Borough approves middle school plan
Not without a spirited debate over fees

By Michael C. Upton
Lititz Record Express

Published: May 01, 2008 10:34 AM EST

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Lititz -

The proposed Warwick middle school plan skirted a hurdle Tuesday during the Lititz Borough Council meeting that might have held up construction for at least another month.

Ultimately, council approved the Warwick Middle School final land development plan, but only after spending more than an hour hearing from engineers, project managers and school administration. At stake was the school district's ability to begin a process with DEP that would allow them to award contracts for construction.

"We opened bids for (construction of) the project this afternoon, and so far they are looking good," Paul Artelle said. "A little good news to share with you."

Artelle represented ELA Group, designers of the middle school and the Warwick campus plan. He presented the plan to council, providing a refresher of the proposed construction phases and final look of the Warwick campus. Council had several questions for Artelle concerning aesthetics, project changes, and everyday operations of the middle school.

The district requested approval of a final land development plan with two waivers. The planning commission and borough engineer previously recommended both waivers. First, the district requested the elimination of requirements to provide a profile of the proposed water line.

"There's really no need for profiling," Artelle said. "We're doing minimal waterline work."

The district also requested a variance to the borough's street trees ordinance. According to Artelle, the borough requires a spacing of 60 feet between trees. The campus plan will space trees 75 to 110 feet apart. Council had no problem agreeing to these waivers.

Before this presentation, Artelle gave reference to items that eventually led to some intense debate.

"We recognize there are some financial issues to work through," Artelle said.

Warwick business manager David Zerbe broached those financial issues.

"(Before this evening) we've talked about a number of issues in regards to some of the financial pieces," Zerbe said. "I've got some comments I'd like to make on those, and I'm not sure if this is the time or not."

Council indeed wanted to hear what Zerbe had to say.

"I do have some objections to some of the fees that are being assessed and whether or not they are appropriate," Zerbe said.

Specifically, Zerbe was talking about the borough's tap-in fee for sewer and water connections and lines of credit for the entire project.

"We are not in agreement on the tap-in and water fees," council member Karen Weibel said.

Borough Engineer Darrell Becker of ARRO Group agreed.

Tap-in fees are assessed on developers by the municipality to recoup money invested in the extension, upgrade or modification of sewer and water lines. Tap-in fees based on estimates made by engineers for the school district varied greatly from estimates made by the borough engineer.

"We're just asking that (fees be accessed) fairly based upon accepted engineering practices," Craig Smith of ELA Group said.

He defended the school district's position and argued that the borough engineers use of a peaking factor was not common practice.

"In developing the tap-in fees, we used the same methodology that we used for Bonfield Elementary," Becker said. "We also used a 2.0 peaking factor that the (school) district did not use."

Becker also claimed that his firm's calculation used the maximum student population of the middle school, 1,052, while district used the number 800. Both engineering forces debated numbers pertaining to water consumption and actual and maximum students.

"Wait a minute," Weibel said. "Are we talking apples and oranges here?"

After a brief explanation by the engineers, she proclaimed they were.

Smith and others from ELA stated that a peaking factor is sometimes used for municipal fees concerning wastewater treatment facilities and plant expansions. Essentially Smith debated the validity of a peaking factor and Becker defended it.

Zerbe suggested assessing the value of the tap-in fee on actual usage recorded over the two to three years following completion of the project. According to Zerbe, this was done when the school district built John Bonfield Elementary. The school district was owed a $60,000 refund for tap-in fee monies paid over actual usage in that project, he explained.

Zerbe's main point was that he felt that the school district and the borough share a mutual interest in the project. He pointed out that the district is not a for-profit developer. He stated that both parties are tax levying entities and argued that if exorbitant costs are incurred by the school district, then that cost is ultimately passed on to the taxpayer. Zerbe requested the borough approve the plan with the stipulation that tap-in fees will be determined at a later time in order to move construction forward.

"There's got to be a middle ground we can take and say, 'we're all in this together,'" Zerbe said.

"The numbers aside, I'm having a very hard time wrapping my head around the school district claiming they're not a developer," Weibel said. "Clearly you are, it might not be for profit, but … you're asking our taxpayers to take a hit for three different municipalities."

"I don't agree with that," Zerbe said.

As for Zerbe's second major "financial piece," a letter-of-credit for the project, he requested that some form of compromise be attained between the school district and the borough. He estimated the financing of a letter-of-credit would cost the district between $10,000 and $15,000. He suggested setting up an escrow account in the amount of $1,093,557 instead of a line-of-credit. The school district could ultimately earn interest on this money rather than pay to finance a guarantee of compensation for potential project non-completion. Zerbe asked council to consider the fact that the district "isn't going anywhere."

"We have a sticking point," Weibel said. "I was hoping to approve this plan before the end of the night."

Ultimately, council approved the final land development plan unanimously with the stipulation that discussion will continue regarding tap-in fees. The board also agreed to allow the school district to place $1,093,557 in an escrow account rather than establishing a letter-of-credit for the project. The motion stated that tap-in fees must be agreed upon before council's next meeting on May 27.
 

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