Bond Oversight Committee Bond 2014 and Bond 2018 April 25, 2019 1 - PowerPoint PPT Presentation

Bond Oversight Committee Bond 2014 and Bond 2018 April 25, 2019 1

AGENDA 1. Welcome – Joanne Gore, Chair 2. Bond 2014 Update – Oscar Perez, Carolina Fuzetti 3. Bond 2018 Update – Oscar Perez, Zandra Becerra • Contract Updates • Bond Program Financials/Dashboard • Small Business Initiative Update • Malala Yousafzai (Pkg 001) – ES51 Update • New Construction/Renovation, Work in Progress 4. Communications Update – Veronica Sopher 5. Technology Update – Jojo Jacob 6. Debt Service Fund Update – Steve Bassett 7. Questions/Comments 2

Bond Oversight Committee 2014 Bond program April 25, 2019 3

PROGRAM STATUS Overall Bond Program PHASE/ % COMPLETE DESIGN CONSTRUCTION CLOSE/ SD DD CD BID CONST WNTY I/99% II/100% III/95% LEGEND Complete In progress Next step 4

PROJECTED PROGRAM BUDGET Item Total Current Commitments/ (A) $439.2M Approved Change Orders Estimates/ (B) $ 35.7M Pending Change Orders* Total Projected Budget (C)=(A) + (B) $474.9M 2014 Bond Budget (D) $486.7M Projected Bond Program Balance (E)=(D) - (C) $ 11.8M Notes: Data as of 3/31/2019 Current 2014 Bond Program Contingency = $18.2M Projected Bond Program Balance includes rounding tolerance * Projected estimate to complete (based on estimates and pending commitments) 5

SMALL BUSINESS INITIATIVE Awarded Construction Total SBE Commitment SBE Paid to Date Contracts Board Goal 25% 66% 77% 29% $91,079,616 $69,922,186 $319,308,804 6

James Reese Career and Technical Center Construction Progress • Substantial completion 7/25/2019 • Opening fall 2019 • Construction 72% complete 7

2014 Bond Wireless Upgrade 8

Bond Oversight Committee 2018 Bond Program April 25, 2019 9

Contract Updates A/E Contracts (Design) 42 of 51 (A/E) Architect/Engineer contracts have been executed JOC Contracts (Construction) 14 of 20 Job Order Contracts (JOC) construction contracts have been executed CSP/CMAR Contracts (Construction) 0 of 29 Competitive Sealed Proposal (CSP)/Construction Manager at Risk (CMAR) construction contracts have been executed 10

Bond Program Dashboard/Financials Commitments Spent to Date $81M $24M 11

Small Business Initiative 2018 Bond Program A/E Services Construction Awarded Construction Awarded Construction 7% 85% Contracts Contracts $39,634,707 $38,402,545 Total SBE Commitment Total SBE Commitment 26% $10,892,247 27% $10,054,444 SBE Paid to Date SBE Paid to Date $4,013,853 10% 0.5% $185,051 12

MALALA YOUSAFZAI New elementary school (#51) in the Aliana Community • 10 Classroom Addition approved by BOT in February 2019, Bond 2018 funded • Construction of classroom addition in progress • Building envelope is 75% complete • Substantial completion date is 12/2019 • Mid-year opening - student on-campus start date is January 2020 13

New Construction/Renovation Progress New Construction Additions/Renovations ES 52, ES 53, HS 12 Neill ES Addition - 12 classroom • Land acquisition in progress • Schematic Design approved by BOT February 2019 • Schematic Design ongoing • Design Development ongoing • BOT approval Summer 2019 Madden ES Addition - 10 classroom Meadows ES • Schematic Design approved by BOT March 2019 • Schematic Design complete and approved by • Design Development ongoing BOT, February 2019 • Demo/Construction start date summer 2019 Fine Arts • Opening date 2021 • Schematic Design ongoing • Projected construction start January 2020 Lakeview ES • Programming complete • Visioning sessions with community ongoing • Construction start date summer 2020 MS 16-Net Zero • Benchmark Case study in progress • Land purchase being evaluated 14

Construction Work in Progress • Door Locks and Window Film (Security) – Install summer 2019 • Playgrounds – Install summer 2019 • Hall Stadium Repairs/Renovation ongoing • Estimated completion date August 2019 • PA/Sound and Clocks • Bond Signage – Summer 2019 • Fencing around Portable Buildings • Water Softeners 15

Communications Plan Update • Bond update included in April FBISD News Magazine Planned: • Back-to-school magazine to include longer article about bond progress. • Video PSA in progress regarding installation of door locks at campuses throughout the District • Additional social media posts and videos to be shared as appropriate 16

Technology Progress  IT HVAC Project  Phase 1 (17 campuses) • Construction work is completed. Access control is installed in about 30% of the campuses.  Phase 2 (A&E) • Currently reviewing the 90% Construction Documents  Majority of project in initial phases (planning, bids, etc.) • Board approved purchases 17

Phase 1 & 2 Classroom Toolset 18

• Currently finalizing counts & gathering quotes • Anticipated Delivery is late July – August 19

• Currently finalizing counts & gathering quotes • Anticipated Delivery is late July – August 20

SUMMARY OF OUTSTANDING DEBT AS OF 3/31/2019 Summary Statistics Principal Composition Total Outstanding Principal $ 977,230,164 Total Fixed Rate 813,325,164 83.23% 24.07% Total Variable Rate 163,905,000 16.77% Total Interest Payments 456,434,221 Callable Principal (%) 0.00% 75.93% Percent of Principal Retired 75.93% w/in 5 years 23.69% w/in 10 years 54.86% Noncallable w/in 15 years 78.74% 24.07% Callable w/in 20 years 90.52% 75.93% w/in 25 years 98.42% w/in 30 years 100.00% Final Maturity 8/15/2048 Underlying Ratings Voted Authorization Fitch AA+ Date Amount Issued Balance CP Issued Unissued S&P AA+ 11/6/2007 $ 428,000,000 $ 409,000,000 $ 19,000,000 $ 10,000,000 $ 9,000,000 11/4/2014 484,000,000 370,000,000 114,000,000 65,000,000 49,000,000 11/6/2018 992,600,000 - 992,600,000 25,000,000 967,600,000 $ 1,904,600,000 $ 779,000,000 $ 1,125,600,000 $ 100,000,000 $ 1,025,600,000 21

SUMMARY OF OUTSTANDING DEBT PRINCIPAL & INTEREST $100,000,000 $90,000,000 $80,000,000 $70,000,000 $60,000,000 Aggregate Debt Service $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0 Period Ending 8/31 Principal Interest 22

SUMMARY OF OUTSTANDING DEBT CALLABLE BONDS  The following table shows the District’s callable bonds as of March 31, 2019 Callable Call Bond Issue Principal Date Unlimited Tax Refunding Bonds, Series 2009 $ 28,390,000 8/15/2019 Unlimited Tax School Building Bonds, Series 2009 121,860,000 8/15/2019 Unlimited Tax School Building & Refunding Bonds, Series 2010 66,580,000 8/15/2020 Unlimited Tax Refunding Bonds, Series 2012 46,870,000 8/15/2022 Unlimited Tax Refunding Bonds, Series 2014 46,145,000 8/15/2024 Variable Rate Unlimited Tax School Building Bonds, Series 2015A 31,630,000 8/1/2019 Variable Rate Unlimited Tax School Building Bonds, Series 2015B 39,250,000 8/1/2019 Unlimited Tax Refunding Bonds, Series 2016A 35,755,000 8/15/2024 Unlimited Tax Refunding Bonds, Series 2017A (Green Bonds) 36,525,000 8/15/2026 Unlimited Tax Refunding Bonds, Series 2017B 28,080,000 8/15/2026 Variable Rate Unlimited Tax Refunding Bonds, Series 2017C (Green Bonds) 44,060,000 8/1/2020 Variable Rate Unlimited Tax Refunding Bonds, Series 2017D 48,965,000 8/1/2021 Unlimited Tax Refunding Bonds, Series 2018 119,585,000 8/15/2027 Unlimited Tax School Building Bonds, Taxable Series 2018 48,300,000 8/15/2027 23

TAX EXEMPT COMMERCIAL PAPER  The District established a Commercial Paper Program on November 3, 2016  On January 22, 2019, the Board of Trustees approved expanding the commercial paper program from $100 million to $150 million effective February 20, 2019. The Board also approved adding the 2018 Bond to the commercial paper program  Currently, the District has $100 million outstanding in commercial paper with rates ranging from 1.62% to 1.86%  As of 3/31/2019, the District has saved approximately $8.58 million in interest expense Interest Expense Comparison Commercial Paper Notes Fixed Rate Interest Period Total Interest Issue - Total Expense Ending Series A Series B Expense Interest Expense Difference 3/31/2019 $ 1,324,230 $ 48,759 $ 1,372,989 $ 9,960,049 $ (8,587,060) 24

RECAP OF DEBT TRANSACTIONS  Series 2019A Refunded Bonds - $100,000,000 VARIABLE  Commercial Paper refunded at par  Priced 4/23/19 and will close 5/22/19  Three-year put at 1.95%  All-in True Interest Cost (TIC) = 1.98%  Average life of bonds = 16.84 years  District saved approximately $5 million in interest expense savings versus a fixed rate bond in the first three years  Series 2019B Refunded Bonds - $131,550,000 FIXED  Series 2009 and Series 2009 Refunding  Refunded total = $150,250,000  Priced 4/23/19 and will close 5/22/19  Net Present Savings of $26.2 million  All-in True Interest Cost (TIC) = 2.78%  Average life of bonds = 10.13 years  District saved over $7 million in net present value savings by not advance refunding in December 2017 25