Meeting 6 December 14, 2016

Meeting 6 December 14, 2016 TONIGHT'S AGENDA 6:00-6:30 Dinner 6:30-6:35 Welcome / Agenda for tonight 6:35-6:40 Review of scenarios presented in Meeting 5 6:40-6:45 Results from the exit survey 6:45-7:00 Cost Estimating detail and process 7:00-7:15 SHS cost estimate 7:15-7:25 Update from BOK financial – bonding capacity timeline 7:25-7:35 Committee discussion and Q&A 7:35-7:50 Table discussions 7:50-7:55 Hooray, we’re done! What’s next? Community Survey Party time January 9th! PACKAGE 2 PACKAGE 4 PACKAGE 3 PACKAGE 1 REVIEW OFSEQUENCINGSCENARIOS

DISTRICT TECHNOLOGY CAMPUS TECHNOLOGY NEW SHERMANHIGHSCHOOL 2016

2020 SCENARIO 1

2025 SCHOOL INTERMEDIATE TO MIDDLE CONVERT DILLINGHAM

2030 SCHOOL INTERMEDIATE TO MIDDLE CONVERT DILLINGHAM

2035 TECHNOLOGY CAMPUS TECHNOLOGY, DISTRICT REPURPOSE JEFFERSONES, REPURPOSE DOUGLASS ECC, PRE-K RENOVATION @1ES, REPLACE WAKEFIELD ES, CRUTCHFIELD ES, REPLACE FAIRVIEW ES,REPLACE

2040 PACKAGE 2 PACKAGE 1 SEQUENCING SCENARIOS TECHNOLOGY, DISTRICT TECHNOLOGY CONVERT DILLINGHAM ISTO MS,CAMPUS DOUGLASS ECC,REPURPOSEJEFFERSONES, PRE-K RENOVATION @1ES,REPURPOSE CRUTCHFIELD ES,REPLACE WAKEFIELD ES, REPLACE FAIRVIEW ES,REPLACE 2016

2020 SCENARIO 2

2025

2030

2035 CLOSE PERRIN CONVERT SHSTO MS&LC, SCHOOL, NEWSTADIUM NEW SHERMANHIGH

2040 SEQUENCING SCENARIOS SCENARIO 3 2016 2035 2025 2030 2020 2040

SHERMAN HIGH SCHOOL - CTE & CLASSROOM ADDITION, REPLACE FAIRVIEW ELEMENTARY SCHOOL, REPLACE CRUTCHFIELD ES, REPLACE PACKAGE 1 WAKEFIELD ES, PRE-K RENOVATION @ 1 ES, REPURPOSE DOUGLASS ECC, REPURPOSE JEFFERSON ES, CAMPUS TECHNOLOGY, DISTRICT TECHNOLOGY, CLOSE PERRIN

CONVERT DILLINGHAM PACKAGE 2 IS TO MS, NEW MIDDLE SCHOOL, CLOSE PINER MS

RENOVATE BEARCAT STADIUM, PACKAGE 3 CAMPUS TECHNOLOGY, DISTRICT TECHNOLOGY SEQUENCING SCENARIOS SCENARIO 4 2016 2035 2025 2030 2020 2040

RENOVATE BEARCAT PACKAGE 2 STADIUM, NEW MIDDLE SCHOOL

CONVERT DILLINGHAM IS TO MS, CLOSE PINER MS PACKAGE 3 CAMPUS TECHNOLOGY, DISTRICT TECHNOLOGY EXIT SURVEY RESULTS

Scenario 3 6 votes 12%

18% 70% Other/Undecided Scenario 1 9 votes 35 votes COST ESTIMATING - NEW HIGH SCHOOL

Details and Process

Sherman High School Review CONSTRUCTION COSTS BIDS / CONSTRUCTION CONTRACT Do not always contain the same ingredients • Usually include: • Building Construction • Contractor's contingencies • Might include: • On-site development • Off-site development • Owner’s contingencies • Some furnishings, fixtures, and equipment • Preparation for expansion or future adjacent facilities CONSTRUCTION COSTS DENISON HIGH SCHOOL About the project • Slab on grade • Roof top units • 2 story main building • 2 practice fields, JV grass field, track, 8 tennis courts, baseball, softball • 90 acre site CONSTRUCTION COSTS DENISON HIGH SCHOOL • $59,200,000 bid August 2012 • $800,000 was relocation of Indoor Athletic • $58,400,000 building construction • 2011 Bond Total: $79.75 million • 320,000SF excluding indoor athletic • $185/SF in 2012 • Engineering News Record has historical data of monthly interest rates by Region. • Applying these rates from 2012 to present results in construction cost of • $80,319,162 total • Or $251/SF unit cost CONSTRUCTION COSTS MIDLOTHIAN HERITAGE HIGH SCHOOL About the project • Structural slab • Rocky site • Geothermal • Two stor y • Practice fields CONSTRUCTION COSTS MIDLOTHIAN HERITAGE HIGH SCHOOL • $57,759,425 (bid June 2012) • 314,583 SF • $184/SF unit cost • Adjusted to December 2016 • $77,504,542 • $247/SF CONSTRUCTION COSTS RICK REEDY HIGH SCHOOL - FRISCO ISD About the project • Structural slab • Ground source heat pump ‘geothermal’ • Insulated Concrete Forms • 2 story main building • 3 practice fields, JV grass field, track, 8 tennis courts, baseball, softball • 48 acre site CONSTRUCTION COSTS RICK REEDY HIGH SCHOOL - FRISCO ISD • $83,103,764 bid (September 2013) • 402,429 SF • $207/SF • Adjusted to December 2016 • $112,453,966 construction cost • $280/SF unit cost CONSTRUCTION COSTS LEBANON TRAIL HIGH SCHOOL - FRISCO ISD About the project • Structural slab • Ground source heat pump ‘geothermal’ • Insulated Concrete Forms • 2 story main building • 3 practice fields, JV grass field, track, 8 tennis courts, baseball, softball • 75.8 acre site CONSTRUCTION COSTS LEBANON TRAIL HIGH SCHOOL - FRISCO ISD • $81,424,617 (bid August 2014) • 368,260 SF • $221/SF • Adjusted to December 2016 • $102,759,992 construction cost • $279/SF unit cost CONSTRUCTION COSTS MEMORIAL HIGH SCHOOL - FRISCO ISD About the project • Structural slab • Ground source heat pump ‘geothermal’ • Insulated Concrete Forms • 2 story main building • 3 practice fields, JV grass field, track, 8 tennis courts, baseball, softball • 75 acre site CONSTRUCTION COSTS MEMORIAL HIGH SCHOOL - FRISCO ISD • $85,738,796 (bid June 2015) • 368,260 SF • $233/SF • Adjusted to December 2016 • $94,666,365 construction cost • $257/SF unit cost CONSTRUCTION COSTS BRASWELL HIGH SCHOOL - DENTON ISD About the project • Structural slab • Ground source heat pump ‘geothermal’ • 2 story main building • Core spaces for 3,000 students • 3 practice fields, JV synthetic field, track, 8 tennis courts, baseball, softball • 110 acre site CONSTRUCTION COSTS BRASWELL HIGH SCHOOL - DENTON ISD • $114,510,459 (bid July 2014) construction cost • 532,000 SF • $215/SF Unit cost • Adjusted to December 2016 • $146,540,459 construction cost • $275/SF unit cost CONSTRUCTION COSTS GENERAL CONTRACTOR RECOMMENDATIONS • Buford Thompson Company • 2 high school projects in North Texas >>One bidding Q1 2017 estimated at $226/SF >>Second bidding this month estimated at $220/SF • Pogue • Helping a North Texas district bond plan • $270/SF bidding 2018 or 2019 • Cadence McShane • Provided an estimate based on a moderate quality level in the Sherman region • $235/SF - $241/SF CONSTRUCTION COSTS GENERAL CONTRACTOR RECOMMENDATIONS • Balfour Beatty • Provided an estimate based on a moderate quality level in the Sherman region • $255/SF • Steele & Freeman • Provided an estimate based on moderate quality level in the north Texas region • $225/SF to $230/SF CONSTRUCTION COSTS RESULTS • Average of bids normalized to today is $265 • Again could include contingencies • Average of recommendations from general contractors is $238 • Truly a new construction unit cost • We used $238/SF for construction unit cost CONSTRUCTION COSTS STORM SHELTERS • New building code requirements • FEMA certified storm shelter capable of withstanding 250mph winds and providing utilities for all building occupants until rescued. • Requires 5 sf per occupant • Using the same CMaR relationships • Add 20% - 32% of unit cost to the area of storm shelter OR • Add $75 - $100 to unit cost of area of storm shelter • We used $75/SF additional cost for this area CONSTRUCTION COSTS CONTINGENCIES • On-Site costs – address unknowns of a site not yet purchased • Off- Site costs – address unknowns of getting utilities and vehicles to a site not yet purchased • Program – address changes from State mandates to district curriculum changes during the design phase • Owner’s Betterment – address state mandates and other curriculum changes during the construction phase • Contractor’s contingency – address unknown existing conditions and abnormal weather during construction • Land purchase – address acquisition and purchasing process costs SOFT COSTS JURISDICTIONAL AND PROFESSIONAL FEES • Includes • City Permitting and inspections • State accessibility review and inspections • Site surveys (geotechnical and topographical) • Architectural and Engineering fees • Materials Testing during construction • Sub-surface utility exploration • Our experiences suggests 12% of total construction cost for this project, has historically ranged from 10% to 15% SOFT COSTS FIXTURES, FURNITURE, AND EQUIPMENT • Includes • Desks • Chairs • Playground equipment • Athletic equipment • Uniforms • Library shelving • Lawn mowers • Appliances, etc • Our experiences suggests 10% of total construction cost, has historically ranged from 8% to 24% SOFT COSTS TECHNOLOGY • Includes • Network devices such as switches & routers, servers, wireless access points, etc. • Classroom devices such as projectors, smart boards, large format monitors, security cameras, etc. • Based on Sherman ISD's curriculum and level of technology integration desired we used 4.5%, has historically ranged from 2% to 6% INFLATION WHAT DOES IT INCLUDE? • Construction inflation • Materials • Labor • Project Schedule and date of bidding • Capital projects bond elections can only be called for May or November - the state and federal election dates • Projects take time to purchase land, design, bid, and seek jurisdictional approval; varies by the size and scope of the project INFLATION INDUSTRY FEEDBACK • AGC / Quoins • Predicting 5-8% annually, roughly 0.41% to 0.67% per month • Engineering News Record, weekly industry news magazine • 2016 has been 3.68% through Q2 • Roughly 0.5% per month INFLATION INDUSTRY FEEDBACK • General Contractors and Construction Managers • 4 of 5 recommended 6% per year for next two years due to high volume of work and tight labor market • Roughly 0.5% per month • 1 of 5 had fears of increased labor shortages, recommended 12% per year • Roughly 1% per month • Long term industry history suggests 3% per year in normal market conditions. Translates to roughly 0.25% per month. • We used 0.5% per month for the first 24 months, then 0.25% thereafter COST ESTIMATING - NEW HIGH SCHOOL

Details and Process

Sherman High School Review NEW SHERMAN HIGH SCHOOL PROBABLE COST REVIEW BUILDING COST • 361,186 SF @ $238 / SF • Structural slab • Four pipe central plant HVAC • Facilities included >>Academic and core spaces for 2,100 student functional capacity >>We would always plan for expansion to accommodate additional students and or programs in the future BUILDING COST = $85,962,268 NEW SHERMAN HIGH SCHOOL PROBABLE COST REVIEW STORM SHELTER • International Building Code 2015 compliant storm shelter for building occupants • 18,059 SF to serve building occupants • $75 / SF additional for this area

STORM SHELTER = $1,354,448 NEW SHERMAN HIGH SCHOOL PROBABLE COST REVIEW PROGRAM CONTINGENCY • Flexible spaces, individualized and group learning zones • Accommodates any state or federal mandates that occur during the design phase

TOTAL (7.5% of cost) = $6,447,170 NEW SHERMAN HIGH SCHOOL PROBABLE COST REVIEW ON-SITE CONTINGENCY • Competition baseball and softball fields, competition track, practice fields, JV football competition field (no stadium), 8 tennis courts • Storm water detention • Minimal relocation of public utilities • Unknown site conditions: steep slopes, rock formations, environmentally sensitive areas

TOTAL (2.5% of cost) = $2,149,057 NEW SHERMAN HIGH SCHOOL PROBABLE COST REVIEW OFF-SITE CONTINGENCY • Extension of public utilities • Widening of or construction of roadways directly adjacent to site • Traffic light / signage improvements

TOTAL (5% of cost) = $4,298,113 NEW SHERMAN HIGH SCHOOL PROBABLE COST REVIEW TOTAL BUILDING COST

Building Cost $85,962,268 Storm Shelter $1,354,448 Program Contingency $6,447,170 On-Site Contingency $2,149,057 Off-Site Contingency $4,298,113 TOTAL $ 100,211,056 NEW SHERMAN HIGH SCHOOL PROBABLE COST REVIEW CONSTRUCTION CONTINGENCIES Owner's betterment • Covers state and federal mandates, and changes in curriculum that occurs during the construction of the project.

TOTAL (1.5%) = $1,503,166 NEW SHERMAN HIGH SCHOOL PROBABLE COST REVIEW CONSTRUCTION CONTINGENCIES Contractor's contingency • Address unknown conditions and abnormal weather during construction

TOTAL (2%) = $2,004,221 NEW SHERMAN HIGH SCHOOL PROBABLE COST REVIEW CONSTRUCTION CONTINGENCIES Land acquisition • 100 acres assumed

TOTAL = $2,700,000 NEW SHERMAN HIGH SCHOOL PROBABLE COST REVIEW CONSTRUCTION CONTINGENCIES

Owner's Betterment $1,503,166 Contractor's Contingency $2,004,221 Land Acquisition $2,700,000

TOTAL CONTINGENCY COST $6,207,387 NEW SHERMAN HIGH SCHOOL PROBABLE COST REVIEW TOTAL CONSTRUCTION COST

TOTAL CONTINGENCY COST $6,207,387

TOTAL BUILDING COST $100,211,056 TOTAL CONSTRUCTION COST $106,418,443 NEW SHERMAN HIGH SCHOOL PROBABLE COST REVIEW SOFT COSTS • Jurisdictional and Professional fees • City Permitting and inspections • State accessibility review and inspections • Site surveys (geotechnical and topographical) • Architectural and Engineering fees • Materials Testing during construction • Sub-surface utility exploration

TOTAL (12%) = $12,770,213 NEW SHERMAN HIGH SCHOOL PROBABLE COST REVIEW SOFT COSTS • Fixtures, Furniture and Equipment • Includes desks, chairs, playground equipment, athletic equipment, uniforms, library shelving, lawn mowers, appliances, etc

TOTAL (10%) = $10,641,844 NEW SHERMAN HIGH SCHOOL PROBABLE COST REVIEW SOFT COSTS • Technology • Includes network devices such as switches & routers, servers, wireless access points, classroom devices such as projectors, smart boards, large format monitors, security cameras etc

TOTAL (4.5%) = $4,509,498 NEW SHERMAN HIGH SCHOOL PROBABLE COST REVIEW SOFT COSTS TOTAL

Jurisdictional and Professional Fees $12,770,213 Furniture, Fixtures and Equipment $10,641,844 Technology $4,509,498

TOTAL SOFT COST $27,921,555 NEW SHERMAN HIGH SCHOOL PROBABLE COST REVIEW TOTAL PROJECT COST TODAY

TOTAL CONTINGENCY COST $6,207,387

TOTAL BUILDING COST $100,211,056 TOTAL CONSTRUCTION COST $106,418,443

TOTAL SOFT COST $27,921,555 TOTAL PROJECT COST (TODAY) $134,339,998 NEW SHERMAN HIGH SCHOOL PROBABLE COST REVIEW INFLATION • 0.5% per month for two years, 0.25% per month thereafter • Bidding in May of 2018

$146,227,275 NEW SHERMAN HIGH SCHOOL PROBABLE COST REVIEW TECHNOLOGY UPGRADES • Based on assessments of existing conditions and vision for future classroom integration • December 2016 numbers • Included in all Scenario Package 1 is: • To provide infrastructure and classroom devices improvements at every campus = $12,620,740 • To provide infrastructure upgrades, connectivity and secondary network center = $1,451,000 • NOT included • End user devices NEW SHERMAN HIGH SCHOOL PROBABLE COST REVIEW SCENARIO 1 2016 2035 2025 2030 2020 2040

NEW SHERMAN HIGH SCHOOL $146,227,275 PACKAGE 1 CAMPUS TECHNOLOGY $12,620,740 DISTRICT TECHNOLOGY $1,451,000 $160,299,015

CONVERT DILLINGHAM PACKAGE 2 INTERMEDIATE TO MIDDLE SCHOOL CONVERT DILLINGHAM PACKAGE 3 INTERMEDIATE TO MIDDLE SCHOOL

REPLACE FAIRVIEW ES, REPLACE PACKAGE 4 CRUTCHFIELD ES, REPLACE WAKEFIELD ES, PRE-K RENOVATION @ 1 ES, REPURPOSE DOUGLASS ECC, REPURPOSE JEFFERSON ES, CAMPUS TECHNOLOGY, DISTRICT TECHNOLOGY UPDATE FROM BOK FINANCIAL CONSENSUS BUILDING TABLE EXERCISE Knowing the needs and the costs are there any projects you feel should be deleted from the long range plan? Consensus of ALL tables would remove the project from ALL scenarios. CONSENSUS BUILDING SETTING THE LONG RANGE VISION TABLE EXERCISE Is there a scenario any members of your table can absolutely not support? Is there a scenario all members of your table can support? CONSENSUS BUILDING SETTING THE LONG RANGE VISION COMMITTEE ACTIVITY Consensus of ALL tables creates consensus of Committee IF no Consensus of ALL tables then open round of discussion for and against CONSENSUS BUILDING SETTING THE LONG RANGE VISION TABLE EXERCISE

Is there now a scenario all members of our table can support? CONSENSUS BUILDING SETTING THE LONG RANGE VISION COMMITTEE ACTIVITY

Consensus of ALL tables creates consensus of Committee If no Consensus of ALL tables then call for a vote CONSENSUS BUILDING HOW BIG OF A FIRST STEP TABLE EXERCISE Would you recommend action to address projects of package 1 of the selected scenario now? Would you recommend action on all or some of the projects of package 2 of the selected scenario now? CONSENSUS BUILDING HOW BIG OF A FIRST STEP COMMITTEE ACTIVITY Consensus of ALL tables on the inclusion of packages / projects being recommended for action now creates consensus of the Committee If no Consensus of ALL tables then open round of discussion regarding projects / packages of discrepancy CONSENSUS BUILDING HOW BIG OF A FIRST STEP TABLE EXERCISE

Is there now a set of projects / packages you would recommend for action now? CONSENSUS BUILDING SETTING THE LONG RANGE VISION COMMITTEE ACTIVITY

Consensus of ALL tables creates consensus of Committee IF no Consensus of ALL tables then call for a vote RULES OF COMMITTEE VOTE If consensus cannot be reached, a vote will be called • The Rules • Simple Majority • If simple majority not reached on first vote, then top two options used for a run-off vote. • Respect the decision of the committee