Peralta Community College District
PCCD Planning and Budgeting Council___________________
Date of Meeting:
January 30, 2015
Present:
Norma Ambriz-Galaviz, James Blake, Joi Lin Blake, Fred Bourgoin, Debbie Budd, Paula Coil, Lisa Cook, Matthew Goldstein,
Rick Greenspan, Stefanie Harding, Brandi Howard, Sadiq Ikharo, Jennifer Lenahan, Calvin Madlock, Anna O’Neal, Mike
Orkin, Tae-Soon Park, Jennifer Shanoski, Cleavon Smith, Sui Song, Elnora Webb
Chair/Co-Chair:
Susan Rinne, Karolyn van Putten
Guests:
Nikki Washington, Phyllis Carter, Indra Thadani, Carolyn Martin, Dettie Del Rosario, Tom Wong
Facilitator/Recorder: Linda Sanford, Joseph Bielanski
Absent:
Drew Gephart, Timothy Brice, Carl Oliver, Jeramy Rolley
Agenda Item
PBC 2014-15
Committee
Goal
PCCD 2014-15
Strategic
Planning Goal
and/or
Institutional
Objective
Meeting Called
to Order
1. Agenda Review
(Facilitator)
2. Review of Minutes:
December 12, 2015
(Facilitator)
3. Revised PBC Topics
Calendar (Facilitator)
Discussion
Start: 9:11AM
D.3.
Institutional
Effectiveness
Motion (Dr. Webb, Dr. Budd)
APPROVED
Motion (Dr. Webb, Dr. van
Putten)
APPROVED
Abstain: 1
Informational item
Follow-up
Action
Decisions
(Shared Agreement/
Resolved or
Unresolved}
4. State Budget Update
(VC Rinne)
D.3.
Institutional
Effectiveness
E.3 Fiscal
Oversight
VC Rinne attended the State
Chancellor’s budget workshop.
VC Rinne will update the PBC
once additional information is
received from the State
Chancellor’s Office. The
proposed budget includes $200
million for Student Success and
$125 million increase to the base
apportionment.
There is a new formula for
funding growth. Peralta is
eligible for 1% of growth.
Note: SSSP funding is the former
Matriculation funding. It has
been in place for decades.
Although it is presented as onetime funding, it is ongoing.
Per Dr. Budd, we are chasing
growth. This year we are
budgeted at 5% and will need to
jump to 7% for next fiscal year.
We have different strategies in
place to address it. In regards to
MIS reporting, Dr. Blake
commented that it is critical as to
how Student Services is
documenting FTES.
There are three types of rates:
Credit, Non-credit, and Career
Development & College
Preparation Program (CDCP).
CDCP will be funded at the same
rate as credit. We currently don’t
report any CDCP, but will look
VC Rinne will post
the spreadsheet on
the webpage.
into it.
Mr. Blake asked about
Professional Development
funding for staff and faculty.
Mr. Greenspan would like a
report on the $500M Adult
Education Block Grant.
Student Equity Funding
Distribution:
The administration at the District
office is here to serve as an
extension to the colleges. The
PASS program is a district-wide
initiative. When the PASS
program was initiated, there were
many programs that overlap at
the colleges. Rather than having
it implemented at each college, it
would be implemented districtwide. The PASS program was
initially to be funded through the
parcel tax. The parcel tax cannot
be used for administrator salaries;
therefore the administration part
of the PASS projects is to be
funded by equity funding. It is a
district-wide expense housed at
the District.
Per Dr. Webb, to honor the
Chancellor by restating what was
said, the Chancellor made it very
clear that he didn’t know the
particulars of what would occur
and that he would be relying on
VC Rinne will
research it.
The PBC will invite
Ms. Karen Engel to
present at the next
PBC meeting.
the advisory group to inform him.
Someone needs to be assigned to
coordinate the PASS initiative.
The District individual would be
a catalyst to bring all this together
and provide administrative
leadership, collect data,
coordinate activities, convene the
group, and advance something
that is strategic in order to
address the gap that exists in
student achievement.
Concern was expressed that the
advisory group is not part of the
shared governance process, but
will have the power to come up
with a plan/budget
recommendation to the
Chancellor.
Equity dollars are not allocated to
the college, the budgets for the
equity dollars are. We received a
little over $500,000 in November,
$100,000 in December, and
$68,000 in January. It is not a
matter as to when the dollars
were received, but how much was
to be allocated for budgeting
purposes. Originally the State did
not allow us to spend the funding
until the equity plans were
approved, but the State later
allowed expenditure. Allocations
to the colleges were budgeted at
the end of December.
Per Dr. Webb the State
Chancellor, Brice Harris,
conveyed to the CEO Board of
the league that it is important for
districts to spend 100% of the
funds by the deadline. It will
signal to the people who
approved these funds that we in
fact need these funds.
The State Chancellor is looking
to extend the deadline to the end
of September or December.
5. 2013-14 Financial
Report (Audit) and
Corrective Action
Matrix (VC Rinne and
Mr. Wong)
6. Monitor
Progress in the
Integrated
Planning and
Budgeting
Calendar
D.3.
Institutional
Effectiveness
E.3 Fiscal
Oversight
At the January 2015 Board
meeting, Vavrinek Trine & Day
(VTD) came and presented to the
Board. VTD issued an
unmodified opinion on our June
30, 2014 audit. We have a clean
audit with no audit adjustments.
There are a few repeated audit
findings. Our Internal Auditor,
Tom Wong, has taken a lead on
all the audit findings. He is
working on financial aid
implementation challenges, such
as reporting issues.
The first finding (new finding)
was on how our Other PostEmployment Benefits (OPEB)
liability is funded. The District is
facing a possible challenge down
the road due to the increase
liability in our OEPB obligation.
Peralta sold $153M in bonds and
the bonds were placed it in a
revocable trust. The value of the
trust is at $216M. There is an
OPEB obligation charge, as a
percentage of salary, which is
based on the actuarial study. At
the end of the fiscal year, we take
funding out of the trust to
reimburse the general fund for
retiree medical benefits paid
during the year. Over the years,
the payments going in are less
than the amounts going out
because the medical cost for
retirees is increasing. In addition,
we had to pay the debt service
liability that continues to grow.
To resolve this issue, based on
GASB 45, the investments in the
revocable trust with Neuberger
Bergman need to be placed into
an irrevocable trust. The plan is
to put the amount needed to pay
for retirees’ medical benefits into
the irrevocable trust. The amount
that is over and beyond the
actuarial amount can be placed
into a revocable trust to offset the
debt service. At the Retirement
Board meeting last night, the
deadline to complete the split is
by June 30, 2015.
AVC Madlock requested that IT
be made aware of any audit
finding that involves IT so that IT
will not be caught off-guard.
6. Updated Budget
Assumptions for
2015-16 (VC Rinne)
D.3.
6. Monitor
Progress in the Institutional
Effectiveness
This is in draft form and is being
shared for the first time.
Integrated
Planning and
Budgeting
Calendar
The first six are general
assumptions.
E.3 Fiscal
Oversight
#8 Access: We are budgeting for
0% growth because 2014/15 is
the last year to recapture FTES
that were taken from us for
workload reduction. We built the
budget based on 19,500 FTES.
We will need to borrow from the
summer to achieve 19,500 FTES
and in order for us to be funded at
that level for the next fiscal year.
#9 COLA: 1.58%
#15 Parcel Tax: This will be our
fourth year. We have two more
years to go.
#24 Medical & Dental: We will
use the five year average as
recommended by Mr. Greenspan.
#25 OPEB Contributions: We are
in the process of having an
actuarial study done. We should
have the numbers in the next four
weeks and will update the rates
accordingly.
#27 Utilities: 2% has been the
standard rate. Concern was
expressed by Ms. Carter that 2%
is insufficient to cover the cost
increase notifications received
from utility companies. Request
was made for the PBC to look at
increasing the percentage.
AVC Sanford
suggested that we
look into total cost
of ownership plan in
the next fiscal year.
#28 SEIU Backfill & #29 PFT
VC Rinne will work
Release Time: Concern was
with Cabinet
expressed by Mr. Greenspan as to members on this.
why these two items were chosen
while other contractual
obligations were not.
#30 Workers’ Comp.: Connected
to audit finding #2014-001.
7. FTES Targets Status
Report (VC Orkin)
6. Monitor
Progress in the
Integrated
Planning and
Budgeting
Calendar
D.3.
Institutional
Effectiveness
E.1.
FTES/FTEF
Target
E.3 Fiscal
Oversight
FTES/FTEF Worksheet
5th row from the bottom
(highlighted) = shortfall. The
District is 1209 FTES below
target. In order to catch up, we
will offer late start classes,
intersessions, and borrow from
the summer session. A typical
summer session at Peralta brings
in between 2000 to 2500 FTES.
We need to start planning how to
meet next year’s target. FTEF
numbers are based on FTES
numbers.
Meetings have been scheduled at
each college and the Public
Information department had an
aggressive advertising campaign
to address the shortfall in FTES.
The Finance department had
discussions with College
Presidents about appropriate
budgeting. In the past, we
dropped students for nonpayment at the $50 threshold. In
Cabinet, the threshold was
increased to $500. We are also
planning to change the policy to
allow payment plans for fees
owed from prior semesters.
Per Dr. Blake, we need to be
mindful that we are a District; if
one college fails, we all fail.
8. Draft PCCD 2015
Strategic Plan (AVC
Sanford)
6. Monitor
D.3.
Progress in the Institutional
Integrated
Effectiveness
Planning and
Budgeting
Calendar
This is the draft version that was
presented at Flex Day. AVC
Sanford took what we already
had from 2008 and made it
current. This is a work in
progress. Suggestions were noted
and some changes were already.
The intent is to reorganize the
document and include the
mission/goal section in the
beginning of the document. The
Strategic Plan is going to the
Board in March. The Plan will
have a new cover and printed in
March.
9. Institutional SelfEvaluation Actionable
Improvement Plans
(AVC Sanford)
7. Receive
from the
colleges
monthly
update reports
regarding their
Institutional
Self
Evaluation
reports . . . . .
Informational Only
10. Policies and
Administrative
3. Review and
Recommend
D.3.
Institutional
Effectiveness
Laney is developing an internal
college actionable improvement
plan. Per Dr. Webb, feedback
was received and an action plan
was created for those items not
related to the standard to insure
continuous improvement at
Laney.
D.2 Institutional AP 6551 Inventory of Property
Leadership and and Equipment
Please email AVC
Sanford if you have
any
feedback/comments.
Laney will share
their action plan
with the other
colleges.
Procedures (Dr.
Bielanski)
Board Policies Governance
and
Administrative
Procedures.
The AP was developed in
response to an audit finding
(#2014-006). The Director of
Purchasing, Marie Hampton, took
what was used at other districts
and added to it.
Mr. Blake suggested that for the
first #E, we need identify
equipment that has been taken
home.
Concern was expressed by Mr.
Greenspan that the Department
Chair is personally responsible
for “any damage to or loss of
equipment” as stated at the
bottom of the Inventory Property
and Equipment Form.
Concern was expressed by Ms.
Harding in regards to the
manpower needed to implement
this procedure at the colleges.
Per AVC Madlock, there is an
inventory management module in
PeopleSoft that we might be able
to activate when we upgrade the
Finance module.
Ms. Coil suggested that we add
campus tracking to the form.
VC Rinne recommends that we
bring back AP 6551 to the next
PBC to give Purchasing an
opportunity to address the
concerns with item #E, the letter,
and the form.
11. Adjournment
11:33a.m.
Minutes taken by: Sui Song
Attachments: All documents and/or handouts for this meeting can be found at:
http://web.peralta.edu/pbi/planning-and-budgeting-council/pbc-documents/
http://web.peralta.edu/pbi/planning-and-budgeting-council/minutes/
Next Meeting: February 27, 2015 10:45a.m. – 1:45p.m.