GAVILAN JOINT COMMUNITY COLLEGE DISTRICT
Facilities Development and Utilization Committee

Vice President Joe Keeler reviewed the draft District Wide Capital Projects list dated January 14, 2011. He talked about the major capital projects some of which utilize Measure E (ME) funds as the district match. Those projects that have a 50/50 district match are the PE complex, Library/Media remodel, and the new Student Services/Administration building. Joe also reviewed additional requests for projects that need ME funding including HVAC for the current Student Center building (Admissions & Records, Counseling, Financial Aid and Administration), the relocation of GECA, summer moves and the San Martin airport. Joe also discussed the need for board direction concerning the golf course property and San Benito and Morgan Hill /Coyote Valley leases.

Joe reported that the Measure E projects' accounts had been reviewed and several completed projects were closed out. Adjustments were noted when budget figures needed to be increased or decreased as projects neared completion or new information was available. The recommended adjustments include adding: $558,000 for domestic water project, $200,000 for Student Center HVAC, $500,000 for GECA relocation costs, and the addition of $600,000 for the San Martin airport project. Some of the project budgets would be reduced such as removing the district match of 50% plus inflation for a total of $6.6 million for the new construction of the Student Services/Administration building and reducing the inflation amount from the Library/TV Studio project by $1.6 million. The administration is recommending that the net amount from these adjustments be identified in a separate account for use in completing Measure E projects. After discussion it was determined that Program Contingency would be the appropriate account.

Trustee Breen made a motion to recommend to the Board of Trustees that the ME budget adjustments be approved and the net change of $7,052,745 be placed in Program Contingency. MSC (Breen/Dover) 3-ayes. Student trustee-aye.

Joe reviewed a "Cash Flow Analysis" chart of the Measure E Program. In addition, Joe reviewed a letter dated September 1, 2009 from David Casnocha, District Bond Counsel, regarding the rules that govern the district's issuance of ME Bonds. The projections indicate a cash flow problem this fall. Approximately $3 - $4 million is needed to continue the Social Science remodel and other ME projects. From the ME total of $108 million, $28 million remain and can be cashed out. Joe introduced Dale Scott of Dale Scott & Company who discussed financing options for the $28 million. Dale provided an overview of the Gavilan JCCD assessed valuation history and discussed four alternative financing structures for issuing general obligation bonds. The options include: Level Debt, Interest Only, Capital Appreciation Bonds, and Two Series Five Years Apart. The Trustees reviewed each option and considered which would meet the district's needs and also provide the lowest cost to taxpayers. With that in mind, Trustee Breen made a motion to recommend to the Board of Trustees to finance $28 million using Alternative #1, Level Debt, and that it be structured to keep the rate per $100,000 of valuation under $25. MS (Breen/Glines) 3-ayes. Student trustee-aye.