Measure J Citizens’ Bond Oversight Committee Strongly Recommends Investigation of Misappropriation of Funds

South San Francisco, CA    October 28, 2015 

The Measure J Citizens’ Bond Oversight Committee (CBOC) reports ‘significant mismanagement issues  and possible misapplication of bond funds that may have occurred’ and are recommending further investigation by appropriate authorities as they state the Committee had not received sufficient information to perform their oversight responsibilities effectively.

“It was not until April 2015 that the public was finally informed that the $20 million in savings that will result from the Chevron ‘SOLAR’ project, will actually cost taxpayers between $45 and $52 million (including interest)”  the Winston Manor Community Association (WMCA) wrote back in September,  “This is an excessive loss of public funds and taxpayers will be paying this debt for the next 40 years.”

‘We do not understand how the Board of Trustees can possibly justify this loss or to have incurred this amount as a taxpayer liability. The public deserves to know why the Chevron project will result in such a significant loss to taxpayers. This project was not included in the May 2015 Forensic Audit. Therefore, we call upon the Board of Trustees to have this project investigated and fully audited and to explain and justify this expenditure‘ the WMCA continued.

In addition to the Chevron Solar Project, questions remain unanswered regarding the Project Frog Buildings including the contractors, project suppliers, architects and professionals who contracted with the District and who have been negligent in the performance of their duties and responsibilities. “These individuals and businesses should be held accountable for any negligence that may have occurred.” the Winston Manor Community Association sited. Now the CBOC concurs further investigation must be done by appropriate parties.  “…during the major part of the last 3 years the CBOC has been intentionally mislead and misinformed.” the Annual report concludes ‘CBOC reporting is supposed to ensure and inform the community that the CBOC is confident that the District has properly and prudently manages its tax dollars. At this time it is very difficult if not impossible for the CBOC to indicate a sufficient level of confidence in the financial reporting, to make this determination’

Earlier this month the Winston Manor Community Association had published an ‘Open Letter to the Community’ informing the public what they had learned after attending District Board meetings  as well as CBOC meetings, since the inception of the approval of Measure J Bond.  CLICK HERE for that publication.

The Measure J Citizens’ Bond Oversight Committee has put out the annual report which is detailed below. The SSFUSD Measure J Bond Newsletter update was released yesterday and can be found CLICK HERE and acknowledges ‘the Measure J Bond Program has been going through some  changes…. and key players have left the district‘.

The community now insists that further investigation be done so the public has a complete understanding of how mismanagement of our tax monies came to be, and to hold those at fault responsible for their actions.

FOR MORE ON MEASURE J, INCLUDING PAST ARTICLES AND COMMUNITY COMMENTS, PLEASE CLICK HERE

The following document ‘The Measure “J” Bond Program Citizens’ Bond Oversight Committee June 30, 2015 Annual Report‘ offers more in depth information including the Committee’s Summary and Conclusions, and minutes of the CBOC meetings.

CBOC Summary and Conclusion

  1. Over the past 3 years the purpose of the Measure J Citizens Bond Oversight Committee (CBOC) has been completely ineffective due to the failure and refusal of the Districts’ administration to provide sufficient information to the CBOC.
  1. It is our function to perform the duties of the CBOC, to review and report committee findings and to ensure that all bond revenues are spent specifically on bond projects only, as outlined in Measure J.
  1. The actions by bond management, which has been discovered and disclosed during the past few months, leads us to believe that during the major part of the last 3 years the CBOC has been intentionally mislead and misinformed. As result, we have been unable to adequately perform our duties and responsibilities.
  1. We also believe that the discontinuation of the originally established advisory committee, at the front end of the bond project process, made it possible for the bond management team to act in an autonomous and uncontrolled fashion.
  1. The CBOC has no actual directive or regulatory powers in the bond project process and we have experienced many issues and instances, which has lead us to this to this conclusion.
  1. In CBOC’s job description, nowhere is it clearly indicated that we are allowed to put out a quarterly report to the public on the financial health of the bond, which should have included explanations of any shift in bond funds between.
  1. Bond Management has intentionally impeded the CBOC in the performance of our duties, by their refusal to provide pertinent information when requested. If this information was disclosed by management, the CBOC,   the Board and the public would have been aware of the drastic shifts in project funds and questions or concerns could have been raised.
  1. The CBOC was given the impression that the districts Measure J newsletter was the extent of the public awareness process. The District should have been more forthcoming with information to the public, which could have help to avoid the negative publicity that has resulted due to recent developments.
  1. Requests for information by the CBOC either as a whole and/or by individual committee members, were regularly and repeatedly delayed or ignored by District management. The CBOC was stonewalled, when information was requested regarding specificity of expenditures.
  1. The CBOC was only provided with projected budgets and general expense spreadsheet reports, with no disclosure of the actual expenditures that were made by district management. If the CBOC was provided with specific expenditure reports, as requested, we may have been able to raise issues and ask important questions regarding the expenditures of bond funds. Once again we would have seen things that could have raised red flags and would have notified the public, administration and board members of these findings.
  1. CBOC is very disappointed with actions taken by the prior administrative management. It is clear from the results of the forensic audit that there were significant contractual issues, lack of controls and overall management mistakes that were made. It also appears that subsequent actions that were initiated by management was an attempt to try and cover up the mistakes, which lead to more mistakes.
  1. It does appear from the forensic audit that significant mismanagement issues have definitely occurred and the possible misapplication of bond funds may have also occurred. The CBOC recommends that these matters be investigated by the appropriate authorities.
  1. It is now clear that the actions by management has resulted in the District not being able to complete all of projects and the District is unable to meet its voter mandated oo,rtmmc.ms outline in Measure J, as the funds are no longer available.
  1. The road ahead for the remaining Measure J projects is by our account going to be very difficult and there is no clear indication that even the districts own funds will properly offset the shortfall from   Measure J funding.
  1. The CBOC is also concerned about the projects being removed or delayed, as every project that was listed was specifically designated for Measure J funds to be spent on their completion.
  1. Members of CBOC were appointed by the Board of Trustees and are representatives of the SSFUSD public community. Although we are not employed by the district, we are concerned citizens who are residents, voters, and taxpayers.
  1. While the recent forensic audit indicates that Measure J funds were spent on bond projects, this does not change the fact that things were done improperly.
  1. As members of the CBOC, we have not been provided with sufficient information to make a factual determination. As a result, the CBOC is unable to certify at this time that all bond funds have been spent solely on bond projects.
  1. CBOC reporting is supposed to ensure and inform the community that the CBOC is confident that the District has properly and prudently manages its tax At this time it is very difficult if not impossible for the CBOC to indicate a sufficient level of confidence in the financial reporting, to make this determination.

*An update was made at 10:05 to adjust formatting issues that erased the last word on a few on the above sentences.

 

July 8, 2014 (Regular Meeting #21)- District Office Board Room

 

  • Call to Order/Roll Call
  • Approval of Meeting Minutes #20
  • Review & Approve CBOC 2013/14 Annual Report to Board of Trustees Measure J Update
  • Review of Measure J Bond Financial Report “
  • Newsletter and Messaging to the Public
  • Attendance Report Review Meeting Schedule
  •  Public Comments – No comments.
  • Adjournment to Schools Tour

Documents Received During Meeting:

  • Meeting Minutes #20
  • CBOC Annual Reports for 2013/14 Financial Report
  • Attendance Report

 

November 18, 2014 (Regular Meeting #22)- District Office Board Room

  • Call to Order/Roll Call
  • Approval of Agenda
  • Approval of Meeting Minutes #21
  • Approval to update bylaws in accordance with Ed Code 15282: Members may serve three consecutive, two year terms
  • Acceptance of Rick Ochsenhirt’s resignation and election of replacement CBOC chair
  • Measure J Update
  • Review of Measure J Bond Financial Reports
  • Newsletter and Messaging to the Public Attendance Report Review
  • Meeting Schedule
  • Public Comments – Trustee Bush expressed appreciation to CBOC and their work.
  • Adjournment

Documents Received During Meeting:

  • Financial Report
  • Meeting Minutes #21
  • Attendance Report

 

January 20, 2015 (Regular Meeting #23)- District Office Board Room

  • Call to Order/Roll Call
  • Approval of Agenda
  • Approval of Meeting Minutes #22
  • Update on Board Action – Renewal of the CBOC terms “
  • Election of CBOC Officers
  • Measure J Update
  • Review of Measure J Bond Financial:
  • Newsletter and Messaging to the Public
  • Attendance Report Review
  • Meeting Schedule
  • Public Comments – No comments. “
  • Adjournment

Documents Received During Meeting: ”

  • Meeting Minutes #22
  • Financial Report Attendance Report

 

March 10, 2015 (Regular Meeting #24)- District Office Board Room

  • Call to Order
  • Approval of Agenda
  • Approval of Meeting Minutes #23
  • Recall previous election and reelection of CBOC officers Measure J Update
  • Review of Bond Audit – FY 13-14
  • Review of Measure J Bond Financial Reports Newsletter & Messaging to the Public Attendance Report Review
  • Meeting Schedule
  • Public Comments – Aaron Boyd, teacher at SSFHS, read a letter regarding the wifi service at the Press Box at the new field.
  • Adjournment to tour – Tour rescheduled for March 17, 2015

Documents Received During Meeting:

  • Meeting Minutes #23
  •  Financial Report
  • Attendance Report

 

 

March 17, 2015  (Regular Meeting #25)- District Office Board Room

  • Call to Order/Roll Call
  •   Public Comments – No comments
  • Adjourn to tour SSFHS, Buri Buri & Parkway

 

May 12, 2015  (Regular Meeting #26)- District Office Board Room

  • Call to Order/Roll Call
  • Approval of Agenda
  • Approval of Meeting Minutes #24 and #25
  • Presentation by District Counsel Regarding Roles, Responsibilities and Regulations of the CBOC
  • Keygent Presentation – Asst. Supt of Business Services Measure J Update
  • Review of Measure J Bond Financial Reports/Request for District Accounts Payable Measure J records Newsletter & Messaging to the Public
  • Attendance Report Review
  • Public Comments – Members of the WMCA expressed frustration over the waste of Bond money, all expressed appreciation to the Asst. Superintendent of Business Services hard work.
  • Meeting Schedule
  • Adjournment

Documents Received During Meeting:

  • Meeting Minutes #24 & #25
  • Handout from District Counsel
  • Keygent Measure J Update
  • Solar Information from Martin Romero
  • Financial Report
  • Attendance Report

 

 

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The Full Report

CBOC Annual Report 2014-15 FINAL-page-001 CBOC Annual Report 2014-15 FINAL-page-002 CBOC Annual Report 2014-15 FINAL-page-003 CBOC Annual Report 2014-15 FINAL-page-004 CBOC Annual Report 2014-15 FINAL-page-005 CBOC Annual Report 2014-15 FINAL-page-006

 

 

 

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