REGULAR MEETING OF THE CITIZENS OVERSIGHT COMMITTEE
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1 REGULAR MEETING OF THE CITIZENS OVERSIGHT COMMITTEE Thursday, MINUTES Prior to the regular meeting, Gary Nellesen, Director, Facilities Planning & Management, provided a general tour of the campus to committee members. Joining the tour was Steven Yip, Project Director, Lend Lease. CALL TO ORDER The regular meeting of the Mt. San Antonio College Citizens Oversight Committee was called to order at 6:00 p.m. on Thursday,. CITIZENS OVERSIGHT COMMITTEE MEMBERS PRESENT Paul Breit Steve O Sullivan Virgilio Doniza Marilyn Peters Ted Ebenkamp Samuel Tharpe Fred Garcia Tony Torng Monica Garcia (6:05 p.m.) Michael Zhang CITIZENS OVERSIGHT COMMITTEE MEMBERS ABSENT Fidel Vargas, Sr. Mindy Miracle STAFF PRESENT Bill Scroggins, President Gary Nellesen, Director, Facilities Planning & Management Steven Yip, Project Director, Lend Lease Denise Lindholm, Executive Assistant to the President and Board of Trustees GUESTS PRESENT Rosanne Bader, President, Board of Trustees (6:15 p.m.) Manuel Baca, Vice President, Board of Trustees
2 Citizens Oversight Committee Meeting Minutes Page 2 1. INTRODUCTION OF NEW COMMITTEE MEMBERS College President Bill Scroggins welcomed new members Paul Breit, Ted Ebenkamp, Fred Garcia, Monica Garcia, Marilyn Peters, Michael Zhang. Each committee member gave a self-introduction and explained what constituency they represent on the committee. Representing Business/Community are: Paul Breit, Ted Ebenkamp, Monica Garcia, Marilyn Peters, Samuel Tharpe, Tony Torng, Fidel Vargas, Sr., and Michael Zhang. Fred Garcia is the Senior Citizens Organization representative. Mindy Miracle is the Taxpayers Association representative. Virgilio Doniza represents the Student Organization. Steve O Sullivan is the representative of the College Advisory Council or Foundation. 2. ELECTION OF NEW CHAIR/CO-CHAIR It was moved by Ted Ebenkamp, seconded by Samuel Tharpe, to elect Tony Torng as Chair of the Citizens Oversight Committee. Motion unanimously carried. It was moved by Tony Torng, seconded by Ted Ebenkamp, to elect Monica Garcia as Co-Chair of the Citizens Oversight Committee. Motion unanimously carried. 3. APPROVAL OF MINUTES It was moved by Ted Ebenkamp, seconded by Samuel Tharpe, to approve the minutes of the November 3, 2011, meeting. Motion unanimously carried. 4. PUBLIC COMMENTS None. 5. FINANCIAL & PERFORMANCE AUDIT REPORTS Gary Nellesen, Director, Facilities Planning & Management, introduced Heather McGee and Jenny Dominguez from the audit firm of Vicenti, Lloyd & Stutzman LLP, who provided a review of the performance and fiscal audits of the Bond projects. The reports were for the year ending June 30, Ms. McGee reviewed the Financial Audit. In performing the audit, the objective was to document that the College is in compliance with the requirements of Proposition 39. While doing that, they look for any weaknesses in the system. Finally, their objective is to provide the Citizens Oversight Committee with a report so that it can fulfill its obligation to provide a report to the community. Based on the audit, it was determined that the College has properly accounted for the expenditures of the Proposition 39 General Obligation Bonds and received an unqualified opinion, which is the best an organization can receive.
3 Citizens Oversight Committee Meeting Minutes Page 3 The Performance Audit, as presented by Ms. Dominguez, found that, based on the procedures performed, the College has properly accounted for the expenditures of the funds held in the Construction Fund and that such expenditures were made on authorized Bond projects. There were no findings and recommendations. Ms. Dominguez said the Bond Anticipation Note (BAN) is included in the College s audit of the General Fund. It will be moved over to the Proposition 39 audit when the College is able to sell General Obligation bonds and pay off the BAN. The BAN is a five-year financial bridge until the College is able to sell the General Obligation Bond and has allowed the College to take advantage of lower construction costs and to maintain its construction schedule. The amount of the BAN was $64,996, PRESIDENT S REPORT Dr. Scroggins welcomed new members and thanked all members for serving on the Citizens Oversight Committee. Regarding Measure RR, Dr. Scroggins explained Mt. SAC s promise to the voters that the tax would not exceed $25 per $100,000 of their properties assessed value. At this time, Mt. SAC is not able to issue bonds because of the decline in property valuation over the past couple of years. The College is evaluating a number of options to sell Measure RR bonds to pay off the BAN and to continue the building program. The goal is to sell the first of the Measure RR bonds in August Dr. Scroggins also explained the current design/bid/build construction process that Mt. SAC has used for years. Due to changes in the construction market, the College is evaluating a new process, lease/leaseback, which will be used to build all of its new major projects. The new process will be presented to the Board of Trustees in March. Dr. Scroggins talked about the Measure RR amount of $353M that the voters passed in November Because no bonds could be sold since then, the College took out a $65M Bond Anticipation Note (BAN), basically a loan, in order to start some of the projects that are listed as being part of Measure RR. The 2012 Facilities Master Plan will be presented to the Board of Trustees in March. After that, detailed planning for new projects will begin. Once the Board of Trustees approves the revised Master Plan, it will be presented to the Citizens Oversight Committee. 7. PROGRESS REPORT ON MEASURE R, MEASURE RR, AND BAN PROJECTS Mr. Nellesen reviewed and explained the spreadsheets that show the Measure R, Measure RR, and BAN budgets. Director Gary Nellesen reported that all Measure R Bond funds have been budgeted. Two projects Administration Building Remodel and Design Technology Building have allocations for work that is currently ongoing. By this time next year, all Measure R money will be spent and the College will be working exclusively with Bond Anticipation Note (BAN) funds.
4 Citizens Oversight Committee Meeting Minutes Page 4 Director Gary Nellesen presented Committee members with listings of Measure R and Measure RR Bond budgets, by project. He indicated that the report includes Measure R, Measure RR, and BAN funds. Gary shared that Measure R funds have been budgeted and balanced almost to the penny. He shared detailed information on the following projects: Measure R Project 5 Agricultural Sciences Construction costs have gone up about 35% since this project was approved in The project was originally budgeted at $16,500,000 and, as of January 2012, the total cost is estimated to be $30,295,304. Occupancy took place in February 2011; however, the building is still being completed due to a number of problems with the design. The College is pursuing legal action against the architect on this project. Measure R Project 10 Design Technology Building The project is 75% complete, with most of the remaining work being installation of furniture and equipment. Since last reporting on this project, the College has been able to resolve a couple of delay issues with the General Contractor. The firm scheduled to do the landscape architect work has failed, so the bonding company has brought in another contractor to complete the work. Construction should be wrapping up in February. The building will be commissioned in March and April with move-in expected this summer. It will be ready for classes in the fall one semester later than expected. BAN Project L2 Administration Building This project is basically complete, and move-in started in November Staff is working a number of punch list items and special requests. Measure RR BAN Project F1 Classroom Renovation Building 45 This project, consisting of converting a temporary metal building into a permanent College building, is essentially complete. Staff moved in and have been using the building for about six weeks. This project was designed with Measure R funding and is being built with BAN funding. The College is holding about $500,000 in uncommitted funds. There is some landscaping to do, and it would be good to paint the exterior of the building. Mr. Nellesen said the College is currently conducting a study on a similar building on the east side of campus (Building 40) to determine if it wants to do a similar project to make it a permanent building and bring it up to Field Act standards. Measure RR BAN Project C Child Development Center This project is now funded by Measure RR BAN funds. It is a four-building project with a wood frame. There has been difficulty with the General Contractor, and their work has been turned over to the bonding company to complete. Financially, it s tracking very well, but, it will be completed at least a semester late.
5 Citizens Oversight Committee Meeting Minutes Page 5 BAN Project L7-B Renovate Classroom Building Building 12 It is very early in the project; about 90% of the design is complete. This is the chevron-shaped building located north of the Design Technology building. It was built in the 1960s and contains asbestos, which will need to be removed. The project will require extensive structural improvements to bring it up to current codes. By this time next year, the project should be in construction, which is expected to last about a year. BAN Project L7-C1 Facilities Plan Room/EOC This is a small remodel and room addition to the Facilities building. The goal is to create an Emergency Operations Center (EOC) that will most often be used as a meeting room. It will also be used to store documents generated by the College s building program. This project is 90% through design and should be out of DSA sometime this fall. BAN Project L7-C8 Student Support Services This project is in the programming phase. This project is a satellite student services center, which will provide space for a Veteran s Center, a Student Health Center, and specialized teaching space for Disabled Student programs. 8. COMMITTEE MEMBER COMMUNICATION Board President Rosanne Bader thanked everyone for serving on this very important committee that is mandated by law. Ms. Bader thanked Mr. Nellesen for keeping us on track. Board Vice President Manuel Baca also thanked everyone for their service to the College. Tony Torng indicated that the committee has a job now that there will be dollars to spend. 9. NEXT MEETING The next meeting will be held on Thursday, May 3, 2012, at 6:00 p.m., in Founders Hall. 10. ADJOURNMENT dl The meeting adjourned at 7:30 p.m.
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