FULLERTON JOINT UNION HIGH SCHOOL DISTRICT

SPECIAL MEETING OF THE BOARD OF TRUSTEES

JANUARY 22 , 2013

Capital Facilities Improvement Program

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Discussion Overview

Part 1 – Capital Facilities Improvement Program Identified Needs and Improvement Areas Program Teams Program Composition/Decisions Timeline General Obligation Bond Information Imminent Decisions/Action Steps

Part 2 – General Obligation Bond Refunding 2002 Series B $29,940,000 Refunding Opportunity

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CAPITAL FACILITIES IMPROVEMENT PROGRAM

Part 1

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Identified Needs and Improvement Areas

Seismic RetrofitSafety and SecurityCritical Systems

Classrooms Technology Infrastructure Food Service Parking Lots/Hardscapes Deferred Maintenance

Competitive Facilities Pools/Stadiums/Tracks/Fields Performing Arts Multi-Purpose/Second Gymnasiums Career Technical Education Program

Curb Appeal

See Master Facilities and Technology Needs Assessment 20134

Sunny Hills High School Pool5

District Sports Fields6

District Sports Fields7

District Stadiums and Bleachers8

District Stadiums and Bleachers9

District Gymnasiums10

District Pools/Aquatics Facilities11

District Pools/Aquatics Facilities12

District Walkways/Painting13

District Window and Door Systems14

District Roofing Systems15

District Parking Lots/Pavement16

LHHS Shipping Containers17

Curb Appeal – LHHS Whittier Boulevard18

Program Teams

Capital Projects Program Development Team Program Manager Program Development and Planning State Eligibility and Funding

Capital Facilities Program Administration and Oversight Team In-house Support Staff Configuration

Director of Facilities/Construction Construction Project Supervisor(s)

Configuration Depends on Construction Management/Delivery Method Design Team

Core Design Team – Architect(s) Specialty Design Consultant(s)

Capital Financing Team Financial Advisor Underwriter(s) Bond Counsel

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Program Teams

Construction Management and Delivery Team Construction Manager Inspectors Testing Labs

Campaign/Election Team Survey/Polling Consultant Core Campaign Support Team (Outside) Election/Campaign Consultant (Outside)

Accountability/Oversight Team Bond Oversight Committee Program Audit Community Reporting

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Program Composition/Decisions

Construction Delivery Method(s) Design-Bid-Build Construction Manager – Multiple Prime Lease – Lease Back

Program Administration and Oversight Inside vs. Outside Personnel

In-house Management/Supervision Turnkey Program Management/Oversight

In-house Staff Configuration Facilities Director Construction Project Supervisor(s)

Specifications and Standards Educational Specifications Equipment Specifications Products and Materials Specifications Technology Standards and Specifications

Sole Source Items – Resolutions

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Program Timeline

Facilities Improvement Program and

Bond Campaign Timeline

Draft - February 7, 2012

Election June 3, 2014

Initiate Facilities Improvement

Program

Facilities Master Plan

Development

Facilities Needs Assessment

Community Survey (s)

Bond Campaign Form Bond

Campaign Committee

June 2014

Program Components Staff Preparation Facilities Program Financing Program Bond Program Bond Campaign Election

Financing Program Consultant Selection*

- Financial Advisor - Bond Counsel - Underwriter - Pricing Consultant

February 2012

March 2013

Attend CDIAC Debt Essentials 3 Day Seminar

Bond Program Consultant Selection

- Polling - Campaign

Facilities Program Consultant Selection

- Legal Counsel - Architect(s) - CEQA - Engineer(s) - Environmental - Constructability - Const. Manager - Testing Lab(s) - IOR(s)

Election Nov. ‘14 (Fallback date if

bond doesn’t pass in June.)

Develop Contingency

Repair Plans for Critical

Systems/Projects

Begin Meeting With Stakeholder

Groups Gather Input &

Feedback

Project Programing and

Design

28 Months

Bond Resolution Deadline

March 7, 2014

Critical Projects Plan Completion

Determine Bond Sizing and Type

(2/3 v. 55%)

*Consultants contingent upon type of bond sale, negotiated or competitive.

See Capital Facilites Program and Bond Campaign Timeline22

General Obligation Bond Information

Capital Facilities Program Costs $275,710,500

Based on Facilities Needs Assessment

2013 Assessed Valuation$26,273,731,839Bonding Capacity Percent 0.0125Bonding Capacity $328,421,648Outstanding GO Bond Debt $54,260,000Available Bonding Capacity $274,161,648

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Existing GO Bond Information

Original Issue Amount $67,900,000Amount Outstanding$54,260,000Existing Tax Rate Authorization $19.90*2012/13 Tax Rate $15.79*

Current Tax − Home Value $500,000 $300,000 Annual Tax $78.95 $47.37 Monthly Tax $6.58 $3.94

Comparative Costs Grande Starbucks Mocha $3.65 Small Golden Spoon Yogurt $3.00 Gallon Self-serve Regular Gas $3.75

*Amount per $100,000 of assessed valuation24

Questions

This is expensive!Why should I pay for this?So, what’s in it for me? A tax increase, really?What does my student/school get out of it?Given the current economy, how can the

District ask our community to pay for this?What’s wrong with the current District

facilities?But, I’m already paying for X,Y, and Z!

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Combined GO Bond Information

Available Bonding Capacity $274,000,000Maximum Prop. 39 Tax Rate $30.00*Existing Tax Rate Authorization $19.90*Combined $49.90*

Current Rate − Home Value $500,000 $300,000 Annual Tax $249.50 $149.70 Monthly Tax $20.79 $12.47

Comparative Costs Lunch at Souplantation $9.49 Great Clips Haircut $9.99 Two Subway $5 Footlong™ Sandwiches $10.00 Movie Ticket $11.50

*Amount per $100,000 of assessed valuation26

Neighboring Districts Tax Rate Comparisons*

GO Tax Rate Per $100,000 Santa Ana USD $71.47 Tustin USD $55.86 Anaheim City SD $53.71 Fullerton Joint (Maximum) $49.90 Placentia-Yorba Linda USD $38.46 La Habra City SD $23.20 Fullerton Joint (Current) $15.79

So, what is the community willing to support? Polling consultant can survey the community to

determine types of projects and their relative level of support.

*Based on 2011/12 data27

Imminent Decisions/Action Steps

Aquatics Facilities Prototype Select architect to design/develop plans for Sunny Hills High School pool replacement Recommendation/Action Step: Secure proposals from architectural firms

Facility Needs Assessment Review, evaluate, and incorporate current information into a Districtwide Facilities Plan Recommendation/Action Step: Secure proposals from architectural firms

Program Manager Select specialist to help set up program scope, framework, sequencing, budget, and

schedule Recommendation/Action Step: Initiate selection process for individual consultant

Capital Finance Program Composition Determine which type of financing method will be employed

Negotiated Sale with Underwriter Turnkey Underwriter Underwriter Pricing Consultant

Competitive Sale with Financial Advisor Select and Assemble Capital Finance Team Recommendation/Action Step: Initiate RFQ for Financial Advisor Recommendation/Action Step: Initiate RFQ for Polling Consultant

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GENERAL OBLIGATION BOND REFUNDING

2002 SERIES B$29 ,940 ,000

Part 2

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Existing GO Bond Refunding Opportunity

Outstanding GO Bonds Par Amt.Outstanding 2010 Refunding Bonds $29.120 m $28.020

m 2002 Series B Bonds $29.940 m $25.240

mRefunding Potential − 2002 Series B

Callable Par $22.940 million Call Date 8/1/15 Coupon Range 3.875% - 5.00% Potential Debt Service Savings $2.5-$3.5 million NPV Savings ($) $2.8 million (high

end) NPV Savings (%) 12.4% (high end)

Existing GO Bond Refunding Opportunity

Estimated Cost of Issuance Bond/Disclosure Counsel $75,000 Ratings $30,000 Escrow Agent $2,500 Printing $1,000 Verification Fee $2,500 Cal Muni (Demographics) $2,000 Miscellaneous and Contingency $5,000 Total $118,000 Underwriter Discount $160,000 Total $278,000

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Existing GO Bond Refunding Opportunity

Recommendations Take Advantage of Refunding Opportunity Refund 2002 Series B Bonds Employ Negotiated Sale with Underwriter Recommendation/Action Step: Initiate Targeted RFQ

for an Underwriter

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Discussion/Questions/Comments

Thank you!