March 21, 2024 Minutes
REDWOOD CITY SCHOOL DISTRICT
Citizens’ Bond Oversight Committee (CBOC)
March 21, 2024
Minutes of the Meeting
Location: Members of the Committee attended in-person at the District Office.
Present: Janet Borgens, Carolyn Chow, Jennifer Givens, Carl Landers, Karl Metz, and Jitpal Sahai
Absent: Cameron Hoffman, Rodney Leach and Jacqueline Rodriguez Luna
Others present: Olivia Acosta, Supt. John Baker, Ed.D., Martin Cervantes, CBO Rick Edson, Jennifer Gibb (VPCS), Kelli Jurgenson (VPCS), Ben Kerr (VPCS), Trustee Janet Lawson, Trustee Mike Wells, Angie Ramich (VPCS), Will Robertson (RGM), Erika Szallos and Eric Van Pelt (VPCS).
1.0 Call to Order
1.1 Roll Call
Meeting was called to order at 6:00 pm. Roll call was taken and quorum was established.
1.2 Welcome – Carl Landers, Chair
Chair Landers welcomed the committee.
2.0 Agenda Review
2.1 Changes to the Agenda
The committee combined items 5.8 Receive update from District filling the committee vacancy: representative of business organization and 5.10 Receive District’s plan for CBOC member upcoming term expirations and moved Item 5.9 Discuss CBOC website suggestions after the combined 5.8/5.10 items.
2.2 Approval of Agenda
Motion to approve the March 21, 2024 Agenda
(Janet Borgens; Carolyn Chow; 6-0)
3.0 Public Comment on Items Not on the Agenda
3.1 At this time members of the public may address the CBOC on any items of interest to the public that are within the subject matter jurisdiction of the CBOC but not on the agenda for the meeting. Speakers are requested to limit their remarks to three minutes. No Committee action can be taken.
Chris Robell shared his concerns on workforce housing and concerns on the sale of the bond.
4.0 Action Items
4.1 Approval of November 14, 2023 Committee Meeting Minutes
Motion to approve the November 14, 2023 committee meeting minutes
(Janet Borgens/Jitpal Sahai; 5-0; 1-Abstain)
4.2 Motion to remove Committee Members for excessive absences, per CBOC bylaws section 3.3.B
The committee discussed removing committee members for excessive absences.
Mr. Landers asked if there is a specific number of absences stated in the bylaws.
Mr. Metz read the bylaws regarding the removal of committee members, where there is no specific number of absences labeled as excessive.
No action was taken.
Public Comment: Chris Robell stated that the committee is an independent bond oversight committee; the committee runs the meeting and they make their own decisions.
5.0 Information and Discussion
5.1 Receive and discuss district’s presentation on selection process for new bond program manager, Van Pelt Construction Services (VPCS)
CBO Edson shared a presentation on the selection process for new bond program manager. CBO Edson said that an RFP/Q was posted on the website and in the newspaper in August, 2023. He added that four firms submitted proposals of which two firms were selected for interviews. In November, 2023, the VPCS contract was presented to the board for approval.
5.2 Receive and discuss presentation from bond program manager VPCS on management approach
The Van Pelt Construction Management team shared a slide presentation on their management approach for the Measure S Bond Program.
Chair Landers asked who would be on the onsite RCSD team? VPCS responded that it would be Eric Van Pelt and Ben Kerr, but as the program is up and running there will be more of the VPCS team.
5.3 Receive and discuss district’s presentation on Measure S bond progress to date, including bond sales, bond proceeds, use of proceeds to date, interest expense to date, expenditure approval process, contracts/projects/expenditures approved, upcoming milestones, and any disputes and public comment received on use of Measure S bond proceeds
CBO Edson shared a slide presentation. He stated the Measure S Series A was sold on June 28, 2023 in the amount of $90 million, with net proceeds of $89.5 million. CBO Edson added that the district had received $1.5 million in interest to date, with an expected interest for the 2023-24 FY of $3.1 million. The interest expense to date is $2.66 million with is fully covered by the Capitalized Interest Fund and a net $0 expense to taxpayers.
CBO Edson shared that the bond expenditure approval process includes a recommendation to the school board for approval.
CBO Edson said that the VPCS contract was approved in September of 2023 and currently have Request for Proposals (RFP) for architectural services that will be presented to the board for approval. He added there will be some quick start projects that may be implemented in the near future. In addition to, the district is working on implementing a new bond financial management software.
CBO added that there have been no disputes in public comment and added that there has been public comment on the timing of the sale of the bond and the perceived cost to taxpayers.
VPCS said that the school sites, as well as the taxpayers, would be communicated of the upcoming meetings and given surveys on the Facilities Master Plan so that the community could put in their suggestions.
Public comment: Mr. Robell shared his concerns on the costs to taxpayers.
5.4 Receive and discuss ad-hoc subcommittee findings on independent counsel for the CBOC
Chair Landers said that at the previous meeting Ms. Hoffman volunteered to chair on an ad-hoc subcommittee, to look into independent counsel for the CBOC, and added Ms. Hoffman was the only member on the subcommittee.
Ms. Borgens commented that after several attempts there was no adhoc committee meeting held, as she also had volunteered to be part of the subcommittee at the last meeting, and added that the findings are solely Ms. Hoffman’s comments.
Chair Landers read Ms. Hoffman’s findings on independent counsel for the CBOC.
Ms. Borgens added that Ms. Hoffman had questions for the district and the questions were all responded by the district. Ms. Borgens shared the responses to the CBOC.
Mr. Sahai asked why is the CBOC in need of independent counsel? Chair Landers said that they did not want an attorney advising on two sides of an issue.
Mr. Sahai asked if other districts have independent counsel? Chair Landers asked Mr. Robell, a member of the public, to share his comments on this.
Public comment: Mr. Robell commented that the CBOC should have its own independent counsel and shared his concerns on the reasons why the CBOC should have their own independent counsel.
Mr. Sahai commented that if they are an oversight committee would they want to spend taxpayers’ dollars on independent counsel. He added that Mr. Robertson, at RGM, and the district’s accounting team has been very transparent with all expenses on the bond fund, which they have reviewed, and asked how is the CBOC liable and are they questioning their own judgement? Mr. Sahai added that the CBOC is not part of the decision-making on how the bond funds are spent.
Chair Landers responded that the committee may need legal advice.
The CBOC continued a discussion on independent counsel for the CBOC.
Ms. Borgens suggested that Dannis, Woliver and Kelly (DWK), the district’s counsel, present at the next CBOC meeting.
Mr. Sahai stated that he did not feel the CBOC needed an independent counsel unless the need arose.
Chair Landers agreed that DWK should present to the CBOC on how they would handle the situation should it arise.
5.5 Receive progress report on Measure T remaining projects and close-out process
Mr. Robertson shared that there are nearing completion of the close-out phase at Garfield. He added that they completed the final punch-list items and close-out phase district-wide for the Energy Management System (EMS), have completed Hawes video intercoms project, completed the McKinley theater lighting technology upgrade. He said that they are working with the district to obtain the remaining state funding reimbursements for Measure T projects. He added that they are in the procurement phase of the district-wide solar Phase II project.
Mr. Landers asked if there any funds left in Measure T? Mr. Robertson said there are about $.5 million left.
5.6 Review Measure T Bond activity – October 1, 2023-December 31, 2023
5.6.1 Review list of bond expenditures since last meeting
The district shared a spreadsheet of the bond expenditures from October 1, 2023-December 31, 2023.
5.6.2 Review list of contractor change orders approved by the District since the last meeting
The district provided a list of contractor change orders approved by the district since the last meeting. The total change orders equaled around $36,000.
5.6.3 Review list of no-bid contracts executed by the District since the last meeting
The district provided a list of seven no-bid contracts that were executed by the district since the last meeting.
5.6.4 Review new projects/spending approved by Board since the last meeting
The district shared the handout with new projects approved by the Board since the last meeting.
5.6.5 Review list of current litigation and disputes related to bond programs
There were no current litigation and disputes related to bond program.
5.7 Receive District's financial update on total revenues and expenditures for Measure T and Measure S bond programs
Ms. Szallos shared several handouts. Ms. Szallos stated that for fiscal year 2023-24, the year to date (ending December 31, 2023) revenues are $33k and expenditures are $1.5 million.
Public comment: Mr. Robell shared his concern on the expense for backpack hooks and concerns that Beals-Martin was contracted to install the hooks.
Ms. Borgens shared her concerns and opinion on the public comment and added that there are many costs involved to installing a backpack hook, including ADA compliance.
Mr. Metz shared his concerns and opinion on the public comment, and added that the Home Depot hook is not the same type of hook that would be installed for a school site.
Mr. Robertson said that there were other charges such as, carpentry, painting, materials, safe-backing, and the cost of the prevailing wages/labor.
5.8 and 5.10 were combined. 5.8 Receive update from District filling the committee vacancy: representative of business organization 5.10 Receive District’s plan for CBOC member upcoming term expirations
Chair Landers said that currently there are seven members in the committee, however, the member representing the business organization is still vacant.
CBO Edson shared that the district has reached out to the community and have not received any applications. He shared a chart showing the members’ expiring terms and representation, as well as, the vacancies. Two members resigned therefore, there is a total of seven current members. CBO Edson that the district will reach out to various communities to let them know the district is seeking members.
CBO Edson shared a chart with the number of membership representation. The chart showed the committee had no representation in the Business Organization and Parent/Guardian with a child enrolled in the District and Active in PTA/PTO.
Chair Landers, who represents Parent/Guardian with child enrolled in the District, said that he is Active in the PTA/PTO and could fill that membership requirement.
5.9 Discuss CBOC website suggestions (Item 5.9 was moved after Item 5.8/5.10)
Mr. Metz said that the website has a Quicklink to the CBOC agenda and requested a Quicklink to the CBOC website.
5.11 Discuss meeting dates and agenda topics for the next meeting
Possible items on the agenda; DWK to present, VPCS to present best CBOC practices and the Bond audit.
Next meeting dates:
- May 16, 2024
- August 29, 2024
- December 5, 2024
6.0 Adjournment
Motion to adjourn the March 21, 2024 meeting
Meeting adjourned at 8:27 p.m.
(Jennifer Givens/Jitpal Sahai; 6-0;)