At Berkeley High School two major buildings (G and H) have been seismically retrofitted, we are proceeding with plans to build two new buildings: a student center with library and other services and a gymnasium with pool. Roofs and heating systems have been replaced, the grounds improved, and a host of other projects have been completed with Measure A Funds. The proposed bond measure will add classrooms, modernize buildings and add a better communication and monitoring system to increase security at this site. The added classrooms are in the old gymnasium. This building has seismic problems and will need to be completely remodeled to allow for this change of function. The estimated cost of this project is:
 

 The City of Berkeley has a tax measure on the November 2000 ballot to remodel the pool area and the shower area of the Old Gym. That work is not included in this estimate.  The C building, the Donahue Gymnasium and the classroom portion of the Community Theater (A building) need to be modernized. Measure AA will fix code violations, provide accessibility, replace deteriorated floors, paint the buildings inside and out, remodel some restrooms and replace some of the ceilings. In addition, a selected Site Committee will explore ideas for some facilities educational improvements. These educational changes will be developed by the instructional staff in conjunction with the selected architect. The estimated cost of work in these buildings is:
 

The communication systems at Berkeley High School need a great deal of improvement. The District will place interior cameras in the most critical buildings at Berkeley High School this year. Additional cameras will be needed to cover the exterior of the school grounds and additional buildings, including the planned new buildings. This will deter crime and expedite apprehension of anyone who does commit a crime. The estimated cost of this work is:
 

The total included for Berkeley High School in these three categories is $28,155,000.

The main building at King will be seismically retrofitted under the current bond. King Middle School still needs a new cafeteria and two buildings need to be modernized.
The estimated cost of a new cafeteria is:
 

The kitchen equipment will be funded from alternate sources - possibly from the Food Service Reserve budget.
The Science building and the gymnasium both need to be modernized. Measure AA will fix code violations, provide accessibility, replace deteriorated floors, paint the buildings inside and out, remodel some restrooms and replace some of the ceilings. In addition, a selected Site Committee will explore ideas for some facilities educational improvements. These educational changes will be developed by the instructional staff in conjunction with the selected architect. The estimated cost of work in these buildings is:
 

The total for King Middle School in these two categories is   $7,784,000.

Under the current bond, extensive renovations have been completed in the gymnasium and are being completed in the old industrial arts building. The District has replaced some systems in other buildings. The Willard administrative building, classroom building and cafeteria/auditorium building all need to be modernized. Measure AA will fix code violations, provide accessibility, replace deteriorated floors, paint the buildings inside and out, remodel some restrooms and replace some of the ceilings. In addition, a selected Site Committee will explore ideas for some facilities educational improvements. These educational changes will be developed by the instructional staff in conjunction with the selected architect. The estimated cost of work in these buildings is:
 

Franklin Elementary School has been reopened to accommodate class size reduction and increased enrollment. The District has done selective work to the building in the past 10 years, but has never modernized the buildings. Measure AA will fix code violations, provide accessibility, replace deteriorated floors, paint the buildings inside and out, remodel restrooms and replace ceilings. In addition, a selected Site Committee will explore ideas for some facilities educational improvements. These educational changes will be developed by the instructional staff in conjunction with the selected architect. The estimated cost of work in these buildings is:
 

The Adult School has received very little work over the years. The District intends to modernize the buildings. Measure AA will fix code violations, provide accessibility, replace deteriorated floors, paint the buildings inside and out, remodel restrooms and replace some of the ceilings. Here, too, the District will—with the help of a selected site committee—explore ideas for facilities educational improvements, to be developed by instructional staff in conjunction with the selected architect. The estimated cost of work in these buildings is:
 

The Child Development Center (CDC) sites need a lot of work. The Berkeley Unified School District has three large child care sites: King CDC; Franklin Parent Nursery; and King Education Center (1810 Hopkins Street). Plans for Measure AA estimate two of these sites as new buildings and one as a modernization. Plans do not include transitional housing expenses for any of these sites. The District may need to temporarily utilize space at other sites (possibilities include Franklin and the current East Campus) or minimize the program during construction. The estimated cost of the replacement of the King CDC facility is as follows:

The estimated cost of replacement of the Franklin Parent Nursery facility is:

The 1810 Hopkins Street facility is newer and is generally in better shape than the other two sites. It does, however, need to be modernized. Measure AA will fix code violations, provide accessibility, replace deteriorated floors, paint the buildings inside and out, remodel some restrooms and replace some of the ceilings. We have estimated the cost of the work in this building as follows:

The total for the three Child Development Facilities is

Some improvements are most effectively listed as district-wide. They include four categories: kitchen improvements at elementary schools, fire sprinklers, systems replacement, and grounds improvement at 6-12 sites.

The District currently has two kitchens where food is prepared – those at Jefferson and Willard schools. The School Board has passed a policy to promote the use of fresh and nutritious food at its schools. The Food Systems Project, a citizen/staff committee, has analyzed Berkeley schools for this purpose and has received an architect’s estimated cost of $5,820,000. This estimate includes equipment and facilities improvements. The equipment will be bought from other funds. The estimated capital improvement work is:

The District’s buildings were built and retrofitted according to the codes in force at the time of construction. The fire code has changed recently, and a number of our buildings do not meet current code. The code has required for quite a while that, if a building is of a certain size and if it is constructed of wood, the building must have fire sprinklers. The code permitted concrete buildings to be built without sprinklers or with sprinklers in only certain areas. One example of this type of building is the B Building at Berkeley High where a recent fire caused millions of dollars worth of damage. The BUSD has a number of buildings which fall into this category, including five buildings at Berkeley High, several Willard buildings, at least one King building and five elementary schools. All of these buildings met the code, but now need to be made much safer. Cost for the fire sprinklers is estimated as a separate project. If the bond is successful, work will probably be done in conjunction with the modernization work planned in other categories listed above. The estimated work in these buildings is:
 

The Systems Replacement category includes roofing, painting and floor replacement work at most of our sites.

The total system replacement budget is $13,313,000.

BUSD Middle and High Schools need some exterior improvements. The District needs to upgrade the track at King, improve the softball field at Willard, remove the Longfellow annex and improve the resulting open space, improve many areas at Berkeley High, demolish the old East Campus and improve the open space north of Derby Street. Funds are allocated as follows:

Some of our anticipated costs are best listed as "program costs". These expenses, while very real, are rarely tied to a specific project or a specific site. For example, the cost to issue bonds is not tied to an individual project or site.

The District has planned facilities work which depends upon receipt of approximately $10 million for Berkeley High and King Middle School from the State Office of Public School Construction (OPSC). The District will apply for these projects under the modernization program. The State does not currently have identified resources for BUSD’s eligibility. The State has discussed ways to mitigate this problem, including reallocating funds from other programs, asking the voters to approve additional bonds and using some general fund revenues to fund modernizations. At this point, since the funding is not guaranteed and since the work planned is definitely needed, this $10 million has been listed as an expense.
The total contingency to cover the possibility of a State shortfall is $10,000,000.

The category of inflation recognizes that the value of money changes over time. The total inflation budget is based upon an accumulation of the projected schedules of many individual projects. Measure AA planning estimates a 4% annual inflation rate. The 1992 bond included a 3% inflation rate. Our recent experience suggests that 3% is too low. Inadequate planning for inflation impairs the District’s ability to meet construction commitments. Choosing an inflation rate for a ten year period is difficult, but district staff believe that a 4% rate is prudent, given the amount of public work (the Bay Bridge, Oakland airport improvements, Oakland Unified’s $300 million bond, etc.) planned in the immediate area.
The total inflation budget is $18,950,000.

The term "bond issuance" means the projected costs to issue BUSD’s general obligation bonds. Each issuance incurs costs to compensate financial advisors and pay for advertising and other expenses associated with selling bonds. The District has used experience with the Measure A bonds to predict issuance costs for Measure AA bonds. It is assumed that there will be five bond issuances. If more than five are required, costs will increase.
The total issuance budget is $700,000.

The program management budget includes expenses to the overall program which cannot be specifically tied to a single project. These items include: a 75% Director, a full time clerical position, a part time accounting position, help to prepare State applications for funding, some outside planning assistance, supplies, equipment, etc. The cost per year is $270,000, slightly less than the amount currently budgeted for our Measure A effort.
The total program management budget is $2,700,000.

The risk pool budget is intended to provide some cushion for cost overruns during construction and to provide legal defense for the program. In the past several years, the School Board has recognized that considerable unforeseen expenses can occur in a large construction project. As an example, old, undocumented underground fuel tanks were uncovered on three recent construction sites. Construction can also be highly litigious and the cost for transactional costs must be a part of the bond plan. If the District does not adequately plan for these costs, it will end up deleting projects. The Board’s current Facilities Plan includes a line item for all of these unknowns. It is budgeted centrally and allocated to projects if the need arises. The Board’s current Risk Pool budget is set at 5% of the overall construction program and has proved to be an adequate set-aside.
The total Risk Pool budget is $5,939,000.

The proposed expenses total $125,551,000.

Projects that may be considered if the District receives $10 million from the State.

Funding needs not adequately covered in Measure AA:

Four sources of income are planned: the bond principal, the bond interest, the State’s Deferred Maintenance funds and income from the BSEP Fund 7.

The bond proceeds recommended are $116,500,000. The current plan suggests that bonds be issued as follows:

The Board of Education will need to formally decide each proposed issuance, and the exact timing of construction projects is difficult to predict, but major changes in the issuance schedule are not envisioned, since they will effect both the taxes and the amount needed to be reserved for inflation. The issuance schedule has been constructed so that the bond tax rate will not exceed that which already exists from the currently authorized rate for the 1992 general obligation bonds.

Bond interest can be used for capital projects and for capital equipment purchases. Measure AA plans are that all the interest generated would be used to offset the expense of the construction.
The total estimated income from bond interest is $5,240,000.

The State distributes facilities money to school districts based upon the size of their General Fund budgets. Measure AA plans are predicated on the State maintaining its current level of funding during the Measure AA construction.
The District is planning for a total receipt of $2,430,000 during the next 10 years.

The BSEP tax provides funding for four areas. One of these areas is the School Building Maintenance and Security Fund. Years ago, this fund was used to accomplish projects much like the system replacement and grounds improvement projects listed above. Since FY 1993, in response to a BUSD budget crisis, a large portion of the Fund has been allocated to fund basic positions and supplies in the Maintenance Department If the Special Tax Bond passes, BSEP funds would be redirected to system replacement and improvement projects.
The total income from this source is estimated at $700,000.

The proposed total income is $125,551,000.