Interim Superintendent's Proposed Capital Improvement Plan (CIP) - - PowerPoint PPT Presentation

Interim Superintendent's Proposed Capital Improvement Plan (CIP)

for FY 2021 and Future CIPs

School Board Meeting May 21, 2020

Agenda

• The Uncertain Budget Situation
• Interim Superintendent’s Proposed CIP, which delineates:

− Projects funded in the previous CIP that will be completed − Follow-up and new projects to include in the FY 2021 CIP − Total funding included in the Proposed FY 2021 CIP − Projects and Preparing for Future CIPs

• Review of Projections and Planned Capacity in the FY 2019-28 CIP
• Timeline and Community Information for the CIP Process

All Arlington Public Schools (APS) budget and operations decisions are based on the best information available at the time. Staff and community members are reminded that funding forecasts from Arlington County and the state may change, based

• n many external factors. Similarly, student enrollment and projections are based on the best available information, but are also subject to change due to employment, housing and other economic factors. For these reasons, APS and the Arlington

School Board may adjust future budget allocations, staffing and other operations decisions to reflect the existing community and operating landscape.

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All Arlington Public Schools (APS) budget and operations decisions are based on the best information available at the time. Staff and community members are reminded that funding forecasts from Arlington County and the state may change, based

• n many external factors. Similarly, student enrollment and projections are based on the best available information, but are also subject to change due to employment, housing and other economic factors. For these reasons, APS and the Arlington

School Board may adjust future budget allocations, staffing and other operations decisions to reflect the existing community and operating landscape.

The Uncertain Budget Situation

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Uncertain Budget Situation

Changing Economic Environment Creating Uncertainty in the County

• The impact of COVID-19 has significantly reduced Arlington County’s revenues
• The County will not prepare estimates for future years’ revenue at this time

− APS and the County both need these estimates to build their 10-year Capital Improvement Plans (CIP)

• County has a revised multi-phased approach to capital planning

− Spring 2020: Short-term FY 2021 CIP − Spring 2021: Medium-term CIP for 3-6 years − Spring 2022: Intent is to return to typical ten-year capital planning process

• The County will submit a short-term proposed FY 2021 CIP in early June which will:

− Focus on essential projects and those required under existing agreements or statutory requirements − Include a limited list of investments, including near-term APS needs

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Uncertain Budget Situation

Changing and Uncertain Economic Environment Impacts APS Planning

• The fluidity of the economic situation has made it impossible to forecast what will

happen next week or next month, let alone next year, even while we continue to experience enrollment growth each year

• While FY 2021 funding is slightly more (0.1%) than that in FY 2020, enrollment

estimates for 2020-21 continue to increase

− APS expects to add about 1,100 more students from 2019-20, a 4% increase − This will raise total enrollment to more than 29,100 students

• Additional factor in uncertain environment is that it is not possible at this time to

estimate cost escalation for capital projects to be completed in future years

• The FY 2021 APS CIP process will focus on near-term needs

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All Arlington Public Schools (APS) budget and operations decisions are based on the best information available at the time. Staff and community members are reminded that funding forecasts from Arlington County and the state may change, based

• n many external factors. Similarly, student enrollment and projections are based on the best available information, but are also subject to change due to employment, housing and other economic factors. For these reasons, APS and the Arlington

School Board may adjust future budget allocations, staffing and other operations decisions to reflect the existing community and operating landscape.

Interim Superintendent’s Proposed CIP

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Preparing for the CIP

APS Established a Foundation for CIP Recommendations

• Defined the needs for this CIP in the 2019 AFSAP (Arlington Facilities and

Student Accommodation Plan)

• Updated capital priorities after revising enrollment projections
• Addressed the urgent need for neighborhood school seats along the

eastern end of the Rosslyn-Ballston Corridor with School Board adoption of elementary school moves

• Identified opportunities to create financial flexibility for APS capital planning

by:

− Adjusting the timing of some capital projects where possible − Drawing down some capital reserves − Postponing new initiatives

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Projects Funded and Currently Underway

Completing Projects Funded in the FY 2019-28 CIP, including:

• New elementary school at the Reed site, adding capacity for 732 students
• High school projects already underway:

− Renovations for the Arlington Tech program at the Career Center, to bring capacity up to 600 seats − Renovation of the Education Center, adding 600 seats to Washington-Liberty

• Phase 1 of the Transportation Staff Facility Project
• Career Center Expansion Project planning and design

Note: Project will be reevaluated due to concept design cost estimates exceeding approved funding

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Projects Funded in the FY 2019-28 CIP:

Status Update

In November 2018, Arlington voters supported a bond that included:

• $44.25 million for the completion of the new school at the Reed site
• $32.25 million for the completion of the renovation of the Education Center

We need to make adjustments to complete both projects

• The County will not proceed with the Spring 2020 bond sale until Fall 2020
• Both the new elementary school at the Reed site and the Education Center projects

require funding from the 2020 bond sale to be completed

• APS will use the funds previously sold and currently available for the Education Center

towards the completion of the new elementary school at the Reed site

• Once the bond sale occurs, the Education Center funds will be replenished
• APS expects to begin construction of the Education Center immediately after bonds are

sold in the fall, which may delay project opening until January 2022 or a later date to be determined

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Projects Funded in the FY 2019-28 CIP:

Status Update

Arlington Tech

• Total funding approved: $18.75 M
• Funds spent/encumbered/in approved budget: $13.0 M
• Operating funds not yet requested: $0.75 M
• Remaining funds on hand: $0.0 M
• Bonds remaining to be sold: $5.0 M
• Seats gained after funds are all expended: 600

Career Center Expansion Project

• Initial funding on hand for planning and design: $8.8 M
• Funds spent/encumbered/in approved budget: ~ $1.7 M
• Remaining funds on hand: ~ $7.1 M
• Bonds remaining to be sold: $3.1 M

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Follow-up and New Projects to include in the FY 2021 CIP

Urgent Priorities to include in the FY 2021 CIP

• Refresh buildings and renovate kitchens at elementary school facilities

included in school moves for Fall 2021 (Key, ATS and McKinley)

• Plan and design for up to 700 additional middle school seats
• Plan and design 800 additional high school seats
• Complete The Heights Building with funds for a field with parking below
• Complete Phase 2 of the Transportation Staff Facility Project
• Continue to provide Major Infrastructure funds to maintain our facilities

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FY 2021 CIP:

Refresh ATS, Key and McKinley Facilities to Prepare for School Moves

Project Total ATS Key McKinley Refresh Includes paint, lighting, floor, etc.

$ 2.08 $ 0.93 $ 1.05 $ 0.10

Kitchen Renovation and Expansion includes renovation of kitchen and additional space, kitchen equipment, and owner (soft) costs

$ 7.69 $ 2.17 $ 2.76 $ 2.76

Estimated Total Cost in 2020 Dollars

$ 9.77 $ 3.10 $ 3.81 $ 2.86

1-year Escalation at 5%

$ 0.48 $ 0.15 $ 0.19 $ 0.14

Total Costs

$10.25 $ 3.25 $ 4.00 $ 3.00

Portion of Total Funding Needed July 2020 to May 2021

$ 2.56 $ 0.81 $ 1.00 $ 0.75

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$ in millions

FY 2021 CIP:

Plan and Design for Middle and High School Seats Approve funding to develop, evaluate and select options to be included as capital projects in the FY 2022 CIP, to be adopted in June 2021, to address:

• Middle school enrollment growth, shaped by the vision in the PreK-12

Instructional Program Pathways (IPP)

• Timelines and phasing to address high school enrollment growth:

− Creating the 800 seats at the Career Center and/or at other locations to address high school enrollment growth − Adding common spaces needed for Arlington Tech and the other programs at the Career Center

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FY 2021 CIP: Complete The Heights Building

Construct the synthetic turf field above covered parking and access to the ground floor of building

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$ in millions

Scenario 1 Scenario 2 Completion date August 2022 August 2023 Total Cost $ 16.4 $ 17.2

Funding for Design

$ 3.3

July 2020 to May 2021

$ 3.45

July 2021 to May 2022

Funding for Construction

$ 13.10 $ 13.75

FY 2021 CIP:

Complete the Transportation Staff Facility Renovation (Phases 1 & 2)

Phase 1: Staff break room, restrooms, showers, exercise and training rooms Phase 2: Renovation of administrative offices $ in millions

Scenario 1 Scenario 2 Phase 1 Completion date December 2020 December 2020 Phase 1 – already funded $ 2.10 $ 2.10 Phase 2 Completion date March 2021 August 2021 Phase 2 – new funding $ 1.20* $ 1.62** Total $ 3.30 $ 3.72

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* Phase 2 may be constructed as a change order to Phase 1 ** Phase 2 must be rebid as a separate project

FY 2021 CIP: Major Infrastructure Projects

Major infrastructure projects are those required for the upkeep of our schools and operations.

• The FY 2021 CIP includes continued annual funding for major

infrastructure projects ($15.4M).

• These projects, which must continue in order to maintain existing APS

buildings, include--but are not limited to--the following:

− HVAC − Roofing − Windows

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Total Funding Included in the Proposed FY 2021 CIP

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Project Description (projects in italics are from the FY19-28 CIP; the others are new)

Operating Capital Reserve

Previous Bond Funding

FY 2020 FY 2021 FY 2022 Seats Available in Fall 2019 Fall 2020 Fall 2021 ELEMENTARY New ES at Reed - Expanded (725 seats in 2021) 2 1.25 $ 4.00 $ 2.75 $ 2.75 $ 24.10 $ 17.75 $ 2.40 $ 725 Refresh and Kitchen Renovation - ATS, Key, McKinley 10.25 $ MIDDLE MS Addition Location TBD (525+ seats) - planning and design 2.10 $ 4.20 $ HIGH Education Center Reuse (600 HS seats in 2021 January 2022) 0.75 $ 1.50 $ 20.00 $ 14.10 $ 2.15 $ 600 The Heights Building - Field and Underground Garage $3.30 $13.10 Arlington Tech Expansion (FY17-26 project; 250 seats in 2021) 0.75 $ 13.00 $ 5.00 $ 250 Arlington Career Center Expansion - field and parking garage (2023); 800 seat Addition and performing arts facility (2025) 1.30 $ 31.00 $ 8.80 $ $3.10 $19.90 $21.00 800 HS seats Location(s) TBD - planning and design 5.20 $ 7.00 $ $3.10 $12.40 OTHER Transportation Staff Facility Renovation Phase 1 (December 2020) 2 2.10 $ Transportation Staff Facility Renovation Phase 2 (March 2021) 1.20 $ RECURRING Major Infrastructure Projects 7.40 $ 7.60 $ 7.80 $ TOTAL PROJECTS 2.75 $ 20.25 $

• $
• $

64.10 $ 42.35 $ 20.45 $ 37.50 $

2020

300 Shows the number of seats coming online that year BOND REFERENDA AMOUNTS

48.40 $

Debt Service Ratio Target ≤9.8% FY 2020

FY 2021 FY 2022 Debt Service Ratio -- APS

8.91% 9.07% 8.99%

Annual Bond Issuance

42.35 $ 20.45 $ 37.50 $

Annual APS Debt Service Increase

$1.52 ($1.27)

1 Capital Reserve funds are allocated to projects in order to mitigate the need for bond funding. 2 Funds have already been transferred from the Capital Reserve to the project and are therefore not included in the total.

OTHER FUNDING SOURCES BOND FUNDING

Joint Fund APS | ArlCo

Projects to Include in Future CIPs

The Next Tier of CIP Priorities

• Construct middle and high school seats
• Create security entrances at several schools where the office is not located directly

adjacent to the main entrance

• Renovate kitchens at Campbell, Carlin Springs, ASFS and Ashlawn

Note: Renovation may include kitchen and additional space, kitchen equipment, owner (soft) costs

• Consider funding for the following needs:

− Kenmore/Carlin Springs: school bus parking with an emergency exit road to Manchester

• St. or 5th Rd. S.

− Quincy St. (formerly Buck): for Facilities & Operations shops, moving from the Trades Center to Quincy St. − Trades Center: for partial demolition, regrading and repaving for the bus fleet − Fields: continuing APS collaboration with the County to upgrade and replace synthetic turf fields to support school use and recreational programming

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Preparing for Future CIPs

To Develop the Medium-term CIP for 3-6 years in 2021, APS will:

• Reassess the priorities based on the 2020 10-Year enrollment projections to

be published in December 2020

• Include all projects not funded in the FY 2021 CIP, if financially feasible
• Build out the draft PreK-12 Instructional Program Pathways (IPP) so

instruction informs construction priorities

• Work with Arlington County Government on a process to evaluate specific

sites from the County Manager's list of potential sites for school use

• Explore the options using the design studies conducted earlier this year

based on the School Board’s CIP direction

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All Arlington Public Schools (APS) budget and operations decisions are based on the best information available at the time. Staff and community members are reminded that funding forecasts from Arlington County and the state may change, based

• n many external factors. Similarly, student enrollment and projections are based on the best available information, but are also subject to change due to employment, housing and other economic factors. For these reasons, APS and the Arlington

School Board may adjust future budget allocations, staffing and other operations decisions to reflect the existing community and operating landscape.

Review of Projections and Planned Capacity in the FY 2019-28 CIP

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14,286 14,843 15,106 15,255 15,220 15,127 14,898 14,732 14,517 14,489 14,396

• 212
• 769
• 300
• 449
• 414
• 321
• 92

74 289 317 1,135

2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 Enrollment (Grade PreK to 5) School Year

Comparison of Projected Elementary School Enrollment (PreK to Grade 5) and School Seats

Update to Chart 10, Page 51 of the 2019 AFSAP

Note Starting in 2025-26, the elementary school enrollment projections are completely based

• n assumptions* for K to Grade 5

students from:

• Births
• Future construction
• Past cohort transition rates

continuing into the future

* Projection assumptions only apply to Grades K to 5. PreK is not projected and is an estimate provided by the Department of Teaching and Learning. The PreK estimate is added to each Grade K to 5 projection to produce elementary enrollment totals for PreK to Grade 5 for each projection year.

All Arlington Public Schools (APS) budget and operations decisions are based on the best information available at the time. Staff and community members are reminded that funding forecasts from Arlington County and the state may change, based on many external factors. Similarly, student enrollment and projections are based on the best available information, but are also subject to change due to employment, housing and other economic factors. For these reasons, APS and the Arlington School Board may adjust future budget allocations, staffing and other operations decisions to reflect the existing community and operating landscape.

Projection completely based on assumptions 2019 Enrollment School Seats Projected Enrollment

+732 seats, Reed E.S. +752 seats, Fleet E.S. +725-750 (assume 725) seats in existing building (FY 2019-28 CIP)

Source: APS, Planning & Evaluation, Fall 2019. Facilities & Operations, February 2020..

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Update to Chart 11, Page 52 of the 2019 AFSAP

Note The FY 2019-28 CIP included a 300 seat renovation/addition at a location TBD in 2030. These seats are not included in the bar chart on this slide. Starting in 2028-29, the middle school enrollment projections are completely based on assumptions for Grade 6 to 8 students from:

• Births
• Future construction
• Past cohort transition rates

continuing into the future

All Arlington Public Schools (APS) budget and operations decisions are based on the best information available at the time. Staff and community members are reminded that funding forecasts from Arlington County and the state may change, based on many external factors. Similarly, student enrollment and projections are based on the best available information, but are also subject to change due to employment, housing and other economic factors. For these reasons, APS and the Arlington School Board may adjust future budget allocations, staffing and other operations decisions to reflect the existing community and operating landscape.

6,119 6,442 6,526 6,562 6,681 6,864 7,004 7,022 7,036 6,938 6,823 214

• 109
• 193
• 229
• 348
• 531
• 671
• 689
• 703
• 605
• 490

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 Enrollment (Grade 6 to 8) School Year +1,022 seats, Dorothy Hamm M.S., The Heights (Grade 6 to 8)

Projection completely based on assumptions 2019 Enrollment School Seats Projected Enrollment

Source: APS, Planning & Evaluation, Fall 2019. Facilities & Operations, February 2020..

Comparison of Projected Middle School Enrollment and School Seats

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7,523 7,857 8,370 8,800 8,960 9,200 9,219 9,297 9,426 9,527 9,643 597 343

• 80

90

• 70
• 310

471 393 264 163 47

• 1,000

1,000 3,000 5,000 7,000 9,000 11,000 Enrollment School Year

+600 seats, Ed Center 1-year delay

Update to Chart 12, Page 53 of the 2019 AFSAP Note Starting in 2029-30, the high school enrollment projections are completely based on assumptions for Grade 9 students from:

• Births
• Future construction
• Past cohort transition

rates continuing into the future

All Arlington Public Schools (APS) budget and operations decisions are based on the best information available at the time. Staff and community members are reminded that funding forecasts from Arlington County and the state may change, based on many external factors. Similarly, student enrollment and projections are based on the best available information, but are also subject to change due to employment, housing and other economic factors. For these reasons, APS and the Arlington School Board may adjust future budget allocations, staffing and other operations decisions to reflect the existing community and operating landscape.

+237 seats,

• Arl. Tech, The

Heights (Grades 9 to 12) +80 seats,

• Arl. Tech

+90 seats,

• Arl. Tech

+800 seats, Arl. Career Ctr. TIMING WILL BE DETERMINED IN FY 2022 CIP

Projection for Grade 9 based on assumptions 2018 Enrollment School Seats Projected Enrollment

Source: APS, Planning & Evaluation, Fall 2019. Facilities & Operations, February 2020..

Comparison of Projected High School Enrollment and School Seats (if the Education Center’s opening is delayed one year)

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All Arlington Public Schools (APS) budget and operations decisions are based on the best information available at the time. Staff and community members are reminded that funding forecasts from Arlington County and the state may change, based

• n many external factors. Similarly, student enrollment and projections are based on the best available information, but are also subject to change due to employment, housing and other economic factors. For these reasons, APS and the Arlington

School Board may adjust future budget allocations, staffing and other operations decisions to reflect the existing community and operating landscape.

Timeline and Community Information for the CIP Process

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School Board’s FY 2021 CIP Timeline

2020 Topics/Engagement

May 18 Engage CIP web page goes live with proposal and supporting information May 21 School Board Meeting  Interim Superintendent presents Proposed FY 2021 CIP  Staff present Career Center Expansion Project Concept Design May 27

• CIP Work Session #1
• Public Hearing on the proposed CIP

Review adjustments to proposal requested by the School Board on May 21 June 2 CIP Work Session #2 Review adjustments to proposal requested by the School Board on May 27 June 4 School Board Meeting  School Board presents Proposed FY 2021 CIP  Updated Career Center Expansion Project Concept Design, Information Item June 5 Joint School Board-County Board Work Session (tentative) CIP discussion between School Board and County Board at Joint Work Session June 16 CIP Work Session #3 Review adjustment to proposal requested by the School Board by June 5 June 25 School Board Meeting School Board:  Adopts the FY 2021 CIP and provides direction for the next CIP  Adopts the Concept Design Action on the Career Center Expansion Project

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Community Information for the CIP Process

APS Engage Website

• The 2019 AFSAP report, appendices, supplemental information, and

presentation (Arlington Facilities & Student Accommodation Plan)

• Frequent updates about the CIP throughout the process:

− School Board Work Session/Meetings related to CIP − Presentations − Timeline

Additional Communications

• Information on CIP development shared throughout process via APS

communications channels including School Talk Engage messages, social media, APS School Ambassador updates, news release

• May 27 School Board Public Hearing on Interim Superintendent’s Proposed CIP

All Arlington Public Schools (APS) budget and operations decisions are based on the best information available at the time. Staff and community members are reminded that funding forecasts from Arlington County and the state may change, based

• n many external factors. Similarly, student enrollment and projections are based on the best available information, but are also subject to change due to employment, housing and other economic factors. For these reasons, APS and the Arlington

School Board may adjust future budget allocations, staffing and other operations decisions to reflect the existing community and operating landscape.

Questions? Write to: engage@apsva.us Follow the CIP Process:

www.apsva.us/engage/cip/

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Preliminary Work Session on 2021-2030 CIP Planning

School Board Work Session May 13, 2020