Proposition MM School Bond
Independent Citizens’ Oversight Committee
MINUTES
February
15, 2005, 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 |
Mrs. Leonard
called the meeting to order at 4:00 p.m. |
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Roll Call |
Members in attendance: Lisa Briggs, Stan Chu, Neil Derrough, Jesus Garcia, Kristopher Hartnett, Dorothy Leonard, Stuart MacDonald, Phil Nerhood, Michael Schatz, Jonathan Tibbitts Member Absent:
Leon Brooks |
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OLD BUSINESS |
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1.
Approval of Minutes January 18, 2005 (Handout) |
Motion: Mr. Tibbitts moved that the draft meeting
minutes be approved as presented. Mr.
Garcia seconded the motion. The motion
passed with no objections. |
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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.] |
None. |
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3. Chief Facilities Officer’s Report 3.1.
Board of Education Update (Kiesling) |
Mr. Kiesling stated that with the rain delays at Mead/Burbank Elementary Schools the Board of Education decided to move the students from the old Mead school to the new one as soon as it is finished, allowing the teachers and students to move as a group. In the case of Golden Hill/Sherman Elementary Schools, the Board of Education opted to wait a year to open the new schools because of the educational process. |
4. Chair Report (Leonard)
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Mrs. Leonard stated that the Annual Report for 2004 is completed. Mrs. Briggs thanked Mr. Goshorn for his expertise and patience in preparing the report. Mrs. Leonard noted that the report would be distributed Tuesday, February 22, 2005 at the Board of Education meeting and then to the school sites. At that time, Mrs. Leonard will introduce the ICOC members, the ICOC consultant and the ICOC secretary to the Board. Mrs. Leonard, Mr. MacDonald and Mr. Kiesling will meet with the new Board President Friday, February 18, 2005. Mrs. Leonard noted that the ICOC members had not received an updated copy of the Governance model. Mr. Goshorn will forward the information. |
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 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 – 2004-2005 Planned
Budget by Major Program Actual Expenditures and Encumbrances/Commitments 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 5.7.1.
Chart 6A – Proposition MM Cash and Investment Balances |
Mr. Ellis noted that the handout was financial information through January 31, 2005. Chart 1 indicates that almost $122 million has been expended through the end of January 2005. Mr. Ellis stated that with the delays that have occurred the planned total expenditure of $264.5 million will not be met. (5.2) Mr. Nerhood noted that on Schedule 1 the difference between the Original Planned Expenditure and the actual Total Expenditure for items 2.4, Science Classrooms, and 2.8, Additional Building Space (Support), is substantial. Mr. Nerhood requested more information to identify what changed in the scope of work. District staff will respond to the Reports and Audits
Subcommittee why spending is so dramatically different between the Original
Planned Expenditure and the Actual Total Expenditure for items 2.4, Science
Classrooms, and 2.8, Additional Building Space (Support) on Schedule 1. Mr. Ellis noted that some of the Encumbrances and Commitments have been identified and are listed on Chart 4. (5.5) Chart 5 shows that $17.5 million has been spent at this time on Major Repair and Replacement. (5.6) Chart 6 shows a cash balance of $311 million. (5.7) Mr. Ellis noted that on Chart 6A there was no interest added in January
2005. (5.8) |
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6. Planning Subcommittee (Tibbitts) 6.1. No
Meeting Held |
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7. Reports and Audit Subcommittee (Nerhood) 7.1.
Minutes and
Executive Summary for February 2, 2005 (Handout)
7.2. Review of the Financial Audit Report for the year ending June 30, 2004 (Action) 7.3. Review of the Consultant’s Contract (Colbi Technologies, Inc.) (Information Only) |
Mr. Nerhood stated that the Audit Report and Proposition MM Compliance Letter are unqualified. Mr. Nerhood and Mr. Touchstone of the firm Rosner Brown Touchstone & Keller, LLP reviewed the Financial Statements and the accompanying notes. Mr. Garcia noted that on pages 4 and 5 of the report under the category “Other financing sources,” it says “Excess of expenditures over revenues and other financing sources,” but should read “Excess of revenues and other financing sources over expenditures.” Mr. Touchstone will make this correction. Mr. Nerhood noted that total bonds issued through September 2, 2004 is $1.3 billion. $200 million in bonds are left to be issued. Mr. Leighton stated that the remainder in bonds would be floated in September 2005. Mr. Nerhood reviewed the Management Letter and noted that the district had responded to the recommendations of the auditor. Mr. Nerhood noted that the Reports and Audits Subcommittee would follow up to see if the recommendations were actually implemented. Motion: Mr. Nerhood moved that the Financial Statements with Independent Auditors’ Report and Supplemental Schedule for the Year Ended June 30, 2004 be accepted with the corrections on pages 4 and 5 as noted previously. Mr. Tibbitts seconded the motion. The motion passed with no objections. The findings will be forwarded to the Board of Education as well as the Management Letter. (7.2) Mr. Nerhood noted that most items in the $80,000 budget for the consultant are on target and that $18,000 is not identified to be spent at this time. Mrs. Leonard stated that the line item concerning the website was over budget and would be discussed at the Steering Subcommittee Meeting on Thursday, February 24, 2005. |
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8. Implementation Subcommittee (Garcia) 8.1. Minutes and Executive Summary for February 7, 2005 (Handout) 8.2. Delayed New School Openings (Information Only) 8.3. Projects with Significant Challenges (Handout) 8.4.
Contract
Award Status, 2004 – 2006 (Handout) 8.5.
New
School Status Report (Handout) 8.6. Technology Status (Information Only) 8.7. Quarterly Labor Compliance Report (Handout) 8.8. Quarterly Expenditures vs Active Sites Report (Handout) |
Mr. Garcia stated
that Mr. Kiesling just provided updated information on the delayed new
schools openings. (8.2) Mr. Brown stated
there were two new issues. Due to
problems with the modular contractor who has filed for dissolution, new
options need to be created to deliver the classrooms at Mr. Kiesling
stated that the Board of Education has given some direction for Mr. Brown noted that there was nothing new on the e-rate. Mr. Brown stated that UXO (unexploded ordinance) removal
at the Ms. Chong stated that a termination for cause against
TurnKey, Inc. for Mr. Garcia referred to the report included in the meeting
packet. The winning bid for Mr. Garcia noted that copies of the report were included. (8.5) Mr. Brown stated that of the 144 existing school sites where technology upgrades are being done, approximately 45% of the projects have been completed. The upgrades include transitioning to a new LAN (Local Area Network). Building infrastructure for the new LAN’s is being provided by Proposition MM funds, while equipment attached to the LAN is being provided by other funding sources. Completion is expected in early 2006. Mr. Brown noted that four new Library computers at Mr. Champion reviewed the highlighted portions of the Quarterly Labor Compliance Reports. (8.7) Ms. Haskins reviewed the report with the committee. Ms. Haskins stated that expenditures for the last quarter of 2004 were just under $80 million and the number of active sites was 33. (8.8) |
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Mrs. Leonard noted that the subcommittee would meet on Thursday, February 24, 2005. |
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Mrs. Wilgenburg reviewed the monthly update. Mrs. Wilgenburg noted that on February 6, 2005 the San Diego Union-Tribune printed a large piece concerning the TurnKey issue that included information on the schools delayed due to rain. Mrs. Wilgenburg mentioned that several ICOC committee
members attended the groundbreaking ceremony at The district is presently working on community outreach/communications related to the late openings due to rain delays and the new schools impacted by the dissolution with TurnKey. |
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New Business |
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11.
Chief
Facilities Officer’s Report (Kiesling) |
Mr. Kiesling stated he met with the Board of Education to brief them on Facilities issues, giving them a Proposition MM Update. Mr. Kiesling reviewed the Proposition MM Update report with the committee. He noted that of the 54 existing school sites that are substantially complete, 11 principals have signed off indicating that all Proposition MM contract items have been completed at their school site. Mr. Kiesling stated that sign-off did not include Site Discretionary work; there will be a separate report on Site Discretionary Proposition MM funds. Mr. Kiesling reviewed the ICOC summary information he presented to the Board of Education. Mrs. Leonard noted that the maximum number of terms members may serve on the ICOC had been changed in the operating rules to three. Mrs. Leonard also noted that on page 32 of the report the “/” between Parent and Teacher Association should be removed and the organization that Mrs. Briggs represents should be listed as the San Diego County Taxpayers’ Association. Mr. Umstot stated that four bids were
received on |
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None. |
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Adjourned at 5:45 p.m. |
Respectfully submitted,
Leslie Caporale
ICOC Recording Secretary