FACILITIES & FINANCING: THE GOOD, THE BAD, AND THE UGLY... Jennifer Afdahl Rice Jonathan Dean, Ed. D. David Sciaretta, Ed. D. March 2015
Agenda The O Farrell Charter Schools Albert Einstein Academies Public Safety Academy Project Team Project Budget Lender Review Project Timeline 2
The O Farrell Charter Schools Existing TK-12 facility sits on 29 acres: 14 elementary classrooms; 38 middle school classrooms; 13 high school classrooms; 1 Blended Learning Classroom (Ingenuity Charter School) One of two AVID National Demonstration charter schools in the nation One of twenty-two schools in the nation nominated for ENCUST award 3
Description of Project & Reason The O Farrell Charter School was petitioned by staff, parents, and students to expand the middle school into both an elementary and high school: *Middle School in 1994 *Elementary in 2011 *High school in 2012 4
Description of Project & Reason To construct a 21 classroom high school, administrative office, gym with cafeteria style eating, and 88 space parking lot on the south 7 acres of the campus. The O Farrell Charter School is out of classroom space with enrollment of 1,500 and a wait list of 800 students Outperformed all middle schools and high schools in the area 5
Project Sources, Uses, & Financing Obtained Resources: 1 million from O Farrell Charter School Reserves 24 million from Prop Z funds 1 million out of reserves for turf fields (Prop S) 6
The Good First Prop. Z project fully funded Demonstrates good faith effort between SDUSD/Charters Taking care of All students Minimal cost to charter? -$1 million Great deal of input from the district 7
The Bad Can t control costs Timelines tend to creep Student anxiety towards completion 8
The Ugly Unforeseen Complications which I have no control over Cost continues to rise due to lack of extensive investigation of the scope of the project. 9
Lessons Learned Make sure you have a plan with all stakeholders involved Sell your plan to the community Stay active in the community and collaborate extensively Have a financial plan that retains reserves 10
11 Before
12 After
About Us 13 AEA operates two, International Baccalaureate, public charter schools in urban San Diego Our elementary (K-5) school has an enrollment of 650 and our middle school (6-8) of 500 Our growth projections include a combined enrollment of 1,350 within two years One of our campuses is a Prop. 39 site owned by SDUSD, and our middle school is housed in our new privately-held facility AEA High School -coming Fall 2017
Project Description The project involved purchasing and extensively renovating a 4-story hospital that had been vacant for years. The reason for the project was to accommodate enrollment growth as well as to design a building around the specific needs of the instructional program in our middle school. 14
Sources & Financing We financed the project using tax-free municipal bonds. We worked with a bond underwriter (Baird Financial) Total project cost: $15.8 million (including purchase and renovation) 15
The Good 16 Project was completed ahead of time and under budget. Building is beautiful and has contributed to changes in the immediate neighborhood surrounding the school. Building has spurred additional investment in the area (parent-owned café) Many elements of the building design have facilitated collaboration and exploration, hallmarks of Einstein s educational program.
The Bad Due to not paying prevailing wages both campuses were picketed by local trade unions. Some of the technology, especially related to instructional systems and communications (including alarm systems, etc.) had glitches. Very tight timeline: December 15 groundbreaking, August 25 open for business Conditional Use Permit (CUP) with City 17
The Ugly Purchase of some excessive technology that may have been overkill and may not be used to optimum level Agreeing to engage in pilot case study with company for air conditioner (in exchange for installing state-of-the-art equipment) Taking design shortcuts to save money 18
Lessons Learned Assemble a top-notch team! Importance of Construction Management professional Provide continuous updates to the school community as well as community-at-large There is no such thing as a perfect facility, no matter how new 19
20 Before
21 During
22 After
23 After
24 After
25 After
Public Safety Academy Founded in 2006 Middle & High School Located in San Bernardino Prepares students for careers in law enforcement or fire service WASC Accredited Enrollment 368 26
Consolidation Project Consolidating middle school and high school on one site Total project cost $1,069M Leased Modulars Project Costs - Soft costs related to modulars Financing from Pacific Western & equity from school 27
The Good Combined campus and operations Able to obtain financing despite lack of collateral 28
The Bad Project ran over budget School opening had to be delayed by a week, though it could have been longer 29
The Ugly -Engineer Established Engineer experience in San Bernardino & with modulars, though not with charter schools Major issue with ADA compliant ramp (switchback design needed) No construction site management performed despite contract Claim against engineer s E&O insurance 30
Lessons Learned Start early Project Team is critical Onsite management requirements must be met 31
32 Before
33 During
34 After
35 After
Project Team Charter School Representatives Architect Project Manager General Contractor Attorney Consultants Lender 36
Project Budget Acquisition Costs Hard Costs Soft Costs FF&E Financing Contingencies 10%-20% Hard Cost 5% Soft Cost
Lender Review Character history of school & team Cash Flow profitability, ability to cover payments Collateral security for loan, equity contribution, likelihood of building reuse Credit bill payment Competition other district, charter, independent schools 38
Project Timeline
Project Timeline Continued Project Description Varies Team Selection Varies Site Acquisition/Issues Varies Schematic Design 4 weeks Design & Development 4 weeks Construction Documents 18 weeks Financing Varies Bidding & Permits 4 weeks Award Contract 3 weeks Construction 14 months + 2-5 months Move In time 1-2 months
Contacts Jennifer Afdahl Rice CSMC 101 W. Broadway Ste. 231 Oakland, CA 94607 888-994-CSMCx248 jafdahlrice@csmci.com Jonathan C. Dean, Ed. D. The O Farrell Charter Schools 6130 Skyline Drive San Diego, CA 92007 760-214-7719 jonathan.dean@ofarrellschool.org David Sciaretta, Ed. D. Albert Einstein Academies 3035 Ash St, San Diego, CA, 92102 (Elementary School) 458 26th St, San Diego, CA, 92102 (Middle School) 619-209-9753 dsciarretta@aeacs.org