Board Budget Subcommittee Minutes
July 31, 2006
|Committee Members:||Mark Dover, Elvira Robinson, and Leonard Washington|
|Committee Resources:||Steve Kinsella and Joseph Keeler|
|Guests:||Casey Michaelis (Kitchell CEM)|
|1)||Call Meeting to Order:||Elvira Robinson, the Subcommittee’s Chair, called the meeting to order at 3:00 p.m.|
|2)||Approve Minutes:||The minutes from May 18, 2006 were approved unanimously; MS (Washington/Dover).|
|3)||Comments from the Public:||No comments from the public.|
|4)||Measure E Budget|
Dr. Steven Kinsella, Mr. Joe Keeler, and Mr. Casey Michaelis presented to the Subcommittee an August 8 draft of the Measure E Master Budget including a Master Budget Summary letter dated July 14, 2006, Measure E Bond Program Escalation letter dated February 6, 2006, and a Master Budget Matrix last revised on June 27, 2006. After Subcommittee review at this meeting, the Measure E Master Budget will be presented at the August 8 Board of Trustees meeting as an informational item and at the September 12 Board of Trustees meeting as an action item.
Mr. Michaelis outlined the allocation method used to arrive at the draft budget by project. The process started with the original estimates that were included in the Measure E Bond language. A program contingency, program (soft) costs, and an interim housing program were established. The infrastructure budget was also augmented. In addition, ADA, campus safety, and campus lighting amounts were distributed across each construction project.
Mr. Dover asked if the OE project included both the OE modernization and the interim housing. Mr. Michaelis noted that the interim housing project was now a separate project as was originally discussed last year. In addition, several building renovation projects were lumped into one program budget for purposes of economies of scale in bidding, and also safety and security. The budget for ADA upgrades was allocated to individual renovation projects.
Each project budget was developed by determining hard costs numbers based on a conceptual scope of work to be completed. Items that were identified as "must do's" included code requirements and specific items promised in bond language. Escalation was factored in at 5.5% per year for each project depending upon when the project was scheduled to start construction. In summary, total project costs, including projected interest income, result in a deficit of $8,609,863.
Mr. Washington asked how we will deal with the deficit. Dr. Kinsella and Mr. Keeler identified several factors that may influence the budget and reduce the deficit.
|5)||FY 2006-07 Final Budget|
|6)||Next Meeting Date|
The subcommittee agreed to meet as required.
|7)||Adjourned||Meeting adjourned at 3:45 p.m.|
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