SPECIAL MEETING OF THE BOARD OF TRUSTEES OF THE COLLEGE OF THE SEQUOIAS COMMUNITY COLLEGE DISTRICT Monday, October 15,

2012 5:30 pm - Closed Session Presidents Conference Room 6:30 pm Regular Session Board Room Board of Trustees Lori Cardoza, Earl Mann, Kenneth Nunes, Greg Sherman, John A. Zumwalt, Daniel Stepp, Student Trustee Stan Carrizosa, Superintendent/President AGENDA 6:30 PM Presidents Conference Room I II CALL TO ORDER PUBLIC COMMENT (Per Board Policy 2350, any person may address the Board at this time either on an agenda item or other matters of interest to the public that are within the subject matter jurisdiction of the Board. A maximum of 5 minutes is allowed for each speaker, with a maximum time of 15 minutes per item unless otherwise extended by the Board.) III Public Comments Concerning Items On the Closed Session Agenda

RECESS TO CLOSED SESSION Presidents Conference Room (The board will report on any reportable action/s taken during Closed Session.) NEGOTIATIONS 1. College of the Sequoias Teachers Association (COSTA) (GC 54957) Chief Negotiator: Stan Carrizosa RECONVENE TO OPEN SESSION Closed Session Reportable Actions Pledge of Allegiance

IV

Public Comment (Per Board Policy 2350, any person may address the Board at this time either on an agenda item or other matters of interest to the public that are within the subject matter jurisdiction of the Board. A maximum of 5 minutes is allowed for each speaker, with a maximum time of 15 minutes per item unless otherwise extended by the Board.) Public Comments Concerning Items On Agenda Public Comments Concerning Items Not on the Agenda

VI

INFORMATION AND/OR ACTION ITEMS 1. BUDGET SOLVENCY PLAN The Board is asked to review, discuss, provide additional direction or take action as necessary to approve the Districts Solvency Plan as presented. Mr. Brinkley

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

2.

DISTRICTS INITIAL PROPOSAL REGARDING A SUCCESSOR CONTRACT WITH THE COLLEGE OF SEQUOIAS TEACHERS ASSOCIATION (COSTA) FOR 20132014 AND 2014-2015 The Districts Master Agreement with COSTA expired June 30, 2010. During the two years thereafter, the District and COSTA engaged in negotiations for a successor contract and exhausted the statutory impasse procedures without reaching an agreement. The District 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 advisory Factfinding 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 successor contract; (2) announce the availability of the Districts initial proposal for public review in the Human Resources Office; and (3) declare that a public hearing will be held on the Districts initial proposal at the Boards November 13, 2012 meeting.

Mr. Bratsch

3.

RESOLUTION NO. 2012-27; AUTHORIZING COS AND COSTA TO CONDUCT THE NEXT ROUND OF NEGOTIATIONS IN PUBLIC 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 does not allow the public to participate in the negotiations, rather it would be to conduct contract negotiations in public. The district believes the benefits of such openness and transparency will demonstrate public accountability for our actions and build public trust. Administration is recommending the Board adopt Resolution Number 2012-27 which authorizes COS and COSTA to conduct the next round of negotiations in public.

Roll Call Vote Mr. Carrizosa

VII

ADJOURNMENT In compliance with the American Disabilities Act, if you need special assistance to participate in meetings 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 with disabilities Any writings or documents that are public records and are provided to a majority of the governing board regarding an open session item on this agenda will be made available for public inspection in the District Office located at 915 S. Mooney Blvd., Visalia, CA 93277 during normal business hours. In addition, such writings and documents may be posted on the Districts web site at www.cos.edu.

COLLEGE OF THE SEQUOIAS COMMUNITY COLLEGE DISTRICT

Board of Trustees Meeting

October 15, 2012

INFORMATION AND/OR ACTION Budget Solvency Plan

Status: Action Scheduled

Presented by: Douglas Brinkley Interim 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 state has funded for COS. The Districts 2012-13 Adopted Budget assumes that Proposition 30 is not successful thus reducing 2012-13 funded FTES to 7661. This represents a loss in funded FTES of 1381 or about 15%. The District has taken several steps in its effort 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, reducing class offering, eliminating summer school, not replacing staff, and implementing a cap on the Districts contribution toward employee medical benefits. It has become increasingly more critical to extend the budget and program planning beyond a single or even two fiscal years to at least three fiscal years with some understanding of what might occur beyond those years. This District is presenting information and discussing a Multiyear Solvency Plan designed to bring the structural deficit between revenues and expenditures into balance, thus preserving the fiscal and instructional integrity of the District into the future.

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

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

SequoiasCommunityCollegeDistrict MultiyearFiscalSolvencyPlan
BoardofTrustees SpecialBoardMeeting October15,2012
1

Assumptionfor201213Budget
UnrestrictedGeneralFund
Revenue
Novembertemporarytaxinitiativedoesnotpass
Therewillbenoadditionalmidyearbudgetcuts 0.0%deficitfactorwillbeappliedtocommunitycollegeapportionmentin February

FundedFTESwillbereducedfrom8261to7661(7.8%) Revenueisunchangedfrom201314thru201516

Expenditure
Stepandcolumnincreaseshavebeenincluded H&Wbenefitshavebeenadjustedtoreflectarateincreaseof6.11% (note:
ChangeindistrictcontributiontoH&Wwasnotincludedinfinalbudget)

FTESgeneratedbytheDistrictwillreducefrom9033(P2est.)to8509for 201213andfurtherreducedto7891inallfutureyears.

UnrestrictedGeneralFund RevenueProjections
EarnedFTES/BaseFTES MediumCollege>8509 3%OverBaseFTES=7891 8509/7661 7891/7661 7891/7661 7891/7661

201213 Budget

201314 Projected

201415 Projected

201516 Projected

Revenue(UnrestrictedGeneralFund)
StateAllocation ChangestoAllocation TotalStateAllocation Misc. MandateReim.@$28Funded 42,902,339 (2,715,269) 40,187,070 2,929,070 231,308 40,187,070 2,929,070 214,508 40,187,070 2,929,070 214,508 40,187,070 2,929,070 214,508 40,187,070 40,187,070 40,187,070

TotalRevenue

43,347,448

43,330,648

43,330,648

43,330,648

UnrestrictedGeneralFund ExpenditureProjections
NoAdjustmentto201213AdoptedBudget
IfNothingisDonetoCutDistrictExpendituresinResponsetoStateCuts

201213
TotalRevenue(Unrestricted) 43,347,448 Expenditure(UnrestrictedGeneralFund)
BudgetRolloverExpenditures AnnualOnGoingAdjustmentstoBudget

201314
43,330,648

201415
43,330,648

201516
43,330,648

45,066,712 1,175,332

46,242,044 922,354

47,164,397 959,980

BudgetSubtotal

45,066,712

46,242,044
957,711 456,691 1,347,981

47,164,397
957,711 456,691 1,347,981

48,124,377
957,711 456,691 1,347,981

OnGoingGeneralFundExpensesFundedfromOneTimeSources Technology 922,607 COPs 460,066 OPEB 1,347,981

TotalExpenditures(Unrestricted)

47,797,366

49,004,427

49,926,780

50,886,760

YearlyDeficit

(4,449,918)

(5,673,779)

(6,596,132)

(7,556,112)
4

AnnualOnGoingBudgetAdjustments
UsedFor201213AdoptedBudgetandSampleFutureYears
Unrestricted GeneralFund

201213

201314

201415

201516

AnnualOnGoingAdjustmentstoBudget
Step/Col@$535,880 H&W(increaseswithout Cap) PERS/STRS Utilities(Tulare1314and5%increase) Insurance(Tulare1314and5% increase) Included Included Included Included Included 535,880 259,020 ??? 280,431 100,000 535,880 271,971 ??? 84,453 30,050 535,880 274,000 ??? 90,000 60,100

TotalAnnualOnGoingAdjustmenttoBudget

1,175,311

922,354

959,980

WhatHappensIfWeDoNothing?
OPEB
OPEBTrust VisaliaBond FarmReserve RetireeHealth/Welfare OneTimeRevenue GeneralFundReserve 4,784,486 3,070,163 1,242,064 454,320 996,408 2,729,400

VisaliaBond

District

TotalAvailableFunds BalancesByAllowable Expenditures 201213DeficitAllocation 201314Est.BeginningBalance 201314est.DeficitAllocation 201415Est.BeginningBalance

4,784,486

3,070,163

5,422,192 StructuralDeficit byYear (1,719,264) (4,449,918) 3,702,928 (2,911,396) 791,532

(1,347,981) 3,436,505 (1,347,981) 2,088,524

(1,382,673) 1,687,490 (1,414,402) 273,088 Minimum5% GeneralFund Reserve=

(5,673,779)

2,719,637

Excessof5% GeneralFund Reserve= (1,928,105)

6

MultiyearFiscalSolvencyPlan
Presented

October2012

FiscalSolvencyPlanAssumptions
Revenue
Revenuewillremainunchangedthrough201415 201516isincludedforreferencepurposesonly
Limitedinformationfromthestateorothersinregardstostateeconomyor educationsinfluenceuponstatefundingprioritybeyond201314 201415fiscaldataisincludedforplanningpurposesusingsimilarfiscal outlookasin201213and201314

Expenditure
LineItemBudgetReductionsorChargeBackAppropriateExpensesto theUser
InstructionalandNonInstructionalSupplies InstructionalandNonInstructionsEquipmentandEquipmentRepair StudentHelp TransportationFuelSavings ContractServices

FiscalSolvencyPlanAssumptions (cont.)
Expenditure(Cont.)
Expensestootherresources
MAAFundstoBackfillGeneralFundEncroachment

PersonnelReductions
AdjunctFaculty,CounselingHourly,OtherHourly Attrition/Retirement/Layoff(allemployeegroups) ReassignedTimeandSpecialAssignment

DueProcessofNegotiations
MedicalCapCSEA SalaryDecrease SuspendStepandColumn
9

AdjustedAnnualIncreasestoBudget
201213 Budget AnnualOnGoingAdjustmentstoBudget
Step/Col@$535,880 H&W PERS/STRS Utilities(Tulareand5% increase) Insurance(Tulareand5% increase) NewStaffing(1grounds/1 custodialposition) Included Included Included Included Included

201314 Projected

201415 Projected

201516 Projected

0 0
??? 280,431 100,000

0 0
??? 84,453 30,050

535,880

0
??? 90,000 60,100

Included

120,000

TotalAnnualOnGoing AdjustmenttoBudget

500,431

114,503

685,980
10

OnGoingBudgetReductions
201213 Budget OnGoingBudgetChanges
LineItemBudgetCuts ExpensestoOtherResources PersonnelReductions DueProcessofNegotiations BenefitsCaps 5%SalaryDecrease 362,000 105,000 372,000 655,000 1,297,000 1,750,000

201314 Projected

201415 Projected

201516 Projected

OnGoingBudgetCuts

1,494,000

3,047,000

11

ThePlanAllTogether
TotalRevenue
GF1000thru7000 OnGoingBudgetCuts AnnualIncreasestoBudget

201213 43,347,448
45,066,712

201314 43,330,648
45,066,712 (1,494,000) 500,431

201415 43,330,648
44,073,143 (3,047,000) 114,503

201516 43,330,648
41,140,646 0 685,980

Expenditure(UnrestrictedGeneralFund)

Subtotal
Technology COPs OPEB

45,066,712
922,607 460,066 1,347,981

44,073,143
957,711 456,691 1,347,981

41,140,646
957,711 456,691 1,347,981

41,826,626
957,711 456,691 1,347,981

TotalExpenditures Deficit OnGoingBudgetCuts OnetimeBudgetResources FiscalYearDeficit

47,797,366 (4,449,918) 1,494,000 2,955,918 0

46,835,526 (3,504,878) 3,047,000 457,878 0

43,903,029 (572,381) 0 572,381 0

44,589,009 (1,258,361) 0 1,258,361 0

12

OneTimeFundingResources
UsedtoBalanceBudgets
201213 Budget OneTimeBudgetResources
OneTime201213Revenue OPEBTrust VisaliaBond DistrictFundBalances 996,408 576,837 1,382,673 0 N/A 0 457,878 0 N/A 0 572,381 0 N/A 601,130 657,231 0

201314 Projected

201415 Projected

201516 Projected

OnetimeBudgetResources

2,955,918

457,878

572,381

1,258,361

FiscalYearDeficit

13

AvailableOneTimeFundResources
(201213AdoptedBudget)
OPEB
OPEBTrust VisaliaBond FarmReserve RetireeHealth/Welfare OneTimeRevenue GeneralFundReserve 454,320 996,408 2,729,400 4,784,486 3,070,163 1,242,064

Visalia Bond

District

TotalAvailableFunds

4,784,486

3,070,163

4,180,128

14

WhatThePlanDoesToFundBalances
FiscalSolvencyPlanFundAnalysis
TotalAvailableFunds
BalancesByAllowableExpenditures 201213DeficitAllocation 201314Est.BeginningBalance 201314Est.DeficitAllocation 201415Est.BeginningBalance 201415Est.DeficitAllocation 201516Est.BeginningBalance 201516Est.DeficitAllocation 201617Est.BeginningBalance

OPEB VisaliaBond 4,784,486 3,070,163

(576,837) 4,207,649 0 4,207,649 0 4,207,649 (601,130) 3,606,519 (1,382,673) 1,687,490 (457,878) 1,229,612 (572,381) 657,231 (657,231) 0

District 4,180,128
StructuralDeficit byYear (996,408) (2,955,918) 3,183,720 (457,878) 3,183,720 0 3,183,720 0 3,183,720

(572,381)

(1,258,361)

Minimum5% GeneralFund Reserve= Excessof5% GeneralFund Reserve=

2,719,637

464,083

15

WhatThePlanDoesAsPresented
MaintainsthefiscalintegrityoftheDistrict AllowstheDistricttoserve3%moreFTESthanbeingfundedfromthe StateofCalifornia Allowsfortheplanningandimplementationofinstructionalandstudent serviceprogramsformultipleyears ReducessignificantlythestructuredeficitoftheDistrict Bringsemployeesalaryandbenefitexpendituresto83.4%ofthe201314 projectedrevenue Reliesheavilyonthedueprocessofnegotiationsand attrition/retirement/layofftobringexpendituresinlinewithrevenue DevelopsareasonablescenarioofthecontinuedStateandNational economicdownturn UtilizesonetimefundstoprotectDistrictprogramsandoperations Reducesthestructuraldeficittoapproximately$500,000inyeartwoand threeoftheplan

16

Questions Comments Directions

17

COLLEGE OF THE SEQUOIAS COMMUNITY COLLEGE DISTRICT

Board of Trustees Special Meeting October 15, 2012

NOTICE OF ACTION ACKNOWLEDGING RECEIPT OF THE DISTRICTS INITIAL PROPOSAL FOR A SUCCESSOR CONTRACT WITH COSTA
Status: Action Scheduled

Presented by: John Bratsch Dean, Human Resource Services & Legal Affairs Issue
The Master Agreement between the College of Sequoias Community College District (District) and the College of Sequoias Teachers Association (COSTA) expired on June 30, 2010. During the intervening two year period, the parties engaged in negotiations for a successor contract and exhausted the statutory impasse procedures, but never reached an agreement. The District proposes to initiate a new round of bargaining with COSTA for a successor contract, independent of any post-impasse negotiations and/or mediation in relation to the advisory Factfinding Report that was issued on July 4, 2012. To that end, the District is sunshining its initial proposal for a successor contract with COSTA effective for 2012-2013 and 2013-2014. The District sent COSTA notice on September 28, 2012 that it would be presenting this initial successor contract proposal in order to give COSTA an opportunity to sunshine its own initial proposal for a successor contract.

Background
Consistent 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 Resources Department, 915 South Mooney Blvd., Visalia, CA 93277, until the next regular Board meeting of November 12, 2012.

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

Recommended Action
It is recommended that the Board of Trustees acknowledge receipt of the Districts initial proposal for a new successor contract with COSTA and announce that the Districts proposal will be available for public review in the Human Resources Office. It is further recommended that the Board announce that it will conduct a public hearing regarding the Districts initial successor contract proposal at its November 13, 2012 regular meeting.

005933.00007/10677010v2

COLLEGE OF THE SEQUOIAS COMMUNITY COLLEGE DISTRICT Board of Trustees Meeting October 15, 2012

ACTION RESOLUTION NO. 2012-27; AUTHORIZING COS AND COSTA TO CONDUCT THE NEXT ROUND OF NEGOTIATIONS IN PUBLIC (Roll Call Vote)
Status:
Presented by:

ACTION
Stan Carrizosa Superintendent/President

Issue
After careful consideration of the current fiscal crisis and potential for this to cause heightened sensitivity and difficulty in the collective bargaining process, we are proposing this resolution for Board consideration. Historically the contents of employee contract negotiations have been identified as confidential and not made available to the public. College of the Sequoias has been working hard over the summer months to clarify and publicize the status of our budget deficit and potential for insolvency. The college 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 critical decisions that impact the colleges fiscal status. Over ninety-two (92%) percent of our general fund ongoing revenue is invested in personnel costs including employee salaries and benefits. The majority of this expense is governed by the terms and conditions of the Master Agreements (union contracts) by and between College of the Sequoias and our certificated and classified employees groups. The public often feels uncertain about the state of contract negotiations due in large part to the confidential nature of the process. 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 does not allow the public to participate in the negotiations, rather it would be to conduct contract negotiations in public. The district believes the benefits of such openness and transparency will demonstrate public accountability for our actions and build public trust. Recommended Action Administration is recommending the Board adopt Resolution Number 2012-27.