Construction Committee Meeting Presentation
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Status update and action plans for $60M Bond and related projects. Review, discuss, evaluate facts, develop conclusions, and select timely actions. Insights on bond funding challenges and project adjustments. Recommendations for new debt and project amendments.
Construction Committee Meeting Presentation
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Presentation Transcript
Q & A : Construction Committee Meeting Presentation and discussion on the status update and plans of action pertaining to the $60M Bond, $57M Bond, and other related projects. D11.15.07
Objectives: • Implement and utilize a “Best Practices” approach process in order to: • Review, discuss, and evaluate facts; • Develop and/or review observations and conclusions; • Develop and/or review available plan(s) of action; • Select and implement a timely plan(s) of action.
$60M Bond EstimatedConstruction2005 Series 8/29/05 Original Estimates
$60M Construction Bond2005 Series 8/29/05 Original vs. New Estimates *Rappaport Building was purchased at a cost of $1,922,902.00. ** Nixon Field House was completed at a cost of $2,098,095.81.
$60M Construction Bond 2005 Series Fund Sources/RevenuesAs of 09/30/07
$60M Construction Bond2005 SeriesAs of 09/30/07 * Assumes that Admin. Complex requirement was met with procurement of Rappaport Building $1,922,902.00, as well as completion of Nixon Field House $2,098,095.81.
Conclusion • Estimated shortfall of $90,697,471 • Causal and other factors (List is not all inclusive): • Under estimation of original project costs during planning stages; • Inflation (General and Construction related); • Unpredictable substantial increase in construction costs; • Usage of funds of approximately $14M for other needs (e.g. OCRs, Martin WW, Martin PhIII, Cigarroa Scoreboards, Christen MS Academic Wing, Memorial MS Athletic Field, Buenos Aires Land, etc.);
Conclusion (cont.) • Studies were not available to substantiate original allocated bond projections; • There was no scope nor program requirements to support original allocated assessment; • Feasibility cost estimates have now been prepared with support of architects, engineers, administration, and staff; • Estimates are comprised of cost such as professional fees, land, equipment, furniture, relocation, temporary, and other contingency cost;
Conclusion (cont.) • Meetings were held with respective department heads and end users to develop program requirements based on a needs assessment to provide adequate facilities; • The studies were based on new construction rather than renovation of buildings; • Preliminary estimates are based on the proposed construction timeline. Further delays of these projects will generate additional costs; • Consultation was made with bond advisors and a legal opinion has been issued; • Other project needs have impacted the planning and funding of bond program.
Plans of Action • Issuance of New Debt; • Amendment of projects and/or funding; • Other action(s) as determined at workshop; • No action or deferred action.
Option 1 • Issuance of New Debt (Bond Election)
Option 2 • Prioritized projects as listed on previous page; • Addition of furniture for MHS WW and Gallegos Elem.; and • Deferred/Deleted Projects as listed below: • Transportation Center $ 8,899,987 • Food Services Center $15,745,464 • Fine Arts $18,843,631 • Magnet School $32,179,285 • Administrative Complex * $ 9,000,000 • Contingency, Land, Equipment & Wiring $14,000,000 Total $98,668,367 * Assumes that Admin. Complex requirement was met with procurement of Rappaport Building $1,922,902.00, as well as completion of Nixon Field House $2,098,095.81.
Construction Timeline / Sequence of Projects • The Construction timeline and priority of projects is based on the following factors: • Defined Scope and Needs Assessment • Land Availability • Funding • Design/Architect • Procurement • Logistics • Compliance
Recommendation • After discussion, evaluation, and bond counsel participation of the financial status and construction timelines, the recommendation is as follows: • Approval of Option 2
$57M Bond EstimatedConstruction2006 Series 09/28/06 Original Estimates
$57M Construction Bond2006 Series 09/28/06 Original vs. New Estimates *No feasibility study, revised amount for Alter. Ed Campus & 5th MS
$57M Construction Bond2006 Series Fund Sources/RevenuesAs of 09/30/07
Conclusion • Estimated shortfall of $35,520,976 • Causal and other factors (List is not all inclusive): • Under estimation of original project costs during planning stages; • Inflation (General and Construction related); • Unpredictable substantial increase in construction costs;
Conclusion (cont.) • Studies were not available to substantiate original allocated bond projections; • There was no scope nor program requirements to support original allocated assessment; • Feasibility cost estimates have now been prepared with support of architects, engineers, administration, and staff; • Estimates are comprised of cost such as professional fees, land, equipment, furniture, relocation, temporary, and other contingency cost;
Conclusion (cont.) • Meetings were held with respective department heads and end users to develop program requirements based on a needs assessment to provide adequate facilities; • The studies were based on new construction rather than renovation of buildings; • Preliminary estimates are based on the proposed construction timeline. Further delays of these projects will generate additional costs; • Consultation was made with bond advisors and a legal opinion has been issued; • Other project needs have impacted the planning and funding of bond program.
Plans of Action • Issuance of New Debt; • Amendment of projects and/or funding; • Other action(s) as determined at workshop; • No action or deferred action.
Option 1 • Issuance of New Debt (Bond Election)
Option 2a • Prioritized projects as listed on previous page; • Addition of Fire Alarm System and OCR’s; and • Deferred/Deleted Projects as listed below: • Science Lab – Cigarroa HS $ 7,001,977 • Science Lab – Nixon HS $ 8,091,783 • Science Lab – Martin HS $ 7,135,636 • Alternative Education Campus * $10,307,554 • Fifth Middle School * $20,100,000 Total $52,636,950 *No feasibility study, revised amount for Alter. Ed Campus & 5th MS
Option 2b • Prioritized projects as listed on previous page; • Addition of Fire Alarm System and OCR’s; and • Deferred/Deleted Projects as listed below: • Early College HS $12,915,697 • Alternative Education Campus * $10,307,554 • Fifth Middle School * $20,100,000 Total $43,323,251 *No feasibility study, revised amount for Alter. Ed Campus & 5th MS
Option 2c • Prioritized projects as listed on previous page; and • Deferred/Deleted Projects as listed below: • Science Lab – Cigarroa HS $ 7,001,977 • Science Lab – Nixon HS $ 8,091,783 • Science Lab – Martin HS $ 7,135,636 • Alternative Education Campus * $10,307,554 • Fifth Middle School * $20,100,000 Total $52,636,950 *No feasibility study, revised amount for Alter. Ed Campus & 5th MS
Option 2d • Prioritized projects as listed on previous page; and • Deferred/Deleted Projects as listed below: • Early College HS $12,915,697 • Alternative Education Campus * $10,307,554 • Fifth Middle School * $20,100,000 Total $43,323,251 *No feasibility study, revised amount for Alter. Ed Campus & 5th MS
Construction Timeline / Sequence of Projects • The Construction timeline and priority of projects is based on the following factors: • Defined Scope and Needs Assessment • Land Availability • Funding • Design/Architect • Procurement • Logistics • Compliance
Recommendation • After discussion, evaluation, and bond counsel participation of the financial status and construction timelines we are recommending the following: • Approval of Option 2a
