Thursday, May 15, 2008

Mismanagement of Bond Funds Plagues Delta College

Delta's future in Lodi iffy? Despite skyrocketing costs, administrators claim satellite campus will become a reality
Lodi News-Sentinel (CA) - April 3, 2007
Author: Chris Nichols News-Sentinel Staff Writer

Ballooning costs at San Joaquin Delta College's new campus in Mountain House and a mismanagement of other funds have wiped out more than $23 million originally set aside for classrooms and other capital projects at Delta's future Lodi and Manteca campuses, a college trustee said Monday.

Ted Simas, who represents Manteca on the college board of trustees, said Delta administrators early last month removed Lodi and Manteca from a priority list for capital funding.

"There is nothing, not a portable toilet," Simas said. "When the box is blank that means (the funding) is gone."

Lodi residents and leaders have reacted with concern this past week about Delta's trouble managing its $250 million bond, approved by voters in 2004 for college upgrades and expansion.

Delta College administrators acknowledge bond construction costs have spiked beyond what they expected, but maintain that the Lodi campus will be built.

And two Lodi city councilmen dismiss fears that the entire project is in jeopardy.

Lodi Mayor Bob Johnson and Councilman Larry Hansen noted that plans to purchase the 118-acre Lodi campus at Victor Road and Kennison Lane are still moving forward.

"I'm still optimistic that we're going to see a campus built in Lodi," said Hansen. "It's challenging because the pool of (Measure L bond) money is shrinking. I recognize that."

Simas, the college trustee, referred Monday to a Measure L bond update report, which shows that the college has earmarked money for the purchase of campus sites in Lodi and Manteca but also includes a blank box under "Lodi center facilities" earmarks.

The bond update was discussed at the trustee's March 8 meeting.

Timeline for Delta College's Lodi campus March 2004: Voters in the San Joaquin Delta College district approved Measure L, a $250 million bond that set out to upgrade Delta's Stockton campus and establish new campuses in the region, including the Lodi-Galt area. November 2006: Delta College Trustee Maria Elena Serna is reelected to her fifth term on the Delta College Board of Trustees, representing the Lodi area. December 2006: The Delta College Board of Trustees vote to purchase 118 acres of property east of Lodi between Victor Road and the Mokelumne River to build a future Lodi satellite campus. March 2007: Delta College administrators and trustees acknowledge that project costs for the Mountain House campus near Tracy have ballooned from the initial $50 million estimate to more than three times that figure. Despite the financial troubles, Delta College President Raul Rodriguez maintains the Lodi campus will be purchased and classrooms will be constructed, without the need for an additional bond measure. — News-Sentinel staff. He also questioned why Delta agreed to spend so much on the Lodi campus — upwards of $15 million, including infrastructure costs — but then took money away from classroom construction.

Delta College Trustee Maria Elena Serna, who represents Lodi, could not be reached for comment.

Delta College President and Superintendent Raul Rodriguez, however, acknowledged Monday that the high cost of the bond projects has forced the college to remove earmarks for Lodi and Manteca's capital projects .

But he said the college will find other ways to raise money, or streamline other bond projects , so classroom construction money is available for the two future satellites. Rodriguez said he did not think an additional bond measure would be needed to fund the Lodi campus.

He confirmed that Delta's agreement to purchase the 118-acre Lodi campus is moving forward.

"Lodi is definitely one of the critical projects that we're going to do," Rodriguez said, adding that portable classrooms used first at the Mountain House campus could later be used in Lodi, saving the college some money.

He added that as enrollment rises at the future Lodi campus, Delta will be eligible for more capital project funds from the state.

Lodi City Councilwoman JoAnne Mounce said she is concerned about the college's management of the bond money, noting Delta "promised" a campus to the city and its residents.

Ann Cerney, a former Delta trustee and local activist, added that it would be "tragic" for the campus project to come to a halt "because so many people decided to support this."

Johnson, in contrast, said Delta has been committed to Lodi despite its financial troubles at other sites, including Mountain House.

Project costs there have spiked from an initial estimate of $50 million to upwards of $160 million, according to Simas.

He noted that Delta's purchase agreement for the east Lodi campus was a very big step.

"What people have to realize is Delta College never promised this thing would materialize overnight," he added.

Contact reporter Chris Nichols at chrisn@lodinews.com.

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