1. 2010/11 Construction Projects Update Board Meeting August 17, 2010 Prepared by: Mr. Douglas Barge Mr. Douglas Barge Mr. Art Hand Mr. Art Hand Ms. Carrie Hargis Ms. Carrie Hargis Y:\Business Services\Financial Modeling\Construction Planning\Waterfall #9 \ B08-17-10

2. Table of Contents DESCRIPTION PAGE # A. Opening Comments B. Certificates of Participation (COPs) C. State Construction Funds D. Measure K Project Detail E. Measure L Project Detail F. Closing Comments G. Appendix COPs Debt Service Analysis 1 2 3-4 5-7 8-9 10 A-1 i

3. Opening Comments 1 We will start by reporting on the 2007 Certificates of Participation (COPs) debt and a plan to buy down the debt using the $7.7M the District has received from the State for the Tokay mold abatement project Next we will show an updated construction plan with funding provided To arrive at a funding plan staff has: – Incorporated the impact of previous Waterfall #8 (July 2010 report) – Adjusted funding between projects to cover existing obligations and recaptured resources no longer needed – Accounted for all new income from the State Including paying back temporary borrowing between projects – Accounted for impact of recent Qualified School Construction Bond (QSCB) It is important to remember these funds cannot be used to support general operations

4. Certificates of Participation (COPs) Debt Re-Payment Status ii

5. COPs Debt Re-Payment Status Project Description Debt Svc Pmt COPS Principal Paid B. Tokay Repairs - Local2,868,273 C. Tokay Repairs - State7,731,727 A. Lawrence Repairs$2,900,000$2,497,316 ^ Principal balance equals $3,065,000; Payments will increase to $292,763 during course of re-payment $13,500,000$10,435,000E. Total Williams R.R.M. St Facilities Source 2 * On-Going Annual Pmt $143,669 $143,669 ^ D. Unspent COPs ProceedsCOPs Note: Project increased prior to finalizing sale of COPs 7,590,000 347,684 * Received State funds of $7,771,669 to apply towards repayment of debt

6. Arrival of State Construction Funds iii

7. New State Funds - Received MGMTDESCRIPTIONAMOUNT 8711Delta Sierra Science Classroom1,132,491$ 8712Morada Science Classroom1,179,172 8916Tokay High Addition (Science)1,725,209 8928Lodi High Addition594,260 8958Lodi High Modernization4,571,430 9,202,562$ 3 Total New State Funds

8. Waterfall Summary by Fund 4

9. Measure K Bonds Waterfall #9 iv

10. Measure K Project Detail D. Live Oak(160,000)100,000 Project Description * Waterfall #8 * Change Waterfall #9 A. Elkhorn$600,000$100,000 C. Tokay Colony F. Total Modernization$1,339,271$4,119,271 II. Renovations I. Modernization A. Lodi High $250,000$4,700,000 ($500,000) $2,780,000 B. Lodi Middle300,000 F. Total Renovations$2,100,000$5,825,000 (310,000) $4,450,000 (450,000) $3,725,000 C. Vinewood 550,000275,000 D. Lakewood300,000 (275,000) (250,000) B. Lodi High03,750,000 360,000 260,000 750,000 550,000 50,000 E. Independence North250,000 E. Needham119,271 *Includes approved budget transfers following Waterfall #8. 5 0 0

11. Measure K Project Detail – cont. Project Description * Waterfall #8 * Change Waterfall #9$8,288,006$9,848,782$18,136,788V. Total Projects A. Lockeford$3,000,000$4,375,049 III. Additions $1,375,049 6 *Includes approved budget transfers following Waterfall #8. IV. Other Projects A. Playground Equip. Replace.$315,000 B. Cafeteria Upgrades600,000 H. Total Other Projects$1,848,735$3,817,468$1,968,733 G. Unallocated279,425230,901 C. McNair2,433,043$1,733,043700,000 48,524 $315,000 600,000 D. Bear Creek Phase I(2,834)2,834 E. Borchardt/Larson Painting120,000 F. Morada Bus Loop70,000 0 0 0

12. Measure K Project Highlights Lodi High Renovation – Project will address deficiencies in the classrooms of the schools permanent wings, including flooring, painting and window replacement Cafeteria Upgrades – In cooperation with Food Services, this project will improve the efficiency and aesthetics of the serving areas at Lodi High, Lodi Middle and Morada Middle Schools Borchardt/Larson Painting – Portions of the original paint applications at each of these schools have failed over time. This expanded warranty repair project will repaint each school in total. Independent Study High (North) Renovation – This site requires upgrades in many areas, including sliding replacement, new flooring, handicap accessibility modifications and window replacement. 7

13. Measure L Bonds Waterfall #2 v

14. Measure L Project Detail B. Academy High2,000,000 Project DescriptionWaterfall #1 Change Waterfall #2 A. Future K-6 D$2,000,000 C. Safety Projects1,700,000 $17,568,173$2,311,663$19,879,836F. Total E. Unallocated11,568,17313,879,836 D. Playground300,000 $2,311,663 300,000 8 0 0 0 0

15. Measure L Project Highlights Academy High School - This green technology themed small high school will provide state-of-the-art learning opportunities in a school-of-choice environment Atlas Tract Elementary – Anticipated to be the first new K-8 elementary school constructed in the LUSD Measure L Safety Projects – With the last phase of Measure L safety money expenditures, several North Stockton school sites will receive critically needed fire alarm and intercom replacements 9

16. Closing Comments vii

17. Closing Comments With funding having arrived from the State we can continue with our original plan of paying down the COPs debt Reorganizing existing resources and declaring the new State resources gives the District the ability to move forward with its capital improvement program The projects shown here represent a shift in the District's construction philosophy from new school needs to modernization/ rehabilitation of existing facilities Future state reimbursements for projects such as the Lockeford Addition will become available to support other construction needs Regular updates on the progress of this latest phase of District construction will be provided to the Board and the Superintendent 10

18. The End

19. Appendix Debt Service AnalysisA-1 Project Funding DetailsB-1

20. A-1 Debt Service Analysis

21. Project Funding Details – All Funds B-1