2015 - 2016 Annual ReportsMEASURE A
UNIFIED SCHOOL DISTRICT
.................................................................................
CITIZENS' OVERSIGHT COMMITTEE
2015 - 2016 ANNUAL REPORT
Committee Members as of June 30, 2016 Board of Education as of June 30, 2016
Jim Cowie, Chair, Business Organization Member, Parent, PTA Member Heidi Emberling, President
Bruce Whitson, Vice -Chair, Business Organization Member Terry Godfrey, Vice President
Walt Hays, Senior Citizens Organization Camille Townsend
Todd Collins, Taxpayer Organization Member Ken Dauber
Catharine Garber, Business Organization Member Melissa Baten Caswell
Daniel Sin -Yew Teo, Parent, PTA Member, Site Council Member
Arianne Teherani, Parent, PTA Member
Letter from Committee Chair
.....................................................
November 1, 2016
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 2015-16 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. The new performing arts center at Palo Alto High School was occupied in May 2016,
significant progress was achieved on the new indoor athletic facilities at Palo Alto High School, and progress was made on design
work for Gunn High School's central building project, Palo Alto High School's library renovation and science addition, and Addison
Elementary School.
From a financial perspective, the Bond Program expended nearly $34 million during the fiscal year. As of June 30, 2016,
approximately 67% of the full Bond Budget was contractually committed, and 65% had been expended.
On May 10, 2016, Series 2016 of the bond authorization was issued, which consisted of current interest bonds with an initial par
value of $45 million, with stated interest rates of 2.125% to 4% and maturing through August 1, 2035.
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 2015-2016 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 2015-2016 audits and further information on expenditures, minutes of the Committee's
meetings, and detailed monthly progress reports are available at:
http://pausd-web.pausd.org/community/StrongSchoolsBond/citizens.shtml.
Sincerely yours,
James J. Cowie
Chair, Citizens' Oversight Committee
E-mail: coc@pausd.org
2
COC members with Bond Program Staff
Authorized Amount: $378.0 M Issued: $300.0 M Expended: $257.3 M
Purpose Provide safe and modern schools, accommodate enrollment growth, upgrade aging classrooms, libraries, computer and science labs,
(per ballot language): repair or replace roofs, plumbing, heating, ventilation, and electrical systems, improve fire alarms and school security, meet current
earthquake standards; provide current technology, and replace old portables with permanent classrooms.
District Superintendent: Dr. Max McGee
Program Managememt: fs3lHodges
Auditor: Christy White Associates
About Strong Schools Bond
Strong Schools Bond is a $378
million bond authorization measure
passed on June 3, 2008 to support
growth, modernization and
improvement of the facilities and
fixtures of the Palo Alto Unified
School District.
To ensure the Strong Schools Bond
funds are spent in a way that best
Bond Program Manager:
Construction Management:
Audit Findings:
Completed by August 2016
Paly Performing Arts Center
Under Construction to be Completed After June 2016
Paly New Athletic Center
In Design
Central Building Project
Library Renovation
Science Addition
meets the needs of the District, the
individual sites, and the community at 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 ninth year, is a mature program,
with multiple projects completed, and a number of others in the
planning and building phases. Nearly $34.0 M was expended during
2015-16, and over $257.3 M in contracts have been either awarded or
completed. Both high schools, all three middle schools and three
elementary schools have completed substantial projects.
Independent Audit Reports
In compliance with Proposition 39, performance and financial audits
were conducted for the year ended June 30, 2016. These audits were
conducted in accordance with Generally Accepted Government Auditing
Standards by the firm of Christy White Associates, a professional
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, 2016. 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
Robert Golton
fs3lHodges
In Compliance without Exceptions
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.
Furthermore, it appeared that the
District's site projects were
competitive in price with similar projects in size and scope to other
school construction bond programs included in our benchmarking."
The auditors found that the program was materially in compliance with
the terms of Proposition 39 and Strong Schools Bond. Annual and
Audit reports are available to the public at: http://pausd-
web.pausd.org/community/StrongSchoolsBond/annual.shtmI
2015-16 COC Quarterly Meetings
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 2015-16:
July 29, 2015: Election of Chair and Vice Chair, Program Status
Update, Progress Report on Paly Athletic Center, Updated Bond
Budget, Annual Audit, Preparation for 2014/15 COC Annual Report,
Site Visit of Paly Performing Arts Center.
October 20, 2015: Program Status Update, Review of Financial and
Performance Audits from Christy White, Discussion of the COC
Annual Report to the Board of Education, Discussion of the
Presentation of the Annual Report to the Board of Education, and
Site Visit of Paly Performing Arts Center.
January 20, 2016: Site Visit of the Paly Athletic Center Project,
Program Status Update, Update on Future Projects, and Report on
Progress of the PAUSD Enrollment Management Committee.
April 20, 2016: Program Status Update, Report on Addison Project
and the Elementary Reserve, Membership for 2016-2018 and Site
Visit of Paly Athletic Center and Performing Arts Center projects.
Expenditures from July 1, 2008 Through June 30, 2016 (All amounts in $1,000s)
Bond Issued Overall Allocation Budget Status
' • •• PAUSDI Not
• �' -Appropriated Committede dednot
P
2%
Bond Issuance
Other Income Costs
4%/o a
�1 planned
MaintenanceCost
Allocated to
Projects But Not
Committed
110/0
4%
Budget status
Bond Status
Budgeted
Overall Allocation
Total
Budget status
08-15 FY
Total Bond Issued
299,999
Elementary Schools
98,678
Allocated to Projects But Not Committed
42,855
Bond Authorized, Not issued
78,001
Middle Schools
48796
,
Committed but not expended
6,614
Other Income
15,412
High Schools
195,013
28,239
59,580
Jordan Middle School
19,615
PAUSDI Not Appropriated
30,123
Expenditures
257,273
Total Funds
393,412
Bond Issuance Costs
3,044
Reserves/Not Appropriated
86,670
Terman Middle School
13,070
13,022
Planned Maintenance Cost
17,759
12,972
393,412
10,528
10,528
10,528
47
10,481
Duveneck Elementary
/AII amounts in P000'sl All number was accumulated from the heninninn of nroiect Year 2008-09 FY_
Projects
Budgeted
Committed
Total
15-16 FY
08-15 FY
Expenditures
Expenditures
Expenditures
Gunn High School
76,111
55,069
54,174
1,158
53,017
Palo Alto High School
108,708
92,853
87,820
28,239
59,580
Jordan Middle School
19,615
19,453
19,453
0
19,453
J.L.S. Middle School
16,111
15,977
15,977
95
15,882
Terman Middle School
13,070
13,022
13,022
49
12,972
Ohlone Elementary
10,528
10,528
10,528
47
10,481
Duveneck Elementary
9,230
9,230
9,230
62
9,168
Fairmeadow Elementary
7,591
7,590
7,584
11
7,573
All Other Elementary
2,696
2,337
2,331
0
2,331
Technology
10,485
9,783
9,767
52
9,715
Program Management
14,507
11,694
11,651
1,301
10,350
Planned Maintenance Cost
6,545
4,878
4,264
2,458
1,806
Subtotal - Projects
295,198
252,414
245,800
33,472
212,328
Reserves
Gunn High School
7,194
-
-
-
-
Palo Alto High School
3,000
-
Elementary Schools - Reserve
60,133
-
Technology - Reserves
3,422
-
PAUSD - Reserve
0
-
PAUSD-NotAppropriated
1,708
-
Palnned Maintenance -Not Appropriated*
11,214
-
-
-
-
Subtotal - Reserves/Not Allocated
86,670
0
0
0
0
525 San Antonio -Property Acquisition
8,500
8,500
8,500
0
8,500
Other - Bond Issuance Costs
3,044
2,973
2,973
443
2,530
Total
393,412
263,887
257,273
33,915
223,358
4
STRONG SCHOOLS BOND
Strong Schools for a Strong Community
Palo Alto Unified School District
Citizens' Oversight Committee
2015 - 2016 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, 2016. To see a complete list and additional detail on the status,
expenditures and schedule of current Strong Schools Bond projects, please visit:
http://Pausd-web.pausd.org/community/StrongSchoolsBond/monthly.shtml.
Strong Schools Bond Projects — Completed Projects
Gunn High School - Aquatic Center
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,
lighting and shade structures for events. The project also constructed a new building
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.
Gunn High School - Industrial Arts Addition and Renovation
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
began hosting classes in January 2010.
Gunn High School - Air Conditioning of Existing Buildings
Final Cost: $2,092,366 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.
5
View of Pool from Gym.
Industrial Arts Addition, view from quad
New condensers on roof of Gunn Buildings
Strong Schools Bond Projects — Completed Projects (Continued)
Gunn High School - New Classroom Buildings
Final Cost: $24,808,488 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
Final Cost: $12,450,948 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.
New Titan Gymnasium
IA
Strong Schools Bond Projects — Completed Projects (Continued)
Palo Alto High School - Multi -Use Field
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
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
7
Boiler Replacement - After
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Tower Bldg. New Windows - After
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Strong Schools Bond Projects — Completed Projects (Continued)
Palo Alto High School - Athletic Stadium Improvements
Final Cost: $4,758,036 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 — New Bleachers
Jordan Middle School
Final Cost: $19,109,347 Occupancy: August 15, 2013
Athletic Stadium Improvements — New Entry
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.
N
New Cafetorium Bldg.
Strong Schools Bond Projects — Completed Projects (Continued)
J. L. Stanford Middle School
Final Cost: $15,670,128 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
Terman Middle School
Final Cost: $13,051,488
Occupancy: October 30, 2013
Landscape and Sitework Improvements
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
W
New Library Expansion - Interior
Strong Schools Bond Projects — Completed Projects (Continued)
Ohlone Elementary School - New Classroom Building and Modernization
Final Cost: $10,528,254 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
Final Cost: $7,590,515 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.
Elementary Schools - Elementary Classroom Improvements: Smartboard and
integrated sound assist listening systems
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.
10
New Classroom wing
New Classroom wing and field
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Strong Schools Bond Projects — Completed Projects (Continued)
Gunn High School — Miranda Ave. Parking and Drop-off — Phase 1
Budget: $3,940,000 Completion: August 8, 2014
Phase 1 of this project constructed a new drop-off area along the west side of the Gunn
campus accessed from Miranda Ave. The new drop-off includes site improvements
adjacent to the drop-off area, and adds staff parking toward the northern part of campus.
Construction was completed before school started in August 2014, while the signal
relocation at the Miranda Ave. and Arastradero intersection was complete in June 2015.
Phase 2 work will include work in the main parking lot, and commence after completion
of the Central Building Project.
Gunn High School — E & K Buildings Renovation
Final Cost: $1,629,175 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 were
also renovated into classrooms and a tech room. Construction was complete and
occupied in August 2014.
View of Miranda turnaround and drop-off
New Classroom in K wing
Palo Alto High School - New Classroom Building and Media Arts Building
Budget: $36,938,516 Occupancy: August 2014
This project consists of the addition of two large buildings to the Paly campus. The math and social sciences building consists of 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 includes 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 was occupied in August 2014.
New Classroom Building
11
New Media Arts Center
Strong Schools Bond Projects — Completed Projects (Continued)
Duveneck Elementary School - New Classroom Building and Modernization
Budget: $9,230,464 Occupancy: August 15, 2014
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 replaced the eight portable classrooms, and add three additional classrooms to the
campus. The project includes an expanded library and modernization of existing classrooms. Construction began in May 2013 and was completed
in August 2014.
New Kindergarten Classroom Bldg.
New 41h and 51h Grade Classroom Bldg.
Palo Alto High School - New Performing Arts Center
Budget: $29,370,049 Occupancy: May 7, 2016
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 201612017 academic year.
Performing Arts Center Lobby and Drop Off
12
Performing Arts Center House
Strong Schools Bond Projects - In Progress
Gunn High School - Central Building Project
Budget: $21,084,277 Planned Occupancy: August 15, 2018
The new central building provides a centralized building housing Performing Arts, Student Activities, Wellness Center and Media Arts classrooms.
The project will demolish the current Music building and replace it with a larger facility to adequately house the music programs. A new two story
building will provide a new space for Student Activities, new Media Arts classrooms, and a new Wellness Center on the second floor. 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
District -wide — Technology
Budget: $10,157,367 Completion: On-going
# I _
New Central Building Project - Rendering
The District purchased computers, utilizing bond funds, throughout the 2015/16 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.
Palo Alto High School - New Indoor Athletic Facilities
Budget: $17,671,555 Planned Occupancy: August 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. Construction commenced
in August, 2015, and is planned to be occupied for the summer of 2017.
New Indoor Athletic Facility - Aerial
13
New Indoor Athletic Facility - Rendering
Strong Schools Bond Projects — In Progress (Continued)
Palo Alto High School — Science Addition
Budget: $5,532,204 Planned Occupancy: March 2019
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 is completed.
New Science Addition - Rendering
Palo Alto High School — Building 500 (Library) Renovation
Budget: $10,394,140 Planned Occupancy: August 2018
New Science Addition - Rendering
The Building 500 Renovation project at Paly will reconfigure the old library, offices and resource rooms into a new expanded Library facility and
Counseling Center. The new facility will include a new computer lab, a `Maker Space' lab, and new offices to house Guidance and Counseling,
Student Activities and the College and Career Center. Construction is planned to begin in fall 2017 after completion of the new Indoor Athletics
Center.
Library Renovation — Rendering of Exterior
14