March 27, 2014
The minutes from the January 22, 2014 meeting were approved unanimously.
Executive Officer Statement
Lisa Silverman provided updates on the following items:
– State GO Bond Sale: Based on the most recent state bond sale, $341.6 million has been made available to fund School Facility Program (SFP) projects. The SAB will hold a consent-only meeting on April 7, 2014 to make apportionments.
– Priority Funding Filing Round: The seventh round will begin May 14, 2014 and close on June 12, 2014; requests in this round will be valid from July 1 through December 31, 2014.
– CharterSchool Facilities Program Filing Round: Application filing period will be open from April 1, 2014 through May 30, 2014.
The consent agenda was approved unanimously. Items included, but were not limited to, the following.
Charter School Facilities Program Grant Increases
The Board adopted an increase of 6% for the Charter School Facilities Program (CSFP) preliminary apportionment amounts for new construction projects. In May 2008, the Board approved a 6% increase to the new construction per pupil grant amount, and this action applies the increase to the CSFP.
Career Technical Education Facilities Unfunded Approval
The Board approved one new unfunded approval under the third funding cycle of the Career Technical Education Facilities Program (CTEFP), totaling $293,019.
Status of Funds
The following bond authority balances account for Unfunded Approvals made at the March 26, 2014 meeting:
|SFP Program||Prop. 1D||Prop. 55||Prop. 47|
|New Construction||$1.2 million||$15.8 million||$3.6 million|
|Seismic Repair||$159.1 million||—||—|
|Overcrowding Relief||$21.7 million||—||—|
|Modernization||$7.3 million||$5.2 million||$2.9 million|
|Career Technical||$3.7 million||—||—|
|High Performance||$35.2 million||—||—|
Merced County Office of Education/Merced
Presented the Merced County Office of Education’s (COE) request to be allowed to submit a new set of Division of the State Architect-approved plans and specifications for a new construction funding application while maintaining its same place in line on the Unfunded Approval List (Lack of AB 55 Loans).
This item was PULLED FROM THE AGENDA.
Cinnabar Elementary School District/Sonoma
Presented the District’s request to restore its Priority Funding apportionment that was rescinded due to the lack of compliance with prevailing wage monitoring requirements.
Motion: To reinstate the District’s Priority Funding apportionment effective March 26, 2014, reducing the grant amount by a total of $203,154, including $193,000 to reflect Phase One’s lack of compliance with prevailing wage monitoring requirements, a non-compliance penalty, and reduction of the prevailing wage grant. APPROVED UNANIMOUSLY
Charter School Facilities Program Rehabilitation Apportionment
Requests the Board award an unfunded approval to a Charter School Facilities Program (CSFP) Rehabilitation Program funding application to San FranciscoUnifiedSchool District, using modified grant calculations to conform to Education Code requirements, and to seek direction on developing conforming SFP regulatory amendments to align CSFP Rehabilitation grant calculations with these Education Code requirements.
This item seeks to correct conflicting references in the regulations regarding the correct State/local contribution for supplemental grants in the CSFP.
This item was MOVED TO THE CONSENT AGENDA AND APPROVED UNANIMOUSLY.
Priority Funding Process for Additional State Allocation Board Programs
Presents additional information regarding options for the Board’s consideration to include the Charter School Facilities Program, Career Technical Education Facilities Program (CTEFP), and the Overcrowding Relief Grant Program (ORG) in the SFP regulations that outline the criteria for participation in the Priority Funding process. By doing so, projects in these programs would also be subject to the non-participation regulations. This was a continuation of a discussion that began at the January 22, 2014 Board meeting and was driven by concerns that these projects could remain on the Unfunded List indefinitely, tying up bond authority that could otherwise be used for construction-ready projects.
OPSC staff identified that there are 78 projects on the Unfunded List (Lack of AB 55 Loans), representing a total of $241.8 million in bond authority, that would be affected by the regulations. They identified potential timelines for implementation: if regulations were approved and filed on an emergency basis, OPSC staff estimated that the first rescission could occur in December 2014; on a non-emergency basis, the first rescission could occur in June 2015.
The Board considered if it should provide an additional time allowance for CTEFP project planning. Projects that received a reservation of funds were not required to have CDE- or DSA-approved plans upon submittal; normally, CTEFP applicants have 12 months to submit these documents to OPSC after an apportionment has been approved.
Representatives from the Glendale Unified School District indicated that it would be very difficult to successfully meet the new Priority Funding requirements for all ten of their projects, based on their local match cash flow; they asked to push back the effective date of regulations by a few months, to January 2015.
Motion: Approve regulatory amendments to include ORG, CTEFP, and CSFP projects (excluding CSFP advance release of design and/or site acquisition funds from a Preliminary Charter School Apportionment) in the Priority Funding process, with an additional twelve month consideration upon apportionment for CTEFP reservation of funds projects. Regulations to be filed on a non-emergency basis. APPROVED 7:0
Administrative Costs for the Office of Public School Construction
Presents the Board with options to reserve available bond authority for the administration of the Board’s program. The agenda item proposed options for OPSC’s administration of programs; Board members discussed and ultimately adopted a solution that would also reserve funds for CDE and the State Controller’s Office.
Motion: Reserve $52.7 million in bond authority to cover five years of administrative costs. This is equal to 15% of the remaining bond authority. Use remaining New Construction and Modernization fund first, then calculate the remainder on a pro-rated basis according to the proportion of remaining bond authority in each program, as follows:
|Program||Percentage of Remaining Authority – 3/26/14||Reservation for Administrative Costs|
|New Construction||N/A||$20.6 million|
|Seismic Mitigation||50.49%||$8.4 million|
|High Performance||11.17%||$1.9 million|
|Overcrowding Relief||5.27%||$.9 million|
Included the provision that the Board can modify the program allocation as necessary.
Disbursing Residual Charter School Facilities Program Funds
Requests the Board to determine the funding allocation available for the 2014 Charter School Facilities Program (CSFP) filing round scheduled for April 1, 2014 through May 30, 2014. There is approximately $100.5 million in remaining CSFP bond authority, which has returned to the program through project rescissions and from project conversions that were less than the amount reserved for the project when the preliminary apportionment was approved.
Motion: To reserve $7.6 million to augment 11 projects with a preliminary apportionment to reflect the six percent increase approved previously on the consent agenda; to reserve $5.3 million for future administrative costs (per prior agenda item). To use all remaining Proposition 47, 55, and 1D bond authority currently available (approximately $87.6 million) and any additional authority returning to the CSFP to fund preliminary apportionments for the upcoming filing round. APPROVED UNANIMOUSLY
Senator Hancock asked DSA and OPSC staff to provide information regarding applications that have been submitted to DSA and OPSC for processing in the following programs: HPI, Seismic Mitigation, Overcrowding Relief Grant, and Career Technical Education.
The next SAB meeting is scheduled for April 7, 2014, and will be consent only.
~ Rebekah Cearley