COVE Meeting CITIZENS’ CONSTRUCTION OVERSIGHT AND VALUE ENGINEERING

May 15, 2014

COVE Meeting Agenda

Thursday, May 15, 2014 @ 8:00 a.m. Facilities Services - Building 200

6501 Magic Way, Orlando, Florida 32809

I. Call to Order and Approval of April 2014 COVE Meeting Minutes - Egerton van den Berg – Chairman ------------------------------- Pg.1-4

II. Departmental Reports

a. Project Status - Jeff Hart and Regina Frazier-Thomas-- Handout

b. Change Order Reports - Roberto Pacheco ----------------- Pg.5-10

III. Presentations

a. Design Guidelines Process and Review of Schedule - Faz Ali and Basem Ghneim ---------------------------------------------- Handout

b. Change4Kids - Dick Batchelor ------------------------------ Pg.11-13

IV. Discussion and Adjournment ---------------------------------------- Pg.14

COVE Meeting Minutes

The Construction Oversight and Value Engineering Committee (COVE) monthly meetingconvened on Thursday April 17, 2014 at 8:10 a.m., at Facilities Services, 6501 MagicWay, Bldg. 200, Orlando, Florida 32809.

COVE Members in Attendance: Egerton van den Berg, Derryl Benton, James Knapp,Mario Cuello, and Pat Knipe.

OCPS Staff in Attendance: Dr. Barbara Jenkins, John Morris, Rick Collins, WoodyRodriguez, Faz Ali, Jeff Hart, Roberto Pacheco, Judith Padres, Basem Ghneim, LindaLindsey, Sandy Simpson, Joycelyn Henson, and Mayra Monge as scribe.

Call to Order

Egerton van den Berg, Chairman called the meeting to order at 8:10 a.m.

Discussion:

Chairman van den Berg referred to a handout composed by Pat Knipe regarding CapitalRenewal Funds. COVE members discussed the Capital Renewal Program, relevant totheir request to establishment a de minims amount. The funds are not intended forroutine maintenance of school facilities or to pay for project elements which cost lessthan the recommended amount. Rick Collins and Linda Lindsey were asked for theiropinion about this topic. Rick Collins stated that whatever the COVE member’s

recommend, the Finance department would accommodate. Linda Lindsey stated thatshe can provide advisement, however; as an auditor she shouldn’t be involved in settingpolicies based on their recommendation.

Mr. Morris discussed the fact that “Capital Renewal Funds are to be used for the

replacement of major school building systems and components that are needed topreserve the efficient operation of school facilities. The funds are not intended for the initialrenovation of the remaining schools on the original list of 136 schools to be funded fromsales tax.” Following further discussion, the committee voted to recommend a $50,000 deminims amount for all Capital Renewal projects which carried 3 to 2. It was furtherdiscussed that the recommended amount could be revisited at a later time if deemednecessary by staff.

Approval of Minutes

The minutes from March 20, 2014 were presented and approved unanimously by theCommittee.

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The Committee discussed several questions that were raised during last month’s

meeting about local preferences and how that policy applies to CM projects and not to hard bid projects. Roberto Pacheco explained the reasons for that decision and the difference between local preference vs. M/WBE and LDB (Local Developing Business) policies. Chairman requested that the M/WBE team research the participation of local contractors on the two hard bids projects currently under construction

Chairman requested information on the OCPS Planning and Design methodology and schedule for the review and approval of the Design Guidelines. Basem Ghneim mentioned that a detailed milestone schedule including stakeholders and COVE involvement will be presented to the next COVE meeting by Planning and Design.

Finance Report

Judith Padres provided a quarterly report on the Sales Tax Referendum Projects

and Expenditure/Commitment History to Date. The report showed that two schools had a budget reduction: 1) Princeton ES was reduced by $300K. 2) Evans HS was reduced by $700K. Additionally, 2-K8-E-1 Wedgefield Area project had a budget transfer from the FY 2015 to the current FY 2014 funds (1 million dollars).

Rick Collins discussed the 2013 and 2014 Sales Tax Forecast (actual and projected) for the period from June 1, 2013 to May 31, 2014. Rick Collins mentioned that the monthly collection of Sales Tax is exceeding the forecast by $600K to $900K each month. Currently, YTD is estimated $6.3M over forecast. Rick Collins projected that the annual forecast will be over by $6M, the original forecast for this year was $183M. Rick Collins will provide a breakdown of what is included in the Quarterly Distribution.

Project Status

Jeff Hart provided a monthly status update for new/replacement and comprehensive projects. He informed the Committee that there are thirteen projects under construction (amounting to $289M) and three in the close-out phase. He updated the Committee on the VCT issue at University HS and mentioned the proposed budget amendment for the Dr. Phillips HS scheduled to go to the April 22, 2014, OCPS Board meeting. The budget amendment will provide funds to cover new scope and offset some cost related to some unforeseen conditions.

M/WBE Subcommittee Report

Joycelyn Henson presented the M/WBE participation percentages on the 3rd quarter. She also provided a list of outreach activities organized during the months of January and March 2014. Joycelyn Henson mentioned that the disparity study contract is in the

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process of getting signed with an anticipation start date of May 1, 2014. The study will take two years to be completed.

COVE members discussed the multijurisdictional disparity study. Woody Rodriguez suggested COVE members make recommendations on choices and options after OCPS has the data from the study. Chairman requested a report on what data will the consultant be providing.

Change Order Report

Roberto Pacheco reported that during the month of March 2014 there were no significant Change Orders or amendments equal to, or exceeding $200,000.

Furthermore, he outlined a list of RFQ’s currently soliciting different services and provided a timeline for each RFQ. The list included: CM services for Liberty MS (Capital Renewal) and 2-K8-E-1 (Wedgefield Area K8).

He also provided a quarterly report of Change Orders and Amendments for all the transactions for the months of January, February and March.

Advance Planning Report

Sandy Simpson, Judith Padres and Faz Ali provided an overview of how the Advance Planning Committee operates including: membership, attendees, functions and goals, and the methodology implemented to forecast the needs for new High schools, K-8 schools, Middle schools, and Elementary schools.

Chairman asked Sandy Simpson to present data on school population growth experienced since 1980, and the growth projections moving forward, and to report back to COVE.

Judith Padres presented the Proposed Capital Improvement Plan (CIP) for FY 2014-2015 and the approval process leading to the Board approval and adoption of the plan.

Adjournment

There being no further business the meeting was adjourned at 10:50 a.m.

The next meeting will be on Thursday, May 15, 2014, at 8 a.m., at Facilities Services, 6501 Magic Way, Bldg. 200, Orlando, Florida 32809.

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Minutes Authenticated by:

Egerton van den Berg Date of approval Chairman COVE Committee

Woody Rodriguez Date of approval General Counsel

School Board of Orange County, Florida

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Change Orders Report Facilities & Construction Contracting

April 2014

There are no significant change orders or amendments to report for the month of April 2014.

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No. Contract Description Pre

Submittal

Meeting

Open Date Shortlist

Meeting

Interview

Meeting

Board / CFO Date Status

RFQ

14CM04

CM Services for

Wedgefield area K-8 Site 2-

K8-E-1 Relief 3/11/2014 4/1/2014 4/11/2014 5/6/2014 5/27/2014 Open

RFQ

1405PS

A/E Services for Blankner

K-8 and Boone HS Capital

Renewal Project 4/24/2014 5/13/2014 5/21/2014 6/6/2014 6/24/2014 Open

RFQ

14CM06

CM Services for Blankner

K-8 and Boone HS Capital

Renewal Project 4/25/2014 5/16/2014 5/30/2014 6/23/2014 7/22/2014 Open

RFQ

14CM07

CM Services for Ronald

Blocker Educational

Leadership Center (RBELC)

Building HVAC Renovation

Project 5/2/2014 5/20/2014 5/28/2014 6/9/2014 6/24/2014 Open

OCPS FACILITIES & CONSTRUCTION CONTRACTINGRFQs / RFEs/HARD BIDS in Progress: MAY 2014

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BACKGROUND MINORITY AND WOMEN BUSINESS ENTERPRISE POLICY

• “Minority/Woman Owned Business” or “M/WBE” means: a for-profit businessentity: 1) at least fifty-one percent (51%) owned by one or more individuals whoare both socially and economically disadvantaged, or in the case of a corporation,in which fifty-one percent (51%) of the issued and outstanding stock is owned byone or more such individuals which give such socially and economicallydisadvantaged individuals legal control of the entity; and 2) whose managementand daily business operations are controlled by one or more of the socially andeconomically disadvantaged individuals who own it.

LOCAL DEVELOPING BUSINESS POLICY

• “Local Developing-Business” or “LDB” means: A business concern that is domiciledin the Local Area and that meets the Revenue Limitations, and that is owned andcontrolled by one or more individuals whose personal net worth does not exceedthe Net Worth Limitation.

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BACKGROUND Continued LOCAL PREFERENCE CRITERIA FOR VENDORS POLICY

• This policy provides a local preference to certain Vendors with established officeslocated in the SMSA for a minimum of five (5) years when evaluating the mostqualified Vendor for the acquisition of construction and related professionalservices consistent with the CCNA.

STANDARD METROPOLITAN STATISTICAL AREA

• Shall mean the following Florida counties: (i) Orange; (ii) Osceola; (iii) Lake; and(iv) Seminole.

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Project Information

Project – Pineloch ES & Ocoee ES Replacement Project

• Architect - BRPH Architects-Engineers, Inc.

• General Contractor - McCree Design Builders, Inc.

• Contract amount - $21,462,243.00

Classification of Subs Number of FirmsTotal Amount of

ContractsPercentage

Local Vendor 24 $14,628,883 79%

MWBE 6 $5,937,673 32%

LDB 1 $ 244,000 2%

Number of Primes Local Non Local

10 8 2

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Project Information

Project – Shingle Creek ES & John Young ES Replacement Project

• Architect – Schenkel Shultz Architects

• General Contractor - Walbridge Aldinger Company

• Contract amount - $19,680,000.00

Classification of Subs Number of FirmsTotal Amount of

ContractsPercentage

Local Vendor 18 $9,799,740 54%

MWBE 9 $7,092,228 38%

LDB 5 $5,416,855 30%

Number of Primes Local Non Local

7 6 1

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Orange County Public Schools

CHANGE4KIDS

By: Dick Batchelor

May 15, 2014

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continued on reverse

ABOUT Change 4 Kids is a 501(c)(4) organization and political committee backed by several dynamic community leaders to advocate for the renewal of a half-penny sales tax to fund construction and renovation of schools in Orange County.

This bipartisan initiative was originally formed in 2002 after six referendum efforts had failed to generate some level of taxation to support public schools. Batchelor volunteered to create and lead Change 4 Kids, which ultimately garnered the support to pass the referendum with nearly 60 percent of the vote.

The measure to renew the tax will be on the ballot in the fall of 2014. If voters do not pass the extension, the initial tax will end in 2015, leaving many Orange County schools in need of major repairs and improvements.

HONORARY CHAIRS

John O. Burden, Sr. – president and CEO of Old Florida National Bank Linda Chapin – former Mayor of Orange County Rich Crotty – principal and managing partner of Richard Crotty Consulting Group, LLC and the former

Mayor of Orange County in office when the tax increase was originally passed Earnest DeLoach, Jr. – co-managing partner at Young DeLoach PLLC Mel Martinez – former U.S. Senator & chairman of the Southeast U.S. and Latin America for JPMorgan

Chase & Co.

SCHOOLS IN NEED

Engelwood ES Oak Hill ES Lake Como ES Hillcrest ES Corner Lake MS Fern Creek ES Rock Lake ES Durrance ES Kaley ES Union Park ES Pine Hills ES Southwest MS

Pine Castle ES Lake George ES Cherokee School Magnolia School Mollie Ray ES Silver Star Center Sunrise ES Ivey Lane ES Lake Gem ES Deerwood ES Pershing ES Rolling Hills ES

Meadow Woods MS Ventura ES William Frangus ES Winegard ES Clarcona ES Maxey ES Pinar ES Hungerford ES Hidden Oaks ES Gateway School Meadow Woods MS Mid-Florida Tech

Westside Tech Winter Park Tech Orlando Tech Avalon ES Boone HS Camelot ES Odyssey MS Chain of Lakes MS Citrus ES Colonial HS Endeavor ES Howard MS

Jones HS Lakeview MS Lawton Chiles ES Northlake Park ES Oakshire ES Ocoee MS Olympia HS Palmetto ES Three Points ES Timber Creek HS Winter Park HS

FREQUENTLY ASKED QUESTIONS

What are the needs? Why does this tax need to be continued? An extensive facilities condition assessment determined that OCPS would have more than $2 billion in unmet facility needs over the next decade. By the time the sales tax sunsets, there will be 39 schools left in need of renovation from the 2002 list, and another 20 that were not on the list of 136 schools.

What is the difference between the original tax and now? Essentially, the same thing is being asked. The one difference is using some of the funds on technology in our schools, which is critical to preparing students to compete at the global level since that’s how the workplace operates today. Some money from the 2002 initiative was used for technology in that it is part of the infrastructure in newer schools. School facilities must be able to support those things, such as the use of computers and digital projectors. Adequate electrical supply, fiber optic

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Change 4 Kids, Inc. 201 S. Orange Avenue, Suite 960, Orlando, FL 32801 (407) 841-4311 www.change4kids.org

backbone and wireless drops are now part of school design. However, OCPS is considering using some proceeds from the sales tax extension on devices, which of course would also increase wireless needs, thus the need to improve that infrastructure.

How much money is estimated to be raised from renewing the tax? It depends on the final needs assessment that will be made just before the referendum. The length of the levy will be designed to generate sufficient revenue to cover the identified needs.

How much money has the 2002 tax raised? The half-penny sales tax generated $1,658,917,189 through the fiscal year ending June 30, 2013. The current estimate is that $2.1 billion will be raised through the life of the program ending 2015.

What did Orange County taxpayers get for that amount? With proceeds from the 2002 sales tax, 94 schools on the list of 136 will have been renovated or replaced. One new school – Wekiva High School – was also built with sales tax proceeds. Another 43 brand new relief schools will have been built since 2002 with other funds.

What other funds are used for school construction? A state‐required portion of property taxes (1.5 mils) and impact fees on new construction are the main sources of funding for relief schools. There are other small federal and state sources, but these constitute a fraction of available funding.

Why weren’t the total of 136 schools completed? The big factors were the downturn in the economy and the Class Size Amendment. The passage of the Constitutional Class Size Amendment created an unfunded need of approximately $600 million. The economic downturn is expected to cause total collections to be approximately $600 million short of original estimates.

Will there be a reprioritizing of the unfinished schools on the “136 list?” The school board has decided to stick with the order of the remaining schools.

Are new schools really needed? Hasn’t growth slowed enough to make do with what there is and add portables?

That is not the case in Orange County. During the 2012-2013 school year, the school district welcomed 2,000 new students, which equivalent to more than two new elementary schools or one and a half middle schools. For the 2013-2014 school year, OCPS added another 3,000 students. So yes, our communities need these schools.

Why doesn’t OCPS rezone the district to maximize capacity? Allowing voluntary transfers from overcrowded schools to under-capacity schools is already doing some of that. However, even with voluntary transfers, schools are overcrowded, and with a few thousand new students per year, it will only get worse if we don’t act now. On October 15, 2013, for traditional schools, the number of students and the capacity for the total district was over by 5,126 students.

When exactly would the original sales tax end? December 31, 2015.

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