Capital Facilities Improvement Program

1. Capital Facilities Improvement Program Fullerton Joint Union High School District Special Meeting of the Board of Trustees January 22, 2013 1

2. 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 2

3. Part 1 Capital Facilities Improvement Program 3

4. Identified Needs and Improvement Areas • Seismic Retrofit • Safety and Security • Critical 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 2013 4

5. Sunny Hills High School Pool 5

6. District Sports Fields 6

7. District Sports Fields 7

8. District Stadiums and Bleachers 8

9. District Stadiums and Bleachers 9

10. District Gymnasiums 10

11. District Pools/Aquatics Facilities 11

12. District Pools/Aquatics Facilities 12

13. District Walkways/Painting 13

14. District Window and Door Systems 14

15. District Roofing Systems 15

16. District Parking Lots/Pavement 16

17. LHHS Shipping Containers 17

18. Curb Appeal – LHHS Whittier Boulevard 18

19. 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 19

20. 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 20

21. 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 21

22. Program Timeline See Capital Facilites Program and Bond Campaign Timeline 22

23. General Obligation Bond Information Capital Facilities Program Costs $275,710,500 • Based on Facilities Needs Assessment 2013 Assessed Valuation $26,273,731,839 Bonding Capacity Percent 0.0125 Bonding Capacity $328,421,648 Outstanding GO Bond Debt $54,260,000 Available Bonding Capacity $274,161,648 23

24. Existing GO Bond Information • Original Issue Amount $67,900,000 • Amount Outstanding $54,260,000 • Existing 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 valuation 24

25. 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! 25

26. Combined GO Bond Information • Available Bonding Capacity $274,000,000 • Maximum 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 valuation 26

27. 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 data 27

28. 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 28

29. Part 2 General Obligation Bond Refunding 2002 Series B $29,940,000 29

30. 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 m • Refunding 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) • NPVSavings (%) 12.4% (high end) 30

31. 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 31

32. 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 32

33. Discussion/Questions/Comments Thank you!