Request for Special Meeting – discussion of student housing options

1. Request for Special Meeting – discussion of student housing options Matthew E. Beecher Assistant Superintendent for Business Services January 16, 2013

2. Agenda • Enrollment statistics • Student housing • Long term direction influences near term options • Decisions made on January 30 must be made first • Timelines • Biographies of the advisors

3. Continued Growth Projected Mostly from sustained birth rates… But also from new construction??? Possibly economic necessity Agricultural labor appears steady

4. Historical Births => Kinders Births are greater on average in past seven years than any of the prior thirteen! Sustained, elevated births means growth regardless of new construction

8. Options for Near Term Needs • Near term options are dependent on the long term direction of the board. • It is the timing of when the board chooses to build the new school that determines what options are available • The timing of construction continues to be dependent upon the source of the district’s local match • Wait and see if a bond passes • Boundary changes now with MTYRE possibly needed in 2015 or 2016 • Sooner rather than later using Certificates of Participation • Overflow or boundary changes are viable options

9. Timelines – Local School Bond • Board outcome proposed for 1/30/2013 meeting is “Local School Bond” • Board calls for election 88 days prior to election • Election scheduled for June 3, 2014 • Financing available by December 2014 • Construction starts December 2014 • School opens January 2017

10. Timelines – Certificates of Particpation • Board outcome proposed for 1/30/2013 meeting is “Certificates of Participation” • February 8, District provides 17150 Notice • March 13, Board considers final form documents • Financing occurs in late April • Construction starts in May or June 2013 • School Opens August of 2015

11. Wait to see the outcome of a bond • Boundary changes rise to the top as near term option

12. Complexity of Boundaries

13. Projected Net Enrollment Impact • This is a summary of a boundary change scenario • It approximates the shape of an overflow option • This is a summary of the boundary change from the prior slide

14. If the board pursues COP financing • Overflow becomes a short term solution during school construction • Boundary changes can be postponed until the new school is completed and its boundaries drawn

15. Critical factors for special meeting • Information we have heard from our advisors: • DSA approved drawings set to expire • Local match financing • State match financing • Timing of next statewide election

16. The invited experts • Bruce Hancock – Consultant • John Baracy – Underwriter/Finance • Don Field – Bond/Disclosure counsel • Anthony Palazzo - Architect

17. Bruce Hancock • Will offer the board information about the district’s opportunities to use state funding for school construction through the Office of Public School Construction. • Bruce has 18 years of direct management and policy development experience in California public school construction funding programs • In 1998, Mr. Hancock was appointed by the State Allocation Board to the position of Assistant Executive Officer. In this capacity, Mr. Hancock served as the direct liaison between the Board and the Office of Public School Construction. • As Assistant Executive Officer, he assumed the duties of the Chair of State Allocation Board Implementation Committee and was directly responsible for developing Board regulations and policies regarding virtually all facilities-related legislation. • In particular, Mr. Hancock was instrumental in the development of State Allocation Board regulations for the current School Facilities Program (SFP) and the "Williams Settlement" legislation.

18. John Baracy • From Stone and Youngberg • Will be providing the board with information about options available to the district to use certificates of participation to finance school construction. • John brings more than 14 years of experience to California and Arizona finance. • He has worked with more than 50 California school districts structuring nearly 100 transactions valued well over $3.5 billion.   • Mr. Baracy has expertise in the managing and structuring of new money and refunding issues for general obligation bonds, certificates of participation, Mello-Roos bonds and all other K-12 education finance vehicles.

19. Don Field • From Orrick Herrington Sutcliff and Hayes will provide information regarding the legal requirements of certificates of participation. • Mr. Field is a partner in Orrick's Public Finance Group and the co-chair of Orrick’s School and Community College Finance/General Obligation Bonds Practice Group.  Mr. Field has extensive experience as bond counsel, disclosure counsel and underwriter's counsel in the financing techniques used by school and community college districts, cities and counties in California.  • His practice focuses on local governmental infrastructure financing, including general obligation bond financing, municipal lease financing, land-secured financing and redevelopment financing, as well as tax and revenue anticipation note (TRAN), pension obligation and other post-employment benefit (OPEB) obligation financings.  • Mr. Field serves as the lead attorney for the California School Boards Association's annual tax and revenue anticipation note pool, which consisted of 149 participants in 2009.

20. Anthony Palazzo • Finally, Anthony Palazzo of Phillips Metch Sweeny and Moore and the architect of the school at the Aquistapace property will be available to share information about the design of the school. • Mr. Palazzo was the architect for the Liberty school expansion project, many of the district’s portable building installations and also developed the district’s master plan. • Mr. Palazzo also worked with SMBSD in its modernization projects in the early 2000’s • http://www.pmsm-architects.com/portfolio.html

21. Wrapping up • Based on the early conversations we have had with these experts, we believe that there is overwhelming evidence that the board will want to proceed immediately with the process of building a new school financed by Certificates of Participation. • That this is a sound decision, and • That starting now will: • Save the district money • Preserve the DSA approved drawings • Allow the district to take advantage of millions of dollars in state construction match • Provide adequate student housing for the district’s growing student population at the soonest possible point

22. Invitations • I would like to extend an invitation, with the permission of the board majority, to individual board members who would like to meet with me to discuss any of the information available to date, or as it develops, prior to the special board meeting.

23. Questions???