Board Workshop. Measure K Bond Program Update. Long Beach Unified School District BOARD OF EDUCATION WORKSHOP. August 20, 2013

Transcription

1 Board Workshop Measure K Bond Program Update August 20, 2013 BOARD OF EDUCATION WORKSHOP

2 Presentation Summary I. Facilities Master Plan Update Stakeholder Expectations Accomplishments To Date Educational Program Changes Demographics Capacity Trends New / Updated Challenges & Recommendations II. III. Major Project Update McBride High School Cabrillo High School Pool Roosevelt ES New Construction Newcomb K8 AB300/New Construction Jordan HS Major Renovation New HS #2 at the Browning Site Bond Program Financial Update Master Program Budget Measure K Issuance and Expenditure Summary Bond Overview Future Bond Issuance Impacts To Project Prioritization State Funding Eligibility Next Steps 2

3 I. Facility Master Plan Update Stakeholder Expectations Based on 2008 Facility Master Plan Maintain safe, drug-free and gang-free schools Expand career education and job training programs Build more permanent classrooms Strengthen and repair school buildings vulnerable to serious damage in a major earthquake 3

4 I. Facility Master Plan Update Accomplishments To Date Measure K School Bond Passed November 4, 2008 New Construction Nelson Academy McBride HS Cabrillo HS Pool Roosevelt ES AB 300 Seismic Upgrades Newcomb K-8 Academy Bancroft MS Gym Hoover MS Gym Projects Interim Housing Roosevelt ES relocated to Butler MS site Newcomb K-8 relocated to Keller ES site Jordan HS on-site Status Opened Fall 2012 Opens Fall 2013 Opens Fall 2013 Construction Start Fall 2013 Construction Start Fall 2013 Construction Start Summer 2014 Construction Start Summer 2014 Completed Completed Construction Start January

5 I. Facility Master Plan Update Accomplishments To Date Portable Removal DOH Portable Removal: 15 sites Portable Removal Phase I: 2 sites Status Completed Completed Harte ES Portable Removal & Restroom Relocation Completed Portable Removal Phase II: 14 sites Construction Underway Building System Improvements Boiler Replacement Projects: 9 sites Fire Alarm Replacement Phase I: 9 sites Construction Underway Construction Start Fall 2013 Technology Core Switch & UPS Replacement: all school sites Wireless Data Communications: all school sites Access Compliance ADA Improvement Phase I: 2 sites Completed Construction Underway Completed 5

6 I. Facility Master Plan Update Accomplishments To Date Standards Development Design and Material Standards and Specifications Educational Specifications Status Completed Completed DSA Certification 253 Applications out of 396 are now Certified; 11 sites are clear Reuse Burroughs ES site Head Start Administration, Teacher Resource Center Tucker ES site Student Support Services Administration Long Beach School for Adults Beach High School Jordan Freshman Academy Jordan Plus Monroe K-8 site Personnel Commission (Move Ready) Buffum ES site Pre-K Special Ed 6

7 I. Facility Master Plan Update Educational Program Changes Program Changes Grade level reconfiguration Transitional Kindergarten Online Common Core State Standards Assessments (CCSS) Classroom Loading Standards Grade Level 2008 Classroom Loading 2013 Classroom Loading Elementary 25 students 30 students Middle 30 students 35 students High 30 students 35 students 7

8 I. Facility Master Plan Update Educational Program Changes Technology Initiatives CCSS Electronic Assessments Wireless Computer lab upgrades Test Pilots new technologies Differentiated Instruction Requires flexible furniture and equipment 8

9 I. Facility Master Plan Update Demographics Enrollment Trends Since 2003, enrollment has declined by approximately 15,000 students (15%) across grades K-12 Most significant was at the elementary school, where grade levels K-5 declined by approximately 9,000 students (20%). Middle school (grades 6-8) declined by approximately 5,100 students (22%) High school (grades 9-12) declined by approximately 1,100 students (4%) Source: DecisionInsite and CBEDS 9

10 I. Facility Master Plan Update Demographics 10

11 I. Facility Master Plan Update Demographics 11

12 I. Facility Master Plan Update Capacity Trends Excess Capacity Total capacity > enrollment Varies by planning area and school Construction of New Sites Removal of Outdated Portables Replace when necessary Balance need for flexibility 12

13 I. Facility Master Plan Update Capacity Trends Impact to Facilities Facility Master Plan Goals Build new state of the art classrooms Remove old and outdated portable classrooms Support the creation of 21 st century learning environments Project Net Change in Classrooms Portable Removal (DOH & Phase I & II) -96 Nelson Academy 33 McBride High School 36 Total

14 I. Facility Master Plan Update Capacity Trends School Site Utilization Maintaining utilization ratios ensures: Available space for unforeseen growth Available space for new programs More informed decisions that impact a school s enrollment School Level Average Utilization Ratio Target Utilization Ratio Elementary (K-5) 70% 90% K-8 72% 85% Middle (6-8) 68% 75% High (9-12) 82% 75% 14

15 I. Facility Master Plan Update New / Updated Program Challenges Facility Master Plan Recommendation #6: Reduce enrollment at comprehensive high schools Facility Master Plan Current Status Target Enrollment High School #1 - McBride Opening Fall High School #2 Browning Site In Design 840 High School #3 Former JFA Site In Design 675 High School #4 Former Butler Site In Planning 600 High School #5 Site TBD In Planning

16 I. Facility Master Plan Update New / Updated Program Challenges DSA closeout and review of projects Removal of portable classrooms versus the need for flexibility Transportation cuts Cash flo 16

17 I. Facility Master Plan Update New / Updated Program Challenges Project Phasing (Updated) Project prioritization has been revisited and adjusted by the Board on a regular basis Evaluate Administrative/Support Facilities Needs (New) Evaluate the potential need for school closures, consolidations, and reuse of closed facilities (New) Identify and evaluate potential cultural resources as part of current and future construction projects (New) 17

18 II. Major Projects Update McBride High School Project Summary: New High School in the Millikan Planning Area 150,000 S.F. facility with 43 classrooms Self-contained physical education programs Project Status: Three CTE Grants applications approved: Health/Medical ($1.5M), Engineering Design ($1.5M), and Public Services ($3.0M) State Modernization funds received: $9,024,908 Construction phase: FF&E installation, testing, and project closeout underway School opening: September 2013 Project Team: Architect: LPA, Inc. Contractor (Demo & Abatement): A to Z Contractor (Waterline Relocation): Excel Paving Contractor (Main Buildings): Hensel Phelps 18

19 II. Major Projects Update McBride High School View of Front Entry to Bldg. A (Administration) View of Central Quad View of Bldg. I (Lecture Hall) View of Bldg. I (Lecture Hall) 19

20 II. Major Projects Update McBride High School View of Bldg. E (Fitness Training) View of Lunch Shelter View of Student Parking Area View of Bldg. E (Gymnasium) 20

21 II. Major Projects Update Cabrillo High School Pool Project Summary: New 40 meter pool and associated support facilities for Cabrillo High School Scope includes: Addressing access and parking New campus marquee sign Computer lab HVAC upgrade Project Status: Construction phase: 97% complete with FF&E, testing and project closeout underway Anticipated pool opening: Late Summer 2013 Project Team: Architect: PJHM Architects, Inc. Contractor: C.W. Driver 21

22 II. Major Projects Update Cabrillo High School Pool Ticket/Concession and Locker Room Bldg. Pool and Locker Room Building Pool, Stadium Seating and Equipment Bldg. Locker Room 22

23 II. Major Projects Update Roosevelt Elementary School New Construction Project Summary: Existing 64,000 S.F. facility built in 1935 with additions in 1945 and acre site New Elementary School will be 98,686 S.F and provide 45 classrooms On-site parking structure for staff & rooftop play area Project Status: DSA/CDE agency review: completed OPSC review: underway Demolition, abatement, and utility relocation: completed School construction procurement: underway Target school re-opening: September 2015 Project Team: Architect: Ghataode Bannon Architects Pre-Construction Consultant and Contractor (Demo, Abatement and Utility Relocation): Tilden Coil Constructors 23

24 II. Major Projects Update Roosevelt Elementary School New Construction 24

25 II. Major Projects Update Roosevelt Elementary School New Construction 25

26 II. Major Projects Update Roosevelt Elementary School New Construction 26

27 II. Major Projects Update Newcomb K-8 AB300/New Construction Project Summary: Existing 69,000 S.F. facility built in 1962 and acre site New 122,000 S.F. facility will include 46 classrooms Project Status: DSA confirmation of SMP funding eligibility: completed DSA/CDE agency review: completed OPSC review: submitted Demolition and abatement: completed School construction procurement: underway Target school re-opening: September 2015 Project Team: Architect: WestGroup Designs, Inc. Pre-Construction Consultant and Contractor (Demolition & Abatement): Turner Construction Company Contractor: TBD 27

28 II. Major Projects Update Newcomb K-8 AB300/New Construction Proposed Site Plan 28

29 II. Major Projects Update Newcomb K-8 AB300/New Construction Main entry to campus 29

30 II. Major Projects Update Jordan High School Major Renovation Project Summary: Existing 333,343 S.F. built in 1930 s and 1940 s with additions in the 1950 s through 1990 s acre site New and renovated facilities total 349,000 S.F 146 Teaching stations/classrooms, 6 Academies Master Plan capacity is 3,600 students Project Status: Construction Documents: Phase 1B,1C, 2A, and 2B underway DSA agency review: Interim Housing Ph. 1A - underway, Main Buildings (Ph. 1B and 1C) - Fall 2013 CDE agency review: Main Buildings (Phase 1B and 1C) - underway Construction procurement: Athletic Field Improvements and Interim Housing - Fall 2013 Construction target start: Athletic Field Improvements - Late Fall 2013; Interim Housing Phase 1A - Winter 2014; Main Building Phase 1B - Summer 2014 Project Team: Architect: NTD Architects Pre-Construction Consultant: McCarthy Building Companies 30

31 I. Major Projects Update Jordan High School Major Renovation 31

32 I. Major Projects Update Jordan High School Major Renovation Proposed Building

33 I. Major Projects Update Jordan High School Major Renovation Proposed Building 800 Lunch Shelter 33

34 II. Major Projects Update New High School #2 at the Browning Site Project Summary: New High School #2 at the Browning site located at Hill Street and Redondo Avenue acre site Master Plan capacity: 840 students Educational programs include: hospitality, tourism, and recreation Project Status: Construction Documents: 100% CD s under review DSA, CDE agency, Cities of Long Beach and Signal Hill review: underway Construction procurement: Late Spring 2014 Construction target start: Summer 2014 Anticipated school opening: September 2016 Project Team: Architect: NAC Architecture Pre-Construction Consultant: Hensel Phelps 34

35 II. Major Projects Update New High School #2 at the Browning Site 35

36 II. Major Projects Update New High School #2 at the Browning Site 36

37 II. Major Projects Update New High School #2 at the Browning Site Proposed view of central Quad 37

38 III. Bond Program Financial Update Master Program Budget 38

39 III. Bond Program Financial Update Master Program Budget Funding (Budgets through & Expenditures through ) Measure K Bond Funding (Net Issuance) $1,147,830,181 Measure A Bond Funding $9,838,002 State Funding $24,928,630 Interest and Other Funding $22,531,011 Total Funding: $1,205,127,823 Project Cost Major Projects Current Major Projects Future Unassigned District Wide Projects Current District Wide Projects Future Unassigned Program Expenses Measure K Expenses Construction Cost Escalation Loss Reserve $438,043,167 $257,926,131 $226,758,282 $634,342 $923,361,922 $61,391,829 $199,796,888 $20,577,184 $281,765,901 Total Project Cost and Program Cost: $1,205,127,823 39

40 III. Bond Program Financial Update Measure K Issuance and Expenditure Summary Measure K Issuance and Expenditure Summary 40

41 III. Bond Program Financial Update Measure K Issuance and Expenditure Summary Measure K Issuance and Expenditure Summary (Continued) 41

42 III. Bond Program Financial Update Bond Overview Introduction and Overview Recap of information on bonds Provide updates on Assessed Value (AV), interest rates, and State legislation Seek Board feedback on future Measure K issuances 42

43 III. Bond Program Financial Update Bond Overview What is a General Obligation Bond? A bond backed by the credit and property tax base of the district Begins with an election to authorize a specific total amount to be issued Local property taxes levied on assessed value (AV) to pay the principal and interest (debt service) due on the bonds Bonds sold when cash is needed for facilities projects and are usually issued in several series 43

44 III. Bond Program Financial Update Bond Overview What are Capital Appreciation Bond (CABs)? Principal and interest paid in one lump sum at the bond maturity date An alternative to current interest bonds (CIBs) Interest paid semi-annually, starting once the bond is issued; principal paid in lump sum at bond maturity date Cost to issue CABs is higher than CIBs Interest rates for CABs are higher than CIBs Interest is calculated using compounding versus simple interest 44

45 III. Bond Program Financial Update Bond Overview Bond Comparison Illustrated 45

46 III. Bond Program Financial Update Bond Overview Why would a district issue up to 40 year bonds? Why would a district issue CABs? Proposition 39 tax levy limit - $60 per $100,000 of AV To raise funds to cover current facilities needs and stay under its tax rate limit, a district may choose to defer payments 46

47 III. Bond Program Financial Update Bond Overview Building a Bond Program 47

48 III. Bond Program Financial Update Bond Overview Building a Bond Program 48

49 III. Bond Program Financial Update Bond Overview Building a Bond Program 49

50 III. Bond Program Financial Update Bond Overview Building a Bond Program 50

51 III. Bond Program Financial Update Bond Overview Managing the Tax Rate Assessed Value (AV) Interest rates Term and type of bonds you can issue 51

52 III. Bond Program Financial Update Future Bond Issuances (1) Source: California Municipal Statistics, Inc. and Los Angeles County. Data from (2) Preliminary. Does not include utility value. 52

53 III. Bond Program Financial Update Future Bond Issuances Municipal bond interest rates have recently experienced significant increases (1) Index reflects average yield to maturity of 20 general obligation bonds with 20-year maturities rated Aa2 by Moody s Investors Service and AA by Standard and Poor s. Source: The Bond Buyer & Bloomberg. 53

54 III. Bond Program Financial Update Future Bond Issuances AB 182 was introduced on January 24, 2013 to limit education bond financings: Establishing a maximum debt service repayment ratio for each bond series and for CABs of 4 to 1 Limiting the maximum financing term for CIBs to 30 years CIBs up to 40 years will be allowed until January 1, 2019, after which point 30 years becomes the maximum Limiting the maximum financing term for CABs to 25 years Limiting the maximum interest rate for CABs to 8% Requiring CABs be subject to redemption after 10 years Requiring public analysis if financing utilizes: CABs, and/or CIBs with maturities greater than 30 years These changes are expected to become effective January 1,

55 III. Bond Program Financial Update Future Bond Issuances 55

56 III. Bond Program Financial Update Future Bond Issuances Measure K Debt Schedule 56

57 III. Bond Program Financial Update Future Bond Issuances Tax rate capacity in , when the bond program cash needs are greatest, has been limited by prior issuances (1) Assumes future AV growth of 4% annually. 57

58 III. Bond Program Financial Update Future Bond Issuances Following are illustrative scenarios for the remaining Measure K authorization based on the below assumptions: Annual AV growth rates: : 5.13% (preliminary) Thereafter: 4.0% Current interest rates (1) : Financings with CABs: 5.3% - 6.4% Financings without CABs: 4.8% - 5.0% (1) Assumes current interest rates as of August 8, 2013 remain through final Measure K issuance. 58

59 Scenario 1: Maximize Series D III. Bond Program Financial Update Future Bond Issuances Pros - Series D maximized at $360M Cons - Series E delayed until Series F delayed until Series E & Series F would consist of 100% CABs - Highest overall repayment ratio of scenarios (1) Previously issued financings. (2) Assumes future AV growth of 4% annually. 59

60 Scenario 2: Utilize Only CIBs / No CABs III. Bond Program Financial Update Future Bond Issuances Pros - No CABs - Lowest overall repayment ratio of scenarios - Series E & F accessed sooner than in Scenario 1 Cons - Series D smaller at $140M ($220M less than Scenario 1) - Series E smaller at $140M - ($30M less than Scenario 1) - Bulk of remaining authorization ($534.6M) not accessed until 2024 (1) Previously issued financings. (2) Assumes future AV growth of 4% annually. 60

61 III. Bond Program Financial Update Future Bond Issuances Scenario 3: Lower Series D from Scenario 1 to Allow Series E in 2017 Pros - Series D and E larger than in Scenario 2 ($165M greater) - Series E accessed in Series E contains CIBs - Series F accessed sooner than in Scenario 1 Cons - Series D smaller than in Scenario 1 ($90M less) - Series F would consist of 100% CABs - Series F not accessed until 2029 (1) Previously issued financings. (2) Assumes future AV growth of 4% annually. 61

62 Scenario 4: Allow CIBs in Series F III. Bond Program Financial Update Future Bond Issuances Pros - Series E accessed in Series E & F include CIBs Cons - Series D smaller at $240M ($120M less than Scenario 1) - Series E smallest at $120M - Bulk of remaining authorization ($454.6M) not accessed until 2026 (1) Previously issued financings. (2) Assumes future AV growth of 4% annually. 62

63 III. Bond Program Financial Update Future Bond Issuances Money today money tomorrow Project costs today versus future costs Future debt repaid with cheaper dollars 63

64 III. Bond Program Financial Update Future Bond Issuances Inflation Analysis Proceeds Inflated at 4.8% (1) annually over 20 years $50 million $127.7 million Repayment Compounded at 5.5% interest rate over 20 years $50 million $148.0 million Compounded at 6.0% interest rate over 20 years $50 million $163.1 million Compounded at 6.5% interest rate over 20 years $50 million $ million (1) Average annual increase in new school building construction from 2006 (first year data became available) to Source: U.S. Bureau of Labor Statistics. 64

65 III. Bond Program Financial Update Impacts To Project Prioritization Major Project Reprioritization Summary 65

66 III. Bond Program Financial Update Impacts To Project Prioritization Bond Issuance A, B, B1, C and D Current Projects (Completed / Under Construction / Ready to Start) $232.7M Available for Projects in Planning / Design Current Projects (In Design) Nelson MS McBride, Sr. HS Cabrillo HS Pool Roosevelt ES Newcomb K-8 District-Wide Projects Estimated Project Budget = $393.34M Jordan HS Ph. 1 NHS #2 (Browning) NHS #5 (TBD) NHS #4 (Butler Site) NHS #3 (J-Plus Site) $171.7M Bancroft MS Gym Hoover MS Gym Hamilton MS Gym Polytechnic Auditorium Wilson Auditorium $61.0M Renaissance HS $40.0M Bond Issuance E (August 2017) $84.6M Available for Projects Bond Issuance F (August 2029) $176.4M Available for Projects Proposed Projects (Based on Current Prioritization) Proposed Projects (Based on Current Prioritization) Jordan HS Ph. 2 Jordan HS Ph. 3 Jordan HS Auditorium Renaissance HS Jordan HS Ph. 5 Jordan HS Ph. 6 Hill MS Hamilton MS Avalon K-12 Millikan HS Willard ES Renaissance HS Jordan HS Ph. 5 Jordan HS Ph. 6 Note: Measure K funding may not be sufficient for projects highlighted ghted in red. Long Beach Unified ied School District 66

67 III. Bond Program Financial Update State Funding Eligibility Funding Eligibility Mostly dependent on a State-wide 2014 school bond measure: Modernization, New Construction, and other grant programs Funding received to date: Nelson MS (COS) $12,903,722 McBride HS (CTE, Modernization) $12,024,908 Core Switch and UPS Replacement Ph. I (ERATE) $913,896 Total $25,842,526 Anticipated Funding (Existing Bond Authority): McBride HS (CTE) $3,000,000 Gym/Auditorium AB300 Projects (SMP) $22,534,610 (Estimate) Telecommunication and Wireless Ph. II (ERATE) $7,250,000 (Estimate) Newcomb K-8 (ORG) $12,866,327 (Estimate) Roosevelt ES (ORG) $21,109,013 (Estimate) Total $66,759,950 (Estimate) 67

68 III. Bond Program Financial Update State Funding Eligibility State Funding Eligibility Current Projects (Based on Current Prioritization) Estimated State Funding (1) Funding Type Roosevelt ES New Construction Newcomb K8 AB300 / New Construction Jordan HS Major Renovation Future Projects Hill MS Major Renovation Hamilton MS Major Renovation Millikan HS Major Renovation Avalon K12 Moderate Renovation / Addition Willard ES Minor Renovation / Addition Renaissance HS for the Arts Current AB300 Projects Bancroft MS Gym AB300 Hamilton MS Gym AB300 Hoover MS Gym AB300 Polytechnic HS Auditorium AB300 Wilson HS Auditorium AB300 Jordan HS Auditorium AB300. Notes: (1) Funding dependent on State s ability to sell bonds, voter approval of future State-wide bond measures, and the District s funding eligibility at the time of application. $8,312,567 $12,108,064 $36,057,371 $56,478,002 $6,446,034 $8,510,715 $28,835,838 $6,161,933 $4,231,176 $4,321,796 $58,507,492 $1,043,180 $2,248,279 $1,343,937 $6,832,043 $5,934,428 $5,132,743 $22,534,610 Mod. / New Const. / HPI Mod. / New Const. / SMP / HPI Mod. / New Const. / HPI Modernization Modernization Modernization Modernization / Facility Hardship Modernization Modernization SMP SMP SMP SMP SMP SMP 68

69 III. Bond Program Financial Update Next Steps Next Steps Continue to monitor A/V and bond market Continue to update Board on project prioritization 69

70 For More Information This Presentation along with Measure K Bond Program information is available at: 70