board facilities update and planning 120715.pdf
TRANSCRIPT
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Facilities Planning
Sequim School District 323
December 7, 2015
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Facilities Planning 12/07/15
• K-3 Class Size Reduction Facilities Grant
• School Construction Bond
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Facilities Planning 12/07/15
• K-3 Class Size Reduction Facilities Grant
– Authorized by 2ESSB 6080
– Passed during 2015 Legislative Session
– Intent is to assist districts add K-3 classrooms to meet funded class sizes in 2017-2018 (aka K-3 CSR)
– Allocates $200 million to fund construction of modular or permanent classrooms
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Facilities Planning 12/07/15
• K-3 Class Size Reduction Facilities Grant
– Requires application by district (completed on December 1)
– Application verified by WSU Energy Extension offices
– Requires a local match which must be dedicated by March 1, 2016
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Facilities Planning 12/07/15
• K-3 Class Size Reduction Facilities Grant
– Awards are formula based
Necessary Added Classrooms 7
times ((School Construction Assistance Program Matching Ratio) +
30.75%
(Free and Reduced Lunch Rate times 20%)) 46% x 20%
Times Modular or Permanent Construction Reimbursement Rate
Modular = $210,000Permanent=$615,083
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Facilities Update Planning 12/07/15
• K-3 Class Size Reduction Facilities Grant
– Initial eligibility indicates 7 “Necessary Added Classrooms”
– Permanent Construction Eligibility = $1,720,080
– Modular Construction Eligibility = $587,265
• Modular requires placement on permanent foundation
– Requires a local match which must be dedicated by March 1, 2016
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Facilities Planning 12/07/15
• School Construction Assistance Program
– Also known as “state matching funds”
– District is eligible for $4.3 million in SCAP funds IF it tears down what is currently known as the Sequim Community School building
– Combined with K-3 Class Size Reduction Grant, district could receive total $6 million in construction assistance
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Facilities Planning 12/07/15
• School Bond Proposal
• Three Concerns
– Projected Elementary Enrollment
– Construction Costs Escalation
– Interest Rates
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Facilities Planning 12/07/15
Elementary Enrollment
Projected to Grow by 144 students by
2023
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Facilities Planning 12/07/15
• School Construction Bond Proposal-Escalation– Escalation is the increase of construction costs due to
rising market demand for a limited supply of labor and materials.
– Chimacum, Port Townsend, Central Kitsap, South Kitsap all will have bond proposals on the February, 2016 ballot.
– Tacoma has yet to bid projects for its $500 million bond passed in 2014.
– BLRB Architects and ESD 112 Construction Services Group estimate escalation to range from 4% to 11% annually.
– Updated cost estimate for projects included in Nov 15 bond proposal includes escalation of $5 million.
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KITSAP SUN 30 NOV 15
BELFAIR — The North Mason School District has selected the Berschauer Group in Olympia as the contractors to complete the remodel of the former North Mason High into the new Hawkins Middle School.
The school board voted Tuesday to move forward with the lowest bidder, at $15.8 million, after the district went out to bid for the second time. Previous bids came in at about 22 percent higher than the district’s plans for the remodel, estimated initially at about $14.7 million, said Eric Nelson, construction manager for the district.
“On the second go-round, we were much more pleased with the pricing and feedback,” Nelson told school board members. “We knew we had to take a look at our project (after the first bid). The school will still be very nice and have a lot of the same bells and whistles.” After the first round of bids, district administrators had to decide whether to wait and hope prices would go down or move forward with a less expensive design, Nelson said.
“A 1 to 2 percent increase year to year is to be expected, but now … construction companies in the Pacific Northwest are at full capacity and prices could go anywhere, sometimes up to 10 to 15 percent,” he said. “We made the assumption that it’s only going to get worse.”
Nelson and his team, including architect Ray Mow of Erickson McGovern, made what they consider minor adjustments to bring down the price of the project. “The space plan didn’t change much, it’s still the same number of classrooms and everything,” he said. “It’s the stuff you can’t see, different things with mechanical and electrical systems. There was a lot of work redefining the site work outside of the building.”
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Facilities Planning 12/07/15
Project Name Current ProposalNovember 2015
Proposal
GWE-4 Classrooms, Gym $7,020,917 $6,441,557
New Elementary $26,509,611 $26,285,051
Locate New Elementary East $2,000,000 $2,000,000
SHS H Building Science Classrooms, PAC Band and Choir Rooms
$10,369,408 $9,258,340
Demolish Community School $746,216 $666,264
Reconfigure SHS B Building $1,956,192 $1,746,660
Remodel HHE D and A for Community School Uses $2,083,262 $1,097,884
Remodel District Kitchen $2,385,600 $2,130,000
Remodel SCS for Warehouse and Maintenance Shop $928,794 $829,280
Projects Total $54,000,000 $49,265,036
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• Current bond interest rate projections are 4.72% to 5.15%• Feb 2014 Bond Proposal Interest Rates were 3.47% to 5.11%
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Facilities Planning 12/07/15
Current Proposal as PresentedTax Rates per $1,000 of
Assessed Valuation
Projects Total $54,000,000
Estimated 2017 Debt Service Fund Levy Rate $0.67
Estimated 2017 Educational Programs & Operations Levy Rate
$1.49
Est 2017 EP&O and DSF Levy Rate Total $2.16
November 2015 Bond ProposalTax Rates per $1,000 of
Assessed Valuation
Projects Total $49,300,000
Estimated 2016 Debt Service Fund Levy Rate $0.59
Estimated 2016 Educational Programs & Operations Levy Rate
$1.52
Estimated 2016 EP&O and DSF Levy Rate Total $2.11
VS.
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Facilities Planning 12/07/15
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Facilities Planning 12/07/15
February 2016 Election
November 2016 Election
Difference
Bond Amount $54 million $59 million +$5 million
First Year Tax Collection Rate
$0.61 per $1,000/AV $0.67 per $1,000/AV+$0.06 per $1,000
/AV
Total Interest Costs $40.8 million $44.8 million +$4 million
What If We Wait a Year?
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$0.94
$2.30
$2.15
$1.60
$-
$0.50
$1.00
$1.50
$2.00
$2.50
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Co
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Sequim School District Total Local Levy History 2000-2015
15 Year Levy History
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Facilities Planning 12/07/15
• Disposition of Bond Funds
• Must be stated in authorizing resolution
• Three options– Projects listed in resolution
– Defeasance (buy back bonds, prior or current)
– Direct to other projects (requires public hearing)
– At completion of 1996 bond projects, excess funds were used to defease bonds ($300,000)
– District refunded (refinanced) outstanding bonds in 2008 saving taxpayers $280,000
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Facilities Planning 12/07/15
• Senior Property Tax Exemption– Exemption from the local schools portion of
property tax• EP&O Levy
• Debt Service Fund Levy (repays bonded indebtedness
• Capital Projects Fund Levy
– Must have combined household income of less than $40,000 per year
– Applicant must be 61 years of age or greater
– Requires application
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Urgencies and Visions= Current Elementary School Location
= Current Elementary Attendance Boundary
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Facilities Planning 12/07/15
• Timing
Election Date Resolution Due By
February 9, 2016 December 11, 2015
April 26, 2016 February 26, 2016
August 2, 2016 May 13, 2016
November 8, 2016 August 2, 2016
February 14, 2017 December 16, 2016
April 25, 2017 February 24, 2016
August 1, 2017 May 12, 2016
November 7, 2017 August 1, 2016
• Current EP&O Levy expires at the end of 2017• Election must occur in 2017 if it is to be renewed
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Facilities Planning 12/07/15
• Form of Request
Capital Projects Fund Levy
Bond
Duration One to Six Years Generally 20-25 Years
Voters Vote OnTotal Amount to Be Collected Each Year
Repayment of Bonds
Passage Requirements 50% + 1 60% Plus Certification
Allowed UseBuildings, FF&E,
Remodeling, Technology
Same as CPF Levy
Resource AvailabilityAs Property Taxes Are
CollectedWhen Bonds are Sold
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Facilities Planning 12/07/15
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Facilities Planning 12/07/15
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Facilities Planning 12/07/15
• Summary– District has applied for K-3 Class Size Reduction Facilities Grant
Funding– State Construction Assistance Program matching funds are
available– Elementary enrollments are anticipated to continue to increase– Construction costs are rising and will continue to do so– Indicators point to rising interest rates– District proposal is cost competitive when compared on a wide
range of scales– District has a track record of conservative financial management
(defeasance, refunding, projects within budget)
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Facilities Planning 12/07/15
Thank You!Questions?• Brian Lewis, Director of
Business Services• 360-582-3266• [email protected]