The meeting was called to order by the President, Mr. Dennis C. Simmers, with the following members present:

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1 A of the Board of Directors of the Central Cambria School District was held in the Central Cambria High School Library on Monday,, at 6:33 p.m. The meeting was called to order by the President, Mr. Dennis C. Simmers, with the following members present: Frank J. Singel Marcia Yesenosky-Shaheen Jules B.Dill Don Cessna Rose Marie Sadosky Dennis C. Simmers Dr. Thomas A. Woods The following members were absent: Dr. R. Scott Magley and Patricia L. Allbaugh. Others present included the following: Dr. Vincent G. DiLeo, Superintendent Kenneth Bussard, Central Cambria High School Principal Kimberly McDermott, Central Cambria Middle School Principal Susan Estep, Director of Curriculum, Cambria Elementary School Principal Mary Ann Kaschalk, Business Manager Jo-Ann Semko, CCEA President Zoe Babe, Solicitor Richard O Donald, AIA, Kimball Architect David W. Gable, Construction Administrator, L.R. Kimball David Hurst, Altoona Mirror Ashley Watt, Mainline Newspapers Susan Evans, The Tribune-Democrat Janet E. Gillen, Recording Secretary ar A copy of the sign-in sheets are attached and made part of these minutes. Board President Mr. Dennis C. Simmers asked everyone to stand and pledge allegiance to the American Flag. PUBLIC COMMENTS Agenda Items Board President Mr. Dennis C. Simmers offered public comment on any agenda items on this evening s agenda. No public comments were offered. Mr. Simmers announced that the purpose of this is to fulfill the requirements of PlanCon F, Attachment C, Post-Bid Opening Certification, for submission to the Pennsylvania Department of Education, for the Middle School Addition and Alterations to the Central Cambria High School project. Upon PDE approval, District can formally award bids for the following disciplines: General Construction Work; Plumbing Construction; HVAC Construction; Electrical Construction; and Casework Construction. Mr. Simmers invited Richard O Donald, Project Manager, L.R. Kimball, to the floor to give a presentation on the requirements

2 of PlanCon F, Attachment C, and to review the bid alternates. Mr. O Donald introduced Mr. David Gable, Construction Administrator, L.R. Kimball, who will be the eyes and ears of the Middle School project, and will work in conjunction with Mr. O Donald throughout the project. The following items were discussed: Generally, the bids came in well, with a strong representation of bidders. Bids came in 12% - 14% under the last estimate. The purpose for tonight s meeting is to work through PlanCon Part F, Attachment C, for submission to the Pennsylvania Department of Education, as well as selecting alternates for the project. Alternates were provided in the case that bids came in higher than expected. Mr. O Donald explained each alternate to the Board Members. The Special Projects Committee recommended the following alternates: 2

3 Mr. Don Cessna asked what the Special Projects Committee thought process was to not recommend Alternate #17, add Geothermal Heat Pump System. Mr. Dennis Simmers responded that an acceptable Return on Investment could not be determined. Mr. Simmers, from his research, has found that most geothermal projects are at least partially funded by grants. The ability to add a natural gas line extension makes the geothermal alternate less attractive financially. The Committee felt that having access to both natural gas and fuel oil would provide a heating source at all times, plus it would allow the District to switch back and forth when pricing dictates. Mr. O Donald reviewed the following memo which was provided to the Directors to assist them in determining if Bid Alternate 17 and 20 are to be considerations: 3

4 Mr. O Donald added the following points: The strength of ground source heat pumps is air-conditioning. There is no pre-existing classroom air-conditioning; therefore, there is no return on investment in making the switch. Schools have a high density in population having the highest fresh air requirements. Schools are unoccupied three months out of the year. Ground source heat pumps have less tolerance to inconsistencies. If the District did not have access to natural gas, geothermal heating may be a more attractive option. Mr. Don Cessna asked Mr. O Donald if he felt comfortable going on record with his calculations of a $40, savings per year with natural gas. Mr. O Donald responded that they have been very diligent with determining these calculations. Mr. Dennis Simmers also went on record his belief that Kimball s provided their best faith analysis of the ground source heat pump analysis. Several Board members asked if would be feasible to apply for a grant to subsidize the project; however, this is not a feasible option at this point. It is a timely process, and funds are not guaranteed. To pursue this would be catastrophic to the PlanCon process. In addition, the District would potentially miss out on the current competitive bidding and interest rate environment. Mr. Richard O Donald reviewed with the Board the PlanCon Part F, Attachment C, Post- Bid Opening Certification. Mr. O Donald explained that Part F needs to be approved before contract execution. By the Board taking action tonight on Attachment C, we are basically awarding contracts contingent upon PDE approval. Contracts will not be officially awarded until receipt of final approval. Mr. Don Cessna asked Business Manager Mary Ann Kaschalk to review the General Obligation Bond Amortization Schedules provided by Joseph Muscatello, Managing Director, Public Finance, Boenning & Scattergood. Mary Ann explained that each of the three tables illustrated possible bid scenarios, i.e., without geothermal, with geothermal, with geothermal and air-conditioning. Mr. Muscatello is trying to keep our annual debt service relatively constant. Because the District has been anticipating this project, our millage is able to accept the new debt. This is recognizing the hard cost/soft cost contingency, interest rates as they are today, our reimbursement, as well as our contribution from the capital reserve of $1.5M. The Amortization schedule shows a 2.25 Mill valuation. Because we have been adjusting our millage for the past several years, we should be able to absorb the Bond issue. 4

5 SPECIAL PROJECTS COMMITTEE (Continued) Mr. Dennis Simmers moved that the requirements for PlanCon F, Attachment C, Post- Bid Opening Certification, for submission to the Pennsylvania Department of Education, for the Middle School Additions and Alteration to the Central Cambria High School project be fulfilled. Mr. Frank Singel asked for clarification of the motion. Mr. Richard O Donald responded that the Board is acting tonight to notify the State that we received the bids, we intend to move forward pending their approval, and once we receive their approval on PlanCon F, Attachment C, we may execute contracts and start the project. This motion was seconded by Mr. Jules Dill. On roll call vote, the Board Members voted as follows: Frank Singel NO Rose Marie Sadosky NO Marcia Yesenosky-Shaheen YES Dennis C. Simmers YES Jules Dill YES Dr. Thomas A. Woods YES Don Cessna YES Roll call vote resulted in a 5 Yes/2No vote, with two members absent. Motion declared CARRIED. A copy of the final version of PlanCon F, Attachment C, is made part of these minutes (page 6). SOLICITOR S REPORT Attorney Zoe Babe Solicitor Zoe Babe indicated she had no report. CCEA PRESIDENT REPORT Ms. Jo-Ann Semko, CCEA President, indicated she had no report. PUBLIC COMMENTS Non-Agenda Items Mr. Dennis Simmers offered public comments on non-agenda items. No public comments were offered. MEDIA QUESTIONS Board President Mr. Dennis Simmers offered that media questions be entertained after adjournment. Mr. Jules Dill made a motion to adjourn at 7:20 p.m. This motion was seconded by Mr. Frank Singel. The motion was unanimously CARRIED by Voice Vote of all members present. Patricia L. Allbaugh Board Secretary 5

6 Certification executed by Assistant Board Secretary Mary Ann Kaschalk due to Board Secretary Patricia Allbaugh s out-of-town status. 6

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