October 27, 2022 Minutes (Regular Meeting)
REDWOOD CITY SCHOOL DISTRICT
Measure T
Citizens’ Bond Oversight Committee (CBOC)
October 27, 2022
Minutes of the Meeting
Location: Members of the Committee attended in-person at the District Office and virtually via Zoom.
Present: Carolyn Chow, Jennifer Givens, Raquel Gonzalez, Cameron Hoffman, Carl Landers, Karl Metz and Jitpal Sahai
Carolyn Chow arrived at 6:20 p.m.
Absent: Rodney Leach and Jacqueline Rodriguez Luna
Others present: Olivia Acosta, Supt. John Baker, Ed.D., CBO Rick Edson, Janet Mueller (DWK), Will Robertson and Erika Szallos and Trustee Mike Wells
1.0 Call to Order
Meeting was called to order at 6:09 p.m.; quorum established.
2.0 Approval of October 27, 2022 Meeting Agenda
Motion to approve the October 27, 2022 meeting agenda and move item 4.0 Action Items 4.1 - 4.3 Election of Chair and Vice-Chair for Measure T Citizen’s Bond Oversight Committee prior to item 3.0 Public Comment
(Carl Landers/Jennifer Givens; 6-0)
4.0 Action Items (Action Required)
4.1 Election of Chair and Vice-chair For Measure T Citizen’s Bond Oversight Committee
4.2 Election of Chair for Measure T Citizen’s Bond Oversight Committee
Motion to elect Carl Landers as Chair for the Measure T Citizen’s Bond Oversight Committee
(Jitpal Sahai/Jennifer Givens; 6-0)
4.3 Election of Vice-Chair for Measure T Citizen’s Bond Oversight Committee
Motion to elect Jennifer Givens as Vice-Chair for the Measure T Citizen’s Bond Oversight Committee
(Jitpal Sahai/Cameron Hoffman; 6-0)
3.0 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.
Mr. Tom Rubin, member of the Board of Directors of the California Association of Bond Oversight Committee, had concerns on rules and requirements pertaining to the Bond Oversight Committee meeting, for example roll call by name for action items and public posting of the meeting.
Mr. Chris Robell, citizen of the community, had concern that his agenda items were not included in Measure T Committee’s meeting. Mr. Robell had concerns regarding the committee’s reporting requirements and various other concerns such as the CBOC website video/audio recordings of the meetings. Mr. Robell had concerns regarding allowable expenditures on Proposition 39.
Ms. Alise Dixon, citizen of the community, had concern on the lack of outreach to the public and would like to see more participation from the public regarding the measure T bond.
Mr. Tom Rubin said he had reviewed the committee bylaws and recommends the committee have its own independent bond counsel to advise the committee.
4.0 Action Items (Action Required)
4.4 Approval of April 21, 2022 Measure T Committee Minutes
Motion to approve the April 21, 2022 Measure T Committee minutes
(Jennifer Givens/Karl Metz; 7-0)
5.0 Information/Discussion
5.1 Welcome New Members and Introductions
5.1.1 Updated CBOC Membership, Position, Term, and Representations
CBO Edson shared the handout on the updated CBOC membership, position, term and representation of the current CBOC members and explained that there are currently two vacancies.
Mr. Landers would like to add on the next agenda to update the number of members of the committee in the bylaws.
Ms. Janet Mueller said that the committee may update the bylaws as long as it is in the parameters for the committee on the District’s board policies.
Members of the committee introduced themselves to the committee.
Ms. Hoffman requested the term end dates of the two vacancies be added to the list.
Public Comment:
Ms. Alise Dixon had concern regarding outreach to the community and said the committee member application link is not working.
Mr. Tom Rubin advised on ways to reach out to the community to seek members, such as taxpayers’ association and PTO committees.
5.1.2 Citizens’ Bond Oversight Committee Bylaws
The committee received the handout on the Citizens’ Bond Oversight Committee Bylaws.
5.1.3 Discussion of Authorized Prop. 39 Expenditures
Ms. Mueller, Attorney at DWK, explained that Measure T passed in November, 2015 and added that all bonds have been sold and almost fully spent. Ms. Mueller said that the committee is composed of eleven members; nine positions filled plus 2 vacant positions. Members serve 2-year terms, with a maximum of three consecutive terms.
Ms. Mueller explained that the California constitutional requirements is to ensure bond revenues are expended only for construction, reconstruction, rehabilitation or replacement of school facilities. In addition to, ensure that funds are not used for teacher or administrative salaries or other school operating expenses.
Ms. Mueller added that the furnishing and equipping of school facilities and the acquisition or lease of real property are allowable uses of bond proceeds. All projects must be within the scope of the Bond Project List which has been adopted by Board.
Ms. Mueller said that bond funds may pay for district employee salaries to the extent that they are performing administrative oversight work for bond-funded projects. As well as, employees overseeing construction progress, consultants, project management and accounting of bond-funded projects.
Ms. Mueller added that other permissible expenses include deferred maintenance projects, furniture and equipment for school facilities, construction labor and materials and professional fees, for example architects, attorneys, environmental reviews and relocation costs.
5.1.4 Discussion of CBOC reporting requirements
Ms. Mueller said that the CBOC meetings must be open to the public with notice to public same as school board meetings.
Ms. Mueller said that the CBOC should issue a report at least once a year. The CBOC is entitled to receive and review the RCSD’s independent financial and performance audits. This is so that the CBOC may have as much information as possible in order for CBOC to do their annual report. Ms. Mueller said that meeting minutes and all documents received or issued by the CBOC are to be posted on the RCSD website. Ms. Mueller added that the district is currently updating their website to insure accessibility of all the materials on their website.
Ms. Mueller added that the district staff must provide technical and administrative assistance to the CBOC. The duties include preparing Brown Act agendas and minutes, posting CBOC documents on the website, compile correspondence submitted to CBOC, provide financial and progress reports on construction program, submit financial and performance audits to CBOC, and respond to findings, recommendation and concerns addressed in the audits.
Ms. Hoffman asked if the Committee members are allowed to meet multiple statutory representation requirements. Mr. Landers responded that yes, that it is in the committee bylaws. Ms. Mueller added that the law does not speak to that issue and therefore, if it is in the bylaws to be sure the committee has representation and a person meets multiple statutory requirements then it is allowed.
Ms. Hoffman asked if the Bond Project List that the committee must refer to as a guiding principle is the same document as the California Constitutional citation to the specific school facilities project. Ms. Mueller responded yes.
Public Comment:
Mr. Robell recommended to the committee that they seek their own bond counsel and had concerns on Prop 39 allowable expenses.
Mr. Rubin said he agreed with Ms. Muller’s presentation but added that he recommends the committee seek their own bond counsel.
5.2 Progress Report on Bond Construction and Modernization Projects
Mr. Robertson shared the RCSD Measure T Bond Program Project Progress Tracking Matrix as of August 10, 2022 which shows almost all projects are complete with the exception of Garfield, Orion and Taft that are in the closeout phase.
Mr. Robertson shared the Bond Program Construction Progress Photo Update. He shared photos of Garfield, Orion Alternative and Taft School.
Mr. Landers asked if there are estimated completion dates for the three remaining projects. Mr. Robertson responded that they should be in the final weeks of close-out for the three sites.
5.3 Update on Total Revenues and Expenditures for Measure T Bond Program
5.3.1 Update on Total Revenues and Expenditures for Measure T Bond Program
Ms. Szallos shared the Sources and Budgets Report from the Accountability accounting system, which show the latest updates from the total budget approved at the September 14, 2022 special board meeting. The data from the report shows revenues and expenditures as of August 22, 2022 from the Proposition 39, General Obligation Bonds and Impact Fees funding sources. The total revenues are $214.7 million. The items highlighted in grey are the completed projects and the items highlighted in orange are the total expenditure for each site.
Mr. Landers asked when do the contingencies get moved to the Board reserves. CBO Edson responded that once the project is closed out/complete, funds would be moved to the board reserves with board approval. Mr. Robertson added that there are $4.1 million in total project contingencies which includes $2.1 million in board reserves and approximately $2 million project contingencies and added that he expects to be spent on the actual project.
Public Comment:
Mr. Robell had concerns on how the funds were actually spent compared to the original budget created in 2013 and if funds were spent on all projects originally listed.
5.3.2 Update on the 2021-22 Year End Report for Measure T Bond Program
Ms. Szallos shared the Expenditures Summary report. The total expenditures for FY 21-22 (as of June 30, 2022) on all three funds are $53.4 million and the total expenditures for all-years are $195.2 million. Ms. Szallos added that Fund 01/Prop 39 and Fund 25-Impact Fees have been fully spent.
Ms. Szallos shared the handout from District’s financial system as of June 30, 2022 and explained that it is the supporting document for previous handout presented, the Expenditures Summary report. CBO Edson added that the District’s financial system report matches the bond team Account-Ability system.
Ms. Szallos shared the Account-Ability Budgets and Expenditures report as of June 30, 2022. The total budget is $214.7 million of which $195.3 million has been paid; about 91% of total budget.
5.3.3 Discussion of District’s Plan on Spending the Reserves
CBO Edson said that additional projects will be determined through the subcommittee after they review the project list. Projects will be presented to the board for approval.
Public Comment:
Mr. Rubin asked how the District is doing on claims and/or expect any claims and if reserves are necessary to cover any claims.
5.3.4 Discussion of District’s Communications Plan and Outreach to the Community
Mr. Landers commented that due to the desire to pass Measure S there has been a tremendous amount of outreach and is satisfied with what is happening with current bond (Measure T).
CBO Edson recommends this item to be added to the next meeting in order to tie the outreach to community and recruitment of new members.
5.3.5 Discuss future meeting dates and items for the agendas
Mr. Landers suggested to have school site visits since there are new members in the committee. Mr. Robertson recommended to split into two site visits with different times in order to make it work for everyone’s schedules.
Mr. Metz had concerns that the school site visits may not count as a meeting.
Mr. Landers asked if the school site visits would be a posted as a public meeting. CBO Edson responded that the District would look into it.
Mr. Landers asked if the committee members would like to add anything to the next meeting agenda that would take place on Thursday, December 8. Ms. Hoffman responded she would like to suggest a discussion item on the appointment of a parliamentarian and adding an agenda item on potential committee bylaws changes. Ms. Hoffman asked if the District could find out what other Districts, within the county, are doing for independent counsel.
Mr. Landers said he would like to add to the next meeting agenda, the outreach to the community on the recruitment of new members.
Ms. Hoffman stated that per committee bylaws one committee member may represent two categories as long as the correct number of seats are filled and suggests that the committee survey the current committee members to check if the committee is already meeting the statutory requirements.
Ms. Givens asked if it would be too soon to have a Measure S update on the next agenda. Mr. Landers responded that they should know the status of Measure S at least three days prior to the agenda posting.
Public Comment:
Mr. Rubin commented that per Education Code 15280 (a)(1) states that the governing board of the district shall, without expending bond funds, provide the citizens’ oversight committee with necessary technical assistance. Mr. Rubin commented on whether districts should be one or two Bond Oversight Committees (BOC) and said that majority of districts have one BOC.
Mr. Robell asked for the committee to consider a way for the public to engage with the CBOC members and said that CBOC meetings should be posted on the homepage of the District website, as well as, all CBOC documents such as annual reports and agendas/handouts to be posted on the committee page.
5.3.5.1.1 2020/21 Measure T Citizen’s Oversight Committee Annual Report - approval item
CBO Edson commented that the annual report is almost complete and suggested the committee meet by December 8th in order for the committee to approve the report and the committee to present it to the District’s board at the December 14th board meeting.
6.0 Adjournment of the Meeting
Motion to adjourn the October 27, 2022 meeting
Meeting adjourned at 8:14 p.m.
(Cameron Hoffman/Jitpal Sahai; 7-0)