David Olson, Financial Advisor with The PFM Group will present information to the Board of Trustees regarding financing options for the Orchard Elementary HVAC Replacement Project.

Staff is requesting direction from the Board of Trustees on their preferred financing method to fund the Orchard Elementary HVAC Replacement Project.  Options presented include the following to fund the shortfall:

1. Sell $6 million of bonds authorized from the 2006 Voter Authorization.  Proceeds will be used to payback general fund dollars used to fund the Sylvan Modernization Project which will then be used in part to fund the approximate $1.3 million shortfall in funding for the project.  Remaining bond proceeds will be used to perform modernization activities for schools identified in the 2006 authorization.  A resolution detailing this option will be presented for approval at the September 12, 2017, regularly scheduled Board Meeting.  Next steps will also be initiated by David Olson, Financial Advisor with PFM Group.
2. Initiate lease financing in the approximate amount of $1.3 million to fund the shortfall for the project.  Next steps will be initiated by David Olson, Financial Advisor with PFM Group.
3. Issue Certificates of Participation (COP) in the approximate amount of $1.3 million to fund the shortfall for the project.  Next steps will be initiated by David Olson, Financial Advisor with PFM Group.
4. Approve a loan from the General Fund to Resource 9225 (Facilities Improvement Resource) to fund the shortfall for the project.  A resolution detailing this option will be presented for approval at the September 12, 2017, regularly scheduled Board Meeting.  Cheryl Phan, Director of Fiscal Services, will prepare the required Board approved transfer.

Staff is requesting direction from the Board of Trustees on their preferred financing method to fund the Orchard Elementary HVAC Replacement Project.

Authorize staff to take required steps to begin the process of fully funding the Orchard Elementary HVAC Replacement Project and bring back legal documents and a resolution to be approved by the Board of Trustees at the September 12, 2017, Board meeting.

The district issued a bid for the Orchard Elementary HVAC Replacement Project and advertised the bid in the Modesto Bee on June 18, 2017, and on June 25, 2017, and also noticed the local plan rooms.   Sealed bids were due on July 20, 2017, at 2:00 pm and were opened publicly.  The district received three (3) responsive bids.

The low bid was received from Boyer Construction (see attached bid record).

As part of the contractor’s submitted bid package, the district verified the following: 

• Addendum Acknowledgment
• Information Requested of Bidders
• Bid Bond
• Subcontractor’s List
• Site Visit Certification
• Non-Collusion Declaration
• Iran Contracting Act Certification

Prior to finalizing the contract and before issuing the Notice to Proceed, the contractor will be required to file all required contract documents within seven (7) days of the Notice of Award.

Staff recommends the Board of Trustees accept the low bid from Boyer Construction and award a contract in the amount of $3,041,583.  

It is also recommended a district contingency of 5% be added to the project in the amount of $152,079.  Change request authority will be granted to the Assistant Superintendent of Business Services up to $25,000 without formal Board action.  All change requests will be bundled into a Change Order and ratified by the Board of Trustees upon completion of the project.  

Single change requests in excess of $25,000 will require formal Board approval prior to authorization.

It is also recommended a district contingency of 5% be added to the project budget in the amount of $152,079. Change Order request authority will be granted to the Assistant Superintendent of Business Services up to $25,000 without formal board action.

The Board of Trustees will consider acceptance of the low bid submitted by Boyer Construction in the amount of $3,041,583 for the Orchard Elementary HVAC Replacement Project.

Facilities Improvement Resource (01.9225):  $3,041,583

Facilities Improvements Resource (01.9225) $152,079 (District Contingency)

The District is required to secure the services of a DSA Certified Inspector of Record for construction projects. Staff solicited quotes from qualified DSA Inspectors in May 2016 and received the following rates:  

1. B & R Enterprises - $70.00/hr; Full-time Monthly Rate: $11,760; 
2. Iomlan Construction Services: $71.37/hr (avg);  Full-Time Monthly Rate: $13,304
3. Meridith Holloway: $65.00/hr:  Full Time Monthly Rate: 10,500;  

Meridith Holloways is willing to extend her rate for another year. Staff recommends approval of a contract with Meridith Holloway for Inspector of Record Services.

Staff recommends the approval of a contract with Meridith Holloway, DSA Inspector of Record Services for the Orchard Elementary HVAC Replacement Project and the Child Care Shade Structure Project.

The Board of Trustees will consider approval of a contract with Meridith Holloway, DSA Inspector of Record Services for the Orchard Elementary HVAC Replacement Project and the Child Care Shade Structure Project.