1. Division Update Labor-Management Meeting August 27, 2009 LAUSD Facilities Services Division

2. 2 The Dark Ages -- 1997  Last Bond In 1963  Little Facility Investment In 30 Years  Enrollment Increase Of 200,000 Students  Portables For Classroom Space  Deteriorating Facilities

3. LAUSD Bond Program Overview  80 New K-12 Schools Completed  19,000 Modernization Projects Complete  5 MW Of Renewable Energy Installed By Years End  239,000 Jobs  10,000 Workers Daily  $12B In Wages  $1.2B In Local And State Taxes

4. Results Beginning to Show  Test Scores Up  District-wide Graduation Rates– Up 5.3 % From Last Year  Belmont Zone  Belmont -- 66% In 07/08 To 79% In 08/09  Miguel Contreras -- 92%  Roybal -- 88%  West Adams Prep 93%

5. We’re On Track But We Haven’t Delivered The Promise Yet 51 New Schools And 6 Additions 90 Schools Back To 2,500 Repair & Two-Semester Operation Modernization Projects

6. Program Funding Overview Proposition BB - 1997  $2.4 Billion Measure K - 2002  $3.35 Billion Measure R - 2004  $3.87 Billion Measure Y – 2005  $3.985 Billion Measure Q - 2008  $7 Billion  $13.6 Billion Leveraged Into $20.1 Billion  2-Semester Neighborhood Schools  Upgrade Our Aging Schools  $ 1Billion of State IOUs  $70M Developer Fees Delayed  Delayed Until 2015  $700 Million Delayed Until 2015 Still Delivering On The Promise!!

7. Current Funding Status  Approximately $12 Billion Of Bond Authority  Ability To Issue Bonds Restricted Due To Debt Limit  $800 Million Of Measure Y Can Not Be Accessed  ALL Measure Q Bonds Unavailable For Another 4-5 Years  Amount District Can Issue Declines Yearly  Result Of Drop In Assessed Valuation And Debt Capacity Reduction  Cash Availability Has Become Critical Factor  Timing Of Funds Receipt Vs. Planned Expenditures  Current Program Can Be Completed  Requires Sale Of $3.9 Billion Local Bonds In FY 09/10  Board Of Education Approved Issuance of $1.9 Billion  State Match Funds Or Alternative Financing Required

8. Assessed Value Forecast

9. Economic Impacts On Bond Issuance Projected Issuance At Time Of Measure Q ElectionProjected Issuance After Beacon Baseline

10. Funding Strategy – Deferred Payment Plan $ In Billions 17 New Construction Project Contracts

11. Funding Strategy Options  Sell $3.9 B In K, R, & Y Bonds This Fiscal Year  Board Action In September On State Cash Flow Challenge  Delay Projects Until State Money Is Available  Provide Bridge Financing Through District COPs  Use Third Party Financing For New Construction Projects

12. Current Program Workload Existing Facilities Pre-Bid

13. 13 Current Program Workload Existing Facilities In-Construction

14. Existing Facilities Major Projects Bidding --Projected Construction Work Quarter Fiscal Year ProjectsContract Value 1 st Qtr 09/1032 Projects$66 Million 2 nd Qtr 09/1055 Projects$50 Million 3 rd Qtr 09/1023 Projects$21 Million 4 th Qtr 09/1076 Projects$90 Million 1 st Qtr 10/1126 Projects$37Million 2 nd Qtr 10/1120 Projects$13 Million 232 Projects$280 Million

15. Existing Facilities Other Projects Bidding -- Projected Construction Work Quarter Fiscal Year ProjectsContract Value 1 st Qtr 09/10391 Projects$33 Million 2 nd Qtr 09/10428 Projects$87 Million 3 rd Qtr 09/1078 Projects$12 Million 4 th Qtr 09/1072 Projects$17 Million 1 st Qtr 10/1148 Projects$5 Million 2 nd Qtr 10/1156 Projects$9 Million 3 rd Qtr 11/1238 Projects$3 Million 4 th Qtr 11/1213 Projects$1 Million 1 st Qtr 12/134 Projects$.5 Million 2 nd Qtr 12/132 Projects$.2 Million 1,130 Projects$173 Million

16. Existing Facilities Work Breakdown 16

17. Current Program Workload New Construction Pre-Award

18. Current Program Workload New Construction In-Construction

19. New Construction Upcoming Projects Advertising – September/October 2009 Advertisement Date ProjectContract Value Anticipated Type Of Contract 9/13/09 Central Region Glassell Park Early Ed $7 Million17406 9/16/09South Region High #9$77 Million17406 9/26/09Valley Region Span K-8 #1$45 Million17406 10/09Valley Region Span K-8 #2$44 Million17406 10/09Central Region Early Ed #2$3 MillionHard Bid 10/09South Region High #15$64 Million17406 10/09Central Region Elementary #22$35 Million17406 7 Projects$279 Million

20. New Construction Upcoming Projects Advertising – November/December 2009 Advertisement Date Project Contract Value Anticipated Type Of Contract 11/09South Region Middle #3$4717406 11/09South Region Elementary #5$3617406 12/09 Valley Region Bellingham Elementary Addition $1917406 12/09 Central Region MacArthur Park Elementary Addition $18Hard Bid 4 Projects $123 Million

21. New Construction Upcoming Projects Advertising – 2010 Advertisement Date Project Contract Value Anticipated Type Of Contract 1/10South Region Elementary #12$30 Million17406 1/10South Region Elementary #11$30 Million17406 1/10Valley Region Elementary #13$36 Million17406 2/10Central Region Elementary #21$28 Million17406 2/10South Region Elementary #10$26 MillionHard Bid 2/10South Region Elementary #9$26 Million17406 4/10Central Region Elementary #20$39 Million17406 6/10Bell Education Center$37 Million17406 8 Projects $255 Million

22. 22 General Fund Update

23. Maintenance & Operations Update  Deferred Maintenance  State Contribution Redirected  Measure Y Money Ends This Year  No Funding Source Until 2015

24. Maintenance & Operations Update Continued  Repair Program  $217 Million In 07/08  $110 Million In 11/12  192 Tradesmen Jobs Saved This Year  Anticipated Reduction Up To 400 Next Year

25. Maintenance & Operations Update Continued  Operations Funding  $40 Million Reduction In 09/10  800 Positions  $10 Million Reduction In 10/11  Up To 200 Positions

26. Regular Repair And General Maintenance Building Square Footage Increasing While Dollars Decline

27. Uniting The Team And Delivering The Promise

28. 28 Guy Mehula Chief Facilities Executive Erik Blum Program Management Greg Garcia Contracts TBD Planning And Development Construction Program Support Services Facilities Organization Overview Neil Gamble New Construction Current Program (July 2010) Terry Dillon Existing Facilities Current Program (July 2010) James Sohn Deputy Chief Facilities Executive Mark Hovatter Maintenance And Operations Design

29. 29 Deputy Chief Facilities Executive Existing Facilities Reorganization DesignConstructionPlanning Regional Project Management Central Regional Project Management North Fire Alarms Regional Project Management South

30. Director, M&O Deputy Director M&O Energy Unit Central Shops North Region Central Region South Region Area N2 Area N1 Area C2 Area C1 Area S2 Area S1 Non-Traditional Property Management ATU Projects Unit Superintendent CFE/ DCFE LDS CPMs LDS CPMs Maintenance And Operations Reorganization

31. Staffing Plan Delivering On The Promise- Continued Leadership Needed

32. Potential Return Of The Dark Ages -- 2015  Little Investment In Facilities In 5 Years  Bond Program Ended 2012  Limited Repairs Done In 5 Years  No Deferred Maintenance Since 2009  200,000 Students In Portable Classrooms  $7 Billion Available For 2015-2025  50,000-80,000 Construction Related Jobs Pending We Need Strategy Now!!

33. Local Worker Participation  Local Worker Participation On Bond Program Important For Our Economy Thank You For Your Assistance!! Over Last 6 Months Participation Up From 33% To 39%

34. Questions????