Proposition MM Implementation

Update

Report to the Board of Education

by Lou Smith, Chief Operating Officer

Facilities ManagementSan Diego City Schools

November 12, 2002

2

($’s in millions)

328.00

265.00

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

MAJOR REPAIR AND REPLACEMENT

NEW SCHOOL CONSTRUCTION

303.00

614.00

LAND

NEW CONSTRUCTION - EXISTING SCHOOLS

Prop. MM Funding Distribution

3

(cumulative actuals through 9/25/02)

Prop. MM Expenditures

New Construction - Existing Schools

Major Repair & Replacement

Land Acquisition

New School Construction

$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

$350,000,000

$400,000,000

New Construction - Existing Schools Major Repair & Replacement Land Acqusition New School Construction

4

Original and Current Prop. MM Plans

0

50

100

150

200

250

300

350

40019

98/1

999

1999

/200

0

2000

/200

1

2001

/200

2

2002

/200

3

2003

/200

4

2004

/200

5

2005

/200

6

2006

/200

7

2007

/200

8

SCHOOL YEAR

$ M

ILL

ION

S

Original Plan Actual Expenditures Current Plan

Original = 10/98 Current = 8/02

5

Cumulative Expenditure Plans

as of 9/25/02 ($’s in millions)

139.5

627.1

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

98-99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09

Cu

mu

lati

ve

Ex

pen

dit

ure

s: P

lan

ned

an

d A

ctu

al

Cumulative Y/E Expenditures 98-99-00 Cumulative PlanCurrent Cumulative Plan Cumulative Expenditures to Date

311.8

365.3

6

What We Did in 2001

What We’re Doing Now

Where We’re Going in 2003

More than 58 sites had major repairs and upgrades

Working year-round on major repairs/upgrades at nearly 80 sites

Major repairs and upgrades begin at 60 more sites

More than $154M were awarded in construction contracts

Nearly $189M in construction contracts will be awarded by end of 2002

More than $212M will be awarded in construction contracts

More than $33M in trade-specific projects at 150 sites

932 trade-specific projects at 176 sites representing more than $37M

396 trade-specific projects at 132 sites representing nearly $18M

Prop. MM Progress

7

What We’re Doing Now

Program management costs at 6.8% (industry average is 8-10%)

Standardized costs and budgets for furniture and equipment nearly complete

New schools New facilities at existing schools

Acquiring land for new schools Brooklyn/Kimbrough area Cherokee Point Elementary School Herbert Ibarra Elementary School Scripps Ranch Middle School Lincoln High School (expansion & rebuilding)

Demolishing structures for new Cherokee Point Elementary School and new Brooklyn-Kimbrough area elementary school site

Planning physical consolidation of Facilities Management

8

Outreach

Approximately 97% of Proposition MM contracts went to San Diego firms

SBE and EBE outreach (as of June 2002) Approximately 41.6% of total

construction dollars went to EBE firms

Nearly 19.6% of total construction dollars went to DBE/WBE/DVBE firms

9

Process Improvements

Formalized monthly program management reporting cycle implemented September 2002

Facilities Assessment Contract Approved February 2002 Completed by February 2003

To date, the average change order rate is 4.35% for 2002 projects

Evaluating open contracts with service providers (fees and services)

10

Innovations

Teaming with the City and community groups San Diego Model School

Joint Powers Authority Memorandum of Understanding for Joint Use

Implementing design/build project delivery method Partnering with Division of State Architect

Dramatic increase in DSA approval time Peaked at 42 weeks in March/April 2002

Five Partnering sessions since February 2002 Marked decrease in approval time, 11 weeks in

August/September 2002 Lincoln-Gompers Redevelopment Committee

11

Accomplishments

Regional Golden Watchdog Award Efficient use of taxpayer dollars

American Planning Association Award First place for “Focused Issue Planning”

National press coverage American School & University Magazine

Fourth anniversary of Prop. MM Four new Prop. MM libraries opened

12

More than $365.3 million expended since the beginning of the program through September 2002

24.2% of Prop. MM funds Averaging $1 million a day in construction work-in-place

Completed FEIR for Edison/Hamilton/Parks Elementary School

Completed relocation plans Brooklyn/Kimbrough area elementary school Cherokee Point Elementary School Herbert Ibarra Elementary School

Total Program Cost Forecast Model Second quarterly forecast complete

What We’ve Done Since the Last Update

13

Program Costs

Third quarter 2002 Total Indicated Cost Model update nearly complete

Continued significant upward cost pressure on new school land and construction

14

T.I.C.–Forecast Summary (as of third

quarter 2002)

1.51

1.76

1.66 1.66

1.43

1.37 1.38

1.05

1.15

1.25

1.35

1.45

1.55

1.65

1.75

1.85

1.95

BIL

LIO

NS

($

)

Total Program Budget Reasonable High Forecast Reasonable Low Forecast

(Prelim)

(Prelim)

15

-80.0 -30.0 20.0 70.0 120.0 170.0 220.0

MILLIONS ($)

Site Discretionary FundsMajor Additions

Add'l Bldg SpaceWater to Elem Clrms

Replace PortablesLunch Court Shelters

New/Upgrade Sci ClrmsBuild/Expand Libraries

TechnologySingle Session Kinder

New SchoolsFuture MRR

Portable CertificationPlayground Equip

Climate ControlADA UpgradesBacklog MRR

Reasonable Low Forecast Reasonable High Forecast

UNDER BUDGET OVER BUDGET

Key: Arrow s reflect change from prior TIC. Up arrow = cost grow th

Preliminary

T.I.C.—Program Element Variances

16

T.I.C.—New-School Forecast Summary

0.51

0.712

0.6120.611

0.550

0.5000.500

0.25

0.35

0.45

0.55

0.65

0.75

0.85

BIL

LIO

NS

($

)

Total Program Budget Reasonable High Forecast Reasonable Low Forecast

(Prelim)

(Prelim)

17

New-School Costs--Original Program

Land acquisition $18 million(9 acres x $2M per acre)

Construction costs $10 million

Non-construction costs $2 million

Total $30 million

ORIGINAL COST ESTIMATES

18

Program Cost and Scope Pressures

Land acquisition Changes in ADA specifications Scope creep Construction costs

19

Escalating Land Costs

Year School $ Per Acre

1996 E.B. Scripps $.5 million

2001 Cherokee Point$2.5

million

2002(pending)

Adams/Franklin$3.7

million

20

New-School Cost Pressure

Options/alternatives Scope Cost Additional Resources

Cost management action plan District staff developing

options/alternatives Working with stakeholders and ICOC to

form possible scenarios Formulating a plan to present to ICOC and

Board of Education

21

Short-term Goals

Develop new school cost management action plan

Begin demolition for Herbert Ibarra Elementary School

Designate final new school Complete FEIRs and begin acquiring

land for seven new schools (eight w/Adams/Franklin which is going to the Board in December 2002)

22

Challenges New schools cost pressure Control “scope creep” to ensure completion of all program requirements Environmental requirements

Removal actions may be required at two sites Pre-acquisition Preliminary Endangerment Assessments needed at two sites Post-demolition PEA’s needed at a majority of sites

Occasional “unwilling sellers” requiring

eminent domain condemnation proceedings Continued funding of district’s

Major Repair & Replacement Program

23

Last Proposition MM School