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FACILITIES & FINANCING:
THE GOOD, THE BAD, AND THE UGLY...
Jennifer Afdahl Rice
Jonathan Dean, Ed. D.
David Sciaretta, Ed. D.
March 2015
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Agenda
� The O’Farrell Charter Schools
� Albert Einstein Academies
� Public Safety Academy
� Project Team
� Project Budget
� Lender Review
� Project Timeline
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The O’Farrell Charter Schools
� Existing TK-12 facility sits on 29 acres:� 14 elementary classrooms; 38 middle school
classrooms; 13 high school classrooms; 1 Blended Learning Classroom (Ingenuity Charter School)
� One of two AVID National Demonstration charter schools in the nation
� One of twenty-two schools in the nation nominated for ENCUST award
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Description of Project & Reason
The O’Farrell Charter School was petitioned by staff,
parents, and students to expand the middle school into
both an elementary and high school:
*Middle School in 1994
*Elementary in 2011
*High school in 2012
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Description of Project & Reason
� To construct a 21 classroom high school, administrative office, gym with cafeteria style eating, and 88 space parking lot on the south 7 acres of the campus.
� The O’Farrell Charter School is out of classroom space with enrollment of 1,500 and a wait list of 800 students
� Outperformed all middle schools and high schools in the area
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Project Sources, Uses, &
Financing Obtained
Resources:
� 1 million from O’Farrell Charter School Reserves
� 24 million from Prop “Z” funds
� 1 million out of reserves for turf fields (Prop S)
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The Good
� First Prop. Z project fully funded
� Demonstrates good faith effort between
SDUSD/Charters
� Taking care of “All” students
� Minimal cost to charter? - $1 million
� Great deal of input from the district
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The Bad
� Can’t control costs
� Timelines tend to “creep”
� Student anxiety towards completion
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The Ugly
� Unforeseen Complications which I have no control
over
� Cost continues to rise due to lack of extensive
investigation of the scope of the project.
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Lessons Learned
� Make sure you have a plan with all stakeholders
involved
� Sell your plan to the community
� Stay active in the community and collaborate
extensively
� Have a financial plan that retains reserves
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Before
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After
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About Us
� AEA operates two, International Baccalaureate,
public charter schools in urban San Diego
� Our elementary (K-5) school has an enrollment of
650 and our middle school (6-8) of 500
� Our growth projections include a combined
enrollment of 1,350 within two years
� One of our campuses is a Prop. 39 site owned by
SDUSD, and our middle school is housed in our
new privately-held facility
� AEA High School - coming Fall 2017
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Project Description
� The project involved purchasing and extensively
renovating a 4-story hospital that had been vacant
for years.
� The reason for the project was to accommodate
enrollment growth as well as to design a building
around the specific needs of the instructional
program in our middle school.
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Sources & Financing
� We financed the project using tax-free municipal
bonds. We worked with a bond underwriter (Baird
Financial)
� Total project cost: $15.8 million (including
purchase and renovation)
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The Good
� Project was completed ahead of time and under
budget.
� Building is beautiful and has contributed to
changes in the immediate neighborhood
surrounding the school.
� Building has spurred additional investment in the
area (parent-owned café)
� Many elements of the building design have
facilitated collaboration and exploration, hallmarks
of Einstein’s educational program.
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The Bad
� Due to not paying prevailing wages both campuses
were picketed by local trade unions.
� Some of the technology, especially related to
instructional systems and communications
(including alarm systems, etc.) had glitches.
� Very tight timeline: December 15 groundbreaking,
August 25 open for business
� Conditional Use Permit (CUP) with City
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The Ugly
� Purchase of some excessive technology that may
have been overkill and may not be used to
optimum level
� Agreeing to engage in “pilot” case study with
company for air conditioner (in exchange for
installing ‘state-of-the-art’ equipment)
� Taking design shortcuts to save money
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Lessons Learned
� Assemble a top-notch team!
� Importance of Construction Management professional
� Provide continuous updates to the school
community as well as community-at-large
� There is no such thing as a perfect facility, no
matter how new…
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Before
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During
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After
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After
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After
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After
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Public Safety Academy
� Founded in 2006
� Middle & High School
� Located in San Bernardino
� Prepares students for careers in law enforcement
or fire service
� WASC Accredited
� Enrollment – 368
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Consolidation Project
� Consolidating middle school and high school on
one site
� Total project cost $1,069M
� Leased Modulars
� Project Costs - Soft costs related to modulars
� Financing from Pacific Western & equity from
school
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The Good
� Combined campus and operations
� Able to obtain financing despite lack of collateral
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The Bad
� Project ran over budget
� School opening had to be delayed by a week,
though it could have been longer
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The Ugly - Engineer
� Established Engineer – experience in San
Bernardino & with modulars, though not with
charter schools
� Major issue with ADA compliant ramp
(switchback design needed)
� No construction site management performed
despite contract
� Claim against engineer’s E&O insurance
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Lessons Learned
� Start early
� Project Team is critical
� Onsite management requirements must be met
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Before
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During
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After
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After
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Project Team
� Charter School Representatives
� Architect
� Project Manager
� General Contractor
� Attorney
� Consultants
� Lender
Project Budget
Acquisition Costs
Hard Costs
Soft Costs
FF&E
Financing
Contingencies
� 10%-20% Hard Cost
� 5% Soft Cost
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Lender Review
� Character – history of school & team
� Cash Flow – profitability, ability to cover payments
� Collateral – security for loan, equity contribution,
likelihood of building reuse
� Credit – bill payment
� Competition – other district, charter, independent
schools
Project Timeline
Project Timeline Continued
� Project Description
Varies
� Team Selection
Varies
� Site Acquisition/Issues
Varies
� Schematic Design
4 weeks
� Design & Development
4 weeks
� Construction Documents
18 weeks
� Financing – Varies
� Bidding & Permits
4 weeks
� Award Contract
3 weeks
� Construction
14 months + 2-5 months
� Move In time – 1-2 months
Contacts
Jennifer Afdahl Rice
CSMC
101 W. Broadway Ste. 231
Oakland, CA 94607
888-994-CSMCx248
Jonathan C. Dean, Ed. D.
The O’Farrell Charter Schools
6130 Skyline Drive
San Diego, CA 92007
760-214-7719
David Sciaretta, Ed. D.
Albert Einstein Academies
3035 Ash St, San Diego, CA, 92102 (Elementary School)
458 26th St, San Diego, CA, 92102 (Middle School)
619-209-9753 [email protected]