September 20, 2017 Letter to Superintendent Vital to Correct the September 13, 2017 Board Meeting Agenda.

Date: September 20, 2017

To:    Superintendent Vital

Cc:       Clark Hampton, CUSD Board of Trustees

San Juan City Council

The Pacifica San Juan Community Association

Re:    Please correct the Public Record - September 13, 2017 Agenda

1) Item #2 Donations of Funds and Equipment

2) Item #4 Independent Contractor, Professional Service and Master Contract Agreements - 3 Contracts

3) Contract  ICA 1718118 Government Financial Strategies must be brought back before the Board for review and approval. The Agenda; even as modified at the Board meeting, does not accurately reflect the funding source for the services that are being rendered. 

4) Payments made to Government Financial Strategies for Pacifica San Juan should be reviewed to see if they constitute a mis-use of Mello Roos. These payments include:

Asset Management Planning for Pacifica San Juan $25,000.00

CFO 98-1A bonds: $54,050 for professional fees plus $1,000 for expenses, payable at completion

CFO 98-1 B bonds $54,050 for professional fees plus $1,000 for expenses, payable at completion

Total Expenditures $133,100.00

This money should be returned.

 ____________________________________________________________________

1) Agenda Item #2 Donations of Funds and Equipment

At the September 13, 2017 BOT Meeting Staff ch

Board Audio at 2 minutes 23 seconds

Trustee McNicholas stated that a sorting error had occurred when this item was prepared. Staff changed the Item as reflected in a paper hand-out at the meeting.  

The corrections Trustees made verbally and in the paper hand-out on September 13, 2017 have not been reflected in a "REVISED" Agenda to date.

2) Agenda Item #4 Independent Contractor, Professional Service and Master Contract Agreements

Board Audio at 2 minutes 40 seconds

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   

Trustees pulled three contracts and made the following corrections to the Items:

ICA 1718117 Cooperative Strategies LLC Prepare Annual Five Year Report should read that funding is from Developer Fees, not the General Fund. 

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.

3) Contract  ICA 1718118 Government Financial Strategies must be brought back before the Board for review and approval. The Agenda; even as modified at the Board meeting, does not accurately reflect the funding source for the services that are being rendered. The Agenda even as modified at the Board meeting does not accurately reflect the funding source for the services that are being rendered. 

September 13, 2019 Board Agenda at page 139

Planning and consulting projects

Standard hourly rate of $225 plus expenses, invoiced monthly, unless specified.

Estimated total budget: $30,000

[Funding Source needs to be identified]

Asset management planning

Pacifica San Juan: $25,000 total, based on hourly rate, invoiced monthly.

At the September 19, 2017 San Juan City Council Meeting, the San Juan Capistrano City Council rejected CUSD's request for a zoning change on a parcel of land in Pacifica San Juan that is currently zoned as "Open Space" or "school site". 

The conduct of CUSD in trying to re-zone land they do not currently own, so that they could take $15 million dollars in profit from the Pacifica San Juan Mello Roos taxpayers is unconscionable. The fact that CUSD was changing the zoning for the purpose of building low-income, high density housing (18 homes per acre) in a single family detached home neighborhood so that CUSD could provide inexpensive, ocean view housing to district employees is worse.     

This money should be refunded to these Mello Roos Taxpayers - a check should be written.

See my September 19,2017 letter to the San Juan City Council 

[Funding Source Pacifica San Juan Mello Roos]

Laguna Niguel: $10,000 total, based on hourly rate, invoiced monthly.

[Funding Source needs to be identified]

Dana Point: $15,000 total, based on hourly rate, invoiced monthly.

[Funding Source needs to be identified]

Laguna Niguel and Dana Point land deals are probably unconscionable as well, and should also be reviewed.

Continuing Disclosure

$2,500 per year for the first four debt issuances, and $500 for each additional debt issuance, totaling $6,500 based on outstanding debt, payable at beginning of year

[Funding Source needs to be identified]

CFO 98-1A bonds 

$54,050 for professional fees plus $1,000 for expenses, payable at completion

[Funding Source Pacifica San Juan Mello Roos]

CFO 98-1 B bonds

$54,050 for professional fees plus $1,000 for expenses, payable at completion

[Funding Source Pacifica San Juan Mello Roos]

Solar Project Financing 

$54,050 for professional fees plus $1,000 for expenses, payable at completion inc.

[Funding Source Prop 39 Energy Grant]

At the July 26, 2017 BOT meeting Staff informed Trustees that there would be no financial implications for the District if it were to apply for CREB Bonds to pay for solar panels on 6 high schools. The Application would just hold a spot for CUSD in the event that they decided to go through with the project. 

Board Audio at 122:00 (2 hours 2 minutes)

Staff did not disclose the costs associated with the work done to apply for CREB Bonds which they listed on the September 13, 2017 Agenda as $425,000.00

$375,000.00 to Government Financial Strategies

$50,000.00 to Dannis Woliver Kelly. 

Staff stated that there was NO FISCAL IMPACT TO THE DISTRICT TO APPLY FOR THE CREB BONDS.

In total, we estimate a budget of up to $250,000 for projects in FY 2017-18.

The CUSD Agenda still reflects expenditures to Government Financial Strategies in the amount of $375,000.00

No General Fund Money should have been used for any of this.