LONG RANGE PLANNING COMMITTEE MEETING Wednesday, May 9, 2018 6:00 - PowerPoint PPT Presentation

LONG RANGE PLANNING COMMITTEE MEETING Wednesday, May 9, 2018 6:00 PM – 8:00 PM Eaton School District Administration Building

AGENDA 1 Outgoing Superintendent 4 RB+B Architects Introductory Remarks Bond Program Design 2 RLH Engineering 5 Stifel Financial Bond Program Management Bond Program Costs 3 FCI Constructors 6 Incoming Superintendent Bond Program Construction Bond Program Support

1 ESD Outgoing Superintendent Dr. Randy Miller Introductory Remarks

INTRODUCTIONS / ROLES ARCHITECT OWNER OWNER’S CONSTRUCTION REPRESENTATIVE MANAGER RB+B WELD RE-2 RLH FCI BOND COMPANY STIFEL

2 RLH Engineering Bond Program Management

RLH Engineering 2  Project Management Scope – RFQ’s for A/E and CM/GC. Survey work for EHS, EMS, and new ES.  Bond Experience – Current programs in Eagle SD, Weld RE-8, and Weld RE-4  Previous Experience – PHMS and Weld RE-7 (RB+B), Elbert SD, PHMS, and Eaton Recreation Center (FCI)  Soft Cost – Owner costs for Geotechnical, Survey, Architectural, Owner’s Rep, land purchase, tap fees, asbestos, and Contingency

3 FCI Constructors Bond Program Construction

FCI Constructors 3  We have worked successfully on 414 K-12 projects  We have been involved on pre-bond efforts for a dozen Colorado School Districts  We are experts in the industry and believe nobody does it better than us!  FCI Constructors will: o Provide accurate cost models o Maximize your budget o Provide construction services o Look for opportunities to save time and money prior to and during construction

4 RB+B Architects Bond Program Design

RB+B Architects 4  65 year History, out of Fort Collins  K-12 Education Experts  Worked with 26 School Districts in CO/WY/NE  We designed Benjamin Eaton Elementary School  We have worked on renovations/additions to: o Eaton Elementary School o Galeton Elementary School o Eaton High School o Eaton Middle School o Administrative Building

RB+B: Recap 4 DISCUSSED ENROLLMENT… • Has been increasing. • This trend is expected to continue. • The District is currently operating near or at capacity.

RB+B: Recap (continued) 4 DISCUSSED INVESTING IN FACILITIES… • Current facilities to keep them long term. • New facilities to accommodate increasing enrollment. • Provide Secure campuses and School entrances.

RB+B: Recap (continued) 4 DISCUSSED BOND ELECTION… • Capital improvements are funded by Bond Election. • The need is greater than the available funding, which is very common, but means Eaton has some choices to make. • We started with over $120 million in projects and have prioritized these to fit within our $75 million budget.

RB+B: The Process 4 2015 Long Range Planning Committee Tentative Schedule Dec 2017 Facility Assessments Jan - April 2018 Study / Select District Framework / Facility Options May 2018 Final Master Plan Document Summer 2018 Bond Campaigning Nov 2018 Bond Election Dec 2018 Design Work Begins Summer 2019 First Construction Work Begins

RB+B: Preferred Facility Framework 4 Overarching Goals: • 1 Track = 1 Class per Grade • Expand Current 7-Track +/- System (2,275) to 9-Track System (2,925) • Realistic Bond Election “Ask”

RB+B: Preferred Facility Framework (continued) 4 Facility “Right - Sizing”: • (2) 4-Track Grade K-5 Elementary Schools (600) • (1) 1-Track Grade K-5 Elementary Schools (150) • 9-Track Grade 6-8 Middle School (675) • 9-Track Grade 9-12 High School (900 – Plan for Long Range Expansion to 1,200)

RB+B: Preferred Facility Framework 4 Preferred Facility Framework: • The “Current Use + New ES” • New K-5 ES, Revitalize MS, Revitalize HS • $73,000,000 +/-

RB+B: Preferred Facility Framework (continued) 4 Proposed Improvements for each School:

Eaton High School EXISTING SITE PLAN

Eaton High School PROPOSED SITE PLAN

Eaton High School PROPOSED FLOOR PLAN UPPER LEVEL ENTRY PLAZA LOWER LEVEL

5 Stifel Financial Bond Program Costs

Prospective 2018 Election Bonds As the District is contemplating an election, we have prepared the following analysis that considers an issuance of $75 million Prospective 2018 Election General Obligation Bonds (1) $6 $5 Debt Service (Millions) $4 $3 $2 $1 $0 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 Existing Bonds 75 Million Prospective 2018 Election Bonds (1)(2) Par Amount 75,000,000 Financing Term 25 Years Estimated Mill Levy Increase in 2019 11.792 Estimated Annual Cost per $100K of County Assessor's Residential Actual Value in 2019 $84.90 Estimated Monthly Cost per $100K of County Assessor's Residential Actual Value in 2019 $7.08 Estimated Annual Cost per $100K of County Assessor's Commercial/Agricultural Actual Value in 2019 $341.96 Estimated Monthly Cost per $100K of County Assessor's Commercial/Agricultural Actual Value in 2019 $28.50 Total Debt Service 133,121,550 Annual Debt Service in 2019 4,508,200 Maximum Annual Debt Service 5,438,700 True Interest Cost 4.068% (1) Preliminary and subject to change. The use of the A1/AA-/-- underlying ratings and Aa2/AA/-- intercept ratings are consistent with the rating of the outstanding prior bonds. Interest rate assumptions are based on current market conditions and similar credits. Actual results may differ, and Stifel makes no commitment to underwrite at these levels. Source of Outstanding Bonds: The District’s 2016 CAFR and respective official statements available on emma.msrb.org. 32 (2) Calculated based upon the District’s final 2017 assessed valuation.

General Obligation Bonds – Statutory Limit The District’s statutory limit on additional general obligation bonds is currently $75 million based upon the 20% test • In Colorado, a school district’s outstanding general obligation bond debt cannot exceed the greater of: o 20% of the assessed valuation of the district; or o 6% of actual value of taxable property (if approved in the District’s ballot language) Statutory Limit on General Obligation Bonds (1) District Weld County School District RE-2 2017/18 Net Assessed Valuation 389,507,720 (2) 20% of Assessed Valuation 77,901,544 Less: Outstanding GO Bonds 2,565,000 (3) Max GO Bonds (20% Test) 75,336,544 (1) Source: Colorado’s Department of Education. (2) Source: Weld County Assessor’s Office. (3) Outstanding principal after 12/1/2018. 33

Comparison of Colorado K-12 Total Mill Levies 10 20 30 40 50 60 70 80 (1) 0 ADAMS-ARAPAHOE 28J Source: Colorado’s Department of Education. ADAMS 12 FIVE STAR MAPLETON 1 CHEYENNE MOUNTAIN 12 POUDRE R-1 ENGLEWOOD 1 BRUSH RE-2(J) WESTMINSTER 50 2017-18 Mill Levies of Neighboring & Similarly Sized Colorado School Districts WINDSOR RE-4 BRIGHTON 27J WIDEFIELD 3 GREELEY RE-6 Total Program Mills LEWIS-PALMER 38 FALCON 49 FT. MORGAN RE-3 CANON CITY RE-1 ADAMS 14 PUEBLO COUNTY 70 VALLEY RE-1 THOMPSON R-2J SHERIDAN 2 Bond Redemption Mills BUENA VISTA R-31 ELIZABETH C-1 MOFFAT COUNTY RE-1 HARRISON 2 Prospective 2018 Eaton RE-2 After Election Bonds PARK (ESTES PARK) R-3 BAYFIELD 10 JT-R GUNNISON WATERSHED RE-1J SALIDA R-32(J) LAKE COUNTY R-1 DELTA COUNTY 50(J) Mill Levy Overrides AULT-HIGHLAND RE-9 WOODLAND PARK RE-2 MONTROSE RE-1J EATON RE-2 JOHNSTOWN-MILLIKEN RE-5J ARCHULETA COUNTY 50 JT EAST GRAND 2 GARFIELD RE-2 Other Mills FT. LUPTON RE-8 MONTEZUMA-CORTEZ RE-1 STEAMBOAT SPRINGS RE-2 CLEAR CREEK RE-1 KEENESBURG RE-3(J) PARK RE-2 IGNACIO 11 JT CRIPPLE CREEK RE-1 RANGELY RE-4 GILCREST RE-1 GARFIELD 16 PAWNEE RE-12 MEEKER RE-1 34 DE BEQUE 49JT GILPIN COUNTY RE-1 PRAIRIE RE-11

QUESTIONS?

6 ESD Incoming Superintendent Bridgette Muse Bond Program Support

ESD: Next Steps 6 1. Finalize Master Plan Document 2. Bond Campaigning 3. Bond Election 4. Design Work Begins 5. Construction Work Begins

Questions? | Discussion | Contact Bridgette Muse Incoming Superintendent, Eaton School District RE-2 211 1 st Street Eaton, CO 80615 970.454.3402 bmuse@eaton.k12.co.us www.eaton.k12.co.us/2018-facilities-project

(END)