Community > Bonds and Construction > Measure F > Minutes

SJUSD Measure F

Citizens' Bond Oversight Committee

MINUTES

(Approved)

January 30, 2006

District Headquarters

855 Lenzen Avenue, San Jose

1.Call to Order

Chairman Rice called the meeting to order at 6:05 p.m

2.Roll Call: The requirements for a quorum were met.
Committee Members Present: Allen Rice, Greg West, David Persselin, Stephen Bantillo, Dave Ferguson, David Ginsborg, Ed Ikeda, Paul Polk, Alan Williams, Clark Williams.

Committee Members Absent: Wolde Loul Kassa.

Board of Education Representatives to the Committee: Veronica Lewis.

SJUSD Staff Representatives Present: Steve Adamo, Florence Eng, Don Iglesias, Ann Jones, Ada Poon, Ty Smith and Ty Williams.

Program Management: Susan Davenport, Bob Fuselier, Mike Hiddelson and Patricia Nguyen of Kitchell CEM.

3. Adopt Agenda

Proposed items 8.4 and 8.5 were moved to the top of the New Business section of the agenda. It was moved (Bantillo) and seconded (Polk) to adopt the revised agenda. Motion passed unanimously.

4. Approval of Minutes

Mr. Rice noted that the Minutes were missing web links to some of the exhibits and requested that those links be included. It was moved (Persselin) and seconded (Ikeda) to accept the Minutes of the December 12 meeting, with the missing links to be included, and post them to the website. Motion passed unanimously.

5.Public Comment. None.

6.Consent Calendar – Items marked (*) (Items 9.2 and 9.3)

7.Special Business.

7.1 Report on Status of CBOC Membership

Veronica Lewis reported that Clark Williams has been appointed to serve out a current CBOC term ending June 30, 2006. Ms. Lewis then summarized material regarding proposed revisions to the District’s Administrative Regulations that will be presented as an information item on the Board’s February 2, 2006, agenda. The key proposals include reducing the committee size to between seven and eleven members and selecting new members only every two years or when the membership drops to seven.

It was moved (West) and seconded (C. Williams) to accept the Report on Status of CBOC Membership and include the cover sheet of the report, which had not been previously circulated, as (Exhibit 7.1) to the Minutes. Motion passed unanimously .

8.New Business

8.1 Measure F Staff Report

Ty Williams summarized the report (Exhibit 8.1) on anticipated use of Measure C funds to augment some Measure F scopes in science improvements, synthetic turf, and core landscaping.

It was moved (Bantillo) and seconded (Ikeda) to accept the Measure F Staff Report and include the report, which had not been previously circulated, as (Exhibit 8.1) to the Minutes. Motion passed unanimously.

8.2 (*) Measure F Project Overview and Status.

       Susan Davenport summarized the Program Status Report (Exhibit 8.2.1), the Draft Project Reconciliation Report (not included as an exhibit), the Project Contingency Report (Exhibit 8.2.3), the I.P. Scope Revision Report (Exhibit 8.2.4), the Draft Multi-Funded Project Report (not included as an exhibit), the Board of Education Report (Exhibit 8.2.5) , and the School Construction and Facilities Overview (Exhibit 8.2.6). Ms. Davenport then showed the committee how these reports link together using an example project.

The committee discussed whether the Reconciliation Report should in the future include in-process reconciliations, and the consensus was that the report would be most useful if it only presents completed reconciliations. In response to question from Mr. Ginsborg about the appropriate level of “soft” project costs shown in the Reconciliation Report, Bob Fuselier of Kitchell explained that the industry standard for multiple-prime contractor projects, such as the District’s, ranges from 22% to 28% of total project costs.

CBOC members then discussed whether to delay the 2005 I.P. Revision until the scope augmentations from Measure C funds, discussed in 8.1, could be included. Ty Williams noted that the specifics of those augmentations would not be known for several months, so Alan Williams moved that the 2005 I.P. Revision be published in March. The motion was seconded (West) and passed unanimously.

It was moved (A. Williams) and seconded (West) to accept the Measure F Project Overview and Status, with the stipulation that the draft reports would not be included as exhibits to the minutes. Motion passed unanimously.
At 9:00 p.m. Mr. Ferguson departed and the quorum was re-confirmed by Mr. Persselin.

8.3 Measure F Quarterly Financial Report

Ada Poon summarized the Quarterly Financial Report (Exhibit 8.3). It was moved (Ginsborg) and seconded (Ikeda) to accept the Quarterly Financial Report. Motion passed unanimously.

8.4 Presentation of Measure F Performance Audit

Curtis Mathews and Domingo Laboy of Moss Adams LLP, presented an overview of their audit activities and of the Measure F Performance Audit for the fiscal year ended June 30, 2005 (Exhibit 8.4). The auditors gave a “clean” opinion, and highlighted that prior year recommendations had been implemented. Notable among these was the District’s construction manual, which the auditors recognized as outlining good procedures which the District has been following. Recommendations for improvement include: better identification in the I.P. of funding sources other than Measure F, implementation of a change order checklist, and improvement of the CBOC website to better summarize important information.

One of the prior year recommendations that has been implemented is obtaining terms for a “right to audit” clause, which can be included in new contracts. CBOC members inquired about the extent to which the right to audit clause is being included in new contracts, and Ty Williams explained that it is not appropriate for small or lump-sum contracts. In the case of large lump-sum contracts, the District instead requires bidders to submit bid estimate data.

Clark Williams suggested that the performance audit scope for the current fiscal year should include an examination of change orders and inspection costs.

It was moved (Ginsborg) and seconded (A. Williams) to accept the Performance Audit. Motion passed unanimously.

8.5 Presentation of Measure F Financial Audit

Linda Todd of Vavrinek, Trine, Day & Co., LLP, presented an overview of the Annual Financial Report for fiscal year ending June 30, 2005 (Exhibit 8.5). The auditor gave a “clean” opinion and noted that the Measure F financial statements have been prepared in accordance with generally accepted accounting principals (GAAP).

Mr. West inquired if the financial audit included an examination to determine if any of the staff costs charged to Measure F funds were actually operating costs that are ineligible for reimbursement from bond proceeds. Ms. Todd explained that such an examination is not generally part of the financial audit, and Mr. West suggested that it be included in the performance audit scope of services for the current fiscal year.

It was moved (Polk) and seconded (West) to accept the Financial Audit. Motion passed unanimously.

9. CBOC Member & Sub-Committee Reports.

9.1 (*) Chair's Report. This report (Exhibit 9.1) was accepted on consent agenda.

9.2 (*) CBOC Web Liaison. This report (Exhibit 9.2) was accepted on consent agenda.

9.3 Report from CBOC Web Page Director. This report (Exhibit 9.3) was accepted on consent agenda.

9.4 Report from Annual Report Committee.

Mr. Ginsborg presented a draft of the Annual Report, which summarizes for each school site the applicable ballot language the budget and schedule by major project type. Mr. Rice noted that the cover letter for the report will include a link to the CBOC website, and Don Iglesias indicated that the District and individual school websites could also include links. CBOC members discussed additional avenues for disseminating the Annual Report throughout the community.
In addition to the cover letter, the draft will be revised to include a glossary, add the as-of date to the expenditures column, and discuss any relevant school closing or consolidation in the “other information” sections.
It was moved (West) and seconded (Ginsborg) to publish the Annual Report, subject to: (i) confirmation of the ad hoc committee to Mr. Rice that the report is complete, (ii) provision by the District to Mr. Rice of appropriate website information, and (iii) Mr. Rice’s inclusion of that information in the cover letter. Motion passed unanimously.

9.5 Referrals to Independent Legal Council. No referrals.

9.6 Other. Introduction of Ty Smith, a new member of the School Construction department.

    10. Items for Future Agendas. No items

    11. Adjournment

Meeting adjourned at 9:20 p.m. Next meeting is 6:00 p.m., April 10, 2006, at San Jose High Academy, 275 N. 24th Street, San Jose.