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2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO School Closure: What do we do now? APRIL 3-6, 2013, LONG BEACH, CA These materials have been prepared.

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Presentation on theme: "2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO School Closure: What do we do now? APRIL 3-6, 2013, LONG BEACH, CA These materials have been prepared."— Presentation transcript:

1 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO School Closure: What do we do now? APRIL 3-6, 2013, LONG BEACH, CA These materials have been prepared by the CASBO Accounting Professional Council. They have not been reviewed by State CASBO for approval, so therefore are not an official statement of CASBO.

2 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO Your Pit Crew Southern Section Accounting Professional Council Megan Asselin, CPA – Vicenti, Lloyd & Stutzman, LLP Laura Castillo – El Rancho USD Shilo Gorospe, CPA – Vavrinek, Trine, Day, & Co, LLP Rick Holash, CPA – Whittier Union HSD Rick Jensen – Mountain View SD Priscilla Osborne Flores, CPA – Vicenti, Lloyd & Stutzman, LLP

3 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO We Closed It…Now What??? How did we get here? Successful closures Refer to “Closing a School Best Practices Guide” available from CDE website…

4 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO Collect and Analyze the Data Form an informal committee (Pre 7-11) to do initial research into possibility of closing a site –The decision to close a site is far-reaching, affecting students, parents, community, and staff –Factors to consider in closing a site: declining enrollment, declining revenues, facility up-keep cost/modernization, options for the closed facility (Revenue stream? Reduction in costs?)

5 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO Collect and Analyze the Data Consider on-going maintenance Open charter petitions Initial committee discussions –Guidance from experts prior to decisions

6 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO First Decision: Close the Site If the Pre 7-11 Committee determines that closing the site is advantageous, convene the more formal 7-11 committee

7 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO 7-11 Committee EC : Forming a District Advisory Committee –7 to 11 committee members –Follows Brown Act (GC ) –Considers both closing of the site and disposal of the site (cannot separate!)

8 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO 7-11 Committee (cont.) –Members include (EC 17389): Demographic representation Business community Community residents/residential organizations Teachers Administrators Parents of students Experts

9 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO 7-11 Committee (cont.) Not mandatory, but highly recommended –Key stakeholders in the decision –Experts in facilities, statutes, zoning, etc. –Process is transparent, credible, objective and non-political –Fact gathering 7-11 Committee provide recommendations Board may reject recommendations and approve another option Board and Superintendent should not be on committee A district administrator, consultant or a committee member should chair the committee

10 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO Gathering the Facts Enrollment projections and impact on surplus space Inventory of facilities and condition Cost of operating each facility (per student) Program offerings at each site Evaluation of specific schools for closure Environmental and safety concerns for each site

11 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO Gathering the Facts (cont.) Possible cost-savings for each site to be closed Identify housing/transportation options Benefits of each property disposition/use option Recommend transition strategies Recommend schools to be closed to the Board Impact of school closure on district’s insurance

12 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO Alternatives to Closure Expand CSR to create a need for more rooms Dispose of portables or leased facilities Restructure grades to balance school enrollment Reorganize school boundaries Close surplus classrooms Use surplus rooms/facilities Joint-use agreements with city/other districts

13 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO Alternatives to Closure (cont.) Convert to community day school Convert to small high school Lease to charter school (Proposition 39) Shift to full-day Kindergarten Start a universal pre-school program Consult with National Trust for Historic Preservation (“vintage” sites)

14 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO Deciding Which School to Close The most obvious criterion –School with declining enrollment… Not necessarily the best… Consider other factors…

15 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO Deciding Which School to Close (cont.) Condition of a school facility Operating cost of a school Capacity of a school Special program facilities Environmental factors Ethnic balance

16 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO Deciding Which School to Close (cont.) Transportation Neighborhoods Education program Aesthetics Value Stadium School name City Council

17 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO Making the Decision Recommendation to the Board of Education Conduct public hearings Transparency and communication are key –Illustrate factors affecting decision –Discuss what is at stake –Describe benefits and provide solutions

18 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO Making the Decision (cont.) Discuss proposed uses for closed school Board to take action

19 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO District Transition Team: Composition Public Information Officer (Point Person) Pupil Services/Student Services Chief Business Official Human Resources Department Staff Consultant Facilities Staff

20 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO District Transition Team: Responsibilities Student and staff re-assignments Textbook and instructional material allocation Adequate facilities Move or store furniture or equipment Fielding calls from concerned parents Follow up if no receipt of communication is indicated

21 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO From Decision To Close -> To Closure Planning and logistics to service the displaced: ‒ Sufficient facilities and classrooms ‒ Textbooks/materials/furniture from old site ‒ Parking ‒ Reconfiguring parent drop-off and bus loading ‒ Transportation and routing Communication!!

22 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO From Decision To Close -> To Closure (cont.) Communication ‒ Be as positive as possible ‒ Should include Reason for site closure Important time lines Identified new school for students Transportation arrangements Teacher reassignments

23 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO From Decision To Close -> To Closure (cont.) Communication (cont.) ‒ Simultaneous to teachers/staff and parents. ‒ Direct mail to parents Tracking purposes Ensure information is received

24 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO What to do after you have closed a school facility? (Disposing of Property) Vacant schools = district liability –Maintenance –Security –Insurance Coverage Consider –Re-use –Lease –Sell

25 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO Consider… How long will site be closed? –Length of time will determine which option is most advantageous Short-term (1 to 5 years) Long-term (6 to 60 years)

26 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO What is my facility zoned for? Check with your City Planner Rezoning can be costly and political Consult a Land Use Lawyer Separating – Green Space/Buildings Open space (Ed Code) –First to City and Parks and Rec. for actual cost of property

27 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO Repurpose your Facility Use it for something you need! –Training or conference center –SELPA Office –Create Central Kitchen –Be Creative

28 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO Considerations when Renting out your Facility Surrounding neighborhood Responsibility for maintaining facility and grounds

29 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO Renting out your Facility Consider all the selling points… ADA compliant Front office Restrooms Parking lot Outside eating area Playground

30 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO Who would want to rent my site? Other educational institutions Local organizations Medical clinic/facility Partner with your city

31 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO What makes your site attractive? Auditorium Pool Gymnasium Theatre Location, Location, Location

32 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO Selling your Facility Declared surplus 7-11 committee mandatory Assess current market conditions Facility built with bond funds Property cannot be sold 7 year holding period

33 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO Disposing of School Property Ed Code –Sale or Lease with option to purchase Revenue received must be used to for capital outlay –Revenue deposited into General Fund Restrictions State Allocation Board must determine the district has “no anticipated need for additional sites or building construction for the next ten years.” –Some exceptions Ed Code and

34 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO Disposing of School Property (cont.) Ed Code –Allows one-time flexibility Ed Code –First - Offer to Charter School (Ed Code ) –Second - Offer for park or recreational purposes (Ed Code 17459) –Third - Offer for sale or lease with an option to purchase at fair market value

35 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO Disposing of School Property (cont.) Types of Zone Options –Legal Rezoning a Property –Conditional Use Permit “as a matter of right” Specified conditions Variance

36 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO Disposing of School Property (cont.) Like-kind exchange option (IRC 1031) –Place proceeds in an escrow account for future purchase of property –Purchase an income generating property

37 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO Applicable Legal Provisions Education Code – Legislative intent for community involvement before decisions are made about school closure or the use of surplus space Education Code – appointment of a District Advisory Committee (DAC) or 7/11 Committee to advise Governing Board on use of surplus property

38 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO Applicable Legal Provisions Education Code – defines the required composition of a DAC Government Code – land zoned as “open space” must be reserved for park and recreation purposes thus limiting market value California Code of Regulations, Title 5, sections – defines district responsibility regarding racial segregation among its schools

39 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO Applicable Legal Provisions California Environmental Quality Act (CEQA) – statute that requires state and local agencies to identify significant environmental impacts of their actions and to avoid or mitigate those impacts, if feasible. –Increase in enrollment of more than 25% or the addition of 10 more classrooms, a more in depth CEQA review may be conducted –This review is specialized, thus consult with an attorney to determine applicability

40 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO GASB Statement No. 42 Determining applicability –Value on books Recently modernized/built site –Old or no value Not applicable Future building/site use –Don’t obsolete

41 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO District Examples Leases a closed elementary school to the High School District for its Community day school Long Lease to Commercial Business Relocating the District Office to a school site to be able to lease/rent DO site

42 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO Discussion What has your District done with its closed facilities?

43 2013 CASBO ANNUAL CONFERENCE & SCHOOL BUSINESS EXPO Questions?


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