February 2007

Meeting Schedule: Leslie Robinette

Schedule for future meetings: 3rd Wednesdays — quarterly, with some additional as needed.
Tentative date for next meeting: March 21
Future meetings will run from 6:30 to 9 p.m. in the district board room.

If you have questions or hear questions raised by others, please e-mail them Leslie Robinette, who will track down the information you need. This will help us build an agenda for future meetings.

With your permission, contact information for each committee member will be posted on the school district web site so the public can contact you directly with questions or concerns.

Purpose of the Citizens Oversight Committee: Ron Naso

1. To be an advisory panel to district staff.
2. To be an advisory committee to the board.
3. To help the district clarify as-yet undefined specifics for some bond sites.
4. Report to the board on issues of concern.
5. To serve as a third set of eyes, making sure promises to voters are kept.
6. To diffuse public distrust.
7. This group serves as a sounding board for the staff and the board.
8. This group serves as a link to the public, relaying the questions they hear.

Question: Will there be a formal trade-off process for changes in the plan?

Staff Roles: Ron Naso

Ron Naso, Superintendent
Responsible for making final recommendations to the School Board. Lead presenter to the Citizens Oversight Committee.

Joe Krumm, Director of Community & Government Relations
Responsible for providing bond information to the community and the media, and organizing events such as groundbreakings and openings.

Leslie Robinette, Communication Specialist
Responsible for working with staff to coordinate the agenda, minutes, and communication with the Citizens Oversight Committee. A contact point for COC questions.

Elaine Drakulich, Assistant Superintendent for Administrative Services
Responsible for long-range planning regarding student population and attendance areas.

Ron Stewart, Physical Plant Director
Responsible for bond implementation.

Garry Kryszak, Bond Capital Project Manager
The only staff member who works full time on the bond, responsible for the day to day planning and construction of bond projects, serving as liaison to architects, construction managers, and contractors.

Jim Langstraat, Executive Director for Finance and Operations
Responsible for financial decisions related to bond revenue, expenditures, investments and legal obligations.

Diane Larson, Director of Fiscal Services
Responsible for accounting, expenditures, and accounts payable in relations to bond projects.

Tim Witcher, Director of Business Operations
Responsible for overseeing the purchase of land, and overseeing purchasing procedures for bond projects.

Matt Utterback, Director of Secondary Support Services
Responsible for decisions relating to instructional planning and building specifications, as well as staffing plans for new schools.

Blair Loudat, Director of Technology and Information Services
Responsible for technology planning for new and renovated facilities.

Bond Background: Ron Naso

• $229.6 million bond issue
• Average tax rate $1.20 per thousand (below earlier estimate)
• The largest school bond in the history of Oregon
• This bond will not serve every need we have.

Financial Report: Jim Langstraat

• Issuing the bonds is under way.
  After issuing bonds, we will only be at 20% of the district’s legal debt capacity.
  
  
• On December 7 the School Board approved Seattle Northwest as underwriter through a competitive process. Bond underwriting costs have been lower than expected, and lower than in 1998.
  
  
• The 100-page preliminary official statement is available electronically on request. Joe Krumm will put it on the school district web site.
  
  
• Bond sell date moved to March 6 so as not to compete with City of Portland bonds which will sell for a better rate.
  
  
• Bond proceeds will be available March 14.
  District ratings: A1 from Moody’s and A+ from Standard & Poors.
  While not the best rate, this is respectable enough to receive good interest rates.
  Because our tax base is growing steadily, we may get bumped to a better rating, at least in time.
  
  
• Bonds will be Series A and Series B, but sold at the same time. The interest range will be 4-5%.
  
  
• Proceeds of the bonds will be invested to generate $15-20 million interest, which can be used to supplement bond project costs.
  
  
• This bond will leverage some funding from the state that could provide up to 2 or 2.5% of the cost of new classrooms.
  
  
• Our first objective is to finish the projects we have promised.
  
  
• The second goal is to spend the money wisely, using any excess proceeds to buy back the bonds. This was a promise made to the community.

Planned Projects: Ron Stewart and Garry Kryszak

• The goldenrod list details school by school, with site totals.
  
  
• We plan 6 property purchases.
  
  
• We have planned $9 million in reserve funds.
  
  
• We anticipate 3-5% cost to manage the projects.

Schedule: Ron Stewart and Garry Kryszak

• The implementation plan is based on priority needs.
  Overcrowding is a pressing concern. Construction of major facilities takes the longest.
  
  
• This fall, we begin construction of a replacement school & new middle school at Happy Valley. The new Happy Valley Elementary School is due to open in fall of 2008.
  
  
• Two new middle schools are needed.
  
  
• Two additional elementary schools needed.
  
  
• Between Aug. 2008 & Aug. 2009 we will open two elementaries and a new middle school.
  
  
• In the next two years, we’ll build 4 new elementaries (2 new and 2 replacements), 1 new middle, and start on the 2nd new middle school.
  
  
• The priority this summer is what we can do quickly and immediately to stop degradation.
  
  • Alder Creek field lights
  • Several new boilers
  • Roofing projects
  • Siding
  • Entry problems
  • Window problems
  These bid packages go out in the next 60 days for projects that begin this summer.
  
  
• We have a head start on the two schools in Happy Valley, an elementary school & middle school under one roof)

These are now in final stages of design, with zoning changes needed and site variance requests underway.

We will use the CMGC (Construction Manager/General Contractor) design process in which a general contractor works with the architect in final design phase.

• to save costs
• to expedite construction

Happy Valley Elementary will be ready in the fall of 2008.

The Happy Valley middle school will be ready in the fall of 2009.

Architect assignments for major projects: Ron Steward and Garry Kryszak

• BOORA Architects
  • Happy Valley Elementary and Middle School – replacement and new school
  • New middle school (possible future high school)
• Mahlum Architects
  • Ardenwald Elementary -- replacement
  • Milwaukie High School -- major remodel
  • Rowe Middle School -- addition and major remodel
• Dull Olson Weekes Architects
  • Bilquist Elementary -- major remodel
  • Putnam High – major remodel
  • New elementary school
• Architects Barrentine, Bates and Lee
  • Linwood Elementary – addition
  • New elementary schoo

The Ardenwald project kickoff with Mahlum architects will take place next week.

The replacement school must be designed to be built while the old building is in operation.

Much of the preliminary work with architects is now underway. (Walk throughs, planning, etc.)

The big project push (many projects) will be in the summer of 2008. 

Quality is paramount: we have revised operational specifications that state our preferences for products, consistency, terminology, design specs, and quality.

The architects are highly experienced and we have worked with many of them before.

We will do $81 million in 2008 and $71 million in 2009. This is the most aggressive bond implementation plan in Oregon history.

Good planning is as much work as good construction. Though you may not see a lot happening right now, there is a lot going on behind the scenes.

Question: what accountability measures do we have for construction groups?
Answser: We have set contract incentives and disincentives to meet given time lines. e.g. the turf project at CHS has a daily penalty for each day the project is over deadline.

Question: Why is it necessary to hire so many architects?
Answer: The difference between the sites and the communities is one reason. Ardenwald wants to maintain the historic feel of the structure. Due to the number of bonds passed statewide, the architects are in high demand.

We do try to have a standardized approach to our schools. Our elementary schools will look very much like those at Spring Mountain and Oregon Trail.

We have hired 3 project management firms: Milstead & Associates, J.J. Henry, and Cornerstone. Project management costs are built into the reserve fund.

Question: Are there performance benchmarks for the project managers?
Answer: They are consultants. Not much accountability that can be tracked or built into the contract.

Question: Will there be any recovery of capital in the teardown of an old school?
Answer: Some things can be recycled. The Largest demolitions will occur at Ardenwald and Happy Valley. We can work demolition costs down as low as possible. Material retrieval is challenging from a cost perspective. Some recycling will be possible.

Land Acquisition: Tim Witcher

Realtor Tom Dechenne of the Norris Beggs & Simpson commercial real estate firm has been working with the district since spring 2006.

We have been trying to position ourselves to negotiate for real estate since before the bond was approved. Our focus is on the east side of the district, within the Urban Growth boundary.

We have been searching for sites large enough for schools. Who is interested in selling?

Uncertainty arises because the zoning is not set and therefore the prices are not set.

We have looked at a large number of properties with the district’s location goals in mind. 

Goal: 10 acres for a grade school, 30-40 acres for a middle school (eventual high school).
We must find 4 elementary sites and 1 new middle school site.

Sites were reviewed by members of the Site Committee. General areas were targeted. Some properties have been weeded out due to physical constraints such as wetlands, creeks, etc.

Appraisals have been ordered for the district to purchase property at fair market value. These should be ready in a week or two.

We are prepared to make offers, though we are still narrowing down our choices. No offers have been made yet.

Much of the property was originally zoned as farmland and has not yet been re-zoned.

Between 162nd & 172nd is where we need sites for two new elementary schools and the new middle school that will eventually become a high school.

The district is also seeking pieces of property for future schools east of 172nd. The school district extends to 180th Ave. Because of planned growth in Damascus (part of which lies in our district), we need to look at sites for future schools on the far eastern edge of the district.

Question: What about the Altamont property?
Answer: The Altamont property is 5 acres adjacent to a 6 acre park. The district is still trying to get a legal opinion on the use of this property, which was received due to a greenspace requirement of developers. If we don’t put a school on that site, do we have the ability to sell the property, which has significant value? Demographically, there is no reason to put a grade school there. As Altamont has been built, Mt. Scott’s enrollment has decreased.

Question: What about the property next to Rowe Middle School?
Answer: A house east of Rowe has been purchased in order to add space for parking at the school, enabling us to complete the other
projects planned for that school.

Athletic Facilities: Ron Naso

There is $3 million in the bond for athletic facilities. We are trying to parlay the 3 million in athletic funding into 4.2 million through partnerships.

All-weather surfaces for our 3 high schools, will be accomplished in partnership with other agencies or community groups. Parks & Recreation is discussing this with us.

Ron Naso is confident that within 2 years we will have all-weather surfaces at all 3 high schools. CHS has the stadium and lights in place, so it is ready to move forward now. The community is eager to move forward with this.

City of HV has an agreement with Parks and Recreation to contribute a certain amount of facilities within Happy Valley. This specifically requires an all-weather surface within the City of Happy Valley. We are discussing whether it would make better sense from a land and economic standpoint to merge their field with our field, rather than creating two fields. However, our high school does not lie within the boundaries of Happy Valley. We have requested that Happy Valley annex the high school site through “cherry stemming.” This has been controversial in parts of the community. Whether or not this happens, we have indications that there may still be a way to make this project work.

We have scheduled installation of the all-weather surface at CHS this summer.

At the other two high school fields, we are planning a number of other facilities improvements, seeking parity between schools.

• MHS: field lights, storage facility, 8-lane track.
• PHS: major stadium repair and renovation, lighting, track, softball field upgrade

Both of these high schools will also receive an all weather surface.

Parks and Recreation has agreed to be a partner in both Milwaukie and Putnam.

The District will provide $700,000 per school at both PHS and MHS. The target date for installation is the summer of 2008. Our commitment is to have parity at each high school.

The new middle school site will have a track, but not a stadium until a later bond is passed to transform it into a high school.

We are working closely with Parks & Recreation to find adjacent property parcels so we can make efficient use of greenspace. We are trying to find ways that schools can be built on smaller plots of land.

Closing Remarks:

Implementing the bond will be a messy process. Things will not always go as planned.

Commitment for future meetings: 3rd Wednesdays as scheduled Next meeting is tentatively set for March 21

Meetings will run from 6:30 to 9 p.m.