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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:
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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
