03/07/2022
Don’t forget to support Article 2, Polls open tomorrow at 0600!
Bob Slater, known as coach to many of us, has played an integral role in this project. Below you will find a great letter explaining why this project is so important for our community.
If you have any questions, please do not hesitate to reach out to Bob directly.
My name is Bob Slater and I am a member of the school board speaking only for myself. I, with permission from the school board, along with the superintendent, put a district office exploratory committee together to explore options for a new district office. That has led us to the current proposed district office (bond) that will be on the warrant this March. Which was moved to the ballot on a 5-0 vote of the school board and a vote of 2-3 to support/not support this project by the school board. Your elected Budget Committee voted 7-0 to support this project.
There are a lot of questions that the community is asking. I want to address why and how this project arrived where we are today. I will leave my email and cell number and I ask that any taxpayer in our community please reach out to me on any questions or concerns you have regarding this project and the warrant article. Additionally, other questions are addressed on the project web page at www.londonderryschooldistrictofficeproject.com
This proposed development provides the following advantages: landlord would pay the taxes for the current district office space.
• A relatively cost neutral move for Londonderry taxpayers with no impact to future district planning needs
• Solve a long-needed problem for the district. A new district office has been put off multiple times over the last 10+ years to the detriment of the taxpayers and district
• Reduce the risk of further lease increases moving forward or the potential loss of the leased space
• Additional long-term Savings – Each year earlier that we leave the existing leased building is a savings of roughly $200,000 per year.
• Cost Avoidance – Utilizing this pad ready site in this location allows considerably cost avoidance by not having to acquire any land and having existing infrastructure in place (utilities, parking).
• Long-Term Vision – Show the community we are willing to explore all opportunities for any district improvements and are willing to take advantage of opportunities and adjust when they arise.
• Opportunity – We do not know if this location will be available past this year. Any future potential development may not benefit from having the land and infrastructure in place, in addition to potential construction cost increases.
-More money invested in our district – Responsible management of the school district includes every single aspect of the district. Strategic long term thinking including curriculum, operations, buildings, the developing master plan, and a potential new district office, lead to considerable cost savings long-term. These savings can be reinvested back into our students and our community in order to provide our administrators and teachers all the tools they need to make our district one of the best in the State.
The school district was required to relocate from the proposed (and former) location of the district office at Town Hall back in 2018 due to an unhealthy building. It was determined the existing facility was no longer a safe space for 23 employees to spend day in and day out as many were becoming sick due to the unhealthy air quality. When the previous district office building was built it was based on 12 employees and at the time it had housed 23 employees.
In December of 2017 to January 2018 the school district negotiated a 10-year lease with the owner of 6A Kitty Hawk. The lease was structured so that the district could exit the lease with 8 months’ notice, while paying off any remaining fit-up costs. The total fit up costs were $400,000 amortized over the 10 years of the lease, or $40,000 annually. The school board in place at the time (I was not on the board at the time) wanted this flexibility in the lease in order to make it a temporary solution and eventually find a permanent home for a new district office. The former district office had been on the capital improvement plan for a considerable amount of time without being addressed before it became too unhealthy for operation, which was another long term issue that led to this situation.
The school district is developing a 10-year master plan that started in November of 2019. The master plan’s purpose is to take a complete overview of our existing school facilities and prioritizing our short and long term district needs. This process will create a long-term plan for the entire district, including all buildings and grounds, and avoid any future short term fixes as was required with the leasing of the space at Kitty Hawk. These short term quick fixes due to poor long term management cost everyone from the taxpayer’s, the district, our administrators, teachers, and most importantly our students. Every dollar saved on smart strategic planning goes back into the backpacks of our students at the end of the day and allows our community to transparently see our long term vision which in turn hopefully increases the support for what we are trying to accomplish.
The school district hired a project management team, (Trident Group) that specializes in school district planning and development to develop the master plan with the committee. The next step was to select an architect/design team to evaluate our existing facilities, including each school, and meet with principles, administrators, and buildings and grounds employees to work with them as part of the master plan development. Who better than to help the committee and architects understand the current space and potential future space needs of each building? The architect/design team was selected in July of 2020.
One question that has been raised is if there is additional space available on school property or additional building space in one of our existing school buildings for the new district office? The conclusion in late fall of 2020 from all parties involved after discussions with the administration, building and grounds, and the architects/Trident Group, is that there was no room in any of the existing school buildings to use for a district office.
In January of 2021 I brought the findings of the committee to the entire school board and let them know that as part of the fact finding there was considered no existing potential space for the district office on existing school grounds. I then asked for permission from the board to continue researching other potential locations and opportunities for the district office as the master plan continued to be developed. The board gave me the permission. I spent several months looking at existing buildings in Town, vacant lots, and also spent time with the Town manager trying to find a location that would accommodate the required size that would be needed and that would be most fiscally responsible.
In early June 2021 after months of researching I met with the Town manager to see if it would be possible to consider rebuilding where district office was located. This location was vetted over the past 4 years by committees and residents and every time this location next to Town Hall would come back as the number one choice. The benefits are clear. The Town already owns the land. Infrastructure (utilities and parking) are already in place. In addition, it puts the district office back at the middle of Town. The estimated cost avoidance of utilizing this “pad ready” site next to Town Hall is $1-$1.5 million dollars compared to another site that may require land acquisition and full site work.
I presented this potential opportunity to the school board in late June 2021 to ask for permission to bring the opportunity in front of the Town Council to see if they would be interested in working with us on this potential project. The Town owns the land so it would require a lease agreement between the Town and School District ($1 annually) for this potential opportunity to work. The consensus from the Town Council was positive. They indicated that they would need a couple of offices and a storage room and would contribute to the project and that they wanted to be sure the exterior of the proposed building would match the existing building.
At a July 2021 school board meeting I presented the information from the Town Council to the school board and asked if they would like to move forward with this potential opportunity. The board requested that the facilities study/master plan committee weigh in on the opportunity first. In early August 2021 the superintendent reached out to the Trident group to review the new potential opportunity for the district office as they continued work on the 10 year master plan. The superintendent indicated to the school board that Trident felt it would be worth looking at the opportunity to relocate district office back in town on town owned land now while the opportunity exists. The school board approved to move forward with the district office exploratory committee, which would report findings back to them.
The Committee worked with the Trident group and sent out invites to six general contractors for them to submit RFP/RFQ on a design-build project to build a new district office. Three out of the six general contractors were interested and were given 30 days to submit renderings and budgetary numbers to move forward, along with their credentials and timelines to build the project. The committee interviewed all three general contractors and selected Eckman Construction. In early November the school board approved the decision of the committee and the cost for Eckman Construction to complete the design/drawings of the building and bring back to the board a GMP (gross maximum price) to build the project. The guaranteed maximum price is just that. The price will not be more than is requested on the warrant article.
Eckman Construction, along with the committee members and district office worked through a footprint to reduce the size of the offices they are currently in and create enough storage areas. Currently the Kitty Hawk leased property is 10,500 sq ft. The new design being proposed is 9,600 sq ft (including elevator, stairways, etc.). Two offices and storage space that will be utilized by the Town is also included in the total space. The new construction is “right sized” for the current office staff. The superintendent has given testimony that he could not see a need to increase staff in the foreseeable future. The school district business administrator has indicated the monthly/yearly costs to operate at the new district office will be slightly less than the current leased building. We are currently responsible for paying all repair and maintenance expenses, utility expenses, insurance, and common area expenses of the leased building.
Additionally, due to the public nature of the district office, where the employees serve the community, in addition to the required functionality of the office, there is additional testimony that these office jobs are not expected to go virtual now or in the future as other private sectors have since the pandemic began.
The new district office presentation to the community, the school board, and budget committee took place on January 6, 2022. Considerable questions and concerns were brought by residents, the school board, and budget committee. The main question to be answered at this meeting was whether or not to move the proposed development to a public bond hearing. The school board approved 5-0 to go to a public bond hearing.
The Public (bond hearing) was held on January 18, 2022. The final presentation by the committee, Eckman Construction, and Trident Group was presented. Additional questions, concerns, and input was taken from the budget committee, community, and the school board. A vote of 5-0 was taken to move the project to the warrant to let the voters decide on the project.
Financial Information
The lease we are currently in at Kitty Hawk has 5 years remaining following this school year. The yearly average cost to taxpayers is $0.0415 cents per $1,000 per year under the existing lease terms (this does not include any maintenance or operational costs). The current annual lease cost is $205,000 and it increases by approx. $5,000 annually. The current amortized fit-up costs are $40,000 for the next 5 years until the full $400,000 in fit up costs is paid to the landlord. The annual revenue lost to the Town in taxes is $28,000. This is considered lost revenue/tax income as if the School District were to vacate, the landlord would be responsible for these taxes. In addition, if we were to stay, renegotiation of the lease would be expected. While the amortized fit up costs would be removed after Year 10, there can be no guarantee what may change in terms of the lease as the School District would not have control over this current district office space.
The proposed bond amount of 4.5 million for 20 years leads to an average cost to the taxpayers of $0.054 cents per $1,000, or roughly $0.0139 cents over the existing lease payment to own a building and after 20 years the payment goes away. This does not consider the potential operating expense savings that are expected with the move or the increase in tax revenue the Town will receive now that the landlord would pay the taxes for the current district office space.
For more information, please watch on the Londonderry School District YouTube Channel, specifically the January 6th and January 18th meeting. Or please, reach out to me directly or any of the committee members.
Bob Slater,
[email protected]
603-234-9205
