Facilities Update

Matthew E. Beecher

Assistant Superintendent

for Business Services

July 10, 2013

2

Topics to Cover

• Current Financing

• Projects Under Design

• Other Future Projects

• Future Financing

• Next Steps

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Current Financing…

• 2013 Refunding COP is in place– Saves the District $3.5 Million in future debt

service payments– Cost of Issuance $375,814– 3.18% Interest– Final Payment June 1, 2028

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Current Financing Cont’d…

• 2013 New Construction COP– Provided $25 Million in project funds– 3.66% Interest Cost– $619,275 Cost of Issuance– Final Payment June 1, 2033– Funding for Acquistapace Elementary– Secured Match Funding from State Building

Program

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State Building Program Match

• Acquistapace qualifies for $9.5 Million– Staff has filed required paperwork– State staff assures us payment will occur

within three weeks– This crucial funding would have been lost if the

2013 New Construction COP had not been approved

Total ResourcesFund Description AmountFund 49 New Construction COP Proceeds 25,000,000$ Fund 49 Reimbursement from 2006 COP Proceeds 1,712,430 Fund 40 Capital Projects Fund 600,000 Fund 25 Developer Fee Revenue 2012-13 350,000 Fund 25 Developer Fee Revenue 2013-14 650,000 Fund 25 Developer Fee Revenue 2014-15 850,000 Fund 35 Acquistapace State Match 9,500,342

Total Available Resources 38,662,772$

• Because of actions taken by the Board January 30, 2013, the District has leveraged $25 Million into almost $40 Million for facilities projects

Project Summary

Project Options * Rough

Acquistapace Elementary 1 20,591,000$ Acquistapace Elementary Expansion 2 2,500,000 Tommie Kunst Expansion 2 5,000,000 Liberty Expansion 2 2,500,000 Taylor Expansion 2 2,500,000 7 Additional Portable Classrooms 3 945,000 TurnKey Project Closeout 4 1,000,000 Junior High School Property 5 4,500,000 Junior High Construction 5 35,000,000 Elementary School Property 5 3,000,000 Elementary School Construction 5 22,000,000

99,536,000$

Summary of Potential Uses

*Projects are at various stages…

Project Plan SummaryTotal Available Resources 38,662,772$

Summary of Potential UsesProject Options Estimate RemainingAcquistapace Elementary 20,591,000 18,071,772 Acquistapace Elementary Expansion 2,500,000 15,571,772 Tommie Kunst Expansion 5,000,000 10,571,772 Liberty Expansion 2,500,000 8,071,772 Taylor Expansion 2,500,000 5,571,772 7 Additional Portable Classrooms 945,000 4,626,772 TurnKey Project Closeout 1,000,000 3,626,772 Junior High School Property 4,500,000 (873,228) Junior High Construction 35,000,000 (35,873,228) Elementary School Property 3,000,000 (38,873,228) Elementary School Construction 22,000,000 (60,873,228) • Without state match, current resources are expended before we

build a new school

• Amounts are estimates, actual results may vary

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Options

• We can hope that the state reengages the State building program– $9,751 Elementary Expansions $4,387,950– $10,312 Junior High Expansion $3,093,600– $7,481,550 will not be enough to do more than

purchase future properties

• State match for the purchase and construction of the brand new schools would total just over $16.8 Million

• State match totals $24.3 Million to meet a need of more than $60.9 Million leaves us $36.6 Million short

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Cautionary Note

• It is not known that the state will put together a new construction bond for schools.

• If this does not happen, there will be no money coming in for State match

• If nothing else changes, all school sites will lose intervention classrooms, computer labs, and libraries because by 2017-18, the District will be at least 29 classrooms short

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What does 29 Classrooms Short Mean?• No extra rooms, that currently serve sites as;

– Weight rooms– Libraries– Computer labs– Intervention rooms– Staff rooms– Meeting rooms– ASES

• These are not really “extra” rooms, they serve an important purpose

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Breakdown of Classrooms

• Of the 29 classrooms we will be short– 14 are Junior High– 15 are Elementary

• Project list adds 8 Junior High Classrooms and 18 Elementary

• This addresses the emergency needs

• But keep in mind that this does not resolve the overcrowding that exists on most of our campuses

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What can be done

• There is more that can be done to provide classrooms that will– Reduce class size– Allow for differentiated instruction and

intervention– Better exposure to technology– More opportunity for small group learning

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General Obligation Bond Financing• We can allow the voters to support a

financial solution to the facilities challenge– We have already taken a first pass at feasibility

that demonstrated strong support

• We asked tough questions to get a real sense of the community– …there is too much conflict on the board…– …last time their contractor went bankrupt…

Community Priorities

65.1

59.7

58.3

57.2

64.8

51.2

46.1

50

46.6

54

43.2

19.6

22.3

21.7

22.8

14.6

25.5

29.6

25.6

28.4

20.9

27.3

0 10 20 30 40 50 60 70 80 90

Repair or replace roofs, f loors, plumbing, electrical systems

Improve student safety and security systems

Make funding available to attract, retain qualif ied teachers

Upgrade classroom, science lab, computer technology

Remove hazardous materials like asbestos, lead paint

Improve pick-up, drop-off zones, parking lots

Repair and renovate classrooms and school buildings

Retrofit buildings that don’t meet earthquake safety standards

Improve heating, ventilation, insulation, doors, w indow s

Construct classrooms & facilities to relieve severe overcrow ding

Replace aging portables w ith permanent classrooms

Strongly Favor Somewhat Favor

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General Obligation Bonds

Description Proposition 46 Proposition 39

Board Approval

Simple Majority 2/3 Approval

Voter Approval

2/3 Approval 55% Approval

Election Dates Any TuesdayStatewide primary, general or special elections

Use of Proceeds

•Land•Construction•Modernization•Repair•Permanent Improvements

Same as Prop 46 plus Furniture, Fixtures and Equipment

Accountability Separate account/Annual report

Same as Prop 46 plus • Project list• Oversight Committee• Additional Performance and Oversight Audits

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Recognizing the District’s HistoryElection Percent

YesNeed 66% Outcome

1992 General Election 58% 8% Short Failed

1995 Special Election 49.5% 16% Short Failed

1998 General Election 59.5% 8% Short Failed

1999 Special Election 64.3% 2% Short Failed

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Reflecting on the District’s History

Election Percent Yes

Need 66% Outcome

1992 General Election 58% 8% Short Failed

1995 Special Election 49.5% 16% Short Failed

1998 General Election 59.5% 8% Short Failed

1999 Special Election 64.3% 2% Short Failed

Need 55%

3% Over Passes

Short 5.5%

Fails

4.5% Over

Passes

Passes9.3% Over

With the perspective of Proposition 39’s 55% threshold…

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Setting the stage…

• Are we ready to move forward on a bond issue? – Time is on our side– Election is several months away– Time to hear from the community, to tell our

story, and to build our plan

• Would need to formally call for the election in February 2014 or the first part of March

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Timeline

• July 2013 – We are ready to investigate and inform• August/September 2013 – Community meetings

to listen, learn, and share about challenges and solutions.

• November 2013 – Tracking poll, are we on target for June 2014?

• December 2013 – Planning Public Information/Ballot Preparation steps

• January/February 2014 – Finalize Ballot measure, public input and adjustment

• February/March – Board calls for an election

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Discussion/Direction

• The Board Majority has voiced their interest in pursuing the best options that allow students to experience smaller class sizes in well-sized schools, in a single track setting – We are looking for Board direction to have staff

return to the next meeting with;• Contracts for Finance Team, Tracking polls,

Communications, etc. • A defined plan of action• Direction to staff to pursue a General Obligation Bond

– to allow the community to vote on a ballot measure supporting our schools and students