BERKELEY UNIFIED SCHOOL DISTRICT

TO:                  Donald Evans, Ed.D., Superintendent

FROM:             Executive Cabinet

DATE:              June 13, 2018

SUBJECT:         Bond and Special Tax Planning Update

BACKGROUND INFORMATION

The General Obligation Bonds of 1992, 2000 and 2010 have made a significant difference in the quality of our schools since 1992.  The Maintenance Special Tax of 2000 and 2010 have allowed the District to keep the schools well maintained.  Thanks to these two types of measures, the schools have been well built and well maintained and have also provided some measure of fiscal relief to the General Fund by relieving it from the expense of the maintenance department, the savings accrued from solar projects and other energy saving projects, and have provided technology and furniture replacement, and allowed the District to fund emergency projects without the use of the General Fund.  

The current bond measure will likely run out of funds in 2022 with few expenses occurring after 2021.  The maintenance special tax will expire in 2023.    In the past two election cycles, the Board has brought both a bond and special tax to the same election date.  This is the first formal update of a proposed bond and special tax to go to the Board, although there have been many informal discussions about proposing a bond and special tax to go before the voters in 2020.  

The Board reviewed educational specifications in June 2016.  The Board is being asked to approve a firm to develop a Facilities Master Plan at this Board Meeting.  If the District wants to keep the option of proceeding with a 2020 bond and tax, it is time to initiate a steering group or Superintendent’s Measure Planning Workgroup.  This small group can help guide the master planner, including making refinements to the educational specifications, can help consider alternatives for a special tax, can review and direct the master planner on community outreach efforts and can review the draft of the report.   Subsequent to that period, a larger Superintendent Facilities Committee can be convened to broaden the discussion and to consider elements that may not be fully evaluated within the master plan (such as technology allocations, possible large equipment allocations and other ideas which might come from the public). Finally, efforts will be needed to do more detailed financial analysis prior to formal presentations to the Board, a survey will likely be conducted and the Board may make adjustments to the proposal prior to a final recommendation to the Board and ballot measures must be written.  Attached to this document is an Appendix which lays out the tasks.

FISCAL IMPACT

The Maintenance Special Tax provides a little more than $6.1 million in funding.  The current bond was approved by the voters for $210 million.  The size of a future bond is unknown at this time.  

RECOMMENDATION

Receive and discuss a General Obligation Bond and Maintenance Special Tax Update

Bond and Special Tax Planning Process Summary

(Appendix A)

June 2015-June 2016

Educational Specifications

• Hire educational specifications consultant
• Complete educational specifications

   

  July 2018 – February 2019

  Masterplan

• June 2018: Hire consultant to help the District develop a masterplan
• Consultant to analyze how well each school can deliver 21^st century learning in the current facilities
• Consultant to review and determine the state of the buildings in the District
• Consultant to incorporate previous individual school or building masterplan efforts
• Consultant to lead public outreach efforts as authorized by the District
• Consultant to estimate the cost for all items
• Consultant to prepare a rough prioritization matrix
• Consultant to prepare a draft masterplan
• Consultant to prepare a final masterplan

   

  May 2018 – March 2019

  Superintendent’s Measure Planning Workgroup

• May 2018: Create a Superintendents Planning Group
• June 2018: Discuss linkage between maintenance special tax and any new bond
• June 2018: Develop a maintenance special tax plan with no increase and one with an increase that covers the split role issue and PERS increases
• July 2018- February 2019: Direct Masterplan Consultant
• July –August 2018: Review outreach effort proposed by the masterplan consultant.
• September 2018: Verify whether all the planned maintenance activities from 2010 can still fit into a maintenance special tax.  This can inform what may need to be covered in a new bond.
• February 2019: Discuss final recommendation for the maintenance special tax.
• February 2019: Review and comment on draft masterplan

   

  January 2019 – June 2019

  Superintendent’s Facilities Committee

• January 2019: Formulate a Committee
• February 2019-May 2019: Discuss and consider priorities
• March 2019: Hold a workshop to solicit other ideas that could be considered for a bond measure
• April 2019: Review prioritized list of projects
• May 2019: Hold a workshop discussing revised prioritized projects  
• Early June 2019: Hold additional outreach on revised plan
• June 2019: Finalize a report to the Board on priorities

   

  September 2019 – December 2019

  Groundwork for Spring Decisions

• September: Preliminary voter poll on tax rate (both measures) and support
• Ongoing: Executive Cabinet, FSMOC, CBOC, and possibly Ed Services to review options
• Ongoing: Outreach and presentations to community partners
• November: Report on activities and revised components for both measures

   

  January – March 2020

  Budget Workshops and Public Opinion Surveys

• February: Stakeholder Focus Groups
• March: Public survey on tax rate for both measures and planned projects for the bond

   

  April 2020

  Board Hearing on Bond and Parcel Tax Renewal

• Outline of new measures (percentages/purposes; Additional considerations for Funding

   

  May 2020

  Final Recommendation on Measure Components to Board

• Include project list for the bond

June 2020

Board Resolution Approving Final Version of the Measures

November 2020

November 3 Election Ballot.  Bonds could be approved to be issued after that date.  The parcel tax would presumably go into effect in 2022.

BERKELEY UNIFIED SCHOOL DISTRICT

TO:                  Donald Evans, Ed.D., Superintendent

FROM:             Lew Jones, Interim Director of Facilities

DATE:              June 13, 2018

SUBJECT:         Approval of HY Architects to Prepare a Masterplan for Berkeley Unified School District

BACKGROUND INFORMATION

On February 28, 2018, the Board of Education approved a Request for Proposal (RFP) to hire a masterplan consultant for the District.  Seven proposals were received.  Bill Savidge from K-12 School Facilities and Lew Jones performed a technical evaluation of the proposals and recommended that three firms be interviewed. 

The Superintendent, the Associate Superintendent of Educational Services, the Acting Assistant Superintendent for Fiscal Services, the Technology Director and the Interim Director of Facilities interviewed the three firms.  The interview team unanimously recommended that HY Architects be recommended to the Board for approval. 

The masterplan process has three major components.  The first step is a building evaluation and educational facilities evaluation of our schools, incorporating the site or building specific masterplans recently developed.  The second step is to develop site specific masterplans.  The final step is to compile the site specific plans into a comprehensive document and engage the community in the draft masterplan.  We anticipate that this final step will need more discussion with the Superintendent and his team to determine what level of engagement will be undertaken.  To the extent the District asks for greater involvement than HY has suggested, the cost of the services will go up.  Likewise, if the District determines that the community engagement can be pared back, the cost of the service will go down.

POLICY/CODE

Public Contract Code 10510.4 – 10510.9.

FISCAL IMPACT

Contract award by this action: $400,000 to be Paid from Measure I Bond Funds.  Project budget to be established with the Measure I Bond Reallocation on this same Agenda.

STAFF RECOMMENDATION

Approve a contract with HY Architects to prepare a masterplan for BUSD.   

BERKELEY UNIFIED SCHOOL DISTRICT

TO:                  Donald Evans, Ed.D., Superintendent

FROM:             Lew Jones, Interim Director of Facilities

DATE:              June 13, 2018

SUBJECT:         Facilities Plan Modifications: Approve Recommendation to Adjust Line Item Budgets in Measure AA

BACKGROUND INFORMATION

On February 7, 2018, the Board of Education approved the latest revision to the Measure AA budget lines when it added some money for Rosa Parks roof, moved program expenses to Measure I and made adjustments in supplies, equipment, travel/conference and rentals.  In order to have sufficient funding to complete desired projects other adjustments are needed.  They are:

1. Longfellow Maker Space: Decrease the budget by $323,000.  The project will actually need additional funding, but it is a CTE project and belongs in Measure I with other CTE projects.  There is sufficient funding in the CTE budget line of Measure I to accommodate all expenses starting in Fiscal Year 2019 for this project;
2. King CDC Play structure: Eliminate the remaining funding for this project, freeing up $275,353.  There is no plan to complete this project;
3. Rosa Parks Roof: Increase the budget by $1,350,000 in order to do the proposed work.  The initial budget proposed is inadequate to perform the work.   Work will be done sometime in 2019;
4. Professional Consulting Services: Increase this budget line by $200,000 to close out legacy projects.  Legacy projects are those projects that DSA has not yet certified for a variety of reasons.  Four years ago we had 77 projects which were not yet certified.  We currently have twelve that are not certified and two more (Rosa Parks and Longfellow) we plan to have certified with the roof and Maker Space project architects.  The budget is requested to focus on certification efforts for the remaining buildings;
5. Increase Income:  Increase the income by $754,000 to account for the 6^th Street surplus property deposit and to account for a small amount of interest and rebates.

Attached to this document are both a one page summary of expenses in Measure AA and before and a more detailed breakdown of all expenses and income in Measure AA and before.   Please note that there was a minor mistake in the February 7, 2018 statement of available carryover. 

There are potential additional challenges and opportunities in the future.  The following list is not comprehensive, but a basis for future thinking:

1. No potential OPSC dollars are included in the budget.  This conservative approach is recommended at this time, but the District does have substantial eligibility.  Funds could be placed in Measure AA or Measure I;
2. No reimbursement from the City for project costs for the Board Room are included although the City and the Board have been in negotiations on this subject.  Expenses for the project were made in Measure AA; and,
3. The Rosa Parks roof is in early design.  At this preliminary level it is unclear of how long the project will take, but early indications are that the multipurpose building will need to be under construction for more than just a summer.  A temporary food service building may be needed.   

FISCAL IMPACT

The adjustments are within the overall budgets.  There is an available balance of $414,025.    

STAFF RECOMMENDATION

Approve the adjustment recommended above.  

BERKELEY UNIFIED SCHOOL DISTRICT

TO:                  Donald Evans, Ed.D., Superintendent

FROM:             Lew Jones, Interim Director of Facilities

DATE:              June 13, 2018

SUBJECT:         Facilities Plan Modifications: Approve Recommendation to Adjust Line Item Budgets in Measure I

BACKGROUND INFORMATION

On February 28, 2018, the Board of Education approved the latest revision to the Measure I budget lines when it added $2,000,000 to add a security project.  In order to have sufficient funding to complete desired projects other adjustments are needed.  They are:

1. Berkeley Community Theater: Increase the budget by $3,750,000 in order to do the proposed work in the classroom wing and to provide an interior connection to the Little Theater.  The increase is almost entirely due to three factors: seismic work required by DSA, increased escalation because the construction will occur later than original thought, and recognition of the current bidding climate;
2. Maintenance and Operations: Eliminate all future planned work, currently budgeted at $5,674,000.  There are insufficient funds currently in this budget to initiate a project;
3. CTE at BHS and Adult: Transfer the Longfellow Maker Space project to the Measure I CTE budget line beginning next Fiscal Year.  The total project is estimated to cost an additional $535,000 more than what has already been spent.  There is an available balance in the CTE budget of approximately $1.38 million, so no adjustment in the CTE line is needed, although the title should change to CTE projects; 
4. Masterplan: Increase the program management line by $450,000 to include this needed task.  The increase is shown in the attached document as a separate line item for transparency.  In the future this task would be included in the Program Management line budget;
5. Bond Issuance and Disclosures: Increase the program management line by $350,000 to include this needed task.  The increase is shown in the attached document as a separate line item for transparency.  In the future this task would be included in the Program Management line budget;
6. OPSC Support: Increase the program management line by $100,000 to help leverage State Bond Fund money; and,
7. Increased Income: Interest income was not included on the previous spreadsheet.  A budget of $1,300,000 is recommended.     

Attached to this document are both a one page summary of expenses in Measure I and a more detailed breakdown of all expenses and income in Measure I.  

There are potential additional challenges and opportunities in the future.  The following list is not comprehensive, but a basis for future thinking:

1. No potential OPSC dollars are included in the budget.  This conservative approach is recommended at this time, but the District does have substantial eligibility.  Funds could be placed in Measure AA or Measure I;
2. No Developer fee income is included in the budget.  The District has received income but we thought it best to have a discussion about the uses of that income at a future time;
3. The District will likely need to implement a software system that can assist in accounting for project expenses and the cost to do that is not contained in the budget.  The system is currently being reconciled manually;
4. The King auditorium budget may need to be enhanced;
5. There are several roof projects that were planned to be completed before 2021 that may need to be added to the project list.  Maintenance is reviewing those buildings; and,
6. The Sylvia Mendez Elementary School Phase 1 Modernization budget is untouched, but only the roof and skylight replacement is proceeding.  The remainder of the project is not currently underway and after a further review, it may make sense to not do any more work there until the masterplan is completed or additional funds become available.

FISCAL IMPACT

The adjustments are within the overall budgets once the interest is included.  There is an available balance of $1,517,664.    

STAFF RECOMMENDATION

Approve the adjustment recommended above.  

1. Bond Issuance
2. Update on applications for additional funds from the State
3. Proposed Schematic Design of West Campus Capacity Project
4. Possible Update on Options for the City and District MOU (sunsets in 2020)