Audit & Finance Committee 1
July 14,, 2005
Board Committee Meeting Notes
Audit and Finance Committee
Chancellor’s Conference Room
Meeting Date: July 14, 2005
Present:ChairBill Withrow, Trustee Nicky Yuen,Trustee Cy Gulassa (as an observer), Chancellor Elihu Harris, Vice Chancellor Tom Smith,Vice Chancellor Howard Perdue, Dale Scott (Bond Counsel), Chick Adams (Bond Counsel), Mark Harris (Medical Bond Counsel),Heidi White (Vavrinek, Trine & Day External Auditor), and Recording Secretary Kashi Yamashita
Absent:Trustee William B. Riley
Chair Withrow convened the committee meeting at 4:50 p.m.
The following chart shows action/assignments for District administration following review of various items by the Committee:
Respondent / Item / Requester/DueDate
Chancellor Harris
Smith
Perdue
Perdue
Berry-Camara
Ikharo / College Productivity Presentation
Vice Chancellor Perdue presented a 5-year productivity analysis report to Trustees for each of the Peralta’s colleges and the District for the periods between Fall 2000 and Fall 2004, and for Spring 2001 through Spring 2005. This report provided percentages for Fall and Spring semesters excluding cancelled, fee-based, independent study and work experience sections, and revealed the trend of increased productivity between Fall 2000 to Fall 2003 and the decline between Fall 2003 and Spring 2005 across the board.
Vice Chancellor Perdue indicated the trend of productivity declining has been directly related to lower enrollment, increased student fees, and the cancellation of classes that were not in high demand. The Colleges are looking into creating curriculum for the changing current market.
Chair Withrow requested Vice Chancellor Perdue provide a more detailed report capturing all pertinent data with explanations for the next Audit & Finance Committee meeting of September 15, 2005. Vice Chancellor Perdue indicated that Linda Berry Camara, Vice President of Instruction, would be present to assist in the presentation regarding productivity.
Trustee Yuen asked if college classroom needs were discussed in the Board Facilities and Land Use Planning Committee meetings, and if not, that the 5-year facilities planning project should consider coordinating and incorporating increased classroom sizes to accommodate at least 50 students.
Chair Withrow and Trustee Yuen requested that the Facilities Planning Consultant (Altheria Smith of Scala Design) who is preparing the 5-year Construction Plan, attend the next Audit & Finance Committee meeting in September. / Chair Withrow
Yuen
9/15/05
9/15/05
9/15/05
Harris
Smith / Discussion Regarding Medical Benefits Bond
Vice Chancellor Smith introduced external auditor Heidi White of Vavrinek, Trine & Day, co-bond advisor Mark Harris, bond counsel from Jones Hall Law Firm (Chick Adams), and bond counsel from Dale Scott & Company(Dale Scott), to discuss a possible solution for the District’s future unfunded liability and to assist in providing a remedy to the statewide general accounting standard to set-aside funds to offset the increased cost of medical benefits for retirees. Districts and Community Colleges are required to have a set-aside in place by 2006.
Chick Adams and Dale Scott gave a brief description of the course of action to initiate a $250M general obligation bond refunding formedical benefits to cover the future liability. They recommended a new actuarial firm to provide a more accurate report and analysis with projection of costs for the District to handle its debt obligation. An Ex Parte Application would be filed by Jones Hall law firm with the Alameda County Superior Court to publish and post the District’s intent to have bonds sold and issued and that a resolution would be submitted for Board adoption related to the bonds July 26, 2005. A meeting with a new actuarial firm would provide a more accurate study and bond counsel and District administration would interview an investment firm to underwrite the bonds such as Bear, Stearns & Co., Inc.
The purpose of filing the summons is to notify the public and all interested parties and to assure there is no objection for Peralta to pursue this course of action. A judgment would be issued by the court if there is no objection rendered within 30 days. / Withrow
Yuen
Harris
Smith / Inspector General Hiring Process
The Committee briefly discussed the process for paper-screening the pool of applications for the Inspector General position. Vice Chancellor Smith indicated that binders would be prepared with applications and instructions for the Committee and if necessary, a phone conference could be coordinated for the Audit and Finance Committee to discuss the process. Once the Committee decided on dates of availability, Chair Withrow would call Kashi Yamashita to schedule and notify the candidates to interview for the position. / Withrow
Yuen
End of August 2005
The next meeting date is scheduled for Thursday, September 15, 2005, 5:00 p.m. Meeting adjourned at 6:20 p.m.