1. CMSD Master Facilities Planning Segments 8 & 9
Cleveland Metropolitan School District
June, 2018

2. AGENDA
Update on School Facilities Plan
Advocacy and Support Needs
Next Steps

3. BACKGROUND
Last Master Plan Update passed by the Board of Education was on June 24, which called for the construction of 20 to 22 new schools
New schools are built in partnership with the Ohio Facilities Construction Commission (OFCC)
In November of 2014 voters passed Issue 4 which provided $200 Million for school construction
CMSD worked with the OFCC to determine number of schools to be built in Segments 7, 8 and 9

4. State Funding Formula Since 2002:
OFCC provides 68 cents and CMSD provides 32 cents for every dollar of new construction
The formula is based on the poverty rate
In 2002 Cleveland was ranked in the 32nd percentile of poverty in Ohio = 32 cents share for CMSD
If we followed this formula today, Cleveland would be in 12th percentile = 88 cents from the OFCC and 12 cents from CMSD

5. How Schools are Built
Schools designed using the Ohio Design Manual (ODM)
District school construction project is broken into segments
Each segment agreement is mutually agreed to with the OFCC
Each segment agreement sets a timeframe for construction and the number of schools within the timeframe
Under Issue 14 (initial construction bond in May, 2001) there were six segment agreements

6. Locally Funded Initiative (LFI)
The State funds support the design elements of the school mandated by the Ohio Design Manual (ODM).
The District pays 100% of what the State does not fund
Construction costs are higher in Cleveland
Since 2002 the State has provided "market conditions adjustments”
In segments OFCC provided 12% - 16% “market conditions adjustments”

7. Issue 4 Designed to fund 3 more building segments:
Segment 7, currently under construction
7 PreK-8 schools and 2 High Schools
Was scheduled for summer of 2016
Segment 8 is planned for 8 schools
Was scheduled for summer of 2017
Segment 9 is planned for 5 schools
Was scheduled for summer of 2019
Segment 7 Schools (9 sites) Segment 8 Schools (8 sites) Segment 9 Schools (5 sites)
William Rainey Harper MacArther GLA Tremont
Ward 1 PreK-8 (Whitney Young/C. Elliot) Valley View BLA Clark
Fullerton Marion Seltzer Denison
OH Perry Marion Sterling Iowa-Maple
Sunbeam Case Michael R White
H. Barbara Booker Bolton
Waverly Lincoln West HS
JFK Campus Joseph Gallagher (renovation)
West Side HS

8. OFCC Leadership Change
Spring OFCC leadership signaled change in past practice for “market conditions adjustment”
Segment 7 agreement was in effect with both parties having signed it:
CMSD on April 4, 2015
OFCC on August 17, 2015

9. May 2016 – April 2017 CMSD, OFCC engage in talks to resolve issues:
After 11 months of negotiations OFCC agrees to a 7% “market conditions adjustment” (well below adjustments for Segments 1-6)
This lower market adjustment resulted in approximately $10 Million in extra costs for CMSD
Delays in construction caused by this lengthy negotiation cost the district an additional $384,000.00
Both sides agreed to turn their attention to Segment 8 with a focus on a more reasonable and appropriate “market conditions adjustment”
Both sides- District & OFCC there re

10. July 2017-April 2018 OFCC informs CMSD of decisions:
Segment 8 adjustment to be .007% (less than 1%) resulting in a $255 per square foot cost
The last time CMSD could build a school for $255/square foot was 10 years ago in 2008
After months of negotiations between the OFCC and CMSD, with no progress, the District made the determination to stop the construction program

11. Why “Market Adjustment” Matters
IMPACT $34 Million $10 Million additional costs $24 Million additional costs

12. Why “Market Adjustment” Matters
Plain Dealer Story:
Reported on June 11 that the State says they are giving CMSD 7%
CMSD has submitted a formal public records request to the State to acquire any documentation to support this statement.

13. If True “Market Adjustment” Still Matters
IMPACT $22 Million $10 Million additional costs $12 Million additional costs (estimated)

14. If True, then……… CMSD must still cover an estimated:
$10M (segment 7) + $12M (segment 8/9) = $22M

15. Questions so far?

16. Bond Accountability Commission Report
March, 2018
Bond Accountability Commission Report
BAC report recommends CMSD Board of Education revisit the Master Facilities Plan, considering the plan:
Was approved four years ago
Was based on data developed two years prior to adoption
Should account for demographic changes and academic program needs over the last 6 years

17. WHAT IS CMSD DOING ABOUT IT
MAY – JUNE, 2018
May
Meetings held at schools for staff of Segments 8 and 9
Letters to parents and outreach to key constituents
Awareness campaign launched (website, traditional, social media, PD Editorial Board, Advocacy groups)
June
Meetings to inform community of current situation (Schedule mailed, posted, advertised)

18. WHAT’S NEXT AUGUST – DECEMBER, 2018 August – November
Meetings to engage community in updating the facilities plan for Segments 8 and 9
Continue the negotiation of a fair “market conditions adjustment” with OFCC
December
Updated plan submitted to the Board of Education for approval

19. WHAT’S NEXT AUGUST – DECEMBER, 2018
Once an updated master plan is approved and the District obtains a fair “market conditions adjustment” construction will resume

20. HOW YOU CAN HELP! Questions?
Write letters to your Ohio legislators-samples are on the information table and located on the district website
Spread the word so others can attend the remaining community meetings in June
Attend OFCC Conference in Cleveland on August 16th in Independence, Ohio and their regular quarterly meeting on October 25th in Columbus, Ohio
Attend the Fall Community meetings to revisit Segments 8 and 9
Stay connected by filling out the “We’re listening!” form
Check out regular updates posted to the district site Clevelandmetroschools.org/buildingplan
Questions?
How Can You Help

21. Final Questions?