November 3, 2016 minutes
REDWOOD CITY SCHOOL DISTRICT
Measure T Committee
November 3, 2016
Minutes of the Meeting
Location: District Office Board Room
750 Bradford Street
Redwood City, CA 94063
Present: Lori Bluvas, Michael Bolander, Elizabeth Flegel, Felix Gonzalez, Ellen Jacobson, Jeanne Panos, Burgess Peck, Carolina Webster, Dennis McBride, Hilary Paulson, Don Dias, Ralph Caputo, Candy Burns, Will Mangrum, Naomi Hunter, Janet Mueller, John Baker, Wael Saleh and Olivia Acosta
Absent: Richard Delfs and Rebecca Weekly
1. Call to Order
Meeting was called to order at 6:00 p.m.
Chief Business Official Saleh stated that he would lead the meeting until Item 5.1, when committee appoints a Chair and Vice-Chair. CBO Saleh moved item 4.1 Welcome and Introductions to the beginning of the meeting.
a. Welcome and Introductions
Superintendent Baker and CBO welcomed and thanked the committee for participating in the committee. The Measure T Oversight Committee members, District representatives and consultants introduced themselves.
2. Approval of the Agenda
(Lori Bluvas, Burgess Peck; 8-0)
3. Public Comment
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. Speakers are requested to limit their remarks to three minutes. No Committee action can be taken.
4. Information/Discussion
4.1 Welcome and Introductions moved to the beginning of the meeting.
4.2 Presentation: “The Role of the Citizen’s Bond Oversight Committee.”
· The district’s bond counsel attorney provided an overview of the committee’s purpose and legal operating requirements.
· Janet Mueller, Bond counsel attorney, said that the committee would have full support from the school district.
· Ms. Mueller presented “The Role of the Citizen’s Bond Oversight Committee” PowerPoint presentation.
· The First Bond (Series A) in the amount of $60 million was completed in September of 2016. $60 million of the maximum $193 million, the amount the voter’s approved, was issued. District must spend the bond proceeds within a 3-year period. Every other year the district may do another bond sale, depending on the district’s needs. The life of the bond program may take up to ten years, not only to issue the bond but due to the construction.
· Currently, there are ten oversight committee members, representing required constituents, still need one more member, the Taxpayer Organization representative. At the next meeting, the terms for each committee member would be set. For the first year terms will be either a 1-year or a 2-year term. Member may serve a maximum of three terms. Committee must exist until all $193 million are spent.
· The oversight committee has the responsibility to report to the public, by submitting and presenting to the Board, a minimum of one report every year. The District determines how funds may be spent, determines project timing, who will be hired to do the work, and when the bonds will be issued.
· Michael Bolander asked if there was a limit on how much bond funds are spent on consultants and property management. Janet Mueller replied that there is no limit, but there is an analysis on what that amount may be.
· Janet Mueller explained the intent of the Ralph M. Brown Act, which is to keep the public informed of the actions, debates and views of locally elected representatives and to provide the procedural framework for local officials to meet, debate, act and listen collectively to their constituents. Meetings are open to the public. Agenda must be posted 72 hours in advanced from the meeting. A quorum is established when at least 6 members of the Measure T Oversight committee meet, therefore, that is considered a meeting.
· The Conflict of Interest form for the committee members to sign will be added to the next meeting agenda.
4.3 Discuss adoption of CBOC bylaws
· Janet Mueller discussed the proposed Citizens’ Bond Oversight Committee bylaws.
· Burgess asked if the Annual report should be a standing or an adhoc subcommittee. Janet Mueller recommends it to be an adhoc meeting.
· The Term of Service item 3.2.A will be updated to read “Committee members serve without compensation for a term of two (2) years, except that in the Committee’s first term, four members shall serve a term of one (1) year. The determination of who shall serve for one year will be made by the Committee by whatever reasonable method the Committee shall choose. A person may serve for no more than three (3) consecutive terms.”
· The Term of Service, item 3.2.C will be updated to read “After appointment, Committee members who wish to be appointed for a second or third two (2)-year term shall reapply to the Board for consideration.”
· Meetings, item 5.0.A. has been revised to “The Committee shall meet at least quarterly, in March, June, September, and November each year.”
4.4 Review District’s sale of Series A Bonds
· CBO Saleh said that in November, 2015 the community voted for Measure T which authorized the District to issue $193 million in the sale of bonds. In September, 2016 the first bond was issued in the amount of $60 million. The actual cash was $59,765,000 as there was issuance, legal and financial fees, which are taken from the proceeds. In addition, the issuance received an additional amount as premium that is held by the County and can be only used to payback the loan and can’t be used for construction.
· Burgess Peck asked if the funds are kept in the district’s reserve. CBO Wael responded that the funds are kept in a separate account fund; there is no commingling.
· Elizabeth Webster asked why are we doing them in portions not as a whole. CBO Saleh responded that by law the district may not add to the property tax more than $30 per every $100,000 accessed value.
4.5 Overview of District’s planning progress to date
· Will Mangrum, Brailsford & Dunslavey, shared the summary of progress made since the approval of the Measure T Bond.
· District brought Sarah Schoening, Program Advisor, to assist with program budget modeling, bond issuances, organization structure, and developing RFQ (Request for Qualification) for the Program Financial Accounting Systems (the software from Colbi Technologies was chosen), Architects and Engineers, and Program Manager.
· Burgess Peck asked if the district would be doing all the work from the Facilities Master Plan. Will Mangrum responded that only Phase I of the Facilities Master Plan. Burgess asked if what is the total cost of the FMP. CBO Wael responded that it is about $600 million.
· Elizabeth Flegel asked if there are extra funds after Phase I is done, can those funds be used for items outside of Phase I, for example items in Phase II. Ralph Caputo responded that there the district may use the funds for Phase II, as long as it is within the parameters of the expectations, can not create new types of projects.
· Trustee McBride mentioned that at the next Board meeting on November 8, the focus of the meeting is on the Bond and added that this Friday, November 4 after 5:00 pm the PowerPoint presentation would be posted on the District’s Agenda. Hilary added that the presentation is 35 pages.
4.6 Update on bond expenditures to date
· CBO Saleh shared the Bond Summary Report Expenditures from March 1, 2016-September 30, 2016.
· Michael Bolander asked that if the bond was sold in September how are these funds being covered. CBO Saleh responded that the Board adopted a resolution that the district can go back 60 days from the passage of the resolution, which would be April, 2016. Dennis added that the District advances the funds and can be reimbursed.
· The total expenses are $418,555, which includes expenses such as, the Bond Program Director, Schoening Group (consultant), Program Management fees, in addition to legal & audit fees and improvements for the construction office, which includes furniture and office equipment.
5.0 Action Items
5.1 Appoint Chair and Vice Chair for CBOC
Michael Bolander volunteered as Chair of the Committee (8-0)
Burgess Peck was appointed as Vice-Chair (Elizabeth Flegel/Felix Gonzalez; 8-0)
5.2 Approve CBOC meeting calendar
The committee agreed to meet four times a year, the first Thursday of the following months: March, June, September, and November, from 6:00 pm-8:00 pm (Elizabeth Flegel, Jeanne Panos; 8-0)
5.3 Approve CBOC bylaws
The committee approved the CBOC bylaws with the following changes:
(Burgess Peck/Lori Bluvas;8-0)
6. Discuss Future Meeting Date/s
The next meeting will be held on Thursday, March 2nd, 2017 at 6:00 pm at the Redwood City School District Office, Board Room.
7. Adjournment of the Meeting
· Meeting adjourned at 8:12 p.m.
(Jeanne Panos/Felix Gonzalez;8-0)