I have received a lot of emails regarding the monthly costs presented at the forum. The following post is on the High School Renovation Blog to explain how the numbers were arrived at:
"During the Community Forum presentation a slide was included to show what the range of project costs would look like in terms of monthly tax increases for a $225,000 home in Mt. Lebanon (the average price of a home sold here in 2007). The numbers are based on bond schedules prepared by the District’s financial advisors using municipal bond rates as of July 18, 2008 and assuming State reimbursement of 16% of the cost of the bond payments. Based on that information, a $90 million project would cost a homeowner about $45 per month, a $110 million project would cost that same homeowner about $55 per month, and a $130 million project would cost about $65 per month."
There were some residents that were confused a bit by the projected monthly numbers juxtaposed against the total project cost. I believe the above information mostly solves that mystery. The post with the linked spreadsheet I had earlier did not include this 16% reimbursement rate.
Thanks for reading.
James
Showing posts with label renovation. Show all posts
Showing posts with label renovation. Show all posts
Saturday, July 26, 2008
Wednesday, July 23, 2008
Forum Update
The School Board held the Community Forum on the High School Project last night. There was a wealth of information that was distributed. The documents given out last night is available now on the MTLSD website.
Today I will give an overview about what was talked about last night and later I will post at length about each of the options presented.
There were really four options presented at the meeting last night. Dollar estimates were given last night for each of the options but really, those numbers are still so early in the game (we still do not yet have a Construction Manager for the project) that they really are just educated guesses at this point. I think we ought to take the estimates and give them a range of +-10%. So with that, these were the options presented.
Option 1 was a renovation of the existing structure. This option would essentially bring the existing structure up to code and fix the problems that exist. It would address the seriously outdated mechanical systems in the building and provide for asbestos abatement throughout the structure. I like to compare this option to what was recently completed at all of our elementary schools. Estimated cost of this option was $77.8 million.
Option 1A was a complete renovation with additional significant improvements to certain parts of the existing structure. While this would not include a 'new' building, it would completely change the current Administration building into a learning center for the future while keeping the rest of the school largely the same. Estimated cost of this option was $97.3 million.
Option 2 was a plan to construct a largely new 'wing' of the school. This option would keep intact the existing front on Cochran Road of the Auditorium, Little Theatre, and the current face (B Building) of the school. Buildings behind the front would be demolished in a phased approach that would lead to the large majority of classrooms being held in the new wing built in place of the demolished buildings. This plan would create a 67% new school and 33% renovated school. Administration would be moved into the B-Building. Estimated cost of this option was $118.3 million.
Option 3 was a plan to build a new school. The new building would be built largely on the upper parking lot and practice fields. This would involve very little phasing. Once the construction was complete we would simply move students to the new building. This option also renovates the B-Building on Cochran Road. Administration would again move into this building. Estimated cost of this option is $131.6 million.
Last night was the first time the Board really had a chance to sit down and see all the information presented at one time. It was also the first time that we had a chance to see estimated costs. I think that, given our current economic environment, we all understood that the estimates would come in higher than what the Dejong study showed in January 2007.
Last night it was mentioned during the meeting that for every $25 million we need to finance for this project, it would equal roughly a 1-mill increase in taxes. So a $100 million project could force a 4-mill increase and a new $131.6 million new school would surpass 5 mills. Actually, that rule of thumb is a bit high, but still, these are not insignificant numbers. The page in the presentation that lists monthly costs includes the 16% State reimbursement rate. That monthly number equated to a total millage increase of 3.5 mills, not more than 5. I was able to create a spreadsheet that approximates these numbers however, bond coupon rates over the term of the bond will not be fixed as a simple PMT calculation in a spreadsheet would be. As I get more information on the possible bond issuance, I will let you know.
While it is extremely important to get information out to residents about how this project will effect their pocketbooks, we need to also have the vision to do what is right for our students and our community.
That's all for now. I am going to review the documents again, listen to feedback and post more later this week.
James
Today I will give an overview about what was talked about last night and later I will post at length about each of the options presented.
There were really four options presented at the meeting last night. Dollar estimates were given last night for each of the options but really, those numbers are still so early in the game (we still do not yet have a Construction Manager for the project) that they really are just educated guesses at this point. I think we ought to take the estimates and give them a range of +-10%. So with that, these were the options presented.
Option 1 was a renovation of the existing structure. This option would essentially bring the existing structure up to code and fix the problems that exist. It would address the seriously outdated mechanical systems in the building and provide for asbestos abatement throughout the structure. I like to compare this option to what was recently completed at all of our elementary schools. Estimated cost of this option was $77.8 million.
Option 1A was a complete renovation with additional significant improvements to certain parts of the existing structure. While this would not include a 'new' building, it would completely change the current Administration building into a learning center for the future while keeping the rest of the school largely the same. Estimated cost of this option was $97.3 million.
Option 2 was a plan to construct a largely new 'wing' of the school. This option would keep intact the existing front on Cochran Road of the Auditorium, Little Theatre, and the current face (B Building) of the school. Buildings behind the front would be demolished in a phased approach that would lead to the large majority of classrooms being held in the new wing built in place of the demolished buildings. This plan would create a 67% new school and 33% renovated school. Administration would be moved into the B-Building. Estimated cost of this option was $118.3 million.
Option 3 was a plan to build a new school. The new building would be built largely on the upper parking lot and practice fields. This would involve very little phasing. Once the construction was complete we would simply move students to the new building. This option also renovates the B-Building on Cochran Road. Administration would again move into this building. Estimated cost of this option is $131.6 million.
Last night was the first time the Board really had a chance to sit down and see all the information presented at one time. It was also the first time that we had a chance to see estimated costs. I think that, given our current economic environment, we all understood that the estimates would come in higher than what the Dejong study showed in January 2007.
Last night it was mentioned during the meeting that for every $25 million we need to finance for this project, it would equal roughly a 1-mill increase in taxes. So a $100 million project could force a 4-mill increase and a new $131.6 million new school would surpass 5 mills. Actually, that rule of thumb is a bit high, but still, these are not insignificant numbers. The page in the presentation that lists monthly costs includes the 16% State reimbursement rate. That monthly number equated to a total millage increase of 3.5 mills, not more than 5. I was able to create a spreadsheet that approximates these numbers however, bond coupon rates over the term of the bond will not be fixed as a simple PMT calculation in a spreadsheet would be. As I get more information on the possible bond issuance, I will let you know.
While it is extremely important to get information out to residents about how this project will effect their pocketbooks, we need to also have the vision to do what is right for our students and our community.
That's all for now. I am going to review the documents again, listen to feedback and post more later this week.
James
Monday, June 23, 2008
High School Project Update
I realized I have spent a lot of time typing around the topic of the High School Project and haven't given many details. The reason for this is that there is still nothing concrete to say. However, there was an administrative briefing tonight where we received an update from the architects about where they are in the project and what possible solutions may be proposed for the Board meetings coming up in July and August.
There are a couple of bits of information I will share and I urge readers to keep in mind that nothing has been decided yet. There will be many opportunities for people to voice their opinions throughout this process via email, in person, or on the phone. The High School Project Subcommittee has set up the following link to make it easy for your voice to be heard by the entire Board:
http://forms.mtlsd.org/DisplayForm.asp?FORMID=1187
The presentation tonight will be repeated tomorrow night for the Design Advisory Committee. There should be a revised presentation of what was seen tonight at a discussion meeting in the near future.
We were presented with a number of possible scenarios with regards to the project. The options by no means are final, they were presented as conceptual ideas. There will be much discussion about what the final form of the scenarios will take to come. For now, it is important to note that the options that were described were in line with what the Dejong study had said months ago. There will be options to renovate, building partly new, and build completely new. What was presented last night was variations on the above themes. There were no costs given with any of the above mentioned possibilities.
Keep in mind that you will have the opportunity to address the Board at any upcoming meeting. Here are the scheduled meetings coming up:
So there you have it. That's what I know at this point. There will be tours of the High School that take place later this summer and there will be more opportunities for community input than just the meetings mentioned above. As those dates get solidified, I will be sure to update them here.
Real quick update, I went over to Josephine Posti's blog and found this link with a slideshow of pictures at the high school. Make of it what you will.
James
There are a couple of bits of information I will share and I urge readers to keep in mind that nothing has been decided yet. There will be many opportunities for people to voice their opinions throughout this process via email, in person, or on the phone. The High School Project Subcommittee has set up the following link to make it easy for your voice to be heard by the entire Board:
http://forms.mtlsd.org/DisplayForm.asp?FORMID=1187
The presentation tonight will be repeated tomorrow night for the Design Advisory Committee. There should be a revised presentation of what was seen tonight at a discussion meeting in the near future.
We were presented with a number of possible scenarios with regards to the project. The options by no means are final, they were presented as conceptual ideas. There will be much discussion about what the final form of the scenarios will take to come. For now, it is important to note that the options that were described were in line with what the Dejong study had said months ago. There will be options to renovate, building partly new, and build completely new. What was presented last night was variations on the above themes. There were no costs given with any of the above mentioned possibilities.
Keep in mind that you will have the opportunity to address the Board at any upcoming meeting. Here are the scheduled meetings coming up:
- June 24- Design Advisory Committee input on preliminary Alternative Approaches
- July 21- Board Review of revised Alternatives
- July 22- Community presentation of Alternatives
- August 18- Community comment at pre-Board meeting
- August 27- Design Advisory Committee meeting for community input
- Sept 8- Board discussion on a recommended alternative
- Sept 15- Board approval of recommended alternative
So there you have it. That's what I know at this point. There will be tours of the High School that take place later this summer and there will be more opportunities for community input than just the meetings mentioned above. As those dates get solidified, I will be sure to update them here.
Real quick update, I went over to Josephine Posti's blog and found this link with a slideshow of pictures at the high school. Make of it what you will.
James
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