FOXBURG, Clarion Co. — The Allegheny-Clarion Valley School Board took the first steps toward approving a $5.5 million energy saving building improvement project that would be paid for by a $3.5 million bond issue and $2 million from the district’s reserve fund.

Board members Tuesday authorized the McClure Company to perform an investment grade audit so the district can advertise a request for qualifications for the project.

The board informally agreed on a $3.5-million, 10-year bond issue and to use $2 million from the district’s $7 million reserve fund to pay for the work.

Tim Frenz, of the Janney Montgomery Scott investment firm, outlined 10-, 15- and 20-year bond issues with annual payments of about $475,000, which is the current payment from the district’s last bond issue in 1994.

Superintendent David McDeavitt recommended the 10-year financing option.

Board President Robert McGinnin agreed, saying it wouldn’t be fair to commit future financing to pay off a 20-year bond issue.

Frenz said there are two more annual payments left on the 1994 bond issue. But the last payment due in the 2018-19 school year would be rolled into the new bond issue.

To issue the bonds in April, Frenz said the board should name his company as the bond underwriter and name a bond counsel at the meeting in March and authorize issuing the bonds in April.

“By mid-May, you’ll have your money,” Frenz said.

The work would be done during the summer and completed before the 2018-19 school year begins.

The board also tentatively agreed on a list of projects to spend the money on.

The projects include new lighting in the high school and elementary school, weather sealing windows and doors in both buildings, replacing the plumbing in the elementary school, replacing the heating, ventilation and air conditioning system in the high school library, replacing the high school cafeteria dishwasher and replacing the high school roof.

Maintenance supervisor Mark Milford presented the board with a longer list of needed repairs, but board members said some wouldn’t qualify as energy saving projects.

He said replacing the elementary school plumbing was the top priority. He said cheap copper plumbing lines were used when the building was constructed and the pipes leak badly.

“It could start leaking tomorrow and shut the school down,” Milford said.