Citizens Bond Oversight Committee Regular Meeting

Transcription

1 LOS ANGELES UNIFIED SCHOOL DISTRICT SCHOOL CONSTRUCTION BOND CITIZENS OVERSIGHT COMMITTEE Robert García, Chair Planning and Conservation League Constance Rice, Vice Chair L.A. City Controller Scott Folsom, Executive Committee Tenth District PTSA Joseph P. Buchman Legal Counsel Burke, Williams & Sorensen, LLP Thomas A. Rubin Oversight Committee Consultant Guillermo Aguilar American Institute of Architects, LA Rupert Grant L.A. Area Chamber of Commerce John Hakel Associated General Contractors of California Lynda Levitan Thirty-First District PTSA Anastacio Medina American Lung Association Tyler McCauley County of Los Angeles (Vacant) LAUSD Student Parent Edwin Ramirez LAUSD Student Parent (Vacant) L.A. Mayor s Office Richard Slawson L.A. Co. Federation of Labor, AFL-CIO (Vacant) California Taxpayers Association Betty Valles AARP Legislative Team Citizens Regular Meeting LAUSD Headquarters 10:00 a.m. Minutes Committee Members Present: R. Garcia, S. Folsom, J. Hakel, R. Grant, G. Aguilar, L. Levitan, C. Rice, B Valles Committee Members Absent: E. Ramirez, R. Slawson, T. McCauley, A. Medina CALL TO ORDER (Agenda Item #1) Mr. García called the meeting to order at 10:15 a.m. Master Planning and Demographic Process Improvements (Agenda Item #13) Guy Mehula, (Deputy Chief Facilities Executive, New Construction), presented the demographic analysis process. As planning numbers are assembled and needs are assessed, this information will be the basis of Measure R and seats needed. Criteria being used to update the demographic process in the planning criteria: Need is based on pre-2002 class loading standards Enrollment Data (latest set) Full Day Kindergarten

2 Page 2 The original 205,000-seat need was based on class loading in pre-1991 class loading sizes. Measure K, R and Prop BB will build 262,000 seats. The change in enrollment last September was about 12, 800 district-wide. Full-day kindergarten added about 16,000 seats. Factors effecting seats: Increase of test scores and retention would add approximately 20,000 more students, potential gain from new charters, and the potential of private schools coming back to the public system. The Enrollment Committee analyzes the data and decides how to proceed. Budget services needs ADA estimate, School Management services (operations, calendars, interim housing), Master Planning and demographics (long-term enrollment projections). Recommendations from an outside study (conducted by Data Trends): Establish a technical advisory committee, expand documentation, report regularly add additional staff. Application of policy complicates the demographic determination in school capacity while taking consideration for future growth and school configuration. Some schools have seats that are capped less than the facility s capacity. Enrollment: historic resident area enrollment, can calculate matriculation patterns from feeder schools. Kindergarten enrollment is compared to County birth rate for a geographic area. (Mr. García noted that Mr. Grant arrived at 10:30 and a quorum had been reached.) Ms. Rice asked if the District s policy is to assume a 50% dropout rate. Mr. Mehula noted that the retention rate has not been changed. Ms. Rice noted that there is a 75% dropout rate in certain areas of the district. Mr. Mehula noted that full-day Kindergarten enrollment, a policy decision, would affect demographic statistics. Magnet and charter schools are removed from the local need. Private school enrollment is not included. Mr. Folsom asked if the birth rate assumption for kindergarten is accurate. Mr. Mehula noted that data comparisons give a good trend. Rena Perez noted that the birth rate is used as a point for comparison and noted that it may change over time. It remains, however, a strong indicator of student population. Mr. Folsom asked if full-day kindergarten has been factored into the demographic process. Ms. Perez noted that is it done on a school-by-school basis. Mr. Folsom asked for clarification on special education classrooms. Mr. Mehula noted that a school of 1,000 would have 6 rooms set aside for special education needs. Ms. Perez noted that smaller rooms would not be counted as a part of that mix. A more detailed study is being done to be certain that this policy will address the needs of special education space. 2

3 Page 3 Mr. García asked how often the technical advisory committee meets, what are their tasks, and will this committee do a report on the Data Trend 2003 report. Mr. Mehula noted that the committee meets on a quarterly basis in addition to meeting with Rena Perez and her staff. Mr. Mehula stated that after a six-month period it would be appropriate to have a report with recommendations. The committee is not compensated. Mr. García requested that Mr. Camacho calendar these reports for October 2004 and April 2005 and the Futures Subcommittee will put this into their master calendar. Mr. Aguilar asked if demographic data is on a GIS- grid for electronic location and the frequency that is updated. Ms. Perez noted that it is geo-coded for further analysis in boundary planning. Tabulated data is also reviewed. Student data records are annually geo-coded. Mr. García invited public comment on this agenda item. Ruth Sarnoff noted that data must be accurate and inclusive and analysis of this data should be available to the BOC and the public. Amendment to Add 7 charter schools (Agenda Item #16) Mr. Mehula presented a resolution that would include 7 new charter schools in Measure K. This proposal will provide 2,710 seats over the next couple of years in the most crowded areas of the district. Mr. García read the resolution. Noting no public comment the resolution was moved, seconded as PASSED as follows: Yes 8 No 0 Abstain 0 Absent 4 Future Sub Committee Report (Agenda Item #5) John Hakel addressed the role of members, the role of the chair, subcommittees and staff. Mr. Hakel presented, in summary form, recommendations to move some monthly work to sub committee and task force. Subcommittee and task force should conduct the review and oversight process and that most of routine non-exceptional business be conducted as consent calendar. Mr. Hakel recommended the addition of two new staff members. BOC Staffing Resolution (Agenda item #12) Mr. Hakel read the resolution adding two staff members. Mr. García invited public comment on this agenda item. 3

4 Page 4 Ruth Sarnoff asked if the Inspector General is reviewing contracts. Mr. Rubin noted that the Inspector General has not audited contracts. Mr. García noted that Jose Huizar and Superintendent Romer are both supportive of this resolution. The resolution was moved and seconded. The resolution PASSED as follows: Yes 8 No 0 Abstain 0 Absent: 4 Renewal of Contracts (Agenda Item 11) Mr. Hakel read the resolution to renew contracts for legal counsel and consulting services. Garcia noted neither public comments nor committee discussion. Mr. Folsom suggested adding an amendment to the resolution stating that the contracts be audited by the Inspector General. Mr. García called for vote on an amendment to have the contracts audited. The amendment FAILED as follows: Yes 2 No 5 Abstain 1 Absent 4 Mr. Garcia called for a vote on the resolution. The resolution PASSED as follows: Yes 8 No 0 Abstain 0 Absent 4 Mr. García invited Superintendent Romer to address the Committee on Agenda Items 15 and 16 new construction and modernization. Mr. Romer addressed the overall budget process and its influence on bond dollars. Certain items will be presented before the BOC for approval in the future. Mr. Romer stated the importance of bond funds being spent in an authorized fashion with oversight from the. 4

5 Page 5 Mr. Romer stated that some recommendations may not be achievable, but all proposed budget cuts are necessary and an analysis is being done to determine if any general funds can be properly, and legally, funded by bond dollars. Mr. Romer noted that $30-60 million in interest may be realized on the length of the bond Measure R Ken Gotsch (Chief Financial Officer) summarized how interest from bond funds are allocated. BB has generated approx $120 million to date. Measure K has generated $7 million. Kevin Reed (General Counsel) summarized the plan and expectations of the issuances will be tapped with a three-year period, as required by law. Mr. Romer presented a memo, from Ken Gotsch, detailing the $8.8 million reduction budget strategies that may involve measure R bond funds. Kevin Reed highlighted the bond language that allows the use of bond funds to build, furnish and equip new schools and the $8.8 million is for furnishing and equipment. Kevin Reed stated that the Superintendent s address was to agenda item 15 and 16 and is intended to fully apprise the of any plans to utilize bond funds. Mr. Reed mentioned an October 2002 memo by Jim McConnell which addressed appropriate bond-chargeable items. A separate Strategic Execution Plan for debt relief will be presented to the on May 19. Mr. García noted that Joseph Buchman, legal counsel to the, has been engaged in conversations with Mr. Reed and has further briefed Ms. Rice and Mr. Folsom. Ms. Rice asked how Mr. Romer will approach the reclaiming of legitimate bond costs. Ms. Rice stated details of this plan must be audited to insure that bond funds are being used legally. Ms. Rice requested a timeframe. Mr. Romer noted that any approach would be contingent upon an execution plan, which will safeguard bond funds. If the Board of Education agrees to pursue this plan, Mr. Romer would present a strategic execution plan to the. Mr. Hakel asked if an outside independent law firm was consulted. Mr. Reed cited the October 2002 memo that was fashioned under the guidance of outside Bond Counsel Sidley, Austin, Brown and Wood. Mr. García appointed a task force, headed by Ms. Rice, who along with Mr. Grant and Mr. Folsom will inform the of developments and evaluate the proposals to use bond funds as outlined by Mr. Romer. Mr. Folsom asked if the Board of Education would be approving an approach or specific items. Mr. Romer noted that the Board of Education s approval of a strategic execution plan is contingent upon the approval of the. 5

6 Page 6 Mr. Aguilar asked how positions would be identified to charge to bond dollars specifically positions in health and safety versus facilities positions. Mr. Romer noted that administration positions could not be charged to the bond. However, specific work on a specific project can be charged. Mr. McConnell noted that any positions captured with bond funds must be included in an execution plan for Committee approval. Ms. Rice requested an update from Mr. Gotsch or Mr. Buresh regarding the investment strategy. Mr. Buresh noted that there is a formal debt policy that includes appropriate investment grade areas. Ms. Levitan asked if rising costs of materials is taken into consideration. Mr. Romer stated that the district is working with Mr. McConnell to keep abreast of increasing costs including steel. Monthly Program status Report new construction (Agenda Item # 14) Mr. Mehula presented the monthly report. New construction represents 243 projects for both phase I and II. 52 projects are pending on design. 97 projects are under construction showing the actual dollar amount for each project. There is a.57% change order rate. $1.4 million in change orders reflect the small learning community effort and full day kindergarten. Phase II target dates were presented: August deadline for state approval sites for each project that funds have been reserved from last year. Community meetings continue to get preferred sites selected with community feedback. In July, all Measure R projects and reserve state funds for these projects will be presented to the State. General cost escalations continue, particularly steel prices ½ % increase on remaining projects. Bid increases are at about a 9-10 % increase. Also real estate prices have increased over 20%. Mr. Hakel noted that although steel costs may peak in July, producers have placed a surcharge that will likely remain in place keeping prices high for several months. Mr. Mehula noted two projects coming up in the next few months: Vista Hermosa Project and Ambassador Hotel site. Mr. Folsom asked if full-day kindergarten implementation would affect change orders if these change orders would come out of measure R funds. Mr. Mehula stated that this is not an automatic process. $100 Million has been set aside for full-day kindergarten implementation district-wide. This amount, however, may not be sufficient and the planning team is looking at that situation. Mr. Grant asked how the procedure of getting approvable sites is progressing. Mr. Mehula noted that community meetings continue on a timely basis. 6

7 Page 7 Mr. Aguilar asked if alternative methods of construction and bulk purchasing have been considered to save additional funds and if state-approved design projects over $10 million are taken into consideration. Mr. Mehula stated that design is considered as it relates to the Education Code. Facilities do look at advance purchasing practices and will present this to the industry in order to get more favorable pricing for contractors. Mr. McConnell noted that no sector of public construction industry has been able to determine how to make the State design building law work. Ms. Rice questioned the discrepancy between the low bid and actual bid. Mr. Mehula noted that bids are evaluated on their merit -- best value given the current bid climate. Ms. Rice asked about the imminent domain process -- if the community knows of the district s intentions prior to sending letters and if city counsel people involved. Mr. McConnell cited the Granada Hills Hospital property and how it became available through Bankruptcy Court. LAUSD competed to purchase this property. But alternate sites to this property need to be identified in order to submit to the state for funding and not violate CEQA. This involves the obligation to notify homeowners in these areas. Mr. Mehula added that community meetings are usually held prior to sending letters and the community is asked for alternative site possibilities. City counsel and community leaders are involved. Health and Human Services Student Health Report (Agenda Item # 6) Maria Reza, Assist Superintendent of Student Health and Human services Ms. Reza presented an overview to childhood obesity and diabetes. The occurrence of overweight children has skyrocketed and is now at epidemic proportions. The rate of obesity is increasing. The percentage of unfit children in LAUSD is measured at the 5 th, 7 th and 9 th grade level. LAUSD is home to the most unfit and obese children in the state. There is a relationship between fitness and reading/math scores at every grade level. LAUSD is looking at this problem holistically using coordinated school health model that uses 8 different components including family/community involvement and partnerships and television (KABC) Personal Services Announcements. Adequate space and facilities for proper physical activity and nutrition as well and funding and competing priorities on school campuses remain a challenge. Mr. García set up a task force. Ms. Levitan will work with Mr. Garcia to focus on construction requirements for sufficient physical activity space. Monthly Program Status Report Modernization (Agenda Item # 15) Mr. Delker, Acting Deputy Chief for Existing Facilities, noted that program reviews for each district were held in March. In March, more projects were started than any other month in the last two years: $181 Million. Mr. Delker noted the cooperation of the 11 local districts. There is a focus on safety and technology as it is the 7

8 Page 8 biggest dollar value. 75% are either completed or under construction the remainder are close to award. Steel prices continue to rise, reinforcement steel is up 23% in the first quarter of Plywood has shown a15% increase. Evaluation of these increase continue to assess the impact it will have. Preliminary planning has started for Measure R. Annual Update to the Strategic Execution Plan will be presented in June. Change order rate will be presented to the in May. Ms. Rice asked for clarification on the number of projects, under BB, that are completed. Mr. Delker stated that nearly 10,000 of the 12, 000 are either completed or under construction. Public Comments on agenda item #15: Gene Krischer reiterated the district s operational budget and its relationship to bond expenditures and sustainability of that budget, the transfer of bond funds to general funds, and computer modeling that will show cost savings. Ruth Sarnoff noted that the public should be notified of any transfer of funds and that that structural problems in personnel costs have escalated. Ms. Sarnoff presented a spreadsheet on a floppy disk. Public Comments on agenda Item #17: Ken Bernstein, Director of Preservation Issues Los Angeles Conservancy, noted that the issues with Ambassador are complex and the Conservancy has identified over $54 million in costs savings and hope the BOC will work with all parties to respect the history of the site and meet the needs of children in the area. Mr. Pizarro stated that the use of a historic site would add to the educational value. Mr. Pizarro noted that there is a broad coalition in the community and city that supports the Ambassador maximum reuse option. Mr. Krischer supports, at a minimum, a fair hearing regarding maximum reuse of Ambassador Ms. Sarnoff noted the need to look at a larger picture as it relates to budget cuts. Consent Item (Agenda Item # 2) Mr. García invited members comment on the consent item approval of the Minutes from the April meeting. A vote was called and PASSED as follows: Yes 7 Abstain: 1 The meeting adjourned at 1:20 p.m. 8