North Allegheny School District 2021-2022 Capital Funding Plan November 18, 2020
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North Allegheny School District 2021-2022 Capital Funding Plan November 18, 2020 North Allegheny Board of School Directors RICHARD McCLURE – President ANDREW CHOMOS – Vice President LIBBY BLACKBURN MARCIE CROW KEVIN MAHLER ALLYSON MINTON SCOTT E. RUSSELL ELIZABETH WARNER SHANNON YEAKEL PATRICK T. O’TOOLE, Ed.D. Acting Superintendent North Allegheny School District Capital Funding Plan Prepared by: ROGER SECHLER Director of Business Operations RICHARD PLATTS, CETL Director of Technology and Innovation ROBERT BOZZUTO Athletic Director WILLIAM KIRK Assistant Director of Project Management & Infrastructure ROBERT HETZEL Assistant Director of Facilities CHARLES CUBELIC Assistant Director of Transportation and Operations NORTH ALLEGHENY SCHOOL DISTRICT CAPITAL FUNDING PLAN 2021-2022 TABLE OF CONTENTS Page Executive Summary and Background I. Background 1 II. Capital Funding Plan Components 2 III. Completed and Ongoing Projects/Purchases 3 IV. Project Justifications for Inclusion in the 4 2021-2022 Capital Funding Plan V. Funding Needs of Projects 5 2021-2022 Athletics/Facilities/Security Upgrades/Technology Services/Transportation Projects/Purchases Appendices A. Five-Year Plan: Athletics/Facilities/Security Upgrades Projects B. Six-Year Plan: Technology C. Transportation Fleet Purchase Plan and Inventory D. Preliminary Summary of Funding Sources of Capital Projects 2021-2026 E. District Debt Profile F. Capital Investments History – 2015-2020 CAPITAL FUNDING PLAN EXECUTIVE SUMMARY AND BACKGROUND 2021-2022 I. BACKGROUND The North Allegheny School District’s Capital Funding Plan supports investments in the maintenance and replacement of the District’s buildings, grounds, buses, and support vehicles. Based on the yearly audit performed by Maher Duessel dated June 30, 2020, these assets are valued at: Building & Site Improvements $256,171,803 Vehicles $ 11,152,870 Total $267,324,673 The following guidelines remain in effect for the 2021-2022 school year and the Administration will evaluate funding the various projects as outlined below. For projects funded by the Capital Reserve Fund and other capital funds, the following criteria are presented: • All projects will be evaluated to ensure a safe and healthy environment for the delivery of education. • A five-year timeframe is proposed in projecting the future capital funding needs of the District. • Projects and investments are considered based on the following guidelines: ➢ Health and/or Safety Improvement/Repair ➢ School Opening Requirement - Essential Maintenance/Repair/Improvements ➢ Enrollment Increases/Routine Maintenance/Repair/Improvements ➢ Reorganization or Redistricting Increase as Needed ➢ Recommended by Administration at Executive Council Level ➢ Action Plan Initiative 1 II. CAPITAL FUNDING PLAN COMPONENTS General Fund The General Fund is used to fund small capital improvements and ongoing maintenance and repair projects at each school. The General Fund is also used to make authorized lease payments of assets on a recurring basis. Capital Reserve Fund In 1984, the District established a Capital Reserve Fund as a means to finance capital improvements or investments. The Capital Reserve Fund provides a way to minimize the impact of capital improvements on cash flow and can be used as a repository of cash for repair and replacement of plant, property, and equipment when these improvements become necessary. This fund is also used to support the cost of emergency projects. The Pennsylvania School Code and Board Policy #620, Fund Balance, outline which projects may be supported by the Capital Reserve Fund. Projects such as capital improvements, replacement or maintenance of public works, the purchase or replacement of school buses or other vehicles, support of the District's Technology infrastructure, and other facilities improvements, are some examples of these projects. Historically this fund has not been adequately funded, however beginning with the 2019- 2020 school year, an annual transfer from the General Fund into the Capital Reserve Fund is included as part of the annual budgeting process. These funds are intended to support emergency or unexpected projects, as well as projects that do not qualify to be funded by the 2019 Bond Fund. It is expected that a transfer into the Capital Reserve Fund will be made annually in an amount sufficient to support non-bond qualified projects as well as maintain an adequate reserve for emergency or unexpected expenses. Construction/Bond Funding A bond issue is used to provide the funding for a Construction Fund. This funding is used for major facility improvement projects or purchases that exceed the normal cost parameters of the Capital Reserve Fund. In 2019, the District issued $66 million in bonds, primarily to support the additions and renovations at Franklin Elementary and McKnight Elementary Schools and the majority of the Capital Projects included for completion in 2020-2021 that qualify to be funded by this bond. The majority of projects to be completed in 2021-2022 will be supported by funds remaining from the 2019 bond issue, including deferring or re-prioritizing projects that were originally considered as part of the bond issue, and unspent contingency funds remaining from the Franklin and McKnight projects. Appendix D includes information on the costs of the Capital Funding Plan projects as a percent of the budget and the bond payments that are due in 2019-2020. 2 III. COMPLETED AND ONGOING PROJECTS/PURCHASES Below is a list of the building improvement projects that are ongoing or have been completed over the last year: Bradford Woods Elementary School • Pavement repairs, crack sealing, and seal coating playground and drive lanes • Select playground equipment upgrades • Slope toe-drain installed around the playground area • Line-striping for reconfigured student drop-off zone Hosack Elementary School • Replaced failing sections of concrete curbs and sidewalks Ingomar Elementary School • Replaced failing storm water inlet • Pavement repairs, crack sealing, seal coating and line striping Marshall Elementary School • Replaced collapsed storm water line in the parking lot • Pavement crack seal, seal coat and line strip all playground surfaces • Parking lot crack sealing • Cleaned and sealed select areas of exterior building masonry • Restored three storm water detention facilities serving the site to original condition Peebles Elementary School • Driveway and parking lot repairs and crack sealing • Restored courtyard picnic tables and patched concrete walkways • Cleaned and repointed select areas of the exterior brick • Replaced failing sections of concrete sidewalk Carson Middle School/Central Administration • Repaired the front hillside, pole light, and associated roadway • Installed a slope drain and repaired field storm water inlets • Driveway and parking lot repairs and crack sealing • Repairs and replacement of front entrance paving Ingomar Middle School • Replaced failing sections of concrete sidewalk and steps • Replaced the building chiller Marshall Middle School • Front and rear driveway repairs • Restored three storm water detention facilities serving the site to original condition • Repaired the front entrance brick pillars 3 • Cleaned and sealed select areas of the front exterior masonry North Allegheny Intermediate High School • Fully connected the freezer and cooler to emergency power North Allegheny Senior High School • Renovated the Nurse’s Office and rest room, Main Office restrooms, and constructed storage rooms on the first floor • Replaced some of the storm water piping and inlets • Replaced select variable frequency drives for chilled water and hot water pumps • Cleaned and sealed the Baierl Center exterior masonry and the Concession Stand • Replaced the HVAC equipment and removed the ceilings in the Locker Room and Weight Rooms at the Baierl Center Facilities/Transportation • Installed new tire balancing machine • Installed new bus lift Transportation • Replace six large Buses • Replace medium-sized delivery truck Technology Services • Replaced the data cabling on the first floor at NASH • Added cameras in stairwells at NASH IV. PROJECT JUSTIFICATIONS FOR INCLUSION IN THE 2021-2022 CAPITAL FUNDING PLAN The Athletics/Facilities/Technology Services/Transportation projects/purchases are presented for each department. The Administration realizes that the needs change on an ongoing basis and that projects will be re-evaluated as needed to meet these changing needs. The Administration continues to monitor the impact of Act 1 and other factors such as the pension issue and economic factors beyond the District’s control on the Budget. The Administration acknowledges that this legislation and other factors may impact the District’s ability to fund projects contained herein. The Administration has included within the 2021-2022 Capital Funding Plan, projects for the maintenance and acquisition of capital assets, over a five-year period, that culminates in 2025-2026. The Administration has prioritized the projects and purchases that are included as part of the Capital Funding Plan based on the following categories: A = Projects and purchases that need to be done in 2021-2022. B = Projects and purchases that should be done in 2021-2022. C = Projects and purchases that should be considered for 2021-2022. 4 For the 2021-2022 plan, priority projects are focused on projects that address know significant issues. At the building level, these projects are designed to address the systems, fixtures and rooms in most need.