HARTNELL COMMUNITY COLLEGE DISTRICT
Board of Trustees
Annual Organizational and Regular Meeting
AGENDA
December 7, 2010
TIME/PLACE:
411 Central Avenue, Salinas
CALL Building, Room 208
5:00 p.m. – PUBLIC SESSION
5:05 p.m. – CLOSED SESSION
6:00 p.m. – RECONVENE PUBLIC SESSION
Board of Trustees
Patricia Donohue, President
Kevin Healy, Vice President
Candi DePauw, Bill Freeman, Elia Gonzalez-Castro
Ray Montemayor, Erica Padilla-Chavez
Shaundra Taylor, Student Trustee
Dr. Phoebe Helm, Superintendent/President, Secretary to the Board
The Board of Trustees welcomes you to its meetings, scheduled on the first Tuesday of each month,
unless otherwise noted.
The agenda and accompanying documents are on the college’s website at www.hartnell.edu/board.
Contracts requiring approval of the Board on this agenda are available to view in the President’s
Office. Typically, the agenda consists of the following:
A. CONSENT AGENDA: These matters include routine administrative and financial actions and
normally approved by a single majority vote.
B. REGULAR AGENDA: Action Items: These items include significant administrative and
financial actions classified by departmental areas and approved by majority vote for each item.
Information Items: These items include presentations to the Board and items for discussion
prior to Board action, normally taken at the next meeting.
C. CLOSED SESSION: In accordance with Government Code Sections, 3549.1, 54956.9, 54957
and/or 54957.6, the Board of Trustees may meet in Closed Session to consider legal, personnel,
labor, and/or contract matters.
INDIVIDUALS DESIRING TO ADDRESS THE BOARD: Any member of the audience desiring
to address the Board should complete and submit to the Superintendent prior to the meeting, if
possible, a Speaker Request Form, available at the door. When the item PUBLIC COMMENTS is
taken, the Board President will recognize those who have filled out a Speaker Request Form in the
order in which they are received. The Board President may limit the time of presentation to three
minutes per speaker, and a maximum of fifteen minutes. Following public comment, the Board
President will limit discussion to the Board only.
MISSION STATEMENT: Hartnell College provides the leadership and resources to ensure that all
students shall have equal access to a quality education and the opportunity to pursue and achieve their
goals. We are responsive to the learning needs of our community and dedicated to a diverse
educational and cultural campus environment that prepares our students for productive participation
in a changing world.
HCCD – ANNUAL ORGANIZATIONAL AND REGULAR MEETING OF THE BOARD – DECEMBER 7, 2010
Page 1 of 4
For the pleasure of the Board and guests, performing will be Estudiantina Hartnell
William Faulkner, Faculty, and Students
I.
OPEN SESSION, CALL TO ORDER – 5:00 P.M.
A. ROLL CALL
Action
B. ADOPT AGENDA
C. DISCLOSURE OF ITEMS DISCUSSED IN CLOSED SESSION, AS FOLLOWS:
Items discussed in Closed Session will include, legal, personnel, labor, and/or contract matters
authorized for Closed Session per Government Code Sections, 3549.1, 54956.9, 54957, and/or
54957.6.
1. Reconsideration of Release of Probationary Faculty Member – 1 case
2. Update on Negotiations – Hartnell College Faculty Association
D. PUBLIC COMMENT PERIOD REGARDING CLOSED SESSION ITEMS
Fifteen minutes set aside for public comment on closed session items.
Maximum three minutes each.
II.
MOVE TO CLOSED SESSION
The Board of Trustees of Hartnell Community College District will meet in Closed Session to
consider legal, personnel, labor, and/or contract matters authorized for Closed Session per
Government Code Sections, 3549.1, 54956.9, 54957 and/or 54957.6.
III.
RECONVENE TO PUBLIC SESSION (APPROXIMATELY AT 6:00 P.M.)
Pledge of Allegiance
A. REPORT OUT FROM CLOSED SESSION
IV.
ANNUAL ORGANIZATION – BOARD OF TRUSTEES
Action
A. ELECTION OF OFFICERS
Elect officers to the Board of Trustees for the 2011 calendar year.
Action
B. APPOINTMENT OF REPRESENTATIVES TO STANDING ORGANIZATIONS
Appoint one representative to the Sunrise House and one representative to the Monterey County
School Boards Association for the 2011 calendar year.
Action
C. DESIGNATION OF 2011 BOARD MEETING DATES AND TIMES
Set dates and times of Board meetings for the 2011 calendar year.
Roll-call
D. RESOLUTION 10:15, AUTHORIZING SIGNATURE OF BOARD SECRETARY ON
DOCUMENTS
Adopt Resolution 10:15, Authorizing Signature of Board Secretary to sign all appropriate
documents.
HCCD – ANNUAL ORGANIZATIONAL AND REGULAR MEETING OF THE BOARD – DECEMBER 7, 2010
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V.
PUBLIC COMMENTS ON PUBLIC SESSION ITEMS AND ITEMS NOT ON THE AGENDA
Fifteen minutes (three-minute maximum per person) set aside to receive public comments on public
session agenda items or items not on the public session agenda, but within the jurisdiction of the
Board.
1. Receive public comments on items on the public session agenda.
2. Receive public comments on items not on the public session agenda.
VI.
PRESENTATIONS
A.
VII.
PRESENTATION ON ANNUAL AUDIT REPORTS
Gema M. Ptasinski, CPA – Vicenti, Lloyd, & Stutzman LLP
1. Independent Accountant’s Audit Report for the year ending June 30, 2010.
2. Measure H Obligation Bond Independent Accountant’s Report (Performance Audit) and
Financial Audit for 2009-2010.
CONSENT ITEMS
A. MINUTES
Approve Minutes of Regular Meeting of November 9, 2010.
B. DISBURSEMENTS
Ratify disbursements from any or all of the following funds: general; debt service; bookstore;
child development; capital outlay projects; scheduled maintenance; property acquisition; bond
projects; cafeteria; self-insurance; retirees health benefits; associated student body; scholarship,
loan, and trust; and intercollegiate athletics.
C. CURRICULUM COMMITTEE
Ratify Curriculum Committee actions.
D. CONTRACT BETWEEN INDEPENDENT AUDITING FIRM, VICENTI, LLOYD,
STUTZMAN, LLP AND HARTNELL COLLEGE
Authorize to amend the contract by one year with the independent auditing firm, Vicenti,
Lloyd, and Stutzman, LLP, for financial auditing services through the end of fiscal year 2011.
E. PERSONNEL ACTIONS
Approve and/or ratify Personnel Actions (included in packet).
VIII.
Action
Action
Roll-call
ACTION ITEMS
A. ACCEPT INDEPENDENT ACCOUNTANTS’ AUDIT REPORTS FOR YEAR ENDING
JUNE 30, 2010
Accept the Independent Accountants’ Audit Reports for the year ending June 30, 2010. The
reports for 2009-2010 include all funds: 1) General (restricted and unrestricted), 2) Hartnell
College Foundation, and 3) Measure H Capital Bond Funds. In addition to the financial
audits, a Performance Audit of Measure H is included.
B. APPROVE BUDGET REVISIONS
Approve budget revisions numbered 9021 to 9053.
C. ADOPT RESOLUTION 10:16, APPROVING AMENDED AND RESTATED BYLAWS
Adopt Resolution 10:16, Approving Amended and Restated Bylaws.
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IX.
INFORMATION ITEMS
A. UPDATE ON CURRENT CONSTRUCTION PROJECTS
Receive oral and written report on current construction projects.
Damon Felice, Felice Consulting Services / Joseph Reyes, Director, Maintenance
B. FINANCIAL STATEMENTS
Receive and accept financial statements for month ending October 31, 2010.
C. MONTEREY COUNTY TREASURERS QUARTERLY REPORT
Receive County of Monterey Treasurer’s Report of Investments for the Quarter Ending
September 30, 2010.
D. PROCESS FOR REDRAWING ESTABLISHED TRUSTEE AREA BOUNDARIES
Receive information on the redrawing of established trustee area boundaries.
E. REPORTS FROM SENATES
Receive oral reports from College Senates on matters of interest to the college.
1. Stephanie Blancas, Student Senate
2. Nancy Schur, Academic Senate
3. Classified Senate
F. PRESIDENT’S REPORT
Report from the Superintendent/President.
G. BOARD OF TRUSTEES COMMUNICATION
Trustee reports on matters of interest to the college.
X.
NEXT MEETING
January 18, 2011, 5:00 p.m., Hartnell College, 411 Central Avenue, CALL Building, Room 208.
XI.
ADJOURNMENT
Adjourn the meeting.
HCCD – ANNUAL ORGANIZATIONAL AND REGULAR MEETING OF THE BOARD – DECEMBER 7, 2010
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ANNUAL
ORGANIZATION
ANNUAL ORGANIZATIONAL MEETING OF TRUSTEES:
Title
December 7, 2010
Number
Annual Election of Officers for 2011
IV. A
Area
Status
Superintendent/President
Action
Recommendation
It is recommended that the Board of Trustees conducts the annual election of officers.
Summary
In accordance with Education Code Section 72000, the Hartnell College District Board of
Trustees will conduct its annual election of officers for 2010 as follows:
Board President
Board Vice President
In accordance with Board Policy 1010, Annual Organization Meeting and Officers of the
Board, the Hartnell College Board of Trustees will appoint as follows:
Superintendent/President as Secretary of Board
ANNUAL ORGANIZATIONAL MEETING OF TRUSTEES:
Title
December 7, 2009
Number
Annual Appointment of Representatives to
Standing Organizations
IV. B.
Area
Status
Superintendent/President
Action
Recommendation
It is recommended that the Board of Trustees appoint its representatives to standing
organizations for calendar year 2011.
Summary
Each year, the Hartnell College District Board of Trustees appoints its representatives to:
Sunrise House Executive Board
Monterey County School Boards Association
ANNUAL ORGANIZATIONAL MEETING OF TRUSTEES:
Title
Designation of 2011 Board Meeting
Dates and Times
Number
Area
Superintendent/President
Status
Action
December 7, 2010
IV. C.
Recommendation
It is recommended that the Board of Trustees adopts the dates and times for regular meetings
and for board development for calendar year 2011. (Board Policy 1015 and 1100).
Summary
Education Code Section 72000 requires that the governing board of each community college
district hold regular monthly meetings and Accreditation Standard IV. B.1.f. requires the
governing board have an on-going program for board development.
The dates of the Board’s regular meetings are recommended the first Tuesday of each month
and the development meetings on the third Tuesday of each month, except where noted.
The Board will open its regular business meeting at 5:00 p.m., closed session to follow
immediately after, if needed.
The Board’s development meetings will open at 5:00 p.m.
The dates for both meetings are as presented below:
Regular Board Meeting
January 18, 2011*
February 8, 2011*
March 1, 2011
April 5, 2011
May 3, 2011
June 7, 2011
July 12, 2011*
August 16, 2011*
September 13, 2011*
October 4, 2011
November 1, 2011
November 29, 2011*
January 17, 2012*
Board Development Meeting
January 25, 2011*
February 15, 2011
March 15, 2011
April 26, 2011*
May 17, 2011
June 21, 2011
July 19, 2011
August 23, 2011*
September 20, 2011
October 18, 2011
December 6, 2011*
December 13, 2011*
January 24, 2012*
NOTE: In 2011, Election Day is November 8th, the second Tuesday rather than the first
Tuesday of the month.
*These dates have been adjusted.
Revised 12/6/2010
ANNUAL ORGANIZATIONAL MEETING OF TRUSTEES:
Title
Adopt Resolution 10:15, Authorizing
Signature of Superintendent/President as
Secretary of the Board of Trustees
Number
Area
Status
Superintendent/President
Action (Roll Call)
December 7, 2010
IV. D.
Recommendation
It is recommended that the Board of Trustees adopts Resolution 10: 15 authorizing the
signature on appropriate documents of Dr. Phoebe Helm, Superintendent/President, as Board of
Trustees Secretary.
Summary
Board Policy 1010, Annual Organization Meeting and Officers of the Board, states that the
Superintendent/President will serve as Secretary of the Governing Board as such, the Board
must adopt a resolution authorizing Dr. Phoebe Helm, Superintendent/President, as Board of
Trustee Secretary.
HARTNELL COMMUNITY COLLEGE DISTRICT
Resolution 10:15
Authorizing the Signature on Appropriate Documents
Superintendent/President, as Secretary of the Board of Trustees
WHEREAS, Dr. Phoebe Helm has been duly appointed to perform the duties of
Secretary of the Board of Trustees (as set forth in the Education Code) of Hartnell College
District,
NOW, THEREFORE, BE IT RESOLVED, that Dr. Phoebe Helm is hereby authorized
to sign all appropriate documents requiring the signature of the Board of Trustees’ Secretary.
PASSED AND ADOPTED by the Hartnell Community College District Board of
Trustees on December 7, 2010 by the following vote:
AYES:
NOES:
ABSENT:
Board President
Dr. Phoebe K. Helm
Secretary of the Board of Trustees
CONSENT
AGENDA ITEM FOR BOARD MEETING OF:
December 7, 2010
Number
Title
Minutes of Regular Meeting of
November 9, 2010
VII. A.
Area
Status
Superintendent/President
Prepared by: Dr. Phoebe Helm
Consent
Recommendation
It is recommended that the Board of Trustees reviews, revises as appropriate, and adopts the
minutes of regular meeting of November 9, 2010.
Summary
Minutes of the Board of Trustees for are submitted for review and approval as follows:
Regular Meeting of November 9, 2010
Unadopted
HARTNELL COMMUNITY COLLEGE DISTRICT
MINUTES
Regular Meeting of the Board of Trustees
CALL 208, Training Room
411 Central Avenue
Salinas, California
November 9, 2010
OPEN SESSION
Meeting called to order at 5:11 p.m.
ROLL CALL
Patricia Donohue, President
Kevin Healy, Vice President
Candi DePauw
Bill Freeman
Elia Gonzalez-Castro
Ray Montemayor
Erica Padilla Chavez
Shaundra Taylor, Student Trustee – (advisory vote per Board Policy 1030)
Phoebe K. Helm, Board Secretary
AGENDA
On a motion by Trustee Healy, seconded by Trustee Padilla-Chavez and by vote of 7-0,
the Board approved the agenda.
Trustee Taylor stepped away from the table and did not vote.
DISCLOSURE OF Trustee Donohue disclosed items for Closed Session as authorized per Government
Code Sections 3549.1, 54956.9, 54957, and/or 54957.6:
CLOSED
SESSION ITEMS
1. Update on Collective Bargaining – Hartnell College Faculty Association
2. Program Project Management Contract Agreement
PUBLIC
COMMENTS
There were no public comments on the closed session agenda.
MOVED TO
CLOSED SESSION
The Board of Trustees of Hartnell Community College District, and Dr. Phoebe Helm,
Superintendent/President, moved to Closed Session at 5:15 p.m. to consider legal, personnel,
labor, and/or contract matters authorized for Closed Session per Government Code Sections,
3549.1, 54956.9, 54957 and/or 54957.6. Damon Felice, Felice Consulting Services, and
Joseph Reyes, Director, Maintenance, joined the Board during this portion of the closed
session.
RECONVENED
PUBLIC SESSION
Trustee Donohue reconvened the public session at 7:25 p.m. She apologized for the
delay and announced the Board recessed from Closed Session and will reconvene after
the public meeting.
PUBLIC
COMMENTS
Students, Juan Gutierrez, Evangelina Quiroz, Demetrius Ramon, and Alan Garcia spoke
in support of offering an Art 3 class during the winter intersession. They stated that it
HCCD –REGULAR MEETING – NOVEMBER 9, 2010
Page 1 of 13
was scheduled to be offered (in the draft schedule), but was removed and that they
needed the course offered during intersession so that they could complete their program
and they urged the Board for their support.
Student, James Morgan, addressed the status of the auto collision program (AUC); that
AUC courses are not in the spring schedule and requested the matter be resolved as
soon as possible.
Student, Juan Gutierrez, stated that he had filed a grievance with student services
regarding another student and asked for a resolution.
PRESENTATIONS
Research Scholar
Institute
Dr. Kelly Locke, Faculty, stated that Dr. Brooke Haag, Faculty, and adjunct faculty, Dr.
Sewan Fan, held a Summer Research Scholar Institute for six interns that was funded by
the Title V STEM grant. Two interns, Ignacio Maravilla and Jose Rico were in
attendance to present their research projects.
Dr. Brooke Haag thanked the Board for the opportunity to present and stated she is
proud of the students and their work and that the summer program was a huge success.
Jose Rico, Hartnell student and graduate of Alvarez High School, presented his project
on micro droplets generation where he learned to make micro pipettes using a micro
pipette puller machine. Also, he learned how to design and assemble a CCD camera
imaging system, obtain the magnification of an imaging system, assemble a glass
grinding station for polishing fine glass nozzles, and learned how to apply the thin lens
equation. Mr. Rico worked in with fellow intern, Aysha Sadikka, who was not able to
attend the meeting.
Ignacio Maravilla, Hartnell student and graduate of Salinas High, presented his project
on the Synchronization of a Camera Flash System where he learned how to build a
digital circuit having pulse delay and width adjustments, assemble and test a pulse rate
divider circuit that incorporates division by 10, 5 and 3, and learned how to set up and
evaluate a CCD camera imaging system.
Both students extended their appreciation to Dr. Fan, Dr. Haag, Dr. Locke, and Tito
Polo, Science Lab Technician and stated this was an opportunity to allow each research
student to work together in ways they have not and it provided a hands-on learning
experience.
National Conference:
Society for the
Advancement of
Chicano and Native
American Scientists
Dr. Jeff Hughey, Faculty, reported that Hartnell College placed 32 interns over this past
summer. He referred to the 4th Annual Hartnell College STEM Internship Symposium
booklet that the Board received and stated that it summarizes all 32 internships and their
projects. Of the 32, five of them attended the National Conference for the Society for
Advancement of Chicano and American Scientists (SACNAS) held in Southern
California. Of those 5, two presented, Timothy Fuller (mentored by Dr. Hughey) and
Samantha Gebben (mentored by Carolee T. Bull, USDA).
Samantha reported that she did her research project in Salinas at the USDA center
located adjacent to the Alisal Campus. Her research was on lettuce and on the type
bacteria that causes a Bacterial Leaf Spot. At SACNAS, Samantha presented her project
titled, Lettuce Cultivar Influences on Xanthamonas campestris pv. vitians popluations.
HCCD –REGULAR MEETING – NOVEMBER 9, 2010
Page 2 of 13
She cited statistics on the conference stating that it was at a record high, over 3,000
registered of which 500 were graduate students, 100 post doctorates, over 1,000
professionals, 33 college professors, over 1,000 undergraduate students, 880 student
research presenters, 800 posters presented, and 80 graduate oral presenters. She stated
that attending the conference was a great experience for her because she was exposed to
different fields of study, received a lot good advice, and met really good people.
Dr. Hughey stated that Timothy Fuller came to tonight’s meeting, but had to leave
because he is presenting in his Oceanography class. He stated that Timothy’s research
project was on the Molecular Investigation of the Invasive Sponge Hymeniacidon
sinapium from Elkhorn Slough. Through his research, Timothy is the first person ever
to discover an orange-colored invasive sponge, and by the use of DNA prove that is
native only to Korea and Japan. At SACNAS, Timothy’s Poster Presentation was
ranked in the top tier of the 800 Research Poster Presentations at the Conference.
The Board thanked and congratulated all of the science students for their research and
noted that this was a rare opportunity for students in their first two years of college.
DIESEL
MECHANICS –
A GROWING
INDUSTRY
Neil Ledford, Interim Dean, Advanced Technology, thanked the Board for the
opportunity to present a Power Point that showcased the growth opportunities in the
diesel mechanics job market and program. Following the presentation, Val Rodriguez,
Faculty, introduced two former students, Phuc Lee and Rene Manzur.
Both, Mr. Lee and Mr. Manzur spoke about their current employment and about how the
program helped them to be successful. Mr. Lee is a Master Technician at Coastal
Tractor and Mr. Manzur owns and operates his own business, Golden State Mobile
Repair.
Mr. Ledford introduced advisory council members Mike Hernandez, Assistant General
Manager/COO, MST; Greg Diehl, VP, Graniterock; Al Parolini, General Manager,
Coastal Tractor; and Patrick Cruse, Account Manager, Snap-On Industrial Tools. The
members stated that diesel mechanics is a diverse, high demand, growth industry
because it is needed on various types of motor vehicles and equipment (trucks, tractors,
busses, water irrigation, water reclamation plants, etc); that they anticipate 30% of
trained technicians will retire in five to seven years and that there is a great need for
well-skilled, trained technicians in the latest technology. They stated the average
technician can earn up to $80,000 annually. They thanked the Board for the new
facilities designed for the Alisal Campus and stated that Hartnell has the opportunity to
be a dominate provider for this growing market, but to do so, they will soon need
additional faculty.
Trustee Padilla-Chavez asked questions related to the recruitment of students and Mr.
Rodriguez responded that he spends much of his time going to homes and speaking to
parents and that the Program hosts an open house where they reach out to local high
school students. Trustee Padilla-Chavez thanked the advisory members coming this
evening and for their support.
Trustee DePauw stated she attended last year’s open house was impressed with the
students and their demonstrations.
In addition, Miguel Munoz and Aurelio Cureva, diesel mechanic students, demonstrated
HCCD –REGULAR MEETING – NOVEMBER 9, 2010
Page 3 of 13
an electric board they had built. These hands on projects make the program and
learning exciting.
CONSTRUCTION
UPDATE
The Board received an updated, written report on the construction projects. The report
is housed at: http://www.hartnell.edu/board/packets/November_2010_Board_Packet.pdf
(Page 174).
Trustee Donohue asked about the status of the land swap with the City of Salinas and
Mr. Felice, Felice Consulting Services, responded that it’s still in process. Also, she
asked about the city sidewalk replacement program to which Damon responded that the
city has approved the program and MST has agreed to where they want the bus stop and
thus it is moving forward.
CONSENT ITEMS
On a motion by Trustee Healy, seconded by Trustee DePauw, by vote of 7-0, and by
advisory vote of Aye (Taylor), the Board moved to approve Consent Items A through N.
Pulled for questions and/or comments were Items, D, K, L, and M.
A. MINUTES
Approved minutes of regular meeting of October 5, 2010.
B. DISBURSEMENTS Approved disbursements from any or all of the following funds: general; debt service;
bookstore; child development; capital outlay projects; scheduled maintenance; property
acquisition; bond projects; cafeteria; self-insurance; retirees health benefits; associated
student body; scholarship, loan, and trust; and intercollegiate athletics.
C. NON CASH
DONATIONS
Accepted the non-cash donations from the Hartnell College Foundation.
D. SURPLUS AND
DISPOSAL OF
PROPERTY
Declared listed property as surplus and authorize the administration to dispose.
E. CURRICULUM
COMMITTEE
ACTIONS
Ratified the recommendations from the Curriculum Committee.
F. M. J. JOHNSON
CONTRACT,
GRANT
EXTERNAL
EVALUATOR
Approved agreement with Michael J. Johnson, grant external evaluator. The purpose of
this agreement is to provide a review, assessment, summary, and conclusion regarding
the execution and effectiveness of grant goals, objectives, outcomes, reporting
processes, and fiscal responsibilities for the college’s High School Equivalency
Program. The cost for this review is $4,000, paid from the grant, and the review will
occur during the month of November.
Trustee Montemayor asked if the welders listed were part of the auto collision program
to which Joseph Reyes, Director of Maintenance, responded these particular welders are
part of the welding program. Trustee Montemayor stated that he would prefer, if at all
possible, that equipment be donated to schools. Trustee Gonzalez-Castro made the
same request, specifically computer equipment to the Alisal Union School District.
HCCD –REGULAR MEETING – NOVEMBER 9, 2010
Page 4 of 13
G. AGREEMENT
CLARKE AND
ASSOCIATES
Authorized the administration to enter into an agreement with Clarke and Associates for
writing, submitting, and evaluating the U.S. Department of Education (USDOE)
Educational Talent Search Program grant. The College would pay Clarke & Associates
$4,500 upon acceptance of the contract, $3,000 upon submission of the grant proposal
for a total of $7,500 from the unrestricted general fund. In addition, if awarded, the
college would pay Clarke & Associates $5,000 in the first and third year of the grant
period. The Educational Talent Search Program grant is proposed at $230,000 each year
for five years.
H. AGRICULTURAL
LEASE
AGREEMENT
FRANSCIONI
BROTHERS, INC.
Approved an amendment to the agricultural lease agreement between Hartnell College
and Franscioni Brothers, Inc. for Alisal Campus farmland, beginning December 3, 2010
through December 2, 2011. There is no impact to the general fund. Annual rental
revenues from property must be placed in the restricted Property Acquisition Fund.
I. LETTER OF
AGREEMENT –
SAN FRANCISCO
COMMUNITY
COLLEGE
DISTRICT
Ratified the 2010-2011 Letter of Agreement between Hartnell College and San
Francisco Community District for the California Early Childhood Mentor Program.
This agreement will connect Hartnell College early childhood education students with
high quality, experienced early childhood professionals. There are no budget
implications. Participants are paid directly from San Francisco Community College
District.
J. AGREEMENT –
FOUNDATION
FOR
COMMUNITY
COLLEGES
Ratified the 2010-11 Agreement between Hartnell College and the Foundation for
Community Colleges for grant funding, fiscal management, and accountability for the
Youth Empowerment Strategies for Success Independent Living Program (YESS-ILP).
The funding amount of $22,500 will provide educational and employment training
opportunities for foster and probation youth.
K. AGREEMENT –
MCOE AS SUBRECIPIENT OF
GRANT FROM
U.S. DEPT OF
COMMERCE
Authorized the administration to enter into an agreement to accept funds from the
Monterey County Office of Education as a sub recipient of a grant from the U. S.
Department of Commerce for $659,246, over two years. This partnership, with
Monterey County Office of Education, Cal State University, Monterey Bay, Monterey
County Free Libraries, Boys and Girls Clubs of Monterey County, Community
Information Center, the National Steinbeck Center, will the focus on improving
community access to technology through the development of “Public Computer
Centers”.
Trustee Padilla-Chavez said that she is pleased the college is receiving a sub-award and
she asked about the scope of work to be performed by the College. Dr. Helm responded
that the work is done in partnership with MCOE and CSUMB and stated she would
provide the information to the Board.
L. CONTRACT DMC
CONSTUCTION –
CAB REFRESH #4
Authorized the administration to enter into a contract with DMC Construction, lowest
responsive bidder, for CAB Refresh Project, #4. The amount for this project is
$150,501.98 and paid from Measure H funds. The project scheduled to start on
December 18, 2010 and completed by January 23, 2011.
Trustee Padilla-Chavez asked what the total project cost is for this project. The total
project cost for CAB Refresh Projects 1, 2, 3, and 4 is $1.2 million.
HCCD –REGULAR MEETING – NOVEMBER 9, 2010
Page 5 of 13
M. CONTRACT –
Authorized the administration to enter into a contract with Perma Green Hydroseeding,
PERMA GREEN
Inc., lowest responsive bidder, for the Alisal Campus Landscape Project. The amount
FOR LANDSCAPE for this project is $ 458,000 and paid from Measure H funds. The project scheduled to
start on November 10, 2010 and completed by January 23, 2010.
Trustee Padilla-Chavez asked what the total project cost is and Mr. Felice responded,
$500,000.
N. PERSONNEL
ACTIONS
Approved and/or ratified personnel actions (Appendix A)
ACTION ITEMS
BUDGET REVISIONS On a motion by Trustee Padilla-Chavez, seconded by Trustee Healy, on vote of 7-0, and
by advisory vote of Aye (Taylor), the Board moved to approve budget revisions
numbered 8996 to 9009.
QUARTERLY
On a motion by Trustee Padilla-Chavez, seconded by Trustee DePauw, on vote of 7-0
FINANCIAL STATUS and by advisory vote of Aye (Taylor) the Board moved to accept the required State
REPORT
Report: Quarterly Financial Status Report (CCFS-311Q) for quarter ended September
30, 2010.
Trustee Padilla-Chavez asked members of the Ad-hoc Audit Committee if there is
anything the Board should know and is everything in order. Trustees Healy and
Donohue stated they had no concerns and that all is in order.
INFORMATION ITEMS
Financial Statements The Board received the financial statements for periods ending June 30, 2010 and
September 30, 2010.
Trustee Montemayor asked if the college has received the funding for the Hispanic
serving grant, Title V. Both, Mr. Stephens and Dr. Helm responded that this particular
grant is in partnership with Cabrillo College and when the dollars are spent, the College
is reimbursed. To date, no funding has been received.
SENATE REPORTS
Student Senate
Stephanie Blancas, VP Student Senate, reported that some senate members attended the
Fall General Assembly in San Diego late October and that they were not pleased that
their resolution was not successful; that they held a Pink Panther Day where they
celebrated breast cancer and handed out information from the American Cancer Society;
that they had a Club Day, and on October 29th they held their annual Spooktacular Event
which was held in the parking garage, that it was well attended, and a good event.
Academic Senate
Nancy Schur reported that the Statewide Senate has been working closely with all of the
local Senates to implement Senate Bill 1440, Student Transfer, and that the Articulation
Officer attended a recent conference on how this could be accomplished; that one of the
Senate’s goals is to examine the college’s process for granting equivalency and they are
currently reviewing the current process and are looking at how other community
colleges grant equivalency.
HCCD –REGULAR MEETING – NOVEMBER 9, 2010
Page 6 of 13
PRESIDENT’S
REPORT
Dr. Helm shared a bookmark that highlighted statistics for the Nursing Program last
academic year. Last spring, there were 45 Registered Nursing graduates – the largest
class in the history of the college. She stated that she was very proud of the fact that
one third of the class was male and one third was from the Alisal. Also, at first attempt,
the NCLEX (a national licensure exam for nursing students) pass rate for the Registered
Nursing Program was 96%. Dr. Helm pointed out that the national average for the first
attempt is at 84% and that the two who did not pass initially have already retaken the
test and passed. So, Hartnell is now at a 100% pass rate. And, this is especially
noteworthy in that this is the year that the standard for passing the national exam was
raised. Given the economic and demographic diversity of our students, Dr. Helm gave
high praise to them and to their faculty, as well as the support the college receives from
its clinical partners, especially the generosity of SVMHS.
And, for the first time ever, the nursing program now offers an 18-month evening and
weekend program and 10 students are enrolled this fall. Currently, there are 122
nursing students and the projected number of graduates is 62.
Dr. Helm pointed out that the bookmark notes some of the volunteer community
projects the nursing students and faculty have joined in. These projects include
Dorothy’s Kitchen Flu Clinic, Hartnell Faculty Science and Health Day, Haiti Outreach
Project, Farm Day, among many others. Dr. Helm, the Board, and assembly applauded
the Nursing Program faculty and students for their outstanding program and community
projects.
Also, Dr. Helm reported that she and Kent Stephens, Vice President, Support
Operations met with Dr. Nancy Kotowski, County Superintendent, and Ron Eastwood,
MCOE Communications Officer, to talk about Hartnell and other school districts
sharing the costs to redistrict trustee areas and she urged the Board to attend the
upcoming November 22nd workshop, 6 p.m., Monterey County Office of Education,
sponsored by the Monterey County School Boards Association.
At the October meeting, members asked what is used to determine when a course is
considered to be inactive or deleted. Dr. Helm distributed the information related to this
matter, and pointed out that the administrations relies primarily on the expertise of
faculty as it relates to curriculum and other academic matters as stated in AB 1725.
Dr. Helm pointed out the Board’s events calendar and provided a draft calendar for the
2011 Board meeting and development dates. She suggested the Board review the dates
against their personal calendars and reminded them that they will approve the 2011
dates at their December meeting.
Also, Dr. Helm reported that she and Trustee Donohue will attend the final CLASS
Institute on Friday and Saturday in Sacramento and she announced the college will be
closed Friday in observance of Veterans Day.
In closing, Dr. Helm stated that she was fined $100 at Rotary and as a result, she was
given two minutes of bragging rights. So, she proudly bragged that Hartnell had: 1)
increased enrollment by 3, 000 over the past three years, 2) increased FTES by 1,000, 3)
opened new college facilities, 4) increased the success of student athletes and nurses,
and, 5) announced The Western Stage’s successful Gala and their soon to open, A
Mexican Christmas Carol.
HCCD –REGULAR MEETING – NOVEMBER 9, 2010
Page 7 of 13
BOARD
Trustee Taylor thanked all of the presenters this evening – that she is pleased with all of
COMMUNICATIONS what the students are learning; that she attended the Fall Assembly with four senators
and is worried about some of the issues that arose out of that Assembly.
Trustee Padilla Chavez thanked Beverly Grova and her team for the extraordinary
Western Stage Gala; she extended kudos to Dr. Helm for meeting with the South County
Superintendents – that they really appreciated her time; she asked about email addresses
placed on the college website; she thanked Dr. Helm for being pro-active in working
with the Art students, and she asked for an update on the Auto Collision program review
in December.
Trustee Freeman said he would like to see the Art class the students talked about this
evening reinstated and he would like to see the Auto Collision Program back because
the Board received a petition with over 200 signatures even if after completing this
program, the students don’t make a lot of money; that he is proud of the students who
presented this evening and that great things are happening at Hartnell; and since the last
meeting, it has been a sad time with the passing of Lucy Serrano’s brother-in-law, the
passing of a long-time supporter and sports announcer, Jim Silveria – that he spoke in
honor of Mr. Silveria during half-time at the last football game; and that his good friend
and former student of Hartnell, Hank Hughes, recently passed. Trustee Freeman
requested that the Board adjourn in honor of those passed and all Veterans. In closing,
he stated that he is concerned about the overwhelming violence in our community, that
he is privileged and honored to be a trustee and graduate of Sacramento State and he
believes that the college should invite all Salinas elected officials to a summit to help
bring this city together in some way because Hartnell is the largest educational
institution in our community.
Trustee Gonzalez-Castro congratulated Neil Ledford for his excellent presentation –she
stated she is impressed that students, previous students, and members of the advisory
council waited to present to the Board – that it shows their commitment to the college
and to the program. She stated that the science students are amazing because of their
work and because of what they discovered – that it shows the quality of education that is
being taught at Hartnell and that it is impressive. Further, she reported The Western
Stage Gala was an extraordinary event and she commended her fellow council members
for all of their work in helping to set up and decorate and she reported that there were
180 attendees and that it made a profit – she thanked everyone of their support. She
gave an update on the upcoming NALEO visit and thanked Dr. Helm for her support.
She stated this is an opportunity for both Hartnell College and joint partner, Salinas
Union High School District, to showcase what is being done for healthy living within
the community and stated that the coordination of the visit is going well and hopes that
everyone plans to attend; she asked about the college’s memberships to national
organizations for superintendents and trustees. She encouraged the membership to such
organizations and provided membership information. In particular, she shared
information on upcoming conferences sponsored by national organizations and stated
that she encourages and supports training for trustees because it helps them do a better
job as trustees and said she would like to attend an upcoming conference in Washington
D. C. Also, she expressed concern over a grievance related earlier by the student to
which Dr. Helm responded that an update will be provided to the Board and Trustee
Gonzalez-Castro wanted to ensure that the revised minutes from the September meeting
were posted on the website.
HCCD –REGULAR MEETING – NOVEMBER 9, 2010
Page 8 of 13
Trustee DePauw stated that she is proud that Trustee Freeman campaigned for Mayor
and is glad that he will stay because she believes the Board continues to work as a team
and she sees him has an important part of that team. She presented each member and
Dr. Helm a vest with the college logo and statement, that says, “we got juice”. Further,
she stated that she believes the Board is doing good work together.
Trustee Montemayor reported that tonight’s presentations showed the diversity of the
college and that he is impressed with each of them. In particular, though, he
acknowledge the diesel mechanics program because just a few years ago, if a person
wanted to go into this field, they would have to go to Colorado or Arizona to get the
education and training and it’s a huge jump for Hartnell College to be able to offer this
type of program. Also, Trustee Montemayor asked that the Board receive an update on
the comments made by the student related to a grievance.
Trustee Healy stated he is impressed with each of the presentations this evening, which
speaks to diversity. He commended the faculty and students on all of their fine work; he
reported that the Sunrise House had their executive meeting earlier and is pleased to
report that, for the first time ever, every Hartnell athlete signed a drug-free contract and
he commended Coach Teresa for his efforts in this task and asked that the administration
consider developing a policy that requires this happen each year. Trustee Healy stated
the Sunrise House is involved in a program called Birdies for Charity through AT&T
Pro Am and more information on this event is forthcoming. Also, the Sunrise House is
currently soliciting professional attire for their project Teen Closet (ages 18-25) and
Trustee Healy asked Trustee Taylor and the Student Senate to help in any way possible.
Trustee Donohue reported that she attended the Hartnell College Foundation
Scholarship Donor Reception and that the gratitude expressed was tear-jerking. Also,
she attended the naming of the Nursing Program Salinas Valley Memorial Healthcare
System Nursing Education Center and that it was a wonderful celebration between the
College and SVMHS.
RECONVENE
CLOSED SESSION
The Board of Trustees and Dr. Phoebe K. Helm, Superintendent/President reconvened
closed session at 9:40 p.m. to consider legal, personnel, labor, and/or contract matters
authorized for Closed Session per Government Code Sections, 3549.1, 54956.9, 54957
and/or 54957.6. Kent Stephens, Vice President, Support Operations joined the Board during
this portion of the Closed Session.
REPORT OUT
FROM CLOSED
SESSION
Trustee Donohue reported there was no action taken in Closed Session.
ADJOURNMENT
The meeting adjourned at 10:45 p.m.
Patricia Donohue
Board of Trustees President
HCCD –REGULAR MEETING – NOVEMBER 9, 2010
Phoebe K. Helm
Board Secretary
Page 9 of 13
APPENDIX A
THE FOLLOWING PERSONNEL ACTIONS WERE APPROVED AND/OR RATIFIED AT THE
REGULAR MEETING OF THE HARTNELL COLLEGE BOARD OF TRUSTEES OF
NOVEMBER 9, 2010:
I.
Retirements, resignations, releases, and leave requests
A. Ratify resignation of regular personnel:
1. Shannon McCann, MESA Project Coordinator (#CC-29), effective October 25, 2010.
II. Appointments
A. Ratify appointment of regular classified position:
1.
Rosa I. Arreguin De Salinas, part-time, 30 hours per week, 12 months per year, Secretary
– Classified, (#CC-181), High School Equivalency Program, Step A, Range 16, effective
October 6, 2010.
2.
Eva Diaz, part-time, 20 hours per week, 10 months per year, Clerical Assistant –
Classified, (#CC-182), TRIO/Student Affairs Department, Step A, Range 14, effective
October 13, 2010.
3.
Ana Valles, full-time, 40 hours per week, 12 months per year, Financial Aid Technician –
Classified, (#CC-101), Student Affairs, Step E, Range 18, effective October 4, 2010. This
action reflects a transfer from part-time, 30 hours per week, 11 months per year,
Admission & Records Technician – Classified, (#CC-72), Admissions & Records
Department.
4.
Imelda Suarez, part-time, 20 hours per week, 12 months per year, Assessment Technician
– Classified, (CC#-142), Counseling Department, Step D, Range 15, effective October 4,
2010. This action reflects a voluntary return from full-time, 40 hours per week, 12
months per year, Financial Aid Technician – Classified, (#CC-101), Student Affairs.
B. Approve hiring of short-term employee:
1.
Request to hire a Financial Aid Technician, CSEA salary range 18, Step A, at the main
campus as a short-term employee to begin November 10, 2010 and end June 30, 2011, for
the purpose of catching up with the increased workload of financial aid files that need to
be processed at the main campus. This request fits within the definition of short-term
employee in section 88003 of the Education Code and has been discussed with the CSEA.
C. Ratify appointment of part-time instructors for spring semester 2011:
1. Bonnie Bufkin, Learning Skills.
2. Jordan Daniels, Construction.
3. Frank Henderson, Counseling & Instructional Aide.
4. Dustin Jones, English. Appointment based on equivalency as follows: BA in English
from San Diego State University and has completed all coursework (and is near
completion of his thesis) for an MA in English literature and an MA certificate in
composition.
5. Jennifer Keller, Speech. Appointment based on equivalency as follows: BA in
Communications at Regis University, graduate coursework in Public Relations, combined
coursework and work experience equivalent to masters in Speech.
6. Erlinda Manzo-Rodriguez, Nursing.
7. Robin McKee-Williams, Theater Arts.
HCCD –REGULAR MEETING – NOVEMBER 9, 2010
Page 10 of 13
8.
John Perez, Mathematics. Appointment based on equivalency as follows: BS in
Mathematics from San Jose State University and has 12 semester units of graduate level
Math Ed courses, plus 2 additional courses in Education.
9. Erin Saelens, Office Technologies & Team Self-Management/ACE.
10. Prince Williams, Physical Education.
D. Ratify appointment of part-time donated instructors for spring semester 2011:
1.
2.
3.
4.
LaMar Castañeda, Nursing
Jorge Espinas, Nursing
Erlinda Manzo-Rodriguez, Nursing
Michael Stone, Apprenticeship Electrical
E. Ratify appointment of Professional Experts:
The Nursing and Health Sciences Department comprises four programs: Registered Nursing,
Vocational Nursing, Emergency Medical Technician (EMT), and Certified Nursing Assistant.
Lab instruction assistants are required to meet Board of Registered Nursing (BRN)
requirements for specific student-to-certified-instructor ratios. Assignments run August –
December 18, 2010:
1. Derek Bonsper, $30/hr (not to exceed 120 hrs/semester), EMT assistant.
2. Stephanie Kever, $47.86/hr (6 hrs/week), skills lab assistant.
3. Lucas Kohot, $30/hr (not to exceed 120 hrs/semester), EMT assistant.
4. Lisa Kozinski, $30/hr (not to exceed 120 hrs/semester), CPR lab assistant.
5. Bryon Merritt, $30/hr (not to exceed 120 hrs/semester), EMT assistant.
6. Amber Roach, $30/hr (not to exceed 120 hrs/semester), EMT & HES assistant.
7. Melinda Valdez, $47.86/hr (6 hrs/week), skills lab assistant.
Physical Education swim classes require lifeguard services:
8. James Helm, $15/hr (15 hrs/week), lifeguard, August 16, 2010 – June 30, 2011.
9. Weston Kile, $15/hr (6 hrs/week), lifeguard, September 11, 2010 – June 30, 2011.
Hartnell’s theater arts program/The Western Stage (TWS) provides students the opportunity to
learn their craft within a professional context. TWS’ current season runs through December
30, 2010:
10.
11.
12.
13.
Michelle Galindo, $1300 flat rate, musician, September 15 – October 16, 2010.
Jane Orzel, $1300 flat rate, musician, September 15 – October 16, 2010.
Ruben Pulido, $1200 flat rate, musician, September 15 – October 16, 2010.
Ian Shields, $1400 flat rate, musician, September 15 – October 16, 2010.
The Foster Kinship Care Education Program (FKCE) provides advanced training for current
and prospective foster, relative, and non-related extended family member caregivers, adoptive
parents, and local agency employees; and support for foster home recruitment activities. This
grant funded program is a joint effort of the California Community College Chancellor’s
Office and the Department of Social and Employment Services (DSES). Assignments include
orientation leaders, trainers, childcare and activity providers, and program coordination, and
run through June 10, 2012:
HCCD –REGULAR MEETING – NOVEMBER 9, 2010
Page 11 of 13
14. Christina Leon, $13/hr (as needed), ILP-YEDSS mentor, September 20, 2010 – June 10,
2012.
The sustainable design and construction programs need expert, experienced support in
effectively implementing assigned grant activities related to curriculum development, summer
bridge program, and internships, along with associated outreach and events:
15. Violeta Mendoza Wenger, $3000/month, grant support, October 4, 2010 – August 31,
2011.
16. Alice Paipa-Lenard, $4000/month, grant support, October 4, 2010 – August 31, 2011.
The Hartnell Science Talent Expansion Program (STEP) grant provides support for
underrepresented students in a variety of ways, all intended to increase the number of women
and Latinos enrolling and succeeding in math and science courses. One component of this
grant provides for a summer bridge program, titled Summer Undergraduate Mathematics &
Science (SUMS).
17. Kate Lockwood, $1650 flat rate, computer science instructor, June 21 – July 22, 2010.
18. Sathya Narayanan, $1650 flat rate, computer science instructor, June 21 – July 22, 2010.
19. Patrick Yun, $1650 flat rate, biology instructor, June 21 – July 22, 2010.
The High School Equivalency Program (HEP) is funded by the US Department of Education
Office of Migrant Education. HEP is a migrant education program designed to assist migrant
and seasonal field workers obtain their GED and employment, military service, apprenticeship,
Certificate of Skills Acquisition, Certificate of Achievement, or Associates Degree.
20. Leticia Sanchez, $13.52/hr (20 hrs/week), instructional aide, October 1, 2010 – December
30, 2011.
F. Ratify appointment of non-credit Instructors for spring 2011:
1. Paul Doughty, GED language arts reading
G. Ratify appointment of Volunteers:
1. Joseph Callado, Physical Education
2. Ramon Hernandez, Physical Education
H. Ratify appointment of Student Workers for fall semester 2010:
1. Amy Adkins, Child Development Center, Student Worker I
2. Monica Alvarado, Library/Media, Student Worker I
3. Norma Armenta, Child Development Center, Student Worker I
4. Yesemin Arevalo, Computer Lab, Student Worker I
5. Christan Bravo, EOPS Department, Student Worker II
6. Elida Campos, Child Development Center, Student Worker III
7. Maria Carranza, Child Development Center, Student Worker I
8. TJ Combs, Tutorial Center, Student Worker II
9. Carlo Figueroa, Tutorial Center, Student Worker II
10. Joanna Flores, Tutorial Center, Student Worker III
11. Jose Garcia, Art Department, Student Worker I
12. Mei-Hua Guajardo, Computer Lab, Student Worker II
13. Grisel Guerrero, Student Affairs, Student Worker III
14. Lucy Guido, Tutorial Center, Student Worker III
15. Juan Gutierrez, Art, Student Worker I
HCCD –REGULAR MEETING – NOVEMBER 9, 2010
Page 12 of 13
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
Rachel Heavin, Physical Education, Student Worker III
Jose Hinojosa, MESA, Student Worker III
Elizabeth Izquierdo, High School Equivalency Program, Student Worker I
Amy Jurado, Child Development Center, Student Worker I
Alexandra Kastner, Cafeteria, Student Worker I
Ashley Landess, Human Resources/EEO, Student Worker I
Aaron Lopez, East Salinas GEARUp, Student Worker III
Evangelina Martinez-Quiroz, Art, Student Worker I
Anabel McCarter, EOPS, Student Worker II
Ana Medrano, Cafeteria, Student Worker I
Cathleen Miché, Business Office, Student Worker III
Juan Morales, Tutorial Center, Student Worker II
Monica Navarro, Student Affairs, Student Worker III
Estefania Palacios Pacheco, Child Development Center, Student Worker I
Eliana Perez, Tutorial Center, Student Worker I
Alicia Prado, Human Resources/EEO, Student Worker I
Adriana Rivera, Child Development Center, Student Worker III
Mary Rubio, Computer Lab, Student Worker II
Erica Soler, Child Development Center, Student Worker I
Xuliang Tan, Art, Student Worker I
Alana Tsue, Library/AV, Student Worker II
Jose Urquizo, Maintenance/Warehouse, Student Worker I
Samantha Villafuerte, Tutorial Center, Student Worker II
HCCD –REGULAR MEETING – NOVEMBER 9, 2010
Page 13 of 13
AGENDA ITEM FOR BOARD MEETING OF:
December 7, 2010
Title
Ratify Disbursements of District Funds
Number
Area
Office of Support Operations
Prepared by: Kent Stephens
Status
Consent
VII. B.
Recommendation
It is recommended that the Board of Trustees ratifies the disbursements from District accounts.
Summary
The attached lists of disbursements from District accounts are presented for ratification.
COUNTY WARRANTS
Any or all of the following funds:
General; Debt Service; Bookstore; Child Development Center; Capital Outlay; Scheduled
Maintenance/State-Funded Projects; Property Acquisition; Bond Projects; Cafeteria;
Self-Insurance; Retirees’ Health Benefits; Associated Student Body; Scholarship, Loan,
and Trust; and Intercollegiate Athletics
NO OF
DATE
WARRANT NUMBER
WARRANTS
AMOUNT
10/04/10
12815211
12815277
67
$178,785.07
10/13/10
12817121
12817256
136
$995,504.51
10/18/10
12818018
12818076
59
$113,677.64
10/27/10
12819963
12820020
58
$18,072.90
Subtotal
$1,306,040.12
Note: Legal fees in above summary total $0.00
CHECKING ACCOUNTS
General Fund Revolving
DATE
October 2010
WARRANT NUMBER
10232
10242
NO OF
WARRANTS
11
AMOUNT
$25,046.00
$25,046.00
Total
Budget Implication
None
$1,331,086.12
AGENDA ITEM FOR BOARD MEETING OF: December 7, 2010
Title
Number
VII. C.
Ratify the Recommendations from the
Curriculum Committee
Area
Status
Office of Academic Affairs
Prepared by: Suzanne Flannigan
Consent
Recommendation
It is recommended that the Board of Trustees ratifies the recommendations from the Curriculum
Committee.
Summary
The following actions were reviewed by faculty in the disciplines, approved by the Curriculum
Committee which is a standing committee of the Academic Senate:
NEW COURSES—2 Courses
DAN 7, Dance Appreciation
(Units: 3, Time Allocation: 3 Lec Hours)
RTV 79, Broadcast Video and Television Production
(Units: 3, Time Allocation: 2 Lec Hours, 3 Lab Hours)
COURSE REVISIONS—27 Courses
Changed course description and updated outline:
AOD 99, Practicum in Chemical Dependency
BUS 131, Business English
CSS 31, Database Management
DRA 64, Industrial Print Reading
ECE 16, Preschool Curriculum: Music
ECE 17, Preschool Curriculum: Movement
Updated outline:
AST 1, Introduction to Astronomy
ENG 1A, College Composition and Reading
ENG 1B, College Literature and Composition
Updated textbook:
CSS 169, Computer Maintenance and Repair
GOVERNING BOARD MEETING
December 7, 2010
Page 2
COURSE REVISIONS (continued)
Changed discipline from CON to CONS, changed course description, course number,
updated outline, and 1 title change:
CONS 152, Advance Field Practice in Construction-title to Construction Field Practice
CONS 125, Green Building Materials and Methods
CONS 129, Managing Offsite Impacts of Construction
CONS 130 Highway and Heavy Construction
Changed description only, to clarify corequisites:
PEAC 37, Intermediate Baseball
PEAC 42, Hydro-Fitness
PEAC 43, Strength Training
PEAC 44, Water Jogging
PEAC 46, Circuit Endurance Training
PEAC 47, Strength Training Lab
PEAC 49, Aerobic Strength Conditioning
PEAC 52, Volleyball
PEAC 58, Beginning Tennis
PEAC 59, Intermediate Tennis
PEAC 60, Advanced Tennis
PEAC 69, Introduction to Weight Training
PEAC 74, Advanced Volleyball
INACTIVE COURSES—8 Courses
The following CSS courses lack sufficient enrollment and resources:
CSS 12, Systems Analysis and Design
CSS 170B, Supporting Windows Networks
CSS 3, Computer Architecture and Assembly Language Programming
CSS 32, SQL and PL/SQL Programming
CSS 33A, Database Architecture and Administration
CSS 33B, Database Maintenance
CSS 34, Database Forms and Reports
CSS 6, Programming in Visual Basic
DELETED COURSES—14 Courses
The following courses are cross-listed with Business application courses and are taught in
Business:
CSS 148.1, Adaptive Computer Keyboarding
CSS 148.2, Adaptive Word Processing
CSS 148.3, Adaptive Internet Literacy
CSS 150.15, Word Processing
CSS 150.15A, Word Processing Level I
CSS 150.15B, Word Processing Level II
GOVERNING BOARD MEETING
December 7, 2010
Page 3
DELETED COURSES (continued)
CSS 150.25, Electronic Spreadsheets
CSS 159.15A, Word Processing-Module I
CSS 159.15B, Word Processing Module II
CSS 200, Computer Skills Acquisition Lab
CSS 201.1, Introduction to the Computer Center
CSS 201.2, Introduction to the Computer Center and the Internet
CSS 210.48, Computer and Information Literacy Lab
CON 120, Introduction to Green Building
Budget Implication
None
AGENDA ITEM FOR BOARD MEETING OF:
Title
December 7, 2010
Number
Authorize to amend contract between
Vicenti, Lloyd & Stutzman, LLP and
Hartnell College for auditing services for
fiscal year 2010-2011
VII. D.
Area
Status:
Office of Support Operations
Prepared by: Kent G. Stephens
Consent
Recommendation
It is recommended that the Board of Trustees authorizes to amend the contract with Vicenti,
Lloyd & Stutzman, LLP, independent auditing firm, for financial auditing services through
June 30, 2011. The contract will be extended for one year at a cost of $115,810 which
represents a 7% increase over the prior years.
Summary
Education Code § 84040 requires that each community college district provide for an audit of
the books and accounts of the District. The audits must be made by a certified public
accountant or a public accountant licensed by the State Board of Accountancy.
Background
In fall 2007, after more than 10 years with the prior auditor, the District advertised a Request
for Qualifications (RFQ) for an audit firm to conduct district audits in compliance with
Education Code § 84040. Proposals were screened and three firms were interviewed by the
Audit Committee of the Board, the Superintendent/President, and Controller. Vicenti, Lloyd,
& Stutzman, LLP, were selected in 2008 and awarded a three-year contract. This amendment
provides for a one-year extension and an increase in fees of approximately seven percent (7%).
Budget Implications
Cost for the annual audits will be shared between the Foundation, Measure H bond funds, and
the general fund for 2010-2011. Budget impact will be in 2011-12 fiscal year for a total
expense of $115,810.
AGENDA ITEM FOR BOARD MEETING OF: December 7, 2010
Title
Number
VII. E.
Personnel Actions
Area
Human Resources & Equal Employment
Opportunity
Status
Consent
Prepared by: Terri Pyer
Recommendation
It is the recommendation that the Board of Trustees approves and/or ratifies the personnel actions as
listed below:
Summary
Approval of:
1
release of regular CSEA employee due to layoff
Ratification of:
3 appointments of regular classified positions
1 appointment of temporary faculty position
1 part-time instructor hire for fall semester 2010
4 donated part-time instructors for spring semester 2011
5 appointments of professional experts
9 student worker hires for fall semester 2010
Detail
I. Retirements, resignations, releases, and leave requests
A. Approve release of regular personnel:
1.
Ligia Polio, Financial Aid Technician (#CC-62), effective January 22, 2011, due to
layoff, and placement on 39-month re-employment list in accordance with Education
Code § 88117. This layoff is due to lack of work in King City.
II. Appointments
A. Ratify appointments of regular classified positions:
1.
Brenda M. Thrasher, part-time, 20 hours per week, 12 months per year, Accounting
Assistant – Classified, (#CC-12), Range 21, Step A, effective November 8, 2010.
2.
Silvina Zepeda, full-time, 40 hours per week, 12 months per year, DSPS Specialist –
Classified, (#CC-90), Range 32, Step A, effective November 10, 2010. This action
represents a promotion from DSPS Clerical Assistant (#CC-91), full-time, 40 hr/week.
3.
Andrea Curtis, full-time, 40 hours per week, 12 months per year, Division
1
AGENDA ITEM FOR BOARD MEETING OF: December 7, 2010
Administrative Assistant – Classified, (#CC-165), Student Affairs, Range 22, Step A,
effective November 18, 2010.
B. Ratify appointment of full-time temporary academic personnel:
1.
Timothy Castellano, full-time temporary Astronomy Instructor – Math & Science,
Step 8, Column E, effective January 20, 2011. This appointment is for the spring 2011
semester, as a leave replacement.
C. Ratify appointment of part-time instructor for fall semester 2010:
1.
Byron Merritt, Health Services.
D. Ratify appointment of Professional Experts:
Hartnell’s theater arts program/The Western Stage (TWS) provides students the opportunity
to learn their craft within a professional context. TWS’ current season runs through
December 30, 2010.
1.
Lorenzo Aragon, $3000 flat rate, phase 1 development & teaching for new Theater
Arts program at the Alisal Center, September 21 – December 10, 2010.
Provide contract training demos for King City Union School District employees:
2.
Janet Bessemer, $60/hr (4 hrs), trainer, October 19, 2010.
Through the CCRAA HIS sub-award, the objective of this grant is to increase the number of
transfer students and the retention and graduation rates to CSU - Monterey Bay in the
science technology, engineering, and math majors.
3.
Chante Davis, $1363.63/mo. (not to exceed $15,000), liaison, October 1, 2010 –
September 30, 2011.
To provide assistance in mentoring students, creating and implementing education plans,
coordinating work of science and math intern grant programs.
4.
Patrick McNeil, $25/hr (20 hrs/week), program assistant, October 12, 2010 – March
31, 2011.
The mission of GEAR Up is to increase the number of Alisal High School students who are
prepared to enter and succeed in post-secondary education. It gives more low-income
students the academic skill, psychosocial support services, information and financial
assistance needed to enter, pursue, and succeed in college.
5.
Jaime Diaz, $15/hr (30hrs/week), family liaison, October 11 – June 30, 2011.
2
AGENDA ITEM FOR BOARD MEETING OF: December 7, 2010
E. Ratify appointment of Student Workers for fall semester 2010:
1.
Sherri Boyd, Child Development Center, Student Worker I
2.
Stephanie Castro, East Salinas GEARUp, Student Worker III
3.
David Gonzalez, East Salinas GEARUp, Student Worker III
4.
Juan Hernandez Villarruel, Tutorial Center, Student Worker II
5.
Evelyn Meza, Human Resources/EEO, Student Worker I
6.
Mario Nunez, East Salinas GEARUp, Student Worker III
7.
Angel Ramos, East Salinas GEARUp, Student Worker III
8.
Carolina Suarez, East Salinas GEARUp, Student Worker III
9.
Ivan Vega, King City Education Center, Student Worker I
3
ACTION ITEMS
AGENDA ITEM FOR BOARD MEETING OF:
Title
December 7, 2010
Number
Accept the Independent Accountants’
Audit Reports for the Fiscal Year Ended
June 30, 2010
VIII. A.
Area:
Status:
Office of Support Operations
Prepared by: Kent G. Stephens
Action
Recommendation
It is recommended that the Board of Trustees accepts the annual Audit Reports for fiscal year
ended June 30, 2010.
Summary
The attached Audit Reports for the fiscal year ended June 30, 2010 was reviewed by the Ad hoc
Board Committee, the Audit Committee of the Foundation, and the Bond Oversight
Committee. Auditors will be available to answer questions, also.
The Audit Reports for 2009-2010 include all funds: 1) General (restricted and unrestricted) 2)
Hartnell College Foundation, and 3) Measure H Capital Bond Funds. In addition to the
financial audits, a Performance Audit of Measure H was conducted and reported in compliance
with Article 13 (A) Section 1 (C) of the California Constitution.
The audit reports will be submitted to the Chancellors Office, the Accrediting Commission, and
placed on the college’s website. The Financial and Performance Audits for Measure H funds
will be placed on the website for the Bond Oversight Committee, as well.
Budget Implications
None
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
MONTEREY COUNTY
REPORT ON
AUDIT OF FINANCIAL STATEMENTS
AND SUPPLEMENTARY INFORMATION
INCLUDING REPORTS ON COMPLIANCE
June 30, 2010
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
AUDIT REPORT
June 30, 2010
CONTENTS
Page
INDEPENDENT AUDITORS’ REPORT
MANAGEMENT’S DISCUSSION AND ANALYSIS ...............................................
i-vii
BASIC FINANCIAL STATEMENTS:
Statements of Net Assets.............................................................................................
Statements of Revenues, Expenses and Changes in Net Assets .................................
Statements of Cash Flows ...........................................................................................
Statements of Fiduciary Net Assets ............................................................................
Statements of Changes in Fiduciary Net Assets .........................................................
1
2
3-4
5-6
7
DISCRETELY PRESENTED COMPONENT UNIT – HARTNELL COLLEGE
FOUNDATION:
Statements of Financial Position .................................................................................
Statements of Activities ..............................................................................................
Statements of Cash Flows ...........................................................................................
8
9-10
11
NOTES TO FINANCIAL STATEMENTS .................................................................
12-42
REQUIRED SUPPLEMENTARY INFORMATION:
Schedule of Postemployment Healthcare Benefits Funding progress ........................
Notes to Required Supplementary Information ..........................................................
43
44
SUPPLEMENTARY INFORMATION:
History and Organization ............................................................................................
Schedule of Expenditures of Federal Awards .............................................................
Schedule of State Financial Assistance - Grants .........................................................
Schedule of Workload Measures for State General Apportionment Annual
(Actual) Attendance ...............................................................................................
Reconciliation of Annual Financial and Budget Report with Audited
Fund Balances ........................................................................................................
Schedule of Financial Trends and Analysis ................................................................
Notes to Supplementary Information ..........................................................................
45
46-47
48
49
50
51
52
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
AUDIT REPORT
June 30, 2010
CONTENTS
Page
OTHER INDEPENDENT AUDITORS’ REPORTS:
Report on Internal Control over Financial Reporting and on Compliance and Other
Matters Based on an Audit of Financial Statements Performed in Accordance
with Government Auditing Standards ....................................................................
Report on Compliance with Requirements Applicable to Each Major Program and
on Internal Control over Compliance in Accordance with OMB Circular A-133 .
Report on State Compliance .......................................................................................
55-56
57-59
FINDINGS AND RECOMMENDATIONS:
Schedule of Findings and Questioned Costs – Summary of Auditor Results .............
Schedule of Findings and Questioned Costs Related to Financial Statements ...........
Status of Prior Year Findings and Questioned Costs ..................................................
60
61
62-68
53-54
DRAFT for Discussion Purposes Only
INDEPENDENT AUDITORS' REPORT
The Board of Trustees
Hartnell Community College District
411 Central Avenue
Salinas, California 93901
We have audited the accompanying basic financial statements of the Hartnell Community College District,
including its discretely presented component unit, as of and for the year ended June 30, 2010 and 2009 as
listed in the table of contents. These financial statements are the responsibility of the District's
management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the basic financial statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the overall basic financial
statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements listed in the aforementioned table of contents present fairly, in all
material respects, the financial position of the Hartnell Community College District as of June 30, 2010 and
2009, and the results of its operations, changes in net assets and cash flows for the fiscal years then ended
in conformity with accounting principles generally accepted in the United States of America.
As discussed in Note 14 to the financial statements, certain errors in reporting capital assets were
discovered during the 2009 year. Accordingly, the 2009 beginning net assets have been restated to correct
the error.
In accordance with Government Auditing Standards, we have also issued our report dated November 17,
2010 on our consideration of the Hartnell Community College District's internal control over financial
reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant
agreements and other matters. The purpose of that report is to describe the scope of our testing of internal
control over financial reporting and compliance and the results of that testing, and not to provide an opinion
on the internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards and should be considered in assessing the
results of our audit.
DRAFT for Discussion Purposes Only
Board of Trustees
Hartnell Community College District
Accounting principles generally accepted in the United States of America require that the required
supplementary information such as management’s discussion and analysis, and the schedule of funding
progress be presented to supplement the basic financial statements. Such information, although not a part
of the basic financial statements, is required by the Governmental Accounting Standards Board, who
considers it to be an essential part of financial reporting for placing the basic financial statements in an
appropriate operational, economic, or historical context. We have applied certain limited procedures to the
required supplementary information in accordance with auditing standards generally accepted in the United
States of America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management’s responses to our inquiries,
the basic financial statements, and other knowledge we obtained during our audit of the basic financial
statements. We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Our audits were conducted for the purpose of forming an opinion on the Hartnell Community College
District’s financial statements as a whole. The supplementary schedules are presented for purposes of
additional analysis and are not a required part of the financial statements. The accompanying schedule of
expenditures of federal awards is presented for purposes of additional analysis as required by U.S. Office of
Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit
Organizations, and is also not a required part of the financial statements of Hartnell Community College
District. The supplementary section, including the schedule of expenditures of federal awards are the
responsibility of management and were derived from and relate directly to the underlying accounting and
other records used to prepare the financial statements. The information has been subjected to the auditing
procedures applied in the audit of the financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other records used to
prepare the financial statements or to the financial statements themselves, and other additional procedures
in accordance with auditing standards generally accepted in the United States of America. In our opinion,
the information is fairly stated in all material respects in relation to the financial statements as a whole.
VICENTI, LLOYD & STUTZMAN LLP
November 17, 2010
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
MANAGEMENT’S DISCUSSION AND ANALYSIS
Fiscal Year Ending June 30, 2010
USING THIS ANNUAL REPORT
In accordance with generally accepted accounting principles, the annual report consists of three basic
financial statements that provide information on Hartnell Community College District's (the District)
activities as a whole: the Statement of Net Assets; the Statement of Revenues, Expenses, and Changes in
Net Assets; and the Statement of Cash Flows.
The focus of the Statement of Net Assets is designed to show the financial position of the District. This
statement combines and consolidates current financial resources (net short-term spendable resources) with
capital assets and long-term obligations. The Statement of Revenues, Expenses, and Changes in Net Assets
focuses on the costs of the District's operational activities, which are supported mainly by property taxes
and State revenues. This approach is intended to summarize and simplify the user's analysis of the costs of
various District services to students and the public. The Statement of Cash Flows provides an analysis of
the sources and uses of cash within the operations of the District.
The Western Stage Auxiliary Corporation was a legally separate organization that was a component unit of
the District through December 31, 2008. The corporation was dissolved on December 31, 2008. The
financial activity for the period ending December 31, 2008 has been consolidated within the financial
statements of the District. Separate audited financial statements can be obtained through the District’s
Office of Support Operations.
Responsibility for the completeness and accuracy of this information rests with the District management.
FINANCIAL HIGHLIGHTS

The District's primary funding source is based upon apportionment received from the State of
California. The primary basis of this apportionment is the calculation of Full-Time Equivalent
Students (FTES). During the 2009-10 fiscal year, FTES were 7,373 as compared to 7,624 in the
2008-09 fiscal year. Of the total FTES generated, 6,819 were funded in 2009-10 and 7,083 were
funded in 2008-09.

During the 2009-10 fiscal year, the District provided over $8.9 million in financial aid to students.
This aid was provided in the form of grants, scholarships, loans, and tuition discounts funded
through the Federal government, State Chancellor's Office, and local funding.

The District passed $131 million in general obligation bonds in November 2002 for the
construction and renovation of buildings and equipment throughout the District. These projects
were approved by the voters within the District's boundaries and will be completed over the next
ten years or so. The first series of $35 million was issued in April 2003. The second series of
$35 million was issued in June 2006. The third series of $12.6 million was issued in May 2009,
proceeds were received in June 2009. The fourth series of $48.4 million was issued in August
2009. Proceeds were received in October 2009
-i-
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
MANAGEMENT’S DISCUSSION AND ANALYSIS
Fiscal Year Ending June 30, 2010
FINANCIAL ANALYSIS OF THE DISTRICT AS A WHOLE
NET ASSETS as of June 30,
(Amounts in thousands)
2010
2009*
ASSETS
Current Assets
Cash and investments
Accounts receivable, net
Other current assets
$ 13,273
9,653
72
Total Current Assets
Restricted cash and other non-current assets
Capital Assets, net
$
22,998
71,496
124,911
Total Assets
LIABILITIES
Current Liabilities
Accounts payable, accrued liabilities
and other current liabilities
Current portion of long-term obligations
Total Current Liabilities
Long-Term Obligations
10,344
14,487
134
24,965
34,875
104,788
$ 219,405
$
164,628
$
$
11,513
1,660
9,184
1,908
11,092
131,782
13,173
82,334
142,874
95,507
NET ASSETS
Invested in capital assets
Restricted
Unrestricted
54,272
11,159
11,100
55,081
6,864
7,176
Total Net Assets
76,531
69,121
Total Liabilities
Total Liabilities and Net Assets
$ 219,405
$
164,628
*Certain reclassifications have been made to conform to the 2010 presentation.
This schedule has been prepared from the District's Statement of Net Assets (page 1), which is presented on
an accrual basis of accounting whereby assets are capitalized and depreciated.
Cash and short-term investments consist primarily of funds held in the Monterey County Treasury. The
changes in the cash position are explained in the Statement of Cash Flows (pages 3-4).
Unrestricted net assets are composed of reserves for self-insurance, retiree health benefits, bookstore and
cafeteria reserves, and general reserves for the ongoing financial health of the District.
-ii-
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
MANAGEMENT’S DISCUSSION AND ANALYSIS
Fiscal Year Ending June 30, 2010
There were substantial changes in ending balances from prior fiscal year to current fiscal year. Accounts
receivable, net was reduced by $4.8 million. This reduction was primarily due to receiving state funds for
capital outlay costs generated in 2008-09 fiscal year. The reduction in other current assets is due to a
reduction in prepaid expenditures prior to fiscal year-end June 30, 2010. Capital assets, net increased due
to the completion of various construction projects. A large part of the increase was due to completion of
the Center for Assessment and Lifelong Learning (CALL) building.
Operating Results for the Year Ended June 30,
(Amounts in thousands)
2010
2009
Operating Revenues
Tuition and fees
Grants and contracts
Auxiliary sales and charges
$
Total Operating Revenues
Operating Expenses
Salaries and benefits
Supplies, other operating expenses, and financial aid
Depreciation
Total Operating Expenses
Loss on Operations
Nonoperating Revenues and (Expenses)
State apportionments
Property taxes
State revenues
Interest income (loss)
Other nonoperating revenues
and (expenses)
Total Nonoperating Revenue
and (Expenses)
Other Revenues, Expenses, Gains and Losses
State and local capital income
Interest income (loss), Capital
Interest expenses and losses
Total Revenues, Expenses, Gains
and Losses
Increase in Net Assets
$
2,300
19,856
536
$
2,395
16,961
1,755
22,692
21,111
30,648
18,759
3,395
35,301
20,486
2,365
52,802
58,152
(30,110)
(37,041)
14,991
22,880
972
208
14,402
24,193
915
(58)
2
185
39,053
39,637
2,717
1,013
(5,262)
10,350
(809)
(3,715)
(1,532)
5,826
7,411
$
8,422
This schedule has been prepared from the Statement of Revenues, Expenses, and Changes in Net Assets
presented on page 2.
Auxiliary sales and charges consist of cafeteria revenues. The operations are self-supporting.
-iii-
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
MANAGEMENT’S DISCUSSION AND ANALYSIS
Fiscal Year Ending June 30, 2010
Grant and contract revenues relate to student financial aid, as well as specific Federal and State grants
received for programs serving the students of the District. These grant and program revenues are restricted
as to the allowable expenses related to the programs.
In 2008-09 the District had a negative balance in interest income. This was the result of the write-off of
Washington Mutual and Lehman Brothers Investments held by Monterey County Treasurer. A portion of
this loss was recovered in fiscal year 2009-10. The District recovered $274,837 in fiscal year 2009-10.
The District is recording the depreciation expense related to capital assets. The detail of the changes in
capital assets for the year is included in the notes to the financial statements as Note 5.
The Statement of Cash Flows provides information about cash receipts and payments during the year. This
statement also assists users in assessing the District's ability to meet its obligations as they come due and its
need for external financing.
Statement of Cash Flows for the Year Ended June 30,
(Amounts in thousands)
2010
2009
Cash Provided by (Used in)
Operating activities
Noncapital financing activities
Capital financing activities
Investing activities
$ (28,746)
35,952
33,607
(1,810)
Net (Decrease) in Cash
Cash, Beginning of Year
39,003
43,878
Cash, End of Year
$ 82,881
$ (33,069)
38,803
(7,216)
(5,515)
(6,997)
50,875
$ 43,878
The primary operating receipts are student tuition and fees and Federal, State, and local grants and
contracts. The primary operating expense of the District is the payment of salaries and benefits to faculty
and staff.
While State apportionment and property taxes are the primary sources of noncapital related revenue, GASB
accounting standards require that this source of revenue is shown as non-operating revenue because it
comes from the general resources of the State and not from the primary users of the District’s programs and
services. The District depends upon this funding as the primary source of funds to continue the current
level of operations.
Capital financing activities increased substantially due to bond issue Series D during the current fiscal year.
The Series D was approximately $48.4 million.
-iv-
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
MANAGEMENT’S DISCUSSION AND ANALYSIS
Fiscal Year Ending June 30, 2010
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
At June 30, 2010, the District had $124.9 million in a broad range of capital assets, including land,
buildings, and furniture and equipment, net of depreciation. At June 30, 2009, net capital assets
were $104.8 million. The District is currently in the middle of a major capital improvement project with
construction ongoing throughout the District. These projects are funded primarily through local and state
general obligation bonds.
The majority of our West campus property was purchased in 1936 and 1954 from the U.S. Government.
The Alisal campus property was purchased for $1 from the U.S. Government in 1948. Capital assets
reported within these financial statements reflect the cost at the time of purchase. Current market values of
our property are not reflected in the financial statements.
Several capital projects are planned for the 2010-11 year with funding through the general obligation bonds
and the State of California
Land and construction in progress
Buildings and improvements
Furniture and equipment
$
Subtotal
Accumulated depreciation
(Amounts in thousands)
2010
2009
39,614
$
32,370
110,398
94,384
8,813
8,553
158,825
33,914
Totals
$
-v-
124,911
135,307
30,519
$
104,788
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
MANAGEMENT’S DISCUSSION AND ANALYSIS
Fiscal Year Ending June 30, 2010
Long-Term Obligations
At the end of the 2009-10 fiscal year, the District had $133 million in bonds outstanding from the voter
approved general obligation bonds and other long-term obligations. These bonds will be repaid annually
through property taxes on assessed property within the Hartnell Community College District boundaries.
The lease revenue bonds issued to fund construction of the King City Education Center building in King
City were defeased in December 2009.
General obligation bonds
Premium on obligations
Early retirement incentive
Other post employment benefits
$
Totals
$
(Amounts in thousands)
2010
2009
128,227
$
78,857
4,729
4,422
601
601
115
133
133,690
$
83,995
District bond ratings have changed as more debt has been issued and property values have declined in
recent years. The rating from Moody’s Investors Service has been downgraded from a rating of Aaa in
2006 to a rating of A1 in August 2009. The Standard & Poor’s rating has also been downgraded from
AAA to AA- during the same period.
-vi-
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
MANAGEMENT’S DISCUSSION AND ANALYSIS
Fiscal Year Ending June 30, 2010
ECONOMIC FACTORS AFFECTING THE FUTURE OF HARTNELL COMMUNITY COLLEGE
DISTRICT
The economic position of Hartnell Community College District is closely tied to the State of California as
State apportionments and property taxes allocated to the District represent approximately 55 percent of the
total sources of revenues received by the District. The District is aligning its course offerings with the
reduction of workload measures as issued by the Chancellor’s Office.
The State of California is still currently in a precarious financial condition due to the nationwide recession
and the mortgage, real estate, banking and unemployment crisis. The State budget for fiscal year 2009-10
provided a reduction for California community colleges of over $800 million by reducing categorical
programs funding levels and reducing FTES base funding. In fiscal year 2010-11 the State funding level
did not change from prior fiscal year.
The District issued $35 million in general obligation bonds in April 2003 to fund various construction
projects throughout the District. The District issued a second series of general obligation bonds in June
2006, a third series in June 2009, and a fourth series in September 2009. All bonds, related to the 2002
Measure H election, have been issued as of September 2009. The major projects outstanding are the Center
for Advanced Technology, the College Center renovation, the Physical Education renovation, the Northeast
Quad landscaping project, the Classroom Administration Building renovation, and the Science Building.
At the time the budget was developed, the following assumptions were made:

The 2010-11 State budget for community colleges contains no Cost of Living Allowance (COLA)
increase.

The 2010-11 State budget for community colleges contains no increase in funding for student
growth.

The 2010-11 State budget for community colleges contains no change in categorical funding from
the previous year.

The Districts 2010-11 adopted budget reflects a State apportionment deficit of 3% over previous
year in anticipation of continued State revenue shortfall.
CONTACTING THE DISTRICT'S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, students, and investors and creditors
with a general overview of the District's finances and to show the District's accountability for the money it
receives. Questions may be directed to the Vice President for Support Operations, Hartnell Community
College District, 411 Central Avenue, Salinas, CA 93901.
-vii-
DRAFT for Discussion Purposes Only
BASIC FINANCIAL STATEMENTS
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
STATEMENTS OF NET ASSETS
June 30, 2010 and 2009
2010
ASSETS
Current Assets:
Cash and cash equivalents
Investments in local agency investment fund
Accounts receivable, net
Inventory
Prepaid expenses
Total Current Assets
$
Non-Current Assets:
Restricted cash and cash equivalents
Capitalized fees
Capital assets, net of accumulated depreciation
Total Non-Current Assets
TOTAL ASSETS
13,035,537
237,340
9,653,203
14,202
57,252
22,997,534
2009
$
10,113,054
231,079
14,486,848
18,034
115,610
24,964,625
69,846,201
1,650,318
124,910,699
196,407,218
33,765,517
1,109,787
104,787,889
139,663,193
$ 219,404,752
$ 164,627,818
$
$
LIABILITIES
Current Liabilities:
Short-term borrowing
Accounts payable
Accrued liabilities
Accrued interest payable
Due to fiduciary funds, net
Deferred revenue
Early retirement incentive
Bonds payable
Total Current Liabilities
106,919
4,753,575
1,065,463
654,895
112,562
2,490,230
83,335
1,825,000
11,091,979
2,117,418
4,833,924
1,301,230
659,208
12,642
2,588,537
1,660,000
13,172,959
Non-Current Liabilities:
Other postemployment benefits other than pensions (OPEB)
Early retirement incentive
Bonds payable
Total Non-Current Liabilities
132,820
517,216
131,131,502
131,781,538
115,017
600,551
81,618,977
82,334,545
TOTAL LIABILITIES
142,873,517
95,507,504
54,272,506
55,080,882
6,964,736
3,410,882
783,424
11,099,687
2,856,291
3,124,581
882,954
7,175,606
76,531,235
69,120,314
$ 219,404,752
$ 164,627,818
NET ASSETS
Invested in capital assets, net of related debt
Restricted for:
Capital projects
Debt service
Other special purposes
Unrestricted
TOTAL NET ASSETS
TOTAL LIABILITIES AND NET ASSETS
See the accompanying notes to the financial statements.
-1-
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
For the Fiscal Years Ended June 30, 2010 and 2009
2010
OPERATING REVENUES
Tuition and fees (gross)
Less: Scholarship discounts and allowances
Net tuition and fees
Grants and contracts, non-capital:
Federal
State
Local
Sales
$
2009
4,308,296
(2,007,884)
2,300,412
$
3,758,958
(1,364,255)
2,394,703
13,771,207
4,504,259
1,580,499
535,716
10,678,865
5,038,073
1,244,268
1,755,179
22,692,093
21,111,088
22,966,059
7,682,398
25,824,642
9,476,306
8,557,994
8,987,127
1,213,935
3,394,757
12,331,352
6,888,898
1,265,361
2,365,126
52,802,270
58,151,685
(30,110,177)
(37,040,597)
NON-OPERATING REVENUES (EXPENSES)
State apportionments, non-capital
Local property taxes
State taxes and other revenue
Interest and investment income (loss), non-capital
Other non-operating revenues
Transfer to agency fund
Transfer to foundation
14,991,470
22,880,276
972,127
208,109
113,564
(111,965)
14,402,203
24,193,011
914,437
(57,738)
222,937
(13,741)
(24,301)
TOTAL NON-OPERATING REVENUES (EXPENSES)
39,053,581
39,636,808
8,943,404
2,596,211
OTHER REVENUES, EXPENSES, GAINS AND LOSSES
State apportionments, capital
Interest and investment income (loss), capital
Interest expense on capital asset-related debt
2,717,185
1,012,650
(5,262,318)
10,349,839
(808,877)
(3,715,213)
TOTAL OTHER REVENUES, EXPENSES, GAINS AND LOSSES
(1,532,483)
5,825,749
7,410,921
8,421,960
69,120,314
58,370,600
TOTAL OPERATING REVENUES
OPERATING EXPENSES
Salaries
Employee benefits
Supplies, materials, and other operating
expenses and services
Financial aid
Utilities
Depreciation
TOTAL OPERATING EXPENSES
OPERATING LOSS
INCOME BEFORE OTHER REVENUES, EXPENSES, GAINS AND LOSSES
INCREASE IN NET ASSETS
NET ASSETS, BEGINNING OF YEAR, AS ORIGINALLY STATED
Adjustment for restatement (see note 14 - pg 41)
NET ASSETS, BEGINNING OF YEAR, AS RESTATED
NET ASSETS, END OF YEAR
$
See the accompanying notes to the financial statements.
-2-
-
2,327,754
69,120,314
60,698,354
76,531,235
$
69,120,314
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
STATEMENTS OF CASH FLOWS
For the Fiscal Years Ended June 30, 2010 and 2009
2010
CASH FLOWS FROM OPERATING ACTIVITIES
Tuition and fees
Federal grants and contracts
State grants and contracts
Local grants and contracts
Sales
Payments to suppliers
Payments to/on-behalf of employees
Payments to/on-behalf of students
Net amounts due to (from) fiduciary funds
$
2,940,783
13,664,638
3,698,208
1,059,637
695,791
(11,327,738)
(30,478,287)
(8,987,127)
(12,045)
2009
$
2,404,380
9,261,289
5,946,772
2,498,121
842,510
(12,971,352)
(34,126,963)
(6,888,898)
(34,711)
(28,746,140)
(33,068,852)
11,714,562
22,903,301
1,334,629
13,544,298
24,222,802
1,036,362
35,952,492
38,803,462
931,746
10,740,254
(21,935,854)
48,405,079
(4,534,716)
7,538
8,131,454
(21,184,388)
12,597,888
(6,768,266)
33,606,509
(7,215,774)
200,805
(2,010,499)
(610,380)
(4,905,369)
(1,809,694)
(5,515,749)
NET CHANGE IN CASH AND CASH EQUIVALENTS
39,003,167
(6,996,913)
CASH BALANCE, BEGINNING OF YEAR
43,878,571
50,875,484
Net cash used by operating activities
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
State apportionments and receipts
Property taxes
State tax and other revenues
Net cash provided by non-capital financing activities
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Interest received on capital debt
State apportionment for capital purposes
Purchases of capital assets
Issuance of capital debt
Principal and interest paid on capital debt
Net cash provided (used) by capital and related financing activities
CASH FLOWS FROM INVESTING ACTIVITIES
Net investment activity
Net change in short-term borrowings
Net cash used by investing activities
CASH BALANCE - End of Year
Cash balances at June 30, 2010 and 2009 consisted of the following:
Cash and cash equivalents
Restricted cash and cash equivalents
Total cash balances
$
82,881,738
$
43,878,571
$
13,035,537
69,846,201
82,881,738
$
10,113,054
33,765,517
43,878,571
$
See the accompanying notes to the financial statements.
-3-
$
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
STATEMENTS OF CASH FLOWS
For the Fiscal Years Ended June 30, 2010 and 2009
RECONCILIATION OF OPERATING LOSS TO
NET CASH USED BY OPERATING ACTIVITIES
2010
2009
$ (30,110,177)
$ (37,040,597)
CASH USED BY OPERATING ACTIVITIES
Operating loss
Adjustments to reconcile operating loss to net cash
used by operating activities:
Depreciation expense
Changes in assets and liabilities:
Accounts receivable, net
Inventory
Prepaid expense
Accounts payable and accrued liabilities
Due to fiduciary funds, net
Deferred revenue
Early retirement incentive
Other postemployment benefits other than pensions (OPEB)
3,394,757
2,365,126
(468,567)
3,832
58,358
(1,643,759)
99,920
(98,307)
(1,200,440)
4,841
285,273
849,143
(20,970)
973,204
600,551
115,017
17,803
$ (28,746,140)
Net cash used by operating activities
See the accompanying notes to the financial statements.
-4-
$ (33,068,852)
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
STATEMENTS OF FIDUCIARY NET ASSETS - AGENCY FUND
June 30, 2010 and June 30, 2009
2010
ASSETS
Cash and cash equivalents
Investments in local agency investment fund
Accounts receivable:
Miscellaneous
Due from district
$
2009
431,056
158,082
$
553
12,101
TOTAL ASSETS
LIABILITIES
Accounts payable
Accrued liabilities
Funds held in trust
397,664
153,862
13,241
$
601,792
$
564,767
$
3,815
$
464
597,977
564,303
TOTAL LIABILITIES
601,792
564,767
NET ASSETS
Unrestricted
TOTAL NET ASSETS
-
-
$
TOTAL LIABILITIES AND NET ASSETS
601,792
See the accompanying notes to the financial statements.
-5-
$
564,767
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
STATEMENTS OF FIDUCIARY NET ASSETS - TRUST FUNDS
June 30, 2010 and June 30, 2009
2010
ASSETS
Cash and cash equivalents
Investments in local agency investment fund
Accounts receivable:
Miscellaneous
Due from district
$
41,081
117,086
2009
$
87,678
113,955
20
100,461
TOTAL ASSETS
LIABILITIES
Accounts payable
Due to district
Funds held in trust
$
258,648
$
201,633
$
8,454
1,356
10,303
$
28,854
599
16,675
TOTAL LIABILITIES
NET ASSETS
Reserved for scholarships
Unrestricted
TOTAL NET ASSETS
$
TOTAL LIABILITIES AND NET ASSETS
20,113
46,128
121,998
116,537
238,535
119,102
36,403
155,505
258,648
See the accompanying notes to the financial statements.
-6-
$
201,633
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
STATEMENTS OF CHANGES IN FIDUCIARY NET ASSETS - TRUST FUNDS
For the Fiscal Years Ended June 30, 2010 and 2009
2010
ADDITIONS
Local revenues
Transfer from District
Interest and investment income (loss)
$
10,890
100,000
5,049
2009
$
12,275
(4,248)
115,939
8,027
Operating expenses
32,909
88,274
TOTAL DEDUCTIONS
32,909
88,274
83,030
(80,247)
155,505
235,752
TOTAL ADDITIONS
DEDUCTIONS
CHANGE IN NET ASSETS
NET ASSETS, BEGINNING OF YEAR
$
NET ASSETS, ENDING OF YEAR
238,535
See the accompanying notes to the financial statements.
-7-
$
155,505
DRAFT for Discussion Purposes Only
DISCRETELY PRESENTED COMPONENT UNIT –
HARTNELL COLLEGE FOUNDATION
-8-
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
DISCRETELY PRESENTED COMPONENT UNIT
HARTNELL COLLEGE FOUNDATION
STATEMENTS OF FINANCIAL POSITION
June 30, 2010 and 2009
2010
ASSETS
Current Assets
Cash and cash equivalents - unrestricted
Cash and cash equivalents - restricted
Accounts receivable
Pledges receivable, current
Note receivable, current
Prepaid expenses
Total current assets
$
Noncurrent Assets
Investments - restricted
Investments with FCCC
Pledges receivable
Note receivable
Property and equipment, net
Total noncurrent assets
Total assets
LIABILITIES AND NET ASSETS
Liabilities
Accounts payable
Scholarships payable
Deferred revenue
Total Liabilities
Net Assets
Unrestricted
Temporarily restricted
Permanently restricted
Total net assets
Total liabilities and net assets
198,763
2,453,577
83,008
589,294
6,033
22,330
3,353,005
$
204,419
2,673,279
810,138
5,733
3,693,569
4,322,111
204,173
149,501
101,465
326,183
5,103,433
$ 8,456,438
100,500
107,488
326,375
3,997,643
$ 7,691,212
$
$
566,544
168,192
65,999
800,735
65,765
3,134,865
4,455,073
7,655,703
$ 8,456,438
See the accompanying notes to the financial statements.
-8-
2009
3,463,280
665,217
176,839
16,147
858,203
(156,690)
2,705,022
4,284,677
6,833,009
$ 7,691,212
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
DISCRETELY PRESENTED COMPONENT UNIT
HARTNELL COLLEGE FOUNDATION
STATEMENT OF ACTIVITIES
For the Fiscal Year Ended June 30, 2010
REVENUE
Donations
Special events
In-kind donations
Miscellaneous revenue
Assets released from restrictions
Total revenues
Unrestricted
Temporarily
Restricted
Permanently
Restricted
$
$
$
EXPENSES
Operating expenses
Program expenses
Fundraising expenses
Total expenses
29,061
166,411
161,864
218,580
1,378,371
1,954,287
273,537
1,543,729
86,608
1,903,874
OPERATING INCOME
1,539,581
59,707
16,282
13,082
(1,378,371)
250,281
19,200
19,200
-
-
Total
$ 1,587,842
226,118
178,146
231,662
2,223,768
273,537
1,543,729
86,608
1,903,874
50,413
250,281
19,200
319,894
OTHER INCOME(LOSS)
Interest and dividends
Realized gain on sale of investments
Unrealized gain (loss) on investments
Total other income(loss)
18,972
4,144
148,926
172,042
93,645
58,741
182,199
334,585
1,876
(5,703)
(3,827)
114,493
62,885
325,422
502,800
CHANGE IN NET ASSETS BEFORE
TRANSFERS
222,455
584,866
15,373
822,694
33,777
(188,800)
(155,023)
(33,777)
188,800
155,023
429,843
170,396
822,694
2,705,022
4,284,677
6,833,009
4,455,073
$ 7,655,703
TRANSFERS
Change in donor designation
Transfer to Endowment - FCCC Foundation
Total transfers
-
CHANGE IN NET ASSETS AFTER
TRANSFERS
222,455
NET ASSETS
Net Assets, Beginning of year
Net Assets, End of Year
(156,690)
$
65,765
$
3,134,865
$
See the accompanying notes to the financial statements.
-9-
-
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
DISCRETELY PRESENTED COMPONENT UNIT
HARTNELL COLLEGE FOUNDATION
STATEMENT OF ACTIVITIES
For the Fiscal Year Ended June 30, 2009
REVENUE
Donations
Special events
In-kind donations
Miscellaneous revenue
Assets released from restrictions
Total revenues
Unrestricted
Temporarily
Restricted
Permanently
Restricted
$
$
$
EXPENSES
Operating expenses
Program expenses
Fundraising expenses
Total expenses
7,416
99,652
181,292
146,217
1,475,668
1,910,245
230,669
1,564,481
88,039
1,883,189
OPERATING INCOME
1,583,010
8,971
61,839
13,420
(1,475,668)
191,572
52,702
52,702
-
-
$ 1,643,128
108,623
243,131
159,637
2,154,519
230,669
1,564,481
88,039
1,883,189
27,056
191,572
OTHER INCOME(LOSS)
Interest and dividends
Realized (loss) on sale of investments
Unrealized (loss) on investments
Total other income(loss)
36,578
(382,794)
(208,408)
(554,624)
121,217
(379,348)
(206,740)
(464,871)
-
CHANGE IN NET ASSETS BEFORE
TRANSFERS
(527,568)
(273,299)
52,702
(30,000)
30,000
-
TRANSFERS
Change in donor designation
Net transfer of assets and liabilities from
Western Stage Auxiliary Corporation
Total transfers
CHANGE IN NET ASSETS AFTER
TRANSFERS
NET ASSETS
Net Assets, Beginning of year before restatement
Restatement
Net Assets, Beginning of year as restated
Net Assets, End of Year
271,330
157,795
(762,142)
(415,148)
(1,019,495)
(748,165)
24,301
24,301
(30,000)
30,000
24,301
24,301
(503,267)
(303,299)
82,702
(723,864)
109,853
236,724
346,577
$
52,702
Total
(156,690)
3,006,646
1,675
3,008,321
$
2,705,022
4,440,374
(238,399)
4,201,975
$
See the accompanying notes to the financial statements.
-10-
4,284,677
7,556,873
7,556,873
$ 6,833,009
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
DISCRETELY PRESENTED COMPONENT UNIT
HARTNELL COLLEGE FOUNDATION
STATEMENTS OF CASH FLOWS
For the Fiscal Year Ended June 30, 2010 and 2009
2010
2009
Cash flows from operating activities
Change in net assets
$
Adjustment to reconcile changes in net assets to net
cash provided for operations
Unrealized (gain) loss on investments
Depreciation
Donation of collection items
Changes in operating assets and liabilities:
Receivables
Prepaid expenses
Payables
Deferred revenue
Net cash provided by operating activities
822,694
$
(723,864)
(325,422)
192
415,148
1,515
(4,600)
94,558
(22,330)
(107,320)
49,852
137,968
512,224
128,603
286,289
16,147
Cash flows from investing activities
Purchase of equipment
Purchase of investments
Proceeds from the sale of investments
(1,385)
(1,725,879)
2,407,192
(3,218,675)
2,481,093
Net cash used by investing activities
(737,582)
679,928
Net increase in cash and cash equivalents
(225,358)
808,531
2,877,698
Cash and cash equivalents, beginning of year
2,069,167
Cash and cash equivalents, end of year
$
2,652,340
$
2,877,698
Supplemental Disclosure:
Noncash financing transaction:
Collection items contributed
$
-
$
4,600
See the accompanying notes to the financial statements.
-11-
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
NOTES TO FINANCIAL STATEMENTS
June 30, 2010 and 2009
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
A.
REPORTING ENTITY
The District is the level of government primarily accountable for activities related
to public education. The governing authority consists of elected officials who,
together, constitute the Board of Trustees.
The District considered its financial and operational relationships with potential
component units under the reporting entity definition of GASB Statement No. 14,
The Financial Reporting Entity. The basic, but not the only, criterion for including
another organization in the District’s reporting entity for financial reports is the
ability of the District’s elected officials to exercise oversight responsibility over
such agencies. Oversight responsibility implies that one entity is dependent on
another and that the dependent unit should be reported as part of the other.
Oversight responsibility is derived from the District’s power and includes, but is
not limited to: financial interdependency; selection of governing authority;
designation of management; ability to significantly influence operations; and
accountability for fiscal matters.
Based upon the requirements of GASB Statement No. 14, and as amended by
GASB Statement No. 39, Determining Whether Certain Organizations are
Component Units, certain organizations warrant inclusion as part of the financial
reporting entity because of the nature and significance of their relationship with the
District, including their ongoing financial support of the District or its other
component units. A legally separate, tax-exempt organization should be reported
as a component unit of the District if all of the following criteria are met:
1.
The economic resources received or held by the separate organization are
entirely or almost entirely for the direct benefit of the District, its component
units, or its constituents.
2.
The District, or its component units, is entitled to, or has the ability to
otherwise access, a majority of the economic resources received or held by
the separate organization.
3.
The economic resources received or held by an individual organization that
the District, or its component units, is entitled to, or has the ability to
otherwise access, are significant to the District.
-12-
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
NOTES TO FINANCIAL STATEMENTS
June 30, 2010 and 2009
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (continued)
A.
REPORTING ENTITY (continued)
Based upon the application of the criteria listed above, the following potential
component units have been included in the District’s reporting entity:
The Hartnell College Foundation (the Foundation) – The Foundation is a
separate not-for-profit corporation formed to promote and assist the educational
programs of the District. The Board of Directors is comprised of up to 35 members
including the President of the College, a member of the Board of Trustees selected
by the President and the Executive Director of the Foundation. In addition, the
Foundation does not carry on any activities not approved by the Superintendent of
the District. The financial activities of the Foundation have been discretely
presented. Financial statements for the Foundation may be obtained through the
District.
The Western Stage Auxiliary Corporation (the Auxiliary) – The Auxiliary was
a legally separate organization component unit of the District. The Auxiliary was
formed to augment and enhance the District’s Theater Arts program. The District’s
Board of Trustees and the Auxiliary’s Board shared common members, and the
Board of Trustees provided oversight of the Auxiliary’s operation.
On
September 9, 2008 the District Board of Trustees approved a resolution to dissolve
the Auxiliary effective December 2008 and remaining assets and liabilities of the
Auxiliary were transferred to the Hartnell College Foundation. The financial
activity through December 31, 2008 has been “blended” or consolidated within the
financial statements as a component of the General Fund of the District as if the
activity was the District’s. Financial statements for the Auxiliary for the six
months ended December 31, 2008 can be obtained through the District.
-13-
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
NOTES TO FINANCIAL STATEMENTS
June 30, 2010 and 2009
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (continued)
B.
FINANCIAL STATEMENT PRESENTATION
The accompanying financial statements have been prepared in conformity with
generally accepted accounting principles as prescribed by the Governmental
Accounting Standards Board (GASB), including Statement No. 34, Basic Financial
Statements and Management’s Discussion and Analysis – for State and Local
Governments and including Statement No. 35, Basic Financial Statements and
Management’s Discussion and Analysis of Public Colleges and Universities, issued
in June and November 1999 and Audits of State and Local Governmental Units
issued by the American Institute of Certified Public Accountants. The financial
statement presentation required by GASB No. 34 and No. 35 provides a
comprehensive, entity-wide perspective of the District’s financial activities. The
entity-wide perspective replaces the fund-group perspective previously required.
Fiduciary activities are excluded from the basic financial statements.
C.
BASIS OF ACCOUNTING
Basis of accounting refers to when revenues and expenditures or expenses are
recognized in the accounts and reported in the financial statements. Basis of
accounting relates to the timing of measurement made, regardless of the
measurement focus applied.
For financial reporting purposes, the District is considered a special-purpose
government agency engaged in business-type activities. Accordingly, the District’s
basic financial statements have been presented using the economic resources
measurement focus and the accrual basis of accounting. Under the accrual basis,
revenues are recognized when earned, and expenses are recorded when an
obligation has been incurred. All significant intra-agency transactions have been
eliminated.
For internal accounting purposes, the budgetary and financial accounts of the
District have been recorded and maintained in accordance with the California
Community Colleges System Office’s Budget and Accounting Manual.
-14-
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
NOTES TO FINANCIAL STATEMENTS
June 30, 2010 and 2009
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (continued)
C.
BASIS OF ACCOUNTING (continued)
To ensure compliance with the California Education Code, the financial resources
of the District are divided into separate funds for which separate accounts are
maintained for recording cash, other resources and all related liabilities, obligations
and equities.
By state law, the District's Governing Board must approve a budget no later than
September 15. A public hearing must be conducted to receive comments prior to
adoption. The District's Governing Board satisfied these requirements. Budgets for
all governmental funds were adopted on a basis consistent with generally accepted
accounting principles (GAAP).
These budgets are revised by the District's Governing Board during the year to give
consideration to unanticipated income and expenditures. Formal budgetary
integration was employed as a management control device during the year for all
budgeted funds. Expenditures cannot legally exceed appropriations by major
object account.
In accordance with GASB Statement No. 20, the District follows all GASB
statements issued prior to November 30, 1989 until subsequently amended,
superceded or rescinded. The District has the option to apply all Financial
Accounting Standards Board (FASB) pronouncements issued after November 30,
1989 unless FASB conflicts with GASB. The District has elected to not apply
FASB pronouncements issued after the applicable date.
1.
Cash and Cash Equivalents
The District’s cash and cash equivalents are considered to be cash on hand,
demand deposits and short-term investments with original maturities of three
months or less from the date of acquisition. Cash in the County treasury is
recorded at cost, which approximates fair value, in accordance with the
requirements of GASB Statement No. 31.
-15-
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
NOTES TO FINANCIAL STATEMENTS
June 30, 2010 and 2009
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (continued)
C.
BASIS OF ACCOUNTING (continued)
2.
Accounts Receivable
Accounts receivable consists primarily of amounts due from the Federal
government, state and local governments, or private sources, in connection
with reimbursement of allowable expenditures made pursuant to the District’s
grants and contracts. Accounts receivable are recorded net of estimated
uncollectible amounts. The District recognized for budgetary and financial
reporting purposes any amount of state appropriations deferred from the
current fiscal year and appropriated from the subsequent fiscal year for
payment of current year costs as a receivable in the current year.
3.
Inventories
Inventories are presented at cost, on the weighted average method and are
expensed when used. Inventory consists of cafeteria food and supplies held
for resale to the students, faculty and staff of the College.
4.
Prepaid Expenses
Payments made to vendors for goods or services that will benefit periods
beyond June 30, 2010, are recorded as prepaid items using the consumption
method. A current asset for the prepaid amount is recorded at the time of the
purchase and an expenditure/expense is reported in the year in which goods
or services are consumed.
5.
Capitalized Fees
Amounts paid for fees and underwriting costs associated with long-term debt
are capitalized and amortized to interest expense over the life of the liability.
These costs are amortized using the straight-line method.
-16-
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
NOTES TO FINANCIAL STATEMENTS
June 30, 2010 and 2009
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (continued)
C.
BASIS OF ACCOUNTING (continued)
6.
Restricted Cash and Cash Equivalents
Restricted cash and cash equivalents are those amounts externally restricted
as to use pursuant to the requirements of the District’s grants, contracts, and
debt service requirements.
7.
Capital Assets
Capital assets are recorded at cost at the date of acquisition. Donated capital
assets are recorded at their estimated fair value at the date of donation. For
equipment, the District’s capitalization policy includes all items with a unit
cost of $5,000 or more and an estimated useful life of greater than one year.
Buildings as well as renovations to buildings, infrastructure, and land
improvements that significantly increase the value or extend the useful life of
the structure are capitalized. Interest incurred during construction is not
capitalized.
The cost of normal maintenance and repairs that does not add to the value of
the asset or materially extend the asset's life is recorded in operating expense
in the year in which the expense was incurred. Depreciation is computed
using the straight-line method over the estimated useful lives of the assets,
generally 50 years for buildings, 10 years for building and land
improvements, 3-8 years for equipment and vehicles. Land and construction
in progress are not depreciated.
8.
Accounts Payable
Accounts payable consists of amounts due to vendors.
-17-
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
NOTES TO FINANCIAL STATEMENTS
June 30, 2010 and 2009
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (continued)
C.
BASIS OF ACCOUNTING (continued)
9.
Short-Term Borrowing
Negative balances in the cash in county account generally result from timing
differences between expenditures and reimbursements from the state or other
sources. These negative balances have been recorded as short-term
borrowings in the statement of net assets.
2009
2010
Restricted General Fund
Debt Service Fund
Scheduled Maintenance Fund
$ 106,919
3,659
2,113,759
$ 106,919
10.
$
$2,117,418
Accrued Liabilities
Accrued liabilities consist of salaries and benefits payable and deferred
summer pay.
11.
Deferred Revenue
Deferred revenue arises when potential revenue does not meet both the
“measurable” and “available” criteria for recognition in the current period or
when resources are received by the District prior to the incurrence of
qualifying expenditures.
In subsequent periods, when both revenue
recognition criteria are met, or when the District has a legal claim to the
resources, the liability for deferred revenue is removed from the combined
balance sheet and revenue is recognized. Deferred revenues include (1)
amounts received for tuition and fees prior to the end of the fiscal year that
are related to the subsequent fiscal year and (2) amounts received from
Federal and State grants before the eligibility requirements are met.
-18-
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
NOTES TO FINANCIAL STATEMENTS
June 30, 2010 and 2009
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (continued)
C.
BASIS OF ACCOUNTING (continued)
12.
Compensated Absences
In accordance with GASB Statement No. 16, accumulated unpaid employee
vacation benefits are recognized as a liability of the District as accrued
liabilities in the statement of net assets.
Sick leave benefits are accumulated without limit for each employee. The
employees do not gain a vested right to accumulated sick leave.
Accumulated employee sick leave benefits are not recognized as a liability of
the District. The District's policy is to record sick leave as an operating
expense in the period taken since such benefits do not vest nor is payment
probable; however, unused sick leave is added to the creditable service period
for calculation of retirement benefits when the employee retires and within
the constraints of the appropriate retirement systems.
13.
Net Assets
Invested in capital assets, net of related debt: This represents the District’s
total investment in capital assets, net of outstanding debt obligations
related to those capital assets. To the extent debt has been incurred but not
yet expended for capital assets, such amounts are not included as a
component of invested in capital assets, net of related debt.
Restricted net assets – expendable: Restricted expendable net assets
include resources in which the District is legally or contractually obligated
to spend resources in accordance with restrictions imposed by external
third parties or by enabling legislation adopted by the District. The
District first applies restricted resources when an expense is incurred for
purposes for which both restricted and unrestricted net assets are available.
-19-
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
NOTES TO FINANCIAL STATEMENTS
June 30, 2010 and 2009
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (continued)
C.
BASIS OF ACCOUNTING (continued)
13.
Net Assets (continued)
Restricted net assets – nonexpendable: Nonexpendable restricted net
assets consist of endowment and similar type funds in which donors or
other outside sources have stipulated, as a condition of the gift instrument,
that the principal is to be maintained inviolate and in perpetuity, and
invested for the purpose of producing present and future income, which
may either be expended or added to principal. The District had no
restricted net assets – nonexpendable.
Unrestricted net assets: Unrestricted net assets represent resources
available to be used for transactions relating to the general operations of
the District, and may be used at the discretion of the governing board, as
designated, to meet current expenses for specific future purposes.
Of the unrestricted net assets, the following amounts have been Board
designated for the following:
Designated for Bookstore Fund
Designated for Child Development Fund
Designated for Cafeteria Fund
Designated for Self Insurance Fund
Designated for Retiree Benefits
14.
2010
1,135,361
255,662
360,697
1,142,839
3,398,886
2009
1,088,284
91,095
367,289
1,122,273
1,240,012
State Apportionments
Certain current year apportionments from the state are based upon various
financial and statistical information of the previous year. Any prior year
corrections due to the recalculation in February of 2011 will be recorded in
the year computed by the State.
-20-
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
NOTES TO FINANCIAL STATEMENTS
June 30, 2010 and 2009
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (continued)
C.
BASIS OF ACCOUNTING (continued)
15.
Property Taxes
Secured property taxes attach as an enforceable lien on property as of
March 1. Taxes are payable in two installments on November 15 and
March 15. Unsecured property taxes are payable in one installment on or
before August 31.
Real and personal property tax revenues are reported in the same manner in
which the County auditor records and reports actual property tax receipts to
the Monterey County Office of Education. This is generally on a cash basis.
A receivable has not been accrued in these financial statements because it is
not material. Property taxes for debt service purposes cannot be estimated
and have therefore not been accrued in the basic financial statements.
16.
On-Behalf Payments
GASB Statement No. 24 requires that direct on-behalf payments for fringe
benefits and salaries made by one entity to a third party recipient for the
employees of another, legally separate entity be recognized as revenue and
expenditures by the employer government. The State of California makes
direct on-behalf payments for retirement benefits to the State Teachers and
Public Employees Retirement Systems on behalf of all Community Colleges
in California. However, a fiscal advisory was issued by the California
Department of Education instructing districts not to record revenue and
expenditures for these on-behalf payments. The amount of on-behalf
payments made for the District is estimated at $205,000 and $228,000 for
STRS at June 30, 2010 and 2009, respectively.
17.
Classification of Revenues
The District has classified its revenues as either operating or non-operating
revenues according to the following criteria:
Operating revenues: Operating revenues include activities that have the
characteristics of exchange transactions, such as student fees, net of
scholarship discounts and allowances, and Federal and most state and
local grants and contracts.
-21-
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
NOTES TO FINANCIAL STATEMENTS
June 30, 2010 and 2009
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (continued)
C.
BASIS OF ACCOUNTING (continued)
17.
Classification of Revenues (continued)
Non-operating revenues: Non-operating revenues include activities that have
the characteristics of nonexchange transactions, such as State
apportionments, taxes, and other revenue sources that are defined as nonoperating revenues by GASB No. 9, Reporting Cash Flows of Proprietary
and Nonexpendable Trust Funds and Governmental Entities that use
Proprietary Fund Accounting, and GASB No. 33, Accounting and Financial
Reporting for Nonexchange Transactions, such as investment income.
18.
Scholarship Discounts and Allowances
Student tuition and fee revenues, and certain other revenues from students,
are reported net of scholarship discounts and allowances in the statement of
revenues, expenses, and changes in net assets. Scholarship discounts and
allowances are the difference between the stated charge for goods and
services provided by the District, and the amount that is paid by students
and/or third parties making payments on the students’ behalf. Certain
governmental grants, such as Board of Governors’ grants are recorded as
operating revenues in the District’s financial statements. To the extent that
revenues from such programs are used to satisfy tuition and fees and other
student charges, the District has recorded a scholarship discount and
allowance.
19.
Estimates
The preparation of the financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the amounts reported in the financial statements and
accompanying notes. Actual results may differ from those estimates.
20.
Reclassifications
Certain reclassifications have been made to the 2009 financial statements to
conform to the 2010 presentation.
-22-
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
NOTES TO FINANCIAL STATEMENTS
June 30, 2010 and 2009
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (continued)
C.
BASIS OF ACCOUNTING (continued)
21.
Recent Accounting Pronouncement
The Governmental Accounting Standards Board (GASB) has issued
Statement No. 45, Accounting and Financial Reporting by Employers for
Postemployment Benefits Other than Pension Plans, outlining accounting
standards for governmental agencies regarding other postemployment
benefits. The statement was effective for the District in fiscal year 2008-09.
The statement requires governmental agencies to record and disclose the
actuarially determined cost of postemployment benefits other than pensions
based on the benefits expected to be earned by employees in the future, as
well as those benefits the employees have already earned. Annual required
contributions shall include the employer’s normal cost and a provision(s) for
amortizing the total unfunded actuarial accrued liability for a period not to
exceed 30 years.
Detailed disclosure required by the statement is provided at Note 11.
NOTE 2 - DEPOSITS AND INVESTMENTS:
A.
Deposits
Custodial Credit Risk
Custodial credit risk is the risk that in the event of a bank failure, the District’s
deposits may not be returned to it. Although the District does not have a specific
deposit policy for custodial risk, the California Government Code requires
California banks and savings and loan associations to receive a local agencies’
deposits by pledging government securities with a value of 110% of a local
agencies’ deposits. As of June 30, 2010 and 2009, respectively, $1,795,202 and
$760,617 of the District’s bank balance of $2,122,877 and $1,083,181 was exposed
to credit risk as follows:
Uninsured and collateral held by pledging bank’s
trust department not in the District’s name
-23-
2010
2009
$1,795,202
$ 760,617
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
NOTES TO FINANCIAL STATEMENTS
June 30, 2010 and 2009
NOTE 2 - DEPOSITS AND INVESTMENTS: (continued)
Cash in County
In accordance with Education Code Section 41001, the District maintains
substantially all of its cash in the Monterey County Treasury as part of the common
investment pool. These pooled funds are carried at cost which approximates fair
value. The fair market value of the District’s deposits in this pool as of June 30,
2010 and 2009, as provided by the pool sponsor, was $77,539,879 and
$37,813,042, respectively.
The County is authorized to deposit cash and invest excess funds by California
Government Code Section 53648 et. seq. The county is restricted by Government
Code Section 53635 pursuant to Section 53601 to invest in time deposits, U.S.
government securities, state registered warrants, notes or bonds, State Treasurer’s
investment pool, bankers’ acceptances, commercial paper, negotiable certificates of
deposit, and repurchase or reverse repurchase agreements. The funds maintained
by the County are either secured by federal depository insurance or are
collateralized.
Interest earned is deposited quarterly into participating funds. The investment
losses were proportionately shared by all funds in the pool. The County advised
the District to expect a loss of earnings in the 2008-09 fiscal year due to its
investments in Lehman Brothers and Washington Mutual. The District’s
proportionate share for all funds including fiduciary funds of ($1,428,904) for the
2008-09 year is reported net of interest earned in these financial statements.
$274,830 was recovered and recorded to interest earned for the 2009-10 year.
B.
Investments
The District maintains investments with the State of California Local Agency
Investment Fund (LAIF) amounting to $512,508 and $498,896 as of June 30, 2010
and 2009, respectively, including amounts invested by Fiduciary Funds. Interest of
$9,067 was earned during the 2008-09 fiscal year, but was not recorded. An
adjustment was not made as the amount is not considered material to the financial
statements. LAIF pools these funds with other governmental agencies and invests
in various investment vehicles. These pooled funds approximate fair value.
Regulatory oversight is provided by the State Pooled Money Investment Board and
the Local Investment Advisory Board. LAIF is not subject to categorization as
prescribed by GASB Statement No. 3 to indicate the level of custodial credit risk
assumed by the District at year end.
-24-
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
NOTES TO FINANCIAL STATEMENTS
June 30, 2010 and 2009
NOTE 3 - ACCOUNTS RECEIVABLE:
The accounts receivable balance consists of the following:
Federal and State
Miscellaneous
2010
2009
$ 7,737,663
1,915,540
$12,826,502
1,660,346
$ 9,653,203
$14,486,848
NOTE 4 - INTERFUND TRANSACTIONS:
Interfund transfers consist of operating transfers from funds receiving resources to funds
through which the resources are to be expended. Interfund receivables and payables
result when the interfund transfer is transacted after the close of the fiscal year. Interfund
activity has been eliminated in the basic financial statements, except for transactions
occurring between governmental and fiduciary funds.
NOTE 5 - CAPITAL ASSETS:
The following provides a summary of changes in capital assets for the year ended
June 30, 2010:
Balance
June 30, 2009
Land
Site and site improvements
Equipment
Construction in progress
Total cost
$
590,992
94,383,403
8,553,383
31,779,264
135,307,042
Additions
$
Balance
June 30, 2010
Retirements
$
16,014,139
259,899
23,257,668
39,531,706
$
16,014,139
16,014,139
590,992
110,397,542
8,813,282
39,022,793
158,824,609
Less accumulated depreciation for:
Site and site improvements
Equipment
24,461,169
6,057,984
2,875,288
519,469
Total accumulated depreciation
30,519,153
3,394,757
Governmental capital assets, net
$
104,787,889
-25-
$
36,136,949
27,336,457
6,577,453
$
16,014,139
33,913,910
$
124,910,699
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
NOTES TO FINANCIAL STATEMENTS
June 30, 2010 and 2009
NOTE 5 - CAPITAL ASSETS: (continued)
The following provides a summary of changes in capital assets for the year ended
June 30, 2009:
Balance
June 30, 2008
Land
Site and site improvements
Equipment
Construction in progress
Total cost
$
590,992
89,656,392
8,044,363
16,357,218
114,648,965
Additions
$
Balance
June 30, 2009
Retirements
$
4,727,011
509,020
20,149,057
25,385,088
$
4,727,011
4,727,011
590,992
94,383,403
8,553,383
31,779,264
135,307,042
Less accumulated depreciation for:
Site and site improvements
Equipment
22,532,902
5,621,125
1,928,267
436,859
Total accumulated depreciation
28,154,027
2,365,126
Governmental capital assets, net
$
86,494,938
$
23,019,962
24,461,169
6,057,984
$
4,727,011
30,519,153
$
104,787,889
NOTE 6 - TAX REVENUE ANTICIPATION NOTES (TRANS):
During the fiscal year ended June 30, 2010, the District issued $2,815,000 of Tax
Revenue Anticipation Notes dated July 8, 2009 through the California Community
College Financing Authority’s Tax and Revenue Anticipation Note Program (Series
2009A). The notes matured on June 30, 2010 and yielded .95% interest. The notes were
sold by the District to supplement its cash flow.
The funds were held in a Guaranteed Investment Contract. Repayment requirements
were that $2,815,000 be deposited in June 2010, inclusive of interest. All repayment
requirements were met as of June 30, 2010. The notes were considered in-substance
defeased on June 30, 2010 and are not reflected as a liability in these financial statements.
During the fiscal year ended June 30, 2009, the District issued $2,080,000 of Tax
Revenue Anticipation Notes dated July 1, 2008 through the California School Boards
Association Finance Corporation’s Cash Reserve Program (Series 2008-09). The notes
matured on July 6, 2009 and yielded 1.65% interest. The notes were sold by the District
to supplement its cash flow.
-26-
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
NOTES TO FINANCIAL STATEMENTS
June 30, 2010 and 2009
NOTE 6 - TAX REVENUE ANTICIPATION NOTES (TRANS): (continued)
The funds were held in a Guaranteed Investment Contract. Repayment requirements
were that $2,080,000 be deposited in July 2009, inclusive of interest. All repayment
requirements were met as of June 30, 2009. The notes were considered in-substance
defeased on June 30, 2009 and are not reflected as a liability in these financial statements.
NOTE 7 - GENERAL OBLIGATION BONDS:
On November 5, 2002, the District voters authorized the issuance and sale of general
obligation bonds totaling $131,000,000. Proceeds from the sale of the bonds will be used
to finance the construction, acquisition, and modernization of certain property and
District facilities.
On April 15, 2003, the District issued General Obligation Bonds, Election of 2002, Series
A of $35,000,000 of current interest bonds. Interest ranges from 2.0% to 5.0% payable
semiannually on February 1 and August 1. At June 30, 2010 and 2009 the principal
balance outstanding was $2,265,000 and $2,610,000, respectively.
On March 23, 2005, the District issued 2005 General Obligation Refunding Bonds of
$23,500,000 of current interest bonds and $5,562,042 of capital appreciation bonds.
Interest rates range from 4.50% to 5.25% payable semiannually on February 1 and
August 1. At June 30, 2010 and 2009, the principal balance outstanding (including
accreted interest to date) was $28,587,300 and $29,053,453, respectively. Unamortized
premium costs at June 30, 2010 and 2009 were $2,823,389 and $3,055,448, respectively.
Unamortized issue costs at June 30, 2010 and 2009 were $364,436 and $394,388,
respectively. Premium and issuance costs are amortized over the life of the bonds as a
component of interest expense on the bonds.
On June 6, 2006, the District issued the General Obligation Bonds, Election 2002, Series
B of $32,815,000 of current interest bonds and $2,180,518 of capital appreciation bonds.
Interest ranges from 4.10% to 5.25% payable semiannually June 1 and December 1. At
June 30, 2010 and 2009 the principal balance outstanding (including accreted interest to
date) was $34,783,347 and $34,938,019, respectively. Unamortized premium costs at
June 30, 2010 and 2009 were $1,114,635 and $1,170,600, respectively. Unamortized
issue costs at June 30, 2010 and 2009 were $494,285 and $519,104, respectively.
Premium and issuance costs are amortized over the life of the bonds as a component of
interest expense on the bonds.
-27-
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
NOTES TO FINANCIAL STATEMENTS
June 30, 2010 and 2009
NOTE 7 - GENERAL OBLIGATION BONDS: (continued)
On May 27, 2009, the District issued the General Obligation Bonds, Election 2002,
Series C of $3,366,499 of capital appreciation bonds and $9,231,389 of convertible
capital appreciation bonds. Interest ranges from 6.13% to 11.50% payable semiannually
February 1 and August 1. At June 30, 2010 and 2009 the principal balance outstanding
(including accreted interest to date), was $13,096,645 and $12,597,888, respectively.
Unamortized premium and issue costs at June 30, 2010 and 2009 were $188,147 each and
$196,295 each, respectively. Premium and issuance costs are amortized over the life of
the bonds as a component of interest expense on the bonds.
On August 27, 2009, the District issued the General Obligation Bonds, Election 2002,
Series D of $2,516,428 of capital appreciation bonds, $32,590,041 of capital appreciation
term bonds, and $13,298,610 of convertible capital appreciation bonds. Interest ranges
from 6.43% to 11.50% payable semiannually February 1 and August 1. At June 30, 2010
the principal balance outstanding (including accreted interest to date) was $49,810,952.
Unamortized premium and issue costs were $603,450 each. Premium and issuance costs
are amortized over the life of the bonds as a component of interest expense on the bonds.
Capital appreciation bonds have maturity dates for: Series B from June 1, 2008 through
June 1, 2016; Series C from August 1, 2023 through August 1, 2033; Series D from
August 1, 2023 through August 1, 2049 and the Refunded Bonds from August 1, 2005
through August 1, 2014. Prior to the applicable maturity date, each bond will accrete
interest on the principal component.
The refunding bonds were issued to advance refund a portion of the outstanding Series A
general obligation bonds. $28,554,555 in refunding proceeds were placed into an
irrevocable escrow account and will be used to fund the future required principal and
interest payments of the refunded bonds. The amount of refunded debt to be paid from
the escrow account at June 30, 2010 and 2009 for Series A is $27,240,000. The refunded
portions of the bonds are considered in-substance defeased and are not recorded in the
financial statements.
Amounts paid to the refunded debt escrow agent, in excess of outstanding debt at the time
of payment, are recorded as deferred charges on the statement of net assets and are
amortized to interest expense over the life of the liability. At June 30, 2010 and 2009,
unamortized deferred charges were $316,363 and $342,726, respectively.
-28-
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
NOTES TO FINANCIAL STATEMENTS
June 30, 2010 and 2009
NOTE 7 - GENERAL OBLIGATION BONDS: (continued)
The outstanding bonded debt for Hartnell Community College District at June 30, 2010
is:
Series
Series A
Refunding Bond
Accreted Interest
Series B
Accreted Interest
Series C
Accreted Interest
Series D
Accreted Interest
Amount
of Original
Issue
Date of
Issue
Interest
Rate %
Maturity
Date
4/15/2003
3/23/2005
2.00 - 5.00%
4.50 - 5.25%
8/1/2013
8/1/2022
6/6/2006
4.10 - 5.25%
6/1/2031
34,995,518
5/27/2009
6.13 - 11.50%
8/1/2033
12,597,888
8/27/2009
6.43 - 11.50%
8/1/2049
48,405,079
(1)
$
$
2,610,000
27,019,246
2,034,207
34,610,002
328,017
12,597,888
Interest
Accreted
Current Year
$
$
Redeemed
Current
Year
Outstanding
June 30, 2010
$
345,000
653,054
426,946
201,165
33,835
$
$
1,660,000
$
613,847
80,328
498,757
$
(1)
35,000,000
29,062,042
Issued
Current
Year
Outstanding
July 1, 2009
160,060,527
48,405,079
$
79,199,360
$ 48,405,079
1,405,873
$ 2,598,805
2,265,000
26,366,192
2,221,108
34,408,837
374,510
12,597,888
498,757
48,405,079
1,405,873
128,543,244
The maturity date has been revised from the original date of August 1, 2027 to reflect the final maturity date on the remaining non-refunded bonds.
The annual requirements to amortize all bonds payable, outstanding as of June 30, 2010,
are as follows:
Series A
Year Ended
June 30,
2011
2012
2013
2014
Principal
Interest
Total
$
425,000
515,000
610,000
715,000
$
76,175
59,725
39,656
14,300
$
501,175
574,725
649,656
729,300
$
2,265,000
$
189,856
$
2,454,856
Refunding Bond
Year Ended
June 30,
2011
2012
2013
2014
2015
2016-2020
2021-2023
Principal
$
613,502
574,752
537,100
502,679
638,159
12,510,000
10,990,000
$ 26,366,192
Accreted
Interest
Component
Interest
$
Total
1,163,688
1,163,688
1,163,688
1,163,688
1,163,688
4,378,906
813,675
$
526,498
625,248
722,900
822,321
1,251,841
$
$ 11,011,021
$
3,948,808
$ 41,326,021
-29-
2,303,688
2,363,688
2,423,688
2,488,688
3,053,688
16,888,906
11,803,675
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
NOTES TO FINANCIAL STATEMENTS
June 30, 2010 and 2009
NOTE 7 - GENERAL OBLIGATION BONDS: (continued)
Series B
Year Ended
June 30,
2011
2012
2013
2014
2015
2016-2020
2021-2025
2026-2030
2031
Principal
$
213,512
239,391
239,635
263,895
308,540
3,258,864
10,135,000
16,040,000
3,710,000
$ 34,408,837
Accreted
Interest
Component
Interest
$
1,622,241
1,622,241
1,622,241
1,622,241
1,622,241
7,953,059
6,769,100
3,419,250
185,500
$ 26,438,114
Total
$
46,488
65,609
80,365
106,105
146,460
181,137
$
$
626,164
$
1,882,241
1,927,241
1,942,241
1,992,241
2,077,241
11,393,060
16,904,100
19,459,250
3,895,500
61,473,115
Series C
Year Ended
June 30,
2011
2012
2013
2014
2015
2016-2020
2021-2025
2026-2030
2031-2034
Principal
Accreted
Interest
Component
Interest
Total
$
$
$
$
622,564
4,074,667
7,900,657
$ 12,597,888
3,122,984
6,155,931
2,041,003
$ 11,319,918
1,262,436
6,845,333
9,554,343
$ 17,662,112
$
-30-
5,007,984
17,075,931
19,496,003
41,579,918
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
NOTES TO FINANCIAL STATEMENTS
June 30, 2010 and 2009
NOTE 7 - GENERAL OBLIGATION BONDS: (continued)
Series D
Year Ended
June 30,
2011
2012
2013
2014
2015
2016-2020
2021-2025
2026-2030
2031-2035
2036-2040
2041-2045
2046-2050
Principal
$
Accreted
Interest
Component
Interest
$
257,300
1,641,602
13,751,264
12,517,598
11,087,410
9,149,905
$ 48,405,079
$
5,643,750
11,287,500
8,436,400
$ 25,367,650
Total
$
392,700
3,988,398
20,448,737
83,183,283
116,862,825
161,919,683
$ 386,795,626
6,293,750
16,917,500
42,636,401
95,700,881
127,950,235
171,069,588
$ 460,568,355
NOTE 8 - LONG-TERM DEBT:
A schedule of changes in long-term debt for the year ended June 30, 2010 is shown
below:
Beginning
Balance
July 1, 2009
Additions
Deductions
Ending
Balance
June 30, 2010
Amount
Due in
One Year
General obligation bond:
Series A
Refunding bond
Refunding bond - bond premium
Deferred liability on refunding
Series B
Series B - bond premium
Series C
Series C - bond premium
Series D
Series D - bond premium
Total general obligation bonds payable
Other postemployment benefits other
than pension (OPEB)
Early retirement incentive
Total long-term debt
$
2,610,000
29,053,453
3,055,448
(342,726)
34,938,019
1,170,600
12,597,888
196,295
83,278,977
115,017
600,551
$ 83,994,545
-31-
$
$
613,847
80,328
345,000
1,080,000
232,059
(26,363)
235,000
55,965
498,757
8,148
49,810,952
615,030
51,618,914
11,580
1,941,389
17,803
$ 51,636,717
$
1,941,389
$
2,265,000
28,587,300
2,823,389
(316,363)
34,783,347
1,114,635
13,096,645
188,147
49,810,952
603,450
132,956,502
132,820
600,551
$ 133,689,873
$
425,000
1,140,000
260,000
1,825,000
$
83,335
1,908,335
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
NOTES TO FINANCIAL STATEMENTS
June 30, 2010 and 2009
NOTE 8 - LONG-TERM DEBT: (continued)
A schedule of changes in long-term debt for the year ended June 30, 2009 is shown
below:
Beginning
Balance
July 1, 2008
Additions
Deductions
Ending
Balance
June 30, 2009
Amount
Due in
One Year
General obligation bond:
Series A
Refunding bond
Refunding bond - bond premium
Deferred liability on refunding
Series B
Series B - bond premium
Series C
Series C - bond premium
Total general obligation bonds payable
Lease revenue bonds
Early retirement incentive
Other post employment benefits
Total long-term debt
$
2,880,000
29,416,437
3,287,507
(369,090)
35,112,150
1,226,565
$
85,869
12,597,888
196,974
13,542,747
71,553,569
2,330,000
$ 73,883,569
$
662,016
600,551
115,017
$ 14,258,315
270,000
1,025,000
232,059
(26,364)
260,000
55,965
679
1,817,339
2,330,000
$
4,147,339
$
2,610,000
29,053,453
3,055,448
(342,726)
34,938,019
1,170,600
12,597,888
196,295
83,278,977
600,551
115,017
$ 83,994,545
$
345,000
1,080,000
235,000
1,660,000
83,335
$
1,743,335
NOTE 9 - EMPLOYEE RETIREMENT PLANS:
Qualified employees are covered under multiple-employer defined benefit pension plans
maintained by agencies of the State of California. Academic employees are members of
the State Teachers’ Retirement System (STRS) and classified employees are members of
the Public Employees’ Retirement System (PERS) and part-time, seasonal and temporary
employees and employees not covered by STRS or PERS are members of the Public
Agency Retirement System (PARS).
State Teachers’ Retirement System (STRS)
Plan Description
The District contributes to the State Teachers’ Retirement System (STRS), a cost-sharing
multiple-employer public employee retirement system defined benefit pension plan
administered by STRS. The plan provides retirement, disability and survivor benefits to
beneficiaries. Benefit provisions are established by State statutes, as legislatively
amended, within the State Teachers’ Retirement Law. STRS issues a separate
comprehensive annual financial report that includes financial statements and required
supplementary information. Copies of the STRS annual financial report may be obtained
from STRS, 7667 Folsom Boulevard, Sacramento, CA 95826.
-32-
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
NOTES TO FINANCIAL STATEMENTS
June 30, 2010 and 2009
NOTE 9 - EMPLOYEE RETIREMENT PLANS: (continued)
Funding Policy
Active plan members are required to contribute 8.0% of their salary and the District is
required to contribute an actuarially determined rate. The actuarial methods and
assumptions used for determining the rate are those adopted by the STRS Teachers’
Retirement Board. The required employer contribution rate for fiscal years 2009-10 and
2008-09 was 8.25% of annual payroll. The contribution requirements of the plan
members are established and may be amended by State statute.
Public Employees’ Retirement System (PERS)
Plan Description
The District contributes to the School Employer Pool under the California Public
Employees’ Retirement System (CalPERS), a cost-sharing multiple-employer public
employee retirement system defined benefit pension plan administered by CalPERS. The
plan provides retirement and disability benefits, annual cost-of-living adjustments, and
death benefits to plan members and beneficiaries. Benefit provisions are established by
State statutes, as legislatively amended, within the Public Employees’ Retirement Law.
CalPERS issues a separate comprehensive annual financial report that includes required
supplementary information. Copies of the CalPERS’ annual financial report may be
obtained from the CalPERS Executive Office, 400 P Street, Sacramento, CA 95814.
Funding Policy
Active plan members are required to contribute 7.0% of their salary; currently the District
contributes the employees’ portion for California School Employees Association and
Local 39 bargaining unit members. The District is required to contribute an actuarially
determined rate. The actuarial methods and assumptions used for determining the rate
are those adopted by the CalPERS Board of Administration. The required employer
contribution was 9.709% of annual payroll for fiscal year 2009-10 and 9.428% of annual
payroll for fiscal year 2008-09. The contribution requirements of the plan members are
established and may be amended by State statute.
-33-
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
NOTES TO FINANCIAL STATEMENTS
June 30, 2010 and 2009
NOTE 9 - EMPLOYEE RETIREMENT PLANS: (continued)
Contributions to STRS and PERS
The District’s contributions to STRS and PERS for each of the last three fiscal years are
as follows:
Year Ended
June 30,
2008
2009
2010
STRS
Required
Percent
Contribution
Contributed
$1,060,052
934,307
836,813
100%
100%
100%
PERS
Required
Percent
Contribution
Contributed
$1,287,360
1,033,971
917,282
100%
100%
100%
NOTE 10 - EARLY RETIREMENT INCENTIVE:
On April 14, 2009, the Board of Trustees adopted a resolution for the implementation of
an Early Retirement Incentive for full-time faculty.
A total of seven full-time faculty are participating. The District will pay benefits totaling
$600,551. The first payment of $83,335 is due during the 2010-11 fiscal year with
subsequent payment amounts varying through 2017-18. The total remaining liability has
been reflected in these financial statements. The net savings for the life of the plan is
estimated at $945,000.
-34-
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
NOTES TO FINANCIAL STATEMENTS
June 30, 2010 and 2009
NOTE 11 - POSTEMPLOYMENT HEALTH CARE BENEFITS:
Plan Description
The District administers a single-employer defined benefit healthcare plan (the Retiree
Health Plan).
The District provides medical, dental, and vision insurance coverage, as prescribed in the
various employee union contracts, to retirees meeting plan eligibility requirements.
Eligible employees retiring from the District may become eligible for these benefits when
the requirements are met. The eligibility requirements for employees who are members
of California School Employees Association or International Union of Operating
Engineers Stationary Local Number 39 are a minimum age of 60 and have a minimum of
ten years of continuous service with the District. These employees receive one year of
benefits for each two years with the District not to exceed five years. Additional age and
service criteria may be required. The eligibility requirement for members of Hartnell
College Faculty Association is a minimum age of 58 with ten years of full-time service.
These employees receive one year of benefits for each two years with the District not to
exceed seven years. Additional age and service criteria may be required. The eligibility
requirement for managers, supervisors, and confidential employees are: to be of eligible
age to retire from STRS or PERS, whichever is appropriate and have five years of fulltime employment with the District. Benefits will be granted for a maximum of ten years.
The District-paid health benefits for all retirees terminates at age 65.
The Retiree Health Plan does not issue a separate financial report.
Funding Policy
The District currently finances benefits on a pay-as-you-go basis. The District
contributes 100 percent of the cost of current year premiums for eligible retired plan
members and their dependents as applicable. The District contributed $527,694 to the
plan for fiscal year ended 2010 and $420,215 for fiscal year ended 2009.
-35-
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
NOTES TO FINANCIAL STATEMENTS
June 30, 2010 and 2009
NOTE 11 - POSTEMPLOYMENT HEALTH CARE BENEFITS: (continued)
Annual OPEB Cost and Net OPEB Obligation
The District’s annual other post employment benefit (OPEB) cost (expense) is calculated
based on the annual required contribution of the employer (ARC), an amount actuarially
determined in accordance with the parameters of GASB Statement 45. The ARC
represents a level of funding that, if paid on an ongoing basis, is projected to cover
normal cost each year and amortize any unfunded actuarial liabilities (or funding excess)
over a period not to exceed thirty years. The following table shows the components of
the District’s annual OPEB cost for the year, the amount actually contributed, and
changes in the OPEB obligation:
2010
Annual required contribution (ARC)
$
Interest on net OPEB obligation
Adjustment to annual required contribution
Annual OPEB cost (expense)
Contributions made
Change in net OPEB obligation
(1)
Net OPEB obligation – Beginning of Year
Net OPEB obligation - End of Year
$
535,232
5,751
-
(5,095)
-
545,497
535,232
(527,694)
(420,215)
17,803
115,017
115,017
$
(1)
544,841
2009
132,820
$
115,017
GASB Statement No. 45 provides for prospective implementation, therefore the
beginning net OPEB obligation is set at zero as of the beginning of the initial year.
-36-
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
NOTES TO FINANCIAL STATEMENTS
June 30, 2010 and 2009
NOTE 11 - POSTEMPLOYMENT HEALTH CARE BENEFITS: (continued)
The District’s annual OPEB cost for the year, the percentage of annual OPEB cost
contributed, and the net OPEB obligation for the fiscal year was as follows:
Fiscal Year
Ended
6/30/2009
6/30/2010
Percentage of
Annual OPEB
Cost Contributed
Annual
OPEB Cost
$
$
535,232
545,497
78.5%
96.7%
Net OPEB
Obligation
$
$
115,017
132,820
Fiscal year 2008-09 was the year of implementation of GASB Statement No. 45 and the
District elected to implement prospectively. In future years, three-year trend information
will be presented.
Funding Status and Funding Progress
As of June 1, 2009, the most recent actuarial valuation date, the plan was unfunded. The
actuarial accrued liability for benefits as well as the unfunded actuarial accrued liability
(UAAL) was $4,852,364. The covered payroll (annual payroll of active employees
covered by the plan) was $16,251,014, and the ratio of the UAAL to the covered payroll
was 29.86%. Although the plan has no segregated assets, the District does maintain a
retiree benefits fund to designate resources for retiree health care costs. The fund’s
designated balance was $3,398,886 and $1,240,012 at June 30, 2010 and 2009,
respectively.
Actuarial valuations of an ongoing benefit plan involve estimates of the value of reported
amounts and assumptions about the probability of occurrence of events far into the future.
Examples include assumptions about future employment, mortality, and the healthcare
cost trend. Amounts determined regarding the funded status of the plan and the annual
required contributions of the employer are subject to continual revision as actual results
are compared with past expectations and new estimates are made about the future. The
schedule of funding progress, presented as required supplementary information following
the notes to the financial statements, presents multiyear trend information about whether
the actuarial value of plan assets, if any, is increasing or decreasing over time relative to
the actuarial accrued liabilities for benefits.
-37-
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
NOTES TO FINANCIAL STATEMENTS
June 30, 2010 and 2009
NOTE 11 - POSTEMPLOYMENT HEALTH CARE BENEFITS: (continued)
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan
(the plan as understood by the employer and the plan members) and include the types of
benefits provided at the time of each valuation and the historical pattern of sharing of
benefit costs between the employer and plan members to that point. The actuarial
methods and assumptions used include techniques that are designed to reduce the effects
of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, if
any, consistent with the long-term perspective of the calculations.
In the June 1, 2009 actuarial valuation, the entry age normal actuarial cost method was
used. The actuarial assumptions included a 5.0 percent investment rate of return (net of
administrative expenses) which is a blended rate of the expected long-term investment
returns on plan assets and on the employers own investments calculated based on the
funded level of the plan at the valuation date, and an annual healthcare cost trend rate of 4
percent. The UAAL is being amortized as a level percentage of projected payroll over 30
years. The District will need to make an election with respect to whether to use an
“open” or “closed” amortization period in future valuations.
NOTE 12 - JOINT VENTURES (JOINT POWERS AGREEMENTS):
The District participates in seven joint Powers Agreements (JPA) entities, Monterey
County Schools Insurance Group, Bay Area Community College Districts, School
Association for Excess Risk (SAFER), the Statewide Association of Community
Colleges (SWACC), Protected Insurance Program for Schools (PIPS), South Bay
Regional Public Safety Training Consortium and the Monterey County Delinquent Tax
Finance Authority (the Authority). The relationship between the District and the JPAs is
such that the JPAs are not component units of the District for financial reporting
purposes.
Monterey County Schools Insurance Group administers medical, dental and vision
benefit programs for its member districts.
-38-
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
NOTES TO FINANCIAL STATEMENTS
June 30, 2010 and 2009
NOTE 12 - JOINT VENTURES (JOINT POWERS AGREEMENTS): (continued)
Bay Area Community College Districts administers a cooperative insurance program for
member districts. Under this program, member districts are insured under certain liability
and property insurance policies purchased by the Agency. The Agency is governed by a
board comprised of one representative for each member district. Coverages under current
policies provide for the member districts to pay for the first $10,000 and the Agency to
pay for the next $240,000 on each property claim and the next $90,000 for each liability
claim. Claims over the $250,000 and $100,000 self-insured retention are covered by
excess insurance pools.
SAFER provides excess property and liability program protection for its member
agencies. SAFER is governed by a board which is comprised of one or two members,
determined based on ADA (Average Daily Attendance) or FTES, for each participating
district. Each member’s contribution is determined based on its respective total insurable
values, loss history, unusual exposures and other information relative to providing
coverage. The base contribution rate may be subject to modification based on each
member’s claim experience.
SWACC provides liability and property insurance for approximately nineteen community
colleges. SWACC is governed by a Board comprised of a member of each of the
participating districts. The board controls the operations of SWACC, including selection
of management and approval of members beyond their representation on the Board. Each
member shares surpluses and deficits proportionately to its participation in SWACC.
PIPS provides workers’ compensation insurance protection to its membership for public
schools and community colleges throughout California.
The South Bay Regional Public Safety Training Consortium provides education and
training to public safety students of participating community colleges.
The Authority purchases delinquent ad valorem property taxes from school agencies in
Monterey County to receive additional unrestricted revenues through financing of
property tax delinquencies. The Authority is a pass through entity and financial
information is not available. For the fiscal year 2009-10, the District received $78,245 in
local revenue from the Authority.
-39-
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
NOTES TO FINANCIAL STATEMENTS
June 30, 2010 and 2009
NOTE 12 - JOINT VENTURES (JOINT POWERS AGREEMENTS): (continued)
Each JPA is governed by a board consisting of a representative from each member
district. Each governing board controls the operations of its JPA independent of any
influence by the Hartnell Community College District beyond the District’s
representation on the governing boards.
Each JPA is independently accountable for its fiscal matters. All JPAs maintain their
own accounting records. Budgets are not subject to any approval other than that of the
respective governing boards.
Member districts share surpluses and deficits
proportionately to their participation in the JPA.
The relationships between the Hartnell Community College District and the JPAs are
such that the JPA is not a component unit of the District for financial reporting purposes.
Separate financial statements for each JPA may be obtained from the respective entity.
Condensed financial information for the most current information available is as follows:
Bay Area
CCD
6/30/2009
(Audited)
MCSIG
6/30/2009
(Audited)
SBRPSTC
6/30/2010
(Audited)
140,632
10,239
$ 6,807,484
1,766,983
$ 21,349,807
14,484,605
$ 4,394,369
1,486,800
130,393
$ 5,040,501
$ 6,865,202
$ 2,907,569
5,305,101
596,363
$ 36,307,747
36,181,611
$ 3,496,556
4,287,922
$ 75,456,028
77,341,178
$ 7,853,185
8,881,152
4,708,738
$
$ (791,366)
$ (1,885,150)
$ (1,027,967)
SWACC
6/30/2010
(Unaudited)
PIPS
6/30/2010
(Audited)
Total assets
Total liabilities
$ 46,019,292
21,417,925
$ 117,734,937
69,742,511
$
Net assets
$ 24,601,367
$ 47,992,426
$
Total revenues
Total expenditures
$ 11,118,079
12,547,315
$
Change in net assets
$ (1,429,236)
$
-40-
SAFER
6/30/2009
(Audited)
126,136
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
NOTES TO FINANCIAL STATEMENTS
June 30, 2010 and 2009
NOTE 13 - RISK MANAGEMENT:
The District is exposed to various risks of loss related to torts; theft of, damage to, and
destruction of assets; errors and omissions; injuries to employees; natural disasters; and
medical claims. The District contracts with the Statewide Association of Community
Colleges (SWACC), School Association of Excess Risk (SAFER) and Bay Area
Community College District Joint Powers Authority for property and liability insurance
coverage. Settled claims have not exceeded the coverage provided by the JPA in any of
the past three fiscal years.
The District participated in the Protected Insurance Program for Schools (PIPS), an
insurance purchasing pool. The intent of PIPS is to achieve the benefit of a reduced
premium for the District by virtue of its grouping and representation with other
participants in the PIPS. The workers’ compensation experience of the participating
districts is calculated as one experience, and a common premium rate is applied to all
districts in the PIPS. Each participant pays its workers’ compensation premium based on
its individual rate. Total savings are then calculated and each participant’s individual
performance is compared to the overall saving. A participant will then either receive
money from or be required to contribute to the “equity-pooling fund.” This “equity
pooling” arrangement ensures that each participant shares equally in the overall
performance of the PIPS. Participation in the PIPS is limited to community college
districts that can meet the PIPS’s selection criteria.
NOTE 14 - RESTATEMENTS:
Beginning Net Assets – Fiscal Year Ended June 30, 2009
Beginning net assets on the statement revenues, expenses and changes in net assets has
been restated to reflect the:
Capital assets, net of accumulated depreciation
not recorded in previous years for the King City
Campus Center Building
-41-
$ 2,327,754
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
NOTES TO FINANCIAL STATEMENTS
June 30, 2010 and 2009
NOTE 15 - COMMITMENTS AND CONTINGENCIES:
A.
Litigation
The District is involved in various claims and legal actions arising in the ordinary
course of business. In the opinion of management, the ultimate disposition of these
matters will not have a material adverse effect on the District’s financial
statements.
B.
State and Federal Allowances, Awards and Grants
The District has received state and Federal funds for specific purposes that are
subject to review and audit by the grantor agencies. Although such audits could
generate expenditure disallowances under terms of the grants, it is believed that any
required reimbursement will not be material.
C.
Purchase Commitments
As of June 30, 2010 and 2009, the District was committed under various capital
expenditure purchase agreements for construction and modernization projects
totaling $26,000,000 and $31,065,000, respectively. Projects will be funded
through bond proceeds and state funds.
-42-
DRAFT for Discussion Purposes Only
REQUIRED SUPPLEMENTARY INFORMATION
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
SCHEDULE OF POST EMPLOYMENT HEALTHCARE BENEFITS FUNDING PROGRESS
For the Fiscal Year Ended June 30, 2010
Actuarial
Valuation Date
6/1/2009
Actuarial Value
of
Assets
(AVA)
$
-
Actuarial Accrued
Liability
(Unit Cost Method)
(AAL)
Unfunded Actuarial
Accrued Liability
(UAAL)
$
$
4,852,364
4,852,364
Funding
Ratio
0.0%
Covered
Payroll
$
UAAL as a
Percentage of
Covered Payroll
16,251,014
Note: Fiscal year 2008-09 was the year of implementation of GASB Statement No. 45 and the District elected to implement prospectively,
therefore, prior year comparative data is not available. In future years, three year trend actuarial information will be presented.
Although the plan has no segregated assets, the District does maintain a retiree benefits fund to designate resources for retiree health
care costs. At June 30, 2010, the funds designated balance was $3,398,886.
See the accompanying notes to the required supplementary information.
-43-
29.86%
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2010
NOTE 1 - PURPOSE OF SCHEDULES:
Schedule of Post Employment Healthcare Benefits Funding Progress
This schedule is prepared to show information for the most recent actuarial valuation and
in future years, the information from the three most recent actuarial valuations in
accordance with Statement No. 45 of the Governmental Accounting Standards Board,
Accounting and Financial Reporting by Employers for Postemployment Benefits Other
Than Pensions. The schedule is intended to show trends about the funding progress of
the District’s actuarially determined liability for post employment benefits other than
pensions.
-44-
DRAFT for Discussion Purposes Only
SUPPLEMENTARY INFORMATION
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
HISTORY AND ORGANIZATION
June 30, 2010
The Hartnell Community College District was established in 1949 and serves communities in
both Monterey and San Benito counties. The District currently operates one college.
BOARD OF TRUSTEES
Member
Office
Term Expiration
Patricia Donohue
President
November 2011
Kevin Healy
Vice President
November 2011
William Freeman
Member
November 2011
Elia Gonzalez-Castro
Member
November 2011
Erica Padilla-Chavez
Member
November 2013
Candi DePauw
Member
November 2013
Ray Montemayor
Member
November 2013
Shaundra Taylor
Student Trustee, Hartnell College
June 2011
DISTRICT EXECUTIVE OFFICERS
Dr. Phoebe K. Helm
Superintendent/President
Dr. Suzanne Flannigan
Vice President for Academic Affairs and Accreditation
Mr. Gary Hughes
Associate Vice President for Administrative Information Systems
and Library Services
Mr. Kent Stephens
Vice President for Support Operations
Ms. Terri Pyer
Associate Vice President for Human Resources
Dr. Gregory Peterson
Vice President for Student Affairs
Ms. Beverly Grova
Vice President for Advancement
-45-
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Fiscal Year Ended June 30, 2010
Federal Grantor/Pass-Through
Grantor/Program or Cluster Title
U. S. DEPARTMENT OF EDUCATION
Direct:
Financial Aid Cluster:
PELL Grant
Financial Aid Administration Allowance
Academic Competitiveness Grant
Federal Work Study
American Recovery and Reinvestment Act: Federal Work Study
Supplemental Educational Opportunity Grants (S.E.O.G.)
Total Financial Aid Cluster
College Cost Reduction and Access Act - Math & Science
Child Care Access Grant
GEAR UP (East Salinas)
Title V - STEM
Title V - Gavilan
Student Support Services Program
Migrant Ed - High School Equivalency Program
CFDA
Number
Pass-Through Entity
Identifying Number
84.063
84.000
84.375
84.033
84.033
84.007
N/A
N/A
N/A
N/A
N/A
N/A
84.031C
84.335A
84.334A
84.031S
84.031S
84.042A
84.141N
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Total direct from U.S. Department of Education
Program
Expenditures
$
7,772,910
12,110
101,228
139,176
27,722
118,335
8,171,481
926,624
13,665
723,380
346,828
726,531
271,526
328,109
11,508,144
Passed through from California Community Colleges Chancellor's Office
Carl D. Perkins Career and Technical Education (CTE) Act
CTE - Title I, Part C
CTE - Title II, Tech Prep
American Recovery and Reinvestment Act: State Fiscal Stabilization Fund
84.048
84.243
84.394
07-C01-021
N/A
N/A
262,217
67,750
218,747
Passed through from the California State Department of Rehabilitation
Workability III Department of Rehabilitation
84.126A
26014
201,190
Passed through from the Foundation of California State University, Monterey
Bay
College Cost Reduction and Access Act - Math & Science
84.031C
5024701A-081120-S-A
70,904
Total passed through from U.S. Department of Education
820,808
DEPARTMENT OF HEALTH AND HUMAN SERVICES
Passed through from the University of California, Santa Cruz
National Institute of Health
93.375
S0180631
13,476
Passed through from California Community Colleges Chancellor's Office
Temporary Assistance for Needy Families (TANF)
American Recovery and Reinvestment Act: Emergency Contingency Fund for
Temporary Assistance for Needy Familieies (TANF)
Foster Care - Title IV-E
93.558
N/A
54,339
93.714
93.658
NA
N/A
15,000
147,632
Passed through from the County of Monterey, Department of Social and
Employee Services
Foster Care - Title IV-E (DSES)
93.658
N/A
402,239
Passed through from Yosemite Community College District
Child Development Training Consortium
93.575
N/A
10,029
Total passed through from Department of Health and Human Services
See the accompanying notes to the supplementary information.
-46-
642,715
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Fiscal Year Ended June 30, 2010
Federal Grantor/Pass-Through
Grantor/Program or Cluster Title
NATIONAL SCIENCE FOUNDATION
Direct:
Improving Student Success in Computer Science, Engineering, and
Mathematics
Improving Women and Latino Enrollment in STEM Program
CFDA
Number
Pass-Through Entity
Identifying Number
47.076
47.076
N/A
N/A
Program
Expenditures
177,735
23,750
Total direct from National Science Foundation
201,485
Passed through from the University of California, Santa Cruz
Transforming Undergraduate Laboratory Experience
47.076
DUE-0816754
2,481
47.076
5027501A-120409-C-A
35,690
Passed through from the University Corporation at California
State University, Monterey Bay
Monterey Bay Advanced Networking Education Consortium
Total passed through from the National Science Foundation
38,171
CORPORATION FOR NATIONAL AND COMMUNITY SERVICE
Direct:
National Service Award for Scholarships
94.006
N/A
44,125
Total direct from the Corporation for National and Community Service
U.S. DEPARTMENT OF AGRICULTURE
Passed through from the California Department of Education
Child Care Food Program
44,125
10.558
2850-6A
8,479
Total passed through from the U.S. Department of Agriculture
8,479
U.S. DEPARTMENT OF LABOR
Passed through from the Monterey County Office of Education
Agricultural and Industrial Technology Training Program
Workforce Investment Grant
Passed through from the Employment Development Department (EDD)
American Recovery and Reinvestment Act: Workforce Investment Act:
Green Building and Clean Energy Project
17.000
17.259
N/A
N/A
132,889
5,655
17.258
N/A
145,737
Total passed through from the U.S Department of Labor
284,281
Department of Energy
Passed through from the Employment Development Department (EDD)
American Recovery and Reinvestment Act: Green Building and Clean
Energy Project
81.041
N/A
222,999
Total passed through from the Department of Energy
222,999
Total Federal Awards
$ 13,771,207
Student Financial Aid Loan Programs:
Loans Outstanding
Hartnell Community College District had the following loan balance outstanding as of 6/30/10:
Stafford Loans
N/A: Pass-through entity identifying number is either not available or not applicable
See the accompanying notes to the supplementary information.
-47-
$
271,029
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
SCHEDULE OF EXPENDITURES OF STATE AWARDS
For the year ended June 30, 2010
Cash
Received
Program
GENERAL FUND
Block Grant
Basic Skills
California State Grants (CAL Grants)
CalWorks
Career Technical Education Equipment for Nursing
Career Technical Education Growth & Enrollment Retention for Nursing
Career Technical Regional Occupation Partner #1
Career Technical Regional Occupation Partner #2
Career Technical Regional Occupation Partner #3
Career Technical Education Linking After School Employment
Cooperative Agency Resource Education (CARE)
Disabled Students Programs and Services (DSP&S)
Entrepreneurship Career Pathways Projects (YEP)
Extended Opportunity Program and Services (EOPS)
Faculty and Staff Development
Faculty and Staff Diversity (Equal Employment Opportunity)
First 5 Contract
Foster & Kinship Care Education (FKCE) 25%
Industry Driven Regional Collaborative Food Safety Tech
Industry Driven Regional Collaborative Sustainable Construction
Mathematics-Engineering-Science-Achievement (MESA)
Matriculation
Probation Contract - FKCE
Probation Contract
Small Business Development Center (SBDC)
Student Financial Aid Administration (SFAA)
Telecommunications and Technology Infrastructure Program (TTIP)
Transfer and Articulation (California Articulation Number Grant)
Youth Empowerment Strategies for Success-Independent Living Program (YESS-ILP)
Subtotal
CHILD DEVELOPMENT
Child Care Tax Bailout to Community College Districts
State Instructional Materials and Supplies Contract
State Preschool
Subtotal
Total
$
553,941
145,172
434,459
183,213
18,871
195,794
205,239
361,090
310,000
284,341
111,394
417,551
49,768
544,473
12,132
48,461
Program Revenues
Accounts
Deferred
Receivable
Revenue
$
1,241,611
364,837
69,154
451,411
183,213
18,871
155,733
205,239
88,510
6,299
225,368
102,321
320,380
49,768
540,400
3,987
6,556
9,895
49,211
101,520
103,215
50,568
236,803
25,775
31,300
74,393
301,435
7,001
519
22,482
3,806,164
164,568
164,568
$ 1,406,179
35,537
254
492,362
528,153
$ 4,334,317
40,061
19,838
272,580
303,701
78,811
9,073
97,171
4,073
8,145
41,905
9,895
12,418
9,524
17,306
12,642
75,099
41,191
31,300
11,903
62,490
306,114
7,001
519
4,679
22,482
164,260
4,883,515
$
92,508
92,508
256,768
See the accompanying notes to the supplementary information.
-48-
189,104
76,018
16,952
36,793
91,996
161,008
37,926
277,994
25,775
35,537
254
564,422
600,213
$ 5,483,728
$
Total
Revenue
$
Program
Expenditures
$
$
364,837
69,154
451,411
183,213
18,871
155,733
205,239
88,510
6,299
225,368
102,321
320,380
49,768
540,400
3,987
6,556
9,895
49,211
101,520
103,215
50,568
236,803
25,775
31,300
74,393
301,435
7,001
519
22,482
3,806,164
35,537
254
492,362
528,153
4,334,317
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
SCHEDULE OF WORKLOAD MEASURES FOR STATE GENERAL APPORTIONMENT
ANNUAL (ACTUAL) ATTENDANCE
For the Fiscal Year Ended June 30, 2010
Revised
Reported
Data
Categories
A. Summer Intersession (Summer 2009 only)
1
1. Noncredit
2. Credit
B. Summer Intersession (Summer 2010 - Prior to July 1, 2010)
D. Total FTES
3.38
842.17
1.53
1.53
4,697.34
426.33
4,697.34
426.33
35.34
940.04
35.34
940.04
298.52
127.99
-
298.52
127.99
-
7,372.64
Supplemental Information (subset of above information)
E. In-Service Training Courses (FTES)
602.14
H. Basic Skills courses and Immigrant Education
1
(a) Noncredit
(b) Credit
13.50
470.13
CCFS 320 Addendum
CDCP Noncredit FTES
1.62
Centers FTES
1
(a) Noncredit
(b) Credit
1
9.25
432.74
Including Career Development and College Preparation (CDCP) FTEs
See the accompanying notes to the supplementary information.
-49-
Audited
Data
3.38
842.17
1
1. Noncredit
2. Credit
C. Primary Terms (Exclusive of Summer Intersession)
1. Census Procedure Courses
(a) Weekly Census Contact Hours
(b) Daily Census Contact Hours
2. Actual Hours of Attendance Procedure Courses
1
(a) Noncredit
(b) Credit
3. Independent Study/Work Experience
(a) Weekly Census Contact Hours
(b) Daily Census Contact Hours
(c) Noncredit Independent Study/Distance
Education Courses
Audit
Adjustments
-
7,372.64
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
RECONCILIATION OF ANNUAL FINANCIAL AND BUDGET
REPORT WITH AUDITED FUND BALANCES
For the Fiscal Year Ended June 30, 2010
The audit resulted in no adjustment to the fund balances reported on the June 30, 2010 Annual
Financial and Budget Report (CCFS-311) based upon governmental accounting principles.
The financial data for the District’s County of Monterey School District’s Debt Service Fund is a
component part of these financial statements and is not reported in the District’s CCFS-311
series.
Additional entries were made to comply with the GASB 34/35 reporting requirements. These
entries are not considered audit adjustments for purposes of this reconciliation.
See the accompanying notes to the supplementary information.
-50-
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
SCHEDULE OF FINANCIAL TRENDS AND ANALYSIS
For the Fiscal Year Ended June 30,
(Budget) 2011
Amount
%
2010
Amount
2009
%
Amount
%
13,629
15,217,146
22,603,328
-
0.04
40.87
60.71
101.62
2008
Amount
%
12,464
14,861,596
21,783,173
743
0.03
40.82
59.82
0.00
36,657,976
100.67
UNRESTRICTED GENERAL FUND:
Revenue
Federal
State
County and Local
Other Financing sources
$
Total Revenue
Expenditures
Academic Salaries
Classified Salaries
Employee Benefits
Supplies and Materials
Other Operating Expenses and Services
Capital Outlay
Other Uses
17,000
15,159,366
19,517,854
-
0.05
43.69
56.26
-
34,694,220
100.00
12,231,609
7,182,752
7,028,058
510,450
8,001,894
209,457
(470,000)
Total Expenditures
34,694,220
$
35.26
20.70
20.26
1.47
23.06
0.60
(1.35)
100.00
17,483
15,925,613
20,715,920
100,000
0.05
44.55
57.95
0.28
$
36,759,016
102.83
37,834,103
12,502,786
6,117,644
6,289,008
385,594
3,634,696
177,680
6,642,836
34.97
17.11
17.59
1.08
10.17
0.50
18.58
13,700,149
7,249,762
7,328,482
346,252
8,881,502
111,236
(386,093)
35,750,244
100.00
37,231,290
$
36.80
19.47
19.68
0.93
23.86
0.30
(1.04)
13,328,254
7,433,292
7,165,075
495,968
8,001,335
486,930
(498,550)
100.00
36,412,304
Restatement
Change in Fund Balance
$
-
Ending Fund Balance
$
4,558,291
-
$
1,008,772
2.83
$
602,813
1.62
$
13.14
$
4,558,291
12.75
$
3,549,519
9.53
$
(2.51)
(667,792)
(1.84)
2,946,706
6,819
7,373
7,624
6,586
Full-Time Equivalent Students (Funded)
6,819
6,819
7,083
6,586
$ 136,693,402
$ 133,689,873
$ 83,994,545
$ 73,883,569
IMPORTANT NOTES:
The California Community College Chancellor's Office has provided guidelines that recommend an ending fund balance of 3% of expenditures as a minimum,
with a prudent ending fund balance being 5% of expenditures.
Full-time Equivalent Students (FTES) includes resident and nonresident factored FTES.
All percentages are of total expenditures.
The 2011 Budget was adopted by the Board of Trustees on October 5, 2010.
Factored FTES represent actual FTES as reported on page 49. Funded FTES represent the FTES used by the California Community College Chancellor's Office
to determine apportionment funding.
See the accompanying notes to the supplementary information.
-51-
100.00
(913,464)
Full-Time Equivalent Students (Factored)
Total Long-Term Debt
36.61
20.41
19.68
1.36
21.97
1.34
(1.37)
8.09
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
NOTES TO SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2010
NOTE 1 - PURPOSE OF SCHEDULES:
A.
Schedules of Expenditures of Federal Awards and State Financial Assistance
The audit of the Hartnell Community College District for the year ended June 30,
2010 was conducted in accordance with OMB Circular A-133, which requires a
disclosure of the financial activities of all federally funded programs. To comply
with A-133 and state requirements, the Schedule of Expenditures of Federal
Awards and the Schedule of State Financial Assistance was prepared for the
Hartnell Community College District on the modified accrual basis of accounting.
Subrecipients
Of the Federal expenditures presented in the Schedule of Federal Awards, the
District provided Federal awards to subrecipients as follows:
Federal Grantor/Pass-Through
Grantor/Program
CFDA
Number
Amount Provided
to Subrecipients
U.S. Department of Education
GEAR-UP - Salinas Union High School District
Title V - Gavilan College
84.334A
84.031S
U.S. Department of Labor
American Recovery and Reinvestment Act: Workforce
Investment Act: Green Building and Clean Energy
Project - Cabrillo College
17.258
52,943
U.S. Department of Energy
American Recovery and Reinvestment Act: Green
Building and Clean Energy Project - Cabrillo College
81.041
81,011
$
$
B.
594,210
337,779
1,065,943
Schedule of Workload Measures for State General Apportionment
The Schedule of Workload Measures for State General Apportionment represents
the basis of apportionment of the Hartnell Community College District's annual
source of funding.
C.
Reconciliation of Annual Financial and Budget Report with Audited Fund Balances
This schedule reports any audit adjustments made to the fund balances of all funds
as reported on the Form CCFS-311.
D.
Schedule of General Fund Financial Trends and Analysis
This report is prepared to show financial trends of the Unrestricted General Fund
over the past three fiscal years as well as the current year budget. This schedule is
intended to identify if the District faces potential fiscal problems and if they have
met the recommended available reserve percentages.
-52-
DRAFT for Discussion Purposes Only
OTHER INDEPENDENT AUDITORS’ REPORTS
DRAFT for Discussion Purposes Only
REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER
MATTERS BASED ON AN AUDIT OF FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
The Board of Trustees
Hartnell Community College District
411 Central Avenue
Salinas, California 93901
We have audited the basic financial statements of Hartnell Community College District (the District) as of
and for the year ended June 30, 2010 which collectively comprise the District’s basic financial statements,
and have issued our report thereon dated November 17, 2010. We conducted our audit in accordance with
auditing standards generally accepted in the United States of America and the standards applicable to
financial audits contained in Government Auditing Standards, issued by the Comptroller General of the
United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered Hartnell Community College District’s internal
control over financial reporting as a basis for designing our auditing procedures for the purpose of
expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of Hartnell Community College District’s internal control over financial reporting.
Accordingly, we do not express an opinion on the effectiveness of Hartnell Community College District’s
internal control over financial reporting.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination
of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of
the entity’s financial statements will not be prevented, or detected and corrected on a timely basis.
-53-
DRAFT for Discussion Purposes Only
REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER
MATTERS BASED ON AN AUDIT OF FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
Our consideration of internal control over financial reporting was for the limited purpose described in the
first paragraph of this section and was not designed to identify all deficiencies in internal control over
financial reporting that might be deficiencies, significant deficiencies, or material weaknesses. We did not
identify any deficiencies in internal control over financial reporting that we consider to be material
weaknesses, as defined above. However, we identified a certain deficiency in internal control over
financial reporting, described in the accompanying schedule of findings and questioned costs as item 10-1
that we consider to be a significant deficiency in internal control over financial reporting. A significant
deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a
material weakness, yet important enough to merit attention by those charged with governance.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether Hartnell Community College District’s financial
statements are free of material misstatement, we performed tests of its compliance with certain provisions
of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and
material effect on the determination of financial statement amounts. However, providing an opinion on
compliance with those provisions was not an objective of our audit and, accordingly, we do not express
such an opinion. The results of our tests disclosed an instance of noncompliance or other matters that is
required to be reported under Government Auditing Standards and which is described in the accompanying
schedule of findings and questioned costs as item 10-2.
Hartnell Community College District’s responses to the findings identified in our audit are described in the
accompanying schedule of findings and questioned costs. We did not audit the District’s responses and,
accordingly, we express no opinion on them.
This report is intended solely for the information and use of management, the audit committee, Board of
Trustees, the California Department of Finance, the State Chancellor’s Office and federal awarding
agencies and pass-through entities and is not intended to be and should not be used by anyone other than
these specified parties.
VICENTI, LLOYD & STUTZMAN LLP
November 17, 2010
-54-
DRAFT for Discussion Purposes Only
INDEPENDENT AUDITOR’S REPORT ON
COMPLIANCE WITH REQUIREMENTS
APPLICABLE TO EACH MAJOR PROGRAM AND ON
INTERNAL CONTROL OVER COMPLIANCE IN
ACCORDANCE WITH OMB CIRCULAR A-133
The Board of Trustees
Hartnell Community College District
411 Central Avenue
Salinas, California 93901
Compliance
We have audited the compliance of Hartnell Community College District (the District) with the types of
compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133
Compliance Supplement that are applicable to each of its major federal programs for the year ended
June 30, 2010. The District’s major federal programs are identified in the summary of auditor’s results
section of the accompanying schedule of findings and questioned costs. Compliance with the requirements
of laws, regulations, contracts and grants applicable to each of its major federal programs is the
responsibility of the District’s management. Our responsibility is to express an opinion on the District’s
compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of
States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133
require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance
with the types of compliance requirements referred to above that could have a direct and material effect on
a major federal program occurred. An audit includes examining, on a test basis, evidence about the
District’s compliance with those requirements and performing such other procedures as we considered
necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our
audit does not provide a legal determination of the District's compliance with those requirements.
-55-
DRAFT for Discussion Purposes Only
INDEPENDENT AUDITOR’S REPORT ON
COMPLIANCE WITH REQUIREMENTS
APPLICABLE TO EACH MAJOR PROGRAM AND ON
INTERNAL CONTROL OVER COMPLIANCE IN
ACCORDANCE WITH OMB CIRCULAR A-133
In our opinion, the District complied, in all material respects, with the requirements referred to above that
are applicable to each of its major federal programs for the year ended June 30, 2010.
Internal Control Over Compliance
The management of the District is responsible for establishing and maintaining effective internal control
over compliance with requirements of laws, regulations, contracts and grants applicable to federal
programs. In planning and performing our audit, we considered the District’s internal control over
compliance with requirements that could have a direct and material effect on a major federal program in
order to determine our auditing procedures for the purpose of expressing our opinion on compliance, and to
test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the
purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly,
we do not express an opinion on the effectiveness of the District’s internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees in the normal course of performing their assigned
functions to prevent or detect and correct noncompliance with a type of compliance requirement of a
federal program on a timely basis. A material weakness in internal control over compliance is a deficiency,
or combination of deficiencies in internal control over compliance such that there is a reasonable
possibility, that material noncompliance with a type of compliance requirement of a federal program will
not be prevented or detected and corrected on a timely basis.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be deficiencies, significant deficiencies or material weaknesses. We did not identify
any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined
above.
This report is intended solely for the information and use of management, the audit committee, Board of
Trustees, the California Department of Finance, the State Chancellor’s Office and federal awarding
agencies and pass-through entities and is not intended to be and should not be used by anyone other than
these specified parties.
VICENTI, LLOYD & STUTZMAN LLP
November 17, 2010
-56-
DRAFT for Discussion Purposes Only
REPORT ON STATE COMPLIANCE
The Board of Trustees
Hartnell Community College District
411 Central Avenue
Salinas, California 93901
We have audited the basic financial statements of Hartnell Community College District, as of and for the
year ended June 30, 2010, and have issued our report thereon dated November 17, 2010.
Our audit was made in accordance with auditing standards generally accepted in the United States of
America, and the standards for financial and compliance audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. An audit includes examining, on a test
basis, evidence about the District’s compliance with those requirements and performing such other
procedures as we considered necessary in the circumstances. We believe that our audit provides a
reasonable basis for our opinion. Our audit does not provide a legal determination of the District’s
compliance with those requirements.
In connection with our audit referred to above, we selected and tested transactions and records to determine
the District’s compliance with the following state laws and regulations in accordance with the Chancellor’s
Office’s California Community Colleges Contracted District Audit Manual (CDAM). Management is
responsible for the District’s compliance with those requirements. Our responsibility is to express an
opinion on the District’s compliance based on our examination:

Whether the District's salaries of classroom instructors equal or exceed 50 percent of the
District's current expense of education in accordance with Section 84362 of the Education
Code.

Whether the District has the appropriate documentation to support the FTES, if any, that are
claimed for instructional service agreements/contracts.

Whether the District has the ability to support timely accurate and complete information for
workload measures used in the calculation of State General Apportionment.
-57-
DRAFT for Discussion Purposes Only
REPORT ON STATE COMPLIANCE

Whether the District has acted to ensure that the residency of each student is properly
classified and that only the attendance of California residents is claimed for apportionment
purposes.

Whether the District claimed for apportionment purposes only the attendance of students
actively enrolled in a course section as of the census date.

Whether District has complied with all requirements necessary to claim FTES for the
attendance of concurrently enrolled K-12 pupils.

For programs not impacted by the provisions of Education Code Section 84043, whether the
District had local funds to support at least 75 percent of the credit matriculation activities
and that all matriculation expenditures are consistent with the District's State approved
matriculation plan.

For programs impacted by the provisions of Education Code Section 84043, whether the
District held a regularly scheduled public hearing before funds were redirected and whether
the funds were redirected among designated programs.

Whether the Gann Limit Calculation was properly calculated and supported by adequate
documentation.

Whether the District is reporting the total amount that students should have paid for
enrollment fees for the purpose of determining the District’s share of annual apportionment.

Whether the District expended CalWORKS program State and TANF funds to provide
specialized student support services, curriculum development, or instruction to eligible
CalWORKS students.

Whether the District spent an amount equal to or greater than the amount provided by the
State for scheduled maintenance and special repairs. Funds provided by the State must be to
supplement, not supplant, District scheduled maintenance funds. The amount expended for
plant maintenance and operations during the base year of 1995-96 was $1,998,725.

Whether all District courses that qualify for State apportionment are open to enrollment by
the general public unless specifically exempted by statute.

Whether the District has adopted policies or regulations regarding the authority of the
District to require students to provide various types of instructional materials and whether
the District has advised students of the exemptions from payment of health fees and
established a process to ensure that students may claim the exemptions.
-58-
DRAFT for Discussion Purposes Only
REPORT ON STATE COMPLIANCE
In our opinion, except for finding 10-2 described in the accompanying schedule of findings and questioned
costs Hartnell Community College District complied with the compliance requirements for the state
programs listed and tested above. Nothing came to our attention as a result of the aforementioned
procedures to indicate that Hartnell Community College District had not complied with the terms and
conditions of state assisted educational programs not selected for testing.
Our examination of compliance made for the purposes set forth in the preceding paragraph of this report
would not necessarily disclose all instances of noncompliance.
The Hartnell Community College District’s (the District) response to the finding identified in our audit is
described in the accompanying schedule of findings and questioned costs. We did not audit the District’s
response and, accordingly, we express no opinion on it.
This report is intended solely for the information and use of management, the audit committee, Board of
Trustees, the California Department of Finance, the State Chancellor’s Office and federal awarding
agencies and pass-through entities and is not intended to be and should not be used by anyone other than
these specified parties.
VICENTI, LLOYD & STUTZMAN LLP
November 17, 2010
-59-
DRAFT for Discussion Purposes Only
FINDINGS AND RECOMMENDATIONS
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
SUMMARY OF AUDITOR RESULTS
June 30, 2010
Financial Statements
Type of auditor’s report issued:
Unqualified
Internal control over financial reporting:
Material weakness(es) identified?
Significant deficiency(ies) identified not considered
to be material weaknesses?
Yes
X
Noncompliance material to financial statements noted?
X
No
Yes
None reported
Yes
X
No
Yes
X
No
Yes
X
None reported
X
No
Federal Awards
Internal control over major programs:
Material weakness(es) identified?
Significant deficiency(ies) identified not considered
to be material weaknesses?
Type of auditor’s report issued on compliance for
major programs:
Unqualified
Any audit findings disclosed that are required to be
Reported in accordance with Circular A-133,
Section .510(a)
Yes
Identification of major programs tested
CFDA Number(s)
84.000, 84.007, 84.033,
84.063 and 84.375
84.394
93.658
17.258, 81.041
Name of Federal Program or Cluster
Financial Aid Cluster
American Reinvestment Recovery Act:
State Fiscal Stabilization Fund
Foster Care – Title IV-E and Title IV-E (DSES)
American Reinvestment Recovery Act:
Green Building and Clean Energy Project
Dollar threshold used to distinguish between Type A
and Type B programs:
$
413,136
Yes
Auditee qualified as low-risk auditee?
-60-
X
No
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
RELATED TO FINANCIAL STATEMENTS
June 30, 2010
FINDING 10-1 – CLOSING PROCEDURES
Finding: The calculation of accruals for construction projects funded by the State should be
determined using the latest State certified allocation, and accrued up to the level of expenditures
incurred and adjusted for previous reimbursements received. During our audit we noted a postclosing entry of $904,827 to reduce the State receivable for project reimbursement. Based on
discussions with District staff it appears that the error was the result of both a lack of established
procedures to properly reconcile the accrual and due to a decrease in the State allocation which
had not been resolved prior to the closing process.
Recommendation: We recommend that the District establish procedures for regular monitoring
of the reconciliation process. In particular, procedures for the year-end closing process should be
established to ensure accurate accruals for reimbursements due from the State.
District Response: The appropriate Fiscal department staff will reconcile transactions to
determine appropriate costs that are to be reimbursed by the State. A receivable will be posted
for the related cost transactions. On a quarterly basis, Fiscal department staff will meet with
representative of construction management company and review all transactions for the quarter
to determine all transactions have been appropriately accounted for and reconcile with State
Certified Allocation Report.
FINDING 10-2 – INSTRUCTIONAL SERVICE AGREEMENTS
Finding: Colleges are allowed to have agreements with public and private entities to provide
instruction, known as “instructional service agreements”. The courses must be open to all
admitted students that meet approved prerequisites for the course. The District is required to
publish the course in the official general college catalog and/or the schedule of classes and/or
addenda. During our audit of instructional service agreements, we noted that the courses were
not advertised in the official general college catalog or schedule of classes. The number of FTES
claimed for those agreements was 600.
Recommendation: The District should include in their course catalog or schedule of classes all
courses that are taught by the District as well as those offered through the instructional service
agreements.
District Response: While courses offered through the South Bay Regional Public Safety
Training Consortium for 2009-10 were advertised with a flyer to students to meet the open
courses requirement, these courses were not included in the printed schedule or the 2010-11
catalog. This will be corrected, and these courses will be listed in the 2010-11 catalog to be
published in May 2011. A statement on the availability of these courses will also be included
starting in the Summer/Fall 2011 schedule.
-61-
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
STATUS OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
June 30, 2010
FINDING 09-1 – INTERNAL CONTROL
Original Finding No. 08-3
Finding: During our evaluation of internal control we noted the following deficiencies:

Cash Receipt Procedures: Proper controls over cash/checks include mail containing
cash/checks being opened at a central location and a listing of the items received
prepared. During our evaluation of internal controls we noted improvement over the prior
year. The District currently receives mail containing cash/checks at a central location.
However, it was noted that a listing of the items received is prepared only as time allows.
The listing does not indicate a deposit date to allow for the daily receipts to be reconciled
to deposits per the bank statement.

Bank Reconciliation: Proper controls over revolving cash funds include the performance
of timely reconciliations to the imprest amount. During our evaluation of internal controls
it was noted that a reconciliation of the revolving cash imprest amount is not performed
consistently.
Recommendation:
procedures:
We recommend the following changes to improve the internal control

Cash Receipts Procedures: The District should evaluate the cash receipt process and
consider implementing the preparation of a listing as the cash/checks are opened. This
listing should include documentation, such as deposit date, that can be used to verify
amounts have been properly deposited while preparing the reconciliation to the bank
statement.

Bank Reconciliations: The District should ensure that reconciliations of the revolving
cash imprest amount are being performed and reviewed.
Current Status: Implemented.
-62-
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
STATUS OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
June 30, 2010
FINDING 09-2 – CALIFORNIA WORK OPPORTUNITY AND RESPONSIBILITY
TO KIDS (CalWORKs) STATE FUNDS AND CalWORKS FEDERAL
TEMPORARY ASSISTANCE FOR NEEDY FAMILIES FUNDS
Original Finding: 07-13
Finding: The CalWORKs handbook stipulates the following: “The District’s CalWORKs
program must have a system/process in place for case management to track a student’s
continuing eligibly for program services, progress made in achieving their educational goals and
tracking the services provided to support the student.” It further states, “The District’s
CalWORKs program must have a process for tracking the expenditure of CalWORKs funds to
ensure expenditures comply with legal requirements.” In our sample of 17 CalWORKs
recipients tested for eligibility requirements, we noted 11 recipients who were receiving
CalWORKs services who did not have the proper eligibility documentation through the County
Welfare Department for each academic term served. Additionally, during our testing of
expenditures we noted three out of 19 expenditures tested had exceptions to these guidelines.
Recommendation: The District should evaluate the procedures for eligibility verification to
ensure that all students have the proper documentation from the County Welfare Department for
each academic term the student participates in the program. Services provided through other
college departments, such as the Child Care Center and other departments, must be coordinated
with the CalWORKs program office and Monterey County to verify student's ongoing eligibility
for services, academic progress, and to monitor program expenses that are directly attributable to
support for the identified CalWORKs eligible recipients. Additionally, the District should
review all expenditures to ensure there are no additional ineligible student expenditures charged
to the CalWORKs program. The District should transfer all expenditures for ineligible students
or items discovered out of the CalWORKs program.
Current Status: Implemented.
-63-
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
STATUS OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
June 30, 2010
FINDING 09-3 – SALARIES OF CLASSROOM INSTRUCTORS – 50 PERCENT LAW
Finding: During our audit of Salaries of Classroom Instructors law, the following deficiencies
were noted:

Lottery Account: In accordance with Government Code, Section 8880.5(k), the District
should have established a separate account/subfund to account for the receipt and
expenditure of unrestricted lottery funds to determine that lottery funds have been
properly excluded from the 50 Percent Law calculation. During our review of the 50
Percent Law calculation, we noted that the District does not maintain a separate account
or subfund for unrestricted lottery receipts and expenditures.

Employee Classification: Employees whose salaries are classified as instructional aides
should have job responsibilities that include assisting an instructor in a classroom setting.
During our testing of the 50 Percent Law, it was noted that two out of ten instructional
aides selected for testing were found to have job descriptions which were not
instructional in nature. These positions were a Telephone Technician and a LRC Student
Worker.
Recommendation: We recommend the following changes to be compliant with the 50 Percent
Law:

Lottery Account: The District should establish a separate account for accumulating
expenditures and recording receipts which meet Lottery requirements and which the
District plans to use for exclusion in the 50 Percent Law.

Employee Classification: The District should review the employees classified as
instructional aides and determine if job responsibilities are instructional in nature. If
additional employees are discovered to have job responsibilities that are non-instructional
in nature they should be reclassified to a non-instructional account code.
Current Status: Implemented.
-64-
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
STATUS OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
June 30, 2010
FINDING 09-4 – ALLOWABLE COSTS –
COMPENSATION FOR PERSONAL SERVICES
Original Finding Number 07-7
CFDA Title and Number: CTE (CFDA #84.048 and 84.243)
Federal Award Number: 07-C01-021
Name of Federal Agency: U.S. Department of Education
Name of Pass-through Agency: California Community College Chancellor’s Office
Compliance Requirement: B. Allowable Costs/Cost Principals
Criteria: Procedures and controls over how the District ensures compliance with time
accounting requirements were found to be ineffective. Although, we found centralized
monitoring has been established for the program noted above, we found that the required
certifications were not prepared and collected in a timely manner to document compliance.
Condition: OMB Circular A-21, Cost Principles for Educational Institutions, Part J, General
Provisions for Selected Items of Cost, No. 10, Compensation for Personal Services. (1)(e) At
least annually, a statement will be signed by the employee, principal investigator, or responsible
official(s) using suitable means of verification that the work was performed, stating that salaries
and wages charged to sponsored agreements as direct charges and to indirect cost are reasonable
in relation to work performed.
Effect: Inadequate monitoring of program compliance requirements leaves the District
vulnerable to noncompliance that could result in loss of funding and disallowed costs.
Recommendation: We recommend that the District review procedures over time certification
monitoring to ensure the appropriate documentation is collected in a timely manner and
maintained as support for the employees’ effort in the program.
Questioned Cost: Includes salaries and benefits for all multi-funded permanent professional or
professorial staff for CTE of approximately $10,600.
Current Status: Implemented.
-65-
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
STATUS OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
June 30, 2010
FINDING 09-5 – PROCUREMENT, SUSPENSION AND DEBARMENT –
SUSPENSION OR DEBARMENT CERTIFICATIONS FOR CONTRACTS
OVER $25,000
Original Finding: 07-8
CFDA Title and Number: GEAR UP (GEAR UP East Salinas) (CFDA #84.334A)
Federal Award Number: P334A060158-07
Name of Federal Agency: U.S. Department of Education
Name of Pass-through Agency: Not applicable
Compliance Requirement: I. Procurement and Suspension and Debarment
Criteria: Title 34 – Education, Part 80 – Uniform Administrative Requirements for Grants and
Cooperative Agreements to State and Local Governments, Sub-part C, Pre-Award Requirements,
Section 80.35 Sub awards to debarred and suspended parties:

Grantees and sub grantees must not make any award or permit any award (sub grant or
contract) at any tier to any party, which is debarred or suspended or is otherwise
excluded from or ineligible for participation in Federal assistance programs under
Executive Order 12549, "Debarment and Suspension."
OMB Circular A-110, Grants and Agreements with Institutions of Higher Education, Hospitals,
and Other Non-Profit Organizations, Sub-Part C, Pre-Award Requirements, Section .33
Debarment and suspension:

Federal awarding agencies and recipients shall comply with the nonprocurement
debarment and suspension common rule implementing E.O.s 12549 and 12689,
"Debarment and Suspension." This common rule restricts sub awards and contracts with
certain parties that are debarred, suspended, or otherwise excluded from or ineligible for
participation in Federal assistance programs or activities.
Condition: Internal controls, including policies and procedures, necessary to ensure compliance
with debarment requirements are not in place. Further, required debarment certifications or other
verification for each grant subrecipient were not obtained or performed per the requirements of
the Federal regulations. This must be done not only on all vendors over $25,000, but also must
be done for all subrecipients of Federal programs whose spending is over $25,000.
-66-
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
STATUS OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
June 30, 2010
FINDING 09-5 – PROCUREMENT, SUSPENSION AND DEBARMENT –
SUSPENSION OR DEBARMENT CERTIFICATIONS FOR CONTRACTS
OVER $25,000
(continued)
Effect: Grant requirements specify that the certifications must be obtained prior to entering into
an agreement to provide the sub award.
Recommendation: We recommend the District review its policies and procedures to verify all
vendors who are providing services to federally funded programs in excess of $25,000 are not
suspended or debarred or otherwise excluded. This verification may be accomplished by
checking the Excluded Parties List System (EPLS) maintained by the General Services
Administration (GSA), collecting a certification from the entity, or adding a clause or condition
to the covered transaction with that entity. The District should also update contract templates for
all contract types that exceed $25,000 to avoid a violation of the Executive Order 12549.
Questioned Cost: None.
Current Status: Implemented.
-67-
DRAFT for Discussion Purposes Only
HARTNELL COMMUNITY COLLEGE DISTRICT
STATUS OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
June 30, 2010
FINDING 09-6 – PHYSICAL INVENTORY OF CAPITAL ASSETS
Original Finding No. 08-10
CFDA Title and Number: CTE – Title I, Part C, CFDA #84.048 and College Cost Reduction
and Access Act – Math & Science, CFDA #84.031C
Federal Award Number: 07-C01-021 and P031C080096
Name of Federal Agency: U.S. Department of Education
Name of Pass-through Agency: CTE pass-through: California Community College
Chancellor’s Office
Compliance Requirement: F. Equipment and Real Property Management
Criteria: OMB Circular A-110, Uniform Administrative Requirements for Grants and
Agreements Section 34(f)(3), Property Management.
Condition: Through inquiry, we determined that a physical inventory of equipment had not
been performed in more than two years. This appears to be a systemic organizational issue and
would apply to all grants subject to compliance requirement F. Equipment and Real Property
Management.
Effect: The existence and location of equipment purchased with Federal funding is in question.
Recommendation: The District should conduct a physical inventory of all equipment purchased
with Federal funding as soon as possible. In the future, this process should be repeated every
two years in order to be in compliance with Federal regulations.
Questioned Cost: For the asset audited in the above programs the cost is $8,559 and 9,165,
respectively.
Current Status: Implemented.
-68-
AGENDA ITEM FOR BOARD MEETING OF: December 7, 2010
Title
Number
Ratify Budget Revisions
VIII. B.
Area
Status
Office of Support Operations
Prepared by: Kent Stephens
Action
Recommendation
It is recommended that the Board of Trustees ratifies the Budget Revisions for FY 2010-2011
numbered 9021 to 9053.
Background
The Board of Trustees recognizes that the annual budget of the District is a financial plan and is
subject to adjustments during the fiscal year caused by changes in enrollments, programs,
services, and the cost of goods and services.
Summary
Revisions to the adopted budget are subject to approval by the Board of Trustees. Budget
revisions consist of transfers between major object expenditures or from the appropriations for
contingencies, as well as budgetary increases for the use of funds not included in the original
budget.
All budget entry numbers are assigned automatically assuring a complete sequence accounting.
Numeric breaks on the attached report are due to the exclusion of budget transfers, which do
not require Board approval. The accompanying Budget Journal Entry Detail Report was
produced directly from the accounting software.
Budget Implication
The unrestricted General Fund budget remains unchanged. The restricted general fund budget
increased by $964,207, due to increased revenue to programs. The Associated Student Body
Fund (71) budget remains unchanged.
AGENDA ITEM FOR BOARD MEETING OF:
Title
December 7, 2010
Number
Adopt Resolution 10:16, Approving Amended
and Restated Bylaws for the Independent
Citizens’ Bond Oversight Committee
VIII. C.
Area
Status
Superintendent/President
Action (Roll-call)
Recommendation
It is recommended that the Board of Trustees adopts Resolution 10:16, Approving Amended
and Restated Bylaws for the Independent Citizens’ Bond Oversight Committee.
Background
The Hartnell Community College District was successful at the election conducted on
November 5, 2002 in obtaining authorization from the District’s voters to issue up to
$131,000,000 aggregate principal amount of the District’s general obligation bonds (Measure
H). The election was conducted under Proposition 39. Pursuant to Section 15278 of the
Education Code, the District was obligated to establish a Committee in order to satisfy the
accountability requirements of Prop 39. The Board of Trustees of the Hartnell Community
College District established the Independent Citizens’ Bond Oversight Committee in January
2003 in compliance with this requirement.
As part of the newly established Independent Citizens’ Bond Oversight Committee a set of
bylaws were created and the amended bylaws will bring the Independent Citizens’ Bond
Oversight Committee current with other Districts in the State.
Summary
The administration recommends, through consultation with Bond Counsel, that the Board adopt
Resolution 10:16, Approving Amended and Restated Bylaws for the Independent Citizens’
Bond Oversight Committee.
Budget Implications
No impact to the general fund.
-1-
HARTNELL COMMUNITY COLLEGE DISTRICT
RESOLUTION 10:16
APPROVING AMENDED AND RESTATED BYLAWS THEREFOR
WHEREAS, the Board of Trustees of the Hartnell Community College District (the
“District”) previously adopted a resolution requesting Monterey and San Benito Counties to call an
election for general obligation bonds (the “Bond Election”) to be held on November 5, 2002; and
WHEREAS, notice of the Bond Election was duly given; and on November 5, 2002 the
Bond Election was duly held and conducted for the purpose of voting a measure for the issuance of
bonds of the District in the amount of $131,000,000 (“Measure H”); and
WHEREAS, based on the Canvass and Statement of Results for the Counties, more than
fifty-five percent of the votes cast on the Measure H were in favor of issuing the aforementioned
bonds; and
WHEREAS, the Board of Trustees of the District has established independent citizens' bond
oversight committee (the “Committee”) in connection with issuance of bonds under Measure H; and
WHEREAS, the Board of Trustees has previously approved Bylaws governing such
Committee but now desires to amend and restate such Bylaws, in whole, to make them applicable to
Measure H.
NOW, THEREFORE, THE BOARD OF TRUSTEES OF THE HARTNELL COMMUNITY
COLLEGE DISTRICT DOES HEREBY FIND, DETERMINE AND CERTIFY AS FOLLOWS:
Measure H was authorized pursuant to paragraph (3) of
Section 1. Authorization.
subdivision (b) of Section 1 of Article XIIIA of the California Constitution and subdivision (b) of
Section 18 of Article XVI of the California Constitution in accordance with the requirements of the
Strict Accountability In Local School Construction Bonds Act of 2000 (the “Act”).
Section 2. Bylaws. The Committee shall operate pursuant to the Board approved Amended
and Restated Bylaws. The Committee shall have only those responsibilities granted to them in the
Act, in the resolutions calling for the election for Measure H and in the Amended and Restated
Bylaws. The Amended and Restated Bylaws, as submitted herewith and attached hereto, are hereby
approved. The previous Bylaws relating to Measure H are rescinded and of no further force and
effect.
ADOPTED, SIGNED, AND APPROVED this 7th day of December, 2010
BOARD OF TRUSTEES OF THE
HARTNELL COMMUNITY COLLEGE DISTRICT
Board President
ATTEST:
Board Secretary
DOCSSF/74429v1/024399-0001
STATE OF CALIFORNIA
MONTEREY COUNTY
)
)
)
I, Phoebe K. Helm, do hereby certify that the foregoing Resolution No. 10:16 was duly
adopted by the Board of Trustees of the Hartnell Community College District at a meeting thereof
held on 7th day of December 2010 and that it was so adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
By:
Secretary
2
DOCSSF/74429v1/024399-0001
CITIZENS' BOND OVERSIGHT COMMITTEE
AMENDED AND RESTATED BYLAWS
Section 1.
Committee Established. The Hartnell Community College District (the
"District") was successful at the election conducted on November 5, 2002 (the
“Election”), in obtaining authorization from the District's voters to issue up to
$131,000,000 aggregate principal amount of the District's general obligation
bonds. The election was conducted under Proposition 39, being chaptered as
the Strict Accountability in Local School Construction Bonds Act of 2000, at
Section 15264 et seq. of the Education Code of the State ("Prop 39"). Pursuant
to Section 15278 of the Education Code, the District is now obligated to
establish the Committee in order to satisfy the accountability requirements of
Prop 39. The Board of Trustees of the Hartnell Community College District
(the "Board") hereby establishes the Citizens' Bond Oversight Committee (the
"Committee") which shall have the duties and rights set forth in these Bylaws.
The Committee does not have independent legal capacity from the District.
Section 2.
Purposes. The purposes of the Committee are set forth in Prop 39, and these
Bylaws are specifically made subject to the applicable provisions of Prop 39 as
to the duties and rights of the Committee. The Committee shall be deemed to
be subject to the Ralph M. Brown Public Meetings Act of the State of California
and shall conduct its meetings in accordance with the provisions thereof. The
District shall provide necessary administrative support to the Committee as
shall be consistent with the Committee's purposes, as set forth in Prop 39.
The proceeds of general obligation bonds issued pursuant to the Election are hereinafter
referred to as "bond proceeds." The Committee shall confine itself specifically to bond proceeds
generated under Measure H. Regular and deferred maintenance projects and all monies generated
under other sources shall fall outside the scope of the Committee’s review.
Section 3.
Duties. To carry out its stated purposes, the Committee shall perform the duties
set forth in Section 3.1, 3.2 and 3.3 and shall refrain from those activities set
forth in Sections 3.4 and 3.5:
1
Inform the Public. The Committee shall inform the public concerning the District’s
expenditure of bond proceeds.
2
Review Expenditures. The Committee shall review expenditure reports produced by
the District to ensure that (a) bond proceeds were expended only for the purposes set
forth in the ballot measure; and (b) no bond proceeds were used for any teacher or
administrative salaries or other operating expenses, in accordance with Attorney
General Opinion 04-110 issued on November 9, 2004.
3
Annual Report. The Committee shall present to the Board, in public session, an
annual written report which shall include the following:
(a)
A statement indicating whether the District is in compliance with the
requirements of Article XIIIA, Section 1(b)(3) of the California Constitution;
and
(b)
4
5
A summary of the Committee's proceedings and activities for the preceding
year.
Duties of the Board/Superintendent/President.
Either the Board or the
Superintendent/President, as the Board shall determine, shall have the following
powers reserved to it, and the Committee shall have no jurisdiction over the
following types of activities:
(i)
Approval of construction contracts,
(ii)
Approval of construction change orders,
(iii)
Appropriation of construction funds,
(iv)
Handling of all legal matters,
(v)
Approval of construction plans and schedules,
(vi)
Approval of deferred maintenance plans, and
(vii)
Approval of the sale of bonds.
Voter-Approved Projects Only. In recognition of the fact that the Committee is
charged with overseeing the expenditure of bond proceeds, the Board has not charged
the Committee with responsibility for:
(a)
Projects financed through the State of California, developer fees,
redevelopment tax increment, certificates of participation, lease/revenue
bonds, the general fund or the sale of surplus property without bond proceeds
shall be outside the authority of the Committee.
(b)
The establishment of priorities and order of construction for the bond projects
shall be made by the Board in its sole discretion.
(c)
The selection of architects, engineers, soils engineers, construction managers,
project managers, CEQA consultants and such other professional service
firms as are required to complete the project based on District criteria
established by the Board in its sole discretion.
(d)
The approval of the design for each project including exterior materials, paint
color, interior finishes, site plan and construction methods (modular vs.
permanent) by the Board in its sole discretion and shall report to the
Committee on any cost saving techniques considered or adopted by the
Board.
(e)
The selection of independent audit firm(s), performance audit consultants and
such other consultants as are necessary to support the activities of the
Committee.
(f)
The approval of an annual budget for the Committee that is sufficient to carry
out the activities set forth in Prop 39 and included herein.
(g)
The amendment or modification of the Bylaws for the Committee as provided
herein, subject to the legal requirements of Proposition 39.
DOCSSF/74430v1/024399-0001
2
(h)
Section 4.
1
The appointment or reappointment of qualified applicants to serve on the
Committee, subject to legal limitations, and based on criteria adopted in the
Board’s sole discretion as part of carrying out its function under Prop 39.
Authorized Activities.
In order to perform the duties set forth in Section 3.0, the Committee may engage in
the following authorized activities:
(a)
Receive and review copies of the District's annual independent performance
audit and annual independent financial audit, required by Prop. 39 (Article
XIIIA of the California Constitution).
(b)
Inspect college facilities and grounds for which bond proceeds have been or
will be expended, in accordance with any access procedure established by the
District's Associate Vice President for Support Services.
(c)
Review copies of deferred maintenance proposals or plans developed by the
District.
(d)
Review efforts by the District to maximize bond proceeds by implementing
various cost-saving measures.
Section 5.
1
Membership.
Number.
The Committee shall consist of a minimum of seven (7) members appointed by the
Board of Trustees from a list of candidates submitting written applications, and based on
criteria established by Prop 39, to wit:
2
•
One (1) student enrolled and active in a community college support group, such as
student government.
•
One (1) member active in a business organization representing the business
community located in the District.
•
One (1) member active in a senior citizens' organization.
•
One (1) member active in a bona-fide taxpayers association.
•
One (1) member active in a support organization for the college, such as a foundation.
•
Two (2) members of the community at-large.
Qualification Standards.
(a)
To be a qualified person, he or she must be at least 18 years of age.
(b)
The Committee may not include any employee, official of the District or any
vendor, contractor or consultant of the District.
DOCSSF/74430v1/024399-0001
3
3
Ethics: Conflicts of Interest. By accepting appointment to the Committee, each
member shall comply with the Committee Ethics Policy attached as "Attachment A"
to these Amended and Restated Bylaws.
4
Term. Except as otherwise provided herein, each member shall serve a term of two
(2) years, commencing as of the date of appointment by the Board. No member may
serve more than two (2) consecutive terms. At the Committee's first meeting,
members will draw lots to select a minimum of two members to serve for an initial
one (1) year term and the remaining members for an initial two (2) year term.
Members whose term has expired may continue to serve on the Committee until a
successor has been appointed.
5
Appointment. Members of the Committee shall be appointed by the Board through
the following process: (a) appropriate local groups will be solicited for applications;
(b) the Superintendent/President or his designee will review the applications; and (c)
the Superintendent/President or his designee will make recommendations to the
Board.
6
Removal; Vacancy. The Board may remove any Committee member for any reason,
including failure to attend two consecutive Committee meetings without reasonable
excuse or for failure to comply with the Committee Ethics Policy. Upon a member's
removal, his or her seat shall be declared vacant. The Board, in accordance with the
established appointment process shall fill any vacancies on the Committee.
Vacancies shall be filled within 90 days.
7
Compensation. The Committee members shall not be compensated for their services.
8
Authority of Members. (a) Committee members shall not have the authority to direct
staff of the District; (b) Individual members of the Committee retain the right to
address the Board, either on behalf of the Committee or as an individual; and (c) the
Committee and its members shall have the right to request and receive copies of
reports and records relating to Measure H projects which have been prepared for the
Board and which have become a public record.
Section 6.
Meetings of the Committee.
1
Regular Meetings. The Committee is required to meet at least once a year including
an annual organizational meeting, but no more frequently than quarterly or as needed
determined by the Bond Oversight Committee.
2
Location.
All meetings shall be held within the jurisdiction of the Hartnell
Community College District.
3
Procedures. All meetings shall be open to the public in accordance with the Ralph M.
Brown Act, Government Code Section 54950 et seq. Meetings shall be conducted
according to such additional procedural rules as the Committee may adopt. A
majority of the number of Committee members shall constitute a quorum for the
transaction of any business.
Section 7.
1
District Support.
The District shall provide to the Committee necessary technical and administrative
assistance as follows:
DOCSSF/74430v1/024399-0001
4
2
(a)
preparation of and posting of public notices as required by the Brown Act,
ensuring that all notices to the public are provided in the same manner as
notices regarding meetings of the District Board;
(b)
provision of a meeting room, including any necessary audio/visual
equipment;
(c)
preparation and copies of any documentary meeting materials, such as
agendas and reports; and
(d)
retention of all Committee records, and providing public access to such
records on an Internet website maintained by the District.
District staff and/or District consultants shall attend all Committee proceedings in
order to report on the status of projects and the expenditures of bond proceeds.
Section 8.
Reports. In addition to the Annual Report required in Section 3.3, the
Committee may report to the Board from time to time in order to advise the
Board on the activities of the Committee. Such report shall be in writing and
shall summarize the proceedings and activities conducted by the Committee.
Section 9.
Officers. The Superintendent/President shall appoint the initial Chair of the
Committee. Thereafter the Committee shall elect the Chair and a vice-chair
who shall act as chair only when the chair is absent. No person shall serve as
chair for more than two consecutive one-year terms.
Section 10. Amendment of Bylaws. Any amendment to these Bylaws shall be approved by
a majority vote of the Board.
Section 11. Termination. The Committee shall automatically terminate and disband
concurrently with the Committee’s submission of its final Annual Report which
reflects the final accounting of the expenditure of all Measure H monies.
DOCSSF/74430v1/024399-0001
5
CITIZENS' BOND OVERSIGHT COMMITTEE
ETHICS POLICY STATEMENT
This Ethics Policy Statement provides general guidelines for Committee members to follow
in carrying out their roles. Not all ethical issues that Committee members face are covered in this
Statement. However, this Statement captures some of the critical areas that help define ethical and
professional conduct for Committee members. The provisions of this Statement were developed
from existing laws, rules, policies and procedures as well as from concepts that define generally
accepted good business practices. Committee members are expected to strictly adhere to the
provisions of this Ethics Policy.
POLICY
•
CONFLICT OF INTEREST. A Committee member shall not make or influence a
District decision related to: (1) any contract funded by bond proceeds; or (2) any
construction project which will benefit the Committee member's outside employment,
business, or a personal finance or benefit an immediate family member, such as a
spouse, child or parent.
•
OUTSIDE EMPLOYMENT. A Committee member shall not use his or her authority
over a particular matter to negotiate future employment with any person or
organization that relates to: (1) any contract funded by bond proceeds, or (2) any
construction project. A Committee member shall not influence a District decision
related to any construction project involving the interest of a person with whom the
member has an agreement concerning current or future employment, or remuneration
of any kind. For a period of two (2) years after leaving the Committee, a former
Committee member may not represent any person or organization for compensation
in connection with any matter pending before the District that, as a Committee
member, he or she participated in personally and substantially. Specifically, for a
period of two (2) years after leaving the Committee, a former Committee member and
the companies and businesses for which the member works shall be prohibited from
contracting with the District with respect to: (1) bidding on projects funded by the
bond proceeds; and (2) any construction project.
•
COMMITMENT TO UPHOLD LAW. A Committee member shall uphold the federal
and California Constitutions, the laws and regulations of the United States and the
State of California (particularly the Education Code) and all other applicable
government entities, and the policies, procedures, rules and regulations of the
Hartnell Community College District.
•
COMMITMENT TO DISTRICT. A Committee member shall place the interests of
the District above any personal or business interest of the member.
DOCSSF/74430v1/024399-0001
6
INFORMATION ITEMS
AGENDA ITEM FOR BOARD MEETING OF:
Title
December 7, 2010
Number
Receive Updated Report on Construction
Projects
IX. A.
Area
Status
Office of Facilities
Information
Recommendation
It is recommended that the Board of Trustees receives an updated report on construction
projects.
Summary
Each month, the Board of Trustees receives an oral and written report on current design,
planning, and construction projects. Completed projects are removed from the report and
current activities are updated monthly. The construction consultant and district manager
are available at the meeting to answer questions.
CONSTRUCTION UPDATE
AS OF 11/16/2010
CURRENT DESIGN, PLANNING AND CONSTRUCTION PROJECTS

PLANNING PROJECTS
Alisal Campus Master Plan


Main Campus Facilities Master Planning Process


As part of the 142 acre Alisal Campus a master plan will be need for a few
reasons. First, the District needs to determine the best locations for current
construction projects and second this document will be needed once an
Environmental Impact Report (EIR) is prepared for the site.
⇒ The District has begun the planning process for the 142 acres of the Alisal Campus
⇒ The process will include two master plans, (1) for the +/- 42 acre campus and (1) for the
remaining +/- 100 acres
⇒ Once a master plan is complete the EIR process will begin with the City of Salinas
⇒ The land swap with the City of Salinas is currently underway. It is anticipated that this will take
between 18 and 24 month
The main campus has prepared a master plan for the campus which is a living
document and needs to updated as needed. Not only is this something that
Hartnell College needs but it is also something that the California Community
College Chancellors Office (CCCCO) needs to be updated on a yearly bases. This
document has been used to place the current buildings but was also used to place
the Science Building and the Health Science Building.
⇒ The 5-year Capital Outlay Plan was completed and submitted to the CCCCO on June 29, 2009.
⇒ The 2009-10 IPP for a new Health Sciences & Nursing Building was completed and submitted to
the CCCCO on June 29, 2009.
⇒ A modified Health Sciences & Nursing Building IPP was prepared based off of the newly released
enrollment projections and will be submitted to the CCCCO by August 31, 2010.
⇒ The updated facilities master plan was completed and will be submitted to the CCCCO on
August 31, 2010.
Science Building FPP

In order for Hartnell to get states funds for project two important documents
need to be prepared and Initial Project Proposal (IPP) and a Final Project
Proposal (FPP).
⇒ Lionakis, out of Sacramento, is the Architect of Record for this project, which includes the
preparation of the FPP.
⇒ The kick-off meeting for the FPP took place on 02/19-20
⇒ The stakeholders took a trip to Cal Poly on 03/09 to look at their facilities
⇒ At our second meeting a few general layouts were established and we are working from those
layouts
⇒ The group took its second field trip to look at both San Mateo and San Jose City College’s new
science building
⇒ The last programming meeting was May 8 and all the user groups concerns were addressed
⇒ Lionakis completed the FPP and the Board Approved the document on June 8, 2009 and the FPP
was submitted to the CCCCO on June 29, 2009.
Hartnell College ● Facilities Development Office ● 411 Central Ave., Salinas, CA 93901
Phone (831)770-7041 ● Fax (831)770-7040
1
⇒
The project has been approved by the CCCCO for funding but because the state has no money
it has been put on a shelf until a GO bond passes.
DESIGN PROJECTS

CAB Building Renovation


City Sidewalk Replacement


As part of the District master plan the College Administration Building (CAB)
was to be renovated. This project will be the renovation to the first floor of the
CAB.
⇒ The programming for this project has started
⇒ The pre-qualification package for a Design/Build entity was out to prospective teams in
December and was due on January 7, 2010. A total of 25 teams submitted.
⇒ The short-list has been created and the letter to those firms have been sent out. Additionally
letters were sent to the remaining 20 firms who submitted pre-qual packages.
⇒ Of the 25 DBEs a total of 24 firms met the pre-qual minimum requirements
⇒ The list was shortlisted to the top five scores, which ended up yielding a total of 6 DBE teams:
• Rudolph & Sletten - Lionakis
• Dilbeck & Sons - HBFL
• Kitchell - Smith Group
• Blach Construction - BFGC-IBI
• Lusardi Construction Company - Davy Architecture
• Soltek Pacific Construction Company - Mosher Drew Watson Ferguson
As part of the EIR which was approved in 2005 one of the mitigations was to
replace the sidewalk around the campus, as needed. In addition to the sidewalk
Monterey Salinas Transit (MST) requested that a bus turnout be installed on
Alisal St.
⇒ An RFQ was put out on the street for interested civil engineering firms interested in design the
sidewalk, bus turnout and misc infrastructure projects on the campus.
⇒ A total of three firms submitted and all were shortlisted and issues and RFP.
⇒ C3 Engineering was chosen based off of the firms experience and cost proposal.
⇒ The design work will start on May 5th and we are currently working with the City of Salinas and
MST to finalize the plans.
⇒ Both the City and MST have agreed on both items and City is making final comments
⇒ District to meet with the City of Salinas to finalize the encroachment permit
on 11/16. Once that meeting takes place the project can go out to bid.
Campus Infrastructure #2

In 2004 infrastructure phase I was completed and as part of that project new
power, water, gas, data, sewer and storm drains. This project will install water
and gas isolator valves to all the existing buildings. In addition the old data lines
will be terminated and the new data lines will be connected to all buildings.
⇒ An RFQ was put out on the street for interested civil engineering firms interested in design the
sidewalk, bus turnout and misc infrastructure projects on the campus.
⇒ A total of three firms submitted and all were shortlisted and issues and RFP.
⇒ C3 Engineering was chosen based off of the firms experience and cost proposal.
⇒ The plans are close to completion and will be out to bid in the next few weeks.
Hartnell College ● Facilities Development Office ● 411 Central Ave., Salinas, CA 93901
Phone (831)770-7041 ● Fax (831)770-7040
2

Keyless Entry and CCTV System


CAB Chiller and Boiler Replacement


As both a safety precaution, a tracking mechanism and future cost savings to the
District, the District is investigating the installation of both a keyless entry
system and Closed Circuit Television cameras campus-wide.
⇒ Aurum Consulting Engineers will be preparing a campus wide design of a keyless entry and CCTV
system for the main campus the anticipated schedule is as follows:
⇒ Out to bid in November
⇒ Bid opening in December
⇒ Start Construction in 2011
As part of an energy efficient project on campus the 30 year old chiller and boiler
on the roof of the CAB will be replaced. As part of that project and energy
efficient cool roof will also be installed.
⇒ Axiom Engineers will be preparing a design of a new energy efficient chiller and boiler for CAB
⇒ We will also be working with PG&E to investigate a possible rebate for the delta between the
existing units and the new units
⇒ The anticipated schedule is as follows:
• Design Period - April 7 - June 30
• DSA Review - July 1 - November 1
• Issue RFB for Chiller and Boiler Units - July 1
• Bid Period - December 2010 0 February 2011
• Construction - February 2011 - July 2011
⇒ Axiom and Skyline Engineering are working on the design of the project
⇒ The District plans on bidding the equipment (chiller & boiler) in the next few weeks so the an
order can be placed and the equipment can arrive sooner
⇒ Once the design is completed we will bid the work per the above schedule
⇒ The DIstrict is also working with PG&E to get a rebate for the energy efficient changes which are
being made.
⇒ The design is complete and will be submitted to DSA for review and approval.
⇒ We have received bids on both the Chiller and the Boiler and the District has purchased them.
⇒ Both the Chiller and Chiller have been ordered.
⇒ The plans are currently at DSA for review and approval
Technical Training Building

This will be the second building constructed on the Alisal Campus. The building
will house diesel and auto mechanics as well as green construction. The building
is slated to be between a 10k and 15k building and will be seeking LEED
Certification.
⇒ Hartnell issued a request for qualifications (RFQ) for architectural services related to the design
of the Technical Training Building on the Alisal Campus. A total of eight firms submitted an RFQ.
A group of faculty and staff(the users of the building) met and shortlisted a total of 5 firms for
interviews. The shortlisted firms were: NTD (Salinas), Paul Davis Architecture (Monterey), W, R &
D (Monterey), BAG (Salinas) and Kasavan Architects (Salinas).
⇒ The users then interviewed the firms and they selected NTD based off of previous similar project
experience and cost.
⇒ The team had its first programming meeting on 7/14 and a schedule was put together on the
remainder of the meetings.
⇒ The team took a trip to Delta College to look at their facilities and our next time will be to Cal
Poly to look at their CM program
Hartnell College ● Facilities Development Office ● 411 Central Ave., Salinas, CA 93901
Phone (831)770-7041 ● Fax (831)770-7040
3

PE Field House

As part of the PE master plan the second phase was a new field house which will
house locker rooms, restrooms, a classroom, a training room and a concessions
area for food.
⇒ Currently there is an RFQ out for architectural and engineering services. The
due date for the RFQ is December 16, 2010.
CONSTRUCTION PROJECTS

Alisal Campus Center for Applied Technology


This is the first building be constructed at the Alisal Campus. It is a 50/50 Stated
funded project, meaning that the State covers costs up to $14M and the District
must cover the remainder of the cost. The building is a 55k sq ft. building will
replace many of the programs currently housed in the VoTech building on the
main campus.
⇒ Kasavan Architects is the AOR for the project
⇒ Dilbeck construction is the GC for this project ($19,340,000)
⇒ Construction began on July 14, 2008
⇒ The project will be completed in 2010
⇒ All structural steel has been erected
⇒ Interior metal studs and drywall is currently going up
⇒ The roofing and exterior siding is currently going up
⇒ Check out the webcam on the Measure H website, http://webcam.hartnell.edu/popup.html
⇒ Interior finishes are continuing to be placed in the building.
⇒ The welding equipment is scheduled to be ordered on May 5th and all will be installed by August
1st and will be ready for classes to start in fall.
⇒ Permeant power was switched over on June 1
⇒ Work continues on the interior finishes of the building.
⇒ 65% of the landscaping around the building has been completed.
⇒ All of the furniture and AV equipment has been ordered for the new building and are anticipating
a early August delivery date.
⇒ The Oskar welding equipment will be delivered during the first few weeks of September for
installation.
⇒ Floor finishes are going down in wing C and furniture will be installed starting on Nov. 1 and
Audio Visual (AV) equipment will follow with a January 24, 2011 scheduled opening
Student Center Renovation/Remodel Project

The Student Center project is a complete renovation to the building. The
project includes new finishes, HVAC units, a complete overhaul of the servery
and all new furniture.
⇒ BFGC is the Architect of Record for this project
⇒ DMC Construction was the low bidder and will be the GC for the project
⇒ Construction started on November 17th and is scheduled to be completed by September 2010
⇒ The new bookstore in Steinbeck Hall is the first scope of work
⇒ DMC finish the heavy demo work over the break and they are now finishing up the Steinbeck
side of the building.
⇒ During spring break the move of the bookstore and the reopening of Steinbeck Hall took place
⇒ DMC is working on the whole building and the Steinbeck Hall, bookstore, servery and faculty
lounge will be completed by 8/15.
⇒ The remainder of the building will be opened some time in September/October.
⇒ The furniture for Steinbeck Hall and the staff lounge will be delivered on 08/09
⇒ The servery was opened on 8/23
Hartnell College ● Facilities Development Office ● 411 Central Ave., Salinas, CA 93901
Phone (831)770-7041 ● Fax (831)770-7040
4
⇒

Alisal Campus Landscape Project


The center and west portion of the building are still being worked on with a move in date slated
for November 29
As part of the expansion to the Alisal Campus the entrance needed to be
brought up to ADA compliance as well as make the area a safe area for the new
students who will be attending class on the campus. The project includes the
landscaping of the entrance at Alisal St. and will have new planted areas,
accessible paths and lighting.
⇒ The project is currently out to bid with construction starting in November and will be completed
by 01/23/11
⇒ The project bid on 10/20 with a total of six contractors bidding the project. The apparent low
bidder was Perma Green Hydroseeding and we are awaiting Board approval before that work can
start.
⇒ The tentative schedule is for work to start on 10/15/10 and be substantially completed by
01/23/11.
⇒ Perma Green Hydroseeding has started the submittal process and is in the
process of identifying all underground infrastructure. Work will start once all
underground items are identified.
CAB Refresh #4

This is the fourth refresh project which will take place in the CAB. The project
includes new finishes in a number of rooms, hallways as well as making a number
of classrooms smart.
⇒ The project is currently out to bid with construction starting in December and will be completed
by 01/23/11
⇒ The project bid on 10/19 with a total of seven contractors bidding the project. The The apparent
low bidder was DMC Construction and we are awaiting Board approval before that work can
start.
⇒ The tentative schedule is for the work to start on 12/18/10 and be completed by 01/23/11.
⇒ The District has started having weekly meetings with DMC so the work will
be ready to start once finals end.
Hartnell College ● Facilities Development Office ● 411 Central Ave., Salinas, CA 93901
Phone (831)770-7041 ● Fax (831)770-7040
5
AGENDA ITEM FOR BOARD MEETING OF:
Title
December 7, 2010
Number
Receive and Accept Financial Statements
for Period Ending October 31, 2010
IX. B.
Area
Status
Office of Support Operations
Prepared by: Kent G. Stephens
Information
Recommendation
It is recommended that the Board of Trustees receives and accepts the Financial Statements for the
period ending October 31, 2010.
Summary
Financial Statements of District funds for the period ending October 31, 2010 are attached
for information.
Budget Implications
None
AGENDA ITEM FOR BOARD MEETING OF:
Title:
December 7, 2010
Number
Receive the County of Monterey
Treasurer’s Report of Investments for the
Quarter Ending September 30, 2010
IX. C.
Area
Status
Office of Support Operations
Prepared by: Kent G. Stephens
Information
Recommendation
It is recommended that the Board of Trustees reviews and approves the County of Monterey
Treasurer’s Report of Investments for the Quarter Ending September 30, 2010.
Summary
Government Code § 53466(b) requires the Treasurer to submit a quarterly report of
investments. The attached Exhibit A describes the investment portfolio position by investment
type as of September 30, 2010 and Exhibit B provides a narrative portfolio review of economic
and market conditions that support the investment activity during the July through September
period.
Budget Implications
None
MONTEREY COUNTY BOARD OF SUPERVISORS
MEETING: October 26, 2010
AGENDA NO:
SUBJECT: Receive and Accept the Treasurer’s Report of Investments for the quarter ending September
30, 2010
DEPARTMENT: Treasurer-Tax Collector
RECOMMENDATION:
It is recommended that the Board of Supervisors receive and accept the Treasurer’s Report of
Investments for the quarter ending September 30, 2010.
SUMMARY:
Government Code Section 53646 (b) requires the Treasurer submit a quarterly report of investments.
The attached Exhibit A provides a narrative portfolio review of economic and market conditions that
support the investment activity during the July – September period. Exhibit B describes the investment
portfolio position by investment type as of September 30, 2010. Exhibit C is a listing of common
investment definitions and is included for reference purposes. Exhibit D describes the investment
portfolio by maturity range, and Exhibit E is an overview of the short term funds that the Treasurer
invests in overnight, liquid assets.
DISCUSSION:
During the first quarter of FY 2010-11, the investment portfolio continued to be subject to downward
pressure on interest rates. Due to continuing poor economic news and a lack of recovery in the real
estate markets, the continued flight to safety resulted in lower yields along all areas of the U.S.
Treasury yield curve.
On September 30, 2010 the Monterey County investment portfolio contained an amortized cost basis
of $885,603,531 spread among 69 separate securities and funds. The par value of those funds was
$882,051,532, and the market value was $886,338,982 or 1.08% of amortized book value. The
portfolio’s net earned income yield for the period was 0.62%. The portfolio produced estimated
income of $1,401,771 for the quarter which will be distributed proportionally to all agencies
participating in the investment pool. The investment portfolio had a weighted average maturity of 240
days.
The investment portfolio was in compliance with all applicable provisions of state law and the adopted
investment policy, and contained sufficient liquidity to meet all projected outflows over the next six
months. Market value pricings were obtained through Bloomberg LLP, Union Bank of California and
included live-bid pricing of corporate securities.
OTHER AGENCY INVOLVEMENT:
A copy of this report will be distributed to all agencies participating in the County investment pool and
the Treasury Oversight Committee. In addition, the report will be displayed on the County Treasurer’s
web site. A monthly report of investment transactions is provided to the Board of Supervisors as
required by GC 53607.
FINANCING:
The investment portfolio contains sufficient liquidity to meet all projected expenditures over the next
six months. We estimate that the investment earnings in the General Fund will be consistent with
budgeted revenue, but at historically low levels, as the Federal Reserve is expected to continue
keeping short term interest rates at the current rate of 0.00 – 0.25%.
Ongoing recovery efforts for defaulted Washington Mutual and Lehman Brothers are more fully
described in Exhibit A.
Prepared by:
Approved by:
_______________________
Eamonn M. Mahar
Investment Officer
September 30, 2010
_______________________
Louis G. Solton
Treasurer-Tax Collector
September 30, 2010
cc:
County Administrative Office
County Counsel
Auditor-Controller – Internal Audit Section
All depositors
Treasury Oversight Committee
Attachments:
Exhibit A – Investment Portfolio Review – 09.30.10
Exhibit B – Portfolio Management Report – 09.30.10
Exhibit C – Investment Definitions
Exhibit D – Aging Report – 09.30.10
Exhibit E – Overnight (Liquid) Asset Distribution
AGENDA ITEM FOR BOARD MEETING OF:
Title:
December 7, 2010
Number
Process for Redrawing Established Trustee
Area Boundaries
IX. D.
Area
Status
Office Superintendent/President
Information
Background
Hartnell Community College District has seven political sub-districts or Trustee Areas. The
boundaries of these areas must be reexamined every ten years using US Census data. The
summary below outlines the basic steps in the process as provided by Jeanne Gobalet, in the
training sponsored by the Monterey County Office of Education, November 22, 2010. A
workshop packet has been provided to each Board member.
Summary
Phase One: 1) Contract with a Demographer and 2) contract with an attorney.
Phase Two: 1) Demographer analyzes 2010 Census Data (beginning April 1, 2011) to
determine whether current Trustee Area Boundaries meet legal requirements. And, if
adjustments need to be made, adopt a process for doing so. In this case, the recommended
process is that the Board not do the work but instead that the Board appoint a citizens advisory
committee, plus demographer, plus counsel to make boundary recommendations to the Board.
2) Board adopts new boundaries by March 1, 2012 in accordance with Education Code.
Phase 3: 1) Changes submitted to US Department of Justice for Preclearance (minimum 60 day
process).
Phase 4: 1) County Elections Office adjusts precincts as needed.
It is recognized that this lengthy process is not likely to be completed before the filing deadline
for 2011 elections.
Recommendation
That the Board appoint a Demographer and an Attorney not later than January, 2011; consider
any savings that might be leveraged by working with MPC and school districts in Monterey
County; and, recognize that the estimated cost for these services are expected to range from
$50,000 (the amount charged by the demographer in 2001) to as much as twice that amount
plus attorney fees.
BOARD OF TRUSTEES
ADJOURNMENT