Board Packet: Oct 15 2012 Special Board Meeting

7/31/2019 Board Packet: Oct 15 2012 Special Board Meeting

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Agenda Board of Trustees Special Meeting, October 15, 2012 Page 2

2. DISTRICTS INITIAL PROPOSAL REGARDING A SUCCESSOR CONTRACT WITHTHE COLLEGE OF SEQUOIAS TEACHERS ASSOCIATION (COSTA) FOR 2013-2014 AND 2014-2015

Mr. Bratsch

The Districts Master Agreement with COSTA expired June 30, 2010. During the twoyears thereafter, the District and COSTA engaged in negotiations for a successor contractand exhausted the statutory impasse procedures without reaching an agreement. TheDistrict proposes to initiate a new round of bargaining for a successor contract,independent of any post-impasse negotiations and/or mediation in relation to the advisoryFactfinding Report issued on July 4, 2012. It is recommended that the Board of Trustees(1) acknowledge receipt of the Districts initial proposal to COSTA for a successorcontract; (2) announce the availability of the Districts initial proposal for public review inthe Human Resources Office; and (3) declare that a public hearing will be held on theDistricts initial proposal at the Boards November 13, 2012 meeting.

3. RESOLUTION NO. 2012-27; AUTHORIZING COS AND COSTA TO CONDUCT THENEXT ROUND OF NEGOTIATIONS IN PUBLIC

Roll Call Vote

Mr. Carrizosa

It is allowable by law for the process of collective bargaining to be conducted in open

public session if mutually agreeable by both negotiating parties. This resolution doesnot allow the public to participate in the negotiations, rather it would be to conductcontract negotiations in public. The district believes the benefits of such opennessand transparency will demonstrate public accountability for our actions and buildpublic trust. Administration is recommending the Board adopt Resolution Number2012-27 which authorizes COS and COSTA to conduct the next round of negotiationsin public.

VII ADJOURNMENTIn compliance with the American Disabilities Act, if you need special assistance to participate inmeetings call (559) 730-3745 48-hours in advance of the meeting. For Deaf and Hard of Hearing- call videophone at (559) 302-9976 48-hours in advance of the scheduled meeting time to

request interpreter services. All reasonable efforts will be made to accommodate those withdisabilities

Any writings or documents that are public records and are provided to a majority of the governingboard regarding an open session item on this agenda will be made available for public inspectionin the District Office located at 915 S. Mooney Blvd., Visalia, CA 93277 during normal businesshours. In addition, such writings and documents may be posted on the Districts web site atwww.cos.edu.


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COLLEGE OF THE SEQUOIAS COMMUNITY COLLEGE DISTRICT

Board of Trustees MeetingOctober 15, 2012

INFORMATION AND/OR ACTION 1Budget Solvency Plan

Status: Action Scheduled

Presented by: Douglas BrinkleyInterim Vice President, Administrative Services

Issue:

The State of California is responsible for funding the operations of community colleges.In 2008-09 the system provided funding for 9,042 full time equivalent students (FTES)attending College of the Sequoias (COS). This is the highest number of FTES the statehas funded for COS. The Districts 2012-13 Adopted Budget assumes that Proposition30 is not successful thus reducing 2012-13 funded FTES to 7661. This represents aloss in funded FTES of 1381 or about 15%. The District has taken several steps in itseffort to maintain a quality instructional and educational experience for its students.These include, but are not limited to, the use of one time funding sources, reducingclass offering, eliminating summer school, not replacing staff, and implementing a capon the Districts contribution toward employee medical benefits.

It has become increasingly more critical to extend the budget and program planningbeyond a single or even two fiscal years to at least three fiscal years with someunderstanding of what might occur beyond those years. This District is presentinginformation and discussing a Multiyear Solvency Plan designed to bring the structuraldeficit between revenues and expenditures into balance, thus preserving the fiscal andinstructional integrity of the District into the future.

Background

The Districts 2012-13 Adopted Budget has a structural deficit of nearly $4.5 million basedupon the failure of Proposition 30. Should the Initiative pass the District would see $3.1million in additional revenue. It is important that the District be prepared to take actionsboth short and long term to bridge the $4.5 million funding gap. The District has developedthe basics of a plan to bridge the funding gap with some actions requiring immediateimplementation and others for implementation next year.


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Recommended Action

The Board is asked to review, discuss, provide additional direction or take action asnecessary to approve the Districts Solvency Plan as presented.


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SequoiasCommunityCollege

Multiyear

Fiscal

Solvency

BoardofTrustees

SpecialBoardMeeting

October15,

2012


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UnrestrictedGeneralFun

RevenueProjections

EarnedFTES/BaseFTES 8509/7661 7891/7661 7891/

MediumCollege>8509 201213 201314 2014

3%OverBaseFTES=7891 Budget Projected Proje

Revenue(UnrestrictedGeneralFund)

StateAllocation 42,902,339 40,187,070 40,

ChangestoAllocation (2,715,269)

TotalStateAllocation 40,187,070 40,187,070 40,

Misc. 2,929,070 2,929,070 2,

MandateReim.@$28Funded 231,308 214,508

TotalRevenue 43,347,448 43,330,648 43,33


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UnrestrictedGeneralFund

ExpenditureProjectionsNoAdjustmentto201213AdoptedBud

IfNothing

is

Done

to

Cut

District

Expenditures

in

Response

t

201213 201314 2014

TotalRevenue(Unrestricted) 43,347,448 43,330,648 43,330

Expenditure(UnrestrictedGeneralFund)

BudgetRolloverExpenditures 45,066,712 46,2

AnnualOnGoingAdjustmentstoBudget 1,175,332 9

BudgetSubtotal 45,066,712 46,242,044 47,1

OnGoingGeneralFundExpensesFundedfromOneTimeSources

Technology 922,607 957,711 9

COPs 460,066 456,691 4

OPEB 1,347,981 1,347,981 1,3

TotalExpenditures(Unrestricted) 47,797,366 49,004,427 49,9

YearlyDeficit (4,449,918) (5,673,779) (6,596


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AnnualOnGoingBudgetAdjuUsedFor201213AdoptedBudgetandSampleF

Unrestricted GeneralFund 201213 201314 2014

AnnualOnGoingAdjustmentstoBudget

Step/Col@$535,880 Included 535,880 53

H&W(increaseswithout Cap) Included 259,020 27

PERS/STRS Included ???

Utilities(Tulare1314and5%increase) Included 280,431 8

Insurance(Tulare1314and5%

increase) Included 100,000 3

TotalAnnualOnGoingAdjustmenttoBudget 1,175,311 922


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WhatHappensIfWeDoNot

OPEB VisaliaBond DistricOPEBTrust 4,784,486

VisaliaBond 3,070,163

FarmReserve 1,24

RetireeHealth/Welfare 45

OneTimeRevenue 99

GeneralFundReserve 2,72

TotalAvailableFunds 4,784,486 3,070,163 5,422

BalancesBy

Allowable

Expenditures

201213DeficitAllocation (1,347,981) (1,382,673) (1,719

201314Est.BeginningBalance 3,436,505 1,687,490 3,702

201314est.DeficitAllocation (1,347,981) (1,414,402) (2,911

201415Est.BeginningBalance 2,088,524 273,088 791

Minimum5%

GeneralFund

Reserve= 2,719

Excessof5%

GeneralFund

Reserve= (1,928,


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MultiyearFiscalSolvencyPresented

October2012


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FiscalSolvencyPlanAssump

Revenue Revenuewillremainunchangedthrough201415

201516isincludedforreferencepurposesonly Limitedinformationfromthestateorothersinregardstos

educationsinfluenceuponstatefundingprioritybeyond20

201415fiscaldataisincludedforplanningpurposesusing

outlook

as

in

2012

13

and

2013

14 Expenditure

LineItemBudgetReductionsorChargeBackAppropritheUser

InstructionalandNonInstructionalSupplies

InstructionalandNonInstructionsEquipmentandEquipme

StudentHelp

Transportation

Fuel

Savings ContractServices


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FiscalSolvencyPlanAssumptio

Expenditure(Cont.)

Expensestootherresources MAAFundstoBackfillGeneralFundEncroach

PersonnelReductions Adjunct

Faculty,

Counseling

Hourly,

Other

Hou

Attrition/Retirement/Layoff(allemployeegro

ReassignedTimeandSpecialAssignment

DueProcessofNegotiations MedicalCapCSEA

SalaryDecrease

SuspendStepandColumn


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AdjustedAnnualIncreasesto

201213 201314 201415

Budget Projected Projected

AnnualOnGoingAdjustmentstoBudget

Step/Col@$535,880 Included 0

H&W Included 0

PERS/STRS Included ??? ?

Utilities(Tulareand5%

increase) Included 280,431 84,4

Insurance(Tulareand5%

increase) Included 100,000 30,0

NewStaffing(1grounds/1

custodialposition) Included 120,000

TotalAnnualOnGoing

AdjustmenttoBudget 500,431 114,50


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OnGoingBudgetReducti

201213 201314 2014

Budget Projected Proje

OnGoingBudgetChanges

LineItem

Budget

Cuts 362,000

ExpensestoOtherResources 105,000

PersonnelReductions 372,000 1,297,000

DueProcessofNegotiations 655,000 1,750,000

BenefitsCaps

5%Salary

Decrease

OnGoingBudgetCuts 1,494,000 3,047,000


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ThePlanAllTogether

201213 201314 2014

TotalRevenue 43,347,448 43,330,648 43,3

Expenditure(UnrestrictedGeneralFund)

GF1000thru7000 45,066,712 45,066,712 44,0

OnGoingBudgetCuts (1,494,000) (3,0

AnnualIncreasestoBudget 500,431 1

Subtotal 45,066,712 44,073,143 41,1

Technology 922,607 957,711 9

COPs 460,066 456,691 4

OPEB 1,347,981 1,347,981 1,3

TotalExpenditures 47,797,366 46,835,526 43,9

Deficit (4,449,918) (3,504,878) (57

OnGoing

Budget

Cuts 1,494,000

3,047,000

OnetimeBudgetResources 2,955,918 457,878 5

FiscalYearDeficit 0 0


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OneTimeFundingResouUsedtoBalanceBudgets

201213 201314 201415

Budget Projected Projecte

OneTimeBudgetResources

OneTime201213Revenue 996,408 N/A N

OPEBTrust 576,837 0

VisaliaBond 1,382,673 457,878 572,3

DistrictFundBalances 0 0

OnetimeBudgetResources 2,955,918 457,878 572,3

FiscalYearDeficit 0 0


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AvailableOneTimeFundRes(201213AdoptedBudget)

OPEB

Visalia

Bond Distri

OPEBTrust 4,784,486

VisaliaBond 3,070,163

FarmReserve

RetireeHealth/Welfare 45

OneTimeRevenue 99

GeneralFundReserve 2,72

TotalAvailable

Funds 4,784,486

3,070,163

4,180


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WhatThePlanDoesToFundBFiscalSolvencyPlanFundAnal

OPEB VisaliaBond Distric

TotalAvailableFunds 4,784,486 3,070,163 4,180

BalancesByAllowableExpenditures

201213DeficitAllocation (576,837) (1,382,673) (996


201314Est.DeficitAllocation 0 (457,878)


201415Est.DeficitAllocation 0 (572,381)

201516Est.BeginningBalance 4,207,649 657,231 3,183

201516Est.DeficitAllocation (601,130) (657,231)

201617Est.BeginningBalance 3,606,519 0 3,183

Minimum5%

GeneralFund

Reserve= 2,719

Excessof5%

GeneralFund

Reserve= 464


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WhatThePlanDoesAsPres

MaintainsthefiscalintegrityoftheDistrict

AllowstheDistricttoserve3%moreFTESthanbeingfundStateofCalifornia

Allowsfortheplanningandimplementationofinstructionserviceprogramsformultipleyears

ReducessignificantlythestructuredeficitoftheDistrict

Bringsemployee

salary

and

benefit

expenditures

to

83.4%

projectedrevenue

Reliesheavilyonthedueprocessofnegotiationsandattrition/retirement/layofftobringexpendituresinlinew

DevelopsareasonablescenarioofthecontinuedStateaneconomicdownturn

UtilizesonetimefundstoprotectDistrictprogramsando

Reducesthe

structural

deficit

to

approximately

$500,000

i

threeoftheplan


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Questions

CommentsDirections


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005933.00007/10677010v2

COLLEGE OF THE SEQUOIAS COMMUNITY COLLEGE DISTRICT

Board of Trustees Special MeetingOctober 15, 2012

NOTICE OF ACTION ACKNOWLEDGING RECEIPT OF THE 2DISTRICTS INITIAL PROPOSAL FOR A SUCCESSORCONTRACT WITH COSTA

Status: Action Scheduled

Presented by: John BratschDean, Human Resource Services & Legal Affairs

IssueThe Master Agreement between the College of Sequoias Community College District (District) and theCollege of Sequoias Teachers Association (COSTA) expired on June 30, 2010. During the interveningtwo year period, the parties engaged in negotiations for a successor contract and exhausted the statutoryimpasse procedures, but never reached an agreement. The District proposes to initiate a new round ofbargaining with COSTA for a successor contract, independent of any post-impasse negotiations and/ormediation in relation to the advisory Factfinding Report that was issued on July 4, 2012. To that end, theDistrict is sunshining its initial proposal for a successor contract with COSTA effective for 2012-2013and 2013-2014. The District sent COSTA notice on September 28, 2012 that it would be presenting thisinitial successor contract proposal in order to give COSTA an opportunity to sunshine its own initialproposal for a successor contract.

BackgroundConsistent with Government Code section 3547, the District requests that the Board acknowledge receipt

of the Districts initial successor contract proposal as the first step in the process for collective bargaining.The Districts proposal will then be available for review by the general public in the Human ResourcesDepartment, 915 South Mooney Blvd., Visalia, CA 93277, until the next regular Board meeting ofNovember 12, 2012.

ImplicationsAt the November 12, 2012 meeting of the Board of Trustees, a hearing will be held to provide members ofthe public with an opportunity to address the Board with comments and/or concerns regarding theDistricts initial successor contract proposal to COSTA. This same procedure will apply with COSTAsinitial proposal.

Recommended ActionIt is recommended that the Board of Trustees acknowledge receipt of the Districts initial proposal for anew successor contract with COSTA and announce that the Districts proposal will be available for publicreview in the Human Resources Office.

It is further recommended that the Board announce that it will conduct a public hearing regarding theDistricts initial successor contract proposal at its November 13, 2012 regular meeting.


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COLLEGE OF THE SEQUOIAS COMMUNITY COLLEGE DISTRICTBoard of Trustees Meeting

October 15, 2012

ACTION 3RESOLUTIONNO.2012-27; AUTHORIZINGCOSANDCOSTATOCONDUCTTHENEXTROUNDOFNEGOTIATIONSINPUBLIC (Roll Call Vote)

Status: ACTION

Presented by: Stan CarrizosaSuperintendent/President

Issue

After careful consideration of the current fiscal crisis and potential for this to causeheightened sensitivity and difficulty in the collective bargaining process, we areproposing this resolution for Board consideration. Historically the contents of employeecontract negotiations have been identified as confidential and not made available to thepublic. College of the Sequoias has been working hard over the summer months toclarify and publicize the status of our budget deficit and potential for insolvency. Thecollege is a valued asset and revered institution throughout our entire district and

region. We believe it is important to be as transparent as possible with all the criticaldecisions that impact the colleges fiscal status. Over ninety-two (92%) percent of ourgeneral fund ongoing revenue is invested in personnel costs including employeesalaries and benefits. The majority of this expense is governed by the terms andconditions of the Master Agreements (union contracts) by and between College of theSequoias and our certificated and classified employees groups. The public often feelsuncertain about the state of contract negotiations due in large part to the confidentialnature of the process. It is allowable by law for the process of collective bargaining to beconducted in open public session if mutually agreeable by both negotiating parties. Thisresolution does not allow the public to participate in the negotiations, rather it would beto conduct contract negotiations in public. The district believes the benefits of such

openness and transparency will demonstrate public accountability for our actions andbuild public trust.

Recommended Action

Administration is recommending the Board adopt Resolution Number 2012-27.


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Documents

Board Packet: Oct 15 2012 Special Board Meeting