|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.
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).
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:
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.
• $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.