Establishes the Yonkers city school district joint schools construction and modernization act

Section 2 of the bill sets out legislative findings declaring the need to modernize existing school buildings and construct new school buildings in Yonkers based on the age of the buildings, the deterioration of the buildings, the growing student population, and the city's inability to finance such repairs. If the quality of education in the city is to be improved, existing schools must be rehabilitated and reconstructed and new schools must be built. Renovations shall result in facilities which are more conducive to current education requirements and which will be equipped to operate at lower maintenance costs with improved energy efficiency. This section further declares that the city of Yonkers is unable to pursue a modernization program without special legislation as was provided to the Buffalo, Rochester, and Syracuse city school districts. As a result, the city of Yonkers has an immediate need for special legislation providing for new school buildings and a joint schools construction and modernization program patterned after the mechanism for funding received by or related to the Buffalo, Rochester, and Syracuse school districts.

Section 3 of the bill sets out definitions.

Section 4 of the bill creates the Yonkers Joint Schools Construction Board (YJSC) for the accomplishment of the purposes specified in this act, establishes the general powers and responsibilities of the YJSC board, and provides a conflict of interest policy and an anti-nepotism clause for the independent members designated to serve on the YJSC board.

Section 5 of the bill requires the Yonkers city school district superintendent and the Yonkers board of education to submit a draft plan to the YJSC board recommending the projects to be undertaken in Phase one, and provides that the YJSC board shall consider the plan in developing a comprehensive joint schools construction and modernization plan. The YJSC board is required to hold not less than one public hearing per school site before developing such plan. Once the joint schools construction and modernization plan is developed, a portion of the plan must be approved by the state Comptroller.

Section 6 of the bill determines project eligibility by requiring that projects eligible for selection must be included by the city school district in its joint schools construction and modernization plan as a special section of the district's five-year capital facilities plan that is required pursuant to subdivision 6 of section 3602 of the education law and the regulations of the commissioner. Section 7 of the bill sets out the selection process for projects undertaken pursuant to the act and requires the Commissioner of Education to approve all project plans and specifications. Upon approval, the YJSC board is authorized to enter into contracts for such approved projects.

Section 8 of the bill permits the YJSC board to enter into contracts relating to the design, construction, reconstruction, rehabilitation, equipping, financing, and management of one or more projects for a period not to exceed 30 years. This section requires that contracts must be awarded either pursuant to the public bidding process, in compliance with section 103 of the general municipal law, or on the basis of factors other than cost alone, including, but not limited to, adherence to facility design, quality and durability of materials, energy efficiency, incorporating systems and approaches which provide maximum facility value using the best current development, construction, leasing, financing techniques available, and maximization of state building aid. This section further requires that any contract involving construction, but which is not awarded pursuant to the public bidding process, must include a project labor agreement. This section deems all projects public work projects, makes applicable all provisions of Article 8 of the Labor Law, and deems contracts for projects state contracts. In addition, this section requires the YJSC board to submit estimated project costs to the Commissioner of Education. If total project c osts exceed the sum of the approved cost allowance of each building project, and the city school district has not satisfactorily demonstrated the availability of additional local shares for such excess costs, then the YJSC board cannot proceed with the final plans of such projects until the estimated project costs have been reduced. Finally, this section requires every contract entered into to contain language requiring the review and approval of the Yonkers board of education for the design of projects and the review and approval of the Commissioner of Education for the design and construction standards of projects.

Section 9 of the bill establishes the selection process for the program manager, provides the responsibilities of the program manager, and requires the program manager to oversee the implementation of the joint schools construction and modernization plan.

Section 10 of the bill directs the YJSC board to consult with the commissioner in creating guidelines for the request for proposals process, establishes the required information to be included in each project proposal, and provides criteria for evaluating such proposals received. Such factors considered during the evaluation process include a proposal's maximization of state building aid, net cost, and the financial and organizational capacity of contractors and subcontractors in relation to the magnitude of work they may perform, the record of performance of contractors and subcontracts on previous work, the record of contractors and subcontractors in complying with existing labor standards and maintain harmonious labor relations, and the commitment of contractors to work with minority and women owned business enterprises pursuant to article 15-A of the executive law through joint ventures or subcontractor relationships.

Section 11 of the bill requires the Independent Compliance Officer to monitor all projects and outlines such officer's responsibilities, including the requirement to develop and implement an MWBE/DBE Utilization Master Plan for the governance of all project contracts.

Section 12 of the bill authorizes building aid that would otherwise be payable for the school district portion of expenditures for capital outlays and debt service for each project undertaken pursuant to this act, be paid to the city.

Section 13 of the bill requires the Yonkers board of education to operate and maintain projects in the same manner as existing school buildings. In addition, this section exempts projects from taxes.

Section 14 of the bill provides that payment of debt service on bonds, notes, or other obligations issued to secure financing for projects cannot be considered in the Maintenance of Effort amounts determined in accordance with the education law.

Section 15 of the bill reiterates that all projects must be reviewed and approved by the State Education Department.

Section 16 of the bill establishes the financing powers of the YJSC board to finance project costs and authorizes the YJSC board to have debt issued on its behalf in an aggregate principal amount not to exceed $523 million, plus such additional amount of debt necessary to provide for a debt service reserve fund and to pay reasonable costs of issuance.

Section 17 of the bill allows projects to be financed through the city of Yonkers industrial development agency or any successor agency and establishes a process for the intercept of state aid if the agency was not repaid.

Section 18 of the bill requires the YJSC board to issue annual reports on the status of the projects and a final report identifying the fiscal and pedagogical results of the projects undertaken pursuant to this act, along with recommendations for its continuance to a phase two, amendments, or discontinuance.

Section 19 of the bill sets forth the formula to be used to determine the interest rate applicable for purposes of section 3602 of the Education Law, if the city of'Yonkers industrial development agency is used to finance a project.

Section 20 of the bill lists projects authorized pursuant to this act within subdivision 6 of section 3602 of the Education Law, for purposes of Building Aid

Section 21 of the bill amends section 2432 of the public authorities law, which relates to the Municipal Bond Bank Agency (MBBA), by adding Yonkers to the definition of a "special program municipality" solely for the purpose of this act.

Section 22 of the bill makes conforming amendments to section 2435-a of the public authorities law, which relates to the MBBA enabling statute.

Section 23 of the bill makes conforming amendments to section 2436 of the public authorities law, which relates to the MBBA enabling statute.

Section 24 of the bill makes conforming amendments to section 2438 of the public authorities law, which relates to the MBBA enabling statute.

Section 25 of the bill establishes the effects of inconsistent provisions.

Section 26 of the bill establishes the severability of this act, wherein if any provisions or parts of the act are deemed invalid by a judge, the remainder of the act shall still apply, and only those parts or provisions adjudged shall be affected.

Section 27 provides the effective date.

Justification

The school buildings in Yonkers are in serious disrepair, jeopardizing the education of the city's school children. The average age of the school buildings in Yonkers is 75 years old, with the oldest building at 119 years old. Most of the schools are past their useful life and many are in need of extensive refurbishment. Additionally, Yonkers schools have a growing student population and the city is currently managing a seat-deficit of 4,104 seats. Increased enrollment has required overuse of available classroom space for regular instruction and has resulted in a shortage of libraries, art rooms, music rooms, computer rooms, and other common school facility elements. Even by maximizing their debt borrowing under existing statutory limits, the Yonkers city school district is unable to modernize and upgrade their facilities at a reasonable rate as needs are far greater than the availability of capital.

This bill would allow for innovative and cost effective financing options to construct up to three new school buildings and reconstruct existing school buildings. The bill would also require a public bidding process to award contracts, would solicit input from the Comptroller, and require project review and approval by the State Education Department to ensure increased accountability.

Prior legislative history

New Bill

Fiscal implications

Undetermined.

Effective date

This bill shall take effect immediately.