SECTIONS 17060-17066 - California Statutes

EDUCATION CODE

SECTION 17060-17066

17060. (a) A school district may enter into a joint venture
relationship for the purposes of school facilities construction.
Notwithstanding any other provision of this chapter, a school
district entering into a joint venture relationship does so as an
independent entity and not as an agent of the State Allocation Board.
(b) For the purposes of this article, "joint venture" means a
collaborative undertaking by two or more persons or organizations for
a specific project or projects, having the legal characteristics of
a partnership.
(c) The joint venture relationship may, but is not required to,
include any of the following:
(1) Joint use of the property of, or facilities on, the project
site.
(2) Ground leases, alternative financing arrangements, or similar
financing arrangements.
(3) A construction arrangement in which a school district enters
into an agreement with a developer pursuant to which the school
district initially stipulates the basic performance and programmatic
criteria for the facility and the developer provides input into the
design work and building construction services by entering into a
contract with a single source team to administer the project in a
manner consistent with state law, and construct the project to, under
most circumstances, a maximum price.
(d) The price for the portion of the project that is funded by the
state shall be established through a bidding process as approved by
the State Allocation Board. All subcontract trade groups that are
included within the project, shall be determined based upon
competitive bidding for each contract group. All subcontracts shall
be awarded to the lowest responsible bidder.
(e) The proposed uses of any facilities constructed under the
joint venture project shall not be inconsistent with educational
purposes and activities.
(f) The cost of any project funded under this article shall not
exceed the maximum cost that would otherwise be allowable for a
project funded under this chapter.

17061. (a) A school district may apply to the State Allocation
Board for funding for the costs of property acquisition and the cost
of construction, as specified in this chapter, of the school
facilities portion of a joint venture project. The school district
shall publicly solicit proposals for the joint venture project
pursuant to the procedures set forth in this section and Sections
17062, 17521, 17522, and 17523.
(b) Upon review of the application for funding, the State
Allocation Board shall establish the maximum allowances for
construction of the school facilities portion of the joint venture
project. For the purpose of calculating allowances pursuant to
Article 3 (commencing with Section 17040), the State Allocation Board
shall use the information used to determine the allowances for the
school district at the time the district received approval of funds
under this chapter to acquire property on which the school facilities
will be constructed, or at the time an application is made pursuant
to subdivision (a), whichever is earlier.
(c) The State Allocation Board may approve, in whole or in part,
an application submitted by a school district pursuant to this
section in an amount the State Allocation Board may deem appropriate,
not to exceed the amount applied for, subject to final approval of
the joint venture agreement pursuant to Section 17063.
(d) For purposes of this section, and the process referred to in
subdivision (a), a school district joint venture request for
proposals shall include, but not necessarily be limited to, all of
the following:
(1) A specific description of the school buildings or land, or
both, to be constructed or utilized under the joint venture and a
description of how the costs of the project have been determined.
(2) The identification of the current educational uses of the
school buildings or land, or both, and of the educational uses
proposed under the joint venture.
(3) The identification of the current noneducational uses of the
proposed school buildings or land, or both, and of the noneducational
uses proposed under the joint venture, and a specific assessment of
the compatibility of those uses with any applicable general or
specific governmental land use plan and with applicable zoning
restrictions.
(4) A description of the prospective economic benefits to be
derived by the school district from the joint venture.
(5) A description of the prospective educational benefits to be
derived by the school district from the joint venture.
(6) A request that each request for proposal response include a
comprehensive description of the joint venture, including, but not
limited to, a description of the intended means of financing the
joint venture.

17062. (a) Notwithstanding Sections 20111 and 20118.4 of the Public
Contract Code, or any other law, upon approval of funding pursuant
to Section 17061, a school district may utilize a request for
qualifications and proposal process described in subdivision (a) of
Section 17061 to select and enter into a joint venture agreement with
a developer to construct school facilities. The agreement may
utilize Section 17406.
(b) The joint venture agreement shall include, but not be limited
to, all of the following terms:
(1) The cost of the project approved by the State Allocation Board
pursuant to Section 17061 as the amount that the district will pay
to the developer pursuant to the joint venture agreement upon
completion of the project, if applicable.
(2) A detailed description of the project, including, but not
limited to, the school facilities and any other facilities that may
be included in the project and any other information necessary to
meet the requirements of this chapter.
(3) The timeframe for completion of the project.
(4) A requirement that there shall be no state liability if funds
are not made available within the four-year period specified in
subdivision (a) of Section 17063.
(c) The joint venture agreement may also include a requirement
that if the actual cost of constructing the school facility project
designated in the agreement exceeds the amount set forth in that
agreement, the developer shall be responsible for the additional
expense.
(d) The lien placed on a schoolsite pursuant to this chapter shall
only attach to that portion of the project for which state funds are
actually expended. In addition, the lien shall expressly recognize
any subordinate property interest created by the joint venture, and
the state lien shall not be foreclosed or otherwise used to terminate
the property interest, or any subordinate financing liens incidental
thereto, created by the joint venture. The document creating that
lien on a schoolsite shall be written in a manner to clearly prohibit
assumption of any state liability resulting from the lien.
(e) Notwithstanding subdivision (d), the nondisturbance of
subordinate property interests permitted in subdivision (d) shall not
permit the foreclosure or other private taking of actual school
facilities or property paid for with state funds in a manner that
would restrict, terminate, or impair the school facilities portion of
the joint venture or the school district's use thereof.

17063. Upon completion of the joint venture agreement pursuant to
Section 17062, the school district shall transmit the agreement to
the State Allocation Board for final review to determine whether the
agreement is consistent with the project approval pursuant to Section
17061. The State Allocation Board shall act to approve or disapprove
the complete agreement within 60 days following submission of the
complete proposal to the State Allocation Board. The approval or
disapproval relates to only the decision by the State Allocation
Board to fund the school portion of the joint venture project and is
not to be construed as an approval or disapproval of the terms and
conditions of the joint venture agreement nor as authority for the
school district to act as the agent of the State Allocation Board.
The State Allocation Board is not made a party to the joint venture
agreement and shall not incur liability under the joint venture
agreement through its approval or disapproval of the agreement. The
joint venture shall indemnify and hold harmless the State Allocation
Board and its officers, agents, and employees from any loss or
liability, including reasonable attorneys fees and costs, caused by
the joint venture arising out of, or in relation to, any contract
entered into by the joint venture in furtherance of the joint venture
project. The date of approval by the State Allocation Board of the
project shall be the date of funding eligibility for the project. The
apportionment of funds for the eligible project shall be made at any
point up to four years following the date of funding eligibility
subject to the availability of funds for this purpose. If the state
funds are not available within that four-year period, the school
district may at its option remain in the funding cycle, subject to
other provisions of this chapter, until the school district receives
all of the funds it is eligible to receive pursuant to this article
as of the date of funding eligibility. The district's eligibility for
reimbursement of authorized costs and the district's position in the
processing schedule for the reimbursement shall be established as
the date of project approval by the State Allocation Board. The exact
amount of the reimbursement shall be determined at the conclusion of
the project and shall be based upon the actual subcontract trade
bids and other costs allowable pursuant to Section 17019.3.

17064. The selection of any design professional pursuant to this
article shall be made in accordance with Chapter 10 (commencing with
Section 4525) of Division 5 of Title 1 of the Government Code.

17065. The design and construction of school facilities pursuant to
this article shall comply with Article 3 (commencing with Section
17280) of Chapter 2 of Part 10.5.

17066. This article does not affect any requirement of a school
district to comply with the prevailing wage requirements of Article 2
(commencing with Section 1770) of Chapter 2 of Part 7 of Division 2
of the Labor Code with respect to the school facilities portion of a
joint venture project under this article.