Program
Implementation:
Budgets
SAN RAFAEL CITY SCHOOLS
MEASURES A & B BOND FACILITIES PROGRAM
BOARD OF EDUCATION STUDY SESSION
NOVEMBER 14, 2016
Goals of today’s Study Session
Explain the basis of the Program Budgets
Communicate the mechanics of Project & Program Budgets
Present the initial Program Budget from Program Maps
Look at criteria & scenarios for developing balanced Program Budget
Confirm approach to preparing a Program Budget for adoption
Project & Program Budgets
Program Maps
◦ Adopted by the Board on April 18, 2016
◦ Are the basis for project and program budget development
◦ Contain overall budget and timing assumptions
Program Revenue
◦ Maps include revenue assumptions
◦ Bond funds, potential state funds, other local revenue
Program Expenditure Budgets have three basic components
◦ Project costs, including direct construction
◦ Program Management costs
◦ Program reserves
Project Budget Development
Process
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◦
◦
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Use adopted Total Project cost from Maps
Assign preliminary Construction Cost within total project
Include construction cost escalation assumption
Apply Construction Contingency (Change Order allowance)
Assess need for transitional housing based on project impacts
Project Budget Development
Process
◦ Confirm associated project costs based on project scope, time
◦ Pre-design costs
◦ Architectural/Engineering fees
◦ Construction Management
◦ DSA Project Inspector
◦ Testing
◦ Technology, Furniture and Equipment
◦ Check resulting Cost per Sq. Foot
◦ Construction Cost—including direct Construction, Escalation, Contingency
◦ Total Project Cost
Typical Project Budget
Assumptions
Contingencies
◦ Change Order Allowance: 10%
◦ Escalation @ 5.5% per year
◦ Project Contingency @ 1% of
Project Costs
Construction Management
◦ Included in Project Budgets
◦ From Program Maps in Program
Management
◦ @5% of Construction Cost
Architect Fees @ 12% for major
projects
◦ Cost basis: Construction +
Escalation
◦ 7% for Swing Space
DSA Inspection @ $15K per month
Geotechnical, Survey other predesign costs
Commissioning
Technology
Furniture & Equipment
Typical
Project
Budget
Costs per Sq. Ft.
provide a basis for
confirming adequacy of
Construction & Project
Budgets
Summary budgets by site: SRHS
For sites with multiple projects summary worksheet is developed.
Program Budgets
Measures A & B Program Budgets
◦ Revenue assumptions, total anticipated to programs
◦ Rollup of all Project Costs
◦ Including Swing Space costs
◦ Program Management Costs
◦ Program Reserve budgeted at 1.8% of total expenditures
◦ Maintains reserve amounts from Program Maps
◦ Balance of funds
◦ Revenue less Expenditures
Program Management
Adjustments from
Program Maps
• Construction
Management to
projects
• Outside Program
Management
• District staffing
only 3 positions
• Lower overall
program costs
Measure A Program Budget—budget validation
Measure B Program Budget—budget validation
Validation Budgets Summary
WHERE WE ARE
BASED ON
Elementary: 6.2% total increased
cost
Lower revenue assumptions
High School: 4.4% total increased
cost
All projects included
◦ With needed Transitional Housing
Maintains Program Reserve
◦ $2 million Elementary Program
◦ $3 million High School Program
◦ -$2 million Elementary
◦ -$3 million High School
Swing space added costs
◦ $3.2 million High Schools
◦ $7.3 million Elementary
Project budget adjustments
included
◦ Based on adjustments to proposed
scope
Preparing Program Budget
Look at options for balancing budgets
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◦
◦
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Reducing scope, project size
Change project timing
Across the board
Or project specific
Work with Architects to validate project assumptions
◦ At High Schools & Middle Schools
◦ Size of proposed projects, timing of projects
◦ Elementary projects confirm phasing & Swing Space needs
Using basic criteria
◦ Developed scenario that follows
Measure A Program Budget for adoption
Measure B Program Budget for adoption
Next steps
Adopt Measure A and Measure B Budgets
Keep moving forward rebuilding
our schools!