LGUSD Measure E Lexington Elementary Discussion October 18, 2011 Board of Trustees Meeting

Leslie Paulides, Assistant Superintendent Business Services/CBO Mike Kleames, Pacific Crest Engineering & Alan Kropp & Associates

Meeting Topics
!

Highlights from October 4, 2011 Board Update (Discussion Item) ! California Geologic Survey (CGS) Letter Proposed SCOPE of work to respond to CGS letter
! !

Timeline and cost implications Likelihood of CGS approval (Engineers)

! ! !

Updated Lexington Cost Forecast Bonding Capacity and Measure E (Prop 39 Bond) Compliance Decision Scenarios

Highlights from October 4, 2011

!

California Geologic Survey (CGS) letter responding to geotechnical reports submit for Lexington received midSeptember
! !

Required to have CGS approval before DSA (Division of State Architect) can approve plans to begin construction More information required for CGS to agree with consultants findings of no underlain landslide or fault

! ! !

Geotechnical history reviewed Lexington de-scope to reduce costs options reviewed from September 20, 2011 Board meeting Board direction for today
! ! !

Understand Bond flexibility Provide scope and timeline implications of CGS response proposal Outline scenarios for decision

Proposed SCOPE of work to respond to CGS

!

Fault or No Fault
!

Carbon test a sample from trenching above shear

! !

If > 10,000 years old = Holocene period. No fault. Done If < 10,000 years old = Post Holocene
!

Trench for evidence of Fault

! !

None Circular building envelope set-back Found 50 foot on each side of fault rectangular set-back

Building Set-backs
! !

Circular would effect multi and admin building locations Rectangular (less likely) depending on findings could effect location of more buildings

Proposed SCOPE of work to respond to CGS

!

Landslide or No Landslide/Slope Stability

!

Offsite trenching to identify if contact on new landslide (1931 pre-highway 17 aerial photos) is depositional or a basal shear a landslide contact or not
! !

If not a contact, CGS should be satisfied If CGS maintains landslide interpretation, more work likely

Old landslide - Assume yes and perform low, medium and high material strength Finite Element Analysis (FEA) for ground deformation ranges across several cross sections
!

Acceptable Slope Stability results

Ground displacement 15cm or less ! Expected to satisfy CGS
!

Ground displacement >15cm

!

KEY Decision point on moving forward with CGS

Geotechnical Proposal

Updated Lexington Project Forecast

a) Complete re-estimation of constructions costs working with HMC estimators after 50% construction drawings complete using current cost for material, labor and equipment and re-assessing escalation contingency b) This forecast DOES NOT INCLUDE any costs for further remediation of geo-tech finding (e.g. thicker mat slab foundation, re-design of building footprint, etc.)

Measure E Compliance/Bonding Capacity

!

Bond Language
!

Citizens Bond Oversight Committee CBOC

!

To inform the public concerning the expenditures of Bond revenues. The committee shall actively review and report on the proper expenditures of taxpayers money for school construction.

! !

Annual independent performance audit Project list

!

Must use according to list in resolution #11-09-10

! !

Arbitrage must spend funds within 3 years of issue Bonding Capacity

! ! !

1.25% of Assessed Value CDE waiver likely Current remaining $10M with $18M forecasted by 2015 Unissued Measure E Bonds $15.2M

Ballot Language Summary

June 8, 2010 Los Gatos Union School District To accommodate increasing student enrollment and continue modernizing elementary and middle schools in the Los Gatos Union School District by creating additional classrooms and school facilities to avoid overcrowding; providing science labs; improving energy efficiency and fire safety; replacing aging portable classrooms and infrastructure; and improving student access to information technology; shall the Los Gatos Union School District be authorized to issue $30.9 million in general obligation Bonds subject to an annual audit and with an independent citizens oversight committee? Bonds - Yes Bonds - No

DECISIONS
!

Scenario1 - Continue with June 2012 probability

! !

Approve additional geotechnical work Total estimated cost $300K assumes no remedial work or time delay Approve additional geotechnical work $300K Accept escalation delay - approximate $800K No remediation costs forecasted (unknown at this time) How to fund ?
!

Scenario 2 Accept 2013 delay and sequence work

! ! ! !

Special reserve funds Balance $2.7 Million

Scenario 3 No approval on geotechnical continuation

! ! !

Keep IB program running and intact at Lexington site Routine maintenance on Lexington site Begin Phase 1 of long term facilities master plan ASAP with top priority to address district facility and capacity needs