measure bb & bond oversight committee
DESCRIPTION
Measure BB & Bond Oversight Committee. Bond Oversight Committee April 30, 2012. Meeting Agenda. Measure BB Background & Initial Budget How Bond Financing Works Governance of Bond Oversight Committee (BOC) Creation of BOC Responsibilities of BOC Highlight of Accomplishments To Date - PowerPoint PPT PresentationTRANSCRIPT
Measure BBMeasure BB& Bond & Bond
Oversight Oversight CommitteeCommittee
Bond Oversight CommitteeApril 30, 2012
1. Measure BB Background & Initial Budget2. How Bond Financing Works3. Governance of Bond Oversight Committee (BOC)4. Creation of BOC5. Responsibilities of BOC6. Highlight of Accomplishments To Date7. Lease / Leaseback Transactions8. Initial Role of Bernards9. Current Role of Bernards10.Bernards Change: Impact on BOC
Meeting AgendaMeeting Agenda
April 30, 2012Measure BB Bond Oversight Committee
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• MBUSD Resolution No. 2008-12• Election authorizing issuance of general obligation
bonds held November 2, 2008• Passed by the voting residents of Manhattan Beach• “shall MBUSD rehabilitate 58-year old Mira Costa
High School…by issuing $67,480,000 in bonds at legal rates” (originally built in 1950)
• “..including replacing deteriorated classrooms with new classrooms and science labs, upgrading technology, replacing deteriorated plumbing / restrooms, and improving safety/energy-efficiency.”
Measure BB Measure BB BackgroundBackground
April 30, 2012Measure BB Bond Oversight Committee
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• “Independent oversight”• “Mandatory audits”• “No money for administrator salaries”• “All funds staying local to improve Manhattan
Beach schools.:
Measure BB Measure BB BackgroundBackground
April 30, 2012Measure BB Bond Oversight Committee
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1. New math/science instructional building (Bldg. A)2. New academic instructional building (Bldg B)3. Technology Upgrades4. Career/technical skills center5. Arts instructional building6. Safety7. Student services8. High school maintenance building9. Pay or prepay certain existing long-term debt (See more details on handout)
Measure BB & Initial Measure BB & Initial Project ListProject List
April 30, 2012Measure BB Bond Oversight Committee
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Phase I – Math & Science $24,360,000
Phase II – Finger & Admin Buildings
13,983,000
Phase III – Multi-purpose, Etc. 9,420,000
Architect, CM, Attorney 7,012,000
Sub-total Construction 54,775,000
Debt Payments 12,705,000
Total Measure BB $67,480,000
Measure BB & Initial Measure BB & Initial BudgetBudget
April 30, 2012Measure BB Bond Oversight Committee
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1. Organization determines amount of financing need
2. Election held for community agreement3. Underwriters relay to the county the amount
needed to pay principal and interest (typically once per year)
4. County, based on assessed values, determines incremental property tax
5. Example, incremental tax of $35 per $100,000 of assessed value
How Bond Financing How Bond Financing WorksWorks
April 30, 2012Measure BB Bond Oversight Committee
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California Legislation•California Proposition 39 includes various accountability requirements, including audits•California Assembly Bill 1908 (“AB 1908”) includes additional requirements related to school district general obligation bond elections•AB 1908 established appointment of members to a Citizens Oversight Committee
Governance of BOCGovernance of BOC
April 30, 2012Measure BB Bond Oversight Committee
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MBUSD School District•MBUSD also established Bylaws for the Measure BB Bond Oversight Committee•Purpose: Funds used in accordance with the intention of voters•Goals: (1) Validate spending (2) Progress reports•Mission: Independently review and authenticate planning and execution of Measure BB, and inform the public and Board regarding spending to ensure compliance with invention of voters and state law
Governance of BOCGovernance of BOC
April 30, 2012Measure BB Bond Oversight Committee
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• Committee shall consist of at least 7 members (but may be larger)
• Serve for a term of two years (MBUSD exception made for a one year term)
• Serve for no more than two consecutive terms
BOC RequirementsBOC Requirements
April 30, 2012Measure BB Bond Oversight Committee
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At least one member from each of the following:1.Active in business organization representing business community within the school district2.Active in senior citizen’s organization3.Active in a bona fide taxpayer association4.Parent or guardian of child enrolled in school district5.Both a parent (or guardian) of a child in the district and active in a parent-teacher organization
BOC RequirementsBOC Requirements
April 30, 2012Measure BB Bond Oversight Committee
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1. Actively review and report on the proper expenditure of the taxpayers’ money for school construction
2. Advise the public as to whether the school district is in compliance with the requirements of Article XIIIA, Section 1(b)(3) of the California Constitution
3. Advisory role4. Proposition 39 requires BOC to issue a report
annually5. MBUSD By-Laws, however, require BOC to issue a
report quarterly
Responsibilities of Responsibilities of BOCBOC
April 30, 2012Measure BB Bond Oversight Committee
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2008•Measure BB passed in November•One BOC meeting held
2009•Focus on planning by architects Harley Ellis Devereaux•Several meetings held with teachers, students and community for schematic design•Discussed various green initiatives•Four BOC meetings held
Highlight of Key Highlight of Key Measure BB EventsMeasure BB Events
April 30, 2012Measure BB Bond Oversight Committee
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2010•Bernards retained as construction services management (April)•Schematic design approved by BOD (May)•Decision to remodel, not demolish, existing “M&O” building (Summer)•Bonds issued totaling $9.738,877 (July)•BOC review of architect and other contracts•Construction documents to DSA (November)•First audit report issued (December)•Seven BOC meetings held
Highlight of Key Highlight of Key Measure BB EventsMeasure BB Events
April 30, 2012Measure BB Bond Oversight Committee
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2011•Lease / Leaseback alternative explored (Spring)•Budget revisions made by Bernards based on design changes (March)•BOC review of Lease / Leaseback contract•Math / Science building construction began (November)•Five BOC meetings held
Highlight of Key Highlight of Key Measure BB EventsMeasure BB Events
April 30, 2012Measure BB Bond Oversight Committee
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2012•Construction continues on Math & Science Building•Both audit reports (financial and performance) finalized and issued on 1/30/12•Third meeting to be held today.
Highlight of Key Highlight of Key Measure BB EventsMeasure BB Events
April 30, 2012Measure BB Bond Oversight Committee
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Lease Leaseback:Lease Leaseback:In SummaryIn Summary
• The Builder is selected by qualifications, not low bid.
• Builder provides a Guaranteed Maximum Price.• Traditionally, included a significant financing
component.• Possible legal challenges (but none in recent
years, and none ever upheld.)
History of LLBHistory of LLB• LLB is authorized under Ed.Code 17406.
o A long-term, revenue-based financing vehicle for projects.
• Growing problems with claims and cost overruns on design-bid-build projects led districts to look for alternatives to the low bid model.
• LLB widely used in recent years due to qualifications-based selection rather than low bid.
• Legal and legislative challenges to LLB have failed.
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Structure Basically Structure Basically
Is The SameIs The Same
=Owner Team
OwnerConstructionManager (Opt.)
ArchitectLLB Builder or
D-B-B Contractor
Subcontractors
• Retained by the Board as Construction Manager in April 2010
• Oversee the construction of the entire project, working closely with the Architect and all contractors
• Prepare the detailed project budget by phase• Monitor and report on project spending• Recommend changes to the budget as necessary• Responsible for Quality Assurance• Limited Financial Responsibility
Initial Role of Initial Role of BernardsBernards
April 29, 2012Measure BB Bond Oversight Committee
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• Lease / Leaseback agreement signed with Bernards on Nov. 22, 2011
• Accountable for all costs of the project, not to exceed $48,800,193 (Guaranteed Maximum Price)
• Fulfill role of the General Contractor• Agree to all construction plans• No longer Quality Assurance
responsibility(transitioned to Steve Romaine)
Current Role of Current Role of BernardsBernards
April 30, 2012Measure BB Bond Oversight Committee
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• Continue to actively review and report on proper expenditures
• Continue to advise the public regarding the compliance of expenditures
• Relationship with Bernards is a “fixed fee”; day to day expenses less of a concern
• Scope of project likely to transition over time, as it has already (“scope creep”)
Bernards Change: Bernards Change: Impact on BOCImpact on BOC
April 30, 2012Measure BB Bond Oversight Committee
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Questions?April 30, 2012
Measure BB Bond Oversight Committee
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