2008 - 2009 Annual ReportsMEASURE A -
STRONG SCHOOLS BOND
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PALO ALTO
UNIFIED SCHOOL DISTRICT
CITIZENS' OVERSIGHT COMMITTEE
2008 - 2009 ANNUAL REPORT
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Letter from Committee Chair
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November 6, 2009
To: The Board of Education and the Citizens of the Palo Alto Unified School District
The Citizens' Oversight Committee is pleased to forward its initial report, covering the 2008-09 fiscal year, on the $378
million general obligation Measure A—Strong Schools Bond program.
The purpose of the Citizens' Oversight Committee (COC) is to inform the public concerning the expenditure of bond
revenues. The COC is required by state law to actively review and report on the proper expenditure of taxpayers'
money for school construction. The COC provides oversight and advises the public whether the District is spending the
Measure A bond funds for school capital improvements within the scope of projects outlined in the Measure A - 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 Measure A—Strong Schools Bond activity.
In this first year, the Committee 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 Measure A—Strong Schools
Bond list. At each of our meetings, we met with appropriate District officials and with senior representatives of the project
management and construction management firms employed by the District to oversee planning and operations.
At the close of this year, the High School Master Plans, the Middle School Pre -design Studies, and the Elementary
School Growth Plan were substantially completed. The Gunn Aquatic Center was also substantially completed. Including
the Aquatic Center, as of October 21, 2009, projects budgeted at more than $150 million were underway or planned for
implementation over the next five years. The remaining Measure A - Strong Schools Bond projects will be prioritized and
scheduled by the Board of Education.
The Committee reviewed the Financial Audit and the Performance Audit, issued by the independent auditing firm of
Nigro Nigro & White, PC. The firm conducted its audits in compliance with Generally Accepted Government Auditing
Standards. Under these standards, the audit firm independently determined what 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 Measure A - Strong
School Bond. The Audit Report noted three findings regarding program management, including the District's response to
each finding. As a Committee, we are satisfied with the District's responses. The full Report is available on the District's
website; that address appears in the final line of this letter.
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 the District's Measure A—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; observers are welcome. Further information on expenditures, the Committee's deliberations, and detailed
monthly progress reports can be found on the District's Web site, http://pausd.org/community/MeasureA/.
Sincerely yours,
Ray Bacchetti
Chair, Citizens' Oversight Committee
E-mail: COC@pausd.org
Committee Members
Ray Bacchetti, Member, Senior Citizen and Taxpayer
Organizations
Scott Darling, At Large Member
Gary Hornbeek, Parent, PTA Member
Deepak Kanungo, Parent
Caroline Maser, Parent
Jim McFall, Business Organization Member
Steve Shevick, Parent
Board of Trustees, 2008-2009
...........................
Barb Mitchell, President
Barbara Klausner, Vice President
Melissa Baten Caswell
Dana Tom
Camille Townsend
Senior District Officials
...........................
Kevin Skelly, Superintendent of Schools
Bob Golton, Co -Chief Business Official & Bond Program Mgr
Cathy Mak, Co -Chief Business Official
About the District
...........................
The school district was founded on March 20, 1893. The first
school opened in September 1893, with two teachers and 70
pupils crowded into a temporary two -room schoolhouse. The
District grew until 1967, when enrollment peaked at 15,575
students. At that time the District operated 22 Grade K-6
About Measure A - Strong
Schools Bond
...........................
Measure A - Strong Schools Bond is a $378 million bond
measure passed on June 3, 2008, that authorizes funding to
provide safe and modern schools; accommodate enrollment
growth; upgrade aging classrooms, libraries, computer and
science labs; improve athletic facilitites; 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, within the Palo Alto
Unified School District.
California State law requires that a Citizens' Oversight
Committee be appointed by the Board of Education within sixty
days of its July 2, 2008 certification of the election results. The
Board of Education appointed the COC on August 26, 2008.
To ensure the Measure A 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 include Site 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 Measure A bond expenditures with an eye toward
the needs of the district today and well into the future.
To ensure the Measure A program is being managed effectively,
the Board of Education approved O'Connor Construction
Management, 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 Measure A and provides program administration
duties and manages early project development. The Board of
Education also approved Gilbane Building Company to provide
design administration and construction management services
for the program. Arnold Teten, Gilbane's Senior Construction
Manager, and his staff work closely with O'Connor to provide
seamless management and coordination of all Measure A
projects.
elementary schools, three Grade 7-9 junior high schools and
three Grade 10-12 high schools. Enrollment began to decline
in the 1970s and continued to decline through the 1980s.
The bottom of the decline was reached in 1989 when total
enrollment stood at 7,452. The configuration of schools then
showed eleven elementary schools, one middle school and two
high schools. Jordan Middle School has since been reopened
as enrollment has increased, and in September 1998 a twelfth
elementary school, Barron Park, was opened. In August 2001,
Terman Middle School was reopened as a third middle school.
During the 2000's the number of elementary students migrating
into the District has been much larger than in past decades,
with approximately 100 net new students per year. Total district
enrollment stood at 11,368 for the 2008-2009 school year. The
district utilizes the services of Lapkoff & Gobalet Demographic
Research, Inc. for annual enrollment forecasts. The most
recent report was issued in January 2009 and projected
continued increases in enrollment through 2013. The medium -
range scenario in the latest forecast anticipates growth of 12%
over the next five years to a total enrollment of 12,698 in 2013.
Committee Meetings
...........................
The Citizens' Oversight Committee meets on a quarterly basis.
All meetings are open to the public. Scheduled upcoming meet-
ings are: January 20, 2010; April 21, 2010; and July 21, 2010.
Proceedings of the meetings held included:
October 15, 2008: Role and Responsibilities of the COC, Re-
view of the Bond Project List, Program Management/Construc-
tion Management Overview, and Bond Sale Update.
January 14, 2009: Election of Chair/Vice Chair, Financial Up-
date, Program and Project Update, Report on Gunn Industrial
Arts Bid Results/Financing, Annual Requirements, and Informa-
tion Flow to COC Members.
April 15, 2009: Monthly Report, Review of a State Controller's
Office Audit of Another COC, Framework for Tracking Measure
A Progress, Site Visit - Gunn Pool Construction, Performance
Audit/Financial Audit, and Outline of 2009 COC Report
July 15, 2009: Monthly Reports, Bond Implementation Pro-
cess, Outline of 2009 COC Report, Performance Audit and Fi-
nancial Audit, and Site Visit - Gunn Industrial Arts Building
October 21, 2009: Back -To -School Nights, Member Atten-
dance at Board of Education Meetings Devoted to Measure
A Topics, Financial and Performance Audits, Sign -off on First
Annual Report of the COC, November 10th Presentation to the
Board of Education, Timing of Election of New Officers.
Independent Audit Reports
In compliance with Proposition 39, performance and financial
audits were conducted for the year ended June 30, 2009.
These audits were conducted in accordance with Generally
Accepted Governmental Auditing Standards by the firm of
Nigro Nigro & White, PC.
The audit firm rendered an opinion that the District's financial
statements present fairly in all material respects the financial
position of the Measure A Bond Building Fund as of June 30,
2009. The audit further found that the expenditures tested were
in compliance with the terms of the Measure A ballot measure
and applicable State laws and regulations.
The auditors made findings and recommendations for the
program and these will be implemented by the District. To
view the complete audit report, please visit http://pausd.org/
community/MeasureA/.
Palo Alto Unified School District
Measure A Expenditures as of June 30, 2009
Total Funds Expended Status Overall Allocation Budget Status
Expended
3%
PAUSD \
16% Elementary
Schools
26%
Allocated to
Projects But
Jot Expended
38%
Middle
Bond Funds High Schools Schools Reserves/Not
a6% 13% Allocated
Remaining 59�
97%
Expenditures
3%
Expended Status Overall Allocation (See table for details) Budget Status
Total Bond Authorization $ 378,000,000 Elementary Schools $ 98,678,279 Allocated to Projects But Not
Interest Earned $ 2,187,573 Middle Schools $ 49,126,150 Expended $ 144,501,565
Total Bond Funds $ 380,187,573 High Schools $ 172,633,105 Expenditures $ 10,030,779
PAUSD $ 59,750,039 Reserves/Not Allocated $ 225,655,229
Total Funds Expended $ 10,030,779 $ 380,187,573 $ 380,187,573
Bond Funds Remaining $ 370,156,794
The first year of Measure A saw the majority of expenditures going toward two construction projects at Gunn High School.
These projects were designed prior to Measure A with other funding sources, which allowed the construction to begin
quickly once Measure A funds became available. Other expenditures primarily went toward planning and preliminary
design services, site and soils surveys, program administration and start up costs.
Palo Alto Unified School District
Measure A - Strong Schools Bond
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4
School Name - Project Name
Budgeted
Committed
Expenditures
Projects
1
Gunn High School - High School Master Plan
115,000
90,636
75,850
2
Gunn High School 1 -Aquatic Center
5,013,750
4,858,502
4,406,881
3
Gunn High School 2 - LA
5,511,500
4,590,482
1,828,236
4
Gunn High School 3 -AD2- close out
5,777
5,777
5,777
5
Gunn High School 4 - New classroom A& B
24,120,000
1,262,300
58,246
6
Gunn High School 5 - Parking & Drop Off improvements
3,940,000
214,620
511
7
Gunn High School 6- New/Auxiliary Gymnasium
13,830,000
820,628
19,539
8
Palo Alto High Schools - High School Master Plan
115,000
91,237
75,949
9
Palo Alto High School 1 - Bleacher
1,358,437
116,506
73,157
10
Palo Alto High School 2 - Multi -Use Field (Multi -Fund)
3,002,063
274,641
195,547
11
Palo Alto high School 3 - New classroom & Media Art Building
34,220,000
1,816,755
83,923
12
Palo Alto High School 4 - New Theater
17,720,000
1,026,210
0
13
Jordan Middle School - Middle School Pre -Design
33,665
14,718
13,477
14
Jordan Middle Schools 1- Interim Classrooms
600,342
162,557
53,578
15
J.L.S Middle School - Middle School Pre -Design
33,669
14,627
13,386
16
J.L.S Middle School 1 - Interim Classrooms
446,844
280,607
115,303
17
Terman Middle School - Middle School Pre- Design
33,666
14,627
13,386
18
PAUSD Elementary Schools - Elementary Growth Plan
145,000
62,700
55,560
19
Garland Elementary School 1- Phase 1
22,178,544
1,327,807
178,243
20
Ohlone Elementary School 1- Phase 1
11,667,965
257,734
194,934
21
Elementary Schools 1 - Elem Teaching Wall Project
7,044,987
104,517
33,448
22
PAUSD- Program Admin.
1,461,135
1,461,135
990,916
23
PAUSD- Technology
1,935,000
1,935,000
1,544,932
Subtotal - Projects
154,532,344
20,804,323
10,030,779
Reserves/Not
Allocated
24
Gunn High School - Reserved
21,303,533
0
0
25
Palo Alto High School - Reserved
42,378,045
0
0
26
Jordan Middle School - Reserved
17,943,194
0
0
27
J.L.S Middle School - Reserved
17,184,699
0
0
28
Terman Middle School - Reserved
12,850,071
0
0
29
Elementary Schools - Reserved
57,641,783
0
0
30
PAUSD - Reserved
6,335,945
0
0
31
PAUSD-Not Allocated
50,017,959
0
0
Subtotal - Reserves 225,655,229 0 0
Total 380,187,573 20,804,323 10,030,779
Prepared by: Business Services Department based on QSS, a District accounting system
4
MEASURE A -STRONG SCHOOLS BOND
Strong ScFcooCs for a Strong Community
Palo Alto Unified School District
Citizens' Oversight Committee
2008 - 2009 Annual Report
Status at of June 30, 2009
Below is a sampling of the active projects within Measure A - Strong Schools Bond. To see a complete list and additional
detail on the status, expenditures and schedule of current Measure A bond projects, please visit http://pausd.org/com-
munity/MeasureA/.
Gunn High School Aquatic Center Complex
Budget: $5,013,750 Occupancy: June 2009
This project constructed a new 35 meter pool facility to replace the
original pool. The pool will accommodate 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 aquatic athletic teams. This project is substantially complete
and is in use by the school.
Gunn High School Industrial Arts Addition and
Renovation
Budget: $5,511,500 Planned Occupancy: January 2010
This project completely renovates and expands the existing
Industrial Arts building at Gunn. The addition includes two new
biotechnology labs and support space. The existing building will
have the same labs as before, but with upgraded electrical and
mechanical systems as well as new finishes and casework. The
project is underway, and is scheduled to begin hosting classes in
January 2010.
Palo Alto High School Multi -Use Field
Budget: $3,002,063 Planned Occupancy: January 2011
This project will re -construct the existing baseball and softball fields
on the southern end of campus. The new fields will include new
dugouts, bullpens, batting cages and bleachers for each venue,
and will improve fencing, scoreboards and drainage around the
field. Reconfiguration of the south parking lot is also included in this
project, which will include new striping and landscaping to improve
this edge. The project has been approved by the State, and will be
bid for construction early next year.
Ohlone Elementary School New Classroom Building
and Modernization
Budget: $11,667,965 Planned Occupancy: August 2011
A new classroom building is being constructed on the Ohlone
campus to accommodate anticipated enrollment growth at the
elementary schools. The project includes 10 new classrooms, a
flex room and a special day classroom in a two story structure
adjacent to the existing library. The project will also include some
modernization of the existing classrooms, including improved
lighting, ventilation and new teaching walls.
Measure A - Strong Schools Bond Projects (Continued)
Jordan, JLS and Terman Middle Schools Pre -Design
Studies
Conceptual plans have been developed for each of the Middle
Schools to expand or improve the campuses to accommodate
planned growth. Plans for Jordan include a new six classroom
wing in the Middlefield parking lot, expansion of the cafetorium and
modernization in existing wings to improve ventilation and cooling.
Work at JLS will include a new, two story classroom wing with 10
classrooms, and modernization in other existing wings to support a
campus reorganization plan. Plans at Terman include a new drama
classroom, expansion of the library and computer lab In the main
building, and modernization in other wings to improve cooling and
enlarge undersized classrooms.
Gunn High School New Gymnasium
Budget: $13,830,000 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, restrooms, team rooms and a fitness room, which will
house weightlifting and dance activities. In addition to the gym, the
project will rebuild eight outdoor tennis courts and three outdoor
basketball courts on the northern edge of the student parking lot.
Gunn High School New Classroom Buildings
Budget: $24,120,000 Planned Occupancy: August 2013
This project consists of two new classroom buildings on the Gunn
campus. A large, two story classroom wing located in the current
Titan Village location will house 28 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 World Languages classrooms
and offices adjacent to the L wing complex and the Science building
along Arastradero. The building will include five new classrooms,
and also include a resource room with a patio.
Palo Alto High School New Classroom Building and
Media Arts Building
Budget: $34,220,000 Planned Occupancy: August 2013
This project consists of the addition of two large buildings to the
Palo Alto high school campus. The Math and Social Sciences
classroom building will house twenty four 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 eight new
classrooms for the English department, as well as several lab
spaces for Media Arts, including video production, photography,
editing and journalism.