NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A9932A
SPONSOR: Mayer
 
TITLE OF BILL: An act establishing the Yonkers city school district
joint schools construction and modernization act; and to amend the
education law and the public authorities law, in relation to implement-
ing such joint schools construction and modernization act
 
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this legislation is to provide the City of Yonkers and
the Yonkers City School District with increased flexibility to meet the
needs of its school children by providing alternative financing mech-
anisms. This bill would ensure access to adequate capital for the
financing of new school facilities and the modernization of existing
school facilities in Yonkers.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 of the bill declares that the act shall be called "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 build-
ings 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 Yonk-
ers is unable to pursue a modernization program without special legis-
lation 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 mech-
anism 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 super-
intendent 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 under-
taken 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 peri-
od 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 effi-
ciency, incorporating systems and approaches which provide maximum
facility value using the best current development, construction, leas-
ing, 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 Arti-
cle 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 costs 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 proc-
ess, 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 finan-
cial 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 stan-
dards 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 Utiliza-
tion 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 oper-
ate and maintain projects in the same manner as existing school build-
ings. 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, amend-
ments, 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 Educa-
tion 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 capi-
tal.
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 Depart-
ment to ensure increased accountability.
 
PRIOR LEGISLATIVE HISTORY:
New Bill
 
FISCAL IMPLICATIONS:
Undetermined.
 
EFFECTIVE DATE:
This bill shall take effect immediately.