October 21, 2008
WHAT YOU MUST KNOW ABOUT FCPS
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DID YOU KNOW?
The Fairfax County School Board looking to buy Gatehouse II for administrative staff regardless of huge fiscal shortfalls, economic uncertainty and potential furloughs for county employees
The Fairfax County School Board recently proposed the purchase of a newly renovated facility for the County’s school administrative staff, called Gatehouse II.
The Board of Supervisors voted unanimously not to approve the purchase saying it wanted “proof of cost savings of Gatehouse I before moving forward with the second phase of the school system’s consolidation.”
School Board is reworking their numbers, trying to figure out a way to obtain approval from the Board of Supervisors to purchase the facility.
WHAT YOU SHOULD ALSO KNOW…
Gatehouse II will actually cost $273 million
The School Board presented the following requests to the Board of Supervisors on September 22, 2008, regarding the proposed purchase:
Approve a new bond issue, not to exceed $130 million, for permanent financing of the Gatehouse II acquisition, with debt service on the permanent bonds projected to be $8.2 million per year, starting in Fiscal Year 2013.
Renovate, vacate and transfer the following facilities to Fairfax County:
o Leis Center
o Sprague Center
o A portion of Wilton Woods Center
Renovate the following facilities, consolidate school staff and services in the facilities but retain the buildings for possible future use as schools:
o Devonshire Center
o Dunn Loring Center
o Lacey Center
The following facts are provided to FairfaxCAPS by construction industry experts:
Using the $130 million projected for permanent financing and a capital construction/activation factor of 1.1 (typical for FCEDA School Bonds), we would actually pay $273 million for this project.
What are the additional costs of all of the renovations to vacated properties and why are they not listed as part of the overall project cost and business case?
There is no data on the costs of the renovations upon vacating these properties in the business case. Devonshire Center, alone, is expected to cost $5.8 million in renovations. The business case only mentions the savings anticipated from lease revenue.
Yet the School Board claims that Gatehouse II is self funding:
“Self-Funding: The purchase, renovation and operation of the BPG building is self-funded
through the consolidation of the 14 status quo FCPS owned and leased administrative
properties. No direct school operating or capital funds are impacted.”
The business case fails to provide return on investment (ROI), the internal rate of return, net present value and payback period calculations for the entire project to support true cost/benefit analyses.
Where is the Appraisal for Gatehouse II?
FairfaxCAPS submitted Freedom of Information Acts (FOIA) to both the School Board and the Board of Supervisors requesting a copy of the appraisal for Gatehouse II.
We have not heard back from the Board of Supervisors, however, the School Board’s attorney provided the following explanation as to why our request was denied:
“We have checked with personnel from the Fairfax County Public Schools, and we have been advised that the School Board did not send any such documents to the Board of Supervisors. Staff is aware of only one document that was prepared by the School Board staff for presentation to the Board of Supervisors. That document was prepared to present the proposed acquisition of an administration building to the Board of Supervisors in a closed session.”
Michael Long
Senior Assistant County Attorney
Fairfax County
WHAT YOU CAN DO…
Write to your Board of Supervisors representative http://www.fairfaxcounty.gov/government/board/ and to your School Board representative http://www.fcps.edu/schlbd/members.htm and ask why our tax dollars are funding a new building for staff, instead of new schools and desperately needed school renovations for our kids.
According to the ACT college admissions test, only 33 percent of Fairfax County Public Schools seniors are ready for college. See excerpts from the ACT college admissions test