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Montoursville board sets cap on school construction, authorizes Act 34 public hearing
Summary
The Montoursville Area School Board voted to set a maximum building construction cost of $7,899,162, authorize preparation of the Act 34 booklet and hold a public hearing; the resolution passed by roll call with seven yes votes and two absences.
The Montoursville Area School Board on July 15 approved a resolution establishing a maximum building construction cost of $7,899,162 and authorized staff to prepare the Act 34 booklet and hold the statutorily required public hearing. The roll-call vote recorded seven yes votes; two members were absent.
Scott of Crown Truth Associates told the board that Act 34 requires a public hearing whenever a project increases a public school facility by more than 20% and that the booklet will include project need, options considered, floor and site plans, and state-formatted cost calculations. "That is what you'll be approving on the resolution tonight," he said, describing the maximum-building-cost figure and the state reimbursement forms the district will use.
Scott presented the financial overview the booklet will show: a proposed maximum building construction cost of $7,899,162; other project costs (soft costs, contingencies, site work, financing fees) of about $16,000,000; and a total maximum project cost near $23,900,000. He cautioned the board that if bids exceed the approved building construction cost by more than 8%, state rules require a second Act 34 hearing. "If you go beyond that cost on bid day more than 8%, you have to have a second Act 34 here," he said.
Scott and district staff said they are working to reduce the project cost through alternate bid line items and other value-engineering measures so the district can accept needed elements only if they fall within budget. The board also heard that the Act 34 public hearing will be recorded by a stenographer, the booklet must be advertised at least 20 days before the hearing, and the district will accept written comment during a post-hearing period.
The resolution authorizes the district to present the maximum building construction cost and to proceed with the statutory hearing process; the board did not approve construction contracts or award bids at the meeting. Next steps are finalizing the Act 34 booklet, placing the required public notice, and scheduling the hearing date.
