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A World of CulturesUnited in Learning

ANNUAL REPORT

Measure ACitizens’ Bond Oversight Committee

Steve ChanCBOC Chair, 2009-2010

Report to the Community on Measure A Expenditures

Letter from the Chair

The Citizen’s Bond Oversight Committeeis charged with the following responsibilities:

• Ensure that bond revenues are expended only for the purposes established in Measure A and that no bond funds are used for any teacher or administrative salaries or for any other College operating expenses.

• Advise the public concerning the nature of expenditures of bond funds.

• Present an annual report to the Board of Trustees about the Oversight Committee’s activities and actions of the prior year.

• Provide a statement that indicates whether the College District is in compliance with the terms of Measure A.

Measure A Bond Projects completed to date

• New Biotechnology Lab on Fremont Campus, 2003.

• Athletic Facilities Renovated, 2003 and 2008.

• Disabled Access Ramps and ADA Compliant Doors, 2006.

• Building One Exterior Resurfaced, 2006.

• Campus Safety Projects, including additional lighting, emergency phones and security cameras , 2006 & 2008.

• Ohlone College Newark Center for Health Sciences and Technology, 2008.

• Engineering and Physics Labs Moved to Building 8, 2008.

• New Student Services Center, 2009.

• Analysis and Design of Below Grade Water Project, 2009-10.

• Analysis and Design, Modular Science Building, 2009

Letter from the Chair, continuedAs the Chair of Ohlone College’s Measure A Citizens Bond Oversight Committee I am pleased to share with you this 2009-10 annual report to the community. Ballot Measure A was approved by a majority of the voters in 2002 and resulted in $150 million in general obligation bond fund revenue for the College District. With the addition of interest income earned and grants and rebates received, the college has realized over $163 million in funds for Measure A bond activities. These projects have earned LEED Platinum and Gold Certifications, respectively, which is evidence of the efforts of the College District to utilize sustainable building practices. The College District is now engaged in planning and constructing several smaller scale projects on the Fremont campus using the remainder of the bond funds. Although small in scale, these projects will have significant impacts on the quality of education delivered to the students.

Most notable among these smaller scale projects are the following:

· A below grade water intrusion project is anticipated to begin in the spring of 2011. This project, funded by the State of California and the Measure A bond, will extract water from below ground at the upper campus and transport it via a piping system to the lower western end where it will be put back into the ground. This movement of the water will alleviate current problems many campus buildings are encountering where underground water is seeping through walls and entering structures on the ground floors. The project is anticipated to be completed within twelve to eighteen months.

· A science modular project is expected to start construction during the fall of 2010. The project will establish several new modular buildings on the north eastern end of the campus. The buildings will contain science labs, offices and restroom facilities. The project is necessary to correct existing overcrowded and poorly ventilated conditions found in several labs on campus.

During the summer of 2010 the College District completed several projects to upgrade classroom and office facilities in Building 6. These upgrades were necessary to realize the College’s goal to cluster the Deaf Studies Program in its own facility. This clustering concept is a key component of the Educational and Facilities Master Plans. Eventually, other programs such as Science and Fine Arts will have their own clusters which will promote communication and collaboration among faculty and staff. As an indication of the financial stewardship efforts that continue to be made in management of Measure A bond funds, the College District recently locked in significant savings of over $3.4 million for local taxpayers by refinancing a portion of its outstanding Measure A general obligation bonds. The District replaced $23.94 million in bonds at an average interest rate of 5.14% with $23.68 million in new bonds at an all-inclusive interest rate of 3.06%. All of the savings from the refinanc-ing will be realized by District taxpayers in the form of lower property tax bills over the next sixteen years, beginning with the 2010-11 bills. The members of the Citizen’s Bond Oversight Committee look forward to continuing to work with the College District as it completes the final stages of Measure A bond projects.Human Simulation training facility for Health Sciences

students at the Ohlone College Newark Center.

Major construction work done around building 5 and building 9 will result in additional ADA accessible ramps and elevators and will allow better access for emergency vehicles that come onto campus.

Below Grade Water Intrusion A project to divert underground water away from the hillside buildings to the lower end of campus will commence next summer. The process, known as dewatering, will siphon off water from above the campus and reinject it into the water supply downhill from the campus buildings. The rendering below shows that many of the buildings on the upper campus were built into the hillside and are thus susceptible to water intrusion. The exception is the recently completed Student Services Center, which has been built to resist water intrusion.

Over the life of the buildings, most of which were built circa 1974, underground springs and runoff from rain have filtered into the lower levels of most of the buildings, causing extensive damage to infrastructure systems, including plumbing and wiring supports and foundations. In periods of excess rain, water has also gotten into some offices and other rooms creating a disruption in work for staff and a need for remediation or replacement of furnishings and equipment. The Below Grade Water Intrusion Project will correct these issues and repair water damage that has occurred.

Science Modular ProjectA temporary facility to house a science lab and classroom will be installed on the Fremont campus to address safety concerns in an outdated science lab in building 2. To make way for two new modular buildings, the science lab and a restroom building, five of the older structures on campus will be removed. Two houses that were on the property when the campus site was purchased, buildings 25 and 26, will be razed along with buildings 15, 16 and 17, three older portable structures. The modular building will serve as a temporary home for the organic chemistry labs.

The project begins November 2010. Exterior construction for the project should be completed April 13, 2011. Completion of the interiors will be delayed until fume hoods from the former labs can be moved to the new facility. The interior should be completed by July 2011 and will be used for classes in fall 2011.

The budget for this project is approximately $1.9 million, which is fully funded by the Measure A Bond.

Current Status of Measure A Bond Funds

Total Bond Budget $163,329,885

Committed to Date:

OCNC $ 108,263,435

SSC 35,458,132

All Code 3* 14,141,757

Program Management 2,490,748

Total Committed $160,354,072

Uncommitted to Date:

OCNC $ 761,055

SSC 1,868

All Code 3* 2,210,115

Program Management 1,929

Unallocated Contingency 845

Total Uncommitted $ 2,975,813

*i.e., safety projects and secondary effects projects, including the modular buildings.

Savings Passed On To The PublicBond Refinancing Saves Taxpayers Over $3.4 Million

The Ohlone Community College District locked in significant savings of over $3.4 million for local taxpayers by refinancing a portion of its outstanding Measure A general obligation bonds on August 19th of this year. Measure A was approved by voters in March 2002 to expand educational opportunities and student achievement through the construction of state-of-the art facilities such as the Newark Center for Health Sciences and Technology and the Student Services Center. The District replaced $23.94 million in bonds at an average interest rate of 5.14% with $23.68 million in new bonds at an all-inclusive interest rate of 3.06%. All of the savings from the refinancing will be realized by District taxpayers in the form of lower property tax bills over the next sixteen years, beginning with the 2010-11 property tax bill. The District received strong investor demand for its new bonds by securing strong credit ratings of ‘Aa2’ from Moody’s and ‘AA’ from Standard & Poor’s. The ‘AA’ rating from Standard & Poor’s represents an upgrade from the previous ‘AA-’ rating. In upgrading the District’s rating, Standard & Poor’s noted the District’s consistent financial performance amid state funding pressures. “We are proud to serve our community and are very thankful for all of the support we receive,” said Mike Calegari, VP of Finance at Ohlone College. “As stewards of taxpayer dollars, we took advantage of significantly lower interest rates. As a result of the refinancing, local tax- payers will save an average of $217,000 per year for the next sixteen years.”

Refinancing SummaryMeasure A Series A Bond Funds

Net debt Service Savings $3,477,935

Present Value net Debt Service Savings $2,807,336

Present Value Benefit as % of Prior Bonds Principal 11.73%

Current Interest Rate of prior Bonds 5.14%

Interest Rate of Refunding Bonds 3.06%

Closing Date for Refunding Bonds September 2, 2010

Redemption Date/Price of Prior Bonds August 1, 2011 at 101%

Maturity Dates of Prior Bonds: August 1, 2011 to August 1, 2026

Maturity Date of Refunding Bonds: August 1, 2011 to August 1, 2026*

* i.e., no change in maturity dates due to refinance

©Robert Canfield Photography

©Robert Canfield Photography

Statement of ComplianceThe Citizen’s Bond Oversight Committee reports that, to the best of its knowledge, Ohlone College has complied with the requirements of state law in its accounting for and expending of Bond Funds.

September 13, 2010

Citizen’s Bond Oversight Committee2009-2010Bond Oversight Committee as of September 2009

Name: Representing:

Theodore Bresler Senior Citizen’s OrganizationKaren Bridges At largeShirley Buschke At largeSteven Chan At large, ChairBhaskar Chaudhari At largeAndrew MacRae At largeFrank Pirrone Business OrganizationJack Rogers At largeRakesh Sharma FoundationDennis Wolfe TaxpayersLauren Baca ASOC (Student)

Pictured from left: Andrew MacRae, Theodore Bresler, Rakesh Sharma, Frank Pirrone, Steven Chan, Dennis Wolfe, Dr. Gari Browning, President, Ohlone College, Karen Bridges, Kevin Feliciano, ASOC Representative for 2010-11, Shirley Buschke, Bhaskar Chaudhari

A World of CulturesUnited in Learning

Ohlone Community College District

43600 Mission Boulevard

Fremont, CA 94539-5847

510-659-6200 ph

510-659-6058 fax

www.ohlone.edu