Grand jury to district: Buy Blue Shield building soon

Unless the district buys it in 2012, it will be stuck inside a long lease.
By LIZETH CAZARES
Created: 07/03/2009 02:30:34 AM PDT

The 2008-09 Yolo County grand jury final report says the Woodland Joint Unified School District put itself in a costly position by approving the lease agreement of the former Blue Shield building.

The latest grand jury report, released on June 30, follows up from last year's recommendations and continues its investigation on the district's attempt to purchase its new central office, formerly known as the Blue Shield building.

WJUSD came under scrutiny in late 2007, when the school board began finalizing plans to purchase the $5.4 million central office building. Many in the community questioned whether it was the right time, price or building to purchase. The 2008 grand jury report also stated concerns about the board's transparency and the negotiating process of the purchase.

The latest report shows the board made efforts to educate itself about the Brown Act compliance, as previously recommended, but noted that the lease and purchasing agreement of the building was not desirable.

Since last year, trustees made an effort to uphold Brown Act regulations by initiating a policy mandating open meetings training every two years, and within six months of being sworn in as a member.

"As of the date of the meeting, the board had not yet established these training requirements as part of their written policy," the report stated.

President Rosario Ruiz-Dark said that, in fact, they have made it a part of the policy.

The report said the district is in "an untenable and very costly position" by approving the lease.

According to the lease, the board has four opportunities to purchase the building. If the board doesn't buy the building, it must lease the building until 2039 unless a new lease or purchase is negotiated.

The current option the board is looking at, according to the report, is purchasing the building between Jan. 1, 2012 through March 31, 2012, at $5.43 million, plus $2 million in projected costs.

"It is imperative that the board utilize the most effective and immediate funding mechanism to ensure that the property known as the Blue Shield building be purchased under the terms of option 3," it stated.

One board voted to the lease-purchase agreement on May 8, 2008. The board later attempted to buy Certificates of Participation, but eventually decided to table the purchase because of the growing interest rates.

Ruiz-Dark said that the board's goal is still to purchase the building.

"We really can't right now because financing is impossible," she said. "But that is still our goal."

They are looking to finance the building through COPs or through money from a future bond which will be up for vote in 2010. The bond will pay for the building as well as multiple projects throughout the district.

The board has not yet discussed the findings, said Ruiz-Dark, but they are planning to set it as an agenda item during an August board meeting.


http://www.dailydemocrat.com/ci_12747854?source=most_viewed