Measure F, January 7, 2008 Minutes

SJUSD Measure F
Citizens Bond Oversight Committee
MINUTES
(DRAFT)
January 7, 2008
District Office,
855 Lenzen Avenue, San Jose

1. Call to Order
Chairman Ginsborg called the meeting to order at 6:55 p.m.

2. Roll Call: The requirements for a quorum were met.
Committee Members Present:  John Cesare, David Ginsborg, Chris Henriques, Amy Huddleston, Diane Hughes, Jim Kateley, Michael Palmaffy, David Persselin, and Clark Williams.

Committee Members Absent: None.

Board of Education Representative to the Committee:  Veronica Lewis

SJUSD Staff Representatives Present:  Steve Adamo, Florence Eng, Karen Fuqua, Chris Hernandez, Don Iglesias, Ann Jones, and Ada Poon.

Program Management:  Mike Hiddleson, Tom Millman, and Patricia Nguyen of Kitchell CEM.

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

4. Public Comment
No items discussed in open public comment.

5. Consent Calendar – Items marked (*) (Item 6, 8.2)
It was moved (Huddleston) and seconded (Kateley) to approve the consent calendar.  Motion passed unanimously.

6. Approval of Minutes (*)– Part of Consent Calendar

7. New Business

7.1 Measure F Audits (Exhibit7.1) (PDF)

A. Performance Audit
Curtis Matthews of Moss Adams presented the findings of the 2006-2007 performance audit.  Moss Adams found two discrepancies.  The first discrepancy is a math error in the time accounted for by District staff on time cards.  Second, expenditure items that were a part of the IP, but not included in the bond language, were found.  Moss Adams stated that the District is correcting the two discrepancies.  Over the life of the Measure F bond, there have been nineteen prior audit issues and of those nineteen, seventeen have been cleared.  Moss Adams stated that the District is proactive about clearing issues.  The two open issues involve the District website and communication with the community.  The District is working to address these two open items.

B. Financial Audit
The committee agreed to postpone discussion of the financial audit until the next CBOC meeting in February 2008 in order for committee members to have time to review the financial audit.
It was moved (Palmaffy) and seconded (Huddleston) to accept the performance audit report.  Motion passed unanimously.

7.2 Measure F Project Overview & Status (Exhibit7.2.1, Exhibit7.2.29428, Exhibit7.2.29441, Exhibit7.2.29515, Exhibit7.2.29531, Exhibit7.2.29613, Exhibit7.2.3, Exhibit7.2.4, Exhibit7.2.5)

Mike Hiddleson presented the Measure F Program status report.  Five projects have been reconciled and closed since the last CBOC meeting.  Current project update includes Burnett, Muir, and Willow Glen Middle Modernization projects will have Phase II schedules in Spring and Summer, 2008 and all of the 2008 modernization projects are currently in review at DSA (Division of State Architect).  In summary, there is $4,453,497 in the total Measure F Contingency.
It was moved (Hughes) and seconded (Palmaffy) to accept.  Motion passed unanimously.

7.3 Measure F Financial Report (Exhibit7.3) (PDF)
Ada Poon presented the Measure F Quarterly Financial report.  The report summary shows that Measure F has a balance of $101 million. 
It was moved (Persselin) and seconded (Kateley) to accept.  Motion passed unanimously.

8. New Business

8.1 Chair’s Report (Exhibit8.1)
Chairman Ginsborg distributed a revised copy of his report.  Based on his discussion with Mr. Michael Day of the Sacramento Unified CBOC, Chairman Ginsborg requested additional information about how Architect’s and CM’s fees are paid The District responded that CM’s and Architect’s fees are flat fees that are based off of the OPSC scale, but do not adjust solely based on bid costs.  Chairman Ginsborg also asked whether there is “NASA style” contracting for projects that come in below the estimated amount.  The District responded that with the exception of the Anne Darling Lease-Leaseback, the District’s projects are not negotiated but rather public bids that follow the rules of the Public Contract Code which are not “NASA style” contracting.  Chairman Ginsborg stated that he may want the District to present the public contract code restrictions at the next CBOC meeting.

8.2 Site Inspection Report (*)– Part of consent calendar

9. Items for Future Agendas
1.  Website update
2.  State budget impact on DSA and OPSC agencies review times
3.  Measure F Annual Report – Chris Henriques, committee liaison
4.  Contracting principles – Cost saving incentives

10. Adjournment
It was moved (Kateley) and seconded (Persselin) to adjourn the meeting at 7:55 p.m. Next meeting is 6:00 PM, February 11, 2008 at the District Office, 855 Lenzen Avenue, Room 337.