1. THE PROJECTs QSCB FUNDING
Board Meeting
November 17, 2009
Prepared by:
Dr. Washer
Mr. Douglas Barge
Mr. Art Hand, Jr.
Y:BusService;BoardAgenda/ /B

2. Table of Contents Description Page No. Introduction 1
QSCB’s – Use of Proceeds
Cost of Issuance Pays For?
The Projects
QSCB’s – The Repayment Plan
Balancing the QSCB Program
Board Direction
Page No. 1 2 3
4 - 6 7 8 9
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3. Introduction
The District’s application for Qualified School Construction Bonds (QSCBs) funding was approved through the State lottery process on August 28, 2009.
This will allow the District to borrow funds at zero percent interest for years.
Our approved application will provide an estimated $4,390,000 of construction resources that can be used to make improvements at Lockeford, Lawrence and McNair.
The remaining proceeds from the sale will pay for borrowing discounts and the cost of issuance.
At end of that term the funds ($5.5M) must be repaid in full (by a trustee).
Lodi was 1 of 43 districts receiving these awards. 1

4. QSCB’s – Use of Proceeds
Qualified School Construction Bonds
USES
Lockeford Addition
McNair Field Improvements
Lawrence Parking
Cost of Issuance
Total Uses
$5,500,000
$4,350,000
500,000
110,000
$5,500,000 2

5. Cost of Issuance Pays For
Legal Services
Note Rating Services
Trustee Services
Financial Consulting Services
Document Printing
Funding Reserve Insurance
Contingency
Cost of Issuance is limited to 2% of borrowing 3

6. The Lockeford Addition Project
Phase 1 and 2 of this project have been sustainably completed - including renovation of the existing administration building and completion of preliminary site work
Work on Phases 3 and 4
Construction of 7 new classrooms/multipurpose/PE room and the conversion of the existing multi-purpose room to a library/computer lab - cannot begin until additional funding is made available, either through local or state sources
With this funding in place the Lockeford Addition Project can move forward. 4

7. The McNair Field Renovation Project
Among the numerous deficiencies in the original McNair Construction was the grading and preparation of the grass playfields – situations that have lead to sometimes unplayable field conditions
District efforts to maintain the fields in a safe condition have been extraordinary, but the base problems cannot be corrected without substantive additional work, including regrading, reseeding and sprinkler system relocations
With this funding in place the necessary improvements to the McNair playfields can get started. 5

8. The Lawrence Addition Phase 3 Project
Phase 1 and 2 of the Lawrence Addition Project - portable relocation and construction of 20 new permanent classrooms – was finished in July 2008
Phase 3 of this project will provide planned and much-needed off-street staff/visitor parking, additional student drop-off area and a redefinition of the school’s main entrance
With this funding in place the improvements to Lawrence School can be completed as planned 6

9. QSCB’s - The Repayment Plan
Estimated Annual Payments
General Fund will secure payments
Additional Funding Sources
State School Construction Program
Development Fees
Measure K
Total Repayment
$375,260
$3,453,371
$1,989,424
$936,629
$6,379,424 7

10. Balancing the QSCB’s Program
$6,379,424 8

11. Staff Needs Direction
Board Wishes to proceed with the sale of the bonds
The Board will be asked to formally approve all the resolutions authorizing the transaction
Construction planning can proceed
Projects will be completed
The Board is not interested at this time
Projects will be delayed
District will give up its eligibility to participate in the program
Funding for the projects will have to be located
Possible penalties with existing contractors 9

12. The End
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