Los Angeles Community College District PROGRAM MANAGEMENT SERVICES Lease-Leaseback Industry Day

1. Los Angeles Community College DistrictPROGRAM MANAGEMENT SERVICESLease-Leaseback Industry Day January 23, 2014

2. AGENDA • 1) Welcome and Introduction 2) Project Forecast 3) Upcoming Projects 4) Registration with Planet Bids 5) What is Lease-Leaseback? • 6) Questions • 2

3. PROJECT FORECAST • 131 Projects across the District • $800M Budget for Projects • Los Angeles City College Student Services Demo and LRC • Los Angeles Harbor College Student Union • Mission College Central Energy Plant • Pierce College Digital Arts and Media • West Los Angeles College Learning Technology Center • Los Angeles Valley College Media and Performing Arts • Avg. 16 projects remaining per campus 3

4. LAVC ATHLETIC TRAINING FACILITY • Location • The Athletic Training Facility project will be located on the east side of the Los Angeles Valley College campus, between Hatteras St. to the north and Burbank Blvd. to the south. • Architect Construction Budget Delivery Method • Cannon Design $22,000,000Lease-Leaseback • Project Schedule • DSA Approval: January 2014Expected RFQ/RFP Issuance Date February 2014 • Expected Construction Commencement (Notice to Proceed) April 2014 • Expected Construction Phase Substantial Completion: August 2015 • Expected Close-Out Phase Completion: September 2015 • Project Intent • The project’s goal is to build a new Athletic Training Facility in order to meet the LAVC-Athletics program needs, and also to support physical weight training/lifting courses offered to prospective students and the community. • The Athletic Training Facility will complement the new Community Services Center building, which is currently under construction, to create a new athletic complex dedicated to the well-being of students, faculty, and the surrounding community of Los Angeles Valley College. • Project Description • Generally the project is divided into three areas: • Stadium field house, approximately 25,000 square feet. • Athletic Fields: Baseball field, softball field, javelin throw field, and archery/shot-put/hammer-throw field. • Pre-engineered Baseball & Softball field house (approximately 3,840 square feet) and parking lot (bid-alternate). • The Stadium field house will be bound by on the west side by the new Community Services Center (currently in construction) and on the east by the Monarch Stadium. Hatteras St. and parking lot E are located just north, and the athletic fields will be located just south of the Stadium field house. • The Athletic Fields portion of the project is the construction of a new baseball field, softball field, javelin throw field, and archery/shot-put/hammer-throw fields. • The bid-alternate pre-engineered Baseball & Softball field house will be located just south of the new athletic fields. The renovation of parking lot G will take place just south of the Baseball & Softball field house. • 4

5. PIERCE COLLEGE NORTH OF MALL Location The North of Mall project, as its name suggests, is located on the north side of the pedestrian mall, in a fairly central location on the campus, but with reasonable construction access to the site. Architect Construction Budget Delivery Method TBD $29,800,000 Lease-Leaseback Project Schedule (anticipated) Expected DSA Approval: Phase 1 – July 2010; Phase 2 - TBDExpected RFQ/RFP Issuance Date March 2014 Expected Construction Commencement (Notice to Proceed) June 2014 Expected Construction Phase Substantial Completion: Mar 10, 2015 (Phase 1) and Oct 17, 2016 (Phase 2) Expected Close-Out Phase Completion: December 2016 Project Intent A number of the North of Mall buildings have been vacated by departments moving to new space created on the campus. The intent of this project is upgrade and modernize the North of Mall buildings and bring a number of core academic programs at Pierce to a central location on campus and provide adequate space to accommodate the growth that has occurred in those programs. Project Description The North of Mall project involves completing the renovation, upgrading and modernization of seven (7) phase 1 buildings started under a previous construction contract that was terminated, and renovation, upgrading and modernization of four (4) phase 2 buildings. Total building GSF = 124,000 SF. Both phases have a site work component (softscape, hardscape and underground utilities). The work of each building typically involves repair or replacement of roof covering, new exterior walkway column covers, replacement of walls and windows on walkway side with full-height storefronts, ADA upgrades for full compliance with CBC and federal guidelines, HVAC upgrades, limited electrical and plumbing upgrades, full restroom renovation including ADA compliance, new exterior plaster, interior and exterior painting, security system, window treatments, communications and classroom technology upgrades. The phase 1 renovation was approximately 70% complete at time of termination. The project also includes fiber-optic cable infrastructure tied in to the MDF-1 and MDF-2 located in North of Mall buildings and extending to other North of Mall buildings and extending beyond North of Mall to other buildings on campus. Conduit is mostly already installed. 5

6. LACC SOUTH GYM RENOVATION • Location • The South Gym Building is located at the west side of the Los Angeles City College campus along Heliotrope Drive. • Architect Construction Budget Delivery Method • Harley Ellis Devereaux $13,412,479Lease-Leaseback • Project Schedule • DSA Approval: July 2013Expected RFQ/RFP Issuance Date April 2014 • Expected Construction Commencement (Notice to Proceed) July 2014 • Expected Construction Phase Substantial Completion: October 2015 • Expected Close-Out Phase Completion: November 2015 • Project Intent • The project goal is to renovate the existing physical education and fitness spaces in the South Gym Building to meet the expanding physical education program needs and also to support specialized physical education programs including: • Dance • Yoga • Weight-Training • Body Conditioning • Stress Management • Aerobics • The South Gym Renovation will complement the new Health, Fitness and Physical Education Building, which is currently under construction, to create a Physical Education and Wellness Complex for the well-being of students, faculties and the surrounding growing community at Los Angeles City College. • Project Description • This existing facility, built in 1959, is a two-story, tilt-up concrete framed building and approximately 32,000 gross square footage (GSF). It consists of a gymnasium, classrooms, studios and a weight room. In combination with the new Health, Fitness, Physical Education Building Project, the College will meet the Title 9 compliance requirements. The project includes: reconfiguring the existing interior spaces for instruction with enhanced circulation; increased building use efficiency; increased room size and spatial quality of various physical education; and special physical education use spaces and supporting amenities. These spaces within the South Gym will include: a gymnasium with basketball courts and bleachers, a weight room, dance studios, an Aquatics classroom, a Fitness Classroom, storage spaces, and support functions. In addition, this project will inspect and enhance the structural connections between roof/floor slabs to shear walls to comply with current building codes. The renovation work includes: structural/foundation work; new roofing; new HVAC/mechanical, electrical, plumbing and fire protection building systems; new ceiling systems; new glazing; new finishes; new doors and door hardware; ADA improvements; hazardous material removal; and lead base paint abatement. • 6

7. LACC DA VINCI HALL MODERNIZATION Location Da Vinci Hall is located in the center of the Los Angeles City College campus and on the south side of the Main Quad off Vermont Avenue. • Architect Construction Budget Delivery Method • Harley Ellis Devereaux$13,412,479Lease-Leaseback • Project Schedule • Expected DSA Approval: March 2013 • Expected RFQ/RFP Issuance Date April 2014 • Expected Construction Commencement (Notice to Proceed) July 2014 • Expected Construction Phase Substantial Completion: Dec 2015 • Expected Close-Out Phase Completion: Feb 2015 • Project Intent • The project goal is to provide instructional and administrative space for the Media Arts and Art/Architecture department tenants at Los Angeles City College. • The existing building currently contains the following functions: • Art + Architecture, Foreign Languages • Computer Applications - Office Technology • Information Technology Services • General assignment classrooms • The building will be vacated and modernized to accommodate various Art Department and Media Art Department functions, including Art, Architecture, Art Gallery, Journalism, Photography, general assignment classrooms, administrative offices and support functions. • The overall design concept encourages interaction, fosters a welcoming and inviting environment, and enhances the educational process for students, faculty and staff. • Project Description • This existing facility is a rectilinear-shaped, three-story concrete framed building of approximately 60,000 gross square footage (GSF), consisting of classrooms, specialty use spaces and administrative offices. The scope of work is the modernization of the existing concrete frame building constructed in 1962. This project includes gutting the building down to the structural frame and modifying the existing floor layouts to accommodate improved adjacencies and sizes of instructional and specialty use spaces. All new systems will be installed including: new roofing; new window glazing; new ceiling systems; new doors and door hardware; new finishes; new mechanical/electrical/plumbing and fire protection building systems; any related structural, ADA and Fire/Life Safety work required per Code and standards. • 7

8. REGISTRATION WITH PLANET BIDS • All procurements will be issued via Planet Bids. • Web-based presentation. 8

9. LEASE-LEASEBACK BASICS Historically: When funding for community colleges and K-12’s was tight back in the mid 1970’s, the statutes were enacted to create a financing option to permit the building of K-14 education facilities with private funds. However, the statutes do not require that private funds be used and whether through oversight or deliberately, the Legislature vested broad discretion in K-14 entities to decide how to award and enter into a construction contract under the statutes. 9

10. LEASE-LEASEBACK BASICS Present Day: For Community College Districts, the applicable statute is Education Code section 81335. The statutes can still be used to build education facilities with private funds. However, it would be wrong to think of the statutes solely as a funding option. In fact, because of the broad discretion K-12 Districts and Community College Districts enjoy under the statutes, it is more correctly thought of today as an alternative delivery method for construction projects. The discretion is so broad that Districts can use direct one on one negotiation to enter into a contract. However, we recommend a different approach. One that blends the best attributes of competitive bidding and one on one negotiations. 10

11. EDUCATION CODE SECTION 81335 et. seq. (1)Board of Trustees leases real property for at least $1 a year; (2) Lease requires construction of a building or improvements for the use of the District; (3) Title vests in the District during or at end of the lease term; and (4) Leases contain such other terms and conditions as the Board of Trustees may deem to be in the best interest of the District. 11

12. SO WHAT IS LEASE-LEASEBACK REALLY? • The most flexible construction project delivery method available to community colleges; and • A way to select a very competent and experienced construction firm to build or improve educational facilities based on a contractor’s: • qualifications • value • successful experience • references 12

13. LEASE-LEASEBACK PROCESS

14. QUESTIONS?