1
Cabrillo College Governing Board
Monday, February 7, 2011
Cabrillo College Sesnon House
6500 Soquel Drive
Aptos, California 95003
OPEN SESSION
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
1. Conference with Real Property Negotiators (Government Code
§54956.8)
Property: 251 Kings Village Road, Scotts Valley, California 95066
Agency Negotiator: Brian King
Negotiating Parties: Scotts Valley City Manager
Under Negotiation: Terms of Payment, Conditions
2. Conference with District Counsel regarding anticipated litigation
pursuant to Government Code §54956.9(b)(3)(E) (8 cases)
3. Conference with Labor Negotiator (Government Code §54957.6)
District’s Designated Representative: Victoria Lewis
Employee Organization: CCFT
4. Conference with Labor Negotiator (Government Code §54957.6)
District’s Designated Representative: Victoria Lewis
Employee Organization: CCEU
5. Conference with Labor Negotiator (Government Code §54957.6)
District’s Designated Representative: Brian King
Employee Organizations: Management and Confidential
Employees
OPEN SESSION

Call to Order and Roll Call

Report Out of Closed Session
6:00
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 10, 2011
2. Register of Warrants
It is recommended that the Governing Board ratify warrant
numbers 03266–04376 for the amount of $5,005,611.18.
5
11
6:01
2
February 7, 2011
A. Consent Items (continued)
3. Ratification: Construction Change Orders
PAGE
TIME
31
It is recommended that the Governing Board ratify the
construction change orders provided as an attachment.
4. Budget Transfers by Resolution
It is recommended that the Governing Board approve Resolution
Numbers 006-11 through 008-11 for Budget Transfers 18944
through 19013.
33
5. Resolution 004-11: To Waive Bond Requirement for 2011-12
Sabbatical Leaves
37
It is recommended that the Governing Board adopt Resolution
004-11 waiving the Bond requirement for sabbatical leaves.
6. Acceptance of Contract with California Community Colleges
Chancellor's Office
41
It is recommended that the Governing Board accept the $90,000
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.
7. Human Resources Management Report
43
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)
B. Special Presentation
Title V Update
6:05
C. Oral Reports
1. Board Members’ Reports
6:10
2. Student Trustee’s Report
6:13
3. Superintendent’s Report
6:15
4. CCFT
6:17
Comments on issues of interest to the Cabrillo College
Federation of Teachers.
5. Faculty Senate
6:19
Comments on issues of interest to the Faculty Senate.
6. CCEU
Comments on issues of interest to the Cabrillo Classified
Employees Union.
6:21
3
February 7, 2011
D. Action Items
1. 2011-12 through 2013-14 Budget Reduction Process
Commitments, Criteria and Strategies
45
6:23
It is recommended that the Governing Board approve the budget
reduction process, commitments, criteria and strategies for fiscal
years 2011-12 through 2013-14.
2. 2011-12 Non-Resident Tuition Fee
49
It is recommended that the Governing Board (1) establish the perunit non-resident tuition fee for 2011-12 at $177 based on District
Computed Cost, and (2) establish a capital outlay at $6 per unit
for students who are both residents and citizens of a foreign
country.
3. Resolution 005-11: 2010-11 Mid-Year Tax and Revenue
Anticipation Notes (TRANs)
53
It is recommended that the Governing Board adopt Resolution
005-11 delegating to the Vice President of Administrative
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. Redistricting of Cabrillo College Trustee Areas
85
It is recommended that a Governing Board subcommittee of three
members be appointed to prepare and present to the full Board a
proposed districting plan including proposed changes, if any, at
the April 11, 2011 Board meeting. It is further recommended that
the Superintendent/President and appropriate college staff
provide support for this effort.
5. Cabrillo College and CSU Monterey Bay Partnership
87
It is recommended that the Governing Board approve this
agreement with CSUMB and authorize the President to sign the
Memorandum of Understanding.
6. Cabrillo College and SJSU Global Studies Partnership
91
It is recommended that the Governing Board approve the
Partnership Agreement between Cabrillo College and SJSU
University. It is further recommended that the Vice President,
Instruction be authorized to make all necessary arrangements in
relation to this agreement.
7. Cabrillo College and CUNY Partnership
93
It is recommended that the Governing Board approve the Letter
of Agreement between Cabrillo College and City University of
New York. It is further recommended that the Vice President,
Instruction be authorized to make all necessary arrangements in
relation to this agreement.
E. Information Items
1. Sunshine CCEU Response to 2010-11 Negotiations Reopeners
CCEU’s response to the District’s Proposal for negotiations
reopeners is provided for Governing Board information.
97
6:35
4
February 7, 2011
E. Information Items (continued)
2. Sunshine 2011-12 CCEU Initial Proposal to District
99
CCEU’s initial proposal for 2011-12 negotiations is presented to
the Governing Board for information.
3. 2010-11 and 2011-12 Budget Planning Parameters Update
103
A Budget planning update is provided for Governing Board
information.
4. 2010-11 Cash Flow Update – Second Quarter
113
A cash flow update for the second quarter of the fiscal year is
presented to the Governing Board for information.
5. Facilities Master Plan Update
117
The monthly status report regarding current Facilities Master Plan
projects is provided to the Governing Board for information.
6. Financial Reports
121
The financial reports are presented to the Governing Board for
information.
7. Watsonville Redevelopment Update
143
An update on the addition of the Manabe-Ow property in
Watsonville to the Watsonville 2000 Redevelopment Agency
through State legislative action will be presented to the Governing
Board for information.
8. Cabrillo College Fact Book Presentation & Discussion
149
The Board will discuss the Cabrillo College Fact Book 2010 with
Interim Dean of I.T., Planning & Research, Craig Hayward.
9. STARS Title V Project Update
151
A STARS Title V Project Update is presented to the Governing
Board for information.
10. Board Policy Revisions: Student Services, First Reading
153
Board Policies are presented as a first reading for Governing
Board review and will return for action at the next Governing
Board meeting.
11. Cabrillo College Monthly Calendar
155
The Cabrillo College activities calendar for the month of February
is presented for Governing Board information.
12. 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
7:00
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 10, 2011
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 10,
2011. Chair Katy Stonebloom opened the meeting in Open Session at 5:00 pm. Roll
was taken; present were Chair Stonebloom, Trustees Rebecca Garcia, Gary Reece, Al
Smith, Rachael Spencer, Susan True, and Donna Ziel. Chair Stonebloom 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 5:01 pm. Closed Session was adjourned at 6:00 pm.
ROLL CALL
Chair Katy Stonebloom called the Open Session to order at 6:10 pm. Other Board
Trustees present were Trustees Rebecca Garcia, Gary Reece, Al Smith, Rachael
Spencer, Susan True, and Donna Ziel. Also present were members of the
community, college faculty, staff and students.
REPORT OUT OF CLOSED SESSION
Chair Stonebloom stated that there was nothing to report out of Closed Session.
PROCEDURAL ITEMS
It was moved and seconded (Garcia/True) to approve the consent agenda as
amended, including the minutes from the December 6, 2010 meeting
CALL TO ORDER
ROLL CALL
REPORT OUT OF
CLOSED SESSION
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, True, Ziel
NOES: None
ABSENT: None
ABSTAIN: None
INTRODUCTION OF NEWLY APPOINTED FACULTY AND STAFF
The Board recognized Dean Nancy Brown’s pending retirement and thanked her for
many years of service to Cabrillo College.
ORAL COMMUNICATIONS
None.
INTRODUCTION OF
NEWLY APPOINTED
FACULTY AND STAFF
ORAL
COMMUNICATIONS
SPECIAL PRESENTATION
Northern California Champions - Cabrillo Woman’s Volleyball Team. Athletic
Director Dale Murray introduced Cabrillo woman’s volleyball coach Gabby HoustonNeville, who was voted coast conference coach of the year and NorCal coach of the
year. Coach Houston-Neville then introduced the team. Team member Sierra Clark
spoke on behalf of the team.
1 of 6
SPECIAL
PRESENTATION
6
Minutes of Meeting
January 10, 2011
ORAL REPORTS
Board Trustees’ Reports
Trustee Garcia reported on Cabrillo’s Green Technology ribbon cutting ceremony and
thanked Foundation Director Silverstein and Marketing Director Fabos for putting
together the event.
ORAL REPORTS
BOARD TRUSTEE
REPORTS
Trustee Garcia also reported that she registered for a spring class and was pleased
with the electronic registration process. Trustee Garcia attempted to register for eight
different courses before she got into one because classes are so impacted.
Trustee Ziel attended the Stroke Center’s holiday party where she was provided an
opportunity to speak.
Chair Stonebloom attended the Transfer Center Advisory Committee meeting. Chair
Stonebloom reported hearing from representatives from UC and CSU and the
discussions about the impacts of budget cuts was very daunting. The entire system is
limiting enrollments. It is not uniform, each system and each college within the
system has autonomy about how they are limiting their enrollments. It was a
disheartening meeting. Chair Stonebloom did not hear any discussion about how to
mitigate the impacts.
Student Trustee’s Report
None.
Superintendent’s Report
President King reported that he is currently attending the Faculty Experiential
Learning Institute (FELI). In late January President King and Board members will
attend the annual Community College League of California conference and the
following week President King is attending a Lumina Foundation meeting.
CCFT
In the absence of CCFT President Harvell, John Govsky addressed the Board. He
invited all the Board members to the adjunct breakfast held during Flex week.
Faculty Senate
None.
CCEU
None.
STUDENT
TRUSTEE’S
REPORT
SUPERINTENDENT’S
REPORT
CCFT
FACULTY SENATE
CCEU
ACTION ITEMS
ACTION ITEMS
Fall Faculty Grant Awards
It was recommended that the Governing Board accept the donation of $19,065.22
from the Cabrillo College Foundation.
It was moved and seconded (True/Reece) to approve the Fall Faculty Grant Awards
The motion carried unanimously.
Daily Parking Fees
It is recommended that the Governing Board approve the proposed increase in daily
2 of 6
FALL FACULTY
GRANT AWARDS
7
Minutes of Meeting
January 10, 2011
parking permits from $2.00 to $4.00 a day effective January 15th, 2011.
DAILY PARKING FEES
It was moved and seconded (Garcia/Spencer) to approve the Daily Parking Fees.
The motion carried unanimously.
Award of Contract: Special Inspection Services for Green Technology Center
It was recommended that the Governing Board authorize the vice president of
administrative services to execute a contract with HP Inspections of San Jose in the
amount of $175,000 for Special Inspection Services for Green Technology Center
Project.
AWARD OF
CONTRACT: SPECIAL
INSPECTION
SERVICES FOR GREEN
TECHNOLOGY
CENTER
It was moved and seconded (Spencer/Reece) to approve the Award of Contract:
Special Inspection Services for Green Technology Center.
The motion carried unanimously.
Recommended Extension to the Contract of the Superintendent/President
Based on the evaluation of the Superintendent/President in closed session, it was
recommended that the Superintendent/President’s contract be extended one year
(until June 30, 2015).
RECOMMEND
EXTENSION TO THE
CONTRACT OF THE
SUPERINTENDENT/
PRESIDENT
It was moved and seconded (Garcia/Spencer) to approve the Extension to the
Contract of the Superintendent/President.
The motion carried unanimously.
Professional Development Leaves, 2011 - 2012
It was recommended that the Governing Board approve the content and authorize
the vice president of instruction, to make the final determination of the 2011-2012
faculty professional development leaves within the expenditure limit authorized
through CCFT negotiations.
PROFESSIONAL
DEVELOPMENT
LEAVES, 2011- 2012
Trustee Spencer was pleased to recognize that there is a direct correlation between
the approved leaves and student success.
It was moved and seconded (Spencer/Ziel) to approve the Professional
Development Leaves, 2011 - 2012.
The motion carried unanimously.
EduStream Contract
It was recommended that the Governing 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.
EDUSTREAM
CONTRACT
It was moved and seconded (Ziel/True) to approve the EduStream Contract.
The motion carried unanimously.
Academy for College Excellence Professional Services Contract
It was recommended that the Governing Board authorize the vice president of
administrative services to execute a professional service contract with Institute for
3 of 6
ACADEMY FOR
COLLEGE
EXCELLENCE
8
Minutes of Meeting
January 10, 2011
PROFESSIONAL
SERVICES CONTRACT
Evidence Based Change.
It was moved and seconded (Spencer/Reece) to approve the Academy for College
Excellence Professional Services Contract.
The motion carried unanimously.
PUBLIC HEARING
Public Hearing: Categorical Flexibility – no comments
ACTION ITEMS (continued)
Categorical Flexibility
6:50
CATEGORICAL
FLEXIBILITY
It was recommended that the Governing Board take testimony from the public, discuss
and approve the proposed transfer of funds.
It was moved and seconded (Garcia/Ziel) to approve Categorical Flexibility.
The motion carried unanimously.
INFORMATION ITEMS
Budget Update
The District submitted a budget update to the Governing Board.
BUDGET UPDATE
Vice President Lewis reported there are no mid-year cuts proposed for 2010-11.
Currently the rough estimated cut to Cabrillo is about four million dollars, but the cut
could be significantly higher if the tax extensions are not passed. Trustee Reece
asked about the cut to CalWorks and Vice President Lewis said it will affect Cabrillo,
as will the additional cash deferrals. Administrative services is reviewing borrowing
options.
Trustee Spencer said it is important that Financial Aid fix any systematic problems
prior to fall registration.
President King said the College Planning Council (CPC) will meet on January 26.
Facilities Master Plan Project Status
The facilities master plan project status was presented to the Governing Board for
information.
The Board noted the $100,000 donation from the Ley family for the Green
Technology Center construction. The donation has allowed items, previously
removed from the project due to cost constraints, to be added back into the project.
Financial Reports
The financial reports were presented to the Governing Board for information.
Spring 2011 Flex Week Activities
The Spring 2011 Flex Week activities were presented to the Governing Board for
information.
HSI Eligibility - Intent to Submit Application for Basic Title V Eligibility
4 of 6
REVIEW OF STUDENT
SUCCESS TOPICS FOR
FUTURE BOARD
MEETINGS
FINANCIAL REPORTS
SPRING 2011 FLEX
WEEK ACTIVITIES
HSI ELIGIBILITY –
9
Minutes of Meeting
January 10, 2011
The HSI Eligibility was presented to the Governing Board for information.
Information Technology Update
An update on college technology was provided for Governing Board information.
The Governing Board recognized Sue Haas’ pending retirement and thanked her for
many contributions to the college.
Trustee Spencer asked about the timing for the technology plan and Interim Dean
Hayward said the three year plan will be presented to the Board in June.
Cabrillo College Fact Book, 2010
The Cabrillo College Fact Book 2010 contains important resource and reference
information for planning, grant development, marketing, accreditation, and
outreach and was presented for Governing Board information.
INTENT TO SUBMIT
APPLICATION FOR
BASIC TITLE V
ELIGIBILITY
INFORMATION
TECHNOLOGY
UPDATE
CABRILLO COLLEGE
FACT BOOK, 2010
Trustee Garcia asked the for the following information:
1) College transfer data for white students compared to unrepresented students.
2) Overall retention rates by ethnicity.
3) A graph containing retention, certificates, degrees and transfers rates by
ethnicity.
Trustee True requested Interim Dean Hayward present an overview of trends at the
February Board meeting.
SB 1440 Update
The SB 1440 update was presented to the Governing Board for information.
Trustee Garcia asked how SB 1440 will be implemented. Vice President Kilmer
responded that Cabrillo must develop new associate degrees, “associate degrees for
transfer,” for implementation in the 2011-2012 academic year. California State
Universities are required to accept students who complete these degrees.
Cabrillo College Monthly Calendar
The Cabrillo College activities for the month of January were presented for
Governing Board information.
The Board requested to have the next Board meeting date included on future
agendas.
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.
Trustee Garcia asked staff to look into procedures for redistricting.
Chair Stonebloom would like the Board to be included in planning for the next
master plan on a future agenda.
The Board agreed to move the April board meeting to the Monday, April 11.
5 of 6
SB 1440 UPDATE
CABRILLO COLLEGE
MONTHLY CALENDAR
AGENDA FOR NEXT
BOARD MEETING
10
Minutes of Meeting
January 10, 2011
ADJOURN
The open session of the Cabrillo College Governing Board was adjourned at 7:32
p.m.
Respectfully submitted,
Secretary
6 of 6
ADJOURNMENT
11
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
February 7, 2011
SUBJECT:
Register of Warrants
REASON FOR BOARD CONSIDERATION
ENCLOSURE(S)
ITEM NUMBER
Page 1 of 20
A.2
ACTION
BACKGROUND:
The following warrants are submitted for Governing Board ratification:
REGISTER NO.
*
*
*
56
57
58
59
60
61
62
63
64
DATE
WARRANT NO.
12-15-10
12-16-10
12-20-10
12-20-10
12-20-10
12-22-10
01-05-11
01-06-11
01-13-11
03266-03454
03455-03644
03645-03827
03828-03865
03866-04006
04007-04007
04008-04081
04082-04223
04224-04376
TOTAL AMOUNT
344,801.25
1,545,957.14
174,019.58
211,905.96
982,489.58
473.53
20,240.25
650,673.00
1,075,050.89
$5,005,611.18
* NOTE: Student refund and financial-aid registers are available in the Business Office for review.
RECOMMENDATION:
It is recommended that the Governing Board ratify warrant numbers 03266–04376 for the amount of
$5,005,611.18.
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
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
February 7, 2011
SUBJECT:
Ratification: Construction Change Orders
REASON FOR BOARD CONSIDERATION
ACTION
ENCLOSURE(S)
Page 1 of 2
ITEM NUMBER
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:
None.
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
32
Ratification: Construction Change Orders: cont.
Project
Arts
Education
Classrooms
Contractor
C/O #
Building 300
$0.00 Total Change Order
Contractor
Tombleson
None this month
Change order
#
Allied Health
Sub-Contractor
Change order
#
Description
Amount
Description
None this month
$0.00 Total Change Order
Allied Health
Project
Green Tech Center
Amount
$0.00 Total Change Order
Building 300
Project
Description
None this month
Arts Education Classrooms
Project
Amount
Contractor
Dilbeck
Change order
#
Amount
Description
None this month
Green Technology Center
$0.00 Total Change Order
Note: These change orders are reflected in the results of the Facilities Master Plan monthly update under
separate cover.
Page 2 of 2
Cabrillo Community College District, 6500 Soquel Drive, Aptos, CA 95003
http://www.cabrillo.edu
33
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
February 7, 2011
SUBJECT:
Budget Transfers by Resolution
REASON FOR BOARD CONSIDERATION
ACTION
ENCLOSURE(S)
ITEM NUMBER
Page 1 of 4
A.4
BACKGROUND:
The following resolutions are submitted for Governing Board approval:
Resolution Number
006-11
General Fund transfers between expenditure classifications
Resolution Number
007-11
General Fund transfers to reserves
Resolution Number
008-11
General Fund decreases to revenues and expenses for the following:
AMATYC, CEED/DBA-FELI Training, CEED/City of Santa Cruz,
Matriculation, Matriculation Non-credit, MESA, PVUSD EOPS
Migrant Education Program
FISCAL IMPACT:
A decrease to expense budgets in the General Fund in the amount of $8,995.00.
RECOMMENDATION:
It is recommended that the Governing Board approve Resolution Numbers 006-11 through 008-11 for
Budget Transfers 18944 through 19013.
Administrator Initiating Item:
Graciano Mendoza
Victoria Lewis
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
 No
Final Disposition
34
GENERAL FUND
RESOLUTION NUMBER
006-11
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
INCREASE
$
19,728
73,955
2,330
51,574
140,826
25,052
7,643
TOTAL
$
160,554
$ 160,554
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 7, 2011.
DATE: ________________________
______________________________
Secretary
AYES:
NOES:
ABSTAIN:
ABSENT:
Page 2
35
GENERAL FUND
TRANSFER TO RESERVES
RESOLUTION NUMBER
007-11
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
INCREASE
1000
Certificated Salaries
$
$
2000
Classified Salaries
3000
Fringe Benefits
4000
Supplies
5000
Other Expenses
6000
Capital Outlay/Site
7000
Other Outgo
66,950
66,950
TOTAL
$
66,950
$
66,950
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 7, 2011.
DATE: ________________________
______________________________
Secretary
AYES:
NOES:
ABSTAIN:
ABSENT:
Page 3
36
GENERAL FUND AUGMENTATIONS
RESOLUTION NUMBER
008-11
WHEREAS, Cabrillo College will receive funds not included in the 2010-11
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
DECREASE
INCREASE
Income
8000
Program Funds
$
13,679
Total
$
13,679
Expenditures
1000
Certificated Salaries
2000
Classified Salaries
3000
Fringe Benefits
4000
Supplies
5000
Operating Expenses
6000
Capital Outlay/Site
7000
Other Outgo
2,595
10,909
7,945
365
6,400
3,455
Total
$
8,995
$
8,995
NOW, THEREFORE, BE IT HEREBY RESOLVED THAT the Cabrillo College
Governing Board authorizes that the 2010-11 budget of income and expenditures be
decreased by $8,995.
I certify that the foregoing resolution was adopted at the regular meeting of
the Cabrillo College Governing Board held on February 7, 2011.
DATE:_______________________
AYES:
NOES:
ABSTAIN:
ABSENT:
___________________________________
Secretary
Page 4
37
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
February 7, 2011
SUBJECT:
Resolution 004-11: To Waive Bond Requirement
for 2011-12 Sabbatical Leaves
REASON FOR BOARD CONSIDERATION
ACTION
ENCLOSURE(S)
Page 1 of 4
ITEM NUMBER
A.5
BACKGROUND:
The Education Code and the Agreement with CCFT require a faculty member who participates in the
sabbatical leave program to post a bond guaranteeing that they will return to service with the District for
twice the term of their leave. In lieu of a bond, the Board may approve the faculty member entering into an
agreement with the District assuring his or her return to service.
Resolution 004-11: Resolution to Waive Bond Requirement for Sabbaticals is attached along with Exhibit
A, 2011-12 Approved Sabbatical Leaves and Exhibit B, 2011-12 Sabbatical Leave Agreement.
FISCAL IMPACT:
None.
RECOMMENDATION:
It is recommended that the Governing Board adopt Resolution 004-11 waiving the Bond requirement for
sabbatical leaves.
Administrator Initiating Item:
Victoria Lewis
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
 Yes  No
 Yes  No
Final Disposition
38
CABRILLO COMMUNITY COLLEGE DISTRICT
GOVERNING BOARD
RESOLUTION 004-11
On the motion of Trustee
Duly seconded by Trustee
The following Resolution is adopted:
RESOLUTION TO WAIVE BOND REQUIREMENT FOR 2011-12 SABBATICAL LEAVES
WHEREAS, Pursuant Article 9 of the Agreement between Cabrillo Community College District and the
Cabrillo College Federation of Teachers (the Agreement) this Board has considered and approved sabbaticals
for the upcoming academic year for the faculty members listed on Exhibit A, which is attached hereto and
incorporated by this reference. Under the Education Code and Section 9 of the Agreement, faculty qualifying
for sabbaticals are required to post a bond guaranteeing that they will return to service with the District for
twice the term of their leaves. In lieu of posting a bond, the faculty member may, if the Board approves, enter
into an Agreement with the District assuring his or her return to service. The District now has before it
Professional Development/Sabbatical Leave Agreements from each of the faculty listed on Exhibit A. By this
Resolution, this Board finds and declares that the interests of the District will be protected by these written
Agreements assuring that these employees will return to the service of the District following their leaves.
THEREFORE, this Board hereby RESOLVES that it WAIVES the furnishing of a bond as required by
Education Code section 87770 and, in lieu thereof, approves that the interest of the District will be protected by
the written agreement submitted by the employee.
PASSED AND ADOP TED by the Board of Trustees of the Cabrillo Community College District, County of
Santa Cruz, State of California, on this 7th day of February 2011, by the following vote:
AYES:
NAYS:
ABSTAIN:
ABSENT:
Chairperson of the Board
ATTEST:
Secretary to the Board
39
Exhibit A
2011-12 Approved Sabbatical Leaves
Faculty
Member
Rebecca Arnesty
Megan Caspers
Geneffa Jonker
Denise Lim
Department
Dental Hygiene
Mathematics
English
Biology
Leave
SP Semester 2012
One Year
One Year
FA Semester 2011
40
Exhibit B
2011-12
Faculty Sabbatical Leave Agreement
Pursuant to Article 9 provisions for Sabbatical Leave between Cabrillo College and Cabrillo College
Federation of Teachers (CCFT) and Appendix T of such contract, the undersigned faculty member
qualifying for a sabbatical per the Education Code and Section 9 of the CCFT contract agreement,
hereby agrees to the following terms:
1.
It is understood that the obligations set forth in this Agreement are in lieu of the bond that is
otherwise required by Education Code Section 87770. The Governing Board must approve this
leave agreement and waive the requirement of the faculty member to furnish a bond.
2.
The faculty member’s District-approved sabbatical project proposal is attached hereto and
incorporated by reference.
3.
An abstract of the faculty member’s District-approved sabbatical project proposal is also
attached and incorporated by reference. The abstract contains the following information:
objective, activities, benefit to the District, and outcomes to be submitted to the Sabbatical
Leave Review Board (SLRB) with the report.
4.
Article 9, sections 9.1 through and including 9.4, is attached and incorporated by reference.
5.
Prior to commencement of the sabbatical leave, the Vice-President, Instruction may require
the faculty member to submit evidence of a physical examination from a licensed medical
practitioner indicating that the faculty member is capable of fulfilling the activities set forth
in this Agreement.
The parties certify that they have read this Agreement and all attachments, fully understanding their terms
including possible penalties for noncompliance, and agree to them voluntarily.
Renée M. Kilmer
For Cabrillo Community College District
Date: January 12, 2011____
Date:
Faculty Member’s signature
Print Name: _____________________________________
Please return this form to the Executive Assistant in the Office of Instruction by February 9, 2011.
41
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
February 7, 2011
SUBJECT:
Acceptance of Contract with California Community Colleges
Chancellor's Office
REASON FOR BOARD CONSIDERATION
ACTION
ITEM NUMBER
ENCLOSURE(S)
A.6
Page 1 of 1
Background:
Cabrillo’s Business and Entrepreneurship Center has been awarded a $90,000 augmentation from
the California Community Colleges Chancellor's Office to continue the Youth Entrepreneurship
Program (YEP) from Dec 1, 2010 through June 30, 2011 with possible extension. It is anticipated
that the outcomes of this grant will be realized through collaboration with Your Future Is Our
Business, ROP and the entrepreneurship classes of regional high schools and community
colleges.
Fiscal Impact:
An increase in the amount of $90,000 in revenue and expenditures.
Recommendation:
It is recommended that the Governing Board accept the $90,000 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, VP Instruction
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
 Yes  No
 Yes  No
Final Disposition
42
43
AGENDA ITEM BACKGROUND
TO:
GOVERNING BOARD
FROM:
PRESIDENT
DATE
February 7, 2011
SUBJECT:
Human Resources Management Report
REASON FOR BOARD CONSIDERATION
ENCLOSURE(S)
Page 1 of 2
ITEM NUMBER
ACTION
A.7
BACKGROUND:
Requesting ratification and/or approval of the following employment transactions:
FISCAL IMPACT: Within budgeted FTE’s.
RECOMMENDATION: It is recommended that the Governing Board ratify and/or approve the
transactions 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
44
Name
Department/Division
Position
Effective Date
Action
COLOMBANI, Lauren
Medical Assist./HAWK
LIA II
01/24/11
39-Month Reinstatement
MARSHALL, Poco
VAPA/Instruction
Performing Arts Complex
Assistant
02/01/11
Appointment
MORRIS COFFEY,
Gretchen
Human Resources/
Admin. Services
Confidential Personnel
Technician
04/01/11
Retirement
(DOH: 10/02/00)
RUIZ, Ana
A&R/Student Services
A&R Coordinator
12/30/10-01/31/11
Unpaid Leave of Absence
Note: Appointments are subject to successful completion of all employment regulatory compliance requirements
February 2011
Page 2 of 2
45
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
February 7, 2011
SUBJECT:
2011-12 through 2013-14 Budget Reduction Process
Commitments, Criteria and Strategies
REASON FOR BOARD CONSIDERATION
ACTION
ENCLOSURE(S)
Page 1 of 4
ITEM NUMBER
D.1
BACKGROUND:
The College is moving forward with budget planning for the 2011-12 fiscal year. In October of 2010, the
College Planning Council reviewed and revised the Budget Reduction Process Commitments, Criteria and
Strategies that will be used for budget planning for 2011-12 through 2013-14.
The attached document was reviewed by the Governing Board in November, 2010 as a part of the 2010-11
and 2011-12 Budget Planning Parameter Update.
FISCAL IMPACT:
None.
RECOMMENDATION:
It is recommended that the Governing Board approve the budget reduction process, commitments, criteria
and strategies for fiscal years 2011-12 through 2013-14.
Administrator Initiating Item:
Victoria Lewis
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
 Yes  No
 Yes  No
Final Disposition
46
CPC October 6, 2010
2011-12 through 2013-14
Budget Reduction Process Commitments, Criteria and Strategies
The economic crisis affecting the state budget is conservatively projected to last at least three years. At the
current time, our best efforts at projecting the fiscal impact on Cabrillo indicate that our state funding may
continue to decline.
The intent of the following process commitments, criteria and strategies is to enable Cabrillo to move from
being a college that is organized and staffed to operate on a $60 million budget to an organization and staffing
level that can deliver sustainable services to the community with a smaller budget.
I.
Process Commitments
A.
Link Budget planning, including program and service reductions and redesign efficiencies, to
long range planning, including the evaluation of the impact on student success.
B.
Utilize the appropriate forums to dialogue about the restructuring, consolidation, reductions,
and/or elimination of programs and services resulting from a reduction in resources.
C.
In the event that program and workforce reductions are necessary, the college will work to
preserve faculty, staff and management positions when possible and, if not possible, will assist
with employment-related transitional issues.
D.
The process will be characterized by openness, respect, sensitivity, and inclusiveness.
The College Master Plan provided the general framework for the following criteria:
II.
Criteria
A.
Compliance Requirements
1.
Maintain accreditation standards of the college and academic programs
2.
Maintain state and federal compliance requirements (CMP Goal B) e.g.:
 50% law
 Full-Time faculty obligation number (FON)
 Accessibility
B.
Preserve transfer, basic skills, and Career Technical Education so students are able to complete
their academic goals (CMP Goal B)
 Core courses toward an AA/AS
 General education breadth
 Labor market
C.
Minimize negative impact on student success (CMP Goals B & C) e.g.
 ARCC
D.
Optimize enrollment to achieve maximum state revenues.
47
E.
Minimize impact of non-base budget programs on General Fund (CMP Goal E)
Ancillary/Auxiliary operations
Categorical and grant-funded programs


III.
F.
Maximize efficiency of programs and services (CMP Goal A and Technology Plan)
 Are college programs and services efficient?
 WSCH/FTEF
 Non-redundant
G.
Minimize the negative impact on the operational needs of new and existing facilities (CMP Goal
D and Facilities Master Plan)
H.
Optimize effective utilization of college facilities (CMP Goal E)
I.
Maximize flexibility and opportunities for employees (Process Commitment C)
Strategies
A.
Design and implement Strategic Enrollment Management Plan and determine the FTES targets
for 2011-12 through 2013-14.
B.
Review all auxiliary and categorical program budgets with the appropriate budget administrator
to identify reductions.
C.
Evaluate college-wide services and systems; explore alternative models across components;
reduce costs, reduce duplication of function, and increase efficiencies throughout the college.
D.
Management of personnel budget.
Process Overview
Utilize salary savings for vacant positions to reduce the overall budget reduction target.
 Salary savings may be used to fund replacements for vacant positions based on demonstrated
need and the approval of the Vice President/President.
 Salary savings may not be used to cover other operating expenses or equipment purchases.
 Cabinet may approve the recruitment of vacant positions based on demonstrated need.
 Human Resources will provide a list of vacant positions and the status of recruitments on a
weekly basis.
 Administrative Services will provide a report of cumulative salary savings on a monthly
basis.
E.
Evaluate facility use for efficiency and effectiveness.
Watsonville
Scotts Valley
Energy Use Reduction



F.
Discuss compensation and benefit programs with all employee groups.
48
IV.
A.
B.
Historical Data Available
Internal Data
 Cost Center
Actual 06-07 Expenditures, number of full-time equivalent faculty, staff and administrators
(FTE) and FTES
Actual 07-08 Expenditures, FTE and FTES
Budget 08-09 Expenditures, FTE
 Staffing levels by department and bargaining unit from accreditation self-study
 FACT Books http://pro.cabrillo.edu/pro/factbook/index.html
 Space Planning project database
 Suggestion box for anonymous input
 Budget reduction website
 Accreditation Self-Study http://www.cabrillo.edu/services/pro/accred/index.html
 Program Planning Pages http://pro.cabrillo.edu/pro/factbook/programPlanningTables.html
External Data
 Fiscal Data Abstract 06-07
 Current Cost of Education 06-07
 WASC Accreditation Standards
http://www.cabrillo.edu/services/pro/accred/pdf/ACCJC%20NEW%20STANDARDS.pdf
49
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
February 7, 2011
SUBJECT:
2011-12 Non-Resident Tuition Fee
REASON FOR BOARD CONSIDERATION
ITEM NUMBER
ACTION
ENCLOSURE(S)
Page 1 of 3
D.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 2011-12.
Column#
1
2
Calculation
State-wide Average Cost: $176
District Computed Cost: $177
It is recommended that the District charge a per-unit cost of $177 for 2011-12. 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 $6. These fees must be expended for capital outlay purposes. The total per-unit
combined cost for the non-resident students would be $183.
The per-unit non-resident tuition fee for 2010-11 was $183, and the capital outlay fee for 2010-11 was
$4. The total combined per-unit cost for non-resident students in 2010-11 was $187.
The per-unit non-resident tuition fee for 2011-12 is decreased by $6. The recommended capital outlay fee
for 2011-12 is $2 more than the amount charged in 2010-11.
FISCAL IMPACT:
The District’s overcap situation caused the per unit cost of non-resident fees to decline.
RECOMMENDATION:
It is recommended that the Governing Board (1) establish the per-unit non-resident tuition fee for
2011-12 at $177 based on District Computed Cost, and (2) establish a capital outlay at $6 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
50
California Community Colleges
2011-12 NONRESIDENT FEES WORKSHEET
NONRESIDENT TUITION FEE CALCULATIONS
2011-12 NONRESIDENT TUITION FEE
(ECS 76140)
A.
(Col. 1)
Statewide
(Col. 2)
District
(Col. 3)
10% or More
Noncredit
FTES
B.
Expense of Education for Base Year (2009-10
CCFS 311, Expenditures by Activity Report, AC
0100-6700, Cols: 1-3)
Annual Attendance FTES (Recal 2009-10)
C.
Average Expense of Education per FTES (A ÷ B)
$ 5,201
D.
U.S. Consumer Price Index Factor (2 years)
x 1.053
E.
F.
Average Cost per FTES for Tuition Year (C x D)
Average Per Unit Nonresident Cost:
$ 5,477
$_____5,305 $___________
$ 183
$____176.83 $___________
$ 122
$__________ $___________
Semester-System (E ÷ 30 units)
OR
Quarter-System (E ÷ 45 units)
$ 6,572,810,163
$_65,729,333 $___________
1,263,680
__13,045.73 ____________
$_____5,038 $___________
x 1.053
x 1.053
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.
BASIS FOR ADOPTION: Options 1-7 (place an X in one box only).
X
1. Statewide average cost, per column 1. (ECS 76140(e)(1)(B))
2. District average cost, per column 2. (ECS 76140(e)(1)(A))
3. District average cost with 10% or more noncredit FTES, per column 3. (ECS 76140(e)(1)(A))
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. Highest Years Statewide average tuition. (ECS 76140(e)(1)(B))
7. No more than 12 Comparable States’ Average Tuition. (ECS 76140(e)(1)(E))
NONRESIDENT TUITION FEE CALCULATION DETAILS FOR OPTIONS 3, 6 AND 7
Option 3 comes from information provided in Column 3. Districts with ten percent or more noncredit
FTES are only able to utilize this option. If your district qualifies, then exclude noncredit FTES and
noncredit expense of education data when you fill out this column (ECS 76140(e)(1)(A)).
Option 6 ‘Highest Years Statewide Average Tuition’. The greater amount of statewide
nonresident tuition from 2006-07 through 2011-12, which is from 2007-08 at $190 per semester unit
or $126 per quarter unit (ECS 76140(e)(1)(B)).
Option 7 ‘No more than 12 Comparable States’ Average Tuition’. No greater than the 2009-10 average
nonresident tuition fee of public community colleges in a minimum of 12 states comparable to California in
cost of living. This average is calculated to be $280 per semester unit or $187 per quarter unit.
Requirement for Use of Options 6 and 7: It is the responsibility of the district to ensure and
document that the additional revenue generated by the increased nonresident tuition permitted under
options 6 and 7 shall be used to expand and enhance services to resident students only (ECS
76140(e)(2)).
51
NONRESIDENT CAPITAL OUTLAY FEE (ECS 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 2009-10 $__2,211,617________
b. FTES for 2009-10 ___13,045____________
c. Capital outlay expense per FTES (line a divided by line b) ___169__________
d. Capital Outlay Fee per unit:
1.
Per semester unit (line c divided by 30 units) ____$6_________
OR
2.
Per quarter unit (line c divided by 45 units) ________________
e. 2011-12 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 7,_2011______ meeting adopted a
nonresident tuition fee of $ ___177____ per semester unit or $ ___________ per quarter unit, and
a nonresident capital outlay fee of $ ___6____ per semester unit or $ _________ per quarter unit.
District
Contact Person
Cabrillo Community College District_______________________
________Graciano Mendoza, Director, Business Services_____________
Phone Number & email
(831) 479-6279
grmendoz@cabrillo.edu _______________
Upon adoption of the 2011-12 nonresident tuition and capital outlay fees by your district
governing board no later than February 1, 2011, please submit a completed copy of this
worksheet by February 15, 2011 to:
California Community Colleges Chancellor’s Office
Fiscal Services Unit
1102 Q Street, 4th Floor
Sacramento, CA 95811-6549
FAX (916) 323-3057
ATTN: Mike Yarber
52
53
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
SUBJECT:
February 7, 2011
Resolution 005-11: 2010-11 Mid-Year Tax and Revenue
Anticipation Notes (TRANs)
REASON FOR BOARD CONSIDERATION
ITEM NUMBER
ACTION
ENCLOSURE(S)
Page 1 of 31
D.3
BACKGROUND:
The attached resolution authorizes the issuance by the Cabrillo Community College District of 2010-11
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 $8 million, and maturity will be 12 months dated
March 1, 2011, and due February 29, 2012. 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 and corresponding documentation 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 005-11 delegating to the Vice President of
Administrative 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
54
CABRILLO COMMUNITY COLLEGE DISTRICT RESOLUTION
NUMBER 005-11
RESOLUTION AUTHORIZING AND APPROVING THE BORROWING
OF FUNDS FOR FISCAL YEAR 2010-2011; THE ISSUANCE AND SALE
OF A 2010-2011 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, 2011 (“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
55
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;
DOCSSF/79469v1/022000-0001
2
56
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 “2010-2011 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
2011 through June 2011 but due to the deferral of the State monies by the State will not be
received until after June 30, 2011 (“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 “2010-11 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 2010-2011 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 2010-2011 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 “2010-2011 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
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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).
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(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
23
77
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: $8,000,000
(c)
Authorized Representatives:
TITLE
(1) President
(2) Vice President, Administrative Services
(3) Director, Business Services
DOCSSF/79469v1/022000-0001
24
78
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 ___________, 2011,
by the following vote:
AYES:
NOES:
ABSENT:
By:
Attest:
Secretary, Board of Trustees
DOCSSF/79469v1/022000-0001
25
President, Board of Trustees
79
EXHIBIT A
FORM OF NOTE
CABRILLO COMMUNITY COLLEGE DISTRICT
2010-2011 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
80
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
81
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
82
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
83
[STATEMENT OF INSURANCE]*/
*/
To be used only if Credit Instrument is a policy of municipal bond insurance.
DOCSSF/79469v1/022000-0001
A-5
84
85
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
SUBJECT:
February 7, 2011
Redistricting of Cabrillo College Trustee Areas
REASON FOR BOARD CONSIDERATION
ACTION
ITEM NUMBER
ENCLOSURE(S)
Page 1 of 1
D.4
Background:
Last year the U.S. Department of Commerce’s Census Bureau conducted the decennial census of
the county’s population. In addition to congressional state and local legislative redistricting, certain
other local government entities must take action regarding redistricting. Because each of the
Cabrillo Community College District Trustees must live in a specific area and is elected only by
voters in that area, the California Education Code requires that the District must review Trustee
area boundaries and make changes as necessary.
California community college district governing boards are subject to the Voting Rights Act and the
one person, one vote principle of the Fourteenth Amendment of the U.S. Constitution. This
principle requires that trustee areas within the districts be equal in population as possible. The
Voting Rights Act also prohibits electoral systems that deny or abridge the voting rights of protected
racial and language minority groups.
Recommendation:
It is recommended that a Governing Board subcommittee of three members be appointed to
prepare and present to the full Board a proposed districting plan including proposed changes, if
any, at the April 11, 2011 Board meeting. It is further recommended that the
Superintendent/President and appropriate college staff provide support for this effort.
The Governing Board must complete the redistricting process by March 1, 2012. If the Board fails
to do so, the County Committee on School Reorganization is required to conduct the redistricting
by April 30, 2012.
Administrator Initiating Item:
Brian King, President
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
 Yes  No
 Yes  No
Final Disposition
86
87
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
February 7, 2011
SUBJECT:
Cabrillo College and CSU Monterey Bay Partnership
REASON FOR BOARD CONSIDERATION
ITEM NUMBER
ACTION
ENCLOSURE(S)
Page 1 of 4
D.5
Background:
Cabrillo College, Gavilan College, Hartnell College, and Monterey Peninsula College have
been working with California State University Monterey Bay to plan a seamless pathway
from Associate Degree Nursing to a Bachelor of Science degree in Nursing.
Included with this Board item is the Memorandum of Understanding between these colleges.
This initiative will greatly benefit our nursing students. As nursing becomes more and more
complex with technologic and health care advances, a Bachelor of Science degree in
Nursing becomes critical for health care professionals who choose to become Registered
Nurses. This partnership will allow students to have a dual enrollment and take classes at
CSUMB while on wait lists at the community colleges. In addition this partnership will
decrease the impact on scarce clinical resources because all clinical work will be done
through existing community college clinical sites.
Fiscal Impact:
There is no fiscal impact to Cabrillo College.
Recommendation:
It is recommended that the Board approve this agreement with CSUMB and authorize the
President to sign the Memorandum of Understanding.
Administrator Initiating Item:
Kathleen Welch, Dean, HAWK
Renée M. Kilmer, Vice President, Instruction
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
x Yes  No
x Yes  No
Final Disposition
88
MEMORANDUM OF UNDERSTANDING
BETWEEN
CABRILLO COLLEGE,
GAVILAN COLLEGE,
HARTNELL COLLEGE,
MONTEREY PENINSULA COLLEGE
AND
CALIFORNIA STATE UNIVERSITY MONTEREY BAY
Whereas, the above named higher education institutions in the region participated in a
planning grant to develop an innovative curricular model for a BS in Nursing and have been
invited to join the Monterey Bay Regional Nursing Collaborative; and
Whereas, these public institutions desire to provide BSN-prepared nurses to the region
and to maximize the educational and career opportunities of their students; and
Whereas, the collaborating community colleges provide general education, and prelicensure/clinical nursing courses for transfer to the CSU Monterey Bay BSN program; and
CSUMB provides the service learning courses, and upper division general education and nursing
courses for the BSN program.
Whereas, it is in the best interest of the students to complete their degrees in a timely
way, it is the intention of the Monterey Bay Regional Nursing Collaborative to provide required
courses as identified in the degree pathways of this collaborative curriculum and to reserve the
student spaces agreed upon below for the students participating in this collaborative BSN
program.
Therefore, the parties agree as follows:
1. This agreement applies only to the students who are seeking a Bachelor of Science in
Nursing (BSN) at an institution that is a collaborating partner to this agreement.
2. The CSUMB BSN program will have a Nursing Advisory Committee with membership
from each collaborating institution to this MOU. BSN admission criteria and their
weighting will be agreed upon by members of the CSUMB Nursing Advisory Committee.
Information will be shared among the members of the Nursing Advisory Committee that
will aid and benefit the operation of the collaborative BSN program.
3. Admission to the CSU Monterey Bay BSN shall be contingent upon the satisfaction of all
BSN admission requirements. Pre-requisite GE and pre-nursing courses will be identified
in all the program materials. All admissions decisions to CSU Monterey Bay shall be the
sole responsibility of CSU Monterey Bay.
4. CSUMB will admit and enroll one cohort annually in the fall. CSUMB will reserve an
equal number of spaces in each entering cohort for students who have been admitted to
the nursing program at each of the institutions in the Monterey Bay Regional Nursing
Collaborative and are within one year of matriculating as a nursing student.
Any participating institution with insufficient qualified students for spaces in an entering
cohort will yield those student spaces to qualified applicants from another institution.
5. Once the student has been admitted, CSU Monterey Bay will be responsible for the
student’s financial aid. The aid will be processed by CSU Monterey Bay even if classes are
taken through a regional community college.
2
89
6. A community college nursing student admitted to the BSN program may cross-enroll at
the community college and at CSU Monterey Bay. The student will receive community
college credit and may transfer units to CSUMB, assuming satisfactory completion.
7. Community Colleges participating with CSUMB in the Monterey Bay Regional Nursing
Collaborative will follow their own published admission process and offer spaces in
clinical courses to nursing students that have been admitted to their nursing program. To
assure that each student in the CSUMB nursing program has access to clinical nursing
education the Directors or faculty designees from each Community College and CSUM
will meet regularly to coordinate admissions according to the detailed document for each
college.
8. Only 70 lower division units may be counted in the total units credited to the BSN. This is
a Title 5 requirement of the baccalaureate degree. Program advisors and BSN program
materials provided by all the collaborating colleges will identify to all students and
prospective students the required lower and upper division courses for the BSN degree.
9. If any institution in the Monterey Bay Regional Nursing Collaborative is unable to
accommodate the agreements stated above, its participation in the Collaborative shall be
suspended. Other member colleges of the Collaborative will provide space, as they are
able, for students who have lost institutional support. Spaces for students will be allocated
only to active members of the Collaborative.
10. The duration of the agreement is for three years and then subject to review by the
collaborating parties.
11. The parties hereto shall first attempt to resolve all disputes arising from the provisions
contained in this MOU, informally and at the lowest applicable staff level. If the dispute
resolution is not accomplished, any party may call a meeting of the parties to formally
discuss and resolve disputes.
12. If any part of this MOU is found to be null and void, or is otherwise stricken, the rest of
this MOU shall remain in full force and effect, until renegotiated or rewritten.
13. This MOU constitutes the entire agreement between the members of the Collaborative.
This MOU may be modified, altered, revised, extended or renewed by mutual written
consent of all parties, by the issuance of a written amendment, signed and dated by all the
parties.
14. Any member of the Collaborative may terminate their participation in this MOU by giving
not less than ninety (90) calendar days' prior written notice of intent to terminate each of
the partners. In such case, termination by one or more of the parties to this MOU does not
alter the terms or obligations of the other parties to this MOU.
3
This MOU shall commence on March 1, 2011 or as designated and agreed upon by each
institution.
Dr. Brian King
President
Cabrillo Community College
Date
Dr. Dianne Harrison
President
California State University, Monterey Bay
Date
Dr. Steven Kinsella
President
Gavilan College
Date
Dr. Phoebe Helm
President
Hartnell College
Date
Dr. Douglas Garrison
President
Monterey Peninsula College
Date
4
90
91
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
February 7, 2011
FROM: PRESIDENT
SUBJECT:
Cabrillo College and SJSU Global Studies Partnership
REASON FOR BOARD CONSIDERATION
Action
ITEM NUMBER
ENCLOSURE(S)
Page 1 of 2
D.6
BACKGROUND:
Cabrillo College is entering an agreement with San Jose State University’s Global Studies
Department to offer a 2 + 2 program for Cabrillo students. SJSU offers an online degree program
in global studies, which provides foundational knowledge about the economic, political, social
and environmental forces that are transforming our world. This program offers courses online
24/7 from anywhere in the world. It will prepare students for careers in government, the nonprofit sector, pubic health, international business and law, and global journalism. Under this
agreement Cabrillo College students with 60 transferable units, including the CSU GE breadth,
are eligible for priority admission at junior level status.
FISCAL IMPACT:
None
RECOMMENDATION:
It is recommended that the Governing Board approve the Partnership Agreement between
Cabrillo College and SJSU University. It is further recommended that the Vice President,
Instruction be authorized to make all necessary arrangements in relation to this agreement.
Administrator Initiating Item:
Renée M. Kilmer, Vice President, Instruction
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
 Yes  No
 Yes  No
Final Disposition
92
University Partnership
Between
Cabrillo College
and
San Jose State University Global Studies Online Program
The San José State University Global Studies Online program is a degree-completion program. It is designed for
students who have completed their lower division coursework and who wish to complete the remaining, upper
division courses required for a Bachelor of Arts degree in Global Studies while taking advantage of the flexibility and
convenience of online learning.
To be admitted to the program, Cabrillo College students must be eligible for admission to San José State University
with Junior-level standing. Completion of a transferable degree including 39 units of General Education at Cabrillo
will fulfill all the lower division requirements for the Global Studies major. Although a foreign language is not
required for admission, in order to graduate, candidates for the Bachelor of Arts in Global Studies at San José State
University must demonstrate college-level, intermediate speaking, reading and writing ability in a language other
than English. Two years of college-level language study is usually sufficient to prepare students to satisfy this
requirement.
Cabrillo College and San Jose State University Global Studies Online Program are entering into a partnership that
will benefit Cabrillo College students.
According to this Agreement, Cabrillo College will provide a link to the Global Studies Online (GSO) program on
the Articulation Website and provide all online students with the following information about the program:
 Introduction of San José State University’s Global Studies Online program and contact information
 Ability to complete the last two years of the BA degree entirely online
 Access to high-quality courses accessible 24/7 from anywhere in the world
 Application dates and deadlines
 List SJSU Global Studies Program as a college partner on the Cabrillo College website
According to this Agreement, San Jose State University Global Studies Online program will:
 Allow Cabrillo College students to complete a Transfer Admission Agreement up to their last semester at
Cabrillo
 Provide priority registration and enrollment privileges for eligible Cabrillo College students
 List Cabrillo as a community college partner on SJSU’s website
The Global Studies Online program is modeled on the residential program offered by San José State University.
Successful completion of the program leads to a Bachelors of Arts degree in Global Studies granted by San José State
University. The program is being implemented in collaboration with San Diego State University and California State
University, Monterey Bay, and draws its faculty from all three campuses. The Global Studies Online program is
separately accredited by the Western Association of Schools and Colleges (WASC).
Organization:
Cabrillo College
__________________________________
Renée Kilmer
Date
Vice President Instruction
Cabrillo College
Organization: SJSU Global Studies Online Program
_____________________________________________
Mark Reade Mckenna
Date
Associate Director
Global Studies Int’l & Extended Studies
San Jose State University
sjsu_Cabrillo-globalstudies_Partnership_1-18-11
2
93
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
February 7, 2011
FROM: PRESIDENT
SUBJECT:
Cabrillo College and CUNY Partnership
REASON FOR BOARD CONSIDERATION
Action
ITEM NUMBER
ENCLOSURE(S)
Page 1 of 3
D.7
BACKGROUND:
Cabrillo College is entering an agreement with City University of New York (CUNY) to offer a
3 + 1 program for Cabrillo students through the School of Professional Studies. The CUNY
School of Professional Studies offers an online Bachelor of Science degree in Business and an
online Bachelor of Arts degree in Communication and Culture. Under this agreement, students
will complete general education and other recommended departmental courses at Cabrillo
College. These courses should correspond to those required for the Bachelors degree. After
admission, students may apply a minimum of thirty (30) and a maximum of ninety (90) semester
units of transferable credit toward the BA degree in Communication and Culture, or toward the
BS degree in Business. Cabrillo transfer students will pay New York in-state fees for all courses
offered through the CUNY School of Professional Studies upon transfer.
FISCAL IMPACT:
None
RECOMMENDATION:
It is recommended that the Governing Board approve the Letter of Agreement between Cabrillo
College and City University of New York. It is further recommended that the Vice President,
Instruction be authorized to make all necessary arrangements in relation to this agreement.
Administrator Initiating Item:
Renée M. Kilmer, Vice President, Instruction
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
 Yes  No
 Yes  No
Final Disposition
94
LETTER OF AGREEMENT
between
City University of New York
School of Professional Studies
and
Cabrillo College
This letter will serve to confirm the agreement between the City University of New York
School of Professional Studies and Cabrillo College.
Introduction
The CUNY School of Professional Studies, as part of the CUNY Graduate School and
University Center, is accredited by the Commission on Higher Education of the Middle
States Associations of Colleges and Schools (Code 00476500). The CUNY School of
Professional Studies offers an online Bachelor of Science degree in Business and an
online Bachelor of Arts degree in Communication and Culture.
With implementation of the agreement described below, students will complete a
Bachelors degree as transfer students, after having completed courses Cabrillo College.
Tuition for online courses offered through the CUNY School of Professional Studies is
uniform for all students, regardless of where they live. CUNY offers Cabrillo students
NY in-state tuition = $2,300 (as of Spring, 2010) per semester FT (12 units).
Under this agreement, students will complete general education and other recommended
departmental courses at Cabrillo College. These courses should correspond to those
required for the Bachelors degree. After admission, students may apply a minimum of 30
and a maximum of ninety (90) semester units of transferable credit toward the BA degree
in Communication and Culture, or toward the BS degree in Business.
Responsibilities
CUNY School of Professional Studies
- Provide Cabrillo College with specific information about course articulation
upon request
- Formally review the student’s application for admission to the online BA
program and provide admitted students with a Plan of Study that indicates
how they can complete the CUNY degree
- Recommend curricula at Cabrillo College that students should complete as
part of the 90 units of coursework that will be applied to the Bachelors degree
- Make available to the student the full range of CUNY course materials and
student services throughout the student’s academic career with CUNY
- Participate in recruiting sessions at Cabrillo College
95
-
Provide marketing materials for Cabrillo College.
Cabrillo College
- Encourage students to enroll in the equivalent of a third year of courses at
CUNY School of Professional Studies. This will be achieved by providing
information to Counselors who will pass it on to students.
- Distribute relevant marketing and informational material, identifying CUNY School
of Professional Studies as an educational partner
- Include information about the online degrees on the Articulation Web site.
- Increase student awareness of the online degrees and the opportunity to
complete at the CUNY School of Professional Studies
- Invite representatives to participate in “college days” and “college fairs”.
Term of the Agreement
This agreement shall be in effect for three years, at which time the parties have the option
to renew for another three years.
CUNY School
of Professional Studies
Cabrillo College
_____________________
Renee Kilmer
Vice President of Instruction
__________________
Tom Jennings,
Executive Director of Student
Enrollment/Senior Registrar
___________
Date
____________
Date
__________________
George Otte
Associate Dean of Academic
Affairs
____________
Date
Rev. 1-31-2011
96
97
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
February 7, 2011
SUBJECT:
Sunshine CCEU Response to
2010-11 Negotiated Agreement Reopeners
REASON FOR BOARD CONSIDERATION
INFORMATION
ENCLOSURE(S)
Page 1 of 2
ITEM NUMBER
E.1
BACKGROUND:
On January 24, 2011, the District received the attached notice from the Cabrillo Classified Employees
Union (CCEU). A public hearing will be held, as required by law, at the next Board meeting.
Administrator Initiating Item:
Victoria Lewis
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
 Yes  No
 Yes  No
Final Disposition
98
99
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
February 7, 2011
SUBJECT:
Sunshine CCEU’s Initial Proposal:
CCEU/District 2011-12 Negotiations
REASON FOR BOARD CONSIDERATION
INFORMATION
ENCLOSURE(S)
Page 1 of 3
ITEM NUMBER
E.2
BACKGROUND:
On January 24, 2011 the District received the attached notice from the Cabrillo Classified Employees
Union (CCEU). A public hearing will be held, as required by law, at the next Board meeting.
The following articles will be reviewed
Article 4
Union Security and Union Rights
Section 4.11 Negotiation Committee
Article 6
Evaluation Procedure
Section 6.6
Grievance of Procedure
Article 8
Compensation
Article 10
Classification and Reclassification of Positions
Article 11
Health and Welfare Benefits
Article 13
Vacation Plan
Article 14
Leaves of Absences: Paid
Article 16
Negotiated Layoff and Reemployment
Article 17
Grievance Procedure
Section 17.1 Grievance Procedure
Article 24
Duration
Administrator Initiating Item:
Victoria Lewis
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
 Yes  No
 Yes  No
Final Disposition
100
101
District’s Initial Proposal for 2011-12 Negotiations:
 Promote and maintain collegial employer-employee relationships
 Base decisions regarding negotiations proposals upon fair standards and objective data and
criteria
 Effectively manage the resources of the college during these times of fiscal uncertainty for
community colleges, including potential declining enrollment for Cabrillo
 Develop a total and sustainable compensation package given reduced funding
 Open negotiations on the following:
Article 7
Hours and Overtime
All articles
Article 8
Compensation
Salary schedule
Step increases
Longevity
Professional growth program (Appendix C)
Article 10
Classification and Reclassification of Positions
Classification study/salary review
Article 11
Health and Welfare Benefits
District/employee contribution to stipend
Medical plans
Retiree medical coverage
District paid employee PERS contribution
Staff development
Article 16
Negotiated Layoff and Reemployment
Article 24
Duration
Length of Agreement

Complete contract negotiations in a timely and efficient manner.
102
103
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
February 7, 2011
SUBJECT:
2010-11 and 2011-12 Budget Planning Parameters Update
REASON FOR BOARD CONSIDERATION
ENCLOSURE(S)
Page 1 of 10
ITEM NUMBER
E.3
INFORMATION
BACKGROUND:
The Governing Board received a budget update on November 1, 2010 that included budget planning
assumptions based on the 2010-11 state budget enacted on October 8, 2010. The college developed
planning assumptions in November that included mid-year reductions for 2010-11 and no further
revenue reductions in 2011-12.
The new governor’s January budget was released on January 10, 2011. The budget proposal includes
the balance of the 2010-11 fiscal year and 2011-12. The two-year budget shortfall is projected at $25.4
billion; $8.2 billion for 2010-11 and $17.2 billion for 2011-12. The shortfall could increase by another
$1.2 billion if a sale of state-owned real estate is abandoned. 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 $12 billion in revenue extensions during a June, 2011 election. If tax extensions
don’t make it on the June ballot or fail, the reductions listed below will increase.
Highlights of the governor’s budget include:
 $12.5 billion in spending reductions
 $12 billion in revenue extensions
 $1.9 billion in other solutions
 Establishment of a $1 billion reserve.
Spending reductions for community colleges include:
 No 2010-11 mid-year cuts
 $400 million cut to community colleges; approximately $4 million for Cabrillo
 Student fee increase of $10 per credit unit bringing enrollment fees to $36 per credit unit
 $110 million increase in enrollment fee revenue generated by the $10 fee increase would be used
to backfill apportionment reductions; approximately $1.1 million for Cabrillo
 An additional $129 million inter-year funding deferral bringing inter-year deferrals to $961
million; approximately $9.6 million for Cabrillo.
 No further reductions to categorical programs
 Categorical flexibility provisions adopted as part of the 2009-10 state budget would be extended
for two additional years, through 2014-15.
 Maintains full funding for the Cal Grant program
Administrator Initiating Item:
Victoria Lewis
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
 Yes  No
 Yes  No
Final Disposition
104
The 2011-12 budget cycle will mark the fifth year that the college has reduced the base operating
budget. Ongoing reductions to date total $5.6 million or approximately 10% of the budget.
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 over the
winter break.
The college’s budget planning information has been updated to reflect information contained in the
governor’s January proposal.
The following attachments were reviewed by the college planning council on January 26, 2011 and are
included for the Governing Board’s information:





2010-11 Projected Year End Fund Balance
Updated 2010-11 and 2011-12 Base Budget Planning Assumptions
An updated estimate of Cabrillo Operating Reserves—including the projected ending base
budget balance for 2010-11 and 2011-12.
Updated Base Budget Planning Parameters for 2010-11 through 2013-14
Updated Budget Development Timeline
The college has developed a best, mid-range and worst case scenario for the 2011-12 budget cycle. The
California Community College League has developed three budget scenarios for the college. The
college’s planning documents mirror the League’s planning information (see attachment on page 111).
The college has significant operating reserves that will help provide planning time for the college to
make the next round of significant budget reductions. There are concerns about the reduction of funded
enrollment and the subsequent reduction of courses offered at the college. Fiscal stability and student
success are of the utmost importance to all constituents of the college community.
The Governing Board will provide clear direction on the total amount of reserves that will be used to
bridge the 2011-12 budget shortfall. The Governing Board will also identify other uses of the operating
reserves.
The college began formulating budget reduction plans in the fall of 2010. The College Planning Council
and the Governing Board agreed to hold off on releasing reduction plans until the governor’s January
budget was released. Now that the governor’s budget has been released, the college will develop
reduction plans for the best, mid-range and worst case scenarios.
Budget Town Hall meetings will be held on campus on Friday, February 4. The Governing Board has
tentatively planned a Board Budget Study Session on February 14.
Budget planning documents will go back to the Governing Board at the March meeting for action.
Staff/service reductions not requiring a March 15 notice may occur at a later date.
CABRILLO COLLEGE
GENERAL FUND
FY 2010-11 PROJECTED YEAR END FUND BALANCE
CPC Jan. 26, 2011
105
I. BASE BUDGET 2010-11
PROJECTED CHANGE TO FUND BALANCE
Revenue
Expenses
Projected F11 Increase/(Decrease) to Fund Balance
FY 2010-11
Final Budget
59,783,172
61,668,990
(1,885,818)
Projected Year End
Actual
61,714,000
58,918,000
2,796,000
II. BASE BUDGET 2010-11
ANALYSIS OF PROJECTED YEAR END FUND BALANCE
Projected CarryOver
Allocated Increase to Fund Balance
Supply Accounts
CCFT Negotiated Faculty Conf Accts
Criminal Justice In-Service Agency Funds
SIE Equipment Funds
Other Special Requests Authorized by Each Component
213,000
27,000
290,000
576,000
690,000
Total Allocated Increase to Fund Balance
1,796,000
Total Unallocated Increase to Fund Balance
1,000,000
III. GENERAL FUND BALANCE
GENERAL FUND PROJECTED ENDING FUND BALANCE
Fund
11
12
13
14
15
17
18
19
Genl Unrestricted
Genl Restricted
District Match
Carry-Over
Community Ed
One-Time
Backfill
Categorical Charge
Total
Beginning
Fund Balance
3,209,000
1,119,666
641,425
3,599,048
451,114
5,992,792
15,013,045
Projected
Revenue
61,714,172
11,579,134
323,141
970,786
7,076
-
Projected
Expense
58,918,000
11,974,404
641,425
801,779
774,888
326,172
-
Net
Change
2,796,172
(395,270)
(641,425)
(478,638)
195,898
(319,096)
Re-Classification
Change to Fund Balance
(2,796,000)
1,796,000
1,000,000
(0)
Projected
Ending Fund Balance
3,209,000
724,000
4,916,000
647,000
6,700,000
16,196,000
106
CPC January 26, 2011
I. 2011 Base Budget Planning Assumptions
2010-11 Final Budget Structural Deficit
Range
Worst
Case
MidRange
Best
Case
(1,886,000)
(1,886,000)
(1,886,000)
1,300,000
1,300,000
1,300,000
216,000
2010-11 Revenue Adjustments- January State Budget
A. Reverse 66.4% of the 2009-10 FTES Reduction (formerly classed
as 2.21%growth)
B. Remove Negative COLA
216,000
216,000
C. Deficit Factor State Property Tax Shortfall@ $15 million
(300,000)
(150,000)
0
D. Adjust General Apportionment Shortfall
465,000
465,000
465,000
0
100,000
100,000
(8,997,000)
(6,184,000)
(3,990,000)
1,097,000
1,097,000
1,097,000
?
?
?
?
?
?
(8,105,000)
(5,042,000)
(2,698,000)
Full-time Faculty Obligation -Fall 2011 (205.6) (6 budgeted/unfilled funded)
0
(270,000)
(360,000)
(Faculty step 5/5, with benefits $90,000)-reduce funded 0, 3, 4
Adjunct Replacement Units- 30 units per FT position @ $1750 per unit
0
0
(3)
157,500
(4)
210,000
Classified positions
0
0
0
0
0
0
66,000
66,000
66,000
E. Part-time Faculty Compensation
2011-12 Revenue Assumptions
A. General Apportionment Red.- $8.99 mil, $6.184 mil, $3.99 mil
B. Increase in Student Fees $110 mil.-to offset apportionment
reduction
C. Deficit Factor Student Fee Revenue Shortfall
Other
TOTAL Revenue Adjustment
2011-12
Management positions
Benefits
Increase in Transfer to Retiree Benefit Fund
Increase in Transfer for future retiree liability (new employees,etc.)
?
?
?
935,000
825,000
715,000
PERS employer rate increase for 2011-12 (rates continue to
increase in subsequent years - 3.24%).
STRS rate increase
Increase in Worker's Comp., Gen. Liability,
17%
400,000
3.24%
0
85,000
15%
400,000
3.24%
0
80,000
13%
400,000
3.24%
0
75,000
Step and Column Increases (includes longevity, shift diff.)
395,000
395,000
395,000
2011-12 Medical benefit increase
Labor Agreements
?
?
?
New Facilities Supplies & Operating Staff
0
0
0
(100,000)
(100,000)
(100,000)
District Contribution- Bus Pass Program
Operating Costs: Supply budget increases for COLA
0
0
0
53 and 54 object classifications
0.00%
0.00%
0.00%
Operating Costs:
Other net operating increases
200,000
150,000
100,000
Total Expense Adjustments
Projected 2011-12 Structural Balance (Deficit)
1,981,000
1,703,500
1,501,000
(10,086,000)
(6,745,500)
(4,199,000)
Bridge Fund Reserves
4,000,000
4,000,000
4,000,000
Net Reduction Target for 2011-12
(6,086,000)
(2,745,500)
(199,000)
CPC January, 2011
107
Cabrillo Operating Reserves
Mid Year- Bridge Fund Reserves Final Budget
(see page 21 of the 2010-11 Final Budget)
4,385,818
One-Time Available Funds (unallocated one-time)
414,000
Other One-time funds (state mandates, etc)
238,000
2010-11 Projected Base Budget Unallocated Ending Balance
1,000,000
Projected Balance as of 6/30/11
6,037,818
Increase FTES Reserve in 2011-12 (see below)
(500,000)
2011-12 Projected Base Budget Unallocated Ending Balance
1,000,000
Subtotal*
*Allocation of reserves for critical needs, bridge funds for 2011-12
FTES Reserve
FTES Reserve as of 6/30/10
FTES Reduction expected in 2011-12
Use FTES Reserve to Bridge ($500,000 = 285 Tus/FTES)
Increase FTES reserve to bridge FTES funding reductions
Total available for 2011-12 and 2012-13
* Does not include 5% General Reserve
$6,537,818
?
500,000
500,000
$1,000,000
Budget Planning
Governor's January Budget
CPC January 26, 2011
Difference between ongoing Revenues &
Expenses (Structural Deficit)
Increase in State Revenue Anticipated
Property Tax Shortfall
1/2 of 2.21% Growth in Governor's Budget
Negative .39% COLA Restored
General Apportionment adjustmnet
Part-time faculty compensation
Gen. Apportionment reduction- $8.99 mil, $6.184
mil, 3.99 mil
Increase in Student Fees $110 mil to offset
apportionment reduction
Net change in revenue
108
2010-11 through 2013-14
Base Budget
Planning Parameters
2010-11
Budget Update
2011-12 Preliminary Budget
Mid-Range Scenario
2012-13
Projected
2013-14
Projected
(1,886,000)
45,000
(6,745,500)
(8,790,500)
0
0
(150,000)
(425,000)
(112,500)
(450,000)
(150,000)
1,300,000
216,000
465,000
100,000
(6,184,000)
1,931,000
Net Increases in Ongoing Expenses
Full-time Faculty Position changes (-3, +4, +3) (net of adjunct backfill)
Step, Column, Longevity Increases, etc.
Classified Positions
Medical Plan Rate Increase--15%
Management Positions
Retiree Benefit Increase
PERS Rate Increase
STRS Rate Increas
Worker's Comp, Unemployment Insurance
New Facilities Supplies & Operating, Staff
Utilities
Net Operating Increases
District Contribution- Bus Pass Program
Retiree Benefits- New Employees
Labor agreements
Total Expenditure Increases
Budget Reductions
Ongoing Shortfall*
Bridge Fund Reserve
Deficit net of One-time funds
*Estimates will change as more information becomes available
45,000
1,097,000
(5,087,000)
112,500
(395,000)
0
(825,000)
0
(66,000)
(400,000)
0
(80,000)
0
0
(150,000)
100,000
?
?
(1,703,500)
(725,000)
?
(50,000)
(395,000)
?
?
?
(100,000)
(200,000)
(750,000)
?
(100,000)
(175,000)
?
?
?
(100,000)
(225,000)
?
?
(2,045,000)
?
?
(1,912,500)
?
?
?
(6,745,500)
(8,790,500)
(10,703,000)
CABRILLO COLLEGE
Budget Development Timeline Draft
FY 2011-12
Revised Jan 24, 2011
September 7-8, 2010
September 13, 2010
September 14-15, 2010
September 15-16, 2010
October 4, 2010
October 5-6, 2010
November 1, 2010
November 2-3, 2010
November 15, 2010
November 17, 2010
December 7-8, 2010
ADMINISTRATIVE COUNCIL/MANAGER'S MEETING/
CPC MEETING
- 2010-11 Final Budget
- Budget Planning Update For 2011-2014
BOARD MEETING
Action Items:
- 2010-11 Final Budget
Information Items:
- Budget Presenation on FY 2010-11 Final Budget
- Budget Planning Update for 2011-2014
- Budget Planning Parameters
ADMINISTRATIVE COUNCIL/MANAGER'S MEETING/CPC MEETING
HEALTH BENEFIT FORUMS
BOARD MEETING
Information Items:
- 2010-11 & 2011-12 Budget Update
ADMINISTRATIVE COUNCIL/MANAGER'S MEETING/CPC MEETINGS
Information Items:
- Budget Reduction Goals (Base, Categorical Budgets & Other funds)
- Budget Reduction Process Commitments, Criteria and Strategies
- Budget Development Timeline
- Budget Reduction Timeline (Base, Categorical Budgets & Other funds)
- FTES Projections for FY 2010-11
BOARD MEETING
Information Items:
- Budget Reduction Goals
- Budget Reduction Process Commitments,
Criteria and Strategies
- Budget Development Timeline
- Budget Reduction Timeline (Base, Categorical Budgets & Other funds)
ADMINISTRATIVE COUNCIL/MANAGER'S MEETING/
CPC MEETING
- Review Budget Reduction Recommendations (Base, Categorical Budgets & Other funds)
BOARD BUDGET STUDY SESSION
ADMINISTRATIVE COUNCIL/MANAGER'S MEETING/
CPC MEETING
- Review Budget Reduction Recommendations (Base, Categorical Budgets & Other funds)
- Budget Town Hall Meeting
ADMINISTRATIVE COUNCIL/MANAGER'S MEETING/
CPC MEETING
109
CABRILLO COLLEGE
Budget Development Timeline Draft
FY 2011-12
Revised Jan 24, 2011
January 10, 2011
January, 2011
February 4, 2011
February 7, 2011
February 14, 2011
February/March, 2011
March 7, 2011
April, 2011
April 11, 2011
May 2, 2011
June 13, 2011
2011-12 GOVERNOR'S STATE BUDGET
STATE BUDGET WORKSHOP
- Budget Town Hall Meetings (10:30-12:00; 2:00-3:30)
BOARD MEETING
Action Items:
- Budget Reduction Process Commitments,
Criteria and Strategies
Information Items:
- Budget Development Timeline
- FY 2010-11 Mid Year Report (Projected Ending Balance)
- FY 2010-11 and FY 2011-12 Budget Update
- Update Budget Parameters FY 2010-11 and FY 2011-12
- Governing Board provides direction on the use of one-time operating reserves
Tentative- BOARD BUDGET STUDY SESSION (4:00-6:00)
- First Principal Apportionment 2010-11
- Develop 2011-12 Budget Reduction plans- all funds
- Negotiations- All Groups
BOARD MEETING
- Reduction or Discontinuance of Services
- Additional staff/service reductions not requiring a March 15 notice may occur at a later date
Action Items:
- Budget Development Timeline
- FY 2010-11 Mid Year Report (Projected Ending Balance)
- FY 2010-11 and FY 2011-12 Budget Update
- Update Budget Parameters FY 2010-11 and FY 2011-12
Continue to Evaluate/Revise Planning Parameters
BOARD MEETING
Information Items:
- Budget Reduction Recommendations (Base, Categorical Budgets & Other funds)
FY 2011-12
May Revise
BOARD MEETING
Action Items:
- Final Notices to Faculty- Reduction or Discontinuance of Services, update on other personnel
reductions
- Budget Reduction Recommendations (Base, Categorical Budgets & Other funds)
FY 2011-12
BOARD MEETING
Action Items:
- 2011-12 Preliminary Budget
110
111
111
112
112
113
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
February 7, 2011
SUBJECT:
2010-11 Cash Flow Update – Second Quarter
REASON FOR BOARD CONSIDERATION
ENCLOSURE(S)
ITEM NUMBER
INFORMATION
Page 1 of 3
E.4
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 2010-11 Cashflow Statement
October
Projected
Actual
114
November
Actual minus
Projection
Projected
Actual
December
Actual minus
Projection
Projected
Actual
Actual minus
Projection
Cashflow In
14,696,814.00
4,373,351.15
14,696,814.00
1,876,363.76
(2,496,987.39)
3,477,972.00
1,711,442.62
3,477,972.00
4,313,584.79
2,602,142.17
1,932,208.00
9,480,711.88
1,932,208.00
13,402,822.72
3,922,110.84
19,070,165.15
16,573,177.76
(2,496,987.39)
5,189,414.62
7,791,556.79
2,602,142.17
11,412,919.88
15,335,030.72
3,922,110.84
Payroll
Accts Payable
Other/Xfers
4,437,400.30
4,148,452.14
200,000.00
4,275,960.53
5,437,896.80
214,831.11
(161,439.77)
1,289,444.66
14,831.11
4,381,444.83
1,672,020.00
3,991,280.80
2,593,507.36
(390,164.03)
921,487.36
-
2,976,592.96
1,750,917.47
3,315,142.88
3,510,214.73
(309,835.80)
338,549.92
1,759,297.26
(309,835.80)
Total Cash Out
8,785,852.44
9,928,688.44
1,142,836.00
6,053,464.82
6,584,788.16
531,323.34
4,727,510.42
6,515,521.81
1,788,011.39
10,284,312.71
6,644,489.32
(3,639,823.39)
1,206,768.63
2,070,818.84
6,685,409.46
8,819,508.91
2,134,099.45
Apportionment
Other/Xfers
Total Cash In
Cashflow Out
Surplus/(Deficit)
Variance Reconciliation
(864,050.21)
Assumptions
October
Cash In:
Oct Financial Aid Received in Nov
(2,200,000.00)
Cash Out:
Financial Aid Higher Than
Anticipated
1,000,000.00
Cash In:
Oct Financial Aid Received in Nov
2,200,000.00
Cash Out:
STRS paid in December
373,000.00
Property Tax Revenue Higher
than Anticipated
432,000.00
November
December
Cash In:
Cash Out:
November Financial Aid
Posted in December
1,529,000.00
Financial Aid Higher Than
Anticipated
1,700,000.00
January PERS paid in December
Financial Aid Higher than
Anticipated
329,604.00
1,700,000.00
*
Quarterly Statement will be issued on a rolling quarter basis
*
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
115
Cabrillo College 2010-11 Projected Cash Balance
July
Beginning Cash Balance
Cashflow In:
Projected
Actual
County Borrowing
Internal Borrowing
Variance (Actual-Projection)
Cashflow Out
Projected
Actual
County Repayment
Variance (Actual-Projection)
Projected Ending Cash Balance
Actual Ending Cash Balance
August
September
*
November
December
January
February
March
April
May
June
2,251,375.99
12,333,363.68
4,842,100.29
2,440,803.63
6,378,009.50
9,224,786.00
9,407,066.00
1,177,825.00
1,524,229.00
3,535,943.00
3,914,154.76
182,280.00
346,404.00
378,211.76
(4,727,600.00)
(4,564,652.00)
162,948.00
19,070,165.15
16,573,177.76
5,189,414.62
7,791,556.79
11,412,919.88
15,335,030.72
(2,496,987.39)
2,602,142.17
3,922,110.84
(6,645,919.00)
(6,693,842.00)
(5,713,585.00)
(7,748,691.00)
(8,785,852.44)
(9,928,688.44)
(6,053,464.82)
(6,584,788.16)
(47,923.00)
(2,035,106.00)
(1,142,836.00)
(531,323.34)
1,577,275.94
11,861,588.65
10,997,538.45
17,682,947.91
11,220,423.50
6,050,810.50
2,216,274.26
8,860,763.58
10,067,532.21
18,887,041.12
Assumes no deferrals in categorical programs
4,715,666.47
(7,389,439.19) (6,633,555.36) (10,890,974.54) (6,122,561.86) (4,827,601.41)
(1,788,011.39)
3,754,917.94
Apportionment and deferrals based on 2010-11 Chancellor's Office Schedule
and includes addition of proposed deferral of $1.29 million dollars, for a total of
$9,699,713
2,293,125.99
(4,727,510.42) (6,863,687.11)
(6,515,521.81)
9,223,011.94
Assumptions:
*
October
13,112,386.79
10,438,614.07
-
6,056,434.70
-
7,498,823.85
-
6,218,362.27
-
3,831,564.50
-
116
117
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
February 7, 2011
FROM: PRESIDENT
SUBJECT:
Facilities Master Plan Project Status
REASON FOR BOARD CONSIDERATION
ENCLOSURE(S)
ITEM NUMBER
INFORMATION
Page 1 of 3
E.5
BACKGROUND:
Major Projects under Construction
Financial Overview for
Major Projects
Current Budget
Total Paid to Date
(thru 12/31/10)
Encumbered
(thru 12/31/10)
Changes Under Review-including change orders
not encumbered
Anticipated Future
Expenses
Subtotal Committed
Construction
(Over)/Under Budget
AEC
Allied Health
Classrooms
SAC
$29,137,797 $2
$78,929,841
Building 300
Watsonville
Renovation Green Tech Center
8,104,996
$3,217,033
$10,940,000
77,833,576
29,045,993
25,213,197
1,776,642
3,768,638
415,002
91,251
257,080
378,120
6,370,665
583,784
0
454,100
109,757
22,537
78,854,899
0
29,137,244
25,924,377
152,000
2,416,519
608,041
10,747,344
74,942
553
2,180,619
800,514
192,656
Note#1
Financial Overview for
Allied Health Building 300
AEC
SAC
Major Equipment
Equipment
Equipment
Equipment
Equipment
Projects
Current Budget
$2,258,157
$263,873
$2,394,977
1,862,000
Total Paid to Date
2,258,157
263,873
1,040,483
55,555
(thru 12/31/10)
Encumbered
0
567,808
370,073
(thru 12/31/10)
Changes Under Review-including change orders
not encumbered
0
0
0
0
Anticipated Future
0
0
786,686
1,436,372
Expenses
Subtotal Committed
2,258,157
263,873
2,394,977
1,862,000
Construction
(Over)/Under Budget
0
0
0
0
Note #1 Regarding Bldg 300 reconstruction, due to the favorable bid opening, $1,006,000 in State funds was reverted.
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
118
Major Projects under Construction
Arts Education Classrooms Project
Buildings 4 (Theater) and 5 (Music) continue to be in the closeout and punch list process. In addition to
these activities staff is working to resolve acoustic concerns in 2-D and 3-D Art and the Music Building
and water leaks in the Theater and Music buildings. Thirteen of the nineteen contractors have either been
closed out or will be closed shortly. Mediation with the remaining contractors, architect, and construction
manager is in process.
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. Anticipated
future changes are an estimate of potential additional work, not part of initial bid.
Current Status Update:
The District received approval to encumber state funds for the equipment and has placed orders
and bid large equipment purchases. The punch list is nearly complete with only touch up type
work remaining. Some HVAC (Heating, Ventilation & Air Conditioning) noise mitigation
work is also underway in building 2, and Building 1 has sound panels on order and minor
adjustments to the system under review.
Building 300 Renovation
On February 1, 2010 the Governing Board approved awarding a bid in the amount of $1,560,136 to
Tombleson Construction of Salinas for the renovation of the 300 building. The project will
remodel/reconstruct 12,523 assignable square feet of space to provide needed instructional space for ten
general purpose classrooms, two large assembly/class rooms and nine BELA division offices. The
construction began in spring 2010 and is substantially complete. Release request for state equipment
funds was submitted to the Chancellor’s Office the week of October 4, 2010. Approval of the list was
received on October 14, 2010. Staff has been placing orders for long lead time items to prepare the
space for classes starting in the building in the spring semester 2011.
Current Status Update:
Beneficial occupancy of the building has been accomplished with minor punch list items
remaining. The project is currently under budget by approximately $800,000 and is expected to
reach final completion in April with the closing of project with DSA and State funding
reconciliation.
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
Industrial Training Education Center (ITEC). The District received a grant for $2.5 million from
Economic Development Agency for the project, and the grant was augmented by $865,000 this past
summer to help fund an upgrade to a Platinum Level LEED certified “green” building. The project name
has been changed to the Green Technology Center to reflect the new focus. The Division of State
Architect (DSA) approved the plans in June of 2010 and EDA approved the plans and specifications in
2 of 3
119
July. 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. Dilbeck and Sons were issued a notice to proceed and
construction has begun. A deductive change order for the value engineering items discussed at the 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 which allows us to add back some of the items
that were value engineered out.
Current Status Update:
The project is now underway with the primary focus on the installation of the underground
plumbing and electrical conduit. Building “A” (classroom building) is scheduled for concrete
placement February 8, 2011 pending good weather and site coordination. Building “B” is
scheduled for concrete placement February 22, 2011 also pending favorable weather and site
coordination. Additional sub-grade work is scheduled to be accomplished the end of February.
Some minor changes are anticipated and will be addressed in February although no current
change orders are on this month’s report.
Awards of Informal Bids under the Uniform Construction Cost Accounting System (UCC):
At the September 2005 Governing Board meeting, the Uniform Public Construction Cost Accounting
System was adopted to enable the District to increase the formal bid limits from $15,000 to $125,000.
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 $125,000 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.
No bids were awarded in December.
3 of 3
120
121
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
February 7, 2011
SUBJECT:
Financial Reports
ENCLOSURE(S)
REASON FOR BOARD CONSIDERATION
ITEM NUMBER
Page 1 of 22
E.6
INFORMATION
BACKGROUND:
The following financial reports are presented for the information of the Governing Board:
Report
Period Ending
Trial Balance
12/31/10
Page
2
Year-to-Date Budget Reports
12/31/10
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
12/31/10
13
Bookstore
12/31/10
14-15
Cafeteria
12/31/10
16-17
Associated Students
12/31/10
18
Scholarships/Loans
12/31/10
19
Student Center Fee
12/31/10
20
Student Representation Fee
12/31/10
21
Trust and Agency
12/31/10
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
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
February 7, 2011
FROM: PRESIDENT
SUBJECT:
Watsonville Redevelopment Update
REASON FOR BOARD CONSIDERATION
INFORMATION
ITEM NUMBER
ENCLOSURE(S)
E.7
Page 1 of 5
Background:
An update on the addition of the Manabe-Ow property in Watsonville to the Watsonville 2000
Redevelopment Agency through State legislative action, will be presented as information to the Governing
Board at the February 7, 2011 Board meeting.
Administrator Initiating Item:
Brian King, President
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
Final Disposition
144
Overview
Addition of Manabe-Ow Property to the Watsonville 2000 Redevelopment Project Area
The following briefly summarizes the need for the City to incorporate this property into the
Redevelopment Area. Mr. Palacios will provide additional information, as well as discuss the
potential financial benefits to the Cabrillo College District
The Manabe-Ow Business Park is a 95 acre property adjacent to Highway 1 that will be the key to
increasing employment and enhancing the quality of life for the Watsonville community, as well
as the County as a whole, over the next twenty years. The project will include 65 acres of light
industrial/office park development, 28 acres of slough restoration, minimal area-serving retail, and
some workforce housing. At a time when unemployment for Watsonville has averaged 25% over
the past two years, this project is essential. It is anticipated that over a twenty year period the
project will create approximately 2100 jobs, and is likely to be the last project of this size within
the County..
Construction of the business park requires significant infrastructure investment. As the property
is currently in agricultural production, it lacks any streets or utilities, and much of it lies within a
floodplain. Infrastructure costs alone are expected to be approximately $31 million. Given these
costs, development of the property is too expensive for a private party to undertake on its own,
and a public-private partnership is necessary. Redevelopment is a typical source of funding for
projects of this nature, and it is unlikely this Property will be developed without contribution
from the Redevelopment Agency. Because the property is not part of the Redevelopment Project
Area, adding it is essential to the construction of the project.
The Manabe-Ow Business Park represents the culmination of over 15 years of efforts to provide
future industrial and technology development capacity for our community. Typically, such a
major project would receive participation from the City’s Redevelopment Agency; however, the
property is not currently within the Redevelopment Project Area. It was the City’s intention to
include the property along with several other properties added when the Watsonville 2000
Redevelopment Plan was created. Unfortunately the City’s annexation of the Manabe-Ow
property had not been completed by that time, and as it was not part of the City, it could not be
added to the Redevelopment Area. Annexation was postponed until a community wide process
led by Action Pajaro Valley resulted in adoption of a voter approved growth management strategy
(Measure U), which defined the borders within which the City could grow. This growth
management strategy specifically identified the 95 acre Manabe-Ow property as a targeted growth
site, and it was annexed to the City in 2006. It is still not a part of the Redevelopment Project
Area.
Redevelopment is intended to address “blighted” areas. Under current redevelopment law, the
property cannot be added to the Redevelopment Project Area through a traditional amendment to
the Redevelopment Plan, because it does not meet the strict definition of blight, despite its
presence in a flood plain, as it is undeveloped agricultural land. A legislative action is presently
the City’s only option for including the property in the Redevelopment Project Area. Staff and
Council would work with our representatives in the State Assembly and Senate to introduce and
hopefully secure a bill that would authorize the City Council to add the property to the
Redevelopment Project Area.
145
This project is not only vital to the creation of future jobs but also to retention of existing local
(both within Watsonville and County-wide) businesses and employees. Several local employers
are poised to grow and would prefer to do so locally but would be forced to look out of the
region – if not the state - if local industrial capacity is not expanded. Without redevelopment
assistance, it is unlikely that the Manabe-Ow Business Park will be fully developed.
T
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147
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148
149
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
February 7, 2011
SUBJECT:
Cabrillo College Fact Book Presentation & Discussion
REASON FOR BOARD CONSIDERATION
INFORMATION
ITEM NUMBER
ENCLOSURE(S)
Page 1 of 1
E.8
BACKGROUND:
The Board will discuss the Cabrillo College Fact Book 2010 with Interim Dean of I.T., Planning &
Research, Craig Hayward.
The Cabrillo College Fact Book 2010 contains 58 pages of statistics and analytics that describe
Cabrillo College’s students, staff, faculty, and resources. The fact book provides insight into the
nature of the college and its operations including statistical information on student headcount,
enrollment, demographics, financial aid, success and attainment. A number of pages have been
added or enhanced or the years. Three new pages were added in 2010 and numerous other pages
were improved. Each page is a study in its own right.
What does this compendium say about us? How is the information used?
Staff, faculty and community members are encouraged to access the contents of the fact book
online at: http://pro.cabrillo.edu/pro/factbook
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
150
151
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
February 7, 2011
SUBJECT:
ENCLOSURE(S)
STARS Title V Project Update
REASON FOR BOARD CONSIDERATION
INFORMATION
ITEM NUMBER
Page 1 of 2
E.9
BACKGROUND
The college was awarded a Title V grant through the Strengthening Hispanic-Serving Institutions (HSI)
Program under the U.S. Department of Education for October 2009 – September 2014. The purpose of
the grant is to increase success for students assessing at basic skills levels in math, English and reading.
The Cabrillo program is named STARS, Students Transitioning in Academics and Reaching Success,
with a website at www.cabrillostars.org. The grant funds five staff positions, with the fifth in the process
of being hired this year. All of the funded activities are on schedule and fall under two primary
branches: increased student engagement and faculty development to support student achievement.
Increased Student Engagement
The First Year Experience (FYE) program for the first year of the grant focused on students interested
in careers in Allied Health, Public Safety and Human Services. STARS FYE was successfully launched in
July, 2010 with a Summer Bridge program that prepared students in math, reading and an orientation to
college resources. The Summer Bridge program included activities to build cohesion within the cohort,
information on learning disabilities and screening upon request, and study skills workshops. The retention
rate was 96% (55 of 57 finished), the average success rate was 95%, and persistence was 93% (53
enrolled in the fall semester). These rates far exceeded the 75% benchmark set as a goal.
For fall 2010, 58 students enrolled in STARS FYE math, reading, English and career exploration classes.
53 have enrolled for the spring semester, a cohort persistence rate of 91%. They will be joined by 18
students who took fall classes in the Digital Bridge Academy, for a total of 71 STARS students in spring
2011. Success and persistence rates for the fall are currently being analyzed by the Planning and Research
Office and will be part of the first year summary report on STARS FYE.
Several procedural changes which will benefit Learning Communities (LC) as a whole at the college were
put into place, including beginning the LC scheduling process a year prior to the start of a semester,
activating new functions in Datatel to facilitate LC registration, and using an integrated approach for LC
outreach to inform students of all the options available.
Administrator Initiating Item:
Rachel Mayo, Dean, Ed Centers/Title V
Renée M. Kilmer, Vice President, Instruction
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
 Yes X No
 Yes  No
Final Disposition
152
Other goals related to increasing student engagement have been met or exceeded to date. Technology
upgrades were provided for six classrooms in the fall, doubling the goal of three for the first year.
Curriculum development was completed for new courses in ESL, math, Allied Health, Human Services,
Public Safety, reading and library science. A Welcome Center information kiosk to give students easy
access to first contact information was equipped, and a second one was set up at the Watsonville Center.
In addition, the website for the kiosk (http://cabrillo.edu/internal/onestop/titlev/) was adopted for the registration
computers near Admissions and Records. A leisure reading collection to encourage basic skills students
to expand their reading activities was set up in the college library, and a second collection was added to
the Integrated Learning Center in Watsonville.
Faculty Development
The grant funds the development of a Faculty Inquiry System to increase the use of data to improve
teaching and thereby increase the level of success for basic skills students, while contributing to the
college-wide goal of building a "culture of inquiry." This system will be known as SOFIA, Student
Outcomes for Faculty Inquiry and Analysis. The Faculty Inquiry Network (CabrilloFIN) has been set up
as the first step in this process, an online Cabrillo community for faculty and staff to engage in discussion
groups, post information and research regarding excellent teaching and student success, and pose
questions to their peers about best practices. The CabrilloFIN gathered over one hundred members during
the first year of the grant, and many are actively communicating online. The grant also provides funds for
professional development for conferences and training related to basic skills instruction, First Year
Experience programs, learning communities, and other topics related to themes in the STARS FYE
model.
Future Planning
During this second year of the grant which started in October of 2010, SOFIA will enter a more
accelerated development phase and other grant initiatives will develop more fully. After this year there are
three more years of FYE pilots, which will each have a different focus since Title V grants fund
development rather than operations. The 2011-12 FYE program will start in Summer 2011 and have three
cohorts: students interested in Health or Wellness careers who assess into English 255, Early Childhood
Education (ECE) students who are also taking English as a Second Language (ESL) classes, and ESL
students who will take ESL 204 in the fall and English 100 in the spring. The ECE and one of the ESL
groups will be evening cohorts. The 2012-13 FYE program will focus on basic skills students interested in
STEM (Science, Technology, Engineering and Math) fields, and 2013-14 will have a general focus on
basic skills students who plan to transfer.
Matching federal funds support a Title V endowment that is intended to support grant activities beyond
the funding period, and $49,442 were matched the first year. Response to the endowment has been
favorable, and the Cabrillo College Foundation anticipates matching the full amount of $451,115 in
federal funds designated for the 5-year grant period.
2
153
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
February 7, 2011
SUBJECT:
Board Policy 3518 Child Abuse Reporting
Student Services, First Reading
REASON FOR BOARD CONSIDERATION
INFORMATION
ENCLOSURE(S)
ITEM NUMBER
Page 1 of 2
E.10
BACKGROUND:
The District is in the process of revising Board Policies and Administrative Regulations utilizing
the California Community College League’s model policies as applicable.
Attached is a new addition to the Board Policies in the Student Services component.
Board Policies are presented as a first reading for Governing Board review and will return for
action at the next Governing Board meeting.
Administrator Initiating Item:
Dennis Bailey-Fougnier
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
 Yes  No
 Yes  No
Final Disposition
154
BP 3518 Child Abuse Reporting
References:
Penal Code Sections 261, 264.1, 273a, 273d, 285, 286, 288, 288a, 289,
647a, and 11164-11174.3; Welfare and Institutions Code Sections 300,
318, and 601; Family Code Sections 7802, 7807, 7808, 7820-7829, 7890,
and 7892
The President/Superintendent shall establish procedures related to the responsibility
of employees, within the scope of employment or in their professional capacity, to
report suspected abuse and neglect of children.
See Administrative Procedure 3518.
Approved: Student Services Council, January 19, 2011
155
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
February 7, 2011
SUBJECT:
Cabrillo College Monthly Calendar
REASON FOR BOARD CONSIDERATION
INFORMATION
ENCLOSURE(S)
ITEM NUMBER
Page 1 of 2
E.11
BACKGROUND:
The following calendar presents information about selected events and significant dates for the month of
February. Dates given are accurate as of January 19, 2011.
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
156
February 2011
Marketing and Communications Department • 831.479.5744
Sunday
Monday
31
Flex Week Begins
Tuesday
1
Flex Day
Wednesday
2
Flex Day
Thursday
3
Flex Day
Friday
4
5
Flex Day
Men’s & Women’s
Softball vs. Diablo
Basketball vs.
Valley, 3:00 p.m.
Monterey Peninsula,
5:00 & 7:00 p.m.
Breakfast with
Brian, 8:30 a.m.,
Horticulture Center
Saturday
Cabrillo Insider, radio
show, 5:00 - 6:00
p.m., KSCO 1080 AM
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Spring Semester
Begins
Governing Board
Meeting, 5:00 p.m.,
Sesnon House
Auditions for spring
Auditions for spring
Auditions for spring
Men’s & Women’s
Baseball vs. College of
TA production of
TA production of
TA production of
Basketball vs.
the Sierras, 2:00 p.m.
“Marriage of Figaro,” “Marriage of Figaro,” “Marriage of Figaro,” DeAnza, 5:00 & 7:00
7:00 p.m., Crocker
7:00 p.m., Crocker
7:00 p.m., Crocker
p.m.
Cabrillo Insider, radio
Theater
Theater
Theater
show, 5:00 - 6:00
Softball
vs.
Porterville,
p.m., KSCO 1080 AM
Exhibit: “Insistence of
12:00 p.m.
Memory,” opens at
Cabrillo Gallery
Baseball vs. Modesto, Board Budget Study
2:00 p.m.
Session, 4:00-6:00
p.m., Sesnon House
(Tentative)
20
21
Holiday Washington’s
Birthday Observed
22
Census Day
23
Exhibit: “Insistence of Holiday - Lincoln’s
Memory,” Reception Birthday Observed
and Artist’s Talk:
4:30 - 7:00 p.m.,
Cabrillo Gallery
24
Baseball vs. Delta,
2:00 p.m.
25
Softball vs. Contra
Costa, 1:00 p.m.
Baseball vs. Modesto,
1:00 p.m.
Cabrillo Insider, radio
show, 5:00 - 6:00
p.m., KSCO 1080 AM
26
Annual Evening
of World Theatre
presents Watsonville
Taiko, 8:00 p.m.,
Crocker Theater
Cabrillo Insider, radio
show, 5:00 - 6:00
p.m., KSCO 1080 AM
27
28
Coming in Early March
Mar 1
Softball vs. San Jose City College, 3:00 p.m.
Mar 5
Softball vs. Napa Valley, 11:00 a.m.
Mar 5
Deadline to drop a full-term class without permanent “W”
Mar 5/6 Auditions for Cabrillo Stage summer productions, 10:00 a.m. - 3:00 p.m., Crocker Theater
Mar 6
DACLS presents pianist Frank Wiens, 3:00 p.m., Music Recital Hall
Mar 7
Cabrillo Governing Board Meeting, 5:00 p.m., Sesnon House