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Valley View Local School District

School Construction Bond Issue

Proposed Bond issue in


principal amount of $27,455,000
over 38 years (5.39 mills)
Agenda
Welcome & Introductions
Background
Presentation of Proposed Plan
Q&A
How did we get here?
In 2008, community voted no to new
school buildings on one campus.
In 2015, Valley View LSD paid Fallon
Research & Communications Inc. to conduct
a district facilities survey.
300 registered voters were surveyed
2015 Survey Results
Question: Do you think VVLSD school
buildings and classrooms are:
Good facilities that need no major
improvements
Adequate facilities that need some
updating, but no rebuilding
Poor facilities that need to be replaced
2015 Survey Results
Question: Do you think VVLSD school
buildings and classrooms are:
Good facilities that need no major
improvements
Adequate facilities that need some
updating, but no rebuilding *
Poor facilities that need to be replaced
* Majority response
2015 Survey Results
Question: When specifically asked about
each of the buildings individually and to
consider if they should:
Replace
Renovate
Close
2015 Survey Results
Question: When specifically asked about
each of the buildings individually and to
consider if they should:
Replace
Renovate*
Close
* Majority response when considering the Primary
School, Intermediate School, Junior High School
and High School
2015 Survey Results
Question: Do you agree or disagree that it is
a good idea to continue to spend money on
repairs for most of the current buildings, in
order to preserve them and prolong their
use?
Agree
Disagree
2015 Survey Results
Question: Do you agree or disagree that it is
a good idea to continue to spend money on
repairs for most of the current buildings, in
order to preserve them and prolong their
use?
Agree*
Disagree

* Majority response
How did we get here?
In November 2016, the community again
voted no to three new facilities
($27,455,000, 38-year term, 5.39 mills)

May 2, 2017, the community is being asked


to vote for the same bond
Proposed Bond issue in
principal amount of $27,455,000
over 38 years (5.39 mills)
Ohio Facilities Construction
Commission (OFCC)
Formerly known as the Ohio School Facilities Commission (OSFC)
What is the OFCC?
State organization
Guide capital projects for state agencies,
state universities, community colleges, and
Ohio public K-12 schools
What is the Ohio School
Design Manual (OSDM)?
When using OFCC funds, school building
projects (rebuild/renovate) must follow the
OSDM.
One-size fits all approach
OFCC assessment consultants look at each
building separately; however, costs are
determined by a boiler-plate assessment
guideline.
Eligibility from State
We are considered a lapsed district
because the state has come to the district
before (in 2008) with its offer and the bond
issue was rejected. That caused the district
to move to the bottom of the States list.

spartanpride2017.com
Eligibility from State
Since 2008 the state has offered other districts
in Ohio funds to help construct new buildings.
The State contacted the district in 2016
because the district eventually moved up on
the states list. The district can only secure the
states funds if it has a current offer on the
table. If the bond issue does not pass on May
2, Valley View will move back down on the list.

spartanpride2017.com
Current Eligibility per OFCC
Valley View lapsed an offer of funding made
in 2007. Under state law, they are eligible for
state money as soon as they raise their local
share.

Rick Savors, OFCC
Current Eligibility per OFCC
The expected costs will change, however,
based on inflation factors. And there is
usually a change in the local and state
percentages, as these are based on the
districts position in the states eligibility list,
which is updated every year by the Ohio
Department of Education.

Rick Savors, OFCC
Current Eligibility per OFCC
Due to a number of factors, the
Commission makes no guarantee on when
funding will become available. By law,
however, any lapsed district that has raised
their local share has top priority for funding
at the next distribution of funds by OFCC.

Rick Savors, OFCC
Current Eligibility per OFCC
If the district does not raise its local share
within a 13-month period starting in July
2016, then another evaluation would have to
be done. It is immaterial whether the project
is new construction or renovation.

Rick Savors, OFCC
Building Assessments
$23.5M
$11.6M
$19M
$8.8M
Projected Enrollment 1,704
State Recommends to Abate/Demolish All Buildings

114% 91% 103% 99%

Current Square Footage of Buildings = 271,043


Total abatement and demolition cost $7,987,877.92
Square Footage of New Buildings = 240,631
Germantown Middle/High Farmersville
PK-3 7-12 4-6
New Construction $56.7 Million
Abate/Demolish $8 Million
Total Project $64.7 Million
How will it be paid for?

Total Cost $64.7 Million


State Share - $34.3 Million
Cash from PI - $2.9 Million
Local Share $27.5 Million

38-year 5.39 mill bond on May 2 ballot


Key Points
We have to do something.
Yearly cost for $100,000 tax valuation $188.65
This is like a mortgage and does involve interest.
We will need another operating levy within a few
years (2020), whether or not this bond passes.
The renovation costs seem high.
How does the State arrive
at these figures?

Experience
The Commission is currently working with, or has
completed all necessary work in, two-thirds of the
states 611 school districts and has opened over
1,140 new or renovated educational facilities.
ofcc.ohio.gov
How believable are their figures?
OFCC Assessment Cost Guidelines
Rooftop (HVAC) units that are over 10 years old are to
be replaced.
Replace membrane roofs that are (7) years old or older.
Replace asphalt shingle roofs that are (10) years old or
older.
If electrical system is over 35 years old, replace entire
system.
Toilets/Urinals $3,800 each
Sinks $3,800 each (ADA)
Basketball backboard replacement $6,500 each
Exterior water hydrants $1,400 each
Replace the playground at Farmersville JH: $342,510 for
7th and 8th graders that dont have recess.
How believable are their figures?
OFCC Assessment Cost Guidelines
HS cafeteria is 4,664 SF compared to 4,667 SF
recommended by the OSDM
HS Administrative area is 1,245 SF compared to 2,600 SF
per OSDM
HS sits on 29 acres, 41 acres required by OSDM
Farmersville sits on 9.85 acres, 14 required by OSDM
Germantown sits on 20.85 acres, 27 required by OSDM
What is a reasonable lifespan for a
new building?
According to OFCC, With reasonable
upkeep and maintenance, building systems
should last at least forty years. The building
structure is expected to last well beyond
that.
According to the architect that has been
guiding the school district, 45-50 years.
An attempt was made to replace the HS at
38 years of age, and again now at 48
2000 Addition to the High School
17 years old, 11,063 SF
State assessment says renovate/replace is
48%
17 / 48% = 35 years to 100%. Sound familiar?
OFCC estimate is $1,252,125.31
That is $73,654 per year in upkeep ($6.65/SF)
Financing
Fair estimate of average annual
interest
ASSUMPTIONS:
Tax valuation: $286,667,180
Interest: 4.00%
Maximum maturity (Years): 38
Issue size: $27,455,000

First Year Interest: $1,098,200


Last Year Interest: $28,900
Average annual Interest: $563,500

Was on spartanpride2017.com when first


launched in Jan. 2017, but was later removed.
Fair estimate of average annual
interest
We will not know average interest or total
interest cost until we issue the debt. The
annual average they published ($563,500)
is a fair estimate but subject to a very wide
margin of error. We will reach out to the levy
committee to help clarify the numbers on
their website. Dan Schall, Treasurer

$563,500 x 38 years = $21,413,000


Fair estimate of average annual
interest
The interest rates will be fixed and determined
after the levy passes and the bonds are sold.
Once the bond levy is approved by the voters,
the bond underwriters will package the bonds
for sale at laddered fixed interest rates and
maturities. We will not know the exact amount
of interest until after the bond levy is approved
and the bonds sold to investors. The district will
make principal and interest payments semi-
annually. spartanpride2017.com
How will it be paid for?
Total Cost: $64.7 Million + Interest
STATE

CASH (PI)

LOCAL

0 10 20 30 40 50
OFCC FUNDING ($34.3M) VVLSD PI ($2.9M) BOND PRINCIPAL ($27.5M) BOND INTEREST ($20M+/-)
Concerns
Asbestos
Jan. 2017 Dayton Environmental Testing,
LLC Periodic Surveillance Report for
asbestos
All four school buildings:
No changes in the condition of ACBM
No recommendations to remove or abate
ACBM
Valley View Primary School
Valley View Intermediate School
Valley View Junior High School
Valley View High School
Hazardous Materials
OFCC policy is to remove all hazardous
materials. (per OFCC Assessment Cost
Guidelines)
Facility assessment (High School) showed to
remove Zonolite Insulation in block walls
($2,467,000) and
Brick/CMU Exterior Wall replacement following
abatement of Zonolite/vermiculite ($1,350,528)

Total: $3,817,528 (abatement in block walls)
Hazardous Materials
Zonolite Insulation is the trademarked
name of a product sold as attic insulation
between the 1940s and 1990s. Consisting of
the naturally occurring mineral vermiculite,
Zonolite was used for decades to insulate
millions of American homes.
epa.gov

DO NOT DISTURB IT!


Air Quality
Does the Air in Your Home Make You Sick?
In connection with the HVAC concerns, the air quality in all
buildings is well below optimal and safe for students. Today,
most modernized buildings have an air handling system to
protect against allergens, bacteria, molds, carbon monoxide,
radon.
We have many staff and students who have symptoms of
illness while in the buildings but are not afflicted with the same
symptoms when outside of the buildings.
Just recently, teachers and staff in neighboring schools have
begun to speak up about asbestos contamination, mold and
high levels of carbon dioxide inside their classrooms and how it
has affected their health and the inability of students to learn.

Was on spartanpride2017.com when first launched in


Jan. 2017, but was removed on March 16, 2017.
Valley View Junior High School
3rd Floor Classrooms
Proactive testing in response to
faculty air quality concerns
Valley View Junior High School
3rd Floor Classrooms
Proactive testing in response to
faculty air quality concerns
Air Conditioning
For all of our buildings, the existing heating and
cooling systems cost us unnecessary dollars
each year. There is virtually no way to predict
the mounting costs of utilities on an annual
basis due to the inability to foresee the costly
and unique problems that arise in each building
each year. spartanpride2017.com
Increase in District operating expenses.
Currently, three buildings have $0 towards
cooling. This will need to be considered for the
next operating levy.
Air Conditioning
Modernized systems in new buildings would
allow the district to operate more efficiently,
effectively, and predictably when it comes to
energy costs. spartanpride2017.com
New Systems
More sophisticated
Maintenance costs will be higher in newer
building. (Operating/maintenance costs at
the current high school is higher than our
older buildings.)
Local school just recently replaced two
chiller systems ($170,000 each) at the same
time in two 10 year old buildings.
Another local school, spent $96,000 to
replace a chiller in a 13 year old building.
Terrazzo flooring
If Terrazzo floor repair exceeds 300 SF, budget for Vinyl
Enhanced Tile Flooring (VET) or carpet instead (per
OFCC Assessment Cost Guidelines)
We have high quality materials in our current schools, that
will most likely be replaced with lesser quality materials.

Vinyl Enhanced
Terrazzo Tile Flooring
Flooring
Contingency Money
The State only pays for block buildings. Is
Valley View upgrading to brick?
The State will only pay for flat roofs. What is
Valley View getting?
The State will only pay for a high school gym
large enough for the buildings students and
staff which is projected at 646 seats. This
about half of what we currently seat. Will the
District upgrade?
Contingency Money
The State wont pay for an auditorium. Will
Valley View have an auditorium?
How much will the water and sewer line at
the new 7-12 building cost?
Options
OFCC will pay for renovation
Based on community input, districts may
choose to retain and renovate a historic
structure that is assessed at over two-thirds.
OSFC will co-fund this expense up to 100% of
the cost to construct a new facility. Any
expense over that amount is solely funded by
the school district. ofcc.ohio.gov
The district can apply for a waiver to renovate,
and OFCC will consider the request.
Rick Savors, OFCC
OFCC Segmented projects
School districts can work on individual
buildings separately and still receive funding
from the State.
OFCC refers to this as a segmented project.
The minimum size for a segment is one
building.
The percentages of funding and rules
regarding the cap on renovation costs remain
in place.
Rick Savors, OFCC
Renovate vs. Refurbish
It should also be noted that the renovation of a
building is not the same thing as refurbishing a
structure. In addition to upgrading finishes such as the
paint, the lights, the floor, etc., renovating an existing
structure to the requirements of current educational
programming almost always means the
reconfiguration of the inside of a building -- moving
walls, redesigning floor plans, and other such
requirements. Those requirements can have
significant costs, means that it is likely the district will
take on a higher burden of the cost of the project.

Rick Savors, OFCC
Definitions
Remodel: to alter the structure of : remake
Renovate: to restore to a former better state (as by
cleaning, repairing, or rebuilding)
Refurbish: to repair and make improvements to
(something, such as a building)
Maintain: to keep in an existing state (as of repair,
efficiency, or validity) : preserve from failure or decline
: to keep (something) in good condition by making
repairs, correcting problems, etc.

Mirriam-Webster Dictionary
Competitive Bids
Custom analysis for costs from more than one
A/E firm
Creative thinking, problem solvingnot boiler-
plate assessment
Prioritize items within a budget that the District
can afford

2016 Ohio Dept. of Education


Valley View District Profile Report
Median Income $37,399.00
Average Income $56,884.00
Yes Vote
Demolish all four existing buildings.

Build three new buildings per OFCC and OSDM costs and
guidelines.

38-year bond, 5.39 mills, $27,455,000


State ($34.3M) + PI Cash ($2.9M)
Total project cost: $64.7 Million + Local share interest ($??M)
No Vote

No does not mean you are against the schools.


You are against the proposed plan on the May 2 ballot.
Back to drawing board; six more months to plan
Start thinking about a plan that you would be willing to
vote for. Voice those ideas.
More than one cost comparison/assessment for work
to be completed from other A/E firms?
Refurbish/maintain? Renovate? Build/renovate in
segments? Use or dont use OFCC funds?
Community
We all want what is best for the students and
community.
Doing nothing is not the answer.
If not this plan, then the community needs to
work together to come up with a plan that
will pass.