Bond Oversight Committee
Bond Premium Recommendation
February 5, 2024
Agenda
2
2
Background & Context
In August 2020, the Board of Education approved a $795 million bond package of specific project and use funds
Upon voter approval in November 2020, bonds were sold in a favorable interest rate environment, generating an additional $176 million over the $795 million par amount
Our Bond Oversight Committee is responsible for making recommendations regarding additional investments for the use of any residual unallocated bond premium funds, in addition to oversight of the implementation of the voter approved 2020 bond projects
*Bond funds are one-time and can only be used on capital investments such as critical maintenance, technology, and facility improvements. Bond funds cannot be used for ongoing operating expenses.
3
Recommendation of Premium Allocation
4
Final Premium Allocation
5
Sources/Uses | Budget | Notes |
Recommended Sources: Premium 2020 Underspend Existing Approved Projects | $176.3 M $19 M $150.3 M $45 M Remaining | |
Safety | $5.04 Million | Operational improvements and capital needs based on the Safety Plan |
2020 Project Overages | $16.5 Million | Inflationary & Underfunded Projects |
Bond Oversight Committee Recommendation | $21.2 Million | Some projects include playgrounds, chillers, black top & parking lot, etc. |
Remaining Premium Funds | $2.2 Million | BOC will revisit remaining premium in June 2024 after CPAC is completed |
Previous approved 2020 premiums by the Board of Education
January 2022 Premium 1st Round
December 2022 Premium 2nd Round
District Recommendations
6
Safety Premium Allocation
7
Project | Description | Amount |
Dispatch System | DoCS Computer Aided Dispatch (CAD) system will improve overall operations and provide technological improvements including GPS tracking, replacement of the end of life system, and efficient records management. RFP Complete. Contract awarded and CAD system is being customized for DPS. | $ 457 K |
Dispatch Center Remodel | DoCS Dispatch Center could improve efficiency and have additional dispatcher work stations. Vendor identified. Planning in-progress. | $ 119 K |
Secondary Dispatch Capabilities | Continuity of Operations and communication redundancy is vital in public safety. The DoCS has preliminarily explored a secondary dispatch work location at 780 Grant, in the event the primarily location needed to be evacuated or became inoperable. Vendor identified. Planning in-progress. | $ 100 K |
Phone System | The current Dispatch Center phone system is antiquated. An upgrade to existing technology will terminate remaining analog phone lines, be compatible with CAD improvements, allow headset integration, and improve over efficiency and ergonomics for the staff. Developing RFP. | $ 250 K |
CSO Radios | DoCS has determined that CSOs, who are unarmed should be equipped with a radio to insure expedited communications with First Responders should a critical incident occur at a school. Finalizing Purchase. | $ 248 K |
Total | $1.174 MM | |
The recommendation was split into two parts; the BOC tentatively approved the start of these projects that are related to the district’s safety plan and commitment of the Superintendent and Board of Education.
Safety Premium Allocation
8
Project | Description | Amount |
Key Boxes | Electronic key boxes will enable there to be key access by different departments and allow for tracking of who has keys at any time. | $ 1.0 MM |
East High School Secure Vestibule | Conversion of the main entrance of East High School to enable a layered security approach to access control and visitor management. | $ 800 K |
Door Replacement | Replacement of rusted and old doors at 9 identified schools including 118 single doors and 88 double doors. | $ 2.06 MM |
Total | $ 3.860 MM | |
Approved Projects ($1.174 MM) + Proposed Projects ($3.860MM) | $ 5.034 MM | |
The final projects were presented to BOC in January to complete the commitment to Safety projects.
Economic Pressures Impacting Projecting Costs
Economic Pressures
Navigating Economic Pressures
Project Specific Actions
9
9
*Construction Manager/General Contractor
2020 Bond Inflationary Overages Projects
Year 4
10
Amesse | 2020 GOB | $3,995,245 | $5,500,000 | $1,504,755 | Inflation, underfunded scope |
Archuletta | 2020 GOB | $649,207 | $950,000 | $300,793 | Inflation |
Brown | 2020 GOB | $576,665 | $1,500,000 | $923,335 | Inflation, underfunded scope |
CEC | 2020 GOB | $943,506 | $1,643,506 | $700,000 | Inflation, underfunded scope |
DMLK (MEP) | 2020 GOB | $2,460,210 | $3,500,000 | $1,039,790 | Inflation, additional scope required |
DSA South (Roof) | Unfunded | $0 | $2,300,000 | $2,300,000 | Unforeseen infrastructure improvements required due to water intrusion |
Evie Dennis | 2020 GOB | $1,810,002 | $3,567,491 | $1,757,489 | Inflation, underfunded scope |
Holm | 2020 GOB | $838,640 | $966,133 | $127,493 | Inflation |
| |||||
Sub Total (pg 1) | | $11,273,475 | $19,927,130 | $8,653,655 | |
Project Name | Funding Source | DPS Construction Budget | Estimate/Bid/GMP8 | Delta: Most recent milestone vs. DPS budget | Reason for Overages |
*guaranteed maximum price
2020 Bond Inflationary Overages Projects
Year 4
11
Sub Total (pg 1) | | $11,273,475 | $19,927,130 | $8,653,655 | |
Lincoln/ McKinley | 2020 GOB | $449,350 | $659,320 | $209,970 | Inflation |
Maxwell/ Oakland | 2020 GOB | $667,326 | $1,485,000 | $817,674 | Inflation, underfunded scope |
Newlon | 2020 GOB | $1,147,133 | $1,500,000 | $352,867 | Inflation, underfunded scope |
Place (MEP) | 2020 GOB | $5,965,707 | $8,885,000 | $2,919,293 | Underfunded scope |
Schenck/ Munroe | 2020 GOB | $1,566,753 | $3,894,164 | $2,327,411 | Inflation, underfunded scope |
Schmitt | 2020 GOB | $757,702 | $2,000,000 | $1,242,298 | Inflation, underfunded scope |
| |||||
Total Overages requested (pages 1 & 2) | | $21,827,466 | $38,350,614 | $16,523,148 | |
Project Name | Funding Source | DPS Construction Budget | Estimate/Bid/GMP* | Delta: Most recent milestone vs. DPS budget | Reason for Overages |
*guaranteed maximum price
School Based Prioritization based on Recommendations
12
Prioritization Process
Committee Members:
Board of Education Representatives:
13
13
Start of Premium Process
The committee discussed and received information around the BOC prioritization matrix and the Equity Index
October 2023
Knowledge Building
Committee received a mock prioritization process exercise with existing projects to better understand the process
Finalized the BOC prioritization matrix
School leaders were notified about project recommendations
November 2023
Proposed Projects
Reviewed project recommendations identified by DPS staff
Special Public Comment
December 2023
Decision Making
Committee deliberation on proposed projects
Finalize recommendations & notify school leaders
January 2024
Approval
BOC co-chairs present to Finance and Audit Committee
Board of Education vote on recommendation
February 2024
Engagement
Opportunities for Schools
In November, 79 schools were identified with a project(s) on the potential premium list. They were contacted and provided with information about the project up for consideration.
The Bond Oversight Committee heard public comment from school administrators, teachers, staff, parents, and community members from 20 schools. In addition, the committee received several letters, pictures, and videos from students and 16 schools (that did not participate in Public Comment) around the importance of critical maintenance.
The committee recognizes that not as many schools participated in this process. There is a need to engage with school communities and increase the number of schools who participate in public comment in the future.
14
Prioritization Criteria
15
Student Equity- Providing the resources that students need for success. For measuring student equity, we used the following index:
School % High Poverty + %English Learner + %SPED +%Volatility
District Average % High Poverty + %English Learner + %SPED +%Volatility
This is in line with how DPS allocates student-based funding.
What is the Data?
As prioritization was evaluated, we used a method to evaluate district-wide equity and equality through an Equity Index that defines a baseline for ALL schools/programs with greater rigor beyond family income.
Approach to Equity - Equity Index
Prioritization Criteria
16
The Committee recommendations are based on projects aligning with the following key priorities:
Category | Weight | 0 | 1 | 2 | 3 |
Life / Safety – Ability for School to Safely Operate | 3x | Critical Maintenance/ Facility Does not impact safety | Addresses a life / safety concern that is low priority and does not impact the school’s ability to operate | Addresses a life / safety concern that is a medium priority due to the risk of impacting a school’s ability to operate | Addresses critical safety violation that directly risks a school’s ability to operate |
Code or ADA Does not impact code or ADA | Addresses a low priority code or ADA issue under which DPS has no obligations and presents no negative impacts to students | Addresses a low or medium priority code or ADA issue under which DPS has no obligations but remedying would present a positive student impact | Addresses a high priority code or ADA issue in which DPS has an obligation to remedy the issue and/or would significantly improve the student experience | ||
Student Safety Does not impact student safety/Mental and Behavioral Health | The project improves student safety/Mental and Behavioral Health (Nice to have) | Project expands existing student safety/Mental and Behavioral Health investment that is working and/or invests in piloting new work | Project will bring DPS facilities into compliance with evolving standards for student safety/Mental and Behavioral Health | ||
Supporting Value of Equity | 2x | The school has an equity index <0.5 | Equity index between 0.51 - 1.0 | Equity index between 1.01 - 1.5 | Equity index > 1.51 |
Aligned with Instructional Priorities | 2x | The project does not impact instruction and academics | The project will improve the student learning environment | The project improves the learning environment and supports new/different instruction | The project directly supports instruction and will support student learning |
Time Sensitivity | 1x | The project can wait for a future capital request without negatively impacting student experience | The project can wait for a future capital request but would positively impact student experience | The project would enhance the student experience in the near term and/or there is a risk of future cost being significantly higher beyond the rate of construction inflation | The project cannot wait for future funding and the district will fund elsewhere if not from premium to the detriment of other district funded programs |
Each committee member used the following rubric to score all projects prior to deliberation. Categories are weighted based on the committee’s discussion of priorities.
Getting to the Recommendation
17
5
BOC Criteria - Urgency of Need for Projects
3
Life Safety & Student Impact
Assessing projects to ensure equity and equality across projects, like playgrounds, outside of the matrix ranking
1
High Priority Projects
Critical Maintenance, technology, sustainability, and playgrounds
4
Assessment of Lower rated Projects
Determine if projects should be prioritized by CPAC
2
Project Scope & Timing
Availability of resources for the projects to be completed in a timely manner (within 18 months after final approval)
The committee utilized the Equity Index and Prioritization Matrix before getting to this point.
Committee Recommendation
Based on Prioritization, Public Comment, and Recommendations from District Staff
18
Category (In no Particular Order) | Recommended Amount |
Critical Maintenance - Chillers | $5,625,313 |
Critical Maintenance - Black Tops / Parking Lots | $4,697,951 |
Critical Maintenance - Playground Equipment | $3,964,290 |
Critical Maintenance - Roofing | $2,197,500 |
Critical Maintenance - Concrete | $650,174 |
Critical Maintenance - Interior Fixtures | $293,000 |
Technology - Chromebooks | $1,985,525 |
21st Century Updates for Athletics | $1,820,610 |
Total | $21,234,363 |
Of the 79 schools identified, 60 received project funding and the remaining 19 schools projects will be moved CPAC
Committee Recommendation
Critical Maintenance - Chillers
19
Building Name | Item Name | Equity Index | Recommended Amount |
CEC MIDDLE COLLEGE | Cooling Systems - Air Cooled Chiller System | 1.6 | $957,523 |
COLLEGE VIEW | Cooling Systems - Air Cooled Chiller System | 1.4 | $939,409 |
LOWRY | Cooling Systems - Water Cooled Chiller System | 1.01 | $1,391,750 |
MCKINLEY THATCHER | Cooling Systems - Air Cooled Chiller System | 0.49 | $1,379,109 |
RANDOLPH | Cooling Systems - Water Cooled Chiller System | 1.78 | $957,523 |
Total | $5,625,313 | ||
Committee Recommendation
Critical Maintenance - Black Tops & Parking Lots
20
Building Name | Item Name | Equity Index | Recommended Amount |
A LINCOLN HS | PARKING LOT | 1.7 | $1,184,291 |
AMESSE | BLACKTOP | 1.42 | $66,713 |
BLAIR | PARKING LOT | 1.07 | $51,623 |
CHELTENHAM | BLACKTOP | 1.3 | $109,102 |
CHELTENHAM | PARKING LOT | 1.3 | $151,096 |
CONSERVATORY GREEN | BLACKTOP | 1.01 | $49,457 |
COWELL | PLAYGROUND | 1.58 | $52,882 |
FORCE | BLACKTOP | 1.35 | $101,810 |
GARDEN PLACE | PARKING LOT | 1.39 | $85,633 |
GARDEN PLACE | BLACKTOP | 1.39 | $123,502 |
GILPIN (DLS) | PARKING LOT | 0.26 | $143,079 |
GILPIN (DLS) | BLACKTOP | 0.26 | $156,765 |
GOLDRICK | BLACKTOP | 1.32 | $238,954 |
GREENLEE | PARKING LOT | 1.27 | $66,381 |
GREENLEE | BLACKTOP | 1.27 | $175,701 |
Committee Recommendation
Critical Maintenance - Black Tops & Parking Lots
21
Building Name | Item Name | Equity Index | Recommended Amount |
GUST | BLACKTOP | 1.12 | $95,818 |
JOHNSON | PARKING LOT | 1.38 | $44,251 |
King (MLK) | PARKING LOT | 1.21 | $111,093 |
KIPP SUNSHINE PEAK ACADEMY | DRIVE WAY | 1.57 | $105,784 |
KNAPP | BLACKTOP | 1.5 | $46,561 |
LAKE | BLACKTOP | 1.37 | $238,082 |
MANUAL | PARKING LOT | 1.34 | $24,094 |
MCMEEN | BLACKTOP | 0.95 | $97,217 |
PHILIPS (ODYSSEY) | BLACKTOP | 0.39 | $131,073 |
PIONEER BUILDING (UPREP) | BLACKTOP | 1.2 | $60,171 |
REMINGTON (RMP SUNNYSIDE) | BLACKTOP | 1.45 | $132,328 |
RISHEL (KIPP DCHS) | PARKING LOT | 1.67 | $285,019 |
STEELE | PARKING LOT | 0.2 | $108,149 |
SWIGERT-McAULIFFE (SMIS) | BLACKTOP | 0.26 | $68,576 |
TELLER | PARKING LOT | 0.28 | $90,964 |
Committee Recommendation
Critical Maintenance - Black Tops & Parking Lots
Critical Maintenance - Playgrounds
22
Building Name | Item Name | Equity Index | Recommended Amount |
WESTERLY CREEK | BLACKTOP | 0.32 | $83,080 |
WHITTIER | BLACKTOP | 1.31 | $218,704 |
Total | $4,697,951 | ||
Building Name | Item Name | Equity Index | Recommended Amount |
ARCHULETA | Playground Equipment and Structures | 1.4 | $439,500 |
BLAIR | Playground Equipment and Structures | 1.07 | $439,500 |
BROMWELL | Playground Equipment and Structures | 0.27 | $465,870 |
BROWN INTERNATIONAL | Playground Equipment and Structures | 0.49 | $36,625 |
FALLIS (DGS SE) | Playground Equipment and Structures | 1.15 | $109,875 |
FLORIDA PITT WALLER | Playground Equipment and Structures | 1.22 | $319,370 |
GILPIN (DLS) | Playground Equipment and Structures | 0.26 | $26,370 |
GRANT RANCH | Playground Equipment and Structures | 0.81 | $542,050 |
GREEN VALLEY | Playground Equipment and Structures | 1.15 | $487,845 |
Committee Recommendation
Critical Maintenance - Playgrounds
Critical Maintenance - Roofing
23
Building Name | Item Name | Equity Index | Recommended Amount |
KNAPP | Roofing - EPDM Rubber Membrane | 1.5 | $952,250 |
MCMEEN | Roofing - EPDM Rubber Membrane | 0.95 | $1,245,250 |
Total | $2,197,500 | ||
Building Name | Item Name | Equity Index | Recommended Amount |
HOLM | Playground Equipment and Structures | 1.23 | $139,175 |
KNAPP | Playground Equipment and Structures | 1.5 | $439,500 |
LOWRY | Playground Equipment and Structures | 1.01 | $26,370 |
MITCHELL (CASA) | Playground Equipment and Structures | 1.59 | $26,370 |
MONTCLAIR | Playground Equipment and Structures | 1.18 | $26,370 |
MUNROE | Playground Equipment and Structures | 1.56 | $439,500 |
Total | $3,964,290 | ||
Committee Recommendation
Critical Maintenance - Concrete
24
Building Name | Item Name | Equity Index | Recommended Amount |
BEACH COURT | RIGHT OF WAY SIDEWALK | 1.23 | $30,328 |
COLUMBIAN | PEDESTRIAN WALK | 1.05 | $67,381 |
COLUMBINE | PEDESTRIAN WALK | 0.75 | $82,217 |
EAGLETON | PEDESTRIAN WALK | 1.36 | $117,573 |
EBERT (POLARIS) | PEDESTRIAN WALK | 0.18 | $18,119 |
HALLETT | PEDESTRIAN WALK | 1.02 | $44,019 |
PLACE BRIDGE | PEDESTRIAN WALK | 1.59 | $222,846 |
SUMMIT ACADEMY | RIGHT OF WAY SIDEWALK | 1.56 | $67,690 |
Total | $650,174 | ||
Committee Recommendation
Technology
Critical Maintenance - Interior Fixtures
25
Building Name | Item Name | Equity Index | Recommended Amount |
All District | Chromebooks - Middle School Students | 1.00 | $1,985,525 |
Total | $1,982,525 | ||
Building Name | Item Name | Equity Index | Recommended Amount |
BARNUM | Lunch Tables Affixed to the wall | 1.36 | $58,600 |
FAIRMONT | Lunch Tables Affixed to the wall | 0.82 | $58,600 |
GARDEN PLACE | Lunch Tables Affixed to the wall | 1.39 | $58,600 |
SMITH | Lunch Tables Affixed/ Anchor to the wall | 1.28 | $58,600 |
UNIVERSITY PARK | Lunch Tables Affixed/ Anchor to the wall | 0.52 | $58,600 |
Total | $293,000 | ||
Committee Recommendation
21st Century Updates - Athletics
26
Building Name | Item Name | Equity Index | Recommended Amount |
East | Provide ADA accessibility to softball field | 0.42 | $148,500 |
Jefferson | Provide ADA access to multi-use field | 0.93 | $74,250 |
North | Provide ADA accessibility at softball field | 1.01 | $74,250 |
Randolph | Provide baseball bullpens | 1.78 | $22,275 |
Randolph | Provide batting cage at softball field | 1.78 | $74,250 |
Randolph | Provide masonry baseball dugouts with roof | 1.78 | $259,875 |
Randolph | Provide masonry softball dugouts with roof | 1.78 | $259,875 |
Randolph | Provide softball bullpens | 1.78 | $17,820 |
Washington | Provide softball batting cage | 1.69 | $74,250 |
Washington | Upgrade baseball dugouts to masonry with metal roof | 1.69 | $259,875 |
Washington | Upgrade softball bullpens | 1.69 | $17,820 |
Washington | Upgrade softball dugouts to masonry with metal roof | 1.69 | $259,875 |
West | Provide softball bullpens | 1.51 | $17,820 |
West | Upgrade shared baseball/softball dugouts to masonry with metal roof | 1.51 | $259,875 |
Total | $1,820,610 | ||
Thank you!!
27
Appendix
2020 Bond Premium Allocation - First Round (Jan 2022)
29
Sources/Uses | Budget | Notes |
DSA (Johnson and Wales purchase) | $30M | Property acquisition |
Montbello Project | $35M | Change to original scope, scope complexity, programmatic needs |
Denver School of Arts | $10M | Programmatic needs, code upgrades |
Inflationary Budget Overages | $10.5M | |
Total Budgeted Costs | $85.5M | |
2020 Bond Proposed Premium Allocation - 2nd Round
30
30
Sources/Uses | Budget | Notes |
Recommended Sources: Premium 2020 Underspend Existing Projects | $45.8M $19M $64.8M | $90.5M of total Premium remains after the initial allocation; using $45.8M of premium will leave $44.7M for a future process Kepner debt service ($11MM) as part of the underspend $30M remains in reserves to ensure original commitments are met |
Recommended Uses: | | |
Montbello Project | $20M | inflation, design refinement, subcontractor buyout |
Ceylon E-5 Campus | $22.2M | Inflation, design refinement, subcontractor buyout |
DSA Program Expansion | $6.6M | Inflation, design refinement, programmatic needs, code updates |
Thomas Jefferson MEP | $6M | Inflation, design refinement, code updates |
2023 Inflationary Budget Overages | $8.5M | Inflation, design refinement |
2024 SDF 20% Inflation Add | $1.5M | Inflation |
Total Budgeted Expenses | $64.8M | |
2020 Premium vs. Reserves
2020 Voter Approved Par Amount of Bonds - $795M
Bond Reserves
Premium funds -
Interconnection to BOC: Informative; transparent to BOC on monthly basis with dashboard - open forum for discussion
Interconnection to BOC: In conjunction with recommendations and information from DPS, BOC is responsible for ultimate list of allocations that will go to BOE for approval of additional funds
Regardless of use of Reserves or Premium, any allocation of funds greater than $1M would go to the FAC and ultimately the BOE for approval; for projects outside of original voted approved bond package or premium allocation:
2020 Bond & Mill Investments by Category
32