001Okay, welcome. Call to order. I will call the Paris Union High School District special board meeting to order at 2:02 p.m. 3.1 Pledge of Allegiance. Please stand for the Pledge allegiance. Place your right hand over your heart. Ready? Begin. I pledge algiance to the flag of the United States of America and to the republic for which it stands. One nation under God, indivisible, with liberty and justice for all. Thank you. Okay, I will now take a roll call to establish a quorum. Trusty Annayia here. Thank you. Trusty Stafford um will not be here. No. Okay. He'll be absent. Trustee Hall here. Thank you. Trusty Garcia present. Thank you. And Trusty Compost here. So, we do have a quorum. 4.1 Invitation to address the board of trustees on agenda items. Are there any public comments? I
002don't know public comments. Thank you so much. 5.1 Study session. The board of trustees will hold a study session on property analysis followup. So Serene from Orbacup and Henderson will do a presentation. Hello and welcome again Serene. Good afternoon board members, uh, cabinet and community. Thank you for having me today. Okay. I think you um so as you all recall in January uh I gave a presentation on asset management options and opportunities for K12 school districts. Um since that time we've had a chance to work through and do some reviews of the district own properties. And so we're calling this the June update. Um, and what I hope to do today is review a little bit about uh the asset management study findings uh that were made with a focus on two properties that showed
003some interesting results and then a refresher on options and opportunities available to to the school district. So, if you recall the last presentation, we reviewed surplus property disposition options and alternatives to the surplus process. So, today we'll refresh uh the board's reflection on some of that and then of course open it up to questions. Any questions on that before I begin? Okay. Um here's just a summary of the disposition options we reviewed back in January. This is of course a shorthand version. We had a lot of detail and you'll see more detail through the rest of the slides, but what we call surplus property or under a surplus umbrella. Uh the district would have to proceed under those statutes in order to sell property and to long-term lease for up to 99 years. The interesting
004thing is that there are opportunities to enter into long-term leases under the alternatives to surplus, but important to note that for the district to sell, it absolutely has to comply with the surplus statute. So, we'll we'll go over that again just to refresh everyone on that. The alternatives to surplus primarily cover uh how to procure short-term leases, long-term leases, what we'll call joint ventures, and then of course the exchange process. Employee housing is also considered an alternative to surplus, meaning you don't have to go through a 7-Eleven committee process and engage in the surplus procedures to consider and and approve an employee housing project. But that typically we'll cover as a separate presentation just because it is pretty involved in what's required. Um and we can come back with that information. So, one of the
005things that was of note in the asset management study and review of the district properties that we conducted since the last meeting is it appears at least on the records that the school district uh rather than the the city of Paris owns um Panther Park. So, you see there some information relating to that site. It's approximately 5.52 acres and we've highlighted it there in yellow. Again, jurisdiction within the city of Paris. It does have a multifamily residential zone to it. Uh what they call MFR14 and its surrounding uses are residential to the north, west, south, and east. Another interesting item that came about or an interesting uh information that came about as a result of the asset management study is that at least according to property records that were available publicly, the district is still
006identified as the owner for Vista Verde Middle School, which is of course within uh Valerde Unified School District boundaries. Um, just you see some property information about that. So, I'll go through it, but then I'll I'll provide a little bit of background on what's occurred since these discoveries were made. Don't go put up for sale sign. I tried to do Yeah. Um, we just want I wanted to bring the update because it is something that we found, but of course, working with the district team, we're working through how to how to uh address that. So, approximately 20.06 acres, jurisdiction, city of Mareno Valley. Uh you see there the zoning is Mareno Valley Ranch specific plan and again surrounding uses residences to the northwest, south and east. Of course these were very interesting to explore further.
007So working hand inand with Candace we've been working through okay what is the background? How did we get here? Um and without getting into all of the detail we have a summary page here. Um, and sorry if some of the some of the uh font is a little bit small there, but for Panther Park, again, just reviewing that for the asset management study and the public records that were available, it appeared that the district owns it. Um, in 2003, the district Wait, wait, Paris Union. Okay, just making clear because I see VBUSD up there as well. Yeah. Um, exactly. So that all the Valverde Unified uh goes to the Vista Verde Middle School. So, for Panther Park, thank you for that. Um, and for helping me clarify that, um, referring to this district, Paris Union
008High School District. Um, in 2003, the district granted an easement to the city of Paris for public street and highway purposes, but it wasn't for a fee interest ownership in the property. And as you know, in order for an easement to be granted, the granting entity has to own the property in order to grant that property right to the easement holder. Um, so, uh, in order to confirm what's occurred through time, because of course, and Candace, I don't know if you wanted to add some detail now on on some of your investigation on this. Panther Park or Panther Park. Oh, okay. Um but just to say that uh we have obtained a proposal to do a chain of title review to understand how we got here. Why is the school district this school district Paris
009Union identified as the owner? Um and I know also on a par to me. Okay. Yeah. That that Candace has has one minute ago uh has uh done some investigation as well. So I'll turn it to her for that. Do you want me to come here or do it just so it goes on the on the record? So, um, so on Panther Park and actually Sochi was a good help here too in going through old district records and this document that Serene mentioned in 2003, the easement that was granted uh to the city uh for highway and different access points there. Zotchi actually found in I guess you could say a mislabeled file, you know, folder um in old superintendent's office, you know, records. We all had to take allergy medicine after, you know, going
010through going through these these files. Um but you know as as you heard us kind of talking offline and online uh they've obtained a proposal and so we would like to review that and then you know depending upon the parameters of it enter into that so that we can do that chain of title so that we could really understand both us and the city and at this point the county records do indicate that we we own it. So I would argue it which will be different when we get to visibility. should be a cost of the district to do that research whereas Mr. Birdie would be a different situation. Is that all you want me to say? Yeah. Do you want me to just stay right here for Mr. Birdie? If you want to give
011it get it start. So is there like a time limit for even though they're talking about an easement for from the city of Paris for the streets? Is there like a time frame this agreement contract whatever it's called the duration period? Is there anything like that for the e or it's just indefinitely? Yeah, for the easement it's indefinite but and and because it's for a public benefit, right? Um but if for the ownership there wouldn't be typically unless there's you know some things we haven't seen but that's exactly why I think it's important to get the chain of title information and do that review and um and so I think just importantly whenever there is this type of discrepancy it's it's good to start with the district's records and just see what the district has
012and I know the district team worked very diligently to see what they had in their both records and archives um and then come up with a plan and move forward from there because of course given the sensitivity of it and thank you. Yeah. So on Vistaverie Middle School, so Serene has and her team have been working on um what they affectionately refer to as a binder, but it's not like if it were printed out, it might be several volumes, would you say? Um, so it's all of our property data, but they provided that to me as a draft so that I could take, you know, a first look at it. I've provided some, you know, some comments back. You know, some of those things would just be, you know, how we refer to things here.
013You know, as an example, Choice 2000 Charter School was no longer operable, but it wasn't the same, you know, complex or facility as a CMI, just just one. So, we were just trying to make sure it was, you know, very clean and, you know, ready, you know, to become, you know, a final document. So, as I'm going through there, I'm going this middle school. what the heck? And you know, and she's got all of the documentation there that shows Paris Union High School District as the owner there. And I do remember saying to her on a conference call one time, I said, "When you stood here in what was it, January, and you said, "Dists are always surprised when we do this analysis and they find out they have properties they don't own." In my
014head, hopefully outwardly, I wasn't shaking my head going, "That's not going to happen." Well, and then, you know, here it happened. So um so the next steps that I took um was well first to go to Sochi and Anna to see what the superintendent might have superintendent's office may have back to those dusty old files um in terms of the unification documents. Um another step that I took parallel to that was actually to contact Dr. Fred Good because he's got a lot of facilities history not just in our district but he was the former superintendent of the Balberty school district and man Fred Hector and I can both attest to this that guy has got a memory like no other and so he's telling me and he's like oh no and I don't even remember
015now so that compares my memory CFD number such and such back in 1993 Valverie Elementary was the lead agency for Paris Union was a party to it and that's how Paris Union bought that property but it transferred to Valverie when it became a unified district. Okay, great. That's what we all assumed happened when a unification um takes place. So back to the files you know what can we find um didn't really find anything unfortunately um that helped us. We found a lot of interesting data, a lot of interesting history, you know, about the district and about, you know, back when like Elsomar and Tmacula and Balverie were not unified, but we couldn't find what we were looking for. So, I contacted Garrick Owen, who holds the same position as me in the Balverie School District,
016and that's when I joked and said, "Don't put the for sale sign up yet." Because I told him this. I showed him the data that OHH had pulled. And, you know, he was surprised, you know, by this, too. Um, I contacted Riverside County Office of Education to see what unification documents, you know, they may have because they have oversight for the county committee, uh, school district reorganization or organization of reorganization. Um, and so through that process, um, Garrick and his team actually were able to produce a document that shows the deed was in fact transferred or the title was in fact transferred from Paris Union to Valverie in the year Fred said it happened. Um, and it's got the little, you know, the stamp on it. It says it was was recorded properly, right? But
017it wasn't recorded properly. So, we're working through those steps. So, sitting, we were talking just a few minutes, you may have noticed before the presentation started and Garrick and Serena and I are now looped into one uh email so that we can continue sorting this out. um unless I'm directed otherwise I plan to tell Garrick these are your costs to absorb in terms of otherwise otherwise the records say it's our property so and of course I'll say that in a nice way so that's just that they they've started and I think you you um mentioned this uh Valv has started and contacted our code to start working through some of the transfer process at least so the records reflect the accurate ownership now which of course d unification process as is with Val Verde, but
018it just takes time for that to reflect in the records that are available publicly when we search. So, um we we know that's in process. We searched it right before this meeting. It still does not show them as the owner yet. Does it still show their address though? Now, it does show their part of it changed. Yeah. Um, so waiting for that to occur and of course I think just you know it's a little bit of a process just for the county record system to catch up to what's happening in real time. And I forgot one other piece. I'm sorry to jump back to Panther Park. One of the things that we found that was interesting that I actually found before we engaged serving, you know, to do this after that January um meeting. Um
019Panther Park while the district is listed as the owner, the address is a residential address in Sun City. So that will be an important component to this title history research. I don't have an I don't even have a hypothesis for that. Hopefully the chain of title will clear that up a little. Is there a property tax paid on that or we don't we don't pay property taxes. Are you talking about Panther Park? Are you talking about Well, both of them. We don't pay taxes. Nobody does. Well, not nobody does, but do not. Okay. So, any questions on any of that? I know that's a lot of information. So, basically, it's ours, but not ours. It's theirs. Well, for Vista Verde. Yeah. And then for Panther Park, right? Working through the records to confirm where we
020are. I was hoping we had another middle school, but We just can't operate it because it's out of the area. Yeah. Questions. Okay. So, the rest of the presentation really does go through again and and provides a refresher on what we covered in January. And I think given um you know that we've assembled what the district properties are which of course now we've highlighted the couple that were uh interesting um case studies and came out of that report. Um but just wanted to again refresh the board on what the options and opportunities are and if there are any questions um based on the presentation happy to take those. So um what is typically required and you'll see in the further slides uh when we say post committee recommendation that's referring to a 7-Eleven committee and
021so in order for a school district to surplus property you require uh recommendations from a 7-Eleven committee and that's what we call a Brown Act committee that's formed by the board that holds public meetings and receives receives information of for the sites that are under their purview and it's up to the board to determine which sites they would be reviewing. And then and you'll see in the further slides and then their what their primary role is is to make a recommendation to the board in the form of a recommendation report about is the can the property be deemed surplus? Are there alternative uses that the board should consider? And then of course the board would take action based on the recommendation or not. It's completely up to the board's determination at that point. But in
022order for property to be deemed surplus, um the board has to approve a resolution deeming it so. And then you probably recall from the January presentation, there are a couple uh different steps that kick in. So one is the public offering process where the property is offered to public agencies first. They get a right of first refusal and there's a certain time frame within which they would provide uh and show their either in writing or reaching out directly to the district to express interest in the property. They are not offered the property at less than fair market value. So it is an arms length negotiation just like any other buyer. There are circumstances where if the property is primarily or at least in some portion comprised of recreational property or playfields that you would have
023to analyze it under the Naylor Act and the Naylor Act does have a calculation for less than fair market value and allows recreational agencies to acquire it for less than fair market value. So that is a distinction. But in terms of the regular public agencies that would get notice under that are non-recreational under the ED code, they do not receive a less than fair market value consideration or discount unless that's what the district wanted to consider. Um and then there would be a formal bidding procedure. So, what the formal bidding procedure here contemplates is that the board would receive um offers for the property and what we would call bids in an open session meeting. And there would be a resolution one that provides the community with information about when the board will be receiving
024those offers and um what the procedure will be for that. And then there'll be a second meeting where the bid opening occurs. Um, what we've been seeing more and more these days and what we covered back in January is that many districts are seeking waiverss of either the public offering and public bidding or public bidding procedures because they want more flexibility on how to dispose of their properties. And primarily what the request is in those documents is to um either for the district to be able to put the property out on the open market for sale or lease using a real estate broker or however the district chooses to do that or number two to do a request for qualifications and proposal process to sell or lease the property. So those are options that are
025available. the state board of education would have to approve that and typically the state board of education will provide um what they call conditional approval. So they'll have in that letter what the district has to abide by in order to get this flexibility. So that's just a refresher on surplus. I just wanted to provide a little bit of information on what who is supposed to be represented on a 7-Eleven committee. Similar to the citizens bond oversight committee, there are certain groups that have to be represented. So you have to have one representative from each of the categories you see there including business community, teachers, landowners or renters. Uh you can have up to 11 members sitting on the committee. So once you assign a member that fits each of those categories, then the other ones
026can be at large. And we covered this a little bit already, but the purpose primary purpose of the 7-Eleven committee is prior to the the board being able to take action on surplusing, a recommendation report is is submitted by the 7-Eleven committee. So, their primary task is to receive information from the district team and uh work up that recommendation report for the board and then it's presented to the board. the board receives it and then takes its next steps from there. And then typically what we see is that uh districts hold about four to six meetings per site. Um of course there can be more than one site at a time under a 7-Eleven committee's review. But um just wanted to provide that meeting estimate because we do get that question pretty often. And here
027again we this some of this will look familiar because we did review this in detail at the January meeting but these are the alternatives to surplus. I'm going to breeze through these these slides but this joint use option here is for shorter term leases. So again the district would procure short-term leases uh and allow a leie to lease its space on a short-term basis under these statutes which are the joint use statutes. Importantly, uh there is a public entity exception to the fair market rent uh rule under these statutes, but districts are uh encouraged and under the statutes required to uh pursue fair market rent for uh joint use leases. And of course, you see there at the bottom that prior to entering into the joint use lease agreement, the board must make the three
028findings. and it's primarily focused around if there's a portion of a school site that's being leased that that uh use of the site is not interfering with the regular usage of the school the remainder of the school site. So you see there interfere with educational programs abdul disrupt the residents of the neighborhood or jeopardize the safety of the children in the school joint occupancy. So what we covered under the surplus statutes is there is an opportunity to pursue long-term leasing under the surplus statutes. Outside of that, it would be the joint occupancy statutes that would govern. So under ED code 17515, uh through an RFQP process, the district can um seek developer proposals to develop a site and this can be for uh a public private partnership. That's really I think joint venture is what
029it's it's primarily geared towards. We have done public public private partnerships. So where the school district has teamed up with another public agency to provide both their sites for development with a developer. So there are very many different ways that the you can operate under these statutes. Um the standard here that the district would use for selecting the proposal um at of course after going through a procurement process is that best meets the needs of the district. So unlike let's say with construction uh processes where it would be a low bid or under the surplus sale procedures where it would be the highest price. Here there's a lot of flexibility. It's best meets the needs of the district. So, uh, if there was a recommendation from the district team of which proposal to pursue, the
030resolution and report agenda items would have all of the rationale for why that particular proposal stood out so that the board has the information to make the the selection. And importantly, it does allow for up to a 99-year lease term. fee generating statutes. We covered these uh primarily these are used for billboard projects and I know we talked about that back in January, but just wanted to remind the board that this is also an an option and opportunity for school district sites and procuring leases. And this offers a maximum term of up to 35 years and does require an RFQP process request for qualifications of proposal process. the community recreation act. This is primarily geared towards districts and cities working handinhand on development projects. So for example, if there's a pool project or a performing
031arts center that the school district wants to consider developing with the sister a city sister agency, it could be under these statutes. It does not limit the term of the lease under uh the community recreation act. Um and uh recreation is defined broadly under these statutes. So that's why I gave the example of the performing arts center because recreational you typically think sports related but no it can be beyond that. Even libraries fall within the purview of of that definition. And then lastly the exchange process. Again the district can exchange its property for another property. Where we see this often is, for example, if the district wants a more upgraded warehouse facility or uh transportation yard or something along those lines that's more of an administrative use that it would take time for the district
032to go out and find uh and and work through uh updating its own facilities, both the cost and um just depending on how uh how long ago the district's facilities were built. Um, oftentimes when you do the analysis, the costbenefit analysis, it makes more sense to exchange the district site for another site that's already built for the district's needs. And what can occur in these circumstances, which is very helpful, is if there is a a certain need that the district has and it's getting uh interest from a developer or group that wants to potentially exchange property for district property, the district can work and say, "These are the specs. this is the type of property that we want to exchange into. Can you please go out and find it? Then come back to the table
033and let's let's have a a a fair negotiation of our property for the property that would benefit us. Um and then of course uh both properties would be valued and you would go through the same procedures as if you were purchasing property or selling property. So you would have to do all the due diligence that's required for a purchase and sale transaction. And then lastly, just reminding the board of the use of proceeds that you have the most flexibility with lease revenue. It's uh may be used in any way the board directs. So typically what school districts like to hear is that lease revenue can uh go to the general fund and for those uh types of uses. And then of course for sale, which is under the surplus statutes, that's the most restricted. And
034I'm sure Candace can provide a lot more specific information about that, but typically the shorthand version is that it can only be utilized for capital outlay or for costs of maintenance of school district property as opposed to uh be becoming more general fund and and used more broadly for district uses. I did a follow-up presentation so they have all of that information I think in March. Okay, great. And that is the end. So, I will turn it over to the board for questions. It's pretty straightforward. Yeah, it's clear for me. I'm good. I guess the one and I'm pretty sure I think I know familiar the answer. So, for us in this particular situation, um, does it benefit us to kind of move into some type of action to see what we're going to do
035with Panther Park or do we just is it best maybe just to sit on it and kind of see or I know you guys probably can't give certain type of advice, but I mean just so that we know because we don't know like okay, so we have that now what do we do with it? So typically how we'll proceed if there's surprising information that's discovered through an asset management study is exactly the examples we gave, right? So for the district team to do their leg work to see what you have in your records to compare against what's publicly available. We do really want to dot our eyes and cross our tees and do our due diligence. So I think a really important next step is uh getting the chain of title. Of course we'd have
036to review it. Sometimes there are errors in what the title company provides. So, so we go through that with a fine tooth comb and then depending on what the information shows, bring recommendations for how to either cure it or develop a plan for next steps. And I think it's really going to depend on the information that that we find. So, you guys don't need direction to work on that title. You'll already do that. Uh, yeah. I think just approval from Candace which she's already granted but I think she's looking at the amount of the proposal which was just sent to her. Yeah, I was actually reviewing that way we were sitting here. I sent Garrick's part to him and it's actually really reasonable like $250 per document or something like that. Yeah, he's got that
037in his pocket. I've seen you see I'll let him know. So now um the the the part you mentioned with with like public entities. So let's just say if we at some point wanted to consolidate kind of because we have different offices you know for different departments of within the organization then there's this building that maintains or houses most of them but if if there was um city property that let's say we wanted to consolidate and move into a bigger house everybody under one area that had a bigger you know property. Um, could we then negotiate with like the city to say, "Hey, you know, if they're not using a piece of land to either like make an offer to kind of say, hey, we would like this for this specific use." And then kind
038of in exchange or um I don't know if we could use uh Panther Park as a negotiating, you know, piece of real estate or property. I mean, I'm just kind of my mind's like I I don't even know if like what I'm asking is legal or possible, but just like like you're saying if the city wanted to hold an event, they could use Panther Park like a trade. Well, no, but I'm saying like they could us. Let's just say there's an area somewhere that is not being used by the city. And then kind of like that whole um I guess not the ement thing, but they're not using it. And then we need it for our needs to let's just because if if we consolidated let's just say we put everybody under one building but
039we can't do it here but there was a property that the city had you know then we can get you know fair market value or something like that because then that might release us to have a larger property open and available for any one of these options. You know what I mean? Yeah. I mean I think the short answer is yes. I think depending on what the information shows that we develop and are able to confirm, I think then there are some options for negotiating with the city um to clear up, you know, whether they they they have an they are going to say they have an ownership claim to Panther Park, but how how the district and city can negotiate to work through that and that benefits both sides. Okay. All right. Yeah. Yeah,
040I think I'm good. Thank you. Thank you. Thank you. Have a safe charge back. Thank you. Okay. 6.1 adjourn adjournment special meeting of the board of trustees for June 2nd, 2025. Do I have a motion? So move. Thank you, Trusty Garcia. Do I have a second? Second. Thank you, Trusty Annayia. Please vote. If there's no other this discussion, please vote. On a vote being taken, we've got four in favor and one absent. This meeting is adjourned at 2:37.