2010 - 2011 Annual ReportsMEASURE A -
STRONG SCHOOLS BOND
PALO ALTO
UNIFIED SCHOOL DISTRICT
.................................................................................
CITIZENS' OVERSIGHT COMMITTEE
2010 - 2011 ANNUAL REPORT
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Letter from Committee Chair
.......................................................
November 8, 2011
To: The Board of Education and the Citizens of the Palo Alto Unified Sdmod District
The Citizens' Oversight Committee is pleased to forward its third Annual Report, covering the 2010-11 fiscal year, on the $378
Trillion 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 perforn-ance and financial audits of Strong Schools
Bond activity.
In this third year, the Committee again gave special attention to the mechanisms and systems established by the District to oversee
its contractors and monitor the effective planning and staging of the projects on the Strong Schools Bond list. At each of our meet-
ings, we met with appropriate District officials and with senior representatives of the project management and construction man-
agement firms employed by the District to oversee planning and operations.
The Bond's building program has reached an active phase. As of June 30, 2011, projects budgeted at over $270 million have been
specifically planned by the District. Over $59 Trillion has been contractually committed and over $41 Trillion expended, both signifi-
cant increases over last year. Two highlights for the 2010-2011 year included the completion of the Palo Alto High School Multi -
Use Feld improvements and substantial progress on the Chlone Elementary School new classroom building. Major new class-
room building projects are also underway at both Palo Alto and Gunn high schools. Please seepages 5-7 for a complete list of
projects that are underway.
The Committee reviewed the Financial Audit and the Performance Audit issued by the independent auditing firm of Christy White,
Professional Accountancy Corporation. The firm conducted its audits in compliance with Generally Accepted Government Auditing
Standards. Under these standards, the audit firm independently determined which tests to use in arriving at its opinions. The audits
found that the program was materially in compliance with the terms of Proposition 39 and Strong Sdhod Bond.
In sum, the Committee wishes to report that, to the best of its knowledge, the Palo Alto Unified School District is in full oorroianoe
with its responsibilities as described in Article XII IA, Section 1(b)(3) of the California State Constitution, the section that governs the
terms and conditions of Proposition 39 bonds like the District's Strong Schools Bond.
The work of the Citizens' Oversight Committee is conducted under the Brown Act. Al meetings of the Cormittee are open to the
public; observers are welcome. The 2010-2011 audits and further information on expenditures, minutes of the Committee's meet-
ings, and detailed monthly progress reports can be found on the District's V\/eb site, http://pausd.orgtcom-runity/
StrongSchoolsBord.
Sincerely yours,
(-- �J, 6M��_
Todd Collins
Chair, Citizens' Oversight Committee
E-mail: coc(a)pausd.org
Committee Members as of June 30, 2011
............................................................................
Ray Bacchetti, Member, Senior Citizen
Todd Collins, Taxpayer Organization Member
Scott Darling, At Large Member
Catherine Garber, Business Organization Member -
Gary Hombeek, Parent, PTA Member
Deepak Kanungo, Parent
Mary Marth, Parent
Board of Education, 2010-2011
...........................................................................
Melissa Baten Caswell, President
Camille Townsend, Moe President
Barbara Klausner
Barb Kitchell
Dana Tom
Senior District Officials
.............................................................................
Kevin Skelly, Superintendent of Schools
Bob Golton, Co -Chief Business Official & Bond Program Mgr
Cathy Mak, Co -Chief Business Official
About Strong Schools Bond
...............................................................................
Strong Schools Bond is a $378 Trillion bond authorization measure
passed on June 3, 2008, that provides funding to provide safe and
modern schools; accommodate enrollment growth; upgrade aging
classrooms, libraries, oonWer and sdence labs; improve athletic
facilities; repair or replace roofs, plumbing, heating, ventilation and
electrical systems; improve fire alamns and sdhod security; meet cur-
rent earthquake standards; provide current technology; replace old
portables with permanent classroom; and purchase land within the
Palo Alto Unified School District.
To ensure the Strong Schools Bond funds are spent in a way that best
meets the needs of the District, the individual sites, and the community
at large, a variety of strategies are being used. These induce Site
Fadlities Steering Committees comprised of principals, teachers, par-
ents 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 oonoems of neighbors,
parents and the community are addressed. Finally, the Board of Edu-
cation approves all Bond expenditures with an eye toward the needs of
the District today and well into the future.
To ensure the Strong Schools Bond program is being managed effec-
tively, the Board of Education approved O'Connor Construction Marr
agement, Inc. to provide program management services for this work.
Tom Hodges, a principal with O'Connor having experience with the
District since 2002, serves as the Program Director for Strong Sdhools
Bond and provides overall program management services and man-
ages
arcages early project development. The Board of Education also ap-
proved G (bane Building Company to provide design administration
and construction management sermoes for the program Rod Elgie,
G (bane's Senior Construction Manager, and his staff voR closely with
O'Connor to provide seamless management and coordination of all
Strong Schools Bond projects.
The Bond program, now in its fourth year, is very active, with projects
currently moving through the various phases of planning, design, state
approval, bidding and construction. Several projects are already corn.
pleted, including the Gunn industrial arts building and aquatics center,
the Paly multi -use field, and technology improvements at all of the
District's elementary classrooms (interactive whiteboards and sound
assist systems). During the summer of 2011, the District awarded
over $50 million in construction contracts for major buildings at the
high sdnod campuses. The District plans to award, during the next
few months, another $50 mllion in construction contracts for Palo
Alto's three middle schools and for Fairmeadow Elementary School.
About the District
......................................................................................
The District was founded on March 20, 1893. The first school opened in September
1893, with two teachers and 70 pupils crowded into a temporary Noroom school-
house. The District enrolment generally grewthrough 1967, when enrolment
peaked at 15,575 students.
Enrollment began to dedine in the 1970s and continued to cedine through the
1980s. The bottom of the dedine was readied in 1989 when total enrollment stood
at 7,452. Responding to the increased enrollment, there have been a nun ber of
school openings. Jordan Middle School reopened in fall 1998. AtvAfth elementary
school, Barron Park, was opened fall 1998, and a third rriddle school, Tetuan, was
opened in fall 2001.
District enrolment continues to grow at any average rate in excess of 2% per year.
Enrollment for fall 2011 is 12,286. A District focused goal for 2011-2012 is to plan
for enrollment growth and its relationship to facilities.
Co r a ittee Meetings
........................................................................................
The Citizens' Oversight Committee meets on a quarterly basis. Al meetings
are open to the public. Scheduled upcoming meetings are: January 25, 2012;
April 18, 2012; and July 18, 2012.
Proceedings of the meetings held included:
February 2, 2011: Election of Chair/Vice Chair, Monthly Reports, Member
Attendance at Board of Education Meeting, Performance Audit Finding ITrple-
mentation, Quality School Construction Bonds Information Discussion, and
Site Msit--Ohlone Elementary School.
April 20, 2011: Program Status Updates, COC Members Service, Elementary
Enrollment and Facilities Planning, Performance Audit/Financial Audit Time-
line, SmartBoard and Sound Assist System Demonstration at Barron Park
elementary school.
July 13, 2011: Program Status Update, Perfohnance Audit and Financial
Audit Planning, COC Annual Report Planning Discussion, SiteMsit—Ohlone
Elementary School.
October 19, 2011: Program Status Update, Annual Report Review, Perfomr
ance Audit and Financial Audit Review, Board Presentation Preparation.
Independent Audit Reports
In compliance with Proposition 39, perfonance and financial audits were
conducted for the year ended June 30, 2011. These audits were conducted
in accordance with Generally Accepted Governmental Auditing Standards by
the firms 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, 2011. The audit further found that
the expenditures tested were in compliance with the terms of the ballot rnBas-
ure and applicable State laws and regulations. The auditors reported: "We
found all expenditures tested to be in compliance with the temps of the Strong
Schools Bond ballot measure and applicable State laws and regulations,
without exception. Also, our analysis indicated that the District is receiving
program management services that are reasonable as compared to other
school districts, with regard to billing rates, hours charged, and the ratio of
consultants to District employees. Furthemore, it appeared that the District's
site projects were competitive in pdoe with similar projects size and scope to
other school construction bond programs included in our benchmarking."
The auditors identified no deficiencies, matedal weaknesses, or instances of
non-compliance related to the financial statements. Further, they had no
findings or recommendations related to the financial and perfonance audit.
To view the complete audit report, please visit http://pausd.org/comrmunity/
StrongSdnod sBond/annual . shtml
Palo Alto Unified School District
Strong Schools Bond Expenditures as of June 30, 2011
Al Amounts in $1,000's
Bonds Issued Overall Allocation Budget Status
Bond Authorized, Not
issued
60%
Total Bad Issued
,qqq38%
Bond Status
Total Bond Issued
Bond Auk rized, Not issued
Cher Incorre
Total Funds
High Schools
46%
PAUSD/Not
Appropriated
Other Income 13%
2% Middle Schools4411.- 2008 Bond
13% Elemantary School Issuance Costs
27% 0.41%
Allocated to Projects
but not Corrmled
550/0
Comrritted but not
Expended
E tures 5%
Reserves/Not 11
Appropriated
29%
Overall Allocation
Budget Status
2010-11
144,999
Derrantary Schools
102,938
Allocalled m Projects but not Corrrritled
211,261
233,001
Middle Schools
51,572
Corrrntled but not Expended
17,649
7,212
High Schools
178,312
Expendilures
43,584
385,212
PAUSD/ Not Appropriated
50,549
Reserves/NotApproprialed
112,719
18,562
Bond Issuance Costs
1,841
Total Funds
385,212
J.L.S. Middle School
Total Funds
385,212
1,846
1,289
Total
2010-11
Prior Years
Projects
Budgeted
Corrrritted
Expenditures
Expenditures
Expenditures
Gunn High School
54,586
18,107
14,317
2,236
12,082
Palo AD High School
61,239
10,102
6,635
4,159
2,476
Jordan Middle School
18,562
2,958
1,495
1,045
450
J.L.S. Middle School
17,650
3,336
1,846
1,289
556
Tern -an Middle School
12,869
2,018
988
774
214
Chlone Elementary
11,668
11,267
5,960
4,893
1,067
Duveneck Berrentary
11,089
246
183
175
8
FainreadowBenentary
9,328
1,550
786
669
118
Hoover Berrentary
8,575
71
57
53
5
All Other Elerrentary
52,943
2,406
2,249
1,806
442
Technology
7,101
3,721
3,713
1,170
2,543
Program Management
5,042
3,610
3,513
1,255
2,259
Subtotal - Projects
270,652
59,391
41,743
19,523
22,220
Reserves
Gunn High School
21,525
-
-
-
Palo Alto High School
37,555
-
-
-
Elementary Schools - Reserve
5,076
-
-
-
Technology - Reserves
6,806
-
-
-
PAUSD - Reserve
7,230
-
-
-
PAUSD-Not Appropriated
34,527
-
-
-
Subtotal - Reserves/Not Allocated
112,719
-
-
-
-
other - Bond Issuance Costs
1,841
1,841
1,841
258
1,583
Total
385,212
61,232
43,584
19,781
23,803
STRONG SCHOOLS BOND
Strong Schools for a Strong Community
Palo Alto Unified School District
Citizens' Oversight Committee
2010 - 2011 Annual Report
Below is a sampling of the projects within the Strong Schools Bond. Budgeted numbers below may differ from those on page 4
due to Board of Education approved changes subsequent to June 30, 2011. To see a oomplete list and additional detail on the
status, expenditures and schedule of current Strong Schools Bond projects, please visit http://pausd.orgloonTmnity/
StrongSchoolsBord
Gunn High School - Aquatic Center
Budgeted Cost: $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 pod. The
pod accommodates swimming, diving and water polo, and incudes a new deck,
bleachers, lighting and shade structures for events. The project also constructed a
new building housing restrooms, outdoor shovers, storage and a team room for the
aquatic athletic teams. The project was completed within budget, and began hosting
events in June 2009.
Gunn High School - Industrial Arts Addition and Renovation
Budgeted Cost: $5,511,500 Final Cost: $5,045,659 Occupancy: January 2010
This project renovated and expanded the existing Industrial Arts building at Gunn. The
addition incudes 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 began hosting classes in January 2010.
Gunn High School - Air Conditioning of F)dsting Buildings
Budget: $2,600,400 Completion: August 8, 2011
This project converted existing heating systems to provide coding to the L, M, S, IPS
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 competed
on-time and within budget, and began coding classrooms at the start of school in Au-
gust 2011.
Gunn High School - New Classroom Buildings
Budget: $25,035,200 Planned Occupancy: April 2013
This project consists of two new classroom buildings on the Gunn campus. A two story
classroom wing will house new classrooms, resource rooms and offices for the Math
and English departments. The Math department will be located on the upper floor, and
English on the ground floor. The second building will house newWCrld Languages
classrooms and offices adjacent to the L wing complex and the Science building along
Arastradero. Planning and design have been completed. Construction began in Au-
gust 2011, and is planned for completion in April 2013.
Gunn High School - New Gyrnnasi um
Budget: $13,830,000 Planned Occupancy: November 2012
A new gymnasium will be constructed at Gunn to provide a second venue for school
athletics and physical education instruction on the campus. The gym is planned to
accommodate approximately 1,900 students for basketball or volleyball games, and
will include a newticket booth, restrooms, team rooms and a fitness roomfor weightlift-
ing and dance programs. In addition to the gym, the project will rebuild the outdoor
tennis courts and outdoor basketball courts on the northern edge of the student park-
ing
arking lot. Planning and design have been completed. Construction began in August
2011, and is planned for completion in November 2012.
Strong Schools Bond Projects (Continued)
Palo Alto High School - Multi -Use Field
Budgeted Cost $3,616,935 Final Cost: $3,527,950 Completion: February 2011
This project renovated the existing baseball and softball fields on the southern end of the
Paly campus. The newfields include new dugouts, bullpens, batting cages and bleachers
for each venue, and improve fencing, scoreboards and drainage around the field. Recur}
figuration of the south parking lot was also included in this project. The project was cora
0eted on-time and within budget, and was ready for the opening of the 2011 baseball and
softball seasons.
Palo Alto High School - Athletic Stadium Improvements
Budget: $3,626,101 Planned Occupancy: March 2012
This project will include a new building to house restroom-, concessions, equipment stor-
age, and ticket sales. Additional to site improvements include new picnic areas, track resur-
facing, and new bleachers for both the home and visitor's side of the field. The project is
scheduled to bid in November 2011.
Palo Alto High School - Haymarket and Tower Baler Replacement
Budget: $800,000 Planned Completion: January 2012
This project will replace two failing balers at Paly. The balers are located in the basement
of Haymarket Theater, and serve both the Haymarket Theater and the Adrrinistration build-
ings. Construction began in October 2011.
Palo Alto High School -New Classroom Building and Media Arts Building
Budget: $37,140,000 Planned Occupancy: July 2013
This project consists of the addition of two large buildings to the Paly can -pus. The meth
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 produc-
tion, photography, editing and journalism Construction began in August 2011 and is
planned for completion in July 2013.
Jordan Middle School
Budget: $17,943,194 Planned Occupancy: August 2013
Improvements at Jordan will include a newdassroom Wng, a newcafetorium and renova-
tions in several existing classrooms. The new classroom wing will be located in the Middle-
field parking lot. The new cafetoriumwill be located on the tennis courts just east of the
existing building. The existing cafetorium building will be renovated to accommodate odate new
music classrooms. Jordan's existing music classrooms will be renovated to accommodate
new art labs and the science wing \AAll also be renovated to convert three small labs into two
larger science labs. The project is anticipated to be bid in November 2011.
Terman Middle School
Budget: $12,850,071 Planned Occupancy: August 2013
The Administration and Library building at Terman will be expanded and renovated to ac-
oomrnodate a new office at the front of the school, two new computer labs and a new, larger
library in an addition on the east side of the building. Improvements will also include reno-
vations to the Cafetorium, anew drama classroom, and anew science lab where the exist-
ing drama classroom is. The project is anticipated to be bid in November 2011.
Strong Schools Bond Projects (Continued)
I L Stanford Middle School
Budget: $17,184,699 Planned Occupancy: August 2013
Improvements at JLS will include a new dassroom wing and renovations in several existing
classrooms. The new dassroom wing will be a two story building, located on the existing
playground area south of the industrial arts wing. Improvements in the existing classrooms
Wil include additional storage, technology walls and sound assist systems. The can -pus will
also be enhanced with improvements to exterior spaces to improve drainage and student use
of the outdoor space. The project was submitted to Division of State Architect (DSA) on May
6, 2011 for review and is scheduled to be bid in early 2012.
Elementary Schools - Elementary Classroom Improvements: Smartboard and
integrated sound assist listening systems
Final Cost: $1,678,482 Completion: April 2011
This project funded a technology wall for each elementary school can -pus. The technology
walls include an interactive whiteboard and a sound assisted listening device to enhance
student learning. The installation of new Smartboards and integrated sound assist listening
systems for all elementary classrooms was completed by April 2011.
Ohlone Elementary School - New Classroom Building and Modernization
Budget: $11,667,965 Planned Occupancy: January 2012
A new classroom building is being constructed on the Ohlone campus to accommodate an-
ticipated enrollment growth at the elementary schools. The project incudes new classrooms,
a flex room and a special day classroom in a two story structure adjacent to the existing li-
brary. The project also incudes modernization of existing classrooms, including improved
lighting, ventilation and new technology walls. Construction began in August 2010, and is
Panned for occupancy in January 2012.
Faimieadow Elementary School - New Classroom Building and Modernization
Budget: $9,327,500 Planned Occupancy: August 2013
A new classroom building is being constructed on the Fairrneadow can -pus to accommodate
anticipated enrollment growth at the elementary school level. The project incudes a new, two
story classroom wing adjacent to the Jackson Center. The project will also include an ex-
panded library and modernization of existing classrooms. The project was bid in October
2011.
Duveneck Elernentary School - New Classroom Building and Modernization
Budget: $11,088,757 Planned Occupancy: August 2014
Three additional classrooms are planned for the Duveneck can -pus to acconmodate antid-
pated enrollment growth. The project incudes a new, two-story eight classroom building and
two one-story classroom buildings for kindergarten and primary grade classrooms. The pro-
ject will also include an expanded library and modernization of existing classrooms. The
project is still in the preliminary design phase and is anticipated to be submitted to DSA in
early 2012.
Districtwide—Technology
Budget: $8,212,531 Completion: Oa -going
The District purdhased computers, utilizing bond funds, throughout the 2010/11 school
year. Dud ng the year there was a notable shift from desktops and laptops to handheld de-
vices, primarily at the elementary sdhool level. Implementation of the Vaoe-over-IP (VoIP)
telephone system started at the district office this fall. A major upgrade to the District's net-
work was bid in October 2011.
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