Sunday Update - Press Release
State High Vision
State High VISION
Contact Information:
Paul Suhey or Patricia Kleban, Co-chairs
State High VISION
FOR IMMEDIATE RELEASE: May 13, 2007
Bids on the high school project will trigger a public referendum
State College, PA – State High VISION, a community group asking the SCASD board of directors to stop and re-evaluate the proposed renovation plan for the State College Area High School has reviewed the bid documents submitted to the district on May 8, 2007 and believes that projected costs now trigger a taxpayer referendum.
Act 34 of 1973, the Taj Mahal ACT, requires a second public hearing and/or a referendum on a project if contractor bids exceed project estimates by 8% or more. The project bids, released to the public on May 8, 2007, indicate the project will exceed the “maximum project cost” of $101, 999, 950 established by the district in Plan Con D, and advertised to the public at the ACT 34 hearing in July 2007, by $18 million or approximately 18%.
"Based on an analysis of the bid data and the PlanCon documentation process, we estimate that the Maximum Building Costs for the SCASD High School Project are almost $80,000,000; $11.5 million over the amount that sends this project to a second Act 34 public hearing” according to Joe Fedeli, Certified Public Accountant and treasurer for State High Vision. “More importantly, the costs are estimated to be almost $13,000,000 over the threshold for a referendum.”
Of the 13 bid packages, the district received only one bid on 3 of the general or largest bid packets. These bids cannot be adjusted unless the bidding process is restarted to permit fair market competition.
“Obviously, we are pleased with the opportunity for a referendum” said Paul Suhey, co-chair of State High Vision. “This gives the public another chance to weigh in on the project. At the last hearing, we heard10 and a half hours of testimony when the project was promised to cost no more than $102 million. With this increase, as well as the other costs associated with the project, we are likely looking at $130 million or more. We invite the school board to discuss the need for a public referendum on this project at their Monday work session and look forward to hearing their plans to allow democratic public input into the discussion.”
In recent district presentations to the public, additional costs of temporary parking lots, athletic phasing, busing during the transition, etc. have been added to the project but will likely be shifted to the district’s operating budget rather than the overall project budget. Significant costs of construction period interest on the borrowed money (approximately $9 million more than the district is reporting to the PDE) and the cost of owner-controlled insurance on the project (an additional $3 million), will significantly push the total project cost.
“We think that residents and taxpayers need to have this information” said Patty Kleban, State High Vision co-chair. “They promised us $102 million for this MEGA SCHOOL project before they took out the costs of razing the South Building and putting in athletic fields. With board’s underestimates of the total project cost plus the additional cost of the artificial turf and all the phasing costs, this project is escalating out of control in terms of the impact on our taxes. I am really concerned about how much will end up in the district’s operating budget and we won't know about it. ”
A board work session is scheduled for Monday, May 14 at 7:00 in the Mt. Nittany Middle School library to review contractor bids.
An analysis of bids in comparison to projected costs submitted to the PA Department of Education in Plan Con are attached.
About State High VISION: Comprised of State College area community leaders, parents, teachers and residents, State High VISION is a volunteer, non-profit organization requesting the SCASD board of directors STOP and ReEVALUTE the proposed $102+ million renovation of the current State College Area High School. The group, which welcomes the expertise, common sense and wisdom of all community members and friends, invites you to visit its Web site at www.statehighvision.org.
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