Joseph Liotta, district solicitor, says that has been happening of late, and wants to panel to return to its former ways.

The Franklin Area School Board was advised Monday to stop deviating from its agenda.

District solicitor Joseph J. Liotta III attempted to get the board back on track after a surprise motion by William Deal was followed by a motion from William Lucia to table Deal's motion.

Lucia's motion to table failed, and Deal's motion to schedule an Act 38 hearing on the possible closure of Seventh Street elementary school passed by a vote of 5 to 2.

But prior to the votes, Liotta objected to the board's recent "practice of deviating from the agenda."

He indicated that in the past, if a new matter came to the fore, the board would first entertain a motion to amend the agenda. Only if that vote succeeded could a new motion be made.

"I suggest we get back to our (former) practice," Liotta said. "It becomes much easier when you stick with the agenda. When you deviate from the agenda, it creates a procedural problem."

Under the circumstances, he advised the board to first entertain Lucia's motion to table, and if that failed, then address Deal's motion.

"You have to stop deviating from the agenda," he said.

After a back-and-forth discussion, the board approved the Act 38 hearing, set for 7 p.m. Monday, Aug. 11, at the high school.

The section of the Public School Code requiring the hearing states that "in the event of a permanent closing of a public school or substantially all of a school's facilities," the board must "hold a public hearing on the question not less than three months prior to the decision of the board relating to the closing of the school."

The board must advertise the hearing at least 15 days prior to the hearing.

Those board members promoting the hearing indicated it will help board members decided which of the five proposed renovation options to pursue at Central Elementary, several of which include additional classrooms to house Seventh Street students.

Possible bond issue

In other building-related matters, the board also heard from its bond counsel, Ron Stout of Thorpe, Reed & Armstrong, and a representative of PNC Capital Markets about a possible bond issue for the Central renovations.

In June 2006, shortly before Act 1 of 2006 was signed into law, the board unanimously approved a resolution authorizing a bond issue not to exceed $11.9 million dollars for possible future renovations of Central Elementary and "various other improvements to school district facilities," according to the resolution.

The move was designed to take advantage of an exception to the Act 1 stipulation requiring school districts to receive voter approval for tax increases that exceed the rate of inflation. The exception allowed schooled districts to raise taxes for debt incurred prior to Act 1.

Michael McCaig of PNC Capital Markets told board members in 2006 that if they decided to issue the bonds and carry out the renovation projects, he would come back with actual interest rates.

He returned Monday with the message that now would be a good time for the school district to borrow money.

He said the interest rate is "still very low" and cautioned that the low rate may not last.

"How long (the low rate) will last is anybody's guess," he said.

"If you are in a position to lock this interest rate in, I'm telling you it's a good time to do that," he said.

The bond could be structured so that the payments on the principal would not begin until after the district pays off its current debt for the Utica project in two years, he said. As a result, there would be no increase to the district's budget, which would include the same debt payments as now, just extended over 10 to 12 years, depending on the size of the bond.

McCaig said that because the district would not be increasing its total debt service, the bond issue would also qualify for a separate exception to the Act 1 requirement for a voter referendum.

When asked by board members about the possibility of further deferring the bond issue, McCaig pointed to the possibility of an interest rate hike.

"If the interest rate went up a half a percent, that could have a major impact on your budget at $10 million," he said. "Once you've locked in (the interest rate), you know what you have. It's nice to take away that kind of risk."

Otter Street structure

On a final building note, Superintendent Ronald Paranick reported that the district has advertised for bids for the demolition of the building adjacent to Central Elementary at 1266 Otter St.

The board last month agreed to pay $99,900 to Gladys C. Corpuz of Seymour, Ind., for the .29-acre lot and 5,150-square-foot, two-story, wood- frame structure located between Central and the Franklin YMCA.

The former Harvey H. Hoovler Funeral Home and more recently an apartment building, the now-vacant building includes 1,172 square feet of office space and one apartment on the first floor and three apartments on the second floor.

The district bought the building with the intent of demolishing it and using the site for parking. District officials have also said the area will also provide room for further expansion if the district decides to pursue that option.

In a letter to Paranick, which was distributed to board members, the district's projects coordinator Gene Kresenski included the results of the asbestos report for the building.

Kresenski listed the approximate cost of asbestos removal prior to demolition at $1,525, and said one bid for the demolition came in at $21,320.

He also listed additional tasks that must be completed to turn the area into a parking lot. They include the removal of six large tree stumps, roots and shrubbery; grading and compaction of the site for paving; paving; the installation of sidewalks, curbs and lighting if required; and the extension of a retaining wall.

In his letter, Kresenski said the cost of the additional work could range from $75,000 to $125,000, depending on various factors. He said most of the improvements could be part of the Central Elementary renovations if it is determined that extra parking is required.