38 th A n n u a l C o n f e r e n c e o n S c h o o l F a c i l i t i e s

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1 MANAGING RISK v. REWARD HOW TO BALANCE CREATIVE DESIGN WITH THE REALITIES OF PROJECT BUDGETS, SCHEDULES & SCOPE 38 th A n n u a l C o n f e r e n c e o n S c h o o l F a c i l i t i e s

2 Panel Moderator: Brian W h i t m o r e, A I A, L E E D AP P r e s i d e n t / B C A A r c h i t e c t s Panelists: Kevin MacQuarrie, AIA V i c e P r e s i d e n t / P r i n c i p a l / W L C A r c h i t e c t s Dr. A u d r a P i t t m a n S u p e r i n t e n d e n t / B a y s h o r e E S D H a y l e y C a l h o u n D i r e c t o r o f P l a n n i n g & D e v e l o p m e n t / R i v e r s i d e U S D

3 Risk/ Tolerance for Risk Introduction B r i a n W h i t m o r e, A I A Inverse Relationship Between Risk and Reward Reward or Return on Investment

4 Introduction B r i a n W h i t m o r e, A I A Why Are Districts Risk Adverse? Not their money! GO Bond Funds (Voter Approved, COC Managed) State Grants (Voter Approved, CDE/ OPSC Managed) Financing (Board Approved, Bank Managed) Can be highly Political Boards are Elected Superintendents/ Cabinet are Hired

5 Introduction B r i a n W h i t m o r e, A I A What can be considered Calculated Risk? Leveraging Multiple Funding Sources State Eligibility Grant Funding Joint Use High Performance Leveraging Physical Assets Land, Buildings, etc. Prioritization/ Phasing

6 Introduction B r i a n W h i t m o r e, A I A How can strong Architectural Design help improve Rewards? Design toward a Vision not necessarily just a Budget (Dream Big) Develop a list of priorities such that if the worst happens, you can still accomplish your primary goals first Think in terms of value added amenities, not just solutions to problems Maximize Funding through a total analysis of Cash Flow and Leveraged Assets Minimize the schedule to offset the potential for escalation Have faith!

7 WLC ARCHITECTS K e v i n M a c Q u a r r i e, A I A The Big Picture Risk

8 WLC ARCHITECTS K e v i n M a c Q u a r r i e, A I A The Big Picture Risk

9 WLC ARCHITECTS K e v i n M a c Q u a r r i e, A I A A Day Made of Glass 2 Corning Vision the shift of the instructional paradigm

WLC ARCHITECTS K e v i n M a c Q u a r r i e, A I A The Big Picture Risk Not maintaining and upgrading your schools and facilities to meet the needs of 21st century education.

10 WLC ARCHITECTS K e v i n M a c Q u a r r i e, A I A The Big Picture Risk Not maintaining and upgrading your schools and facilities to meet the needs of 21st century education. Professional Development Understanding we need to approach today s students in a way to engage them in their education. Integrating Instructional Technology into the classroom.

Century Skills Project Based Learning Common Core Educating our

8-10 of those jobs will be in fields that don t exist yet to solve

11 WLC ARCHITECTS K e v i n M a c Q u a r r i e, A I A The Big Picture Risk Improving the education environment Collaborative Learning 21 st Century Skills Project Based Learning Common Core Educating our students to thrive in their future Most will have different jobs 8-10 of those jobs will be in fields that don t exist yet to solve problems we don t know we have yet. Education Specifications Architectural Design

12 WLC ARCHITECTS K e v i n M a c Q u a r r i e, A I A The Big Picture Risk Sustainable healthy Environments Sustainable products Energy efficiency Zero Net mandate 2030 Energy / water / air Solar

13 WLC ARCHITECTS K e v i n M a c Q u a r r i e, A I A Identify Your Needs Comprehensive Master Plan A road map to the future with planned stops along the way. Captures the vision of the LCAF / Strategic ED Plan and the Ed Specs A living document to be modified as necessary Will identify needs and costs beyond the funding capacity of a single bond. Creates the mechanism for communication to the community for the need Creates community champions May identify a need to pass multiple bonds.

14 WLC ARCHITECTS K e v i n M a c Q u a r r i e, A I A Identify Your Needs Comprehensive Master Plan Primary Components: Demographic Study Capacity Analysis Facility Analysis Grounds and Buildings Identifies existing physical deficiencies Educational Suitability 21st Century Readiness

15 WLC ARCHITECTS K e v i n M a c Q u a r r i e, A I A Identify Your Needs Comprehensive Master Plan Primary Components: Cost Modeling Schedule Implementation Plan Prioritization of Projects Preventative Maintenance Joint use planning Implementation analysis

16 WLC ARCHITECTS K e v i n M a c Q u a r r i e, A I A Sources of Funding State Bonds Requires matching funds! CTE Funding Local GO Bonds Safe Routes to schools The Feds Donations Grants

17 WLC ARCHITECTS K e v i n M a c Q u a r r i e, A I A Local Bonds The Basics $30 / $60 per $100k of home owner assessed Valuation 2.5% of District assessed valuation Bond Waivers Don t back into a number because of polling Voters need to understand what they are buying / investing in. Communicate this bond may only satisfy part of the District need and is the first step. Earn the trust of the community. Show the money is well spent.

WLC ARCHITECTS K e v i n M a c Q u a r r i e, A I A Bond Implementation How much when? Understand that the longer implementation is planned the less spending power your tax dollar has.

18 WLC ARCHITECTS K e v i n M a c Q u a r r i e, A I A Bond Implementation How much when? Understand that the longer implementation is planned the less spending power your tax dollar has. Escalation will eat you alive!! Spread it thin? Every school gets a little something Ends up not being visible to the community and you have to go back which may disrupt teaching and learning Focus on a few big projects Get it all done now on that campus so you wont have to come back. Means some schools won t get much for a while or a long time.

19 WLC ARCHITECTS K e v i n M a c Q u a r r i e, A I A Bond Implementation How much when? Summer Splash Projects usually non DSA Lets the community see their tax dollars at work now Painting / Landscaping / Play structures / parking lots / playgrounds / Instructional Tech / HVAC / deferred Maintenance projects) Find a happy balance

20 WLC ARCHITECTS K e v i n M a c Q u a r r i e, A I A Selling the Bonds Fewer series = less cost and more spending power ($250k per sale) Buying IT and F&E Structure the bond so that expenditures get paid off in a few years. IT annuity Smaller series coupled with a bigger one. Time to coincide with projects

21 WLC ARCHITECTS K e v i n M a c Q u a r r i e, A I A Bond Funds Allocation 10% overall bond contingency to provide the District some flexibility for cost overruns, inflation and to minimize scope impacts on projects. Emergencies Honey do s Escalation 5% overall bond support costs Bond management PM/CM Moving Costs

22 WLC ARCHITECTS K e v i n M a c Q u a r r i e, A I A Bond Funds Allocation Project Specific Costs Construction Cost Design Contingency 10% Escalation 10% per year Bid Cost Change orders 5% new, 10% mod Final construction costs Support Costs 20% - 30% A&E, IOR, T&I, CM, Modular MFR, permits, F&E Moving Always talk about total project costs!

23 WLC ARCHITECTS K e v i n M a c Q u a r r i e, A I A Priorities Have to do s Needs will take 25% off the top! Code ADA FLS Structural Safety / Security Deferred Maintenance District wide program implementation Program Implementation Educational Suitability Equity Programmatic Site Priority Projects Educational Suitability

24 WLC ARCHITECTS K e v i n M a c Q u a r r i e, A I A Bidding District wide projects HVAC / IT / Playgrounds Economy of scale larger projects Comprehensive modernizations Emergency Projects and Honey Do s Project Delivery Methods Design Bid Build Lease Lease Back Multiple Prime CM at Risk

25 WLC ARCHITECTS K e v i n M a c Q u a r r i e, A I A Scheduling and Phasing Do some projects quickly Summer Splash Larger projects take time to plan, design and get approved and can coincide with series funding.

26 WLC ARCHITECTS K e v i n M a c Q u a r r i e, A I A if the rate of change inside an institution is less than the rate of change outside, the end (of that institution) is in sight Jack Welch, Former CEO, GE

27 WLC ARCHITECTS K e v i n M a c Q u a r r i e, A I A Student Success

28 Bayshore Elementary School D r. A u d r a P i t t m a n Imagine Believe Achieve The Process: - Assessment of the Capacity/ Existing Conditions - Design of the New School - Plans for Surplus Sale - Steps to Achieving the Vision

29 Bayshore Elementary School D r. A u d r a P i t t m a n Permanent Capacity of Existing School Campuses

30 Bayshore Elementary School D r. A u d r a P i t t m a n Planning Assumptions (Provided by SchoolWorks, Inc.)

31 Bayshore Elementary School D r. A u d r a P i t t m a n Bayshore Elementary School (TK-4) Existing Campus Conditions C a m p u s A n a l y s i s Site: 2.12 Acres Year Built: Last Modified: 1991 C a m p u s C a p a c i t y Grade Levels: TK-4 Current Enrollment ( ): 203 Projected Enrollment 2019: 191 Existing Perm. CR s: 7 Existing Portable CR s: 7 Available CR s: 14 -Special Use CR s: 5 Total Teaching Stations: 9 Existing Capacity (9@25:1): 225 Permanent capacity (7@24:1): 168 Amount of CR s needed: 0 Amount of CR s needed with portable replacement 7

32 Bayshore Elementary School D r. A u d r a P i t t m a n Robertson Intermediate School (5-8) Existing Campus Conditions C a m p u s A n a l y s i s Site: 6.73 Acres Year Built: 1940s Last Modified: 1966/2007 C a m p u s C a p a c i t y Grade Levels: 5-8 Current Enrollment ( ): 173 Projected Enrollment 2019: 146 Existing Perm. CR s: 10 Existing Portable CR s: 0 Available CR s: 10 -Special Use CR s: 2 Total Teaching Stations: 8 Existing Capacity (8@28:1): 224 Permanent capacity (10@28:1): 280 Amount of CR s needed: 0

33 Bayshore Elementary School D r. A u d r a P i t t m a n Estimated Construction Cost

34 Bayshore Elementary School D r. A u d r a P i t t m a n Cost Comparison 3 Options *This does not include $1.7 million and $4.37 million estimated state matching funds.

35 Bayshore Elementary School D r. A u d r a P i t t m a n Cost Comparison 3 Options *This does not include $1.7 million and $4.37 million estimated state matching funds.

36 Bayshore Elementary School D r. A u d r a P i t t m a n New Tk-8 School Program

37 Bayshore Elementary School D r. A u d r a P i t t m a n New Tk-8 School Plans

38 Bayshore Elementary School D r. A u d r a P i t t m a n New Tk-8 School Plans

39 Bayshore Elementary School D r. A u d r a P i t t m a n New Tk-8 School Plans

40 Bayshore Elementary School D r. A u d r a P i t t m a n New Tk-8 School Plans

41 Bayshore Elementary School D r. A u d r a P i t t m a n New Tk-8 School Renderings

42 Bayshore Elementary School D r. A u d r a P i t t m a n New Tk-8 School Renderings

43 Bayshore Elementary School D r. A u d r a P i t t m a n Robertson Site - 71 Unit Residential Subdivision Goals - The highest and best use for the Robertson site has been determined to be single family residential. - Our architects and engineers have created a subdivision that includes 71 single family homes that range from 2100 square feet to 2300 square feet. - It is estimated that these new homes will generate between new students to our District.

44 Bayshore Elementary School D r. A u d r a P i t t m a n Robertson Site - 71 Unit Residential Subdivision Site Plan

45 Bayshore Elementary School D r. A u d r a P i t t m a n Robertson Site - 71 Unit Residential Subdivision Sample Floor Plans/ Elevations

46 Bayshore Elementary School D r. A u d r a P i t t m a n Robertson Site - 71 Unit Residential Subdivision Sample Floor Plans/ Elevations - The State of California requires districts who are converting property to residential properties to provide affordable housing. - 15% of all homes need to be provided to low income households. - To meet this requirement, we worked together with the County and the City to bring this portion of the project to fruition.

47 Bayshore Elementary School D r. A u d r a P i t t m a n Steps/ Timeline to Achieve Success: - Obtain the City of Daly City approvals on the Robertson subdivision. - Align the cost of the new school with the sale of the Robertson site.

48 Bayshore Elementary School D r. A u d r a P i t t m a n Achievement in Process:

49 Riverside USD H a y l e y C a l h o u n How to plan for a Bayshore Finish? - Riverside USD was looking ahead to a possible bond measure for Convened a 7-11 committee in Board authorized the formation of a Real Property 7-11 committee January Board appointed members to the 7-11 committee February Five meetings and two public hearings were conducted by the 7-11 committee report presented and Accepted by Board September 15, 2014.

50 Riverside USD H a y l e y C a l h o u n How to plan for a Bayshore Finish? - The report never expires - The Board can take action on any or all of the properties recommended in the report at any time. - One resultant action of the 7-11 report was the exchange of an abandoned school site with property adjacent to a RUSD high school. This land would be held for future school use (again, planning ahead to a 2016 bond measure when the land could be developed for school use)

51 Riverside USD H a y l e y C a l h o u n How to plan for a Bayshore Finish? - Move ahead to 2016 Riverside USD passes Measure O with 70% voter approval. - Riverside USD lies within both the City and County of Riverside. - Discussions with Riverside City planners has resulted in options to exchange another school site for vacant property to build a new elementary school. The current site is one of our oldest and highest need facilities. The exchange would allow the district to build a new site and the city to redevelop the property into retail and residential units, both needed on the North side of town.

52 Riverside USD H a y l e y C a l h o u n How to plan for a Bayshore Finish? - Discussions with the County focus on residential growth needs and possible future school sites. There may be an option to exchange previously identified surplus property with the county as well in the future. One such identified RUSD surplus property lies on a high utilized traffic corridor. The County/City in joint are planning to expand from 2 lanes to 3 lanes.

53 Riverside USD H a y l e y C a l h o u n How to plan for a Bayshore Finish? - Bond planning includes multiple revenue sources including the sale of properties, coupling CFD/Developer fees, Redevelopment dollars, project savings from previous bond measure (2001), Deferred maintenance dollars, and state matching funding. Coordination among departments and funding sources expands the options within each site master plan to complete projects and improve facilities. - Different perspectives: How the site staff view this process versus the Operations Division/ District Administrative staff view this process and how we build trust with site personnel and the Board.

Q&A B r i a n W h i t m o r e, A I A, L E E D AP - P r e s i d e n t / B C A A r c h i t e c t s b r i a n w @ b c a a r c h i t e c t s. c o m D r.

54 Q&A B r i a n W h i t m o r e, A I A, L E E D AP - P r e s i d e n t / B C A A r c h i t e c t s b r i a n b c a a r c h i t e c t s. c o m D r. A u d r a P i t t m a n a p i t t m a b a y s h o r e. k 1 2. c a. u s S u p e r i n t e n d e n t / B a y s h o r e E S D H a y l e y C a l h o u n h c a l h o u r u s d. k 1 2. c a. u s D i r e c t o r o f P l a n n i n g & D e v e l o p m e n t / R i v e r s i d e U S D K e v i n M a c Q u a r r i e, A I A P r i n c i p a l / W L C A r c h i t e c t s k e v i w l c a r c h i t e c t s. c o m

Measure K Board Workshop December 1, 2008 Building on Success: Schools for the Next Generation

Measure K Board Workshop December 1, 2008 Building on Success: Schools for the Next Generation Workshop Items Citizens Oversight Committee Measure K Next Steps Projects in Planning Milestones Board s Vision