Friday, August 3, 2012

Putting things into perspective

While we have been discussing floating a $5 million bond for repairs for our pool, parks, tennis, golf course, ball fields and ice rink in the municipality, today's Pittsburgh Business Times named our high school project in their latest list.

Largest Active Pittsburgh-Area Construction Projects
(ranked by total project cost)
  1. ATI Allegheny Ludlum rolling mill     $1,160,000,000    High-tech hot strip mill
  2. U.S. Steel Clairton upgrades                   $250,000,000    Rebuild C Battery at Clairton plant
  3. Turnpike roadway, bridge reconstruction $113,201,000 Rebuild 6.87 mile stretch of PA Turnpike
  4. Penn American system upgrades             $101,000,000 Upgrades to Hays Mine, Beck's Run, other system facilities
  5. Charleroi Locks & Dam expansion         $96,500,000  Upgrade/expansion of locks
  6. Turnpike reconstruction, bridge work     $91,304,000 Roadway and bridge reconstruction
  7. Mt. Lebanon High School addition/renovation $87,000,000 Additions/renovation to senior high school
  8. Freeport Bridge and ramps                   $62,900,000 Relocation and replacement of existing bridge
  9. Penn Hills Senior High School            $60,000,000 Construction of new high school
  10. McKeesport Area Sewage project       $55,716,000 Renovations to multiple treatment plants, pump stations, sewer lines
  11. South Chestnut Ridge turbine project   $50,000,000 23 two-megawatt turbines
  12. Masontown Bridge renovation/reconstruction $49,824,095 Replace existing two-lane bridge with four-lane structure
  13. Squirrel Hill Tunnel rehabilitation    $49,495,000 Update to electrical, lighting, control, ventilation and structural repairs
  14. Cardinal Wuerl North Catholic high School   $49,000,000 Construction of new high school
  15. University of Pittsburgh freshman residence hall $45,000,000 Construction of 11-story freshman dormitory
  16. River Vue Apartments                    $40,000,000 Convert 16-story bldg. into 218-unit apartment complex
  17. Penn Hills Elementary School          $38,666,656 Construction of new elementary school 
  18. Connellsville Senior High School work    $37,883,800 Additions/renovations to high school  building
  19. Slippery Rock University Student Union Building   $37,000,000 Construction/renovation of student union building
  20. Alcosan Main Pump Station upgrade       $36,709,500 Upgrade to Alcosan plant

23 comments:

  1. Should be #3 on the list. School board gets a pass again!

    $86 million doesn't even make sense.

    Oh well. At the end of the day it'll be $115 million plus.

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  2. Wow, I am so proud.

    This should enrage every citizen of this township!

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  3. This is an easy error to fix. Everyone just contact the editor. But I am disappointed that a "business" magazine missed by such a huge margin. If the project were going to cost 86 million, there wouldn't have been the opposition there was. Duh. Good golly, Elaine. It wasnty enough for you to scoop and shame the Posti Gazette, Trib and the Sue Morgans monthly. Now this?

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  4. The listings are alleged to be "ranked by total project costs", but it is obvious that most all, particularly government related, are construction costs only. Add at least 15% - 20% to more likely represent the total project costs.

    To determine the true total cost to taxpayers for most all government projects because they are bond financed, add at least another 50% to construction costs alone to account for 20 - 25 years of interest cost associated with the bonds. If the bonds are wrapped to reduce the initial tax increase required to fool the public, add another 75% to construction costs v. 50% because wrapping structures financing like an interest-only mortgage for the first 12 - 15 years. Mt. Lebanon's muni & school district used wrapping quietly for years until just a few in the public called them on it. It took awhile. The $50 million bond issue for the elementary schools renovation 2003 - 2006 was wrapped so extremely that the total debt service (principal of borrowed $50 million + interest) over 28 years amounted to $103 million !

    Isn't it interesting that 17 of the 20 largest projects are government related.

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  5. 12:58 AM, you gave me a scare. I had to double check our amount. I couldn't copy and paste this list since it was hard copy. I did type $87 million. I double checked all the other figures, so it would have been pathetic to give the school board another million dollar credit.
    Elaine

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  6. There were more columns listed, but I didn't take the time to add those. The target start date/completion for Lebo was Jan. 2012/2014. There is no way that it will only be two years. They aren't scheduled to tear down that perfectly good Building C until...was it 2015 or so? I can't find the timeline on the district website.
    I wonder how many of the other projects on the PBT listing include tearing down a perfectly good building. Ask the construction workers on the job about that.
    Just remember folks, Mt. Lebanon reelected the woman who said that we would not revisit Building C AND negotiated Jan Klein's 6.9% raise.
    Elaine

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  7. One more thing, while I remember, the PBT reported what they have been told. My guess is that Cissy Bowman, MTLSD's PIO, gave them that figure.
    Elaine

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  8. Some would refer to that woman as a "liar".

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  9. 10:35 AM, the Districts own numbers for the high school project based on a total project cost of $113 million and 100% financed by conventional level payment serial bonds (not wrapped) over 25 years was a debt service payment of $170 million ! The Commonwealth reimbursement (our tax $ also) amounted to about $23 million over the 25 years, for a net of some $147 million direct locally.

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  10. Footnotes to this list include:
    1. Source: F.W. Dodge division of McGraw-Hill Cos., construction contractors and specialty contractors in the Pittsburgh region, area developers.
    2.Total project cost includes land acquisition, environmental compliance and projected construction costs.
    3. Counties surveyed for this list: Allegheny, Armstrong, Beaver, Butler, Clarion, Fayette, Greene, Indiana, Lawrence, Washington and Westmoreland.
    4. Contact Research Director Ethan Lott: elott@bizjournals.com 412.208.3823.
    Elaine

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  11. 1:28PM..the footnote #2 does not include include actual project cost components beyond those referred to such as : insurance. architectural, engineering, construction management, owners contingencies, financing costs(bond counsel, and other bond issuance costs).

    Why can't published sources ever get it right ? ! Are they trying to flim flam the public like the governments do ?

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  12. Whoops...forgot to include local building permits and any county and/or state agency inspection fees in my 2:19 PM above.

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  13. Ditto, 11:49 PM!

    Do our school directors somehow think spending this kind of money makes ML a better district? That's just plain delusional.

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  14. The maddening thing about the District's high school project is that it was sold to the public on the basis that it would "improve education" in Mt. Lebanon with not one shred of evidence that a new building would automatically increase test scores or improve the quality of the District's teachers. That the old structure had issues was not questioned; that it could not be fixed in place is - or was - debatable.

    Lest we forget; a lot of alternative plans were presented to the Board from highly qualified people; all to no avail. The Board, led by a few sedulous but misguided members, wanted a new complex, and a new complex they would get at all hazards - except the hazard of referendum.

    And lastly - speaking as a former teacher - the quality of the education available in Mt. Lebanon has more to do with the quality of the "raw materials" than it does with our teachers or buildings. In a town were most students come from college educated parents the very gene pool suggests above average results in test scores as compared to other school districts. Lets face it; our teachers rarely have the opportunity to show what they can do by taking a kid from a disadvantaged background and raising him or her to stellar performance. Superior teachers do not need a flashy building to prove their mettle.

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  15. RG, I think my commissioner's blog is/was part of the misguided and you would be one of the ones who wouldn't be willing to "pay it forward" since your kids are out of Lebo. http://www.reallebo.com/2010/04/who-will-advocate-for-children.html Franklin can talk about legal action here on my blog, but when Linfante was posting what amounted to hate speech, nobody blinked. The good news is that Real Lebo renewed its domain for two more years, so it can be a constant reminder of how my baggage-free commissioner rolls.
    Elaine

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  16. Elaine:
    Since you brought up that ubiquitous phrase "pay it forward" as used by Ms. Linfante, and my three daughters who went through the system, it gives me the opportunity to inject a couple of thoughts slightly off topic.

    First, part of the social contract for living in this town - indeed, any town - is that I must pay taxes to the Municipality and the District. I have no choice in the matter, and that I find the town pleasant and the school system lacking has no bearing on my tax obligation. Still, in the famous words of David Huston, "My taxes are paid." That a person feels, with justification, that his educational tax dollars are wasted is not a justification for a personal attack by Ms. Linfante et. al. on her Blog. And twisting such an opinion around into painting anyone who opposed the HS project as someone who opposes help for "special needs" children is an insult of the first tier. For her information, there are two families within walking distance of my home with "special needs" kids - neither family will put their children into the Mt. Lebanon school system under any conditions. But I do thank you, Elaine, for pointing out that Blog to me - I've been to several local Blogs but it's the first time I've ever read that one.

    As to my children, all three indeed went through the Mt. Lebanon school system, although my oldest spent some time attending OLG (and we are not Catholic). Almost two years ago I asked all three of them to rate their experience in Mt. Lebanon, given that they were all good students, with one of them at the top of the academic tree. None of them had much good to say about their Mt. Lebanon experiences - although they did name a few teachers they liked. For the record; all three have BA's from Geneva College, and one has a Master's Degree from WTS California, plus additional education credentials from the University of Leiden in the Netherlands. As a proud father I will tell anyone that, having monitored their studies, their successes are due, not because of the education they received in the Mt. Lebanon School District, but in spite of it.

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  17. RG, that blog took no prisoners. It was tragic to read what was written about Kelly and James Fraasch, the "Concerned Citizens of Mt. Lebanon" and anyone else who questioned any aspect of the high school project or Jan Klein. The hate that was spewed by Linfante, Labalme, Papke, James Cannon Sr., Nancy Tashman, and others was totally out of line, yet one word of deadbeat athletic supporters, is lawsuit material. I don't get it.
    Elaine

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  18. There is nothing to get.
    They believe that they are the only ones that can " disagree without being disagreeable."

    Case in point - the What the Kluck PROTEST. They didn't protest the topics broached by the "town hall" but rather the fact that it was being held. Probably because it was completely out of their control.

    Rather than mounting ongoing community discussions, they mocked and rocked ( as in stoned) anyone that participated.

    Commissioner Linfante friends have done nothing to improve our community, but they have consistently found ways to spend more money.

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  19. EG:
    Perhaps you and the others affected could get together and hire David Franklin to sue Real Lebo for slander. Wouldn't that be ironic!

    Just kidding.

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  20. I think it's unbelievably shocking that "our" (I'm using that term loosely) project is ranked right up there with private industry and major public infrastructure.

    Anyone who looks over that list has got to wonder what is going on here.

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  21. You never know what Lackey Linfante will do.

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  22. If anyone will lend me $5,000,000 I will pay you $30 every year.

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  23. Wow! that would be a huge project ever to attain. If ever it will push through many will benefit to that. Good luck!

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