Bonds and Construction - Measure F - Minutes

SJUSD Measure F
Citizens Bond Oversight Committee

MINUTES
Approved

March 8, 2004
Pioneer High School
1290 Blossom Hill Road, San Jose

The Committee gathered at 5:30 and was given a guided tour of the Pioneer High School campus by John Cimino, focusing on work to be done under Measure F.

1. Call to Order
Chairman Fadness called the meeting to order at 6:30 p.m.

2. Roll Call: The requirements for a quorum were met.
Committee Members Present: Stephen Bantillo, Jill Escher, Dave Fadness, Dave Ferguson, Allen Rice, Al Roosma, Fred Schorr, C.C. Su, Charles Tate, Greg West.

Committee Members Absent: Sally Souders, Alan Williams.
Committee Member Al Roosma is moving out of the District and therefore is resigning as of the end of tonight's meeting.

Board of Education Representatives to the Committee Present: Veronica Lewis and Carol Myers.

SJUSD Staff Representatives Present: John Cimino, Pat Day, Florence Eng, Jerry Matranga, Pete Pearne, Ada Poon, Rosemarie Pottage, and Ty Williams.

Others Present: Dave Giannelli, Bob Fuselier, Susan Davenport, all of Kitchell CEM; Phil Henderson, District Counsel; Barbara Lepiane, Pioneer Principal.

3. Adopt Agenda
It was moved (Tate) and seconded (Bantillo) to adopt the agenda. Motion passed unanimously.

4. Approval of Minutes
It was moved (West) and seconded (Su) to approve the minutes of the February 9th meeting. Motion passed unanimously.

5. Public Comment
There was no public comment.

6. Consent Calendar - Items marked (*) [Items 9.1, 9.2, 9.3, and 10.2]
Item 9.1 was pulled from the consent calendar at the request of Mr. Tate. Item 9.3 was pulled at the request of Mr. Rice.
It was moved (Rice) and seconded (Su) to approve the remaining items on the consent calendar. Motion passed unanimously.

7. Old Business (There was no old business pending)

8. New Business

8.1 Using Measure F funds to pay for Annual Financial & Performance Audits.
Jerry Matranga spoke to the District's intent to use Measure F funds to pay for the Measure F Performance Audits. He distributed a letter from the Legal Firm Miller Brown and Dannis which discussed the item (Exhibit A), stating a justification for using Measure F funds in this way. Mr. Matranga explained that the District did not intend to use Measure F funds for the Financial Audits as the regular District audit would of necessity include Measure F funds.
It was moved (West) for the CBOC to recommend not using Measure F funds to pay for the Performance Audit. Motion died for lack of a second. It was moved (Schorr) for the CBOC to recommend using Measure F funds to pay for the Performance Audit. Motion died for lack of a second. Mr. Matranga will inform the CBOC of other districts that have used Measure F funds for this purpose.

It was moved (Tate) and seconded (Rice) to accept staff's report. Motion passed unanimously.

8.2 CBOC's role in selecting auditor for Annual Financial & Performance Audits.
Mr. Matranga stated that the District would like the same level of participation in the selection process as last year. District and Committee's intention is to carry forward the same Performance Auditor used last year. The District will not be doing any selection activities for Financial Auditor until next fiscal year. Therefore appointments of CBOC members to the Joint Committee will take place at a future meeting after the CBOC is reconstituted in July.
The Chair asked the CBOC members Ferguson and Schorr, who serve on the Audit Steering Committee, to report back at our next meeting with recommendations as to more clearly defining the scope of work to be performed in the Performance Audit.

It was moved (West) and seconded (Escher) to accept the report. Motion passed unanimously.

9. District Reports

9.1 Administration Mr. Matranga distributed his report (Exhibit B) which had been sent to the CBOC members in advance of the meeting. This report includes a letter (Exhibit C) to Kristin Baker, Santa Clara County Deputy Counsel, in response to her February 20 letter regarding the District's procurement practices.

A process and application for appointment to the CBOC was also distributed for members' perusal (Exhibit D).

Mr. Fadness raised the topic of establishing staggered terms for CBOC members. Upon informally polling existing members, it was found that four do not intend to apply for re-appointment; four said they'd be interested in applying for either one or two years; and one would prefer a two-year extension. Mr. Rice, Mr. Tate and Mr. Bantillo were appointed as an ad hoc committee to review CBOC by-laws and asked to report back at our April 12 CBOC meeting. Specific attention will be drawn to initiating staggered terms and to defining tenure for members appointed to fill unexpired terms.

There was a brief discussion of the impact of Proposition 55 on the capital funding for the District. It was explained that the District's aggressive and rapid pursuit of state funding left it without much eligibility ($5.2- to $5.6-million) and that money would come with many strings attached, so it would need to be careful about which projects use any of those funds. It was moved (Roosma) and seconded (Ferguson) to accept the report. Motion passed unanimously.

Mr. Matranga agreed to do a presentation on the probable impacts of Proposition 55 at an upcoming CBOC meeting.

9.2 Program. Mr. Williams's report (Exhibit E) was accepted under the Consent Calendar.

9.3 Finance. Mr. Rice asked Ms. Poon several questions pertaining to the format and content of the Financial Reports. He was concerned in particular that, almost universally, the reports lacked the approved budget figures that should have been carried forward from the Implementation Plan. Mr. Matranga indicated that Staff intended to replace the current monthly reports with a quarterly reporting system in future. Staff will present a recommendation for reporting to the CBOC at our April 12 meeting. The submitted reports are Exhibits F1 through F34.

It was moved (Tate) and seconded (Rice) to accept the Finance report. Passed unanimously.

9.4 Overview and Status Report on 2004-05 Measure F Projects. Susan Davenport and Bob Fuselier of Kitchell gave a presentation on these projects (Exhibit G). They also distributed a schedule for these projects (Exhibit H). Ms. Davenport committed to having a document showing changes to the Implementation Plan for the next meeting. It was moved (West) and seconded (Tate) to accept the report. Motion passed unanimously.

9.5 Overview of the Synthetic Fields and Track Projects. Derek McKee of Beals Sport presented the plan and status for these projects (Exhibit I). It was moved (Tate) and seconded (West) to accept the report. Motion passed unanimously.


10. CBOC Reports

10.1 Chair's Report. Chair's written Report (Exhibit J) was accepted. With the Chair's permission, and as an extension of his report, Mr. Tate asked whether the District had contracted with Kitchell following good competitive practices. Mr. Tate provided a series of documents (not provided here as exhibits, since they were not available to the Committee prior to the meeting) to suggest they had not. Debate ensued. Upon Mssrs. Henderson and Matranga's concurrence, it was moved (Tate) and seconded (Rice) that attorneys for the District and the CBOC be required to meet and return with a report on this issue at our April 12 meeting. Motion passed unanimously.

10.2 CBOC Web Liaison. Mr. Rice's report was accepted under the Consent Calendar. Committee's website hit count for the month of February was 219.

10.3 Deferred Maintenance Sub-Committee. Mr. Tate distributed a written Sub-Committee report (Exhibit K). It was moved (West) and seconded (Rice) to accept the report. Motion passed unanimously.

10.4 Bid Process Review Committee. There was no written report, the Committee had met and emphasized the importance of the bid process.

10.5 District's Measure F Performance Audit Steering Committee. There was no written report.

11. Items for Future Agendas.

11.1 Review of Deferred Maintenance Plan.
11.2 Change Order Process - Best Practices.
11.3 Plan to redistribute IP funds for closed schools.
11.4 Recommended changes to CBOC Bylaws re CBOC members' terms of service. [April]
11.5 Impact of Proposition 55 on Measure F program.
11.6 Recommendations from Audit Steering Committee re Performance Audit clauses. [April]
11.7 Potential Conflict of Interest between Program Manager and Construction Manager.
11.8 CBOC's role in selecting auditor for Performance Audit. [April]
11.9 Recommendations on format for future Financial Reports. [April]

12. Adjournment.
Meeting adjourned at 10:27 p.m. Next meeting is April 12, 2004.