Act 1 Discussion: Debt Act Referendum Upper Dublins Experience

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Act 1 Discussion Debt Act Referendum - Upper
Dublins Experience
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Act 1 Discussion Debt Act Referendum

• On March 20 The Upper Dublin Community approved a
  119.2 Million of Debt to fund a new High School
  with a vote of 4,275 yes and 2,562 no.

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Our Background

• A 25 member community Task Force reviewed all
  District Facilities for a period of over a year
  led by Vitetta Architects
• The Product was a District Wide Feasibility
  Study, a recommendation that the HS was the first
  priority, and very detailed HS Educational Model

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Our Background cont.

• Our HS building is 2, 50 year old buildings
  which were later connected. The result was a
  large footprint and not particularly attractive
  or well master planned building.
• The architects cost estimate for major renovation
  and addition was 95 million and new
  construction 105 million
• We had a 70 mill parameters resolution

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Background and Process

• Based on the small cost diff, for credibility
  purposes we hired two additional arch firms to
  review our situation and create 1) a 70 mill
  renovation 2) a renovation and addition project
  and 3) a new construction option Design
  Competition
• Hire a CM to review Arch costs to insure fair and
  reasonable Arch estimates

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Process to Referendum

• New architect selected
• Cost differential of new and renovation still
  small 10 mill 10
• Based on costs and the limit of the parameters
  resolution, Board supported the Referendum
  Decision

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Rules of a Debt Act Referendum

• Adopt a resolution 45 days before the referendum.
  
• Referendum Date selected is guided by specific
  criteria. Either general, municipal, primary, or
  special election or more than 90 days away from
  other election dates
• Get Solicitor (Wisler Pearlstine), Bond Counsel
  (Saul Ewing), and Financial Advisor (PFM)
  Involved
• Public Relations or other Advisory Involved ?????

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Referendum

• Based on the perceived confusion of the May
  Primary Act 1 EIT/PIT vote and construction
  cost delay of waiting, Board decided to hold a
  separate referendum
• Contact your County Election Board (they will
  likely not be to happy)
• Referendum Question 53 Pa CS Section 8042(5) for
  wording. You can only ask 1 question no either
  or

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Referendum

• Our Superintendent and Board got the word out.
  Lots of Tours of HS. Involve Pro-Ed groups,
  Athletic, Arts, and Music Orgs
• Lots of Community Meetings
• Lots of Milestone Meetings
• Lots of Information Meetings
• Helpful to Have Pro Organizations prior to
  Referendum being Scheduled

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Referendum

• The District pays the cost of the referendum
  for us 14 voting locations cost 25K
• Talk to your solicitor about what position you
  can take
• If a no vote on the referendum you have to wait
  155 days

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Roll Of Bus. Mgr.

• Talk Real Numbers
• Keep Others Grounded
• Keep Process Honest
• Time Talking To Citizens

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Bus. Mgr. Strategy

• Do not shy away from the numbers
• Have History Under Control

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Things to Consider

• The vote was based on a schematic design. Plus
  you dont spend lots of on arch fees that if
  there is a no vote, is wasted. Minus the
  design is very likely to change - you will be
  accused of misleading and costs can change a lot.
  Implication build in a large contingency (we
  used 12.5)
• Commit to decisions early Arch Fees CM or not
  to some extent quality of construction
• District-wide Building such as HS easier

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This Is GreatBut Our Community Will Never Vote
For a Tax Increase

• Discussion

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Electoral Debt Positives

• Does not count against Borrowing Base
  Calculations
• Certain ACT 34 rules appear to go away including
  1) capacity (you can design the building the
  way you want as opposed to avoiding Taj Mahal)
  2) No Hearing

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After All This

• Call with questions Wade Coleman and Mike
  Paston Pres. of Board - 215 643 8811