Pleasanton Unified School District trustees are set to discuss entering into a $23.5 million sales agreement to acquire the Arroyo Center in Hacienda Business Park to become the new home of the district headquarters.
The packed agenda for Thursday evening’s regular board meeting also features a proposed three-year agreement with the teachers union that would include a 3.25% salary increase for the 2022-23 academic year.
District leaders have been in negotiations with the Arroyo Center property owners for the past several months and the board has been updated about it in closed session, according to district staff. The proposal would see PUSD acquire the property through debt-financing, with the goal of recouping those funds through the sale of part of the current district headquarters on Bernal Avenue.
The Arroyo Center is located at 5758 and 5794 W. Las Positas Blvd. in Hacienda Business Park. It includes two buildings and stretches across 6.69 acres of land with approximately 113,000 square feet of facility space — the available area is 67,113 square feet, with 37,628 square feet currently rented.
The financing contingency period under the proposed sales agreement is for 75 days, with a 10-day extension possible, to secure a certificate of participation (COP), which is the borrowing means PUSD would use to fund the purchase. A $200,000 deposit would be non-refundable once the physical and financing contingency are removed.
Besides the financing contingency period an additional 75-day physical contingency period with due diligence is in play with a closing period of 25 days from the removal of the physical and financial contingency period, according to district staff. A broker fee of 1.5% of sale price to be paid by the seller, and the district will cover the title and escrow costs, documentation and other transfer taxes to be paid by the seller.
Following the purchase, the district plans to place about 7 acres of the district offices and Village High School property on the market for sale, likely to draw interest from residential developers. The property is estimated to be worth between $31 million and $34 million, district staff said.
Funds from the sale are proposed to be used to pay off all or part of the COP loan. The district plans to utilize the revenues from the rent from the leased portion of the Arroyo Center to pay the annual COP payments.
Staff suggest that all district functions including office spaces like the superintendent’s office, business services, student support, teaching, learning and human resources move to the Arroyo Center.
Other operations that will also relocate to the available space in the office building include the boardroom, training and adult classroom spaces, adult education and CTE program, graphics, technology, maintenance and warehouse, special education and Tri-Valley Special Education Local Plan area.
The goals for this proposal is to strengthen intervention and support structures to effectively improve the physical, mental and social wellness of students, families and staff, along with the goal to sustain effective customer service, communication, and stakeholder engagement, according to district staff.
The PUSD board’s open-session meeting is scheduled to start at 6 pm Thursday (May 12). Read the full agenda here.
In other business
* Also being discussed is a possible action on a collective bargaining agreement between PUSD and Association of Pleasanton Teachers for 2022-23 to 2024-25.
The district has reached a tentative agreement with APT that includes a 3.25% salary increase for fiscal year 2022-23 effective July 1.
Also effective from July 1 is the district’s offer to increase contribution to unit member CalPERS health benefits — a maximum of $5,000 including all CalPERS-required contributions.
For next fiscal year, the district proposes a cash-in-lieu contribution of $1,500 for any member not participating in the CalPERS Health Benefits program prorated by FTE, hire date, termination date and date of election of benefits.
The district proposes an annual cash-in-lieu contribution of $,2000 for any member not participating in the CalPERS Health Benefits program prorated by FTE, hire date, termination date, and date of election of benefits effective July 1, 2023.
The estimated annual cost of the 3.25% raise is $3,261,460.
* A discussion and possible action on the tentative agreement with the Classified School Employees Association and PUSD for the current year regarding a memorandum of understanding on leave of absence and health and welfare benefits.
* A possible action item is the district’s commitment to fiscal solvency where the staff is requesting the board to approve the resolution confirming the district’s commitment to fiscal solvency in case the calculated revenue in the Local Control Funding Formula that is assumed for tentative agreement with APT is not realized in the end.
The LCFF depends on the average daily attendance and per-student funding calculation. To combat the effects of the pandemic, the state has allowed districts to use the 2019-20 ADA for funding purposes for the next two years, but this provision is planned to end with this school year.
Many districts like PUSD are facing low enrollment and ADA, which affects funding from the state. To alleviate this situation Gov. Gavin Newsom proposed using a three-year average (last two fiscal years and current year) to calculate the ADA and be used for funding purposes. This would soften the loss of funding over several years and provide the district time to either recuperate enrollment or adjust expenditures and staffing, according to district staff.
The financial impacts for this motion could be an additional reduction of $4.2 million starting fiscal year 2023-24.
* Discussion with possible action on the adoption of a declaration of need for fully qualified educators.
School districts are required to annually submit a declaration to the Commission on teacher credentialing including the titles of emergency permits the District anticipates and the efforts made to recruit certificated individuals with the aim to certify, assign, and develop fully qualified individuals.
It also requires verification to show that the declaration of need was adopted by the Board of Trustees at a regularly scheduled public meeting. The goal is to promote a professional culture that values collaboration and supports efforts to recruit, develop and retain a diverse and highly qualified workforce.
* First reading and discussion on world language curriculum adoption for next year. The current adopted world language materials were published before 2006 and will become obsolete after the 2021-22 school year.
The administration recommends that the Board of Trustees receives the update on the curriculum pilot process to adopt a new world language curriculum. The financial impact will be shared at the second reading with recommendation of curriculum for recommended motion adoption.
The goal is to leverage personalized learning strategies and growth-based assessments to increase achievement and identify opportunity gaps, staff say.
* A discussion on the CTE and the Tri-Valley Regional Occupational Program will be discussed and presented with an overview of the district’s CTE programs as well as a report from the Tri-Valley ROP.
The objective is to continue to support the expansion and enhancement of the CTE offerings and career exposure through a variety of classes and events as supported by the Adult and Career Education Department, and in partnership with the Tri-Valley ROP, according to district staff.
* A first reading about authorizing the issuance and sale not exceeding $74,355,000 aggregate principal amount of bonds of PUSD, by a negotiated sale, prescribing the terms of the sale, approving the form of and authorizing the execution and delivery of a bond purchase agreement and a continuing disclosure certificate, approving the form of an official statement for the bonds, and authorizing the execution of necessary documents and certificates and related actions.
A discussion and possible action on the agreement with Golden Bay Fence Plus Iron Works Inc. for staff parking lot and ball field fence at Foothill High School.
The objective of the fencing projects is to secure student safety during school hours and to allow the use of the sites and various facilities by the community after school hours. Each school has varying levels of existing site security, some schools require more fencing features than others to achieve similar results and budgets will vary accordingly.
It will cost $755,808.90.
* Another discussion and possible action on a resolution to establish a Student Activity Special Revenue Fund for the associated student body, which needs to be established as a new special revenue fund.
The administration recommends that the Trustees approve this resolution to establish a student activity special revenue fund for the associated student body. It will have no financial impact and the goal is to sustain effective customer service, communication and stakeholder engagement.
* The last item is a discussion about the governance workshop held by the board and superintendent that will review the progress on trustee objectives in the 2021-22 organizational work plan, provide status and summary statements for each goal and provide input to goals for the 2022 -23 organizational work plan.
The administration recommends that the Board of Trustees review and discuss the material presented. The goal is to leverage personalized learning strategies and growth-based assessments to increase achievement and identify opportunity gaps.
Furthermore, understanding the systemic barriers to equity and inclusion in order to work strategically to deconstruct them and thirdly to promote a professional culture that values collaboration and supports efforts to recruit, develop and retain a diverse and highly qualified workforce, according to staff.