1
Cabrillo College Governing Board
Monday, February 6, 2011
Cabrillo College Sesnon House
6500 Soquel Drive
Aptos, California 95003
OPEN SESSION (McPherson Room)
PAGE
1. Call to Order and Roll Call
TIME
5:00
2. Adoption of Agenda
3. Public Comments Regarding Closed Session Items (three minute
time limit per speaker)
Please notify clerk if you desire to speak to the Board.
4. Announcement of Closed Session
5. Adjourn to Closed Session
CLOSED SESSION (Pino Alto Room)
1. Conference with Labor Negotiator (Government Code §54957.6)
District’s Designated Representative: Victoria Lewis
Employee Organization: CCEU
2. Conference with Labor Negotiator (Government Code §54957.6)
District’s Designated Representative: Victoria Lewis
Employee Organization: CCFT
3. Conference with Labor Negotiator (Government Code §54957.6)
District’s Designated Representative: Brian King
Employee Organizations: Management and Confidential
Employees
OPEN SESSION (McPherson Room)

Call to Order and Roll Call
6:00
 Report Out of Closed Session
A. Consent Items
1. Minutes and Consent Agenda (these items are approved when
the agenda is approved unless a Board member wishes to
discuss)
a) Minutes of January 9, 2012
2. Register of Warrants
6:01
5
11
It is recommended that the Governing Board ratify warrant
numbers 11906–12732 for the amount of $4,655,097.60.
3. Ratification: Construction Change Orders
37
It is recommended that the Governing Board ratify the
construction change orders as provided.
4. Budget Transfers by Resolution
It is recommended that the Governing Board approve Resolution
Numbers 007-12 through 014-12 for Budget Transfers 19988
through 20080.
39
2
February 6, 2012
A. Consent Items (continued)
5. Academy for College Excellence grant from Rockefeller
Philanthropy Advisors to support Diego Navarro
49
It is recommended that the Governing Board accept a $49,823
grant from Rockefeller Philanthropy Advisors. It is further
recommended that the Board authorize the Vice President of
Administrative Services to execute and make all necessary
arrangements in relation to this agreement on behalf of the
college.
6. SBDC Humboldt State Grant
51
It is recommended that the Governing Board accept the $140,000
grant from the Humboldt State University Sponsored Programs
Foundation. It is further recommended that the Board authorize
the Vice President of Administrative Services to execute and
make all necessary arrangements in relation to this grant
agreement and any future amendments on behalf of the college.
7. Youth Entrepreneurship Program Grant
53
It is recommended that the Governing Board accept the $150,000
grant from the California Community Colleges Chancellor's Office.
It is further recommended that the Board authorize the Vice
President of Administrative Services to execute and make all
necessary arrangements in relation to this grant agreement and
any future amendments on behalf of the college.
8. CEED Professional Services Contract
55
It is recommended that the Governing Board authorize the Vice
President of Administrative Services to execute a professional
service contract with Scott Johnson.
9. Human Resources Management Report
57
It is recommended that the Governing Board ratify and/or approve
the human resources management report.

Introduction of Newly Appointed Faculty and Staff

Oral Communications
Members of the audience may speak to non-agenda items
(three minute time limit per speaker)
Special Presentation
Tutorials – Helping students overcome learning hurdles
6:10
B. Oral Reports
1. Board Members’ Reports
6:20
2. Student Trustee’s Report
6:25
3. Superintendent’s Report
6:28
4. CCEU
6:31
Comments on issues of interest to the Cabrillo Classified
Employees Union
3
February 6, 2012
B. Oral Reports (continued)
5. CCFT
6:34
Comments on issues of interest to the Cabrillo College
Federation of Teachers
6. Faculty Senate
6:37
Comments on issues of interest to the Faculty Senate
C. Action Items
1. Board Policy Revisions: Office of the President, Second Reading
59
It is recommended that the Governing Board approve the
revisions to the Board policies as presented.
2. 2012-13 Non-Resident Tuition Fee
63
It is recommended that the Governing Board (1) establish the perunit non-resident tuition fee for 2012-13 at $200 based on District
Computed Cost, and (2) establish a capital outlay at $4 per unit
for students who are both residents and citizens of a foreign
country.
3. Resolution 005-12: 2012-13 Mid-Year Tax and Revenue
Anticipation Notes (TRANS)
67
It is recommended that the Governing Board adopt Resolution
005-12 delegating to the Vice President of Business Services the
authority to decide on participation in the Community College
League of California cash reserve program at the time when
interest, costs and reinvestment rates are known.
4. Award of Contract: District, Foundation, Bond Audit 2012-14
99
It is recommended that the Governing Board authorize the
District, to enter into a contract with Vavrinek, Trine, Day &
Company for audit services for 2012 through 2014.
5. Lease Agreement Renewal: Baskin Center, 2011-12
101
It is recommended that the Governing Board authorize the District
to contract with SCCCC for leasing of the Baskin Center for 12
months commencing November 1, 2011.
6. Lease Agreement Amendment: Scotts Valley Center January,
2012 – June 2015
103
It is recommended that the Governing Board authorize the District
to enter into a lease agreement amendment with Scotts Valley
Partners for 7,350 square feet at 104 Whispering Pines Drive,
Scotts Valley from January 2012 thru June, 2015.
7. Negotiated Agreement for 2011-12: CCEU and District
107
It is anticipated that the District will submit a negotiated
agreement between CCEU and the District for 2011-12.
8. Chancellor’s Office Classified Employee of the Year Nomination
It is recommended that the Governing Board approve the
nomination of John Welch as California Community College
Employee of the Year.
109
6:40
4
February 6, 2012
D. Information Items
1. 2012-13 Budget Planning Update
111
7:00
The 2012-13 budget planning update is provided for Governing
Board information.
2. 2011-12 Cash Flow Update
121
The 2011-12 cash flow update is provided for Governing Board
information.
3. Facilities Master Plan Update
125
The Facilities Master Plan update is provided for Governing
Board information.
4. Financial Reports
129
The financial reports are provided for Governing Board
information.
5. Counseling Update
151
The counseling update is provided for Governing Board
information.
6. International Student Delegations Program – Annual Report
2011-2012
155
The International Student Delegations Program Annual Report is
provided for Governing Board information.
7. Tutorials Update
157
The tutorial update is provided for Governing Board information.
8. 2011 Fact Book Report
159
The Fact Book report is provided for Governing Board
information.
9. Cabrillo College Monthly Calendar
161
The Cabrillo College activities calendar for the month of February
is provided for Governing Board information.
10. Agenda for Next or Future Board Meetings
The Cabrillo College Governing Board may discuss items to be
placed on the agenda for the future Board meetings.
CLOSED SESSION
ADJOURN
7:30
For ADA related meeting accommodations, contact Dominique Hansen, Executive Assistant to the
President, at (831) 479-6306 at least 24 hours in advance of the meeting.
5
Minutes of Meeting
CABRILLO COLLEGE GOVERNING BOARD
January 9, 2012
REGULAR MEETING
The regular monthly meeting of the Cabrillo College Governing Board was held at
the Sesnon House, 6500 Soquel Drive, Aptos, California on Monday, January 9,
2012. Vice Chair Rachael Spencer opened the meeting in Open Session at 4:30 pm.
Roll was taken; present were Chair Smith, Trustees Rebecca Garcia, Gary Reece,
Rachael Spencer, Katy Stonebloom, and Donna Ziel. Clerk Spencer asked for Public
Comments on Closed Session items. There were no public comments.
Closed Session items were announced and the meeting was adjourned to Closed
Session at 4:30 p.m. Closed Session was adjourned at 6:15 pm.
ROLL CALL
Chair Al Smith called the Open Session to order at 6:15 p.m. Other Trustees present
were Rebecca Garcia, Gary Reece, Rachael Spencer, Katy Stonebloom, and Donna
Ziel. Also present were members of the community, college faculty, staff and
students.
REPORT OUT OF CLOSED SESSION
Chair Smith stated that there was nothing to report out of Closed Session.
CALL TO ORDER
ROLL CALL
REPORT OUT OF
CLOSED SESSION
Chair Smith declared conflict of interest on closed session items #4, conference
with real property negotiations (Government Code §54956.8), Property: 104
Whispering Pines, Scotts Valley, Agency Negotiator: Brian King, Negotiating
Party: Matt Sheldon, JR Parish, Owner: Whispering Pines Association, Under
Negotiation: Terms of Payment, Conditions. Trustee Smith excused himself and
did not participate in the discussion.
Chair Smith recognized the 2011 Board Chair Katy Stonebloom and thanked her
for her time and efforts as Board Chair.
PROCEDURAL ITEMS
It was moved and seconded (Garcia/Stonebloom) to approve the consent agenda
items, including the minutes from the December 5, 2011 meeting.
APPROVAL OF
CONSENT AGENDA
AND MINUTES
The motion carried with the following roll call vote:
Student Trustee Advisory Vote: Absent
AYES: Garcia, Reece, Smith, Spencer, Stonebloom, and Ziel
NOES: None
ABSENT: True
ABSTAIN: None
INTRODUCTION OF NEWLY APPOINTED FACULTY AND STAFF
Vice President Kilmer introduced the new STEM grant coordinator.
ORAL COMMUNICATIONS
None.
SPECIAL PRESENTATION
Vice President Kilmer introduced Athletic Director Dale Murray who discussed
Cabrillo athletics and introduced a number of students and an Athletics Department
1 of 5
INTRODUCTION OF
NEWLY APPOINTED
FACULTY AND STAFF
ORAL
COMMUNICATIONS
6
Minutes of Meeting
January 9, 2012
staff member. The athletes and staff member shared their Athletic Department
experiences with the Board.
ORAL REPORTS
Board Trustees’ Reports
Trustee Garcia reported that she attended the EOPS/CARE holiday luncheon; she
also attended the Second Harvest Holiday Fundraiser. Trustee Garcia was pleased
that the Student Senate met their fundraising goal. Trustee Garcia reported that her
granddaughter is one class away from finishing her radiology prerequisite and
receiving her AS degree. For two semesters in a row Trustee Garcia’s grandaugher
cannot get into her needed class. Trustee Garcia asked Vice President BaileyFougnier if there is anyway students who are that close can receive priority. Vice
President Bailey-Fougnier responded that her priority is lower because she took units
somewhere else, so Trustee Garcia’s granddaughter has less priority. Priority is
based on credits completed at an institution. Vice President Kilmer said the state
does not allow the college to give priority to individuals; it has to be by category.
Veterans are an example. By regulation the college cannot get individual students in
a class.
ORAL REPORTS
BOARD TRUSTEE
REPORTS
Trustee Garcia then read a letter she wrote to President King in which Trustee Garcia
states that she is resigning from the Cabrillo College Governing Board effective at
the end of the January 9, 2012 Governing Board meeting. Trustee Garcia said
deciding to resign was a very difficult but Trustee Garcia realized that she no longer
can be the best trustee needed for District V. Trustee Garcia added that serving as a
trustee has been a highlight of her life. Trustee Garcia believes the Cabrillo
Governing Board is one of the best community college Governing Boards out there.
Chair Smith said Trustee Garcia has been the trustee who always out looking for best
practices and Trustee Garcia’s resignation will create a large void.
Trustee Stonebloom said she it has been an honor to serve with Trustee Garcia.
Trustee Reece said he does not know anyone who spent more time trying to advance
Cabrillo and wished Trustee Garcia well in her future endeavors.
Trustee Ziel thanked Trustee Garcia for taking her under her wing and mentoring
Trustee Ziel during Trustee Ziel’s first year on the Board.
Trustee Spencer reported that a constituent, who was concerned about access to the
radiology program, had contacted her. Trustee Spencer said she and Trustee Ziel met
with Health, Athletics, Wellness, and Kinesiology Dean Kathie Welch, President
King, and Planning and Research Director Craig Hayward to discuss the issue.
Trustees Spencer and Ziel learned about all the legal requirement the college follows,
which are very prescribed, and do not leave many options for alternative ways of
admitting students.
Student Trustee’s Report
None.
Superintendent’s Report
President King acknowledged all that Trustee Garcia contributed over the years and
2 of 5
STUDENT
TRUSTEE’S
REPORT
SUPERINTENDENT’S
REPORT
7
Minutes of Meeting
January 9, 2012
thanked Trustee Garcia for her leadership and support.
Faculty Senate
Senate President Mangin said he will miss Trustee Garcia and all she brings to the
table and thanked Trustee Garcia for her work on the Board. Senate President
Mangin reported that the Program Elimination and Reeducation Task Force
completed their work and Senate President Mangin applauded the collegiality and
rational way the issues are being addressed.
CCFT
Senate President Mangin also said the Faculty Senate plans to work with the
administration, especially with Student Services, on what the college can apply from
the Task Force on Student Success report.
Senate President Mangin closed his remarks by asking everyone to read Invisible
Man by Ralf Ellison. A public forum and book talk is planned for Thursday, March
1 at 7 p.m. at the Cabrillo Musical Recital Hall.
CCEU
No report.
CCFT
No report.
FACULTY SENATE
ACTION ITEMS
Board Policy Revisions: Office of the President, Second Reading
It was recommended that Board approved the revisions to the Board policies as
presented.
ACTION ITEMS
BOARD POLICY
REVISIONS: OFFICE OF
THE PRESIDENT,
SECOND READING
CCEU
A motion was made (Reece/Spencer) to approve the Board policies.
The motion carried.
2012 – 2013 Legislative Goals
It was recommended that the Governing Board approve the 2012 – 2013 legislative
goals as presented.
2012-2013
LEGISLATIVE GOALS
A motion was made (Ziel/Reece) to authorize the legislative goals.
Trustee Ziel proposed an amendment to remove the word “other” from item
number 7. The amendment was accepted.
The motion carried.
Fall 2011 Faculty Grant Awards
It was recommended that the Governing Board accept the donation of $20,205
from the Cabrillo College Foundation.
FALL 2011 FACULTY
GRANT AWARDS
A motion was made (Spencer/Ziel) to accept the donation from the Foundation.
The motion carried.
2011-12 Crocker Endowment Grants
It was recommended that the Governing Board accept the Crocker Endowment
Grant Awards donation of $25,230.
3 of 5
2011-12 CROCKER
ENDOWMENT GRANTS
8
Minutes of Meeting
January 9, 2012
A motion was made (Ziel/Stonebloom) to accept the donation.
The motion carried.
Recommend Extension to the contract of the Superintendent/President
It was recommended that the Governing Board approve the extension of the
Superintendent/President’s contract by one year (until June 30, 2016).
A motion was made (Spencer/Reece) to approve the contract extension.
The motion carried.
INFORMATION ITEMS
Budget Update
The budget update was provided for Governing Board information.
Facilities Master Plan Project Status
The Facilities Master Plan project status was provided for Governing Board
information.
RECOMMEND
EXTENSION TO THE
CONTRACT OF THE
SUPERINTENDENT/
PRESIDENT
BUDGET UPDATE
FACILITIES MASTER
PLAN PROJECT
STATUS
Trustee Garcia asked when the college will begin holding classes at the Green
Technology Center. Vice President Kilmer said classes will likely start in the fall.
Vice President Lewis acknowledged Information Technology (IT) Director Dan
Borges and the IT staff who have been working diligently on the server room and
Datatel upgrades. Vice President Lewis also acknowledged Director of Facilities
Planning and Plant Operations Joe Nugent who has been working on the numerous
moves and renovations related to the STEM grant.
Financial Reports
The Financial Reports were provided for Governing Board information.
Trustee Reece asked if the college plans to conduct a foodservice RFP. Vice
President Lewis responded that Administrative Services is in the process of
finalizing a RFP. The RFP should go out sometime in the next month. In
addition, after consulting the Foodservice/Bookstore/Duplications Task Force,
foodservice, the bookstore and duplications operations will be combined in order
to make them more sustainable. The college is moving forward with recruiting an
auxiliary services manager who will oversee all three operations. The college will
still outsource foodservice, but the auxiliary services manager will oversee the
operation.
Spring 2012 Flex Calendar
The Spring 2012 Flex Calendar was provided for Governing Board information.
Trustee Stonebloom recognized how much of the Flex calendar is directed towards
instruction and how global issues and diversity are woven into Flex Week
activities.
Board Policies, President’s Office, First Reading
The Board Policies, President’s Office, First Reading was provided for Governing
Board information.
Trustee Reece asked to defer Board Policy 1190 until the legal requirements are
4 of 5
FINANCIAL REPORTRS
SPRING 2012 FLEX
CALENDAR
BOARD POLICIES,
PRESIDENT’S OFFICE,
FIRST READING
9
Minutes of Meeting
January 9, 2012
verified.
Cabrillo College Monthly Calendar
The Cabrillo College activities for the month of January were presented for
Governing Board information.
Agenda for Next or Future Board Meetings
The Cabrillo College Governing Board discussed items to be placed on the agenda
for the future Board meetings.
CLOSED SESSION
ADJOURN
The open session of the Cabrillo College Governing Board was adjourned at 7:17
p.m.
Respectfully submitted,
Secretary
5 of 5
CABRILLO COLLEGE
MONTHLY CALENDAR
AGENDA FOR NEXT
BOARD MEETING
CLOSED SESSION
ADJOURNMENT
10
11
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
February 6, 2012
SUBJECT:
ENCLOSURE(S)
Register of Warrants
REASON FOR BOARD CONSIDERATION
ACTION
ITEM NUMBER
Page 1 of 26
A.2
BACKGROUND:
The following warrants are submitted for Governing Board ratification:
REGISTER NO.
DATE
WARRANT NO.
35
36
37
38
39
40
41
42
12-14-11
12-15-11
12-19-11
12-21-11
01-04-12
01-05-12
01-12-12
01-19-12
11906-11926
11927-12140
12141-12168
12169-12377
12378-12382
12383-12483
12484-12583
12584-12732
TOTAL AMOUNT
58,858.10
529,609.43
159,906.77
1,895,994.06
1,583.43
671,208.20
1,198,506.67
139,430.94
$4,655,097.60
* NOTE: Student refund and financial-aid registers totaling $436,311.28 are available in the Business Office
for review.
RECOMMENDATION:
It is recommended that the Governing Board ratify warrant numbers 11906–12732 for the amount of
$4,655,097.60.
Administrator Initiating Item:
Roy Pirchio
Victoria Lewis
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
 No
Final Disposition
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
February 6, 2012
SUBJECT:
Ratification: Construction Change Orders
REASON FOR BOARD CONSIDERATION
ACTION
ENCLOSURE(S)
ITEM NUMBER
Page 1 of 2
A.3
BACKGROUND:
In accordance with Board Policy 4155, the attached change orders over $25,000 and less than 10% of the
original contract value are submitted for Governing Board ratification.
Continued on page 2
FISCAL IMPACT:
$8,941 Funded from an augmentation of scheduled maintenance funds and the current project contingency.
RECOMMENDATION: It is recommended that the Governing Board ratify the construction change
orders provided as an attachment.
Administrator Initiating Item:
Joe Nugent
Victoria Lewis
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
 Yes  No
 Yes  No
Final Disposition
Ratification: Construction Change Orders: cont.
Project Green
Tech
Center
Change order #
None this month
Contractor
Dilbeck
Amount
Description
0 Total Change Order
Green Technology Center
Project
Watsonville Server Room
AC Upgrade
Change order #
PCO 001
PCO 002
PCO 003
Watsonville Server Room AC
Upgrade
Project 800 Bldg. Moves
Phase I
Change order #
100 Building
SAC offices
SAC offices
2030
SAC offices
Project 800 Bldg. Moves
Phase I
38
Contractor
Geo. Wilson
Amount
Description
3,858 Upgrade AC units from residential to commercial units.
4,716 Add electrical to scope of work.
368 Repairs to the ceiling tiles previously damaged.
8,941 Total Change Order
Michael Wolcott
Construction
Amount
622
4,547
3,307
2,117
1,300
Total contract for services not to exceed $45,000 (existing
contract is $29,274)
Description
Add new door to 103
Add wall to allow for furniture placement
Add door glazing
Paint offices
Paint offices
11,893 Total Change Order
Note: These change orders are reflected in the Facilities Master Plan (FMP) Status Report.
39
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
February 6, 2012
SUBJECT:
Budget Transfers by Resolution
REASON FOR BOARD CONSIDERATION
ACTION
ENCLOSURE(S)
ITEM NUMBER
Page 1 of 9
A.4
BACKGROUND:
The following resolutions are submitted for Governing Board approval:
Resolution Number
007-12
General Fund transfers between expenditure classifications
Resolution Number
008-12
General Fund augmentations: CEED/BAWFC, CEED/Gates,
County Office of Education, Crocker Endowment 11-12,
Dominican Hospital PY3, Library, SBDC/HSV State
Resolution Number
009-12
Child Development Fund transfers between expenditure classifications
Resolution Number
010-12
Child Development Fund augmentations: HAAS/Children’s
Center – CRPM 1085
Resolution Number
011-12
Building Fund transfers between expenditure classifications
Resolution Number
012-12
Revenue Bond Fund transfers between expenditure classifications
Resolution Number
013-12
Bond Fund augmentations: STEM
Resolution Number
014-12
Trust and Agency Fund augmentations: CARE/EOPS
FISCAL IMPACT:
A budget augmentation of expenditures in the General Fund in the amount of $250,413.
RECOMMENDATION:
It is recommended that the Governing Board approve Resolution Numbers 007-12 through 014-12 for
Budget Transfers 19988 through 20080.
Administrator Initiating Item:
Graciano Mendoza
Victoria Lewis
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
 No
Final Disposition
40
GENERAL FUND
RESOLUTION NUMBER
007-12
WHEREAS, budget changes based on the developing needs of programs are
often required, and
WHEREAS, the following transfers do not result in an increase in the total
amount of the adopted budget;
ACCOUNT
NUMBER
DESCRIPTION
DECREASE
1000
Certificated Salaries
2000
Classified Salaries
3000
Fringe Benefits
4000
Supplies
5000
Other Expenses
6000
Capital Outlay/Site
7000
Other Outgo
8000
Revenue
INCREASE
$
$
68,116
70,547
12,565
43,851
123,801
68,754
16,437
42,629
TOTAL
$
223,350
$
223,350
NOW, THEREFORE, BE IT HEREBY RESOLVED that the Cabrillo College
Governing Board approves the General Fund budget transfers.
I certify that the foregoing resolution was adopted at the regular meeting of
the Cabrillo College Governing Board held on February 6, 2012.
DATE: _______________________
___________________________________
Secretary
AYES:
NOES:
ABSTAIN:
ABSENT:
Page 2
41
GENERAL FUND AUGMENTATIONS
RESOLUTION NUMBER
008-12
WHEREAS, Cabrillo College will receive funds not included in the 2011-12
budget, and
WHEREAS, Cabrillo College will receive budget adjustments for special federal
and state programs that develop during the school year, and
WHEREAS, the following budget adjustments are necessary in externally funded
programs:
ACCOUNT NUMBER
DESCRIPTION
INCREASE/DECREASE
Income
8000
Program Funds
$
250,413
Total Increase
$
250,413
1000
Certificated Salaries
$
66,230
2000
Classified Salaries
29,193
3000
Fringe Benefits
22,863
4000
Supplies
34,965
5000
Operating Expenses
19,255
6000
Capital Outlay/Site
6,323
7000
Other Outgo
Expenditures
Total Increase
71,584
$
250,413
NOW, THEREFORE, BE IT HEREBY RESOLVED THAT the Cabrillo College
Governing Board authorizes that the 2011-12 budget of income and expenditures be
increased by $250,413.
I certify that the foregoing resolution was adopted at the regular meeting of
the Cabrillo College Governing Board held on February 6, 2012.
DATE: _______________________
___________________________________
Secretary
AYES:
NOES:
ABSTAIN:
ABSENT:
Page 3
42
CHILD DEVELOPMENT FUND
RESOLUTION NUMBER
009-12
WHEREAS, budget changes based on the developing needs of programs are
often required, and
WHEREAS, the following transfers do not result in an increase in the total
amount of the adopted budget;
ACCOUNT
NUMBER
DESCRIPTION
DECREASE
1000
Certificated Salaries
2000
Classified Salaries
3000
Fringe Benefits
$
3,525
4000
Supplies
$
100
5000
Other Expenses
6000
Capital Outlay/Site
7000
Other Outgo
TOTAL
$
3,625
INCREASE
$
3,625
$
3,625
NOW, THEREFORE, BE IT HEREBY RESOLVED that the Cabrillo College
Governing Board approves the Child Development Fund budget transfers.
I certify that the foregoing resolution was adopted at the regular meeting of the
Cabrillo College Governing Board held on February 6, 2012.
DATE: _______________________
___________________________________
Secretary
AYES:
NOES:
ABSTAIN:
ABSENT:
Page 4
43
CHILD DEVELOPMENT FUND AUGMENTATIONS
RESOLUTION NUMBER
010-12
WHEREAS, Cabrillo College will receive funds not included in the
2011-12 budget, and
WHEREAS, the following budget adjustments are necessary in externally
funded programs:
ACCOUNT NUMBER
DESCRIPTION
INCREASE/DECREASE
Income
8000
Program Funds
$
19,575
Total Increase
$
19,575
$
19,575
$
19,575
Expenditures
1000
Certificated Salaries
2000
Classified Salaries
3000
Fringe Benefits
4000
Supplies
5000
Operating Expenses
6000
Capital Outlay/Site
7000
Other Outgo
Total Increase
NOW, THEREFORE, BE IT HEREBY RESOLVED THAT the Cabrillo College
Governing Board authorizes that the 2011-12 budget of income and expenditures be
increased by $19,575.
I certify that the foregoing resolution was adopted at the regular meeting of the
Cabrillo College Governing Board held on February 6, 2012.
DATE: _______________________
___________________________________
Secretary
AYES:
NOES:
ABSTAIN:
ABSENT:
Page 5
44
BUILDING FUND
RESOLUTION NUMBER
011-12
WHEREAS, budget changes based on the developing needs of programs are
often required, and
WHEREAS, the following transfers do not result in an increase in the total
amount of the adopted budget;
EXPENDITURES
ACCOUNT
NUMBER
DESCRIPTION
1000
Certificated Salaries
2000
Classified Salaries
3000
Fringe Benefits
4000
Supplies
5000
Other Expenses
6000
Capital Outlay/Site
7000
Other Outgo
TOTAL
DECREASE
$
$
INCREASE
18,704
18,704
$
18,704
$
18,704
NOW, THEREFORE, BE IT HEREBY RESOLVED that the Cabrillo College Governing
Board approves the Building Fund budget transfers.
I certify that the foregoing resolution was adopted at the regular meeting of the Cabrillo
College Governing Board held on February 6, 2012.
DATE: _______________________
___________________________________
Secretary
AYES:
NOES:
ABSTAIN:
ABSENT:
Page 6
45
REVENUE BOND FUND
RESOLUTION NUMBER
012-12
WHEREAS, budget changes based on the developing needs of programs are
often required, and
WHEREAS, the following transfers do not result in an increase in the total
amount of the adopted budget;
EXPENDITURES
ACCOUNT
NUMBER
DESCRIPTION
DECREASE
1000
Certificated Salaries
2000
Classified Salaries
3000
Fringe Benefits
4000
Supplies
5000
Other Expenses
6000
Equipment
7000
Other Outgo
TOTAL
$
1,510
$
1,510
INCREASE
$
1,510
$
1,510
NOW, THEREFORE, BE IT HEREBY RESOLVED that the Cabrillo College
Governing Board approves the Bond Fund budget transfers.
I certify that the foregoing resolution was adopted at the regular meeting of the
Cabrillo College Governing Board held on February 6, 2012.
DATE: _______________________
___________________________________
Secretary
AYES:
NOES:
ABSTAIN:
ABSENT:
Page 7
46
BOND FUND AUGMENTATIONS
RESOLUTION NUMBER
013-12
WHEREAS, Cabrillo College will utilize available fund balance not included in
the 2011-12 budget, and
WHEREAS, Cabrillo College will receive budget adjustments for special projects
that develop during the school year, and
WHEREAS, the following budget adjustments are necessary in externally funded
programs:
ACCOUNT NUMBER
DESCRIPTION
INCREASE/DECREASE
Fund Balance
3900
Fund Balance
$
248,283
Total Decrease
$
248,283
Expenditures
1000
Certificated Salaries
2000
Classified Salaries
3000
Fringe Benefits
4000
Supplies
5000
Operating Expenses
$
25,000
6000
Equipment
$
223,283
7000
Other Outgo
$
248,283
Total Increase
NOW, THEREFORE, BE IT HEREBY RESOLVED THAT the Cabrillo College
Governing Board authorizes that the 2011-12 budget of expenditures be increased by
$248,283.
I certify that the foregoing resolution was adopted at the regular meeting of
the Cabrillo College Governing Board held on February 6, 2012.
DATE: _______________________
___________________________________
Secretary
AYES:
NOES:
ABSTAIN:
ABSENT:
Page 8
47
TRUST & AGENCY FUND AUGMENTATIONS
RESOLUTION NUMBER
014-12
WHEREAS, Cabrillo College will receive funds not included in the
2011-12 budget, and
WHEREAS, Cabrillo College will receive budget adjustments for special federal
and state programs that develop during the school year, and
WHEREAS, the following budget adjustments are necessary in externally funded
programs:
ACCOUNT NUMBER
Income
8000
Expenditures
1000
2000
3000
4000
5000
6000
7000
DESCRIPTION
INCREASE/DECREASE
Program Funds
Total Increase
$
$
42,629
42,629
Certificated Salaries
Classified Salaries
Fringe Benefits
Supplies
Operating Expenses
Equipment
Other Outgo
Total Increase
$
$
42,629
42,629
NOW, THEREFORE, BE IT HEREBY RESOLVED THAT the Cabrillo College
Governing Board authorizes that the 2011-12 budget of income and expenditures be
increased by $42,629.
I certify that the foregoing resolution was adopted at the regular meeting of
the Cabrillo College Governing Board held on February 6, 2012.
DATE: _______________________
___________________________________
Secretary
AYES:
NOES:
ABSTAIN:
ABSENT:
Page 9
48
49
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
February 6, 2012
SUBJECT:
Academy for College Excellence grant from Rockefeller
Philanthropy Advisors to support Diego Navarro
REASON FOR BOARD CONSIDERATION
ENCLOSURE(S)
Page 1 of 1
ITEM NUMBER
ACTION
A.5
Background:
The college has received a $49,823 grant from Rockefeller Philanthropy Advisors to support faculty member
Diego James Navarro’s work directing the Academy for College Excellence external operations. The funds
cover 39% of his salary and benefits for his teaching requirements for the Spring 2012 semester and include
an 8% indirect fee cost.
Fiscal Impact:
An increase of $49,823 in revenues and expenditures
Recommendation:
It is recommended that the Governing Board accept a $49,823 grant from Rockefeller Philanthropy Advisors.
It is further recommended that the Board authorize the Vice President of Administrative Services to execute
and make all necessary arrangements in relation to this agreement on behalf of the college.
Administrator Initiating Item:
James Weckler, Dean, BELA
Renée M. Kilmer, Vice President, Instruction
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
 Yes  No
 Yes  No
Final Disposition
50
2
51
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
February, 6 2012
SUBJECT:
Acceptance of SBDC Contract with Humboldt State University
REASON FOR BOARD CONSIDERATION
ITEM NUMBER
ACTION
ENCLOSURE(S)
Page 1 of 1
A.6
Background:
The Central Coast Small Business Development Center at Cabrillo College receives its federal dollars from
the Small Business Administration through an annual contract with the Humboldt State University (HSU)
Office of Sponsored Programs. HSU serves as the regional lead agency and administrator for the ten Small
Business Development Centers in Northern California. Operation of the SBDC program is also supported by
other local grants. It is anticipated that this contract will be augmented with new state funding.
Humboldt State University intends to renew the SBDC’s operating contract and has sent a letter of intent.
This contract is projected to be funded at a minimum of $140,000. The contract expires on December 31,
2012.
Fiscal Impact:
An increase of $140,000 in revenue and expenditures.
Recommendation:
It is recommended that the Governing Board accept the $140,000 grant from the Humboldt State University
Sponsored Programs Foundation. It is further recommended that the Board authorize the Vice President of
Administrative Services to execute and make all necessary arrangements in relation to this grant agreement
and any future amendments on behalf of the college.
Administrator Initiating Item:
Rock Pfotenhauer, Dean, CEED
Renée M. Kilmer, Vice President, Instruction
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
 Yes No
 Yes  No
Final Disposition
52
53
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
February 6, 2012
SUBJECT:
Youth Entrepreneurship Program Grant
REASON FOR BOARD CONSIDERATION
ACTION
ENCLOSURE(S)
ITEM NUMBER
Page 1 of 1
A.7
Background:
Cabrillo College’s Business and Entrepreneurship Center (BEC) has been awarded a $150,000 grant from the
California Community Colleges Chancellor's Office to continue the Youth Entrepreneurship Program (YEP)
from January 10, 2012 through December 31, 2012. It is anticipated that the outcomes of this grant will be
realized through collaboration with Your Future Is Our Business, the Regional Occupational Program and the
entrepreneurship classes of regional high schools and community colleges.
The Youth Entrepreneurship Program is designed to foster the creation of small businesses and the
instruction of entrepreneurship and small business management to youth between the ages of 14 and 28. The
YEP program serves the 17 greater San Francisco Bay area Community Colleges and will be hosting
business plan competitions, entrepreneurial fairs and linking young entrepreneurs to a network of college
faculty and other advisors. The YEP program is a subsidiary of the Small Business Development Center’s
Business and Entrepreneurship Center.
Fiscal Impact:
An increase in the amount of $150,000 in revenue and expenditures.
Recommendation:
It is recommended that the Governing Board accept the $150,000 grant from the California Community
Colleges Chancellor's Office. It is further recommended that the Board authorize the Vice President of
Administrative Services to execute and make all necessary arrangements in relation to this grant agreement
and any future amendments on behalf of the college.
Administrator Initiating Item:
Rock Pfotenhauer, Dean, CEED
Renée M. Kilmer, Vice President, Instruction
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
 Yes  No
 Yes  No
Final Disposition
54
55
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
February 6, 2012
SUBJECT:
CEED Professional Service Contract
REASON FOR BOARD CONSIDERATION
ACTION
ENCLOSURE(S)
ITEM NUMBER
Page 1 of 1
A.8
Background:
On occasion the Career Education and Economic Development (CEED) division undertakes projects that
cannot be accomplished with existing staff. CEED has retained a consultant, Scott Johnson, to reorganize and
manage the expansion of the Cabrillo Extension program. We originally contracted for the first part of the
fiscal year. Based on successful completion of that work, we now need a contract for the remainder of the
year. The new contract combined with the one just completed brings the total amount to $92,212, a level that
requires board approval.
Fiscal Impact:
Expenditures of $92,212 funded by Extension program revenues.
Recommendation:
It is recommended that the Governing Board authorize the Vice President of Administrative Services to
execute a professional service contract with Scott Johnson.
Administrator Initiating Item:
Rock Pfotenhauer, Dean, CEED
Renée M. Kilmer, Vice President, Instruction
Academic and Professional
Matter
If yes, Faculty Senate
Agreement
Senate President Signature
 Yes
 No
 Yes  No
Final Disposition
56
57
AGENDA ITEM BACKGROUND
TO:
GOVERNING BOARD
FROM:
PRESIDENT
DATE
February 6, 2012
SUBJECT:
Human Resources Management Report
REASON FOR BOARD CONSIDERATION
ENCLOSURE(S)
ITEM NUMBER
ACTION
Page 1 of 2
A.9
BACKGROUND:
Requesting ratification and/or approval of the following employment transaction:
FISCAL IMPACT: Within budgeted FTE’s.
RECOMMENDATION: It is recommended that the Governing Board ratify and/or approve the
transaction as described on the attached page.
Administrator Initiating Item:
Loree McCawley/Victoria Lewis
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
 Yes  No
 Yes  No
Final Disposition
58
Name
Department/Division
Position
Effective Date
Action
VAUGHAN, Carla
HAWK
Instructional Division Assistant
TBC
Retirement
(DOH: 11/14/88)
Note: Appointments are subject to successful completion of all employment regulatory compliance requirements
February 2012
Page 2 of 2
59
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
February 6, 2012
SUBJECT:
Board Policy Revisions: Office of the President, Second Reading
REASON FOR BOARD CONSIDERATION
ITEM NUMBER
Action
ENCLOSURE(S)
Page 1 of 4
C.1
Background:
The District is in the process of revising Board Policies utilizing the California Community College
League’s model policies as applicable.
Attached are revisions to some of the Board Policies in the Office of the President as listed below:
Board Policy
BP 1000 – District Statement of Philosophy
BP 1310 – Board Self-Evaluation
Action
Update to reflect League Language
Update to reflect League Language
Board policies are presented as a second reading for Governing Board review for approval.
Administrator Initiating Item:
Brian King
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
 Yes  No
 Yes  No
Final Disposition
60
Chapter One: Bylaws of the Governing Board
BP 1000
District Statement of Philosophy
(League BP 1200)
Values
The Governing Board, Faculty, Staff and Administration of Cabrillo College affirm the following
values which form the foundation of this institution. We believe that:
• Education is a necessity to a democratic society
• The quality of life is improved through education
• Learning is a lifelong process
• Desire to learn should be encouraged
• Community members of all backgrounds have the right to pursue their life goals through
higher education
• Educational institutions must respect and accommodate the diversity of individual
backgrounds, abilities and interests
Mission
Cabrillo College is a dynamic, diverse and responsive educational community dedicated to
helping all students achieve their academic, career, and personal development goals.
The Cabrillo College Mission Statement expresses the general purposes for which the college
exists. It is intended to embody the collective values held by the members of the college.
Vision Statement
Cabrillo College is passionate about developing critical thinking, honing oral and written
communication and enhancing global awareness, while cultivating personal and
professional responsibility in our students. Exploration, innovation, creativity, and
implementation of a variety of teaching methods, including technology literacy, are
hallmarks of our approach to learning. We help students of varying skill levels achieve
their potential, and consider everyone in the college part of a community of learners who
are treated with dignity and respect. Cabrillo College supports a climate of diversity, selfempowerment and sustainability, with a strong sense of social justice.
As an integral part of Santa Cruz County, Cabrillo College is an accessible gateway to
prosperity that provides education for all, supporting the local economy and improving
economic vitality. We serve students who have goals of transfer, career preparation, basic
skills, personal fulfillment and retraining through an inclusive and effective learning
environment. Students will leave with greater knowledge and a richer expectation of
themselves.
The mission and visions statement are evaluated and revised on a regular basis.
The purposes of Cabrillo College are to:
• Provide open access to education
• Promote high quality learning and teaching in a supportive environment
• Transmit knowledge
_____________________________________________________________________________________________
BP 1000
Page 1 of 1
District Statement of Philosophy
61
Chapter One: Bylaws of the Governing Board
• Cultivate critical thinking and responsible citizenship
• Help students identify their goals and achieve their potentials
• Serve as a resource for meeting the community’s educational needs and interests
• Promote awareness of and appreciation for diversities of cultures and ethnic groups
More specifically, in order to enhance and support learning and teaching, the purposes are further
defined in that Cabrillo College will:
• Prepare students to transfer to a four-year institution
• Provide preparation for employment through occupational training programs
• Provide basic skills education
• Offer opportunities for lifelong learning and continuing education
• Provide counseling and other support services
• Ensure sound employment practices and encourage high work standards
Goals
To accomplish our mission, specific goals will be established as part of an annual planning process
which also will set priorities among goals.
Legal Reference: None
Accreditation Standard I
Adopted: March 7, 1988
Revised: February 6, 2012
_____________________________________________________________________________________________
BP 1000
Page 1 of 2
District Statement of Philosophy
62
Chapter One: Bylaws of the Governing Board
BP 1310
Board Self-Evaluation
(League BP 2745)
The Board is committed to assessing its own performance as a Board in order to identify its
strengths and areas in which it may improve its functioning.
To that end, the Board has established the following processes:
On an annual basis a periodic basis, at least annually, the Board will undergo a process of selfevaluation. The purpose of Board self-evaluation is to identify those areas of Board functioning
which are working well and those which may need improvement.
At least once every three years Prior to the self-evaluation, members of the college community,
including faculty, staff, students, and community members will be invited to provide written input
to the evaluation process in the format developed for this purpose.
Adopted: June 6, 1994
Revised: February 6, 2012
_____________________________________________________________________________________________
BP 1310
Page 1 of 1
Board Self-Evaluation
63
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
February 6, 2012
SUBJECT:
ENCLOSURE(S)
2012-13 Non-Resident Tuition Fee
REASON FOR BOARD CONSIDERATION
ITEM NUMBER
ACTION
Page 1 of 3
C.2
BACKGROUND:
Education Code Section 76140 requires the Governing Board of each Community College District to
establish the non-resident tuition fee to be charged to out-of-state students.
Attached is the non-resident tuition fee worksheet for 2012-13.
Column#
1
2
Calculation
State-wide Average Cost: $190
District Computed Cost: $200
It is recommended that the District charge a per-unit cost of $200 for 2012-13. This is the District
Computed Cost.
ESC 76141 authorizes Community College Districts to charge non-resident students who are both
citizens and residents of a foreign country an amount that was expended by the District for capital outlay
in the preceding year divided by the total full-time equivalent students. For Cabrillo, this amounts to a
per-unit charge of $4. These fees must be expended for capital outlay purposes. The total per-unit
combined cost for the non-resident students would be $204.
The per-unit non-resident tuition fee for 2011-12 was $177, and the capital outlay fee for 2011-12 was
$6. The total combined per-unit cost for non-resident students in 2011-12 was $183.
The per-unit non-resident tuition fee for 2012-13 is increased by $23. The recommended capital outlay
fee for 2012-13 is $2 less than the amount charged in 2011-12.
FISCAL IMPACT:
The District’s decrease in FTES caused the per unit cost of non-resident fees to increase.
RECOMMENDATION:
It is recommended that the Governing Board (1) establish the per-unit non-resident tuition fee for
2012-13 at $200 based on District Computed Cost, and (2) establish a capital outlay at $4 per unit for
students who are both residents and citizens of a foreign country.
Administrator Initiating Item:
Graciano Mendoza
Victoria Lewis
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
 Yes  No
 Yes  No
Final Disposition
64
California Community Colleges
2012-13 NONRESIDENT FEES WORKSHEET
NONRESIDENT TUITION FEE CALCULATIONS FOR OPTIONS 1 THROUGH 7
2012-13 NONRESIDENT TUITION FEE
(EC 76140)
(Col. 1)
Statewide
(Col. 2)
District
(Col. 3)
10% or More
Noncredit FTES
A.
Expense of Education for Base Year (2010-11
CCFS 311, Expenditures by Activity Report, AC
0100-6700, Cols: 1-3)
B.
Annual Attendance FTES (Recal 2010-11)
C.
Average Expense of Education per FTES (A ÷ B)
D.
U.S. Consumer Price Index Factor (2 years)
E.
Average Cost per FTES for Tuition Year (C x D)
F.
Average Per Unit Nonresident Cost – Semester (Qtr)
$179 ($119) $_____200__
$___________
G.
Statewide average – Semester (Qtr)
$190 ($127) $__________
$___________
H.
Comparable 12 state average – Semester (Qtr)
$331 ($221) $__________
$__________
$6,582,664,734 $_66,561,559_ $___________
1,276,020 ____11,847.82 ____________
$5,159 $____5,618__ $___________
x 1.038
x 1.038
x 1.038
$5,355 $____5,832__ $___________
Annual Attendance FTES includes all student contact hours of attendance in credit and noncredit
courses for resident students, nonresident students and apprentices; however apprentice hours are
divided by 525 to compute an FTES equivalent. Round tuition fee to the nearest dollar.
Column 3 is an option for use by a district with ten percent or more noncredit FTES (Section
76140(e)(1)(A)). If your district qualifies, then fill out this column with noncredit FTES and noncredit
expense of education data excluded.
NONRESIDENT TUITION FEE CALCULATIONS FOR OPTIONS 6 OR 7
Option 6. The greater amount of the calculations of statewide nonresident tuition for 2007-08 through
2012-13 is $190 per semester unit or $127 per quarter unit (2009-10).
Option 7. The average of the nonresident tuition fees of public community colleges in 2010-11 of no
less than 12 states comparable to California in cost of living is $331 per semester unit or $221 per
quarter unit.
Requirement for Use of Option 6 or 7: The additional revenue generated by the increased
nonresident tuition permitted under options 6 or 7 shall be used to expand and enhance services to
resident students (EC 76140(e)(2). Districts meeting one or more criteria below shall be considered in
compliance with the requirements of EC 76140(e)(2). Please check all that apply:
Revenue from nonresident tuition was less than 5% of total general fund revenue (2009-10).
Actual resident FTES was greater than funded resident FTES (2009-10).
Percent expenditures for counseling and student services were greater than statewide average
(AC 6300 plus 6400 divided by AC 0100-6700, Cols. 1-3) (2009-10)
Percent expenditures for instructional services were greater than statewide average (AC 01005900 divided by AC 0100-6700, Cols. 1-3 (2009-10).
Continue to next page 

Continued from previous page
65
The district governing board at its _________February_6,____, 20_12_ meeting adopted a
nonresident tuition fee of $ __200___ per semester unit or $ ___________ per quarter unit.
Basis for adoption is (place an X in one box only).
X
1. Statewide average cost, per column 1.
2. District average cost, per column 2.
3. District average cost with 10% or more noncredit FTES, per column 3.
4. Contiguous district. ______________________________. (Specify district and its fee).
5. No more than district average cost (Col. 2 or 3); no less than statewide average cost.
6. Statewide average cost, from 2009-10 ($190 per semester unit; $127 per quarter unit).
7. No more than average tuition of 12 states with cost of living comparable to California.
__________________________________________________________________________
__________________________________________________________________________
NONRESIDENT CAPITAL OUTLAY FEE (EC 76141)
For districts electing to charge a capital outlay fee to any nonresident student, please compute this
fee as follows:
a. Capital Outlay expense for 2010-11 $_1,247,765__
b. FTES for 2010-11 ___11,848_______
c. Capital outlay expense per FTES (line a divided by line b) ____105________
d. Capital Outlay Fee per unit:
1.
Per semester unit (line c divided by 30 units) _____$4_______
OR
2.
Per quarter unit (line c divided by 45 units) ________________
e. 2012-13 Nonresident Student Capital Outlay Fee (the lesser of line d OR 50% of adopted 201011 Nonresident Tuition Fee) _______________________
The district governing board at its ________February 6,_____, 20_12_ meeting adopted a
nonresident capital outlay fee of $ __4_____ per semester unit or $ _________ per quarter unit.
__________________________________________________________________________
__________________________________________________________________________
Upon adoption of nonresident tuition and/or capital outlay fees by your district governing
board by February 1, 2012, please submit a copy of this report by February 15, 2012 to:
California Community Colleges Chancellor’s Office
Fiscal Services Unit
1102 Q Street, 4th Floor
Sacramento, CA 95811-6549
FAX (916) 323-3057
District
_______Cabrillo Community College District__________________________________
Contact Person ______Graciano Mendoza, Director, Business Services____________________
Phone Number & email _______(831) 479-6279
grmendoz@cabrillo.edu__________________
66
67
AGENDA ITEM BACKGROUND
DATE
TO: GOVERNING BOARD
FROM: PRESIDENT
February 6, 2012
SUBJECT:
Resolution 005-12: 2011-12 Mid-Year Tax and Revenue
Anticipation Notes (TRANs)
REASON FOR BOARD CONSIDERATION
ACTION
ENCLOSURE(S)
ITEM NUMBER
C.3
Page 1 of 31
BACKGROUND:
The attached resolution authorizes the issuance by the Cabrillo Community College District of 2011-12
Mid-Year Tax and Revenue Anticipation Notes (TRANs.) The TRANs will be issued through a statewide
financing program sponsored by the Community College League of California.
Cabrillo College has participated in a cash reserve program through the issuance of TRANs since 199495. The notes are a short-term debt instrument issued by school districts throughout the state to create an
additional reserve to the general fund. This reserve is often necessary to meet cash flow needs.
Cabrillo College’s Mid-Year TRANs will not exceed $9 million, and maturity will be 12 months dated
March 1, 2012, and due February 29, 2013. Adoption of this resolution and granting of authority to sell
TRANs does not obligate the District to do so. The resolution simply delegates to administration the
authority to decide whether to participate at the time interest and reinvestment rates are known.
The attached resolution authorizes various financing documentation, which is on file in the Business
Services office. The resolution authorizes Brian King, President and Superintendent, Victoria Lewis,
Vice President and Assistant Superintendent for Administrative Services, and Graciano Mendoza,
Director of Business Services, to sign financing documentation in connection with the issuance of the
TRANs. The resolution also appoints the law firm of Stradling, Yocca, Carlson & Rauth as bond counsel
to Cabrillo.
RECOMMENDATION:
It is recommended that the Governing Board adopt Resolution 005-12 delegating to the Vice President of
Business Services the authority to decide on participation in the Community College League of
California cash reserve program at the time when interest, costs and reinvestment rates are known.
Administrator Initiating Item:
Graciano Mendoza
Victoria Lewis
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
 Yes  No
 Yes  No
Final Disposition
68
CABRILLO COMMUNITY COLLEGE DISTRICT RESOLUTION
NUMBER 005-12
RESOLUTION AUTHORIZING AND APPROVING THE BORROWING
OF FUNDS FOR FISCAL YEAR 2011-2012; THE ISSUANCE AND SALE
OF A 2011-2012 TAX AND REVENUE ANTICIPATION NOTE
THEREFORE AND PARTICIPATION IN THE COMMUNITY COLLEGE
LEAGUE OF CALIFORNIA TAX AND REVENUE ANTICIPATION
NOTES PROGRAM
WHEREAS, local agencies are authorized by Section 53850 to 53858, both
inclusive, of the Government Code of the State of California (the “Act”) (being Article 7.6,
Chapter 4, Part 1, Division 2, Title 5 of the Government Code) to borrow money by the issuance
of temporary notes;
WHEREAS, the Governing Board (the “Legislative Body”) of the community
college district specified in Section 23 hereof (the “District”) has determined that a sum (the
“Principal Amount”), not to exceed the Maximum Amount of Borrowing specified in Section 23
hereof, which Principal Amount is to be confirmed and set forth in the Pricing Confirmation (as
defined in Section 4 hereof), is needed for the requirements of the District, to satisfy operating or
capital obligations of the District, and that it is necessary that said Principal Amount be borrowed
for such purpose at this time by the issuance of a note or notes therefore in anticipation of the
receipt of taxes, income, revenue, cash receipts and other moneys to be received by the District
or accrued to the District’s fiscal year ending June 30, 2012 (“Repayment Fiscal Year”);
WHEREAS, the District hereby determines to borrow, for the purposes set forth
above, the Principal Amount by the issuance of the Note (defined herein), in one or more series,
on either a tax-exempt or taxable basis, as hereinafter defined;
WHEREAS, because the District does not have fiscal accountability status
pursuant to Section 85266 of the Education Code of the State of California, it requests the Board
of Supervisors of the County to borrow, on the District’s behalf, the Principal Amount by the
issuance of the Note;
WHEREAS, pursuant to Section 53853 of the Act, if the Board of Supervisors of
the County fails or refuses to authorize the issuance of the Note within the time period specified
in said Section 53853, following receipt of this Resolution, and the Note is issued in conjunction
with tax and revenue anticipation notes, in one or more series, of other Issuers (as hereinafter
defined), the District may issue the Note in its name pursuant to the terms stated herein;
WHEREAS, it appears, and this Legislative Body hereby finds and determines,
that the Principal Amount, when added to the interest payable thereon, does not exceed
eighty-five percent (85%) of the estimated amount of the uncollected taxes, income, revenue
(including, but not limited to, revenue from the state and federal governments), cash receipts and
DOCSSF/79469v1/022000-0001
69
other moneys of the District received in or accrued to the Repayment Fiscal Year, and available
for the payment of the principal of the Note and the interest thereon;
WHEREAS, no money has heretofore been borrowed by or on behalf of the
District through the issuance of tax and revenue anticipation notes or temporary notes in
anticipation of the receipt of, or payable from or secured by, taxes, income, revenue, cash
receipts or other moneys for the Repayment Fiscal Year;
WHEREAS, pursuant to Section 53856 of the Act, certain moneys which will be
received by the District during or accrued to the Repayment Fiscal Year can be pledged for the
payment of the principal of the Note and the interest thereon (as hereinafter provided);
WHEREAS, the District has determined that it is in the best interests of the
District to participate in the Community College League of California Tax and Revenue
Anticipation Note Program (the “Program”), whereby participating local agencies (collectively,
the “Issuers”) will simultaneously issue tax and revenue anticipation notes;
WHEREAS, the District desires to have its Note (defined herein) marketed
together with some or all of the notes issued by the Issuers participating in the Program;
WHEREAS, RBC Capital Markets, LLC, as underwriter or placement agent,
appointed in Section 21 hereof (the “Underwriter”), will structure one or more pools of notes or
series of note participations (referred to herein as the “Note Participations”, the “Series” and/or
the “Series of Note Participations”) distinguished by (i) whether and what type(s) of Credit
Instrument (as hereinafter defined) secures notes comprising each Series by the principal
amounts of the notes assigned to the Pool, (ii) whether interest on the Series of Note
Participations is a fixed rate of interest or a variable rate of interest swapped to a fixed rate, (iii)
whether interest on the Series of Note Participations is includable in gross income for federal
income tax purposes, or (iv) other factors, all of which the District hereby authorizes the
Underwriter to determine;
WHEREAS, the Program requires the Issuers participating in any particular
Series to deposit their tax and revenue anticipation notes with a trustee pursuant to a trust
agreement (the “Trust Agreement”) among such Issuers, the District, the California Community
College Financing Authority (the “Authority”) and Wells Fargo Bank, National Association, as
trustee (the “Trustee”);
WHEREAS, the Trust Agreement provides, among other things, that for the
benefit of Owners of Note Participations, that the District shall provide notices of the occurrence
of certain enumerated events, if deemed by the District to be material.
WHEREAS, the Program requires the Trustee, pursuant to the Trust Agreement,
to execute and deliver the Note Participations evidencing and representing proportionate,
undivided interests in the payments of principal of and interest on the tax and revenue
anticipation notes issued by the Issuers comprising such Series;
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WHEREAS, the District desires to have the Trustee execute and deliver a Series
of Note Participations which evidence and represent interests of the owners thereof in the Note
and the Notes issued by other Issuers in such Series;
WHEREAS, as additional security for the owners of the Note Participations, all
or a portion of the payments by all of the Issuers of their respective notes may or may not be
secured either by an irrevocable letter (or letters) of credit or policy (or policies) of insurance or
other credit instrument (or instruments) (collectively, the “Credit Instrument”) issued by the
credit provider or credit providers designated in the Trust Agreement, as finally executed
(collectively, the “Credit Provider”), which may be issued pursuant to a credit agreement or
agreements or commitment letter or letters designated in the Trust Agreement (collectively, the
“Credit Agreement”) between the Issuers and the respective Credit Provider;
WHEREAS, in the event that a Credit Instrument is unavailable, the District has
determined that it is desirable to authorize a portion of the premium or proceeds received from
the sale of the Note to be deposited, along with the moneys received from the sale of Notes of
other Issuers, into a reserve account to be held by the Trustee pursuant to the Trust Agreement
and for the benefit of Owners of the Note Participations;
WHEREAS, the net proceeds of the Note may be invested by the District in
Permitted Investments (as defined in the Trust Agreement) or in any other investment permitted
by the laws of the State of California, as now in effect and as hereafter amended, modified or
supplemented from time to time;
WHEREAS, the Program requires that each participating Issuer approve the
Trust Agreement and the alternative Credit Instruments, if any, in substantially the forms
presented to the Legislative Body, or, in the case of the Credit Instruments, if any, and if not
presented, in a form which complies with such requirements and standards as may be determined
by the Legislative Body, with the final form and type of Credit Instrument and corresponding
Credit Agreement, if any, determined upon execution by the Authorized Representative of the
Pricing Confirmation;
WHEREAS, pursuant to the Program each participating Issuer will be
responsible for its share of (a) the fees of the Trustee and the costs of issuing the applicable
Series of Note Participations, and (b), if applicable, the fees of the Credit Provider, the Issuer's
allocable share of all Predefault Obligations and the Issuer's Reimbursement Obligations, if any
(each as defined in the Trust Agreement);
WHEREAS, pursuant to the Program, the Note and the Notes issued by other
Issuers participating in the same Series (all as evidenced and represented by a Series of Note
Participations) will be offered for public sale or private placement through negotiation with the
Underwriter pursuant to the terms and provisions of a purchase agreement or comparable
placement agent agreement, as applicable (collectively, the “Purchase Agreement”) or sold on a
competitive bid basis;
WHEREAS, the District has determined that, in order to reduce interest costs, it
may be desirable to enter into one or more interest rate swaps; and
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WHEREAS, it is necessary to engage the services of certain professionals to
assist the District in its participation in the Program;
NOW, THEREFORE, this Legislative Body hereby finds, determines, declares
and resolves as follows:
Section 1. Recitals. This Legislative Body hereby finds and determines that all
the above recitals are true and correct.
Section 2. Authorization of Issuance. This Legislative Body hereby determines
to borrow solely for the purpose of anticipating taxes, income, revenue, cash receipts and other
moneys to be received by the District for the general fund of the District in or accrued to the
Repayment Fiscal Year, by the issuance of one or more series of taxable or tax-exempt note or
notes in the aggregate Principal Amount under Sections 53850 et seq. of the Act, designated the
District’s “2011-2012 Tax and Revenue Anticipation Note,” with an appropriate series
designation if more than one note is issued (collectively, the “Note”), to be issued in the form of
a fully registered note or notes in the Principal Amount thereof, to be dated the date of its
delivery to the initial purchaser thereof, to mature (without option of prior redemption) not more
than 13 months thereafter on a date indicated on the face thereof and determined in the Pricing
Confirmation (the “Maturity Date”), and to bear interest, payable on its Maturity Date (and if the
Maturity Date is more than 12 months from the date of issuance, payable on the interim interest
payment date set forth in the Pricing Confirmation) and computed upon the basis of a 360-day
year consisting of twelve 30-day months, or a 365 or 366 day year, as the case may be, and
actual days elapsed, at a rate or rates, if more than one Note is issued, not to exceed 12% per
annum as determined in the Pricing Confirmation and indicated on the face of the Note (the
“Note Rate”). If the Note as evidenced and represented by the Series of Note Participations is
secured in whole or in part by a Credit Instrument or such Credit Instrument secures the Note in
whole or in part and all principal of and interest on the Note is not paid in full at maturity or if
payment of principal and/or interest on the Note is paid (in whole or in part) by a draw under,
payment by or claim upon a Credit Instrument which draw or claim is not fully reimbursed on
such date, such Note shall become a Defaulted Note (as defined in the Trust Agreement), and the
unpaid portion thereof (including the interest component, if applicable, or the portion thereof
with respect to which a Credit Instrument applies for which reimbursement on a draw, payment
or claim has not been fully made) shall be deemed outstanding and shall continue to bear interest
thereafter until paid at the Default Rate (as defined in the Trust Agreement). If the Note as
evidenced and represented by the Series of Note Participations is unsecured in whole or in part
and the Note is not fully paid at maturity, the unpaid portion thereof (or the portion thereof to
which no Credit Instrument applies which is unpaid) shall be deemed outstanding and shall
continue to bear interest thereafter until paid at the Default Rate. In each case set forth in the
preceding two sentences, the obligation of the District with respect to such Defaulted Note or
unpaid Note shall not be a debt or liability of the District prohibited by Article XVI, Section 18
of the California Constitution and the District shall not be liable thereon except to the extent of
any available revenues received in or accrued to the Repayment Fiscal Year, as provided in
Section 8 hereof.
The percentage of the Note as evidenced and represented by the Series of Note
Participations to which a Credit Instrument, if any, applies (the “Secured Percentage”) shall be
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equal to the amount of the Credit Instrument divided by the aggregate amount of unpaid
principal of and interest on notes (or portions thereof) of all Issuers of Notes comprising such
Series of Note Participations, expressed as a percentage (but not greater than 100%) as of the
maturity date. Both the principal of and interest on the Note shall be payable in lawful money of
the United States of America, but only upon surrender thereof, at the corporate trust office of the
Trustee in Los Angeles, California.
The Note shall be issued in conjunction with the note or notes of one or more
other Issuers as part of the Program and within the meaning of Section 53853 of the Act.
Anything in this Resolution to the contrary notwithstanding, the Pricing
Confirmation may specify that a portion of the authorized Principal Amount of the Note shall be
issued as a separate series of taxable Note the interest on which is includable in the gross income
of the holder thereof for federal income tax purposes (a “Taxable Note”). In such event, the
Taxable Note shall be issued with an appropriate series designation and other terms reflecting
such taxability of interest income, including without limitation, a taxable Note Rate and a taxable
Default Rate; the terms of the Note, and other terms as appropriate, shall be deemed to include or
refer to such Taxable Note; and the agreements, covenants and provisions set forth in this
Resolution to be performed by or on behalf of the District shall be for the equal and
proportionate benefit, security and protection of the holder of any Note without preference,
priority or distinction as to security or otherwise of any Note over any other Note.
In the event the Board of Supervisors of the County fails or refuses to authorize
the issuance of the Note within the time period specified in Section 53853 of the Act, following
receipt of this Resolution, this Board hereby authorizes issuance of such Note, in the District’s
name, in one series, pursuant to the terms stated in this Section 2 and this Resolution. The Note
shall be issued in conjunction with the note or notes of one or more other Issuers as part of the
Program and within the meaning of Section 53853 of the Act.
Section 3. Form of Note. The Note shall be issued in fully registered form
without coupons and shall be substantially in the form and substance set forth in Exhibit A, as
attached hereto and by reference incorporated herein, the blanks in said form to be filled in with
appropriate words and figures to be inserted or determined at or prior to the execution and
delivery of the Note.
Section 4. Sale of Note; Delegation. Unless sold competitively, the Note as
evidenced and represented by the Note Participations shall be sold to the Underwriter or other
purchaser pursuant to the terms and provisions of the Purchase Agreement. The form of the
Purchase Agreement, including the form of the Pricing Confirmation set forth as an exhibit
thereto (the “Pricing Confirmation”), on file with the clerk or secretary of the Legislative Body,
is hereby approved. The authorized representatives set forth in Section 23 hereof, or a
designated deputy thereof (the “Authorized Representatives”), each alone, are hereby authorized
and directed to execute and deliver the Purchase Agreement in substantially said form, with such
changes thereto as such Authorized Representative shall approve, such approval to be
conclusively evidenced by his or her execution and delivery thereof; provided, however, that the
Note Rate shall not exceed 12% per annum, and that the District's pro rata share of Underwriter's
discount on the Note, when added to the District's share of the costs of issuance of the Note
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Participations, shall not exceed 1.0% of the Principal Amount of the Note and the Principal
Amount shall not exceed the Maximum Amount of Borrowing. Delivery of an executed copy of
the Pricing Confirmation by fax or telecopy shall be deemed effective execution and delivery for
all purposes.
Section 5. Program Approval. The Note shall be combined with notes of other
Issuers into a Series and shall be sold simultaneously with such other notes of that Series
supported by the Credit Instrument (if any) referred to in the Pricing Confirmation, and shall be
evidenced and represented by the Note Participations which shall evidence and represent
proportionate, undivided interests in the Note in the proportion that the face amount of the Note
bears to the total aggregate face amount of the Note and the notes issued by other Issuers which
the Series of Note Participations represent. Such Note Participations may be delivered in
book-entry form.
The forms of Trust Agreement and alternative general types and forms of Credit
Agreements, if any, presented to this meeting are hereby approved, and the Authorized
Representatives, each alone, are hereby authorized and directed to execute and deliver the Trust
Agreement and a Credit Agreement, if applicable, which shall be identified in the Pricing
Confirmation, in substantially one or more of said forms (a substantially final form of Credit
Agreement to be delivered to the Authorized Representative following the execution by such
Authorized Representative of the Pricing Confirmation), with such changes therein as said
Authorized Representative shall require or approve, such approval of this Legislative Body and
such Authorized Representative to be conclusively evidenced by the execution thereby of the
Trust Agreement and the Credit Agreement, if any. A description of this undertaking shall be set
forth in the Preliminary Official Statement, defined herein, if any, and will also be set forth in the
Final Official Statement, defined herein, if any. The Authorized Representatives, each alone, are
hereby authorized and directed to comply with and carry out all of the provisions of the Trust
Agreement with respect to continuing disclosure; provided however, that failure of the District to
comply with the Continuing Disclosure Agreement, as defined in Article 11 of the Trust
Agreement, shall not be considered an Event of Default hereunder. Any Credit Agreement
identified in the Pricing Confirmation but not at this time before the Legislative Body shall
include reasonable and customary terms and provisions relating to fees, increased costs of the
Credit Provider payable by the District, negative and affirmation covenants of the District and
events of default.
To the extent necessary, the Legislative Body hereby approves the preparation of
a preliminary official statement (the “Preliminary Official Statement”) and a final official
statement (the “Final Official Statement”) in connection with the offering and sale of the Note
Participations. The Underwriter is hereby authorized and directed to cause to be mailed to
prospective bidders the Preliminary Official Statement in connection with the offering and sale
of the Note Participations.
Any one of the Authorized Representatives of the District is hereby authorized
and directed to provide the Underwriter with such information relating to the District as they
shall reasonably request for inclusion in the Preliminary Official Statement and Final Official
Statement, if any. Upon inclusion of the information relating to the District therein, the
Preliminary Official Statement, except for certain omissions permitted by Rule 15c2-12 of the
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Securities Exchange Act of 1934, as amended (the “Rule”), is hereby deemed final within the
meaning of the Rule; provided that no representation is made as to the information contained in
the Preliminary Official Statement relating to the other Issuers or any Credit Provider. If, at any
time prior to the end of the underwriting period, as defined in the Rule, any event occurs as a
result of which the information contained in the Preliminary Official Statement relating to the
District might include an untrue statement of a material fact or omit to state any material fact
necessary to make the statements therein, in light of the circumstances under which they were
made, not misleading, the District shall promptly notify the Underwriter. The Authority is
hereby authorized and directed, at or after the time of the sale of any Series of Note
Participations, for and in the name and on behalf of the District, to execute a Final Official
Statement in substantially the form of the Preliminary Official Statement, with such additions
thereto or changes therein as the Authority may approve, such approval to be conclusively
evidenced by the execution and delivery thereof.
The Trustee is authorized and directed to execute Note Participations on behalf of
the District pursuant to the terms and conditions set forth in the Trust Agreement, in the
aggregate principal amount specified in the Trust Agreement, and substantially in the form and
otherwise containing the provisions set forth in the form of the Note Participations contained in
the Trust Agreement. When so executed, the Note Participations shall be delivered by the
Trustee to the purchaser upon payment of the purchase price thereof, pursuant to the terms of the
Trust Agreement.
Subject to Section 8 hereof, the District hereby agrees that if the Note as
evidenced and represented by the Series of Note Participations shall become a Defaulted Note,
the unpaid portion (including the interest component, if applicable) thereof or the portion
(including the interest component, if applicable) to which a Credit Instrument applies for which
full reimbursement on a draw, payment or claim has not been made by the Maturity Date shall be
deemed outstanding and shall not be deemed to be paid until (i) any Credit Provider providing a
Credit Instrument with respect to the Series of Note Participations, and therefore, if applicable,
all or a portion of the District’s Note, if any, has been reimbursed for any drawings, payments or
claims made under or from the Credit Instrument with respect to the Note, including interest
accrued thereon, as provided therein and in the applicable Credit Agreement, and, (ii) the holders
of the Series of the Note Participations which evidence and represent the Note are paid the full
principal amount represented by the unsecured portion of the Note plus interest accrued thereon
(calculated at the Default Rate) to the date of deposit of such aggregate required amount with the
Trustee. For purposes of clause (ii) of the preceding sentence, holders of the Series of Note
Participations will be deemed to have received such principal amount upon deposit of such
moneys with the Trustee.
The District agrees to pay or cause to be paid, in addition to the amounts payable
under the Note, any fees or expenses of the Trustee and, to the extent permitted by law, if the
District’s Note as evidenced and represented by the Series of Note Participations is secured in
whole or in part by a Credit Instrument, any Predefault Obligations and Reimbursement
Obligations (to the extent not payable under the Note), (i) arising out of an “Event of Default”
hereunder (or pursuant to Section 7 hereof) or (ii) arising out of any other event (other than an
event arising solely as a result of or otherwise attributable to a default by any other Issuer). In
the case described in (ii) above with respect to Predefault Obligations, the District shall owe only
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the percentage of such fees, expenses and Predefault Obligations equal to the ratio of the
principal amount of its Note over the aggregate principal amounts of all notes, including the
Note, of the Series of which the Note is a part, at the time of original issuance of such Series.
Such additional amounts will be paid by the District within twenty-five (25) days of receipt by
the District of a bill therefor from the Trustee.
Section 6. No Joint Obligation; Owners’ Rights. The Note shall be marketed
and sold simultaneously with the notes of other Issuers and shall be aggregated and combined
with notes of other Issuers participating in the Program into a Series of taxable or tax-exempt
Note Participations evidencing and representing an interest in several, and not joint, obligations
of each Issuer. Except as provided in Section 7(C) herein, the obligation of the District to
Owners is a several and not a joint obligation and is strictly limited to the District’s repayment
obligation under this Resolution and the Note, as evidenced and represented by such Series of
Note Participations.
Owners of Note Participations, to the extent of their interest in the Note, shall be
treated as owners of the Note and shall be entitled to all the rights and security thereof; including
the right to enforce the obligations and covenants contained in this Resolution and the Note. The
District hereby recognizes the right of the Owners acting directly or through the Trustee to
enforce the obligations and covenants contained in the Note, this Resolution and the Trust
Agreement. The District shall be directly obligated to each Owner for the principal and interest
payments on the Note evidenced and represented by the Note Participations without any right of
counterclaim or offset arising out of any act or failure to act on the part of the Trustee.
Section 7. Disposition of Proceeds of Note.
(A)
The moneys received from the sale of the Note allocable to the District’s
share of the costs of issuance (which shall include any issuance fees in connection with a Credit
Instrument applicable to the Note, if any) shall be deposited in the Costs of Issuance Fund held
and invested by the Trustee under the Trust Agreement and expended on costs of issuance as
provided in the Trust Agreement.
(B)
The moneys received from the sale of the Note (net of the District’s share
of the costs of issuance) shall be deposited in the District’s Proceeds Subaccount within the
Proceeds Fund hereby authorized to be created pursuant to, and held and invested by the Trustee
under, the Trust Agreement for the District and said moneys may be used and expended by the
District for any purpose for which it is authorized to expend funds upon requisition from the
Proceeds Subaccount as specified in the Trust Agreement. Amounts in the Proceeds Subaccount
are hereby pledged to the payment of the Note.
The Trustee will not create subaccounts within the Proceeds Fund, but will keep
records to account separately for proceeds of the Note Participations allocable to the District’s
Note on deposit in the Proceeds Fund which shall constitute the District’s Proceeds Subaccount.
(C)
The District hereby authorizes a portion of the premium or proceeds
received from the sale of the Note (net of the District’s share of the costs of issuance) to be
deposited, together with moneys received from the sale of Notes of other Issuers, into a reserve
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fund (the “Reserve Fund”), which is hereby authorized to be created pursuant to, and held and
invested by the Trustee under, the Trust Agreement for the benefit of Owners of the Note
Participations.
Section 8. Source of Payment. The principal amount of the Note, together with
the interest thereon, shall be payable from taxes, income, revenue (including, but not limited to,
revenue from the state and federal governments), cash receipts and other moneys which are
received or held by the District for the general fund of the District and are accrued to the
Repayment Fiscal Year and which are available for payment thereof. Included in the revenues of
the Repayment Fiscal Year are apportionments which otherwise would be received in January
2012 through June 2012 but due to the deferral of the State monies by the State will not be
received until after June 30, 2012 (“Deferred Revenues”). The Deferred Revenues shall be
accrued to the Repayment Fiscal Year and are determined to be legally available to pay the
principal of and interest on the Note. As security for the payment of the principal of and interest
on the Note, the District hereby pledges certain Unrestricted Revenues (as hereinafter provided,
the “Pledged Revenues”) which are received or held by the District for the general fund of the
District and are accrued to the Repayment Fiscal Year. The principal of the Note and the interest
thereon shall constitute a first lien and charge thereon and shall be payable from the first moneys
received by the District from such Pledged Revenues, and, to the extent not so paid, shall be paid
from any other taxes, income, revenue, cash receipts and other moneys of the District lawfully
available therefor (all as provided for in Sections 53856 and 53857 of the Act). The term
“Unrestricted Revenues” shall mean all taxes, income, revenue (including, but not limited to,
revenue from the state and federal governments), cash receipts, and other moneys, intended as
receipts for the general fund of the District received in or accrued to the Repayment Fiscal Year
and which are generally available for the payment of current expenses and other obligations of
the District. The Noteholders, Owners and Credit Provider shall have a first lien and charge on
such Unrestricted Revenues as herein provided which are received or held by the District and are
accrued to the Repayment Fiscal Year.
In order to effect the pledge referenced in the preceding paragraph, the District
hereby agrees and covenants to establish and maintain a special account within the District’s
general fund to be designated the “2011-12 Tax and Revenue Anticipation Note Payment
Account,” with appropriate series designation (the “Payment Account”), and further agrees and
covenants to maintain the Payment Account until the payment of the principal of the Note and
the interest thereon. Notwithstanding the foregoing, if the District elects to have Note proceeds
invested in Permitted Investments to be held by the Trustee pursuant to the Pricing Confirmation,
a subaccount of the Payment Account (the “Payment Subaccount”) shall be established for the
District under the Trust Agreement and proceeds credited to such account shall be pledged to the
payment of the Note. The Trustee need not create a subaccount, but may keep a record to
account separately for proceeds of the Note so held and invested by the Trustee which record
shall constitute the District’s Proceeds Subaccount. Transfers from the Payment Subaccount
shall be made in accordance with the Trust Agreement. The District agrees to transfer to and
deposit in the Payment Account the first amounts received in the months specified in the Pricing
Confirmation as Repayment Months (each individual month a “Repayment Month” and
collectively “Repayment Months”) (and any amounts received thereafter received in or accrued
to Repayment Fiscal Year) until the amount on deposit in the Payment Account, together with
the amount, if any, on deposit in the Payment Subaccount, and taking into consideration
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anticipated investment earnings thereon to be received by the Maturity Date, is equal in the
respective Repayment Months identified in the Pricing Confirmation to the percentage of the
principal and interest due on the Note specified in the Pricing Confirmation. In making such
transfer and deposit, the District shall not be required to physically segregate the amounts to be
transferred to and deposited in the Payment Account from the District’s other general fund
moneys, but, notwithstanding any commingling of funds for investment or other purposes, the
amounts required to be transferred to and deposited in the Payment Account shall nevertheless be
subject to the lien and charge created herein.
Any one of the Authorized Representatives of the District is hereby authorized to
approve the determination of the Repayment Months and percentages of the principal and
interest due on the Note required to be on deposit in the Payment Account and/or the Payment
Subaccount in each Repayment Month, all as specified in the Pricing Confirmation, by executing
and delivering the Pricing Confirmation, such execution and delivery to be conclusive evidence
of approval by this Legislative Body and such Authorized Representative; provided, however,
that the maximum number of Repayment Months shall be six. In the event on the day in each
such Repayment Month that a deposit to the Payment Account is required to be made, the
District has not received sufficient unrestricted revenues to permit the deposit into the Payment
Account of the full amount of Pledged Revenues to be deposited in the Payment Account from
said unrestricted revenues in said month, then the amount of any deficiency shall be satisfied and
made up from any other moneys of the District lawfully available for the payment of the
principal of the Note and the interest thereon, as and when such other moneys are received or are
otherwise legally available.
To the extent the District’s Note is payable from Deferred Revenues, the Pricing
Confirmation may specify that the deposits into the Payment Account from such Deferred
Revenues may be made on either (i) the first business day of the month following the Repayment
Month in which such Deferred Revenues are received, or (ii) 30 calendar days after the District
has received such Deferred Revenues, whichever comes first, provided, however, that no
Repayment Month may occur later than one month prior to the Maturity Date of the District’s
Note.
Any moneys placed in the Payment Account or the Payment Subaccount shall be
for the benefit of (i) the holder of the Note and the owner of the Note and (ii) (to the extent
provided in the Trust Agreement) the Credit Provider, if any. The moneys in the Payment
Account and the Payment Subaccount shall be applied only for the purposes for which such
accounts are created until the principal of the Note and all interest thereon are paid or until
provision has been made for the payment of the principal of the Note at maturity with interest to
maturity (in accordance with the requirements for defeasance of the Note Participations as set
forth in the Trust Agreement) and, if applicable, (to the extent provided in the Trust Agreement
and, if applicable, the Credit Agreement) the payment of all Predefault Obligations and
Reimbursement Obligations owing to the Credit Provider.
The District hereby directs the Trustee to transfer on the Note Payment Deposit
Date (as defined in the Trust Agreement), any moneys in the Payment Subaccount to the Note
Participation Payment Fund (as defined in the Trust Agreement). In addition, on the Note
Payment Deposit Date, the moneys in the Payment Account shall be transferred by the District to
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the Trustee, to the extent necessary (after crediting any transfer pursuant to the preceding
sentence), to pay the principal of and/or interest on the Note, to make payments to a Swap
Provider, if any, as defined in the Trust Agreement, pursuant to a Swap Agreement, if any, as
defined in the Trust Agreement, or to reimburse the Credit Provider for payments made under or
pursuant to the Credit Instrument. In the event that moneys in the Payment Account and/or the
Payment Subaccount are insufficient to pay the principal of and interest on the Note in full when
due, such moneys shall be applied in the following priority: first to pay interest on the Note;
second to pay principal of the Note; third to reimburse the Credit Provider for payment, if any, of
interest with respect to the Note; fourth to reimburse the Credit Provider for payment, if any, of
principal with respect to the Note; and fifth to pay any Reimbursement Obligations of the
District and any of the District’s pro rata share of Predefault Obligations owing to the Credit
Provider. Any moneys remaining in or accruing to the Payment Account and/or the Payment
Subaccount after the principal of the Note and the interest thereon and any Predefault
Obligations and Reimbursement Obligations, if applicable, have been paid, or provision for such
payment has been made, shall be transferred to the general fund of the District, subject to any
other disposition required by the Trust Agreement, or, if applicable, the Credit Agreement.
Nothing herein shall be deemed to relieve the District from its obligation to pay its Note in full
on the Maturity Date.
Moneys in the Proceeds Subaccount and in the Payment Subaccount shall be
invested by the Trustee pursuant to the Trust Agreement as directed by the District in Permitted
Investments as described in and under the terms of the Trust Agreement. Any such investment
by the Trustee shall be for the account and risk of the District, and the District shall not be
deemed to be relieved of any of its obligations with respect to the Note, the Predefault
Obligations or Reimbursement Obligations, if any, by reason of such investment of the moneys
in its Proceeds Subaccount or the Payment Subaccount.
The District shall promptly file with the Trustee and the Credit Provider, if any,
such financial reports at the times and in the forms required by the Trust Agreement. At the
written request of the Credit Provider, if any, the District shall, within ten (10) Business Days
following the receipt of such written request, file such report or reports to evidence the transfer
to and deposit in the Payment Account required by this Section 8 and provide such additional
financial information as may be required by the Credit Provider, if any.
In the event either (A) the Principal Amount of the Note, together with the
aggregate amount of all tax-exempt obligations (including any tax-exempt leases, but excluding
private activity bonds), issued and reasonably expected to be issued by the District (and all
subordinate entities of the District) during the calendar year in which the Note is issued, will, at
the time of issuance of the Note (as indicated in the certificate of the District executed as of the
date of issuance of the Note (the “District Certificate”), exceed fifteen million dollars
($15,000,000), or (B) the Principal Amount of the Note, together with the aggregate amount of
all tax-exempt obligations not used to finance school construction (including any tax-exempt
leases, but excluding private activity bonds), issued and reasonably expected to be issued by the
District (and all subordinate entities of the District) during the calendar year in which the Note is
issued, will, at the time of issuance of the Note (as indicated in the District Certificate), exceed
five million dollars ($5,000,000), the following paragraph will apply. In such case, the District
shall be deemed a “Safe Harbor Issuer” with respect to the Note.
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Amounts in the Proceeds Subaccount of the District and attributable to cash flow
borrowing shall be withdrawn and expended by the District for any purpose for which the
District is authorized to expend funds from the general fund of the District, but, with respect to
general fund expenditures, only to the extent that on the date of any withdrawal no other funds
are available for such purposes without legislation or judicial action or without a legislative,
judicial or contractual requirement that such funds be reimbursed. If on no date that is within six
months from the date of issuance of the Note, the balance in the related Proceeds Subaccount is
low enough so that the amounts in the Proceeds Subaccount qualify for an exception from the
rebate requirement (the “Rebate Requirements”) of Section 148 of the Internal Revenue Code of
1986 (the “Code”), the District shall notify the Trustee in writing and, to the extent of its power
and authority, comply with instructions from Stradling Yocca Carlson & Rauth, Special Counsel,
supplied to it by the Trustee as the means of satisfying the Rebate Requirements.
Section 9. Execution of Note; Registration and Transfer. Any one of the
Treasurer of the County or comparable officer, or, in the absence of said officer, his or her duly
appointed assistant, the Chairperson of the Board of Supervisors of the County or the Auditor (or
comparable financial officer) of the County shall be authorized to execute the Note issued
hereunder by manual or facsimile signature and the Clerk of the Board of Supervisors of the
County or any Deputy Clerk shall be authorized to countersign the Note by manual or facsimile
signature and to affix the seal of the County to the Note either manually or by facsimile
impression thereof. In the event the Board of Supervisors of the County fails or refuses to
authorize issuance of the Note as referenced in Section 2 hereof, any one of the Authorized
Representatives of the District or any other officer designated by the Legislative Body shall be
authorized to execute the Note by manual or facsimile signature and the Secretary or Clerk of the
Legislative Body of the District or any duly appointed assistant thereto shall be authorized to
countersign the Note by manual or facsimile signature. Said officers of the District are hereby
authorized to cause the blank spaces of the Note to be filled in as may be appropriate pursuant to
the Pricing Confirmation. Said officers are hereby authorized and directed to cause the Trustee,
as registrar and authenticating agent, to accept delivery of the Note pursuant to the terms and
conditions of the Purchase Agreement and Trust Agreement. In case any officer whose signature
shall appear on any Note shall cease to be such officer before the delivery of such Note, such
signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer
had remained in office until delivery. The Note need not bear the seal of the District, if any.
As long as the Note remains outstanding, the District shall maintain and keep at
the principal corporate trust office of the Trustee, books for the registration and transfer of the
Note. The Note shall initially be registered in the name of the Trustee as trustee under the Trust
Agreement. Upon surrender of the Note for transfer at the office of the Trustee with a written
instrument of transfer satisfactory to the Trustee, duly executed by the registered owner or its
duly authorized attorney, and upon payment of any tax, fee or other governmental charge
required to be paid with respect to such transfer, the County or the District, as applicable, shall
execute and the Trustee shall authenticate and deliver, in the name of the designated transferee, a
fully registered Note. For every transfer of the Note, the County, the District or the Trustee may
make a charge sufficient to reimburse it for any tax, fee or other governmental charge required to
be paid with respect to the transfer, which sum or sums shall be paid by the person making such
transfer as a condition precedent to the exercise of the privilege of making such transfer.
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Subject to Section 6 hereof, the County, the District and the Trustee and their
respective successors may deem and treat the person in whose name the Note is registered as the
absolute owner thereof for all purposes, and the County, the District and the Trustee and their
respective successors shall not be affected by any notice to the contrary, and payment of or on
account of the principal of such Note shall be made only to or upon the order of the registered
owner thereof. All such payments shall be valid and effectual to satisfy and discharge the
liability upon the Note to the extent of the sum or sums so paid.
The Note may, in accordance with its terms, be transferred upon the books
required to be kept by the Trustee pursuant to the provisions hereof by the person in whose name
it is registered, in person or by his duly authorized attorney, upon surrender of the Note for
cancellation, accompanied by delivery of a written instrument of transfer duly executed in form
approved by the Trustee.
The Trustee will keep or cause to be kept, at its principal corporate trust office,
sufficient books for the registration and transfer of the Note, which shall be open to inspection by
the County and the District during regular business hours. Upon presentation for such purpose,
the Trustee shall, under such reasonable regulations as it may prescribe, register or transfer or
cause to be registered or transferred, on such books, the Note as hereinbefore provided.
If any Note shall become mutilated, the County or the District, as applicable, at
the expense of the registered owner of such Note, shall execute, and the Trustee shall thereupon
authenticate and deliver a new Note of like tenor and number in exchange and substitution for
the Note so mutilated, but only upon surrender to the Trustee of the Note so mutilated. Every
mutilated Note so surrendered to the Trustee shall be cancelled by it and delivered to, or upon the
order of the County or the District, as applicable. If any Note shall be lost, destroyed or stolen,
evidence of such loss, destruction or theft may be submitted to the County, the District and the
Trustee and, if such evidence be satisfactory to them and indemnity satisfactory to them shall be
given, the County or the District, as applicable, at the expense of the registered owner, shall
execute, and the Trustee shall thereupon authenticate and deliver a new Note of like tenor and
number in lieu of and in substitution for the Note so lost, destroyed or stolen (or if any such Note
shall have matured (as of the latest maturity date indicated on the face thereof) or shall be about
to mature (as of the latest maturity date indicated on the face thereof), instead of issuing a
substitute Note, the Trustee may pay the same without surrender thereof). The Trustee may
require payment of a sum not exceeding the actual cost of preparing each new Note issued
pursuant to this paragraph and of the expenses which may be incurred by the County or the
District applicable, and the Trustee in such preparation. Any Note issued under these provisions
in lieu of any Note alleged to be lost, destroyed or stolen shall constitute an original additional
contractual obligation on the part of the County (on behalf of the District) or on the part of the
District, as applicable, whether or not the Note so alleged to be lost, destroyed or stolen be at any
time enforceable by anyone, and shall be entitled to the benefits of this Resolution with all other
Notes secured by this Resolution.
Section 10. Representations and Covenants of the District.
The District makes the following representations for the benefit of the holder of
the note, the owners of the Note Participations and the Credit Provider, if any.
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(A)
The District is duly organized and existing under and by virtue of the laws
of the State of California and has all necessary power and authority to (i) adopt this Resolution
and perform its obligations thereunder, (ii) enter into and perform its obligations under the
Purchase Agreement, and (iii) issue the Note and perform its obligations thereunder.
(B)
Upon the issuance of the Note, the District shall have taken all action
required to be taken by it to authorize the issuance and delivery of the Note and the performance
of its obligations thereunder, and the District has full legal right, power and authority to issue and
deliver the Note.
(C)
The issuance of the Note, the adoption of the Resolution and the execution
and delivery of the Purchase Agreement, Trust Agreement and Credit Agreement, if any, and
compliance with the provisions hereof and thereof will not conflict with or violate any law,
administrative regulation, court decree, resolution, charter, by-laws or other agreement to which
the District is subject or by which it is bound.
(D)
Except as may be required under blue sky or other securities laws of any
state or Section 3(a)(2) of the Securities Act of 1933, there is no consent, approval, authorization
or other order of, or filing with, or certification by, any regulatory authority having jurisdiction
over the District required for the issuance and sale of the Note or the consummation by the
District of the other transactions contemplated by this Resolution, except those the District shall
obtain or perform prior to or upon the issuance of the Note.
(E)
The District has (or will have prior to the issuance of the Note) duly,
regularly and properly adopted a preliminary budget for the Repayment Fiscal Year setting forth
expected revenues and expenditures and has complied with all statutory and regulatory
requirements with respect to the adoption of such budget. The District hereby covenants that it
shall (i) duly, regularly and properly prepare and adopt its final budget for the Repayment Fiscal
Year, (ii) provide to the Trustee, the Credit Provider, if any, the Underwriter, promptly upon
adoption, copies of such final budget and of any subsequent revisions, modifications or
amendments thereto and (iii) comply with all applicable laws pertaining to its budget.
(F)
The sum of the principal amount of the District’s Note plus the interest
payable thereon, on the date of its issuance, will not exceed fifty percent (50%) of the estimated
amounts of the District’s uncollected taxes, income, revenue (including, but not limited to,
revenue from the state and federal governments), cash receipts, and other moneys to be received
by the District for the general fund of the District received in or accrued to the Repayment Fiscal
Year all of which will be legally available to pay principal of and interest on the Note.
(G)
The District (i) has not defaulted within the past twenty (20) years, and is
not currently in default, on any debt obligation and (ii), to the best knowledge of the District, has
never defaulted on any debt obligation.
(H)
The District’s most recent audited financial statements present fairly the
financial condition of the District as of the date thereof and the results of operation for the period
covered thereby. Except as has been disclosed to the Underwriter and the Credit Provider, if
any, there has been no change in the financial condition of the District since the date of such
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audited financial statements that will in the reasonable opinion of the District materially impair
its ability to perform its obligations under this Resolution and the Note. The District agrees to
furnish to the Underwriter, the Authority, the Trustee and the Credit Provider, if any, promptly,
from time to time, such information regarding the operations, financial condition and property of
the District as such party may reasonably request.
(I)
There is no action, suit, proceeding, inquiry or investigation, at law or in
equity, before or by any court, arbitrator, governmental or other board, body or official, pending
or, to the best knowledge of the District, threatened against or affecting the District questioning
the validity of any proceeding taken or to be taken by the District in connection with the Note,
the Purchase Agreement, the Trust Agreement, the Credit Agreement, if any, or this Resolution,
or seeking to prohibit, restrain or enjoin the execution, delivery or performance by the District of
any of the foregoing, or wherein an unfavorable decision, ruling or finding would have a
materially adverse effect on the District’s financial condition or results of operations or on the
ability of the District to conduct its activities as presently conducted or as proposed or
contemplated to be conducted, or would materially adversely affect the validity or enforceability
of, or the authority or ability of the District to perform its obligations under, the Note, the
Purchase Agreement, the Trust Agreement, the Credit Agreement, if any, or this Resolution.
(J)
Upon issuance of the Note and execution of the Purchase Contract, this
Resolution, the Purchase Contract and the Note will constitute legal, valid and binding
agreements of the District, enforceable in accordance with their respective terms, except as such
enforceability may be limited by bankruptcy or other laws affecting creditors’ rights generally,
the application of equitable principles if equitable remedies are sought, the exercise of judicial
discretion in appropriate cases and the limitations on legal remedies against local agencies, as
applicable, in the State of California.
(K)
The District and its appropriate officials have duly taken, or will take, all
proceedings necessary to be taken by them, if any, for the levy, receipt, collection and
enforcement of the Pledged Revenues in accordance with law for carrying out the provisions of
this Resolution and the Note.
(L)
The District shall not incur any indebtedness secured by a pledge of its
Pledged Revenues unless such pledge is subordinate in all respects to the pledge of Pledged
Revenues hereunder.
(M) So long as the Credit Provider, if any, is not in payment default under the
Credit Instrument, the District hereby agrees to pay its pro rata share of all Predefault
Obligations and all Reimbursement Obligations attributable to the District in accordance with
provisions of the Credit Agreement, if any, and/or the Trust Agreement, as applicable. Prior to
the Maturity Date, moneys in the District’s Payment Account and/or Payment Subaccount shall
not be used to make such payments. The District shall pay such amounts promptly upon receipt
of notice from the Credit Provider that such amounts are due to it.
(N)
So long as any Note Participations issued in connection with the Notes are
Outstanding, or any Predefault Obligation or Reimbursement Obligation is outstanding, the
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District will not create or suffer to be created any pledge of or lien on the Note other than the
pledge and lien of the Trust Agreement.
(O)
It is hereby covenanted and warranted by the District that it will not
request the County Treasurer to make temporary transfers of funds in the custody of the County
Treasurer to meet any obligations of the District during Fiscal Year 2011-2012 pursuant to
Article XVI, Section 6 of the Constitution of the State of California.
Section 11. Tax Covenants. (A) The District will not take any action or fail to
take any action if such action or failure to take such action would adversely affect the exclusion
from gross income of the interest payable on the Note under Section 103 of the Internal Revenue
Code of 1986 (the “Code”). Without limiting the generality of the foregoing, the District will not
make any use of the proceeds of the Note or any other funds of the District which would cause
the Note to be an “arbitrage bond” within the meaning of Section 148 of the Code, a “private
activity bond” within the meaning of Section 141(a) of the Code, or an obligation the interest on
which is subject to federal income taxation because it is “federally guaranteed” as provided in
Section 149(b) of the Code. The District, with respect to the proceeds of the Note, will comply
with all requirements of such sections of the Code and all regulations of the United States
Department of the Treasury issued or applicable thereunder to the extent that such requirements
are, at the time, applicable and in effect.
(B)
In the event the District is deemed a Safe Harbor Issuer (as defined in
Section 7), this paragraph (B) shall apply. The District covenants that it shall make all
calculations in a reasonable and prudent fashion relating to any rebate of excess investment
earnings on the proceeds of the Note due to the United States Treasury, shall segregate and set
aside from lawfully available sources the amount such calculations may indicate may be required
to be paid to the United States Treasury, and shall otherwise at all times do and perform all acts
and things necessary and within its power and authority, including complying with the
instructions of Stradling Yocca Carlson & Rauth, Special Counsel referred to in Section 8 hereof
to assure compliance with the Rebate Requirements. If the balance of the Proceeds Subaccount
attributed to cash flow borrowing and treated for federal tax purposes as proceeds of the Note is
not low enough to qualify amounts in the Proceeds Subaccount attributed to cash flow borrowing
for an exception to the Rebate Requirements on at least one date within the six month period
following the date of issuance of the Note (calculated in accordance with Section 8), the District
will reasonably and prudently calculate the amount, if any, of investment profits which must be
rebated to the United States and will immediately set aside, from revenues received in or accrued
to the Fiscal Year 2011-2012 or, to the extent not available from such revenues, from any other
moneys lawfully available, the amount of any such rebate in the Rebate Fund referred to in this
Section 11(B). In addition, in such event, the District shall establish and maintain with the
Trustee a fund separate from any other fund established and maintained hereunder and under the
Trust Agreement designated as the “2011-2012 Tax and Revenue Anticipation Note Rebate
Fund” or such other name as the Trust Agreement may designate. There shall be deposited in
such Rebate Fund such amounts as are required to be deposited therein in accordance with the
written instructions from Bond Counsel pursuant to Section 8 hereof.
(C)
Notwithstanding any other provision of this Resolution to the contrary,
upon the District’s failure to observe, or refusal to comply with, the covenants contained in this
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Section 11, no one other than the holders or former holders of the Note or Note Participation
Owners, the Credit Provider(s), if any, or the Trustee on their behalf shall be entitled to exercise
any right or remedy under this Resolution on the basis of the District’s failure to observe, or
refusal to comply with, such covenants.
the Note.
(D)
The covenants contained in this Section 11 shall survive the payment of
(E)
The provisions of this Section 11 shall not apply to a Taxable Note.
Section 12. Events of Default and Remedies.
If any of the following events occur, it is hereby defined as and declared to be and
to constitute an “Event of Default”:
(a)
Failure by the District to make or cause to be made the transfers
and deposits to the Payment Account, or any other payment required to be paid
hereunder, including payment of principal and interest on the Note, on or before
the date on which such transfer, deposit or other payment is due and payable;
(b)
Failure by the District to observe and perform any covenant,
condition or agreement on its part to be observed or performed under this
Resolution, for a period of fifteen (15) days after written notice, specifying such
failure and requesting that it be remedied, is given to the District by the Trustee or
the Credit Provider, if applicable, unless the Trustee and the Credit Provider shall
agree in writing to an extension of such time prior to its expiration;
(c)
Any warranty, representation or other statement by or on behalf of
the District contained in this Resolution or the Purchase Agreement (including the
Pricing Confirmation) or in any requisition or any financial report delivered by
the District or in any instrument furnished in compliance with or in reference to
this Resolution or the Purchase Agreement or in connection with the Note, is false
or misleading in any material respect;
(d)
A petition is filed against the District under any bankruptcy,
reorganization, arrangement, insolvency, readjustment of debt, dissolution or
liquidation law of any jurisdiction, whether now or hereafter in effect and is not
dismissed within 30 days after such filing, but the Trustee shall have the right to
intervene in the proceedings prior to the expiration of such 30 days to protect its
and the Owners’ interests;
(e)
The District files a petition in voluntary bankruptcy or seeking
relief under any provision of any bankruptcy, reorganization, arrangement,
insolvency, readjustment of debt, dissolution or liquidation law of any
jurisdiction, whether now or hereafter in effect, or consents to the filing of any
petition against it under such law; or
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(f)
The District admits insolvency or bankruptcy or is generally not
paying its debts as such debts become due, or becomes insolvent or bankrupt or
makes an assignment for the benefit of creditors, or a custodian (including
without limitation a receiver, liquidator or trustee) of the District or any of its
property is appointed by court order or takes possession thereof and such order
remains in effect or such possession continues for more than 30 days, but the
Trustee shall have the right to intervene in the proceedings prior to the expiration
of such 30 days to protect its and the Owners’ interests;
Whenever any Event of Default referred to in this Section 12 shall have happened
and be continuing, the Trustee shall, in addition to any other remedies provided herein or by law
or under the Trust Agreement, have the right, at its option without any further demand or notice,
to take one or any combination of the following remedial steps:
(a)
Without declaring the Note to be immediately due and payable,
require the District to pay to the Trustee, as holder of the Note, an amount equal
to the principal of the Note and interest thereon to maturity, plus all other amounts
due hereunder, and upon notice to the District the same shall become immediately
due and payable by the District without further notice or demand; and
(b)
Take whatever other action at law or in equity (except for
acceleration of payment on the Note) which may appear necessary or desirable to
collect the amounts then due and thereafter to become due hereunder or to enforce
any other of its rights hereunder.
Notwithstanding the foregoing, if the District’s Note is secured in whole or in part
by a Credit Instrument or if the Credit Provider is subrogated to rights under the District’s Note,
as long as the Credit Provider has not failed to comply with its payment obligations under the
Credit Instrument, the Credit Provider shall have the right to direct the remedies upon any Event
of Default hereunder, and the Credit Provider’s prior consent shall be required to any remedial
action proposed to be taken by the Trustee hereunder.
If the District has executed a Credit Instrument and if the Credit Provider is not
reimbursed for any drawing, payment or claim, as applicable, used to pay principal of and
interest on the Note due to a default in payment on the Note by the District, or if any principal of
or interest on the Note remains unpaid after the Maturity Date, the Note shall be a Defaulted
Note, the unpaid portion (including the interest component, if applicable) thereof or the portion
(including the interest component, if applicable) to which a Credit Instrument applies for which
reimbursement on a draw, payment or claim has not been made shall be deemed outstanding and
shall bear interest at the Default Rate, as defined in the Trust Agreement, until the District’s
obligation on the Defaulted Note is paid in full or payment is duly provided for, all subject to
Section 8 hereof.
Section 13. Trustee. The Trustee is hereby appointed as paying agent, registrar
and authenticating agent for the Note. The District hereby directs and authorizes the payment by
the Trustee of the interest on and principal of the Note when such become due and payable, from
the Payment Account held by the Trustee in the name of the District in the manner set forth
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herein. The District hereby covenants to deposit funds in such account at the time and in the
amount specified herein to provide sufficient moneys to pay the principal of and interest on the
Note on the day on which it matures. Payment of the Note shall be in accordance with the terms
of the Note and this Resolution.
The District hereby agrees to maintain as paying agent, registrar and
authenticating agent of the Note, the Trustee under the Trust Agreement.
Section 14. Approval of Actions.
The aforementioned Authorized
Representatives of the District are hereby authorized and directed to execute the Note and cause
the Trustee to authenticate and accept delivery of the Note, pursuant to the terms and conditions
of this Resolution and the Trust Agreement. All actions heretofore taken by the officers and
agents of the District or this Legislative Body with respect to the sale and issuance of the Note
and participation in the Program are hereby approved, confirmed and ratified and the Authorized
Representatives and agents of the District are hereby authorized and directed, for and in the name
and on behalf of the District, to do any and all things and take any and all actions and execute
any and all certificates, agreements and other documents which they, or any of them, may deem
necessary or advisable in order to consummate the lawful issuance and delivery of the Note in
accordance with, and related transactions contemplated by, this Resolution. The Authorized
Representatives of the District referred to above in Section 4 hereof are hereby designated as
“Authorized District Representatives” under the Trust Agreement.
In the event that the Note or a portion thereof is secured by a Credit Instrument,
any one of the Authorized Representatives of the District is hereby authorized and directed to
provide the Credit Provider, with any and all information relating to the District as such Credit
Provider may reasonably request.
Section 15. Proceedings Constitute Contract. The provisions of the Note and
of this Resolution shall constitute a contract between the District and the registered owner of the
Note and the Credit Provider, if any, and such provisions shall be enforceable by mandamus or
any other appropriate suit, action or proceeding at law or in equity in any court of competent
jurisdiction, and shall be irrepealable. The Credit Provider, if any, is a third party beneficiary of
the provisions of this Resolution and the Note.
Section 16. Limited Liability. Notwithstanding anything to the contrary
contained herein or in the Note or in any other document mentioned herein, the District shall not
have any liability hereunder or by reason hereof or in connection with the transactions
contemplated hereby except to the extent payable from moneys available therefor as set forth in
Section 8 hereof.
Section 17. Amendments. At any time or from time to time, the District may
adopt one or more Supplemental Resolutions with the written consents of the Authority and the
Credit Provider, if any, but without the necessity for consent of the owner of the Note for any
one or more of the following purposes:
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(a)
to add to the covenants and agreements of the District in this
Resolution, other covenants and agreements to be observed by the District which
are not contrary to or inconsistent with this Resolution as theretofore in effect;
(b)
to add to the limitations and restrictions in this Resolution, other
limitations and restrictions to be observed by the District which are not contrary
to or inconsistent with this Resolution as theretofore in effect;
(c)
to confirm, as further assurance, any pledge under, and the
subjection to any lien or pledge created or to be created by, this Resolution, of any
monies, securities or funds, or to establish any additional funds or accounts to be
held under this Resolution;
(d)
to cure any ambiguity, supply any omission, or cure or correct any
defect or inconsistent provision in this Resolution; or
(e)
to amend or supplement this Resolution in any other respect;
provided, however, that any such Supplemental Resolution does not adversely
affect the interests of the owner of the Note or of the Note Participations executed and delivered
in connection with the Notes.
Any modifications or amendment of this Resolution and of the rights and
obligations of the District and of the owner of the Note or of the Note Participations executed
and delivered in connection with the Notes may be made by a Supplemental Resolution, with the
written consents of the Authority and the Credit Provider, if any, and with the written consent of
the owners of at least a majority in principal amount of the Note and of the Note Participations
executed and delivered in connection with the Notes outstanding at the time such consent is
given; provided, however, that if such modification or amendment will, by its terms, not take
effect so long as the Note or any or of the Note Participations executed and delivered in
connection with the Notes remain outstanding, the consent of the owners of such Note or of the
Note Participations executed and delivered in connection with the Notes shall not be required.
No such modification or amendment shall permit a change in the maturity of the Note or a
reduction of the principal amount thereof or an extension of the time of any payment thereon or a
reduction of the rate of interest thereon, or a change in the date or amounts of the pledge set forth
in this Resolution, without the consent of the owners of such Note or the owners of all of the
Note Participations executed and delivered in connection with the Notes, or shall reduce the
percentage of the Note or the owners of all of the Note Participations executed and delivered in
connection with the Notes, the consent of the owners of which is required to effect any such
modification or amendment, or shall change or modify any of the rights or obligations of the
Trustee without its written assent thereto.
Notwithstanding any other provision herein, the provisions of this resolution as
they relate to the terms of the Note Participations may be modified by the Purchase Agreement.
Section 18. Severability. In the event any provision of this Resolution shall be
held invalid or unenforceable by any court of competent jurisdiction, such holding shall not
invalidate or render unenforceable any other provision hereof.
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Section 19. Request to Borrow; Transmittal of Resolution. The Note shall be
issued in conjunction with the note or notes of one or more other community college districts, as
described in Section 53853(b) of the Act. Following its adoption by the Legislative Body,
signed copies of this resolution shall be transmitted by the secretary or clerk of the Legislative
Body to the treasurer of the county (the “County”) in which the District is located, to the
County’s board of supervisors (the “County Board”), and to the County’s superintendent of
schools. Transmittal of this resolution to the County Board shall constitute a request by the
Legislative Body for borrowing and for the issuance of the Note by the County Board. This
resolution is based on the assumption that the County Board will fail to authorize, by resolution,
the issuance of the Note within 45 calendar days of its receipt hereof or that the County Board
will notify the District that it will not authorize the issuance of the Note within such 45-day
period. If within such 45-day period the County Board authorizes, by resolution, issuance of the
Note, then, notwithstanding this resolution, the Notes shall be issued in the name of the District
by the County Board pursuant to such resolution of the County Board.
Section 20. Limited Liability and Indemnification. (a) Notwithstanding
anything to the contrary contained herein or in the Note or in any other document mentioned
herein or related to the Note or to any Series of Note Participations to which the Note may be
assigned, the District shall not have any liability hereunder or by reason hereof or in connection
with the transactions contemplated hereby except to the extent payable from moneys available
therefor as set forth herein and (b) the District shall indemnify and hold harmless, to the extent
permitted by law, the County and its officers and employees ("Indemnified Parties"), against any
and all losses, claims, damages or liabilities, joint or several, to which such Indemnified Parties
may become subject because of action or inaction related to the adoption of a resolution by the
County Board of Supervisors providing for the issuance and sale of the Notes, or related to the
proceedings for sale, award, issuance and delivery of the Notes in accordance therewith and
herewith. The District shall also reimburse any such Indemnified Parties for any legal or other
expenses incurred in connection with investigating or defending any such claims or actions.
Section 21. Appointment of Professionals. The law firm of Stradling Yocca
Carlson & Rauth is hereby appointed as Special Counsel for the Program. The District
acknowledges that Special Counsel regularly performs legal services for many private and public
entities in connection with a wide variety of matters, and that Special Counsel has represented, is
representing or may in the future represent other public entities, underwriters, trustees, rating
agencies, insurers, credit enhancement providers, lenders, financial and other consultants who
may have a role or interest in the proposed financing or that may be involved with or adverse to
District in this or some other matter. Given the special, limited role of Special Counsel described
above the District acknowledges that no conflict of interest exists or would exist, waives any
conflict of interest that might appear to exist, and consents to any and all such relationships.
RBC Capital Markets, LLC, Los Angeles, California is hereby appointed as
Underwriter for the Program. Other underwriters or placement agents, as applicable, may be
engaged as provided in the Pricing Confirmation.
Section 22. Form 8038-G; Continuing Disclosure. (A) Any Authorized
Officer is hereby authorized to execute and deliver any Information Return for Tax-Exempt
Governmental Obligations, Form 8038-G of the Internal Revenue Service (“Form 8038-G”), in
DOCSSF/79469v1/022000-0001
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89
connection with the issuance of the Note and the related Series of Note Participations. To the
extent permitted by law, the Authority, the Trustee, the Underwriter and Special Counsel are
each hereby authorized to execute and deliver any Form 8038-G for and on behalf of the District
in connection with the issuance of the Note and the related Series of Note Participations, as
directed by an Authorized Officer of the District.
(B)
The District covenants, for the sole benefit of the Owners of the Series of
Note Participations which evidence and represent the Note (and, to the extent specified in this
Section 22, the beneficial owners thereof), that the District shall provide in a timely manner,
through the Trustee acting as dissemination agent (the “Dissemination Agent”) to the Municipal
Securities Rulemaking Board notice of any of the following events with respect to the District’s
outstanding Note, if material (each a “Listed Event”): (1) principal and interest payment
delinquencies on the Note and the related Series of Note Participations; (2) non-payment related
defaults; (3) modifications to rights of Owners and beneficial owners of the Series of Note
Participations which evidence and represent the Note; (4) optional, contingent or unscheduled
bond calls; (5) defeasances; (6) rating changes; (7) adverse tax opinions or events affecting the
tax-exempt status of the Note and the related Series of Note Participations; (8) unscheduled
draws on debt service reserves reflecting financing difficulties; (9) unscheduled draws on the
credit enhancement reflecting financial difficulties; (10) substitution of credit or liquidity
providers, or their failure to perform; and (11) release, substitution or sale of property securing
repayment of the Note.
Whenever the District obtains knowledge of the occurrence of a Listed Event, the
District shall as soon as possible determine if such event would be material under applicable
federal securities laws. The Authority and the Dissemination Agent shall have no responsibility
for such determination and shall be entitled to conclusively rely upon the District’s
determination.
If the District determines that knowledge of the occurrence of a Listed Event
would be material under applicable federal securities laws, the District shall promptly provide
the Authority and the Dissemination Agent with a notice of such occurrence which the
Dissemination Agent agrees to file with the Municipal Securities Rulemaking Board.
(C)
In the event of a failure of the District to comply with any provision of this
section, any Owner or beneficial owner of the related Series of Note Participations may take such
actions as may be necessary and appropriate, including seeking mandate or specific performance
by court order, to cause the District to comply with its obligations under this section. A default
under this section shall not be deemed an Event of Default under Section 12 hereof, and the sole
remedy under this section in the event of any failure of the District to comply with this section
shall be an action to compel performance.
(D)
For the purposes of this section, a “beneficial owner” shall mean any
person which has the power, directly or indirectly, to make investment decisions concerning
ownership of any Note Participations of the Series which evidences and represents the Notes
(including persons holding Note Participations through nominees, depositories or other
intermediaries).
DOCSSF/79469v1/022000-0001
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90
(E)
The District’s obligations under this section shall terminate upon the legal
defeasance, prior redemption or payment in full of its Note. If such termination occurs prior to
the final maturity of the related Note Participations, the District shall give notice of such
termination in the same manner as for a Listed Event under subsection (B) of this section.
(F)
The Dissemination Agent shall not be responsible in any manner for the
content of any notice or report prepared by the District pursuant to this section. In no event shall
the Dissemination Agent be responsible for preparing any notice or report or for filing any notice
or report which it has not received in a timely manner and in a format suitable for reporting.
Nothing in this section shall be deemed to prevent the District from disseminating any other
information, using the means of dissemination set forth in this section or any other means of
communication, or including any other notice of occurrence of a Listed Event, in addition to that
which is required by this section. If the District chooses to include any information in any notice
of occurrence of a Listed Event in addition to that which is specifically required by this section,
the District shall have no obligation under this section to update such information or include it in
any future notice of occurrence of a Listed Event.
(G)
Notwithstanding any other provision of this Resolution, the District with
the consent of the Dissemination Agent and notice to the Authority may amend this section, and
any provision of this section may be waived, provided that the following conditions are satisfied:
(1)
If the amendment or waiver relates to the provisions of subsection (B) of
this section, it may only be made in connection with a change in circumstance that arises
from a change in legal requirements, change in law, or change in the identity, nature or
status of an obligated person with respect to the Note and the related Note Participations,
or the type of business conducted;
(2)
The undertaking, as amended or taking into account such waiver, would in
the opinion of nationally recognized bond counsel, have complied with the requirements
of the Rule at the time of the original issuance of the Note and the related Note
Participations, after taking into account any amendments or interpretations of the Rule, as
well as any change in circumstances; and
(3)
The amendment or waiver either (i) is approved by the Owners or
beneficial owners of the Note Participations of the Series which evidences and represents
the Note in the same manner as provided in the Trust Agreement for amendments to the
Trust Agreement with the consent of Owners or beneficial owners, or (ii) does not, in the
opinion of nationally recognized bond counsel, materially impair the interests of the
Owners or beneficial owners of the related Note Participations. In the event of any
amendment or waiver of a provision of this section, notice of such change shall be given
in the same manner as for an event listed under subsection (B) of this section, and shall
include, as applicable, a narrative explanation of the reason for the amendment or waiver;
provided, however, the District shall be responsible for preparing such narrative
explanation.
(H)
The Dissemination Agent shall have only such duties as are specifically
set forth in this section. The Dissemination Agent shall not be liable for the exercise of any of its
DOCSSF/79469v1/022000-0001
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91
rights hereunder or for the performance of any of its obligations hereunder or for anything
whatsoever hereunder, except only for its own willful misconduct or gross negligence. Absent
gross negligence or willful misconduct, the Dissemination Agent shall not be liable for an error
of judgment. No provision hereof shall require the Dissemination Agent to expend or risk its
own funds or otherwise incur any financial or other liability or risk in the performance of any of
its obligations hereunder, or in the exercise of any of its rights hereunder, if such funds or
adequate indemnity against such risk or liability is not reasonably assured to it. The District
hereunder agrees to compensate the Dissemination Agent for its reasonable fees in connection
with its services hereunder, but only from the District’s share of the costs of issuance deposited
in the Costs of Issuance Fund held and invested by the Trustee under the Trust Agreement.
(I)
This section shall inure solely to the benefit of the District, the
Dissemination Agent, the Underwriter and the Owners and beneficial owners from time to time
of the Note Participations, and shall create no rights in any other person or entity.
Section 23. Resolution Parameters.
(a)
Name of District: Cabrillo Community College District
(b)
Maximum Amount of Borrowing: $9,000,000
(c)
Authorized Representatives:
TITLE
(1) President
(2) Vice President, Administrative Services
(3) Director, Business Services
DOCSSF/79469v1/022000-0001
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92
Section 24. Effective Date. This Resolution shall take effect from and after its
date of adoption.
PASSED AND ADOPTED by the District this __th day of ___________, 2012,
by the following vote:
AYES:
NOES:
ABSENT:
By:
Attest:
Secretary, Board of Trustees
DOCSSF/79469v1/022000-0001
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President, Board of Trustees
93
EXHIBIT A
FORM OF NOTE
CABRILLO COMMUNITY COLLEGE DISTRICT
2011-2012 TAX AND REVENUE ANTICIPATION NOTE, SERIES A*/
Interest Rate
Maturity Date
Date of
Original Issue
First
Repayment Date
Second
Repayment Date
Third
Repayment Date
__% (Total of
principal and interest
due on Note at
maturity)
__% (Total of
principal and interest
due on Note at
maturity)**/
__% (Total of
principal and
interest due on
Note at maturity)
REGISTERED OWNER:
PRINCIPAL AMOUNT:
FOR VALUE RECEIVED, the District designated above (the “District”)
acknowledges itself indebted to and promises to pay to the registered owner identified above, or
registered assigns, on the maturity date set forth above, the principal sum specified above in
lawful money of the United States of America, and to pay interest thereon on each Interest
Payment Date, as defined in the Trust Agreement, at the rate of interest specified above (the
“Note Rate”). Principal of and interest on this Note are payable in such coin or currency of the
United States as at the time of payment is legal tender for payment of private and public debts,
such principal to be paid upon surrender hereof at the principal corporate trust office of Wells
Fargo Bank, National Association in Los Angeles, California, or its successor in trust (the
“Trustee”). Interest is payable as specified in the Trust Agreement. Interest shall be calculated
on the basis of a 360-day year, consisting of twelve 30-day months, in like lawful money from
the date hereof until the maturity date specified above and, if funds are not provided for payment
at maturity, thereafter on the basis of a 360-day year for actual days elapsed until payment in full
of said principal sum. Both the principal of and interest on this Note shall be payable only to the
registered owner hereof upon surrender of this Note as the same shall fall due; provided,
*/
If more than one Series is issued under the Program in the Repayment Fiscal Year.
**/
Number of Repayment Dates and percentages to be determined in Pricing Confirmation (as defined in the
Resolution).
DOCSSF/79469v1/022000-0001
A-1
94
however, no interest shall be payable for any period after maturity during which the holder
hereof fails to properly present this Note for payment. If the District fails to pay this Note when
due or the Credit Provider (as defined in the Resolution hereinafter described), if any, is not
reimbursed in full for the amount drawn on or paid pursuant to the Credit Instrument (as defined
in the Resolution) to pay all or a portion of this Note on the date of such payment, this Note shall
become a Defaulted Note (as defined and with the consequences set forth in the Resolution).
It is hereby certified, recited and declared that this Note (the “Note”) represents
the authorized issue of the Note in the aggregate principal amount made, executed and given
pursuant to and by authority of certain resolutions of the Legislative Body of the District duly
passed and adopted heretofore, under and by authority of Article 7.6 (commencing with Section
53850) of Chapter 4, Part 1, Division 2, Title 5 of the California Government Code (collectively,
the “Resolution”), to all of the provisions and limitations of which the owner of this Note, by
acceptance hereof, assents and agrees.
The principal of the Note, together with the interest thereon, shall be payable from
taxes, income, revenue, cash receipts and other moneys which are received by the District for the
general fund of the District and are received in or accrued to the Repayment Fiscal Year, as
defined in the Resolution, and which are available for payment thereof. As security for the
payment of the principal of and interest on the Note, the District has pledged the first amounts of
unrestricted revenues of the District received on the last day of the Repayment Months (as
defined in the Resolution) identified in the Pricing Confirmation (as defined in the Resolution)
(and any amounts received thereafter received in or accrued to the Repayment Fiscal Year) until
the amount on deposit in the Payment Account (as defined in the Resolution) in each such
month, is equal to the corresponding percentages of principal of and interest due on the Note as
set forth in the Pricing Confirmation (such pledged amounts being hereinafter called the
“Pledged Revenues”), and the principal of the Note and the interest thereon shall constitute a first
lien and charge thereon and shall be payable from the Pledged Revenues, and to the extent not so
paid shall be paid from any other moneys of the District lawfully available therefor as set forth in
the Resolution. The full faith and credit of the District is not pledged to the payment of the
principal or interest on this Note.
The District and the Trustee may deem and treat the registered owner hereof as
the absolute owner hereof for the purpose of receiving payment of or on account of principal
hereof and interest due hereon and for all other purposes, and the District and the Trustee shall
not be affected by any notice to the contrary.
It is hereby certified that all of the conditions, things and acts required to exist, to
have happened and to have been performed precedent to and in the issuance of this Note do exist,
have happened and have been performed in due time, form and manner as required by the
Constitution and statutes of the State of California and that the amount of this Note, together
with all other indebtedness of the District, does not exceed any limit prescribed by the
Constitution or statutes of the State of California.
It is hereby certified that all of the conditions, things and acts required to exist, to
have happened and to have been performed precedent to and in the issuance of this Note do exist,
have happened and have been performed in due time, form and manner as required by the
DOCSSF/79469v1/022000-0001
A-2
95
Constitution and statutes of the State of California and that the amount of this Note, together
with all other indebtedness of the District, does not exceed any limit prescribed by the
Constitution or statutes of the State of California.
IN WITNESS WHEREOF, the Legislative Body of the District has caused this
Note to be executed by the manual or facsimile signature of a duly Authorized Representative of
the District and countersigned by the manual or facsimile signature of the Secretary or Clerk of
the Board of Trustees as of the date of authentication set forth below.
CABRILLO COMMUNITY COLLEGE
DISTRICT
By:
Countersigned
By:
[no signature/form only]
Secretary, Board of the Trustees
DOCSSF/79469v1/022000-0001
A-3
[no signature/form only]
President, Board of Trustees
96
CERTIFICATE OF AUTHENTICATION AND REGISTRATION
This Note is the Note mentioned in the within-mentioned Resolution authenticated on the
following date:
WELLS FARGO BANK, NATIONAL
ASSOCIATION, as Trustee
By:
DOCSSF/79469v1/022000-0001
A-4
[no signature/form only]
Authorized Officer
97
[STATEMENT OF INSURANCE]*/
*/
To be used only if Credit Instrument is a policy of municipal bond insurance.
DOCSSF/79469v1/022000-0001
A-5
98
99
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
February 6, 2012
SUBJECT:
Award of Contract: District, Foundation, Bond Audit 2012-14
REASON FOR BOARD CONSIDERATION
ENCLOSURE(S)
ITEM NUMBER
ACTION
Page 1 of 1
C.4
BACKGROUND:
The Education Code requires the District to provide for an annual audit of the books and accounts of
the District. The Board is asked to approve the contract with Vavrinek, Trine, Day & Company,
LLP (VTD) for the June 30, 2012, 2013 and 2014 audits. The contract also allows for two (2)
options to renew on an annually bases at the end of the three (3) year term. Fees for 2012, 2013 and
2014 have been reduced from the current rates.
Based on the cost proposal submitted by VTD the costs for the next five years would be:
2012
2013
2014
2015
2016
CCCD
$54,000
$55,050
$56,150
$57,250
$58,400
Foundation
$11,500
$11,720
$11,940
$12,170
$12,400
GO Bond
$6,000
$6,100
$6,200
$6,320
$6,440
Total
$71,500
$72,870
$74,290
$75,740
$77,240
FISCAL IMPACT:
Fiscal Year 2011-12: $71,500
Fiscal Year 2012-13: $72,870
Fiscal Year 2013-14: $74,290
RECOMMENDATION:
It is recommended that the Governing Board authorize the District, to enter into a contract with Vavrinek,
Trine, Day & Company for audit services for 2012 through 2014.
Administrator Initiating Item:
Serena Muindi
Victoria A. Lewis
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
 Yes  No
 Yes  No
Final Disposition
100
101
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
February 6, 2012
SUBJECT:
Lease Agreement Renewal: Baskin Center, Building 1700
REASON FOR BOARD CONSIDERATION
ENCLOSURE(S)
ITEM NUMBER
ACTION
Page 1 of 1
C.5
BACKGROUND:
At the September 2009 meeting the Governing Board authorized the District to contract with Santa
Cruz Community Counseling Center (SCCCC) for leasing of the Baskin Center for 24 months for the
purpose of operating a Head Start program. The existing program will continue to operate in Building
1700.
The lease is currently up for renewal and has been amended to extend for 12 months beginning
November 1, 2011 and will terminate as of October 31, 2012, with options to renew upon agreement
of both parties.
Under the provision of the proposal, SCCC would pay the District $4,000 per month plus a utility
fee of $330 per month.
FISCAL IMPACT:
$48,000 revenue in generated from 11/1/11 – 10/31/12.
RECOMMENDATION:
It is recommended that the Governing Board authorize the District to contract with SCCCC for leasing
of the Baskin Center for 12 months commencing November 1, 2011.
Administrator Initiating Item:
Serena Muindi
Victoria Lewis
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
 Yes  No
 Yes  No
Final Disposition
102
103
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
February 6, 2012
SUBJECT:
Lease Agreement Amendment: Scotts Valley Center,
January 2012 – June 2015
REASON FOR BOARD CONSIDERATION
ACTION
ITEM NUMBER
ENCLOSURE(S)
Page 1 of 3
C.6
BACKGROUND:
At the September 2006 meeting, the Governing Board authorized a three-year lease agreement with
Scotts Valley Partners that was extended for two additional years beginning in 2009 for 7,350 square
feet at 104 Whispering Pines Drive, Scotts Valley. Due to the difficult economic times, District
approached Scotts Valley Partners regarding options to lower the rent. Scotts Valley Partners agreed
to lower the rent.
The lease is currently up for renewal and has been amended to extend for three and a half additional
years beginning January 1, 2012 and will terminate as of June 30, 2015. In addition, the District is
responsible for utility and custodial costs.
Based on the new amended lease agreement the estimated costs for the next three and a half years
would be:
Year Six (2012):
Year Seven (2013):
Year Eight (2014):
Year Nine (2015):
$123,000 plus custodial and utilities
$127,500 plus custodial and utilities
$132,000 plus custodial and utilities
$ 66,000 plus custodial and utilities
FISCAL IMPACT:
$148,578 per year
RECOMMENDATION:
It is recommended that the Governing Board authorize the District to enter into a lease agreement
amendment with Scotts Valley Partners for 7,350 square feet at 104 Whispering Pines Drive,
Scotts Valley from January 2012 thru June, 2015.
Administrator Initiating Item:
Serena Muindi
Victoria Lewis
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
 Yes  No
 Yes  No
Final Disposition
104
AMENDMENT # 2012-2 TO THAT CERTAIN LEASE DATED SEPTEMBER
11, 2006, BETWEEN SCOTTS VALLEY PARTNERS, A CALIFORNIA
GENERAL PARTNERSHIP (LANDLORD) AND CABRILLO COLLEGE
(TENANT) FOR THOSE CERTAIN PREMISES LOCATED AT 104
WHISPERING PINES, SCOTTS VALLEY, CA.
Landlord and Tenant, by their signatures below, amend the Lease as set out
below. In the event of a conflict between this Amendment and the Lease
agreement, this Amendment shall control.
1. Reference Paragraph 1. Term:
The lease termination date shall be extended to June 30, 2105.
Tenant shall have the right to terminate as of June 30 of 2013 and June 30, of
2014, by completing each of the following conditions:
a) Tenant shall serve written notice to Landlord on or before February
15 of the terminating year, and
b) With its notice, Tenant to pay to landlord $8,000.00 as unamortized
leasing commissions and costs for a June 2013 termination and
$4,000.00 as unamortized leasing commissions for a June 2014
termination.
2. Reference Paragraph 2. Base Rent:
The monthly base rent schedule is as follows:
January 1, 2012 to June 30, 2013:
July 1, 2013 to June 30, 2015:
$10,250.00
$11,000.00
RENT
(BASE & COMMON
AREA)
CALENDAR YEAR
UTILITIES
TOTAL
2012 (Jan – Dec)
$
10,250.00
$
2,131.50
$
12,381.50
2013 (Jan - June)
$
10,250.00
$
TBD
$
12,381.50*
2013 (July - Dec)
$
11,000.00
$
TBD
$
13,131.50*
2014
$
11,000.00
$
TBD
$
13,131.50*
2015 (Jan-June)
$
11,000.00
$
TBD
$
13,131.50*
*Estimated
105
This base rent has hereby been amended to include the building operating expenses,
as set forth in the Lease dated September 11, 2006, with Lessee additionally paying
for certain utilities, maintenance and janitorial as originally agreed upon in the Lease.
READ AND APPROVED AND RECEIPT OF A COPY IS HEREBY ACKNOWLEDGED:
LANDLORD
TENANT
DATE:_______
DATE:_______
___________________
Scotts Valley Partners
__________________
Victoria Lewis,
Vice President, Administrative Services
106
107
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
February 6, 2012
SUBJECT:
Negotiated Agreement for 2011-12: CCEU and District
REASON FOR BOARD CONSIDERATION
ACTION
ENCLOSURE(S)
Page 1 of 1
ITEM NUMBER
C.7
BACKGROUND:
In January, 2012, the District reached tentative agreement with CCEU regarding a contract for
2011-12. It is anticipated that the District will submit a recommendation to the Board at the
February, 2012 meeting regarding the agreement with CCEU bargaining unit members.
Administrator Initiating Item:
Victoria Lewis
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
 Yes  No
 Yes  No
Final Disposition
108
109
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
February 6, 2012
SUBJECT:
Chancellor’s Office Classified Employee of the Year Nomination
REASON FOR BOARD CONSIDERATION
ACTION
ENCLOSURE(S)
Page 1 of 1
ITEM NUMBER
C.8
BACKGROUND:
In recognition to his many contributions to Cabrillo College, President King recommends the nomination
of John Welch as the California Community College’s Classified Employee of the Year. John Welch was
the College’s Meritorious Service Award Recipient in 2011.
RECOMMENDATION:
It is recommended that the Governing Board approve the recommendation of John Welch as the
Community College Classified Employee of the year.
Administrator Initiating Item:
Brian King
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
 Yes  No
 Yes  No
Final Disposition
110
111
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
February 6, 2012
SUBJECT:
2011-12 through 2014-15 Budget Planning Parameters Update
REASON FOR BOARD CONSIDERATION
INFORMATION
ENCLOSURE(S)
Page 1 of 10
ITEM NUMBER
D.1
BACKGROUND
The Governing Board received a budget update on December 7, 2011. Updates have been received
since then on the status 2011-12 funding and the 2012-13 budget. The college spent the fall semester
reviewing Carryover and One-time funds allocated to departments. As a result of the review, over
$372,000 in give backs have been contributed to the operating reserve. A summary of the Carryover,
One-time (Critical Needs) funds is attached.
Tier one and two reductions will be implemented for 2011-12. Tier one cuts are considered one-time
reductions that apply to the current year; $315,000 for Cabrillo. Tier two reductions are permanent
ongoing cuts that total $755,000 and come with a workload reduction of 165 credit FTES. The
Chancellor’s Office notified districts in January that the student fee revenue shortfall anticipated for
2011-12 had grown significantly. The shortfall for Cabrillo was estimated at $250,000 in fall of 2011.
The updated reduction for 2011-12 is estimated at $1,000,000 or more. This change will require the
college to utilize additional one-time reserves of $750,000 for the current year. The state Chancellor’s
Office has not calculated final totals.
The Governor’s January Budget was released a week early; January 5, 2011. The Governor’s budget
assumes a deficit of $9.2 billion ($4.1 billion carried over from 2011-12 and $5.1 billion for 2012-13.)
The Governor’s Budget is considered the best case scenario. It is also important to note that the
Governor’s budget is built on the assumption that voters will approve personal income tax increases and
sales tax increases. The voters will vote on the tax proposals in November, 2012, four months into the
2012-13 fiscal year. If the tax increases fail to pass, the college will be forced to cut an additional $2.7
million (a 5.56% workload, 588.28 credit FTES).
Highlights of the Governor’s Budget for community colleges include:
No funding reductions for 2012-13
Student fee increase of $10 per credit unit bringing enrollment fees to $46 per credit unit
effective Summer 2012.
A reduction of deferrals to community colleges of $218.2 million.
Rebenching of proposition 98 for the elimination of other small tax and program reductions.
This should not impact overall funding to community colleges.
Administrator Initiating Item:
Victoria Lewis
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
 Yes  No
 Yes  No
Final Disposition
112
Consolidation of all categorical programs with the exception of the Disabled Students Program
and Foster Care.
Assumes personal income tax increases for filers with incomes over $250,000 and a sales tax
increase of ½ percent.
If tax increases pass, the Governor is proposing a minimum funding increase to community
colleges of 4% for 2013-14 and 2014-15. Several options for the funding allocation have been
discussed. Below are possible options being considered:
1) The increase in funding could be used to reduce the funding deferral to the community
colleges. This option does not increase funding to colleges but would reduce the level of
borrowing and associated costs colleges are incurring.
2) The increase in funding could be tied to student success initiatives with new accountability
measures attached.
3) The increase could be in the form of a COLA or unrestricted revenue.
The 2012-13 budget will mark the sixth year that the college has reduced its base operating budget. The
Governor’s budget, while optimistic for Cabrillo comes with significant downside risk for the college.
The College Planning Council received all state budget updates via email from the California
Community Colleges Chancellor’s Office and the Community College League of California. The
budget planning documents attached were reviewed with CPC on Wednesday, January 25, 2012.
The college’s budget planning information has been updated to reflect information discussed above. As
is noted on the multi-year planning documents, the college is using the Governor’s budget to plan for the
2012-13 budget year.
The following attachments were reviewed by the college planning council on January 25, 2012 and are
included for the Governing Board’s information:
A summary of the Carryover and One-Time/Critical Needs balances as of 1/9/12
California Community College League Budget Simulation for Cabrillo
Updated Base Budget Planning Parameters for 2011-12 through 2014-15
An updated estimate of Cabrillo Operating Reserves for 2011-12.
Projected Operating Reserves for 2011-12 and 2012-13
Updated Budget Development Timeline
The planning assumptions for 2011-12 have been updated to include the ongoing Tier 2 permanent
funding reduction of $755,000. The student fee revenue shortfall for 2011-12 is treated as a one-time
reduction for state purposes. The assumptions going forward are that the shortfall will continue into
2012-13 with a minimum loss of funding of $500,000. The 2011-12 funding reductions are still
estimates. The first principal apportionment calculation will be released in March and will include
updated revenue estimates for Cabrillo. The 2012-13 revenue is projected at the same level as 2011-12
with the exception of the student fee revenue shortfall. The 2013-14 and 2014-15 revenue estimates
show an increase in revenue of 4%. Although this increase is highly unlikely, it is included in planning
to demonstrate the continued structural deficit which exists even when increases in revenue are assumed.
The ongoing structural deficit for 2012-13 is currently projected at $5.5 million. One of the major
components of the structural deficit is the built in increases in expenses that the college must budget
each year. It should be noted that Cabrillo reduced the number of full-time faculty positions in the
budget to the minimum number required by the state; 196. The reduction of faculty positions has
113
yielded significant savings in the budget to date. The college is planning to utilize $2.3 in operating
funds to bridge the deficit for 2012-13 leaving a deficit balance of $3.2 for 2012-13. The amount of
reserves available for bridging the 2012-13 budget was reduced due to the unexpected student fee
revenue shortfall for 2011-12. The college has set a budget reduction target of $2.5 million for the
first phase of 2012-13 budget planning. The first phase of planning will be complete by May and all
permanent reductions identified in the first phase will be included in the 2012-13 Preliminary Budget
approved by the Governing Board in June 2012.
There are concerns student fee increases, the continued reduction of funded enrollment, changes in
Title V regulations such as repeatability, changes in Financial Aid regulations, etc. will continue to
impact Cabrillo’s long term fiscal stability. Built in expenditures continue to rise at levels that are not
sustainable over the long term. Fiscal stability and student success are of the utmost importance to all
constituents of the college community.
The last document in this update includes a timeline for the development of reduction plans and the
Governing Board approval.
College-wide dialogue will continue throughout the year. CPC has scheduled special meetings and will
continue to meet regularly. Component Vice Presidents and the President held open neighborhood
meetings with staff January 20-27. Managers are meeting with staff to develop and discuss budget
reduction plans. The Services and Program Reduction Advisory Committee (SPRAC) will review
reduction plans once they are completed and provide suggestions for how to improve the plans.
The Governing Board will continue to receive monthly updates and take action on budget planning
decisions that are required to move forward.
114
Board
February 6, 2012
Carryover and One Time/Critical Needs Balances as of 1/9/2012
Carryover - Fund 14
Encumbrances
231,286
1,133
35,232
64,473
13,070
345,194
Give Backs
71,489
24,887
70,751
9,000
21,992
198,119
Balance
449,181
512,756
560,527
540,582
41,767
241,437
326,976
2,673,227
(754,193)
1,919,034
Expenditures Encumbrances
Budget
Admin Services
175,570
22,955
13,814
Districtwide
4,621,944
274,804
60,937
Instruction
59,822
702
1
President
61,015
4,478
Reserves
3,377,895
296,949
35,000
Student Services
Total
8,593,195
337,939
74,752
Less Reserves and Less $3,478,192 Bridge Funds for 2011-12 Budget shortfall
Total Fund 17
Give Backs
4,530
154,711
15,333
174,574
Balance
134,271
4,131,492
59,119
41,204
3,377,895
261,949
8,005,930
(6,856,087)
1,149,843
Budget
Admin Services
1,122,788
Contract Commitments *
638,123
Districtwide
555,823
Instruction
637,715
President
53,755
Special Programs**
326,871
408,956
Student Services
Total
3,744,031
Less Contract Commitments & Special Programs
Total Fund 14
Expenditures
370,832
125,367
(30,723)
(8,851)
2,988
20,961
46,918
527,492
One-time - Fund 17
Grand Total Carryover & One-time
372,693
* Contract Commitments:
CCFT Conference Stipends
Critical Needs- (Examples)
Classified & Confidential Staff Development
Classroom Remodels
Public Safety In-Service Funds
CCFT-conference funds
Accreditation
** Special Programs:
Green Technology Center-start up
Dental Hygiene Clinic (4160)
Health Services- Bldg Remodel
Horticulture Center (4110)
DSPS/Matric- shortfall
Sesnon House (2119)
Retirement Incentives- faculty/classified
Student Printing Program (#188)
College Emergency Fund
3,068,877
115
Board
February 6, 2012
116
2011-12 through 2014-15
Base Budget
Planning Parameters
Difference between ongoing Revenues & Expenses (Structural Deficit)
Increase in State Revenue Anticipated
General Apportionment adjustment 2011-12 Tier 2 Permanent Reductions
2011-12 State
Enacted Budget
2012-13
Mid-Range Projected
2013-14
Projected
2014-15
Projected
(145,000)
(4,233,200)
(5,560,200)
(4,981,700)
(755,000)
Gen. Apportionment reduction- $400 million net of student fee increase
(4,412,000)
Increase in Student Fees $110 mil to offset apportionment reduction
2011-12/ 2012-13 Student Fee Revenue Shortfall
Possible 4% Increase in CCC Prop 98 allocation- if tax proposals pass
Net change in revenue
1,097,000
(250,000)
(250,000)
(4,465,000)
(4,483,200)
2,100,000
(3,460,200)
2,200,000
(2,781,700)
150,000
(395,000)
200,000
(320,000)
(112,500)
(345,000)
(112,500)
(345,000)
(230,000)
(575,000)
(66,000)
(85,000)
(62,000)
?
(50,000)
(633,000)
?
(145,000)
(36,000)
?
?
?
(696,000)
?
(145,000)
(24,000)
?
?
?
(125,000)
(100,000)
(150,000)
(10,000)
(150,000)
?
?
?
?
?
?
(1,077,000)
?
(1,521,500)
?
(1,482,500)
?
(4,981,700)
(4,264,200)
Net Increases in Ongoing Expenses
Full-time Faculty Position changes (-3, -4, +3, +3) (net of adjunct backfill)
Step, Column, Longevity Increases, etc.
Classified Positions
Medical Plan Rate Increase-- 4%, 10%, 10%, 10%
Management Positions
Retiree Benefit Increase
PERS Rate Increase
STRS Rate Increase
Worker's Comp, Unemployment Insurance
New Facilities Supplies & Operating, Staff
TRAN Interest Expense
Utilities
Net Operating Increases
District Contribution- Bus Pass Program
Retiree Benefits- New Employees
Labor agreements
Reduction in Indirect Reimbursements from grants
Total Expenditure Increases
Budget Reductions
Budget Reductions Phase I, Round I
Budget Reductions Phase I, Round II
Ongoing Shortfall*
730,500
97,653
(4,233,200)
(5,560,200)
Allocation of 66 2/3% of operating reserves
3,478,200
2,300,000
Deficit net of One-time funds
(755,000)
(3,260,200)
0
(194,353)
(60,000)
174,000
100,000
?
?
(135,000)
(596,353)
Estimates will change as more information becomes available
The 2012-13 Preliminary Budget Reduction target for the June Board meeting is $2.5 million
If Tax Increases on the ballot do not pass, the deficit will increase by another $2.7 million (5.56%). This increase is not reflected above.
117
Board
February 6, 2012
OPERATING RESERVE--2011-12 Update
Beginning Balance 7/1/11
$
8,593,195
Less:
FTES Reserves
(500,000)
Allocation for 2011-12 Deficit
(3,478,192)
Allocation to 2011-12 Mid-Year Reductions
(1,070,000)
'One Time' Allocation Carryover Balance from FY 2010-11
(1,051,713)
Allocation for 'One Time' Sub-Fund for FY 2011-12
(1,184,395)
Allocation to 2011-12 Mid-Year Reduction-Student Fee Revenue
Shortfall
(750,000)
2011-12 Give Backs from Carryover/One-Time Funds
Projected Ending Operating Reserve Balance 6/30/12*
372,000
$
930,895
* Does not include FTES reserve of $1,000,000 or the 5% general reserve of $3,209,000
118
CABRILLO COLLEGE
GENERAL FUND BALANCE
Board
February 6, 2012
Projected Operating Reserves
OPERATING RESERVES
Beginning Balance (Mid Year-Bridge Fund Reserves, Final Budget)
ADD:
Carryover and One-time Fund Give Backs
Projected Ending balance
2012-13 Estimated One-Time Subfund Allocations
LESS:
2011-12 Increase in Student Fee Revenue Shortfall (January, 2012)
66.67% Allocated to 2012-13 Deficit
Projected Ending Operating Reserves
= (1,931,000+1,500,000) *66.67%
Projected
FY 2011-12
1,309,000
372,000
1,500,000
(500,000)
Projected
@ 66.67%
FY 2012-13
1,931,000
1,500,000
(750,000)
(2,300,000)
1,931,000
1,131,000
3,431,000
2,287,448
CABRILLO COLLEGE
FY 2012-13 Base Budget/Categorical Budget Development Timeline Draft
Board
February 6, 2012
September 7, 2011
September 21 & 22
SANTA CRUZ COUNTY COMMITMENT KICK OFF
BUDGET TOWN HALL MEETINGS
CPC MEETING
- Budget Planning Kick Off For 2012-13
September - December, 2011 FACULTY SENATE- Program Review Task Force meets to develop recommendations
October 3, 2011
BOARD MEETING
October 4/5, 2011
October 25/19, 2011
Information Items:
- Budget Presentation 2012-13
- Review of 6/30/11 Ending Fund Balance
ADMINISTRATIVE COUNCIL/MANAGER'S MEETING/CPC MEETING
Information Items:
- Budget Planning Parameters for 2012-2014
- Budget Development Timeline
ADMINISTRATIVE COUNCIL/CPC MEETING
October 4-December 1, 2011 Carryover and One-Time Fund review by Components, Cabinet, Admin. Council and CPC
October/November
Faculty Prioritization Process/ Determine FON requirements for Fall 2012
November 7, 2011
BOARD MEETING
Information Items:
- Budget Planning Parameters for 2012-2014
- Budget Development Timeline
November 8/2, 2011
ADMINISTRATIVE COUNCIL/MANAGER'S MEETING/
CPC MEETING
November 22/16, 2011
ADMINISTRATIVE COUNCIL/MANAGER'S MEETING/
CPC MEETING
December 5, 2011
BOARD MEETING
Action Items:
- Budget Planning Parameters for 2012-2014
- Budget Development Timeline
- Review Faculty Obligation number for 2012
December 6/7, 2011
ADMINISTRATIVE COUNCIL/MANAGER'S MEETING/
CPC MEETING
December 20/21, 2011
ADMINISTRATIVE COUNCIL/CPC
January 9, 2012
BOARD MEETING
Information Items:
- Budget Update
January 10, 2012
2012-13 GOVERNOR'S STATE BUDGET
13-Jan-11 STATE BUDGET WORKSHOP
January 10/4, 2012
ADMINISTRATIVE COUNCIL/MANAGER'S MEETING/
CPC MEETING
January 24/18, 2012
ADMINISTRATIVE COUNCIL/CPC
February 6, 2012
BOARD MEETING
Information Items:
- Update Budget Parameters FY2012-13 and FY 2013-14
February 7/1, 2012
February 21/15, 2012
- Update Budget Development Timeline- FY 2013-14
- Review Budget Reduction Target for 2012-13- ALL Funds, $2.5 million for Base Budget
- Carryover and One-Time Fund review/Critical Needs
ADMINISTRATIVE COUNCIL/MANAGER'S MEETING/
CPC MEETING
ADMINISTRATIVE COUNCIL/CPC
119
CABRILLO COLLEGE
FY 2012-13 Base Budget/Categorical Budget Development Timeline Draft
Board
February 6, 2012
March- April 2012
April - June 2012
March 5, 2012
SPRAC Review of Program Reduction Plans for 2012-13
March, 2012
March 6/7, 2012
First Principal Apportionment 2011-12 Received
ADMINISTRATIVE COUNCIL/MANAGER'S MEETING/
CPC MEETING
ADMINISTRATIVE COUNCIL/CPC MEETING
Continue to evaluate/revise Planning Parameters
March 20/21, 2012
April, 2012
April 2, 2012
April 3/4, 2012
April 24/18, 2012
May 2012
May 7, 2012
May 8/2, 2012
May 29/16, 2012
May 25, 2012
June 11, 2012
June 12/6, 2012
June 26/20, 2012
August 6, 2012
August 7/1, 2012
August 28/15, 2012
September 10, 2012
September 11/5, 2012
September 25/19, 2012
2012-13 Negotiations- All groups
BOARD MEETING
Information Items:
- FY 2011-12 Mid Year Cuts from the state
- Budget Reduction Plans (Base, Categorical Budgets & Other funds)
- Projected General Fund Ending balance as of June 30,2012
Action Items:
- March 15 Notices to Faculty- Reduction or Discontinuance of Services
- Resolution-Reduction or Discontinuance of Classified/Confidential/Management Service
BOARD MEETING
Action Items:
- Budget Reduction Goals (Base, Categorical Budgets & Other funds)
- Update Budget Development Timeline- FY 2013-14
- FY 2011-12 Mid Year Cuts from the state
- Budget Reduction Plans (Base, Categorical Budgets & Other funds)
Action Items:
- Resolution-Reduction or Discontinuance of Classified/Confidential/Management Service
ADMINISTRATIVE COUNCIL/MANAGER'S MEETING/
CPC MEETING
ADMINISTRATIVE COUNCIL/CPC
Second Principal Apportionment 2011-12 Received
BOARD MEETING
Action Items:
- Final Notices to Faculty- Reduction or Discontinuance of Services
- Resolution-Reduction or Discontinuance of Classified/Confidential/Management Service
ADMINISTRATIVE COUNCIL/MANAGER'S MEETING/
CPC MEETING
ADMINISTRATIVE COUNCIL/CPC MEETING
Governor's May Revise for 2012-13 released
BOARD MEETING
Action Items:
- 2012-13 Preliminary Budget
ADMINISTRATIVE COUNCIL/MANAGER'S MEETING/
CPC MEETING
ADMINISTRATIVE COUNCIL/CPC MEETING
BOARD MEETING
Information Items:
- Update Budget Parameters FY2012-13 and FY 2013-14
ADMINISTRATIVE COUNCIL/MANAGER'S MEETING/
CPC MEETING
ADMINISTRATIVE COUNCIL/CPC MEETING
BOARD MEETING
Action Items:
- 2012-13 Final Budget
ADMINISTRATIVE COUNCIL/MANAGER'S MEETING/
CPC MEETING
ADMINISTRATIVE COUNCIL/CPC MEETING
120
121
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
February 6, 2012
SUBJECT:
2011-12 Cash Flow Update – Second Quarter
REASON FOR BOARD CONSIDERATION
INFORMATION
ENCLOSURE(S)
ITEM NUMBER
Page 1 of 3
D.2
BACKGROUND:
In fiscal year 2004-05, the state initiated the practice of deferring a portion of the expected June allocation
to the next fiscal year (July). Statewide, this amounts to $200 million dollars; for Cabrillo College this
roughly equates to a $2 million dollar reduction in cash received at the end of the fiscal year. Subsequent
years have seen a dramatic increase in cash deferrals:
2008-09
2009-10
2010-11
$3.4 Million deferred from January-April monthly allocations, to 2009-10.
$7.5 Million deferral from January-June monthly allocations, to 2010-11.
Approximately $1.5 Million in additional deferrals to 2011-12
The college relies primarily on monthly state apportionment payments to meet monthly expenditure
commitments such as payroll and general operating. The District has developed the attached cash flow
projection tools to aid in planning day to day cash management. Cash flow projections are updated based
on the latest state budget information. These reports track projected and actual cash activities, and balances
and identifies significant variances. The Quarterly Cash Flow Statement shows projected and actual cash
in and cash out. Variances between projected and actual cash flows are identified and explained on the
report as well as assumptions used to develop the projections.
The volatility of the state budget continues to make cash management a challenge for the District.
Cash flow updates will be provided to the Governing Board on a quarterly basis. The Projected Cash
Balance worksheet will include a rolling 12 month period.
Administrator Initiating Item:
Roy Pirchio
Victoria Lewis
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
 No
Final Disposition
Cabrillo College 2011-12 Cashflow Statement
October
Projected
Actual
122
November
Actual minus
Projection
Projected
Actual
December
Actual minus
Projection
Projected
Actual
Actual minus
Projection
Cashflow In
6,933,540.25
7,681,942.77
748,402.52
-
6,631,568.60
7,759,057.17
1,127,488.57
-
14,430,424.10
14,033,653.35
(396,770.75)
-
6,933,540.25
7,681,942.77
748,402.52
6,631,568.60
7,759,057.17
1,127,488.57
14,430,424.10
14,033,653.35
(396,770.75)
Payroll
Accts Payable
Other/Xfers
4,124,531.31
4,710,751.23
(72,000.00)
4,076,942.76
6,956,143.86
(75,500.21)
(47,588.55)
2,245,392.63
(3,500.21)
3,828,369.34
2,246,708.32
700,000.00
3,515,714.38
2,401,721.12
895,431.33
(312,654.96)
155,012.80
195,431.33
4,521,358.28
3,040,835.00
(51,000.00)
5,422,154.17
2,891,910.24
(51,652.99)
900,795.89
(148,924.76)
(652.99)
Total Cash Out
8,763,282.54
10,957,586.41
2,194,303.87
6,775,077.66
6,812,866.83
37,789.17
7,511,193.28
8,262,411.42
751,218.14
(1,829,742.29)
(3,275,643.64)
(1,445,901.35)
946,190.34
1,089,699.40
6,919,230.82
5,771,241.93
Apportionment
Other/Xfers
Total Cash In
Cashflow Out
Surplus/(Deficit)
Variance Reconciliation
(143,509.06)
Assumptions
October
Cash In:
Lottery Higher than Anticipated
Cash Out:
Fin Aid Disb End of Month
87,400.00
2,000,000.00
November
Cash In:
Fin Aid Reimb
1,200,000.00
Cash Out:
PERS/STRS paid in December
Revenue Xfer from GF to Bldg
429,376.00
200,000.00
Oct-Nov PERS paid in Dec
Delay due to PERS Conversion
Nov STRS Paid in Dec
429,376.00
December
Cash In:
Cash Out:
375,163.00
*
Projected Apportionment includes deferrals of $9,699,713
*
Assumes no deferrals in categorical programs
*
Cash In and Cash Out Projections include all Financial Aid Activity
(1,147,988.89)
123
Cabrillo College 2011-12 Projected Cash Balance
July
Beginning Cash Balance
September
October
November
December
January
February
March
April
May
June
14,130,344.13
Cashflow In:
Projected
11,012,682.83
Actual
10,634,144.83
TRAN Borrowing
Internal Borrowing
Variance (Actual-Projection)
(378,538.00)
Cashflow Out
Projected
Actual
TRAN Repayment
Variance (Actual-Projection)
August
(4,245,316.26)
(4,971,121.99)
(725,805.73)
4,021,675.58
4,689,518.49
7,470,620.61
9,007,012.56
6,933,540.25
7,681,942.77
6,631,568.60
7,759,057.17
667,842.91
1,536,391.95
748,402.52
1,127,488.57
14,430,424.10
14,033,653.35
2,579,451.90
4,636,521.78
3,091,119.22
(6,913,249.83)
(8,341,123.08)
(10,723,699.18)
15,315,736.62
11,611,135.32
3,978,555.36
13,535,339.53
4,100,072.67
2,926,938.60
(396,770.75)
(6,181,541.22)
(7,522,591.95)
(4,334,055.56)
(1,341,050.73)
(7,170,855.03)
(8,212,923.54)
(8,763,282.54)
(10,957,586.41)
(6,775,077.66)
(6,812,866.83)
(7,511,193.28)
(8,262,411.42)
(1,042,068.51)
(2,194,303.87)
(37,789.17)
(751,218.14)
Projected Ending Cash Balance
20,897,710.70
14,403,789.50
14,703,555.08
12,873,812.79
12,730,303.73
19,649,534.55
Actual Ending Cash Balance
19,793,366.97
12,626,237.95
13,420,326.97
10,144,683.33
11,090,873.67
16,862,115.60
(8,016,501.48) (6,632,899.75) (4,211,018.27)
9,497,393.40
6,964,566.31
5,680,486.63
124
125
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
February 6, 2012
FROM: PRESIDENT
SUBJECT:
ENCLOSURE(S)
Facilities Master Plan Project Status
REASON FOR BOARD CONSIDERATION
INFORMATION
ITEM NUMBER
Page 1 of 4
D.3
BACKGROUND:
Major Projects under Construction
(see next page)
Administrator Initiating Item:
Joe Nugent
Victoria Lewis
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
 Yes  No
 Yes  No
Final Disposition
126
PROGRESS REPORT
Note:
Project
Health and Wellness Center
and Sitework
Health and Wellness
Equipment
Building 300 Renovation
Building 300 Renovation
Equipment
Watsonville Green
Technology Center
Total Projects in Progress
Measure D funded projects are outline in the following schedules
There are references to other funding sources when the project has funding sources in addition to Measure D.
E
A
B
C
D
F
a-[d+e]
Planned
Completion
Date
Fall
2011
Spring
2012
Fall
2010
Spring
2012
Spring
2012
Funding Source
State Capital Outlay
Funds
Measure C
Measure D
Project Sub-total
State Capital Outlay
Funds
Measure D
Project Sub-total
Total Project
State Capital Outlay
Funds
Measure C
Measure D
Project Sub-total
State Capital Outlay
Funds
Measure D
Project Sub-total
Total Project
EDA Funds
Foundation
Measure D
Project Total
Totals
Approved
Paid to Date
Original Project
Change Orders Revised Budget
Budget
12/31/2011
Amount
Remaining
Encumbered
Balance to be
paid Contracts & Total Cost vs
C.O.
Revised Budget
10,490,000
0
10,490,000
10,490,000
0
0
121,741
15,067,134
25,678,875
0
1,078,021
1,078,021
121,741
15,067,134
25,678,875
121,741
14,962,533
25,574,274
0
83,940
83,940
0
20,661
20,661
1,185,000
0
1,185,000
770,667
62,001
352,332
1,105,493
2,290,493
27,969,368
0
0
1,078,021
1,105,493
2,290,493
27,969,368
1,076,344
1,847,011
27,421,285
3,652
65,653
149,593
25,497
377,829
398,490
1,051,000
0
1,051,000
1,047,739
0
3,261
33
1,166,000
2,217,033
0
131,186
131,186
33
1,166,000
2,217,033
33
1,120,718
2,168,491
0
24,768
24,768
0
20,514
23,775
931,000
0
931,000
349,342
527,514
54,144
931,000
1,862,000
4,079,033
3,365,000
100,000
7,500,000
10,965,000
0
0
131,186
0
0
-152,600
-152,600
931,000
1,862,000
4,079,033
3,365,000
100,000
7,500,000
10,965,000
305,911
655,253
2,823,744
3,223,515
0
6,673,478
9,896,993
350,672
878,186
902,954
141,485
0
340,494
481,979
274,417
328,561
352,336
0
100,000
486,028
586,028
43,013,402
1,056,607
43,013,402
40,142,021
1,534,526
1,336,854
127
Major Projects under Construction
Arts Education Classrooms Project
This project is in the final closeout process with DSA. One change order remains to be approved by DSA.
Staff will submit the complete closeout package to DSA for final certification upon receipt of final change
order.
Current Status Update:
Waiting on final change order approval to submit for final certification from DSA.
Health and Wellness Project
The Allied Health project consists of two buildings totaling 57,000 square feet, and is the new home for
programs such as Nursing, Radiology Technology, Medical Assisting, Dental Hygiene, Health and
Wellness, and the Stroke Center. RMW is the architect and Soltek Pacific is the contractor.
Construction began in May 2008 and the buildings are 100% complete. Staff is in the process of
closing out the project. All remaining issues have been resolved with the contractor.
Current Status Update:
The majority of the equipment for the building has been purchased and installed. There are
additional items to be purchased. The installation of carpet in rooms H.W. 2212 and H.W. 2214
are complete and is expected to accomplish final acoustical corrections. The construction
portion of the project is being closed out and unused funding is reverting back to the bond fund.
Building 300 Renovation
On February 1, 2010 the Governing Board approved an award of bid to Tombleson Construction of
Salinas in the amount of $1,560,136 to renovate the 300 building. 12,523 square feet was remodeled
and reconstructed to provide ten general purpose classrooms, two large assembly/classrooms and nine
BELA division offices in spring 2010. The renovation is substantially complete.
Current Status Update:
The building has been occupied beginning spring semester 2011. The project is being closed
out and unused funding is reverting back to the bond fund. DSA is currently processing requests
for project closeout they received in the month of February 2011. The District is awaiting final
closeout and certification from DSA. A majority of the equipment has been purchased and
installed, including furniture and classroom computers.
Watsonville Green Technology Center
The District and the City of Watsonville closed escrow on the purchase of the Watsonville Library on July
15, 2008. Since then, the college has demolished the building in order to construct a 14,000 square foot
Community Education Center. The District received a grant for $2.5 million from Economic
Development Agency for the project, and the grant was augmented by $865,000 to help fund an upgrade
to a Platinum Level LEED certified “green” building. The Division of State Architect (DSA) approved
the plans in June of 2010 and EDA approved the plans and specifications in July 2010. The project went
to bid in August 2010. In October, the Board approved Dilbeck and Sons as well as an augmentation to
the budget of $517,000. A deductive change order for the value engineering items discussed at the
128
October Board meeting was approved at the November Board Meeting. The District has received a
generous donation from the Ley Family of $100,000 for construction to add back some of the items that
were placed on hold.
Current Status Update:
The Contractor is working on the punch list developed by the design team. Buildings will be
substantially complete in January 2012. Data wiring and data connection to the existing campus
network is in progress, as well as the acquisition of furniture and equipment.
Awards of Informal Bids under the Uniform Construction Cost Accounting System (UCC):
By adopting the Uniform Public Construction Cost Accounting System, the Board authorized the
President or his/her designee to enter into agreements with low bidders using the informal bidding
process with the provision that the successful awards would be presented to the Board as an
information item. This system enables the District to 1) informally bid projects under $175,000 to prequalified contractors, 2) more efficiently and effectively manage small to medium sized projects, and 3)
contract with local contractors who are deemed “qualified” bidders.
800 Bldg. Moves Phase I:
The 800 building moves were initiated in December and are well underway. Administrative offices and
Student services (Fast track to Work and Student Job Placement) located in the 800 building are now
relocated to the SAC building. Contracts for construction services include Michael Wolcott Construction
in the amount of $29,274; Epico Systems Inc. in the amount of $13322; Carpet King in the amount of
$6,442.35. Other services include project management, furniture and equipment, as well as moving
services. The overall budget for this project is $248,283, Measure D funds.
129
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
February 6, 2012
SUBJECT:
ENCLOSURE(S)
Financial Reports
REASON FOR BOARD CONSIDERATION
ITEM NUMBER
INFORMATION
Page 1 of 22
D.4
BACKGROUND:
The following financial reports are presented for the information of the Governing Board:
Report
Period Ending
Trial Balance
12/31/11
Page
2
Year-to-Date Budget Reports
12/31/11
General Fund
Child Development Fund
Building Fund
Revenue Bond 1998 Construction Fund
Revenue Bond 2004 (Series A) Construction Fund
Revenue Bond 2004 (Series B) Construction Fund
Debt Service Fund
Retiree Benefit Fund
3-4
5-6
7
8
9
10
11
12
Clearing and Revolving
12/31/11
13
Bookstore
12/31/11
14-15
Cafeteria
12/31/11
16-17
Associated Students
12/31/11
18
Scholarships/Loans
12/31/11
19
Student Center Fee
12/31/11
20
Student Representation Fee
12/31/11
21
Trust and Agency
12/31/11
22
Administrator Initiating Item:
Roy Pirchio
Victoria Lewis
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
 Yes  No
 Yes  No
Final Disposition
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
February 6, 2012
SUBJECT:
Counseling Report
REASON FOR BOARD CONSIDERATION
ENCLOSURE(S)
ITEM NUMBER
INFORMATION
Page 1 of 3
D.5
BACKGROUND:
Counseling Services
General Counselors provide academic, transfer, career counseling, and assessment interpretation at both
Watsonville and Aptos campuses.
Disabled Students Programs and Services, EOP&S, CAP, MESA, and Fast Track to Work counseling
services are not part of this report, as these programs are categorically funded, and they serve specific student
populations and are reported on separately. However, students who are part of these programs, as well as
international students and Puente students (who receive some categorical funding), can and do meet with
general counselors on a regular basis, especially during the summer months and winter session.
All counselors provide transfer information, advising, and the development of education plans leading to
transfer and degree completion. The majority of transfer activity occurs during the fall semesters, including
essay and university application workshops. The Transfer Center laboratory instructional assistants (LIAs)
and counselors work closely with students and university representatives on transfer admission agreements
(TAGs, TAAs).
Counseling services are performed and supported by 14 full-time faculty counselors and four classified staff.
Due to split assignments, the allocation of time for these services is actually equal to 10.6 full-time
counselors. Split assignments include the Counseling Director, Career and Transfer Center Coordinator,
Puente Project Counselor/Coordinator, International Student Program Coordinator, and Athletics Counselor.
According to SARS (student scheduling software) data, in fall 2011 counselors met with 8,028 students.
Below is a breakdown by campus and appointment type:
Aptos
3,088 attended 30-minute appointments
3,429 dropped in (Express)
6,517 total
Watsonville
675 attended 30-minute appointments
836 dropped in (Express)
1,511 total
(continued on next page)
Administrator Initiating Item:
Margery Regalado Rodriguez
Dennis Bailey-Fougnier
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
 Yes  No
 Yes  No
Final Disposition
152
From August 2010 through July 2011, counselors met with 17,000 current or prospective students
(unduplicated) in over 19,000 visits per year. As of finals week, fall 2011, counseling appointments were
booked through January 20, 2012, more than a month in advance.
Online Advisor: In addition to in-person 30-minute appointments, daily 10-minute Express counseling, and
phone appointments, students continue to have access to counseling services through our Online Advisor
service. This highly successful program was the result of an intensive study of best practices throughout the
state and was implemented in 2002. When more comprehensive academic planning is needed, a counseling
appointment is advised. In the most recent survey of online advisees, the student response was
overwhelmingly positive. Half of those using the service are continuing students; the others are either new
or returning students. Nearly all indicated that the service made it easier to get started or to re-enter Cabrillo.
Reorganization/Structural Changes: Effective July 2011, Instructional Development dean Dr. Margery
Regalado Rodriguez moved to Student Services to head up a new division: Counseling and Educational
Support Services (C&ESS). Five programs/services joined the Counseling Department in the new division:
the Outreach Office, Matriculation Office, Assessment Services, Disabled Students Programs and Services
and Learning Skills. The transition has been very smooth. The joint efforts have brought positive changes:
An assessment of department needs, greater visibility of counseling services and transfer on campus,
advocacy in new arenas, and stronger cross-component collaboration. Being part of a larger division has
provided the counselors with a level of administrative support they have not previously had.
Specific Program Changes: The Honors Program has expanded into Counseling. Three general counselors
now provide counseling to new and continuing honors students, which allows the new Honors/Articulation
Director to focus on other critical services. This transition has been smooth and positive for students.
Veterans and Foster Youth are additional student populations the counselors are serving in a more focused
way. One counselor provides counseling and peer support supervision in the new Veterans Information
Center on campus. Another counselor is designated as the Foster Youth Liaison, and we expect this function
to evolve with the new Foster Youth Program being developed spring 2012.
Student Learning Outcomes (SLO): In Spring 2011, the Student Learning Outcome for Counseling
“Create a Plan to Facilitate Educational and Career Goals” was assessed. Students were asked to rate their
level of knowledge, both before and after the counseling session of the steps necessary to achieve their
academic goals. Questions were based on a 1 to 5 Likert scale with 1 being the lowest and 5 being the
highest amount of knowledge.
 For those students who had very little knowledge (1 and 2) of the steps needed to accomplish their
educational and career goals before their counseling appointment, 100% indicated that their
knowledge increased after their counseling appointment.
 Ninety-one (91)% of students with a self-identified level of knowledge of 3 increased to either 4 or 5.
 Forty (40)% of students with a self-identified level of 4 increased to a level 5.
Here are the results:
Starting knowledge
1
2
3
4
5
Ending knowledge (exclude no response)
1
3
4
33%
50%
26%
47%
2%
8%
52%
60%
60%
2
5
17%
26%
39%
40%
100%
153
All groups increased their knowledge of the next steps after meeting with a counselor. An additional
interesting finding was that 16.3% of the students changed or refined their goals after the counseling
appointment.
In spring 2012 another measure of this SLO will be assessed as part of the Counseling Program Review,
which is scheduled to be completed in June 2012.
Counseling and Guidance Courses: During the fall of 2011, all Counseling and Guidance (CG) courses
were reviewed for currency and course level Student Learning Outcomes. Some were inactivated, others
were updated and ideas for possible new courses are being identified now. Possibilities include a required
Student Success course for all incoming students. In 2010, all counselors were asked to teach a course in an
attempt to reach more students through a group setting. That is currently being revisited. Most counselors
teach at least one class per academic year.
New Directions: The timing of the statewide discussions around the Student Success Task Force
Recommendations (SSTF) paralleled conversations within the counseling department. The counseling
faculty has begun to identify and distinguish services that meet the different needs of students; those with
“high engagement” vs. “low engagement” needs. Identifying these different types of student need underlies
the knowledge that “one size does not fit all” and that services should be matched to students’ unique needs.
This knowledge will better direct students to educational resources (learning communities, student support
services, learning disability testing, etc.) This identification will also lead to referrals to specific support
services that will increase the students’ chances of success and program completion.
Not all students need to see a counselor as their first step; they can do much of the preliminary work online
through websites, online orientation, and basic Q & A services. Increasing the use of technology to move
students through the processes in a more efficient manner is one of the recommendations of the Student
Success Task Force. This results in students seeing a counselor when they are actually “ready” to see a
counselor, allowing the service to be more focused on next steps, major and career identification, education
planning, and follow up. The expertise of the counselor is utilized in more effective ways and limited
counseling resources are used more efficiently. Making an appointment, for example, to see a counselor, and
then waiting two weeks only to ask how to log on to Web Advisor is a poor use of time for both the student
and the counselor. (The ratio of students to counselors at Cabrillo is currently 1418:1; the statewide
Academic Senate recommends 900:1). Additionally, knowing that not all students can or will utilize
technology easily requires that we free up time and resources from those who are more “tech savvy” so we
can work with those who need more hands-on assistance.
The counseling department is also revising processes that will result in a triage system so students can
identify which services require the expertise of a counselor and at what point. Some student needs are better
served by the LIAs in the Transfer Center, the A&R staff, and online resources, for example. The
Counseling Department is exploring the use of additional Web Advisor modules that will permit students to
more interactively develop their course plans in preparation for their counseling appointment.
The Student Success Task Force recommendations have underscored the importance of matriculation
services (orientation, assessment, education planning). As the face of community college changes, the
counseling department is ready to make the necessary changes. With the competition for public education
growing, helping students focus and persist with the right services at the right time is a benefit for all.
3
154
155
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
February 6, 2012
SUBJECT:
International Student Delegations Program – Annual Report
2011-2012
ENCLOSURE(S)
Page 1 of 2
REASON FOR BOARD CONSIDERATION
INFORMATION
ITEM NUMBER
D.6
Background:
Cabrillo has now hosted five groups of students from Denmark for an intensive cultural experience. Our
most recent group came from two small colleges on Denmark's Jutland peninsula, Herningsholm and
Holstebro. The two colleges combined efforts in order to form a group, and won financial support from a
European Cultural organization that helped fund this enrichment program for their students.
After months of correspondence and joint planning, Herningsholm College sent a group of four professors to
Cabrillo in August 2011 to meet Cabrillo's International Program Coordinator and evaluate how well
Cabrillo and Santa Cruz County would meet the needs of their students. The professors toured the college,
met staff, and were taken to various local points of interest by the Program Coordinator and her Assistant.
Enthusiastically, the professors returned to Denmark to begin promoting the fall program.
The 15 Danish students were hosted in Santa Cruz families for their stay from November 6 through
December 3. Twice-a-week they attended an ESL class designed and taught by the program chair of
department and a cross-cultural communications class taught in the Communications Studies department.
The students were integrated into the regular credit course, providing rich opportunities for grounding the
theory for the Danish and Cabrillo students.
A section designed specifically for the Danes followed this class.
The academic instruction was supplemented with a variety of field trips. Students were enthusiastic in their
response to a day spent touring the Monterey Bay Aquarium and walking around Carmel, another day of a
walking tour of San Francisco and the Ropes Course provided by APEX Adventures in Scotts Valley. The
students also enjoyed the San Jose Tech Museum and a morning of volunteering at Second Harvest in
Watsonville.
The professors were delighted that we could provide their students the opportunity to volunteer, something
none of them had ever done before. Coming from a country where the government provides jobs, food, and
housing for everyone--they had never seen a charitable organization in action. We arranged for two different
volunteer activities, and this was a very impactful event.
(continued)
Administrator Initiating Item:
Rock Pfotenhauer, Dean, CEED
Renée M. Kilmer, Vice President, Instruction
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
 Yes  No
 Yes  No
Final Disposition
156
Another enrichment in this program was the active involvement of several of the families, who suggested and
organized additional activities for the students. One host mother noticed that we were having unusually warm
weather and suggested a beach campfire for two evenings later -- and almost all of the students and their host
families gathered at Twin Lakes State Beach to roast marshmallows around a fire and share their impressions
of California. Another family opened their home and invited all of the students to a pizza party one evening,
including several young people from their teenage children's circle of friends. The Danish students loved this
opportunity to meet other young people (many of them Cabrillo students) in an informal setting and share
ideas.
The impact on the Cabrillo community was very positive: six of the homestay families have a family member
who works at Cabrillo and half of the homestay families included a Cabrillo student, who became a good
friend to the Danish student and helped introduce them to many other young people. All of the receiving
families indicated that they had enjoyed the experience and would definitely consider receiving a Danish
student in the future.
The positive response to Cabrillo's Danish program was overwhelming among the Danish students. The
following comment was received at the program's finish from the Danish professor who organized the
program from their end:
"The main objective when we first started this program was to create an outstanding inter-cultural
experience for the students - and from the feed back I have just received we have been very successful
and for that I am deeply in your debt."
We began and ended the four-week program by gathering all of the students and their California families at
Cabrillo for a meal together. At the brunch on Saturday, December 3, each student received a certificate of
completion and a family member was called upon to say a few words about their student and the experience
of hosting them. Tears flowed freely from the Danish men and equally from Santa Cruz families who had
extended their family and felt that they were losing their new family member too soon.
We have received an inquiry from a Korean school that would like to organize a group to come to Cabrillo
for an ESL and intercultural experience, and the program Coordinator is exploring this possibility. These
students might well stay to continue their studies at Cabrillo. We are also working with IT to complete a
Cabrillo website to present our International Student Groups program. Herningsholm and Holstebro have
already indicated their intention of sending a group next fall.
2
157
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
February 6, 2012
SUBJECT:
Tutorials Department Update
REASON FOR BOARD CONSIDERATION
ENCLOSURE(S)
ITEM NUMBER
INFORMATION
Page 1 of 1
D.7
Background:
Three key events occurred in 2011 which had a significant impact on the Tutorial department. The college instituted a
re-organization, moving Tutorials from Instructional Development to the Library/LRC. In this re-organization,
Tutorials remained in Instruction and was assigned to the Director of the Library. The cumulative effect of several
years of reductions in categorical funding for the EOPS, DSPS, and CTE tutoring resulted in significantly diminished
funding sources for Tutorials. In addition, an earlier generous annual donation was recently converted to an
endowment, which provided a considerably smaller ongoing funding source for the department. The previous Tutorials
coordinator retired, and as a result of budget these cuts, one of the department’s two positions was eliminated. As of
January 2012, the Tutorials department is now a one-person department.
In spite of the cumulative impact of the above events, Tutorials has continued to serve a significant number of students,
albeit at a declined volume.
Year
2007/08
2008/09
2009/10
2010/11
2011/12 (est.)
Students tutored
1000
1053
1019
905
800
Hours tutored
6002
5000
4526
4020
3400
It should be noted that in this period of time, there has been a significant decrease in the college-wide student
headcount of approximately 17%, while the number of students tutored decreased by 20%. The new
Library/LRC Director and the Tutorial Coordinator are re-evaluating the processes and services, and will
work closely with other tutoring operations on campus to identify synergies and any potential service
consolidation. However, the department remains strongly student-success-oriented, and is committed to
continuing to effectively provide a vital instruction service for Cabrillo’s students.
The impact of Tutorials on student success can be seen in a 2006 report from PRO, which found that students
who enrolled in tutoring had an overall higher success rate than those who did not. Students who had
enrolled in pre-collegiate classes and engaged in tutoring had a success rate of 70.8% (vs. 59.4% for those
who did not), and those who enrolled in basic skills classes and received tutoring had a success rate of 92.7%
(vs. 81.8% for those who did not). PRO is working on updating this report to produce more focused data and
eliminate the self-selection bias inherent in a study of students who actively seek a service.
Administrator Initiating Item:
Georg Romero, Library/LRC Director
Renée M. Kilmer, Vice President, Instruction
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
x Yes  No
 Yes  No
Final Disposition
158
159
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
February 6, 2012
SUBJECT:
Fact Book Update and Q & A
REASON FOR BOARD CONSIDERATION
INFORMATION
ENCLOSURE(S)
ITEM NUMBER
Page 1 of 2
D.8
BACKGROUND:
The Cabrillo College Fact Book 2011 is a valuable source of information about the past, present
and future of student enrollment, student success, student placement, demographics, budget and
more. In addition to information about the organization of the college, the Fact Book 2011 contains
approximately 60 studies, touching on many different aspects of college administration and student
success. Each page is carefully compiled by the staff in the Planning and Research Office (PRO).
The information in the Fact Book 2011 is used by Board members, faculty, staff, students,
community members, grant writers, and administrators for planning, enrollment management, grant
development, program planning, outreach, and marketing. As a whole, the Fact Book 2011 creates
a profile of the college that is part of our public presence.
The Fact Book 2011 is published to the internet at: http://pro.cabrillo.edu/pro/factbook/index.html
We continue to make improvements and enhancements to the fact book each and every year. This
year, the 15th version of the fact book saw two significant changes:
1. We changed from reporting student transfer based on data from the California Postsecondary
Education Committee (CPEC) to reporting based on student tracker matches via the National
Student Clearinghouse. Transfers to out-of-state and in-state-private schools are now reported.
2. PRO staff rebuilt and updated the financial aid table in the Research Data Warehouse in 2011.
This allowed for a new look at how we present Financial Aid information in the Fact Book 2011.
Financial Aid pages were revamped visually and substantively, providing more detailed
information and more trend information.
The Fact Book 2011 would not have been possible without the assistance of staff from across the
campus who provided information for many of the reports. The PRO staff would like to extend our
most sincere thanks for the assistance with this important effort.
This information item is in response to a Board request for further opportunity to discuss the Fact
Book 2011 as presented originally in December 2011.
Administrator Initiating Item:
Brian King
Craig Hayward
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
 Yes  No
 Yes  No
Final Disposition
160
Selected Highlights from Fact Book 2011
 Enrollment projections show that fall headcount is expected to drop again in Fall 2012 by
2% to 3% and then remain fairly stable for the next several years.
 White students will no longer be the majority ethnic group at Cabrillo College in 2017 (49%
White and 36% Latino).
 Full time students have increased from 26% of the student body in Fall 2007 to 32% of the
student body in Fall 2010/Spring 2011.
 Since 2007, the population participation rate (PPR) has increased for 18 – 30 year olds
while it has declined for those 31 years of age or older.
 Two thirds of students received some form of financial aid in 2009-2010 vs. half of all
students in 2007-2008 (a 27% increase).
 Cabrillo students received a total of $20 million in financial aid in 2009-2010 vs. $12 million
in 2007-2008 (a 67% increase).
-2-
161
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
February 6, 2012
SUBJECT:
Cabrillo College Monthly Calendar
REASON FOR BOARD CONSIDERATION
INFORMATION
ENCLOSURE(S)
ITEM NUMBER
Page 1 of 2
D.9
BACKGROUND:
The following calendar presents information about selected events and significant dates for the month of
February. Dates given are accurate as of January 23, 2012.
Administrator Initiating Item:
Kristin Fabos, Director of Marketing
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
 Yes  No
 Yes  No
Final Disposition
162
February 2012
Marketing and Communications Department • 831.479.5744
Sunday
Monday
30
Flex Week Begins
Tuesday
31
Flex Day
Wednesday
Thursday
2
1
Flex Day
Flex Day
Breakfast with Brian,
8:30 AM, Schilling
Forum, 450
Friday
3
Flex Day
Division/Dept. Day
Men’s Basketball vs.
West Valley, 5:00 PM
Women’s Basketball
vs. Mission, 7:00 PM
5
DACLS presents
pianist Sara
Bruechner, 3:00 PM,
Crocker Theater
6
Spring Semester
Begins
Governing Board
Meeting, 5:00 PM,
Sesnon House
Exhibit: Glenn Carter:
Guest to the Mystery
opens, Cabrillo Gallery
12
Softball vs. West Hills,
12:00 PM
13
7
Baseball vs. Marin,
2:00 PM
Auditions for TA
production of The
Mikadø, 7:00 PM,
Crocker Theater
8
Auditions for TA
production of The
Mikadø, 7:00 PM,
Crocker Theater
9
Auditions for TA
production of The
Mikadø, 7:00 PM,
Crocker Theater
10
Holiday - Lincoln’s
Birthday Observed
Saturday
4
DACLS presents the
Kremlin Chamber
Orchestra, 8:00 PM,
Crocker Theater
Cash of College
Saturday, 9:00 AM 1:00 PM, Bldg. 1500
Additional Listing
11
Cabrillo Insider, 5:00 6:00 PM, KSCO 1080
Men’s & Women’s
Basketball vs.
DeAnza, 5:00 & 7:00
PM
Additional Listings
14
15
Women’s Basketball
vs. Ohlone, 5:00 PM
Men’s Basketball vs.
Gavilan, 7:00 PM
16
Softball vs. Los
Medanos, 1:00 PM
Reception: Glenn
Carter, 5:00 PM,
Cabrillo Gallery
17
18
Deadline for parking
permit reversal
Deadline to register
or drop a full-term
course and receive a
full refund
Baseball vs. Modesto,
Baseball vs. Modesto,
2:00 PM
1:00 PM
Additional Listing
19
20
Holiday - President’s
Day Observed
21
Census Day
22
23
Women’s Tennis vs.
Mission, 2:30 PM
Artist’s Talk: Glenn
Carter, 7:00 PM,
Cabrillo Gallery
26
27
Additional Listing
28
Baseball vs. MPC,
2:00 PM
24
Men’s & Women’s
Baseball vs. Delta,
Swimming & Diving
2:00 PM
vs. San Francisco and
Las Positas, 2:00 PM SC County School
Boards Joint
Softball vs. Hartnell,
Meeting w/Cabrillo,
3:00 PM
5:30 PM, Horticulture
Center
25
Annual Evening
of World Theatre
presents Abhinaya
Dance Company,
8:00 PM, Crocker
Theater
Additional Listings
29
Women’s Tennis vs.
Foothill, 2:30 PM
Additional Listings
Coming in Early March
Saturdays Cabrillo Insider, 5:00 - 6:00 PM, KSCO 1080
Mar 2
Men’s Tennis vs. Mission, 2:30 PM
Feb 10 Applications Due for Cabrillo Trustee Area V, 12:00 PM
Mar 3
Deadline to drop a full-term class without permanent “W”
Feb 21
Special Cabrillo Board Meeting (District V), 6:00 PM, Watsonvile Center
Mar 3 & 4 Auditions for Cabrillo Stage summer productions, 10:00 AM - 6:00 PM, Crocker Theater
Feb 25
Sofball vs. Napa, 12:00 PM
Mar 5
Feb 25
Baseball vs. Delta, 1:00 PM
Feb 25
Business of Art seminar, 10:00 AM, Vapa Forum 1001
Governing Board Meeting, 5:00 PM, Sesnon House