Minutes of the March 18, 2021 Meeting of the Citizens’ Bond Oversight Committee

PIEDMONT UNIFIED SCHOOL DISTRICT
CITIZENS’ BOND OVERSIGHT COMMITTEE
MINUTES

March 18, 2021
4:30 – 5:30 pm
Virtual Meeting by Zoom

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I. Call to Order

The meeting was called to order at 4:33 pm when a quorum was established. 

II. Establishment of Quorum

In attendance:  Chair Grier Graff; members Julie Caskey, Adam Christiansen, Kim Dao, Andy Hempeck, Kyung-Hee Howard, Jonathan Levine, and Melissa Wilk ; PUSD Board members Cory Smegal and Megan Pilsbury; PUSD staff Pete Palmer, Ruth Alahydoian, Michael Brady, and Julie Moll; and auditor Jill Stenton of Eide Bailly, LLP.

III. Public Comment

None.

IV. Approval of May 7, 2020 Minutes

There was no public comment.
Moved: Jonathan Levine
Seconded: Kyung-Hee Howard
Vote: Approved

The order of agenda items was changed.  

V. Report by Committee Members Melissa Wilk and Andrew Hempeck on their Review of the Accounts Payable Process

Committee member Melissa Wilk reported on the review of the accounts payable process and sample of purchase orders for 2019-20, following each invoice through to check distribution.  There were no negative findings.  

VI. Review and Discussion of Independent Audit Report for the Fiscal Year Ending June 30, 2020 Prepared by Eide Bailly, LLP

Auditor Jill Stenton of Eide Bailly, LLP provided an overview of the Financial Audit (concerning assets and liabilities) and Performance Audit (concerning whether bond funds were used in accordance with the strict terms of the H1 bond measure).  The audits covered more than $21 million in expenditures and there were no negative findings.  

VII. Construction Update

Measure H1 Program Manager Pete Palmer reported that the STEAM building officially opened this week with the return of high school students for in-person learning, and the feedback from students and staff has been highly positive. Overaa is continuing to work through the punch list, and the District is holding a $1.8 million retention until the work is completed. Also, the District is working with a commissioning agent to optimize all building systems. For example, rooftop monitors sense sunlight and automatically opens and closes window shades to prevent excess heat gain. The commissioning agent is working to ensure that all automated systems are integrated and working properly.  

Mr. Palmer reported that construction of the Performing Arts Center is going well and remains on schedule. Overaa recently completed the structural steel frame, classroom balcony, both the lower and upper roof section pours, and duct work for the displaced air system, hitting all critical milestones. Next, Overaa will erect scaffolding and the exterior building “skin,” and drill piers for the new trellis.   

Mr. Palmer reported that added and unforeseen costs increased bond program costs by roughly $3.885 million. The District worked with Overaa and its subcontractors to manage and contain these costs, but despite rigorous value engineering the District still faces a budget shortfall of roughly $1.6 to $1.8 million. A group of community members and the Piedmont Education Foundation are developing a fundraising campaign to help complete the Performing Arts Center without any further cuts, and restore features that were deferred previously. 

VIII. Program Budget Update

Chief Financial Officer Ruth Alahydoian presented the following reports, as of June 30, 2020 and as of January 31, 2021 respectively:  

Ms. Alahydoian reported that the final H1 bond sale was completed on March 10, 2021.  The $10 million in bonds were issued to Fidelity Capital Markets, the bidder that submitted the lowest true interest cost of 2.1268%. The repayment term is 26 years.

IX. Review, Discussion and Possible Approval of Fourth Annual Report to the Community

There was no public comment.
Moved: Jonathan Levine
Seconded: Adam Christiansen
Vote: Approved

X. Future Meeting Dates and Agenda Items

The next CBOC meeting is scheduled for June 17, 2021 at 4:30 and will be conducted by Zoom.   

XI. Announcements

Board of Education President Cory Smegal announced that efforts are underway to develop a capital campaign to complete the Performing Arts Center without further cuts, and possibly restore features previously deferred.  Although this funding may not be available before the Center is completed, the Piedmont Education Foundation has identified funds to guarantee these funds.  The PEF funds would be bridge financing until either private contributions or State Modernization funding become available.   

XII. Adjournment

The meeting adjourned at 5:30.