Apr 30, 2026 Bond Oversight Committee

THANK YOU FOR SHARING THAT.

ANY OTHERS THAT WERE THERE? I JUST WANTED TO ADD, UM, ONE OF THE THINGS I THOUGHT WAS REALLY SPECIAL WAS THE COMPLETE FULL CIRCLE MOMENT.

HAVING JOHN WILLIAMS BE AN ALUMNI OF NORTH HOLLYWOOD HIGH SCHOOL TO COME AND SEE STUDENTS NOW PLAYING HIS MUSIC AND JUST RELIVING HIS LEGACY.

IT WAS AMAZING.

ONE OF OUR PARENTS AT OUR SCHOOL IS A NORTH HOLLYWOOD ALUM, AND I GOT TO SHARE THE VIDEOS AND PICTURES THAT I TOOK WITH HER.

IT WAS A TRULY WONDERFUL EXPERIENCE.

AND I KNOW NOT EVERY RIBBON CUTTING IS GONNA BE THAT EPIC, BUT IT WAS DEFINITELY ONE TO HAVE GONE TO.

IT PROVES THAT, YOU KNOW, YOU GO TO A MALL, YOU NEVER KNOW WHEN SOMETHING GREAT LIKE THAT'S GONNA HAPPEN.

THANK YOU GUYS FOR SHARING, UM, YOUR EXPERIENCES.

UM, IT GOES TO SHOW THE VALUE OF WHAT WE'RE DOING AND, YOU KNOW, WHAT THE PUBLIC IS DOING WITH, UH, THEIR INVESTMENTS.

UM, OKAY, WE'LL GET TO THE AGENDA.

UH, ITEM NUMBER ONE IS OUR TYPICAL, UH, PUBLIC COMMENT.

UM, I'M GONNA GO AHEAD AND JUST READ THIS FIRST PART.

UH, AS WE KNOW RIGHT NOW, THERE MAY NOT BE ANY SPEAKERS, BUT IF THERE ARE SPEAKERS WILL BE HEARD, UH, AS AGENDA ITEM NUMBER ONE, AND ALL SPEAKERS WILL HAVE UP TO THREE MINUTES.

IF YOU WISH TO ADDRESS MORE THAN ONE AGENDA ITEM, YOU'LL BE PROVIDED SIX MINUTES TOTAL.

AND, AND ARE THERE ANY SPEAKERS IN THIS BOARDROOM THIS MORNING WHO WISH TO ADDRESS THE COMMITTEE? NO.

SO WE UNDERSTAND THERE ARE NOT AND THERE ARE NONE ONLINE.

TWO IS OUR CONSENT CALENDAR.

ITEM NUMBER

[2. Consent Calendar]

UM, THIS CONSISTS OF OUR FEBRUARY 26TH MEETING MINUTES AND THE BOC QUARTERLY REPORT FOR JANUARY, UH, THROUGH MARCH 20, 26.

DO ANY MEMBERS HAVE ANY QUESTIONS? UM, WITH THAT, CAN I HAVE A MOTION MOVE THAT WE APPROVE THE MINUTES? I MEMBER CAMPBELL SECOND.

I'LL SECOND.

SECOND.

WHO DID THAT BACK HERE? OH, HI.

THANK YOU, PERONE.

I'VE GOT A LIST HERE.

I'M TRYING TO FIND MY OKAY WITH THAT.

MR. POP.

JOY, CAN YOU PLEASE CONDUCT THE ROLL CALL? VOTE? YES.

THANK YOU, MR. CHAIR MEMBERS, UH, BECAUSE WE HAVE A MEMBER PARTICIPATING REMOTELY TODAY, WE'LL BE DOING ROLL CALL VOTES FOR ALL THE ACTION ITEMS. SO ON THIS FIRST ITEM, THE CONSENT CALENDAR, MS. BELL.

THANK YOU, MS. BETHS.

UH, MS. KAISER IS ABSENT.

MS LA AYE.

THANK YOU, MS. LURCH MUELLER.

THANK YOU MR. PETERSON.

MS. PERONE? AYE.

THANK YOU MR. SULLIVAN.

MR. MCFARLAND? AYE.

MR. PANSKY, I THINK I HAVE TO ABSTAIN SINCE I WASN'T HERE.

I COUNT 12 AFFIRMATIVE VOTES.

THE ITEM IS THE ITEMS ARE ADOPTED.

UM, IS A STANDING ITEM HERE.

ITEM NUMBER THREE,

[3. BOC Charter and MOU Overview (Information Only) (Part 1 of 2)]

THIS IS OUR BOC PROPOSED REVISIONS TO THE MOU.

[00:15:01]

THIS WILL BE A PRESENTATION THAT WILL BE INFORMATION ONLY.

AND WITH THAT, I WOULD LIKE TO WELCOME THE BOC INDEPENDENT LEGAL COUNSEL, JOE BUCKMAN, TO MAKE A PRESENTATION REGARDING THE BOC CHARTER AND THE MOU.

HEY, HOW YOU DOING? THANK YOU.

UH, CHAIR HAMNER AND GOOD MORNING.

BOC MEMBERS.

UM, THERE WAS A BREAKING NEWS ITEM ON THE, THERE IS.

DID, I DIDN'T KNOW.

I DIDN'T WANNA SPOIL YOUR, I'M, I'M READY TO CHUCK AND JIVE WITH IT.

GO AHEAD AND YEAH, I APOLOGIZE.

AS I WALKED IN, I RECEIVED A CALL, UH, EN ROUTE.

UM, AS I WALKED IN, I WAS, I JUST SHARED WITH MR. POPE JOY.

UH, I DID RECEIVE A CALL FROM, UH, MR. JAIME TORRANCE FROM THE DISTRICT OFFICE, SUPERINTENDENT'S OFFICE, AND, UM, INDICATING THAT THEY HAD IN FACT, UM, SUBMITTED THEIR FINAL COMMENTS TO OUR MOU.

UM, AS A LOT OF PEOPLE HERE ARE AWARE, THIS HAS, UH, BEEN A, A PROCESS OF A LONG PROCESS OF TIME, BUT, UM, WE DO HAVE IN OUR HAND, UM, AND I SHARED WITH OUR TASK FORCE, UH, I HAVEN'T EVEN LOOKED AT IT.

I JUST LITERALLY FORWARDED WHAT I RECEIVED TO YOU.

SO WE HAVEN'T HAD A CHANCE TO LOOK AT IT YET.

CORRECT.

SO THERE MAY BE SOME MOOD ISSUES THAT MAY BE DISCUSSED, I, OR MAYBE EVEN MORE DYNAMIC ISSUES.

SO, BUT FRANKLY, AT THIS POINT WE, WE DON'T KNOW.

WE, WE EXACTLY.

WE HAVE THE EMAIL.

WE DON'T KNOW WHAT'S, AND IT'S POSSIBLE THAT MR. TORRENS, UH, WHO IS NOT IN THE BUILDING YET THIS MORNING, MAY BE ABLE TO MAKE AN APPEARANCE BEFORE WE FINISH TODAY.

ALRIGHT, WELL, THANK YOU.

BB NEEDED TWO THIRDS OF THE VOTE TO PASS, BUT IT FAILED BECAUSE IT ONLY RECEIVED 65.51% OF THE VOTE.

AND, UH, GOOD MORNING AGAIN.

BFC MEMBERS.

SO THE PRESENTATION, UH, I HAVE PREPARED, AS DIRECTED AT THE HISTORY OF THIS COMMITTEE AND THE ROLE, THE CHARTER AND MEMORANDUM OF UNDERSTANDING OR SIMPLY THE MOU, THAT THAT'S BETWEEN THE COMMITTEE AND THE DISTRICT HAS PLAYED IN THAT HISTORY.

THAT HISTORY BEGINS IN 1997 AND CONTINUES RIGHT UP TO TODAY, A PERIOD OF 29 YEARS.

MY PRESENTATION WILL NOT BE THAT LONG, BUT HOPEFULLY IN 15 MINUTES OR SO, I WILL BE ABLE TO GIVE YOU THE CURRENT BOC MEMBERS A FEELING FOR THE TIME, EFFORT, AND DEDICATION THAT MANY, MANY PEOPLE PUT INTO CRAFTING AND NEGOTIATING THE CURRENT MOU.

THE PURPOSE OF THIS PRESENTATION AND WHY IT IS BEING MADE AT THIS TIME IS TO ASSIST THE COMMITTEE, THE DISTRICT, AND THE PUBLIC TO BETTER UNDERSTAND WHY CURRENT MOU PROVISIONS WERE ADOPTED.

UM, AS CHAIR HAMNER JUST STATED, THE DISTRICT HAS, JUST THIS MORNING PROVIDED A COMPLETE SET OF COMMENTS TO THE BO C'S PROVO PROPOSED REVISIONS TO THE MOU THAT WERE FORMALLY COMMUNICATED LAST AUGUST.

UM, I HAVE NOT HAD A CHANCE OR THE OPPORTUNITY TO REVIEW THE NEW COMMENTS, BUT THE PARTIAL RESPONSE THAT WE HAD PREVIOUSLY RECEIVED, UM, INDICATES TO ME THAT AN UNDERSTANDING OF THE HISTORY OF THE MOU AND ITS PROVISIONS IS MISSING ON THE DISTRICT'S PART.

I DO NOT SAY THIS TO VILIFY THE DISTRICT IN ANY WAY.

INSTITUTIONAL KNOWLEDGE IS LOST AFTER THE PASSING OF ENOUGH TIME, AND A LOT OF TIME HAS PASSED SINCE THIS INSTITUTION WAS CREATED.

I FIND IT REMARKABLE, FRANKLY, THAT AS ME WHO FIRST ADDRESSED THIS COMMITTEE 24 YEARS AGO, IS NOW THE ONE TO GIVE A PRESENTATION ON ITS HISTORY.

TO BEGIN, I WOULD LIKE TO NOTE THAT IN ITS 29 YEAR HISTORY, THE BOC HAS PROVIDED OVERSIGHT FOR THE FOLLOWING BOND PROGRAMS THAT WERE PASSED BY THE VOTERS OF L-A-U-S-D PROPOSITION.

BB PASSED IN 1997 FOR WAS FOR $2.4 BILLION.

MEASURE K IN 2002, 3.35 BILLION MEASURE R IN 2004, 3.87 BILLION MEASURE Y IN 2005, 3.985 BILLION.

MEASURE Q IN 2008, 7 BILLION MEASURE RR IN 2020 7 BILLION AND MEASURE US IN 2024 9 BILLION IN TOTAL, JUST OVER $36.6 BILLION IN BONDS.

AND THAT TOTAL DOES NOT INCLUDE FUNDS THAT WERE OBTAINED FROM OUTSIDE SOURCES, BUT WHICH WERE CONDITIONED ON THE DISTRICT HAVING BOND FUNDS AVAILABLE TO MATCH THOSE OUTSIDE CONTRIBUTIONS.

AND IN THE CASE OF EVERY ONE OF THE BOND MEASURES I JUST LISTED, THE EXISTENCE OF THIS COMMITTEE TO OVERSEE THE DISTRICT'S USE OF BOND FUNDS WAS POINTED TO BY THE DISTRICT TO SUPPORT ITS CASE TO THE VOTERS TO APPROVE THE BOND MEASURES ADVERTISING.

THE BO THE OVERSIGHT COMMITTEE AND ELECTIONS BEGAN EVEN BEFORE THE COMMITTEE WAS CREATED IN 1997.

IN 1996, THE DISTRICT PUT A BOND ALSO CALLED BB ON THE NOVEMBER, 1996 BALLOT.

IT WAS THE FIRST DISTRICT BOND ELECTION.

SINCE THE 1960S, A SMALL OVERSIGHT COMMITTEE TO BE CREATED CONSISTING OF JUST FIVE MEMBERS, WAS PROMOTED BY THE DISTRICT TO ENHANCE THE APPEAL TO THE VOTERS.

THAT FIRST

[00:20:01]

A DISAPPOINTING CLOSE LOSS.

BUT THE OVERSIGHT COMMITTEE CONCEPT HAD PROVED ITS VALUE.

SO, UM, NOW I CAN GET TO MY FANCY POWERPOINT.

UM, ALL RIGHT, THANK YOU.

AND SO, WITH ANOTHER ELECTION, UH, SCHEDULED FOR APRIL 7TH, 1997, ON JANUARY 27TH, 1997, THE L-A-U-S-D BOARD OF EDUCATION ADOPTED A REPORT ENTITLED ESTABLISHMENT OF THE BLUE RIBBON CITIZENS OVERSIGHT COMMITTEE FOR APRIL, 1997.

SCHOOL REPAIR BONDS.

THE BOARD REPORT RECOMMENDED THAT THE BOARD ESTABLISH AN OVERSIGHT COMMITTEE FOR THE EXPENDITURE PROCEEDS FROM THE APRIL, 1997 SCHOOL REPAIR BONDS.

SHOULD THE BOND MEASURE PASS, THE RECOMMENDATION WAS ADOPTED.

AND ADDITIONAL PROVISIONS FOR THE ENVISION BB COMMITTEE WERE ADOPTED ON APRIL 6TH, 1997.

THE DAY BEFORE THE ELECTION, THE ORIGINAL BB COMMITTEE WAS ORIGINALLY COMPRISED OF 11 APPOINTEES DETERMINED BY THE FOLLOWING, THE AMERICAN INSTITUTE OF ARCHITECTS LOS ANGELES CHAPTER, THE ASSOCIATED GENERAL CONTRACTORS OF CALIFORNIA LOS ANGELES DISTRICT, THE 10TH DISTRICT, PTA, THE 31ST DISTRICT, PTA, THE CONTROLLER OF THE CITY OF LOS ANGELES, THE MAYOR OF THE CITY OF LOS ANGELES, THE COUNTY OF LOS ANGELES AUDITOR CONTROLLER, OR APPROPRIATE DESIGNEE, THE LOS ANGELES AREA CHAMBER OF COMMERCE, THE LOS ANGELES COUNTY FEDERATION OF LABOR, THE STRUCTURAL ENGINEERS ASSOCIATION FOR SOUTHERN CALIFORNIA, AND THE HOWARD JARVIS TAXPAYERS ASSOCIATION.

THE 1997 REPORT FROM THE BOARD, UM, CHARGED THE BB COMMITTEE WITH THE FOLLOWING RESPONSIBILITIES AMONG OTHERS, RECOMMENDING IMPROVEMENTS TO THE DISTRICT'S PROCESSES AND PROCEDURES AS THEY RELATE TO SCHEDULING, PLANNING, AND COMPLETION OF PROJECTS, REPORTING IMMEDIATELY TO THE BOARD AND TO THE PUBLIC.

ANY SUBSTANTIAL EXPENDITURE OF BOND PROCEEDS IN CONFLICT WITH THE PURPOSES APPROVED BY THE BOARD AND THE CONTRACTS ESTABLISHED WITH THE SCHOOLS, THE CONTRACTS ESTABLISHED WITH THE SCHOOLS.

AND THE BOARD REPORT FURTHER RECOMMENDED THAT THE SUPERINTENDENT ESTABLISH PROCEDURES FOR THE TIMELY SUBMISSION OF INFORMATION TO THE BB COMMITTEE TO FACILITATE THE COMMITTEE'S REVIEW OF LOCAL BOND EXPENDITURES.

AND AS WE KNOW NOW, ON APRIL SE 8, 19 97, THE VOTERS PASSED BB PROPOSITION BB A $2.4 BILLION SCHOOL REPAIR AND CONSTRUCTION BOND.

FIRST MEETING OF THIS COMMITTEE, OR ITS PREDECESSOR, OCCURRED ON APRIL 18TH, 1997.

THE BOARD REPORT AND ITS PROVISIONS, UH, FROM JANUARY AND APRIL OF 1997, WERE THE ORIGINAL ORGANIZATIONAL DOCUMENTS AND GUIDELINES FOR THE OVERSIGHT COMMITTEE.

AND THESE GUIDELINES CAME INTO PLAY EARLY, UH, VERY EARLY WHEN THERE WAS A LAWSUIT, UH, THAT INVOLVED BOND PROCEEDS BEING SPENT FOR THE BELMONT LEARNING COMPLEX, WHICH LATER BECAME VISTA HERMOSA LEARNING COMP CENTER, AND IS NOW THE EDWARD R. ROY BALL LEARNING CENTER.

UH, JUST TWO BLOCKS FROM HERE.

IN THAT, IN THAT LITIGATION, JUDGE WAYNE ISSUED A RULING ON A PRELIMINARY INJUNCTION THAT INCLUDED THE FOLLOWING.

FINDING.

IT IS SELF-EVIDENT THAT THE BLUE RIBBON COMMITTEE CAN CARRY OUT ITS RESPONSIBILITIES ONLY IF MAJOR PROJECTS SUCH AS THE BELMONT LEARNING CENTER ARE PRESENTED TO THE COMMITTEE BEFORE THE BOARD COMMITS ITSELF TO A COURSE OF ACTION.

IF A PROJECT OR ANY COMPONENT THEREOF WILL RESULT IN AN IMPERMISSIBLE SUBSTANTIAL EXPENDITURE OF BOND PROCEEDS, IT SHOULD BE DISCOVERED AT AN EARLY STAGE.

OTHERWISE, AN UNAUTHORIZED USE OF THESE FUNDS WILL HAVE ALREADY BEEN COMMITTED AND AT LEAST PARTIALLY SPENT CONSISTS CONSTITUTING AN UNNECESSARY TAXPAYERS EXPENSE.

THE LANGUAGE OF THIS RULING BECAME A TOUCHSTONE FOR HOW THE BB COMMITTEE WORKED WITH THE DISTRICT.

EXCUSE ME A SECOND.

AND SO, BETWEEN 1997 AND 2002, GOING FORWARD, THE COMPOSITION OF THE BB COMMITTEE WAS CHANGED AS FOLLOWS, THE AMERICAN LUNG ASSOCIATION REPLACED THE STRUCTURAL ENGINEERS ASSOCIATION FOR SOUTHERN CALIFORNIA, AND THE PLANNING AND CONSERVATION LEAGUE REPLACED THE HOWARD JARVIS TAXPAYERS ASSOCIATION.

ANOTHER INTERESTING EVENT OF NOTE OCCURRED IN

[00:25:01]

2001 WHEN THE LITTLE HOOVER COMMISSION PROVIDED A LETTER TO THE DISTRICT CONCERNING AN ANALYSIS OF THE DISTRICT'S FACILITY RELATED PROJECTS, WHICH INCLUDED A DISCUSSION OF THE BB COMMITTEE IN ITS OCTOBER 25TH, 2001.

LETTER AMONG THE LITTLE HOOVER COMMISSION'S OBSERVATIONS, RECOMMENDATIONS REGARDING THE BB COMMITTEE WERE THE FOLLOWING.

AND I QUOTE, A CLEAR TEST FOR THE DISTRICT SHOULD BE THE BB COMMITTEE.

IF ITS MEMBERS ARE NOT PERSUADED, THE INFORMATION IS ACCURATE AND COMPLETE.

WHY SHOULD OTHER CIVIC LEADERS AND THE PUBLIC BE PERSUADED? AND THE OVERSIGHT COMMITTEE SHOULD NEVER BE REQUIRED TO SUBMIT A PUBLIC RECORDS ACT, REQUEST TO RECEIVE INFORMATION, AND DISTRICT OFFICIALS SHOULD BE ASHAMED IF THAT EVER OCCURS.

AND LAST QUOTE, THE OVERSIGHT COMMITTEE NEEDS TO DO JUST THAT, PROVIDE OVERSIGHT, BUT THE COMMITTEE ALSO CAN BE AN ASSET AND AN ALLY IN UNDERSTANDING AND SOLVING THE THOUSANDS OF PROBLEMS THAT WILL EMERGE AS THE DISTRICT'S CONSTRUCTION PROGRAM PICKS UP SPEED.

THE DISTRICT SHOULD NOT VIEW THE COMMITTEE AS STAKEHOLDERS WHO NEED TO BUY OFF ON DISTRICT DECISIONS, BUT AS PROBLEM SOLVERS WHO CAN HELP L-A-U-S-D MEET THE NEEDS OF CHILDREN, PARENTS, NEIGHBORS, BUSINESS, CIVIC AND POLITICAL LEADERS.

THE OCTOBER 25TH, 2001 LITTLE HOOVER COMMISSION LETTER HAD A PROFOUND IMPACT ON BOTH THE BB COMMITTEE AND THE DISTRICT.

AS THE PLANNING FOR ANOTHER BOND MEASURE TOOK SHAPE IN NOVEMBER, 2000, PROPOSITION 3 39 HAD PASSED STATEWIDE, ALLOWING FOR SCHOOL BOND MEASURES TO PASS BY 55% VOTE RATHER THAN 67%.

THE PASSAGE OF PROPOSITION 39 CARRIED WITH IT ADOPTION OF EDUCATION CODE SECTIONS 1 5 2 7 8 TO 1 5 2 8 2, WHICH ESTABLISHED PARAMETERS FOR BOND OVERSIGHT COMMITTEES ON A STATEWIDE BASIS, WHEN THE 55% MARGIN FOR SCHOOL BONDS IS UTILIZED TO PREPARE FOR THE BB COMMITTEE TO BE THE STATUTORY OVERSIGHT COMMITTEE, AND TO GARNER THE COMMITTEE'S SUPPORT FOR THE NEW BOND MEASURE.

SEVERAL THINGS OCCURRED IN EARLY 2002.

FIRST WORK WAS BEGUN ON A CHARTER AND MEMORANDUM OF UNDERSTANDING THAT WOULD SOLIDIFY THE DISTRICT'S COMMITMENT TO THE BB COMMITTEE.

NEXT TO ASSIST WITH THIS WORK.

INDEPENDENT LEGAL COUNSEL FOR THE BB COMMITTEE WAS RECRUITED IN APRIL, 2002 TO JOIN THE OVERSIGHT CONSULTANT WHO HAD PREVIOUSLY BEEN RETAINED TO ADVISE THE COMMITTEE THAT INDEPENDENT LEGAL COUNSEL WAS ME.

AND THE OVERSIGHT CONSULTANT WAS THOMAS A RUBIN.

AND IT'S APRIL, 2027, HAPPY ANNIVERSARY.

THE FIRST MOU WAS NEGOTIATED AND ADOPTED, AFFECTED JULY 9TH, 2002.

AND IN NOVEMBER, 2002, MEASURE K, THE DISTRICT'S FIRST 55% MARGIN BOND MEASURE PASSED.

THE FIRST MOU ALSO CHANGED THE NAME OF THE BB COMMITTEE TO THE L-A-U-S-D SCHOOL CONSTRUCTION BOND CITIZENS OVERSIGHT COMMITTEE.

AND THE SHORT NAME BOC WAS ADOPTED IN PLACE OF THE BB COMMITTEE TO MEET THE STATUTORY REQUIREMENTS FOR CONSTITUTING THE OVERSIGHT COMMITTEE FOR MEASURE K.

NEW MEMBERS WERE ADDED TO THE COMMITTEE, INCREASING THE NUMBER FROM 11 TO 15.

AND THE ADDITIONS AT THAT TIME WERE A PARENT OR GUARDIAN OF A CHILD ENROLLED IN THE DISTRICT, A PARENT OR GUARDIAN OF A CHILD ENROLLED IN THE DISTRICT, AND WHO IS ACTIVE IN A PARENT TEACHER ORGANIZATION SUCH AS THE PTSA, A MEMBER ACTIVE IN A BONAFIDE TAXPAYERS ORGANIZATION, AND A MEMBER ACTIVE IN A SENIOR CITIZENS ORGANIZATION TO PRESERVE THE PARTICIPATION OF THE EXISTING ORGANIZATIONS AND OFFICIALS IN SENDING MEMBERS TO THE BOC, THE DISTRICT AGREED THAT THE BOARD WOULD APPOINT THE NOMINEES OF THE ORGANIZATIONS AND OFFICIALS.

THE LANGUAGE IN THE MOU BEGINNING IN 2002 IS QUOTE, THE BOARD SHALL APPOINT ONE MEMBER NOMINATED BY THAT ENTITY OR, UH, OFFICIAL.

THE ADOPTION OF THIS PROCEDURE WAS A COMPROMISE TO ENCOURAGE THE PARTICIPATION OF OUTSIDE ORGANIZATIONS AND OFFICIALS, AS WELL AS TO PERMIT THE DISTRICT TO PUBLICIZE IN THE BOND MEASURE CAMPAIGNS, BEGINNING WITH MEASURE K, HOW THE BOC WAS TRULY INDEPENDENT OF THE DISTRICT AND THE BOARD.

I'M A WITNESS TO THE FACT THAT THE SHALL APPOINT ONE MEMBER NOMINATED BY LANGUAGE WAS CONSCIOUSLY AND DELIBERATELY CHOSEN FOR THESE REASONS, THE SHALL

[00:30:01]

APPOINT ONE MEMBER NOMINATED BY LANGUAGE HAS LARGELY BEEN FOLLOWED IN THE INTERVENING YEARS ON ONLY ONE OCCASION THAT I CAN RECALL WAS THE LANGUAGE CHALLENGED BY A BOARD MEMBER.

AND THEY WERE ESSENTIALLY OVERRULED BY THE OTHER BOARD MEMBERS.

THE MOU WAS FIRST AMENDED IN 2007 TO REFLECT HOW THE DISTRICT AND THE BOC HAD BEEN OPERATING TOGETHER.

AND AMONG THE PROVISIONS ADDED AT THAT TIME, WERE, UH, THE OFFICE OF INSPECTOR GENERAL BECAME A CO-SIGNER.

THE PLANNING AND CONSERVATION LEAGUE MEMBER WAS REDEFINED TO A NOMINEE OF A BONAFIDE NONPROFIT ENVIRONMENTAL, ENVIRONMENTAL JUSTICE OR CIVIL RIGHTS GROUP.

A SALARY SURVEY REQUIREMENT FACILITIES MANAGERS WAS ADDED, AND AN INDEPENDENT ANNUAL REVIEW OF THE BO C'S PROCESSES WAS INCLUDED.

AND BOC STAFF WERE DEFINED TO INCLUDE A DIRECTOR AND ADMINISTRATOR.

ALL RIGHT, THE MEMO U WAS NEXT AMENDED IN 2011.

THE IMPETUS FOR THIS AMENDMENT WAS PRINCIPALLY TO MAKE CHANGES TO THE COMPOSITION OF THE BOC AND THE CHANGES INCLUDED.

THE BONAFIDE TAXPAYERS ORGANIZATION WAS CHANGED TO THE CAL TAX REFORM ASSOCIATION.

ONE OF THE PARENT GUARDIAN POSITIONS WAS CHANGED TO A MEMBER OF THE CALIFORNIA CHARTER SCHOOL ASSOCIATION OR CCSA, PREFERABLY TO BE A PARENT OR GUARDIAN OF A CHARTER SCHOOL STUDENT AND A MEMBER.

AND ALSO ADDED A MEMBER ACTIVE IN AN EARLY CHILDHOOD EDUCATION ORGANIZATION, REPLACED THE NOMINEE OF A BONAFIDE NONPROFIT ENVIRONMENTAL ENVI, ENVIRONMENTAL ENVIRONMENTAL JUSTICE, OR CIVIL RIGHTS GROUP.

2011, MOU AMENDMENT KEPT THE PROVISION FOR THE ANNUAL REVIEW OF THE BO C'S PROCESSES, BUT ADDED A PROVISION TO REVIEW THE MOU ITSELF EVERY FIVE YEARS.

AND THE MOU IS NEXT AND LAST TIME AMENDED IN 2017.

AND THAT IS OUR CURRENT MOU.

THE IMPETUS FOR THIS AMENDMENT WAS THAT AN INDEPENDENT REVIEW OF THE BO C'S PROCESSES, THE FIRST ONE EVER DONE, HAD RECENTLY OCCURRED.

CHANGES OF NOTE THAT WERE MADE INCLUDED THE A A RP WAS SPECIFIED AS THE NOMINATING SENIOR CITIZEN ORGANIZATION, THE CCSA MEMBER LANGUAGE PREFERRING A PARENT OR GUARDIAN OF A STUDENT WAS REMOVED.

A PROCEDURE FOR REPLACING A NOMINATING ENTITY WAS ADOPTED.

THE INDEPENDENT ANNUAL REVIEW OF BOC PROCESSES WAS CHANGED TO OCCUR EVERY FIVE YEARS.

AND THE REVIEW OF THE MOU HAS CHANGED TO FOLLOW THE REVIEW OF THE BOC PROCESSES, WHICH BRINGS US TO THE PRESENT ON OCTOBER 4TH, 2022, AN INDEPENDENT REVIEW OF THE BO C'S PROCESSES AS ENVISIONED BY THE MOU WAS PUBLISHED.

AND THE REVIEW OF THE MOU THAT IS SUPPOSED TO FOLLOW PER THE TERMS OF THE MOU IS WHAT WE HAVE BEEN ENGAGED IN FOR THE LAST THREE AND A HALF YEARS.

THAT CONCLUDES MY POWERPOINT .

UM, AND SO JUST TO CONCLUDE, ANY ANY REMARKS THAT I WANT TO MAKE IS THAT, AS I REVIEWED THE, THE HISTORY AND, AND WENT THROUGH ALL THIS, IT WAS, IT BROUGHT BACK A LOT OF MEMORIES, BUT SOME OF THOSE THINGS THAT HAPPENED VERY EARLY ON REALLY RING TRUE TODAY.

AND ESPECIALLY THE LITTLE HOOVER COMMISSION LETTER.

I DON'T KNOW HOW MUCH FAMILIAR IS THERE IS FOR THE LITTLE HOOVER COMMISSION, BUT IT IS AN AMAZING, UH, INSTITUTION.

AND THEY KEYED INTO HOW THE BOC COULD BE A PARTNER AND AN ALLY AND A COLLABORATOR WITH THE DISTRICT.

AND I, I FEAR THAT SENTIMENT WHICH WAS INCORPORATED INTO THE LANGUAGE OF THE MOU EARLY ON, UM, MAYBE FALLING BY THE WAYSIDE AND OR HAS BEEN NEGLECTED, THAT SPIRIT.

AND SO FOR MYSELF, FOR MY OWN PART, I OFFER, UM, AS WE GO THROUGH THE, THE FINAL STAGES OF THE WHATEVER THIS MOU NEGOTIATION IS GONNA BE, THAT I OFFER MY, MY SERVICES TO BRIEF AND TO, UH, DISCUSS WITH ALL THE BOC MEMBERS, UH, WHAT'S GOING ON OR WHAT HAPPENED IN THE PAST.

I ALSO OFFER MYSELF TO THE DISTRICT AND TO THE DISTRICT PERSONNEL.

IT DOESN'T HAVE TO BE, UM, WELL ANYWAY, I HAVE KNOWLEDGE.

I MAYBE HAVE, UH, PERSPECTIVES THAT OTHERS DON'T HAVE AT THIS TIME, AFTER SO MANY YEARS.

AND I OFFER THAT IN THE SPIRIT OF COLLABORATION AND FINDING, UM, GOOD WAYS FORWARD.

THAT'S THE END OF MY PRESENTATION.

THANK YOU, JOE, VERY MUCH.

UM, BEFORE WE ASK IF THERE'S ANY OTHER QUESTIONS, UM, THE QUICK

[00:35:01]

COMMENT, YOU KNOW, THE THANK YOU FOR THE ENLIGHTENMENT.

THANK YOU FOR THE UNDERSTANDING OF THE HISTORY AND THE EXPERIENCES THAT DEVELOP THIS LIVING DOCUMENT THAT WE HAVE.

UM, I THINK IT'S, IT'S, IT'S CRITICALLY IMPORTANT TO RECOGNIZE THAT, UH, CONSTRUCTION INDUSTRY AND LIFE IS NOT GETTING SIMPLER.

IT'S GETTING MORE COMPLEX.

SO THE PURPOSES OF THIS AND THE NUMBER OF BONDS THAT PUBLIC HAS OBVIOUSLY TRUSTED US AND ENTRUSTED US.

AND THIS BOARD, THIS BODY IS A DYNAMIC BODY OF PEOPLE THAT COME AND GO, UM, WITH THE SAME MISSION, UM, TO ASSIST AND BE THE TEAMMATE.

THAT'S THE KEY TO THIS IS TO UNDERSTAND THE INTENT.

AND THAT'S YOUR HISTORY IS, YOU KNOW, WHAT THE INTENT WAS, YOU KNOW, WHAT THE DIALOGUE WAS THAT LED TO THE FINAL, YOU KNOW, PROVISIONS THAT ARE NOW IN PRINT.

AND, YOU KNOW, THAT GETS LOST WHEN NEW PEOPLE COME IN.

AND THAT'S UNFORTUNATE.

SO YOUR HISTORY OF THAT IS CRITICAL TO UNDERSTAND, UH, WHY WE HAVE A DOCUMENT WE HAVE, WHICH IS A LITTLE DIFFERENT THAN MAYBE WITH THE BOARD OF EDUCATION AND THE STATE BOARD OF EDUCATION.

WE MAY PROVIDE FOR OTHER BONDS IN OTHER DISTRICTS, BUT THE UNIQUE DISTRICT THAT WE HAVE AND SO FORTH.

THIS MOU IS SPECIFIC, AND YOU PAINTED IT CLEARLY, UH, WITH STILL EVEN MORE POTENTIAL, UM, EXPERIENCES AND SO FORTH.

UM, AND WITH THAT, THANK YOU FOR THAT, THAT TIMING, HOPEFULLY WITH THE DOCUMENT WE RECEIVED TODAY, LITERALLY AS THE MEETING STARTED, UM, AND THE POTENTIAL THAT, UH, MR. TORRENS MAY, UH, COME BY, UM, TO PROVIDE JUST A, YOU KNOW, SOME SUPPORT THAT THIS IS GONNA MOVE FORWARD WITH OUR TASK FORCE AND THEIR EXECUTIVE COMMITTEE.

WE'LL KEEP THIS IN MIND AS WE UNDERSTAND WHAT THE, THIS DOCUMENT MEANS.

SO WITH THAT, I DON'T KNOW IF THERE'S ANY OTHER COMMENTS FROM OTHER MR. PANSKY, THE SENIOR MAN.

WELL, YOU KNOW, IT'S INTERESTING LISTENING TO THE HISTORY, BECAUSE I'VE BEEN ON THIS COMMITTEE NOW GOING ON MY 11TH YEAR, UH, WITH ONE YEAR BREAK.

AND THAT FIRST, I, I WANT TO COMMEND YOU, JOE, AND, AND THANK YOU FOR YOUR EFFORT AND BEING HERE EVERY SINGLE MEETING AND, AND HELPING TO MONITOR ALL THIS.

YOU KNOW, WHEN TOM WAS HERE, I REMEMBER WHEN I FIRST JOINED THIS COMMITTEE, UH, AND I WAS SCARED.

YOU KNOW, I'M A MARKETING GUY.

I DON'T KNOW ANYTHING ABOUT ARCHITECTURE AND LIMITED KNOWLEDGE ABOUT TECHNOLOGY.

AND I SAID, CAN I ASK QUESTIONS LIKE NAIVE QUESTIONS? BECAUSE I WANNA LEARN AND I WANT TO UNDERSTAND.

AND I THINK THAT'S ONE THING I I DON'T KNOW EVERY NEW MEMBER THAT'S HERE SINCE I'VE BEEN ABSENT.

BUT THAT SENSE OF CURIOSITY IS REALLY IMPORTANT BECAUSE IF YOU ARE THINKING IT AND YOU'RE CONFUSED OR YOU DON'T UNDERSTAND SOMETHING, ASKING QUESTIONS ISN'T A BAD THING.

IT'S YOU'RE LEARNING AND YOU'RE HELPING OTHERS BECAUSE THIS IS TELEVISED TO LEARN AND UNDERSTAND WHAT'S GOING ON.

UH, I CAN'T BELIEVE HAVING BEEN ABSENT FOR SO LONG THAT THE MOU STILL HASN'T BEEN COMPLETED.

SO, UH, I'M EXCITED THAT IT, IT'S, IT'S GETTING CLOSER, UH, IN PROCESS.

BUT, UH, WE ARE ALL HERE FOR A REASON AND WE'RE NOT WASTING OUR TIME.

AND, UH, WE DON'T WANT, JOE, YOU DIDN'T SAY IT, UH, ADVERSARIAL.

IT SHOULDN'T BE ADVERSARIAL.

UH, IT'S JUST US LEARNING AND ASKING QUESTIONS, AND I LIKE TO THINK THAT MOST OF THE STAFF THAT WE'VE HAD THE OPPORTUNITY TO WORK WITH AT L-A-U-S-D HAS BEEN, UH, TRANSPARENT AND, AND HELPED ANSWER OUR QUESTIONS AND COME BACK WITH, UH, ANSWERS FOR THINGS THAT THEY COULDN'T ANSWER DURING THE MEETING.

SO I JUST WANTED TO THROW THAT 2 CENTS IN.

WELL STATED.

ANY OTHER COMMENTS FROM OTHERS? MR. CAMPBELL? THANK YOU FOR THE PRESENTATION AND THE HISTORY.

IT'S IMPORTANT TO BE REMINDED OF THAT.

I KNOW THAT WE'RE ALL GOING TO LOOK IN GREAT DETAIL AT THE CHANGES PROPOSED BY THE DISTRICT.

UM, BUT I'M GOING TO SAY THAT BASED ON THE SECTIONS THAT WERE PROVIDED TO US INITIALLY, I AM CONCERNED ABOUT THE DIRECTION OF THOSE CHANGES AND THE IMPACT THAT THEY WILL HAVE ON, UH, THE ABILITY OF THIS ENTITY TO BE AN EFFECTIVE OVERSIGHT MECHANISM.

UH, AND, AND I DON'T THINK YOU HAVE TO GO ANY FURTHER THAN THE DISTRICT'S PROPOSED REVISIONS TO THE VERY MISSION STATEMENT IN WHICH THEY PROPOSE TO REMOVE THE TERM STRONG AND INDEPENDENT.

I THINK THAT THAT'S VERY, UH, POINTED.

I THINK IT SHOULD BE ALARMING TO ANYBODY THAT'S INTERESTED IN OVERSIGHT.

UM, AND, UH, I, I THINK IT PORTENDS SOME TROUBLING THINGS FOR, FOR THE DIRECTION THAT THIS HAS TAKEN.

UM, MY HOPE WOULD BE THAT WE COLLECTIVELY EMBRACE AN EFFECTIVE OVERSIGHT

[00:40:01]

MECHANISM TO ENSURE THAT WE'RE GETTING BEST VALUE, UH, AND, AND DELIVERING ON THE PROMISES THAT WERE MADE TO TAXPAYERS WHEN THESE BONDS AND, AND APPROVAL TO ISSUE THEM WAS SECURED.

AND SO, UH, IN THAT CONTEXT, I'LL BE LOOKING VERY CLOSELY AT ALL OF THE DISTRICT'S PROPOSED MODIFICATIONS, UH, AND I HOPE EVERYONE ELSE DOES AS WELL.

ITEM ON THE AGENDA IS ALSO A NON-ACTION ITEM.

ANY OTHER COMMENTS FROM ANYBODY? UM, JUST ONE LAST THING.

I JUST FORGOT TO MENTION ANY OF THE DOCUMENTS I'VE MENTIONED, ANYTHING THAT'S IN MY ARCHIVE OF HISTORICAL THINGS, I WILL ENSURE THAT BOC STAFF HAS IT.

AND SO IF YOU WISH TO REVIEW THEM, WOULD LIKE A COPY OF THEM.

I'VE GIVEN YOU TWO OF MY MEMOS FROM YEARS AGO, UM, THAT HAVE INFORMATION ABOUT THE HISTORY, AND SO THAT'S WHY THEY'RE THERE FOR YOU, JUST TO INFORM YOU.

BUT THERE ARE OTHERS, AND, UH, THOSE ARE AVAILABLE TO YOU TOO.

THANK YOU AGAIN FOR YOUR TIME AND PREPARATION OF THIS.

[4. FY25 - Bond Performance & Financial Audit Reports (Information Only)]

IT'S A, UM, BOND AUDIT PRESENTATION.

THIS IS, UM, FISCAL YEAR 25 BOND PERFORMANCE AND FINANCIAL AUDITS.

I'D LIKE TO INVITE MR. JOE, UM, MOA FROM SIMPSON SIMPSON TO THE PODIUM.

HEY, YOU'RE ALREADY HERE.

GOOD MORNING.

GOOD MORNING EVERYONE.

THANK YOU SO MUCH.

UH, AGAIN, MY NAME IS JOE MUSA, AUTO PARTNER WITH SIMPSON.

SIMPSON, LLP.

WE'RE CONTRACTED TO CONDUCT THE FINANCIAL AND PERFORMANCE AUDIT OVER THE BOND FUNDS AS OF JUNE 30TH, 2025.

I APOLOGIZE, JOE.

THIS, THIS ONE MONITOR HAS BEEN DARK FOR OH, IT'S OKAY.

NO PROBLEM.

I DON'T KNOW IF THEY'RE ABLE TO FOLLOW, AND I WAS JUST, OH, TAKE YOUR TIME.

YOU'RE GOOD.

I MEAN, I COULD PROVIDE A LITTLE BIT OF BACKGROUND AS, AS WE'RE DOING THIS.

SO, UH, THE, THE INCLUSION OF THE AUDIT THIS YEAR ARE MEASURES, K-R-Y-Q-R-R AND US ARE ALL A PART OF OUR AUDIT.

AND THE CURRENT YEAR, WE'RE GONNA BE GOING THROUGH OUR RESPONSIBILITY AS AUDITORS.

WE'RE GONNA TAKE A LOOK AT AN EXECUTIVE SUMMARY.

I'M GONNA SPEND MOST OF THE TIME ON THAT SO THAT I CAN PROVIDE THE MEMBERS WITH A VERY GOOD OVERVIEW OF THE RESULTS OF THE AUDIT.

IN THE CURRENT YEAR, WE'RE GONNA BE REVIEWING THE DISTRICT BOND FUND'S FINANCIAL STATEMENT RESULTS.

IN ADDITION TO REVIEWING THE PERFORMANCE AUDIT RESULTS, THAT'S GONNA INCLUDE US REVIEWING OUR OBJECTIVES, THE SCOPE, THE PROCEDURES THAT WERE PERFORMED IN ADDITION TO THE CONCLUSIONS.

AND THEN ULTIMATELY, WE'LL PROVIDE AN OPPORTUNITY FOR ALL MEMBERS TO ASK QUESTIONS AS THEY SEE FIT.

WE DON'T NEED TO HOLD YOU UP.

YOU CAN GO AHEAD AND MAKE YOUR PRESENTATION.

UH, AS PART OF OUR FIND, UH, OUR, OUR RESPONSIBILITIES AS AUDITORS, ONE OF THE THINGS THAT WE'RE REQUIRED TO DO IS TO CONDUCT AUDIT PROCEDURES SO THAT WE CAN GAIN A REASONABLE BUT NOT ABSOLUTE ASSURANCE THAT THE FINANCIAL STATEMENTS ARE FREE FROM MATERIAL MISSTATEMENT.

WE ALSO REVIEW THE DISTRICT'S INTERNAL CONTROLS AS IT PERTAINS TO THE BOND FUNDS SO THAT WE CAN PREPARE AN EFFICIENT AND EFFECTIVE AUDIT APPROACH.

UH, WE ALSO PERFORM TESTS OF LAWS AND PROVISIONS THAT MAY HAVE A MATERIAL IMPACT TO THE FINANCIAL STATEMENTS.

AND THEN ULTIMATELY, OUR RESPONSIBILITY IS TO PROVIDE AN OPINION, WHICH WE WILL GET INTO DURING THE PRESENTATION.

NOW, REVIEWING THE EXECUTIVE SUMMARY, THE INTENT OF OUR EXECUTIVE SUMMARIES, JUST TO GIVE YOU A VERY GOOD, STRONG CONCLUSION OF WHAT IS IMPORTANT TO KNOW WITH REGARDS TO OUR AUDIT IN THE CURRENT YEAR.

UH, YOU'LL SEE HERE ARTICLE 13 A SECTION ONE B 3D IS WHAT MANAGES, AND IT LEGISLATES THE REQUIREMENT FOR A FINANCIAL STATEMENT AUDIT IN ACCORDANCE TO GOVERNMENT AUDITING STANDARDS OVER THE BOND FUNDS.

UH, AND THE AUDIT REPORT THAT HAS BEEN PROVIDED.

AND I, I SHOULD TAKE TIME TO KIND OF EXPLAIN WHAT HAS BEEN PROVIDED.

WE'VE PROVIDED THE FINANCIAL STATEMENT AUTO REPORT IN ONE REPORT THAT SUMMARIZES THE RESULTS OF ALL SIX BONDS.

AND WE'VE ALSO PROVIDED INDIVIDUAL REPORTS FOR THE PERFORMANCE AUDIT ON A PER PER BOND BASIS.

SO, AS IT PERTAINS TO OUR FINANCIAL STATEMENT AUDIT, WHAT'S INCLUDED IN THE AUTO REPORT IS A BALANCE SHEET OF EACH BOND FUND.

YOU'LL FIND THAT IN PAGE FOUR OF THE REPORT.

TAKE A LOOK AT YOUR ASSETS, LIABILITIES, AND OVERALL FUND BALANCE.

WE'VE ALSO INCLUDED THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE, WHICH IS REALLY CONSIDERED THE INCOME STATEMENT.

YOU'LL FIND THAT ON PAGE FIVE, AND YOU'LL FIND THAT EVERY SINGLE BOND HAS ITS OWN SPECIFIC COLUMN IN TERMS OF RESULTS IN OPERATIONS.

THERE'S ALSO INCLUDED IN THE AUTO REPORT NOTE DISCLOSURES, WHICH PROVIDE A BIT MORE CLARITY TO THE INFORMATION PRESENTED IN THE FINANCIAL STATEMENTS.

SUPPLEMENTARY SCHEDULES ARE ALSO PROVIDED, UH, WE'LL, WE'LL GO THROUGH THE SCHEDULE OF BOND EXPENDITURES, UH, IN OUR PRESENTATION.

BUT THIS SCHEDULE PROVIDES YOU A BREAKDOWN OF THE COSTS INCURRED IN THE CURRENT YEAR ON A PER BOND BASIS BASED ON THE DIFFERENT COST CATEGORIES FOR F-S-D-I-T-S, OTHER COSTS, THINGS OF THAT NATURE.

VERY MUCH IN LINE TO WHAT YOU'RE TYPICALLY, UH, YOU TYPICALLY SEE WITH THE SCP, YOU'LL FIND OUR OPINION,

[00:45:01]

UH, ON PAGES ONE THROUGH THREE.

AGAIN, I'M GONNA GO THROUGH THAT.

WE MENTIONED EARLIER OUR REVIEW OF INTERNAL CONTROL AS IT PERTAINS TO OUR FINANCIAL STATEMENT, UH, UH, FINANCIAL STATEMENT AUDIT.

WE DID NOT IDENTIFY ANY MATERIAL WEAKNESSES OR SIGNIFICANT DEFICIENCIES REGARDING OUR REVIEW OVER INTERNAL CONTROL.

WE HAVE NOT IDENTIFIED ANY COMPLIANCE OVER FINANCIAL REPORTING, NON-COMPLIANCE, OVER FINANCIAL REPORTING.

UH, AND WE'VE, WE HAVEN'T HAD ANY MANAGEMENT LETTER COMMENTS IN THE CURRENT YEAR.

SO OUR PRESENTATION IS GONNA GO THROUGH THE GENERAL HIGHLIGHTS OF THAT AS WE GET INTO IT.

NOW, THE, THE NEXT MAJOR ELEMENT OF OUR AUDIT IS THE PERFORMANCE AUDIT.

AND THE PERFORMANCE AUDIT IS ALSO, UH, LEGISLATED VIA ARTICLE 13 A OF THE CALIFORNIA CONSTITUTION STATING A REQUIREMENT THAT THE SCHOOL DISTRICT BOARD CONDUCT AN ANNUAL INDEPENDENT PERFORMANCE AUDIT TO ENSURE THAT THE FUNDS HAVE BEEN EXPENDED ONLY ON THE SPECIFIC PROJECTS LISTED.

SO WITH THAT BEING SAID, THE MAIN OBJECTIVE OF OUR PERFORMANCE AUDIT, UH, IS DRIVEN BY WHAT IS INCLUDED IN LEGISLATION.

UH, THOSE SPECIFIC, AS THEY SAY, SPECIFIC, UM, PROJECTS LISTED ARE GOING TO BE THOSE PROJECTS THAT ARE LISTED IN YOUR BOND MEASURE.

THOSE ARE SPECIFIC PROJECTS THAT ARE IDENTIFIED ON A SCHOOL BASIS.

THE NEXT LEVEL ARE THOSE SPECIFIC PROJECTS THAT ARE CONSIDERED CAMPUS DISTRICT-WIDE, AND THOSE ARE MANAGED THROUGH YOUR APPROVALS WITHIN THE SAP.

SO THE, THE MAIN AUTHORITY THAT WE UTILIZE WHEN WE MAKE THESE DETERMINATIONS IS YOUR BOND BALLOT LANGUAGE, IN ADDITION TO THE ANNUAL BOARD APPROVED SCPS.

SO, WITH THAT BEING SAID, IT, IT, AGAIN, IT ESTABLISHES THE MAIN OBJECTIVE FOR THE AUDIT, DETERMINING THAT THE DISTRICT EXPENDED MEASURE FUNDS FOR THE YEAR ENDED ONLY FOR THE PURPOSE APPROVED BY THE VOTERS, AND ONLY ON THE SPECIFIC PROJECTS ENUMERATED AND THE RESOLUTION, AND INCLUDED IN THE BOARD APPROVED SCPS AND AMENDMENTS IN ACCORDANCE WITH THE PROVISIONS OF ARTICLE 13 A, IN ADDITION TO OUR AUDIT OF THE MOST, YOU KNOW, CRITICAL OBJECTIVE, WE ALSO LOOK AT PROCUREMENT, THE DISTRICT'S PROCUREMENT OF PROFESSIONAL SERVICE CONSTRUCTION AND GOODS AND SUPPLIES TO ENSURE THAT THE SAMPLES THAT WE SELECTED WERE PROCURED IN ACCORDANCE WITH THE DISTRICT'S POLICIES AND PROCEDURES.

ALRIGHT, SO GETTING RIGHT INTO THE RESULTS, UH, IN THE CURRENT YEAR, WE IDENTIFIED A TOTAL OF 61 INDIVIDUAL SAMPLES, UH, IN WHICH IT WAS IDENTIFIED THAT THE NON-PAYROLL EXPENDITURE SHOULD NOT HAVE BEEN CHARGED TO THE BOND FUND.

SO ESSENTIALLY WHAT WE'RE SAYING IS THAT THESE EXPENSES WERE EXPENDED FOR FUNDS OTHER THAN THAT APPROVED WITHIN THE BOND MEASURES AND THE VARIOUS SS.

SO MY, MY GOAL IS TO PROVIDE JOEL WITH A VERY GOOD DETAILED SNAPSHOT WITH REGARDS TO WHAT MADE UP THOSE ITEMS. SO OUT OF THE 61 ITEMS THAT WE IDENTIFIED, 18 OF THOSE CAME FROM FSD, AND THEY WERE RELATED TO INDIRECT COSTS.

IF YOU RECALL, IN OUR PREVIOUS AUDIT, ONE OF THE OBSERVATIONS WE IDENTIFIED IS THE NEED TO PREPARE A PROPORTION ANALYSIS OVER INDIRECT COSTS, ESPECIALLY IF THE BENEFITS OF THOSE INDIRECT COSTS ARE BENEFITING THE BOND FUNDS AND NON BOND FUNDS.

SO WE IDENTIFIED THAT OUT OF THOSE 18, THE DISTRICT DID PERFORM OUT OF, OUT OF THE 18 NINE OF THEM, THEY DID HAVE AN ANALYSIS.

WE REVIEWED THOSE.

WE, WE MADE A DETERMINATION THAT THE ANALYSIS WAS BASED ON BUDGETED FIGURES AND NEEDED TO BE UPDATED.

SO WE MADE THOSE NOTATIONS TO THE DISTRICT.

THEY WENT BACK AND UPDATED THE ANALYSIS TO REFLECT ACTUAL RESULTS OR ACTUAL INPUTS.

AND WHAT CAME BACK IS, UH, ROUGHLY $39,000 OF ADJUSTMENTS THAT SHOULD BE COMING OUT OF THE BOND FUND AS A RESULT OF THE UPDATE ANALYSIS THAT THE DISTRICT PERFORMED.

THE REMAINING NINE OUT OF THOSE 18 ITEMS ARE INSTANCES WHERE, UH, WE ARE TELLING THE DISTRICT THAT YOU SHOULD HAVE PERFORMED IN ANALYSIS AND ONE NEEDS TO BE CONDUCTED.

SO THE INTENTION OF THE DISTRICT IS TO GO BACK IN FISCAL YEAR 26, CONDUCT THE ANALYSIS, AND THEN MAKE A DETERMINATION WHAT THE QUESTION COST WOULD BE, RIGHT? SO HALF OF THE SAMPLES WE TESTED, WE KNOW WHAT THE ADJUSTMENT WILL BE.

THE OTHER HALF WILL BE DETERMINED IN FISCAL YEAR 26.

WE'RE GONNA BRING THAT IN NEXT YEAR'S AUDIT TO COMMUNICATE THAT TO THE OVERSIGHT COMMITTEE.

HOW MUCH THAT WAS.

AND THE EXPECTATION HERE IN TERMS OF CORRECTIVE ACTION IS THAT THE DISTRICT MAKE THE PROPER ADJUSTMENTS TO THE MEASURES FOR THE OBSERVATIONS WE IDENTIFIED.

MOVING ON HERE, THREE ITEMS, UH, SPECIFICALLY PERTAIN TO INELIGIBLE EXPENDITURES.

UH, WE IDENTIFIED THAT THERE WAS SPENDING ON THE PROJECTS THAT WERE NOT IN LINE WITH THE OVERALL INTENT OF THE PROJECTS.

WE SAW THAT THERE WERE COSTS ASSOCIATED WITH A SCHOOL CONTEST.

IT WAS, IT WAS CALLED THE HEROES FOR ZERO THAT WAS EXPENDED AGAINST THE BOND PROJECT, WHICH WE IDENTIFIED AS INELIGIBLE.

WE SAW COSTS ASSOCIATED WITH THE PURCHASE OF, UH, CHECKERS AND THROWING DARTS.

AND, UH, THIS WAS AN INSTANCE IN WHICH THE PRINCIPAL, UH, PURCHASED THESE ITEMS TO RELIEVE THE STRESS OF THE CHILDREN AS A RESULT OF THE CONSTRUCTION GOING ON.

THAT'S THE REPRESENTATION PROVIDED TO US.

BUT WE HAD, UH, CONCLUDED THAT THESE WERE INELIGIBLE.

WE ALSO IDENTIFIED INSTANCES WHERE THERE WAS COFFEE AND COFFEE SUPPLIES PURCHASED.

UH, WE WERE NOTIFIED BY THE OAR THAT THAT IS SOMETHING THAT, UH, IS NOT GOING TO BE PERMISSIBLE ON THE PROJECT MOVING FORWARD

[00:50:01]

AND SHOULD NOT HAVE BEEN CHARGED.

AND THOSE ARE ALSO BEING HIGHLIGHTED IN OUR RESULTS AS WELL.

SO THOSE THREE ITEMS RESULTED IN ABOUT $7,700,000 WORTH OF COSTS THAT WE ARE RECOMMENDING THE DISTRICT ADJUST OUT OF THE BOND FUNDS.

MOVING ON, OUT OF THE 61, WE IDENTIFIED 37, UH, ITS RELATED, UH, CONTRACT INVOICES.

SO THESE ARE INVOICES IN WHICH THE CONTRACTOR IS WORKING ON MULTIPLE PROJECTS.

SOME OF THOSE PROJECTS ARE BOND FUNDED, SOME OF THEM ARE NOT.

UH, AND THE CONTRACTOR PROVIDES A VERY CLEAR DISTINCTION OF THE PROJECTS THEY'RE WORKING ON BASED ON INTERNAL ORDERS THAT THEY'RE CHARGING.

WHAT WE IDENTIFIED IS THAT ITS HAD CHARGED THE FULL AMOUNT OF THE INVOICE TO THE BOND FUND WITHOUT MAKING THE PROPER ALLOCATION, UH, BASED ON DISCUSSION WITH ITS.

IT'S ALREADY A PROCESS THAT THEY HAVE IN PLACE TO POST THOSE ADJUSTMENTS.

THE PROBLEM IS THEY WEREN'T POSTED BY JUNE 30TH, 2025, RIGHT? SO WE HAVE TO BRING THIS UP AS A HIGHLIGHTED EXCEPTION, AND THE INTENT OF ITS IS TO GO BACK AND ADJUST THOSE ITEMS OUT OF THE BOND FUND INTO THE PROPER FUND CODED BY THOSE PROJECTS THAT WERE IDENTIFIED.

SO BASED ON THE CALCULATIONS THAT WERE CONDUCTED, THERE'S $246,000 OF THOSE COSTS THAT ARE GONNA BE ADJUSTED OUT OF THE BOND FUND BY ITS.

AND THIS IS ALREADY EMBEDDED IN THEIR PROCESS TO DO SO.

IT'S JUST A MATTER OF TIMING WHEN IT COMES TO THIS ITEM.

FINALLY, WE HAVE THREE ITEMS FROM, UH, OIG TWO ITEMS SPECIFICALLY PERTAIN TO THEIR WORK ON DUE DILIGENCE REPORTS.

AS YOU'RE AWARE, UH, WHEN YOU'RE DOING PROCUREMENT, UH, FOR CERTAIN CONTRACTS THAT MEET A THRESHOLD, YOU GO TO OIG FOR THEM TO CONDUCT A DUE DILIGENCE REPORT OVER THOSE VENDORS.

SO WHAT WE, WHAT WE EXPECT IS FOR, UH, OIG TO PERFORM AN ANALYSIS TO DETERMINE HOW MUCH WORK THOSE CONTRACTORS ARE DOING ON BOND VERSUS NON BOND FUNDS, SO THAT YOU CAN ALLOCATE THE COST OF THEIR WORK OVER THE DUE DILIGENCE INVESTIGATION PROPORTIONATELY.

SO WE IDENTIFIED, UH, TWO INSTANCES IN WHICH, BASED ON THE UPDATED ANALYSIS THAT OIG PROVIDED, THERE'S ABOUT A $2,200 ADJUSTMENT THAT NEEDS TO BE MADE TO THE BOND FUNDS.

SO AGAIN, OUR RECOMMENDATION IS FOR THEM TO MAKE THAT ADJUSTMENT.

ONE PARTICULAR ITEM THAT WE IDENTIFIED THAT DID NOT LEAD TO A QUESTION COST, UH, WAS A SAMPLE ASSOCIATED WITH AN OIG INVESTIGATION.

SO, OIG HAS AN INVESTIGATION IN WHICH BASED ON, UH, ELEMENTS FROM THE ED CODE, THEY ARE NOT ALLOWED TO DISCLOSE THROUGHOUT THEIR INVESTIGATION ITSELF.

UH, SO THE, THE ISSUE AS IT PERTAINS TO THE AUDIT IS WHEN WE QUESTION WHAT PROJECT THOSE COSTS RELATE TO, THEY'RE NOT ALLOWED TO DISCLOSE THAT.

SO ULTIMATELY WE WEREN'T ABLE TO MAKE A DETERMINATION WITH REGARDS TO ALIGNING THE PROJECT TO THE SAP, RIGHT? SO WE LOOK AT COSTS, WE DETERMINE WHAT PROJECT IT PERTAINS TO, AND THEN WE LOOK TO VALIDATE THAT THAT'S A BOND APPROVED PROJECT.

SO WE ESSENTIALLY COULDN'T DO THAT FOR THIS SAMPLE.

UH, SO BASED ON DISCUSSIONS WITH OIG, THE INSPECTOR GENERAL AT THE TIME, UH, HAD SUGGESTED PREPARING A CERTIFICATION IN WHICH THEY WOULD CERTIFY THE IG, UH, THE IG HERSELF OR AT THE TIME AND CURRENTLY HIMSELF, THE INTERIM IG CERTIFY THAT HE REVIEWED THE PROJECT THAT PERTAINS TO THE INVESTIGATION, ENSURING THAT THAT PROJECT IS A BOND APPROVED PROJECT, AND THAT THEY WOULD PROVIDE US WITH THAT SIGNED CERTIFICATION IN LIEU OF DIVULGING WHAT PROJECT ITSELF IT PERTAINS TO.

SO THEY WERE ABLE TO PROVIDE US WITH THAT CERTIFICATION, UH, MENTIONING THE MEASURE THAT THAT PROJECT PERTAINS TO AND CERTIFYING THAT THEY'VE MADE A DETERMINATION THAT IT IS A BOND APPROVED PROJECT.

NOW, YOU KNOW, OUR RECOMMENDATION HERE IS THAT THEY PUT THIS IN POLICY, RIGHT? THAT THEY ESTABLISH A POLICY INTERNALLY SO THAT ANY SAMPLE THAT PERTAINS TO BOND CHARGES AS IT RELATES TO THESE INVESTIGATIONS GO THROUGH A PROPER OFFICIAL PROCESS OF DOCUMENTATION BECAUSE OF THE FACT THAT THEY'RE UNABLE TO DISCLOSE TO US AT THIS TIME WHAT PROJECT THOSE COSTS PERTAIN TO.

BUT THEN AGAIN, THAT ONE SAMPLE DID NOT LEAD TO ANY QUESTION COST.

ALRIGHT, SO THEN THAT COVERS, THAT COVERS THE 60, UH, 61 ITEMS. THERE ARE TWO, AS YOU CAN SEE HERE, TWO INSTANCES WHERE WE IDENTIFIED INVOICES THAT WERE AUTHORIZED BY INDIVIDUALS THAT WERE NOT ON THE APPROVED LIST OF AUTHORIZERS.

SO ON AN ANNUAL BASIS, UH, FSD AND ITS, THEY PREPARE A LIST OF AUTHORIZED PERSONNEL.

THIS IS WHERE DISTRICT MANAGEMENT WILL PREPARE A SIGNATORY LISTING OF INDIVIDUALS WHO ARE AUTHORIZED TO APPROVE INVOICES FOR PAYMENT.

WE IDENTIFIED TWO INSTANCES IN WHICH THOSE INDIVIDUALS WERE NOT ON THE LIST, UH, THE DISTRICT HAS, AND WE ARE RECOMMENDING, AND WE'LL GO THROUGH THE RECOMMENDATIONS THAT ON AN ANNUAL BASIS, AUTHORIZES AUTHORIZERS ARE REVIEWED IN DETAIL AND THAT THEY'RE RESTRICTED ONLY TO THOSE ESTABLISHED AT THE BEGINNING OF THE YEAR.

SO WITH THAT BEING SAID, WE IDENTIFIED, AS IT CURRENTLY STANDS, $295,000 OF COSTS THAT SHOULD BE ADJUSTED OUT OF THE BOND FUND WITH THE CAVEAT THAT THERE ARE NINE SAMPLES THAT ARE GONNA HAVE ADDITIONAL COSTS, WHICH WE'RE

[00:55:01]

GONNA FIGURE OUT IN THE FISCAL YEAR 26 AUDIT.

NOW, ONE OF THE CRITICAL ELEMENTS OF OUR FINDINGS IS, NUMBER ONE, GETTING THE RESPONSES FROM THE DISTRICT AND COLLECTING FROM THEM CORRECTIVE ACTIONS.

AND ESSENTIALLY WHAT THIS IS, IS THEIR PLAN TO REMEDIATE THE ISSUES WE IDENTIFIED AND TO IMPROVE POLICY AND PROCEDURE MOVING FORWARD.

SO OUR RECOMMENDATIONS, UH, TO THE DISTRICT IS TO ENSURE THAT FOR INDIRECT COSTS, THEY'RE CONDUCTING A PROPORTIONATE ANALYSIS TO MAKE A DETERMINATION BASED ON RELEVANT METRICS, THE BENEFIT AND USE OF THOSE EXPENSES TO THE BOND FUND VERSUS NON BOND.

UH, WE'VE ALSO, UH, RECOMMENDED, AS I'VE ALREADY STATED, THAT THE DISTRICT ADJUST THE BOND MEASURES FOR THE EXCEPTIONS THAT WE IDENTIFIED IN THE CURRENT YEAR.

WE'VE ALSO RECOMMENDED THAT THEY STRENGTHEN INVOICE REVIEW PROCESSES TO ENSURE THAT ONLY AUTHORIZED PERSONNEL ARE APPROVING INVOICES FOR PAYMENT.

WE'VE ALSO, AS I STATED FOR OIG, RECOMMENDED THAT THEY PUT A FORMAL PROCESS IN PLACE AS IT PERTAINS TO THEIR TREATMENT AND DOCUMENTATION OF INVESTIGATIVE COSTS THAT ARE CHARGED TO THE BOND FUND.

AND MOST IMPORTANTLY, AS IT PERTAINS TO INDIRECT COSTS, YOU'LL NOTICE THAT WE HAVE A, A GREATER NUMBER OF EXCEPTIONS IN THE CURRENT YEAR THAN PRIOR YEAR.

ONE OF THE THINGS THAT WE'VE RECOMMENDED, UH, IS THAT THE DISTRICT SHOULD ESTABLISH A DISTRICT-WIDE POLICY AND PROCEDURE FOR THE SPENDING OF INDIRECT COSTS BY DEPARTMENTS AND CHARGES TO THE BOND FUNDS.

SO WHAT THAT MEANS IS ESTABLISHING A BUDGET FOR HOW MUCH INDIRECT COSTS CAN BE CHARGED TO THE BOND FUND ON A PER DEPARTMENT BASIS.

ALSO, DISTRICT-WIDE, PROVIDING THOSE BUDGETS TO THE DEPARTMENTS, MAKING SURE THAT THEY'RE IN LINE WITH THOSE BUDGETS, COLLECTING RELEVANT INFORMATION THAT SHOWS HOW MUCH MONEY THEY DID SPEND AND INDIRECT COSTS ANNUALLY, AND TRACKING THAT SPENDING.

IN ADDITION TO THAT, UH, WE ARE ALSO RECOMMENDING THAT THE INDIRECT COST BUDGET AND LANGUAGE PERTAINING TO THOSE BUDGETS ARE INCLUDED IN THE SCPS THAT ARE SUBJECT TO BOARD APPROVAL.

SO WHAT WE'VE, UH, REALLY ULTIMATELY FOR THESE CORRECTIVE ACTION PLANS, THE IDEA HERE IS THAT THE DISTRICT HAS ACCEPTED OUR RECOMMENDATIONS AND WITHIN THE REPORT THEY PUT TOGETHER, UH, WHAT THEY PLAN TO DO IN ORDER TO ACHIEVE THAT RECOMMENDATION OR IMPLEMENT THAT IN THE UPCOMING FISCAL YEAR.

AND I KNOW I'VE SAID THIS MANY TIMES, BUT AGAIN, WE'RE GONNA COME BACK IN THE NEXT YEAR'S AUDIT TO LET YOU KNOW WHAT HAPPENED.

IS IT IMPLEMENTED, IS IT ONGOING? AND WAS IT DONE? ALRIGHT, SO MOVING ON HERE TO THE FINAL BULLET POINT.

IN OUR EXECUTIVE SUMMARY, OUR PAYROLL TESTING, WE IDENTIFIED 13 INSTANCES, UH, IN WHICH, UH, THE PAYROLL CHARGES WERE NOT IN LINE WITH THE BOND MEASURE AND THE INTENT OF THE BOND PROJECT.

SO I'LL WALK EVERYBODY THROUGH THOSE THREE, THROUGH THOSE 13 THREE SPECIFIC SAMPLES PERTAIN TO FSD.

WE'LL TALK A LITTLE BIT ABOUT THIS IN OUR PRESENTATION.

WE CONDUCT INTERVIEWS OF PERSONNEL.

UH, WE COMPARE THE NOTES THAT THEY GIVE US IN THE INTERVIEW TO THE PAYROLL CHARGES WE SEE IN THE SYSTEM AND TO THE BOND FUND.

SO WE HAVE A PRETTY CLEAR IDEA WHAT PERCENTAGE OF THEIR TIME WAS BOND FUNDED, WHAT PERCENTAGE OR NOT.

UM, SO WE ASK THE INDI INDIVIDUALS WE INTERVIEW, OF COURSE, WE FIND OUT FROM THEM, WHAT DO YOU DO ON THE BOND PROJECTS? HOW MUCH OF YOUR TIME DO YOU, YOU KNOW, DO YOU ESTIMATE IS BOND FUNDABLE? AND THEN WE ALSO ASK, DO YOU DO ANY NON BOND WORK DURING THE YEAR? IN THESE INSTANCES, BASED ON THE INTERVIEW, WE IDENTIFIED THAT THEY DID, UH, CONFIRM THAT THEY DID NON BOND WORK.

AND WHEN WE WENT BACK TO THE PAYROLL CHARGES, WE FOUND THAT HOURS ASSOCIATED WITH THE PROJECTS THAT WERE REALLY SUPPOSED TO BE NON BOND FUNDED, WHICH ARE ROUTINE MAINTENANCE OVERHEAD WORK, WAS CHARGED TO THE BOND FUND.

SO WE CAME UP WITH TOTAL AMOUNT IS 90, $91,000 WORTH OF EXPENDITURES FOR THREE EMPLOYEES, IN WHICH THE HOURS ASSOCIATED WITH THAT TIME WAS FOR ROUTINE MAINTENANCE, OVERHEAD WORK, AND NOT FOR BOND FUNDED ACTIVITY.

SO JUST LIKE WE NOTED IN THE NON BOND, NON-PAYROLL TESTING ARE RECOMMENDATION HERE IS THAT THE DISTRICT ADJUST THE MONEY OUT OF THE BOND FUNDS INTO ANOTHER FUND BECAUSE IT WAS NOT IN LINE WITH THE INTENT OF THE BOND PROGRAM, RIGHT? AND ACTUALLY IT WAS NOT RELATED TO ANY BOND APPROVED PROJECT.

SO THAT COVERS THE, UH, THE THREE SPECIFIC ITEMS THAT WE IDENTIFIED AS NON BOND ACTIVITY.

THE REMAINING 10 SAMPLES ARE A REPEAT FINDING FROM THE PRIOR YEAR, UH, SEVEN SAMPLES FROM OEHS, THREE EMPLOYEES FROM PERSONNEL COMMISSION.

AND THIS IS AN INSTANCE IN WHICH, UH, INDIVIDUALS WORKING ON THE BOND PROJECT ARE MAINLY OVERHEAD AND THE DEPARTMENTS ARE CHARGING THE CHARGES OF THOSE EMPLOYEES BASED ON BUDGETED INFORMATION THAT THEY'RE PUTTING TOGETHER TO MAKE A, WHAT, WHAT, WHAT THEY BELIEVE A VERY RATIONAL APPROACH TO CHARGING THE BOND FUND.

SO IF WE AS, AS WE'VE MENTIONED MANY TIMES, UH, THE REQUIREMENT HERE FOR ANY EXPENDITURE ON A STATEMENT, FINANCIAL STATEMENTS, YOU CAN'T USE BUDGETED FIGURES.

THEY HAVE TO BE BASED ON ACTUAL.

UM, SO WE'VE RECOMMENDED FOR THEM TO GO BACK AND COME UP WITH METRICS THAT THEY CAN UTILIZE THAT, THAT ARE RELEVANT METRICS THAT ARE TANGIBLE, THAT PROVIDE US WITH AN IDEA OF WHAT THE ACTUAL ACTIVITIES WERE OF THOSE EMPLOYEES, AND THEY CAN USE THOSE RELEVANT ACTUAL METRICS TO ASSIGN COST

[01:00:01]

TO THE BOND FUND.

SO, UH, FOR THESE 10 EMPLOYEES, AGAIN, WE'RE NOTING THAT THERE ARE BUDGETED METRICS INVOLVED.

UH, WE'VE MET WITH BOTH OF THESE, UH, DEPARTMENTS.

UH, THEY HAVE PROVIDED US WITH THEIR, UH, CLEAR REPRESENTATION THAT FISCAL YEAR 26 WILL BE DIFFERENT.

THEY'VE ACTUALLY BEEN WORKING ON IMPLEMENTING A SYSTEM OVER THE PAST TWO FISCAL YEARS.

ONE OF THE THINGS I WOULD MENTION IS WE'RE DONE WITH THE AUDIT IN MARCH.

SHOULD BE MARCH, RIGHT? IT'S APRIL NOW, BUT WE'RE DONE WITH THE AUDIT TYPICALLY IN MARCH, AND WE'RE ALREADY NINE MONTHS INTO THE NEXT FISCAL YEAR.

SO THERE'S A TIMING ISSUE AS TO WHEN THE DISTRICT CAN RATIONALLY APPLY THESE RECOMMENDATIONS, RIGHT? SO IF, IF WE PROVIDE THEM A RECOMMENDATION FOR THE FIRST TIME, NOW THEY REALLY ONLY HAVE A FEW MONTHS LEFT TO IMPLEMENT IT BEFORE JUNE 30TH, 2026, WHICH, UH, YOU KNOW, REASONABLY SPEAKING MAY NOT BE ENOUGH TIME FOR THEM TO IMPLEMENT THAT.

SO THIS IS NOW REALLY COMING INTO FRUITION WHERE TWO YEARS DOWN THE LINE, THEY'VE BEEN ABLE TO PINPOINT AND APPROACH, HAVE ENOUGH TIME, UH, TO PROVIDE US WITH SOMETHING THAT IS RELEVANT, METRICS AND TANGIBLE.

SO WE'LL, AGAIN, WE'RE GONNA BRING THIS AGAIN NEXT YEAR.

WHAT YOU'RE GONNA FIND IN OUR PRIOR YEAR AUDIT FINDINGS THAT I'M GONNA REVIEW NOW IS THAT THIS ITEM IS CONSIDERED LAST YEAR IS NOT IMPLEMENTED, RIGHT? SO WE'RE GONNA KEEP ROLLING THIS FORWARD UNTIL WE MAKE A DETERMINATION BASED ON DOCUMENTATION WE RECEIVE THAT THEY'VE IMPLEMENTED THAT CORRECTIVE ACTION PLAN.

OKAY, I APOLOGIZE FOR THE LONG-WINDED.

TO CONCLUDE THE PAYROLL FINDINGS, WE'RE GONNA RECOMMEND THAT THEY MOVE THOSE EXPENSES, THE 91 K OUT OF THE BOND FUNDS.

WE'RE GONNA RECOMMEND THAT EMPLOYEES WHO ARE WORKING ON NON BOND WORK HAVE ACCESS TO NON BOND RELATED PAYROLL CODES, RIGHT? SO THAT THOSE HOURS SHOULD, SHOULD BE, UH, CODED APPROPRIATELY.

WE'RE ALSO RECOMMENDING TRAINING, UH, BY THE BOND COMPLIANCE UNIT TO THE VARIOUS DEPARTMENTS TO, AGAIN, KIND OF ANNUALLY REMIND THEM OF CHARGING IN DIRECT COSTS AND ALL OF THE PAYROLL POLICIES AND PROCEDURES THAT ARE IN PLACE FOR THE DISTRICT AND FOR THOSE RELEVANT DEPARTMENTS, UH, PERSONNEL COMMISSION OEHS, WE'RE RECOMMENDING THAT THEY IMPLEMENT ACTUAL METRICS WHEN ALLOCATING COSTS FOR OVERHEAD EMPLOYEES TO THE BOND FUNDS.

ALRIGHT, SO WITH REGARDS TO KIND OF JUMPING INTO VERY HIGH LEVEL RESULTS FOR THE FINANCIAL STATEMENT AUDIT, UM, WE HAVE ISSUED AN UNMODIFIED OPINION ON THE FINANCIAL STATEMENT AUDIT.

AND WHAT THAT REALLY MEANS IS THAT IS A CLEAN OPINION.

IT'S REALLY THE CLEANEST OPINION AN ENTITY CAN OBTAIN AS A RESULT OF THEIR AUDIT.

AND, AND WHAT WE'RE SAYING HERE IS WE'RE CONCLUDING THAT THOSE DISTRICT BOND FUND FINANCIAL STATEMENTS ARE PRESENTED FAIRLY IN ALL MATERIAL RESPECTS WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES.

YOU'LL FIND, AGAIN, OUR OPINION ON PAGES ONE THROUGH THREE OF THE FINANCIAL AUDIT REPORT.

NOW, LOOKING AT SOMETHING OTHER THAN LETTERS HERE, KIND OF A CHART TO TAKE OUR EYES OFF THE WORDS.

UH, LOOKING AT THE OVERALL FINANCIAL AUDIT RESULTS WITH REGARDS TO FUND BALANCE THAT'S LEFT OVER ON OUR PER BOND BASIS.

MEASURE K HAD A TOTAL OF $34 MILLION OF FUND BALANCE AS OF JUNE 30TH, 2025.

MEASURE R HAD 64 MILLION.

MEASURE Y HAD 57 MILLION.

MEASURE Q HAD 266 MILLION.

MEASURE RR WAS LEFT WITH 795 MILLION.

AND MEASURE US WAS LEFT WITH $450 MILLION IN FUND BALANCE.

WITH REGARDS TO YOUR INCOME STATEMENT EXPENDITURES AND TRANSFERS OUT.

MEASURE K INCURRED A TOTAL OF $21 MILLION IN THE CURRENT YEAR.

MEASURE R HAD 5 MILLION MEASURE Y AT 17 MILLION MEASURE Q AT 788 MILLION.

MEASURE RRR AT 468 MILLION AND MEASURE US AT $241 MILLION.

ALRIGHT, SO AGAIN, HERE'S KIND OF A SNAPSHOT OF THE SCHEDULE OF EXPENDITURES.

IT'S VERY MUCH IN LINE WITH WHAT YOU'RE TYPICALLY SEEING IN THE SCP.

IN THE CURRENT YEAR.

FSD SPENT ABOUT $1.1 BILLION.

THAT MAKES UP 74% OF SPENDING IN THE CURRENT YEAR.

ITS SPENT ABOUT, UH, $152 MILLION, WHICH MAKES UP 10% IN THE CURRENT YEAR.

WHEN WE LOOK AT YOUR OTHER COSTS, WE HAVE $249 MILLION, WHICH IS 16% OF THE CURRENT YEAR SPENDING.

THIS IS OBVIOUSLY MUCH HIGHER THAN IT'S EVER BEEN IN PRIOR YEARS.

THE MAIN REASON IS DUE TO THE COPS DFE, THAT'S WHAT INFLATED THAT NUMBER IN THE CURRENT YEAR.

SO TYPICALLY YOU'RE AT A MUCH LOWER PERCENTAGE, BUT BECAUSE OF THE DFE, IT CAME OUT TOO MUCH MORE IN THE CURRENT YEAR.

OKAY? SO AGAIN, JUST, JUST JUST TO REITERATE, NO INTERNAL CONTROL DEFICIENCIES IDENTIFIED IN THE CURRENT YEAR OR NON-COMPLIANCE AS IT PERTAINS TO THE FINANCIAL STATEMENT AUDIT.

ALRIGHT, NOW, MOVING INTO SOME OF THE SPECIFICS IN OUR PERFORMANCE AUDIT.

UH, OBJECTIVE NUMBER ONE IS THE OBJECTIVE THAT WE OUTLINE AT THE BEGINNING OF THE MEETING, WHICH IS MEETING THE LEGISLATIVE REQUIREMENT.

UH, AGAIN, MAKING SURE THAT THE DISTRICT EXPENDED MEASURE FUNDS FOR THE YEAR ENDED ONLY FOR THE PURPOSE OF YOU APPROVED BY THE VOTERS, AND ONLY ON THE SPECIFIC PROJECTS ENUMERATED IN THE RESOLUTION AND INCLUDED IN THE BOARD APPROVED SCPS AND AMENDMENTS.

SO NOW THE QUESTION IS, WELL, WHAT DO WE DO AS AUDITORS TO TEST, TO MAKE SURE THAT OBJECTIVE IS MET? NUMBER ONE, THE SCOPE OF OUR AUDIT ARE ALL PAYROLL,

[01:05:01]

NON-PAYROLL, AND TRANSFER OUT EXPENDITURES THAT WERE INCURRED DURING JULY 1ST, 2024 THROUGH JUNE 30TH, 2025.

SO IT'S ALL OF THIS IS ON A SAMPLE BASIS IN ACCORDANCE TO OUR STANDARDS.

FIRST THING WE DO IS WE RECONCILE THE FINANCIAL STATEMENT OF THE INDIVIDUAL MEASURE BACK TO THE DISTRICT'S AFER, RIGHT? SO THE DISTRICT BOND FUND IS A MAJOR FUND FOR THE DISTRICT THAT'S PRESENTED IN ONE COLUMN IN, IN THEIR FINANCIAL STATEMENT AS A WHOLE.

AND WHAT WE'RE DOING IS ENSURING THAT THOSE RECONCILED BACK TO THOSE AUDITED FIGURES.

NUMBER TWO, WE SELECT A SAMPLE OF EXPENDITURES TO TEST.

IN THE CURRENT YEAR, WE HAD 892 NON-PAYROLL EXPENDITURES THAT WE SAMPLED IN THE CURRENT YEAR.

PROCEDURE NUMBER ONE, ENSURING THAT THOSE COSTS ARE IN LINE WITH THE ARTICLE 13 OF THE CALIFORNIA CONSTITUTION, MAKING SURE THAT THOSE EXPENDITURES WERE NOT INCURRED FOR SCHOOL OPERATING EXPENSES.

THAT IS VERY CLEARLY OUTLINED, ESPECIALLY IN THE STATE'S AUDIT GUIDE, MAKING SURE THAT THERE'S A REVIEW AND APPROVAL PROCESS FOR THE EXPENSES THAT WE SAMPLE.

ENSURING THAT THOSE EXPENDITURES PERTAIN TO PROJECTS THAT ARE LISTED IN THE CUMULATIVE AND VARIOUS SCPS AND AMENDMENTS.

AND FOR THOSE, UH, FOR THOSE EXPENSES THAT REPRESENT CONSTRUCTION PAYMENTS, THERE'S A MUCH MORE DETAILED LEVEL OF REVIEW THAT FFSD CONDUCTS.

SO FOR THOSE CONSTRUCTION PAYMENTS, WE LOOK TO MAKE SURE THAT THAT WAS DONE.

WHEN WE LOOK AT PAYROLL TESTING, WE HAVE A TOTAL OF 80 EMPLOYEES THAT WE SELECTED IN THE CURRENT YEAR.

AGAIN, WE, WE COMPILE DOCUMENTATION SUCH AS TIME SHEETS, SEMI-ANNUAL CERTIFICATIONS.

WE LOOK AT THE, UH, DETAILS FROM THEIR SYSTEMS, THEIR, UH, THAT TRACK PROJECTS THAT THEY'RE CHARGING TIME TO.

SO WE'RE LOOKING AGAIN TO MAKE SURE THAT THOSE COSTS ARE IN LINE WITH ARTICLE 13 A OF THE CALIFORNIA CONSTITUTION.

AS I MENTIONED EARLIER, WE CONDUCT INTERVIEWS WITH ALL OF THOSE EMPLOYEES TO GET A VERY STRONG DETERMINATION.

WHAT DID THEY DO? WHAT DID THEY NOT DO? AND SOME OF THE ELEMENTS THAT WE NEED TO MAKE A DETERMINATION THAT THEIR CHARGES ARE REASONABLE.

WE LOOK TO MAKE SURE THAT THE DISTRICT MAINTAIN APPROPRIATE TIME AND EFFORT.

REPORTING CONTROLS, TIME SHEETS, SEMI-ANNUAL CERTIFICATIONS, TRACKING TIME ON PER PROJECT BASIS.

THOSE ARE THINGS THAT WE REVIEW AS IT PERTAINS TO PAYROLL.

ALSO, WE LOOK TO MAKE SURE THAT THE PAYROLL CHARGES ARE IN ACCORDANCE TO ACTUAL WORK CONDUCTED, RIGHT? NOT BASED ON BUDGETED FIGURES.

RIGHT? THOSE ARE NOT ALLOWED TO BE CHARGED TO THE FINANCIAL STATEMENTS.

IN ADDITION TO THAT, WE HAVE, UH, TESTED, UH, TRANSFERS OUT.

SO FOR, FOR TRANSFERS OUT, WE HAD A TOTAL OF 21 TRANSFER OUT SAMPLES.

ONE OF THOSE CAME FROM MEASURE RR THAT PERTAINED TO, UH, REIMBURSING THE GENERAL FUND FOR EXPENDITURES THAT IT HAD INCURRED ON A BOND APPROVED PROJECT.

SO WE IDENTIFY THAT THE PROJECT AND THE REIMBURSEMENT PERTAINS TO A PROJECT THAT IS BOND APPROVED.

AND WE LOOK AT THE SAME METRICS THAT WE LOOK AT WHEN WE TEST NON-PAYROLL IN THE CURRENT YEAR.

WE ALSO LOOKED AT THE COPS DFE FOR MEASURE US THE 2023 COP SERIES A D.

WE LOOKED AT THE TRANSFER OF THE MONEY, UH, ENSURING THAT THAT WAS IN LINE WITH MEASURE US.

IN ADDITION TO THE BOARD APPROVAL DOCUMENTS, WHAT WE ALSO DID IS WE LOOKED AT THE ORIGINATING EXPENDITURES THAT WERE INCURRED IN RELATION TO THE THREE PROJECTS THAT WERE APPROVED THAT WERE WITHIN THE COPS DFE.

SO THE SUN VALLEY ELECTRIC BUSES AND GENERATOR PURCHASES PROJECT, GREEN SCHOOLYARD UPGRADE PROJECTS, CAMPUS INFORMATION TECHNOLOGY SAFETY IMPROVEMENTS PROGRAM.

SO OUT OF THOSE THREE PROJECTS, UH, WE IDENTIFIED THAT THERE WERE REALLY NOT MUCH EXPENDITURES INCURRED IN FISCAL YEAR 25 FOR THE GREEN SCHOOLYARD UPGRADE PROJECT.

SO WE SELECTED SAMPLES FROM THE SUN VALLEY BUS AND THE CAMPUS INFORMATION TECHNOLOGY.

SO WHAT WE DID IS WE WENT BACK TO FUND 4 0 1, WHICH IS THE FUND THAT IS INCURRING THE ACTUAL INITIAL COSTS OF THESE ITEMS. AND WE SELECTED SAMPLE OF INVOICES.

AND WE LOOKED AT, IN THE SAME WAY WE LOOKED AT ANY NON-PAYROLL SAMPLE, IS THE EXPENDITURE IN LINE WITH THE INTENT OF THE PROJECT? IS THE PROJECT A BOND APPROVED PROJECT, UH, AND MAKING A DETERMINATION THAT THE INITIAL SPENDING THAT ARE BACKING UP THE DFE IS IN LINE WITH THE INTENT OF THOSE THREE PROJECTS THAT WERE APPROVED.

SO WE HAVE A TOTAL OF 20 SAMPLES.

AGAIN, JUST TO REITERATE, AND WE DID NOT HAVE ANY, WE DID NOT FIND ANY NON-COMPLIANCE WITH REGARDS TO THOSE SPENDING ON THOSE TWO PROJECTS.

SO FINISHING IT OFF HERE WITH, UH, PROCUREMENT, PROCUREMENT APPLIED TO MEASURES KYQ AND RR.

AND AGAIN, WE'RE, WE'RE SELECTING A SAMPLE HERE OF CONTRACTS THAT WERE PROCURED DURING THE FISCAL YEAR.

WE HAD A TOTAL OF FIVE CONSTRUCTION CONTRACTS, THREE PROFESSIONAL SERVICE AGREEMENTS, AND FIVE GOODS AND SUPPLIES CONTRACTS.

THESE ARE INSTANCES IN WHICH THERE WERE POS THAT WERE ISSUED IN RELATION TO THE PROCUREMENT THAT WERE FUNDED WITH BOND MONEY.

AND THEN WE LOOK AT THE DOCUMENTATION, IT'S ACTUALLY VERY DETAILED, VERY CUMBERSOME TO LOOK AT THE, UH, AND, AND YOU'LL SEE IN OUR PERFORMANCE AUDIT REPORT, ALL OF THE ATTRIBUTES THAT WE TEST, UH, CANNOT BE SUMMARIZED IN ONE SLIDE, BUT WE LOOK TO MAKE SURE THAT THE PROCUREMENT WAS DONE IN CONJUNCTION WITH THEIR

[01:10:01]

POLICY.

AND WE DIDN'T HAVE ANY OBSERVATIONS, UH, THAT I NOTED IN THE EXECUTIVE SUMMARY THERE.

OKAY, SO AGAIN, I'M GONNA GO THROUGH THIS VERY QUICKLY 'CAUSE I'VE ALREADY, UH, TALKED ABOUT THESE ITEMS. THESE SLIDES ARE REALLY, UH, INFORMATIONAL FOR, FOR EVERYONE TO HAVE A GOOD IDEA OF WHAT THE EXCEPTION PERTAINED TO.

AGAIN, WE HAD 48 PURCHASES AMOUNTING TO 287 K.

THOSE ARE THE ONES THAT WE IDENTIFIED FROM FSD AND ITS.

UH, WE HAD NINE PURCHASES IN WHICH THEY'RE GONNA CONDUCT AN ANALYSIS IN FISCAL YEAR 26.

ONE ITEM WE IDENTIFIED AS IT PERTAINS TO THE OIG INVESTIGATION, OUR RECOMMENDATION THERE THREE PURCHASES THAT WERE INELIGIBLE COSTS THAT WE TALKED ABOUT EARLIER.

AND THEN TWO INSTANCES WERE INVOICES WERE APPROVED BY UNAUTHORIZED PERSONNEL.

NOW, THE CORRECTIVE ACTION PLANS ARE EXTREMELY IMPORTANT, RIGHT? THIS IS OUR WAY OF MONITORING OUR FINDINGS, DETERMINING WHETHER THERE'S IMPROVEMENTS IN PLACE ON AN ANNUAL BASIS, AND THEN FOLLOWING UP TO MAKE SURE THAT THE BOND FUNDS FROM A FINANCIAL PERSPECTIVE ARE MADE WHOLE FOR THE INSTANCES IN WHICH WE FOUND EXPENSES SHOULD BE TRANSFERRED OUT.

SO YOU'LL SEE OUR CORRECTIVE ACTION PLANS, I I, I DID GO THROUGH IT, BUT JUST VERY QUICKLY ENSURING THAT WE'RE CONDUCTING THOSE PROPORTION ANALYSIS, ENSURING THAT THE BOND FUNDS ARE ADJUSTED FOR OUR CURRENT YEAR FINDINGS, STRENGTHENING THE INVOICE REVIEW PROCESS, ESTABLISHING A CERTIFICATION PROCESS WITH OIG FOR THOSE INVESTIGATIVE COSTS.

AND THEN MORE IMPORTANTLY, ESTABLISHING A DISTRICT-WIDE POLICY FOR ESTABLISHING BUDGETS FOR INDIRECT COSTS, TRACKING INDIRECT SPENDING, AND INCLUDING, UH, THESE BUDGETS AND LANGUAGE OF THESE BUDGETS IN THE SAPS FOR THE PAYROLL EXCEPTIONS.

AS WE TALKED ABOUT THOSE 3 4 91 K, THAT'S GONNA GET ADJUSTED OUT.

THE 10 EMPLOYEES FOR THOSE TWO DEPARTMENTS IN WHICH THEY'RE GONNA PROVIDE US, UH, HOPEFULLY NEXT YEAR.

THEIR NEW APPROACH TO CHARGING THE BOND FUND CORRECTIVE ACTION PLAN.

AGAIN, ADJUSTING MEASURE Q, ENSURING THAT ALL EMPLOYEES HAVE ACCESS TO BOND AND NON BOT CODES, PROVIDING TRAINING, AND THEN OVERALL, ENSURING THAT THOSE DEPARTMENTS IMPLEMENT A BETTER CHARGING SYSTEM TO THE BOND FUND.

OKAY? NOW, AS PROMISED, WHAT HAPPENED TO LAST YEAR'S EXCEPTIONS, RIGHT? WE, WE BRING FORTH THESE EXCEPTIONS.

WE TELL YOU, HEY, THEY'RE GONNA DO THIS.

THEY'RE GONNA DO THAT.

SO NOW THIS IS OUR OPPORTUNITY TO REVIEW LAST YEAR'S EXCEPTIONS AND TO LET YOU KNOW WHETHER OR NOT BASED ON DOCUMENTATION WE'VE AUDITED, WHETHER THEY IMPLEMENTED THE RECOMMENDATIONS AND THEIR CORRECTIVE ACTION PLAN.

SO, NUMBER ONE, WE HAD A NUMBER OF EXCEPTIONS LAST YEAR FOR THE INDIRECT COSTS PROPORTIONATE SHARE IN WHICH WE IDENTIFIED A DOLLAR VALUE THAT NEEDS TO BE ADJUSTED BY THE DISTRICT.

SO WHAT WE DO IS WE OBTAIN THE DOCUMENT NUMBERS ASSOCIATED WITH THOSE ADJUSTMENTS.

WE LOOK INTO THE FINANCIAL SYSTEM, TYING IT BACK TO THE FINANCIAL STATEMENTS IN OUR FINANCIAL STATEMENT AUDIT, TO ENSURE THAT THOSE COSTS WERE INDEED ADJUSTED OUT OF THE BOND FUND AND PUT SOMEWHERE ELSE.

SO THAT IS CONSIDERED IMPLEMENTED, MAKING SURE THAT THE DISTRICT IMPLEMENTS A SYSTEM IN WHICH THEY HAVE A PROPORTIONATE SHARE ANALYSIS FOR LAST YEAR'S FINDINGS.

SO A MAJORITY OF LAST YEAR'S FINDINGS, THEY DID PROVIDE US WITH AN ANALYSIS.

I THINK THERE WAS A FEW SAMPLES, WHICH THEY STILL HAD TO.

SO WE GOT THOSE, THOSE WE REVIEWED, THOSE LED TO ADJUSTMENTS.

THOSE ADJUSTMENTS WERE POSTED TO THE FINANCIAL STATEMENTS.

SO WE CONSIDER THAT TO BE IMPLEMENTED AS WELL.

UH, WE DID HAVE A RECOMMENDATION IN THE PRIOR YEAR THAT THERE ARE POLICIES AND PROCEDURES ESTABLISHED FOR THE MANNER IN WHICH DEPARTMENTS SHOULD BE ASSESSING HOW TO CHARGE INDIRECT COST TO THE BOND FUNDS.

RIGHT? AND THAT'S REALLY THE PROPORTION ANALYSIS THAT WE'VE BEEN DISCUSSING.

SO THAT'S NOT BEEN IMPLEMENTED YET.

THAT IS AS A RESULT OF THE FACT THAT WE MADE THAT REPRESENT THAT, UH, RECOMMENDATION LAST MARCH.

IT JUST WASN'T ENOUGH TIME FOR THE DISTRICT TO PIN THAT DOWN BEFORE THE END OF THE FISCAL YEAR.

SO THAT'S WHY WE'RE PUTTING IT HERE AS NOT IMPLEMENTED.

YOU'LL SEE THAT IN THE AUDIT REPORT.

THAT TRIGGERS US TO REVIEW THIS AGAIN NEXT YEAR AND PROVIDE AN UPDATE TO THE, TO THE OVERSIGHT COMMITTEE.

UH, IN TERMS OF PROVIDING TRAINING, WE, UH, HAVE IDENTIFIED THAT THE BOND COMPLIANCE UNIT HAVE PROVIDED TRAINING TO ALL THE DEPARTMENTS.

WE'LL TYPICALLY LOOK AT MEETING NOTES, AGENDAS, POWERPOINT PRESENTATIONS TO MAKE SURE THAT THEY'RE ADDRESSING THE RIGHT ISSUES THAT WE BROUGHT UP IN LAST YEAR'S AUDIT.

SO THAT'S IDENTIFIED AS IMPLEMENTED.

WE DID HAVE AN ITEM IN WHICH WE WERE, UH, TESTING ITSS ONE SAMPLE IN IS THEIR SOTO RECONFIGURATION.

THEY WENT BACK TO PERFORM SOME UPDATES TO THEIR PROPORTION ANALYSIS THAT WAS PROVIDED TO US A LITTLE BIT TOWARD THE END OF THE AUDIT.

WE'RE HIGHLIGHTING IT HERE AS NOT IMPLEMENTED.

WE'RE GONNA BE REVIEWING THAT DOCUMENTATION AND DRAWING A CONCLUSION ON IT IN FISCAL YEAR 26.

SO AGAIN, WE HIGHLIGHTED IN OUR REPORT, IT'S VERY TRANSPARENT THAT WE'RE GONNA CONTINUE REVIEWING THIS.

AND NOT UP UNTIL THE TIME IN WHICH WE'RE COMFORTABLE WITH WHAT WE'VE REVIEWED, DO WE CONSIDER IT IMPLEMENTED.

UH, WE ALSO HAD, IF YOU RECALL, IN THE PRIOR YEAR, THERE WAS AN EXPENSE PERTAINING TO A PROJECT THAT OIG WAS WORKING ON THAT THEY, UH, DID NOT HAVE IN THEIR WORK PLAN.

SO WE HAD MADE A RECOMMENDATION THAT THEY UPDATE THEIR POLICY AND PROCEDURE TO STATE THAT ANY CHANGES

[01:15:01]

TO THEIR WORK PLAN HAS TO GO BACK TO THE BOARD FOR RE-APPROVAL.

SO WE MADE THAT RECOMMENDATION LAST YEAR.

OIG IS STILL WORKING ON THAT.

THEY'RE PROVIDING US WITH A TARGETED IMPLEMENTATION DATE OF DECEMBER 31ST TO GET THAT POLICY IN PLACE.

SO AGAIN, WE'RE GONNA CONTINUE LOOKING AT THIS AND WE'LL REPORT ON THIS IN THE NEXT YEAR'S AUDIT.

UH, WE HAD RECOMMENDED TRAINING, UH, FOR THE DEPARTMENTS, UH, AS IT PERTAINS TO ENSURING THAT THE, UH, PROPORTIONATE SHARE ANALYSIS IS CONDUCTED, WHICH IT WAS, UH, IMPACTED DEPARTMENTS SHOULD ESTABLISH RELEVANT METRICS AGAIN.

SO THAT WASN'T DONE FOR THOSE TWO DEPARTMENTS.

WE'RE PUTTING IT HERE AS NOT IMPLEMENTED, AND THEN WE'RE HIGHLIGHTING THE CURRENT YEAR EXCEPTION, RIGHT? WE'RE SAYING, OKAY, LOOK AT THE CURRENT YEAR BECAUSE THIS IS STILL AN ONGOING ISSUE.

YOU ALRIGHT.

SO WITH THAT BEING SAID, I'M VERY MUCH OPEN TO QUESTIONS AND I'LL PROVIDE THE ANSWERS TO THE BEST OF MY ABILITY.

AND THANK YOU FOR YOUR TIME.

WELL, THANK YOU FOR YOUR EFFORT.

WE KNOW THIS IS YOUR JOB.

THANK YOU FOR THE QUALITY OF YOUR, YOUR YOUR TIME AND PREPARATION AND PRESENTATION.

I KNOW WE HAVE QUESTIONS.

OF COURSE.

I HEARD THE WORD NAIVE COME FROM MR. PANSKY, SO I WILL USE THIS AS NAIVE.

WHEN THESE, UM, CONCLUSIONS AND RECOMMENDATIONS ARE PRESENTED, IS THE DISTRICT CAPITAL D AMENABLE AND COOPERATIVE WITH THIS INFORMATION? ARE THEY SITTING THERE P****D OFF? OR ARE THEY SAY, OH, OKAY, WE'LL TRY AND DO SOMETHING BETTER? YEAH.

VERY, VERY SIMPLE NAIVE.

OF COURSE, IT'S THE LATTER.

UH, AND, AND THAT IS SUPPORTED BY THE FACT THAT IN THE AUDIT REPORT, THEY ARE AGREEING WITH OUR RECOMMENDATIONS AND THEY ARE PREPARING A PLAN TO REMEDIATE IT MOVING FORWARD.

SO THEY ACCEPT FULL RESPONSIBILITY FOR WHAT WE IDENTIFY AS FINDINGS, AND THEY PUT TOGETHER A PLAN, WHICH WE REVIEW TO MAKE SURE IT'S A SUFFICIENT PLAN TO WORK ON REMEDIATING THAT MOVING FORWARD.

THEN IS THERE A SORT OF GIVE AND TAKE? OH, WE'LL DO AND, AND JUST, BUT IT'S NOT ALL LOCKSTEP.

YOU, YOU'RE AMENABLE TO PERHAPS WHAT THEY'RE SAYING, WHAT THE DISTRICT CAPITAL D IS REPLYING TO.

I'M JUST, JUST SILLY THE NEGOTIATIONS THAT GO ON.

SO WHAT, WHAT I AM NOT AMENDABLE TO IS EVER REMOVING AN EXCEPTION THAT WE IDENTIFIED.

SO THAT DOES NOT HAPPEN.

BUT WHAT WE TYPICALLY, UH, WITH REGARDS TO THE BACK AND FORTH, IT'S, WELL, HOW DO WE DO THAT? OKAY, GOTCHA.

YOU KNOW, WHAT DO YOU THINK WOULD BE GOOD? OR HERE'S OUR RECOMMENDATION.

YEAH, MAYBE NOT, NOT, UH, WHAT, UH, DRAWING A LINE IN THE SAND, THAT WOULD NOT BE SOMETHING THAT WE WOULD ALLOW OR IS WITHIN OUR STANDARD.

THANKS.

THANK YOU FOR THAT.

ANY OTHER COMMENTS BEFORE YOU, MS. MS. PERL? THANK YOU FOR THAT PRESENTATION.

IT WAS QUITE EXTENSIVE.

UM, AND CLEARLY THIS IS SOMETHING GIVEN THE SIZE OF THE DISTRICT AND THE WORK THAT, THAT ALL THE DIFFERENT DEPARTMENTS AND, AND THE BOND MEASURES ENTAIL, IT'S, IT'S VERY OVERWHELMING, I THINK, AT TIMES.

SO THANK YOU FOR THAT.

UM, MY QUESTION IS, YOU WERE TALKING ABOUT, YOU KNOW, YOU PRESENTING YOUR, UH, RECOMMENDATIONS AND NOW WE'RE ALREADY NINE MONTHS INTO THE NEXT, UH, YEAR IN TERMS OF, YOU KNOW, REALISTICALLY HOW THE DISTRICT CAN IMPLEMENT THE RECOMMENDATIONS OR NOT.

IS THERE A MECHANISM, OR MAYBE YOU COULD JUST EX TELL ME THIS PROCESS.

DO YOU GUYS GET EVERYTHING AFTER THE FISCAL YEAR IS OVER AND THEN YOU HAVE TO GO THROUGH WITH IT? OR IS IT THAT YOU GET THINGS ON A QUARTERLY BASIS AND THAT WAY YOU CAN PREPARE FOR THE ULTIMATE REPORT? YEAH, SO THE, UH, WHEN WE LOOK AT THE PRIOR YEAR FINDINGS, SO THOSE, THOSE REMARKS THAT WE'RE MAKING IS AS OF OUR REPORT DATE, RIGHT? SO, SO FOR INSTANCE, IT'S AS OF APRIL 24TH IN WHICH WE HAVE THESE CURRENT, UH, DETERMINATIONS.

SO THAT PROVIDES THEM A LITTLE BIT MORE TIME.

BUT THE IDEA IS THAT WE WANT THEM TO IMPLEMENT THIS IN THE TIME PERIOD THAT WE'RE AUDITING, RIGHT? SO, FOR INSTANCE, NEXT YEAR WE'RE GONNA AUDIT FISCAL YEAR 26, WE'RE GONNA LOOK AT DOCUMENTATION.

WE'VE HAVE, WE'VE ALREADY PASSED A NUMBER OF MONTHS IN WHICH THEY ARE THEORETICALLY DOING IT THE SAME WAY THEY WERE DOING IT BEFORE WITH ONLY A FEW, FEW MONTHS AT THE END OF THE FISCAL YEAR IN ORDER TO FIX IT.

SO WHEN WE'RE TALKING ABOUT ESTABLISHING POLICY, WE CAN LOOK AT A POLICY THAT WAS ESTABLISHED AFTER THE FISCAL YEAR, BUT IT WASN'T IMPLEMENTED IN THE FISCAL YEAR, RIGHT? IT WASN'T ACTUALLY APPLIED.

SO THAT TIME PERIOD, SOMETHING THAT WE DEAL WITH IN AUDIT ALL THE TIME, IT'S JUST THE MAJOR COMPLAINT WE GET FROM CLIENTS IS THAT, IS THAT YOU'RE COMING IN AT THE END, YOU'RE GIVING US RECOMMENDATIONS.

THERE'S REALLY NOT ENOUGH TIME THAT WE CAN APPLY IT IN THE FISCAL YEAR, RIGHT? SO THEY MAY SHOW US THEY HAVE A POLICY, BUT OF COURSE IT WASN'T REALLY APPLICABLE FOR A MAJORITY OF THE FISCAL YEAR.

SO WE LOOK AT THAT, WE LOOK TO MAKE SURE THAT IT'S APPLIED FOR THE FULL YEAR, AND THAT'S WHAT WOULD TRIGGER A NOT IMPLEMENTED IN THAT CASE.

I GUESS MY QUESTION IS MORE OF IS THERE A WAY TO STREAMLINE THE EFFORTS SO THAT THE RECOMMENDATIONS ARE DONE MAYBE ON A QUARTERLY BASIS OR

[01:20:01]

SOME OTHER WAY WHERE THERE'S TIME TO IMPLEMENT IT BEFORE THE END OF THE YEAR IN WHICH YOU'RE DOING THE AUDIT? YEAH, I, I THINK THE, THE RECOMMENDATIONS COME ABOUT AS A RESULT OF OUR AUDIT, RIGHT? SO REALLY, REALLY, WE HAVE TO FINISH THE AUDIT AND, AND COME UP WITH WHAT WE BELIEVE ARE THE ISSUES BASED ON THE OBJECTIVES WE'RE TESTING AND THE DOCUMENTATION THAT WE'RE AUDITING AND THE CONCLUSIONS WE'RE DRAWING.

ONCE WE'RE DONE WITH A PARTICULAR AREA, UH, THEN WE CAN PROVIDE RECOMMENDATIONS, RIGHT? SO IT IS REALLY AS A RESULT OF THE RESULTS THAT WE HAVE THAT WE DRAW THE RECOMMENDATIONS WE PROVIDE, RIGHT? UH, CERTAINLY IF WE IDENTIFIED SOMETHING, UH, DURING THE AUDIT, ESPECIALLY FINANCIAL STATEMENT AUDIT, THEN THOSE ARE THINGS THAT ARE KNOWN, RIGHT? LIKE, WE PROVIDE QUESTIONS, THEY'RE OBVIOUSLY LEADING TO POTENTIAL ISSUES.

THEY'RE AWARE OF IT AT THAT TIME, BUT WHEN WE PROVIDE OUR OFFICIAL RECOMMENDATION IS WHEN WE'RE REALLY DONE TESTING THAT AREA.

SAMPLING APPROACH FOR ANYTHING THAT WE DO IN THE PERFORMANCE AUDIT IS IN ACCORDANCE WITH GENERALLY ACCEPTED, UH, OUR GOVERNMENT AUDITING STANDARDS, RIGHT? SO THE SAME AS OUR FINANCIAL STATEMENT ITEM, UH, FINANCIAL STATEMENT AUDIT.

UM, MR. SULLIVAN, MAYBE ANOTHER NAIVE QUESTION, BUT, UM, I, I'M JUST TRYING TO GET A SENSE OF THE SAMPLE SIZE OF THESE TESTS, AND I GUESS, 'CAUSE YOU KNOW, YOU FOUND, YOU KNOW, INSTANCES WHERE FUNDS WERE CHARGED THE BOND MONEY THAT SHOULDN'T HAVE BEEN.

UM, I'M JUST KINDA WONDERING HOW MUCH ELSE POTENTIALLY IS OUT THERE THAT WASN'T CAUGHT? YEAH, SO THIS REALLY PLAYS INTO OUR RISK ASSESSMENT.

IN THE PRIOR YEAR, WE DID IDENTIFY A NUMBER OF SAMPLES THAT PERTAIN TO INDIRECT COSTS THAT WE DON'T BELIEVE WAS CHARGED APPROPRIATELY TO THE BOND FUND.

THAT'S WHAT LED US IN OUR RISK ASSESSMENT TO MAKE A DETERMINATION THAT WE NEED TO LOOK AT THIS A LITTLE BIT MORE.

SO WE INCREASE OUR SAMPLE SIZE FOR THOSE KINDS OF EXPENDITURES.

SO AS A RESULT OF THAT, WE DID KIND OF GET TO WHAT YOU JUST MENTIONED, IS THAT THERE COULD BE MORE INSTANCES OF THESE OUT THERE, WHICH WE'RE TRYING TO, UH, TRYING TO IDENTIFY.

BUT THE THING ABOUT IT, AGAIN, KIND OF GOING BACK TO WHAT WE TALKED ABOUT EARLIER, IS THAT WHEN WE IDENTIFIED THE ISSUE IN THE PRIOR YEAR, WE GIVE OUR RECOMMENDATIONS AGAIN, IT TAKES TIME TO IMPLEMENT THAT.

UH, AND WE DO, I DID LOOK AT THE TIME PERIOD IN WHICH THESE WERE CHARGED, AND A MAJORITY OF THEM ARE CHARGED IN THE BEGINNING OF THE YEAR, IN THE MIDDLE OF THE YEAR, MAINLY DURING THE TIME IN WHICH THEY WERE OPERATING UNDER THEIR NORMAL POLICY AND PROCEDURE PRIOR TO OUR RECOMMENDATION.

SO THE IDEA HERE AT THE LITMUS TEST, SO TO SPEAK, IS THAT, WELL, LET'S LOOK NEXT YEAR TO SEE IF THAT TWO YEAR TURNAROUND IS GONNA HELP IMPROVE AND DECREASE THE AMOUNT OF FINDINGS WE IDENTIFY AS A RESULT OF THEIR CORRECTIVE ACTION PLAN.

THANK, THANK YOU.

OF COURSE, MR. MR. MR. PANSKY, CAN YOU EXPLAIN, I'LL LET YOU A USD SYSTEMS FOR CHECK AND BALANCES PRIOR TO YOU GETTING INVOLVED.

SO WHEN I HEAR EXPENSES LIKE GAMES AND THINGS OF THAT NATURE, WHICH ARE VERY OBVIOUS NOT TO BE AN EXPENSE, BUT I COULD SEE A PRINCIPLE OR SOMEBODY SUBMITTING AN EXPENSE AND IT GETS INTO THE WRONG HANDS AND IT'S APPROVED WHEN IT SHOULDN'T BE APPROVED.

LIKE, I MEAN, EVERY EXAMPLE YOU USED, UH, TO SHARE IN MY MIND IT'S COMMON SENSE, LIKE IT SHOULDN'T HAVE BEEN PART OF A BUILDING PROCESS.

LIKE IT WASN'T WOOD, IT WASN'T, UH, MATERIALS THAT WERE RELEVANT TO THE PROJECT.

SO HOW DID THAT NOT GET CAUGHT BY L-A-U-S-D? YEAH, I APPRECIATE THAT, MR. PANSKY.

SO I SHOULD START OFF BY BEING CLEAR THAT I SHOULDN'T OVERSTEP THE DISTRICT AND PROVIDING AN EXPLANATION FOR WHY THAT OCCURRED.

UH, IT REALLY SHOULD BE THE DISTRICT TO PROVIDE YOU WITH WHY IS IT THAT IT PASSED THROUGH THE CHECKS AND BALANCES? WHAT I COULD SAY IS THAT WE IDENTIFY THREE INSTANCES IN WHICH THAT OCCURRED.

THE OTHER SAMPLES ARE MORE INDIRECT COSTS RELATED.

IT'S NOT NECESSARILY THAT THOSE COSTS ARE NOT PERMISSIBLE UNDER THE BOND FUND.

IT'S THAT WE NEED TO MAKE A DETERMINATION, HOW DO WE ASSESS THE BENEFICIAL USE, RIGHT? THESE ARE THREE INSTANCES, ABOUT SEVEN 70, $700 IN WHICH IT'S VERY CLEAR SHOULDN'T HAVE BEEN CHARGED BASED ON OUR ASSESSMENT OF THE OVERALL RESULTS.

WE'RE ASSESSING THAT THERE'S VERY STRONG INTERNAL CONTROL AND MAKING A DETERMINATION THAT COSTS, THAT OUR BOND PERMISSIBLE SHOULD ONLY BE CHARGED TO THE BOND FUND.

BUT YOU ARE CORRECT IN THAT WE IDENTIFIED INSTANCES IN WHICH THESE WERE CHARGED.

AND I REALLY DO BELIEVE IT WOULD BE BEST FOR THE DISTRICT TO ADDRESS THAT IN TERMS OF WHY THAT OCCURRED, RIGHT? FOR US, IT'S, WELL, IT DID OCCUR, GET IT OUT THERE, AND HOW ARE YOU GONNA MAKE SURE IT DOESN'T HAPPEN AGAIN IN THE FUTURE? IN, IN THE BIG PICTURE THINGS.

THESE ARE SMALL EXPENSES, BUT IT JUST, I'M CURIOUS WHAT THE CHECK AND BALANCES ARE.

SO THAT'S SOMETHING THEY'LL, THEY'LL ADDRESS IN THE FUTURE.

THANK YOU MR. CAMPBELL.

THANKS FOR YOUR PRESENTATION.

FOLLOWING UP ON A QUESTION THAT MR. SULLIVAN HAD, YOUR, YOUR SAMPLES, FOR EXAMPLE, OF PAYROLL EXPENDITURES OUT OF BOND FUNDS, ARE THEY BASED, IS YOUR SAMPLE SIZE AND SELECTION BASED ON, ON RISK AND INTENDED TO BE REPRESENTATIVE OF THE POPULATION? YEAH, SO, SO OUR

[01:25:01]

SO OUR SAMPLE SELECTION FOR THE NON-PAYROLL SAMPLES, ALSO FOR PAYROLL SAMPLES ARE BASED ON THAT.

UH, FOR YOUR FINANCIAL STATEMENT TESTING, YOU WOULD TYPICALLY NOT PICK A FULL YEAR OF EXPENDITURES FOR A PARTICULAR SAMPLE, BUT THAT'S WHAT WE'RE DOING IN THE PERFORMANCE AUDIT.

SO WE'RE TAKING THOSE 80 EMPLOYEES AND WE'RE TESTING EVERY SINGLE PAYROLL PERIOD DURING THE FISCAL YEAR TO, TO REALLY GET TO THE RISK OF, WELL, COULD YOU BE DOING SOMETHING IN A PARTICULAR MONTH THAT WE DIDN'T LOOK AT? SO IT'S LIKE, OKAY, NOW WE'RE GONNA LOOK AT THE FULL YEAR'S WORTH OF WORK, THE BODY OF WORK DURING THE FISCAL YEAR, WHICH REALLY DOES GO A LITTLE BIT ABOVE AND BEYOND WHAT YOU WOULD TYPICALLY SEE IN A STATISTICAL TEST.

UH, BUT YES, TO ANSWER YOUR QUESTION, IT IS IN LINE WITH THOSE STANDARDS, RIGHT? SO IF I HEARD YOU CORRECTLY, WITH RESPECT TO THREE EMPLOYEES, YOU IDENTIFIED ABOUT $90,000 OF QUESTION PAYROLL EXPENDITURES THAT WERE NOT FOR THINGS THAT WERE NOT BOND ELIGIBLE.

HOW, HOW DOES THAT EXTRAPOLATE THEN, UNDERSTANDING THAT YOU'RE NOT CONDUCTING A 100% REVIEW OF EVERY PAYROLL TRANSACTION, AND, AND THAT'S CONTRARY TO THE PURPOSE OF AN AUDIT.

HOW, HOW DO WE THEN EX EXTRAPOLATE THAT, UH, UH, FINDING TO THE UNIVERSE OF BOND FUNDED PAYROLL EXPENDITURES AND ENSURE THAT THE ENTIRETY OF THOSE ARE, ARE ASSESSED MAYBE BY THE DISTRICT, RIGHT? YEAH.

FOR THE SAME TYPES OF ISSUES THAT LED TO, UM, THESE MIS CHARGES AND THAT, AND THAT THE ENTIRETY OF THAT MONEY THEN IS RETURNED TO THE BOND PROGRAM.

YEAH, SO I, I THINK WHAT YOU'RE TALKING ABOUT IS THE GLOBAL REVIEW, RIGHT? NOT JUST OUR SAMPLES, RIGHT? SO THE IDEA IS THAT YOU CAN DRAW A CONCLUSION THAT THERE COULD POTENTIALLY BE OTHER MISSTATEMENTS THAT EXIST IN THE POPULATION THAT WE COULD SAMPLE FROM JUST BASED ON WHAT WE REVIEWED, RIGHT? SO, UH, I'M SURE YOU'RE WELL KNOWN, BUT THE IDEA HERE IS THAT WE LOOK AT THE EXCEPTIONS THAT WE IDENTIFIED TO MAKE A DETERMINATION IF THERE IS A SYSTEMIC ISSUE OCCURRING THAT COULD BE AFFECTING MANY OTHER SAMPLES IN THE POPULATION, OR IF IT'S AN ISOLATED INCIDENT.

I DON'T THINK THIS FALLS INTO ANY OF THOSE.

I I THINK THIS IS SOMEWHAT IN THE MIDDLE IN WHICH IT'S VERY CLEAR.

IT'S VERY CLEAR WHAT THE ISSUE IS, IS THAT THESE EMPLOYEES DIDN'T HAVE A CODE TO CHARGE FOR THEIR ROUTINE MAINTENANCE WORK.

WE'VE, WE'VE SEEN THIS IN THE PAST, AND ACTUALLY WE'VE HAD CORRECTIVE MEASURES IN WHICH WE'VE ASKED THE DISTRICT TO OPEN THOSE UP FOR ALL EMPLOYEES AND HAVE SEEN THAT THEY'VE CREATED NEW CODES FOR THOSE EMPLOYEES.

UM, NOW AS IT PERTAINS TO THE DISTRICT'S REVIEW, THAT'S CERTAINLY VERY, THAT IS A VERY ASTUTE POINT THAT YOU'RE MAKING IN TERMS OF, WELL GO BACK AND TAKE A LOOK AND SEE IF THERE'S OTHER INSTANCES IN WHICH THIS OCCURRED AS IT PERTAINS TO OUR AUDIT.

NOW WE HAVE A FOCUS THAT WE CAN LOOK AT NEXT YEAR AS PART OF OUR RISK RISK ASSESSMENT.

ARE THERE OTHER INDIRECT COST CATEGORIES OR DEPARTMENTS OR FUNCTIONS WHICH MAY NOT HAVE THE SAME LEVEL OF CODING AVAILABLE? RIGHT.

UM, THESE THREE EMPLOYEES, WERE NOT NECESSARILY FROM THE SAME EXACT GROUP IN WHICH WE CAN ISOLATE THAT AND SAY, THERE'S A PROBLEM HERE.

BUT I DO BELIEVE THAT THIS IS SOMETHING THAT WE'RE GONNA LOOK AT NEXT YEAR WITH REGARDS TO OUR RISK ASSESSMENT PROCEDURES TO DETERMINE IF THERE ARE OTHER SAMPLES THAT MAY EXIST IN THIS SIMILAR FASHION.

I THINK THAT'S SOMETHING I WOULD WANT TO HEAR FROM THE DISTRICT ON.

SO YOUR, YOUR FINANCIAL AUDIT REPORT STATES ON PAGE TWO THAT YOU'RE REQUIRED TO COMMUNICATE WITH THOSE CHARGED WITH GOVERNANCE REGARDING, AMONG OTHER MATTERS, THE PLANNED SCOPE AND TIMING OF THE AUDIT.

THE BOC IS A NAMED ADDRESSEE OF ALL OF YOUR AUDIT REPORTS THAT ARE BEFORE US TODAY.

CAN YOU CONFIRM FOR THE RECORD WHETHER YOU COMMUNICATED THE PLAN, SCOPE AND TIMING OF ANY OF THESE AUDITS TO THE BOC, PRIOR TO OR DURING THE AUDIT PLANNING PHASE? AND IF SO, WHEN INTO WHOM? GOTCHA.

ESSENTIALLY A YES OR NO QUESTION.

SO, YOU KNOW, I, I WOULD LIKE TO, I'M GONNA ADDRESS THE QUESTION.

I THINK WHAT'S VERY IMPORTANT FOR ME AS THE AUDIT PARTNER IS TO ADDRESS THE SUFFICIENCY OF OUR AUDIT.

UH, NUMBER ONE, OUR AUDIT IS GOVERNED BY, UH, GOVERNMENT AUDITING STANDARDS.

THOSE STANDARDS REQUIRE US TO, AS WE'VE KIND OF DISCUSSED THROUGHOUT THE PRESENTATION, CONDUCT A RISK ASSESSMENT.

THAT RISK ASSESSMENT AND OUR, AND OUR VIEW OF THE STANDARDS INCLUDE A MULTIPLE OF PROCEDURES THAT WE COULD PERFORM.

WE LOOK AT INTERNAL CONTROLS, WE CONDUCT ANALYSIS OF THE NUMBERS OF THE DISTRICT.

WE DO LIKE DATA ANALYTICS, SUBSTANTIVE ANALYTICS, UH, AND WE LOOK AT REVIEW OF PRIOR YEAR FINDINGS, WHICH CAN HELP GUIDE US IN TERMS OF WHAT POTENTIAL RISK CAN OCCUR IN THE CURRENT YEAR.

AND WE CAN ALSO INCLUDE IN THAT DISCUSSIONS WITH PERSONNEL, AND ALSO CAN CONSIDER INFORMATION FROM OVERSIGHT BODIES.

SO THOSE ARE ALL ELEMENTS THAT CAN BE USED AS PART OF OUR RISK ASSESSMENT.

UM, OUR RISK ASSESSMENT WITH THE DISTRICT IS DESIGNED TO BE ABLE TO ADDRESS THE CONCERN THAT WE ARE OUTLINING IN, IN THE PERFORMANCE AUDIT, WHICH WE TALKED ABOUT MULTIPLE TIMES, THAT MAIN OBJECTIVE.

AND WHAT WE'RE DOING IS WE'RE PREPARING AUDIT PROCEDURES TO ADDRESS THAT RISK AND TO BE ABLE TO OBTAIN SUFFICIENT APPROPRIATE AUDIT EVIDENCE TO SUPPORT THE FINDINGS, RIGHT, THAT WE HAVE OUTLINED IN THE AUDIT.

YOU'RE TALKING ABOUT YOUR AUDIT METHODOLOGY.

I'M ASKING YOU

[01:30:01]

YOU BROUGHT UP GOVERNMENT AUDITING STANDARDS, SECTION 1.04 LISTS, OVERSIGHT BODIES AS AN EXAMPLE OF THOSE, QUOTE UNQUOTE CHARGED WITH GOVERNANCE, THE LANGUAGE USED IN YOUR AUDIT LETTER.

DID YOU COMMUNICATE WITH THE BOC OR ANY MEMBER OF IT AS PART OF THE AUDIT PLANNING PROCESS? I WILL GO BACK TO A NOVEMBER, 2025 EMAIL YOU SENT IN RESPONSE TO AN INQUIRY FROM BOC STAFF, IN WHICH YOU INDICATED THAT YOU PLANNED A KICKOFF MEETING FOR EARLY DECEMBER AND WOULD BE IN TOUCH SOON.

I HAVE SURVEYED THE BOCI, I HAVE NOT FOUND ANY INDICATION THAT THERE WAS SUCH A KICKOFF MEETING.

WAS THERE AN AUDIT ENTRANCE CONFERENCE? WAS THERE COMMUNICATION WITH THE BOC AS WE'VE REQUESTED REPEATEDLY OVER THE LAST SEVERAL YEARS AS PART OF THE AUDIT PLANNING PROCESS? YEAH.

MR. CAMPBELL, MY ANSWER TO YOU IS, IS THAT THE INVOLVEMENT OF THE OVERSIGHT COMMITTEE AND THE AUDIT PLANNING, UH, OR AS IT PERTAINS TO PARTICIPATION IN KICKOFF MATTERS, FOR ME, THAT'S A GOVERNANCE ISSUE.

UH, THAT IS NOT AN ISSUE THAT WE AS YOUR INDEPENDENT AUDITOR SHOULD OPINE ON IN TERMS OF THE GOVERNANCE RELATIONSHIP THAT YOU HAVE WITH THE DISTRICT.

SO YOU ARE RESPONSIBLE FOR YOUR FIRM'S COMPLIANCE WITH AUDITING STANDARDS, THOUGH, CORRECT? RIGHT.

AND, AND, UH, AND, AND OUR RESPONSE TO YOU, WE OUTLINE HOW WE ARE, UH, IN LINE WITH OUR AUDITING STANDARDS.

AND THAT'S WHAT I WAS ATTEMPTING TO GET TO, IS TO EXPLAIN THE RELATIONSHIP THAT THE REQUIREMENTS THAT WE HAVE BASED ON OUR STANDARDS, THE INDEPENDENCE REQUIREMENTS THAT WE HAVE TO MAINTAIN THE RISK ASSESSMENT AND PLANNING THAT WE HAVE TO MAINTAIN, NONE OF THOSE ARE, UH, GOING TO BE NEGATIVELY IMPACTED, UM, AS A RESULT OF OUR RELATIONSHIP WITH WHAT WE'RE DOING HERE WITH THE DISTRICT.

I MEAN, WHAT I'M REALLY TRYING TO GET AT MR. CAMPBELL, IS THAT THOSE GOVERNANCE QUESTIONS REALLY SHOULD BE ADDRESSED BY THE DISTRICT AS THE ENGAGING PARTY.

IT REALLY SHOULD BE THE DISTRICT THAT SHOULD ADDRESS QUESTIONS THAT YOU HAVE AS IT PERTAINS TO OVERSIGHT COMMITTEE'S INVOLVEMENT IN THE AUDIT PROCESS.

AND I'M, AND I'M HAPPY TO POSE THOSE TO THEM.

AND, AND I WILL, I I'M SIMPLY ASKING YOU A YES OR NO QUESTION OF WAS THE BOC ENGAGED? AND THAT'S THE THIRD TIME I'VE ASKED IT.

NOT HAVING RECEIVED AN ANSWER, I, I WILL TAKE THE ANSWER AS NO.

UM, I WILL NOTE THAT THE GOVERNMENT, UH, I'M SORRY, THE ED CODE DEFINES THE BO C'S PURPOSE IN ALMOST THE SAME TERMS THAT TRACK EXACTLY WITH GAGA'S DEFINITION, AND THAT THE BOC EXISTS TO OVERSEE THE PROPER EXPENDITURE OF TAXPAYERS MONEY ON THE BOND PROGRAM TO ADVISE THE PUBLIC WHETHER THE DISTRICT COMPLIES WITH THE REQUIREMENTS OF ARTICLE 13 A OF THE CONSTITUTION, AND TO ACTIVELY REVIEW AND REPORT.

AND I WOULD SAY THAT UNDER ANY DEFINITION, UNDER GOVERNMENT AUDITING STANDARDS, THAT WE ARE A BODY THAT IS CONTEMPLATED BY THE STATEMENT THAT YOU PROVIDE IN YOUR COVER LETTER.

AND SO, UM, OUR REQUEST, NOTWITHSTANDING THE FACT THAT WE HAVE NOT BEEN ENGAGED IN THAT, I THINK, POINTS TO A POTENTIAL AREA OF NONCONFORMANCE WITH THE STANDARDS.

UM, WELL, I, I, I DON'T DISAGREE WITH MR. MUSA.

I THINK THOSE ARE QUESTIONS THAT ARE MORE APPROPRIATELY, UH, POSED TO THE DISTRICT.

MR. PANSKY, GO AHEAD AND SPEAK INTO THAT'S A GOOD POINT YOU'RE MAKING.

SO IT'S, IT'S FOR THE RECORD.

SO I UNDERSTAND WHAT YOU'RE ASKING, ROBERT, AND IT'S VERY VALID, AND I SEE WHAT HE'S SAYING IN REGARDS TO COMMUNICATING WITH L-A-U-S-D.

BUT MY QUESTION TO YOU, WHICH I CAN JUST ASK DIRECTLY, IS IN THE EMAIL YOU SENT HIM, YOU SAID YOU LOOK FORWARD TO SEEING HIM IN THE MEETING IN DECEMBER, EVEN THOUGH WE WEREN'T THERE.

WAS THERE A MEETING HELD IN DECEMBER WITH L-A-U-S-D? WELL, THE MEETING WAS HELD IN JANUARY, AND ABSOLUTELY WE HELD MEETINGS IN TERMS OF ENTRANCE MEETINGS WITH OUR CLIENTS ALL.

SO IT WAS HELD IN JANUARY? THAT IS CORRECT, YES.

SO YOU DID HAVE AN AUDIT ENTRANCE CONFERENCE? THAT'S CORRECT.

AND, AND, AND I, I, DID MR. CAMPBELL RESPOND TO YOUR EMAIL CONFIRMING THAT WE DID? HELL, WE DID HOLD A CONFERENCE IN WHICH WE DID REVIEW ALL OF THE APPROPRIATE ELEMENTS AND REQUIREMENTS OF OUR COMMUNICATION AT THE BEGINNING OF THE AUDIT WITH REGARDS TO PLANNING, WITH REGARDS TO TIMELINE, WITH REGARDS TO THE SCOPE OF THE AUDIT.

SO THAT WAS CONDUCTED, AND I'M CONFIRMING THAT WE DID DO THAT WITH DISTRICT OFFICIALS.

QUESTIONS, BUT IN THE INTEREST OF TIME, PERHAPS I'LL SUBMIT THEM TO YOU IN THE DISTRICT IN WRITING AND SHARE THEM WITH THE REST OF THE BOC FOR THE RECORD, I CONTINUE TO BELIEVE THAT IT WOULD BE POSITIVE FOR EVERYONE WHO IS A STAKEHOLDER IN THE USE OF THESE BOND FUNDS, INCLUDING THE DISTRICT, THAT WE SIMPLY HAVE COMMUNICATION AS PART OF THE AUDIT PLANNING PROCESS, SO THAT THE BOC CAN SHARE AS AN OVERSIGHT BODY AS CONTEMPLATED IN THE AUDITING STANDARDS AND, AND AS ESTABLISHED BY LAW, UM, OUR PERSPECTIVE ON RISK AREAS, AREAS OF CONCERN, UH, THAT ARE NOT CURRENTLY BEING CAPTIONED IN, IN YOUR AUDIT PLANNING PROCESS.

AS, AS A BODY CHARGED WITH OVERSIGHT.

AND ONE OF THE ADDRESSES OF THE ONLY TWO ADDRESSES OF THE AUDIT REPORTS BEFORE US, UM, WE WERE NOT INCLUDED.

AND, AND I GUESS WHAT YOU'RE TELLING ME IS, IS CONTRADICTORY TO CORRESPONDENCE I RECEIVED FROM MR. RASNICK IN FEBRUARY, WHICH STATES, AND I QUOTE, WE HAVE NOT HAD A FORMAL AUDIT ENTRANCE MEETING YET THIS YEAR.

SO I, I DON'T KNOW HOW TO SQUARE OR RECONCILE, UH, THOSE TWO STATEMENTS.

BUT, UH, I WILL BE INTERESTED TO HEAR, UM, WHAT CORRESPONDENCE THERE WAS AROUND THAT.

I, I HAVE A NUMBER OF OTHER SPECIFIC

[01:35:01]

AND FRANKLY, I JUST DON'T UNDERSTAND THE REPEATED RESISTANCE TO THIS.

IT, IT JUST MAKES NO SENSE TO ME AT ALL.

I DON'T SEE ANY GOOD BUSINESS REASON FOR IT.

AND BECAUSE THERE'S NOT A GOOD REASON FOR IT.

IT'S, IT'S FRANKLY, ALARMING.

SO THAT, I, THAT'S ALL I HAVE.

QUICKLY OUT OF, UH, RESPECT, AND WE DO HAVE FIVE ACTION ITEMS, AND IT'S 1140, BUT HOWEVER, UM, I DO WANT TO INVITE, UM, MR. JAIME TORRENS, WHO'S THE, UH, SENIOR ADVISOR TO THE SUPERINTENDENT'S OFFICE REAL QUICKLY.

UH, THANK YOU.

IS WE'VE GOT FIVE MORE ACTION ITEMS. SO, YEAH, I'M SORRY.

I APPRECIATE, I THINK THIS GOOD POINT, UH, MR. CAMPBELL CAN CONTINUE TO FORWARD HIS COMMENTS FROM HIS REVIEW OF THE DOCUMENTS THAT, AND WE GOT THOSE A LITTLE LATE YESTERDAY.

SO IT'S, YOU KNOW, HAVING TIME TO PREPARE FOR IT, SO WE CAN GET THOSE OVER TO YOU AND WE CAN CONTINUE THIS DIALOGUE.

[3. BOC Charter and MOU Overview (Information Only) (Part 2 of 2)]

UM, THIS IS RELATIVE TO ITEM NUMBER THREE, WHICH WAS OUR MOU.

AND YOU CAN UNDERSTAND WE'VE GOT ZERO TIME LEFT TODAY.

BUT THANK YOU FOR, FOR STOPPING BY.

OH, THANK YOU, MR. CHAIR.

AND, AND, UH, BOC MEMBERS, UH, JUST, UH, I KNOW, I KNOW YOU MADE AN ANNOUNCEMENT EARLIER, MR. HAMNER, ABOUT THE, HAVING RECEIVED OUR COMMENTS.

WE LOOK FORWARD TO, AS I EXPRESSED TO YOU, TO WORKING WITH THE TASK FORCE.

UH, I APOLOGIZE FOR, WE'RE TRYING TO GET THIS DONE BY THE END OF MARCH, UH, FOR, FOR THE DELAY.

BUT WE'RE HAPPY THAT WE'RE, WE CAN HAVE THE DIALOGUE NOW AND, AND GET MOVING ON THIS.

SO LOOK FORWARD TO SCHEDULING SOME MEETINGS WITH YOU.

THE AGENDA IS ITEM NUMBER FIVE.

NOT TO PUT YOU ON THE SPOT FOR ANY QUESTIONS, 'CAUSE THAT'S NOT, WE, WE'VE GOTTA KEEP MOVING ON.

BUT THANK YOU FOR, FOR DOING THAT.

I HAVE SHARED WITH OUR, OUR TASK FORCE COMMITTEE, AND I FORWARDED ALREADY, UH, YOUR COMMENTS.

SO THANK YOU VERY MUCH, AND WE'LL BE IN TOUCH VERY QUICKLY.

YOU KNOW, ABSOLUTELY .

[5. A Project to Purchase Electric School Buses, and Amend the Transportation Services Branch’s Strategic Execution Plan to Incorporate Therein]

THIS IS A, UM, ACTION ITEM.

IT'S ONE OF OUR NEXT, UH, FIVE ITEMS. ITEM NUMBER FIVE IS THE PURCHASING OF, OR A PROJECT TO PURCHASE ELECTRIC SCHOOL BUSES.

AND I'D LIKE TO INVITE ALREADY HERE, UH, MR. CRYSTALS KLU, THE CHIEF ECO SUSTAINABILITY OFFICER, AND MR. DANIEL KANG, THE DIRECTOR OF TRANSPORTATION SERVICES, TO MAKE YOUR PRESENTATION GOOD.

STILL.

MORNING.

GOOD MORNING.

YOU'VE BEEN HERE, YOU'VE BEEN HERE SINCE WE STARTED.

STILL MORNING, STILL MORNING.

CONGRATULATIONS ON A VERY WELL DESERVED AWARD.

THANK YOU VERY MUCH, MR. CHAIR AND MR. PANSKY, WELCOME BACK AND CONGRATULATIONS AS WELL.

SO, UM, SO MR. CHAIR, MEMBERS OF THE COMMITTEE, GOOD MORNING AND HAPPY EARTH MONTH.

UM, AS WE CLOSE IN APRIL AND HEADING TO A NEW MONTH, I WANTED TO REMIND EVERYONE THAT L-U-S-D-E SUSTAINABILITY OFFICE CELEBRATES EARTH DAY AS EVERY DAY AND IN CELEBRATION OF THE EARTH MONTH.

I WANTED TO TAKE THIS OPPORTUNITY TO SHARE WITH YOU THE RELEASE OF OUR 24 25 ANNUAL REPORT.

I HAVE A COPY HERE FOR YOU TODAY.

I THINK YOU'RE GONNA FIND IT VERY ALIGNING, AND, UH, YOU CAN FIND IT AND DOWNLOAD IT@ESODOT.ORG.

AND THIS REPORT REFLECTS ALL THE MEANINGFUL PROGRESS THAT WE'RE MAKING TOWARDS MAKING LST THE MOST SUSTAINABLE AND ENVIRONMENTALLY FRIENDLY, RESPONSIBLE, LARGE URBAN SCHOOL DISTRICT IN THE NATION.

AND I HOPE YOU FIND IT AS INSPIRING AS I DO.

SO THE COPY IS HERE, I'LL SHARE WITH YOU AFTER.

SO, BUT NOW LET'S GO DOWN TO BUSINESS.

AND I WANNA MAKE SURE THAT I, I GO THROUGH MY PRESENTATION THAT I HAVE FOR YOU TODAY, UM, WHICH I HAVE THE UNIQUE PLEASURE TO PRESENT ON THE PURCHASE OF 79 ELECTRIC BUSES AND REQUEST AUTHORIZATION FOR THE ALLOCATION OF $12.5 MILLION, UM, THROUGH MEASURE RR, UH, FUNDS TO SUPPORT THE PURCHASE OF ELECTRIC SCHOOL BUSES AND AMEND THE TRANSPORTATION SERVICES BRANCH S EXECUTION PLAN TO INCORPORATE HEREIN, UM, THE PROCUREMENT OF THE 79 ELECTRIC BUSES IS A PART OF A BROADER, COMPREHENSIVE EFFORT THAT WILL BRING THE NECESSARY INFRASTRUCTURE TO FULLY ELECTRIFY OUR SON JULIAN BUZZARD AND IMPLEMENT A WORKFORCE DEVELOPMENT BUS MAINTENANCE AND TRAINING PROGRAM AT THE USD.

THIS IS ACTUALLY A STRATEGY THAT'S BEEN THE WORST FOR ALMOST,

[01:40:01]

I WILL SAY, ALMOST THREE YEARS RIGHT NOW.

AND, UH, THE STRATEGY INCLUDED FROM THE BEGINNING, PLANNING, WORKING WITH THE DEPARTMENT OF WATER POWER, ENGAGING AT THE LOCAL, STATE AND FEDERAL TO BE ABLE TO APPLY FOR GRANTS.

AND, UH, THROUGH THAT, WE'RE ABLE TO, UH, SUCCESSFULLY SECURE APPROXIMATELY 21 MILLION TOWARDS THE, UH, TO SUPPORT OUR SCHOOL BUSES.

AND, UH, THE GROUNDS THAT WE APPLIED FOR AT THE TIME WAS THE ENVIRONMENTAL PRO PRODUCTION AGENCY THROUGH THE CLEAN HEAVY DUTY VEHICLE FOR 6 MILLION ON THE CARL MOYER THROUGH THE AIR QUALITY MONITORING DISTRICT, AND THROUGH THE, UH, FOR 4.9 MILLION, AND THEN THROUGH THE ZES P ONE AND TWO, THE ZERO ENERGY SCHOOL BUS INFRASTRUCTURE INCENTIVE PROGRAM FOR ANOTHER, UM, APPROXIMATELY 10 MILLION.

SO, UM, WE HAVE A, WE PRETTY MUCH, WE HAVE A, JUST TO GIVE YOU A BREAKDOWN BETWEEN THE FEDERAL AND STATE, UH, SOURCES, WE CAN BE ABLE TO COVER ABOUT 62% OF THE COST FOR THE PASSES.

AND OUR ASK FOR MEASURE RR IS APPROXIMATELY 38%.

NOW, I WANTED TO SHARE THAT, UH, MEETING WITH OUR CHIEF FINANCIAL OFFICER.

WE HAVE 22 MILLION AVAILABLE FOR MEASURE RR FUNDS TO SUPPORT THIS ALLOCATION.

SO, UM, THIS IS VERY EXCITING FOR US BECAUSE OF, UH, THE BACKGROUND AND INFORMATION I'LL BE SHARING RIGHT NOW.

SO THIS IS ALIGNED WITH OUR RESOLUTION THAT PASSED IN 2019 TO TRANSITION, UM, LA UNIFIED TO A HUNDRED PERCENT CLEAR RENEWABLE ENERGY, UH, BY 2030 AND CLEAN, CLEAN ENERGY NORTH SECTORS BY 2040.

SO THIS ALIGNS WITH THE 2040, UM, YOU KNOW, MARK, WHICH IS, IT'S GONNA HELP US, UH, CONTINUE THE EFFORTS THAT WE HAVE IN OUR PLANNING.

SO WE KNOW, UH, UH, WE ALL KNOW THIS, BUT I'LL SHARE IT, THAT IN TERMS OF THE, THE HARMFUL, UM, UH, ENVIRONMENTAL IMPACTS THAT FOSSIL FUEL HAS AND HOW THEY'RE POLLUTING OUR AIR, I MEAN, I PERSONALLY STOPPED THIS MORNING TO GET SOME GAS, AND I CAN TELL YOU EVERY TIME YOU, YOU, YOU FIND YOURSELF BEHIND A BUS OR TRYING TO PUT SOME, UH, UH, ANY KIND OF FUELS, FOSSIL FUELS IN YOUR CAR, YOU ARE EXPOSED TO ALL THOSE HARMFUL CHEMICALS.

AND FOR US, UM, WE WANT TO BE ABLE TO TRANSITION FOR THAT SO WE CAN PROVIDE A HEALTHIER, CLEANER, UM, MORE SUSTAINABLE AND MORE RESILIENT FUTURE FOR OUR STUDENTS.

SO THESE REQUESTS THAT WE'RE ASKING FOR, IT WILL HELP SUPPORT THE, UH, PURCHASE OF OUR 79 BUSES.

FEW THINGS THAT HERE THAT I WANTED TO SHOW IN, IN TERMS OF WHEN YOU LOOK AT THE ENVIRONMENTAL, UH, CONDITIONS THAT WE ARE, WE'RE, AS WE GO THROUGH, AND IT'S, I THINK IT'S IMPORTANT TO RECOGNIZE THAT AS WE GO THROUGH THIS, THAT HOW IMPORTANT IT'S TO HELP IMPROVE OUR HEALTH AND WELLBEING OF OUR STUDENTS, STAFF, AND COMMUNITIES THAT WE SERVE WITH CLEANER AIR.

UM, THIS IS GONNA HELP US ACTUALLY TO REDUCE OUR OPERATING EXPENSES.

AS I GO THROUGH, YOU'RE GONNA BE ABLE TO SEE HOW WE'RE ABLE TO, UM, SAVE APPROXIMATELY, CLOSE TO $2 MILLION PER YEAR OUT OF OUR GENERAL FUND TO HELP SUPPORT, UM, AT LEAST, UH, THE, THE EXPENSES, POWER TRANSPORT, TRANSPORTATION, TRANSPORTATION DEPARTMENT IS GONNA CREATE NEW GREEN JOBS.

IT'S GONNA, WE'RE ACTUALLY AT THE TIPPING POINT FOR MIDDLE HEAVY DUTY BUSES TO, UH, THROUGH ELECTRIFICATION.

THIS IS NOT JUST US.

THIS IS HAPPENING THROUGHOUT, UH, THE STATE.

UH, THE STATE IS LEADING THAT EFFORT.

AND THEN IT'S ALSO GONNA GIVE US THAT RESILIENCY THAT WE'RE LOOKING FOR TO HELP SUPPORT, UM, OUR UTILITY COMPANIES.

BECAUSE A LOT OF THE, UH, WORK THAT WE'RE PLANNING HERE IS TO BE ABLE TO HAVE A VEHICLE TO GRID TECHNOLOGY.

UH, SO WHILST WE GETTING ENGAGED WITH SOME OF THE PROGRAMS THAT WE'RE SEEING OUT THERE, SO WE'RE GONNA BE ABLE TO GIVE SOME OF THE ENERGY BACK TO THE UTILITY GRID AS WE MOVE FORWARD.

SO LESS COM, UH, POLLUTION FOR OUR COMMUNITY, AND REDUCING OUR COST EMISSIONS FOR, UH, UH, A BASE EMISSIONS FOR A HEALTHIER, SUSTAINABLE, UH, FUTURE.

SO, UM, AGAIN, MORE INFORMATION ABOUT THE ENVIRONMENTAL BENEFITS.

I THINK IT'S, UH, IT'S IMPORTANT TO UNDERSTAND, UM, THE, THE, THE TRANSITION, WHAT, HOW IS IT GONNA BENEFIT OUR SCHOOL DISTRICT, BUT ALSO HOW IT'S GONNA BENEFIT OUR ENVIRONMENT.

AND, UH, WHAT I WANT TO SHARE HERE IS THAT, UH, AS WE GO THROUGH THE PROCESS, WE'RE LEARNING A LOT MORE, UM, SPECIFICALLY ABOUT HOW THESE BUSES WILL SERVE A LOT OF THE COMMUNITIES THAT, UH, THEY REALLY TAKE, UH, UH, PASSES OUT TRANS AS TRANSPORTATION.

SO IT'S GONNA REDUCE THE ENVIRONMENTAL BURDENS ON COMMUNITIES DISPROPORTIONATELY AFFECTED BY HEAVY DUTY VEHICLE POLLUTION, NEAR TRANSPORTATION CORRIDORS AND BUS DEPOTS.

AND IT'S GONNA HELP THOSE, UH, UM, UH, THOSE KIDS THAT DO TAKE THE BUSES EVERY DAY.

AND, UH, AND THEN WITH THAT, UH, IT'S GONNA HELP US ACCELERATE OUR TRANSITION AND ALSO MEET, UH, STATE GOALS.

STATE GOALS ACTUALLY, UM, HAVE BEEN CHALLENGED, UM, AS YOU KNOW, BY DIFFERENT ADMINISTRATIONS, WE'RE SEEING THAT, UM, UH, THE GOALS IS TO ACHIEVE CARPAL NEUTRALITY BY 24, 20 45.

AND,

[01:45:01]

UH, THE SAME THING WITH OUR MEDIUM AND HEAVY TRACK IS TO REACH A HUNDRED PERCENT ZERO EMISSION, WERE FEASIBLE BY 2045.

SO THIS IS ALIGNED WITH THE STATE GOALS, BUT ALSO WITH OUR GOALS THAT WE HAVE INTERNALLY AND AS PASSED BY THE RESOLUTION TO BE ABLE TO HELP DEVELOP, UM, UH, UH, HEALTHY, CLEAN, CLEAN ENVIRONMENTS FOR OUR SCHOOLS.

SO, UM, THIS IS PART OF A BIGGER PLAN.

SO WHAT I'M SHARING HERE IS A PLAN FOR ST.

JULIAN.

AND AS YOU CAN SEE HERE, UM, UH, WE'RE SHOWING THE TOTAL OF, OF UP TO 79 EV BUS CHARGERS.

OUR PLAN, IT IS TO GO TO THE BOARD OF EDUCATION ON MAY 12TH TO REQUEST TO APPROVE THE ELECTRIFICATION OF ST.

JULIAN AND THE ASSOCIATE INFRASTRUCTURE.

AND AS YOU CAN SEE HERE, THE 79 BUSES, UM, WILL HAVE SUPPORTING INFRASTRUCTURE TO SUPPORT THEM THROUGHOUT THIS PROCESS.

AND, UH, THERE'S SOME OTHER ASSOCIATE ELEMENTS THAT WILL COME UP WITH IT.

SO, UH, WE'LL, WE, WE'LL ALSO BE, BESIDES THE CHARGING INFRASTRUCTURE THAT WE HAVE IN PLACE, WE'LL BE ABLE TO HAVE WORKFORCE DEVELOPMENT.

AND I THINK THE WORKFORCE DEVELOPMENT IS A, IT'S A, IT'S A, IT'S A BIG COMPONENT OF THIS THAT, UM, IT IS A PART OF THE EPA, THE ENVIRONMENTAL PRO POSITION AGENCY.

AND, UH, UH, WITH OUR DIVISION OF ADULT AND CAREER EDUCATION, WE DEVELOP AN ENHANCED CURRICULUM FOCUSED ON ELECTRIC SCHOOL BUS MAINTENANCE AND REPAIR, INCLUDING 300 HOURS OF TARGETED INSTRUCTION.

UM, THIS TRAINING WILL STRENGTHEN THE DISTRICT'S O CAPACITY TO MAINTAIN ITS ELECTRIC BUS FLEET AND SUPPORT CAREER ADVANCEMENT OPPORTUNITIES.

UM, ADDITIONALLY WHAT I WANT TO SHARE IS THAT THE, UH, THIS PROJECT WILL GENERATING A RECURRING COST AVOIDANCE OF APPROXIMATELY 2 MILLION ANNUALLY TO THE GENERAL FUND.

UM, THE WAY THAT WE HAVE ESTIMATED THIS IS BASED ON HOW MUCH WE'RE SPENDING RIGHT NOW TO MAINTAIN AND FUEL EACH ONE, EACH ONE OF OUR DIESEL BUSES, WHICH APPROXIMATELY IS ABOUT 32,000 PER BUS.

UH, SO IN COMPARISON, WHICH EQUALS TO ABOUT 2.5 MILLION FOR THE 79 BUSES, UH, IF YOU TAKE THAT IN COMPARISON WITH THE, TO MAINTAIN AND POWER EACH ELECTRIC BUS, IT'S, IT'S APPROXIMATELY ABOUT 6,500.

SO, UH, THIS IS APPROXIMATELY ABOUT HALF A MILLION FOR 79 BUSES.

SO THIS TRANSITION FROM DIESEL TO ELECTRIC IS PROJECTED, IS PROJECTED TO RAISE APPROXIMATELY ANNUAL OPERATING COSTS, UM, SUPPORTED BY THE GENERAL FUND BY APPROXIMATELY A LITTLE BIT OVER $2 MILLION.

SO THIS IS A, A GREAT PROJECT THAT WE HAVE BEEN IN PLANNING NOW, LIKE I SAID, FOR THE LAST TWO AND A HALF, THREE YEARS, WORKING WITH THE DEPARTMENT OF WATER EMPOWER.

WE'RE EXCITED TO BE MOVING THIS FORWARD, UH, AS IT'S GONNA HELP SUPPORT OUR GOALS AND OBJECTIVES.

AND, UH, WE'RE HERE FOR YOUR, UH, UH, ALSO REVIEW OUR RECOMMENDATION TO BE ABLE TO, UH, HELP US AUTHORIZE TO USE $12.5 MILLION OUT OF MAJOR RR FUNDING TO SUPPORT THE PROJECT.

SO THE, UH, 79 BASIS IS ESTIMATED AT, UH, 34 MILLION.

UH, WE'RE REQUESTING THE AUTHORITY OF 12.5.

UH, THE CURRENT SCHEDULE IS TO START PROCUREMENT ON THE THIRD QUARTER OF 2027.

AND, UH, AS WE GO THROUGH THE PROCESS TO, UH, PURCHASE THE PASSES THROUGH COMPETITIVE SOLICITATION IS TO MAKE SURE THAT WE COINCIDE THE, THE PASSES PURCHASES WITH THE COMPLETION OF THE INFRASTRUCTURE, WHICH IS SCHEDULED TO BE COMPLETED BY THE FOURTH QUARTER OF 2028.

AND THAT IS WORKING WITH OUR FACILITIES TEAM TO ENSURE THAT WE HAVE, WE WILL HAVE THE INFRASTRUCTURE COMPLETED BY THAT TIME.

SO, UM, WITH, WITH THAT, UM, I'LL OPEN UP TO ANY SPECIFIC QUESTIONS YOU MAY HAVE ABOUT THIS PROJECT AND, UH, UM, UM, AND I'LL BE MORE THAN HAPPY TO HEAR YOUR THOUGHTS.

UH, QUESTIONS MS. DR.

MULLER? YEP.

THANK YOU FOR LETTING US KNOW ALL ABOUT THIS.

DO THE DRIVERS HAVE TO GO THROUGH ANY SPECIALIZED TRAINING OR IS IT, PUT IT IN, GO AND GO.

YEAH, YEAH, THEY DO.

AND I HAVE MR. DANIEL KANG HERE, HE'S THE DIRECTOR OF TRANSPORTATION AS WE'RE CONS CO-SPONSORING THIS, AND HE'LL BE ABLE TO EXPLAIN A LITTLE BIT, A LITTLE BIT MORE, UH, FOR YOU IN DETAIL IN TERMS OF THE TRAINING THAT THEY HAVE TO UNDERGO.

ANOTHER NAIVE QUESTION, DO THEY NEED TO HAVE A SPECIAL LICENSE BECAUSE IT'S, UH, ELECTRIC OR IS THIS A GOOD OLD? NOT THAT I KNOW OF.

BUT THEY HAVE TO GO THROUGH TRAINING, SO THANK YOU.

SO, GOOD MORNING, DANIEL KING, DIRECTOR OF TRANSPORTATION.

GOOD MORNING, HONORABLE CHAIR AND BOARD FOR DRIVER TRAINING ELECTRIC BUSES.

UH, WE HAVE A SPECIALIZED TRAINING IN ADDITION TO OUR SCHOOL BUS CERTIFICATE FOR A SPECIALIZED LICENSE.

THERE IS NOT A SPECIALIZED LICENSE FOR IT.

THERE IS, UM, THE WHOLE PURPOSE OF BETTER DRIVING EQUALS BETTER REGENERATIVE BRAKING, WHICH EQUALS MORE FUELING IN THAT VEHICLE.

SO, UM, THERE IS TRAINING AND IT'S EXTENSIVE AND IT'S CONTINUOUS ANNUALLY FOR OUR DRIVERS.

WE HAVE, WE HAVE LOTS OF QUESTIONS, MR. PETERSON.

OF ALLOTTED TRAINING, WE'RE FOCUSING ON THE SCHOOL BUS DRIVERS, BUT IS THERE ALSO TRAINING GONNA BE ALLOTTED FOR WHOEVER'S RESPONSIBLE FOR MAINTAINING THE INFRASTRUCTURE AND THE CHARGING EQUIPMENT? IT'S BRAND NEW EQUIPMENT, IT'S BRAND NEW.

THANK YOU, CHAIR.

UM, I HAVE A COUPLE QUESTIONS.

UH, IN REGARDS TO THE 300 HOURS

[01:50:01]

UM, THAT, THAT'S, THAT'S CORRECT.

GO AHEAD.

GO AHEAD, MR. PETERSON.

SO THE WAY THAT WE DO THIS, ACTUALLY, UH, THE PLAN IS TO HAVE A, A SERVICE AGREEMENT, A FIVE YEAR SERVICE AGREEMENT TO BE, BE ABLE TO MAINTAIN THE INFRASTRUCTURE FOR THE NEXT FIVE YEARS.

SO AS PART OF THIS PROJECT THAT WE'RE GONNA BRING FORWARD TO THE, TO THE BOARD ON MAY 12TH, IT'S GONNA, UH, WE'RE GONNA BE SHARING THAT INFORMATION AS WELL.

SO, YES, SO IT, IT IS A PART, SO THE, UH, AS WE GO THROUGH PROCUREMENT, THE, THE AWARDED COMPANY WILL BE ABLE TO PROVIDE THAT SERVICE FOR FIVE YEARS.

AND SO WE'RE ESTIMATING AN AMOUNT OF WHAT THAT IS BASED ON OUR SUN VALLEY BACKYARD AND WHAT WE'RE SEEING WITH THE INDUSTRY, UH, COST FOR THAT SERVICE FOR FIVE YEARS.

UNDERSTOOD.

SO BEYOND THAT FIVE YEARS, WOULD THE, WOULD THE DISTRICT ENTERTAIN AN EXTENSION OF MAINTENANCE, UH, RESPONSIBILITIES FOR THAT PARTICULAR MANUFACTURER? YEAH, I, I WOULD SUGGEST I WOULD LIKE TO HAVE AN EXTENSION, UH, UNLESS OUR TEAM, THEY FEEL VERY COMFORTABLE.

THESE, THE CHALLENGES THAT WE HAVE NEW TECHNOLOGIES IN PLACE.

WE HAVE SOFTWARE, HARDWARE THAT THEY HAVE A CERTAIN LIFESPAN, SO WE LIKE TO MAKE SURE THAT WE HAVE A, A PROFESSIONAL COMPANY THAT, UH, THEY KNOW WHAT THEY'RE DOING, THAT THAT'S THEIR JOB.

THEY CAN BE ABLE TO CONTINUE TO MAINTAIN, BUT AT LEAST FOR THE NEXT FIVE YEARS, WE'LL BE ABLE TO HAVE FUNDING IN PLACE TO BE ABLE TO SUPPORT THIS.

THANK YOU, OBERGFEL.

JUST TO PIGGY UP, PIGGY ME PIGGYBACK OFF OF THAT, MY QUESTION ALSO HAD TO DO WITH THE INFRASTRUCTURE CHART, THE INFRASTRUCTURE AND THE CHARGER SPECIFICALLY.

WE NOW KNOW THAT, UM, CHARGER'S LIFESPAN IS NOT AS MUCH AS, AS IT WAS EXPECTED.

IS THERE MONEY OR FUNDING TO MAKE SURE THAT THE UPKEEP WHEN CHARGERS NEED TO BE REPLACED? IS THERE, UM, OR IS THAT PART OF THE FIVE YEAR CONTRACT? COULD YOU ELABORATE A LITTLE BIT MORE ON THAT? YEAH, THAT'S PART OF THE FIVE YEAR CONTRACT.

AND OUR PLAN IS, UH, CERTAINLY TO CONTINUE OUR PROGRAM.

SO THERE IS A WARRANTIES, JUST LIKE FOR THE BUSES, THAT WE HAVE A WARRANTY FOR THEIR BATTERIES.

THERE'S A WARRANTIES ALSO FOR THE ACTUAL INFRASTRUCTURE THAT WE'RE PUTTING IN PLACE.

AND THE PLAN IS TO MAINTAIN THAT, UH, THAT WARRANTY, AND THEN KEEP EXTENDING ON IT FOR AT LEAST, UH, FOR THE TIME WE'LL HAVE THOSE, UH, CHARGING STATIONS IN PLACE.

THANK YOU, MR. CHAIR.

UM, FIRST NAIVE QUESTION, IS THIS THE FIRST PURCHASE OF, UH, ELECTRIC BUSES FOR THE DISTRICT? NO, IT'S NOT ACTUALLY.

UH, THE DISTRICT HAS BEEN PURCHASING ELECTRIC BUSES FOR THE PAST FOUR YEARS RIGHT NOW.

AND I WILL SAY THAT, UH, UH, WE'VE DONE THE PURCHASING FOR OTHER SITES, INCLUDING OUR SUN VALLEY BUS CHARGE, UH, BUS YARD.

SO WE, WE BRINGING ABOUT CLOSE TO 200 BUSES AT THAT LOCATION.

UM, THE PURCHASING WAS DONE ALREADY FOR THAT.

SO WE'VE, UH, WE HAVE THE EXPERIENCE IN TERMS OF PURCHASING OF BUSES.

AND WITH REGARDS TO THE INFRASTRUCTURE FOR THIS LOCATION AND, AND PERHAPS EVEN SUN VALLEY, UM, IS THAT SOMETHING THAT YOU GUYS ARE TYING INTO THE SOLAR PROJECT THAT THE DISTRICT IS TAKING ON? SO, SO THE SUN VALLEY PROJECT HAS DIFFERENT COMPONENTS INCLUDING, UH, THE, UH, THE, UH, SOLAR, UH, AND BATTERY STORAGE.

THIS ONE DOESN'T HAVE THE SOLAR AND BATTERY.

THIS ONE IS MOSTLY, UH, FOR, UM, THE BUSES AND THE ACTUAL INFRASTRUCTURE TO SUPPORT THE BUSES AND THE TRAINING PROGRAM THAT WE HAVE IN PLACE THAT WILL AWARDED THE MONEY FROM THE A PA.

SO WE, WE WILL DO THAT UPON RECEIPT OF THE NEW BUSES TO MAKE SURE THAT THEY'RE WORKING PROPERLY.

THANK YOU MR. PENSKE.

JUST A COUPLE SHORT QUESTIONS.

WHAT WOULD BE OUR TOTAL ELECTRIC FLEET OF BUSES? TOTAL NUMBER? GREAT.

SO TODAY WE HAVE, UH, 250, UM, ELECTRIC, ELECTRIC BUSES AND ABOUT 51 CHARGING STATIONS, UH, AT DIFFERENT, LOTS OF DIFFERENT LOCATIONS.

UM, WE HAVE ABOUT 1300 BUSES ON OUR INVENTORY, 1300 TOTAL.

SO, SO WE ARE APPROXIMATELY, WE'RE AT, UH, I WOULD SAY CLOSE TO 18% OF ELECTRIFICATION OF OUR BUS FLEET.

BY THE TIME WE DO THIS PURCHASE AND PROCEED WITH ANOTHER 79, WE'RE GONNA BE AT 25% OF OUR, OF OUR, OF OUR BUSES AND CHARGING INFRASTRUCTURE.

AND WOULD THAT MAKE OUR DISTRICT THE LARGEST AMOUNT OF ELECTRIC BUSES IN UNITED STATES? IT'S GONNA BE ONE OF THE LARGEST, UH, YES, WITHIN THE NATION.

THERE'S SOME OTHER SCHOOL DISTRICTS, UH, LIKE MON MONTGOMERY COUNTY THAT THEY HAVE A CLOSE TO THAT AMOUNT.

BUT THE SUN VALLEY BUS YARD WILL BE THE LARGEST BUS YARD ELECTRIFICATION PROJECT THAT WE HAVE THAT ALSO COMBINES THE, THE, UH, UH, SOLAR BATTERY STORAGE AND A MICROGRID CENTER AT THAT SCHOOL.

I THINK THAT'S SOMETHING YOU COULD ADD TO YOUR PRESENTATION WHEN, WHEN YOU TALK, UH, TO THE BOARD.

AND THEN THE FINAL QUESTION IS, WHAT ARE WE DOING TO RECYCLE OUT THE OLD BUSES? WHAT ARE YOU DOING WITH THOSE? SO THERE'S A REQUIREMENT WHEN WE RECEIVE FUNDING THAT WE'LL HAVE TO SCRAP THOSE VEHICLES, SO THEY HAVE TO GET OUT OF COMMISSION.

[01:55:01]

AND THEN, AND THEN WE'LL BE ABLE TO SCRAP THOSE OUT AS PART OF THAT REQUIREMENT.

AND DOES THAT LEAVE L-A-U-S-D ALTOGETHER AND GOES TO ANOTHER SCHOOL DISTRICT OR THE BUSES? THEY'RE, NO, THEY'RE USUALLY ASKED TO BE SCRAPPED, MEANING LIKE THEY, TO DECOMMISSION THEM.

THANK YOU MS. LA.

SO I HAVE A TWOFOLD QUESTION.

UM, WE HAD A PARENT REACH OUT WITH A QUESTION IN REGARDING TO THE UNRELIABILITY OF OUR CURRENT BUSES THAT STUDENTS ARE GETTING PICKED UP LATE, THAT THERE'S NOT ENOUGH DRIVERS FOR THE BUSES.

THEY HAD REACHED OUT TO THE TRANSPORTATION SUPERVISOR AND THAT WAS THE REASON THEY WERE GIVEN, THAT THERE'S NOT ENOUGH DRIVERS TO SUPPORT THE NUMBER OF ROUTES THAT ARE THERE, AND THAT THESE BUSES ARE UP TO AN HOUR LATE AND HAVE TO TAKE, UH, ALTERNATE ROUTES.

IS THERE ANYTHING IN PLACE RIGHT NOW TO INCREASE THE NUMBER OF BUS DRIVERS THAT WILL BE AVAILABLE SO THAT WE CAN INCREASE THE YEAH, I WOULD LET MR. UH, KANG ANSWER TO THAT QUESTION, BUT ALSO WHAT I WANNA SHARE WITH YOU IS THAT OUR NEW BOSSES, THEY'RE EQUIPPED WITH THE GPS SYSTEM SO OUR STUDENTS WILL KNOW WHEN THEY'RE GONNA BE UH, WHEN THEY'RE GONNA BE GET PICKED UP SO THEY DON'T HAVE TO WAIT, UH, FOR THE BUSES.

SO THEY'LL BE ABLE TO SEE THAT LIVE AND BEING ABLE TO GET PICKED UP ON TIME.

SO, BUT MR. DANIEL CAN EXPAND ON THAT QUESTION AS WELL SEE MANAGER, SO THANK YOU.

TRANSPORTATION IS HAVING SERVICE CHALLENGES IN THE PAST TWO MONTHS, PRIMARILY DUE TO EQUIPMENT AND ATTENDANCE.

UH, THE ATTENDANCE PIECE HAS BEEN WORKING IN PARTNERSHIP WITH OUR HR DEPARTMENT AND LABOR PARTNERS, AND IT IS A PUZZLE WE CONTINUE TO WORK WITH AND SOLVE FOR, UM, NOT NECESSARILY, UM, TRADITIONAL MODEL GOING AFTER OUR EMPLOYEES WITH THE STICK, BUT RATHER HOW DO WE INFLUENCE, IMPROVE, UM, UPGRADE THE CULTURE AND IMPROVE THE CARROT, IF YOU WILL.

UM, SO THAT IS AN ONGOING CHALLENGE AND THE KIND OF EBB AND FLOWS THROUGHOUT THE YEARS.

I'VE, I'VE BEEN WITH THE DISTRICT AS WELL REGARDING THE EQUIPMENT PIECE.

IT IS AN ONGOING CHALLENGE.

UM, IN EARLIER MEETINGS WITH THE BOCI SHARED, WE ARE STILL EARLY IN THIS INDUSTRY OVERALL, UH, TO INCLUDE ELECTRIC VEHICLES FOR OUR NORMAL REGULAR CARS AS WELL AS SCHOOL BUSES.

AS TRANSPORTATION DIRECTORS ACROSS THE NATION, WE MEET AND WE KIND OF SHARE OUR BEST PRACTICES AS WELL AS LESSONS LEARNED.

THERE IS A LONG ROAD AHEAD OF US.

UM, WE ARE DISCOVERING THAT MORE DISTRICTS ARE BECOMING MORE HESITANT AS WE KIND OF MOVE FORWARD.

AND RIGHT NOW, THE MOWER SUCCESSFUL ONES ARE THE SMALLER DISTRICTS WHERE THEY HAVE A SMALLER FOOTPRINT WHERE ONE, THEY ARE SERVICED BY ONE BUS YARD, IF YOU WILL, AND THEIR ROUTES ARE MUCH SHORTER.

THEIR WONDERFUL CHALLENGE WITH L-A-U-S-D IS WE ARE LARGE AND WE ARE LARGE, AND WE HAVE COMMUTES ROUTES THAT START FROM SOUTH BAY AND GO ALL THE WAY UP TO NORTH VALLEY.

AND THAT'S JUST THE CHALLENGE OF L-A-U-S-D, WHICH WE HAVE TO SOLVE FOR.

UM, IT IS NOT IDEAL, BUT IT'S, WE ARE GAME FOR IT.

UM, THERE ARE A LOT OF, MANY MEETINGS INTERNALLY BETWEEN ECOS, SUSTAINABILITY, OFFICE, TRANSPORTATION, AS WELL AS FACILITIES, HOW TO SOLVE THIS PUZZLE.

UM, MY ANALOGY I'VE USED IN THE PAST IS, IS VERY MUCH LIKE WE'RE IN THE IPHONE TWO STAGE, AND I THINK TODAY WE'RE IN 16, BUT MEANING OVER THE PAST FOR 15 YEARS, THERE'S BEEN A LOT OF GROWTH AND MYSELF AT, IN THIS TRANSPORTATION ROLE, I HAVE BEEN PUSHING ALL THE MANUFACTURERS, UH, THE BUS MANUFACTURERS AS WELL AS CHARGING MANUFACTURERS THAT MORE IS NEEDED.

WE SEE THE AUTO INDUSTRY SCALING BACK IN ELECTRIC VEHICLES, AND THAT IS OUR CALL OUT TO THE BUS MANUFACTURING INDUSTRY AND THE CHARGING SYSTEM, IT IS NOT AS EASY AS JUST INCREASING, ENLARGING THE BATTERY, MAKE IT 500 MILES, 300 MILES, ET CETERA.

IT'S ALSO, THE NETWORK IS NOT ENOUGH TO HAVE JUST OUR BUS YARDS ELECTRIFIED.

SO WE ARE WORKING, UH, BEHIND THE SCENES, WORKING WITH CONSULTANTS TO PROVIDE STUDIES, HOW DO WE CRACK THIS PUZZLE? AND AS L-A-U-S-D, WE'RE GONNA MOVE FORWARD, WE'RE GONNA LEARN, SHARE OUR BEST PRACTICES AND LESSONS LEARNED WITH EVERYONE ELSE AROUND US, AS WELL AS GLEAN FROM THOSE AROUND US, SUCH AS CRYSTAL SHARED MONTGOMERY COUNTY, UM, AND AS WELL AS SEVERAL OTHER DISTRICTS ARE ALREADY, UM, KIND OF MAKING HEADWAYS AS WELL.

WELL, THE TOUCHES ON MY OTHER PART OF MY QUESTION IS WHAT SAFEGUARDS ARE BEING IMPLEMENTED TO ADDRESS THE ELECTRIC BUS RELIABILITY ISSUES AND THE RECENT SAFETY RECALLS? AND YOU MENTIONED DRIVING RANGE.

'CAUSE SPEAKING TO, AND THE BUS DRIVER OF AN ELECTRIC BUS, I'M IN THE SUN VALLEY AREA, UM, THAT WAS A CONCERN FOR LONG DISTANCE DRIVES THAT THE BUS DIDN'T HAVE THE RANGE FOR THAT.

CORRECT.

SO, OKAY.

FIRST I'D LIKE TO, UH, CLARIFY.

UM, THERE IS NO SAFETY RECALL REGARDING OUR ELECTRIC SCHOOL BUSES.

WE DO WORK WITH ALL OUR ELECTRIC BUS MANUFACTURERS TO SOLVE IT.

UH, AS CRYSTAL SHARED, WE HAVE 250 ELECTRIC BUSES IN OUR FLEET OF 1300 AS ALL BUSES GO IN AND OUT OF SERVICE.

WE HAVE ALL THE GAMUT OF DIESEL, GAS, PROPANE,

[02:00:01]

AS WELL AS CNG.

WE HAVE THE LARGEST ALTERNATIVE FUEL FLEET IN THE NATION.

WE HAVE A BACKUP.

WE HAVE 1300 BUSES TOTAL, ABOUT 900 OUR ASSIGNED TO ROUTES.

AND WE HAVE ABOUT A SURPLUS OF 400 THAT SERVE AS OUR POOL VEHICLES OR, OR BACKUP VEHICLES.

AND THAT IS THE, THAT IS THE CONTINUOUS PLAN.

THERE ARE CHALLENGES INVOLVED WITH THAT, HAVING THE APPROPRIATE SIZED, UH, FLEET, FLEET TEAM AS WELL AS DRIVERS AND MAKING SURE ALL DRIVERS ARE CROSSTRAINED WITH ACROSS ALL OUR BUS MODELS.

I WANNA ASK, YOU SAID THERE HAS BEEN NO SAFETY RECALLS, BUT THERE WAS A SAFETY RECALL FEBRUARY 19TH THAT WAS, UH, TALKED ABOUT BUSES BEING RECALLED BECAUSE OF BATTERY RELATED SAFETY ISSUES.

THAT IS FOR A VERY SPECIFIC BUS MODEL THAT HAS BEEN ADDRESSED.

I BELIEVE THE LATEST SAFETY RECALL THAT PEOPLE MIGHT BE REFERRING TO WAS THE INCIDENT REVOLVING THE BUS FIRE IN DECEMBER.

AND THERE'S NO RECALL, UH, ASSOCIATED WITH THAT EVENT.

AND AS DUE DILIGENCE ON THE DISTRICT'S PART, WE ARE WORKING WITH THE MANUFACTURER AND DEALER, UH, EVEN TO THIS DAY.

THANK YOU, MS. MCFARLAND.

ALL PARENTS, THE MOMENT THEIR STUDENTS SCANS ONTO THE BUS, THEY CAN SEE E EVEN BEFORE THEY SCAN ON, THEY CAN SEE THEIR BUS COMING DOWN THE STREET.

COULD, COULD YOU DESCRIBE THE LIFESPAN OF THESE BUSES AND THEN I'M, I'M GUESSING THAT THERE MAY COME A POINT WHERE IT WOULD BE PRUDENT TO REPLACE THE BATTERY, BUT NOT THE WHOLE BUS.

AND IS THERE FUNDING AVAILABLE FOR THAT, OR WOULD THAT BE ANOTHER, UH, PROJECT THAT COMES TO THE BOND OVERSIGHT COMMITTEE? YEAH, SO WE HAVE A WARRANTY ON THE BATTERIES, UM, FOR ABOUT, UH, EIGHT YEARS FROM, FROM THE MANUFACTURER.

AND WHAT WE'RE SEEING RIGHT NOW, THESE BATTERIES LAST A LOT MORE THAN 10, 12 YEARS.

UH, THERE'S DEGRADATION ON THE BATTERY AFTER SO MANY YEARS AND, BUT IT IS VERY MINIMAL.

UM, THE GREAT THING IS THAT, AND I JUST WANNA BE ABLE TO SHARE SOMETHING 12 ALL YEARS.

SO YOU CAN UNDERSTAND THE BATTERY INDUSTRY IS NOT A NEW INDUSTRY.

THE BATTERY INDUSTRY CAME BACK IN THE 18 HUNDREDS, 1856 TO BE, TO BE ABLE TO SHARE AT THE ACTUAL TIME, AT THE TIME THAT THE CARS WERE INTRODUCED.

SO THE BATTERY INDUSTRY HAS ADVANCED, UH, THE LAST 150 YEARS TREMENDOUSLY.

AND, AND I'LL SAY RIGHT NOW THAT THEY'RE GIVING US A, A RANGE THAT, UH, THAT AT LEAST WITH A BASS FLEET AND WHAT WE'RE SEEING, UM, CLOSE TO 150 MILES, UH, RANGE, 130 TO 150 MILES, DEPENDING ON THE CONDITIONS THAT THEY HAVE TO BE.

SO THEY CAN HELP SUPPORT, UH, MOST, I WOULD SAY 80 90% OF OUR ROUTES THAT WE HAVE, WITH THE EXCEPTION OF SOME, IF WE HAVE TO DO ANY FIELD TRIPS OR ANYTHING ELSE, THAT THEN THEY HAVE TO HAVE MIDDAY CHARGING.

AND THAT'S WHY WE, WE TRY TO DIVERSIFY AND DEVELOP LOCATIONS, OTHER LOCATIONS WITHIN THE DISTRICT, BUT ALSO WITH PARTNERSHIPS TO BE ABLE TO CHARGE OUR BUSES SOMEWHERE ELSE, UH, WORKING WITH L-A-D-O-T WHILE WORKING WITH METRO.

RIGHT? SO WE TRY TO KIND OF RESOLVE, UM, NOT JUST AS L-A-U-S-T, BUT ALSO WITHIN THE CITY AND COUNTY, HOW WE CAN BE ABLE TO HELP SUPPORT EACH OTHER TO DEVELOP A MORE RELIABLE SYSTEM FOR ALL OF US.

SO THERE'S A LOT OF ADVANCEMENT THERE.

AND, UM, AND IN TERMS OF THE ACTUAL, UM, PASSES ITSELF, I WILL SAY THEY, THEY DO HAVE A LIFESPAN OF, I WILL SAY 12 TO 15 YEARS.

AND AT THAT TIME, UM, THERE WILL BE A CONSIDERATION TO SEE IF WE WANNA REPLACE THAT BATTERY OR REPLACE THE BUS, BUT THAT'S SOMETHING, UH, 12 TO 15 YEARS FROM NOW.

ARE WE USING THE ELECTRIC, UH, BUSES THROUGHOUT ALL OF THE REGIONS? SO WE HAVE BUSES NOW ARE LOCATED AT SEVERAL LOCATIONS.

WE HAVE, WE HAD SOME AT SUN VALLEY, WE HAD SOME CHARGING STATIONS WITH SOME BUSES THERE.

WE HAVE SOME AT GARDENA ABOUT, UH, 18 CHARGING STATIONS AND BUSES THERE.

ESSENTIAL, JULIAN WILL FINISH THE FIRST PHASE ONE.

WE HAVE ABOUT 17 BUSES AND CHARGING STATIONS, AND THEN WE HAVE SABA, THE NEWMAN NUTRITION CENTER.

SO WE'RE USING ALL THOSE AND, UH, IT'S BEEN VERY SUCCESSFUL FROM OUR UNDERSTANDING.

UM, AND THAT'S WHY WE WANNA BE ABLE TO EXPAND THE NETWORK TO, TO BE ABLE TO CREATE, UM, A HEALTHIER ENVIRONMENT FOR ALL AREAS.

SO WITH THE SUN VALLEY COMING INTO, UH, OPERATION SOMETIME IN THE FIRST QUARTER OF 2027, THEN WE'LL BE ABLE TO SEE THE ST.

JULIAN COMING IN OPERATION, HOPEFULLY BY, UH, NO EARLIER THAN THE FOURTH QUARTER OF 2028.

SO THEN WE'LL BE ABLE TO HAVE A MORE RELIABLE, UH, MORE SUPERB, UH, I WILL SAY INFRASTRUCTURE AND, AND, UH, CHARGING STATIONS AND A BUS FLEET TO CONTINUE OUR OPERATIONS.

UM, AND THEN YOU SAID THE NEWER BUSES HAVE GPS ON THEM.

ARE YOU CONSIDERING LIKE OTHER RIDE SHARES THEN, OR DO THEY GET A NOTIFICATION, YOU KNOW, YOUR BUS IS SO MANY MINUTES AWAY, OR IS IT TRACKING BETTER FOR THE DISTRICT TO KNOW? YEAH, ANY, THIS IS THE EXCITING PART.

SO DANIEL, WHY DON'T YOU JUST GO AT IT.

I MEAN, THIS IS WHAT WE'LL BE ABLE TO PROVIDE.

SO, UH, AS MS. LAY SHARED EARLIER, THERE, THERE ARE SERVICE CONCERNS.

WE ARE TRANSPORTATION'S ALSO MODERNIZING, UH, AND, AND SIMPLY PUT, WE ARE MOVING AWAY FROM PAPER PROCESSES AND BRINGING TABLETS AND MODERN TECH INTO THE BUS.

SO THE GOAL IS AUGUST,

[02:05:01]

OH, IT'S FIVE, 10 MINUTES LATE.

I'M MANAGING THREE STUDENTS.

OF COURSE IT'S ELEMENTARY, MIDDLE, HIGH SCHOOL, OF COURSE, IT'S NOT EASY.

DIFFERENT TIMES IN DIFFERENT LOCATIONS.

AND THE PARENT HAS A PEACE OF MIND.

SAY, I CAN COMMUTE, START MY COMMUTE TO WORK, KNOWING THE BUSES FOR MY CHILDREN ARE ON THE WAY.

UM, RIGHT NOW WE HAVE THAT IN PLACE, BUT IT'S SET UPON IF THAT ORIGINAL DRIVER, ORIGINAL BUS GOES ON THAT TRIP, THEN IT WORKS.

IF THERE'S ANY CHANGE, IT DOESN'T WORK.

SO IN SHORT, WE'RE OVERDUE.

WE'RE IN THE PROCESS, AND I BELIEVE WE'RE ABOUT 70% OF THE WAY THERE.

ANY OTHER QUESTIONS FROM ANYBODY? YEAH.

MS. LATHE, YOU MENTIONED ABOUT GPS ON THE BUSES.

IS THERE ANY PLAN IN PLACE TO IMPLEMENT GPS ON OUR EXISTING DIESEL BUSES? YES.

ALL OUR BUSES HAVE GPS.

IT, IT JUST, THE, IT'S JUST AN UPGRADE OF A SYSTEM.

SO AS, AS AGAIN, EARLIER, AS LONG AS THE DRIVER DOESN'T CALL OUT, THE BUS ISN'T, UH, PLACED IN SERVICE BY OUR, LIKE PREVENTATIVE MAINTENANCE, ET CETERA, THEN THE TRACKING EXISTS FOR THAT.

HOWEVER, ACROSS 1400 ROUTES THOUSAND 1400 PLUS DRIVERS, THERE'S A LOT OF MOVEMENT EVERY DAY.

SO WITH THAT SAID, UM, KIND OF THE GOAL IN MODERN SOCIETY IS NO MATTER WHAT HAPPENS, OUR CUSTOMERS, SCHOOLS AND PARENTS NEED VISIBILITY.

SORRY ABOUT THAT.

I EXPECT YOU TO, TO SAY JUST A COUPLE MORE THINGS.

I'M KIDDING.

UH, WITH THAT THEN, IF THERE'S NO OTHER COMMENTS, IS THERE A MOTION I MOVE THAT WE APPROVE THIS ITEM MOTION BY CAMPBELL.

IS THERE A SECOND? SECOND BY PANSKY, UH, MR. POP POJO, CAN YOU CALL FOR THE VOTE? YES.

THANK YOU, MR. CHAIR MEMBERS, THIS IS THE, UH, VOTE ON AGENDA ITEM NUMBER FIVE FOR THE PURCHASE OF ELECTRIC SCHOOL BUSES.

UH, MS. BELL? AYE.

UH, MS. BETS IS LEFT THE MEETING.

UH, MS. LATHE? AYE.

THANK YOU MS. URCHIN MUELLER HAS LEFT THE MEETING.

UH, MS. OBERGFEL? AYE.

THANK YOU MR. PETERSON.

THE ITEM IS, UH, THE RESOLUTION IS ADOPTED, RECOMMENDING THE PROJECT WITH 11 AFFIRMATIVE VOTES.

AND I KNOW THE EFFORT THAT WENT THROUGH THIS CHRISTOS.

AND, AND, AND JUST SO YOU ALL KNOW, MR. CRITO, CHRIS CHRISTO SERVES WITH THE A-I-A-A-C-L-A BOARD.

YOU GOT A BIG SATURDAY, DON'T YOU? WE DO, YES.

AND HOPEFULLY WE DIVINE OUR STUDENTS WILL SHOW UP YOU BECAUSE WE INVITED HIM.

AND AGAIN, THANK YOU FOR YOUR APPROVAL.

1.86, LITTLE OVER $1.86 MILLION.

TAKE CARE.

NEXT ITEM ON THE AGENDA.

[6. Three Projects to Provide Critical Replacements and Upgrades of School Building/Site Systems and Components and Amend the Facilities Services Division Strategic Execution Plan to Incorporate Therein]

I GOT LOST IN A MOMENT.

THERE IS ITEM NUMBER SIX.

THESE ARE THREE CRITICAL REPLACEMENT UPGRADE PROJECTS.

UH, MR. MARK CHO, DEPUTY DIRECTOR, WILL PRESENT.

GOOD AFTERNOON, MR. CHO.

HOW, HOW MANY TIMES? HOW, WHEN'S THE LAST TIME I EVER SAID GOOD AFTERNOON TO YOU? IT'S ALWAYS GOOD MORNING.

GOOD AFTERNOON, MR. CHAIR AND MEMBERS OF THE POC.

WELCOME BACK MR. PENSKI.

I'M JUST, UH, LETTING THE REST OF THE BOARD KNOW.

TECHNICALLY WE'VE GOT ABOUT 45 MINUTES AND WE STILL HAVE, UM, FOUR, THREE MORE ITEMS AFTER THIS ONE.

BUT MR. CHO IS VERY EFFICIENT.

UM, SO JUST KEEP THAT IN IN MIND AS WE TRACK ANY POTENTIAL QUESTIONS.

I'M KIND OF GLAD THAT YOU ALREADY HAD ASKED TOUGH QUESTIONS, RIGHT? ? YOU DID? YEAH, YEAH, YEAH.

IN THE, IN THE PRE-MEETINGS.

THAT'S RIGHT.

SO WE HAVE THREE, UH, ROOF REPLACEMENT PROJECTS.

BEFORE I CAME TO, UH, THE BOCI CHECKED THE DATABASE.

WE HAVE 61 ACTIVE ROOFING PROJECTS YOU HAD APPROVED.

MANY OF 'EM HAVE BEEN COMPLETED.

SOME OF THEM ARE IN, UH, CLOSING STATUS.

WE HAVE NINE ACTIVE, UH, ROOFING PROJECTS IN CONSTRUCTION.

11 IN, UH, BID STRATEGY, BID, UH, PROCESS.

SO THEY'RE ABOUT TO BE AWARDED AND SOME OF THEM RECENT ONES THAT YOU HAVE APPROVED

[02:10:02]

ARE IN PLANNING STATUS.

WHEN IT COMES TO ROOFING, UH, ROOFING IS ONE OF THE PRIORITY CRITICAL REPLACEMENT PROJECTS.

WHEN ROOF IS COMPROMISED, ALL THE COMPONENTS GET IMPACTED.

SO I THANK YOU FOR APPROVING ALL THE ROOFING PROJECTS AND YOU'LL SEE MORE ROOFING PROJECTS.

WE HAVE THREE OF 'EM.

EACH PROJECT, WE HAVE A SEPARATE SLIDE.

AGAIN, ALL THE ROOFING PROJECTS DO NOT REQUIRE DESIGN.

THERE'S NO DSA, UH, GOOD PERCENTAGE OF THE FUNDING GOES DIRECTLY INTO THE ROOFING.

THIS IS TO REPLACE, UH, AT BROCKTON ELEMENTARY SCHOOL, ABOUT 45,000 SQUARE FEET, FOUR BUILDINGS, THREE ARC GATES, AND A SHADE SHELTER.

AGAIN, 88% GOES TO THE CONSTRUCTION.

THE SCHOOL OPENED IN 1922 AND ROOF IS ALMOST NEARING 30 YEARS OLD, UH, BEYOND THE, UH, LIFECYCLE.

NEXT ONE IS AT WARNER ELEMENTARY SCHOOL.

AGAIN, 48,000 SQUARE FEET.

UH, SAME SCOPE, NO DESIGN, NO DSA.

THIS SCHOOL OPENED IN 1949.

THERE ARE ABOUT 32 CLASSROOMS AND ALL THE ROOFING HOUSING, ALL THESE 32 CLASSROOMS WILL BE REPLACED.

THE LAST ONE IS A STANFORD ELEMENTARY SCHOOL, 1924.

THAT'S THE YEAR OUR SCHOOL OPENED IT.

WE HAVE 34 CLASSROOMS AT THIS SITE.

UH, 10 BUILDINGS, TWO ARCADES, TWO, UH, STORAGE BUILDINGS, LUNCH PAVILION WILL HAVE NEW ROOFING AFTER THIS PROJECT.

LITTLE BIT OVER $2.1 MILLION.

AND THAT'S THE LAST ROOFING PROJECTS WE HAVE.

IF YOU HAVE ANY QUESTIONS.

ANY QUESTIONS, YOU'RE GOOD WITH THAT? THEN I WILL ASK IF THERE IS A MOTION.

ALL MOTION.

MR. SULLIVAN? SECOND.

SECOND.

SECOND BY PANSKY.

UH, MR. POPE.

JOY, CAN YOU CALL FOR THE VOTE? YES.

THANK YOU, MR. CHAIR MEMBERS, THIS IS THE VOTE ON AGENDA ITEM NUMBER SIX FOR THREE, CRITICAL REPLACEMENT AND UPGRADE PROJECTS.

MS. BELL? AYE.

MS. LATHE? AYE.

MS. OBERGFEL AYE.

THANK YOU MR. PETERSON.

MR. HAMNER AYE, THE RESOLUTION RECOMMENDING APPROVAL OF THE PROJECTS IS ADOPTED WITH 11 AFFIRMATIVE VOTES.

STAYING WITH THIS MR. CHO, WE HAVE NEXT ITEM IS ITEM NUMBER SEVEN.

UM,

[7. 27 Board District Priority and Region Priority Projects and Amend the Facilities Services Division Strategic Execution Plan to Incorporate Therein]

THESE ARE 27 BOARD, DISTRICT AND REGIONAL PRIORITY PROJECTS.

THANK YOU AGAIN.

YES, WE DO HAVE 27 PROJECTS.

THESE ARE BOARD, BOARD, DISTRICT PRIORITY AND REGION PRIORITY DISCRETIONARY PROJECTS.

THERE ARE IN EIGHT PROJECT CATEGORIES.

AND IN ALPHABETICAL ORDER WE HAVE ONE CLASSROOM UPGRADE.

THAT'S THE LINE NUMBER 19 AT RIO VISTA, UH, ELEMENTARY SCHOOL.

AND WE HAVE A SEPARATE SLIDE JUST FOR THAT.

THEN WE HAVE, UH, THREE OF 'EM IN ELECTRICAL AND LIGHTING CATEGORY.

THAT'S LINE NUMBER 2 12 26.

WE HAVE FOUR FENCING RELATED PROJECTS.

FOUR OF 'EM, THREE OF 'EM ARE PRIVACY, FENCING, CHAIN LINK PRIVACY.

AND THE LAST ONE, LINE NUMBER 27, IS A WROUGHT IRON FENCE.

IN THE FRONT OF THE BUILDING, WE HAVE 11 FURNITURE SUPPORT, ONE LOCKERS.

THAT'S LINE NUMBER 24.

THAT IS TO BUILD A, UH, FOOTBALL EQUIPMENT, UH, STORAGE LOCKER.

AND WE HAVE TWO MARKET PROJECTS, LINE NUMBER ONE AND 17.

UM, THE NUMBER ONE AT DELL ELEMENT SCHOOL, THAT'S A BRAND NEW MAREE, SO IT COSTS A

[02:15:01]

LITTLE BIT MORE THAN THE OTHER ONE.

THE OTHER ONE IS WE ARE JUST REPLACING THE EXISTING MARQUEE, SO LESS COST.

THEN WE HAVE TWO SECURITY LINE NUMBER 10 AND 24.

NUMBER 10 IS TO INSTALL TWO CCTVS.

AND NUMBER 25 IS RELATED TO A SECURE ENTRY.

THE SCHOOL HAS A SECURE ENTRY, BUT THEY HAVE ASKED ADDITIONAL MONITORING SYSTEMS. SO WE ARE ADDING MONITORS TO THAT SCHOOL.

UH, LAST CATEGORY IS TECHNOLOGY CATEGORIES.

UH, THREE OF 'EM.

NUMBER 13, 18, 22 OF THEM IS TO PROVIDE THE INTERACTIVE DISPLAYS.

ONE OF 'EM IS TO PURCHASE CHROMEBOOKS.

SO THIS IS AT RIO VISTA ELEMENTARY SCHOOL.

UH, SCHOOL OPENED IN 1932 AND NOW IS OVER 90 YEARS OLD.

UH, THIS PROJECT IS TO FOCUS ON UPGRADING TWO CLASSROOMS. JUST LIKE MANY, UH, COMMON PROJECTS.

WE'LL BE REPLACING THE CEILINGS, UPGRADING THE LIGHTING, REPLACE THE ENTIRE NINE BY NINE ASBESTOS FLOORS, NEW PAINT, NEW FURNITURE, AND NEW ACCESSORIES.

THE TOTAL PROJECT BUDGET IS JUST OVER $250,000 AND WE EXPECT TO COMPLETE THE WORK BEFORE THE END OF THE YEAR.

SO TOTAL PROJECT BUDGET FOR BDP AND RP PROJECTS IS $1,598,097.

IF YOU HAVE ANY QUESTION, I'M HERE TO PROVIDE ANSWERS.

YES, MR. SULLIVAN, I'M JUST CURIOUS, WHAT IS THE ANTICIPATED LIFESPAN OF A CHROMEBOOK? WE HAVE A, I'M NOT GONNA STEAL THE THUNDER FROM THE ITS.

WE HAVE A ITS, MR. DOUGLAS LE YES.

UH, THE QUESTION IS, WHAT'S THE EXPECT LIFESPAN OF A CHROMEBOOK? UH, ABOUT FIVE YEARS.

THAT'S OUR, THAT.

OH, THAT WAS IT.

UH, I THOUGHT THERE MIGHT BE A FOLLOW UP WITH THAT.

I'M SORRY.

THAT'S IT.

I'M OKAY, MR. PAN, I'LL LET THE REST OF THE BOARD HAVE THAT IT , I'M SORRY, I DIDN'T EXPECT TO SEE THIS ON THE, UH, LINE ITEM TODAY.

SO, UM, THIS HAPPENS TO NO, EITHER , HE'S GETTING BACK INTO SHAPE.

YEAH, I, I DIDN'T THINK I'D HAVE TO DO THIS.

I, IT'S BEEN A, A PET PEEVE FOR A LONG TIME.

HOW MANY CHROMEBOOKS ARE THEY BUYING FOR? $72,000.

SO WE ARE BUYING 125 CHROMEBOOKS, 125.

AND, AND DO WE KNOW HOW MANY CHROMEBOOKS HAVE BEEN PURCHASED SO FAR THIS YEAR FOR THIS SCHOOL? MAYBE, UM, MAYBE I CAN GIVE YOU THE, WHAT INVENTORY THEY HAVE.

SCHOOL ENROLLMENT IS 463.

THEY HAVE CURRENTLY 245 CHROMEBOOKS, AND THEY HAVE 221 IPADS TOTAL OF 466 DEVICES.

AND THOSE CHROMEBOOKS ARE IN THE CATEGORY WHERE IS CLOSED TO THE REPLACEMENT, BUT IT'S, UH, NOT IN THE REPLACEMENT CATEGORY BY ITS.

SO BOARD MEMBER WANTED TO REPLACE, HEY, LET ME REPLACE TWO HUNDRED FORTY FIVE, A HUNDRED TWENTY FIVE OF 'EM TO GET FASTER DEVICE.

I I JUST WANT TO MAKE THIS REQUEST ONE MORE TIME.

I MAY MAKE IT A FEW MORE TIMES OVER THE NEXT TWO YEARS.

UH, IS THESE CAN BE SPONSORED.

THEY'RE COMPANIES, THEY CAN PURCHASE THESE FOR YOU AND SAVE L-A-U-S-D THOUSANDS OF DOLLARS, MILLIONS OF DOLLARS IN PAYING FOR DISPOSABLE UNITS.

I KNOW HOW VALUABLE CHROMEBOOKS WERE DURING COVID AND WE COULDN'T HAVE GOTTEN THROUGH THE SCHOOL DISTRICT YEARS WITHOUT THEM.

BUT, UH, THIS IS DISPOSABLE REVENUE.

AND WHETHER IT'S LOST, BROKEN, OR END OF LIFE AFTER FIVE YEARS, IT'S NOT THE BEST USE OF BOND DOLLARS.

AND I UNDERSTAND THE, YOU KNOW, THE BOARD MEMBERS ARE THE ONES MAKING THESE REQUESTS ON BEHALF OF THE SCHOOLS.

AND I'M NOT SAYING THE SCHOOLS AREN'T NEEDY FOR IT, BUT WHEN THE DISTRICT IS NEGOTIATING OUT TO GET THESE CHROMEBOOKS, THEY CAN GET THEM PROBABLY EVEN A LOT CHEAPER BY PUTTING A PARTNERSHIP DEAL TOGETHER WITH ONE OF THE MANUFACTURERS LIKE SAMSUNG, UH, OF THAT NATURE.

SO THIS IS JUST A REALLY PET PEEVE, ESPECIALLY TO SEE $72,000 WORTH OF CHROMEBOOKS.

SO MY FEEDBACK, THANK YOU.

MAGNET, UH, THE LINE ITEM TO PROVIDE LOCKERS, WHAT IS THAT FOR A PARTICULAR SPORT? IT'S FOR THEIR FOOTBALL EQUIPMENT.

MR. PANSKY.

OTHER COMMENTS, MR. CAMPBELL? YEAH, JUST ONE QUICK QUESTION.

I SEE THE, UH, KING DREW MEDICAL AND SCIENCE

[02:20:01]

DO THEY NOT STORAGE LOCKERS? DO THEIR PLAYERS NOT HAVE LOCKERS? THEY DO NOT HAVE THOSE LOCKERS.

THEY DO NOT.

THEY, THIS SCHOOL, THIS SPECIFIC SCHOOL DOES NOT HAVE, UH, FOOTBALL EQUIPMENT LOCKERS.

SO THEY'RE LATER, UH, AROUND IN THE HALLWAY.

I, I'M, I'M JUST CURIOUS LIKE HOW I, I DON'T KNOW WHEN THE FOOTBALL FACILITIES WERE BUILT OR LAST MODERNIZED THERE, BUT THIS KIND OF RAISES A QUESTION I'VE HAD BEFORE.

IF WE HAVE SPORTS FACILITIES, IT SEEMS LIKE THE FACILITY WOULDN'T BE COMPLETE, ESPECIALLY IF IT'S EQUIPMENT SPECIFIC SPORT WITHOUT LOCKERS.

SO LIKE, HOW DID WE WIND UP IN A SITUATION WHERE WE HAVE SPORTS TEAMS WITHOUT LOCKERS? I WONDER HOW WIDESPREAD THAT IS BECAUSE I MEAN, I'M GLAD TO SEE IT'S BEING ADDRESSED.

I I THINK IT'S A HUNDRED PERCENT NEEDED.

I'M JUST, THAT, THAT'S KIND OF SURPRISING.

I, I PLAYED FOOTBALL.

I, I CAN'T IMAGINE TOTING ALL THAT AROUND ALL DAY.

YOU KNOW, THAT, THAT WOULDN'T BE FUN.

, MOST SCHOOLS PROBABLY HAVE THOSE LOCKERS, UH, LOCKABLE LOCKERS.

SO THAT'S WHY, THAT'S THE REASON WHY YOU DON'T SEE THESE TYPE OF PROJECTS THAT I BRING FORWARD.

SO THIS IS A VERY UNIQUE CASE.

YEAH, I I'M JUST, I'M JUST WONDERING HOW MANY OTHER SPORTS EQUIPMENT, EQUIPMENT DEPENDENT SPORTS TEAMS IN OUR SCHOOL, OUR HIGH SCHOOLS ESPECIALLY, DON'T HAVE LOCKERS.

I CAN PROBABLY FIND OUT.

UM, YOU MAY HAVE SAID THIS AND I MAY HAVE MISSED IT, BUT I HEARD YOU SAY HOW OLD RIO VISTA WAS, BUT I WAS WONDERING LIKE THE OTHER CLASSROOMS ARE OKAY.

THEY ONLY NEED TO UPGRADE TO THAT SEEMS A LITTLE, I'M NOT CLEAR.

YOU'RE REFERRING TO RIO VISTA? YEAH.

YEAH, THAT IS A VERY GOOD QUESTION.

LET ME, OKAY.

WE'RE GONNA INVITE HER TO OUR AGENDA SETTING MEETINGS.

EVIDENTLY.

SO DID YOU GUYS TALK ABOUT IT? WE DO A, A QUICK MEETING PRIOR, TWO WEEKS BEFORE? YEAH.

SO WE CAN MAKE SURE THAT MAJOR BUGS ARE WORKED OUT.

SO HE ADJUSTS HIS PRESENTATIONS.

THAT'S A GOOD QUESTION, BUT I DO HAVE THE ANSWER FOR THAT.

SO IF YOU REMEMBER, THE SCHOOL WAS BUILT IN 1932, RIGHT? AT THE TIME THE ORIGINAL BUILDING HAD SEVEN CLASSROOMS IN THE SIXTIES AND SEVENTIES.

THEY BUILT MORE BUILDINGS, ADDING CLASSROOMS, AND CURRENTLY THEY HAVE, UH, 24 CLASSROOMS WITH THE NEWER, UH, BUILDINGS.

AND THESE TWO, UH, THESE TWO CLASSROOMS ARE IN THE ORIGINAL BUILDING THAT IS BUILT IN VERY OLD WAY.

OH, OKAY.

AND BOARD MEMBER HAD, UH, HEY, I HAVE 20 $50,000 CONTRIBUTE.

SO THEY CHOSE, THESE TWO ROOMS NEED TO BE UPGRADED.

THAT'S HOW IT WAS CHOSEN.

BUT THE OTHER ROOMS, YES, THE OTHER FIVE ROOMS STILL NEED TO BE UPGRADED AND THAT THE BOARD MEMBERS GONNA COME BACK LATER FOR THOSE, OR IS THERE A PLAN? RIGHT.

RIGHT NOW IT'S COSTING $250,000 AND RIGHT NOW THERE'S NO FUNDING TO UPGRADE.

BUT LATER ON, UH, MAYBE, UH, WE'LL HAVE MORE FUNDING TO COVER.

THAT DOESN'T MEAN THOSE REMAINING FIVE CLASSROOMS IS NOT FUNCTIONING.

THEY'RE STILL FUNCTIONING IN OLD WAYS.

THANK YOU FOR THE QUESTION.

ANY OTHER QUESTIONS, MS. PER OKAY.

UH, JUST A QUICK QUESTION.

WHAT IS THE INTERACTIVE DISPLAYS? WHAT, WHAT DOES THAT ENTAIL? SO THAT'S CALLED PROMETHEAN BOARDS.

RIGHTS.

SO YOU CAN TOUCH ON WITH HAND AND THAT, THAT'S WHAT I WAS WONDERING.

ALRIGHT, SO IT'S JUST THE PROMETHEAN BOARD'S, NOTHING ELSE? YES.

ALRIGHT, MS. OH, SORRY.

I APOLOGIZE.

MS. OBERG FER THEN WE'LL GET YOU LAST.

I HAVE A QUESTION REGARDING SOME OF THE, I KNOW THE BOARD A FEW WEEKS AGO, UM, IS WORKING TO RESTRICT SCREEN TIME FOR STUDENTS IN TK THROUGH, I THINK BELIEVE SECOND OR THIRD.

AND HOW ARE YOU ALL ADJUSTING OR APPLYING TO ADJUST TO THE USE OF LIKE CHROMEBOOKS AND ELEMENTARY SCHOOLS OR, OR EVEN THE, THE BOARD WITH THAT NEW POLICY? THAT IS THE ITS QUESTION.

GOOD AFTERNOON AGAIN.

SO THAT RESOLUTION WAS JUST PASSED, UH, LAST WEEK.

UH, SO THE TEAM, UH, DOI AND ITS AND AMONG OTHERS, UM, ARE WORKING ON THE POLICY OF DRAFTING THE POLICY THAT WILL DICTATE THE SCREEN TIME AND, UH, MANAGE OF, YOU KNOW, AS YOU SEE THAT THE BOARD RESOLUTION, THEY TALKED ABOUT ELIMINATING ONE TO ONE FOR CERTAIN GRADES, GO BACK TO SHARE DEVICES.

SO, UM, SO WE'RE WAITING FOR THE WHOLE POLICY TO BE DRAFTED, REVIEW AND APPROVED BY THE BOARD.

ELECTRONIC FREESTANDING MARQUEE, UM, APPEARS TWICE.

I WAS LOOKING AT TWO OF THE DIFFERENT LINE ITEMS. INSTALL

[02:25:01]

AND THERE'S A COST DIFFERENCE.

ONE IS FOR DEL LMO ELEMENTARY AND THE OTHER IS FOR MCCLAY MIDDLE SCHOOL.

ONE IS 70,001 IS 57,000.

WHAT'S THE DIFFERENCE IN THE PRICE? THE DIFFERENCE? THAT'S ALSO GOOD CATCH.

THE DIFFERENCE IS ONE SCHOOL HAS ALREADY, UH, EXISTING MARQUEE, SO THAT'S FREESTANDING MARQUEE.

THAT MEANS THEY HAVE ALL THE INFRASTRUCTURE TO SUPPORT THE LIGHTS AND POWER.

THE OTHER ONE HAD NEVER HAD ANY MARQUEE.

SO YOU HAVE TO BUILD EVERYTHING FROM THE SCRATCH.

SULLIVAN.

AND I'LL ASK THE SAME QUESTION.

WHAT IS THE LIFE EXPECTANCY OF A MARQUEE OR A PR PROMETHEAN BOARD? SO THESE MARQUES ARE VERY, I KNOW THEY'RE VERY OLD.

THEY'RE OVER 30 YEARS OLD.

AND WE DO HAVE SOME OF THE MARQUEES THAT IS HAND ADJUSTED WITH THE ROD.

SO WE DO HAVE THOSE.

BUT ELECTRIC ELECTRONIC MARQUEES, I BELIEVE THEY ARE 20 TO 30 YEARS LIFESPAN.

AND THE PROMETHEAN BOARDS, PROMETHEAN BOARDS, I WOULD SAY, UH, OVER 10 YEARS I HAVE MY SAMSUNG TV THAT ARE 12 YEARS OLD, STILL FUNCTIONING.

I WAS JUST TRYING TO GET A COMPARISON.

YES, SIR.

APPRECIATE IT.

ARE WE GOOD? OKAY, WITH THAT, IS THERE A MOTION MS. BELL? SECOND? I'LL SECOND.

SECOND WAS PERONE.

GOOD AFTERNOON COMMITTEE MEMBERS.

UH, MR. POPE JOY, CAN WE CALL FOR THE VOTE? THANK YOU, MR. CHAIR.

UH, MEMBERS, THIS IS THE VOTE ON AGENDA ITEM NUMBER 7 27 BOARD, DISTRICT, AND REGION PRIORITY PROJECTS.

THANK YOU MR. SULLIVAN.

THE RESOLUTION RECOMMENDING THE 27 PROJECTS IS ADOPTED WITH 11 AFFIRMATIVE VOTES.

JOE IS STILL HERE.

UH, ITEM NUMBER EIGHT, PROP

[8. 2026-2027 Education Code Section 47614 (Proposition 39) Facilities Renovation Effort and Amend the Facilities Services Division Strategic Execution Plan to Incorporate Therein]

39 CHARTER PROJECTS.

PROJECTS.

HE WILL BE JOINED BY, UH, JEANETTE BORDEN, OPERATIONS MANAGER FOR THE CHARTER SCHOOL DIVISION.

EACH YEAR AT THIS TIME WE PRESENT PROP 39 SET OF PROP 39 PROJECTS.

UH, WE ARE REQUIRED TO SHARE OUR DISTRICT FACILITIES WITH, UH, CHARTER SCHOOLS.

AND WHEN WE SHARE, WE PROVIDE THE SAME EQUAL STANDARDS CLASSROOM STANDARDS.

I'M WITH, UH, MS. JEANETTE BORDEN, SHE THE, UH, OPERATIONS, OPERATIONS MANAGER FOR THE CHARTER SCHOOL DIVISION.

AND I'M NOT GOING TO STEAL THE THUNDER, I'M JUST THE TAXI DRIVER.

SHE'S THE PROFESSOR AND SHE WILL WALK YOU THROUGH THE DETAILS OF PROP 39 PROGRAM.

UH, MY NAME IS JEANETTE BORDEN FROM THE CHARTER SCHOOLS DIVISION AS OUR OPERATIONS MANAGER.

AND TO GIVE A LITTLE BIT OF BACKGROUND ON PROP 39, UM, THIS IS AN ITEM WE BRING EACH YEAR, UM, AS PROP 39 IS AN ANNUAL PROCESS.

UM, AND THE REASON WE BRING IT IS BECAUSE PROP 39, UM, WA AS WAS MENTIONED IN A PREVIOUS PRESENTATION, WAS PASSED IN 2000 AND, UH, IT AMENDED THE CALIFORNIA EDUCATION CODE.

UM, AND ONE ASPECT OF THAT, UM, WAS REGARDING THE INTENT THAT PUBLIC SCHOOL FACILITIES SHOULD BE SHARED FAIRLY AMONG ALL PUBLIC SCHOOL STUDENTS, INCLUDING THOSE IN CHARTER SCHOOLS.

AND SO, UM, PROPOSITION 39 SINCE THEN HAS BEEN SOMETHING THAT, THAT THE DISTRICT HAS HAD A LEGAL OBLIGATION TO, UH, FULFILL.

AND SO, UM, OUR SCHOOL DISTRICT AND ALL SCHOOL DISTRICTS IN CALIFORNIA ARE REQUIRED TO MAKE AVAILABLE TO CHARTER SCHOOLS OPERATING WITHIN THE SCHOOL DISTRICT, UH, THAT SUBMIT AN ANNUAL FACILITIES REQUEST, UH, FACILITIES THAT ARE IN CONDITIONS REASONABLY EQUIVALENT TO THOSE SCHOOLS THAT THE CHARTER SCHOOL STUDENTS WOULD BE ACCOMMODATED IN IF THEY WERE ATTENDING A PUBLIC SCHOOL, UM, OF THE DISTRICT.

AND SO, UH, WHAT YOU HAVE IN THE, UH, REPORT TODAY IS THAT, UH, EACH OF THE CHARTER SCHOOLS IDENTIFIED IN EXHIBITS A AND B, UH, OF THE BOARD REPORT SUBMITTED A LEGALLY SUFFICIENT FACILITIES REQUEST TO THE DISTRICT.

AND THEY'RE ABLE TO OCCUPY, UM, SCHOOL SITES FOR THE 26 27 SCHOOL YEAR PURSUANT TO

[02:30:01]

PROP 39.

UM, AND OUR SCHOOL DISTRICT IS OBLIGATED TO PAY FOR THE COSTS ASSOCIATED WITH MAKING THE REASONABLY EQUIVALENT SPACE AVAILABLE TO THOSE CHARTER SCHOOLS.

AND, UM, AND THERE ARE BOND PROGRAM FUNDS UNDER THE CHARTER SCHOOL'S FACILITIES UPGRADES CATEGORY THAT, UM, THAT ARE SPECIFICALLY EARMARKED FOR THIS PURPOSE.

AND IF THOSE BOND PROGRAM FUNDS ARE NOT USED FOR THIS PURPOSE, THEN GENERAL FUNDS WOULD NEED TO BE USED OTHERWISE.

UM, SO A LITTLE BIT MORE, UH, BACKGROUND ON PROP 39.

UM, AS WE'VE SHARED PREVIOUSLY THAT THIS IS AN ANNUAL PROCESS.

AND SO WHERE WE, I'LL JUST KIND OF TAKE YOU THROUGH WHERE WE ARE IN THE ANNUAL PROCESS FOR THE 26 27 SCHOOL YEAR.

SO BACK IN NOVEMBER OF 2025, CHARTER SCHOOLS THAT WERE DESIRING TO HAVE FACILITIES SPACE IN THE 26 27 SCHOOL YEAR SUBMITTED WRITTEN REQUESTS, ALSO KNOWN AS FACILITIES REQUESTS TO LA UNIFIED, INCLUDING THEIR PROJECTIONS OF IN-DISTRICT CLASSROOM AVERAGE DAILY ATTENDANCE.

AND THAT BECOMES OUR, OUR MEASURE FOR DETERMINING HOW MUCH SPACE THEY'RE ENTITLED TO UNDER THE LAW.

UM, AND THEN WE GO THROUGH A BIT OF A BACK AND FORTH PROCESS FOR A FEW MONTHS.

UM, DECEMBER WE RESPOND TO THE INITIAL, UH, AVERAGE DAILY ATTENDANCE PROJECTION.

UM, AND THEN, UH, ON JANUARY 2ND, THE CHARTER SCHOOLS RESPOND BACK TO US IF THEY WISH TO.

UM, FEBRUARY 1ST, WE MAKE A PRELIMINARY PROPOSAL OF SPACE TO EACH ELIGIBLE CHARTER SCHOOL, UM, AND THEN MARCH 1ST THEY HAVE THAT OPPORTUNITY TO RESPOND WITH ANY, UM, OBJECTIONS OR CONCERNS, UM, AND TO MAKE COUNTER PROPOSALS.

AND THEN APRIL 1ST, UH, THE DISTRICT SUBMITS A FINAL OFFER, ALSO KNOWN AS A FINAL NOTIFICATION OF FACILITIES OFFERED TO EACH CHARTER SCHOOL.

UM, AND THOSE SCHOOLS HAVE UNTIL MAY 1ST TO RESPOND AS TO WHETHER THEY ACCEPT OR DECLINE THAT OFFER OF SPACE.

UM, AND SO THAT'S RIGHT WHERE WE ARE NOW.

UM, TODAY BEING APRIL 30TH, WE'RE AWAITING THE RESPONSES ON THE FINAL OFFERS THAT WENT OUT FROM THE DISTRICT.

AND THIS REPORT INCLUDES ALL OF THE POSSIBLE OUTCOMES THAT WE, UH, ARE PLANNING FOR.

IT'LL COME IN, WE'LL HAVE MUCH GREATER, GREATER CLARITY GOING INTO NEXT WEEK AS WE WE KNOW WHAT THOSE, UM, RESPONSES ARE FROM THE CHARTER SCHOOLS.

SO THAT'S A LITTLE BACKGROUND.

UM, AND THEN WW WITH THE BOND FUNDS THAT WE HAVE USED HISTORICALLY FOR, UH, THESE PROJECTS, WE WILL BRING THAT TO THE BOARD LATER IN MAY.

AND THEN, UM, LA UNIFIED WILL PREPARE THE ROOMS FOR CHARTER SCHOOL USE PURSUANT TO THE LAW, 10 WORKING DAYS PRIOR TO THE CHARTER SCHOOL'S FIRST DAY OF INSTRUCTION.

OKAY, I'LL PASS IT BACK TO MR. CHO TO TALK A LITTLE BIT MORE ABOUT THE SCOPE OF WORK RELATED TO THESE PROJECTS.

THANK YOU, JEANETTE.

THE WORK INVOLVED IN THIS PROGRAM FALLS INTO FOUR, UH, MAIN CATEGORIES.

ITS UPGRADE AND FACILITIES UPGRADE AND FURNITURE SUPPORT, AND THE MOVE COORDINATION FOR RELOCATION FOR ITS.

UH, IT'S PROVIDING, UH, COMPUTING NEEDS, UH, INFRASTRUCTURE INCLUDING, UH, PHONE SYSTEMS, NEW NETWORK, PUBLIC ADDRESS SYSTEM, AND INTRUSION ALARMS INDEPENDENT OF THE L-A-U-S-D SYSTEMS. THANK YOU.

FACILITIES IS BASIC FACILITIES, CLASSROOM UPGRADES, THEN FURNITURE IS SUPPORTING THE FURNITURE IF THEY NEED ADDITIONAL FURNITURE AND RELOCATION IS STRAIGHTFORWARD.

THERE ARE THREE TYPES OF SPACE REQUIREMENT.

FIRST 20 SCHOOL SITES ARE IDENTIFIED FOR NEW ALLOCATIONS AND OR FOR CONFIGURATIONS.

WE ARE PROVIDING MULTIPLE SCENARIOS ALONG WITH THE SCENARIOS ALONG WITH DESCRIPTIONS.

THESE ARE THE SITES THAT WOULD REQUIRE FUNDING DETAILED INFORMATION FOR EACH SCHOOL SITE IS PROVIDED IN EXHIBIT A.

TOTAL BUDGET IS $1.982 MILLION WITH $500 SECOND, ANOTHER 20 SCHOOL SITES IN EXHIBIT B.

THESE ARE THE ONES REMAINING THAT DOES NOT REQUIRE ANY CHANGE OR RECONFIGURATION.

LAST SIX SITES IN EXHIBIT C ARE VACATING SITES.

SO THESE WILL NEED TO BE CONVERTED BACK TO L-A-U-S-D FOR OUR USE.

AND THE BUDGET FOR THAT IS 600 K.

SO TOTAL, TOTAL BUDGET FOR THIS PROGRAM AT THIS TIME IS 2,000,600, 6,000 HUNDRED $42.

IF YOU HAVE ANY QUESTION, UH, JEANETTE AND I WILL TRY TO ANSWER.

JUST TOUCHED ON SOMETHING AT THE VERY END AND I WAS GONNA ASK ABOUT THAT IS WITH, UH, ATTENDANCE DROPPING AND IT SEEMS, AND CORRECT ME ON THE CHARTER SCHOOLS, IS THAT EVERY YEAR THEY HAVE TO RESUBMIT TO HAVE APPROVAL AND THEN, UH, SOME OF THE SCHOOLS ARE LOSING ATTENDEES AND HENCE WE HAVE, YOU KNOW, THE 600,000 TO REDO L-A-U-S-D.

ANY QUESTIONS? MR. PANSKY

[02:35:02]

WHAT ARE THE, UM, I DON'T KNOW WHAT, HOW YOU DESCRIBE IT PROPERLY? UH, I, I'LL SAY THE POTENTIAL OF ALL OF THESE SCHOOLS STAYING WITHIN THE CHARTER SYSTEM, THAT THESE CHANGES THAT YOU'RE REQUESTING ARE GONNA BE LONG TERM INSTEAD OF SHORT TERM BECAUSE OF THOSE DIFFERENT TYPE OF CHANGES.

UH, I WOULD SAY BY VIRTUE OF IT BEING AN ANNUAL PROCESS, THE CHARTER SCHOOLS DON'T HAVE TO MAKE THAT LONG-TERM COMMITMENT, UM, AT THE SITE.

UM, HOWEVER WE ARE PREPARED FOR IT AND WE ASSESS OUR OWN SPACE NEEDS ANNUALLY AS WELL.

UM, WE HAVE IN THE ENVIRONMENT OF DECLINING ENROLLMENT, SEEN SOME CHANGES, UM, WITH OUR CHARTER SCHOOLS AND, UM, SOME THAT ARE CLOSING OR MAYBE MOVING TO DIFFERENT FACILITIES FOR DIFFERENT REASONS THAT THEIR GOVERNING BOARDS MIGHT, UM, ENTERTAIN.

SO, UM, IT, IT VARIES YEAR TO YEAR, BUT OVERALL OUR, OUR NUMBERS HAVE BEEN TRENDING DOWN AS, AS IS THE THAT'S WHAT I THOUGHT.

AND, AND I DON'T WANT TO, UH, TOTALLY, UH, GO DOWN ON IT.

I GUESS ONLY QUESTION IS, WHAT ARE YOU, WHAT ARE THE CHARTER SCHOOL SYSTEMS DOING TO PROTECT THOSE, THE SCHOOLS, THE ASSETS SO THAT THE, WHEN THESE INVESTMENTS ARE MADE, WE WE'RE NOT WASTING MONEY IN TERMS OF WHEN, AS THEY'RE USING THE SITES, HOW ARE THEY? WELL, I'M, LET'S SAY CHARTER SCHOOL A NO NAME, NO LOCATION, JUST PLAIN CHARTER SCHOOL.

I'M GONNA REQUEST, UH, UPGRADES OF $50,000, WHATEVER THOSE UPGRADES ARE GONNA BE.

AND I'M ON THE BRIDGE OF WHETHER OR NOT I'M GONNA BE BACK NEXT YEAR OR NOT.

HOW ARE YOU MONITORING MY SCHOOL SO THAT WHEN YOU'RE MAKING THE $50,000 REQUEST, I, WELL, WE SHOULD WAIT A YEAR AND MAKE SURE YOU'RE SOLID.

LIKE WHAT IS THAT KIND OF PROCESS? IT'S INTERESTING BECAUSE OUR, OUR LEGAL OBLIGATION IS TIED DIRECTLY TO THEIR FACILITIES REQUEST AND WHAT THEY'VE PUT IN THAT REQUEST.

NOW, WITHIN THAT, THERE IS SOMETHING CALLED AN ALTERNATIVE AGREEMENT WHERE WE CAN ENTER INTO SOMETHING SEPARATE FROM THE STRICT, UM, YOU KNOW, LEGAL PARAMETERS OF, OF WHAT AMOUNT OF SPACE SHOULD BE ASSIGNED TO THE CHARTER SCHOOL.

AND SO THERE ARE CASES IN WHICH WE, UM, WE DISCUSS WITH THE CHARTER SCHOOL, THEY MAY NEED LESS SPACE THAN, YOU KNOW, THE, THE NUMBERS SHOWED THAT THEY MIGHT.

UM, AND SO WE ARE ABLE TO ENTER INTO THOSE ALTERNATIVE AGREEMENTS TO THEN, UM, PERHAPS, YOU KNOW, NOT HAVE TO CONFIGURE ADDITIONAL SPACES THAT MAY END UP NOT BEING NEEDED.

SO THERE IS AN ONGOING CONVERSATION WITH CHARTER SCHOOLS TO, TO TRY TO FIND THAT, THAT BALANCE.

SO WHEN YOU BRING THESE LISTS TO US, THEY'RE, THEY'VE BEEN REALLY KINDA LOOKED AT TWO OR THREE TIMES AND PROCESSED.

SO WE'RE GETTING THE DEFINITE MOST POSITIVE ANSWER YOU CAN GIVE US.

THIS IS WHAT OUR OBLIGATION IS AS OF TODAY.

UM, AGAIN, TOMORROW IS THE DEADLINE FOR CHARTER SCHOOLS TO RESPOND.

SO THIS LIST WILL CHANGE? IT WILL, IT WILL, YES.

UM, IF THERE ARE SCHOOLS THAT DECLINE OFFERS, UM, IF A SCHOOL WITHDRAWS THEIR REQUEST, UM, AND SO WE MAY SEE THOSE CHANGES EVEN BEFORE WE GO TO THE BOARD OF EDUCATION IN A COUPLE WEEKS.

UM, AND SO WE DO PLAN FOR THAT AS WELL.

BUT THIS, THIS GIVES US THE AUTHORITY TO BE ABLE TO, YOU KNOW, DO WHATEVER MIGHT HAPPEN TO MEET OUR LEGAL REQUIREMENTS.

AND MARK, WOULD YOU BE ABLE TO BRING BACK LIKE NEXT MONTH A UPDATE THAT OUT OF THE REQUEST FOR BLANK? WE ENDED UP DOING X SO WE WOULD KNOW WE APPROVED 2,000,600 THAT YOU ONLY USED 1,500,000, SOMETHING LIKE THAT? WE CAN, OKAY.

AND THE ACTUAL WORK THAT IS DONE WILL TAKE PLACE OVER THE SUMMER.

UM, AND SO WE MAY NOT KNOW THE ACTUAL COSTS THAT ARE EXPENDED UNTIL WE HAVE ALL OF THOSE MORE DETAILED SCOPES OF WORK THAT TAKE PLACE ONCE WE ARE GETTING CLOSER TO SUMMER.

SO SOME OF THE, THE MORE DETAILED INFORMATION MAY TAKE A LITTLE BIT LONGER THAN THE NEXT MONTH, BUT WHAT WAS APPROVED MM-HMM .

WE CAN GET THAT NEXT MONTH.

YES.

BECAUSE YOU EVERYTHING WILL GET FINE TUNED.

YES.

TO OFFSET SOME OF WHAT YOU'RE SPENDING FOR THE REPAIRS OR UPGRADES THAT YOU NEED TO DO TO THE CLASSROOMS. ARE YOU REFERRING TO THE PRO RATA SHARE CHARGE? THE, THE AMOUNT THAT THE CHARTER SCHOOLS PAY FOR THE USE OF THE FACILITY UNDER PROP 39 ANNUALLY? YEAH.

ANY OTHER QUESTIONS MS. BELL? YES.

UM, THANK YOU.

I ALSO HAVE A QUESTION WONDERING WHETHER OR NOT SOME OF THE, WHAT I CONSIDER SOMEWHAT SIGNIFICANT INCREASES IN THE LEASE RATES THAT WERE INTRODUCED TO THE SCHOOLS HELPED TO COMPENSATE FOR SOME OF THESE COSTS.

LIKE IS IT AN OFFSET? CAN YOU REPEAT THAT QUESTION, MS. BEL? WELL, RECENTLY THE SCHOOLS WERE INTRODUCED WITH, YOU KNOW, SIZABLE INCREASES IN IN THEIR LEASE RATES.

UM, AND I'M JUST WONDERING IF ANY OF THOSE INCREASES HELPED

[02:40:01]

AND THE INCREASES THAT, THAT WERE THEN PASSED ALONG TO THEM MORE RECENTLY, WHICH SEEMED TO BE HIGHER THAN, YEAH.

MY UNDERSTANDING OF THAT IS THAT THE, THE PRO RATA SHARE CHARGE IS LOOKING AT WHAT THE DISTRICT'S ACTUAL COSTS ARE.

AND SO IT IS GOING INTO ALL THE DIFFERENT AREAS THAT, THAT ARE MAKING THE SPACES READY AND, AND USED IN A REASONABLY EQUIVALENT MANNER.

SAY THAT AGAIN.

IT'S GOING INTO IT, IT GOES INTO THE PROGRAM, RIGHT? IT'S FOR ACTUAL COSTS.

THAT'S OUR PRO RATA SHARE CHARGE.

BUT THESE AREN'T CONSIDERED ACTUAL COSTS.

YOU'RE TALKING ABOUT OPERATIONAL VERSUS FACILITIES? WELL, THESE ARE THE FACILITIES UPGRADES.

SO THERE'S THEN THE PRO RAT SHARE CHARGE HAS TO DO WITH, YOU KNOW, THEIR USE OF THE FACILITY.

SO IT'S KIND OF A DIFFERENT, A DIFFERENT, OKAY.

WELL THEN IT DOESN'T OFFSET, IT'S NOT REALLY AN OFFSET TO THIS.

NO.

ALRIGHT, THANK YOU.

ANYBODY ELSE HAVE ANY COMMENTS WITHOUT, IS THERE AN, OH, MR. SULLIVAN? SO, SO JUST TO KIND OF JUMP OFF OF THAT, SO THERE IS A CHARGE THAT THE, THAT THAT THE CHARTERS ARE BEING CHARGED TO USE THE, THE, THE SPACE AND THAT MONEY IS NOT BEING USED TO MAKE THE SPACE PREPARED FOR THAT CHARTER SCHOOL.

AND SO ESSENTIALLY YOU'RE TAKING THE, THE DISTRICT IS TAKING IN MONEY FOR THAT AND THEN ASKING US TO APPROVE THE USE OF BOND FUNDS TO MAKE THE SPACE READY.

I'M JUST KIND OF TRYING TO WRAP MY HEAD AROUND THAT A LITTLE BIT.

SO THE PRO RATA SHARE CHARGE.

HI CHRISTINA.

UM, THE PRO RATA SHARE CHARGE HAS DIFFERENT LINE ITEMS WITHIN IT AND IT HAS TO DO WITH THE ACTUAL OPERATIONS.

SO FOR EXAMPLE, THERE'S A LINE ITEM FOR OEHS, RIGHT? SO THAT HAS MORE TO DO WITH THE ACTUAL COSTS OF PROVIDING THE OEHS SERVICES AT THE SITE.

ELLIE SCHOOL POLICE IS A LINE ITEM IN THEIR FACILITIES, PRO RATA SHARE CHARGE M AND O.

UM, ALL THESE DIFFERENT ASPECTS OF THEIR ACTUAL USE OF THE SITE, UM, ARE MAKING UP THAT THE ACTUAL COSTS OF THEM BEING ON THE SITE AND OPERATING THROUGHOUT THE SCHOOL YEAR.

SO IT'S A LITTLE BIT DIFFERENT.

IS THERE A MOTION I MOVE THAT WE APPROVE THESE ITEMS? MOTION BY, UH, CAMPBELL.

IS THERE A SECOND? OBERGFEL SECONDS.

OVER MR. FEL? YEP.

THERE WE GO.

MR. PANSKY, CAN YOU PANSKY MR. PANSKY? YOU DON'T GET A CHANCE TO DO THIS, THIS TIME? .

MR. TIM? UH, POPE JOY, CAN YOU CALL FOR THE VOL? THANK YOU MR. CHAIR.

UH, MEMBERS, THIS IS THE VOTE ON AGENDA ITEM NUMBER EIGHT RELATED TO THE PROP 39 PROJECTS.

THE RELU, THE RESOLUTION RECOMMENDING APPROVE, UH, RECOMMENDING THAT THE BOARD APPROVE THESE PROJECTS IS ADOPTED WITH 11 AFFIRMATIVE VOTES.

NEXT ITEM

[9. Five Accessibility Enhancement Projects and Amend the Facilities Services Division Strategic Execution Plan to Incorporate Therein]

ON THE AGENDA.

ONLY REASON WHY I'M ASKING IS I, I THOUGHT I SAW OUR CHIEF EXECUTIVE OFFICER STANDING OVER THERE.

SO WE ARE PASSING ON YOUR REPORT TODAY TO THE BEGINNING OF OUR MEETING IN MAY.

WE WOULD TRY TO TARGET FOR THOSE SPECIFIC SCHOOLS.

UM, WELL THEN LET ME GO AHEAD AND INVITE, UH, FOR ITEM NUMBER NINE.

THESE ARE FIVE A DA PROJECTS AND MR. ISAM DUL, DIRECTOR OF FACILITIES PLANNING AND DEVELOPMENT IS HERE TO PRESENT THE ITEM.

GOOD AFTERNOON.

UH, BOC CHAIR, BOC MEMBERS, THANK YOU FOR THIS OPPORTUNITY.

UH, MY NAME IS ASAM DWELL.

I'M THE DIRECTOR FOR FACILITIES PLANNING AND DEVELOPMENT.

UM, THANK YOU FOR THIS OPPORTUNITY TO PRESENT FIVE, UM, ACCEL ACCESSIBILITY ENHANCEMENT PROJECTS.

YOU'VE SEEN, UH, WE'VE BEEN BEEN BRINGING PROJECTS LIKE THIS FORWARD TO THE BOC OVER THE COURSE OF THE LAST FEW YEARS.

UM, AND SO WE ARE BRINGING FIVE OF THESE PROJECTS TODAY.

UM, AS A WAY OF JUST A LITTLE BIT OF BACKGROUND, UM, YOU KNOW, IN OCTOBER OF 2017, THE BOARD APPROVED THE SELF-EVALUATION AND TRANSITION PLAN.

UM, THIS IS UNDER THE A DA, UM, TO FURTHER THE DISTRICT'S EFFORTS TO COMPLY WITH A DA TITLE TWO PROGRAM ACCESSIBILITY REQUIREMENTS.

SO UNDER THE TRANSITION PLAN, ULTIMATELY EACH SCHOOL IS ASSIGNED, UH, ONE OF THREE DIFFERENT LEVELS OF ACCESSIBILITY.

AND THIS ULTIMATELY HELPS DETERMINE, UM, HOW WE PRIORITIZE AND WHAT THAT PROJECT IN TERMS OF THE LEVEL OF ACCESSIBILITY

[02:45:01]

AND SO THE ACCESSIBILITY LEVELS, UH, LEVEL ASSIGNMENTS AND PRI PRIORITIZATIONS, THEY'RE BASED ON MULTIPLE FACTORS, UM, SCHOOL PROGRAMS, MATRICULATION, FEEDER PATTERNS, ET CETERA.

SO WE ULTIMATELY WORK WITH OUR A DA COMPLIANCE, UM, ADMINISTRATOR, MR. KEN ARRINGTON, TO HAVE HIM DETERMINE AND HELP, UM, IDENTIFY WHAT THE PRIORITIES ARE IN TERMS OF WHERE WE NEED TO TARGET FACILITIES IMPROVEMENTS TO MAKE OUR CAMPUSES MORE ACCESSIBLE.

SO THERE'S DIFFERENT LEVELS OF ACCESSIBILITY.

LEVEL ONE, UH, WOULD BE A SCHOOL WITH THE HIGHEST LEVEL OF ACCESSIBILITY, MEANING, UM, IT'S EITHER FULL ACCESSIBILITY OR VERY HIGH ACCESSIBILITY WITH VERY LIMITED EXCEPTIONS.

UM, CATEGORY TWO WAS WOULD BE TO MAKE THE PROGRAMS ACCESSIBLE, RIGHT? SO YOU'D HAVE THE CORE ACCESS CORE FACILITIES, ALL CORE FACILITIES WOULD BE ACCESSIBLE, AS WELL AS MAKING SURE THAT SPECIFIC PROGRAMS IN ALL PROGRAMS WITHIN THE SCHOOL ARE ACCESSIBLE.

BUT THEY, THE ENTIRE CAMPUS MAY NOT NECESSARILY BE BROUGHT, UM, ENTIRELY UP TO, UM, A DA, UH, OR UPGRADED TO FULL ACCESSIBILITY.

UM, AND THEN THREE WOULD BE TO PROVIDE CORE ACCESS.

AND SO ULTIMATELY IT'D BE A BA UM, A BASIC LEVEL OF, UM, CORE BUILDINGS AND COMMON SPACES THAT WOULD PROVIDE ACCESSIBILITY.

AND SO THE ACCESSIBILITY ENHANCEMENT PROJECTS ARE DEVELOPED FOR THE SCHOOLS THAT ULTIMATELY DON'T HAVE THE LEVEL THAT WE HAVE TARGETED FOR THEM.

AND SO WE BRING FORWARD THESE PROJECTS TO GET THEM TO THAT LEVEL THAT WE HAVE IDENTIFIED.

SO TODAY WE'VE GOT FIVE PROJECTS.

YOU CAN SEE, UH, WITH THE MAP HERE, POMELO COMMUNITY CHARTER ELEMENTARY SCHOOL, MARK TWAIN MIDDLE SCHOOL, 150 SIXTH STREET ELEMENTARY SCHOOL, NUEVA VISTA, AND MELVIN ELEMENTARY SCHOOLS.

SO WE'VE GOT A GOOD SPREAD THROUGHOUT THE DISTRICT.

UM, THE TOTAL PROJECT BUDGETS, UH, BETWEEN THE FIVE PROJECTS IS $46 MILLION.

THE, UM, THE GOAL IS TO HIT A CATEGORY TWO LEVEL OF ACCESSIBILITY AT EACH OF THESE CAMPUSES.

AND YOU CAN SEE THE BREAKDOWN THERE OF EACH PARTICULAR, UM, CAMPUS.

AND SO OUR TEAM PUTS TOGETHER OBVIOUSLY A SCOPE, UM, RELATIVE TO WHAT THE ACCESSIBILITY UPGRADES ARE GOING TO BE AND ASSIGNS A BUDGET AND SCHEDULE.

UM, JUST A LITTLE BIT OF BACKGROUND INFORMATION ON EACH OF THE SCHOOLS.

WE PROVIDE, UM, ENROLLMENT, UH, INFORMATION AS WELL AS THIS, YOU KNOW, BUILDING DATES WHEN THEY WERE BUILT AND THE PROGRAMS THAT ARE CURRENTLY OPERATING THAT CHART THERE SHOWS, UM, INTERIOR SQUARE FOOTAGE AS WELL AS EXTERIOR SQUARE FOOTAGE, UM, OF THE CAMPUS.

JUST TO GIVE YOU A GENERAL IDEA OF HOW BIG THESE SCHOOLS ARE BOTH IN BUILDING AS WELL AS IN, UM, SHEER SIZE IN TERMS OF ACREAGE OF THE CAMPUS ITSELF, UM, WHICH BOTH CAN HAVE A PLAY A FACTOR IN TO, UM, THE ACCESSIBILITY AND HOW MUCH THE ULTIMATE COST OF PROVIDING ACCESSIBILITY ENDS UP BEING.

UM, JUST BACKGROUND INFORMATION, JUST A LITTLE INFORMATION ON EACH OF THE SCHOOLS AND THE DIFFERENT LEVELS, OR SORRY, THE DIFFERENT, UM, DISABILITY CATEGORIES AND HOW MANY CURRENT STUDENTS, UM, MEET THOSE, UM, CATEGORIES.

SO I'LL JUST FLIP THROUGH EACH OF THESE PROJECTS.

UM, FOR EACH OF THE PROJECTS, WE'VE GOT A SCOPE SCHEDULE, UH, BUDGET.

UM, SO THIS IS 150 SIXTH STREET ELEMENTARY SCHOOL.

YOU CAN SEE THE SCOPE REQUIRES PATHS OF TRAVEL, RESTROOM UPGRADES, UM, DRINKING FOUNTAINS, PARKING AREA, ET ET CETERA.

THIS PROJECT IS $4.5 MILLION AND WE'VE PROVIDED A BREAKDOWN BETWEEN THE DIFFERENT, UH, BUDGET ITEMS IN TERMS OF THE PERCENTAGE AS WHAT THEY MAKE UP OF THE ACTUAL PROJECT.

WE ANTICIPATE STARTING CONSTRUCTION IN THE THIRD QUARTER OF 2028.

UM, AS YOU KNOW, WITH THESE PROJECTS, WE HAVE TO GO THROUGH A FULL DESIGN EFFORT, UM, GET THE, UH, ARCHITECT ON BOARD FULL DESIGN EFFORT, GO TO THE DIVISION OF STATE ARCHITECT FOR APPROVAL, UM, AND THEN OBVIOUSLY GO OUT TO BID AND START CONSTRUCTION.

AND SO WE ANTICIPATE STARTING CONSTRUCTION IN THE THIRD QUARTER OF 2028 AND COMPLETION BY THE FIRST QUARTER OF 2030.

AND THIS PARTICULAR CAMPUS AT 1 56 IS TK THROUGH SIX WITH 342 STUDENTS.

MELVIN ELEMENTARY SCHOOL.

AGAIN, I WON'T READ THROUGH ALL OF THE SCOPE, BUT YOU CAN SEE THERE THE DIFFERENT A DA UPGRADES THAT THE TEAM HAS IDENTIFIED, UM, TO PROVIDE UPGRADES TO ACCESSIBILITY, UM, AND ENHANCEMENTS.

UM, THE PROJECT BUDGET ON THIS IS $9.9 MILLION AND THIS SIMILAR TO THE OTHER ONE, WE'RE ASSUMING A THIRD QUARTER, 2028, UM, CONSTRUCTION START WITH A COMPLETION IN THE FIRST QUARTER OF 2030.

AND THIS SCHOOL IS TK THROUGH FIFTH WITH 360 STUDENTS IN THE WAY OF VISTA ELEMENTARY SCHOOL.

UM, $7.5 MILLION PROJECT.

UM, AGAIN, I WON'T READ THROUGH THE SCOPE, BUT YOU CAN SEE, UM, THIS SCHOOL, UM, IS UH, ABOUT 591 STUDENTS.

AND AGAIN, THE SAME SCHEDULE WITH THE, UM, 2028 START AND 2030 COMPLETION.

AND POMELO COMMUNITY CHARTER ELEMENTARY SCHOOL, THIS IS A DISTRICT, UM, AFFILIATED CHARTER.

IT'S, UH, SCOPE INCLUDES, AGAIN, UM, FULL, YOU KNOW, ENHANCEMENTS OF THE CAMPUS WITH VARIOUS LEVELS OF, UM, UPGRADES.

$8.5 MILLION

[02:50:01]

IS THE TOTAL PROJECT BUDGET, CONSTRUCTION START AND, AND COMPLETION, SAME AS THE OTHER PROJECTS.

UM, AND APPROXIMATELY 642 STUDENTS AT THIS CAMPUS.

UM, I BELIEVE THIS IS THE LAST ONE, MARK TWAIN IN MIDDLE MIDDLE SCHOOL.

YOU CAN SEE THIS IS A BIGGER CAMPUS, UH, WITH A LOT MORE ACCESSIBILITY ENHANCEMENTS, UM, WHICH IS SHEER SIZE OF THE CAMPUS ITSELF WITH A $15.5 MILLION, UM, BUDGET.

AND WITH THAT, UM, THANK YOU AND I WILL TAKE QUESTIONS.

ANY QUESTIONS, CAMPBELL? YEAH, DO, DO ANY OF THESE SCHOOLS HAVE, UM, EITHER PLANNED OR CURRENTLY IN PROGRESS, UH, ENHANCEMENTS IN OTHER AREAS? I, I, I FEEL LIKE POMELO MAYBE I STICKS IN MY MIND AS, AS SOMEWHERE WHERE WE HAD RECENTLY, I SAY RECENTLY, WITHIN THE LAST COUPLE OF YEARS, TALKED ABOUT A PROJECT, BUT, BUT I I COULD BE BADLY MISREMEMBERING THAT.

YES, THAT'S A GOOD, UH, YES.

PAMELA HAS A, SORRY, PAMELA HAS A PLAYGROUND AND CAMPUS EXTERIOR UPGRADE PROJECT.

SO WE CALL 'EM PACE UP.

IT'S BASICALLY REPLACING ALL OF THE ASPHALT AND GREENING THE CAMPUS.

AND SO OUR TEAM IS WORKING IN COLLABORATION WITH THE ARCHITECT WORKING ON THAT PROJECT AS WELL.

AND THAT HASN'T STARTED YET, THAT PROJECT? UM, I BELIEVE WE ARE, LET'S SEE, LEMME GIMME ONE SECOND PLEASE.

UM, THAT PROJECT HAS NOT STARTED CONSTRUCTION.

WE'RE IN THE DESIGN PHASE AT THIS POINT.

AND SO WE'LL MAKE SURE THAT WE'RE COORDINATING, UM, BETWEEN THE TWO.

WE'VE ALREADY STARTED THE, THE COORDINATION AND IDENTIFIED WHERE THERE MIGHT BE OVERLAP OR NOT, SO THAT WE'RE NOT DUPLICATING EFFORTS AS WELL.

AND WE'LL, WE'LL ACTUALLY WORK TO, AS WE GO THROUGH THE DESIGN PROCESS FOR BOTH PROJECTS, IDENTIFY WHETHER WE CAN START CONSTRUCTION WITH ONE CONTRACTOR FOR BOTH.

THAT'S A HELPFUL DATA POINT I THINK JUST FOR, FOR ALL OF US.

'CAUSE AGAIN, YOU LIVE THIS EVERY DAY AND THEN WE SHOW UP AND TRY TO REMEMBER LIKE, GOSH, THAT NAME SOUNDS FAMILIAR.

YOU KNOW, UM, IT IT, YOU KNOW, OBVIOUSLY STUFF COMES UP AND TIMING CAN'T ALWAYS BE OPTIMIZED, BUT WHEN, WHEN IT'S POSSIBLE, I THINK IT MAKES A LOT OF SENSE TO, YOU KNOW, YOU'RE TOUCHING THE ASPHALT FOR EXAMPLE, AND YOU KNOW, THERE'S A LOT OF POTENTIAL UTILITY AND PATH OF TRAVEL IMPLICATIONS AND THEN, YOU KNOW, TO HAVE TO LIKE DIG IT UP AGAIN TO PUT IN A RAMP OR, OR THE OTHER WAY AROUND, RIGHT? YOU MAKE IMPROVEMENTS AND THEN IT'S LIKE, OH SORRY, WE GOTTA CUT THROUGH THIS RAMP NOW AND, AND REPORT IT 'CAUSE WE GOTTA LAY A NEW PIPE OR SOMETHING.

YOU KNOW? UM, IT, I THINK IT HELPS US TO, TO, TO KNOW THAT.

THAT IT'S, WE'RE GONNA VOTE IN LIKE 30 SECONDS AND I'M, WE GOT A MINUTE AND A HALF STILL.

THANK YOU MR. PANSKY.

DO YOU STILL HAVE THAT QUESTION? ? UM, DO YOU KNOW HOW MANY MORE A DA PROJECTS YOU'RE BRINGING TO US? UH, REST OF THE YEAR? YEAH, GREAT QUESTION.

UM, THERE IS APPROXIMATELY $200 MILLION REMAINING, UM, IN THE, UH, I'LL CALL IT THE BUCKET IF YOU WILL, OF UH, A DA.

AND SO WE'LL CONTINUE TO BRING PROJECTS AS WE GO THROUGH THE MEASURE US.

SO I CAN'T GIVE YOU AN EXACT NUMBER, UH, BUT WE'RE CONTINUING TO SCOPE PROJECTS.

UM, YOU CAN SEE ON AVERAGE THESE ARE ABOUT $10 MILLION.

SO, UM, GIVE YOU, GIVES YOU A GENERAL IDEA OF ROUGHLY HOW MANY MORE PROJECTS WE WOULD BE BRINGING FORWARD AS WE CONTINUE.

SO STAYING ROUGHLY IN THAT RANGE THAT YOU'D STILL HAVE A HUNDRED MILLION LEFT FOR NEXT YEAR, BUT THERE'S 200 MILLION BEFORE THESE PROJECTS, SO THAT WOULD REMAIN ABOUT 150.

SO SUBTRACTING THIS, CORRECT.

OKAY, THANK YOU.

KIND OF SEGUES INTO A COMMENT I I WANTED TO MAKE, AND I'M NOT TRYING TO REIGNITE, YOU KNOW, SOME THOUGHTS THAT WE'VE HAD OVER TIME.

YOU KNOW, AS WE LOOK AT A PROJECT AND YOU'RE IN THIS, I, I LIKE TO LOOK AT WHAT YOU DO IS, YOU KNOW, THERE'S THESE THREE PHASES OF REALITY.

YOU'RE ESTIMATING A PROJECT BUDGET RIGHT NOW WITH YOUR ASSESSMENT, YOUR TEAM, YOUR HYSTERICAL DATA, NOT HYSTERICAL HISTORICAL DATA THAT YOU GUYS HAVE IN TERMS OF ASSESSING WHAT YOU THINK THE NEED, THE COST WOULD BE.

AND YOU BRING YOUR A AND E TEAM COME IN AND DOES THE ACTUAL DESIGN ASSESSMENT, WHICH CODE COMPONENTS AND MORE DETAIL.

SOMETIMES THAT NUMBER COULD BUMP EVEN THOUGH YOU'VE GOT A CONTINGENCY.

AND THEN THE REALITIES OF CONSTRUCTION, WHICH ARE, YOU ARE PROJECTING, YOU'RE OBVIOUSLY PROJECTING THREE, THREE YEARS OUT PERHAPS, AND A LOT OF THIS.

AND SO THOSE NUMBERS CHANGE A LOT.

UM, AND SO WE, WE DON'T ALWAYS KNOW WHAT THOSE END NUMBERS ARE AND THEN WE SEE THEM AND I THINK SOME OF US BECOME ALARMED.

BUT IF YOU REALIZE WHAT WE JUST TALKED, WHAT I JUST SHARED WITH YOU AND YOU'RE AFFIRMING IS THAT, YOU KNOW, WE ARE TAKING THESE GAMBLES AND WE DON'T CONTROL PRODUCTIVITY AND, AND OF COURSE LABOR COSTS.

AND THEN THERE'S SOME MATERIAL COSTS WHICH IS FLUCTUATED ALL OVER THE PLACE AND LOGISTICS, PRODUCTIVITY.

SO I'M, I GUESS I'M JUST STATING THAT BECAUSE I KNOW HOW MUCH OF A CRAPSHOOT THIS IS.

UM, I KNOW IT KIND OF TY IT TIES INTO SOMETHING LIKE LATER ON.

IT'D BE REALLY NEAT TO KNOW LIKE WHAT THE END COSTS WERE TO SEE WHAT THE DELTA WAS AND NOT THAT WE'RE TRYING TO EVALUATE YOU ON HOW GOOD YOU ARE AT YOUR GAME.

'CAUSE YOU, I MEAN THIS IS, YOU'D HAVE A BETTER CHANCE OF WINNING THE LOTTERY THAN, YOU KNOW, WITH THE WAY THE WORLD IS TODAY.

BUT ANY CASE, I'M JUST STATING THAT FOR, YOU KNOW, FOR WHATEVER BESIDES

[02:55:01]

I, I FIGURED I'D TAKE USE OF TIME.

UM, ANY OTHER COMMENTS? NO.

IS THERE A, IS THERE A MOTION? ALL MOTION.

MOTION BY SULLIVAN SECOND BY PETERSON? YES.

PETERSON.

AND WITH THAT, WITH THAT MR. POPE JOY, CAN WE CALL FOR THE VOTE? YES.

MR. CHAIR MEMBERS, THIS IS THE VOTE ON AGENDA ITEM NUMBER NINE TO ADOPT THE RESOLUTION RECOMMENDING FIVE A DA PROJECTS MS. BELL AYE.

MR. CAMPBELL? AYE AND MR. HAMNER? AYE THE RESOLUTION IS ADOPTED WITH 11 AFFIRMATIVE VOTES.