July 6, 2015
The minutes from the May 27, 2015, meeting were approved unanimously.
Executive Officer Statement
Lisa Silverman provided updates on the following:
- Current Priority Funding Filing Round – The current filing period opened on May 13, 2015, and closed June 11, 2015. Requests will be valid from July 1, 2015, through December 31, 2015. Twelve projects totaling $11.2 million received a second occurrence for non-participation in this round had have been rescinded without further State Allocation Board action.
- Status of Fund Releases for Priority Funding Apportionments – On April 15, 2015, the State Allocation Board (Board) approved $113.6 million in priority funding apportionments for 41 projects representing 22 school districts. Districts that received an apportionment are required to submit a valid Fund Release Authorization (Form SAB 50-05) containing an original signature by Tuesday, July 14, 2015, to Office of Public School Construction (OPSC). Ms. Silverman indicated that fund release requests have been received for 17 projects totaling $67.6 million.
- Requirements for Participating in Priority Funding – Reminder that non-participation regulations are in effect.
- Changes in OPSC Budget – Effective July 1, 2015, the OPSC will be reduced by 37 positions due to decreased workload. 12 of the 37 positions were vacant, and of the remaining 25 positions, many have already accepted other opportunities in state service. There will not be any layoffs in response to the reductions.
- Emergency Repair Program – The 2015-16 budget provides $273.4 million to retire the state’s facilities funding obligation under the terms of the Williams settlement. Funding for these projects will likely be approved at the next Board meeting on August 26, 2015.
Consent Agenda The consent agenda was approved unanimously. Items included, but were not limited to, the following: Unfunded Approvals The Board approved two facility hardship projects worth $39,397,889.00 within existing bond authority. Charter Extension to Conversion Deadline Items The Board approved one request for a one-year extension to the conversion deadline for one project participating in the Charter School Facilities Program (CSFP). CSFP projects must convert from a preliminary to a final apportionment within four years, with the option for a one-year extension. Financial Reports The following bond authority balances account for Unfunded Approvals made at the June 30, 2015, meeting:
|School Facility Program||Proposition 1D||Proposition 55||Proposition 47|
|New Construction||$0.8 million||$4.6 million||$1.3 million|
|Seismic Repair||$96.5 million||—||—|
|Overcrowding Relief||$4.2 million||—||—|
|Modernization||$4.7 million||$0.0||$0.1 million|
|Career Technical||$15.8 million||—||—|
|High Performance||$0.5 million||—||—|
|Charter School||$17.9 million||$1.3 million||$0.9 million|
Emergency Repair Program: $3.1 million in remaining settlement authority as of June 30, 2015. Appeal Items and Action Items The Board heard one presentation for one appeal and one action item concurrently, as both pertained to compliance with Labor Code prevailing wage monitoring requirements:
- Nava Valley Unified School District/Napa Appeal Item – Presents the district’s request to allow a release of funds for apportioned Seismic Mitigation Program (SMP) projects at Vintage High [58/66266-00-001] and Bel Aire Park Avenue Elementary [58/66266-00-002] that are currently unable to submit a valid fund release request due to non-compliance with Labor Code requirements.
- Labor Code Compliance Action Item – Informs the Board about projects that are currently unable to submit a valid fund release request due to non-compliance with Labor Code requirements:
o Pittsburg Unified School District/Contra Costa [50/61788-00-010] o Perris Union High School District/Riverside [57/67207-00-004] o Lindsay Unified School District /Tulare [58/71993-00-001 and 58/71993-00-002] OPSC staff provided a brief overview of the evolution of prevailing wage monitoring requirements in the Labor Code over the past few years. Of specific interest for these particular projects is SB 1038 (2012), which amended Labor Code Section 1773.3 to include a five-day Department of Industrial Relations (DIR) notification requirement for all public works projects paid for in whole or part out of public funds. OPSC indicated that it was unable to release funds for the above projects because the districts were not in compliance with Education Code Section 17070.70(b), which requires districts to comply with all laws pertaining to school construction projects, including the prevailing wage monitoring requirements in the Labor Code. For all six of these projects, the districts notified DIR of the projects many months after the contract award dates, well outside the five-day window established by SB 1038. Representatives from each of the districts spoke before the Board to describe their particular circumstances. All indicated that they have instituted processes that will ensure timely notification to DIR for future projects. Assembly Member Bill Dodd, who represents Napa Valley USD, urged the Board to approve the district’s appeal request, stating that the SMP funds are necessary for the district to be able to complete its seismic upgrade plan, especially in light of the 2014 Napa earthquake. Board members appeared satisfied with the awareness that the districts demonstrated regarding labor compliance and paying prevailing wage, while acknowledging that they need to abide by program requirements. Cesar Diaz proposed a reduction of 5 percent to the apportionment for each of the projects in the action item. He also proposed approving the Napa Valley USD appeal without a reduction to the apportionment. Both proposals were approved unanimously. Motion 1: Approve the fund releases, with a 5 percent reduction to the apportionments, for the Pittsburg USD, Perris Union High School District, and Lindsay USD projects. APPROVED 6:0 Motion 2: Approve the Napa Valley USD appeal request. APPROVED 6:0 The next Board meeting is scheduled for Wednesday, August 26, 2015. There will be no meeting in July 2015. ~ Rebekah Cearley