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MINUTESSan Jose Unified School District Board of Education
Study Session
on
Citizens Bond Oversight Committee May 9, 2002 5:00 p.m. - 7:00 p.m. Room 337, 855 Lenzen Avenue San Jose, CA 95126 Agenda
Attendees:
1.
Meeting called to order at 5:10 pm by Veronica Lewis. · Ms. Lewis stated that the format of the meeting will be presentations first, followed by questions from the committee members. · Questions from the public will be addressed at the end of the meeting. 2.
Role of the Citizens' Bond Oversight Committee - Dr. Linda Murray,
Superintendent · Dr. Murray noted that there has been a significant improvement to schools under Measure F. 4. Proposition 39 passed by a majority vote, not by two-thirds of the vote as previously required. · With funding provided by Prop 39, the District can now address furniture, equipment and technology needs. · Although the District previously had a Bond Oversight Committee with Measure C, under Prop 39 the new BOC has a role that is specified in law. · The purpose of this meeting is to learn the role of the new BOC and its role on reporting on the expenditure of funds. 3.
Board Policy - Jerry Matranga, Associate Superintendent · Jerry Matranga presented information from Board Policy 7214.2 and Administrative Regulation 7214.2 regarding the Citizens Bond Oversight Committee. This included information regarding: 1) the Committee's purpose 2) the Committee's Duties 3) the Committee's operations 4) the Committee's selection and composition 4. Proposition 39, Duties of the Committee - Janet Mueller, District Counsel & Dave Sanchez - Bond Counsel · Janet Mueller presented information from Education Code, section 15278, pertaining to the Purpose of the Committee. In general, the Bond Oversight Committee is not an advisory committee to the school board, but is rather a “watchdog” organization to oversee how the bonds are expended. · A list of the Activities of the Committee was presented. This list is not exclusive, but rather is intended to be indicative of the types of activities expected of this Committee: 1) Receiving and reviewing copies of the annual, independent performance audit. 2) Receiving and reviewing copies of the annual, independent financial audit. 3) Inspecting school facilities and grounds to ensure that bond revenues are expended in compliance with the requirements of the California Constitution. 4) Receiving and reviewing copies of any deferred maintenance proposals or plans developed by a school district. 5) Reviewing efforts by the school district to maximize bond revenues by implementing cost- saving measures, including, but not limited to, all of the following: A) Mechanisms designed to reduce the costs of professional fees. B) Mechanisms designed to reduce the costs of site preparation. C) Recommendations regarding the joint use of core facilities. D) Mechanisms designed to reduce costs by incorporating efficiencies in school site design. E) Recommendations regarding the use of cost-effective and efficient reusable facility plans. · The Citizen's Oversight Committee must issue regular reports on the results of its activities. A report must be issued at least once a year. · The Citizens’ Oversight Committee must meet in compliance with the Brown Act. · Without expending bond funds, the District must provide the Citizens’ Oversight Committee with “technical and administrative assistance to further its purpose and resources sufficient to publicize its conclusions.” The full extent of this obligation is not known, but it is the District's responsibility to help the Committee meet, announce the meeting, and post the minutes of the meeting on the District's web site. · The Citizens’ Oversight Committee must consist of at least 7 members to serve for a term of 2 years without compensation and for no more than 2 consecutive terms. · It is the job of the Bond Counsel to make sure the District complies with State law before the issuance of the bonds, to make sure the District follows State and Federal tax laws, and to make sure the Citizens’ Committee is in place on time. 5.
Proposition 39, Financial & Performance
Audits - Tom Brewer, External Auditor · A performance audit is an extension of the financial audit. It looks to see that the expending and recording of bond funds for projects identified in the bond are conducted properly. · No administration salaries or school operations expenses are to be charged to the bond. It remains to be defined if any salaries can be charged to the bond fund. For example, salaries for program managers may be allowed as a "capitalizable salaries." However, the State is unwilling to set guidelines regarding this issue at this time. Clarification will probably require a ruling by the Attorney General. A consortium of school districts may pursue an expedited ruling on this matter. · Miller, Brown, and Dannis meets quarterly with a consortium of school districts to keep abreast of issues related to all California school districts. · Under the Conflict of Interest clause, the District cannot enter into a contract in which a Board member has a "financial interest." · The Citizens’ Bond Committee needs to develop its own set of rules regarding how it will function as an entity, and to set their own reporting requirements in conjunction with District needs. For example, the Committee may decide to have an audit more frequently than "yearly". · A caveat to the Committee would be to have an audit at the beginning of the Bond, either in the first quarter, or at the six month point. This may be less than a full audit at the first quarter, but enough to ensure that things are running correctly. If the Committee finds that the financial process is running smoothly, full quarterly audits may not be necessary. · Should an expense be improperly charged to Bond funding, the remedy is to repay the Bond fund. · It is still unclear what funding source will be used to pay for a performance audit. The audit requirement is a new component of the Bond that did not exist in previous legislation. · The Department of Finance or the State Controller's Office may add new language to K-12 annual audit guidelines. This language should be issued soon. However, the existing language in the proposition is clear enough for the District to conduct audits at this time. 6.
Bond
Issuance - Jerry Matranga
· The Board has approved spending current District money on bond projects and repaying with future Bond money. · The District is waiting for Bond issuance until it is better determined when the funds are needed. 7.
Facility Planning - Chuck Corr · Prior to Measure C Bond passage in 1997, 6 sites were surveyed to assess typical needs. Projected costs exceeded funding to be generated by Bond proceeds. · After Measure C Bond passage, a consultant team was assembled, all sites were assessed in detail, accurate cost estimates were established, the project scope was prioritized, and an implementation plan was developed. · Prior to Measure F Bond passage in 2002, the previous assessment was augmented with data from completed modernization projects, a comprehensive scope of work was developed, and rough cost estimates were established. · After Measure F passage, a study team has refined scope and cost estimates, and a consulting team (consisting of a program manager, construction managers and architects) is being assembled to create the implementation plan. · The abiding principles of the Bond include addressing District standards, requirements, priorities, and equity. · It is proposed that the building program be planned to match available funding from these sources: Measure F proceeds $429.0 million State modernization funding 12.6 million QZAB funds 12.0 million TOTAL 453.6 million · The proposed scope of work is jumpstart projects, site and grounds projects, new construction, and building improvements. · In the next 6 months, project scope, budget, and schedule will be formalized. In the 2002/2003 school year the jumpstart projects will be executed, and the District will move ahead with time sensitive projects. Restroom renovation is a priority. · The Citizens' Committee will have no input in establishing project priorities. · Factors affecting project scope and timeline include: the cost and speed at which bonds are sold, the manpower available to administer work, summer school scheduling, and atheletic field use. · Projects will be bid by scope, not by site. Projects will be planned district-wide, not concentrated in certain areas of the District. Due to the nature of the projects, there will be more disruption more often to the school sites. · The District is currently identifying areas where matching funding is available. Declining enrollment will affect funding levels. 8.
Possible dates for joint Board/Citizens' Bond Oversight
Committee Study Session Next meeting scheduled for Monday, June 3, 2002, 6:00pm. Meeting adjourned at 7:03 pm. |
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