FREMONT-NEWARK COMMUNITY COLLEGE DISTRICT

Ohlone College

Room 1216

43600 Mission Boulevard, Fremont, CA

 

Minutes of Citizens' Oversight Committee

June 3, 2002

Page 1 of  3 Pages                                                            UNADOPTED

                                                                                                           

 

MEMBERS PRESENT:            James Griffin

                         Louis Willett

                         Kenneth Ballard

                         Pat Danielson

                         John Copley

                         Yelena Abubekerova

                         Dan Chang

                         Leo Hinkel

                         James Laub

                         George Mathiesen

                         Emily Sawyer

 

MANAGEMENT

PRESENT:            Dr. Floyd Hogue, President/Superintendent

                                               

 

OPEN MEETING:            The meeting was called to order by John Copley at 6:30 p.m.

 

                         The pledge of allegiance was led by John Copley.

                         All members were present except Arthur Geen.

 

Communications

from the Audience            None

 

 

OTHER SCHEDULED

ITEMS

 

1.                  Approval of Minutes from May 20, 2002 meeting.

                            Mr. Laub requested that members who were present be named in the notes.

                            Minutes approved.

 

2.                  Election of Vice Chair and Secretary

It was moved, seconded, and approved unanimously to convert the current temporary officers, Pat Danielson as Vice Chair, and Yelena Abubekerova, Secretary, to permanent.  Both candidates agreed to continue in their positions.

 

3.                  Review of the Ballot Language Statement

Dr. Hogue handed out a copy of the full text of Measure A, and reviewed the functions of the Bond Oversight Committee.   He further elaborated that Prop. 39 requires the formation of this committee.  There was a question regarding the reasoning for having an outside firm(s) oversee and participate in the projects.  Dr. Hogue noted that auditing the separation of employees' time from project work and regular job responsibilities would be very difficult, and he also pointed out the added inspections from State sources to help control costs and quality.

 

4.                  Review of the Status of the RFP for Project Manager

                        Marian Castaneda, Director of Purchasing, Contract Administration, and Auxiliary Services provided an update on status of the search for project management for projects planned in connection with the Bond.  She reported that 26 people, representing 21 companies, attended the informational meeting on May 29, 2002, in response to ads in the San Jose Mercury and The Argus newspapers.  She also noted that the interviewing committee is composed of Dr. Floyd Hogue, Deanna Walston, Dr. Paulette Perfumo, Simon Barros, Marian Castaneda, Mal Leal, Kenneth Ballard, and James Laub.

 

                        RFP responses are required by June 18, 2002, and screening will take place on June 24th through June 26th.  Interviews will be scheduled for July 1, 2002, and July 2, 2002.  The selected person/firm will be sent for approval to the Board of Trustees meeting on July 24, 2002.

 

5.                  Review of the Status of First Bond Series Issuance

Dr. Hogue shared the ratings the District have received from Standard & Poor's and Moody's.  S&P's rating was AA-, while Moody's was AA3.  Apparently, the economy of the area, the median income, and the District's management of expenses and enrollment were key reasons for the high ratings, as well as the significantly small debt ratio of the District.

 

The Committee was informed that Dr. Hogue would be participating in a conference call on Wednesday with the underwriters and bond advisor to discuss the possibility of purchasing insurance to maintain the highest bond rating.  This would be dependent on the market when the sale of the bonds occurs.

 

6.                  Mock-up and Review of Financial Reports to the Committee

Dr. Hogue stated that no draft form has been created yet, but the reports will most likely be similar to those presented to the Board of Trustees.  He also pointed out that the project management, when chosen, may have their own software reporting forms; therefore, he declined to offer any samples.

 

                        Dr. Hogue also stated that the law requires a separate audit for the bond.  The first audit will be a thirteen-month audit.  He also agreed that he will bring pertinent applicable California accounting information to the next meeting.

 

 

 

 

             7.        Report on Status of Bond Bank Account

                        There was a question regarding administrative fees charged by the county.  Dr. Hogue stated that there probably will be a fee for the cost of transactions.  He also noted that the District has set  up separate budget accounts for the bond funds.  Out of the issuance comes the underwriter expense, and bond counsel/advisor payments.

 

             8.        Broadcasting Future Committee Meetings

                        This item was continued for future consideration.  The question of how often the committee should meet is one of the considerations for this decision.  Dr. Hogue pointed out that the major events for the next few months will be land acquisition in June, addition of a Project Management person/firm in July, and addition of architectural firm(s) probably in November or December. The committee moved and approved changing the meeting regularity to once a month for now, with the second meeting day reserved in the event a meeting was required.

            

 

The meeting was adjourned at 7:45 P.M.