Northport BOE Considers 2012-13 Capital Projects

The Northport District’s Five Year Capital Plan, which the Operations and Maintenance Committee reviewed and updated over a course of six meetings, lists seven projects for the 2012-13 school year totalling $1.85 million, which Assistant Superintendent for Business Kathleen Molander noted in a Feb. 21 memo "far exceeds previous years’ recommendations.”

A PDF of the plan is attached to this article.

The projects include replacement of two boilers with gas conversion at Dickinson Avenue and Bellerose Elementary schools; univents at Pulaski Road, Ocean Avenue, Northport Middle and East Northport Middle Schools; and heating and ventilation units at Ocean Avenue and Bellerose.

The district’s current Capital Reserve Fund was established in 2008 for the purposes of renovation and reconstruction of existing school buildings and facilities and replacement and upgrading of equipment, installations, and systems. The length of the term is 10 years, with the ultimate amount limited to no more than $5 million. However, only $600,000 per year can go into the Fund either through budget appropriation or an interfund transfer. All projects funded by this reserve must be approved by the public. Repairs under $20,000 come out of the General Fund.

At the Feb. 27 BOE meeting, Trustee Joe Sabia questioned the need for what he called "overfunded reserves" allotted for retirement contributions totalling $6-8 million, and asked if the money might be better directed toward capital improvements. The cost of the projects in the overall five-year plan, which the Committee extended through 2016-17, totals $27.5 million.

In response to a question from Board President Stephen Waldenburg, Molander confirmed that districts can have more than one capital reserve. She said district counsel is working on a letter for the Board clarifying the use of different reserves.

Dr. Nina Dorata agreed with Sabia, pointing out that the district appropriated only $1.75 million this year for retirement contributions of the approximately $8 million in reserve.

In response, Superintendent Marylou McDermott pointed out that Moody’s has said the district’s reserves are appropriately funded, and has given Northport a favorable rating. As in past meetings, she said the district tries hard to strike a balance to keep the tax levy steady.

Approximately $5.5 million of the cost of the projects could be funded through an Energy Performance Contract (EPC), including lighting updates at all the buildings and boiler placements at six buildings. Superintendent of Grounds and Buildings Anthony Resca urged the Board to look into a contract.

In response to a question from Trustee Lori McCue, Resca said buildings and systems should be assessed every 30 years, but some buildings in the district are past 50 years. Resca said he would provide an overview on the state of the “bread and butter” items as he called them, including roofs, heating, univents, and mechanical systems in the district.

Committee member Carl Litt also urged the Board to consider an EPC. Citing the average age of the 10 buildings in the district (66), Litt advised the Board that the District should be putting between two and four percent of the buildings’ value into maintenance. He said that amounts to $9 million, using $300 million as a rough estimate of value.

“A lot of time and thought has gone into the five-year plan,” he concluded. “I would urge you to follow it.”