VCSD Capital Project Community Forum Sept 25, 2017

Planning Process for the Capital Project The District received the Building Condition Survey (BCS) report from its architect in 2016 This report details many important repairs and upgrades that need to be done to the district’s facilities The district’s facilities committee reviewed the BCS and prioritized items for inclusion in the Capital Project The facilities committee has also reviewed potential items regarding bus maintenance, science and technology labs, and potential athletic facilities improvements The district has significant capital debt from the 2001 project coming off the books in the next 3 years, making this a good time to consider a capital project

Building Condition Survey Items to be Included in the Project Estimated Cost Background Information New Heating System Boilers for All Schools $1,493,000 Current boilers are 25 to 30 years old New Roof on Older Section of the ES $511,000 Roof section 20 years old, out of warranty New Windows in the Older Section of the HS $533,000 Windows date from 1950s and 60s Unit Ventilators in the Older Section of the HS $564,000 Ventilators date from 1950s and 60s HS Temperature Control System $373,000 System obsolete – dates from 1950s – 70s MS/HS Fire Alarm System $498,000 System dates from 1970s, not addressable PAC, LGI, MS Gym upgrades $249,000 LED Lights for PAC, sound deadening for LGI, LED lights for MS gym MS/HS Kitchen upgrades $118,000 Replace old steam table and oven Total for all BCS Items $4,842,000 Upgrade and replace old items

Project Items to Improve Instructional Spaces The HS Earth Science Labs are in need of improvement due to cramped space and inefficient layout. Renovation and expansion of the 2 labs is estimated to cost $1 million. The MS Technology Lab is also cramped and inefficient in its layout. Renovation of this lab is estimated to cost $1 million. The conversion of a HS maintenance storage area to a Maker Space is being considered for Technology class use and for community use after school hours. This conversion is estimated to cost $500,000.

District Enrollment Trends Capacities of the current school buildings as determined by the District Facilities Committee are as follows: Elementary School – 620 students capacity (current enrollment is 530 students) Middle School – 360 students capacity (current enrollment is 260 students) High School – 550 students capacity (current enrollment is 390 students. The District contracted with the Capital District Regional Planning Commission to study the potential impact of new housing developments on enrollment

Housing and Enrollment Study A study by Capital District Regional Planning was done on the new housing developments in our school district to determine the impact on enrollment. The study concluded that the impact of the new housing developments will be as follows: 168 additional school aged children are projected to be enrolled in the district between 2018 and 2022, 34 new students annually, an average of 2.6 children per grade per year. The pattern of low population growth in the Town of New Scotland in the period of 2000 to 2016 may foreshadow lower demand for new housing in the area. The pace of development, particularly for the Hilton Road development, will have an impact on enrollment increases. Because the new developments are at an early stage, the CDRPC recommends revisiting the study in the future. If these projections prove to be accurate, enrollment would be within the building capacities for the next 5 school years; however, there is a possibility that enrollment could challenge building capacity at the ES within 10 years. Because there is no practical way to build an addition to the ES due to its location, longer term plans are being considered to cope with possible increased enrollment (more on that later in this presentation).

Bus Garage Considerations The district’s current bus garage, constructed in the 1940s and 50s, is attached to the Elementary School. The current garage has these drawbacks: The bays are not adequately sized for modern buses, and storage space for parts and tools is limited. The location of the garage near the main pedestrian walkway from the parking lot to the school is a safety concern. Bus parking and transportation employee parking at the Elementary School take up a substantial portion of the available parking, and buses are not adequately secured.

Options for Improving our Bus Maintenance Facility Cost Advantages and Drawbacks Build a new bus garage at the Satellite Fields $6.8 million (includes $2.7 million for site work) financed over 30 years Better facility located away from the ES Emergency shelter for Satellite Fields Substantial ongoing cost to finance Lease space at Albany County DPW garage Annual lease from county - cost TBD Better facility Lower cost than a new garage Stay in the current garage No additional costs Inadequate working space, buses not secure, location at ES impacts parking, traffic, and pedestrians

Leasing of Part of the DPW Garage Leasing part of the Albany County DPW garage is the most safe, efficient, and cost effective option for our bus maintenance The savings to our taxpayers (vs. building a new garage) are estimated at $3 million over 30 years We will need to make an agreement with Albany County to formalize this arrangement, and we hope to move our bus maintenance to their facility in the summer of 2018 We are also pursuing options with Albany County to park all of our buses near the DPW garage, thereby securing our buses and getting them off of our school campuses

Overall Estimated Capital Project Cost (as of now with no new bus garage) Project Items Estimated Costs Building Condition Survey Items $4.8 million Science and Technology Lab Renovations $2.5 million Total Estimated Project Cost $7.3 million Possible added items for athletics: bleachers with pressbox, tennis court surface replacement, track resurfacing Cost TBD

Capital Reserves for the Project In May, the district’s voters approved a new capital reserve to help fund the local share of the upcoming project The new reserve may receive up to $500,000 per budget year to a maximum of $2 million total in the new reserve The district has an older capital reserve that contains $1.1 million At the start of this budget year, we were able to fully fund the new reserve for the year with a $500,000 contribution taken from the district’s unassigned fund balance, while still maintaining all of our allowed unassigned balance. Thus, we currently have $1.6 million in capital reserves toward a goal of at least $2 million in total capital reserves to put toward the local share of the project

Estimated Project Impact on Annual Budget (assumes a 15 year repayment schedule) Project Total Cost and Total Capital Reserves Net Impact on Capital Expenses per year (compared with 17-18) Current Net Capital Expenses in the 2017-18 budget $180,000 $8 million project - $2.0 million reserves $100 - $120 thousand reduction $10 million project - $2.0 million reserves $40 - $60 thousand reduction $12 million project - $2.0 million reserves $10 - $30 thousand increase $14 million project - $2.0 million reserves $160 - $190 thousand increase

Next Steps in the Planning Process Discuss capital project items at Facilities Committee meetings and faculty meetings, and report to the board of education at the regular board meetings Conduct Capital Project forums in September (scheduled for Sept 25 at 7PM), November, January, and March Board adopts Capital Project resolution at its March 2018 meeting Voters decide on the Capital Project at the May 2018 vote The project will be submitted in phases to State Ed. beginning in fall 2018 Construction is anticipated to be done in 2020 and 2021

Longer Term Considerations The district is exploring options to cope with the longer term enrollment growth that may occur An option that we are examining is the purchase of land adjacent to the Satellite Fields that would offer possibilities for future expansion – pre-engineering work is being done to assess the suitability of these properties for use by the district The possibility of a new school building, if it is needed to accommodate increased enrollment, would most likely be 8-10 years in the future. One option a future board of ed. could consider is a grades 3-5 Elementary School on the current satellite fields, with the existing Elementary School becoming a grades K-2 school. If the board decides to proceed with land purchase, the board would need to pass a resolution to present a separate ballot question to voters on the May 2018 ballot to approve the purchase There would be no work done on the land immediately as part of the Capital Project to be voted on in May 2018 – the property would be for future expansion if it is deemed necessary at a later time

The Importance of Capital Reserves In order to responsibly fund capital projects, adequate capital reserves are necessary For aidable capital projects, the district currently has a 60% state aid ratio. This means that 40% of the project must be funded by local revenues. For the approximately $8 million project that we will vote on in May 2018, the local share would be $3.2 million. With our current $1.6 million in capital reserves and 3 more budget cycles to contribute up to $500,000 per cycle, the district will have ample reserves to fund this project with a modest amount of borrowing A potential larger future project in 8-10 years will require another capital reserve with even greater funding that must be contributed to over an extended period of years – this will require planning and fiscal discipline to make substantial contributions to the capital reserve over many budget cycles