Proposition MM Implementation Update Report to the Board of Education by Lou Smith, Chief Operating Officer Facilities Management San Diego City Schools November 12, 2002

2 ($’s in millions) Prop. MM Funding Distribution

3 (cumulative actuals through 9/25/02) Prop. MM Expenditures

4 Original and Current Prop. MM Plans Original = 10/98 Current = 8/02

5 Cumulative Expenditure Plans as of 9/25/02 ($’s in millions)

6 What We Did in 2001 What We’re Doing Now Where We’re Going in 2003 More than 58 sites had major repairs and upgrades Working year-round on major repairs/upgrades at nearly 80 sites Major repairs and upgrades begin at 60 more sites More than $154M were awarded in construction contracts Nearly $189M in construction contracts will be awarded by end of 2002 More than $212M will be awarded in construction contracts More than $33M in trade-specific projects at 150 sites 932 trade-specific projects at 176 sites representing more than $37M 396 trade-specific projects at 132 sites representing nearly $18M Prop. MM Progress

7 What We’re Doing Now Program management costs at 6.8% (industry average is 8-10%) Standardized costs and budgets for furniture and equipment nearly complete New schools New facilities at existing schools Acquiring land for new schools Brooklyn/Kimbrough area Cherokee Point Elementary School Herbert Ibarra Elementary School Scripps Ranch Middle School Lincoln High School (expansion & rebuilding) Demolishing structures for new Cherokee Point Elementary School and new Brooklyn-Kimbrough area elementary school site Planning physical consolidation of Facilities Management

8 Outreach Approximately 97% of Proposition MM contracts went to San Diego firms SBE and EBE outreach (as of June 2002) Approximately 41.6% of total construction dollars went to EBE firms Nearly 19.6% of total construction dollars went to DBE/WBE/DVBE firms

9 Process Improvements Formalized monthly program management reporting cycle implemented September 2002 Facilities Assessment Contract Approved February 2002 Completed by February 2003 To date, the average change order rate is 4.35% for 2002 projects Evaluating open contracts with service providers (fees and services)

10 Innovations Teaming with the City and community groups San Diego Model School Joint Powers Authority Memorandum of Understanding for Joint Use Implementing design/build project delivery method Partnering with Division of State Architect Dramatic increase in DSA approval time Peaked at 42 weeks in March/April 2002 Five Partnering sessions since February 2002 Marked decrease in approval time, 11 weeks in August/September 2002 Lincoln-Gompers Redevelopment Committee

11 Accomplishments Regional Golden Watchdog Award Efficient use of taxpayer dollars American Planning Association Award First place for “Focused Issue Planning” National press coverage American School & University Magazine Fourth anniversary of Prop. MM Four new Prop. MM libraries opened

12 More than $365.3 million expended since the beginning of the program through September % of Prop. MM funds Averaging $1 million a day in construction work-in-place Completed FEIR for Edison/Hamilton/Parks Elementary School Completed relocation plans Brooklyn/Kimbrough area elementary school Cherokee Point Elementary School Herbert Ibarra Elementary School Total Program Cost Forecast Model Second quarterly forecast complete What We’ve Done Since the Last Update

13 Program Costs Third quarter 2002 Total Indicated Cost Model update nearly complete Continued significant upward cost pressure on new school land and construction

14 T.I.C.–Forecast Summary (as of third quarter 2002)

15 T.I.C.—Program Element Variances

16 T.I.C.—New-School Forecast Summary

17 New-School Costs--Original Program Land acquisition $18 million (9 acres x $2M per acre) Construction costs$10 million Non-construction costs $2 million Total$30 million ORIGINAL COST ESTIMATES

18 Program Cost and Scope Pressures Land acquisition Changes in ADA specifications Scope creep Construction costs

19 Escalating Land Costs YearSchool$ Per Acre 1996E.B. Scripps$.5 million 2001Cherokee Point$2.5 million 2002 (pending) Adams/Franklin$3.7 million

20 New-School Cost Pressure Options/alternatives Scope Cost Additional Resources Cost management action plan District staff developing options/alternatives Working with stakeholders and ICOC to form possible scenarios Formulating a plan to present to ICOC and Board of Education

21 Short-term Goals Develop new school cost management action plan Begin demolition for Herbert Ibarra Elementary School Designate final new school Complete FEIRs and begin acquiring land for seven new schools (eight w/Adams/Franklin which is going to the Board in December 2002)

22 Challenges New schools cost pressure Control “scope creep” to ensure completion of all program requirements Environmental requirements Removal actions may be required at two sites Pre-acquisition Preliminary Endangerment Assessments needed at two sites Post-demolition PEA’s needed at a majority of sites Occasional “unwilling sellers” requiring eminent domain condemnation proceedings Continued funding of district’s Major Repair & Replacement Program

23 Last Proposition MM School