7/11/17 GC Minutes – 21st Century Public Academy

July 11, 2017

Members Present:

Chris Velasquez, Vice President
Lori Hagen, Secretary
Phillip Sapien, Member
Art Silva, Member
Kathleen Webb, Member
Members Absent: Virginia Trujillo, President

Guests: Mary Tarango, Principal
Rita Hirschy, COO
Reg Olson, Realtor

Governance Council Called to Order at 6:00 p.m. by Chris Velasquez
Roll Call of Members
• Quorum met – the members in attendance of this Special Meeting of the Governance
Council of 21 st Century Public Academy represents a duly qualified quorum as
specified in its ByLaws.
Approve the Proposed Agenda of five resolutions of Official Business
• a Motion to approve Proposed Agenda of five resolutions by Phil Sapien
• and a Second by Kathleen Webb
• All in favor, all. Opposed none
This is a Special Meeting of the Governance Council of 21 st Century Public Academy and is
being held in full accordance and pursuant to the 21 st Century Public Academy Governance
Council Open Meeting Policy Resolution of 9-1- 2015. All requirements to hold this Special
Meeting of the 21 st Century Public Academy Governance Council have been met.
The Purpose of this Special Meeting of the Governance Council of 21 st Century Public
Academy is to restate previous actions, review, and determination by the Governance
Council of 21 st Century Public Academy in reference to approving the Lease Purchase
Agreement with Meld LLC to occupy the 4300 Cutler Avenue NE location, which occurred at
its regular meeting on May 4, 2017. This Lease Purchase Agreement was forwarded to NM
Public Education Department as required and in accordance with Section 22-26A- 4(A)
NMSA 1978, part of the Public School Lease Purchase Act, Chapter 22, Article 26A NMSA
1978.
As required by Section 22-26A- 6(B) NMSA 1978, part of the Public School Lease Purchase
Act, Chapter 22, Article 26A NMSA 1978, the Governance Council of 21 st Century Public
Academy has by review, discussion, and resolutions over the past two years (since April 3,
2015) have met these requirements of the State of New Mexico Statues and will Restate
Approved
Minutes

these requirements by resolution at this Special Meeting of the Governance Council of 21 st
Century Public Academy.
I. ACTION ITEM

21 st Century Public Academy

Governance Council Resolution No. 7-11- 2017 #1

1 st Resolution: Make a Determination of the Necessity of Acquiring the Proposed
Location of 4300 Cutler Avenue NE through a Lease Purchase Agreement
Be It Resolved that 21 st Century Public Academy Governance Council has made the
determination that it is necessary for the 21 st Century Public Academy Charter School to be
located in a Permanent Location.
Whereas, the location of 4300 Cutler Avenue NE best fulfills the Permanent Location
determination; and will allow for continued growth of the student population and the
proper, safe, and nurturing environment that will promote academic success for its
students.
The Governance Council for 21 st Century Public Academy stipulates the following occurred:
This determination was made by establishing a Long Range Planning Committee in
April of 2015 to identify the long-range direction and goals for 21 st Century Public
Academy Charter School and once a permanent facility determination was concluded,
the Governance Council established a School Building Strategy Committee in
November of 2015 and that this committee reported monthly to the 21 st Century
Public Academy Governance Council.
That for the school year that started in August of 2015 two additional portable building
had to be added to accommodate the existing student population.
That the existing building location lease was scheduled to expire in the summer of
2017.
That Albuquerque Public Schools had not been able to produce a satisfactory
alternative location for the school after seven years and that Albuquerque Public
Schools, itself, did not have any sites available for relocation of 21st Century Public
Academy.
That the School Building Strategy Committee toured multiple possible locations
throughout the Albuquerque area.
And that the site at the 4300 Cutler Avenue NE location best fulfilled the requirements
as specified in the Charter filed for the operation of 21 st Century Public Academy with
the State of New Mexico, requiring ready access to Public Transportation to facilitate
Off Site Instructional Outings, the potential for continued growth of the Charter
School, and a safe, nurturing environment to promote academic success for its
attending students.
Fiscally the 21 st Century Public Academy Governance Council analyzed at its regular
meetings of December 2015, February 2016, April 2016 the funding sources and
types of arrangements (lease versus lease purchase versus Albuquerque Public
Schools provided facilities) with a final resolution vote occurring in August 2, 2016 to
pursue the Lease Option Purchase of the 4300 Cutler Avenue NE site location.
Results of Special Meeting

• A Motion on the Determination of the Necessity of Acquiring the Location of the
4300 Cutler Avenue NE through a Lease Purchase Agreement by Lori Hagen
• A Second by Phil Sapien
• All in Favor, all. Opposed, none

THE RESOLUTION IS APPROVED
21 st Century Public Academy

Governance Council Resolution No. 7-11- 2017 #2

2 nd Resolution: Determine the Estimate Cost of the proposed Building Location of
4300 Cutler Avenue NE
Be It Resolved that 21 st Century Public Academy Governance Council has evaluated and
made the determination an Estimated Cost for the Acquisition of the property of the
building and real property and the renovations of any existing building to conform to
Federal and State of New Mexico Public School codes and standards not to exceed a limit of
8.5 million dollars.
Fiscally the 21 st Century Public Academy Governance Council analyzed at its regular
meetings of December 2015, February 2016, April 2016 the funding sources and
types of arrangements (lease versus lease purchase versus Albuquerque Public
Schools provided facilities) with a final resolution vote occurring in August 2, 2016 to
pursue the Lease Option Purchase of the 4300 Cutler Avenue NE site location.
Estimated costs of proposed buildings or locations was part of this comprehensive
review.

Results of Special Meeting
• A Motion on the Determination of the Estimated Costs associated with Acquiring a
Permanent Location by Kathleen Webb
• A Second by Phill Sapien
• All in favor, all, Opposed none

THE RESOLUTION IS APPROVED

21 st Century Public Academy

Governance Council Resolution No. 7-11- 2017 #3

3 rd Resolution: Review a Summary of Terms of the Proposed Lease Purchase
Agreement for the 4300 Cutler Avenue NE
Be It Resolved that 21 st Century Public Academy Governance Council has fully reviewed the
entire Lease Purchase Agreement prior to forwarding it, as statutes require, to the New
Mexico Public Education Department.
That at its regular meeting of the Governance Council for 21 st Century Public Academy
occurring on May 4, 2017 a full review of the proposed Lease Purchase Agreement
between Meld LLC (the current property owners) and 21 st Century Public Academy
(the charter school). It was further explained that attorneys for both the property
owner and the charter school had actively been involved in the drafting of this
Proposed Lease Purchase Agreement with direct attention and wording placed to be
as compliant with the current instructions and statutes by the New Mexico Public
Education Department as was possible to include.
That a summary of Terms of the Proposed Lease Purchase Agreement has been
produced and is included in this resolution.
That a vote by the Governance Council for 21 st Century Public Academy occurred on
May 4, 2017 after the full and thorough review of the entire Proposed Lease Purchase
Agreement between Meld LLC (the current property owners) and 21 st Century Public
Academy (the charter school) and that no changes or alterations were suggested or
required of this Proposed Lease Purchase Agreement legal document.
That the Governance Council for 21 st Century Public Academy authorized its Council
President to sign the Proposed Lease Purchase Agreement on behalf of 21 st Century
Public Academy.
And that the Proposed Lease Purchase Agreement be forwarded to the New Mexico
Public Education Department as required by statutes (section 22-26A- 4(B) NMSA
1978, part of the Public School Lease Purchase Act, Chapter 22, Article 26A NMSA
1978), which occurred on June 1, 2017 for its review and approval.

Attachment for Resolution #3

Summary of Terms of the Proposed Lease Purchase Agreement

For 4300 Cutler Avenue NE

Current Owner: Meld LLC
Charter School: 21 st Century Public Academy
Commencement Date: August 1 st , 2017 or on completion of building improvements

Purchase Cost of Building/Real Property: $5,500,000.00 (price cost fixed if no additional
improvement/construction cost overruns beyond estimate)
Estimated Monthly Payment: $36,591.64 (to be reassessed if anticipated construction costs
exceed estimates)
Purchase Cost Interest Rate: 7% per year
Term of Monthly Payments: 30 years
Addendum 3: the current owner will perform all necessary renovations and construction to
bring the current building into compliance with the NMPSFA requirements for a charter
school, and if actual construction cost exceed estimate that an adjustment to the
Proposed Lease Purchase Agreement final Purchase Cost (Base Cost plus Construction
Cost) is required and will change estimated monthly payment amount
a 1-year warranty exists on all Construction for defects or workmanship
Addendum 5: a 30-year schedule of estimated monthly payments fulfilling the purchase
cost of the Proposed Lease Purchase Agreement within the maximum 30-year period
Part C Statement by the Governance Council for 21 st Century Public Academy that entering
into this Proposed Lease Purchase Agreement is in the Best Interest of the charter school
as required by Statutes by the New Mexico Public Education Department
That this Lease Purchase Agreement will become terminated upon non-appropriation of
funds
That the Governance Council for 21 st Century Public Academy Charter School is not aware
of any current or pending Legal actions
That the Governance Council for 21 st Century Public Academy Charter School will
appropriate into its annual budget process sufficient funds to fulfill this Proposed Lease
Purchase Agreement each year
That a Security Deposit must be made to the Owner of the property (Meld LLC) in the
amount of $10,000.00 and that amount must be maintained each month even if the owner
withdrawals from this account for agreement related expenses
That there is an Option to Purchase the Building and related Real Property by the School in
the amount of $1.00 within the terms of this Proposed Lease Purchase Agreement
That the Closing Costs for the Purchase of the Building and related Real Property shall be
split by both parties equally
That there is no Obligation to Purchase the Building and related Real Property by 21 st
Century Public Academy Charter School
That 21 st Century Public Academy Charter School is NOT required to establish a Repair and
Replacement Fund
That 21 st Century Public Academy Charter School is responsible solely for all Utilities and
related required deposits
That 21 st Century Public Academy Charter School is responsible for maintaining the “Public
Property” status for exemption from County/Local property taxes or must pay said
Property Taxes if levied
That 21 st Century Public Academy Charter School is responsible for maintaining Insurance
Coverage (Liability, Structural, Flood, Earthquake) per the requirements of NMPSIA and
name both owner and charter school as co-insured.

Results of Special Meeting
• A Motion on the Review of the entire Proposed Lease Purchase Agreement legal
document associated with acquiring the Location of the 4300 Cutler Avenue NE
by the 21 st Century Public Academy Governance Council by Lori Hagen

• A Second by Kathleen Webb
• All in favor, all. Opposed, none

THE RESOLUTION IS APPROVED

21 st Century Public Academy

Governance Council Resolution No. 7-11- 2017 #4

4 th Resolution: Identify the Source (or Sources) of Funding to Enter Into a Lease
Purchase Agreement for the 4300 Cutler Avenue NE
Be It Resolved that 21 st Century Public Academy Governance Council restates that it has
fully reviewed and identified funding sources to enter into a Proposed Lease Purchase
Agreement for the 4300 Cutler Avenue NE building and real property included.
That Source or sources of Funding to enter into a Proposed Lease Purchase Agreement
for the 4300 Cutler Avenue NE location were presented to the 21 st Century Public
Academy Governance Council over a series of regular meetings on December 2015,
February 2016, April 2016, August 2016, November 2016, December 2016, February
2017, March 2017, April 2017, and with a final review and vote to approve the entire
proposed Lease Purchase Agreement including funding sources on May 4, 2017.
The details of those funding sources are:
1) A MOU with Albuquerque Public Schools to access funds from the 2010 Mill
Levy election for the amount of $1,583,258.00.
2) Lease Reimbursement Funds, application submitted annually to the State of
New Mexico.
3) Account 31600, HB-33 funds, with a current balance of $588,710.00.
4) Account 31701, SB-9 funds, with a current balance of $171,897.00.
5) HB-33 funds were re-established in the 2016 election for 5 years of
additional funds for an approximate revenue stream of $2,000,000.00 to the
21 st Century Public Academy over the next five years.

That Source or sources of Funding to enter into a Proposed Lease Purchase Agreement
for the 4300 Cutler Avenue NE location were presented by a Memorandum dated June
1, 2017 and submitted to the New Mexico Public Education Department.

Results of Special Meeting
• A Motion on the Review/Identify of the Funding Source or Sources for the
Proposed Lease Purchase Agreement by Phil Sapien
• A Second by Lori Hagen
• All in favor, all. Opposed none

THE RESOLUTION IS APPROVED

21 st Century Public Academy

Governance Council Resolution No. 7-11- 2017 #5

5 th Resolution: Determine that a Lease Purchase Agreement is in the Best Interest of
21 st Century Public Academy Charter School.
Be It Resolved that 21 st Century Public Academy Governance Council has made the
determination that a Lease Purchase Agreement is in the Best Interest of 21 st Century
Public Academy Charter School.
The Governance Council for 21 st Century Public Academy restates that after thorough and
comprehensive determination that the Lease Purchase Agreement was and is considered
the Best Approach for 21 st Century Public Academy to acquire a Permanent Facility and
Location:
This determination was made by establishing a long range planning committee in April
of 2015 to identify the long range direction and goals for 21 st Century Public Academy
Charter School and once a permanent facility determination was concluded, the
Governance Council established a School Building Strategy Committee in November of
2015 to facilitate the information and selection of a permanent site location and that
this committee reported monthly to the 21 st Century Public Academy Governance
Council.
That the existing building location lease was scheduled to expire in the summer of
2017.
That Albuquerque Public Schools had not been able to produce a satisfactory
alternative location for the school after seven years and that Albuquerque Public
Schools, itself, did not have any sites available for relocation of 21 st Century Public
Academy.
That more than twenty-four Governance Council meetings have occurred where
continuing updates and reports have been made from Long Range Planning
Committee, The School Building Strategy Committee and the Finance Committee to
the 21 st Century Public Academy Governance Council in regards to determining the
Best Course of action for 21 st Century Public Academy Charter School to secure a
permanent location and how to undertake the financing of this goal.
That the 21 st Century Public Academy Governance Council has thoughtfully and
thoroughly reviewed the advantages and disadvantages of Lease versus Lease
Purchase options versus Albuquerque Public School System providing a facility for
attaining a permanent location for the Charter School.
That the 21 st Century Public Academy Governance Council approved the Proposed
Lease Purchase Agreement as submitted to the State of New Mexico Public Education
Department with wording on page 29 of Part C, Item III of the Proposed lease
Purchase Agreement:
“School has determined it is in the best interests of School to lease, with an option to purchase, the
Premises from Landlord pursuant to this Lease, and the “Board” has duly authorized entering into
this Lease; and Landlord has determined it is in the best interests of Landlord to lease, with an

option to purchase, the Premises to School pursuant to this Lease, and that Landlord has duly
authorized entering into this Lease.”

Results of Special Meeting
• A Motion on the Determination that a Lease Purchase Agreement is in the Best
Interest of 21 st Century Public Academy Charter School by Kathleen Webb
• A Second by Art Silva
• All in favor, all. Opposed, none.

THE RESOLUTION IS APPROVED

II. OPEN FORUM

No public comment was presented at this Open Special Meeting of the Governance
Council of 21 st Century Public Academy on July 11, 2017.
Chris Velasquez thanked NMDI for the use of their facilities for this meeting.

Next Meeting
• Tuesday, July 11, 2017
Motion to Adjourn made by Lori Hagen
• Seconded by Kathleen Webb
• All in favor, all. Opposed none.
Meeting Adjourned at 6.25 p.m.

Governance Council Resolution No. 7-11- 2017 #1

1 st Resolution: Make a Determination of the Necessity of Acquiring the Proposed
Location of 4300 Cutler Avenue NE through a Lease Purchase Agreement
Be It Resolved that 21 st Century Public Academy Governance Council has made the
determination that it is necessary for the 21 st Century Public Academy Charter School to be
located in a Permanent Location.
Whereas, the location of 4300 Cutler Avenue NE best fulfills the Permanent Location
determination; and will allow for continued growth of the student population and the
proper, safe, and nurturing environment that will promote academic success for its
students.
Whereas, a Lease Purchase Agreement is the best fiscal solution for 21 st Century Public
Academy Charter School
The Governance Council for 21 st Century Public Academy stipulates that the following
occurred:
This determination was made by establishing a Long Range Planning Committee in
April of 2015 to identify the long-range direction and goals for 21 st Century Public
Academy Charter School and once a permanent facility determination was concluded,
the Governance Council established a School Building Strategy Committee in
November of 2015 and that this committee reported monthly to the 21 st Century
Public Academy Governance Council.
That for the school year that started in August of 2015 two additional portable building
had to be added to accommodate the existing student population.
That the existing building location lease was scheduled to expire in the summer of
2017.
That Albuquerque Public Schools had not been able to produce a satisfactory
alternative location for the school after seven years and that Albuquerque Public
Schools, itself, did not have any sites available for relocation of 21 st Century Public
Academy.
That the School Building Strategy Committee toured multiple possible locations
throughout the Albuquerque area.
And that the site at the 4300 Cutler Avenue NE location best fulfilled the requirements
as specified in the Charter filed for the operation of 21 st Century Public Academy with
the State of New Mexico, requiring ready access to Public Transportation to facilitate
Off Site Instructional Outings, the potential for continued growth of the Charter
School, and a safe, nurturing environment to promote academic success for its
attending students.
Fiscally the 21 st Century Public Academy Governance Council analyzed at its regular
meetings of December 2015, February 2016, April 2016 the funding sources and
types of arrangements (lease versus lease purchase versus Albuquerque Public
Schools provided facilities) with a final resolution vote occurring in August 2, 2016 to
pursue the Lease Option Purchase of the 4300 Cutler Avenue NE site location.

21 st Century Public Academy

Governance Council Resolution No. 7-11- 2017 #2

21 st Century Public Academy

Governance Council Resolution No. 7-11- 2017 #3

Attachment for Resolution #3

Summary of Terms of the Proposed Lease Purchase Agreement

For 4300 Cutler Avenue NE

Current Owner: Meld LLC
Charter School: 21 st Century Public Academy
Commencement Date: August 1 st , 2017 or on completion of building improvements
Purchase Cost of Building/Real Property: $5,500,000.00 (price cost fixed if no additional
improvement/construction cost overruns beyond estimate)
Estimated Monthly Payment: $36,591.64 (to be reassessed if anticipated construction costs
exceed estimates)
Purchase Cost Interest Rate: 7% per year
Term of Monthly Payments: 30 years
Addendum 3: the current owner will perform all necessary renovations and construction to
bring the current building into compliance with the NMPSFA requirements for a charter
school, and if actual construction cost exceed estimate that an adjustment to the
Proposed Lease Purchase Agreement final Purchase Cost (Base Cost plus Construction
Cost) is required and will change estimated monthly payment amount
a 1-year warranty exists on all Construction for defects or workmanship
Addendum 5: a 30-year schedule of estimated monthly payments fulfilling the purchase
cost of the Proposed Lease Purchase Agreement within the maximum 30-year period
Part C Statement by the Governance Council for 21 st Century Public Academy that entering
into this Proposed Lease Purchase Agreement is in the Best Interest of the charter school
as required by Statutes by the New Mexico Public Education Department
That this Lease Purchase Agreement will become terminated upon non-appropriation of
funds
That the Governance Council for 21 st Century Public Academy Charter School is not aware
of any current or pending Legal actions
That the Governance Council for 21 st Century Public Academy Charter School will
appropriate into its annual budget process sufficient funds to fulfill this Proposed Lease
Purchase Agreement each year
That a Security Deposit must be made to the Owner of the property (Meld LLC) in the
amount of $10,000.00 and that amount must be maintained each month even if the owner
withdrawals from this account for agreement related expenses
That there is an Option to Purchase the Building and related Real Property by the School in
the amount of $1.00 within the terms of this Proposed Lease Purchase Agreement
That the Closing Costs for the Purchase of the Building and related Real Property shall be
split by both parties equally
That there is no Obligation to Purchase the Building and related Real Property by 21 st
Century Public Academy Charter School
That 21 st Century Public Academy Charter School is NOT required to establish a Repair and
Replacement Fund
That 21 st Century Public Academy Charter School is responsible solely for all Utilities and
related required deposits
That 21 st Century Public Academy Charter School is responsible for maintaining the “Public
Property” status for exemption from County/Local property taxes or must pay said
Property Taxes if levied
That 21 st Century Public Academy Charter School is responsible for maintaining Insurance
Coverage (Liability, Structural, Flood, Earthquake) per the requirements of NMPSIA and
name both owner and charter school as co-insured.

21 st Century Public Academy

Governance Council Resolution No. 7-11- 2017 #4

21 st Century Public Academy

Governance Council Resolution No. 7-11- 2017 #5

5 th Resolution: Determine that a Lease Purchase Agreement is in the Best Interest of
21 st Century Public Academy Charter School.
Be It Resolved that 21 st Century Public Academy Governance Council has made the
determination that a Lease Purchase Agreement is in the Best Interest of 21 st Century
Public Academy Charter School.
The Governance Council for 21 st Century Public Academy restates that after thorough and
comprehensive determination that the Lease Purchase Agreement was and is considered
the Best Approach for 21 st Century Public Academy to acquire a Permanent Facility and
Location:
This determination was made by establishing a Long Range Planning Committee in
April of 2015 to identify the long range direction and goals for 21 st Century Public
Academy Charter School and once a permanent facility determination was concluded,
the Governance Council established a School Building Strategy Committee in
November of 2015 to facilitate the information and selection of a permanent site
location and that this committee reported monthly to the 21 st Century Public Academy
Governance Council.
That the existing building location lease was scheduled to expire in the summer of
2017.
That Albuquerque Public Schools had not been able to produce a satisfactory
alternative location for the school during the past seven years and that Albuquerque
Public Schools, itself, did not have any sites available for relocation of 21 st Century
Public Academy.
That more than twenty-four Governance Council meetings have occurred where
continuing updates and reports have been made from Long Range Planning
Committee, The School Building Strategy Committee and the Finance Committee to
the 21 st Century Public Academy Governance Council in regards to determining the
Best Course of action for 21 st Century Public Academy Charter School to secure a
permanent location and how to undertake the financing of this goal.
That the 21 st Century Public Academy Governance Council has thoughtfully and
thoroughly reviewed the advantages and disadvantages of Lease versus Lease
Purchase options versus Albuquerque Public School System providing a facility for
attaining a permanent location for the Charter School.
That the 21 st Century Public Academy Governance Council approved the Proposed
Lease Purchase Agreement as submitted to the State of New Mexico Public Education
Department with wording on page 29 of Part C, Item III of the Proposed Lease
Purchase Agreement:
“School has determined it is in the best interests of School to lease, with an option to purchase, the
Premises from Landlord pursuant to this Lease, and the “Board” has duly authorized entering into
this Lease; and Landlord has determined it is in the best interests of Landlord to lease, with an
option to purchase, the Premises to School pursuant to this Lease, and that Landlord has duly
authorized entering into this Lease.”

21st Century Public Academy – New Mexico Charter Elementary & Middle School