CSD Board Briefing

Thursday, October 17, 2019

Civic Permits and Lease Analysis

The Governing Board and staff discussed Cambrian School District's daily facility lease agreement process, fee schedules, and long term lease agreements. At the August 15, 2019 Board Meeting, the Board reviewed the revenue generated from these sources which support Cambrian School District's general overall budget.CFO Penny Timboe recommended having a set rate moving forward for any potential leases/tenants with defined sweat equity terms outlined. Short term leases (civic permits) consist of hourly rates for district and school sponsored activities, district youth non-profit organizations, community youth non-profit organizations and adult, religious and private groups. The Board of Trustees voted to move forward with taking the next steps toward a consistent fee schedule that defines standards for sweat equity, and specific parameters for staff through Board Policies & Procedures 1330.

In regard to long-term facilities leases (1-10 year commitments with tenants), currently Cambrian School District rents approximately 46,000 square feet in leases, bringing in $1,402,536 annually to the general fund. Cambrian School District averages $2.29 per square foot for its leases, long-term. We work hard to lease space as a means for additional revenue.

Click here to view the CSD facilities usage fee schedule.

Click here to view Ms. Timboe's presentation on facilities usage and short term rentals.

5-Year Strategic Plan Reflection Follow-Up

The Governing Board, Superintendent Dr. Carrie Andrews and staff continued to review the Strategic Plan annual update, focusing on what outcomes were accomplished. This discussion began at the September 19, 2019 Board Meeting, for the 2018-19 school year based on the 2018-23 Strategic Plan Targets. The Board gave input to Superintendent Dr. Carrie Andrews, in particular to Goal #5 of the Strategic Plan and adjusting the metrics of the sub-goals.

Click here to view the Strategic Plan Dashboard.

Click here to view the 5 Year Strategic Plan Goal Progress.

Land Redevelopment

The Board voted to approve the contract with Terra Realty Advisors to investigate the front portion of land at Metzler along Union Avenue and Red Dog Shred, both district-owned properties.

Mr. Scott Sheldon from Terra Realty presented initial details about potential options to develop the Metzler property and/or the Red Dog Shred fire house. He informed the Board that the study will serve as a "road map" for the Board to be further informed on the best path moving forward. The Board was informed if they vote to move forward with the study, it will take up to 120 days for the results to be reported. The Board discussed the contract and determined to approve moving forward to find out more information as a means to bring in additional funds.

A. Metzler: there is one parcel of land that could be of interest for ground leases for potential developers. This parcel could be developed while still maximizing the building spaces currently being leased. The agreement with Terra Realty Advisors states their next steps will be:

1. Obtain a Preliminary Title Report for the property, to ascertain any potential constraints to development.

2. Meet with the City of San Jose Planning Department to discuss allowable uses in the PQP zoning, and process. Discuss potential change and City process to permit a residential development to allow housing: density TBD.

3. Obtain broker opinion of value for land under different scenarios and densities, including ground lease values.

4. Identify potential options for the Board to consider regarding an exchange or ground lease. 5. Identify potential users, developers for the property

B. Red Dog Shred (Fire House): options to consider are leasing the site to a developer for commercial uses, exchange property for a District needed real property asset and/or income property, or a new lease to a retail tenant of the existing building.

Terra Realty Advisors will take the following steps regarding Red Dog Shred:

1. Obtain proposals and engage a civil engineer to determine the property boundaries and location of the existing building.

2. Obtain proposal and engage an architect for a high level review of the condition of the existing building: can it be cost effectively re-used from a structural, ADA compliance and other code issues.

3. Further determine the legal ingress & egress to the site, including available parking and circulation serving the property.

4. Meet with the City of San Jose Planning Department to discuss options for re-use and development including the impact of existing codes on the current building. Impact of parking and circulation on Lucy Lane.

5. Obtaining broker opinion of value for land, land + existing building. Obtain opinion of lease rates for existing building under different scenarios, with projected marketing timelines.

6. Identify potential options for the Board to consider regarding an exchange or ground lease. 7. Identify potential users, developers and tenant for the property.

Attached is the Board requested contract with Terra Realty Advisors to continue with the preliminary investigation of district-owned properties for revenue-generating potential. Click here to view the proposal from Terra Realty. The Board approved the contract, requesting only information as to Metzler A and Red Dog Shred.

Big picture
Big picture

Future Board Agenda Items

Board members can request items for future Board Agenda items and if the majority of the Board approves, it is put on the agenda. Board of Trustees member Mrs. Janet Borrison requested that the Board report at a future meeting on what they learn or take away from their upcoming CA School Board Conference to be held in early December. The Board voted to put this topic on a future agenda.

Click here to view Board Policy on Agenda Meetings and Materials.

Next Board Meeting

The next CSD School Board meeting will be held Thursday, November 7 at 7:00 p.m. at the District Office Professional Development Center, 4115 Jacksol Drive, San Jose, CA 95124. The public is welcome to attend, and we will be honoring our Students of the Month and Good Apples for the month during this meeting.

Open Positions In Cambrian School District

Interested in working within the Cambrian School District? We have openings, in food service, buildings and grounds, noon duty supervisors, resource specials, special education instructional aide, substitute custodian, substitute teachers, substitute food service, substitute special education instructional aide, and special education program specialist. For a complete listing, click here.