February 2, 2017 1 AGENDA Welcome, Introductions, Meeting - - PowerPoint PPT Presentation

February 2, 2017

Bond Oversight Committee 2014 Bond program

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AGENDA

• Welcome, Introductions, Meeting Schedule – Stewart Jacobson, Chair
• Introduction and Bond Status Update – Ron Holleyhead
• Budget Indicator – Zandra Becerra
• Projected Program Budget – Oscar Saenz
• Program Status – Oscar Saenz
• Project Status – Kevin Hitchcock
• Donald Leonetti Elementary School (ES 48)
• Ronald Thornton Middle School (MS 15)
• James C. Neill Elementary School (ES 49)
• James Patterson Elementary School (ES 50)
• James Reese Career and Technology Education Facility
• Classroom Additions
• Next Steps – Ron Holleyhead
• Update other projects (IT, Security, Transportation) – Long Pham, David Rider, and Mike Brassfield
• Small Business Program – Steve Bassett
• Communication Plan Update – Nancy Porter
• Debt Service Fund Update – Steve Bassett
• Bond 2018 Planning – Steve Bassett & Long Pham
• Open Feedback from BOC Members – Stewart Jacobson

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BUDGET INDICATOR

As of January 10, 2017:

• Total Bond = $484.1M (100%)
• Committed= $259.1M (53.5%)
• Cost To Date= $140.6M (29.0%)

Total Bond: $484.1M

Committed Costs: 53.5% $259.1 M as of 1/10/17 Cost to Date: 29.0% $140.6 M as of 1/10/17

$480M $400M $300M $200M $100M

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PROJECTED PROGRAM BUDGET

Projected Program Budget Phase I Phase II Phase III District Wide Total

Current Commitments / Approved Change Orders $170.4 $3.6 $3.4 $57.9 $235.3 *Estimates / Pending Change Orders $42.9 $51.3 $110.6 $38.6 $243.4 Total Projected Bond Program Cost $213.3 $54.9 $114.0 $96.5 $478.7 2014 Bond Program Budget $484.1 **Projected Program Budget Balance $5.4

*Projected estimate to complete (based on estimates and pending commitments). **As presented to the Board of Trustees on December 2016. Includes program contingency funds. Note : All values are shown in millions.

PROGRAM STATUS Phase I – Approximately 45% Complete

• All campuses have been bid, negotiated, and under construction
• 30 campuses are in the construction phase
• 2 bid packages are in closeout and warranty phase

Phase II – Approximately 5% Complete

• All professional services contracts are executed
• All design activities are complete
• 4 campuses are in the procurement phase
• 26 campuses are in the construction phase

Phase III – Approximately 2% Complete

• 3 professional services contracts are executed
• 4 professional services contracts are in the process

Note – Percent complete is based on cost to date 5

NEW CONSTRUCTION Donald Leonetti Elementary School Elementary No. 48

IBI Group - Architect Satterfield & Pontikes - General Contractor

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NEW CONSTRUCTION

Level 2 progress Structure progress

Elementary No. 48

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NEW CONSTRUCTION Ronald Thornton Middle School Middle School No. 15

IBI Group - Architect Satterfield & Pontikes - General Contractor

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NEW CONSTRUCTION

Structural Slab Progress Structure Progress

Middle School No. 15

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James C. Neill Elementary School Elementary No. 49

PBK Architects - Architect Drymalla Construction - General Contractor

NEW CONSTRUCTION

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NEW CONSTRUCTION

Progress Progress

Elementary No. 49

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NEW CONSTRUCTION James Patterson Elementary School Elementary No. 50

Huckabee - Architect Cadence McShane - General Contractor

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NEW CONSTRUCTION

Front Elevation Structure progress

Elementary No. 50

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NEW CONSTRUCTION James Reese Career and Technical Education Facility

Stantec Architects - Architect TBD - General Contractor

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Classroom Additions Cornerstone / Schiff Elementary

RWS Architects Incorporated Teal Construction Company

Holley / Scanlan Oaks Elementary

Cre8 Architects Teal Construction Company

Oyster Creek / Sienna Crossing Elementary

VLK Architects Bass Construction Co., Inc.

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ADDITIONS

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PROGRESS PHOTOS

NEXT STEPS

Phase I

• Complete construction phase
• Continue close-out and warranty phase

Phase II

• Complete execution of General Contractor contract
• Continue construction phase

Phase III

• Complete Scope to Budget phase
• Continue design development and construction document phase

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TECHNOLOGY & SECURITY CAMERA UPDATE

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1. All Middle Schools wireless and cameras are installed. 2. There are 3 phases of this project. a. Phase 1 – 20 schools b. Phase 2 – 15 schools c. Phase 3 – 10 schools 3. ES campus cabling is underway. 4. ES campus power cabling is completed. 5. Cabling team (ATEC) estimated to complete 02/15/17. Cabling team (MCA) estimated to complete 05/15/2017. 6. 5 Tier 3 campuses have been moved to Phase 1 from Phase 3 as of Nov 15,2016. (Hunters Glen, E.A. Jones, Lantern Lane, Mission West, Mission Bend) 7. Auditorium - Estimated to complete Feb 1, 2017. (95% completed) 8. Bus Ramp Wireless a. WiFi install at HS / MS (5% complete) b. Estimated completion: April 2017 9. Security camera challenges a. System intermittently drops recording at peak time. b. Servers can only handle about 150 cameras at a time. c. Vendor, IT, and PD are working to resolve i. Vendor rewrote camera management system ii. IT and PD make necessary adjustments on storage and cameras.

TECHNOLOGY & SECURITY CAMERA UPDATE

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10. Fiber Wide Area Network

• a. PS Lightwave is installing fibers
• b. Project is on track. Estimated to be completed Sept 2017.
• 11. Core sites

a. Two core sites for the network have been identified, including offsite disaster recovery center b. Completion date for preparation of the core sites is May 1, 2017 c. SPED 507 – Cameras were deployed to 25 cameras at 10 campuses. 12. Data Center renovation is completed.

INSTRUCTIONAL TECHNOLOGY UPDATE

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931 - Infrastructure Cameras 990 - DSTW - WAN Cabling/Fiber 991 - DSTW - Wireless Cabling/Fiber 992 - DSTW - WAN Design Contingency 993 - DSTW Wireless Contingency 994 - DSTW - WAN Network Electronics 995 - DSTW - Wireless Electronics Total

% of Budget 98.9% 110.2% 84.5% 5.8% 52.5% 41.4% 78.3% 69.0% Total Exp & Enc $ 2,967,235 $ 3,886,301 $ 3,342,287 $ 74,251 $ 860,940 $ 5,164,082 $ 12,968,916 $ 29,264,012 Initial Budget $ 3,000,000 $ 3,528,000 $ 3,955,799 $ 1,280,124 $ 1,640,902 $ 12,473,570 $ 16,555,452 $ 42,433,847

TECHNOLOGY & SECURITY CAMERA UPDATE

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TECHNOLOGY & SECURITY CAMERA UPDATE

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TECHNOLOGY & SECURITY CAMERA UPDATE

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TRANSPORTATION UPDATE

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Original 2014 Bond Plan called for purchase of 150 diesel buses 150 school buses were purchased with 2014 Bonds

• Regular Route Buses (75 units), the last 20 regular buses will be

delivered by the end of February 2017

• Compressed Natural Gas Buses (30 units) due in by May 2017
• Special Needs Buses (45 units), the last 20 special needs buses will

be delivered by mid February 2017 All 150 buses purchased are equipped with items not in the current fleet:

• Air Conditioning
• Increased from 12% of routed fleet to 87% of all routes
• Video Cameras
• Increased from 44% to 100% of all routes
• GPS increased from 0% to 100% of all buses including 33 white fleet

vehicles in the Transportation Department

• The average age of our fleet has been reduced from 11 years old to

6 years old

SMALL BUSINESS INITIATIVE

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SMALL BUSINESS INITIATIVE REPORT

Fort Bend ISD Small Business Enterprise Program receives the following Awards:

• Award of Merit for Commitment to the

Minority Business Community from the Greater Houston Procurement Forum - December 2016

• “Game Changer” Recognition from L. Renee &

Associates and the Houston Urban League – October 2016 Fort Bend ISD Small Business Enterprise program:

• Multiple events held
• n-site to educate vendors
• n the process
• Participation in various

small business & Chamber events throughout the metro area

• Out of $180.9M in

approved construction budgets, $41.9M are for SBE contractors (23%)

• Board goal is 25%

COMMUNICATIONS PLAN UPDATE

Jan 30, 2016- Jan 30, 2017

7,595 page views

Monthly Project Updates on Bond Webpage The website was made easier to navigate with dropdown menus

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COMMUNICATIONS PLAN UPDATE

In Progress: FBISD Magazine BOND article to go to 120,000 homes

Elementary Parent Meetings

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Summary Statistics Principal Composition

Total Outstanding Principal 835,985,328 $ Total Fixed Rate 754,345,328 90.23% Total Variable Rate 81,640,000 9.77% Total Interest Payments 420,248,324 Callable Principal (%) 75.57% Percent of Principal Retired w/in 5 years 25.61% w/in 10 years 56.46% w/in 15 years 85.56% w/in 20 years 97.49% Noncallable 24.43% w/in 25 years 100.00% Callable & Advance Refundable 62.00% Final Maturity 8/1/2040 Callable & Partially Advance Refundable 7.96% Callable & Non-Advance Refundable 5.61%

Underlying Ratings Voted Authorization

Fitch AA+ Amount Issued Balance S&P AA+ 428,000,000 $ 380,000,000 $ 48,000,000 $ 484,000,000 $ 85,000,000 $ 399,000,000 $ 912,000,000 $ 465,000,000 $ 447,000,000 $ 11/6/2007 11/4/2014 Date 24.43% 62.00% 7.96% 5.61%

Summary Statistics of Outstanding Debt

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Summary of Outstanding Debt

$0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 $80,000,000 $90,000,000 $100,000,000 Aggregate Debt Service

Principal Interest

Period Ending 8/31

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Summary of Outstanding Debt

Callable Call Call Bond Issue Principal Date Feature Unlimited Tax School Building & Refunding Bonds, Series 2008 159,620,000 $ 8/15/2018 100.000% Adv Refundable Unlimited Tax Refunding Bonds, Series 2009 28,390,000 2/15/2019 0.000% Adv Refundable Unlimited Tax School Building Bonds, Series 2009 166,730,000 8/15/2019 100.000% Adv Refundable Unlimited Tax School Building & Refunding Bonds, Series 2010 66,580,000 8/15/2020 80.032% Adv Refundable Unlimited Tax Refunding Bonds, Series 2012 46,870,000 8/15/2022 0.000% Adv Refundable Unlimited Tax Refunding Bonds, Series 2014 46,145,000 8/15/2024 100.000% Adv Refundable Variable Rate Unlimited Tax School Building Bonds, Series 2015A 33,155,000 AID 100.000% Adv Refundable Variable Rate Unlimited Tax School Building Bonds, Series 2015B 48,485,000 AID 100.000% Adv Refundable Unlimited Tax Refunding Bonds, Series 2016A 35,755,000 8/15/2024 100.000% Adv Refundable

The following table shows the District’s callable bonds as of August 31, 2016:

• The District’s Unlimited Tax School Building and Refunding Bonds, Series 2008 are

callable on August 15, 2018

• As we get closer to the August 15, 2018 call date, the refunding becomes more

efficient as we limit the length of the escrow fund, which will mitigate negative arbitrage

• We will continue to monitor this and any other refinancing opportunity for the

District

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Commercial Paper Takeout

• The District established a Commercial Paper Program on November 3, 2016
• Currently, the District has $66 million outstanding in commercial paper; which when

combined with the District’s outstanding variable rate bonds, represents approximately 16.38% of total debt outstanding

• The District’s currently outstanding commercial paper notes are at rates ranging from

0.78% to 1.69%

• To date, the District has saved approximately $1.345 million in interest expense
• The District anticipates additional issuances of commercial paper notes in the next three

months; therefore, the District will need to issue refunding bonds in order to restore the commercial paper program’s capacity

Fixed Rate Interest Period Total Interest Issue - Total Expense Ending Series A Series B Expense Interest Expense Difference 3/9/2017 100,783 $ 2,744 $ 103,527 $ 1,448,265 $ (1,344,738) $ Interest Expense Comparison Commercial Paper Notes

Green Bonds – A First for Texas School Districts

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• Fixed income security whose proceeds finance environmentally friendly projects.
• A global concept which saw $93.4 billion in issuance in 2016, a 120% increase from

2015.

• Issued by banks, corporations, and United States municipalities beginning in 2013.
• Several universities have issued Green Bonds for LEED certified buildings including

the University of Texas, MIT, Columbia University, Indiana University and the University of Cincinnati.

• The goal is to attract more investors to invest in the District’s bonds. Many investors

and institutions want to limit their investments to Green projects.

• More investor interest in FBISD Bonds helps to lower our costs of debt.
• Offering Statement would define green bond project and reporting requirements.

Green Bonds

$147,485,000

Maximum Issuance Allowed

$60,000,000

Refunding/ Remarketing

$99 mil CP Takeout $40.4 mil Series 2015B $1 mil 2015B 8/1/17 Pmt $7 mil 2015B Paydown* $46.8 mil CTE Center** $5 mil CTE Furniture**

New Money

• Variable Rate or Fixed Rate
• Regular or Green Bond
• Taxable or Tax Exempt

* Board approved $7 million paydown on Series 2015B on September 19, 2016. ** Based on current construction budget for Career & Technical Education Center (CTE).

Summary of Orders (Proposed Transactions)

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Voted Authorization (after Proposed 2017 Transactions) Date Amount Issued* Balance 11/6/2007 $ 428,000,000 $ 380,000,000 $ 48,000,000 11/4/2014 $ 484,000,000 $ 235,800,000 $ 248,200,000 $ 912,000,000 $ 615,800,000 $ 296,200,000

* The issued amounts shown could vary slightly from final numbers between the 2007 and 2014 Bond depending on amounts and timing of construction pay applications for Thornton Middle School.

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Commercial Paper Takeout

Series 2017 Refunding Bonds

Board Meeting to Approve Parameter Order Submit PSF Guarantee Conference Calls with Rating Agencies Post POS Receive Ratings Pricing Bond Purchase Agreement Signed Closing February 13, 2017 February 25, 2017 March 22, 2017 March 28, 2017 March 29, 2017 April 4, 2017 April 5, 2017 May 3, 2017

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Remarketing

• The Initial Rate Period for the District’s Variable Rate Unlimited

Tax School Building Bonds, Series 2015B ends on July 31, 2017

• The Series 2015B Bonds
• Initial Tender Date – 8/1/2017 (two-year)
• Initial Rate – 2.00% coupon at a 1.07% yield
• Stepped Rate – 8.00%
• The District will remarket the Series 2015B into a new Term

Rate Period, which will be between one to five years

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Remarketing-Proposed Activities

Series 2015B Remarketing

Board Meeting to Approve Conversion Order Reoffering Memorandum Post POS Pricing Bond Purchase Agreement Signed Closing February 13, 2017 June 12, 2017 July 3, 2017 July 11, 2017 July 12, 2017 August 1, 2017

S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 JUNE JULY AUGUST

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Weighted Average Analysis Debt: Weighted Average Maturity 13.13 years Assets: Weighted Average Useful Life 28.35 years

Per the Board Resolution adopted on 8/25/2014, the weighted average of maturity of the debt issued will not exceed the weighted average economic life of the assets by more than 120%.

2014 Bond

• New Construction & Classroom Additions

– ES 51* – Others TBD based on 10 year plan

• Facility Deficiencies (i.e. Roofing)*
• Electrical Power Distribution*
• Facility Life-Cycle Needs
• Energy Conservation Initiatives
• HVAC Redundancy & Systems (including Air

Handlers)*

Note: In March 2017, Fort Bend ISD will submit a RFQ for professional services of licensed engineers or architects to assist with the assessment. * Potential to be funded through reimbursement resolution

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BOND 2018 PLANNING

• Athletics, Fine Arts & Administration Facility

Enhancements*

• Security Gaps
• Buses & CNG Infrastructure*
• Information Technology*
• 21st Century Furniture, Fixture and Equipment

upgrades

• CTE Enhancements

* Potential to be funded through reimbursement resolution

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BOND 2018 PLANNING

NETWORK & SYSTEMS TECHNOLOGIES

2018 Technology Bond Planning Description Technology Area Estimated Costs DC Server Growth

Systems and back end infrastructure

$750,000 VDI Infrastructure Expansion (2nd half)

Additional VDI Infrastructure and Licensing to Support pending phases Systems and back end infrastructure

$4,000,000 DC Storage and Backup Growth

Additional Storage Hardware and Support Systems and back end infrastructure

$900,000 DC Software Growth

Backup/Virtual/Cloud Workloads Systems and back end infrastructure

$900,000 Internal Streaming technology for campus announcements

VBrick is the system the district currently uses for the distribution of video content across the

• district. Some of the uses include morning

announcements, instructional videos etc. Student and Campus

$500,000 Network Security

Additional network and systems security will enable better protection of data and district systems Network and back end infrastructure

$250,000 Access security (BYOD)

License and implementation costs associated with BYOD deployment (2014 Assessment recommendation) Student and Campus

$500,000 Firewalls

With the establishment of multi-site redundancy, firewalls will ensure protection of district's digital assets and continuity of business Network and back end infrastructure

$500,000

BOND 2018 PLANNING

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2018 Technology Bond Planning Description Technology Area Estimated Costs

Network logs

Network logs enable engineers to diagnose system faults, malicious activities and facilities establishment of proactive measures to minimize network/system outages Network and back end infrastructure

$250,000 Network monitoring & management tools

Network and system monitoring is vital to the upkeep of existing system as well as to minimize and mitigate issues that may negatively impact business continuity Network and back end infrastructure

$250,000 DC Network Growth

Data center network must be kept current in order to service the needs of the district to the full extent Network and back end infrastructure

$600,000 One H.323 Remote Learning Unit per campus

Currently Polycom is used for remote learning and remote video/audio

• presentation. Current system is almost

10 years old. Needs to be refreshed. Network and back end infrastructure

$900,000 Shared Printers

Current configuration and distribution of printers for teacher and student use is limited and insufficient. A shared printing model will better meet the needs

• f the students and teachers.

Classroom/Stude nt

$2,000,000

NETWORK & SYSTEMS TECHNOLOGIES (CONT.) BOND 2018 PLANNING

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2018 Technology Bond Planning Description Technology Area Estimated Costs Cafeteria and Library AV refresh Many cafeterias and libraries across the district lack AV equipment or what is there currently is insufficient to meet the need. Classroom/Student $1,000,000 Campus Auditorium (HS) Many of the auditoriums in High Schools lack sufficient AV. Complete replacement is needed in some locations while others will need to be upgraded to meet current needs. Classroom/Student $1,210,000 Student Devices This includes, Lending Library, Student devices (min. 10 devices per classroom), mobile carts for check out through library along with hotspots for student check-out for home use Classroom/Student $59,285,375 Interactive Projectors Interactive projectors will provide a means for teachers to convey ideas and concepts while students learn interactively by touch and visual senses Classroom/Student $20,400,000 Estimate Total $94,195,375

STUDENT & CLASSROOM TECHNOLOGIES BOND 2018 PLANNING

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Bond Oversight Committee 2014 Bond program

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