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2013 - 2014 Annual ReportsMEASURE A STRONG SCHOOLS BOND UNIFIED SCHOOL DISTRICT ...................................................... 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0. CITIZENS' OVERSIGHT COMMITTEE 2013 - 2014 ANNUAL REPORT Committee Members as of June 30, 2014 Board of Education as of June 30, 2014 Helene Leichter, Chair Person, Parent Barb Mitchell, President Jim Cowie, Vice -Chair, Business Organization Member, Parent, PTA Member Melissa Baten Caswell, Vice President Todd Collins, Taxpayer Organization Member, Parent, PTA Member Heidi Emberling Catharine Garber, Business Organization Member Dana Tom Walt Hays, Senior Citizen Camille Townsend Bruce Whitson, Business Organization Member Arianne Teherani, Parent Letter from Committee Chair October 15, 2014 To: The Board of Education and the Citizens of the Palo Alto Unified School District The Citizens' Oversight Committee is pleased to forward its Annual Report, covering the 2013-14 fiscal year, on the $378 million general obligation Strong Schools Bond. The purpose of the Citizens' Oversight Committee (COC) is to inform the public concerning the expenditure of bond revenues. As required by State law, the COC provides oversight and advises the public whether the District is spending the Strong Schools Bond funds for school capital improvements within the scope of projects outlined in the Strong Schools Bond Project List. In fulfilling its duties, the COC reviews, among other things, the District's annual independent performance and financial audits of Strong Schools Bond activity. The Bond building program continues in full swing. New classroom buildings and modernization projects have been completed at Jordan and Jane L. Stanford Middle Schools, new construction, expansion and modernization projects were completed at Terman Middle School, and a new classroom building and modernization projects were completed at Fairmeadow Elementary School. Additional projects are slated for completion in the 2014-2015 fiscal year at Palo Alto High School, Gunn High School and Duveneck Elementary School. A list of those projects is included in the "Highlights" section on the next page. From a financial perspective, the Bond Program expended $35.4 million during the fiscal year. Approximately 60% of the full Bond amount has been contractually committed, and 52% has been expended. To fund the expenditures, $40 million in bonds were issued in May 2014 and rated AAA. The 2014 bonds were not capital appreciation bonds (CABs), the use of which has recently been significantly restricted by the state legislature due to the controversial use of these bonds in other districts. The Committee reviewed the Independent Auditor's Report issued by the independent auditing firm of Christy White Associates, a professional accountancy corporation (CWA), including its Independent Auditors' Report and its Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Accounting Standards, and its Independent Auditors' Report on Performance. CWA found that PAUSD complied with the terms of Proposition 39 and Strong School Bond during the 2013-2014 fiscal year. In sum, the Committee wishes to report that, to the best of its knowledge, the Palo Alto Unified School District is in full compliance with its responsibilities as described in Article XIIIA, Section 1(b)(3) of the California State Constitution, the section that governs the terms and conditions of Proposition 39 bonds like PAUSD's Strong Schools Bond. The work of the Citizens' Oversight Committee is conducted under the Brown Act. All meetings of the Committee are open to the public, and observers are welcome. The 2013-2014 audits and further information on expenditures, minutes of the Committee's meetings and monthly progress reports can be found on the District's Website, http://pausd.org/community/StrongSchooIsBond/. Sincerely yours, �1� James J. Cowie Chair, Citizens' Oversight Committee E-mail: coc@pausd.org COC members with Bond Program Staff Authorized Amount: Purpose (per ballot $378.0 Issued: $255.0 Expended: $202.0 Provide safe and modern schools, accommodate enrollment growth, upgrade aging classrooms, libraries, computer and science labs, repair or replace roofs, plumbing, heating, ventilation, and electrical systems, improve fire alarms and school security, meet language): current earthquake standards; provide current technology, and replace old portables with permanent classrooms. District Superintendent: Kevin Skelly Bond Program Manager: Robert Golton Program Managememt: fs3 Hodges Auditor: Christy White Accountancy Corp. About Strong Schools Bond Strong Schools Bond is a $378 million bond authorization measure passed Completed by August 2014 on June 3, 2008 to support growth, modernization and Jordan New classroom build improvement of the facilities JLS New classroom build and fixtures of the Palo Alto Terman New construction, ex Unified School District. To ensure the Strong Schools Fairmeadow New classroom build Bond funds are spent in a way Under Construction to be Compl that best meets the needs of the District, the individual Paly New classroom and sites, and the community at Duveneck New classroom build large, a variety of strategies are being used. These include Site Facilities Steering Committees comprised of principals, teachers, parents and community members that make recommendations on site specific issues. Community meetings are held during the planning phases of the major projects to ensure that the concerns of neighbors, parents and the community are addressed. Finally, the Board of Education approves all Bond expenditures with an eye toward the needs of the District today and well into the future. The COC exercises oversight regarding expenditures. The Bond program, now starting its seventh year, is in full swing, with multiple projects completed, as well as in the planning and building phases. Over $35AM was expended during 2013-14, and over $234M in contracts have been either awarded or completed. Both high schools and all three middle schools have completed and occupied some substantial projects. Independent Audit Reports In compliance with Proposition 39, performance and financial audits were conducted for the year ended June 30, 2014. These audits were conducted in accordance with Generally Accepted Government Auditing Standards by the firm of Christy White Accountancy Corporation. The audit firm rendered an opinion that the District's financial statements present fairly, in all material respects, the financial position of the Strong Schools Bond Building Fund as of June 30, 2014. The audit further found that the expenditures tested were in compliance with the terms of the ballot measure and State laws and regulations. The auditors reported: "We found all expenditures tested to be in compliance with the terms of the Measure A - Strong Schools Bond ballot measure and applicable State laws and regulations, without Construction Management: Gilbane Building Co., OCMI & fs3 Hodges Audit Findings: In Compliance without Exceptions rogram Highlights - 2013-14 ing ing ing eted Ings exception. Also, our analysis indicated that the Budget Completion (millions) Date District is receiving program and modernization $19.9 2013 management and modernization $17.2 2013 services that are reasonable as pansion and modernization $13.3 2013 compared to other and modernization $7.8 2013 school districts, with regard to After June 2014 billing rates, hours media arts building $38.4 2014 charged, and the and modernization $9.8 2014 ratio of consultants to District employees. Furthermore, it appeared that the District's site projects were competitive in price with similar projects size and scope to other school construction bond programs included in our benchmarking." The auditors identified no findings and recommendations related to the financial and performance audit. Ultimately, the audits found that the program was materially in compliance with the terms of Proposition 39 and Strong Schools Bond, which is the highest level of assurance which auditors can provide. To view the complete audit report,visit: http://pausd.org/community/StrongSchoolsBond/annual.shtml The Citizens' Oversight Committee meets on a quarterly basis. All meetings are open to the public. The following are the proceedings of the meetings held in 2013-14: July 24, 2013: Program Status Update, Annual Audit, Preparation for 2013 COC Annual Report, Site Visits of Gunn HS, Terman MS, JLS MS, and Fairmeadow Elementary. October 9, 2013: Program Status Update, Review of Financial and Performance Audits from Christy White, Discussion of the COC Annual Report to the Board of Education, and Discussion of the Presentation of the Annual Report to the Board of Education. January 22, 2014: Site Visit of the Duveneck Classroom Buildings B and C, Program Status Update, Chair/Vice Chair Elections, and Briefing on PAUSD Enrollment Growth Planning April 23, 2014: Program Status Update, COC membership, Information on PAUSD General Obligations Bonds Series 2014, Preparation for 2014 COC Annual Report, and Site Visit of the Paly Classroom and Media Arts Buildings. Expenditures from July 1, 2008 Through June 30, 2014 (All amounts in $1,000s) Bond Issued Overall Allocation Committed but Budget Status notexpended g Income 3% PAUSUI Not 1ppropriated 11% Bondlssuance Costs 1% Planned Maintenance Cost 5% Alloca Projects Comn 16 Bond Issued Budgeted Overall Allocation Total Budget status 08-13 FY Elemantary Schools 98,678 Allocated to Projects But Not Committed 62,873 Total Bond Issued 254,999 Middle Schools 51,493 Committed but not expended 31,770 Bond Authorized, Not issued 123,001 High Schools 177,625 Expenditures 202,449 Other Income 11,928 PAUSD/ Not Appropriated 41,785 Reserves/Not Appropriated 92,836 Total Funds 389,928 Bond Issuance Costs 2,530 3,205 389,928 Terman Middle School 13,332 Planned Maintenance Cost 17,816 1,682 11,224 (All amounts in $000's) All number was accumulated from the beainnino of Droiect, Year 2008-09 FY. Projects Budgeted Committed Total 13-14 FY 08-13 FY E enditures Expenditure Expenditure Gunn High School 76,111 53,351 51,347 6,402 44,946 Palo Alto High School 83,040 73,031 46,031 9,362 36,669 Jordan Middle School 20,511 19,540 18,495 2,178 16,317 J.L.S. Middle School 17,650 15,938 15,824 3,205 12,620 Terman Middle School 13,332 13,021 12,907 1,682 11,224 Ohlone Elementary 10,598 10,481 10,481 22 10,459 Duveneck Elementary 9,778 9,508 8,224 6,943 1,280 Fairmeadow Elementary 7,797 7,603 7,473 2,409 5,064 All Other Elementary 24,420 2,337 2,331 2 2,328 Technology 10,485 9,637 9,637 672 8,965 Program Management 10,380 8,637 8,565 2,081 6,484 Planned Maintenance Cost 1,960 104 104 104 0 Subtotal - Projects 286,062 223,188 191,419 35,062 156,356 Reserves Gunn High School 0 - - - Palo Alto High School 18,474 - - - Elementary Schools - Reserve 37,585 - - - Technology - Reserves 3,422 - - - PAUSD - Reserve 6,044 - - - PAUSD- Not Appropriated 11,454 - - - Palnned Maintenance -Not Appropriated" 15,856 - - - Subtotal - Reserves/Not Allocated 92,836 0 0 0 0 525 San Antonio -Property Acquisition 8,500 8,500 8,500 8,500 Other - Bond Issuance Costs 2,530 2,530 2,5301 361 2,169 Total 389,928 234,2191 202,4491 35,424 167,025 STRONG SCHOOLS BOND Strong S-chools for a Strong Community Palo Alto Unified School District Citizens' Oversight Committee 2013 - 2014 Annual Report Below is a sampling of the projects within the Strong Schools Bond from inception. Budgeted numbers below may differ from those on page 4 due to Board of Education approved changes subsequent to June 30, 2014. To see a complete list and additional detail on the status, expenditures and schedule of current Strong Schools Bond projects, please visit http://pausd.org/community/StrongSchoolsBond/ Strong Schools Bond Projects — Completed Projects Gunn High School - Aquatic Center Budget: $4,865,423 Final Cost: $4,862,530 Occupancy: June 15, 2009 This project constructed a new 35 meter pool facility to replace the original pool. The pool accommodates swimming, diving and water polo, and includes a new deck, bleachers, ! i lighting and shade structures for events. The project also constructed a new building 7 housing restrooms, outdoor showers, storage and a team room for the aquatics teams. The project was completed within budget and began hosting events in June 2009. >._ P 1 p 9 9 9 d�- Gunn High School - Industrial Arts Addition and Renovation Budget: $5,082,403 Final Cost: $5,065,128 Occupancy: January 2010 This project renovated and expanded the existing Industrial Arts building at Gunn. The addition includes two new biotechnology labs and support space. The existing building has the same labs as before, but with upgraded electrical and mechanical systems as well as new finishes and casework. The project was completed on-time and within budget and beqan hostinq classes in January 2010. Gunn High School - Air Conditioning of Existing Buildings Budget: $2,600,000 Final Cost: $2,102,366 Completion: August 8, 2011 This project converted existing heating systems to provide cooling to the L, M, S, IA, and A buildings on the Gunn High School campus. Installation of a 'cool' roof system on these building was also included as part of this project. The project was completed on-time and within budget and began cooling classrooms at the start of school in August 2011. Strong Schools Bond Projects — Completed Projects (Continued) Gunn High School - New Classroom Buildings Budget: $25,035,200 Final Cost: $24,754,567 Occupancy: August 15, 2013 This project consisted of two new classroom buildings on the Gunn campus. A two story classroom wing houses new classrooms, resource rooms and offices for the Math and English departments. The Math department occupies the upper floor, and English the ground floor. The second building houses World Languages classrooms and offices adjacent to the L wing complex and the Science building along Arastradero. Construction of the World Languages building was completed in January 2013 and occupied in August 2013, with construction of the Math/English building being completed July 2013 and occupied in August 2013. New World Languages Bldg. Gunn High School - New Gymnasium Budget: $12,914,800 Final Cost: $12,298,170 Occupancy: June 8, 2013 New Math and English Bldg. The new gymnasium, named 'Titan Gym', provides a second venue for school athletics and physical education instruction for the Gunn campus. The gym capacity is approximately 1,900 students for basketball or volleyball games, and includes a new ticket booth, restrooms, team rooms and a fitness room for weightlifting and dance programs. The project included rebuilding outdoor tennis and basketball courts on the northern edge of the student parking lot. Construction was completed in May 2013 and occupied in June 2013. The 2nd phase of the project included modernization of the existing 'Bow Gym'. For this phase, the main gym floor, bleachers and lighting was replaced, with the old wrestling room being converted to a wrestling and dance room. This project was also completed within the budget, and occupied in November 2013. Strong Schools Bond Projects — Completed Projects (Continued) Palo Alto High School - Multi -Use Field Budget $3,616,935 Final Cost: $3,601,302 Completion: February 2011 This project renovated the existing baseball and softball fields on the southern end of the Paly campus. The new fields include new dugouts, bullpens, batting cages and bleachers for each venue, and improve fencing, scoreboards and drainage around the field. Reconfiguration of the south parking lot was also part of the project. The project was completed on-time and within budget and was ready for the opening of the 2011 baseball and softball seasons. Palo Alto High School - Tower Building Improvements Budget: $1,500,000 Final Cost: $1,260,933 Completion: August 1, 2013 This multi -phase project is providing improvements to the Tower Administration building at Paly. The first phase replaced the boilers in the basement of the Haymarket Theater. The second phase, funded by planned maintenance funds, included replacing exterior trim, roofing, dry -rot repairs and painting the exterior, which was completed in August 2012. The most recent phase replaced of all the exterior windows and trim. Construction was completed in July 2013 and occupied in August 2013. New Tower Bldg Windows - Before New Tower Bldg Window — Large Window Replacement 2012 Boiler Replacement - Before Tower Bldg New Windows - During Boiler Replacement - After Tower Bldg New Windows - After Strong Schools Bond Projects — Completed Projects (Continued) Palo Alto High School - Athletic Stadium Improvements Budget: $5,090,000 Final Cost: $4,749,887 Occupancy: August 15, 2013 This project included a new building to house restrooms, concessions, equipment storage, and ticket sales. Additional site improvements included new picnic areas, track resurfacing, and new bleachers for both the home and visitor's side of the field. The project was completed in August 2013. Athletic Stadium Improvements Jordan Middle School Budget: $19,891,564 Final Cost: $17,989,555 Occupancy: August 15, 2013 Athletic Stadium Improvements This project constructed a new classroom wing, a new cafetorium and renovated several existing classroom wings. The new classroom wing is adjacent to the Middlefield parking lot. The new cafetorium is adjacent to the tennis courts, just east of the existing cafetorium. The existing cafetorium building was renovated into two new music classrooms. Jordan's existing music classrooms were renovated to accommodate new art labs, and the science wing was renovated to convert three small labs into two large science labs. Construction was completed in July 2013 and occupied in August 2013. New Classroom Bldg. New Cafetorium Bldg. Strong Schools Bond Projects — Completed Projects (Continued) I L. Stanford Middle School Budget: $17,184,699 Final Cost: $15,383,590 Occupancy: August 15, 2013 Improvements at JLS included a new classroom wing and renovations in several existing classrooms. The new classroom wing is a two story building housing ten new classrooms, located on south of the industrial arts wing. Improvements in the existing classrooms included technology walls and sound assist systems, which were completed via separate contract in 2011. Another contract included improvements to exterior courtyards to improve drainage, circulation and landscaping. Construction was completed in July 2013 and occupied in August 2013. New Classroom Wing Landscape and Sitework Improvements Terman Middle School Budget: $13,312,971 Final Cost: $12,888,252 Occupancy: October 30, 2013 The Administration and Library building at Terman was expanded and renovated to accommodate a new office at the front of the school, three new classrooms and a new library as part of an addition to the east side of the old building. Improvements also included renovations to the cafetorium, a new drama classroom and all new heating units. The new library and classrooms were occupied in August 2013, while the renovations in the cafetorium were complete in October 2013. New Library Expansion f MI New Library Expansion - Interior Strong Schools Bond Projects — Completed Projects (Continued) Ohlone Elementary School - New Classroom Building and Modernization Budget: $10,597,870 Final Cost: $10,481,389 Occupancy: January 3, 2012 A new two story classroom building was constructed on the Ohlone campus to accommodate enrollment growth at the elementary schools. The project included ten new classrooms, a flex room and a special day classroom adjacent to the library. The project also included modernization of existing classrooms, including improved lighting and ventilation. Construction was completed in December 2011 and occupied in January 2012. Fairmeadow Elementary School - New Classroom Building and Modernization Budget: $7,796,550 Final Cost: $7,472,606 Occupancy: August 15, 2013 A new classroom building was constructed on the Fairmeadow campus to accommodate enrollment growth. The project included a new, two story classroom wing adjacent to the Jackson Center that houses eight new classrooms with new restrooms on each level. The project also included expanding the library and relocating the kindergarten classrooms and play areas to the old upper wing. Construction was completed in July 2013 and occupied in August 2013. 525 San Antonio Avenue — Site Acquisition Budget: $8,500,000 Final Cost: $8,500,000 Acquired: November 8, 2012 This 2.6 acre parcel was acquired from Summer Hill Homes. It is anticipated that this property will be used with the adjoining Greendell site for future expansion of Palo Alto Unified School District classroom purposes. At the present time it is being leased to the Athena Academy. _i Elementary Schools -Elementary Classroom Improvements: Smartboard and integrated sound assist listening systems -— Budget: $2,004,889 Final Cost: $1,879,695 Completion: April 2011 This project funded a new Smartboards and sound assist systems for each elementary school campus. The installation of new Smartboards and integrated sound assist systems for all elementary classrooms was completed in April 2011. ! L_ Strong Schools Bond Projects — In Progress Gunn High School — Miranda Ave. Parking and Drop-off Budget: $3,940,000 Planned Completion: August 8, 2014 This project constructs a new drop-off area along the west side of the Gunn campus accessed from Miranda Ave. The new drop-off will provide site improvements adjacent to the drop-off area, and add staff parking toward the northern portion. Construction of the on-site improvements is anticipated to complete before school starts in August 2014, while the signal relocation at the Miranda Ave. and Arastradero intersection is anticipated to be complete by January 2015. Gunn High School — E & K Buildings Renovation Budget: $2,120,839 Planned Occupancy: August 15, 2014 The renovation of buildings E & K at Gunn High School renovated the vacated Math Classrooms with interior modernization and reconfiguration of utilities to provide classrooms with a small work room. The vacated World Languages offices into classrooms and a flexible room. Construction is anticipated to be complete and occupied in August 2014. Gunn High School — Central Building Project Budget: $19,374,242 Planned Occupancy: August 15, 2017 s The new central building provides a centralized building housing Performing Arts, Student Activities, Wellness Center and classrooms. The project will demolish the current Music building and replace it with a larger facility to adequately house the music programs. A new entry plaza and drop —off area will be located where the current Music building is to provide direct access from the parking and drop-off location to the center of campus. New Central Building Project - Rendering New Central Building Project - Rendering Strong Schools Bond Projects — In Progress (Continued) Palo Alto High School - New Classroom Building and Media Arts Building Budget: $38,415,003 Planned Occupancy: August 2014 This project consists of the addition of two large buildings to the Paly campus. The math and social sciences building will house new classrooms in a two story structure, with Math classrooms, offices and resource areas on the upper floor and similar spaces for social sciences on the ground floor. The Media Arts building will house new classrooms for the English department, as well as several lab spaces for media arts, including video production, photography and journalism. Construction began in August 2011, was completed in April 2014, and is scheduled for occuoancv in Auaust 2014. New Classroom Building Palo Alto High School - New Performing Arts Center Budget: $29,370,049 Planned Occupancy: August 15, 2016 New Media Arts Center The Performing Arts Center at Paly will provide a new, 592 seat building to house performances for the Performing Arts department and assemblies for the campus. The facility includes a single level of seating, with single -row side boxes around the perimeter on two levels. It will have a mechanical orchestra pit, a full fly tower for staging, and a trap room below the stage. The building will also include a drama classroom. Construction began in May 2014, and is scheduled for completion in time for the 2015/2016 academic year. '44 -, oil New Performing Arts Center - Rendering Palo Alto High School - New Indoor Athletic Facilities Budget: $5,470,000 Planned Occupancy: January 2017 The Indoor Athletic Facilities at Paly will provide two new buildings replacing the existing small and large gyms. The facilities are two-story buildings with the main gym below grade. Also included are a new strength and conditioning room, wrestling room, dance room, practice gym, PE locker rooms, team rooms, and a PE classroom. This project is jointly funded by a private donation and bond funds. The project has been under DSA review since December 2013, with construction planned to begin during the spring semester, 2015. New Performing Arts Center — August 2014 New Indoor Athletic Facilities - Rendering Strong Schools Bond Projects - In Progress (Continued) Palo Alto High School - Science Addition Budget: $5,532,204 Planned Occupancy: August 2018 The Science Addition at Paly will provide four new science classrooms to account for anticipated growth. The facility includes a new projects room, and renovation of the existing projects room to expand the Science Resource Center within the existing Science Building. The proposed location for the addition is the open space immediately south of the existing Science building, with construction planned to begin after the new Indoor Athletics building and the new Performing Arts Center is completed. New Science Addition - Rendering Duveneck Elementary School - New Classroom Building and Modernization Budget: $9,778,358 Planned Occupancy: August 15, 2014 New Science Addition - Rendering The project includes a new, two-story classroom building housing eight classrooms, and two one-story classroom buildings for two kindergarten and three primary grade classrooms. These new buildings will replace the eight portable classrooms and add three additional classrooms to the campus. The project will also include an expanded library and modernization of existing classrooms. Construction began in May 2013 and is scheduled for completion in August 2014. New 41h and 51h Grade Classroom Bldg. - Rendering New Kindergarten Classroom Bldg. - Rendering District -wide — Technology Budget: $10,485,054 Completion: On-going New 4th and 5th Grade Classroom Bldg. New Kindergarten Classroom Bldg. — August 2014 The District purchased computers, utilizing bond funds, throughout the 2012113 school year. There has been a notable shift from desktops and laptops to handheld devices, primarily at the elementary school level. Implementation of the Voice -over -IP (VoIP) telephone system and a major upgrade to the District's broadband of wireless access points both completed in August 2012. Also, installation of wireless antennas at each school to enhance the District's broadband network was completed in December 2013.