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Bond Planning Process

Board Workshop

September 13, 2022

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Introductions

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Introductions

Miller Canfield – Bond Legal Counsel

PFM Financial – Financial Advisor

Wakely Associates – Architect

Peter Basso Associates – Mechanical/Electrical Engineer

Spalding DeDecker – Civil Engineer

Barton Malow Builders – Construction Manager

Banach, Banach, & Cassidy – Campaign Specialist

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Agenda

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Capital Improvement Planning

AGENDA

  • Overview
  • Financial Information
  • Timeframe
  • Current Industry Status
  • Facility Needs
  • Technology Needs
  • Informational Campaign
  • Next Steps
  • Questions / Answers

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Overview

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Capital Improvement Planning

Overview

  • 12 Buildings
  • Site: Approx 140 Acres
  • Building Area: 825,240 sq.ft.
  • Average Age of Buildings: 57 years

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  • May 2005 Bond: $59.1M
  • February 2011 Bond: $19.9M
  • May 2017 Bond: $29.37M

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Life Cycle / Cost Analysis

Typically, a school district will Bond every 5-10 years to

keep current and replace building infrastructure. The

lifecycle of equipment varies and all equipment won’t

fail at the same time.

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We try to minimize repair costs now because repair

costs and often exceed replacement cost.

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Difficult to find replacement parts

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STUDENT ABILITY TO LEARN IS AFFECTED BY NOISE, TEMPERATURE, CO2 LEVELS

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Financial Information

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Funding Options

Bonds

Qualified Bond

  • Requires Department of Treasury review/approval
  • For major program improvements
  • Typically 3-7 year program
  • Typical payback 15-25 years

Non-Qualified Bond

  • Similar to Qualified Bond, except does not need to be reviewed/approved by the Department of Treasury.
  • Utilizes district credit rating

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Sinking Fund

  • Funded annually (“pay as you go”)
  • Typically 5-10 year program (no more then 20 years)
  • “Roofs, boilers, parking lots”

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Other

  • COVID/ESSER
  • Grants

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Financial Info

Qualified Bond History

With Millage Increase:

57% Pass Rate

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Without Millage Increase: 91% Pass Rate

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Financial Info

Macomb County Rates

School District

Debt

Sinking Fund

Total Debt

Clintondale Community Schools

13.0000

​

13.0000

Mt Clemens Community Schools

11.8000

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11.8000

Roseville Community Schools

11.2000

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11.2000

Anchor Bay Schools

10.0000

​

10.0000

Van Dyke Public Schools

9.7000

0.9846

10.6846

Fitzgerald Public Schools

9.4000

3.0000

12.4000

Chippewa Valley Schools

8.6400

​

8.6400

Warren Woods Public Schools

8.5400

​

8.5400

New Haven Community Schools

8.2600

​

8.2600

Lakeview Public Schools

7.5000

​

7.5000

Centerline Public Schools

7.4000

​

7.4000

Armada Area Schools

7.0000

0.8394

7.8394

Fraser Public Schools

7.0000

​

7.0000

L'Anse Creuse Public Schools

7.0000

​

7.0000

LakeShore Public Schools

7.0000

​

7.0000

Richmond Community Schools

6.9500

​

6.9500

South Lake Schools

6.0212

0.9788

7.0000

Warren Consolidated Schools

4.7800

​

4.7800

Romeo Community Schools

3.9900

1.2396

5.2296

Eastpointe Community Schools

3.5000

3.0000

6.5000

Utica Community Schools

3.5000

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3.5000

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Financial Info

Qualified Bond Scenarios

Information provided by PFM

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Timeframe

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Capital Improvement Planning

PATH

May

August

Nov.

1 Year

COMPLETE

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Timeframe

Develop Detailed Schedule

SAMPLE

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Current Industry Status

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Current Industry Status

Post Covid experience

  • Cost Impact

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  • Supply chain (lead times)

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  • Labor Market (shortage & productivity)

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Material Lead Times:

  • Steel Joists 24-50 Weeks Depending on size
  • Steel Deck 8-12 Weeks
  • Aluminum Storefront 14 Weeks
  • Electrified Hardware 16-20 Weeks
  • Custom HM Frames 20–33 Weeks
  • Standard Door Frames 8-10 Weeks
  • Flush Wood Doors 25-28 Weeks
  • Roofing Insulation 40-56 Weeks
  • Epoxy paint & Dryfall 26 Weeks
  • Elevator 50-52 Weeks
  • AHU/RTU & Chillers 30-36 Weeks
  • MUA Units 30 Weeks
  • ERU 20-26 Weeks
  • CRAC Units 48 Weeks
  • Pumps & Compressor 20-26 Weeks
  • Blower Coil Units 10-12 Weeks
  • Boilers 12-20 Weeks
  • Heating Coils 10-12 Weeks
  • Air Compressors 10-12 Weeks
  • Unit/Cabinet Heaters 8-12 Weeks
  • Radiant Wall and FTR 6 Weeks
  • Radiant Ceiling Panels 25 Weeks
  • Air/Dirt Separators 6-8 Weeks
  • Sump Pump 2&3 8-10 Weeks
  • Heating Pumps 8-10 Weeks
  • Condensate Receivers 4-6 Weeks
  • Water Heater 10-12 Weeks
  • Water Cooler 8-12 Weeks
  • Heat Exchangers 6-8 Weeks
  • Terminal Units 10 Weeks
  • Variable Freq Drives 20 – 42 Weeks base on HP
  • Fans 14-20 Weeks
  • Sound Attenuators 10 Weeks
  • Intake/Relief Hoods 16 Weeks
  • GRD’s 6 Weeks
  • Primary Gear 50-52 Weeks
  • Transformers (Oil Filled) 50-54 Weeks
  • Dry Transformer 16-22 Weeks
  • Generator 52-56 Weeks
  • WAP's & Switches 26 Weeks
  • Kitchen Freezer/Coolers 30 Weeks

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Facility Needs

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Data Gathering

Scope

  • Site Improvements
  • Building Exterior
  • Mechanical Systems
  • Electrical Systems
  • Safety & Security
  • Equipment / Buses

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Capital Improvement Planning

Facility Needs Assessment

Categories

  • Site Work (parking lots, sidewalks, drainage)
  • Building Exterior (roofing & doors)
  • Mechanical Systems (replace aging equipment)
  • Electrical Systems (lighting)
  • Safety & Security (interior door hardware)

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Prioritization

  • Priority 1 – Critical Needs (1-3 years)
  • Priority 2 – Urgent Needs (3-5 years)
  • Priority 3 – Long Term Needs (5-10 years)

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DRY, WARM, SAFE

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Capital Improvement Planning

Site Work

  • Asphalt paving
    • Approx 912,000 sq.ft.
  • Concrete sidewalk replacement
    • Approx 53,500 sq.ft.
  • Improve Drainage

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Capital Improvement Planning

Building Exterior

  • District Wide Select Roofing Replacement
    • Replace aging roofs
    • 212,814 sq.ft. of roofing
  • District Wide Select Exterior Doors
    • 71 doors

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Capital Improvement Planning

Mechanical Work

  • Replace Equipment installed in 2005 bond
    • Boilers
    • Chillers
    • Roof Top Unit
    • Air Handlers
    • Unit Vents
    • Temp Controls
  • Approximate 250 pieces of equipment
  • PBA and Wakely assisted us with surveying every piece of mechanical equipment throughout the district

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Capital Improvement Planning

Electrical Work

  • Exterior parking lot lights
  • Exterior Building Lighting
  • Upgrade Interior Lighting to LED
  • Replace Exit Lighting
  • Work to support mechanical

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  • Approximately 6,500 light fixtures

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Capital Improvement Planning

Athletics, Arts, Academics

  • Replace / Expand Concession Stand and Exterior Storage

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  • Replace Soundboard in Auditorium

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Capital Improvement Planning

Safety & Security

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  • Add additional Columbine Interior Classroom Door Hardware
  • Add additional Card Access Points around the district.

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Capital Improvement Planning

Furniture, Equipment, Buses

  • Purchase Custodial Equipment

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Purchase 3 buses to replace 3 (C2 Thomas Built Busses) They are:

Bus 6   91,504 miles

Bus 8   91,375 miles

Bus 17  88,996 miles

  • Moving our 14’s to our sub bus lot.

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Technology

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Technology Update Overview

Schedule based on date purchased and expected lifespan. Also combined with dependent equipment needs.

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Capital Improvement Planning

Technology

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2023 Preliminary Bond Application Budgets

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Infrastructure

Non- Instructional

Instructional

Contingency

Design

TOTAL

Building Total

Disney

66,348

6,425

470,867

27,206

9,675

580,521

$ 514,095

Edison

74,169

7,710

595,476

33,897

11,556

722,808

$ 640,090

Eisenhower

77,575

7,710

643,524

36,472

12,308

777,589

$ 688,578

Emerson

62,628

6,425

461,442

26,548

9,314

566,357

$ 501,559

Salk

87,035

6,425

719,656

40,692

13,784

867,592

$ 768,183

Twain

65,024

6,425

495,008

28,348

9,841

604,646

$ 535,449

Richards

376,458

61,040

1,512,334

97,580

42,488

2,089,900

$ 1,852,363

Fraser High

645,645

124,670

3,005,572

188,606

77,583

4,042,076

$ 3,582,988

Dooley

55,248

5,140

68,642

6,458

4,595

140,083

$ 124,198

Admin

126,894

12,208

16,737

7,800

9,044

172,683

$ 153,339

O&M

10,848

3,855

2,906

881

789

19,279

$ 17,228

Bus garage (transportation)

5,424

3,213

533

459

385

10,014

$ 9,000

Sub-total

1,653,295

251,246

7,992,695

494,947

201,362

10,593,544

$ 9,387,066

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Informational Campaign

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Informational Campaign

Resources / Assistance

  • Calendar of Events
  • Press Release
  • Frequently Asked Questions (FAQ)
  • Presentation Boards
  • Flyer / Brochure
  • Absentee Ballot Letter
  • Presentations
  • Focus Panels / Surveys
  • Mailer
  • 24 / 7 on call access
  • Social Media Content
  • Voter Lists

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Informational Campaign

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Next Steps

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Next Steps

Timeline

September 2022 Refine Scope

October 24, 2022 Board Review Draft Bond Program

November 7, 2022 Board Review Bond Program

November 16, 2022 Review with Department of Treasury

December 2022 Develop Campaign Materials

January 23, 2023 Board Call for Election

February 2023 Inform Absentee Voters

March 2023 Absentee Ballots Available

April 2023 Continue Informational Campaign

May 2, 2023 Bond Vote

2023 - 2026 Design Phases

2024 - 2027 Construction Phases

2025 Technology Refresh

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Thank You

Questions?