MEASURE D CITIZEN’S OVERSIGHT COMMITTEE
May 8, 2007
Minutes
The meeting of the Measure D Citizen’s Oversight Committee was held at, 6500 Soquel Drive,
room 804A, Aptos, CA on Tuesday, May 8, 2007.
Present:
Rodney Brooks, Harriet Duzet, Tila Guerrero, Bob Peterson, Kris Reyes, Mike
Siegel, Lou Tuosto
Absent:
None
Guests:
Mary Planding, Renee Kilmer, Tom Brewer, Vavrineck, Trine and Day, member
from the public.
Cabrillo College staff members in attendance:
Paul Anderson, Pegi Ard, Doug Deaver,
Rob Ingram, Brian King
Kris called the meeting to order at 10:00 am.
I.
Introductions:
The committee members introduced themselves.
II.
Agenda Modifications
The agenda was approved unanimously.
III.
Approval of Minutes of November 13, 2006 and February 13, 2007:
The minutes of November 13, 2006 (Brooks/Petersen) were approved.
Abstained: Tila Guerrero.
The minutes of February 13, 2007 (Tuosto/Petersen) were approved.
Abstained: Rodney Brooks.
IV.
2005-06 Audit: Tom Brewer, Auditor, Vavrineck, Trine and Daly.
Vavrineck, Trine and Daly (VTD) audits over 200 school districts annually on bond
expenditures; Tom works with 8 or 9 personally. The criteria used for Cabrillo’s bond
audit are exactly the same as used in other Districts, but there is some variance depending
on the expenditures. Vavrineck, Trine and Daly researched the expectations for a
performance audit at both the state level and with the author of the proposition. The
language was designed to give comfort to voters that financial aspects of the bond were
properly looked after.
Prop 39 requires that Districts provide:
• A Financial audit of bond funds reported separately from the District’s audit.
• A performance audit.
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The Citizens’ Oversight Committee is required to review both audits to be sure they were
completed and to fulfill the oversight responsibility. The financial report is a standard
audit report with a clean opinion. The auditors found no problems.
Lou asked what would have happened if found a problem was found. The District would
have had to post an adjustment and the auditors would have been obligated to issue a
specific letter stating the specific issues.
Rodney asked whether, based on the extensive experience of the auditing firm, whether
Cabrillo’s interest earnings are in line. Tom replied that yes, they are.
Bob asked when remaining money will be sold. Pegi replied that the remaining bonds
were just sold. Progress on all of the projects is moving along quite rapidly.
Lou asked if Cabrillo is adequately represented at the county level with regard to the
investment of Bond funds. Doug replied that the County’s performance with regard to
investments has been very good. Bob noted that the County is so constrained by where
money can be invested, there is no opportunity for risky investments and that there is an
advisory committee to the County Treasury with citizen input. Doug noted that the
difference between the 4.7 and 5% interest rates are being reserved for arbitrage; the
District can’t make any more money on our money. Bob asked where that constraint
originates. Brian replied at the state level.
Performance report: 25% of expenditures were reviewed for 2005-06. Prop 39 requires that
bond funds are segregated and accounted for separately. All reviews were adequate.
Kris commented that Tom’s presentation to the committee gives great confidence. He
asked if it is rare to find Districts not in compliance. Tom replied that yes, it is rare.
Rodney asked if the time lapse between June 30th fiscal year end and a mid-November
audit report is normal. Tom replied that yes, it is normal; the field work for the bond
portion of the audit was completed in November, but the District audit must be complete
to issue the Bond audit. Once field work is complete there is a lot of work in the office to
complete an audit. Typically, it would take 30 days until a report is issued; that would be
speedy. The audit rules just changed, no longer dating the last date of field work, now
dated when all the review is completed. Audits will now be turned around much faster
than before. Pegi stated that the goal is to get the audit done by the end of December.
Pegi asked if the committee would like to increase the percentage of expenditures audited
or structure this in a different way. Rodney replied that as long as it is random, 25% is a
large percentage. Bob asked if it is random. Tom replied that it is a representative
sample. It is possible to do a random sample, however. Bob noted that he is not sure that
is a suitable action. Rodney commented that it doesn’t make sense to look at the small
expenditures if the auditor is not looking at large expenditures. Brian noted that there is a
benefit of having new auditor periodically.
V.
Oral communications: Kris asked if there were any comments from members of the
public. There were none.
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VI.
Project Status Update—Paul Anderson, Doug Deaver, Rob Ingram
Doug reviewed the March 5th and May 7th Facilities Master Plan updates.
•
Scotts Valley: Doug showed pictures of Scotts Valley site with state-of-the-art
classrooms, a dance/yoga studio. Renee noted that the enrollments are remarkable with
25 classes at 100% fill rates. About half are new enrollees. Rodney asked what the
funding source is for the Scotts Valley site. RDA funds. Brian added that Cabrillo is
unable to use bond funds to lease facilities. Kris noted that Cabrillo fulfilled a campaign
promise without having to use the bond funds, which is a very positive moment for the
college. Doug added that staff is talking with the City of Scotts Valley to see if Cabrillo
can be part of their City Center.
•
The Student Activities Center (SAC): The SAC project is well under way and is at
the point of finishing touches. There are 26 parking spaces on the lower level behind
the building. Rob reviewed a handout of the SAC which will be toured after the
meeting. The upper level of the area is waterproof and concrete will be poured on the
slab. Bookstore fixtures will be installed in June. A new food vendor was selected;
staff will work with them to finish off the space. There is a problem with the concrete
contractor on the project, but that is not impacting completion at this time. Not a lot
of extra money on the project but $1 million has been withheld. Rodney asked for
more information about the contractor problem. Doug explained that the building is
on caissons, and the contractor had significant problems installing them which caused
a minimum delay of 200 days and pushed construction into the rainy season creating
delays for other contractors. Staff changed contractors, and the slab on first floor
caused further delays.
Rodney asked whether the problem will to go a performance bond if the contractor
doesn’t have deep pockets. Doug replied that if payment is withheld, it goes to a
performance bond. Pegi noted that it is a tight budget and staff is reserving interest
allocations.
•
Arts Education Complex
Rob explained that a more sophisticated group of contractors is working on this 5
building project. The 2D art building is up and framed, the welding on the 3D art
roof decking is complete. Excellent concrete and steel contracts are working on this
project.
Bob asked if the buildings will withstand the next earthquake. Rob replied that a lot
of concrete is being poured and is well supported. 2D arts could be done by end of
this year. Rodney noted that it is not set to open until fall 2008. Rob and Doug
replied that there are a lot of punch list items to do inside. The theatre has the longest
lead time and is the most technical.
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Other projects:
• The pedestrian bridge is currently on hold. It was originally in the budget at $3M,
but classroom renovation is a higher priority. It is not definitely off the record but
is on hold. As desirable as the bridge is, finishing the buildings is a priority.
• Accessibility is also a priority; once the SAC is open, the path of access is
substantially opened. 3 elevators are associated with the SAC.
•
The Allied Health Parking
Paul explained that the fire pump installation is the only delay. There was an
unreasonably high quote from a contractor and staff had to renegotiate. It will be
open before summer session.
•
Allied Health Buildings: Construction documents will be complete by the end of May.
Bids open at the end of June. There should be ample time to make decisions regarding
ADA access and a bus stop.
Rodney asked if the Department of State Architect (DSA) is slow to approve this
project. Doug replied that the site work was broken out so that site preparation would
be a 4 month project and be complete before the rainy season and there would be fewer
review fees. Rob added that this is a similar scenario to the AEC project. Doug noted
that while there is some risk breaking out parts and that when all bids are done together
it is more practical to budget, but the other risk is inflation. Staff is satisfied that the
construction cost estimates are good estimates. Rodney asked when the opening is
anticipated. Fall 2009, or spring 2010.
•
Watsonville Library Acquisition: Staff turned in another proposal yesterday to the
City of Watsonville. Chances are the current structure on the property will be
demolished. Staff is preparing an EDA grant which will structure what programs go
on in the facility. Pegi hopes to report to the Board in June that Cabrillo has acquired
the property. Rodney asked if parking behind the building is included in the proposal.
Yes, it is.
Kris asked about why demolition of the existing library building is being considered.
Doug replied that a feasibility study was conducted weighing renovation and
rebuilding and it was deemed more cost effective to rebuild rather than renovate.
Kris noted that there may be opposition from folks who might not want to tear down
the old building. Pegi stated that the City of Watsonville will take the murals and that
the building itself is not historic, built in approximately 1975. Staff does not
anticipate a “save the library” movement. Lou asked if Cabrillo is paying a standard
price offered to public. Yes. Brian suggested the City give the building to Cabrillo.
Pegi obtained a separate appraisal and a separate negotiator worked with staff. The
terms of the agreement set a maximum amount for asbestos removal and city fees. It
has been a healthy negotiation.
•
Secondary Effects: A consultant will be hired to assist in the process of determining
the best use of vacated space.
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•
Committee membership: 3 spots are available on the committee for the Senior
Citizen, the college support organization and the student representatives. Terms
expire in August. Tila thought the term expired in June. Pegi will check term dates.
•
Annual report: staff will draft the report for review at the August meeting. Staff
asked for suggestions for improvement or expansion. It was suggested to keep it
simple and inexpensive. Bob asked about where the report is distributed. It is
available online, and is distributed to libraries, newspapers, the faculty and staff
lounge. Tila asked if staff has received any feedback. There has been none. Rodney
suggested adding a direct link to the website and contact name.
The next meeting will be Tuesday, August 7, 2007 at 10:00 a.m. in room 804A.
The meeting was adjourned by Kris Reyes at 11:20 a.m. A tour of the projects followed.
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