June 2016 Hall Monitor

Lease-Leaseback Challenge Continues

There has been an ongoing debate on the validity of lease-leaseback agreements (Education Code Section (E.C.) 17406). The lease-leaseback law allows the school district to charge rent while in construction and while holding on to the title of the leased property.

In the June 2015 ruling, Davis v. Fresno Unified School District, the court found that there must be three items present for a lease-leaseback agreement to take place:
Leases must be genuine
Leases must include a financing component
And occupancy of the facilities by the local education agency (LEA).
However, the latest decision (April 12, 2016) McGee v. Balfour Beatty Construction, LLC, the court rejected the Davis ruling, saying it is invalid since the law states the only requirements are that the school district owns the land and that it leases the premises for the purpose of construction, and the title vest in the school district at the end of the school term.

By Amy Morton

For further information on Lease-Leaseback, please go to: http://cashfacilitiesnews.org/summary-and-briefing-davis-v-fresno-appellate-court-decision-on-the-lease-leaseback-provisions-of-the-education-code/ or contact Bob Nicholson at 858-414-6268 or at bob@ehanda.com.
Governor Releases 2016-17 May Revision

On May 13th, Governor Brown released his 2016-17 budget revision. EH&A appreciates the governor’s determination to bridge facility hardship projects for the school districts facing imminent and critical health and safety issues.

By Julie Romero

To view CASH’s entire analysis of the Governor’s May Revised Budget, please visit:

For additional information on this article, please contact Bob Nicholson at (858)-414-6268 or bob@ehanda.com.
Safe Schools Foster Improved Student Learning

Current research shows the meaning of safe schools involves three areas school facilities planning groups should consider:
Potential physical hazards
Environmental conditions of the area and the building
Crime/violence prevention
The California Department of Education has created tools to help districts review possible safety issues. A few of the listed items are:

1. Health and safety requirements
2. Potable water, fire safety and adequate lavatories
3. Security systems, and traffic safety concerns

By Julie Romero

To read the article in its entirety, please visit School Site Selection and Approval Guide.
For additional information on school safety issues, please contact Bob Nicholson at (858)-414-6268 or bob@ehanda.com.

Lieutenant Governor Endorses School Facilities Bond Act of 2016

Californians for Quality Schools announced on June 2 that Lieutenant Governor, Gavin Newsom has endorsed the Kindergarten Through Community College Public Education Facilities Bond Act of 2016, due to appear on the November ballot. http://www.californiansforqualityschools.com/lieutenant-governor-gavin-newsom-endorses-school-facilities-bond-act-2016/

This measure is a $9 billion dollar bond that will help alleviate overcrowded classrooms and ensure
facilities are meeting mandatory health and safety standards. California last passed a statewide school facilities bond in 2006. In addition to the Lieutenant Governor’s endorsement, support was also pledged for the Facilities Bond during June’s California Democratic convention. To see the full list of supported measures, please visit: http://www.cadem.org/our-party/body/CADEM-Summer-E-Board-Packet-6-19-16.pdf

By Julie Romero

For more information on the Kindergarten through Community College Public Education Facilities Bond Act of 2016, please contact Bob Nicholson at 858-414-6268 or at bob@ehanda.com.
Community Investment: Nebraska Loves Public Schools-An Idea for California Schools

To counter the national narrative that our public schools are failing, the Sherwood Foundation of Nebraska, started the ‘Nebraska Loves Public Schools’ (NLPS) as a documentary film project to showcase the incredible works public schools are doing in communities across Nebraska. With over hundreds of interviews ranging from principals to students, their passion for seeking out and sharing stories and highlighting the successes of public schools in their state, helps to bring to the forefront the challenging issues today’s students face.

By Julie Romero

For more information on NLPS, please visit: http://nelovesps.org/

For more information on this article, please contact Bob Nicholson at 858-414-6268 or bob@ehanda.com
SAB Update

The State Allocation Board (SAB) met on May 25, 2016

The minutes from the April 20, were approved unanimously. Click here to view the entire agenda.

Lisa Silverman provided updates on the following:

Current Priority Funding Filing Round: Current Priority Funding Filing Round: The current priority funding filing round opened on May 11, 2016 and will close on June 9, 2016.

Seismic Mitigation Program Update: There is one item on the consent calendar to provide an unfunded approval for a Seismic Mitigation Program rehabilitation project in the amount of $859,181.

Fund Releases for Priority Funding Apportionments:
On February 24, 2016, the Board approved $81.7 million in priority funding apportionments for 31 projects representing 20 school districts.

Fund Releases for Priority Funding Apportionments:
The SAB provided apportionments to Career Technical Education Facility Program (CTEFP) projects in April and September 2015.

The Consent Agenda was approved unanimously. Items included, but limited to, were:

Unfunded Approvals:
The Board approved eight projects worth $20,888,507.60 within existing bond authority:

Additional Grant for General Site Development:
The Board approved regulations adopting a one-year extension to the General Site Development Grant. The regulations authorizing the General Site Development Grant were set to expire on January 1, 2017; this action authorizes the grant until January 1, 2018.

Repeal of the State Deferred Maintenance Program Regulations:
The Board approved the repeal of State Deferred Maintenance Program regulations and forms. This action supersedes the Board’s April 2015 action approving the regulations as inoperative.

Emergency Repair Program Grant Adjustments:
The Board approved Emergency Repair Program apportionments for 32 applications worth $5,750,059. OPSC has received $9.8 million in savings from previously funded projects.

Facility Hardship/Rehabilitation Program:
The Board approved two Facility Hardship Rehabilitation projects for placement on the Unfunded List (Lack of AB 55 Loans), including one Seismic Mitigation Program Rehabilitation project.

Financial Reports:

The following bond authority balances account for Unfunded Approvals made at the May 25, 2016 meeting:

SFP Program
Prop 1D
Prop 55
Prop 47
New Construction $0.6 million $1.3 million $0.2 Million
Seismic Repair $85.2 million — —
Overcrowding Relief $ 6.6 million — —
Modernization $9.6 million $0.0 $0.0
Career Technical $6.6 million — —
High Performance $ 0.0 — —
Charter School $32.6 million $3.8 million $4.3 million

CASH Update

The May CASH Monthly meeting was held on May 25th.

Please visit the web sites for SAB and CASH for information on upcoming meetings and status of funds.

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