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MEASURE C SCHOOL SAFETY AND MODERNIZATION

On November 3, 2009 the voters residing in the Mill Valley School District (MVSD) approved the Measure C Safety and Modernization Bond of 2009 (Measure C). Measure C authorized the MVSD to issue up to $59,800,000 in bonds for Phase 1 of the approved MVSD Facilities Master Plan. The bond proceeds are to be used:

"To reconstruct and modernize Mill Valley elementary and middle schools, including installing and constructing fire safety, energy, communication, seismic and disabled access improvements; providing sufficient space for students; and repairing outdated plumbing, electrical, and other vital systems and facilities."

In March 2010 the MVSD issued $29,195,000 in principal amount of bonds, Series A. On April 19, 2012 the MVSD issued $30,605,000 in principal amount of bonds, Series B.

OVERSIGHT OF MEASURE C SPENDING—THE CITIZENS’ OVERSIGHT COMMITTEE

Measure C was approved under a law that allows a school bond measure to be passed by 55% of the voters if certain safeguards are implemented. One of those requirements was that the MVSD establish a Citizens’ Oversight Committee (COC).

The COC’s role is:

• To actively review all projects and expenditures, as approved by the voters

• To provide oversight and accountability to ensure that Measure C funds are used as they were intended and not used for prohibited purposes

• To report to the community on the progress of Measure C projects

Under California law and its Bylaws, the COC must confirm in writing:

• The bond proceeds are being used only for the purposes stated in Measure C

• No proceeds are used for teacher or administrative salaries or school operating expenses

Citizens’ Oversight Committee Mill Valley School DistrictAdministrative Office 411 Sycamore Avenue Mill Valley, CA 94941

Roger Peters, Chair, Community-at-large appointed by Board

Liz Bayer, Business Community

Andrew Boczek, Parent of current student

Lyra Kelly, Parent of current student active in a parent teacher organization

Nancy McCarthy, Taxpayer’s organization

Marco Pardi, Community-at-large appointed by Board

Eric Somers, Parent of current student

Stefany Toll, Parent of current student

Vacant, Senior citizens’ organization

MILL VALLEY SCHOOL DISTRICT | MEASURE C SAFETY AND MODERNIZATION BONDCITIZENS’ OVERSIGHT COMMITTEE

THIRD ANNUAL REPORT TO COMMUNITY AND TRUSTEESCOVERING THE PERIOD OF JULY 1, 2011 TO JUNE 30, 2012

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In carrying out its oversight responsibilities the COC reviews financial and performance audits conducted by independent auditors, reviews the progress and costs of Measure C projects, and reviews efforts by the MVSD to maximize the efficient use of bond revenues by implementing cost-savings measures.

The COC meets quarterly and holds public meetings. COC agendas and minutes are posted on the MVSD website www.mvschools.org under "Facilities Modernization".

COC REVIEW OF MEASURE C PROJECT WORK IN 2011 - 2012

This is the third report of the COC. For financial accountability purposes it covers the period from July 1, 2011 through the fiscal year (FY) ending June 30, 2012. Measure C project activities that occurred from July 1, 2012 through the end of calendar year 2012 are presented for context, although the independent performance and financial audits referenced in this report do not cover that period.

The summer of 2012 was the second summer where significant Measure C modernization and reconstruction work occurred at MVSD schools. In the summer of 2011 work was focused on Old Mill and Tam Valley Schools. In the summer of 2012 attention turned to Park and Strawberry Point Schools. At each, work started immediately after classes let out in June and was constant over the summer in order for work to be substantially completed at the onset of school in September. For the most part that work was completed, with some work at Park School extending well into September. As with the work in summer 2011, the project schedule last summer was under a significant time constraint.

The work plan for Tam Valley, Park and Strawberry Point Schools were also under significant budget constraints. Those constraints resulted in large part from the fact that the bids came in higher than had been anticipated due to materials and labor cost escalation as the California economy began to rebound. The higher bids required that some planned scope for Edna Maguire School had to be reduced or eliminated, and that some project aspects that had been planned for Tam Valley, Park and Strawberry Point Schools were also reduced or eliminated.

The MVSD Measure C project team was able to accomplish the required budget trimming in part because it had moved to a "Lease-Leaseback" project delivery method due to lessons learned during the modernization work at Old Mill and Tam Valley Schools in summer 2011. Although some project work that would have been desirable did not make the final list of authorized work, the project team remains optimistic that the core project work anticipated in the Pre-Bond Implementation Plan can be completed within the original Measure C budget authorization.

Summer 2012 also saw the demolition of the old Edna Maguire School and the construction of the interim school. Despite the tight timeline, the new interim campus was ready for the start of school in September, new underground facilities for the new campus have been installed, and construction of the new school is making good progress toward completion in the later part of 2013. The COC concluded that the project team admirably performed the multiple tasks required to both keep Edna Maguire as a functioning school and the construction of the new campus close to schedule.

A summary review of the Park, Strawberry Point and Edna Maguire School projects follows.

Park School - Covered walkway

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• Electrical service upgrade • New thermostatic controls for

existing radiators• New fire sprinkler system• New fire alarm system• New clock, bell and paging system• Americans with Disabilities Act (ADA)

compliance• Food service kitchen compliance• Repair or replaced select aging

electrical system components• Upgrade computer wiring

infrastructure and wireless access• Install short throw (digital) projectors

in many classrooms• Replaced select aging plumbing

system components• Repair known roof leaks• Paint exterior• Paint portions of interior• Repair or replace portions of flooring

in classrooms• Replace flooring in main building

hallway• Repair or replace select windows,

glazing, doors, hardware & signage

• Install several ceiling fans• Plant shade trees on Elm Street for

passive cooling• Plant shade trees in play areas on

blacktop• Repair or replace select portions of

cabinets and countertops• Build two (2) new exterior stairs• Replace wood siding on Annex• Add three (3) new restrooms• Reconfigure both preexisting

restrooms main building upper floor• Rebuild counselor’s office • Install seismic gas shut off • Reconfigure library annex• Resurface portions of interior walls

and ceilings of classrooms, 13, 14 and 16

• Remodel teacher workroom• Remodel front office and nurse

station• Remodel all landings at bottom of

two (2) exit stairs at main building• Remodel resource room• New landscaping at select areas• Restripe playground

• New ball walls• New concrete entry ramp, stairs and

fence with gate(s) at Elm Street• New concrete entry ramp and fence

with gate(s) at Catalpa Street• New sidewalk and retaining wall on

Elm Street around Elm Tree• New flagpole and paving at main

entry• Refinish main entry doors• Reconfigure entry doors from

playground into rooms behind Library and Classroom 13

• Add covered walkway from Annex to elevator to match existing

• New roof access hatch• Select new down spouts• New custodial closet• New PE storage container• New mechanical ventilation for

student restrooms• New carpet in all classrooms • New computer component 4-post

racks in computer closets• New computer closet in Annex• New hot water heater at serving

kitchen

Revised Budget as of March 14, 2013

Expenses to March 14, 2013

Balance as of March 14, 2013

Construction Costs $3,240,353 $3,211,330 $29,023

Architectural, Engineering and Other Costs $1,128,354 $1,094,563 $33,791

TOTALS $4,368,707 $4,305,893 $62,814

MODERNIZATION WORK AT PARK SCHOOL

Park School Before - Back of school Park School After - New window glazing, water fountain, paint, asphalt, lighting and playground striping

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• New fire alarm system• New clock, bell and paging system• Americans with Disabilities Act (ADA)

compliance• Repair or replace select aging

electrical system components• Upgrade select exterior lighting• Upgrade select computer wiring

infrastructure, improve wireless access

• Repair or replace select aging plumbing system components and air distribution system components

• Paint exterior• Paint select portions of the interior of

buildings• Add safety fencing• Replace select flooring• Repair or replace select doors,

hardware and signage• Add fire hydrant• Install seismic gas shut off • Add mechanical ventilation in

hallways of main building• Re-stripe and seal all playgrounds• Reconfigure pedestrian walkways in

parking lot• Add new entry gates and fencing• Install short throw digital projectors

in many classrooms• Install new drop ceiling in Art room• Improve kiln venting in Art room• Reconfigure dumpster enclosure• Add new solar ready covered

walkways from library to restrooms and classrooms across lunch area

• New occupancy sensor light switching

in all classrooms and offices• New flagpole• Replace classroom sink faucets with

new fixtures• New duct work over administration

building• Install new cubbies and coat racks at

portable classrooms• New irrigation at lunch area

landscape• Access improvements to school

garden• Install new trench drain between

asphalt and play field• Install hot water heaters at serving

kitchen

MODERNIZATION WORK AT STRAWBERRY POINT SCHOOL

Revised Budget as of March 14, 2013

Expenses to March 14, 2013

Balance as of March 14, 2013

Construction Costs $1,831,371 $1,831,282 $89

Architectural, Engineering and Other Costs $857,287 $826,498 $30,789

TOTALS $2,688,658 $2,657,780 $30,878

Strawberry Point School Before - Playground and entry Strawberry Point School After - New playground striping, paint, flagpole and entry

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• Install construction fencing• Demolition of the site including

all school buildings (existing Kindergarten wing to remain) and District warehouse

• Perform site grading and building pads

• Install permanent utilities for Interim School and New School

• Install portable classroom buildings to include Classrooms, Multi Purpose Room, Library, Art, Admin Office,

Teacher Work Room, and restroom buildings

• Install interim fire access roads to Alto Field

• Install new fire hydrants• Install temporary parking lot• Americans with Disabilities Act (ADA)

compliance• Install seismic gas shut off• Reconfigure pedestrian walkways in

school

• Create new Interim Preschool• Add new entry gates and fencing• Marin Municipal Water District

replaced its waterline that bisects the school site and continued down Lomita

• PG&E moved power distribution poles and transformers

• PG&E replaced the gas transmission line that bisects the site

• AT&T moved its service

CONSTRUCTION COMPLETED AT EDNA MAGUIRE SCHOOL

Revised Budget as of March 14, 2013

Expenses to March 14, 2013

Balance as of March 14, 2013

Construction Costs $31,529,227 $8,399,630 $23,129,597

Architectural, Engineering and Other Costs $5,221,114 $3,098,139 $2,122,975

TOTALS $36,750,341 $11,497,769 $25,252,572

Edna Maguire School Before - Old Administrative office, driveway, and leased pre-school

Edna Maguire School After - New parking lot, Interim Administrative Office in leased portable, construction fencing around active construction site of new campus

ONGOING CONSTRUCTION AT EDNA MAGUIRE SCHOOL• New 1-story Kindergarten Building,

with playground, and covered lunch shelter

• New 1-story 1st Grade Building• New 1-story 2nd Grade Building• New 2-story building for 3rd, 4th, 5th

grades, library, art classroom, science classroom and covered lunch area

• New gymnasium building with kitchen, music classroom, stage, bleachers, outdoor stage, and covered lunch shelter

• New fire hydrants

• New turf, blacktop, ball walls, basketball standards, backstop, measured track, and play structures

• New Administration building with computer server room, front office, nurse station, and teacher work room

• Bioswales to treat storm water runoff• Reconfigured children’s garden with

outdoor shade structure• Removal of Interim School portables• Restoration of Alto Field• Construction of new parking lot,

driveways and fencing

• Increase the length of the drop off queue by 48% from 762 feet to a queue of 1,125 feet.

• Increased parking spaces by 86% from 67 preconstruction spaces to 125 striped parking spaces, with 18 addtional curb spaces available during non-school hours.

• New improved community bike path and crosswalks

• Planting 159 trees, 760 shrubs, 1,628 grasses and water tolerant plants, 285 succulents, and 23 vines

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Revised Budget as of March 14, 2013

Expenses to March 14, 2013

Balance as of March 14, 2013

General Expenses $4,863,943 $4,194,443 $669,500

Middle School ADA Work $957,080 $948,605 $8,475

Edna Maguire Elementary School $36,750,341 $11,497,769 $25,252,572

Old Mill Elementary $4,327,694 $4,275,620 $52,074

Tamalpais Valley Elementary School $5,412,132 $5,365,306 $46,826

Mill Valley Middle School Campus Upgrades $431,443 $426,443 $5,000

Park Elementary School $4,368,707 $4,305,893 $62,814

Strawberry Point Elementary School $2,688,658 $2,657,780 $30,878

TOTALS $59,800,000 $33,671,859 $26,128,139

MEASURE C FINANCIAL AND AUDIT INFORMATION

FISCAL YEAR 2011-12 AUDIT RESULTS AND COC REVIEW

The COC’s fundamental charge is to provide public oversight of the MVSD’s Measure C school safety and modernization expenditures so that citizens are assured that their tax dollars are being efficiently and effectively utilized to improve our school in the manner outlined when Measure C was passed.

In addition to reviewing project progress, project expenditures and meeting quarterly with the project team, the COC also reviews the annual financial and performance audits that are conducted by an independent auditing firm. The COC meets with the independent auditor to address any questions the members may have on the audit process and subsequent reports.

The independent auditor provides two reports. The first report is a financial report that addresses accounting and tracking of Measure C expenditures, and tracking of amounts received from bond issuances and amounts remaining in the Measure C fund. The second report is a performance audit that addresses the MSVD Measure C contracting processes and procedures, and the accounting for expenses booked as Measure authorized expenditures. The performance audit provides the basis for the COC’s confirmation that the Measure C proceeds are being used only for authorized safety and modernization project work.

As was the case for the prior two years, the MVSD received an "unqualified" opinion, also known as a clean opinion in its Measure C financial audit, meaning that the financial statements appear to be presented fairly with no problems with its FY 2011-12 Financial Statements.

The MVSD also received a clean opinion on its performance or compliance audit. This audit confirmed that Measure C funds were spent in accordance with the approved MVSD Facilities Master Plan for Measure C, and that no Measure C proceeds were used during FY 2011-12 for any teacher or administrative salaries or other school operating expenses in a manner prohibited by California law.

Based on its ongoing review of the Measure C projects and the results of the audits, the COC concludes that the modernization projects are being designed and implemented consistent with the permitted Measure C authorization. The MVSD FY 2011-12 financial and performance audits are available at the MVSD’s “Facilities Modernization” website: www.mvschools.org.

BREAKDOWN OF MEASURE C EXPENDITURES BY SCHOOL

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NEW CONSTRUCTION AT EDNA MAGUIRE SCHOOL

Two story classroom building, Kindergarten, and 1st gradeView from gymnasium covered lunch area

1st Grade Building on left, and Kindergarten on right Courtyard

Map of new campus

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NEW CONSTRUCTION AT EDNA MAGUIRE SCHOOL

Kindergarten foundation in front, 1st grade building and two story classroom in the background

Inside of 1st grade classroom looking north at window wall

Welding gymnasium roof supports Two story classroom building, library, art and science

Parking lot with two story classroom and gymnasium in background

Library foundation with gymnasium in background

Citizens’ Oversight Committee Mill Valley School District

Administrative Office 411 Sycamore Avenue Mill Valley, CA 94941