Proposition MM School Bond
Independent Citizens’ Oversight Committee
MINUTES
August 17, 2004, 4:00 p.m.
M&O Training
Room A & B
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AGENDA ITEMS |
ASSIGNMENTS/UNDERSTANDINGS |
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Meeting Called to Order |
4:07 p.m. The meeting recessed at 4:18 for a brief “thank you”
to Mr. Johnson and reconvened at 4:30. |
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Roll Call |
ICOC members in attendance: Lisa Briggs, Leon Brooks, Jesus Garcia, Kris Hartnett, Hank Killmar, Dorothy Leonard, Stuart Mac Donald, Phil Nerhood and Mike Schatz. Mr. Tibbitts and Mr. Chu were excused and out of town. Staff members in attendance: Steve Bovee, Jim Bray, Chuck Brown, Graham Champion, Scott Ellis, Bob Kiesling, Tad Parzen, Scott Patterson, Cynthia Reed-Porter, Pat Snyder, Erika Wilgenburg, (Guest) Gil Johnson introduced Mr. Leon Brooks, the new at large member. Mr. Brooks expressed his interest in being involved with
ICOC. |
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OLD BUSINESS |
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1.
Approval
of Minutes July 20, 2004 (Handout) |
Motion: Mrs. Briggs moved to approve the draft
minutes as submitted. Mr. Hartnett seconded the motion. The motion passed without objection. |
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2.
Public
Testimony [No action or discussion may occur regarding public comment on
matters not on the agenda. Items may
be referred to staff for placement on a future agenda. Public testimony is
limited to 3 minutes per person.] |
Mr. Andy Berg spoke concerning the issues he brought to the ICOC in the
past few meetings. Mr. Berg noted that those issues were being dealt with and
going very well. Mr. Berg suggested that, in addition to the regular meetings
with AGC, the district might consider meeting with American Subcontractor
Association (ASA) and National Electrical Contractor Association (NECA) on a
regular basis. |
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3.
Chief
Facilities Officer’s Report on Approved Board of Education Items Regarding
Proposition MM (Kiesling) 3.1.
Mr.
Leon Brooks, Board approval (July 27, 2004) 3.2.
Status
Report of Proposition MM (July 27, 2004) |
Mr. Kiesling
noted that Mr. Brooks was formally appointed to the ICOC by the Board of
Education on July 27, 2004. (3.1) Mr. Kiesling
also noted that he had given a brief presentation on Proposition MM to the
board. (3.2) |
4.
Chair Report (Leonard)
4.1.
Appoint Annual Report Subcommittee
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Mrs. Leonard appointed the following ICOC members to an Ad Hoc Annual
Report Subcommittee: Mr. Killmar,
Chair; Mrs. Briggs and Mr. Nerhood.
All have agreed to serve on the committee. Mrs. Leonard advised Mr. Brooks that the Governance Model for this committee indicates that each member serve on at least two subcommittees. For the time being, Mr. Brooks would serve on the Site Selection/School Opening Subcommittee. Mrs. Leonard noted that the Development Subcommittee will be looking at the whole committee structure and a new vice chair later this year. |
5.
Report on 2004-2005 Plan (Ellis)
5.1.
Summary of
Charts. (Handout) 5.2.
Chart 1 – Proposition MM
Expenditure Plans by Fiscal Year 5.2.1.
Chart 1A – Total Program Expenditure Plan 5.2.2.
By Fiscal Year (Detail) 5.3.
Chart 2 – Proposition MM Cumulative Expenditure Plans 5.4.
Chart 3 – Comparative Distribution of Dollars by Program
Category 5.4.1.
Schedule 1 – Total Expenditures/ Balances By Program
Category 5.5.
Chart 4 – 2003-2004 Planned Budget by Major Program Actual
Expenditures and Encumbrances/Commitments 5.5.1.
Chart 4A – 2003-2004 Planned Budget By Major Program
Actual Expenditures and Encumbrances/commitments Comparison 5.6.
Chart 5 – Future Major Repair and Replacement District
Funded and Proposition MM Funded Budget Projections and Actual Expenditures 5.7.
Chart 6 – Expenditures vs. Available Cash 5.8.
Chart 6A – Proposition MM Cash and Investment Balances |
Mr. Ellis noted that the final report for 2003-2004, normally available
by this time, was delayed by the DWA change until August 20, 2004. Mr. Ellis
discussed the financials and answered questions regarding the charts. (5.*) |
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6.
Site
Selection/School Opening Subcommittee Update (Killmar) 6.1.
Executive
Summary and Meeting Minutes of August 2, 2004 (Handout) 6.2.
New
School Transition Plan (Info Only) 6.3.
6.4.
Status Joint Use Discussions with City of 6.5.
New
School Schedule Update (Handout) |
In the absence of Mr. Gil Johnson Mr. Killmar chaired this subcommittee. Mr. Killmar noted that September was the anticipated date for three principals to be approved by the Board of Education. (6.2) Mr. Killmar asked Mr. Jim Bray, to present the
information regarding the Based on input received during community meetings and phone calls to district staff, Site B is currently the community favored site. Site B is the site on which there is some vacant property. SEDC and a developer are working to place 110 new for-sale condominiums on the vacant property. They are expecting to obtain the necessary approvals in early November and break ground by Thanksgiving. Thus it is expected that construction of the new condominiums will begin prior to the district completing the environmental process and selecting a site. Councilmember Lewis had expressed his support for Site
A, the northern most site bordered by Mr. Kiesling stated that there still is no clear
direction from the community on the Mr. Killmar stated that the New School Schedule will
be monitored and presented to the ICOC by Project
Implementation Subcommittee. Some Site Selection/School Opening
Subcommittee issues might still occur. (6.5) |
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7.
Reports
and Audit Subcommittee (Nerhood) 7.1.
No Monthly Meeting Held |
Mr. Nerhood noted that there had not been a meeting during the past month for Reports and Audits. However, a meeting has been set for September 10, 8:30 a.m. (7.1) Mr. Nerhood asked Mr. Scott Patterson to advise the ICOC on the status of the bond issue. Mr. Patterson explained the general bond process and indicated that the district's bond issuance was coming to market at a good time, since interest rates have trended lower. Issuance of $200 million of new bonds should be completed by August 20th. Because of the lower interest rates, Mr. Patterson noted that the district will attempt to refinance $300 million of existing debt. If successful, this would result in a savings of about $12 million in debt service for taxpayers. A full report will be presented to the Reports and Audit subcommittee at it's September 10th meeting. Action item: Mrs. Erika Wilgenburg was asked to
prepare a press release on the strong bond issue. |
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8.
Project
Implementation Subcommittee (Garcia) 8.1.
Executive
Summary and Minutes for July 12, 2004 (Handouts) 8.2.
Status of Jefferson/HAR (Info Only) 8.3.
Labor
Compliance (Handout) 8.4.
Cost
of Fencing Replacement Report and Executive Summary (Handout) 8.5.
Contractor/Subcontractor
Issues (NECA/ASA)(Handout) 8.6.
Outreach
Program Contract Update (Handout) 8.7.
MRR
Future Funding (Info Only) 8.8.
Status
of State Funding Expenditures (Info Only) 8.9.
Active Construction Site Inspections (Info Only) 8.10.
New
School Status Report (Refer to 6.5) 8.11. Contract Award Status, 2004 (Handouts) 8.11.1. Contract Award Status, 2003 8.11.2. Punch List Status 8.12. Projects With Significant Challenges (Handout) |
Mr. Garcia stated that a quorum was not present at the last subcommittee meeting so there are no subcommittee recommendations. The award of the Mr. Parzen spoke of the labor compliance task force plan. Today’s version has the additional information of approximate times a given task could take. Labor compliance, dubbed the issue everyone loves to hate, will always have some issues. Nevertheless, the plan has been widely embraced by all parties concerned. Motion: Mr. Garcia moved to endorse the Labor
Compliance plan as submitted. Mr. Killmar seconded the motion. The motion passed without objection. Action Item: Mr. Goshorn to draft a letter from the ICOC to the Board of Education to advise them of the ICOC’s endorsement of the Labor Compliance Plan. (8.3) Mr. Goshorn
presented the final report on the fence costs analysis as prepared by Mr.
Larry Johnston, President of South Bay Fence, Inc. Further information is available on the web
site at http://prod031.sandi.net/propmm/fences.html.
Concerns for safety and security lead the issues. Mr. Johnston’s conclusion
is that fences at Motion: Mr. Hartnett moved to accept the fence
review report as submitted by Mr. Larry Johnston. Mr. Killmar seconded the motion. The motion passed without objection. Motion: Mr. Killmar moved that a letter regarding
the outcome of the fence investigation be sent to KUSI, the Union Tribune and
Mr. Turko on behalf of the ICOC. Mr.
Hartnett seconded the motion. The
motion passed without objection. (8.4) Mr. Hartnett discussed the four issues brought up by Mr. Andy Berg and Mrs. Anne Wright. The first was slow payment to subcontractors. The second was change orders payments. The third was expeditious closure of projects. In addition, the fourth was an over zealous labor compliance enforcement by the district. An ad hoc committee comprised of Mr. Hartnett, Mr. Tibbitts and Mr. Killmar investigated the issues and recommended that payments to general contractors should be placed on the website as suggested by Mr. Berg. The district agreed and expects to implement by September 1, 2004. Mr. Bovee provided historical information on change orders showing that 70.5% of change orders were processed within 30 days. The subcommittee found that statistic to be within industry standards. Some change orders were in the 45-day range with 150 days being the longest unresolved. The third concern was about not closing contracts in a timely fashion. The ad hoc committee recommends that the board delegate authority to Mr. Kiesling to issue “notice of completions” to eliminate the time required to schedule such actions at a meeting of the board. Regarding the labor compliance issue, it was found that the district already recognized and, along with other stakeholders, had recently created a plan to address the labor compliance issues. Motion: Mr. MacDonald moved to approve the report
submitted by the ad hoc committee as presented. Mr. Garcia seconded the
motion. The motion passed without
objection. Motion: Mr. Killmar moved that the ICOC recommend
to the Board of Education that authority be given to the Chief Facilities
Officer to approve “Notice of Completion” documents. Mr. Hartnett seconded
the motion. The motion passed without objection. Mr. Parzen said his staff had researched the “notice
of completion” issue and noted that with proper authority, Mr. Kiesling can
sign these documents. Asked if a board ratification was also required for
each “notice of completion” issued, Mr. Parzen indicated that his staff was
researching that question. Action Item:
Mr. Goshorn will draft a letter from the ICOC to the Board of Education
requesting their approval of the Chief Facilities Officer having authority to
sign “Notice of Completion” documents. (8.5) Mr. Garcia noted that the Project Implementation Subcommittee had been advised that in the earlier stages of Proposition MM there were many contracts in the $1 to $2 million ranges that were with the reach of small and emerging businesses. Mr. Garcia noted that currently contracts are in the $5 to $15 million range. Mr. Garcia questioned if any contract could be “broken” into smaller segments. Mr. Kiesling stated that it would not be feasible to “break apart” the remaining large whole site renovation and new school projects into smaller pieces. Mr. Kiesling noted that the contract with Latino Builders would be expiring in September. The district is looking at a one-year renewal for Latino Builders to keep track of outreach data. Mr. Kiesling noted that staff was also looking at a Joint Consortium with the City of San Diego, County of San Diego, Port of San Diego, and other governmental agencies, wherein the district would pay a fair share of costs for Outreach efforts. CCDC has volunteered to coordinate the various public agencies. Mr. Garcia and Mr. Kiesling acknowledges that it was the ICOC’s Robert Fogg that originally suggested such an inter-agency outreach effort several years ago. (8.6) Mr. Garcia advised that the ICOC consultant, Mr. Goshorn, is working on issues related to MRR future funding. Mr. Goshorn noted that the state legislature is looking at methods to handle public infrastructure in general. Mr. Goshorn will come back to the Project Implementation Subcommittee with more information at the September 13, 2004 meeting. (8.7) State funding expenditures. Nothing to report. Mr. Peterson noted that, at the last Board of Education meeting, the board was asked to allocate funds for high priority capital needs. The board requested a ‘big picture’ report and staff is in the process of getting the information prepared. (8.8) Construction site inspection. The McKinley inspection report is not yet available. (8.9) New Schools Status Report will be handled in the Project Implementation Subcommittee. Site Selection/School Opening Subcommittee will only be involved as necessary. Golden Hill elementary will have an approximate 15% overrun for the grading portion only. The Project Implementation Subcommittee minutes and executive summary will be corrected to reflect that the 15% overrun is for grading only. Engineers and Architects have a 2% standard errors and omissions leeway. At the end of the project, the district will assess the over all picture and would seek to recoup that funding from the designer when and where applicable. (8.10) Mr. Brown advised the committee that there are six
whole sites and nine new school contracts yet to be awarded. The Mr. Kiesling discussed Projects With Significant Challenges noting item 3 regarding lack of bidders is the result of limited subcontractors rather than prime contractors. In today’s climate there is a lot of work that subcontractors can choose from. Mr.
Kiesling stated that Golden Hill elementary has a number of issues. A grading
contractor spilled spoils into the creek bed. Mr. Bovee stated that a “Clean
up and Abatement” Order (CAO) was issued by the California Regional Water
Quality Control Board, San Diego Region.
A biologist has already reviewed and created a restoration plan. The
spill should not affect the grading schedule. It was determined that the
contractor was not following procedures and will be back charged from the
grading contract for costs associated with the damage. The district did not receive a fine but has
been assessed an administration fee. Mr. Kiesling will make a follow-up report
to the Project Implementation Subcommittee at their September meeting. (8.12) Mr. Garcia noted that Stuart MacDonald will chair the September meeting in his absence. Mrs. Briggs noted that ASA was becoming more active and the district needs to consider strengthening its association. |
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9.
Development
Subcommittee (Briggs) 9.1.
Minutes
for August 11, 2004 (Handout) 9.2.
Chair
for Site Selection/School Opening Subcommittee (Action Requested) 9.3.
Governance
Model Update |
Mrs. Briggs noted that, if nominated by the ICOC, Mr. Tibbitts would accept the chairperson position for this subcommittee. Motion: Mrs. Briggs moved that the ICOC nominate
and approve Mr. Jon Tibbitts as chairperson for the Site Selection/School
Opening Subcommittee. Mr. Killmar seconded the motion. The motion passed without objection. (9.2) Mrs. Briggs said that the Governance Model structure had been reviewed earlier this year. It is now time to look at the broader matrix. Mr. Goshorn gave an excellent presentation on how the issues relate to each subcommittee. Mr. Goshorn will make the same presentation to the Project Implementation and Site Selection/New School Opening subcommittees at their next meeting. Mr. MacDonald expressed his appreciation of the Governance Model presentation made by Mr. Goshorn. |
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10. Steering Subcommittee (Leonard) 10.1. No Meeting Scheduled |
Mrs. Leonard stated that a Steering Subcommittee meeting is scheduled for October 6, 2004 at 1:00 pm. |
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11.
Communication
Monthly Update (Handout) (Wilgenburg)
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Mrs. Wilgenburg commented on the articles. Mrs. Wilgenburg emphasized that the playground equipment removed from Pacific Beach Elementary was supposed to have been disposed of by the contractor. Instead, the contractor offered it to and installed it at a school in the east county. The school has been notified by SDUSD that the equipment is no longer up to code and therefore constitutes a safety hazard. Mr. MacDonald thanked Mrs. Wilgenburg on the great job she had done on the website. |
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New Business |
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1.
Chief
Facilities Officer’s Report (Kiesling) |
Mr. Kiesling reported on a flood at Mr. Kiesling reported that the board approved a
modular contract for Mr. Kiesling advised that Paula Ross, who is suffering from carpel tunnel syndrome, has been advised by her doctors not to return to her position at ICOC. Her medical advisors will continue to evaluate her situation. |
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2.
ICOC
Chair Report (Leonard) |
Mrs. Leonard and Mr. Killmar are working with Mr. Kiesling and Ms. Bergam for a permanent replacement for Mrs. Ross. Mr. Hartnett and Mr. Garcia will be out of town during the September 21, 2004 ICOC Meeting. |
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3.
Adjournment |
6:03 p.m. |