| April 25, 2018 CUSD BOT Meeting Agenda Item #36 RESOLUTION NO. 1718-44, RESOLUTION CALLING FOR SUPPORT OF ASSEMBLY BILL 2808 (MURATSUCHI) TO INCREASE LOCAL CONTROL FUNDING FOR CALIFORNIA’S PUBLIC SCHOOLS |
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Board Agenda at page 1,386 Board Audio at 3:54:18 Moved by Trustee Gila Jones 2nd by Trustee Patrica Holloway Resolution 1718-44 passed 7-0
CUSDWatch Comment The Local Control Funding Formula aka LCFF limits per pupil funding to 2007-08 levels + inflation. So; even though the State has reached its target of fully funding LCFF, California schools are funded at much lower levels then districts across the United States because they are funded at 2007-08 levels + inflation. California's new education funding law: AB- 97 School Finance - Local Control Funding Formula aka "LCFF" distributes K- 12 per pupil funding using the following formula:
The "Base Grant" is universal for all students. The "Supplemental Grant" provides additional funding to districts based on the percentage of students in the district that are English Language Learners, Receiving Free and Reduced Lunch, and/or are in Foster Care. The "Concentration Grant" provides even more funding for districts that have large concentrations of students that are English Language Learners, Receiving Free and Reduced Lunch, and/or are in Foster Care. Districts with a low percentage of students who are English Language Learners, Receiving Free and Reduced Lunch, and/or are in Foster Care, are funded primarily by the Base Grant. Board Audio at 3:54:18 Presentation by Clark Hampton Assembly Bill 2808 would increase the LCFF Target by 60%. This represents $35 billion in additional funding for schools; with 85% of that money going towards the Base Grant, about $5,000 per student. The new target would be fully funded by the late 2030s'. Per Pupil funding for California schools will finally reach 2018 National levels by the late 2030s'
Board Audio at 3:56:40 BLUE CARD Dawn Urbanek I am offended by this legislation. This is just like Prop 30; and the extension of Prop 30. They will provide broke school districts with just enough money to pay the increased CalSTRS and CalPERS contributions, with nothing going to the students once again. Please don't vote for this. Board Audio at 3:57:17 Without any Trustee comments or discussion the item was: Moved by Trustee Gila Jones Second by Trustee Patrica Holloway Roll Call Vote Resolution passed 7-0
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| APRIL 25, 2018 CUSD BOT Meeting Agenda Item #33 PRESENTATION OF MATERIAL REVISIONS TO CHARTER OF OPPORTUNITIES FOR LEARNING CHARTER SCHOOL. |
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Board Agenda at page 1,233 Board Audio at 3:13:20
Opportunities is seeking Material Revisions to their Charter. OFL's lease has expired and they will be moving by 7-18-18. OFL will relocate from 33621 Del Obispo Street, #E, Dana Point, California 92629 Moved by Jones Second by Patricia Motion to approve material revisions passes 5-0-2 (With two unnamed Trustees out of the room)
to 31878 Del Obispo Street, Suite 105, San Juan Capistrano, California 92675
OFL has also been approved for Dashboard Alternative School Status (DASS) Rent 3,000 square feet at @2.55 per Square foot + NNN of .55 with 3% annual increase Six State Indicators
Graduation Rate: Non-Alternative Schools 9-12 graduation rate Alternative Schools Grade 12 only The Item Contains performance data of students and demographics.
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| CUSD Does Not Have Money to Buy New Math Text Books... Unbelievable Board Audio! A Must Listen |
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AGENDA ITEM #34 INSTRUCTIONAL MATERIALS RECOMMENDED FOR ADOPTION: SECONDARY MATHEMATICS – ALGEBRA 2/TRIGONOMETRY HONORS, GRADE 9-12 Board Agenda at page 1,355 Board Audio at 3:14:37 Moved by Trustee Jones 2nd by Trustee Holloway Motion to adopt new Algebra II/Trig textbooks for Aliso Niguel High School and Dana Hills High School and NOT the other four high schools passed 7-0 Cost: $8,000 for two schools ($4,000 per school X 6 High Schools = $24,000)
CUSDWatch Comment The Williams Act requires Equity in Public Education - all high schools should receive the new text books- not just two. CUSDWatch Comment Interesting Comments by Trustees Gila Jones and Martha McNicholas - "Math has not changed since 2005 so there is no need to buy everyone a new book". Common Core Math was implemented in 2012-13. This is going from the 7th edition to the 10th edition... nothing has changed? CUSDWatch Comment Maybe CUSD should stop using text book money for raises so that all students can have the same text book. CUSD has given employees five consecutive years of across the board compensation increases totaling over $150 million dollars. A Williams Complaint should be filed. Background: The District is currently using the adopted Algebra & Trigonometry ©2005 (seventh edition) textbook by Michael Sullivan, published by Pearson, for Honors Algebra 2/Trigonometry (Trig) students in grade 9-12. Copies of this edition are no longer available through either Pearson or after-market outlets. In order to ensure that all students have access to the Algebra and Trig textbook in future years, the District must now purchase the tenth edition of this same book to ensure compliance with the Williams Act. The author (Sullivan) and publisher (Pearson) remain the same for this newer edition. This tenth edition version is similar to the currently adopted seventh edition version; the curriculum for the Honors Algebra 2/Trig textbook will be essentially the same whether a student has the seventh edition or the tenth edition of this text.
Parents should file Williams Complaints on behalf of their student.Source: California Department of Education Williams ComplaintsA Williams Complaint, another type of UCP complaint, regards instructional materials, emergency or urgent facilities conditions that pose a threat to the health and safety of pupils, and teacher vacancy or misassignment and may be filed anonymously. Williams Complaints are filed with the principal, or their designee, of the school in which the complaint arises. Schools have complaint forms available for these types of complaints, but will not reject a complaint if the form is not used as long as the complaint is submitted in writing. If a Williams Complaint requirement is allegedly not being met, a Williams Complaint form may be obtained at a school office, an agency/district office, or by clicking on the CDE web page to obtain a sample Williams Complaint form How do I file a complaint?See Complaints in the CDE FAQs.
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| April 25, 2018 CUSD BOT Meeting Agenda Item #40 RECOMMENDATION TO APPROVE AMENDMENT NO. 1 TO AMENDED CONTRACT FOR EMPLOYMENT OF DEPUTY SUPERINTENDENT, BUSINESS AND SUPPORT SERVICES, JULY 1, 2016 – JUNE 30, 2022 |
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Board Agenda at page 1,402 Board Audio at 4:15:44 Clark Hampton, Deputy Superintendent of Business and Support Services 2016 Total Compensation is $258,712.40 (Base Pay $203,611.00 + other Pay and Benefits of $55,101.40). Per contract language the Deputy Superintendent is eligible to receive the equivalent incremental salary increases annually and any additional benefits made available to other employees in the District. This Agenda Item extends Clark Hamptons' contract through 2022 and provides for:
Item moved by Trustee Judy Bulluckous Second by Trustee Jim Reardon The Board passed Clark Hamptons contract amendment by a vote of 5-2 (Trustee Hanacek and Pritchard voted no.) CUSDWatch Comment This is a BROWN ACT VIOLATION and was clearly intended to cover up the substantial increase in compensation given to Clark Hampton. CUSDWatch Comment CUSD provides across the board compensation increases for all employees. This year was the 5th consecutive year of across the board compensation increases totaling over $150 million dollars. While parents fundraise for Art- Music- and Science. Our facilities need $186 million in EMERGENCY REPAIRS. Class Sizes are the highest in the nation and CUSD stated in Agenda Item #34 CUSD stated that they lacked sufficient funds to pay for new Algebra II/Trig Math books for every student and are only funding books for 2 of the 6 high schools. Total Cost $8,000 for the two schools. CUSDWatch Comment The Total impact is substantially more that $7,820. This Item should be amended and brought back to the Board so that the Public can have an opportunity to speak to this Item. 2016-17 $203,611.00 X 1% Retroactive Pay increase = $2,036.11 X 3 Years = $6,918.33 $203,611.00 X 1% Step and Colum = $2,036.11 X 3 Years = $6,918.33 Base Salary for 2016-17 is then $207,683.22 ($203,611.00 + $2,036.11 Retro Pay 1% + $2,036.11 Step and Column 1%) 2017-18 $207,683.22 X 1.25% = $2,596.04 X 2 Years = $5,192.08 $207,683.22 X 1.% = $2,076.83 X 2 Years = $4,153.66 Base Salary for 2017-18 is then $217,028.74 ($207,683.22 + $5,192.08 Retro Pay 1.25% + $4,153.66 1% Step and Column) 2018-19 1% increase Step & Column $217,028.74 X 1% = $2,170.28 Base Salary for 2018-19 will be $219,199.02 2019-20 1% Increase Step & Column $219,199.02 X 1% = $2,192.00 Base Salary for 2019-20 will be $221,391.00 The Board Item then stated that the total fiscal impact of this Item was $7,820. Clark had to admit that the Item Cost did not include the Retroactive Pay Increases. Item moved by Trustee Judy Bulluckous Second by Trustee Jim Reardon The Board passed Clark Hamptons contract amendment by a vote of 5-2 (Trustee Hanacek and Pritchard voted no.)
Board Audio at 4:11:39 BLUE CARD Dawn Urbanek Spoke to Agenda Items 39, 40, 41 A Districts Priorities are reflected by their spending priorities. CLARK CLARIFIES RESERVES Board Audio at 4:13:45 Clark States that the reserves I am citing are "restricted" (NOT TRUE per CalProEd) From CalProEd "District claims are often intentionally misleading, as he is right; the funds are currently restricted...either because they are either from before 2014 or have been restricted by the school board since. Either way, the rules have changed and all but the 4 can be moved now." "The board has restricted the money and can unrestrict it at any time. Only 4 small funds come restricted, SPED, Foster Youth, and two Native American youth programs." "Your board members have the power to move the money back- educate your board." TRUSTEE COMMENTS Board Audio at 4:17:01 Trustee Amy Hanacek Student First over employee compensation. Trustee Hanacek will be voting no on the amendment to Clarks Contract. Board Audio at 4:19:15 Trustee Gary Pritchard Is the amount $7,820.00 on the fiscal impact is that over the three years? How did you arrive at the number. Board Audio at 4:19:38 Superintendent Vital Responds On-going expenditure difference. No retroactive pay included. Clark was asked to clarify. Board Audio at 4:19:57 Clark Hampton Does not include retroactive pay. Board Audio at 4:20:35 Trustee Gary Pritchard I am with Amy - I cannot support this. Item moved by Trustee Judy Bulluckous Second by Trustee Jim Reardon The Board passed Clark Hamptons contract amendment by a vote of 5-2 (Trustee Hanacek and Pritchard voted no.)
CUSDWatch Comment Clark Hamptons Base Salary went from $203,611.00 to $221,391.00 + other pay and benefits, an increase of $17,780.00
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| April 25, 2018 CUSD BOT Meeting Agenda Item #32 PROPOSITION 39 - PROGRAM UP-DATE |
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Board Agenda at page 1,218 Board Audio at 2:54:38 This is an information only item. No action was taken. CUSDWatch Comment There needs to be an audit of CUSD- this is a pay -to-play scam that involved $10.5 million in State Prop 39 Clean Energy Grants and $26 million in CREB Bonds (Federal Clean Renewable Energy Bonds). What real benefit did taxpayers receive for the $36 million dollars? Consultants made millions. Documentation is provided after the presentation.
CUSDWatch Comment: Background Prop 39 Grants Californias' Prop 39 The Clean Energy Jobs Act passed November 2012 which allocated $2.5 Billion to K-12 and Community Colleges. Eligible energy projects include, but are not limited to, the following energy measures:
Note: According to Kitchell School Facilities Condition Reports, all mechanical systems in CUSD schools are past their useful life. The HVAC Systems are particularly important for the health and safety of students. The money should have been used to replace all the HVAC systems. Instead they spent money to place new controls on old and failing systems. CUSD is having a "chronic absentee problem" could it be due to unhealthy air quality at CUSD Schools?
Source: Data Quest CREB Bonds Federal Clean Renewable Energy Bonds (CREBS) Clean renewable energy bonds (CREBs) may be used by certain entities -- primarily in the public sector -- to finance renewable energy projects. The list of qualifying technologies is generally the same as that used for the federal renewable energy production tax credit (PTC). CREBs may be issued by electric cooperatives, government entities (states, cities, counties, territories, Indian tribal governments or any political subdivision thereof), and by certain lenders. The bondholder receives federal tax credits in lieu of a portion of the traditional bond interest, resulting in a lower effective interest rate for the borrower.* The issuer remains responsible for repaying the principal on the bond. Savings Category:
CUSD borrowed $26 million dollars to place solar panels at 6 high schools and the District offices. Board Report
CUSDWatch Comment This presentation only dealt with Prop 39 Funds. Schneider Electric is CUSDs' energy partner for both Prop 39 funds and CREB Bonds for solar projects. They must be looked at together for cost benefit analysis. Presentation by Schneider Electric PROP 39 FUNDS Funds Received $10,540,364 + Utility Rebates of $248,816 How the money was spent: Planning $629,370 Projects $9,910,994 Phase I LED Lighting at 6 high Schools (Completed April 2016) Phase II Building Automation Systems (HVAC Controls) at 5 High Schools, LED Lighting Dana Hills, School Dude Energy Module Software program Phase III Building Automation Systems (HVAC Controls) at 19 elementary and middle schools Annual Savings $238,811 CUSDWatch Comment CREB BONDS (Solar Projects) October 11, 2017 CUSD BOT Meeting Agenda Item #25 Financing Solar Projects page 783 Presentation by Government Financial Strategies on using CREBS to finance Solar Energy "The solar feasibility study estimated net project cash flow benefits of approximately $100,000 - $200,000 per year totaling nearly $3.7 million over 25 years." CUSD borrowed $26 million dollars to put solar panels on 6 high schools plus the District Office. CUSD had to put up Capo Valley High School and Las Flores Middle School as Collateral in a Lease - Lease back arrangement for the management of the system. In addition, CUSD hired Consultant Efficiency Energy, LLC to obtain one time energy efficiency tax deductions. Staff negotiated a deal that limited CUSDs' portion to $200,000 17%, when CUSD was entitled to 50% potentially $1,454,375 million. See: March 14, 2018 CUSD BOT Meeting Agenda Item #27 Consulting Engagement - Efficiency Energy, LLC
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CUSDWatch Comment
Background on Solar Projects
| CUSDWatch: CUSD Approves Solar Panel Project at a cost of $26 million dollars - Good Deal or Unscrupulous Waisting of Taxpayer Funds? Students Learn a Lesson from CUSD's Solar Project. | |||
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The Capistrano Unified School District is proposed to spend $115 million for electricity over the next 25 years. In an effort to reduce electricity costs, on December 6, 2017 the CUSD Board of Trustees approved Resolution No. 1718-28 to enter into an energy services contract with REC Solar Commercial Corporation to design, construct and operate a solar project at six high schools and the District Offices: Aliso Niguel High School: 1,099 kWdc photovoltaic system Capistrano Valley High School: 975 kWdc photovoltaic system Dana Hills High School: 1,081 kWdc photovoltaic system San Clemente High School: 745 kWdc photovoltaic system San Juan Hills High School: 894 kWdc photovoltaic system Tesoro High School: 1,167 kWdc photovoltaic system District Offices: 832 kWdc photovoltaic system Total kWdc = 6,793
With the Solar project installation the District is projected to reduce electrical costs from the projected $115,301,649.00 down to $94,069,778.00 saving CUSD $21,231,871.00 over 25 years. CUSD chose to purchase the photovoltaic system using CREB financing (Clean Renewable Energy Bonds) rather than lease the system. On November 8, 2017 Trustees approved $26 million in CREB bonds and a Lease- Lease Back financing arrangement using Capo Valley High School and Los Flores Middle school as collateral to finance the purchase of the system. Board Meeting Agenda November 8, 2017 at page 788 Board Audio at 188:16 Board Audio at 189:00 Superintendent and Board Comments Trustees were having trouble understanding Lease - Lease Back Financing Board Audio at 193:00 Motion by Trustee Pritchard Second by Judy Bullockus Resolution No. 1718-24 passes 5-0-2 (Trustee Reardon Absent - Trustee Jones left the room unannounced) See: CUSDWatch: Resolution No 1718-24 Authorizing $26 million in CREB Bond Financing According to a presentation by Government Financial Strategies, the solar feasibility study estimated net project cash flow benefits of CREB Bond financing and the Lease Lease back arrangement would generate approximately $100,000 - $200,000 per year in cash flow for CUSD over 25 years. Cash flow of $3.7 million over 25 years. Board Meeting Agenda October 11, 2017 Agenda Item #25 at page 783 Board Audio at 238:39 Superintendent Vital recommended that this be treated as an INFORMATION ITEM ONLY and be brought back to the Board for Discussion. No Action was taken See: CUSDWatch: BOT Meeting Agenda Item #25 Financing Solar Energy Projects
Trustees approved Resolution 1718-28 on December 6, 2017 which awarded the Energy Service Contract to REC Solar for the design , Installation and commission of Solar energy projects. Board Agenda December 6, 2017 Agenda Item #34 at page 534 Board Audio at 3:34:27 Presentation by Clark Hampton- Open Transparent Process. If approved CUSD would sell CREB Bonds tomorrow Dec 7, 2017 Students saw total transparency in the process as opposed to power purchase agreements that other districts do. Board Audio at 3:35:45 TRUSTEE COMMENTS None. Motion to Approve Resolution by Trustee Hanacek Second by Trustee Bullockus The Resolution 1718-28 was approved 5-0-2 (Trustee Reardon and Jones absent) The total cost approved in the resolution is $18,372,631.00 Capital Cost $17,563,660.00 O&M $713,788.00 Performance Guarantee $95,184.00 Total Cost = $18,372,631.00 However- documentation in Agenda Item #33 showed a Total Cost of $20,622,124 excluding OEM of $713,788.00. There seems to be a cost discrepancy of $2,963,281.00? The December Board Agenda had three separate Items related to the Solar Project: Agenda Item #8 PUBLIC HEARING: ENERGY SERVICE CONTRACT FOR SOLAR ENERGY PROJECTS: Supporting Documentation is in Agenda Item #34 page 35 (There was no mention of Agenda Item #33 Up-date on Solar Energy Projects and Request for Proposal Results which showed that the total cost for the Solar Project was $20,622,124 excluding OEM
Agenda Item #33 ARC states that the total cost of the project is projected to be $20,622,124.00 excluding OEM. The Resolution stated that OEM was $713,788.00 so according to Agenda Item #33, CUSD is spending $21,335,912 for the solar project not the $18,372,631 as stated in the resolution. In addition to the above, CUSD amended the Agenda Item by provided the following Handout at the meeting which was NOT included in the original documentation for the Public Hearing Agenda Item #8 or Agenda Item #33 and #34. Brown Act Violation?
In addition to the $43,830 paid to ARC Alternatives, CUSD has also paid Government Financial Strategies $250,000 as a financial Consultant on the Solar Project and $50,000 to Danis Wolver Kelly for work on the CREB Bond financing even after Staff represented to Trustees that there was NO EXPENSE in applying for the CREB Bonds. see: October 11, 2017 2017 Complaint to DA for Brown Act Violations Were these costs (paid for from Pacifica San Juan Mello Roos payments) included in the cash flow projections? Time Line May 10, 2017 CUSD BOT Meeting Agenda Item #5 page 79 CUSD paid Arc Alternatives $43,830.00 for the Solar Feasibility Study July 26, 2017 CUSD BOT Meeting Agenda Item #26 Solar Feasibility Study page 611 This was an Information/Discussion Item only. The Board took no action. Arc Alternatives presented the findings of the Solar Feasibility Study so that the District could determine if it should move forward to implement the Solar Project and if the District should submit an application for CREB Bonds to finance the solar project. Note: CUSD Staff had already submitted the application for the CREB Bonds prior to receiving Board approval (CREB Application was submitted in June 2017)
September 25, 2017 CUSD released and RFP for proposals for solar and battery storage at seven sites. When was this approved by Trustees?
October 11, 2017 CUSD BOT Meeting Agenda Item #25 Financing Solar Energy Projects page 783 Presentation by Government Financial Strategies on using CREBS to finance Solar Energy "The solar feasibility study estimated net project cash flow benefits of approximately $100,000 - $200,000 per year totaling nearly $3.7 million over 25 years." at page 783 CUSD had to put up Capo Valley High School and Las Flores Middle School as Collateral in a Lease - Lease back arrangement for the management of the system.
November 8, 2017 Up-date on Solar Energy Project This was an Information/Discussion Item Only - No Action Was Taken November 8, 2017 CUSD BOT Meeting Agenda Item #36 RESOLUTION NO. 1718-24 authorizing the issuance of $26 million in CREB Bonds. Data: The Solar Feasibility Study estimated project cash flow benefits of $100,000 to $200,000 per year, totaling $3.7 million per year over 25 years. December 6, 2017 BOT Meeting Public Hearing Agenda Item #8 PUBLIC HEARING Why did Clark Hampton ask Trustee McNicholas to read a 4- Item Statement into the record without providing that documentation to the Public? Board Audio at 1:52:01 Open Public Hearing at 9:08 pm No BLUE CARDS Trustee McNicholas starts to close the Public Hearing but Clark Hampton Deputy Superintendent for Business Services interrupts the Public Hearing and request that a statement must be read into the record... four Items. Board Audio at 1:53:02 Trustee McNicholas reads a very long statement containing four items. Close the Public Hearing at 9:11 pm
Why did CUSD give students Extra Credit for attending a Board meeting to advocate for a particular Board Item... Solar Power?
While I appreciate the work that all of the students did on this project - I cannot help but feel that students were used by CUSD. I would hope that students would go back and revisit the economics of this project with an INDEPENDENT 3rd party and verify the actual cost. Then look at the financing arrangement to make sure it is based on what was represented keeping in mind the following: CUSD is going into debt (it is borrowing $26 million dollars). CUSD also hopes to get another $889 million dollar school facilities bond on the next ballot. How much debt should taxpayers accumulate at the hand of CUSD and for what benefit. In addition to the costs stated above- CUSD received $8.13 Million in Prop 39 Energy Grants which could have been used to purchase new HVAC Systems for schools. Instead $5.9 million went to a single company- Schneider Electric for Energy Audits and an Energy Conservation Project.
Rather than increase the Base Funding Grant which would allow local districts to use more money in the classroom, the State uses grants to promote political agendas like "Green Energy". These are only 2 examples and look at the money spent for very little return $26 million in CREB Bond Debt + $8.9 million in Prop 39 Grant Money + $1.67 million for 5 electric busses that can't drive across the entire District without stoping for a charge.
And also consider the assumptions made to receive the cost savings on the $26 million dollar solar project: 1) It appears that these panels will be purchased from companies outside the US because there is a contingency in the Annual Cost of 5% because the current administration may increase tariffs on panels purchased outside the United States. See Board Agenda at page 529 " The “module trade case contingency” is a reserve to account for additional costs, if any, related to the Federal Section 201 solar trade case currently pending a final decision by the Administration. Any unspent funds will be used to pay down the outstanding bond balance, as required by law. CUSD did not include this in the Resolution Cost that it approved. That is part of the cost discrepancy. 2) Was there any discussion about health and safety differences in panels and batteries made outside the United States? Why not buy from an American company- Tesla was one of the bidders and not only are they based in America- they are a California company. 3) The Rate structure that the estimated savings grandfathered SCE and SDG&E Rates for 10 years. Annual Escalation in Rates is projected to be 3% per year- CUSD may loose substantial money for the remaining 15 years of this project. And the grandfathering is not in place yet- what if it is not received? |
| November 8, 2017 CUSD BOT Meeting Agenda Item #36 RESOLUTION NO. 1718-24, RESOLUTION OF THE BOARD OF TRUSTEES OF THE CAPISTRANO UNIFIED SCHOOL DISTRICT AUTHORIZING THE EXECUTION AND DELIVERY OF THE CAPISTRANO UNIFIED SCHOOL DISTRICT 2017 CERTIFICATES OF PARTICIPATION (NEW CLEAN RENEWABLE ENERGY BONDS) (SERIES A – DIRECT SUBSIDY) AND THE CAPISTRANO UNIFIED SCHOOL DISTRICT 2017 CERTIFICATES OF PARTICIPATION (SERIES B – TAXABLE) IN AN AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $26,000,000, AUTHORIZING THE DISTRIBUTION OF AN OFFICIAL STATEMENT IN CONNECTION THEREWITH, AND AUTHORIZING THE EXECUTION OF VARIOUS DOCUMENTS, AGREEMENTS, AND RELATED ACTIONS: |
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Board Meeting Agenda at page 788 Board Audio at 188:16 Board Audio at page 189:00 Superintendent and Board Comments Trustees having trouble understanding Lease - Lease Back Financing Board Audio at page 193:00 Motion by Trustee Pritchard Second by Judy Bullockus Resolution No. 1718-24 passes 5-0-2 (Trustee Reardon Absent - Trustee Jones left the room unannounced)
DECISION- Should CUSD Spend $26 million for Solar Energy Projects which would save the District $100,000 to $200,000 per year totaling $3.7 million over 25 years. With Lease-Leaseback option CUSD could generate a revenue stream for the District, but the amount is dependent on the cost of the solar project and the scope of the project which is not defined yet. Maybe a better use of money would be to replace all the HVACS using Prop 39 funds. If the Prop 39 money has been earmarked for something other than HVAC please know that CUSD can amend the Prop 39 Plan up until February 26, 2018 per Derrick Andrade, Staff Services Manager of the Budget Offices at CDE (916) 327-5922. Trustees should also be aware of the fact that the California Energy Commission has staff available to help CUSD with their energy plan, an unbiased resource. Proposition 39: California Clean Energy Jobs Act 2017 Program Implementation Guidelines New HVAC's are allowed under Prop 39 due to their energy savings. Using Prop 39 funds to purchase NEW HVAC's will save the District money spent on energy. Is the District just spending money on the solar project because CUSD has already received the CREB Bond funds? District Staff is stating that on October 11, 2017 that the Board of Trustees received an information presentation from Government Financial Strategies - not really - Superintendent Vital recommended that this be treated as an INFORMATION ITEM ONLY and be brought back to the Board for Board Discussion. No in-depth presentation was made and there was no Board Discussion. The Item should be discussed tonight and be brought back before the Board at the December meeting for approval. This is a 264 page document that cannot be digested in one meeting.
Word of Caution to Trustees: Davis v. Fresno Unified School District (2015) 237 Cal.App.4th261 Davis is a cautionary tale for CUSD. If you are going to try to avoid the competitive bidding laws by allowing a “consultant” to have a hand in designing and developing plans for the project which it later constructs through a lease-leaseback project, it better truly be a lease-leaseback project, and not just a typical design-bid-build project that is avoiding competitive bidding.
Only Trustees have a fiduciary duty to represent the interests of taxpayers and students in all matters before the Board. It is not a good idea for Trustees to give Staff unilateral ability to control the terms of the lease.
Solar Panels on six high schools and the District Offices:
Form only? No Signature Required? Almost every signature in this 264 page document requires no signature. There are no details and the "Authorized Officer, Acting Alone" can make any changes. |
BACKGROUND OCTOBER 11, 2017 BOT MEETING
| PUBLIC HEARING: October 11, 2017 CUSD BOT Meeting RESOLUTION TO AUTHORIZE ENTERING INTO AN ENERGY SERVICES CONTRACT PURSUANT TO GOVERNMENT CODE SECTION 4217.12 |
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CUSD SHOULD NOT EXECUTE THIS RESOLUTION The Resolution contains material mis-representations of fact. CUSD has spent almost $13 million in taxpayer dollars on green energy projects while CUSD students have no district funded art music science and now PE. Our class sizes are to large, our staff to student ratios are not safe. Our facilities have not been fixed or maintained for 15 years. This represents a FRAUD upon the taxpayers. CUSD Prop 39 Energy Grant from the State: $8.13 million CUSD CREB Funding from the Federal Government $4.7 million Let's use taxpayer money in the classroom- not to reward Pay-to-Play business entities. Staff made decisions without Board approval, and now expects Trustees to bless actions after-the-fact.
Trustees should not sign this Resolution - it contains false statements regarding material facts.The Contract AmountThe Resolution states that CUSD is paying Schneider Electric $4,702,128.21. The actual contract that supports the Resolution states that CUSD is paying Schneider Electric $4,321,505.00. The difference between the Resolution amount $4,702,128 and the contract amount is $380,623.21. Board Audio at 2 minutes 40 seconds At the September 13, 2017 BOT Meeting Trustees approved two contracts on the CONSET CALENDAR: ICA 1718118 Government Financial Strategies financial advisory services and analysis review and evaluation of a District wide solar project. Report should read that funding is from Bond Proceeds/ CFDs/ General Fund not Prop 39 Energy Grant Funds. Expenditures for this contract should read $250,000.00 not $325,000.00. PSA 1718110 Dannis Woliver Kelly to provide Counsel services for CREB Bonds should read Bond Proceeds not General Fund. Expenditures $50,000.00 The Resolution should be amended to accurately reflect that the $4,702,128 in CREB Funds is being spent as follows: Schneider Electric $4,321,505.00 Dennis Wolver Kelly $50,000.00 Government Financial Strategies $250,000.00 Source: September 13, 2017 CUSD BOT Meeting Agenda Item #4 on CONSENT CALENDAR at page 142 "Fees and Expenses Based on our plan of applying the CREB designation to the issuance of COPs, and consistent with our published fee schedule, our fixed fee for the refinancing is $72,850, plus $1,500 for expenses (mainly associated with printing and distributing the preliminary and final official statements). Our fees and expenses are payable from the proceeds of the issuance (and therefore built into the borrowing amount) when the financing closes – meaning no out-of-pocket cost to the District. Upfront planning work on the CREB application process may also be reimbursable to the District at the District’s option. In order to be able to provide independent advice to the District, if the financing process is not completed (e.g., the District changes its mind and decides to not move forward), then our fee would be based on the hours worked (at our rate of $225) and expenses incurred to that point, but not to exceed the fixed fee amount." Source: September 13, 2017 CUSD BOT Meeting Agenda Item #4 on CONSENT CALENDAR at page 139 Note: Of the $250,000.00 being paid to Government Financial Strategies only $54,050.00 was spent on the solar project. The remaining funds went to other projects hidden in this contract including payment for work on three land deals: Pacifica San Juan, Laguna Niguel and Dana Point Bus Yard.
The Scope of WorkThe CREB Application approved work on 17 sites. Without further discussion staff has unilaterally reduced that to 14 sites by eliminating Arroyo Vista MS, Aliso Viejo MS and Shor Cliffs Middle School. The Resolution that Trustees are being asked to approve tonight includes work on the 14 remaining school sites listed in the CREB Application. However, in the Board Report Staff is stating that the Scope of work will be limited to 12 sites. The Scope of work will not include Vista Del Mar ES or Vista Del Mar MS and therefor payment to Schnider electric will be reduced from $4,702,128 to $4,321,505. Staff acknowledges that the Resolution that Trustees are being asked to sign TONIGHT needs to be amended to reflect a change in the scope of the work. Source: October 11, 2017 CUSD BOT meeting Agenda Item #21 page 605 "This approval was obtained prior to the full development of the scope. As a result, the District has elected to revise the plan and the remove scope from Vista Del Mar and apply the remaining funds towards the costs related to the solar feasibility consultant as well as to pay for a construction manager. Therefore, upon approval by the Board, the District will enter into a contract with Schneider Electric for the revised plan amount of $4,321,505. An amendment will be made to Plan No. 3 before the deadline of June 30, 2018." Note: Is it legal to use CREB funds to pay consultants? If so why not be transparent about that?
The CREB ApplicationStaff asked Trustees to give them guidance to apply for CREB funds stating that there would be NO COST to the District. July 26, 2017 CUSD BOT Meeting Agenda Item #26 at page 611. Trustees were very luke warm after the presentation of the Solar Feasibility study. They were NOT ready to move forward. Superintendent Vital strongly advocated for having CUSD submit an application for financing the solar projects with Clean Renewable Energy Bonds (CREBs), which are a low interest cost method of financing subsidized by the United States Department of Treasury. Board Audio at 122.00 Superintendent Vital pushes for CREB Financing Applications whether or not CUSD actually goes through the installing the Solar Panels. In fact Staff had already applied for the CREB funds without Board Approval as evidenced by an August 25, 2017 Keith Weaver of Government Financial Strategies to Clark Hampton:
The CREB Application was approved June 13, 2017 Staff asked to apply for the CREB Funds at the July 26, 2017 CUSD BOT Meeting (one month after the CREBS had been approved). The $250,000.00 Contract to Government Financial Strategies used CREB funding to pay for other projects. CUSD SHOULD NOT EXECUTE THIS RESOLUTIONCUSD has spent almost $13 million in taxpayer dollars on energy projects while CUSD students have no district funded art music science and now PE. We have the largest class sizes in the State and in the Nation, our staff to student ratios are not safe. Our facilities have not been fixed or maintained for 15 years. This represents a FRAUD upon the taxpayers. CUSD Prop 39 Energy Grant from the State: $8.13 million CUSD CREB Funding from the Federal Government $4.7 million
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| October 11, 2017 CUSD BOT Meeting Agenda Item #20 RESOLUTION NO. 1718-19, APPROVING ENERGY SERVICES CONTRACT WITH SCHNEIDER ELECTRIC BUILDINGS AMERICAS, INC. FOR APPROVED PLAN NO. 3 (APPLICATION NO. 2085) FOR THE DISTRICT’S ENERGY CONSERVATION PROGRAM FOR 14 SCHOOL SITES |
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Board Agenda at page 604 Board Audio at 34:16 PUBLIC HEARING Board Audio at 68:38 AGENDA ITEM #20 DISCUSSION Moved by Trustee Reardon Second by Trustee Holloway Resolution Passed 7-0 This Item was Passed Without Discussion
Background:
District issued a Request for Proposals (RFP) No. 5-1516. The RFP was based upon a “Best Value” criteria method of selection as is permitted by applicable law.
Schneider Electric Buildings Americas, Inc. (Schneider) was selected. Funding $500,000.00 Prop 39 Energy Grant Funds August 22, 2016 John P. Dacey, Esq. of Bergman Dacey Goldsmith, PLC Legal Memorandum “the District’s RFP process conducted back in December 2015 was consistent with the California Energy Commission’s 2015 Program Implementation Guidelines, issued December 2014, and that the Board is authorized to award the implementation portion of the projects under the proposed Contract to Schneider Electric, Inc. as contemplated by the RFP.” September 14, 2016 The Board approved Resolution No. 1617-19 for Plan No. 1 (Application No. 1497) in the amount of $2,490,333.00 for an energy study of 6 High Schools: The six school sites included in this plan were Dana Hills High School, Capistrano Valley High School, San Clemente High School, Aliso Niguel High School, Tesoro High School and San Juan Hills High School. The scope for this plan was a light emitting diode (LED) lighting retrofit for all the exterior and parking lot spaces as well as several gyms, libraries and pools. This plan has been fully installed and completed at all six high schools. October 26, 2016 The District’s Energy Conservation Program Application 1646 was approved by the California Energy Commission (CEC) on October 26, 2016. The implementation of Approved Plan No. 2 (Attachment A) will reduce the Facilities' energy consumption and costs, and improve the Facilities' energy quality/reliability. The CEC approved state funding for Approved Plan No. 2 in the amount of $3,409,320 May 10, 2017 May 10, 2017 CUSD BOT meeting Agenda Item #1 PUBLIC HEARING: RESOLUTION NO. 1617-75, APPROVING ENERGY SERVICES CONTRACT WITH SCHNEIDER ELECTRIC BUILDINGS AMERICAS, INC. FOR APPROVED PLAN NO. 2 (APPLICATION NO. 1646) FOR THE DISTRICT’S ENERGY CONSERVATION PROGRAM FOR SIX SCHOOL SITES: May 10, 2017 CUSD BOT meeting Agenda Item #29 DISCUSSION/ACTION at page 446 Trustees approved the Energy Services Contract with Schneider in the Guaranteed Maximum Price amount of Three Million Four Hundred and Nine Thousand Three Hundred and Twenty Dollars and No Cents ($3,409,320.00) The six school sites included in this plan were Dana Hills High School, Capistrano Valley High School, San Clemente High School, Aliso Niguel High School, Tesoro High School and San Juan Hills High School. The scope for this plan includes a new Building Automation System at five of the six sites and an LED lighting retrofit for the pools and tennis courts at Dana Hills High School. The LED lighting retrofit has been installed along with the Building Automation Systems at San Juan Hills High School and Capistrano Valley High School. The remaining sites will be completed by Spring 2018. May 10, 2017 CUSD BOT meeting Agenda Item #5 ON THE CONSENT CALENDAR at page 67 the Board approved PSA 1617284 payment to Government Financial Strategies for $9,000 to provide analysis, review and evaluation of District wide solar projects. May 10, 2017 CUSD BOT meeting Agenda Item #5 ON THE CONSENT CALENDAR at page 67 the Board approved PSA 1617287 payment to ARC Alternatives for $43,840 to provide professional consulting analysis, evaluation and feasibility of potential solar projects at six high schools and District Office, including RFP preparation and support June 13, 2017 The District’s Energy Conservation Program Application 2085 was approved by the California Energy Commission (CEC) on June 13, 2017, in the amount of $4,702,128.21. PRIOR TO BOARD APPROVAL (Staff asked for Board Approval to apply for CREB financing at the July 26, 2017 BOT Meeting Agenda Item #26 page 611 This approval was obtained prior to the full development of the scope. As a result, the District has elected to revise the plan and the remove scope from Vista Del Mar and apply the remaining funds towards the costs related to the solar feasibility consultant as well as to pay for a construction manager. Therefore, upon approval by the Board, the District will enter into a contract with Schneider Electric for the revised plan amount of $4,321,505. An amendment will be made to Plan No. 3 before the deadline of June 30, 2018. The 14 school sites included in Plan No. 3 are Truman Benedict Elementary School, Del Obispo Elementary School, Fred Newhart Middle School, Las Flores Elementary School and Middle School, Don Juan Avila Elementary School and Middle School, Ladera Ranch, Elementary School and Middle School, Niguel Hills Middle School, Marco Forster Middle School, Bernice Ayer Middle School and Vista Del Mar Elementary School and Middle School. July 26, 2017 July 26, 2017 CUSD BOT Meeting Agenda Item #26 at page 611. Trustees were very luke warm after the presentation of the Solar Feasibility study. They were NOT ready to move forward. Superintendent Vital strongly advocated for having CUSD submit an application for financing the solar projects with Clean Renewable Energy Bonds (CREBs), which are a low interest cost method of financing subsidized by the United States Department of Treasury. Board Audio at 122.00 Superintendent Vital pushes for CREB Financing Applications whether or not CUSD actually goes through the installing the Solar Panels. In fact Staff had already applied for the CREB funds without Board Approval.
September 11, 2017 On September 11, 2017 I sent Trustees a letter asking them to pull two contracts: ICA 1718118 $325,000.00 Contract with Government Financial Strategies to provide financial advisory services and analysis review and evaluation of a District Wide Solar Project. Funding: Prop 39/General Funds and PSA 1718110 $50,000.00 Contract with Dannis Woliver Kelley to provide Bond Counsel services for CREB Bonds (Clean Renewable Energy Bonds). Funding: General Funds September 13, 2017 Board Audio at 2 minutes 40 seconds At the September 13, 2017 BOT Meeting Trustees pulled the following contracts and made the following corrections: ICA 1718118 Government Financial Strategies financial advisory services and analysis review and evaluation of a District wide solar project should read. Report should read that funding is from Bond Proceeds/ CFDs/ General Fund not Prop 39. Expenditures for this contract should read $250,000.00 not $325,000.00. PSA 1718110 Dannis Woliver Kelly to provide Counsel services for CREB Bonds should read Bond Proceeds not General Fund. The corrections Trustees made verbally on September 13, 2017 have not been reflected in a "REVISED" Agenda to date. September 27, 2017 CUSD provided a Notice of a Public Hearing to be held regarding the award of this contract as required by Government Code Section 4217.12
October 11, 2017 At the October 11, 2017 CUSD BOT meeting, the Board is required to make the following findings: 1. The Board adopts the findings and recommendations of staff as set forth in staff’s Report and Attachment A thereto as the Board’s findings; and 2. Schneider Electric was selected through a competitive Request for Proposal process consistent with the requirements set forth in the California Energy Commission’s 2015 Program Implementation Guidelines, has performed the needed evaluations and assessments required to receive approval for state funding of the projects, said funding has now been received as a result of the District’s and Schneider Electric’s efforts, and has guaranteed to implement those conservation measures for a price not to exceed the state funding received by the District for the projects. Therefore, by entering into the proposed Energy Services Contract with Schneider to implement the ECM recommendations the Board finds that it is in the best interests of the District, provides the best value to the District, and pursuant to California Government Code § 4217.10 et seq. the Board hereby approves the proposed Energy Services Contract with Schneider to implement the measures recommended in Approved Plan No. 3 for the Facilities as a design-builder and construction manager CREB Funding has been received in the amount of $4,702,128.21 Resolution No 1718-19 Approves Plan No. 3 (Application No. 2085). CUSD removed Vista Del Mar from the scope of work and will use the difference ($380,623.21) in funds to pay for the costs related to the solar feasibility consultant as well as to pay for a construction manager. The difference is: $4,702,128.21 - $4,321,505 = $380,623.21 The Resolution should be modified to accurately reflect that Schneider Electric is being paid $4,321,505 and that $380,623.21 is being paid to other parties not identified in this resolution.
The Contract: The Contract - Effective Date: October 12, 2017 includes Vista Del Mar Elementary and Middle School even though Staff said they have been removed from the Scope of Work. Why is Staff asking CUSD Trustees to approve a contract that includes Vista Del Mar noting that an amendment to remove Vista Del Mar will be required before June 30, 2018. Amend the Contract now to properly reflect the scope of work. The Contract Price is $4,321,505.00 Board Agenda at page 613
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| October 11, 2017 CUSD BOT Meeting Agenda Item #25 FINANCING SOLAR ENERGY PROJECTS |
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Board Agenda page 783 Board Audio at 238:39 Superintendent Vital recommended that this be treated as an INFORMATION ITEM ONLY and be brought back to the Board for Discussion. No Action was taken
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| January 24, 2018 CUSD BOT Meeting Agenda Item #38 FINANCING RESULTS OF CLEAN RENEWABLE ENERGY BONDS FOR SOLAR ENERGY PROJECTS | |
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Board Meeting Agenda at page 874 Board Audio
January 24, 2018 CUSD BOT PRESENTATION
HUMMMM?Background: The District was awarded an allocation of Clean Renewable Energy Bonds by the US Department of the Treasury on August 15, 2017 in the amount of $23.87 million for the seven project sites PRIOR TO BOARD APPROVAL. July 26, 2017 CUSD BOT Meeting Agenda Item #26 Solar Feasibility Study page 611 This was an Information/Discussion Item only. The Board took no action. Arc Alternatives presented the findings of the Solar Feasibility Study so that the District could determine if it should move forward to implement the Solar Project and if the District should submit an application for CREB Bonds to finance the solar project. Note: CUSD Staff had already submitted the application for the CREB Bonds prior to receiving Board approval (CREB Application was submitted in June 2017) September 25, 2017 CUSD released and RFP for proposals for solar and battery storage at seven sites. When was this approved by Trustees? October 11, 2017 CUSD BOT Meeting Agenda Item #25 Financing Solar Energy Projects page 783 Presentation by Government Financial Strategies on using CREBS to finance Solar Energy "The solar feasibility study estimated net project cash flow benefits of approximately $100,000 - $200,000 per year totaling nearly $3.7 million over 25 years." at page 783 CUSD had to put up Capo Valley High School and Las Flores Middle School as Collateral in a Lease - Lease back arrangement for the management of the system. November 8, 2017 Up-date on Solar Energy Project This was an Information/Discussion Item Only - No Action Was Taken November 8, 2017 CUSD BOT Meeting Agenda Item #36 RESOLUTION NO. 1718-24 authorizing the issuance of $26 million in CREB Bonds. Data: The Solar Feasibility Study estimated project cash flow benefits of $100,000 to $200,000 per year, totaling $3.7 million per year over 25 years. December 6, 2017 BOT Meeting Public Hearing Agenda Item #8 PUBLIC HEARING Why did Clark Hampton ask Trustee McNicholas to read a 4- Item Statement into the record without providing that documentation to the Public? Board Audio at 1:52:01 Open Public Hearing at 9:08 pm No BLUE CARDS Trustee McNicholas starts to close the Public Hearing but Clark Hampton Deputy Superintendent for Business Services interrupts the Public Hearing and request that a statement must be read into the record... four Items. Board Audio at 1:53:02 Trustee McNicholas reads a very long statement containing four items. Close the Public Hearing at 9:11 pm A PUBLIC RECORDS REQUEST WAS MADE FOR THAT STATEMENT - NO RESPONSE HAS BEEN GIVEN TO DATE
Why did CUSD give students Extra Credit for attending a Board meeting to advocate for a particular Board Item... Solar Power? Board Audio at 2:21:20 Max Student Representative on the Board: Raise your hand if your her for Solar? Keep your hands raised if you are also in an AP class? Ah Ha I see you guys... get that extra credit AP Environmental Science. IT IS INAPPROPRIATE FOR STUDENTS TO RECEIVE EXTRA CREDIT FOR ATTENDING BOARD MEETINGS TO ADVOCATE FOR A SPECIFIC AGENDA ITEM- Solar Power December 21, 2017 $21,705,000 CREB BOND DEBT Funds were deposited December 21, 2017
This project qualifies CUSD for just under $10 million in State Modernization funds. A Complaint was filed with the District Attorney for Brown Act Violations. |
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- April 25, 2018 CUSD BOT Meeting
