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

BOND OVERSIGHT

“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

shall establish and appoint members to an independent citizens’ oversight 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.”

California Ed Code 15278(a)

ROLES

COMPOSITION

• Shall consist of AT LEAST seven members
• Term of two years
• No more than two consecutive terms
• No employees, vendors, contractors, or

consultants

• (1) Business Organization Representative
• (1) Taxpayers Organization Representative
• (1) Sr. Citizens Organization Representative
• (1) Parent Organization Representative
• (1) Parent of Enrolled Student(s)
• (2) Community Members At Large

PURPOSE

“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 review and report on the proper expenditure of taxpayers’ money for school construction. 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.”

California Ed Code 152778(b)

SHALL

• Approve
• Consent
• Authorize
• Manage
• Deny
• Solicit
• Endorse

NOT

ROLE SUMMARY

Review Inform Report Advise

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

• ther 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

the deferred maintenance plan, but is not required to do so

• The committee MAY choose to review

cost-saving measures, 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.

COMPLIANCE: REPORTING

“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 regular reports on the results of its

• activities. A report shall be issued at

least once a year.

Minutes of the proceedings of the citizens’

• versight committee and all documents

received and reports issued shall be a matter

• f public record and be made available on an

Internet website maintained by the governing board.”

California Ed Code 15280(b)

COMPLIANCE: BROWN ACT

Meetings are PUBLIC:

• Held in an open room
• Agenda posted in advance
• Allow members of the public a

reasonable time to address on matters within jurisdiction

• Save thoughts for public meetings
• Members should speak to Trustees on

behalf of the BOC only when tasked to do so Mistakes to AVOID:

• Do not discuss matters not appearing on

the agenda

• Follow rules about adding a new item to

the agenda after posting

• Do not hold meetings in private,

especially involving a quorum

• No “message carrying” (”tell X I said…”)

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

PROVIDE ASSISTANCE

“The governing board of the district shall, without expending bond funds,

provide the citizens’ oversight committee with any necessary technical assistance

in furtherance of its purpose and sufficient resources to publicize the conclusions of the citizens’ oversight committee.”

California Ed Code 15280(a)

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

MARCH 14, 2019

• Certify Election Results
• Establish Bond Oversight Committee for

Prop X, Measure Y and Measure NN project funds

• Appoint Committee Members as

recommended by the Superintendent after review of applications

APRIL 18, 2019

BOARD ACTION

RECRUITING

APPLICATIONS

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