MASTER FACILITY PLANNING COMMITTEE...SUMMARY The Committee recommends a $569,000,000 facilities bond...

MASTER FACILITY PLANNING COMMITTEE

MIDLAND INDEPENDENT SCHOOL DISTRICT

JULY 22, 2019 RECOMMENDATION TO THE BOARD

SUMMARY

▪ The Committee recommends a $569,000,000 facilities bond election be called for November 2019.

▪ This was difficult. That is why we spent 18 months and had a multi-month gap in the middle.

▪ This recommendation is not filled with “wants”. It is needs based.

▪ This is what it costs when you experience a high level of student growth and don’t build a new high

school for 60 years or a new junior high for 30 years.

▪ We recommend MISD continue to fully utilize all existing secondary buildings – no building retirements.

▪ The Committee is in Consensus.

▪ This recommendation is not a referendum for or against MISD. The community needs additional seats in

order to educate our children. It is as simple as that.

▪ Having said that, these seats will allow MISD to continue its momentum in implementing a System of Great

Schools.

▪ This presentation will outline several fiscal considerations that we think will be important to taxpayers.

▪ As will be shown, there is somewhat of a perfect storm – to the positive – that helps to significantly

mitigate taxpayer impact of the proposed bond.

Page 1

COMMITTEE PURPOSE AND COMPOSITION

Page 2

COMMITTEE PURPOSE

The Midland School Facility Planning Committee was tasked withresearching and developing a District-Wide Facilities Master Plan thatwould meet the following goals:

Provide Capacity for 10 Year Projected Student

Enrollment Growth

Support the District’s Educational Improvement

Efforts

Develop a Recommendation that could be presented to the

Board for its consideration

Page 3

MIDLAND FACILITY PLANNING COMMITTEE

Group of 39 individuals from across the community and within theSchool District were asked to collaboratively study and prioritize thedistrict’s most critical needs and prepare a thoughtfulrecommendation to Trustees.

BY THE COMMUNITY FOR THE COMMUNITY

Page 4


Brent Hilliard

Brandon Hodges

Paul Hughes

Gary Law

Delia Martinez

John McAfee

Tina Mocksfield

Jose Ortiz

Becky Page

Susan Palmer

Patrick Payton

Laura Roman

Frank Salvato

Luis Sanchez

Michael Sanchez

Ronnie Scott

Austin Booker

Jay Edwards

Kevin Foreman

Wilson Heidelberg

Jill Arthur

Rick Davis

James Fuller

Bryan Murry

Kim Evans

Blake Feldt

Tom Holly

Jeff Horner

Elana Ladd

Orlando Riddick

Community Members (20)

Shelly Haney Diana Hines Stan VanHoozer John Wilks

District Members (5)

District Board /Administrators (14)

Patrick Jones

Elise Kail

James Riggen

Deb Shaw

Melissa Ware

Page 5

COMMITTEE OBJECTIVES

Page 6

FACILITY COMMITTEE OBJECTIVES

▪ Recommend appropriate secondary and Pre-K capacity additions and

upgrades in order to meet anticipated ten-year enrollment growth.

o Primary objective was to address secondary capacity issues.

o Recent legislation presented the opportunity to expand Pre-K availability at

relatively low cost and potentially high benefit.

▪ Address other issues of importance at the secondary school level

including campus security, technology, select capital replacement, and

minor athletic improvements.

▪ Be fiscally responsible.

Page 7

THE PROCESS

Page 8

TIMELINE

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug

20192018

Page 9

IMPLEMENTED A PROCESS FOR REACHING CONSENSUS

1. Fully Support: “I like it.”

2. Endorsement with minor concerns: “Basically I like it.”

Enthusiastic Support

3. Agree with Reservation: “I can live with it.”

4. Abstain: ”I have no opinion.”

5. Stand Aside: “I don’t like this, but I don’t want to hold up the group.”

Lukewarm Support

6. Disagreement, but willing to go with majority:

“I want my disagreement noted, but I’ll support the decision.”

7. Disagreement, with request not to be involved in implementation:

“I don’t want to stop anyone else, but I don’t want to be involved moving forward.”

Meager Support

8. Cannot support the proposal

Strong Objection

Page 10

THE COMMITTEE DID A LOT OF HOMEWORK

▪ Historic MISD Membership

▪ Past Demographic Studies (Arnold Oates and DeJong Richter)

▪ Existing Building/Site Capacity (Elementary & Secondary)

▪ Existing MISD Facility Conditions

▪ City Housing/Development Growth

▪ Midland on the Move Data

▪ MISD’s System of Great Schools

▪ MISD’s Grade Configurations

▪ District Program Needs: Academic, Athletic, Fine Arts, CTE

▪ Facility Deferred Maintenance Needs

▪ District Technology Needs

▪ High School Student Forum / Community Forums

▪ Secondary School Safety/Security

▪ Educational Facility Model Review

▪ Existing Campuses Tours (Bunche, Yarbrough, Alamo, Goddard, San Jacinto, Lee Freshman, Coleman, LSHS, MSHS and Rankin H.S.)

▪ Proposed Facility Improvement Cost Review

▪ Tax Impact Analysis

▪ Davis Demographic Study Review

▪ Community Survey Review

▪ MISD Financial/Budget Review

▪ Bond Proposal Development

▪ Consensus Building

Page 11

STUDENT ENROLLMENT PROJECTIONS

20,000

22,000

24,000

26,000

28,000

30,000

32,000

34,000

SY2009

SY2010

SY2011

SY2012

SY2013

SY2014

SY2015

SY2016

SY2017

SY2018

SY2019

SY2020

SY2021

SY2022

SY2023

SY2024

SY2025

SY2026

SY2027

SY2028

MISD - Historical and Projected Enrollment

Historic Committee Demographer

Projected Increase - 2.5% per year

Page 12

FACILITY ASSESSMENT HIGHLIGHTS

Secondary Facilities Require Upgrading

▪ Average Age over 50 years

▪ Roofs Need Replacing

▪ HVAC Upgrades Needed

▪ Landscaping/Turf Needs Upgrade

Secondary Facilities are Overcrowded

▪ 76 Portable Classrooms on Secondary Campuses

Site Constraints

▪ Midland High School Cannot Expand on Current Site

▪ San Jacinto Cannot Expand on Current Site

FACILITY TOURSAlamo Junior High School (1950’s)

Bunche Elementary (2015)

Coleman High School (1992)

Lee Freshman High School (1956)

Lee High School (1961)

Midland High School (1949)

San Jacinto Junior High School (1950’s)

Page 13

• MISD added approximately 1,400 students over the last three years

• Enrollment is projected to increase another 8,600 students over the next 10years, a 33% increase.

• Grades 9-12 are projected to add approximately 3,000 students over thenext 10 years, a 45% increase.

• The Committee recognizes these projections cannot be exact:

• If enrollment is below projections, this plan will provide capacity formore than 10 years.

• If enrollment outpaces projections, the District will have to addresscapacity sooner than 10 years.

ENROLLMENT GROWTH in SECONDARY SCHOOLS

Page 14

• In August 2019, every secondary campus is expected to have morestudents than the facility’s legacy capacity.

• The last new comprehensive high school was built in 1961, 58 years ago.

• The last new junior high school was built in 1993, 26 years ago.

• The average age of district secondary schools is ~50 years old.• This bond will reduce the weighted average age of our secondary

schools to ~ 28 years while also upgrading some of our oldest facilities.

• MISD currently has 76 secondary classrooms in portable buildings.• This number is projected to increase every year

ENROLLMENT GROWTH in SECONDARY SCHOOLS

Page 15

• Currently MISD serves approximately 800 Pre-K students

• The State Legislature approved funding full-day 3- and 4-year-olds

• The community has an additional 1,200 eligible 3- and 4-year-oldsfor fully funded Pre-K education

• The Committee’s Plan provides for capacity for all eligible fullyfunded Pre-K students.

• This is one of the most impactful efforts the community can work onto improve educational outcomes.

ENROLLMENT GROWTH inPRE-K SCHOOLS

Page 16

COMMITTEE RECOMMENDATIONS

Page 17

COMMITTEE RECOMMENDATION

The Midland School Facility Planning Committee recommends to theMISD Board of Trustees to call a bond election in the amount of$569,000,000 on November 5th, 2019.

Page 18

• After examining the facilities and data, we recommend to expand capacityto meet student growth needs by approximately 4,700 seats throughoutthe district:

▪ 9 – 12th 2,200▪ 6 – 8th 1,300▪ Pre-K 1,200▪ TOTAL 4,700

• We also recommend upgrading existing secondary campuses for safety,security, technology and select capital improvements to further extendthe life of the District’s existing secondary campuses.

ENROLLMENT GROWTH

Page 19

We recommend three comprehensive high schools:

• Construct two new Comprehensive High Schools

• 2,400 student capacity each serving grades 9 through 12

• Notionally, one new high school would be located on the east side of Midland and one would be located on the west side of town.

• Renovate and Expand the Existing Lee High School Site:

• 2,400 student capacity serving grades 9 through 12

• Additions/Improvements to Classrooms, Laboratories and Learning Spaces

• Addition of Kitchen and Cafeteria

• Addition of Gymnasiums, Locker Rooms, Fieldhouse, Practice Facilities

Naming of schools outside Committee’s purview (defer naming post-election)

3 COMPREHENSIVE 9th – 12th GRADE CAMPUSES

TOTAL INVESTMENT $440,000,000Page 20

We recommend fully utilizing the Existing Midland High School but re-purposing it into two separate schools on one campus:

• Relocate San Jacinto Junior High to the current MHS campus• Convert it to a comprehensive 6th – 8th grade Middle School• Increase capacity from 850 to 1,140• Consider making it a Fine Arts Middle School Academy (Bowie track)

• Create a New 6th – 12th Grade Specialized Academy• These are not extra seats - the student capacity of this academy is needed to

address overall secondary capacity needs.• Enrollment of approximately 100 students per grade level• May create separate entrance and administration if desired• The Academy provides the community and district flexibility as to its design

(CTE, STEM, Young Men’s Academy, Petroleum Academy or something else).

EXISTING MIDLAND HIGH SCHOOL CAMPUS


• We recommend converting the remaining Junior High Schools (Abell, Alamo, and Goddard) intocomprehensive 6th – 8th grade Middle Schools. We further recommend converting the two freshmen schools(Midland Freshman and Lee Freshman) into comprehensive 6th – 8th Middle Schools.• Moving 6th graders onto middle school campuses creates capacity at the existing elementary schools to

expand the Pre-K program. • Pre-K programs are accepted as an important component in improving educational outcomes. This was

most recently demonstrated by the Texas Legislature funding full-day early education programs.• Conversion aligns Midland with state requirements (i.e. 6th grade teachers require specialized certification

as secondary teachers as opposed to elementary certification in grades 1-5). • Interestingly, IDEA and YWLA align their 6th graders in their secondary schools.• This conversion allows more flexibility in course selection at the 6th grade level (e.g. Algebra).

• Converting existing Freshmen schools to Middle Schools:• Means no new Junior High / Middle School buildings will have to be built.• Fully utilizes all existing buildings, an important component of the plan.

MIDDLE SCHOOLS

TOTAL INVESTMENT $0Page 22

We recommend upgrading safety and security at each of the secondary campuses:

• Security Vestibules

• Security Fencing

• Student Pick-up/Drop-off Improvements

• Fire Alarm Upgrades

• Security Cameras and Access Control

SECONDARY SCHOOL SAFETY / SECURITY

TOTAL INVESTMENT $33,000,000

We recommend upgrading technology at each of the secondary campuses:

• Network Infrastructure

• Classroom Technology

• Communication Systems

Page 23

We recommend performing major capital replacements at the secondary campuses to improveoperational efficiency utilizing I&S funds to avoid paying 30% recapture payments to the statefrom the M&O fund:

• Roof Replacements

• Energy Management System Upgrades

• HVAC Improvements

SECONDARY SCHOOL CAPITAL REPLACEMENTS

TOTAL INVESTMENT $16,000,000

We recommend re-purposing the Existing San Jacinto Junior High School Campus into the new Young Women’s Leadership Academy:

• Relocate from Jones Elementary School• Grades 6th through 12th

• Enrollment of 700• This Academy has had tremendous educational success in other Texas communities.

Page 24

We recommend the following athletic and site improvements at the comprehensive middle schools

• Abell/Alamo/Goddard• Practice Track Around Football Field with Lights• Landscape / Site Improvements

• Midland/Lee Freshman• Artificial Turf Practice Field• Practice Track Around Football Field with Lights• Landscape / Site Improvements

• Community/District Benefits• Landscaping Improvements reduce water use and maintenance• Artificial Turf improves student safety• Tracks / Lights enhance community quality of place

These improvements comprise ~2.6% of the proposed bond.

EXISTING JUNIOR HIGH / FRESHMAN CAMPUS ATHLETIC IMPROVEMENTS


As a part of the 10-year Facility Master Plan, the Committee recommends that the MISD Board of Trustees call a Bond Election November 5th, 2019 summarized as follows:

• Construct Two New Comprehensive High Schools

• Renovate/Expand Existing Lee High School Site

• Fully Utilize and Re-purpose Existing Midland High School Site

• Fully Utilize and Re-purpose Existing San Jacinto Junior High Site

• Safety and Security Upgrades at Secondary Campuses

• Technology Upgrades at Secondary Campuses

• Select Capital Replacement at Secondary Campuses

• Athletic / Site Improvements at Existing JH/Freshman Campuses

SUMMARY


SUMMARY

Item Total

Replace Midland High School (new construction) (2400 student capacity) $171,000,000

New 3rd Comprehensive HS (2400 student capacity) $171,000,000

Upgrade Lee HS for 9th Grade / Upgrade / Refurbish (2400 student capacity) $98,000,000

Re-purpose Existing MHS (Expanded SJ and 6th-12

th Academy) $65,000,000

Convert San Jacinto to YWLA $5,000,000

Schools Safety & Security Upgrades $15,000,000

District-Wide Technology Upgrades for Secondary $18,000,000

Secondary Capital Replacements $11,000,000

Secondary Schools Athletic / Site Upgrades $15,000,000

Total $569,000,000

Newly Constructed Campuses 60% $342,000,000

Upgrade / Refurbishment / Re-purpose / Expand 30% $168,000,000

Security / Technology 6% $33,000,000

Secondary Capital Replacments 2% $11,000,000

Secondary Schools Athletic / Site Upgrades 3% $15,000,000

Total 100% $569,000,000

Midland School Facility Planning Committee Recommendation

Page 27

SUMMARY

Comprehensive 9th - 12th High Schools

Midland East (new construction)

Midland West (new construction)

Midland Central (expanded / refurbished)

Comprehensive 6th - 8th Middle Schools (no new construction)

Abell

Alamo

Goddard

San Jacinto (moved to current MHS site)

SE MS (current MFHS site)

NE MS (current LFHS site)

Schools of Choice / Speciality Schools

Early College High School (9th - 12th, plus 2 years of college)

Coleman High School (9th - 12th)

Young Women's Leadership Academy (6th - 12th)

New Academy at existing MHS site (6th - 12th)

IDEA Public Schools Travis Campus (6th -12th)

IDEA Public Schools Campus #2 (6th -12th)

IDEA Public Schools Campus #3 (6th -12th)

Possible IDEA Public Schools Campus #4 (6th -12th)

Page 28

FISCAL CONSIDERATIONS (Cost and Taxpayer Implications)

Page 29

Fiscal Considerations

Be Fiscally Responsible

• Considerations:

▪ Construction Inflation

▪ Current & Projected Interest Rates

▪ Mineral & Commercial Impacts on Overall Tax Valuations

▪ 2019 Texas Legislature Impacts (HB3)

▪ Impact of Public-Private Partnership

▪ Bond Amortization Period

Page 30

FISCAL CONSIDERATIONS

▪ The impacts of inflation on construction costs can be significant.• For example, if construction inflation averages 5% per year, a $500 million bond today will cost

$638 million in five years.

• If we delay, even moderate inflation costs could cost taxpayers an additional $138 million.

▪ Near record low interest rates can be an important source of taxpayer savings.• Interest rates are forecast to be near record lows over the period the bonds will be issued (i.e.

the next 1-5 years). During this time, the projected interest rates are projected to be ~3% per

year below the average interest rate over the last 60 years.

• If we wait and interest rates return to a historic average, the additional interest costs on a $500

million bond could cost taxpayers an additional $150 million - $240 million (depending on the

bond amortization period).

• Importantly, the cost of a $500 million bond is not the same today as it was in 2005 or 2006 or

2007. Our frame of reference needs to evolve with the cost of interest (and commercial

valuations).

Page 31


▪ Mineral and commercial valuations are at an all-time record high – this will not

always be the case. • What do these high valuations mean?

• It means that homeowners and small business owners will pay less now for this bond than

they would have before the mineral valuations increased so dramatically and they will pay

less now than they would otherwise pay if we wait until after mineral and commercial

valuations peak and start back down.

• It is difficult to predict when mineral and commercial valuations will peak, but they are at

record levels now so we should consider taking advantage of those valuations.

• Given current valuations, home owners and apartment dwellers will pay less than one half of

the total cost of the property taxes collected for school operations and capital programs.

Page 32


▪ Recent legislation has given us a significant opportunity to lessen the impact of

a bond on local taxpayers.• The Texas legislature just reduced the school property tax rate by $0.07/$100 valuation

across all school districts in Texas.

• This means that the impact of the proposed bond will be 65% - 95% less to an average

Midland homeowner than it otherwise would have been.

• As we will show, those savings are fairly astounding. These are real savings.

• These savings may not be permanent – we should use them while we have them.

Page 33


▪ While the Committee was developing its recommendations, a parallel effort in the form of a public-private

partnership was also underway to complement and complete Midland’s overall school facility plan.

• This partnership continues the successful tradition of public-private partnerships implemented by the Hospital

District, the City of Midland, and Midland College.

• It involves Philanthropy, Business, and MISD working together to bring a highly qualified Public Charter

School to Midland-Odessa.

• This Charter School will result in up to 10,000 new seats being built in Midland and Ector County.

• The private side of the partnership (primarily Permian Basin-based foundations along with the PSP)

contributed an extraordinary $55,000,000 in order to make this partnership a reality.

• MISD played an important role in the effort. MISD’s initial in-district partnership school will be the first campus

that goes “live” with instruction beginning in 2020.

• Importantly, it is anticipated this public–private partnership will save Midland taxpayers $150,000,000 -

$180,000,000 - one of the largest public-private partnerships ever completed in the region.

• We feel this partnership was another important piece in the development of the most fiscally responsible plan

possible to address the school facility needs of our community.

Page 34


▪ Bond Amortization Period Matters

▪ To be clear, the Committee is not recommending a specific bond

amortization period.

▪ Rather, we are recommending the Board give strong consideration to the

major fiscal issues outlined by the Committee and make a conscious,

intentional decision on bond amortization period.

Taxpayer Impact of Bond Current MISD

(including impact of recent Tax Rate 25 Year 20 Year 15 Year

Texas Legislation) ($300,000 House) Amortization Amortization Amortization

$/year $2,744 $10 $40 $96

$/month $229 $1 $3 $8

Annual Homeowner cost vs. 25 year bond $29 $86

Total Interest $425,199,575 $306,000,000 $216,440,388

Interest Savings vs. 25 year bond $112,356,200 $208,759,187

Numbers provided by Hilltop Securities through MISD

Increase for $569,000,000 Bond

Page 35



(including impact of recent Tax Rate 25 Year 20 Year 15 Year


$/year $2,744 $10 $40 $96

$/month $229 $1 $3 $8


Total Interest $425,199,575 $306,000,000 $216,440,388



(excluding impact of recent Tax Rate 25 Year 20 Year 15 Year


$/year $2,744 $182 $211 $267

$/month $229 $15 $18 $22


Total Interest $425,199,575 $312,843,375 $216,440,388


Numbers provided by Hilltop Securities through MISD

Tax Increase for $569,000,000 Bond

Increase for $569,000,000 Bond

Page 36

CLOSING REMARKS

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CLOSING REMARKS

▪ By the time construction of the new buildings contemplated under the proposed bond are

completed, it will have been over 60 years since Midland built a new comprehensive high school

and over 30 years since it built a new comprehensive junior high / middle school.

▪ Once approved, it will take another five years to fully implement the attached plan. The longer

we wait, the more seats we may need and the greater the cost will be.

▪ Six decades ago, Midland as a community and through its school leaders positioned Midland

extraordinarily well for its future through their vision, their leadership, and their courage.

▪ In a similar way, MISD, a Committee of Citizens, Philanthropy, Business, and have come

together to develop a thoughtful, coordinated plan based upon needs (not wants) that

incorporates important taxpayer considerations.

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CLOSING REMARKS

▪ The Committee understands that passing this bond is only one step in many necessary steps to

improving the District’s academic performance.

▪ If this bond is approved, it will in no way relieve MISD of its obligation to improve Midland’s academic

performance from its current levels. If anything it raises the Community’s and the Committee’s

expectations of academic performance.

▪ The Committee recommends the School Board consider establishing a Community Oversight

Committee – possibly including members of the current Facilities Committee – to stay in touch with

project implementation and provide scheduled reports to the community at large of progress and

deviations from the plan.

▪ The Committee appreciates the opportunity to work with the District on such an historic undertaking

and through the consensus process previously described, we submit this proposal to the Board for

its consideration.

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MIDLAND INDEPENDENT SCHOOL DISTRICT

JULY 22, 2019 RECOMMENDATION TO THE BOARD

MASTER FACILITY PLANNING COMMITTEE...SUMMARY The Committee recommends a $569,000,000 facilities bond...

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