Hartnell College Citizens’ Bond Oversight Committee Measure H

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Hartnell College

Measure H Citizens’ Bond Oversight Committee

2013 / 14 Annual Report

April 24, 2015

Science Building Under Construction

THIS ISSUE

Projects Completed

Measure H Projects

Message from the Chair

Measure H Future

MAJOR MEASURE H PROJECTS COMPLETED IN 2013

There were no Measure H projects completed within 2014, but prior to that all the projects on the list shown on page two of this report were completed except the Science Building, and progress on that is moving forward at a good clip. It is scheduled for completion in 2016.

All completed projects are now in full use, and the campus and its community of students, faculty, and staff are enjoying the intended benefits from them.

Among the most recently completed, are the PE Fieldhouse (building P on the campus map), the new

Technical Training Building on the Alisal Campus (building AC-D), and the renovation of the ground floor of the north wing of the Classroom Administration Building (building D). Also, new signage has been installed throughout both campuses.

HARTNELL AND LEED

LEED, or Leadership in Energy and Environmental Design, is an internationally recognized green building certification system. It provides guidelines to identify and implement green building design, construction, operations, and maintenance solutions. A

LEED certified building is designed to lower operating costs, reduce landfill waste, conserve energy and water, be healthier for occupants, and reduce greenhouse emissions.

Building AC-D will be the first

LEED certified building for

Hartnell College.

 In keeping with sustainable/green design, the

Alisal campus has installed solar-covered parking canopies expected to save $6 million over

25 years or $240,000 per year that will go into

 educational programs.

P1

P2

P3

P4

Campus Signage Upgrade

Bond Issuance

District voters approved the issuance of $131 million of general obligation bonds on November 5, 2002.

Adjusting for interest earned and refinancing revenues, the total Measure H funds available is $137,850,709.

Measure H Expenditures as of April 15, 2015

Project

Campus Infrastructure Phase I

Parking Structure

Learning Resource Center (LRC)

Performing Arts ADA Project

Main Data Facility Data Center

Equipment Modernization

Main Campus EIR

Animal Health Technology Relocation

CAB Refresh #1

CAB Refresh #2

CAB Refresh #3

CAB Refresh #4

NE Landscape Project

CALL Building

PE Renovation Project

Pool Renovation

Campus Lighting Phase I

Campus Lighting Phase II

Student Center

Alisal Campus Center for Adv. Tech.

King City Energy Efficiency Roof

King City Land Acquisition

Alisal Landscape Project

Alisal Entrance Sign

City Sidewalk Phase I

City Sidewalk Phase II

Alisal Bus Turnaround

Infrastructure Phase II

CAB Boiler/Chiller Project

CAB Energy Efficiency Roof

Campus Signage

PE Field House#

Tech. Training Bldg., Alisal Campus

Science Center*

CAB North Renovation

Miscellaneous (details available on request)

TOTALS

# $603,000 raised by PE fundraising

Group for Field House

* Not completed.

Total budgeted: $29,135,000

State & Other Funds

$21,700,000

$10,910,000

$14,850,000

$603,000

$48,063,000

From Measure H

$3,473,184

$26,340,343

$6,099,839

$1,139,644

$1,343,786

$594,457

$154,535

$473,015

$233,702

$113,653

$529,223

$243,511

$1,634,701

$8,812,960

$6,577,596

$860,344

$529,914

$91,835

$7,539,360

$21,296,619

$63,140

$3,063,767

$604,205

$73,331

$322,038

$100,624

$93,610

$488,496

$505,311

$205,682

$192,926

$1,476,265

$6,297,936

$8,455,665

$1,711,313

$3,207.292

$114,943,822

Total Expenditures

$3,473,184

$26,340,343

$27,799,839

$1,139,644

$1,343,786

$594,467

$154,535

$473,015

$233,702

$113,653

$529,223

$243,511

$1,634,701

$19,722,960

$6,577,596

$860,344

$529,914

$91,835

$7,539,360

$36,146,619

$63,140

$3,063,767

$604,205

$73,331

$322,038

$100,624

$93,610

$488,496

$505,311

$205,682

$192,926

$2,079,265

$6,297,936

$8,455,665

$1,711,313

$3,207,292

$163,006,822

BONDS ISSUES

Series A - Bonds were issued in April

2003 in the amount of $35 million

Series B - Bonds were issued in June

2006 in the amount of $35 million

Series C - Bonds were issued in May

2009 in the amount of $12.6 million

Series D - Bonds were issued in June

2009 in the amount of $48.4 million

STATEMENT OF COMPLIANCE

This Annual Report is submitted to the public and to the Board of

Trustees by the Hartnell College

Citizens’ Bond Oversight Committee in partial fulfillment of the

Committee’s responsibilities as set forth within Article XIII.A, Section 1 of the State of California Constitution and Sections 15278 through 15282 of the State of California Education

Code.

CONCLUSIONS

The Measure H Citizens’ Bond

Oversight Committee finds that

Hartnell Community College District has complied with the spirit and requirements of state law, and the commitment made to the voters in accounting for and expending public bond funds.

Alisal Campus Building D – Completed in August 2013

Dear Community Members,

The Citizens’ Bond Oversight Committee is a legal entity charged with the responsibility of ensuring that Measure H funds are being used according to the law. The committee is presenting the annual report for 2013-2014 to the Hartnell Governing Board and the public.

The public has shown confidence in Hartnell College by approving bond funds for additional campus development and modernization. It is important that their generosity be rewarded with the improvements to Hartnell College that they desire and deserve. The investment not only will benefit the students, but also the community through civic pride and the ability to attract quality personnel and students. The ultimate result will be a better trained labor force and educated citizenry.

We have provided oversight of this bond-financed effort. Measure H funding has already constructed a new Technical Center at the Alisal campus, upgraded our athletic facilities, renovated the CAB building, and provided various other campus improvements. The last sizeable project is presently under construction. It is a state-of-the-art Science Building to replace building N. There is ample bond money remaining to see it to completion with enough surplus to remodel building N (the old science building).

I would like to commend the College President, Dr. Willard Lewallen, district staff, and involved citizens, including the Governing Board and my fellow members on the Bond Oversight Committee for their dedication and effort in seeing that this community investment results in an educational facility that we can all be proud of.

Respectfully,

Vearl Gish, Chair

Science Building – Scheduled for Completion in February 2016

BOND OVERSIGHT COMMITTEE

PROJECTS REMAINING TO BE COMPLETED

There is only one major Measure H project still to be completed: Construction has started on a new Science Center located near the center of the main campus. The budgeted cost is

$29,135,000. The building will provide 54,000 square feet to contain six lecture spaces, 10 laboratories, and the planetarium. Among the subjects to be taught here will be biology, inorganic and organic chemistry, physics, geology, microbiology, field science, anatomy, engineering, and astronomy. The building, like all the other Measure H projects will be instrumental in providing the necessary facilities and environment for teaching and learning excellence. Student success is the ultimate outcome.

After Measure H funds are set aside for the completion of the Science Center, there is approximately $1,300,000 in surplus. The present plan is to use these funds to renovate building N (the old science building) so it can accommodate the Nursing Program. Nursing is presently in cramped quarters and badly needs more specialized training facilities and dedicated storage spaces. Therefore, the final project with the available bond money will be the renovation of an existing building to finally meet the needs of the Nursing Program which fills a critical need in the community.

FINANCIAL SUMMARY

As of April 15, 2013, a total of $114,943,822 had been spent of the Measure H funds and there is a total of $22,906,887 remaining. Note that the two amounts add up to more than the approved $131,000,000. The total includes interest earned and the refunding (*) of the bonds

($7,007,592). In addition, it should be noted that $47,460,000 in State Capital Bond Funds were provided as matching funds on three of the projects and $603,000 in private funding has been raised to date for the PE Field House.

Vearl Gish, Chair

Member at Large

John Buttgereit, College Support Operations

Dennis Donohue, Business

Anthony Ben Castillo, Student Representative

George “Ted” Richardson, Jr., Taxpayers

Organization

Deneen Newman, Member at Large

Michael Payne, Senior Citizens’ Organization

Responsibilities of Citizens’

Bond Oversight Committee

 To monitor expenditure of bond funds

 Assure the expenditures are for the purpose approved by the voters

 Inform the public of bond expenditures and revenues

 Report to the public district compliance with

California’s Constitution Article XIII A. Section

1(b)(3) as provided for by the Attorney

General’s opinions

INDEPENDENT FINANCIAL AND

PERFORMANCE AUDITS AS OF JUNE 30, 2014

(*) Refunding occurs when an entity that has issued callable bonds calls those debt securities from the debt holders with the express purpose of reissuing new debt at a lower coupon rate.

In essence, the issue of new, lower-interest debt allows the District to prematurely refund the older, higher-interest debt.

Note: Any remaining funds from a project go back into Measure H for future projects.

The accounting firm Crowe Horwath, LLP, presented the Annual Independent Financial and Performance Audits to the Board of

Trustees on December 9, 2014. In addition to issuing an unqualified opinion, the audit found the financial statements to fairly present the financial position and changes in Measure H fund balance in accordance with accounting principles generally accepted in the United

States. These audits are available at www.hartnell.edu/h

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