August 27, 2015
The minutes from the June 30, 2015, meeting were approved unanimously.
Executive Officer Statement
- Lisa Silverman provided updates on the following:Close of 2014 Charter School Facilities Program (CSFP) Funding Round – In November 2014, the State Allocation Board (Board) provided unfunded approvals for Preliminary Charter School Apportionments in the 2014 funding round, which was open until July 24, 2015. Nine schools with 13 projects worth $157.0 million have been approved, and $0.5 million in bond authority remains for the 2014 round. Once this is apportioned at a future meeting, the remaining applications will be returned to applicants.
- Status of Fund Releases for Priority Funding Apportionments – On April 15, 2015, the Board approved $113.6 million in priority funding apportionments for 41 projects representing 22 school districts. Districts that received an apportionment were 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). OPSC received 27 fund release requests totaling $96.7 million. Twelve Career Technical Education Facilities Program Projects were approved as a reservation of funds.
- Regulation Update – OPSC anticipates that regulations adopted by the Board in October 2014 will be in effect on October 1, 2015. These regulations align the Charter School Preliminary Apportionment general site development grant with the one provided in the New Construction program.
- Upcoming Bond Sale – There will be a General Obligation Bond sale on August 26, 2016. Staff anticipates receiving bond proceeds for the School Facility Program from this sale.
The consent agenda was approved unanimously. Items included, but were not limited to, the following:
The Board approved one Charter School Facility Grant Program project worth $24,347,083, 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.)
Emergency Repair Program
The Board approved $266,138,279 in Emergency Repair Program apportionments. This action provided $2,236,003 to fully fund five previously prorated applications that had received 43 percent of their approved amount, as well as provide full apportionments for 607 applications, worth a total of $263,884,252. The action included one grant adjustment to cover additional expenditures of $18,024 for a previously-apportioned project.
The following bond authority balances account for Unfunded Approvals made at the June 30, 2015, meeting:
|SFP Program||Prop. 1D||Prop. 55||Prop. 47|
|New Construction||$2.6 million||$4.6 million||$1.3 million|
|Seismic Repair||$94.6 million||—||—|
|Overcrowding Relief||$4.2 million||—||—|
|Modernization||$5.0 million||$0.0||$0.1 million|
|Career Technical||$16.2 million||—||—|
|High Performance||$0.5 million||—||—|
|Charter School||$5.4 million||$1.4 million||$0.0|
Presents the District’s request for a change of scope to the approved plans of two previously approved projects that share the same set of Division of State Architect (DSA) approved plans. The District requested approval from multi-story to single story construction for two Facility Hardship projects to replace a K-6 school and a 7-12 school on the same site. OPSC staff recommended four additional requirements to comply with School Facility Program regulations and encourage timely completion of the scope change, which are consistent with previous Board actions for change of scope requests. These requirements include submittal of revised plans and project documents, progress updates to OPSC, an apportionment reduction of $446,986 to remove the multi-story grant amount, and specification that the approval does not extend any applicable project deadlines.
Motion: To approve the District’s appeal, plus the four additional staff-recommended requirements identified in the item. APPROVED UNANIMOUSLY
To present the District’s request to allow a site exchange in lieu of the requirement of a prior Facility Hardship approval to sell an abandoned school site. The District requested to satisfy conditions of the Facility Hardship project by remitting 50 percent of the appraised value of the site in lieu of selling it, so that it can exchange the abandoned site for another property located within the District currently owned by another party. OPSC staff recommended additional requirements consistent with the Board’s prior action for a similar request. These requirements include a timeline for completing the exchange, an updated appraisal, remitting 50 percent of the appraised value of the former school site, progress updates, and a governing board resolution.
Assembly Member Nazarian asked if state legal counsel should be engaged in the site exchange proceedings at the local level, and OPSC legal counsel was concerned that this may create a liability issue in a situation where the state doesn’t have a vested interest. Nazarian indicated that he would abstain from the vote.
Motion: To approve the District’s appeal, plus the additional staff-recommended requirements identified in the item. APPROVED 8-0-1
Sausalito Marin City/Marin
To present the District’s request to allow a release of funds for an apportioned Seismic Mitigation Program (SMP) project at Martin Luther King, Jr. School. The project is not in compliance with Prevailing Wage Monitoring (PWM) requirements set for in Labor Code. At the June 2015 meeting, the Board heard two items related to non-compliance with Labor Code PWM requirements for four school districts representing six projects. At that time, the Board approved a five percent reduction for four of the projects and no reduction for two of them due to unique circumstances related to ongoing seismic mitigation issues.
Motion: Approve the fund release, with a percent reduction to the apportionment. APPROVED UNANIMOUSLY
Financial Hardship Criteria for Consideration of Development Fees
This item was withdrawn from the agenda.
Reports, Discussion, and Information Items
Seismic Mitigation Program
The Board accepted a report related to consideration of a single agency review of SMP projects by the DSA and OPSC as a way to streamline the SMP funding process. The item outlined each office’s responsibilities and what steps are being taken to improve SMP project application processing. OPSC staff indicated that they will continue to work with DSA, which is part of the same department, to refine the application process and continually make improvements to the overall process.
The next State Allocation Board meeting is scheduled for Tuesday, September 8, 2015, and will be a consent only meeting. The September 23, 2015, meeting is canceled.
~ Rebekah Cearley