At the Haddonfield Board of Education special meeting on Thursday, Nov. 19, the board took the first step in officially going for a bond referendum after many long months.
The five members of the board who could make it that night approved the school district to submit documentation for the bond referendum to the state and local agencies and call for a special election on Tuesday, March 8. The referendum proposes a total of $40.9 million with an estimated yearly tax impact of $287 for the average home assessed at $484,225.
This special meeting was held to present and vote on the finalized scope of the bond referendum that has been discussed by the board over the last several months.
“We are going to ask the board tonight to vote on the scope of work. What that means is we are committing to do certain projects. There will also be a maximum that the board can spend on those projects. We will talk about the sorts of things that we want the referendum to accomplish. There will be further refinement when it gets down later in the process to issues like how the referendum is going to be worded, what the different questions are going to entail and costs. We have that laid out for people here. But there could be changes to that after tonight. Our purpose here is scope,” said Glenn Moramarco, BOE president and Long Range Planning Committee chair.
The criteria for the scope inclusion was for non-functional and/or deteriorating conditions requiring immediate attention, deteriorating components in danger of requiring upgrades that cannot be addressed within the constraints of the operating budget, security and safety considerations, and select program needs at HMHS based on enrollment demands.
“We defined immediate to be either right now or in the next several years, certainly the next five years,” Moramarco said.
The $40.9 million is down from the proposed $51.2 million in October. The Long Range Planning Committee cut costs and less pertinent projects based on feedback from the public and the board. The $40.9 million was split between one large question and a second question split into three parts.
Question 1 was on the building envelope, or exterior, HMHS B-wing reconstruction, site work, electrical upgrades, special systems upgrades, HVAC repairs and upgrades, program renovations at HMHS, and HazMat and soft costs. The total cost of Q1 was $32 million with an estimated cost state share of $10.9 million and the local share of $21.1 million. The average yearly costs of Question 1 would be $225 per year.
For anything on this bond referendum to happen, Q1 must be voted successfully through.
Question 2 part A would be for air-conditioning to be put in all classrooms and building automation system control upgrades to all schools. The Q2A cost is $2.96 million with an estimated state share of $1 million and the local share of $1.96 million. The average yearly costs for the average home would be $20 per year.
Question 2 part B would be for critical upgrades to the stadium and track, and new stadium lights and poles. The Q2B cost is $1.85 million with an estimated state share of $148,750 and the local share of $1.7 million. The average yearly costs for the average home would be $19 per year.
Question 2 part C would be for building envelope work deferred from Q1, which needs to be addressed due to ongoing deterioration, but the conditions are not as critical. Moramarco warned that residents shouldn’t be surprised if the school comes back for another referendum on these items in the future if the March referendum fails. The Q2C cost is $4 million with an estimated state share of $1.36 million and the local share of $2.65 million. The average yearly costs for the average home would be $23 per year.
All these estimates were made on the assumption of 20-year bonds at 3.5 percent interest. The annual cost per household could be reduced further with 25-year bonds at 3.75Â percent.
The cost estimates were developed by HPS architect Becica and Associates, Preferred Construction Management, Hill International and state contract vendors. The estimates include allowances for hazardous material abatement and 25 percent project “soft costs” per the industry standards for renovation work in old buildings. They also include a state debt service aid estimated at 34 percent, though that is not set in stone.
“We like to think these estimates are conservative. Meaning they are higher than we hope the cost will come in,” Moramarco said.
He also wanted to stress all of the money for the referendum can only be used on the projects approved. It is illegal to use any surplus funds after construction to fund projects not approved. Also, excess funds will not be bonded.
Members of the board thanked everyone who helped to cut the costs of the referendum.
The full board was not there that night as four members were absent — Mary Fagan, Susan Kutner, Heather Paoli and Drew Hansen. The other five members unanimously passed the three resolutions that the school district submit documentation for the bond referendum to the state and local agencies, HPS reimburse itself for certain expenditures relating to various capital improvements out of the proceeds of the bonds, and call for a special election on Tuesday, March 8 for the referendum.
This presentation, as well as background information and pervious presentations on facilities conditions, can be found online at www.haddonfield.k12.nj.us/BOE/referendum.html. For a full video of the presentation made that night, go to the Haddonfield Civic Association’s Vimeo page at vimeo.com/user2961532.
