Board Meeting of March 17, 2017
TO: Board of Education
FROM: Randall Booker, Superintendent
SUBJECT: REIMBURSEMENT OF PERMISSIBLE DISTRICT FUND EXPENDITURES FOR MEASURE H1 BOND PROGRAM OPERATIONS, SERVICES AND CAPITAL IMPROVEMENTS
I. SUPPORT INFORMATION
Prior to the passage of Measure H1, the Board of Education approved a limited number of capital projects during the summer of 2016 at Piedmont Middle School to be completed in time for the start of the 2016-17 school year. Most of the work focused on the Facilities Steering Committee’s recommendation to improve existing PMS classrooms by providing more learning space and reduce noise transfers among classrooms. The classroom improvements were to be made to the greatest extent practicable given requirements imposed by the Division of the State Architect. The critical issue was whether a number of deficiencies in the existing “library wing” classrooms could be addressed prior to the sale of Measure H1 bonds, and then later reimbursed once the first bonds were issued (as scheduled) for April of 2017.
According PUSD Bond Counsel Bill Kadi (of Jones Hall), the text of the Measure H1 ballot includes the renovation and refurbishment of Piedmont Middle School buildings and thus, expenditures fall under that category. Federal tax law allows bond funds to reimburse school districts for construction expenses, though school districts are normally required to adopt a “reimbursement resolution” to do this. However, because the Board of Education passed the Measure H1 Bond Program resolution on June 22, 2016, all qualifying bond expenditures since that resolution (and including expenditures up to 60 days prior) are allowable. Thus, the summer work is permissible for reimbursement.
To complete the work, the District paid for services, operations, and materials for PMS project from three different funds: the General Fund (01), Deferred Maintenance (14), and the State School Facilities Fund (35). A detailed spreadsheet of actual expenditures to be reimbursed from the Building Fund (21) is attached for review. A quick summary is as follows:
- – General Fund (01): $2,017 (for electrical work)
- – Deferred Maintenance (14): $65,197 (structural engineering, hygienist services, inspection/testing services, carpeting)
- – State School Facilities Fund (35): $107,130 (wall/ceiling construction, painting)
II. RECOMMENDATION: REVIEW AND DISCUSSION
Approve reimbursement of $174,344.48 in permissible expenditures from Measure H1 Bond proceeds to the General Fund, Deferred Maintenance Fund, and State Schools Facility Fund.