BUDGET PLANNING COMMITTEE (BPC)
Thursday, July 26, 2012
3:30 p.m.
LRC 107
Agenda
1. Call Meeting to Order – 3:30 p.m.
ACTION
2. Approve summary notes from July 2, 2012
3. Re-balancing of Measure Q project allocations
DISCUSSION
4. Draft Ranking of Budget Cuts
5. Update on Stability Funding
6. Closing the loop
7. Adjourn
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BUDGET PLANNING COMMITTEE
Monday, July 2, 2012
3:00 p.m.
L107
Summary Notes
MEMBERS
PRESENT
Bob Brown, Solomon DeCamp, Tami Engman, Tim Flanagan, Pat Girczyc, Dave
Gonsalves (phone), Utpal Goswami, Anita Janis (phone), Sharrie King, Lee
Lindsey, Tami Matsumoto, Keith Snow-Flamer, Carla Spalding
CALL TO ORDER
The meeting was called to order by committee co-chair
Bob Brown.
SUMMARY
NOTES
The summary notes from May 9, 2012 were approved and will be posted on the
BPC website.
REVIEW
DEVELOPMENT
OF 2012-13
BUDGET
SHORTFALL
DISCUSSION
STATE PAYMENT
DEFERRALS/
TRAN
Lee presented a detailed synopsis of today’s meeting agenda which he reviewed
with the committee. He noted that there is a budget shortfall of $550K due to
recent legislative action and an additional $472K due to unresolved pay
concessions within the district. He asked for suggestions from the committee on
how to close the approximately $1M budget gap.
The following suggestions were discussed:
 Hold vacant positions open  More pay concessions o Should we rely on savings that are contingent on successful
negotiations?  Reduce services
Lee reported that recent news from the Chancellor’s Office indicates cash
payments to the district from July 2012 to January 2013 will be 44 percent less
than last year. The district will participate in a Tax Revenue Anticipation Note
(TRAN) and will also do another TRAN mid-year. There was discussion regarding
tax measures on the November ballot and what impact there will be on the District
once the outcome of the election is determined. Concern was expressed about
having a plan in place in the event that the tax measure fails and how it will look to
the accrediting commission if there is a $1M budget deficit. If the measures do
pass cash payments will not improve until June 2013.
LATE
REIMBURSEMENT
It was noted that reimbursements for bond projects from the state are running late
and it was necessary to notify the general contractor of the new academic building
that the project may receive a “stop work notice”.
STATE
MANDATED
COSTS
There are costs associated with certain things that the district is required to do by
state law, these costs are considered mandated. The state actually reimburses the
district for some mandated costs i.e., costs related to collective bargaining, and
complying with the Brown Act such as publishing meeting agendas. The district is
currently owed approximately $1M from the claims dating back to 98-99 fiscal
year. There is currently a bill at the legislature that, if signed, would provide a flat
rate for reimbursement of mandated costs based on district FTES.
LOCAL BOND
ISSUANCE DRAW
CLOSING THE
LOOP
ADJOURNED
SUBMITTED
The district will issue the remaining $7M of measure Q bond funds. With all bond
funds allocated and projects in progress it is time to draw down the remaining
funds.
Lee will send out a reminder on the BPC assessment and collate ideas. The
committee will meet again before the end of the month in order to provide
guidance at the August Board of Trustees meeting.
The meeting adjourned at 4:25 p.m.
lw
Completed
DRAFT - FOR DISCUSSION ONLY
Closeout
Construction/In Progress
Bids & Awards
DSA Approval
Working Drawings
Preliminary Plans
Programming
Feasibility
REDWOODS COMMUNITY COLLEGE DISTRICT
DISTRICT PROP 39 BONDS OF 2004
AND STATE PROP 1D BONDS OF 2006
Project
Budget
Budget
Rebalanced
Adjustments
Bgts
NOTES
Current Measure Q Projects
MP2
Q27
Q28
MP3
MP4
MPS
Q10
Q66
Q53
Q54
Q75
Q55
Q56
Q57
Q58
Q59
Q60
Q61
Q62
Q63
Q64
Q67
Q68
Q69
Q70
Q71
Q72
Q73
Q74
Q32
" " Denotes new line item
Eureka
Old Library Seismic Retrofit and Repurpose
Woodshop Dust Collector
Emergency Generators
New S.S./Admin/Theatre (Measure Q Match)
New Academic Complex (Measure Q Match)
Site Improvements to Support New Construction
Modernization & Engineering for Projects
Fire Technology Equipment & Apparatus Storage
Firing Range Upgrade **
Security, Marquee Upgrades and Fire Alarm
Career and Technical Ed Computer Lab Upgrades
Baseball field, stands, walkways, etc.
Athletic Complex Facility, including repurposing the pool area
Track upgrade
Softball field, stands, walkways, etc.
Stadium scoreboard, roof, stands, walkways, field
Automotive Technology Lab upgrade
Welding area cover expansion
Nursing facility upgrades
Parking lots, fencing, etc.
HRC teaching kitchen *
Emergency Response Training Center
Itech Innovations Lab establishment (solar,thermal,water/waste)
Construction Technology Lab upgrade
Exterior paint and light upgrades
HVAC, boiler equipment
Maint & Dining equipment, mini-bookstore, portable bldgs
Ag Dept Tompkins Hill barn renovation/ replacement
Reserve for repurposing vacated buildings, incl faculty ofcs
Replace Seating - Creative Arts & Adm Justice
Q25
Mendocino Coast
Science Wing Modernization
475,000
0
475,000
Q30
Q29
Del Norte
Science Wing Modernization
Portable Lease/Purchase
500,000
24,000
0
0
500,000
24,000
Q22
Garberville Instructional Site
Garberville Instructional Site Purchase/Retrofit
1,655,786
112,000
1,767,786 BOT approved
Q31
Q76
Q51
Q36
Q77
Q52
District Projects
Technology Infrastructure Upgrades
Voice Over IP (VOIP) to Replace PBX & Phones
District-wide ADA and Safety Compliance
Document Imaging and Secure Storage
Project Management
Campus safety alert upgrades
1,100,167
350,000
855,000
80,000
201,000
0
0
19,000
475,000
0
1,301,167 Need BOT approval
350,000
855,000
99,000 BOT approved 7-10-2012
475,000 Need BOT approval
13,000

13,000
Completed Measure Q Projects
Subtotal Local Bond Projects
7/26/2012 8:18 AM
1,040,800
295,252
297,000
3,217,581
3,349,212
1,014,185
1,369,580
40,000
350,000
300,000
250,000
650,000
3,000,000
200,000
500,000
200,000
350,000
150,000
29,211
350,000
15,000
100,000
250,000
150,000
225,000
25,000
150,000
555,000
70,500
19,726,784
$ 43,273,058
1
(893,003)
0
0
0
0
0
35,726
0
268,015
0
0
0
0
0
0
0
0
0
0
0
(350,000)
0
0
0
0
0
0
0
388,000
0
(1)
255,737
147,797
295,252
297,000
3,217,581
3,349,212
1,014,185
1,405,306
40,000
618,015
300,000
250,000
650,000
3,000,000
200,000
500,000
200,000
350,000
150,000
29,211
0
0
15,000
100,000
250,000
150,000
225,000
25,000
150,000
943,000
70,500
Need BOT approval
BOT approved 7-10-2012
Need BOT approval
Need BOT approval
Need BOT approval
19,726,784
43,528,796
Copy of August Bond Project Report FULL RPT1 .xlsx BOT
Completed
DRAFT - FOR DISCUSSION ONLY
Closeout
Construction/In Progress
Bids & Awards
DSA Approval
Working Drawings
Preliminary Plans
Programming
Feasibility
REDWOODS COMMUNITY COLLEGE DISTRICT
DISTRICT PROP 39 BONDS OF 2004
AND STATE PROP 1D BONDS OF 2006
Project
Budget
Budget
Rebalanced
Adjustments
Bgts
NOTES
Current State Funded Projects
Eureka
New S.S./Admin/Theatre (State Funded Portion)
New Academic Complex (State Funded Portion)
Subtotal State Projects
Total Local Bond and State Project Budget &Costs
$ 16,348,170
29,194,883
$ 45,543,053
$ 88,816,111
Voter Approved Measure Q Total
Interest to Date
Total of Committed Q Budgets
Available for Capital Projects
Q31
16,348,170
29,194,883
45,543,053
89,071,849
40,320,000
3,209,609
(43,528,796)
813
Technology Infrastructure Upgrades
Upgrade CENIC Connection to 1 gigabit @ 3 yr contract
Finish Wireless, WAN, VOIP Upgrades
Email server upgrade
Virtual server to migrate Softdocs and other needs
Ellucian (Datatel) eCommerce upgrade
Subtotal
60,000
30,000
35,000
66,000
30,000
221,000
NOTES: After the new academic bldgs are completed, it is anticipated that some unspent Measure Q funds may be
returned. Creative Arts Bldg replacement, Old Library, and Teaching Kitchen would be among items considered for
potential funding at that time (FPC/BPC prioritized recommendation, etc.).
7/26/2012 8:18 AM
2
Copy of August Bond Project Report FULL RPT1 .xlsx BOT
7-2-2012 BPC Meeting
Prioritized Ranking to close $1 million budget gap
2013-14
Description
BPC
Rank
7/26/2012 8:19 AM
Discussion
Dollars
The District would offer no summer term classes or very limited classes, for example only online
classes. As a result, many employee contracts would be shortened to 11 months with about an 8.3%
salary savings. This is similar to a furlough. Potenital budget savings for all employees by class are
noted below. Note that the $600K BPC savings estimate is more conservative assuming that
instructional employees and certain other employees would not be reduced. If we move forward, then
600,000 more detailed savings estimates will need to be developed.
Staff: $422,000
Instructional and non-instructional faculty: $649,000 (only the non-instructional portion could be
reduced)
Managers, confidential, etc: $208,000
Total: $1,278,000
Reduce Summer term - Create 11 month
employee contracts (May require
negotiations?)
$
Reorganize Deans, division chairs, area
coordinators, etc. (May require
negotiations?)
$
Faculty release time (May require
negotiations?)
$
100,000
Employees pay a premium for health
benefits (May require negotiations?)
$
300,000
Eliminate an academic program or reduce
athletics
$
60,000
Revenue generating initiatives
$
40,000
Centralize AOA staff
$
12,500
Efficiencies and cost savings might be realized by reorganizing these adminstrative functions.
80,000 However, a portion of these non-instructional administrative costs are included in the collective
bargaining agreement.
Approximately $700K in non-instructional faculty release time is included in the collective bargaining
agreement.
Employees would pay a monthly premium for health and welfare benefits. CR pays a flat rate per
covered employee, regardless of number of dependents. Health and welfare benefits cost about
$1,900/mo or $22,800/yr per covered employee. Estimate is only employees who receive health
benefits, NOT all employees:
Health benefits scenario - $100 monthly payment:
130 Classified: $150,000
61 Admin/Mgr/Conf: $73,000
83 Instr & Non-instructional Faculty: $100,000
274 Total annual savings: $323,000
Potential savings from suspending an academic program or reducing the athletic budget. For
academic program, review cost data to identify high cost programs to suspend due to lack of State
funding.
Move forward on some of the revenue generating initiatives previously identified by the BPC, such as
locating cell phone or communications towers on District property. Additional revenue is already
included in the budget, so conservatism requires that the estimate not be increased until some of the
new money starts to materialize.
By centrally locating AOA support staff for the instructional areas to one location, efficiencies and
savings might be realized. Savings is about .25 FTE at about $30K salary.
1
Copy of 2012-13 Legislative bgt cut - BPC Final Rankings 7-25-2012.xlsx 2013-14 Addl Cuts Rankings
7-2-2012 BPC Meeting
Prioritized Ranking to close $1 million budget gap
2013-14
Description
BPC
Rank
7/26/2012 8:19 AM
Discussion
Dollars
Consolidate Advising and Counseling
and Transfer Center
$
12,500 Potential efficiencies from combined support staff. Savings is .25 FTE at about $30K salary.
Associated Students funding for clerical
support
$
10,000
Reduce Campus Public Safety to less
than 24/7 coverage
$
Layoffs
$
Total Savings Estimate without Negotiations
$
344,000
Negotiable Items
$
1,080,000
Total Savings Estimate with Negotiations
$
1,424,000
Associated Students could provide some funds to help offset costs related to the clerical support
provided by the District.
Certain shifts would not be covered, so County Sheriff would be first responder. Night shifts when
9,000 school is not in session might be an example. Savings estimate is based on 90 days with one shift not
covered.
Instructional and non-instructional faculty, and certain administrators work under contract & could not
be laid off until 7-1-2013, so potential layoff savings in 2013-14 for faculty and administrators.
200,000
Confidential, classified staff & certain administrators could be laid off typically on 45 days advance
notice. The layoff estimate is for illustration and could be another amount.
2
Copy of 2012-13 Legislative bgt cut - BPC Final Rankings 7-25-2012.xlsx 2013-14 Addl Cuts Rankings