Project Funding

The Marysville insurance proceeds were/are being distributed as follows:

The District identified a total of $7.2M of recoverable proceeds from the Marysville Fire. $1M of this amount was allocated to the District's "deductible" under its insurance policy. Approx $2.1M was expended stabilizing the building after the fire, funding student transportation to Rose City Park, teacher payroll, personal property loss and security.

This left a balance of $5.1M to plan the rebuild of the damaged portion of the school. The District allocated $800k of this to begin design of a fully modernized and rebuilt school with the intention of blending insurance proceeds with GO Bond resources expected from the planned May 2011 capital construction bond.

Since the GO Bond failed, the District reverted to an "insurance rebuild" on the damaged section. A total of $4.4M was available for this work given that some of the $800k for design was expended. A separate design effort was required to rebuild just the damaged section of the school.

The District made a decision to augment the insurance proceeds with an additional $450k of other District funds (Fund 405) resulting in an "insurance rebuild" budget of $4.8M. The construction solicitation included a base bid plus two additive alternates to construct a gym expansion & seismic improvements to the undamaged sections. The budget only allowed $3.8M for the construction and hence the Board decision to proceed with the contract award for base bid and the seismic improvements. The remaining budget was used for various architect/engineer, permit, furnishings and contingency costs. There are not adequate funds to support the gym expansion in Corp Inc Construction's add alternate bid of $420k.

The insurance proceeds are being used in a responsible manner, consistent with School Board approval and the District expects to return students and staff to Marysville in Jan 2013 following completion of the "insurance rebuild" construction work.