BOND OVERSIGHT COMMITTEE Roles, Responsibilities, and Regulations - PowerPoint PPT Presentation

BOND OVERSIGHT COMMITTEE Roles, Responsibilities, and Regulations

BACKGROUND

PROP 39 • November 7, 2000 • Allows for levy of ad valorem taxes on real property to pay debt service on bonds issued for school construction with the approval of 55% of votes cast (rather than 67%) • Contains limits on the amount of indebtedness and requires special oversight in lieu of a 2/3 majority vote

“If a bond measure authorized pursuant to paragraph (3) of subdivision (b) of Section 1 of Article XIIIA of the California Constitution and subdivision (b) of Section 18 of Article XVI of the California Constitution is approved, the governing board of the school district or community college BOND OVERSIGHT shall establish and appoint members to an independent citizens’ oversight California Ed Code 15278(a) committee, pursuant to Section 15282, within 60 days of the date that the governing board enters the election results on its minutes pursuant to section 15274.”

ROLES

COMPOSITION • Shall consist of AT LEAST seven members • (1) Business Organization Representative • (1) Taxpayers Organization Representative • Term of two years • (1) Sr. Citizens Organization Representative • No more than two consecutive terms • (1) Parent Organization Representative • No employees, vendors, contractors, or • (1) Parent of Enrolled Student(s) consultants • (2) Community Members At Large

“The purpose of the citizen’s oversight committee shall be to inform the public concerning the expenditure of bond revenues. The citizens oversight committee shall actively PURPOSE review and report on the proper expenditure of taxpayers’ money for school construction. California Ed Code 152778(b) The citizens’ oversight committee shall advise the public as to whether a school district or community college district is in compliance with the requirements of paragraph (3) of subdivision (b) of Section 1 of Article IIIA of the California Constitution.”

ROLE SUMMARY SHALL NOT • Approve Review Advise • Consent • Authorize • Manage • Deny Inform Report • Solicit • Endorse

RESPONSIBILITIES

COMPLIANCE: OVERSIGHT • Proceeds from the sale of the bonds be used only for the purposes as specified and not for any other purpose including teacher and administrator salaries or other operating expenses • A list of the projects to be funded and certification that safety, class size reduction, and information technology needs were evaluated in developing the list

COMPLIANCE: OVERSIGHT • The committee MAY choose to inspect school facilities and grounds, but is not required to do so • The committee MAY choose to review cost-saving measures, but is not required • The committee MAY choose to review to do so the deferred maintenance plan, but is not required to do so

COMPLIANCE: AUDIT • The school district board conducts an annual, independent performance audit to ensure that the funds have been expended only on the specific projects listed • The school district board conducts an annual, independent financial audit of the proceeds from the sale of the bonds until all of those proceeds have been expended for the school facilities projects The district is required to complete annual independent audits per the California Constitution. The committee MAY choose to review audit information, but is not required to do so.

“All committee proceedings shall be open to the public and notice to the public shall be provided in the same manner as the proceedings of the governing board. The citizens’ committee shall issue COMPLIANCE: REPORTING regular reports on the results of its activities. A report shall be issued at California Ed Code 15280(b) least once a year. Minutes of the proceedings of the citizens’ oversight committee and all documents received and reports issued shall be a matter of public record and be made available on an Internet website maintained by the governing board.”

COMPLIANCE: BROWN ACT Meetings are PUBLIC: Mistakes to AVOID: • Held in an open room • Do not discuss matters not appearing on the agenda • Agenda posted in advance • Follow rules about adding a new item to • Allow members of the public a the agenda after posting reasonable time to address on matters within jurisdiction • Do not hold meetings in private, especially involving a quorum • Save thoughts for public meetings • No “message carrying” (”tell X I said…”) • Members should speak to Trustees on behalf of the BOC only when tasked to do so

PROHIBITED The committee has NO authority to: • Participate in the bond sale process or make decisions regarding structure, timing, and/or insurance • Select or participate in the negotiation or bid process for contractors/consultants • Visit school district sites without prior permission • Contact contractors or consultants without prior permission • Benefit financially from bond related projects

DISTRICT OBLIGATIONS

“The governing board of the district shall, without expending bond funds, provide the citizens’ oversight PROVIDE ASSISTANCE committee with any necessary technical assistance California Ed Code 15280(a) in furtherance of its purpose and sufficient resources to publicize the conclusions of the citizens’ oversight committee.”

NECESSARY TECHNICAL ASSISTANCE At minimum, the board must make provisions to publicize the committee’s reports (e.g. on the district website)

NO BOND FUNDS In providing technical assistance to the committee, the board must incur costs to the district’s operating budget regardless of impact to delivery of educational services to students

TIMELINE

BOARD ACTION MARCH 14, 2019 APRIL 18, 2019 • Certify Election Results • Appoint Committee Members as recommended by the Superintendent • Establish Bond Oversight Committee for after review of applications Prop X, Measure Y and Measure NN project funds RECRUITING

APPLICATIONS • Website will be active Friday, March 15 • English and Spanish Materials • Applications will be returned to the Superintendent’s Office