Bond Updates, Happy Holidays
Congratulations on surviving the last week of school before break. It was a whirlwind of holiday concerts, celebrations and final exams. Congratulations again to PVHS Sea Kings on winning the State Championship! And thank you again to Peninsula Education Foundation for funding the elementary music teachers who put together our adorable holiday shows.
We discussed next steps for the bond measure at Wednesday’s meeting. I encourage you to take the time to watch the presentation by Jon Isom and listen to our follow up questions and discussion. The written presentation is here.
Some high level points:
Bond Oversight Committee applications are out now and due January 13, 2025. Apply here.
Isom recommends a competitive sale (versus negotiated sale). See Exhibit A p. 10 for more on that.
Isom recommends starting the issuance process now and investing the proceeds into an interest-bearing County-administered account until projects are ready.
Isom explained that there is an “arms race” to retain contractors and begin construction projects due to the approval by voters of tens of billions of dollars in bonds in 2024. While we want to make sure we can secure the most qualified contractors for our projects, I urge caution and deliberation in this process. We do not want to act quickly without thinking strategically and prioritizing our spending in a diligent manner.
I asked if we should incorporate our capital projects into the district’s budget (something most districts do not do). The response was “no,” because it will make the bond program too complicated and we want to be “quick and nimble.” One of my concerns as we move forward in this process is that the district will continue unnecessary spending on non-critical items so long as the infrastructure and facilities needs are not reflected in the budget.
Side note: While voter approval of the bond means the district can now afford to upgrade critical infrastructure, the district’s operating budget (as shown in the audit report and first interim report (Exhibit A) presented at the previous meeting) requires urgent attention and cuts. Projections show us significantly blowing through our general fund balance over the next three years while leaving the reserve total static at 3%, instead of rebuilding to the 10% reserve balance. For more details, see Exhibit A, p. 44, line D(2) and p. 45, line E(3).
My request to agendize discussion of legal action against the State to obtain fair and equal funding is pending, and I hope it will be on an agenda soon.
The district issued an RFQ for a bond program manager. This is different from a construction project manager, and the group selected for the former is precluded from acting in the latter capacity. You can read the RFQ for services here. (RFQ: 019-25-01-08 BOND PROGRAM MANAGEMENT SERVICES).
Projected timeline from Isom (p. 18 of the presentation):
That’s a lot of dense information so I’ll wrap this up. If you have any questions, please contact me. Enjoy the holidays with your families!
As always, this is just one lady’s opinion. I don’t speak for the board and no one else speaks for me.
