provide the highest quality programs possiblewhile being fiscally responsible.Please see the following page which is an excerpt from the District Wide Feasibility Studycompleted in August 2012. It should be noted that the New High School Project is onecomponent in Option B2 . At the time of the Feasibility Study, it was estimated the cost of thenew high school would be 40,914,058. At the time of the Act 34 hearing it is being projectedthe total project cost of the new high school project is being projected to be 40,305,454, asfound on page D03 of this booklet.


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Dlstr: T O W N ~Facilitv C +. .A . .

-Cost ;:)umman( *TGrad T --v.ar T

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" i i i ~ r ~ , _ . o t a l ~ ' ' I C O a II oft COatS600 106,203 $450 58.895 S475 96.462 $

. ~ 170.971 $' . _ ' 1116,413 '

, ..I I 10.000 I8,040 SI 1 9626 I :3.478 806.812

800 108.203 S'450 58.995 S475 96,462 $

105,6001,247.400

105,600

932 1f l l ~ 7 0 ~ . 9 7 1 I $ , 62,OOOI 10, $ 1 7 B ~ 28,040 I S 125,400

9,626 1 $ 3 1 0 , ~I t , ; ~ c . : ~ ~ ~ . ~ . f l c s - - - . ' ~ = I f l l n ' : ' & ~ . "I8

ITol8K5 2 0 0 3 Reid EI I r - ~ 0 ~ - - - ~ 3 . , = r ~ ~ : ~ : : ~ ; ~ ~ + - ~ ~ ~ u ~ ~K-5 /08 FinkE IK-6 1962 1996 Kunkla ES1 - - . - 1 6/8 2007 , &1--_ -< 9112 lH2 iiO 02 ~ - 20179112 _nH _Hlgb_

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56,895475 96,462932 170,971 I $

1,021 188,413 I 10,000 - ~8,040 1 $1 9 626 4

3,478 851L812 I l:-600 -106,203 1450 58,695 S475 96,462 $932 170,971 $

462.000

310,200.105.600

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Facility,Flirta. . Ctr &AlhleflcsI - - Total Upgrade, ~ ~ ~ I ~ : : - - - - ~ I 1 ~ ~ 5 0 ; , , : 2 0 0 4 ~ O C~ ~ , - - ~ 3 3 . ~ ~ ~ ~ ~ ' ~ ~ ~ ~ ~uemox -K'5 2003 I R 9 i d ~K-5 985 kES

IITeiifiiS Fitness Cen'er Facility

Actual Pmiec. vv rv , on ,misc", flnel olOOmm and geODe.Io

450 58,895475 96,462932 170,971865 169,587

9,646-8,04011,7009,826

3,32 641132 $ .

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PROJECT DESCRIPTIONSite -Located at 1155 North Union St Middletown, PA 17057Site Size: 28 acres of a 119 acre campusTopography: Site is relatively flat .5 ) as measured from the toe of slope adjacent to Oberlin Rd .towards the PA Turnpike to the south.Wetlands: Minor 500 sf) wetlands exist within the project area however they will not be disturbed.Available Utilities: Water, sewer, natural gas, electric power, & fiber optic cable are available to the site .Site Access: Existing access available from both Union St. and Oberlin Rd . will be maintained and hasbeen deemed adequate by both PADOT and the Township.Community Use: School District accommodates li mited community activities during non-school hours.Parking: Parking facilities will be increased from approximately 320 existing spaces to approximately 361proposed spaces.Existing Conditions Adjacent to the Site Affecting Health and Safety: Site is surrounded by roadwayson three sides. Existing topography, lack of adjacent walks, and fencing adjacent to the PA Turnp ikepreclude student access to these locations.Bus & Automobile Drop Off / Pick Up Areas: Separate and distinct bus and student drop-off areas arefeatures of this project's vehicular circulation des ign .Loading and Receiving Area: Load ing spaces for fo ur veh icles have been provided per the Townsh ipordinance.School Play Areas: Play areas are provided in the new design in the form of (1) new practice soccer field ,(1) new practice football field, (1) new competition softball field, and (1) new physical education/bandpractice field. The practice football field and soccer field are replacing existing fields which will need to berelocated due to the construction of the new high school. An existing runn ing track and competitionbaseball diamond are situated immediately west of the project area .

uildingProgram Construction of a New High SchoolTotal Square Footage 196,400Building Structure Two Story Masonry/Steel Framed Structure.The new high school will utilize the existing main entrance drive to the existing high school. Theexisting high school will be fully demolished , and athletic fields, along with separated bus andparent drop off loops with parking , will be constructed in its place.The main entrance will be through a secure vestibule flanked by the core administrative spaceson one side and conference rooms with an LGI on the other. The secure vestibule flows intothe student commons which organizes the building into two zones. One zone contains thephysical education spaces and gymnasium, auditorium, music program , technology educationand Art. The other zone contains the Main Academic Classrooms, Cafeteria, Kitchen, andbuilding support functions. At the end of the commons resides the student learning center.The main academic wing , which houses the majority of classroom spaces, encompasses thetwo story portion of the building . The classrooms are grouped by educational function. Specialeducation and support classrooms are dispersed throughout. Flex classrooms are located atthe end and center of each wing on each floor. These classrooms, which are open to thecorridor, serve as multi-use learning spaces in the current educational


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ACT 34 PUBLIC HEARINGNew Construction ofThe Middletown Area High SchoolPROJE T DES RIPTION

program and will also aid in the implementation of future changes in the educationalenvironment.Located central to the academic wing on each floor are faculty planning centers for teachercollaboration and planning . The academic wing connects two ends of the central commonsspace to form an enclosed exterior courtyard . This courtyard will be used for a multitude ofeducational functions as well as outdoor seating for the cafeteria.The classrooms are designed with flexibility and adaptability in mind. Moveable storage unitswill be used in lieu o fixed casework. Modular, reconfigurable student desks will beincorporated. Technology will be implemented wirelessly along with a hard wired backbone forreliability. These design features will enable the built classroom environment to mold and adaptto the ever-changing educational model.The organization and design of the building is formed around the education specificationsdeveloped by the Middletown Area School District at the beginning of the project and goals ofthe District. The building will lend itself to educate students so that they value learning, aresocially responsible and are prepared to lead productive and successful lives.The bu ilding is being designed to support Middletown Area School District s Shared ValuesWe believe that.. .

All students can learn. We can teach all students. Curriculum, instruction and assessment should be continually monitored and adapted toensure educational excellence. All individuals have value and deserve respect. A safe , orderly nurturing and bully-free environment promotes effective teaching andlearning. Continuous training and development enables employees to improve their knowledgeand skills to meet the needs of the organization. We must prepare students to be ready for a career and have the ability to access thenecessary post-secondary training to be successful. Co-curricular and extra-curricular activities are part of a we ll-rounded educationalexperience. Public education is a shared responsibility of the entire community . We can provide a quality educational program consistent with these values while beingfiscally responsible.


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uildingSystems:

Mechanical

ACT 34 PUBLIC HEARINGNew Construction ofThe Middletown Area High SchoolPROJE T DES RIPTION

The building will be served by a 4 pipe system utilizing chilled water and hot watersystems to allow simultaneous heating and cooling to occur in all areas of the facility . The heating system will consist of four high efficiency condensing gas-fired boilers withbase mounted pumps with variable frequency drives. The cooling system will consist of a partial off peak ice storage system with an aircooled chiller and 14-16 fully buried ice tanks with base mounted pumps with variablefrequency drives. All HVAC equipment shall be connected to a single Building Automation System BAS).The BAS shall interface with and control HVAC equipment located in the building. Theuser interface shall be achieved via a PC workstation and will be web based. The larger spaces, gym, auditorium , library and cafeteria; will be served 4 pipe air

handling units with energy recovery. Classrooms will be served by 4 pipe VAV rooftop air handling units with energyrecovery and fan powered VAV boxes. Administration areas will be served by a 4 pipe VA V rooftop air handling units withenergy recovery and fan powered VAV boxes . The entire HVAC system air and water) will be tested , balanced and commissioned tomeet specified criteria . The HVAC system shall meet the current International Energy Conservation Code.Fire Protection The entire building will be protected with a wet pipe fire protection spr inkler system withdiesel fire pump.Plumbing Distribution systems shall be provided for the domestic hot and cold water system;waste and vent system ; storm water system; and natural gas system to serve all fixturesand appliances located throughout the building . Low flow plumbing fixtures to be used throughout the building . New high efficiency gas fired water heaters. Water softener will be provided for the entire building . The plumbing system shall meet the current International Energy Conservation Code.Electrical The building will be equipped with an addressable fire alarm system. Manual pullstations, horns, speakers, etc . will be laid out to meet all applicable codes and ADArequirements. Srnoke detection will be installed where required by applicable codes and

in higher hazard areas . Fire alarm system shall be a non-proprietary rnanufacturer . Intercom, clock, data, and telephone systems will be included and be compatible withsimilar systerns located throughout the District. For cornputer/data systems, back boxlocations for computer jacks will be shown and contractor will provide cat 6 wire back todesignated data rooms. Wireless access points will be provided throughout the building. For the security and CC system , cameras, door contacts, motion detectors , keypads, andother equipment to create a fully functioning final system will be included.


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PROJE T DES RIPTION

For the integrated paging/clock/telephone system, devices such as speakers, voicecontrol, and intercom will be provided. A new electrical service will be provided to the building directly from the utility. The newservice size is estimated to be 3000A, 480/277V, 30 4W. A full power distribution system will be installed, including main switchgear, distributionpanel boards, branch circuit panelboards, and associated transformers. The school will be provided with convenience receptacles in all spaces. These shall becommercial grade, tamper proof, 20A receptacles. In all normally occupied spaces, atleast one receptacle will be on each wall unless the wall is inaccessible or it is otherwiseinappropriate to do so. Each classroom will be provided with a receptacle with USB port. Spare capacity will be built into each panelboard to provide for future loads and flexibility. The entire building will be illuminated with efficient lighting fixtures. Lighting controls will consist of a combination of localized switching, ceiling-mountedoccupancy/vacancy sensors and daylighting control systems. Spaces where automaticoff is required per the energy code and occupancy sensors are not desired, a digital timeclock with manual override system shall be used. Where possible the lighting controlsystem will be integrated into the BAS system.o Interior lighting in areas with exterior windows will be controlled with a daylightdimming and occupancy sensing system.o Interior lighting fixtures installed in interior spaces will be controlled through anoccupancy sensing and time controlled system. The lighting system shall meet the current International Energy Conservalion Code asrequired. Exit signs will be provided to meet life safety code requirements. Exit lights shall be

internally illuminated LED type with directional arrows. Emergency lighting circuits will be provided. Lighting fixtures on emergency power circuitswill be controlled the same as lighting fixtures in the same area until emergency power isneeded. Egress lighting shall be provided to meet the requirements of the IBC Building Code. Parking areas shall be illuminated using LED pole mounted fixtures. Additional sportslighting fixtures will be provided at one parking lot for band practice. Tennis court lightingwill be provided. Light fixtures shall also be provided around the perimeter of the building to provide generalilluminations. Building lighting shall be controlled by a lighting control panel on andprogrammable time clock off . An emergency generator will be provided to power life safety equipment and a smallamount of other loads.This building will be designed under the following code requirements:PA Uniform Construction Code, IBC, ADA, L I


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OF OWNED AND LANDArea School Distr ict ~ i b d l : ~ ~ ~ n Area High Scliool

~ I A J 1 E OF BU LDING OR SITE(INCLUDING OAO AN D VACANT LN


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PROJECT ACCOUNTING BASED ON ESTIMATES 1 o f 2)- r ict/CTC: I O j e c t NameIv1lcldletown Area School District Middletown Area High Schoo l

ROUND FIGURES TO NEAREST DOLLARPROJECT COSTS NEW EXISTING TOTALA. STRUCTURE COSTS (include s i te development)

l General (Repoct co s t s for san i tary s ewage disposa l on 11ne -1 .) 22,745,983 22,745,9832, Heating and Ventilating 5,292,534 5,292,5343 . Plumbing (Report cost . for sa ni tary sewage disposal on l ine -1 . ) 1,463,278 1,463,2784, Electrical 4,257,146 4,257,1465 Asbestos Abatement (004 , l ine C- 3) X X X X X X6 . Building Purchase Amount X X X X X X7 , Other . (Exclu de tes t borings and s i t e survey)

a , Fire Prote tion 704,345 704,345b ,c .d ,e, PlanCon-D-Add ' t CO S 1:S , Tota l

A I to A-7 - Subto ta l 34 463,286 34,463,2868. Construction Insurance

a , Owner Con t ro l led Insurance Program onStructure Costs (Exclu de asbesto s abatement , bu i ld ingpu rchase and other s tructure cos t s not covared by the p r o o r ~

b, Builder ' s Risk Insurance ( i f not included in primes)C . Construction Insurance Total

9 . TOTAL-Structure Costs (A- l to A-7-Subtotal plus A- a-c) 34,463,286 34,463,286B . ARCHITECT ' S FEE

1 . Architect ' s /Engineer ' s Fee on Structure 2,171,540 2,171,5402 , EPA-Certified Project Des igner ' s X X X X X X

Fee on Asbestos AbaLemeoL X X X X X XJ . TOTAL - Architect ' s Fee 2,171,540 2,171,540

C . MOVABLE FIXTURES AND EQUIPMENTl Movable Fixtures and Equipmen t 867,975 867,9752 . Architect ' s Fee3 . TOTAL - Movable E'ixtures & Equipment 867,975 867,975

O. STRUCTURE COSTS, ARCHITECT'S E EE,MOVABLE FIXTURES & EQUIPMENT - 37,502,801 37,502 801TOTAL (A - 9 plus B- 3 and C-3)

E. SITE COSTS1 Sanitary Sewage Disposal 32,900 32,9002 . Sani tary Sewage Disposal Tap n Fee and/orCapacity Charges3 . Owner Controlled Insurance Program/Builder ' s RlSkInsurance on Sanitary Sewage Disposal4 . Archltect ' s /Englneer s Fee f o rSanitary Sewage Disposal 2,100 2,1005 . Site Acquis i t i on Costs X X X X X X

a , Gross Amount Due from Se ttlement Statement X X X X X Xo r Estimated Just Compensation X X X X X X

b . Real Estate Appraisal Fees X X X X X Xc . Other Related Site AcquiSition Costs X X X X X Xd . Si te Acquis i t ion Costs - Total X X X X X X

6 . TOTAL - Si te Costs 35,000 35,000F . STRUCTURE COSTS, ARCHITECT ' S FEE,

MOVABLE FIXTURES & EQUIPMENT, AND 37,537,801 37,537,801SITE COSTS - TOTAL (0 p lus E-6)

Type No Fee beside each i tem for which no des ign fee i s charged .

RE VI SED JULY 1 , 2010 FORM EXPIRES 6-30 1 2 PLANCON-002


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PROJEC T ACCOUNTING BAS ED ON ESTIMATES 2 of 2)I) j eucre IPCOject Name IProject :Middletown Area School District Middletown Area Hi h School

ROUND FIGURES TO NEAREST DOLLARPRO JECT COSTS CONT. )G. ADDITIONAL CONSTRUCTION - RELATED COSTS

l Project Supervis ion (inc . Asbestos Abatement Project Supervision2 . Construction Manager Fee and Related Costs3 . Total Demolition of Entire Ex i st ing Structure s and Related Asbestos Removal

to Prepare Project Site for Construction of New School Building and RelatedAHERA Clearance Air Monitoring and EPA - ert i f ied Project Designer s Feeon Asbestos Abatement (Exclude costs for par t ia l demolition . )

4 . Archi tec tura l Print ing5 . Test Borings6 . Si te Survey7 . Other (a t tach schedule i f needed)

a . IBC Teting Inspections , Energy Modeling, Commissioning , Etc .b . PlanCon-D-Add t Costs , Total

8 . Contingency9 . TOTAL - Addit ional Construction - Related CostsH. FINANCING COSTS OND I SSUE/NOTE BOND ISSUE/NOTE BOND ISSUE/NOTEFOR THIS PROJE T ONLY SERIES OF 2014 SERIES OF 20 14A SERIES OFl Underwriter ees 293 ,08 5 70 ,6682 . Legal Fees 35 ,000 30,0003 . Financial Advisor4 . Bond Insurance 105 ,950 60,0005 . Paying Agent/Trustee

ees and Expenses 1,200 1,2006 . Capi ta l ized nteres t7 . Print ing 8,750 8, 7508 . CUSIP Rating ees 19,000 9,5009 . Other

a .b .

10 . TOTAL-Financing Costs 462,9 85 180,118I . TOTAL PROJECT COSTS F plus G-9 plus H-l0)

OND ISSUE / NOTE OND ISSUE / NOTE OND I SSUE/ NOTEREVENUE SOURCES SERIES OF 2014 SERIES OF 2014A SERIES OFJ . AMOUNT FINANCED

FOR THIS PROJE T ONLY 32,440,000 7,852 ,000K. ORIGINAL ISSUE DISCOUNT/PREMIUN OR THIS PROJECT ONLY

L. INTEREST EARNINGSFOR THIS PROJE T ONLY 11 ,954 1,500

M. BUILDING INSURANCE RECEIVEDN. PROCEEDS FROM SALE OF BUILDING OR LANDO. LOCAL FUNDS - CAS H SEE I NSTRUCTIONS)P . OTHER FUNDS ATTACH SCHEDULE)Q . TOTAL REVENUE SOURCES

REVISED JULY 1, 2010 FORM EXP I RES 6-30-12

3754

TOTAL

85,000

72 ,38515 ,29018 ,536

942,0 33

991 ,3062,124 ,550X X X X XX X X X X363,75365,000165,9502,40017,50028,500

643,10340 ,305,454

TOTAL

40 ,292 ,00

13,454

40 ,305,454

PLANCON -


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DETAILED COSTSDistrict/eTC: ProJect NameMiddletown Area School District Middletown Area Hig h School

NEWA. SITE DEVELOPMENT COSTS

exclude Sani tary Sewage Di sposal)1. General include Rough Grading to Receive Bui lding ) 2,250,0002 . Heating and Vent i la t ing3 . Plumbing 100,0004 . Elec t r ica l 150,0005 . Other :6 . Other :7 . A-I thru A- 6 Subtotal 2,500,0008 . Construction Insurance

a . Owner Control led Insurance Programon Si te Development Costsb . Bui lder s Risk Insurance i f not inclt1ded in primes)c . Construction Insurance Subtotal

9 . Si te Deve l opment Costs Total 2,500,000B. ARCHITECT S FEE ON SITE DEVELOPMENT 150,000

C. ASBESTOS ABATEMENT1 . Asbestos Abatement2 . AHERA Clearance Air MonitoringJ . Asbestos Abatement Total 002 , l ine A- S)

D. EPA - CERTI FI ED PROJECT DESIGNER S f EE ON ASBESTOSABATEMENT 002, LINE B-2)

E. ROOf REPLACEMENT/REPAIR1 . Roof Replacement Repair2 . Owner Control led Insurance Program on Roof Replacement/RepairJ . Builder s Risk Insurance i f not inc luded in primes)4 . Roof Replacement/Repair Total

F. ARCHITECT S FEE ON ROOF REPLACEME NT/REPAIR

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

EXISTING

Project U375 4

TOTAL

2,250,000

100 ,000150,000

2,500,000

2,500,000150,000

EXI STING

PLANCON - D


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

District /eTC: ~ r j e c t me : jPrOject ,Middletown Area School District Middletown Area High School 37 54Act 34 applies only to costs for new co nstruction . The legal requirementsdo not address the costs for l ter t ions to ex ist ing s tructures . E or th i sreason costs associated wi t h the exist ing structu re and other rel ted costsshould not be included in the followir.g c lcul t ions .

A. STRUCTURE COST, ARCHITECT ' S FEE, MOVABLE FIXTURESAND EQUIPMENT (D02 , l ine D- NEW) 37,502 ,801tB. ~ X C L U D B L E COSTS "OR N W CONSTRUCTION

THE FIGURE ONLINE A SHOULDl. Site Development Costs (D04 , l ine A- 7- NEW) 2,500 ,000 NOT BE ADOPTED2 . Architect I 5 Fees on th e above BY THE BOARD.

excludable costs 150 ,0003 . Vocational Projects Only - Movable

E ixtures Equipment (D02 , l ine C- 3- NEW)4. Total Excludable Costs

8-1 plus 8-2 and B- 3) 2,650 ,000C. ACT 34 MAXIMUM BUILDING CONSTRUCTION COST

(A minus 8- 4) 34,852,801THE BOARD MUST ADOPT THE FIGURE ON /LINE C BEFORE SCHEDULING THE FIRSTACT 34 HEARING .

I f THE MAXIMUM BUILDING CONSTRUCTION COST BASED ON BIDS IS EQ JALTO OR GREATER THAN THE MAXIMUM 8UILDING CONSTRUCTION COST BASED ONE S T I M T E ~ PLUS EI :;HT P E R ~ E N T ILINE DI, A SECOND PUBLIC HEARIN(i WILL8E REQUIRED BEFORE ENTERING INTO CONTRACTS AND STARTING CONSTRUCTIONON ANY PLANNED WORK .

D. ACT 34 MAXIMUM BUILDING CONSTRUCTION COSTTIMES 1 08 (C t imes 1. 08) 37,641.025

THE FIGURE ON LINE D /HOULD NOT BE ADOPTED BYHE BOARD.REVISED JULY 1, 2010 FORM EXPIRES 6- 30-12 PLANCON-D20

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MIDDLETOWN AREA SCHOOL DISTRICTANALYSIS OF FINAN NG ALTERNATIVES

We have analyzed several alternative methods of financing the construction of anew High School for the Middletown Area School District (the Project ). We have alsoestimated the direct costs of fmancing, all as required by Department of Educationregulations issued November 4, 1978.Analysis of Alternatives

The alternatives of financing which we examined are:1. Cash or a short-te rm 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 financingprojections in connection with this Project indicated that a short-term bank loan was notfeasible.

We also analyzed the remaining alternatives which would require the SchoolDistrict to incur long-term debt. For each alternative we estimated a bond issue andaverage annual debt service. Financing costs for each were slightly different, rellectinghigher legal fees in the case of the local authority, and higher marketing rates associatedwith financing through SPSBA. These costs are presented on the attached Table I

Based on these estimates, the least costly alternative for financing the capitalprojects is through the use of a Genera l Obligation Bond Issue. This alternative also offersthe School District the advantage of increased flexibility and control over the constructionof the project, structure of the Bond Issue, investment of Bond Proceeds and morefavorable refunding provisions. The School District anticipates funding the Project withproposed Series of 2014 and Series 20 14A general obligation bond issues. At the time ofanticipated fmancing, the District will also study the merits of any federa l financingprogram if available.

ST TE REIMBURSEMENT

The State reimburses a School District for a portion of the principal and interestwhich the School District pays each year on its bonds. The amount of the reimbursementis determined by two factors - the percentage of the Project determined by the Departmentof Education to be reimbursable and the School District's Market Value Aid or CARF ratio.Current estimates by the Arch itect ind icate that the Project will have a net effectivereimbu rsement of approximately 8.35 after taking into consideration the SchoolDistrict's 2013- 14 MVAR of 51.8 1 . Therefore, for each dollar paid by the School Districttoward principal and interest, the state will reimburse the School District approximately8.35 cents for the Project.

For illustration purposes and due to the current moratorium on P['ANCONreimbursement, Table is based on ZERO reimbursement from the State.

9


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TABLE IMiddletown Area School Dis trict

omparison of Various Methods of FinancingHigh School Project

Costs of Construction:High School I)

Financing Costs: 2)Bond DiscountLegal FeesPrinting MiscellaneousRating CUSIPBond InsurancePaying Agent

Total RequirementsLess:

Interest Earned 3)Size of Bond Issue

GeneralObligation

39,677,351

363,75360,00017,50026,500158,950

2,40040,306,454

14,45440,292,000

LocalAuthority

39,677,351

370,12269,00021,50029,000167,250

3,00040,337,223

15,22340,322,000 4)

SPSBA

39,677,351

368,81067,50021,00028,500165,800

3,00040,331 ,961

14,96140,317,000 5)

1) Includes total Project Costs for Project appearing on PLANCON 0-02, ContingencyFund Allowances and funds for Project Management.

2) Financing Costs are estimates based upon recent averages and fees realized frombond issues sold in the municipal markct.

3) Interest earnings on co nstruction funds be ing availab le from investments basedupon approximate payout schedule and poss ible use for millage phase-in,

4) A local authority would have annual ad m inistrative expenses, which have not beenincluded in these calcu lations.

5) SPSBA average annual payment is calcu lated assum ing higher interest rates on arevenue bond issue as opposed to a general obligation bond issue.

2


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Debt Servic e an d Millage Im pactTable II following page) is a summary of the projected debt service and ap proximatemillage impact anticipated by the completion of the Project. The School District is funding

the Project with proposed Series of 2014 and 2014A general obligation bond issues in awrap around debt structure. The initial Series 2014 is anticipated to be a fIXed rate issueand the Series 2014A will ut ilize zero percent fixed yield capital apprec iation bonds. Inaddition to the bonded debt, the District plans on utilizing about 5.5 to 6.0 million ofDistrict reserves earmarked for capital projects. This financing plan, based on currentmarket interest rates as of the date of this Hearing, will enable the District to finance theProject with a ZERO millage impact.

Due to the wrap-around structure of the financing plan , it is anticipated that therequired funds fo r the School District's share of debt service requirements will be derivedfrom existing District capital fund balances and use of existing mills in the budget whichbecome available as previous bond issues are retired.

Based upon the current value of 1 collected mill be ing 838,000, the anticipateddebt service analysis indicating ZERO millage impact and use of available School Districtr s rv s to phase-in the debt expense is shown on following page labeled Table II Thesupporting bond amortization schedules also follow as attachment Table Ill. Thebreakdown of Indirect Costs, equaling 0.136 mLlls, is illustrated per the attached.The net impact to the School District considering Direct Costs and Indirect Costs areZERO mills for Direct Costs and 0.136 mills for Indirect Costs, for a total millage impact of0.136 mills.

2


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INDIRECT COSTS FOR NEW MIDDLETOWN AREA HIGH SCHOOL

The following figures reflect anticipated changes in indirect costs for the proposed newMidd letown Area High School. In assessing potential increases in related costs, the followingcategories were studied.PERSONNEL: These calculations assume that staff members assigned to the current MiddletownArea High School will be transferred to the new building upon completion. Current teachingstaff, instructional assistants, and office staff will be sufficient to meet anticipated needs unlessany program changes are made and or if significant growth in student enrollment occurs.However, we anticipate that one 1) additional evening custodian may be needed. The Districtestimates a cost of 24,960 for the additional custodial wages with an estimated cost of

15,500 for employee benefits. The total estimated personnel costs are 40,460.

MATERIA S & SUPPLIES: Teaching materials and supplies used for the current 9-12 curriculumwill be transferred to the new building. No additional costs are anticipated unless any programchanges are made and/or if significant growth in student enrollment occurs.COST OF FUEL & UTILITIES: Fuel and utilities are anticipated to increase by 70,000.BUILDING OPERATION & MAINTENANCE: Because of the increased square footage in theproposed new building, the District anticipates that the cost of custodial supplies may increaseby 2,556; however, the District anticipates that maintenance costs in the new building wil ldecrease. The District is projecting that there will be no net increase in building operation andmaintenance costs in the new building.PUPIL TRANSPORTATION: No changes in pupil transportation costs are anticipated as a result ofthe new High School.IN SURANCE PREMIUM: The additional insurance premium to cover the new High Schoo l isestimated to be 4,000 per year.

TOTAL NNU L INDIRECT COSTSVALUE OF ONE MILLMILLAGE IMP CT INDIRECT COSTS:

114 460838 000

136 Mills


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Middletown Area School DistrictMi llage Requi rement Study - Proposed Series of20 14 - 32,440,000and Proposed Series of20 14A CABS - 7,852,000Act 34 Hearing - November 18 2 013

Series 2014 Series 20 14A Less:Total Net 32,440,000 7,852,000 Interest Total Val ue of Total

Outstandi ng Bo nd Issue CAB Issue Earnings Net I Mill Mill sDate IS ( I) Net IS 2) Net DIS 3) SO Reserves Debl (4) Required

2013 4,364,065 0 0 4,364,065 838,000 5 2 120 14 4,356,404 0 0 4,356,404 838,000 5.202015 4.349,827 1,054 , I00 0 539,180 4,864,747 838,000 5.812016 4,342,754 1,586, 150 0 1,066, 174 4,862,730 838,000 5.8020 17 4,338, 16 1 1,586,050 0 1,06 1 481 4,862,730 838,000 5.802018 4,335,353 1,585,950 0 1 058,573 4,862,730 838,000 5.8020 19 4,297,262 1,585,800 0 1020,332 4.862,730 838,000 5.802020 4, 123, 147 1,725,600 0 996,0 17 4,852,730 838,000 5.79202 1 2,628,2 15 2,224,800 0 4,853,0 15 838,000 5.792022 2,363,5 17 2,488,800 0 4,852,3 17 838,000 5.792023 105,986 4.746,800 0 4,852,786 838,000 5.792024 105 ,956 4,747,000 0 4,852,956 838,000 5.792025 106 ,07 1 4,743,250 0 4,849,32 1 838,000 5.792026 106,004 4.741,250 0 4,847.254 838.000 5.782027 106,053 4,740,500 0 4846,553 838,000 5.782028 105,920 4,740,500 0 4,846,420 838,000 5.782029 105,907 4,740,750 0 4,846.657 838,000 5.787030 105,999 4,740,750 0 4,846,749 838,000 5.782031 105 ,89 1 0 4.760,000 4,865.891 838,000 5.812037 0 0 4.865.000 4,865,000 838,000 5.8 I2033 0 0 4,865.000 4,865 ,000 838,000 5.8 12034 0 0 4,865.000 4,865,000 838.000 5.8 12035 0 0 4,865.000 4,865,000 838,000 5.81

TOTAL 40,452 ,492 5 1,778.050 24,720,000 5,74 1,757 110,708,785(I) Annual Net Debt Service for Ser ies of2004, 2008, 200SA, and 2009130nds and District's share ofvo -tech debe

Series2014NewMills

0.0000.0000.0000.0000.0000.0000.0000.0000.0000.0000.0000.0000.0000.0000.0000.0000.0000.0000.0000.0000.0000.0000.0000.000

(2) Proposed Series of20 14, 32 ,440,000 New Money, Wrap Debt dated July 1,2014. Average Coupon 4,92% (current fates). Local Effort 100%.

MillsAvai lable Totalfrom Prior Mills in DollarsDebt (5) Place Appropriated

5.2 1 5.21 4,365,9800.00 5.2 1 4,365,9800.60 5.8 1 4,868,7800.00 5.81 4,868,7800.00 5.8 1 4,868,7800.00 5.8 1 4,868,7800.00 5.8 1 4,868,7800.00 5.8 1 4,868,7800.00 5.8 1 4,868,7800.00 5.81 4,868,7800.00 5.81 4,868.7800.00 5.8 1 4,868,7800.00 5.8 1 4,868,7800.00 5.81 4,868,7800.00 5.8 1 4,868,7800.00 5.8 1 4,868.7800.00 5.81 4,868,7800.00 5.81 4,868,7800.00 5.8 1 4,868,7800.00 5.81 4,868,7800.00 5.8 1 4,868,7800.00 5.8 1 4,868,7800.00 5.8 1 4,868,780

(3) Proposed Series A of2014, 7,852,000 New Money CABs, Wrap Debt dated July 1,2014. Average Cou;Jon 6. 14% (current ra tes). Loeal Effort 100%. Pric ing assumes 10 year call.(4) FY2011-12 mill is worth 838,000 and it remains constant. Per the ad ministration as of November 20 11 .(5) Mi lls in place for prior debt, beginning in FY 2014115 additional .60 mi lls from parking 1m ; collec tions.

R C Capital Markets

TABLE n40,292.0

BudgetSurp lus(Deficit)

1,99,54,06,06,06,06,0

16 ,015,716,415,915,819,421.522,222,322 ,22,02,8

3,73,73,73,7


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~ RBCCapilal Ma.rkets T BLE I

BOND DEBT SERVI EMiddletown Area School DistrictProposed GO Bonds, Series of2 14 Option I

Dated Date 07 01 20 14Del ivery Date 07 0 1120 14

AnnualPeriod Debt DebtEnding Principnr Coupon Interest Service Serv ice

09 0112014 263,525 263,52503 01120 15 790,575 790,575 1,054,10009 0 120 15 790,575 790,57503 0 12016 5,000 2.000 790,575 795,575 1,586, 15009/01/2016 790,525 790,52503/01120 17 5,000 2.000 790,525 795,525 1,586,05009 01 20 17 790,475 790,47503 012018 5,000 3.000 790,475 795,475 1,585,95009101120 18 790,400 790,40003 0 112019 5,000 4.000 790,400 795,400 1,585,8000910 120 19 790,300 790,30003 01 2020 145 ,000 4.000 790,300 935,300 1,725,60009 0 12020 787,400 787,40003 012021 650,000 4.000 787,400 1,437,400 2,224,8000910 12021 774,400 774,40003 0112022 940,000 5.000 774,400 1,7 14,400 2,488,80009 01 2022 750,900 750,90003 0112023 3,245,000 4.000 750,900 3,995,900 4,746,80009 0tl2023 686,000 686,00003 0 12024 3,375,000 5.000 686,000 4,06 1,000 4,747,00009 0 112024 601,625 601,62503 0112025 3,540,000 5.000 60 1,625 4,14 1,625 4.743,2500910 12025 5 13,125 513 ,12503 0 12026 3,715,000 5.000% 513, 125 4,228,125 4,741,25009/0 112026 420,250 420,25003 0 112027 3,900,000 5.000 420,250 4,320,250 4,740,5000910 112027 322,750 322.75003 0112028 4,095,000 5.000 322,750 4,417,750 4,740,50009 01 2028 220,375 220,37503 0 12029 4,300,000 5.000 220,375 4,520,375 4,740,75009 01 2029 112,875 112,87503 0112030 45 15,000 5.000 112,875 4,627,875 4,740,750

32,440,000 19 ,338,050 51,778,050 51,778,050

l l?,2013 2: 12 pill Prepared by RBe Capital Markets

2


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1 1 C l I p i l a I M a l k e

PeriodEnding Principal03 0112031 1,777,003.2003 0112032 1,682,852. 1503 0 2033 t ,570,422.0003 0 112034 1,464,073. 10030 112035 1358,162.05

7,852,512.50

BOND DEBT SERVICEMiddlelown Area School District

Proposed GO Bonds, Series of 20 14 CABS for Option IDated DaleDe livery Date

Coupon6.0006.1006. [jO6.2006.270

07 01120 14070112014

CompoundedInterest In terest

2,982,996.803,182,147.853,294,578.003,400,926.903,506,837.95

0 16 ,367,487.50

DebtServ ice

4,760,0004,865,0004,865,0004,865,0004,865,000

24,220,000

Oct 17, 20 13 2: 14 pill by RBC Capital Markets

T BLE

AnnualDebt

Service4,760,0004,865,0004,865,0004,865,0004,865,000

24,220.000

5


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14 583

MIDDLETOWN AREA SCHOOL DISTRICT

Act 34 Resolution

Background. The School District has determined that additional and improved school facilitiesare required for the pupils of the School District, and has authorized preliminary steps to planfor construction, and equipping a new Middletown Area School District High School (theProject ). The Pennsylvania Public School Code, including amendments made pursuant to Act

34 of 1973 (the School Code ), requires that a public hearing be held prior to the constructionof, or the entering into a contract to construct, a new school building or a substantial addition toan existing schoo l building. In accordance with the School Code, a public hearing is required tobe held in connection with the project. The School Code requires that a notice of such publi chearing be advertised at least twenty (20) days be fo re such hearing and that certain in formationbe made available at such hearing and that certain financial information be available forinspection by interested citizens during the period of such advertisement.RESOLVED by the Board of School Directors of the School District:

I . The School Board authorizes a public hearing to be held connectionwith the Project in accordance with the requirements of the School Code in the MiddletownArea High School Auditorium, located at 1155 North Union Street, Middletown, Pennsylvania,17057, on November 18 2013 at 7:00p.m.2. The School Board authorizes advertising the Notice of Hear ing insub stantially the form presented to the School Board at this meeting in accordance with therequirements of the School Code.

3. The School Board authorizes a maximum building construction cost of$34,85 2,80 I for the new construction portions of the contract, and a maximum project cost of$40,305,454 for the entire project.

4 . The School Boa rd authorizes preparation of a description of the project inaccordance with prior decisions of this Board and, upon approval thereof by the so licitor,Superintendent of the School District and the Pennsylvania Department of Education, directs theSecretary of the School District to make copies of such description of the project available tointerested citizens requesting the same at the pl ace and during the reasonable hours stated in theNotice of Hearing.


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140583

s. The School District authorizes Kegel Kelin Almy Lord LLP so licitorand bond counsel of the School District to perform such acts on behalf of the School District asmay be necessary in connection with the project.

6 The School District authorizes the firm of Crabtree RohrbaughAssociates Architects architects of the School District to perform such acts on behalf of theSchool District as may be necessary in connection with the project.

7 The School District authorizes the firm of RBC Capital Markets LLC. financial advisor of the School District to perform such acts on behalf of the School District asmay be necessary in connection with the project.

8. The Secretary is directed to make the financial information with respect tothe project avai lab le for inspection by interested citizens requesting such inspection at the officeof the Secretary orthe School District.

Duly adopted this 28 th day of October 2013 by the Board of SchoolDirectors.

President

Attest:

Secretary

SEAL)

-2-


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.

PUBLIC I-lEARING NOTICE

Please take notice that a public hearing will be held in the Auditorium at the MiddletownArea High School. 1155 North Union Street, Middletown, PA 17057, on Monday, November 18,20 13 at 7:00 o'clock P.M., prevailing time, for the purpose of reviewing all relevant mattersrelating to the construc tion of the new Middletown Area High School ( the Project ).

A description of the Project, including facts with respect to educational, physical,administrative, budgetary and fiscal matters related to the Project, wi ll be presented and will beavailable for considerat ion at such public hearing and from October 29, 2013, until such hearingduring business hours of the School District at the Administration Offices of the MiddletownAres School District located at 55 West Water Street, Middletown, Pennsylvania, 17057.The Board of School Directors of the School District by resolution duly adopted hasauthorized a maximum project cost of $40,305,454 for the entire project and a maximumbuilding construction cost of $34,852,801 for the new building construction portion of the

project.This public hearing is being held pursuant to requ irements of the Pennsy lvania SchoolCode.

Manner by which a resident may gain agenda time or submit written testimony or both:I . There will be an item on the hearing agenda at which time individuals may askquest ions, or make commcnts and suggestions related to the Project.2. Although it is not necessary for individuals or groups to be placed on the agenda inorder to offer comments or questions at the hearing, any individual wishing to be formallyincluded in the agenda at the public hearing on the Project should submit a written request to be

on the agenda to the Superintendent of Schools, Middletown Area School District, 55 WestWater Street, Middletown, Pennsylvania, 17057, by November 18 2013 giving name, addressand phone number of individual or group making the request.3. After the Act 34 Hearing, individuals may submit written comments or testimony tothe Superintendent of Schools, at the address above, concerning the proposed project until 12:00noon, December 18 20 13

Middletown Area School District

act 34 hearing booklet

Documents