Letter to Trustees to Pull Two Contracts from the September 13, 1017 Consent Calendar

Letter to Trustees to Pull Two Contracts from the September 13, 1017 CONSENT CALENDAR 

Date: Monday September 11, 2017

From: Dawn Urbanek

To: Trustees Capistrano Unified School District

Re: Request that you pull the following contracts from the September 13, 2017 Board Meeting Agenda Item #4 on the CONSENT CALENDAR at page 81.

____________________________________________________________________

ICA 1718118 $325,000.00 Contract from Prop 39/General Funds to Government Financial Strategies to provide financial advisory services and analysis review and evaluation of a District wide solar project.

and 

PSA 1718110 $50,000.00 Contract from the General Fund to Dannis Woliver Kelley to provide bond Counsel services for CREB Bonds (Clean Renewable Energy Bonds).  

July 26, 2017 BOT Meeting Agenda Item #26 Solar Feasibility Study page 611

NO BLUE CARD WAS PULLED

A BLUE CARD SHOULD HAVE BEEN PULLED

Board Audio at 104:40

Trustee Jones brings up new EMF sources on to campus which are a danger to students.

Board Audio at 110:04

Trustee Holloway concerned about loss of trees on campus to place solar panels on campuses.

Red Flag Taxpayers

Board Audio at 113:54

How funding is done and the ability to avoid RFP process.

Process going forward:

Consultant will work with students 

Design Build Contracts - Best Value vs Low Bid

Gov code 4217 for an award - for Energy Projects (Prop39) you don't need to pick the lowest bidder- as long as project saves more money than it costs. Consultant wants to select bidder- not just rely on "Low Bid".

CREB Financing is FEDERAL Money.

CREB Financing model is cash positive all years.

Clean Renewable Energy Bond Funding Source. 

Asking Board to approve application for CREB Bonds for all these sites.

Board Audio at 122.00

Superintendent Vital pushes for CREB Financing Applications whether or not CUSD actually goes through the installing the Solar Panels.

This Item was discussed for almost a full hour. CUSD discussed the LCAP - the only accountability tool to measure academic performance of student outcomes and how CUSD is doing in meeting its goals lasted 11 minutes for both the PUBLIC HEARING and Discussion/Action Item. 

Taxpayers should be very concerned about Prop 39 Projects and how money is spent- LOTS OF PAY TO PLAY and how CA uses Taxpayer dollars to promote its Green Energy policy using our Public Education System.

Insufficient funding for Art- Music- Science- but we received a grant to purchase $325,000 electric buses (we no longer have bus routes for the average kid to get to school) and now we will have solar power on 6 high schools. HUMMMMM

See: Mis-use of Taxpayer Funds? $334,798 for one electric school bus!

 

The Board never gave Staff direction to spend $375,000.00 to apply for the CREB Bonds.

At the July 26, 2017 BOT Meeting Agenda Item #26 Trustees received a presentation from Arc Alternatives who did a Solar Feasibility Study for CUSD to place solar panels at 6 District High Schools. The study cost CUSD $43,840,00.

This was an INFORMATION/DISCUSSION Item Only.

At the end of the presentation Staff recommended as next steps that CUSD should begin to apply for CREB Bond financing so as to HOLD A PLACE, while Trustees made up their minds about wether to continue the Solar Project.

Trustees asked if there was any downside to applying for these Bonds in the event that they decided NOT to do the project. 

Staff made representations to Trustees that there was NO FINANCIAL IMPLICATIONS, OR DOWNSIDES to filing the application for the CREB Bonds.

The two contracts placed on the September 13, 2017 Board Meeting Agenda Item #4 at page 80 states that CUSD is seeking approval to spend $375,000 to apply for CREB Bond financing. 

The Board Report Prepared and Approved by Clark Hampton clearly States:

Well - clearly there is a $375,000 Cost to CUSD to apply for the CREB Bonds that Trustees were not made aware of until today. 

The following is the proposed contract with Government Financial Strategies for $325,000. Oddly it contains financial compensation for several other projects that have nothing to do with the Solar Project that were not indicated in the Board Report:

Budget

Planning and consulting projects

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

• Estimated total budget: $30,000

Asset management planning

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

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

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

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 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 Solar Project Financing

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

This is very confusing to the PUBLIC as it appears that Staff was trying to implement $375,000.00 in Contracts without full disclosure to the Board of Trustees.

 

Government Financial Strategies Contract Staff is seeking to pass ON CONSENT

September 13, 2017 BOT Meeting Agenda Item #4 at page 137

 

Dannis Woliver Kelley Contract Staff is seeking to pass ON CONSENT CALENDAR

Board Audio at 121:55 Listen closely to Kristen Vital push really hard to get guidance to allow Staff to develop and submit an application for the CREB Bonds now. If CUSD is not in line and there are not RFP's out there we will miss out on this Federal money... and the money is disappearing by the day. We can work out the details of everything else later. 

Lessons learned from Irvine and Saddleback.

Board Audio at 124:29 Trustee McNicholas - There is no down side to applying for the CREB Bonds if we decide not to use it. 

Board Audio at 124:29 Kristen Vital - The reality is, if we are going to do this, we should be using CREBS and we should get on this now. It makes sense to apply while we resolve these issues. It makes sense to apply.

Board Audio at 125:27 Trustee McNicholas - do we needs an action on that?

Response Superintendent Vital- No this is for information and discussion only. We will take your "Guidance" and come back in September to finalize.

So Staff has made the unilateral decision to place these two contracts - $375,000.00 worth on the CONSENT CALENDAR of another 1000 page agenda.

The $375,000.00 cost to apply for the CREB Bond CUSD may not use was never disclosed by Staff or Superintendent Vital.