August 26, 2016

August 2016 Hall Monitor

Legislative Update
by Julie Romero
The Legislature reconvened on August 1 and is now focusing on the following facilities bills:

AB 2316 (O’Donnell) – Lease-Leaseback

Creates competitive selection method for Lease-Leaseback as well as protecting contracts signed prior to July 1, 2015 from disgorgement. The bill has passed out of the Senate Education Committee with amendments to the disgorgement section.

AB 2429 (Thurmond) – Proposition 39 Bond Caps  Sponsored by the Albany Unified School District, AB 2429 will increase bonding capacity limits issued under Proposition 39 as follows:

 

  • From 1.25% of taxable property to 2% for elementary and high school districts
  • From 2.5% of taxable property to 4% for unified school districts and community college districts
This bill could have significant repercussions for the calculations of Level 2 developer fees. The current codes require issued debt for capital outlay. Increasing the bonding capacity limits would make it harder for many schools to meet the requirements to levy Level 2 fees.

SB 313 (Morning) – School Siting

This bill
would add the county agricultural commissioner to the list of local entities which must be notified before acquiring a new school site.  School districts would be required to attempt to cut back on land use when zoned for agricultural production. School districts would also be required to contact the city or county at least 30 days prior to voting to consider if a zoning ordinance fails to accommodate the need to renovate and expand within the city or county.
SB 885 (Wolk) – Indemnity  SB 885 Proposes changes to the options for contractual arrangements between schools and design professionals.  However, it did not meet deadlines to continue moving through the legislative process and now appears dead.
For more information on these bills or November’s upcoming bonds, please contact Bob Nicholson at 858-414-6268 or at bob@ehanda.com.

“Yes on Proposition 51” Campaign is Now Underway!
By Claire Cote and Julie Romero
The Secretary of State has created the Kindergarten through Community College Public Education Facilities Bond Act measure, referred to now as Proposition 51.
The “Yes on Proposition 51 Campaign” is educating voters as to what this proposition will be including:
    •    All eligible modernization projects on the acknowledged list;
    •    All eligible new construction projects on the acknowledged list;
    •    Approved Community College projects;
    •    Eligible career technical education facilities as well as eligible charter school facility and;
    •    Provides state matching funds for eligible local school bond funded projects from            2010, 2012,  2014,  2016 and 2018.
For more information, please visit the Californian’s for Quality Schools website at:

California Energy Commission Issues New Prop 39 Guidelines
by Julie Romero
The California Energy Commission has developed the Proposition 39: California Clean Energy Jobs Act – 2013 Program Implementation Guidelines in accordance with Proposition 39 and Senate Bill 73.
Rule changes that were adopted by the Energy Commission on July 13, 2016, will reflect in the 2016 guidelines. For a summary of the changes to the CCEJA, please visit:  http://www.energy.ca.gov/efficiency/proposition39/documents/2016-07-13_Summary_of_Changes.pdf.
For questions regarding changes to the Program Implementation Guidelines, please contact Bob Nicholson at (858)-414-6268 or at bob@ehanda.com.


Level III Fees Update
by Julie Romero
The State Allocation Board (SAB) has determined that state funds for new construction projects are not available. This action has triggered Level III fees, an action opposed by the California Building Industry Association (CBIA). Hours after SAB made their request for application, CBIA filed for a preliminary injunction to stop implementation.
On July 21, 2016, The Honorable Michael Kenny issued a tentative ruling denying the injunction. The court found the SAB stopped approving apportionments for new construction. A hearing was then scheduled for the next day, July 22nd.
The tentative ruling will be final unless one of the parties advises the court that they wish to be heard. To the best of our knowledge no one from CBIA requested a hearing or has challenged the Judge’s decision.
Requirements needed for the imposition of Level III fees are as follows:
  1. Must meet Level II criteria;
  2. State funds for new school facility construction must not be available;
  3. The State Allocation Board must determine the state funds for the new construction are not available;
  4. The State Allocation Board must notify the Secretary of the Senate and the Chief Clerk of the Assembly of its finding.
For updated information on this ruling, please visit: https://www.sscal.com/fiscal_reports.cfm?action=display&contentID=21106 or contact Bob Nicholson at (858)-414-6268 or at bob@ehanda.com. 

School Facilities and Technology Integration
by Julie Romero
Studies have shown the use of technology can result in improved learning for K-12 education. Students use of technology promotes development of twenty-first century skills such as communication, collaboration and critical thinking. Technology tools can also help teachers serve as facilitators, enabling them to focus on meeting the needs of individual students who have different types of learning styles.
Where there was once centralized computer labs in schools, now there are students with hand held devices and tablets who are able to access wireless networks and the internet anywhere and at any time. Infrastructure improvements will allow for future upgrades as the use of classroom technology increases over time.

For more information on the growing integration of classroom technology, please visit:

http://www.cde.ca.gov/ls/et/rd/  or contact CDE, School Facilities and Transportation Services Division at 916-322-2470.


SAB Update
The State Allocation Board (SAB) last met on May 25, 2016. There was no meeting in either June or July. The Board met on August 17 and discussed the approvals of the Seismic Mitigation Projects:
  1. Buena Park (Funding Approval) – Provides an unfunded approval of $667,915 to Gordon Beatty Elementary (Consent)
  2. West contra Costa Unified (Funding Approval) – Provides an unfunded approval of $2,740,128 to Pinole Valley High.

As of August 17, the remaining balance of the bond authority available for Seismic Mitigation Program projects is $80.2 million. That amount does not take into account projects currently being reviewed.

Priority Funding Request Period
 
School districts and charter schools with projects on the Unfunded List (Lack of AB 55 Loans) may submit requests to qualify for future priority funding apportionments.
Priority Funding is currently in Round 11: Effective July 1, 2016 through December 31, 2016.
On February 24, 2016, the Board approved $81.7 million in priority funding apportionments for 31 projects representing 20 school districts. Of these projects, 27 received a fund release, totaling $79.3 million. As of August 17th, the OPSC has not received a valid Form SAB 50-05 for the remaining 4 projects, in the amount of $2.47 million.
     CASH Update
CASH held their monthly meeting on August 17th.   To view a video of the July 27th board meeting, please visit:https://www.youtube.com/watch?v=cxo_61b1oCg&feature=youtu.be 
Please visit the web sites for SAB and CASH for information on upcoming meetings and the status of funding.
For additional information on this article, please contact Bob Nicholson at (858)-414-6268 or at bob@ehanda.com.


We are pleased and honored to serve California school districts and county offices of education and provide services, support and guidance necessary for success.

 

All the best,

 

Eric Hall, President

Eric Hall & Associates

cell  (760) 519-8531

eric@EHandA.com