Meeting called to order at 6:03 p.m.

Members attending: Marco Renella, Lawrence Grace, Tom Andrade, Mark Zappa

Others attending: Joe Keeler, Steve Kinsella, Art Kerr, Casey Michaelis

1. Minutes of 5/15/06.

Due to lack of a quorum no action was taken. The approval of minutes from 5/15/06 will be deferred to the next meeting.

1. Due to lack of a quorum there was no action taken.

None

1. Item(s) approved by the Board of Trustees provided for information:

June 13, 2006
• Contract with SunGard SCT
• Bid for Measure E Boiler Replacement Project

July 11, 2006
• Bid for Measure E Infrastructure Project
• Agreements for Division of State Architect (DSA) Inspection Services - Boiler and Infrastructure Projects
• Agreements for Testing Services - Boiler and Infrastructure Projects
• Acquisition of Relocatable Facilities, Resolution No. 857

August 8, 2006
• Bid for Computer Purchase (Summer 2006) Vendor Selection

September 12, 2006
• Measure E Master Budget
• New Kitchell Project Assignment Amendments (PAAs) and Revisions to Current PAAs
• New BFGC Architect Planners, Inc. (BFGC) Project Assignment Amendments (PAAs and Revisions to Current PAAs)

Joe reported that there is a deficit of approximately $8.6 million. 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 dos" included code requirements and specific items promised in the bond language. Escalation (inflation) was factored in at 5.5% per year for each project depending on when the project was scheduled to start construction. The total project costs, including projected interest income, results in a deficit of $8.6 million. Several factors may influence the budget and reduce the deficit: projects may come in under bid, state funding for the modernization of the PE and Library buildings is possible, emergency state funding is being pursued for the water tank replacement, the College can forego repair of water tank and continue to pay for water through agreement with the City of Gilroy, interest income may come in higher than projected, rate of inflation may be lower than estimated.

1. Update Measure E Activities

1. Measure E Construction Updates

   Joe reviewed and noted that updates are posted on the web page.

2. Summary of Financial Transactions

   Joe reported that the audit report will be completed in Jan. or Feb. The format for the summary of financial transactions sheet will be revised for the next meeting.

Next meeting: Dec. 18, 2006, 6:00 p.m.

Meeting adjourned at 6:45 p.m.