Secrecy in Delta College audit will ensure full public disclosure
By The Record
September 25, 2008 6:00 AM
State auditors will work behind the scenes as they try to determine how San Joaquin Delta College spent the $250 million bond money approved by voters four years ago.
This private work will result in what officials from the state Controller's Office say will be a very public report. In fact, some public hearings may take place during the investigation.
Two members of the citizen oversight committee object to the private protocol. They want the audit conducted in full view of the public, and on first blush, that seems reasonable.
It's not. The auditors' reasoning is simple: They want to get as much information as possible. And they want as much accuracy as possible.
Interviewing people in public could hamper those goals. When it's over, we may find out why the district has only about $66 million of the $250 million left. Why there are enormous differences between what was promised and what will happen. And who is responsible for the shortcomings.
When the tough questions are finally asked, the auditors worry that in a public setting, those being questioned would hedge their answers. There also is the worry that others to be interviewed will know what was said beforehand.
Think of it as the routine practice of a judge excluding witnesses from the courtroom until it is their turn to testify.
The Record supports public disclosure and the public's business being done in the open. Delta College trustees have repeatedly taken lightly the provisions of the Ralph M. Brown Act, the state's open meetings law. They as much as admitted they had done so in responding to a grand jury report that accused them of just such violations.
But an audit is different. And as long as the results are fully disclosed, the public's right to know is sustained.
Source
Friday, September 26, 2008
Monday, September 15, 2008
San Joaquin Delta College Faculty Vote to Support Four Board Candidates
Following its pledge to restore responsible leadership to the college board, the Delta College faculty has voted to support four candidates in the San Joaquin Delta College board of trustees election Nov. 4.
“The upcoming trustee elections are absolutely crucial to the future of the college,” said Joe Gonzales, president of the San Joaquin Delta College Teachers Association. “We believe these candidates have the skills, the talent and the commitment to rebuild the community’s trust in our community college.”
The SJDCTA Executive Council has voted to support:
“All four candidates impressed the association with their commitment to a new brand of leadership on the board — one with its focus on civility in public discussion, responsible management of taxpayer dollars, and close attention to the educational needs of students,” Gonzales said.
A grand jury report released in June sharply criticized the board for wasting millions of dollars of bond money and expressed “no confidence in the Delta College Board of Trustees as currently constituted.”
An accreditation team also took the trustees to task, concluding that the board “has devolved into a group reduced to in-fighting and micro-management of college operations.” The college is currently on probation with the Accrediting Commission of Community and Junior Colleges.
The faculty’s political action committee is working with other community groups interested in the welfare of the college to support candidates who will restore public and student confidence in Delta College.
The PAC is mobilizing resources to support the associations endorsed candidates. Activities will include working with student groups critical of the board, supporting voter registration drives to involve as many students as possible in the board election, and working closely with the Stockton Teachers Association to support teacher-recommended candidates.
Gonzales urged members of the community who care about Delta College to “please join us in our campaign to take back the college for the sake of our students.” For more information, contact Joe Gonzales at 209-298-7414 or Sam Hatch at 209-339-1211.
“The upcoming trustee elections are absolutely crucial to the future of the college,” said Joe Gonzales, president of the San Joaquin Delta College Teachers Association. “We believe these candidates have the skills, the talent and the commitment to rebuild the community’s trust in our community college.”
The SJDCTA Executive Council has voted to support:
- James Grunsky of Stockton, a businessman, and former Delta College student, for the Area 1 seat;
- Mary Ann Cox of Stockton, a retired Delta College administrator, for Area 2;
- Steve Castellanos of Valley Springs, former California state architect, now in private practice, for Area 5; and
- Teresa Brown of Tracy, an administrator for CSU, Stanislaus, for Area 6.
“All four candidates impressed the association with their commitment to a new brand of leadership on the board — one with its focus on civility in public discussion, responsible management of taxpayer dollars, and close attention to the educational needs of students,” Gonzales said.
A grand jury report released in June sharply criticized the board for wasting millions of dollars of bond money and expressed “no confidence in the Delta College Board of Trustees as currently constituted.”
An accreditation team also took the trustees to task, concluding that the board “has devolved into a group reduced to in-fighting and micro-management of college operations.” The college is currently on probation with the Accrediting Commission of Community and Junior Colleges.
The faculty’s political action committee is working with other community groups interested in the welfare of the college to support candidates who will restore public and student confidence in Delta College.
The PAC is mobilizing resources to support the associations endorsed candidates. Activities will include working with student groups critical of the board, supporting voter registration drives to involve as many students as possible in the board election, and working closely with the Stockton Teachers Association to support teacher-recommended candidates.
Gonzales urged members of the community who care about Delta College to “please join us in our campaign to take back the college for the sake of our students.” For more information, contact Joe Gonzales at 209-298-7414 or Sam Hatch at 209-339-1211.
Thursday, September 11, 2008
'We have not officially abandoned Lodi, but we have officially abandoned Highway 12'
Has Lodi been 'sold down the river?' Is there still hope for Delta College classrooms?
By Andrew Adams
News-Sentinel Staff Writer
Updated: Thursday, September 11, 2008 6:26 AM PDT
San Joaquin Delta College has abandoned plans for a campus on Victor Road — but there may still be hope for classrooms in Lodi if trustees reduce the funding for the Mountain House project near Tracy.
That may not be enough, however, to satisfy the people who supported the school's original plans for a large campus east of Lodi on Victor Road.
"I don't think they lived up to their commitment, I don't think they lived up to the bond and I don't think they lived up to the voters," said Lodi City Councilman Larry Hansen. "I'm extremely disappointed about how this turned out."
At the Delta board meeting Tuesday night, trustees voted 5-0 to abandon the school's plans for a campus in Lodi off Victor Road.
After spending $4 million on the project, the school had not even purchased property and it had become apparent that earlier plans would just be too expensive. The school spent the money on consultants, lawyers, planning work and property options.
Hansen said Delta's failure to live up to its promises to Lodi can be blamed on the school's administration and its board, which suffered from lack of direction and "paralysis by analysis."
In the 2004 election campaign to pass Measure L — and in subsequent years — Hansen had been a staunch supporter of Delta's plans for Lodi.
"Delta College came to us and told us what they were looking for, and we worked hard to assist them and they encouraged with their vision," he said. "I feel like they have really sold us down the river."
Options in Lodi
The leaders of San Joaquin Delta College's bond team presented three options to the school's board of trustees at its meeting Tuesday. College spokesman Greg Greenwood described the options and said the board is expected to discuss them during a public workshop in early October.
The options, and their costs, include:
1. Do nothing and close out remaining contracts, $200,000.
2. Continue with Victor Road project and finish in 2013, $28.4 million. (The board rejected this option with its vote Tuesday.)
3a. Purchase 15 acres with a long-term option for buying 15 more in a "master planned community" in Lodi, $4.5 million.
3b. Buy the land for $4.5 million, build needed infrastructure for $10 million and build a campus. Total cost $26.1 million to be completed in 2012.
4. Purchase an existing building in Lodi with two additional buildings for a total of 70,000 square feet, $54.7 million to be completed in 2012.
— News-Sentinel staff
With the $250 million Measure L bond reduced to around $66 million, the San Joaquin Delta College board of trustees will have to make tough decisions soon about its remaining plans for Mountain House, Manteca and Lodi.
Trustee Ted Simas said it will probably comes down to either a fully funded Mountain House campus at the sacrifice of Lodi and Manteca, or scaled down versions of all the projects.
"We have not officially abandoned Lodi, but we have officially abandoned Highway 12," he said, referring to the Victor Road site.
Trustees are expected to make a decision on the future of the satellite campuses at a meeting in October.
Simas, who represents Manteca, said based on past decisions, he wouldn't be surprised if the board opts to fund Mountain House with the remainder of the bond.
"For years, the board majority's 'yes' votes for Mountain House pretty much rammed Mountain House down our throats," he said. "I would probably imagine the board majority would go with the higher cost scenario for Mountain House."
Simas also said the demand for a campus in Lodi may not exist, pointing to a significant drop in enrollment at Lodi Unified School District this year. Instead, a smaller building serving about 100 students could really be all that Lodi needs for the time being.
Lodi Trustee Maria Elena Serna did not attend Tuesday's meeting because she is recovering from spinal surgery.
Contacted by phone at her home in Lodi, Serna said the residents in Lodi deserve a campus because of their strong support for Measure L.
"We have to stay with it and find a way," she said. "I have a couple of ideas that I think may be feasible."
The trustee did not describe her ideas, saying she wanted to discuss them with college staff first.
Serna also stressed that it's important for people to remember that Delta College is a community "cornerstone," which offers an education that is even more valuable at a time of a slow economy.
It was the vision of this higher education coming to Lodi that had so excited local leaders.
Lodi City Manager Blair King said he doesn't understand how Delta's clearly defined vision for the city has fallen to the wayside.
"I thought that it was well thought out, well vetted and supported by the board and the administration. We were certainly led to believe that was the direction of the board," he said.
King said in his experience if a public entity sinks $4 million of taxpayer money into a project, it usually means the organization is going to go through with the project.
If the college is too far along on its Mountain House plans, King said he would have expected that the same reasoning would have applied to Lodi, especially after several million dollars.
King didn't have an opinion on any possible plans for Delta's future in Lodi, but Councilman Hansen said he's not expecting much.
"I don't have any confidence in them accomplishing anything at this point," he said.
Source
By Andrew Adams
News-Sentinel Staff Writer
Updated: Thursday, September 11, 2008 6:26 AM PDT
San Joaquin Delta College has abandoned plans for a campus on Victor Road — but there may still be hope for classrooms in Lodi if trustees reduce the funding for the Mountain House project near Tracy.
That may not be enough, however, to satisfy the people who supported the school's original plans for a large campus east of Lodi on Victor Road.
"I don't think they lived up to their commitment, I don't think they lived up to the bond and I don't think they lived up to the voters," said Lodi City Councilman Larry Hansen. "I'm extremely disappointed about how this turned out."
At the Delta board meeting Tuesday night, trustees voted 5-0 to abandon the school's plans for a campus in Lodi off Victor Road.
After spending $4 million on the project, the school had not even purchased property and it had become apparent that earlier plans would just be too expensive. The school spent the money on consultants, lawyers, planning work and property options.
Hansen said Delta's failure to live up to its promises to Lodi can be blamed on the school's administration and its board, which suffered from lack of direction and "paralysis by analysis."
In the 2004 election campaign to pass Measure L — and in subsequent years — Hansen had been a staunch supporter of Delta's plans for Lodi.
"Delta College came to us and told us what they were looking for, and we worked hard to assist them and they encouraged with their vision," he said. "I feel like they have really sold us down the river."
Options in Lodi
The leaders of San Joaquin Delta College's bond team presented three options to the school's board of trustees at its meeting Tuesday. College spokesman Greg Greenwood described the options and said the board is expected to discuss them during a public workshop in early October.
The options, and their costs, include:
1. Do nothing and close out remaining contracts, $200,000.
2. Continue with Victor Road project and finish in 2013, $28.4 million. (The board rejected this option with its vote Tuesday.)
3a. Purchase 15 acres with a long-term option for buying 15 more in a "master planned community" in Lodi, $4.5 million.
3b. Buy the land for $4.5 million, build needed infrastructure for $10 million and build a campus. Total cost $26.1 million to be completed in 2012.
4. Purchase an existing building in Lodi with two additional buildings for a total of 70,000 square feet, $54.7 million to be completed in 2012.
— News-Sentinel staff
With the $250 million Measure L bond reduced to around $66 million, the San Joaquin Delta College board of trustees will have to make tough decisions soon about its remaining plans for Mountain House, Manteca and Lodi.
Trustee Ted Simas said it will probably comes down to either a fully funded Mountain House campus at the sacrifice of Lodi and Manteca, or scaled down versions of all the projects.
"We have not officially abandoned Lodi, but we have officially abandoned Highway 12," he said, referring to the Victor Road site.
Trustees are expected to make a decision on the future of the satellite campuses at a meeting in October.
Simas, who represents Manteca, said based on past decisions, he wouldn't be surprised if the board opts to fund Mountain House with the remainder of the bond.
"For years, the board majority's 'yes' votes for Mountain House pretty much rammed Mountain House down our throats," he said. "I would probably imagine the board majority would go with the higher cost scenario for Mountain House."
Simas also said the demand for a campus in Lodi may not exist, pointing to a significant drop in enrollment at Lodi Unified School District this year. Instead, a smaller building serving about 100 students could really be all that Lodi needs for the time being.
Lodi Trustee Maria Elena Serna did not attend Tuesday's meeting because she is recovering from spinal surgery.
Contacted by phone at her home in Lodi, Serna said the residents in Lodi deserve a campus because of their strong support for Measure L.
"We have to stay with it and find a way," she said. "I have a couple of ideas that I think may be feasible."
The trustee did not describe her ideas, saying she wanted to discuss them with college staff first.
Serna also stressed that it's important for people to remember that Delta College is a community "cornerstone," which offers an education that is even more valuable at a time of a slow economy.
It was the vision of this higher education coming to Lodi that had so excited local leaders.
Lodi City Manager Blair King said he doesn't understand how Delta's clearly defined vision for the city has fallen to the wayside.
"I thought that it was well thought out, well vetted and supported by the board and the administration. We were certainly led to believe that was the direction of the board," he said.
King said in his experience if a public entity sinks $4 million of taxpayer money into a project, it usually means the organization is going to go through with the project.
If the college is too far along on its Mountain House plans, King said he would have expected that the same reasoning would have applied to Lodi, especially after several million dollars.
King didn't have an opinion on any possible plans for Delta's future in Lodi, but Councilman Hansen said he's not expecting much.
"I don't have any confidence in them accomplishing anything at this point," he said.
Source
Delta abandons Lodi campus plans
By Alex Breitler
Record Staff Writer
September 10, 2008 6:00 AM
STOCKTON - A Lodi campus long envisioned by San Joaquin Delta College officials was scrapped Tuesday by trustees who are struggling to divvy up dwindling voter-approved bond money.
Roughly $4 million had been spent planning the proposed 120-acre campus on Victor Road just east of town. On Tuesday, trustees voted 5-0 in closed session to abandon that campus.
Trustee Dan Parises abstained, and Trustee Maria Elena Serna, who is recovering from surgery, was absent.
"I guess the students that would be using (the Lodi campus) aren't being thought of," Parises said after the vote.
There's simply not enough money left from the Measure L bond to make every project happen, officials said. About $66 million remains to pay for three proposed satellite campuses: Mountain House, Lodi and Manteca.
As originally planned, Mountain House alone would cost somewhere shy of $90 million.
"Obviously, there's way more in options than there is in funding," said Kathy Roach, a consultant helping Delta manage the $250 million Measure L bond, approved by voters in 2004.
Still in limbo are the Mountain House and Manteca campuses. College officials say it's too late to turn back on Mountain House, but the campus will have to be scaled down from the original plans.
Roach and college administrators gave trustees a range of options Tuesday night, with a final decision to be made in October.
Many Measure L projects on and off the Stockton campus are costing more than originally expected. In some cases, past consultants hired to manage the bond did not include the cost of furnishing buildings, for example, college officials have said.
Rather than build a brand-new Lodi campus from scratch, other choices include buying existing buildings or purchasing property that is already within city limits.
Lodi Mayor Bob Johnson could not be reached for comment Tuesday. In a letter earlier this summer, Lodi City Manager Blair King said he was concerned that the board's commitment to Lodi was "waning."
A $27 million spike in the cost to construct Delta's Mountain House campus would, in and of itself, be enough to build the Lodi campus, King wrote.
"Plain and simple fairness demands that the board uphold its commitment to voters and move forward with a Lodi Education Center," he wrote.
Roach has told board members that the Lodi campus was risky. Opposition from neighbors and possible litigation were among the threats, she said during a bond workshop in June.
While college officials say it's too late to pull the plug on the controversial Mountain House campus - a civil grand jury alleged in June that the board wasted millions by building there instead of Tracy - some observers disagree.
"It's not too late. We haven't gone too far," former Delta administrator Mary Ann Cox told the board Tuesday night. She is seeking a seat on the board in November.
Delta President Raul Rodriguez said the college is "so far into this now, it's going to be very hard" to pull out of Mountain House.
Source
Record Staff Writer
September 10, 2008 6:00 AM
STOCKTON - A Lodi campus long envisioned by San Joaquin Delta College officials was scrapped Tuesday by trustees who are struggling to divvy up dwindling voter-approved bond money.
Roughly $4 million had been spent planning the proposed 120-acre campus on Victor Road just east of town. On Tuesday, trustees voted 5-0 in closed session to abandon that campus.
Trustee Dan Parises abstained, and Trustee Maria Elena Serna, who is recovering from surgery, was absent.
"I guess the students that would be using (the Lodi campus) aren't being thought of," Parises said after the vote.
There's simply not enough money left from the Measure L bond to make every project happen, officials said. About $66 million remains to pay for three proposed satellite campuses: Mountain House, Lodi and Manteca.
As originally planned, Mountain House alone would cost somewhere shy of $90 million.
"Obviously, there's way more in options than there is in funding," said Kathy Roach, a consultant helping Delta manage the $250 million Measure L bond, approved by voters in 2004.
Still in limbo are the Mountain House and Manteca campuses. College officials say it's too late to turn back on Mountain House, but the campus will have to be scaled down from the original plans.
Roach and college administrators gave trustees a range of options Tuesday night, with a final decision to be made in October.
Many Measure L projects on and off the Stockton campus are costing more than originally expected. In some cases, past consultants hired to manage the bond did not include the cost of furnishing buildings, for example, college officials have said.
Rather than build a brand-new Lodi campus from scratch, other choices include buying existing buildings or purchasing property that is already within city limits.
Lodi Mayor Bob Johnson could not be reached for comment Tuesday. In a letter earlier this summer, Lodi City Manager Blair King said he was concerned that the board's commitment to Lodi was "waning."
A $27 million spike in the cost to construct Delta's Mountain House campus would, in and of itself, be enough to build the Lodi campus, King wrote.
"Plain and simple fairness demands that the board uphold its commitment to voters and move forward with a Lodi Education Center," he wrote.
Roach has told board members that the Lodi campus was risky. Opposition from neighbors and possible litigation were among the threats, she said during a bond workshop in June.
While college officials say it's too late to pull the plug on the controversial Mountain House campus - a civil grand jury alleged in June that the board wasted millions by building there instead of Tracy - some observers disagree.
"It's not too late. We haven't gone too far," former Delta administrator Mary Ann Cox told the board Tuesday night. She is seeking a seat on the board in November.
Delta President Raul Rodriguez said the college is "so far into this now, it's going to be very hard" to pull out of Mountain House.
Source
Saturday, September 6, 2008
Don't Make An Irrevocable Mistake!
The Board of Trustees of San Joaquin Delta College is rumored to be voting, in closed session this Tuesday (Sept. 9, 2008), to make an IRREVOCABLE TRUST for "OPEB" (Other Post-Employment Benefits).
No one seems to remember that it only costs the district about 10% per year of SJDC's budget to fund the retiree's benefits, and that there is no legal requirement to use an irrevocable trust (as clearly shown by the CTA seminar in fall 2007, that the Trustees and Pres. Rodriguez attended! The lack of a requirement to utilize an irrevocable trust is also documented in a report by GASB and a recent memo from the CCCCO (please see the "document" links, below)). Furthermore, retiree's benefit costs are likely to decrease over time, due to reductions in benefits negotiated in contracts between the District and Employees.
The amount to be placed in the irrevocable trust is rumored to be $5.7 million. The new finance VP, Jon Stephens, is said to be proposing the vote. These funds will come out of the reserve. Recently reserves were reported to be $9.9 million, but are likely higher now.
As stated by the Community College League, the Trust is NOT required!
According to the CCL (which is an organization of CCC administrators), the implementation process for GASB 45 includes four basic steps:
1. A community college districts hires an actuary to calculate its Annual Required Contribution.
2. OPEB expenses are recorded on the modified cash basis of accounting within the governmental funds (funds reported on the CCFS-311) and on the full accrual basis of accounting for propriety funds, fiduciary funds and in the government-wide financial statements prepared under the Business-Type Activity model.
3. The district then decides whether to contribute all, none or part of the ARC into an irrevocable trust (i.e. the Retiree Health Benefit Program trust).
4. Disclosure information is provided to the auditor according to GASB’s implementation schedule.
Over the long-term, retiree benefits will shrink. Under existing contracts, the principal benefit (Medicare supplemental premiums) will disappear as a benefit in the mid-term future. Placing such a large amount of money into an irrevocable trust would be a rash decision which will greatly limit the College's financial flexibility.
Documents:
The California Community College Chancellor's Office recent memo regarding GASB and OPEB clearly show that an irrevocable trust is not a requirement.
GASB's "Plain English" introduction to OPEB (other post-employment benefits). (GASB = Governmental Accounting Standards Board" www.gasb.org)
No one seems to remember that it only costs the district about 10% per year of SJDC's budget to fund the retiree's benefits, and that there is no legal requirement to use an irrevocable trust (as clearly shown by the CTA seminar in fall 2007, that the Trustees and Pres. Rodriguez attended! The lack of a requirement to utilize an irrevocable trust is also documented in a report by GASB and a recent memo from the CCCCO (please see the "document" links, below)). Furthermore, retiree's benefit costs are likely to decrease over time, due to reductions in benefits negotiated in contracts between the District and Employees.
The amount to be placed in the irrevocable trust is rumored to be $5.7 million. The new finance VP, Jon Stephens, is said to be proposing the vote. These funds will come out of the reserve. Recently reserves were reported to be $9.9 million, but are likely higher now.
As stated by the Community College League, the Trust is NOT required!
According to the CCL (which is an organization of CCC administrators), the implementation process for GASB 45 includes four basic steps:
1. A community college districts hires an actuary to calculate its Annual Required Contribution.
2. OPEB expenses are recorded on the modified cash basis of accounting within the governmental funds (funds reported on the CCFS-311) and on the full accrual basis of accounting for propriety funds, fiduciary funds and in the government-wide financial statements prepared under the Business-Type Activity model.
3. The district then decides whether to contribute all, none or part of the ARC into an irrevocable trust (i.e. the Retiree Health Benefit Program trust).
4. Disclosure information is provided to the auditor according to GASB’s implementation schedule.
Over the long-term, retiree benefits will shrink. Under existing contracts, the principal benefit (Medicare supplemental premiums) will disappear as a benefit in the mid-term future. Placing such a large amount of money into an irrevocable trust would be a rash decision which will greatly limit the College's financial flexibility.
Documents:
The California Community College Chancellor's Office recent memo regarding GASB and OPEB clearly show that an irrevocable trust is not a requirement.
GASB's "Plain English" introduction to OPEB (other post-employment benefits). (GASB = Governmental Accounting Standards Board" www.gasb.org)
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