April 17, 2015
The minutes from the February 24, 2015 meeting were approved unanimously.
Executive Officer Statement
Lisa Silverman provided updates on the following:
– Priority Funding Apportionments – This agenda includes $113.6 million in priority funding apportionments for 41 projects representing 22 school districts. These projects are required to submit a valid Fund Release Authorization (Form SAB 50-05) by Tuesday, July 14, 2015.
– Requirements for Participating in Priority Funding – Reminder that non-participation regulations are in effect.
– Next Priority Funding Filing Round – The next filing period will begin May 13, 2015 and will close June 11, 2015. Requests received during this time will be valid from July 1, 2015 through December 31, 2015. There are 15 projects for 41 school districts on the Unfunded List (Lack of AB 55 Loans) totaling $237,100,789 that could submit a request for participating in this filing round.
The consent agenda was approved unanimously. Items included, but were not limited to, the following:
The Board approved 4 projects worth $34,971,974.20 within existing bond authority:
– Charter: $34,817,876.20
– Facility Hardship: $154,098
Charter Extension to Conversion Deadline Items
The Board approved 3 requests for a one-year extension to the conversion deadline for three projects 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.
Priority Funding School Construction Apportionments
The Board approved priority funding apportionments of $113.6 million for 41 projects in 22 school districts. As a result of the spring bond sale, there is an estimated $135.7 million available to fund all current priority funding requests. The current Priority Funding filing period began on November 12, 2014 and ended December 11, 2014. Requests are valid from January 1, 2015 through June 30, 2015. Fifty-nine percent of projects on the Unfunded List (Lack of AB 55 Loans) that could have submitted requests chose to participate in this round, and the Board was able to provide apportionments for all that submitted. $22.1 million in allocated proceeds is available for future apportionments.
Charter School Facilities Program (CSFP)
The Board approved a change to the process by which available bond authority is allocated when an applicant is requesting an increase to the amount reserved for the Preliminary Charter School Apportionment at the time of conversion to a Final Charter School Apportionment. Actual grant amounts may exceed the amount reserved at the preliminary apportionment phase. The Board approved the staff recommendation to allow projects on the Unfunded List (Lack of AB 55 Loans) that qualify for an increase to access available bond authority up until the Board awards a final apportionment. Under the current process, a preliminary apportionment converting to a final apportionment is first awarded an unfunded approval and placed on the Unfunded List (Lack of AB 55 Loans) and must then participate in a priority funding round to receive an apportionment. The Board’s action helps align the CSFP with the priority funding process, allowing a CSFP project on the Unfunded List (Lack of AB 55 Loans) that did not receive the full grant amounts for which they are eligible upon conversion to access any returning authority prior to being awarded a final apportionment. The action applies only to bond authority returning on or after July 25, 2015.
Implementation of AB 97 and SB 971
The Board adopted proposed regulations to implement AB 97 (2013) and SB 971 (2014), which removed the statutory authority for the Board to allocate or approve Deferred Maintenance Program (DMP) funding on or after January 1, 2015 and stipulated requirements about maintaining clean, fully operational restrooms at all times.
Implementation of SB 869
The Board adopted proposed regulations to further implement SB 869 (2014), a budget trailer bill that transferred remaining bond authority as of January 1, 2015 for the High Performance Incentive Grant and Career Technical Education Facilities Program (CTEFP) to the New Construction and Modernization programs on a 50/50 basis. As of February 24, 2015 there was approximately $500 million in HPI authority and $1 million in CTEFP bond authority remaining. On February 24, 2015, the Board directed staff to bring back conforming regulatory amendments to detail the process of allocating HPI and CTEFP funds that may return in the future.
The following bond authority balances account for Unfunded Approvals made at the April 15, 2015 meeting:
|SFP Program||Prop. 1D||Prop. 55||Prop. 47|
|New Construction||$11.5 million||$5.9 million||$0.4 million|
|Seismic Repair||$141.2 million||—||—|
|Overcrowding Relief||$2.0 million||—||—|
|Modernization||$4.4 million||$0||$0.1 million|
|Career Technical||$2.3 million||—||—|
|High Performance||$0.5 million||—||—|
|Charter School||$24.9 million||$1.3 million||$0.9 million|
Emergency Repair Program: $3.1 million in remaining settlement authority as of April 15, 2015.
Twin Rivers Unified/Sacramento
To present the District’s request for Facility Hardship replacement funding for the abandonment of the Harmon Johnson Elementary School and the ability to use the grant on a different school site in the District.
Motion: To approve the District’s appeal. PASSED 8:1
Los Angeles Unified/Los Angeles
To present the District’s request to be allowed to submit a new set of Division of the State Architect approved plans and specifications for modernization funding for application number 57/64733-00-491, and to retain the project’s priority funding apportionment.
Motion: To approve the District’s appeal. PASSED 7:1
Hesperia Unified/Pathways to College K-8 Charter/San Bernardino
To present the Charter School’s request to change the scope of two previously apportioned Charter School Facilities Program projects.
Motion: To approve the District’s appeal. APPROVED UNANIMOUSLY
State Allocation Board Vice-Chair Selection
The Board unanimously elected Senator Carol Liu as Vice-Chair of the State Allocation Board.
Labor Code Compliance
This item was withdrawn.
Los Gatos Union Elementary/Santa Clara
To present the District’s request for Facility Hardship unfunded approval to replace all facilities on the Lexington Elementary School site and complete site mitigation work.
Motion: To approve the District’s request for Facility Hardship unfunded approval. APPROVED 8:0
Annual Adjustment to School Facility Program Grants
To adopt the annual adjustment to the School Facility Program (SFP) grants based on the change in construction costs pursuant to Education Code and SFP regulations. Each year, the Board adjusts the SFP grants to reflect changes in the statewide Class B Construction Cost Index (CCI). The Board has made the CCI adjustments according to the M&S Eight California Cities Index every year since 2009. The Office of Public School Construction was unable to obtain the M&S Eight California Cities or the M&S Ten Western States (also historically considered) indices for 2015. OPSC staff presented three indices as options for the Board’s consideration:
– Sierra West Current Construction Cost Index
– Engineering News-Record (ENR)
– RS Means
OPSC staff recommended and the Board approved adoption of the RS Means Index for the 2015 grant adjustment. This index uses 12 cities in California, as compared to 2 cities for each of the other indices, and it uses more construction materials when evaluating costs. Staff re-calculated the grants using this index from 1999 forward, as if it had been used each year, to arrive at the 2015 grant amounts. For example, it would provide a 4.27% increase from 2014 to 2015 for the K-6 pupil grant amount after this recalculation. Staff believes this is the more accurate way to calculate the new grant amounts.
Motion: To adopt an increase for 2015 SFP grants based on the RS Means Construction Cost index. APPROVED UNANIMOUSLY
Motion: To direct staff to bring back an item to the Board for discussion on adopting a new index on a permanent basis for 2016 and beyond. APPROVED UNANIMOUSLY
NOTE: Staff will administratively update all the SFP grants adjusted based on RS Means data (including supplemental grants such as fire sprinklers and other grants such as the facility hardship per-square-foot amounts) and post all of the 2015 grant amounts on their website in the coming days.
Reports, Discussion and Information Items
Seismic Mitigation Program Report
OPSC staff provided a brief overview of the report contained in the agenda with information on the ability of school districts to reserve bond authority for Seismic Mitigation Program projects.
The next State Allocation Board meeting is scheduled for May 27, 2015.