April 2015

Friends and Key Communicators,

Many of you have contacted us in recent months inquiring about the status of our school buildings and district facilities.  This key communicator update is intended to give you the very latest information about how we care for our facilities and are planning for continued growth in the future.  You will find information here about:  the facilities master planning process, school capacities, and our plan to address space concerns for the 2015-16 school year.

As a reminder, the purpose of these regular updates is to keep key stakeholders informed about the happenings in your local school district and to provide you an opportunity to give us timely feedback about our initiatives. If you have suggestions for other topics which should be addressed in a future Key Communicator message, please let us know!

With regards,
Dr. Fred Maiocco
Superintendent of Schools

Facilities Master Planning Committee:  The committee was established last year and has been meeting regularly to provide long term planning direction for the school district. As part of their work, the committee commissioned various technical studies to assist in preparing a Facilities Master Plan, which is expected to be released this spring.

As an initial step, the committee hired Portland State University to conduct a demographic study of Hermiston, analyzing population, housing, and enrollment trends affecting Hermiston School District in recent years, as well as forecasts of district-wide enrollment by grade level through the 2023-24 school year. As expected, PSU noted a total population increase, specifically 20 percent from 2000 to 2010, a 17 percent increase of the school-aged population, and a 32 percent increase of the five and under population. Hermiston School District observed enrollment increases annually over the last ten years, except for the 2011-12 school year. Despite the anomaly, HSD increased by 19 percent from 2003-04 to 2013-14. From the gathered data and trends, PSU provided a low, middle (most probable), and high range district-wide enrollment forecast, in relation to a slow versus robust economy. The report assisted district administration in conducting a Facility Capacity Study, which provided an inventory of building capacities based on enrollment, coupled with projections for next year, a few years out, and through 2023-24.

The FMP committee also contracted with Absolute Engineering, LLC, of Kennewick, WA, to complete a facility condition report, specifically for the five older schools in the district:  Hermiston High School, Sandstone Middle School, and Desert View, Highland Hills, and Rocky Heights elementary schools. Utilizing a “Building Condition Evaluation Form” each site was evaluated and rated on the following point system:

• 80-100 points – No Renovation Necessary
• 60-79 points – Minor Renovation Needed
• 40-59 points – Major Renovation Needed
• Below 40 points – Replacement Recommended

Summary evaluation results are depicted in the following table. The report provided specific comments and pictures for each site relative to the point rating.

District addresses growth and capacity issues:  Hermiston School District continues to grow! With the increase in student enrollment over the past decade, the district is now facing a significant challenge in providing adequate classroom spaces for teaching and learning.  As a result of the 2008 Bond, HSD was able to add classroom space at the elementary and middle school levels; however, Hermiston High School has been essentially unchanged for 15 years.  This fall, HHS is expected to grow significantly, adding approximately 150 students, purely by graduating 2014 seniors and moving up the current 8th grade class.  To fully serve these students, additional classroom spaces are required.

The Board of Education was faced with two options:  procure additional modular facilities or lease space for adult staff members in order to free up classrooms.  After a summer 2014 modular purchase of $1.2 million for elementary classroom space, the Board’s facility reserve fund was all but depleted. It cannot support the anticipated $1.1 million required to purchase the necessary modular buildings for classroom space.  The Board chose to pursue a building lease for adult staff members, with a future option to buy the facility, at an initial financial outlay of less than $300,000. An additional benefit of the leased space is that it will yield a consolidated district office location and more efficient business practices, while vacating necessary classroom space for high school students.

The following facility changes will occur this summer:

• District wide technology services will relocate from HHS to the leased facility (increasing classroom spaces at HHS).
• The Pregnant and Parenting Teen program will relocate from Innovative Learning Center to a Headstart facility across from HHS (increasing classroom spaces at ILC).
• Headstart (3/4 year old programs) will relocate to District owned modulars near Rocky Heights Elementary School (to increase access to Early Learning initiatives).
• Special programs district wide staff will relocate from the Kik Center facility to the consolidated leased facility (to free up space for expansion of Transitions program).
• Transitions program will grow and expand within the Kik Center facility.
• District office staff and administration, currently located near RHES, will relocate to the consolidated leased facility.
• Other expected efficiencies: District-wide records archives, currently warehoused in Portland, will be relocated to Hermiston at the leased facility, representing a cost savings for the district.

The new consolidated leased facility is located off Orchard Ave. and 11th St. (formerly El Mercado/Los Gavilanes). The facility will be remodeled to meet current and expected needs for relocated special programs staff, central office staff, and district wide administration. A new training facility will also result.

General Obligation Bond Refinance:  The Board of Education has three Board Goals, one of which is to “maintain sound fiscal stewardship of community resources consistent with board policies.” The Board takes this obligation seriously and is regularly seeking ways to minimize the financial burden supporting schools requires of its taxpayers.  As a result, the board directed administration to inquire about refinancing some $18 million in general obligation bonds.  Similar to refinancing a home mortgage, the process would consist of refunding current investors and reselling the bonds at a lower interest rate to other investors in order to save money and lower interest payments.  Interest rates in the municipal market are at an all-time low of about 2.5 percent currently.

So, what does this mean to HSD and its taxpayers? The district is able to refund/refinance about $18 million in debt to a lower interest rate, which will save taxpayers about $1.0 million in interest over the life of the bonds.

If you have suggestions for other hot topics which should be addressed in a future “Key Communicators’ Update,” please let us know! If you think someone else should be included on the key communicator list, please let us know (Executive Assistant and Communications Officer Briana Cortaberria maintains the list; she can be reached at 541-667-6010 or via email at [email protected]).