Carroll Valley Community and Education Complex

GREATER CARROLL VALLEY COMMUNITY AND EDUCATIONAL COMPLEX

Progress Update

August 5, 2016

Carroll Valley Borough Council

GREATER CARROLL VALLEY COMMUNITY AND EDUCATION COMPLEX 1

MONTHLY UPDATE ON PROGRESS – AUGUST 5, 2016

Work completed in July includes the following:

• Footer rebar and concrete complete • Foundation CMU walls • Well drilling • 2” Water line • Force Main Relocation • Slab prep • Slab pour scheduled for August 8 & 9th


his document has been prepared in an effort to reflect on where the Borough is in the municipal building process, with the intention of compiling all information available to make it easier for the public to review and understand the details of the project.

THE PROJECT DESIGN

The current layout, with a reduced size, as was presented at the February 16, 2016 Special Meeting of the Borough Council. This design reduced the size of the building by 1,246 square feet:

Gross Building Area: 11,440 GSF

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SUMMARY

This project, in various forms, has been in the planning stages since around 2005, but an acknowledgement of the need for additional space can be traced back as far as 1999. This project has been very carefully considered at each stage of the process, in an attempt to provide the community with a functional facility which will serve the citizens of Carroll Valley today and future years, without placing an unneeded burden on future generations.

The current facility is severely under-sized; is not Americans with Disabilities Act (ADA) compliant; and has both structural and environmental issues, deeming the facility unusable in the near future. These issues continue to be intensified by the passage of time.

This facility will serve the Borough administration, police, and elected officials office needs, as well as providing a new community meeting room; a branch of the Adams County Library System; and a central communications hub for use in times of disaster. There will also be spaces available to the public for meeting of local organizations, or as a business hub for those who have at-home businesses or work from home and need a space for meetings or other administrative functions.

This new design incorporates additional parking for users of both the building and the park. Importantly, it incorporates the need to elevate the facility to remain dry during events of flooding.

This new facility will serve the people of Carroll Valley and allow the Borough to provide the highest quality of service at all times.


FINANCING THE PROJECT

As part of the approval process for the 2016 Budget, the Borough has earmarked $161,502 for the annual payment of the debt service towards this project. On line item 01.409.849 of the 2016 Budget, the Council has budgeted $70,000, with the remaining $91,502 being earmarked in the Capital Reserve Budget. The total project cost is $3,723,307 (Low bid plus costs), and the Borough could consider the following actions to fund the project:

1. Pay $1,000,000 from cash reserves. Over the last 10 years, there was strict fiscal planning administered to earmark funds for the replacement of the current facility, based each year on disciplined spending strategies, permitting the Borough to save money to put towards completing this project.

2. Borrow $2,723,307 The Debt Service on the proposed variable interest loan from F&M Bank would be: FIRST: $5,673.56/month for 24 months (interest only period) Total cost for 2016 - $34,041.36 Total cost for 2017 - $68,082.72 Total cost for 2018 - $107,344.62 THEN: $12,217.21/month for 96 months ($146,606.52/year from 2019-2025) FINALLY: $13,463.93/month for 204 months ($161,567.16/year from 2026-2043)

The 2016 Budget was crafted to highlight that this project can fit within the constraints of our limited financial resources. Not until 2026 would this project use the entirety of the amount set aside in 2016. With expected revenue growth offsetting expected inflationary increases in costs, the council should feel confident that this project is affordable not only today, but for the life of the loan.

REDEVELOPMENT ASSISTANCE CAPITAL PROGRAM

The Redevelopment Assistance Capital Program (RACP) is a commonwealth grant program administered by the Pennsylvania Office of the Budget for the acquisition and construction of regional economic, cultural, civic, recreational, and historical improvement projects.

The program requires a 50% match, so with project costs of $3,723,307 and an appraised value for the land of $600,000, the Borough is eligible for the full amount allocated of $2.1M. If the Borough is fortunate enough to get the entire amount requested, the debt service could be lowered significantly, and could possibly be funded without any annual transfers from the General Fund. With a favorable grant award, the Borough would:

1. Pay $1,000,000 from cash reserves 2. Receive $2,100,000 from RACP Program


3. Borrow $623,307. This would cost approximately $40,000 annually, and could be paid solely from the capital fund, freeing up $70,000 for General Fund purposes, and $39,502 annually in the Capital fund for other projects.

A grant award decision has been delayed as a result of the Commonwealth of Pennsylvania’s Budget Impasse. Preliminary indications have the Borough feeling optimistic in its chances with this competitive grant program.

FREQUENTLY ASKED QUESTIONS ABOUT THE PROJECT

WHY DO WE NEED A NEW BUILDING?

There are various reasons why the existing building is no longer adequate. Some of those items, in no particular order:

1. Crowding/insufficient size 2. ADA compliance issues 3. Water damage / mold problem 4. Structural Issues (Foundation, truss design) 5. Aging mechanical, electrical, and communication equipment 6. Non-compliance with current building code requirements 7. Various security needs of a police organization 8. Inefficient Design

HOW HAS THE SIZE OF THE PROPOSED BUILDING BEEN DETERMINED?

The Borough has provided a basis for determining our “needs” via an Architectural Needs Analysis and Feasibility Study which was completed in 2013. There are portions of the project which have not been identified in those studies, such as the inclusion of the Library and the porch/stage area, but the spaces provided in the design for the administrative, police and community rooms were a result of this 3rd party study. As currently designed, these portions of the building account for 9,640 square feet of the total, which is 860 square feet less than the 2013 study recommended.

HAS THE BOROUGH CONSIDERED OTHER ALTERNATIVES?

The Borough, via the 2013 Architectural Needs Analysis and Feasibility Study, has reviewed several alternatives to the current plan. Utilizing a detailed study of 4 alternatives, the study concluded that the most cost efficient solution would be the construction of a new building on the existing site.

WHY DOES CARROLL VALLEY NEED ITS OWN LIBRARY?

The proposed Library is not an additional library in the community, but rather a project to relocate the current Adams County Library Branch. This location offers the Library several modern amenities which are not available at its current location. Further, the Library as agreed to pay rent for the space, in line


with its current arrangement. The Adams County Library System anticipates being able to expand its program offerings, along with many other additional services to the community.

The Library will be paying its own utility costs, as well as paying rent. In the long-term, the inclusion of this space to the project will give the Borough flexibility if the need arrives for additional space for Borough operations.

WILL THERE BE INCREASED COSTS TO OPERATE AND MAINTAIN A NEW, LARGER FACILITY?

Inherently, there will some costs which increase, while others are projected to decrease. The current plan is to continue to maintain and operate the building as we currently do, with the help of our full-time and part-time maintenance department. The current design incorporates the use of energy efficient design elements which should help to minimize the ongoing operation costs, such as geo-thermal HVAC and high efficiency lighting.

WILL NEW EMPLOYEES BE NEEDED TO HELP MAINTAIN AND OPERATE A NEW, LARGER FACILITY?

It is not anticipated that any new hires will be necessary due to this project.

Documents

Carroll Valley Community and Education Complex