Los Altos School District outlines Measure EE spending after $95 million Series A sale
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Summary
District staff told trustees the San Antonio campus is entering construction review and that Series A bond proceeds of $95 million will seed the Measure EE program; staff presented draft budgets, contingencies and a schedule that targets campus completion in 2028 and asked for board direction before finalizing the project list.
Eric, the district presenter, told the Los Altos School District Board that the district completed a successful Series A bond sale of $95,000,000 and presented a study-session overview of Measure EE projects, schedules and funding sources.
The Measure EE package is a Prop 39 general obligation bond measure for $350,000,000. Eric said the district has already completed CEQA for the San Antonio campus and submitted DSA (Division of State Architect) drawings in December; DSA review of increment 1 (utilities and demolition) is complete and site work is expected to begin May–June, with construction targeted to finish in 2028. "We did okay on Tuesday," Eric said of the sale, "we had a successful bond sale of $95,000,000." (Eric)
Staff presented the San Antonio cost estimate as roughly $110,000,000 in construction, a not-to-exceed design‑build contract of $116,000,000 that includes design and construction contingency, and an all‑in project total near $129,000,000 when soft costs and furniture/fixtures are included. The presentation identified permit-related encumbrances already recorded—"we've already encumbered $570,000 just for the permit"—and listed soft-cost categories such as consultants, DSA inspectors and commissioning.
Eric emphasized the difference between "hard" construction costs (structures, utilities, site work) and "soft" costs (legal, consulting, inspection) and warned that DSA-triggered scope changes (for example path‑of‑travel or structural thresholds) can add substantial expenses. He also noted required specialty consultants in some cases: "If they find some bones on the site, the paleontologist will have a training staff with the construction folks," and that biologists may be needed if protected bird species are discovered.
On financing, staff said Measure N proceeds (~$15,000,000), fund 210 balances (~$11,500,000), a $4,500,000 developer donation and potential TDR proceeds (approximately $10,000,000 shared with Mountain View) will be used before Measure EE proceeds are spent; Measure EE funds will be accounted for in a separate fund when deposits arrive. Eric described a phased issuance plan and a program cashflow that uses bond proceeds when projects are ready. He also reminded the board of a common spend-down expectation that bond proceeds should be expended in a timely manner: "You have to spend 85 percent of the bond proceeds within 3 years or have a reasonable expectation to do that." (Eric)
Staff said program‑level contingencies and escalation reserves are included in the draft budget (rough program reserve quoted at about $10,500,000 and escalation budgeting of roughly $15,000,000–$15,200,000) and that the board will see a finalized budget for approval once staff refines encumbrances and bids. The presenter also described procurement rules and prequalification thresholds for contractors (e.g., mechanical/electrical/plumbing contractors over $1,000,000 must be prequalified to retain eligibility for some state funding).
No formal board action was taken on Measure EE at the study session. Staff asked trustees for direction on priorities and said it will return to the board in April or May with highlights and again in June with a final recommended project list and budget for board approval.