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2011 - 2012 Annual ReportsMEASURE A STRONG SCHOOLS BOND PALO ALTO UNIFIED SCHOOL DISTRICT ................................................................................. CITIZENS' OVERSIGHT COMMITTEE 2011 - 2012 ANNUAL REPORT C,omrrittee Members as of June 30, 2012 Board of Education, 2011-2012 Todd Collins, Chair Person, Taxpayer Organization Member Carnille Townsend, President Mary Marth, floe -Chair, Parent Dana Torn, Vice President Ray Bacchetti, Member, Senior Citizen Melissa Baten Caswell Scott Darling, Member, At Large Barbara Nausner Catherine Garber, Member, Business Organization Member Barb Kitchell Gary Hombeek, Member, Parent, PTA Member Bruce Whitson, Member, Parent Letter from Committee Chair ..................................................... September 18, 2012 To: The Board of Education and the Citizens of the Palo Alto Unified School District The Citizens' Oversight Committee is pleased to forward its fourth Annual Report, covering the 2011-12 fiscal year, on the $378 million general obligation Strong Schools Bond. The purpose of the Citizens' Oversight Committee (CbC) 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, and receives periodic project status updates. The Bond building program is in full swing. In the past year several major projects were completed, and even more projects begun. A list of those projects is included in the "Highlights" section on the next page. The District currently has eight active projects in the construction phase, with additional projects currently being planned. From a financial perspective, the Bond Program expended $58 million during the fiscal year, and entered comritted contracts for a total of $184 million. Each amount is greater than in all prior years of the program combined. The program has now committed approximately 49%of the full Bond amount, and expended 27%. The current rate of building and spending is expected to continue. Fight now over $130 million of projects are under construction, with major projects at Paly, Gunn, Terman, Jordan, JLS and Faim-eadcwschools. With spending comes the need to issue additional bonds, for the first time since 2010. The District plans to issue additional bonds in the coming fiscal year. This issuance necessitated a review of the forecast for bond tax revenue, which had not been revisited since the first bonds were issued in 2008. Based on that review, the Board of Education approved an increase in the bond tax rate, as detailed on the next page. The tax rate increase will significantly reduce the interest costs and repayment period for the bonds, while enabling the Distdct to complete all projects that had been planned. As in previous years, the COC reviewed the Financial Audit and the Perfom-ance Audit issued by the independent auditing firm of Christy White Associates, Professional Accountancy Corporation. The firm conducted its audits in cornpliance with generally accepted Government Auditing Standards. Under these standards, the audit firm independently deternined 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 Schools Bond, which is the highest level of assurance which auditors can provide. In sum, the COC wishes to report that, to the best of its knowledge, the Palo Alto Unified School District is in full conpliance 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 the District's Strong Schools Bond. The work of the Citizens' Oversight Committee is conducted pursuant to the Brown Act. Al l meeti ngs of the COC are open to the public; observers are welcome. The 2011-2012 audits and further information on expenditures, minutes of the CDCs meetings, and detailed monthly progress reports can be found on the District's Web site, http://pausd.orgloommunity/StrongSchoolsBor d/. Sincerely yours, 6M Todd Collins Chair, Citizens' Oversight Committee E-mail: oocApausd.org CDC Members with Bond Program Staff Reviewing Paly Construction April 2012 Authorized Amount: $378.0 n-illion Issued: $145.0 (381/o) Expended: $101.5 (271/6) Purpose Provide safe and modem schools, accomhrodate enrollment growth, upgrade aging classrooms, libraries, computer (per ballot and science labs, repair or replace roofs, plurrbng, heating, ventilation, and electrical systems, improve fire alarms language): and school security, meet current earthquake standards; provide current technology, and replace old portables Wth permanent classrooms. District Superintendent: Kevin Skelly Bond Program Manager: Robert Golton Program Management: Conor Construction Mgmt. (OCMI) Construction Managernerit: Gilbane Building Conpany & OCM Auditor: Strong Schools Bond is a $378 Tri I I ion bond authorization measure passed on June 3, 2008 to support growth, m cclernization and inprrnerrent of the facilities Mite Associates Audit Corrpleted in 2011-12 Elementary Gassroom Inproverrents - Interactive VAhiteboards Chlone New classroom building and rrodernization Gunn Air conditioning of existing buildings Paly Tower Building baler replacerrent and fixtures of the Palo Alto Ground Broken in 2011-12 Unified School District. Gunn New natVenglish and world languages buildings Budget Completion Gunn New gymnasium To ensure the Strong Schools paly New classroom and rrdia arts building Bond funds are spent in a way paly Athleticstadiumtield improvements that best meets the needs of Jordan New classroom building and modernization the District, the individual Tern -an New construction, expansion and nDdernizaton sites, and the community at JLS New classroom building and n-odernization large, a variety of strategies Fairneadary New classroom building andrrodernization are being used. These include Non -Project Events Site Facilities Steering CaTi- Purchase of 525 San Antonio 2.6 acre parcel mttees oorrpnsed of principals, Board approval of projects at Duveneck, Paly teachers, parents and conTnunity Board approval to additional bonds n-erTjers that rpake reoOm- Board approval of increase in bond tax rate maylations 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 in its fifth year, is in full swing, with multiple projects completed, as well as in the planning and building phases. Over $58 Trillion was expended during 2011-12, and over $184 Trillion in contracts were authorized and awarded. Both high schools and all three middle schools have substantial projects oor pleted and underway. Finally, the District, for the first time in many years purchased land: a 2.6 acre parcel at 525 San Antonio Avenue, adjoining the Greendell school site. Tax Rate Update In conjunction with a planned issuance of additional bonds, the Board approved an increase in the tax rate for the Strong Schools Bond to $60 per $100,000 in assessed value (AV). Combined with the remaining payments on the 1995 Building for Excellence bonds, property owners will pay $95.30 per $100,000 AV in the coming year, Various The audit firm rendered an opinion Jun --12 Jun -12 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, 2012. The audit further found that the expenditures tested were in corrpliance with the terms of the ballot measure and applicable State laws and regulations. The auditors reported: "We found all expenditures tested to be in conplianoe with the terms 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. Furthemhor-e, it appeared that the District's site projects were competitive in price Wth similar projects size and scope to other school construction bond programs inducted in our benchmarking." The auditors identified no deficiencies, matedal weaknesses, or instances of noa-compliance related to the financial statements. Further, they had no findings or recomhhendations related to the financial and performance audit. To view the corroete audit report, visit: http://pausd.orct/cormunity/StrongSchoolsBand/annual.shtml Wth the amount declining each year until reaching $60 in 2022. The Budget Completion Board indicated that imposing higher (ninon) pate tax rates today is expected to lower $2.0 Mar -12 the total cost of borrowing by as $11.7 Jan -12 much as $1.3 billion over the life of $2.6 Near -12 $0.8 Near -12 the bond versus continuing the current tax rate. $25.0 2013 Independent Audit Reports $12.9 2012 $37.1 2013 In compliance Wth Proposition 39, $5.1 2013 performance and financial audits $19.9 2013 were conducted for the year ended $13.3 2013 June 30, 2012. These audits were $17.2 2013 conducted in accordance with $9.5 2013 generally accepted Governmental Auditing Standards by the firm of $8.5 Nov -12 Christy White Associates. Various The audit firm rendered an opinion Jun --12 Jun -12 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, 2012. The audit further found that the expenditures tested were in corrpliance with the terms of the ballot measure and applicable State laws and regulations. The auditors reported: "We found all expenditures tested to be in conplianoe with the terms 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. Furthemhor-e, it appeared that the District's site projects were competitive in price Wth similar projects size and scope to other school construction bond programs inducted in our benchmarking." The auditors identified no deficiencies, matedal weaknesses, or instances of noa-compliance related to the financial statements. Further, they had no findings or recomhhendations related to the financial and performance audit. To view the corroete audit report, visit: http://pausd.orct/cormunity/StrongSchoolsBand/annual.shtml Palo Alto Unified Sdiod District Strong Schools Bond Expenditures as of June 30, 2012 Bond Issued Overall Allocation BudcO Status Ircme F/ and Issuance Costs 0% Budget status UVeran mocatlon Bond issued 11-12 FY Derrantary Sdhods Total Bond Issued 144,999 Middle Schools Bond Ad)orizgd, Not issued 233,001 High Schools Cher Income 8,777 PAUSD/ Not Appropriated 59,860 Expendihares Bond Issuance Costs Total Funds 386,777 Total Funds (AI anxrts in $MS, c rnuvetan ircOcn except where roho and Issuance Costs 0% Budget status 98,678 11-12 FY 08-11 FY Pro. Alocated But Not Ca Tn lted 74,928 51,493 174,905 ConTntled but not expended 82,529 59,860 Expendihares 101,451 1,841 Reserves/NotAppropriated 127,868 386°TT7 Total Funds 386,777 Total 11-12 FY 08-11 FY Pro. Budgeted Con tted E)Venditures Expenditures Expenditures Gann High School 54,586 47,490 28,393 14,076 14,31 Palo Ab High School 70,878 43,190 20,344 13,710 6,635 Jordan MtddleSdhod 20,511 19,145 6,873 5,378 1,495 J.L.S. MiddleSdnod 17,650 15,589 2,834 988 1,846 Tern -an Middle School 13,332 1Z697 5,148 4,160 988 Chlone Derrentary 11,668 10, 10, 4,094 5,960 DuveneccBerrentary 11,089 1,685 750 567 183 FairrreadowBerrentary 9,544 8,973 2,806 2,020 786 All Cl her Berrentary 24,420 Z335 2,309 3 2,306 Technology 8,238 6,737 6,701 2,987 3,71 ProgramManagerrent 6,652 4,997 4,897 1,384 3,51 Subtotal -Projects 248,568 173,639 91,110 49,367 41,743 Reserves Gann High School 21, - - - - Palo Ab High School 27,91 - - - - Berrentary Schools - Reserve 33, - - - - Technology - Reserves 5, - - - - PAUSD-Reserve 5,7 - - - - PAUSD-NotAppropriated 33,54 - - - - Subtotal - Reserves/Not Allocated 127, 525 San Antonio Ave -Property Acquisition 8,5008,5008,5008,500 Cher - Bond Issuance Costs 1,841 1,841 1,841 0 1,841 Total 386,771 183,9EM 101,451 57,861 43,584 4 STRONG SCHOOLS BOND Strong Schools for a Strong Community Palo Alto Unified School District Citizens' Oversight Committee 2011 - 2012 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, 2011. 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/commnity/StrongSchoolsBondt 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 pod facility to replace the original pod. The pod accu-nmodates swimming, diving and water polo, and includes a new deck, bleachers, lighting and shade structures for events. The project also constructed anew building housing restroorrs, outdoor showers, 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 Budget: $5,082,403 Final Cost: $5,049,526 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 onkime and within budget and began hosting classes in January 2010. Gunn High School - Air Conditioning of Existing Buildings Budget: $2,600,400 Final Cost: $2,102,336 Completion: August 8, 2011 This project converted existing heating systems to provide coding to the L, M, S, IA, and A buildings on the Gunn High School can -pus. Installation of a'000l' roof system on these building was also included as part of this project. The project was completed on-time and within budget and began coding classrooms at the start of school in August 2011. k Strong Schools Bond Prqects —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 eAsting 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 in -prove fencing, scoreboards and drainage around the field. Reconfiguration of the south parking lot was also included in this project. The project was corroeted on-time and within budget and was ready for the opening of the 2011 baseball and softball seasons. Elementary Schools - Elementary Classroom Improvements: Smartboard and integrated sound assist listening systems Budget: $2,000,000 Final Cost: $1,863,782 Completion: April 2011 This project funded a technology wall for each elementary school campus. The techndogy walls include an interactive whiteboard and a sound assisted listening device to enhance student leaming. The installation of new Sn-artboards and integrated sound assist systems for all elementary classrooms was conpleted in April 2011. Ohlone Elementary School - New Classroom Building and Modernization Budget: $11,667,965 Final Cost: $10,802,112 Occupancy: January 3, 2012 A new classroom building is being constructed on the Chlone campus to accomodate anticipated enrdln-ent growth at the elementary schools. The project includes new dassrooms, a flex room and a special day classroom in a two story structure adjacent to the eAsting library. The project also includes modemization of eAsting classrooms, including improved lighting, ventilation and new technology walls. Construction was completed in December 2011 and occupied in January 2012. _17 --- I! oE_~ —06 .I�� Strong Schools Bond Projects — In Progress Gunn High School - New Classroom Buildings Budget: $25,035,200 Planned Occupancy: August 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 new V\brld Languages classrooms and offices adjacent to the L wing complex and the Science building along Arastradero. Construction began in August 2011 and is scheduled for completion in June 2013. New Math and English Bldg.- At Completion New Void Languages Bldg..- At Completion New Math and English Bldg.—Axjust 2012 NewWcrld Languages Bldg.- August 2012 Gunn High School - NewGynmsium Budget: $12,914,800 Planned Occupancy: January 2013 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 new ticket booth, restroom -is, team rooms and a fitness room for weightlifting 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 parking lot. Planning and design have been completed. Construction began in August 2011 and is scheduled for corrpletion in December 2012. New Gymnasium.- At Completion New Gymnasium—August 2012 Strong Schools Bond Projects— In Progress (Continued) Palo Alto High School - Tower Building Improvements Budget: $1,500,000 Planned Completion: December 2012 This multi -phase project is providing improvements to the Tower Administration building at Paly. The first phase replaced the balers in the basement of the Haymarket Theater. The last phase included replacing exterior trim, roofing, dry -rot repairs and painting the exterior, which was completed in August 2012. The next phase will include replacement of all the exterior windom. This work will be bid this fall and be completed by December 2012. New Tower Bldg VVf ndows - Before Baler Replacerrent - Before New Tower Bldg VUndow— Large VUndow Replacement 2012 Baler Replaoerrerit - After Palo Alto High School - Athletic Stadium Improvements Budget: $5,090,000 Planned Occupancy: March 2013 This project will include a new building to house restrooms, concessions, equipment storage, and ticket sales. Additional site improvements include new picnic areas, track resurfacing, and new bleachers for both the home and visitor's side of the field. The project is under construction and scheduled to be complete in March 2013. Athletic Stadium Improverrents —At Caroetion Athletic Stadium Improvements—August 2012 Strong Schools Bond Projects — In Progress (Continued) Palo Alto High School - New Classroom Building and Media Arts Building Budget: $37,140,000 Planned Occupancy: December 2013 This project consists of the addition of two large buildings to the Paly can -pus. The n-eth 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, editing and journalism Construction began in August 2011 and is scheduled for completion in August 2013. New Math and Social Sciences Bldg. - At Completion New Math and Social Sciences Bldg. -August 2012 New Media Arts Bldg. -At Completion New Media Arts Bldg.-Aigust 2012 Palo Alto High School - New Performing Arts Center Budget: $24,395,049 Planned Occupancy: August 2015 The Perforning Arts Center at Paly will provide a new, 592 seat facility 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 r iechanical orchestra pit, a full fly to\Au for staging, and a trap room below the stage. The building will also include a classroom specifically designed for the drarre program The project is in the construction documents phase and is planned to be submitted for DSA review in Deoember 2012, with construction planned to begin in the fall of 2013. lmh—dau New Perform ng Arts Center - Renden ng New Perforring Arts Center - Rendering Strong Schools Bond Projects — In Progress (Continued) Jordan Middle School Budget: $19,891,564 Planned Occupancy: August 2013 Improvements underway at Jordan include a new classroom vying, a new cafetorium and renovations in several existing classroom wings. The newdassroomvving is located in the Middlefield parking lot. The newcafetorium is located on the tennis courts just east of the eAsting cafetorium The eAsting cafetorium building will be renovated to acconTrodate new music classrooms. Jordan's existing music classrooms will be renovated to aceorrrrodate new art labs and the science wing will also be renovated to convert three small labs into two larger science labs. The project is under construction and scheduled for completion in August 2013. T �- New classroom Bldg. -At Completion k_1 New Cafetoium Blda. - At Con-detion New aassroom Bldg. -August 2012 New Cafetorium Bldg. -August 2012 J. L Stanford Middle School Budget: $17,184,699 Planned Occupancy: December 2013 Improvements at JLS include a new classroom wing and renovations in several existing classrooms. The new classroom wing will be a two story building housing ten new classrooms, located on the existing playground area south of the industrial arts wing. Improvements in the existing classrooms will include technology walls and sound assist systems, which were completed via separate contract in 2011. The campus will also be enhanced with improvements to exterior spaces to improve drainage and student use of the outdoor space. The project began construction in May 2012 and is scheduled to be corrplete in December 2013. .QliFj y7RFi New Bldg. Student Courtyard -At Corroetion `Cs, New Bldg.- August 2012 New Blda. Student Courtvard.- August 2012 Strong Schools Bond Projects — In Progress (Continued) Temian Middle School Budget: $13,312,971 Planned Occupancy: August 2013 The Administration and Library building at Temian will be expanded and renovated to acconTriodate a new office at the front of the school, two new computer labs and a new library located in an addition on the east side of the building. Improvements will also include renovations to the cafetorium, a new drama classroom, and a new science lab. The project is under construction and scheduled for completion in August 2013. New Drama Classroom- At Completion t. NewAdmnistration and Library Expansion -At Completion SRS jf--- Y � New Drama Classroom -August 2012 New Adrrinistration and Library Expansion -August 2012 FainTmdow Bementary School - New Classroom Building and Modernization Budget: $9,543,750 Planned Occupancy: August 2013 A new classroom building is being constructed on the Fairmeadow can -pus to accommodate anticipated enrollment growth. The project includes a new, two story classroom wing adjacent to the Jackson Center that will house eight new classrooms and new restrooms on each level. The project also includes an expanded library and relocation of kindergarten classrooms and play areas. The project started construction in January 3, 2012 and is sd-ieduled to be complete in August 2013. New 4th and gh Grade Classroom Bldg. -At Completion New Library Bpansion -At Completion 11 New 4ch and 51h Grade Classroom Bldg. -August 2012 New Library Expansion -August 2012 Strong Schools Bond Projects – In Progress (Continued) Duveneck Bementary School - New Classroom Building and Modernization Budget: $11,088,757 Planned Occupancy: August 2014 The portable buildings relocation required for this project was accomplished in sunTner 2012. 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 modemization of existing classrooms. The project was submitted to DSA in February 2012 and is scheduled to be bid in November 2012. New41h and 511 Grade Gassroom Bldg.- Rendering New Kndergarten Classroom Bldg. - Rendering big �■momMoog New 1s, Grade aassroom Bldg. - Rendering District -wide —Technology Budget: $8,238,257 Completion: On-going The District purchased computers, utilizing bond funds, throughout the 2011/12 school year. There has been a notable shift from desktops and laptops to handheld devices, primarily at the elementary school level. Implementation of the Vace-over-IP (VoIP) telephone system and a major upgrade to the District's broadband of wireless access pants both completed in August 2012. Planned for the 2012/13 school year is the installation of wireless antennas at each school to enhance the District's broadband network. M