fullerton joint union high school district special meeting of the board of trustees january 22, 2013...
TRANSCRIPT
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FULLERTON JOINT UNION HIGH SCHOOL DISTRICT
SPECIAL MEETING OF THE BOARD OF TRUSTEES
JANUARY 22 , 2013
Capital Facilities Improvement Program
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Discussion Overview
Part 1 – Capital Facilities Improvement Program Identified Needs and Improvement Areas Program Teams Program Composition/Decisions Timeline General Obligation Bond Information Imminent Decisions/Action Steps
Part 2 – General Obligation Bond Refunding 2002 Series B $29,940,000 Refunding Opportunity
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CAPITAL FACILITIES IMPROVEMENT PROGRAM
Part 1
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Identified Needs and Improvement Areas
Seismic RetrofitSafety and SecurityCritical Systems
Classrooms Technology Infrastructure Food Service Parking Lots/Hardscapes Deferred Maintenance
Competitive Facilities Pools/Stadiums/Tracks/Fields Performing Arts Multi-Purpose/Second Gymnasiums Career Technical Education Program
Curb Appeal
See Master Facilities and Technology Needs Assessment 20134
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Sunny Hills High School Pool5
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District Sports Fields6
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District Sports Fields7
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District Stadiums and Bleachers8
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District Stadiums and Bleachers9
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District Gymnasiums10
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District Pools/Aquatics Facilities11
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District Pools/Aquatics Facilities12
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District Walkways/Painting13
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District Window and Door Systems14
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District Roofing Systems15
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District Parking Lots/Pavement16
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LHHS Shipping Containers17
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Curb Appeal – LHHS Whittier Boulevard18
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Program Teams
Capital Projects Program Development Team Program Manager Program Development and Planning State Eligibility and Funding
Capital Facilities Program Administration and Oversight Team In-house Support Staff Configuration
Director of Facilities/Construction Construction Project Supervisor(s)
Configuration Depends on Construction Management/Delivery Method Design Team
Core Design Team – Architect(s) Specialty Design Consultant(s)
Capital Financing Team Financial Advisor Underwriter(s) Bond Counsel
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Program Teams
Construction Management and Delivery Team Construction Manager Inspectors Testing Labs
Campaign/Election Team Survey/Polling Consultant Core Campaign Support Team (Outside) Election/Campaign Consultant (Outside)
Accountability/Oversight Team Bond Oversight Committee Program Audit Community Reporting
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Program Composition/Decisions
Construction Delivery Method(s) Design-Bid-Build Construction Manager – Multiple Prime Lease – Lease Back
Program Administration and Oversight Inside vs. Outside Personnel
In-house Management/Supervision Turnkey Program Management/Oversight
In-house Staff Configuration Facilities Director Construction Project Supervisor(s)
Specifications and Standards Educational Specifications Equipment Specifications Products and Materials Specifications Technology Standards and Specifications
Sole Source Items – Resolutions
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Program Timeline
Facilities Improvement Program and
Bond Campaign Timeline
Draft - February 7, 2012
Election June 3, 2014
Initiate Facilities Improvement
Program
Facilities Master Plan
Development
Facilities Needs Assessment
Community Survey (s)
Bond Campaign Form Bond
Campaign Committee
June 2014
Program Components Staff Preparation Facilities Program Financing Program Bond Program Bond Campaign Election
Financing Program Consultant Selection*
- Financial Advisor - Bond Counsel - Underwriter - Pricing Consultant
February 2012
March 2013
Attend CDIAC Debt Essentials 3 Day Seminar
Bond Program Consultant Selection
- Polling - Campaign
Facilities Program Consultant Selection
- Legal Counsel - Architect(s) - CEQA - Engineer(s) - Environmental - Constructability - Const. Manager - Testing Lab(s) - IOR(s)
Election Nov. ‘14 (Fallback date if
bond doesn’t pass in June.)
Develop Contingency
Repair Plans for Critical
Systems/Projects
Begin Meeting With Stakeholder
Groups Gather Input &
Feedback
Project Programing and
Design
28 Months
Bond Resolution Deadline
March 7, 2014
Critical Projects Plan Completion
Determine Bond Sizing and Type
(2/3 v. 55%)
*Consultants contingent upon type of bond sale, negotiated or competitive.
See Capital Facilites Program and Bond Campaign Timeline22
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General Obligation Bond Information
Capital Facilities Program Costs $275,710,500
Based on Facilities Needs Assessment
2013 Assessed Valuation$26,273,731,839Bonding Capacity Percent 0.0125Bonding Capacity $328,421,648Outstanding GO Bond Debt $54,260,000Available Bonding Capacity $274,161,648
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Existing GO Bond Information
Original Issue Amount $67,900,000Amount Outstanding$54,260,000Existing Tax Rate Authorization $19.90*2012/13 Tax Rate $15.79*
Current Tax − Home Value $500,000 $300,000 Annual Tax $78.95 $47.37 Monthly Tax $6.58 $3.94
Comparative Costs Grande Starbucks Mocha $3.65 Small Golden Spoon Yogurt $3.00 Gallon Self-serve Regular Gas $3.75
*Amount per $100,000 of assessed valuation24
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Questions
This is expensive!Why should I pay for this?So, what’s in it for me? A tax increase, really?What does my student/school get out of it?Given the current economy, how can the
District ask our community to pay for this?What’s wrong with the current District
facilities?But, I’m already paying for X,Y, and Z!
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Combined GO Bond Information
Available Bonding Capacity $274,000,000Maximum Prop. 39 Tax Rate $30.00*Existing Tax Rate Authorization $19.90*Combined $49.90*
Current Rate − Home Value $500,000 $300,000 Annual Tax $249.50 $149.70 Monthly Tax $20.79 $12.47
Comparative Costs Lunch at Souplantation $9.49 Great Clips Haircut $9.99 Two Subway $5 Footlong™ Sandwiches $10.00 Movie Ticket $11.50
*Amount per $100,000 of assessed valuation26
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Neighboring Districts Tax Rate Comparisons*
GO Tax Rate Per $100,000 Santa Ana USD $71.47 Tustin USD $55.86 Anaheim City SD $53.71 Fullerton Joint (Maximum) $49.90 Placentia-Yorba Linda USD $38.46 La Habra City SD $23.20 Fullerton Joint (Current) $15.79
So, what is the community willing to support? Polling consultant can survey the community to
determine types of projects and their relative level of support.
*Based on 2011/12 data27
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Imminent Decisions/Action Steps
Aquatics Facilities Prototype Select architect to design/develop plans for Sunny Hills High School pool replacement Recommendation/Action Step: Secure proposals from architectural firms
Facility Needs Assessment Review, evaluate, and incorporate current information into a Districtwide Facilities Plan Recommendation/Action Step: Secure proposals from architectural firms
Program Manager Select specialist to help set up program scope, framework, sequencing, budget, and
schedule Recommendation/Action Step: Initiate selection process for individual consultant
Capital Finance Program Composition Determine which type of financing method will be employed
Negotiated Sale with Underwriter Turnkey Underwriter Underwriter Pricing Consultant
Competitive Sale with Financial Advisor Select and Assemble Capital Finance Team Recommendation/Action Step: Initiate RFQ for Financial Advisor Recommendation/Action Step: Initiate RFQ for Polling Consultant
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GENERAL OBLIGATION BOND REFUNDING
2002 SERIES B$29 ,940 ,000
Part 2
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Existing GO Bond Refunding Opportunity
Outstanding GO Bonds Par Amt.Outstanding 2010 Refunding Bonds $29.120 m $28.020
m 2002 Series B Bonds $29.940 m $25.240
mRefunding Potential − 2002 Series B
Callable Par $22.940 million Call Date 8/1/15 Coupon Range 3.875% - 5.00% Potential Debt Service Savings $2.5-$3.5 million NPV Savings ($) $2.8 million (high
end) NPV Savings (%) 12.4% (high end)
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Existing GO Bond Refunding Opportunity
Estimated Cost of Issuance Bond/Disclosure Counsel $75,000 Ratings $30,000 Escrow Agent $2,500 Printing $1,000 Verification Fee $2,500 Cal Muni (Demographics) $2,000 Miscellaneous and Contingency $5,000 Total $118,000 Underwriter Discount $160,000 Total $278,000
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Existing GO Bond Refunding Opportunity
Recommendations Take Advantage of Refunding Opportunity Refund 2002 Series B Bonds Employ Negotiated Sale with Underwriter Recommendation/Action Step: Initiate Targeted RFQ
for an Underwriter
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Discussion/Questions/Comments
Thank you!