Community College District
Bond Citizens Oversight Committee Minutes
June 11, 2003 - 6:00 p.m.
Merced College Tri-College Center Board Room
Bob Edminster, Michelle Allison, Chris Tafoya, Keith Groniga, Maggie Randolph,
Mary Villalta Brooks
Chi Chi Wood, Barbara Ward, Gerald Hoyt
Ben Duran, Larry Johnson, Marvin Smith, Joe Allison, Chet Quaide, Bruce
The meeting was called
to order at 6:03 p.m. by Larry Johnson. Since the Chair and Co-Chair had
not been selected at this time, Larry Johnson chaired the meeting.
Larry Johnson explained
to the committee that all Citizens Bond Oversight Committee Meetings fall
under the Brown Act and as a result, all meetings are open to the public.
An opportunity will be given to citizens to address the committee on matters
of the bond process - a five minute time limit will be allotted to each
speaker, with a maximum of twenty minutes to each subject, unless extended
by the Chairperson. Minutes of all meetings will be kept on file and posted
on the Bond COC web site.
The web site address
- Additions to the
Agenda - There were no additions to the agenda.
- For Discussion/Action
Each committee member and staff member introduced themselves and
gave a brief description of their role to the committee.
Ben Duran welcomed the committee members and thanked them for their
commitment to Merced Community College District.
Planning Process: Terry Eyrich, MCCD Facilities Master
Planning Committee (FMPC) Chairperson, gave the committee a brief
history of the planning process. In 1991, the FMPC was formed for
the purpose of developing the College's Facilities Master Plan,
which serves as a key document in the preparation of the Educational
Master Plan. The Facilities Master Planning Committee is a shared
governance group composed of administrators, faculty and staff from
all areas on campus.
explained that since 1991, the FMPC has been responsible for planning
20 projects; seven have been funded. Terry referred to a handout
which showed the Life of a Construction Project. Project identification
is based on several key factors such as Division five-year plans,
input from District planners and architects, input from the State,
cap/load ratios and input from the campus community. Terry also
referred to the Campus Master Plans for Los Banos and Merced and
explained that these plans represent buildings planned through 2040.
that we are very fortunate to not only plan for the future but to
actually build for the future.
Bond Process - Bruce Kerns, District financial consultant
with Stone and Youngberg LLC, gave the committee a brief overview
of the bond sale process. Bruce referred to several handouts and
explained that the first document was an Official Statement, which
outlined the series of bond sales and included ratings, interest
rates and investor yields. The other two documents were summaries
prepared by the rating agencies and analyzed the investments of
both improvement districts.
explained the Improvement Districts were given very good ratings
as a result of the presentations given to the rating agencies last
month. Investors look at the ratings before determining whether
or not to invest. In addition to the good ratings, the District
purchased bond insurance, which gives the investors assurance that
the payments will always be made.
will send copies of the booklets prepared for the rating agencies
and Sheila will distribute them to the committee members for review.
The document is an excellent source of information about the District.
explained to the committee that prior to the bond election, the
citizens were polled and the outcome was favorable with the caveat
that revenue generated from Los Banos, stay in Los Banos and the
revenue generated from Merced, stay in Merced. Because of this,
District representatives chose to re-district the area which led
to School Facilities Improvement District 1 (Merced) and School
Facilities Improvement District 2 (Los Banos). Larry wanted everyone
to know that throughout this process, we will refer to Improvement
District 1 and Improvement District 2.
Chris Tafoya asked Bruce if committee members were precluded from
investing in these bonds. Bruce said no, committee members could
invest in these bonds.
COC Bylaws - Larry reviewed the proposed COC bylaws with
the committee and explained that the Bylaws will be presented to
the Board of Trustees at the June 17 Board Meeting.
review, there was consensus that Section VI - Item A be changed
to the following AA quorum shall consist of a majority of those
appointed to the committee.
Responsibilities - Chet Quaide, District Legal Counsel
with Atkinson, Andelson, Loya, Ruud and Romo, gave the committee
a brief overview of committee responsibilities and the Brown Act.
that Ed Code Section 15278 (a) provides for the establishment of
a citizens' oversight committee when a bond measure is passed. The
citizens' oversight committee shall actively review and report on
the proper expenditure of taxpayers' money for school construction.
Based on the
proposed bylaws, the COC may:
and review copies of the annual independent performance audit
conducted to ensure that the bond revenue has been expended
only on the specific projects listed in the bond propositions;
and review copies of the annual independent financial audit
of the bond revenue.
Chet gave the committee a brief overview of the Brown Act and
specifically review the following items:
- A meeting
is a gathering of a quorum of the legislative body, no matter
how informal, where business is discussed or transacted.
- An agenda
must be conspicuously posted at least 72 hours prior to the
time of regular meetings in a location freely accessible to
members of the public.
of the public must be able to address the board regarding items
on the agenda before or during the governing board's consideration
of the item.
shall be taken recording all actions taken by the governing
board. The minutes are public records.
- Only items
listed on the Agenda may be discussed.
Process - Marvin Smith, District Director of Business Services
and Joe Allison, Director of Fiscal Services presented the committee
with two sample spreadsheets for reporting bond expenditures. Marvin
asked the committee if they had a preference on either one.
there was consensus from the committee that Marvin and Joe prepare a
draft spreadsheet which gives the detail from the Santa Rosa sample
and the information from the Ventura County sample. Marvin and Joe will
create a draft form and bring it to the next meeting for the committee
- Bond Resolution
- Larry Johnson referred to the two board approved Bond Resolutions
for SFID 1 and SFID 2. Larry said that Exhibit A for each resolution
clearly identifies the projects that will be completed with bond revenues.
He added that at the fall meeting, a more detailed explanation of the
bond projects will be presented by the District Architect.
asked what happens with the extra dollars if the bond projects come
in under budget. Ben referred to Exhibit A on both resolutions and explained
that any available dollars would go towards ongoing Architectural Barrier
Removal and ongoing remodels as a result of vacated buildings on campus.
to the rating presentation packet and explained that the packet included
a bond sequence, which outlined the spending plan at this time.
added that failure to pass any of the state bonds in the future would
seriously affect our ability to leverage capital construction projects
with state funding. Each year the bond sequence will be reviewed and
updated based on the outcome of many variables.
will send committee members a copy of our Five-Year Construction Plan
and a copy of the booklet prepared for the rating presentations, which
includes the Bond Sequence.
Brooks asked if we were under City or County jurisdiction. Ben said
that we are under State jurisdiction.
adjourned at 7:34 p.m.