November 25, 2015
ISSUE 85
CaLBOC: CBOC Operation Guidelines 
The purpose of the Operational Guidelines is to provide a basis for the BOC to perform a self-assessment of their committee operations and identify training needs. This 18 page document could also be used as an outline for developing a training program for committee members.
Section I: Contains the Legal Requirements set forth by the  
California Constitution and Education Code
Section II:  Recommended Operational Guidelines for: 
BOC Member Selection Process and Appointment 
Orientation/Training 
Role of the Bond Oversight Committee 
Public Disclosure 
Financial Audit 
Performance Audit
Annual Report
Access to the Governing Board and Superintendent
Bond Issuance
Bylaws
 
Oakland's Facilities Chief Oversees Work by His Own Company
November 21, 2015 | By Jill Tucker | www.sfchronicle.com  
EXCERPT:  When Oakland school officials hired an interim director of their facilities department early this year - at $30,000 a month - they said it was temporary.
     Eight months later, Lance Jackson's services still cost Oakland Unified about $1,300 a day, nearly 30 percent more than the district superintendent's pay.
    Despite his job title, Jackson isn't a district employee. He's the chief operating officer at SGI Construction Management, the company hired to manage the district's bond program, a three-year contract worth up to $11 million.
     He is both a district administrator and a contract worker, overseeing services performed by his own company, through which the $30,000 monthly fee is paid. The arrangement has raised conflict-of-interest questions in an Oakland district with a history of financial mismanagement, including a $100 million state bailout in 2003. ...
     A renewed effort in recent months failed to find a replacement, despite 36 applicants, only two of whom were flagged for in-person interviews. The district decided this week to hire a search firm to help find a suitable candidate, Flint said.  ...
     While he's still an SGI employee, he said he currently works only for Oakland. ...
     SGI, headquartered in Pasadena and also known as Seville Group Inc., has deep experience in construction management and has worked on more than 30 school construction bond projects since 1998.
     But it has faced questions at times from communities concerned about responsible taxpayer spending on schools.
     It was sued in San Diego County over its role in a pay-to-play corruption case against public officials who accepted gifts and meals from contractors - including SGI - hired to oversee the Sweetwater Union school district's bond program.
     SGI also runs the $1.6 (Billion) bond program at West Contra Costa Unified, which has come under heavy scrutiny.
     A report this year by the county's civil grand jury found that the district was paying three times the state average per square foot for construction. The district is reportedly under federal investigation into the possible misuse of bond funds, with at least two board members facing questions from the Securities and Exchange Commission and the FBI. ...     To read the complete article please visit: 
Fitch: Some California School District GOs Protected in Bankruptcy
EXCERPT:   NEW YORK--The 'AAA' rating recently assigned to San Diego Unified School District's (SDUSD) upcoming general obligation (GO) bond issuance could set a precedent for other school district ratings throughout California, according to Fitch Ratings in a new report.
     Last week, Fitch assigned an 'AAA' rating to SDUSD's GO bonds following receipt of supporting legal opinions identifying revenues pledged to bondholders as special revenues under Chapter 9 of the U.S. Bankruptcy Code. Debt service payments from special revenues would be uninterrupted in the event of bankruptcy. ... 
     'Since there are few judicial precedents for the treatment of Proposition 39 bonds in bankruptcy, future cases could result in unanticipated outcomes,' said Laskey. Despite this uncertainty, Fitch expects that pledged revenues for such bonds would receive preferential treatment in any future bankruptcy as special revenues. ... 
To read the complete press release please visit:
In This Issue
CBOC Best Practices Operation Guidelines
Facilities Chief Oversees Work by His Own Company
Some GO Bonds Protected in Bankruptcy
Archived Newsletters
Join Our Mailing List!

Mission Statement 

To promote school district accountability by improving the training and resources available to California's Proposition 39 School Bond Oversight Committees and educating the state legislature, local school boards and the public about the oversight and reporting powers these Citizens' Bond Oversight Committees (CBOCs) have, and to advocate on a state level, where appropriate, on issues of common concern to all CBOCs.
 

Join Our Mailing List!

Archived Newsletters 
 To view all with topics visit:
California League of Bond Oversight Committees - calboc@mail.com