May 29, 2014
The minutes from the March 26, 2014 and April 7, 2014 meetings were approved unanimously.
Executive Officer Statement
Lisa Silverman provided updates on the following items:
– Fund Releases for Priority Funding Apportionments – 103 projects in 44 school districts received apportionments on April 7, 2014. These districts must submit a valid fund release (Form SAB 50-05) by Monday, July 7, 2014 or be subject to non-participation regulations.
– Priority Funding Filing Round – The current priority funding filing period began May 14, 2014 and will close on June 12, 2014. As of May 16, the Office of Public School Construction (OPSC) has received four requests totaling $39.9 million; 81 projects in 41 school districts worth $217.3 million are eligible to participate in the filing round.
– Charter School Facilities Program Filing Round – The application filing round opened on April 1, 2014 and will close on May 30, 2014. As of May 14, OPSC has received 23 applications requesting an estimated $186.8 million.
The consent agenda was approved unanimously. Items included, but were not limited to, the following.
Unfunded Approvals (Lack of AB 55 Loans)
The Board approved one Overcrowding Relief Grant project totaling $2,247,804 within existing bond authority.
Career Technical Education Facilities Program Unfunded Approvals
The Board approved four Career Technical Education Facilities Program projects totaling $3,495,679, within existing bond authority. $3.5 million in bond authority, generated by project rescissions and loan repayments from prior funding cycles, has become available to grant these Unfunded Approvals (Lack of AB 55 Loans).
The following bond authority balances account for Unfunded Approvals made at the May 28, 2014 meeting:
|SFP Program||Prop. 1D||Prop. 55||Prop 47|
|New Construction||$0||$.09 million||$.07 million|
|Seismic Repair||$150 million||—||—|
|Overcrowding Relief||$18.9 million||—||—|
|High Performance||$32.9 million||—||—|
Lisa Silverman indicated that $6.2 million in fund recoveries returned to the state in March; recoveries total $15.5 million for 2014 to date. Fund recoveries include bond proceeds returned to the program through reductions to costs incurred, close-outs, loan repayments, and rescissions.
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 (DSA) approved plans and specifications for a new construction funding application while maintaining the same place on the Unfunded List (Lack of AB 55 Loans).
The project received an unfunded approval for $2,183,910 under Financial Hardship on January 27, 2010. DSA approval for this project has expired, and therefore the COE was unable to submit a valid Fund Release Authorization (Form SAB 50-05) in the Priority Funding round in which it participated last year. The COE indicated that the new plans contain the original scope of work, updated to incorporate current building code; the plans have been reviewed and approved by DSA, receiving a new DSA number.
A number of SAB members were concerned that granting this appeal would set a negative precedent.
Charter School Facilities Program Rehabilitation Supplemental Grants
To request State Allocation Board approval of School Facility Program regulatory amendments to align Charter School Facilities Program (CSFP) Rehabilitation supplemental grants with Education Code requirements.
This item seeks to correct an inconsistency regarding references to the State and Local share for four supplemental grants. The CSFP stipulates a 50/50 match for the program, but the existing regulatory references for these four supplemental grants are calculated based upon a 60/40 State/local share.
MOVED TO THE CONSENT AGENDA AND APPROVED UNANIMOUSLY
School Facility Program Regulatory Amendments: Construction Cost Publication
To request State Allocation Board approval of regulatory amendments to continue the use of specific construction cost publications currently used for calculating certain grants in the School Facility Program.
This item is a technical fix to update the title of the construction cost publications used within the regulations. The publications will continue to be published by the Sierra West Group, without reference to the “Saylor” trademark.
MOVED TO THE CONSENT AGENDA AND APPROVED UNANIMOUSLY
Reports, Discussion, and Information Items
Program Status Update
This item provided an update on the status and fund balances of the following programs (remaining bond authority indicated in parentheses):
– Career Technical Education Facilities Program ($0)
– High Performance Incentive Grant Program ($32.9 million)
– Overcrowding Relief Grant Program ($18.9 million – reserved for a forthcoming appeal)
– Seismic Mitigation Program ($148.1 million)
The report also identifies OPSC and DSA workload associated with these programs, as well as dollar amounts associated with remaining applications still on file or on the Unfunded List (Lack of Authority)/Acknowledged List.
Senator Hancock expressed a strong interest in preserving bond authority for Seismic Mitigation Program (SMP) projects that have assessed their risk and received some level of approval from DSA. The Board discussed that the best approach may be to engage on this issue in the current 2014-15 budget process. The Governor has proposed transferring remaining fund balances for these four programs to the core new construction and modernization programs; there appeared to be support from the legislative Board members to consider not approving the SMP transfer, thereby preserving the funds for their original purpose.
Chair Eraina Ortega indicated that the item will be agendized for further discussion at the next Board meeting. Senator Hancock was interested in hearing options for the Board’s consideration if the fund transfer does go into effect. No vote was taken on this item.
The next meeting is scheduled for June 25, 2014.
~ Rebekah Cearley