accounting for facilities 201 sara slater, long beach unified … · 2017. 3. 21. · roofing adams...

The views and opinions expressed in this presentation are those of the authors and do notnecessarily reflect those of CASBO.

Accounting for Facilities 201

Sara Slater, Long Beach UnifiedLettie Boggs, Colbi Technologies, Inc.

How do I pull all of this into

a plan of

ACTION ?

2017 CASBO ANNUAL CONFERENCE & CALIFORNIA SCHOOL BUSINESS EXPO

Master PlanSite Level Planning

Needs Assessment SFPEqualization Maintenance Records LCFF Goal

Bond LanguageADA Superintendent List State

Funding Eligibility

Nexus Requirements DEV FeesCabinet Demands Equal Access

Facilities Inventory CEQA

Do some thinking!PROMISES MADE

Did your bond language make promises to your voters?

Did your District make promises to the sites?

To Parents?

CURRICULAR/PROGRAM CHANGES

Which sites make the maintenance “horror” list?

What roofs leak? Termites? Building failures?

Where are the DM age outs most prominent?

Where are we spending the most time for the least benefit?


MOST CRITICAL M&O NEEDS

Are there sites that need to change program delivery

◦ Grade level changes

◦ Program changes (ex: CTE)

◦ Site Reconfigurations

◦ Parking/Drop off redo

This may have been done in your Master Plan

Graph the overlaps


What are the Quick start/Quick visibility projects?

Which Schools show up the most?

Are any of them critical to the point of must do first?

What patterns emerge?

You can then move from this to some timeframes

A B CFranklinWashington Washington

JeffersonMadison Madison Madison

Adams

GlennMcAuliffe McAulifeShepard

South High South HighNorth High

Put the projects into timeframes


What order makes sense?

How much work can your team do at once? Pacing

Consider what makes a smart project

16/17 17/18 18/19 19/20 20/21HVAC Shepard Franklin Glenn South WashingtonParking Shepard South Jefferson Madison McAuliffeRoofing Adams McAuliffe North WashingtonMod Madison Madison Madison

16/17 17/18 18/19 19/20 20/21AdamsNorthMadison Madison Madison Madison

Franklin FranklinWashington Washington

Jefferson Jefferson

Multiple site disruptions

Not manageable workload

Max work for Purch/Accounting

Poor bid arrangement (See 101)

VS.

Do/or revise the budgetMake sure each project has a budget allocation

Verify that each project has a contingency

Build a program contingency as well

Determine how you will handle project inflation

Then review the schedule again in a cost loaded format, annually, not just by project

Adjust again to optimize the balance between pacing and dollars


Political Realities


Conversation scope depends on your politics, but should always include the Supt!

◦ Discuss your DRAFT with the following as appropriate:

Superintendent Cabinet

M&O Director Administrative/Principal Counsel

Curriculum Office Governing Board

Political Realities


Review and Revise until its agreed upon

Then take it to the board for approval

This board item can include Authorization to proceed with the project planningAdoption of the Project Budgets

Facilities Inventory

Needs Assessment

Master Plan

Educational Specifications (Ed Specs)

District Standards

Request for Qualification Pools

Contracts Developed for Architects and Contractors

Have you already got these things in place?

If not then they are priority work!


Building Blocks of the Plan


Facilities Inventory◦ Lists all of the building components that require ongoing maintenance,

their life cycle, and cost of replacement estimate

Needs Assessment◦ Prioritizes the components of the Inventory that are due or nearly due

with an analysis of replacement cost

Master Plan◦ Describes projects and timelines to implement solutions to the Needs

Assessment

Required!


Informs the design community about the district standards and requirements

Site requirementsBuilding design conceptsProximity requirements

Special district nuances

District Standards


Design criteria unique to the district

Sole source items (board approved)Roofing, Energy Mgmt, and HVAC

Maintenance requirements for standardizationPaint Color, Flooring types

RFQ and RFP


Request for Qualification◦ Where a bid is not required, RFQ can be used to solicit qualified vendors for a

specific type of work◦ A pool can be created of prescreened vendors for ease of selection and contracting

later◦ For Professional Services, typically architects, IOR’s, geo and environmental, survey

work, etc. ◦ Use whenever you will need more than one firm to supply your need or when

price is not the criteria.

Request for Proposals◦ Where a bid is not required, RFP can be used to solicit proposals for cost of work◦ Can be from a pool or stand alone◦ Best practice is three quotes minimum

Contracts


If you are gearing up for a bond program, this is a good time to review your contracts

◦ Incorporate lessons learned◦ Get your legal firm’s advice on any appropriate changes/updates◦ Standardize so that each of your projects is working from the same

contract (minor exceptions)

This promotes easier management of the projects when there is a lot going on!

Architects


Must be competitively selected (if using state funds) but not price based

Can be hired as the program architect, or by project

A significant team member

Look for a good match to complement the districtSmall District Staff with a Comprehensive FirmVery specific direction with willingness to listen and incorporate the district direction

Determine construction delivery method


Design – Bid – Build (DBB)

Lease- Lease Back (LLB)

Multi-Prime with Construction Management

oCM can be used with any method as augment of staff (and additional cost)oDifferent methods work better for different project types

Prequalification of bidders is now required by the Dept of Industrial Relations for all projects >$1m, and for districts with a student population over 2500 (PCC 201111.6)

Contractors must register with DIR if they hold a GC license (A or B) or any MEP license

Many districts require all licenses to prequalify

We are getting pressure to use bond funds

(which are insufficient anyway)

to fund deferred maintenance.

Is this legal? Is it smart?

What are the long-term consequences?


Bond Money and Def Maintenance Deferred Maintenance was designed as a sinking fund

It is no longer a state program, but has been rolled into the LCFF

The quality of buildings needs to be part of the site level conversations

This leaves many districts looking to bond funds to cover what used to be Deferred Maintenance costs.

It looks like you have a lot of money when you pass that new bond. But if you read the Needs Assessment in most districts – it exceeds the bond authorization by quite a bit.


So what is the challenge?


Let’s say the maintenance items the bond is asked to fund last as indicated in the chart.

The funding takes 30 years to pay off.And costs you twice as much by time you pay it off.X 2 – at least

An ever increasing cycle of poverty!

And some of the items need replacing before you pay off the first round of funding.

So is it never appropriate?We are not going to speak to the legality – that is for your counsel…but

Doing DM components as part of any Modernization takes it off the list and should reduce regular maintenance costs as well.

Picking up 30 year life items may cost twice as much, but it can boost a program out of routinely underfunded situation.


X 2 – at least

What are the real risks?

The funding requirement is now moved to your bond program and is not a component of LCFF

You risk creating a false level of funding available for ongoing costs like raises

The bond money will run out, or the voter willingness to give it to you will end

- and you now have a self inflicted fiscal cliff


X 2 – at least

We have just passed a second bond.

Do I manage them separately?

How do I do two Oversight Committees?


Two concurrent bonds No need to have two oversight committees

Though each bond will need to account for expenditures Make sure to revise your committee bylaws

Each separately elected bond must have its own fund or sub-fund Within one bond, issuances do not need separate fund numbers, assuming first in/fist out


Please feel free to contact us:SARA SLATER

Long Beach Unified School District

[email protected]

562-997-7550

LETTIE BOGGS

Colbi Technologies, Inc.

[email protected]

714-505-9544


mailto:[email protected]

mailto:[email protected]

accounting for facilities 201 sara slater, long beach unified … · 2017. 3. 21. · roofing adams...

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