Board Meeting 053118 00 BISD Capital Projects BHS 100 Building Replacement Agenda Board Meeting 053118 BISD Capital Projects REVENUE 2015 Assumptions Bond 2016 ID: 785536
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Slide1
BHS 100 BUILDING REPLACEMENT Board Meeting 05.31.18 00
BISD Capital Projects
Slide2BHS 100 Building ReplacementAgendaBoard Meeting05.31.18BISD Capital ProjectsREVENUE
2015 Assumptions Bond 2016
2018 Project Costs
BHS 100 Building Replacement
Cost
Phasing
Work Plan Timeline
BHS 100 Building PHASE II
Finance
Next Steps
Questions
Slide3REVENUE 2015 Assumptions Bond 2016 2018 Project Costs
00
BISD Capital Projects
Slide4BHS 100 Building ReplacementWhy Don’t We Have Enough Money?2015 AssumptionsConservative request to taxpayersOptimize fund balancesTax stabilityMaximize interest earningsClass size reduction grantState Match eligibility (BHS) OSPI Calculation $2.6 (October 2015)Optimistic view of escalationDecember 2016 CoBI stormwater code revisionsBoard minutes October 29, 2015 “ Additional revenue sources include: OSPI State Match funds, Interest earnings, 2009 Balance”.
Board Meetng05.31.18
BISD Capital Projects
Slide5BHS 100 Building ReplacementBond 2016ACTUAL BOND REQUEST 2016
+ PLUS
ASSUMED REVENUE 2015
State Match
$ 2,600,000
Class Size Reduction 1,200,000
2009 Interest Earnings 500,000
2016 Interest Earnings 500,000
2006 Blakely Fund Bal.
289,000
2009 Cap. Fund Bal. 5,420,854
TTL Assumed Resources $ 10,509,854
Blakely $ 39,000,000
BHS 100 Building 30,000,000
Essential Renovations 12,200,000
Total Bond Request $ 81,200,000
TOTAL ASSUMED
$ 91,709,854
Blakely
$
45,508,075
BHS 100 Building 33,866,341Essential Renovations 12,200,000
TOTAL ESTIMATES $ 91,574,416
Board Meeting05.31.18
BISD Capital Projects
ESTIMATES WITH ESCALATION 2015
Slide6BHS 100 Building Replacement2018 Project CostsACTUAL BOND REQUEST 2016
State Match
$
2,600,000 TBD
Class Size Reduction
1,200,000
2009 Interest Earnings
500,000
2016 Interest Earnings
500,000
2006 Blakely Fund Bal.
289,000
2009 Cap. Fund Bal.
5,420,854*
2009 Cap. Fund (Blakely) 2,287,883
TTL Confirmed Revenue 3,576,883
TTL Revenue To Date $ 84,766,883
Blakely $ 39,000,000 BHS 100 Building 30,000,000Essential Renovations 12,200,000Total Bond Request $ 81,200,000
TOTAL DEFICIT $ 9,565,613
Blakely $ 47,161,518Deductive CO - 673,338Deduct CO Goal - 956,929Blakely 45,531,251BHS 100 Building 36,601,245Essential Renovations 12,200,000
TOTAL ESTIMATES
$
94,332,496
Board
Meeting
05.31.18
BISD Capital Projects
ACTUAL
WITH ESCALATION
2018/19
+ PLUS CONFIRMED REVENUE
2009 Essential Renovations Complete
*
District-wide
s
ecurity improvements, paint (Woodward, Sakai, Ordway), ILC improvements, BHS
Stadium
scoreboard|sound
, STEM classrooms, BHS breezeway replacement, HVAC, field storage,
water quality, storage improvements, photography retro-fit, BHS field equipment, district-wide
signage|striping
, portable
relocation|CoBI
stormwater
= $
3,132,971
Slide7Provide Construction Cost (May 2018) $ 21,851,208
Escalation to May 2019 @ 5.88%
$ 1,284,851
Total Construction Cost May 2019
(Design/Bid/Build)
$ 23,136,059
Project Development/Soft Costs @ 48.2%
$ 11,151,580
Total Project Cost
$ 34,287,639
Bid Climate/Low
Competition -
10% on Construction Cost
$ 2,313,606
Total Project Cost
w/
Market
Premium
$ 36,601,245
Concept C* *Pre Final Ed Spec | CUP | ExclusionsProject Cost Estimate
Slide8Provide Construction Cost (May 2018) $ 21,851,208
Escalation to May 2019 @ 5.88%
$ 1,284,851
Total Construction Cost May 2019
(Design/Bid/Build)
$ 23,136,059
Project Development/Soft Costs @ 48.2%
$ 11,151,580
Total Project Cost
$ 34,287,639
Bid Climate/Low
Competition -
10% on Construction Cost
$ 2,313,606
Total Project Cost
w/
Market
Premium
$ 36,601,245
Concept C* *Pre Final Ed Spec | CoBI | ExclusionsBond request April 2015 without escalation $30,000,000 ($6,601,245)Project Cost EstimateShortfall
Slide9Provide Exclusions: Premiums for GCCM contracting. Allow 10% of Total Project Costs. Additional parking lots and site reconstruction beyond 2.5 acre siteCampus wide storm and water quality upgrades. Unforeseen conditions.Construction timeline and phasing
Construction
Cost
(May 2018)
$ 21,851,208
Escalation to May 2019 @
5.88%
$ 1,284,851
Total Construction Cost May 2019
(Design/Bid/Build)
$ 23,136,059
Project Development/Soft Costs @ 48.2%
$ 11,151,580
Total Project Cost
$ 34,287,639
Bid Climate/Low
Competition -
10% on Construction Cost
$ 2,313,606 Total Project Cost w/ Market Premium $ 36,601,245
Concept C* *Pre Final Ed Spec | CUP | Exclusions
($6,631,031)
($8M-$10M)
Project Cost Estimate
“Gap”
Slide10BHS 100 BUILDING REPLACEMENT Cost Phasing Work Plan Timeline 00
BISD Capital Projects
Slide11BHS 100 Building ReplacementProject PhasingBoard Meting05.31.18BISD Capital ProjectsMusic
DramaPERFORMANCE
EDUCATIONAL
PROGRAMS
PHASE ONE
PHASE TWO
Electives
CTE | Arts | SPED
THEATER
Slide12Phase I
Phase II
© MAHLUM
Concept C :
Phasing
Slide13CTE | ARTS | MUSIC | SPECIAL EDUCATIONBHS 100 Building ReplacementPhase I | IIBoard Meeting05.31.18BISD Capital Projects
PHASE ONEGraduation Requirement Emphasis400 student cohort
Fine Arts - 2 credits (4 semesters)CTE – 1 credit (2 semesters)
Current School Year 2017/18
1,787 Students enrolled in CTE and Arts Classes
213 Students
enrolled in
Music (excluding Vocal) Classes
108
Students enrolled in
Drama | Vocal Classes
PHASE TWO
Drama
Vocal
Slide14Construction Cost (May 2018) $ 16,298,446
Escalation to May 2019 @ 5.88%
$ 958,349
Total Construction Cost May
2019
(Design/Bid/Build)
$
17,256,795
Project Development/Soft Costs @ 48.2%
$ 8,317,775
Total Project Cost
$
25,574,570
Bid Climate/Low
Competition -
10% on Construction Cost
$ 1,725,679
Total Project Cost
w/ Market Premium $ 27,300,249 $ 30,000,000
Concept C* 2016 Bond*Pre Final Ed Spec | CUP | ExclusionsCost Estimate:Phase I
Exclusions: Premiums for GCCM contracting. Allow 10% of Total Project Costs. Additional parking lots and site reconstruction beyond 2.5 acres. Campus wide storm and water quality upgrades. Unforeseen conditions. Construction timeline and phasing.
Slide15Construction Cost (May 2018) $ 6,027,762
Escalation to May 2020 @ 10.6%
$
675,109
Total Construction Cost May
2020
(Design/Bid/Build)
$
6,702,871
Project Development/Soft Costs @ 48.2%
$
3,230,784
Total Project Cost
$
9,933,655
Bid Climate/Low
Competition -
10% on Construction Cost
$
670,287
Total Project Cost
w/
Market
Premium $ 10,603,942
Concept C*Exclusions: Premiums for GCCM contracting. Allow 10% of Total Project Costs. Additional parking lots and site reconstruction beyond 2.5 acres. Campus wide storm and water quality upgrades. Unforeseen conditions. Construction timeline and phasing. *Pre Final Ed Spec | CUP | ExclusionsCost Estimate:Phase II (1 Year)
Slide16Supt. Advisory Work Group*Work Plan TimelineBoard Meeting5.31.18BISD Capital ProjectsSD | DD | CD | Building Permit w/approval for Phase I & Phase II (Alternate) Cost $36,601,245
2018
2019
2020
2021
May
June
July
Aug.
Sept.
Oct.
Nov
Dec.
Jan.
Feb.
Mar
April
May
June
July
Aug.
Sept.
Oct.Nov.Dec.Jan.Feb.MarAprilMayJune
JulyAug.Sept.Oct.Nov.Dec.Jan.Feb.MarAprilMayJuneApproval Phase I Concept CCapital Levy/Bond Resolution Nov 5 Election$36,601,245
$38,431,307Construction w/approval for Phase II $10,603,942 Escalation + $1,302,946Move in March 2021 **$40,352,873Construction Phase I - $27,300,249 Sept 2019 - Move in March 2021 Capital Levy/Bond Resolution Feb 12 ElectionCapital Levy/Bond ElectionCapital Levy/Bond Election
*Explore public and private options for additional funding and provide recommendations to school board.**These numbers assume a July 2020 Bid for Phase II separate from the bid for Phase I
Slide17BHS 100 BUILDING PHASE II Finance Dave Trageser Managing Director Local
Government Finance D.A. Davidson & Co.
00
BISD Capital Projects
Slide18BHS 100 Building ReplacementFinancing OptionsBoard Meeting05.31.18BISD Capital ProjectsVoted Unlimited Tax General Obligation (UTGO)BondsCapital Levy (Cash flow or Front-loaded with Non Voted Limited General Obligation (LGO) Bonds
Private Fund Raising
Stand-Alone Non-Voted Debt (LGO Bonds)
Repurpose Commons until future Master Plan funding is available
PHASE I
PHASE II
Bridging the Gap
Slide19BHS 100 Building ReplacementDebt CapacityBoard Meeting05.31.18BISD Capital Projects
Slide20BHS 100 Building ReplacementTax Rate PlanningBoard Meeting05.31.18BISD Capital Projects
$ 0.11
Slide21Voted UTGO Bonds60% Yes vote required with validation requirementExcess levy to pay debt serviceAll proceeds available at closing20 years or longer fixed rate financing availableFor $8 million: Estimated $0.09/$1000 AV increaseAnnual tax increase $59 or $4.95 per monthFor $10 million: Estimated $0.11/$1000 AV increase
Annual tax increase $73 or $6.05 per month *Tax Base - Median Bainbridge Island Residential Assessed Valuation is
$
660,520 pursuant to Kitsap Assessor 2018 Levy Reports (DA Davidson).
BHS 100 Building Replacement
Financing Options
Board
Meeting
05.31.18
BISD Capital Projects
Slide22Capital Levy50% Yes vote requiredLevy available annually to pay new construction and renovation costs1-6 year levyProceeds available based upon annual property tax collectionsNeed to be mindful of project inflation and tax collection percentagesMay “front fund” levy with Non-voted LGO Bond proceeds(Within 3/8 of 1% AV statutory authority equates to $27 million)BHS 100 Building ReplacementFinancing OptionsBoard Meeting
05.31.18BISD Capital Projects
Slide23Capital Levy - continuedBond proceeds can’t pay for new construction, only renovationBond principal can be repaid from capital levy, but interest paid from other sources ie general fundFor $8 million project:6 year capital levy generates an approximate $0.17/$1000 AV increaseAnnual tax increase $112 or $9.36 per monthFor a $10 million project:6 year capital levy generates an approximate $0.21/$1000 AV increase Annual tax increase $138 or $11.56 per month
*Tax Base - Median Bainbridge Island Residential Assessed Valuation is $660,520 pursuant to Kitsap Assessor 2018 Levy Reports (DA Davidson).
BHS 100 Building Replacement
Financing Options
Board
Meeting
05.31.18
BISD Capital Projects
Slide24Stand-Alone Non-Voted (LGO Bond)Issued with 3/8 of 1% statutory authorityPaid from general fund or other sourcesTake-out | pay-back or refinancing concernsBHS 100 Building ReplacementFinancing OptionsBoard Meeting
05.31.18BISD Capital Projects
Slide25Private DonationsSteering Committee MembersCommunity InterestCorporate DonationsPartial FundingGrantsNaming RightsBOARD DECISION PHASE II TIME FRAMESNOVEMBER 2018 - FEBRUARY 18, 2019 ELECTION
JULY 2019 – NOVEMBER 5, 2019 ELECTION
BHS 100 Building Replacement
Financing Options
Board
Meeting
05.31.18
BISD Capital Projects
Slide26Superintendent’s Advisory Work Group Board Approval for General Contractor | Construction Manager (GC/CM) – June 13Educational SpecificationsConditional Use Permit ProcessInterim Classroom LocationsFinal 2016 Bond Issuance
BHS 100 Building ReplacementNext StepsBoard Meeting
05.31.18
BISD Capital Projects
Slide27QUESTIONSBoard Meeting05.31.18BISD Capital Projects