Board Study Session

001these lands so with that that you would please join me in the Pledge of Allegiance so I pledge allegiance to the flag of the United States of America and to the Republic for which it stands one nation under God individuals okay thank you so much so we moved the second two superintendent and board business so item 2.1 Dale Scott will facilitate a board's study session regarding Workforce housing this study session will present to the board the initial steps to set up the workforce housing in our district this IM is for information only a superintendent vowel you please introduce thank you uh for president um and you and I had this conversation earlier this morning this is a historic moment and I want to acknowledge that because I know there's going to be a number of

002people who since this meeting will be also air in YouTube people are going to be uh downloading and listening to this so I want to um really thank the community for making this moment happen by the passing of measure s um and because of that we will be able to to learn this morning about the process that the district needs to follow in order to bring Workforce housing in the midst of our community of Alum Rock which is pretty significant for our community and for our staff I know that the staff is very grateful that the board took this on uh uh trustee Quintero and trustee the committee that looked into the feasibility of this back in the spring and so because of that work that included members of the community and members of the

003staff now we're here ready to get this ball rolling and I want to thank um Dale Scott and Joe and I forget you but uh to be here helping us to frame the work and to learn and to help us set up the right steps to make this project happen um and I also want to thank Mr colvera Chang who has been very diligent about helping us um move forward from the financial side making sure that our district is ready for this project because if our district had any residue of financial turmoil this would not be happening so thank you so much Mr Chang for your leadership in our district regarding bringing our district to a stability Financial stability that allows to do this so without any further Ado I don't I believe that we

004need to take some public comments okay and then I will turn it over to Mr Dale Scott so um you know uh so at this time I you know on this uh and you know unprecedented the moment in our District's history I'll I will open item 2.01 to comments uh from members of the public uh are there any comments for members of the public Mr President there are no requests for public comment that oh Mr hold on a second yes there is one request from Gustavo Gonzalez okay uh I mean here I did hear this could you speak a little louder there Louise yes uh there is a request from Gustavo Gonzalez for public comment okay all righty Mr Gonzalez you have uh uh you know you have the four you have two minutes to

005which to speak thank you so much Mr Gustavo please don't mute yourself and the time it will start when you start talking perfect thank you so much uh fellow board members um and uh staff for doing this I think this is crucial for the success of our students here in this area without teacher housing we will have no teachers as everything is so darn expensive and so I just can't thank all of you enough for this effort that you're taking keep up the good work and I'm here to support you in any way that I can thanks thank you so much uh is there Amy for Republic comment Louise there are no requests for public comment at this time okay seeing no further public comment uh Mr Scott uh you have the floor thank you

006thank you and good morning um today even though I know we are here to talk well first of all let me congratulate uh the district on the bond measure passage in November uh clearly a huge day in the district's history and now we now the real work begins I guess is the way to put it this session today which is on the process for moving forward with the teacher staff housing relies on the district's ability to issue bonds to funded so we're going to start at a very high level looking at The District's entire debt structure and then we'll work down work down work down until we get to the issue of teacher staff housing because without that basis at the beginning I think we're going to get a little lost starting out too quickly

007so I'm going to share my screen and we're going to going to begin digestion energy but the wrong one sorry thank you sorry for the technical glitch everybody hear me yes let's start looking about the district's overall debt history in terms of Passage this has all of the Geo bond election details this slightest all the Geo Bond details uh since 1991 obviously there's been strong support you've seen you can see that all of the bond measures have been put before the voters in this District have passed we still have two measures that have significant amounts of authorized but unissued bonds that's the measure that passed in 2016 measure I 100 million dollars of which is available and then the measure that just passed measure s 71.5 million dollars and all of those bonds are available

008at this time for use not only for Teacher staff housing but for other projects as well drilling down a little bit farther there are many outstanding bonds that are still being paid off by The District's taxpayers this is a list of every one of the measures every one of the bond issues that is outstanding it has various uh information about the original principle how much is being paid when the maturity is I'll come back to the issue of when they can be refinanced but you can see you know we're working through all of these as the district is paying off its debt foreign [Music] foreign [Music] foreign okay we're good these are the projected tax rates for the outstanding bonds not the future bonds that haven't been issued but for the outstanding bonds and you

009can see that the a number of these bonds are going to be paid off shortly of the 1991 election is going to be paid off in four years uh the 19 the 2008 election is going to be paid off in about 10 years so this is what the voters the taxpayers are currently working on foreign what does that mean in terms of what the taxpayer is the individual taxpayer is actually paying this slide shows the average assessed valuation of single-family houses in the district by one hundred thousand dollar increments so what this means is as you can see up at the top you have actually almost 2 000 Parcels in this District where the assessed valuation of the home is under one hundred thousand dollars hard to imagine but true the average assessed valuation is

010four hundred thousand dollars but it's a wide berth so when we start talking about a tax rate of thirty dollars per hundred thousand dollars that's going to depend on what the person's not the market value of the house but the actual assessed valuation which is typically lower um some people are going to pay for a hundred dollars because their assessed valuation is a million dollars I'm sorry uh 300 300 000 dollars three hundred dollars and some people are going to pay 30 don't so there's a wide variety of what that payment is and that's why as we talk about it today we're going to talk about per hundred thousand dollars of assessed valuation meaning it's going to change from person to person company to company owner to owner as we go through it the good

011news is the districts over all assessed valuation has been growing uh at a very healthy clip really for the past 10 or 15 years since the downturn in 2008 over the past five years you've had assessed valuation climate an average of six percent per year last year was over six percent six point seven percent still as we go forward and we look at these numbers and we start thinking about them we're not going to assign that it's going to continue to grow at that rate it does that's great but we've assumed a fairly modest rate I believe it's three and a half percent as we go forward in terms of annual growth so what we're trying to figure out is what's the best way to put the financing together for both this project and all

012your other projects in a way that's going to be the most efficient and least costly for the taxpayers if you're just who have been incredibly supportive of these products projects so I'm going to turn it over to Joe Crump for just a minute to go through one again was not quite to the housing part here but I want to talk about the ability to lower the cost of the taxpayers today of the existing debt before the Geo they're called refunding bonds think of them as a refinancing I want to turn it over to Joe to take you through the next couple of slides and then we'll come back and start digging into the housing budget yeah thank you Dale to us okay all right uh so let's take another look back at The District's outstanding

013General obligation bonds um so as you can see from this table uh the district currently has eight bonds outstanding um total outstanding principle you see in the middle column is about 100 and almost 127 million dollars um the key column we want to focus on here is on the far right um the second row the 2012 election series a um you can see the call date for that bond is August 1st 2023. and so the district will have the option to refinance those bonds um basically starting from May onward so um that is obviously um just a few months away so we've put together an analysis looking at how that refunding could be structured and to see what the results to the district will be so the first alternative is what we would call a

014proportional savings structure so in the graph here you could see um The Debt Service on the refunding bonds and then in the green bars we have projected savings so this structure basically takes savings over the life of the bond structure and you could see in the table on the right in that highlighted box um based on current market rates the projected savings for this structure are about eight million dollars over the life of the bond going out to 2043. and that amounts to about 16.2 percent um savings as a percentage of the total debt service so those very good savings um and and this I'm sorry if for president yes are you okay if we have questions as you of course yeah or I just wanna um alert I don't know if uh if you

015have questions and the rest of the board I wanted to ask that I do have a question very basic question because I I'm not an you know a financial person per se but I just wanna so this allows correct some of this savings to come back to our bonds so that we can uh do stuff in in terms of projects well yeah these savings will be tax rate savings that will accrue to taxpayer so okay the tax rate will be lower um and so that that does have an effect on the district in terms of you would be able to in the future issue more bonds but you're starting at a lower tax rate so there is an effect in that it's like a win-win for your taxpayer and for the district that's correct okay

016thank you I see uh Chris vice president Herrera loera thank you yeah also very basic questions just to make sure I'm following here um so this is a chart if if we decide to refinance then this will be our savings that's correct and you know this is based on current market rates um you know you never know which direction Market interest rates are going to go but but based on current rates um savings are expected to be about eight million dollars that's correct thank you and so we've also put together a second alternative you know because there are different ways you can structure this uh refinancing and so this is looking at the same refinancing of the 2012 series A bonds but now we're structuring um the new refunding Bonds in order to put all

017of the savings um on the back end and there are pros and cons to this approach so you see now in the highlighted box total savings are almost 9.8 million dollars and um so the savings are higher but of course you don't see the effect in the tax rates until 10 years down the line so there are trade-offs um so these are just two Alternatives where showing the district to show you know there are different ways that this refinancing can be accomplished and lastly for this section of the presentation we have a timetable So currently the District board is scheduled to take action on this and also um some of the other bonds that Dale will discuss on March 9th of this year and um March 13th uh tended to be scheduling a rating presentation

018for the new bonds April 4th the County Board will take action on their own resolution pertaining to the bonds and we expect to that the bonds will price in early May and close by the end of May so at the end of May this refinancing should be able to be accomplished superintendent Bowery had a question so um just so that I can follow because this the this information is leading us to a proposed recommendation to the board that we would bring on March 9 if we see that refinancing this year right because I totally see you know the the next opportunities 10 years down the line and so that it's totally within you know kind of out of our timeline in terms of some of the projects that we have in mind right so um

019what I'm seeing is a potential for a recommendation to be brought to the board March 9th so that we can move forward with this concept of reclinences yeah that's correct yeah so yeah are there any protections um that we can take uh because Jerome Powell wound up getting covered or something like that and they're supposed to meet and that's probably going to end up being a a hike in interest that's going to wind up feeding the markets to go nuts what what um what protection do we have to from like taking action and then wind up being in a situation where the interest rates yeah that's a great question um it's even after the board adopts the resolution resolution it's totally up to the district whether they want to proceed um basically it's not until

020May 9th um pricing that the interest rates are locked in so all the way up into that point you know the district can make the decision well you know maybe the savings are not um at the level we would want to see them at and so you basically have all the way up until the time the interest rates are set so that 8 million and nine million dollar figure is pretty steady up until May you never know I mean that you know if interest rates are stable um we should we expect to see about that amount but it's hard to predict um but certainly the district will have the opportunity you know we will monitor interest rates and be able to tell you all the way up until pricing you know this is what the

021current savings look like and based on that the district can decide if they want to proceed with um pricing than personality and bonds so yeah that's a great question comment superintendent Bauer so what I hear is that there will be there are the safeguards that are here is that the we have the gift of time all the way to May 9 so even if we even if the board uh takes action in March you still have all the way till May to kind of you know say we're moving forward or not yeah that's correct thank you and now I'll turn it over to Dale yeah yeah let me just add one piece of the puzzle there which is you actually have Beyond May if interest rates have deteriorated at that point then we put it

022on the Shelf we watch them we'll come back to you when it seems to work the point however is there are no costs accrued to the district to this until you take the action and then all of the costs are then built into this they're net out of the number you find and the savings all go to the taxpayer so this is really at the essence I think of just fiscal Prudence to bring these carefully to Market and not jump at the first time you say hey this will be going to save a couple hundred thousand dollars you've waited patiently on this and I think it's been the right decision to make wait until you can actually refinance it using tax exempt bonds to get the maximum savings to the taxpayer thank you now there's

023one other piece of the puzzle that has to be dealt with and it's a slightly esoteric but it's important that we talk about we talk a lot about the tax rate limit that we may recall when we were doing the bond measure we said there's a 30 tax rate there's a 30 tax rate limit per Trend per uh Bond measure there's another piece of the puzzle which is called the debt limit and the debt limit it's unfortunate term it has nothing to do with the tax rate limit it is completely separate within the Education Code there is a requirement that the district's outstanding debt that is the principal amount of bonds outstanding be no greater for an Elementary District than one and a quarter percent of the district's assessed valuation so it's somewhat obscure but

024it is something that we have to pay attention to so if you look at this uh chart the red line is one and a quarter percent of the district's assessed valuation assuming assessed valuation and growth at uh except not counting the next year at five percent but they're on 3.75 per year so that debt limit is growing over time the blue is the outstanding principle of the bonds you currently have outstanding not the bonds that you're thinking about not the bonds that have been passed by the voters just the bonds that have been issued the total sum and those are falling that amount is falling because bonds are being paid off every year but you can see right now that the gap between the one and a quarter percent of bonds outstanding and one and

025a quarter percent I'm sorry the amount of bonds outstanding and one and a quarter percent of assessed valuation is only 19 million dollars that's the limit right now however there is a process by which the district can request a waiver of this regulation from the Department of Education these wave there's a process you have to go through will guide you through that process it takes a few months um it is a fairly standard I've never seen a waiver that's not been granted as long as it's put together in the right way and been presented to the to the state and we will then be looking for a waiver that will I mean we will still be able to issue the first series of bonds so we can get for get going on the housing project

026but for future bonds we want to ask for that waiver to be able to issue all of the bonds that have been passed by the and approved by the voters so that is a process that we're going to start going through over the next couple months it'll take forward action we'll have to discuss it with the oversight committee we'll have to have you discuss it with your bargaining units it's a fairly formulaistic process I'm not anticipating any problems but it does have to be put in place in order to go forward with these projects down the line superintendent Bauer so Dale would you please help me understand what happens if for example um this is not something that is approved well first of all I've never I don't believe there has been ever been one

027that has not been approved but I'm thinking like from the the local level oh no no they don't there's not a request that would be approved you nearly you merely have to consult okay so if that is something that people have doubts let's say you know let's say we're not interested whatever the the result of that is that we only have the ability to issue 19 million dollars is that what it is no no we only the only thing that has to happen is the state has to provide you with the waiver in order to provide to obtain the waiver the board has to request it by a simple majority and you have to consult consult not get approval with your bargaining units and with the community group such as your oversight committee now I've

028been involved in situations where or a variety of reasons the one one of the bargaining units decided to vote against the waiver okay it was noted that information was provided to the state but it doesn't affect the state's ability to provide that waiver thank you uh you know I guess oh I have a question for Dale here so uh the the consultation process here uh so the I am you know the district would you know consult with bargaining units the oversight committee but it kind of sounds like does each bargaining unit and I guess in in this consultation process they they may Express more or less a vote of support or opposition to it and so it sounds like each bargaining unit and the oversight committee would in in the consultation process you know we

029open this and then you know they would you know they could say yay or nay here and I guess the hope is that you know we we all bring them together and we have goes unanimously but you know we just um a name from a bargaining unit or the oversight committee would would not have basically we would just report that in the waiver request and it would have no it would not have any bearing on the state granting correct the waiver okay thank you so much is the the consultation prescribed in love like does it say you have to do this and do that or is it pretty wide open in terms of the consultation I'm just wondering like does it say each part of the Union has to take a vote or is it

030just yeah conversation yeah um as far as the application process um there does have to be some consultation um and the waiver office at the State Board of Education would need to see some sort of evidence that that's taking place so there's I think the easiest thing is to get like a signature on some kind of letter that states you know um the bargaining units position for example but there's not a exactly a set format but there are certain things that they'd want to see you know some documentation um and Isaiah was saying the waiver application itself simply asks you to note what is the bargaining unit's position support neutral or oppose um and then for like the oversight committee I think the waiver application says um were there any objections from committee members and

031then make a note if there are any objections so that I think that's the extent of the engineering okay okay I I see trust uh vice president Herrera will error thank you um and it's more of a comment uh you know obviously this is Brian this is new so um you've all done this several times and it's great to hear that for the most part it gets um passed and obviously you know there's I'm sure um like the formula and the reason for all of those different groups to be consulted um and I I mean this is all positive I see for our district right um at the end so I don't see anybody that has a vested interest in Alum Rock um you know going against something like this uh but then that could

032just be me right but I look forward to this process and I know um as you mentioned you will be coming back um or the staff will with recommendations um so I'm excited thank you okay and superintendent Valerie had a question yeah I just want to let the board know that I know that there are bargaining units have their process their own internal process and they I'm pretty sure they'll bring it to the membership for consideration and then we will get that that's something that they do on their own we will just go and ask them do you know to consider and each bargaining unit will decide the process that they will have to follow you know to bring to the membership I know that they have regular meetings some of them have regular meetings

033weekly others have it monthly so we just need to have a timeline so that we we are timely in this process yeah this is a process that takes months not weeks yeah just to be clear anything else all right I'm gonna skip over the time tip for this let's talk about teacher staff housing there are in my experience four critical questions uh that have to do with teacher stock housing how do you finance it how do you Market it how do you build it and how do you manage it those are the four critical pieces of the puzzle so we're going to walk through those one by one and I've drawn a lot on the experience of Jefferson Union High School District as we've gone through this and watching how they've put this together and

034on their own and with our assistance so I am going to hopefully play this hopefully it will work uh school districts across the country are grappling with the teacher shortage and communities where housing is unaffordable are being hit the hardest in tonight's eye in America one district is fighting the problem by getting into the real estate market here's cbs's Jonathan Vigliotti care museum is a type of bacteria among the things that can't be taught in a classroom how to keep teachers in the classroom there's been times where you know we didn't have a math teacher or we didn't have a language teacher just south of San Francisco the Jefferson Union High School District found a common denominator what do you attribute to that turnover High Cost of Living 100 consider that a decade ago teacher

035pay used to be affordable but while salaries have gone up slightly rents have skyrocketed this District found a solution very spacious extremely roomy a 122 unit apartment complex approved by local voters built for teachers and staff on school property for the average two-bedroom unit in this neighborhood you're getting easily pay over three thousand a month biology teacher Michaela ottsrent is nearly half that sixteen hundred dollars a month if I hadn't gotten housing it would have been really challenging for me to make ends meet I was absolutely Blown Away Jonathan Krupp has taught social science for 13 years how important is an effort like this to the teaching Community there are no words to describe it I I think that this gives teachers hope while other school districts still have vacancies at Terra Nova High School

036this year I started fully stuffed which was huge principal Megan Carey says there have always been pocketbook concerns we had a teacher who was delivering pizzas meet Eric willemsey gather around who says until he got a teacher's apartment he couldn't coach cross-country delivering pizzas actually pays more than coaching in this District but having this subsidized you know teacher housing oh man it's a godsend yeah with their message to other school districts across the country just do it everyone will benefit from it money well spent yep oh absolutely money well spent being able to live in a place where I feel like I can recharge I feel a weight lifted off my shoulders make sense for ION America I'm Jonathan Vigliotti in Daly City California all right the first question is how do you finance it

037well you have something that most districts in this state do not have is a bond authorization that allows you to finance it but let's look at how that might work and I'll give you a couple different ideas on top of it what you have here is just an example this is based on 50 units I believe I'm sorry yes 50 units at below Market rents 65 percent of the current market and what you see here the with these bars is the projected gross income from those units the gray is what we estimate to be the operation and maintenance expense which is going to be paid from that rent the green is the additional Revenue that is available from them now that can go back to the district for any any permitted use it can go

038to build additional housing and support additional housing this assumes that you are financing the teacher staff housing with 100 percent General obligation bonds that's what this chart assumes in addition you can see that it stops in the year 2052 but that's only because we run out of room it doesn't stop in the year 2052 this continues uh this continues as a as a available housing and also Revenue source for the district added tonight this isn't necessarily how most districts however that are currently working on teacher staff housing are thinking about financing they often start out this way but then they say wait a minute we can use this net revenue to help offset the cost of the financing by using a combination of General obligation bonds and certificates of participation which are at least financing

039that are repaid through a portion of the net revenues so they put the two together in Jefferson's case Jefferson High School case that allowed them to build far more units than the go Bond would have allowed them to so they were able to leverage that in other districts they've used that to reduce the cost of the bonds and therefore the cost of the taxpayers and free up those additional bonds for other projects now this isn't a decision you have to make now it's not a decision that's really on the table anytime soon but you need to think about that that there's other there's other ways to finance this than just using only General obligation ones you have to use a portion of them just because the cost of the housing you're going to want to

040use that but you can supplement that with cops to either expand the amount of housing or reduce the amount of Geo bonds that are necessary clear that's as far as I'm going to go into financing I think that's the easiest piece of the puzzle the second is how do you Market it and I know that's an odd phrase when you say well what do you mean Market if we're we're not we're not going to be going out and and marketing this to the community but in a way you are this is something that the staff and the community really needs to know what you're doing and these are lessons drawn drawn and provided by Jefferson High they say that from their perspective the four most important things were clear messaging of what you're trying to

041do make sure that there is Staff buy-in and you can see here that they list site meetings so the staff knows what is being planned visuals which will be coming shortly as you begin this process to show what the quality is of the units and then make sure that they bring the unions into the decision-making process so it's not in a black box in other words so everybody knows what's happening and knows what the quality of these are going to be for Unity it's not one person's project it's the board's project in the districts project that there is a clear spokesperson for the project but not everybody's out talking about it and that we stick to the talking points once we get those and then finally there's going to have to be presentations that are

042put together for the community and they have to deal with the talking points and training on those presentations so everybody understands what's happening there's going to I'm sure you've already heard it there's going to be all sorts of rumors all sorts of discussion maybe I've heard this is happening I've heard that's happening you need to have a clear message and get ready to go out and present that as many people as possible where then how do you build it this happens to be uh the former superintendent now retired on the right at Jefferson High and two board members who were instrumental in uh and this was the groundbreaking um or the uh for the Jefferson High project this is a pretty rough outline in terms of the timing but these are the big pieces of

043the puzzle the first is and I highlighted it in yellow because I think it's one of the most important parts and one of the things I think should be discussed today is Project oversight there's a thousand decisions that come with this process who's going to be making those decisions now obviously the board has the finals say but these are micro decisions you know how are you are you going to go this way are you going to go that way is it going to be this is it going to be that that's going to come back to the board obviously for final approval but there needs to be some type of organization there's not a great blueprint for this it's up to you how you want to put it together of who is going to be

044the kind of committee that oversees this as you begin to go forward now in Jefferson's case they had a committee that was established that included board members Union Representatives community members and staff members and and their uh and their Consultants other districts Mr President yes yes the committee that had been meeting was authorized to continue on as the committee that you're talking about okay so you've been to some of our previous meetings which included a lot of stakeholders um and so we're we're ahead of the game by having given the committee the charge to continue on okay okay good what president can I just firm and uh clear Quintero just to confirm that's the committee that um we had started right that we have been meeting with you and I and okay seriously yes perfect

045thank you okay that's what I was thinking but I was gonna wait for my question thank you great um and of course as you go forward you might find that you want to tweak that committee that happens um I'm working with one District now it started out with a committee that was much smaller uh didn't actually involve any board members it was mainly staff and consultants and now they're opening that up as they're past the feasibility study and they're into the actual construction so I think you need to be flexible as you go forward on this um you're already uh asking uh I don't know when they're to be received but I know an RFP has gone out before the feasibility study um RFP RFQ in terms of the design build team select that team

046City County approval sounds like it should be easy should be easy but often it's not it's going to be a little bit easier with some legislation that's going to be in place a year from now uh that might dovetail to where you are at that point but still we have to deal with either the city handle or the county and you can see it's hard to imagine but it takes at least a year or two before you actually get to the groundbreaking it just takes a long time then about a good year for construction now Jefferson got slowed down because of coven but it took them well over a year superintendent Valerie you have a question yeah I wanted to ask Mr Chang how we are with the feasibility study just a reminder to the

047audience and to the boards foreign er um so the deadline for submittal of The Proposal um ended this week and we received I believe about five or six proposal that was submitted um we'll be bringing that to the board uh for consideration um in terms of the process of interviews and selection thank you can I ask when that's going to board one second going to support um well need to consult with the superintendent important president in terms of the timeline yeah and because you know this is this is part of this is such an important piece of the also oh I'm sorry is that okay of course I just wanted to um alert um the committee that was set up last spring that and the Border approved that you know to continue that perhaps it

048would be um we can have a conversation about this as a committee and and I'm looking at a trustee Quintero because he was leading the committee in trustee Herrera lawera um so that we can bring that recommendation to the board with the committee um support yeah exactly it sounds good maybe we could set it right after this uh exactly important meaning perfect and I know that there are some of our stakeholders that are part of the committee uh in this call so just to kind of alert people a lot of reading yes yes but that helps the community to know you know that this is a very transparent process and that um people this the stakeholders are uh part of that anything else on the timeline I'm going to go to the how do you

049manage it this next uh slide has been developed uh in conjunction with Jefferson High [Music] and there's a lot on here I really want to dig into this as we look at who's doing what that's not to say that there aren't other ways of putting this together there aren't ways we can change this but this I think is a good framework to think of obviously the number one leader in the entire process is the board they set the policy they make the decisions but you want to have something that's going to be in between you and the management of that facility obviously so in this case let's just sort of walk through it in different directions the school board worked with staff to deal with issues such as financing what land was going to be

050used if new land had to be acquired how the construction management was going to be handled those were staff issues at the same time they created an employee housing corporation which is a non-profit Corporation that in that case the employee I'm sorry the employee housing Corporation included a variety of members um that had board members uh members of the community members of the bargaining unit maybe there's a large organism a large group and they oversaw the they their purpose is to be the buffer in between the management of that of that project and the board so decisions and complaints and problems aren't coming to the board they're coming to the corporation that employee housing Corporation going to the right has numerous responsibilities some of those responsibilities get pushed to staff some of those responsibilities get

051pushed to an outside property management company that's responsible for the day-to-day management of the of the project but those include the rules and regulations who can live there What About Pets what about roommates how do you handle uh the terms uh Financial oversight rental let's disputes appeals eligibility priority security these are all issues that have to be handled by that Corporation by the appropriation many of those however then have the implementation through that through the day-to-day management by the property management company you can see to the left who the members of this are there are two board members on this again this is just the Jefferson model two board members two staff members three community members and in addition there is a non-voting director of Staff housing the director of Staff housing is a district

052employee that's whose salary is paid out of rent in rental income that's the person who really as I've understood it and heard from them that's the person who really stands between the management company and the employee housing Corporation that's the person that everybody goes to and says what about this what about that in Jefferson's case that person has also been responsible for dealing with all the media and there has been a lot of media requests how are we going to do this how are we going to talk about these people so they put that all into one place which I think is a Smart View the only thing I want to emphasize with this slide is the ultimate responsibility and the ultimate policy is going to come to the board but you don't necessarily want

053to be involved in those day-to-day decisions you want to figure out a way that that is going to be pushed down to another organization and that complaints are going to that Corporation and organization the question is about this to worry concerns or compliance or very yes that's a pretty clear I I know that uh big West Valley mission the Community College District has a land corporation that they use to manage their assets that generate revenue for for the district and so I was assuming it's simply similar to this okay we have covered the four major issues these are the big pieces I think as we now look back now look forward to what are the steps I'm not sure how important it is that we concentrate on forming the corporation at this point we really

054need to get your feasibility consultant on the feasibility consultant I think as you're trying to work through those proposals you want somebody that can really identify that land what pieces of property are we going to be focusing on what works what doesn't work get the committee to making some decisions get the financing in place so you'd have the funds to pay for that original those that original work or that beginning work and then the process begins uh superintendent Bowers so they'll these employee housing Corporation does not follow in order to set it up right uh does that follow kind of the process for the 501s the non-profits that's great process right and you'd want to work with Council obviously or maybe a County Council right and it is something that can be parallel to kind

055of the work that needs to be done right before the groundbreaking Oh and before and before I mean in talking with the Innovation who I believe you've met um who's the assistant superintendent for business at Jefferson I asked her what is the one thing that you wish you would have done differently and she said she wishes she would have said they would have set this up earlier so they had that infrastructure in place to help with all the decisions so this is something that the committee can get started right away yeah I'm just trying to get us into that timeline for all of us right to say this is time it's time to start talking about that um you know trying to learn from the other districts you know how they set it up and

056begin that process now and I think that you can draw on those other districts greatly um and that's a huge benefit to have somebody that's until that Row first to help you what worked and what doesn't work for you okay thank you okay and I see vice president Ferrero loera thank you um and I think Dr Bauer just mentioned a question that I was going to bring Dell is um for example I mean I I appreciate your expertise right and all the experience that you bring um in the learning from the different projects and the pros and the cons um which I with the committee that we currently have formed that we all agreed to continue this work in the now right it could change in the future um I must I know you will

057walk us through this but I'm assuming part of the next steps in the near future will be part of the identifying which land and things like that is that something that this committee will look at and maybe bring forward recommendations or is that something that falls in the facilities plan because we also have the other projects going how does that work well to a certain extent that's up to you how you move forward on that but um big picture you would have a selection of your facility your feasibility consultant a feasibility consultant would bring recommendations to the committee uh the committee would bring those recommendations to the board now how you integrate that with your overall development plan is up to the board I think not to the committee but that would be an obvious

058burst step you may find that takes a couple of months you may find that takes more than a couple months you have a lot of pieces of property to figure out what you're what's going to work and what's not going to superintendent about right but that's an excellent um comment from and thank you for bringing that up that's why um we went ahead and started looking you know for the feasibility so that we can integrate those kinds of recommendations to the plan so that is part of the the facilities master plan so that's you know it's sort of um it's a chapter right into into the facilities master plan that we're putting kind of on hold until we have that visibility study to be able to say these are the recommendations from from the people

059that know how to identify the best area right yeah that makes sense and um in regards to bringing it that visibility and then bringing it to the committee and it's kind of like turning things over and over right into like the perfect uh combination ends up at the board level right and then moving forward so it just sounds like there's just gonna continue to be a lot of work like you said it could be weeks probably not it most likely will be a couple months if not more um because obviously we want the best teacher housing that has ever been created because of the things we've learned um and moving forward so thank you this is very helpful in the process especially where I was at and understanding so um I thank you for this

060information so I just want to make sure that we support this away because this is a unique thing it takes a massive amount of work and I what I don't want to see is this thing getting killed by committee because we wound up missing a deadline because I had to go through 12 committees the reason that we have the the teacher Workforce housing committee is because it it's a place where we go take things to be uh aired out and then it goes directly to the to the board so that the board can have uh critique action having things haven't been um uh already fleshed out in in a community that's already been established yeah and so while it is part of the of the overall facilities master plan um I when when the committee

061was created as we were moving forward the idea was to be able to move on a on a parallel path to the committee to just get things to report it's superintendent power yes and the I guess just to further clarify what I meant is that the master plan is going to be waiting for the facility for the for this committee the workforce committee to say this is what we decided so that they can integrate it into that plan to facilitate the time timeliness of this uh that completes my report any further questions or comments by members of the board thank you very much for the presentation uh I've been inundated by questions uh members of the public media and all I could say is I'll take a look at the Jefferson model it's a good

062model it's it's already out there it's happened and so I'm glad that we're out now able to give them a place where they can turn to look at actual possible uh Alum Rock type of uh something more something that aligned with Island Rock rather than having to trim somewhere else what the possibilities might be here for our local project and so very very excited to see that um the timelines all the things that they've kind of just been looking at it um been getting really positive uh feedback from uh employees who who similar traveling from very far distances both said is exactly what we need um been very appreciative the fact that it was introduced so very proud to have been able to introduce this item um something that meets the needs of a uh

063that are that that are being based here at our district so thank you for the presentation okay I just put this other slide up just to highlight where you as a board are trying to figure out how do you communicate with the community I think you're absolutely right you're going to get thousands of questions and you probably need to spend some time thinking about who's going to answer those questions what the messaging is on those questions that's going to come organically as it begins to be put together as opposed to everybody having their view of how it is that is consistent with board uh with words policy vice president Herrero thank you and just to reiterate you know I'm really excited of all the work we've done already thank you Dell with your leadership um

064and guidance in that like as I see this uh slide that you have up you know I feel like we've kind of checked off you know a lot of these boxes um without having that you know like hey you got to do this even the staff Buy in peace right like having that committee where uh we um have brought in unions into the decision-making process and then moving towards the right in regards to bringing in the community um and then obviously you know checking our egos at the door I'm glad that at least you know and and please correct me if I'm wrong uh not in this meeting but I'm always open to Growing you know I think this board you know that that there's no issue with that and um you know grateful for

065clerk Andres Quintero um for having been that a point kind of clear spokesperson without even having picked him you know um because he did bring this forward um initially so I know there's a few things on here that we still haven't right and we get to continue to build on as we move on in this process like the talking points and where we're at and moving forward I think we got a lot of good ones now um and you know bringing us back so that we're all on clear messaging um that's used by all of us um and yeah you know we're not going to agree on everything 100 which is a beauty we should not because we all bring in our different experiences um so I'm just really excited I feel like we've we're

066kind of ahead you know of where we're at like without even knowing um about this process and I look forward to scheduling that committee meeting soon so that um we can continue on this uh so yeah thank you so much Adele for your leadership and guidance and I look forward to continuing to move on this process it's really exciting on behalf of our community all right so I'll just conclude thank you so much Mr Scott for spending their Saturday morning and you know being with us in this process and thank you to my calling and trustee Montero for kind of you know starting the chain of uh docimals that that got us to this point you know it feels like that was it majoresque was kind of like the the passage of measure as it's

067like getting the college acceptance letter right now we're about to start the freshman year of college full of new uh New Opportunities and exciting opportunities so uh with that uh you know we'll let the work begin thank you so much well there is no further business I will uh move to adjourn the board study session at 10 12 a.m thank you so