CAPISTRANO UNIFIED SCHOOL DISTRICT
33122 Valle Road
San Juan Capistrano, CA 92675
BOARD OF TRUSTEES
Regular Meeting December 12, 2018
CLOSED SESSION 4:00 pm
MUSICAL SHOWCASE 6:30 pm
Capistrano Valley High School - Saxophone Trio
Daniel Le, Patrick Polcuch, and Mark Vilchez
Under the direction of Andreas Waldukat, Director of Instrumental Music
OPEN SESSION 7:00 pm
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December 12, 2018 CUSD BOT Meeting: CLOSED SESSION |
1. CALL TO ORDER
2. CLOSED SESSION COMMENTS
3. CLOSED SESSION (as authorized by law)
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A. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION
Kirsten Vital/Clark Hampton/Susan Holliday Attorney - David Huff Significant Exposure to Litigation- Three Cases
(Pursuant to Government Code § 54956.9(d)(2)(3))
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EXHIBIT A-1 |
CUSDWatch Comment
David Huff is with Orbach, Huff, Suarez & Henderson
Construction Business Services Charter Schools Real Estate / Eminent Domain Appellate & Writ Practice Environmental Labor Compliance / Prevailing Wage
David M. Huff is an experienced advocate and litigator in construction, real estate, condemnation and charter school litigation. He is highly regarded in the representation of public entities in contract, construction, labor and environmental matters from transactions to claims resolution. David has successfully defended over $500M in claims for one public agency alone, and represented others in trial and arbitration involving substantially complex issues of fact and law. He has also handled general administrative and regulatory hearings and trials before various agencies, including successfully pursuing dozens of prevailing wage enforcement matters and has experience with drafting, negotiating, and administrating project labor agreements. David advises public school districts throughout the state on all matters related to charter schools, petition review, Proposition 39 compliance, facilities use agreements and dispute resolution. David is also a leading appellate lawyer in the state, having prevailed in twelve appellate matters related to construction law, charter law or governmental law matters, including having successfully represented a school district before the California Supreme Court. In addition to his public agency practice, David also represents several select private entity developers and REITs providing a range of private development services including procurement transactions, environmental and regulatory matters, and project claims resolution. David has assisted these private developers with implementing several high-rise hotels, adaptive re-use properties, and multi-family residential projects throughout California and the United States.
David was literally born and raised in the construction industry as his father and grandfathers ran small general contracting businesses in Illinois. Moving west with his family, he attended the University of California at Santa Barbara on a Regents Scholarship, completing majors in both philosophy and religious studies. David graduated from Loyola Law School in Los Angeles in 1992. He currently counsels Southern California’s largest public institutions and was profiled in the Los Angeles Daily Journal for his litigation and negotiation skills in an article aptly titled ‘Persistence Pays’ (April 30, 1999). David actively coaches in youth sports leagues as well as works hard at photography, sometimes with success.
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Gregory Merwin Attorney Ernest Bell Significant Exposure to Litigation – Two Cases
(Pursuant to Government Code § 54956.9(d)(2))
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IDR Case Number20181008 |
EXHIBIT A-2 |
IDR Case Number20181018 |
EXHIBIT A-3 |
CUSDWatch Comment
Ernest Bell is with Atkinson, Andelson, Loya & Romo
Ernest Bell specializes in Special Education and Student Issues.
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Clark Hampton Attorney - Terry Tao Significant Exposure to Litigation- One Case
(Pursuant to Government Code § 54956.9(d))
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CUSDWatch Comment
Terry T. Tao was with Atkinson, Andelson, Loya & Romo for 28 years, In November 2018 he started his own law firm The Tao Firm
PUBLIC WORKS
We have 26 years of public works experience. The experience starts with good contracts, support through the myriad of public works statutes and laws and extends through procurement and construction.
CONSTRUCTION ADVISE
Our goal is to keep projects moving. We have experts in construction and Terry Tao is both a licensed architect and attorney. He recognizes construction problems, their genesis and how to resolve the disputes. He has experience with Division of State Architect, Office of Public School Construction, State Allocation Board, and many city and planning departments.
BUSINESS ADVICE
We assist in all forms of business advice for school districts and other public entities
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B. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
Gregory Merwin Attorney – Ernest Bell Significant Exposure to Litigation – Three Cases
(Pursuant to Government Code § 54956.9(d)(1))
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OAH Case Number 2017090988 |
EXHIBIT B-1 |
OAH Case Number 2018100084 |
EXHIBIT B-2 |
OAH Case Number 2018110436 |
EXHIBIT B-3 |
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C. LIABILITY CLAIMS
Clark Hampton Significant Exposure to Litigation – One Case
(Pursuant to Subdivision (d) of Government Code § 54956.9, Paragraph (2) or (3))
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Rejection of Government Claim No. 1805366 |
EXHIBIT C-1 |
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D. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
District Negotiators: Kirsten M. Vital and Clark Hampton < /br>Attorney: Andreas ChialtasUnder Negotiation: Price and Terms of Payment< /br> (Pursuant to Education Code § 54956.9)
Pacifica San Juan property
Property: Pacifica San Juan property 7.292 acre property located at the north east corner of Camino Las Ramblas and Avenida California Negotiating Party: One or more potential buyers for the Property who may purchase the Property through a request for proposals process.
This is on tonights Agenda as Item #44:
AGENDA ITEM #44 RESOLUTION NO. 1819-26, APPROVING AGREEMENT TO SELL THE RIGHT TO PURCHASE REAL PROPERTY AND DIRECTING STAFF TO ASSESS POTENTIAL USES OF THE PROCEEDS (LAS RAMBLAS PROPERTY)
Board Agenda page 777
CUSD received the right to purchase approximately 7.292 gross acres of land located at the northeast corner of the intersection of Camino Las Ramblas and Avenida California in San Juan Capistrano.
Because the District does not currently own, or hold title to, the Property, the Purchase Right Agreement creates a “pass-through” title arrangement whereby title to the Property goes directly from the Owner to Lennar. The District will never own the Property pursuant to this transaction but instead will facilitate the transfer of title from Owner to Lennar. Thus, the surplus property procedures set forth in the Education Code, which applies to property sold or leased by school districts, does not apply to this transaction because the District is not the owner or seller of the Property. Furthermore, the District may review its current property and facility needs and determine how to utilize the proceeds from this transaction.
CUSD will receive a minimum price of $18,010,259.00 for the 7.292 acres $2,469,865 per acre
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South Transportation and Grounds Keeping Facility
Property: South Transportation and Grounds Keeping Facility. 5.51 acre property located at 26126 Victoria Blvd, Dana Point, CA 92624 Negotiating Party: One or more potential buyers or lessees for the Property who may purchase or lease the Property through a surplus property bid auction process
This is on tonights Agenda as Item #45:
AGENDA ITEM #45 RESOLUTION NO. 1819-25, APPROVING AGREEMENTS TO LEASE DISTRICT SURPLUS REAL PROPERTY AND DIRECTING STAFF TO ASSESS POTENTIAL USES OF THE LEASE PROCEEDS (SOUTH BUS YARD PROPERTY)
Board Agenda page 823
The District’s Board previously declared certain property surplus, consisting of approximately 5.51 acre property located at 26126 Victoria Blvd, Dana Point, CA 92624 (Property) pursuant to the Education Code § 17455 et seq. The District’s Board also authorized and instructed District staff to seek authorization from the State Board of Education (SBE) to pursue leasing the Property through a “Request for Proposals” (RFP) process by obtaining a waiver from SBE. District staff obtained a waiver from SBE and circulated an RFP document seeking proposals from parties interested in leasing the Property. Pursuant to the RFP process, the District staff identified Toll Brothers, Inc. (Toll) as the entity that offered the most beneficial terms to the District for the lease the Property. District staff, in consultation with legal counsel, negotiated two agreements with Toll to effectuate the lease of the Property:
1) a “Option to Lease Real Property” agreement which grants Toll a time period to review the Property to determine if the Property will meet Toll’s needs in exchange for certain monetary deposits to be delivered to the District, (the Option Agreement) and
2) a “Ground Lease” Agreement which establishes the terms and conditions by which Toll will lease the Property from the District in exchange for monthly rental payments (the Lease Agreement).
This Resolution includes current copies of the Option Agreement and the Lease Agreement for the Board’s review and approval. It is anticipated that further revisions to the Option Agreement and the Lease Agreement will be made prior to final Board approval on December 12, 2018, and final documents shall be provided pursuant to the Brown Act.
This Resolution authorizes staff to execute the Option Agreement 30 days after the final agreements are approved by the Board. Further, this Resolution
1) directs staff to review and assess the specific capital outlay, maintenance and other facility related needs of school sites located in the City of Dana Point,
2) establishes priority projects,
3) directs staff to establish a separate fund to receive proceeds from the lease of the Property, and
4) directs use of such proceeds for priority projects and capital facilities needs.
CUSDWatch Comment
Toll Brothers Apartment living was selected as the most beneficial proposal for the project for the following reasons:
- Best financial offer:
- highest annual ground rent
- Best terms during the Entitlement Phase
- Met the objective of the Mission Statement
- Financial Strength of the Respondent
OVERVIEW OF THE TERMS OF THE LEASE ¾
Term: 99 Years; no extensions
Initial Annual Rent: $3,150,000 for 425 market rate units
Minimum Annual Rent: $2,500,000 if entitled for less units or affordable units
Rent Increases: 13.14% every five years
Use of Property: Multi-family residential and accessory uses
Taxes and Utilities: Toll to pay all taxes and utility charges
Encumbrance: Toll may encumber the Property with Institutional Investor
Ownership of Project: At end of Lease, all buildings and improvements become property of District without any encumbrances
If both parties are allowed to encumber the property... does this last paragraph mean that if there are encumbrances on the property Toll will be responsible for them ?
For a full background on this property see: CUSDWatch: Public Hearing - Intent to Request Waiver - South Bus Yard
CUSD has planned to put residential housing on this site since at least January 18, 2017 - see slide presentation last side in the article shows the plan.
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Paseo de Colinas property
Property: Paseo de Colinas property. 2.47 acre property located on Paseo de Colinas adjacent to Niguel Hills Middle School Negotiating Party: One or more potential buyers for the Property who may purchase the Property through a surplus property bid auction process.
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CUSDWatch Comment
Andreas Chialtas is with Atkinson, Andelson, Loya & Romo
Andreas Chialtas is the chair of AALRR's Facilities, Construction & Property Practice Group. Mr. Chialtas practices primarily in the areas of facilities, land use and management, public works, and real property law. He focuses on transactional matters, including negotiation of complex development mitigation agreements, property acquisition, disposition of surplus property, and construction of facilities utilizing traditional and alternative construction-delivery methods.
Mr. Chialtas advises school districts, community colleges, county offices of education, and special districts on land use and public facility issues. He negotiates and drafts construction contracts, purchase and sale agreements, leases, licenses, joint use agreements, and school fee mitigation agreements. He has experience in many areas of litigation, including real property, construction, and general business litigation.
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E. STUDENT READMISSIONS
Mike Beekman Five Cases
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Case # 2018-021 |
EXHIBIT E-1 |
Case # 2018-023 |
EXHIBIT E-2 |
Case # 2018-034 |
EXHIBIT E-3 |
Case # 2018-039 |
EXHIBIT E-4 |
Case # 2018-041 |
EXHIBIT E-5 |
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F. STUDENT EXPULSIONS
Mike Beekman Nine Cases Case # 2018-050
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Case # 2019-011 |
EXHIBIT F-1 |
Case # 2019-015 |
EXHIBIT F-2 |
Case # 2019-017 |
EXHIBIT F-3 |
Case # 2019-019 |
EXHIBIT F-4 |
Case # 2019-021 |
EXHIBIT F-5 |
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EXHIBIT F-6 |
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EXHIBIT F-7 |
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EXHIBIT F-8 |
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EXHIBIT F-9 |
CUSDWatch Comment
It says there are 9 cases, but the Agenda only provides 5 case numbers |
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G. PUBLIC EMPLOYEE DISCIPLINE/DISMISSAL/RELEASE
Tim Brooks/Susan Holiday
(Pursuant to Government Code § 54957)
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H. PUBLIC EMPLOYEE EMPLOYMENT/APPOINTMENT
Superintendent
(Pursuant to Government Code § 54957)
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