San Marino Unified outlines Measure M project priorities, sets May 27 for bond authorization

San Marino Unified School District officials on Tuesday presented a phased plan for projects funded by Measure M and said they will return to the board on May 27 with the bond-issuance resolution and draft sale documents.

The district’s study session on May 13 focused on project prioritization and bond financing for Measure M, a voter-approved bond measure totaling $200 million. Presenters recommended pursuing early-impact work — including replacement playgrounds at Carver and Valentine elementaries, targeted HVAC replacements, roof assessments and repairs, campus security fencing and restroom modernizations — while phasing larger high-school athletic projects to later issuances to limit interim housing and construction escalation costs.

District staff framed the priorities as a strategy to maximize student impact while protecting bond buying power. "I do want to emphasize the term study session," said Stephen Choi, district staff, introducing the meeting and stressing the board’s role in providing guidance. CJ Nolan, the district’s Measure M bond program manager, said the approach aims to “mitigate interim housing and escalation” so savings can be redirected toward tier 2 projects at the high school.

Why it matters: Measure M proceeds will pay for classroom modernizations, safety and infrastructure work across five campuses. The district must balance near-term needs (safety, TK/K classrooms, core learning-space modernizations) with longer-term, higher-cost projects at San Marino High School. Bond proceeds that are not spent within federal arbitrage rules can create tax-law constraints; presenters repeatedly noted the three-year spending window that typically applies to bond issuances.

Most important details

- Early-impact projects recommended for the first issuance(s) include: playground replacements at Carver and Valentine elementaries; districtwide roofing assessments and phased roof replacements; targeted HVAC unit replacements and control upgrades; campus security fencing and access control; targeted restroom modernizations; lunch shelters/outdoor dining; and a San Marino High School medical-arts CTE pathway project.

- Phasing and interim housing: The facilities master plan proposes new TK and kindergarten classroom clusters at several campuses to free existing portable classrooms for interim housing during modernization work. Nolan said repurposing existing modular classrooms instead of purchasing new interim units could materially reduce the budget set aside for interim housing and escalation.

- Financing constraints: Chet Wang of Kegent (financing advisor) and Kristen Gehr of Piper Sandler (underwriter) reviewed the district’s fiscal position and market context. The district’s assessed valuation recently rose to about $9.2 billion, and the median assessed single-family home value cited was $1,395,000. Gehr said rising national interest-rate volatility has pushed municipal borrowing costs higher but noted San Marino’s strong credit profile (Moody’s Aa1; S&P AA) puts the district in a favorable position with investors.

- Issuance timing and size: The facilities master plan budgets used 2024 dollars and divided projects into tier 1 (core learning spaces and safety) and tier 2 (larger high-school projects). The written planning example shared with the board showed multiple future issuances to reach the $200 million program; staff said the number and size of actual issuances will be set later and must consider the three-year expenditure rules for tax-exempt bond proceeds (5% committed within six months; 85% spent within three years of issuance). Board members discussed tradeoffs between issuing more in fewer financings (lower cumulative issuance costs) versus spacing issuances to match construction pacing and assessed-value changes.

- Certificates of Participation (COPs): Staff said paying off the district’s remaining COPs with bond proceeds is allowable under Measure M and would reduce annual general-fund debt-service obligations; the outstanding COP principal was cited as approximately $2.6 million.

Board direction and next steps

Board members asked for phasing that prioritizes safety and TK needs, for careful traffic/drop-off planning at Carver and Valentine, and for early work that delivers visible improvements to the community. Staff said they will solicit architects for initial projects, continue site-level design work, coordinate DSA (Division of the State Architect) reviews where required, and return on May 27 with the authorizing bond-resolution, preliminary official statement and related draft documents for board consideration.

Quotes from presenters

"This measure does require a lot of accountability," said Dr. De La Torre, superintendent, listing the citizens’ bond oversight committee, annual audits and public updates as program controls. "Our goal by the end of this presentation is to have a clear direction that allows us to move forward with the design for some of these projects," Nolan said. Kristen Gehr of Piper Sandler said, "We are in a higher interest-rate environment, but if you take a 30,000-foot view we’re still within historical averages," and she emphasized that San Marino’s credit ratings and strong local tax base are credit positives for pricing.

Ending

District staff emphasized transparency and frequent updates as the program moves from planning into procurement and design. The board directed staff to bring the bond-authorizing resolution and draft sale documents back at the May 27 meeting so the board can consider authorizing the first issuance and associated tax-levy actions required to implement Measure M.