MINUTES OF THE REGULAR BOARD OF TRUSTEES MEETING OF JUNE 11, 2019

President Vackar called the Board of Trustees meeting to order at 6:02 p.m. in the District Office, Board Room, 3801 Market Street, Riverside, California.

Trustees Present Tracey Vackar, President Mary Figueroa, Vice President Jose Alcala, Board Member Virginia Blumenthal, Board Member Jacob Alexander Velasquez, Student Trustee

Staff Present Dr. Wolde-Ab Isaac, Chancellor

CALL TO ORDER

Trustees Absent Bill Hedrick, Secretary

Mr. Aaron Brown, Vice Chancellor, Business and Financial Services Dr. Susan Mills, Vice Chancellor, Educational Services and Strategic Planning Dr. Terri Hampton, Vice Chancellor, Human Resources and Employee Relations Ms. Rebeccah Goldware, Vice Chancellor, Institutional Advancement and Economic

Development Dr. Robin Steinback, President, Moreno Valley College Dr. Sam Lee, Vice President, Academic Affairs, Norco College Dr. Gregory Anderson, President, Riverside City College Ms. Jennifer Floerke, Academic Senate Representative, Moreno Valley College Dr. Quinton Bemiller, Academic Senate Representative, Norco College/RCCD Dr. Mark Sellick, Academic Senate Representative, Riverside City College

Guests Present Mr. Mark DeAsis, Dean, Enrollment Services, Norco College Dr. Kaneesha Tarrant, Interim Vice President, Student Services, Norco College Dr. Rhonda Taube, President, California Teachers Association (CT A) Ms. Elena Santa Cruz, Vice President, California School Employee Association (CSEA)

Student Trustee Velasquez led the Pledge of PLEDGE OF ALLEGIANCE Allegiance.

Figueroa/Alcala moved that the Board of Trustees MOTfON TO EXCUSE ABSENCE approve Trustee Hedrick' s absence as excused. Motion carried. (4 ayes, 1 absent [Hedrick])

The following spoke in support of Dr. Reece, PUBLIC COMMENTS President Norco College: Monica Gutierrez, Eugene Montanez, Elexii Christianson, Barbara Moore, Jessica Dobson, Sarah Burnett, Sigrid Williams, Autumn Uriostegui, Melissa Bader, Thalia Moore-Shearer, Jacqueline Lugo, Swati Singh, Palbinder Badesha, Kevin Bash, Kris Anderson, Peggy Campo, Lisa Nelson, Stanley Tyler, Damien Saelak, Jody Tyler, Ruth Jones-Santos, Audrey Brandon, Yolanda Carrillo, Alexis Gray, Laura Roughton, Elizabeth Hayden, Maria

1

Adams, Mike Goodland, Mahmood Ahmad, Nathaniel Ito, Bob Prior, Kurtis Nienhuis, Tandy Dang, Cyndi Gundersen, Kathi Vaiasuso, Jim Gore, Robin Grundmeyer, Mica[ Pena, Vyvyana Woolridge, Ann Lafond, Judy Perry, Abraham Melgarejo, Deserie Ramirez, Alan Ruelas, Rudy Castellanos.

Fabian Biancardi spoke in support of the Chancellor and the District.

Shari Yates spoke in support of the Chancellor and the Board of Trustees.

Dr. Quinton Bemiller shared his concerns with the District and supports the needs of the students.

Dr. Mark Sellick asked the Board to follow the process they are bound to and shared his support of the Chancellor and the Board of Trustees.

Dr. Dariush Haghighat spoke in support of the Chancellor and the Board of Trustees.

The Board adjourned the meeting at 9:10 p.m. and reconvened at 9:24 p.m.

Figueroa/Blumenthal moved that the Board of Trustees approve the minutes of the Board of Trustees Regular/Committee Meeting of May 7, 2019. Motion carried. ( 4 ayes; 1 absent [Hedrick])

Blumenthal/Alcala moved that the Board of Trustees approve the minutes of the Board of Trustees Regular Meeting of May 21 , 2019. Motion carried. ( 4 ayes; I absent [Hedrick])

A public hearing was held on Collective Bargaining - California Schools Employees Association (CSEA), Chapter 535, Initial Bargaining Proposal. No comments or written protests were received and the hearing was closed.

A public hearing was held on Collective Bargaining - RCCD Faculty Association CCA/CT A/NEA Initial Bargaining Proposal. No comments or written protests were received and the hearing was closed.

2

ADJOURNMENT

MINUTES OF THE BOARD OF TRUSTEES REGULAR/COMMITTEE MEETING OF MAY 7, 2019

MINUTES OF THE BOARD OF TRUSTEES REGULAR MEETING OF MAY 21. 2019

PUBLIC HEARING

Collective Bargaining - California Schools Employees Association (CSEA), Chapter 535, Initial Bargaining Proposal

Collective Bargaining - RCCD Faculty Association CCA/CT A/NEA Initial Bargaining Proposal

A public hearing was held on Collective Bargaining - 2019/2020 RCCD California Schools Employees Association (CSEA), Chapter 535, Proposal for Retirement Incentive Plan. No comments or written protests were received and the hearing was closed.

A public hearing was held on Collective Bargaining - 2019/2020 RCCD Faculty Association CCA/CT A/NEA Proposal for Retirement Incentive Plan. No comments or written protests were received and the hearing was closed.

Chancellor Isaac presented Student Trustee Velasquez with the Scholarship Award for Spring 2019.

Dr. Tarrant and Mr. DeAsis presented on Norco College Student Services Expanded Online Services.

Blumenthal/Figueroa moved that the Board of Trustees approve the Memorandum of Agreement between the Rivers ide Community College District and the California School Employees Association, Chapter 535, and authorize the Chancellor to sign the Agreement. Motion carried. ( 4 ayes; l absent [Hedrick])

Blumenthal/Alcala moved that the Board of Trustees approve the Memorandum of Agreement between the Riverside Community College District and the Riverside Community College District Faculty Association CCA/CT A/NEA and authorize the Chancellor to sign the Agreement. Motion carried. (4 ayes [Alcala, Blumenthal, Figueroa, Vackar]; 1 absent [Hedrick])

Figueroa/Blumenthal moved that the Board of Trustees approve the Memorandum of Understanding between the Riverside Community College District and the California School Employees Association, Chapter 535, and authorize the Chancellor to sign the Agreement. Motion carried. (4 ayes; l absent [Hedrick])

3

Collective Bargaining -2019/2020 RCCD California Schools Employees Association (CSEA), Chapter 535, Proposal for Retirement Incentive Plan

Collective Bargaining -2019/2020 RCCD Faculty Association CCA/CTA/NEA Proposal for Retirement Incentive Plan

CHANCELLOR'S REPORTS

Presentation of Student Trustee Scholarship Award for Spring 2019

Presentation on Norco College Student Services Expanded Online Services

Memorandum of Agreement to Offer a Retirement Incentive Plan for Classified Employees

Memorandum of Agreement to Offer a Retirement Incentive Plan for Faculty

Memorandum of Understanding -Fringe Benefits/Retiree Health Benefits for Classified Employees

Figueroa/ Alcala moved that the Board of Trustees approve the Memorandum of Understanding between the Riverside Community College District and the Riverside Community College District Faculty Association CCA/CT A/NEA and authorize the Chancellor to sign the Agreement. Motion carried. ( 4 ayes; 1 absent (Hedrick])

Figueroa/ Alcala moved that the Board of Trustees approve the changes to Fringe Benefits and Retiree Health Benefits for Academic and Classified Management, and Classified Confidential Employees. Motion carried. (4 ayes; I absent [Hedrick])

Figueroa/Blumenthal moved that the Board of Trustees approve the Retirement Incentive Plan for Academic and Classified Management, and Classified Confidential Employees. Motion carried. ( 4 ayes; I absent [Hedrick])

Figueroa/Blumenthal moved that the Board of Trustees approve Resolution No. 69-18/19, for the Retirement Incentive Plan with California State Teachers' Retirement System. Motion carried. ( 4 ayes; 1 absent [Hedrick])

Figueroa/Alcala moved that the Board of Trustees approve Resolution No. 70-18/19, Agreement for Administrative Services with Public Agency Retirement Services to implement the retirement incentive plan for faculty, classified, management and confidential employees; and authorize the Vice Chancellor, Business and Financial Services to sign the implementing documents. Motion carried. (4 ayes; I absent [Hedrick])

Dr. Hampton provided the healthcare update and reported there is currently one open case.

The Board of Trustees received information on documents that are used to monitor and review upcoming action items, information items, and

4

Memorandum of Understanding­Fringe Benefits/Retiree Health Benefits for Faculty

Fringe Benefits and Retiree Health Benefits for Academic and Classified Management, and Classified Confidential Employees

Retirement lncentive Plan for Academic and Classified Management, and Classified Confidential Employees

Resolution No. 69-18/19 -Retirement Incentive Plan with California State Teachers ' Retirement System

Resolution No. 70-18/19 and Administrative Services Agreement for the Proposed Public Agency Retirement Services Retirement Incentive Plan

Healthcare Update

Future Monthly Committee Agenda Planner and Annual Master Planning Calendar

presentations, as well as planning for the monthly committee and Board meetings.

Student Trustee Velasquez presented the report STUDENT REPORT about recent and future student activities at Moreno Valley, Norco, and Riverside City colleges and Riverside Community College District.

Figueroa/Blumenthal moved that the Board of Trustees:

Approve/ratify the listed academic appointments, separations, and assignment and salary adjustments;

Approve/ratify the listed classified appointments, separations, and assignment and salary adjustments;

Approve/ratify the listed other personnel appointments, and assignment and salary adjustments;

Approve/ratify the Purchase Orders and Purchase Order Additions totaling $7,842,054 and District Warrant Claims totaling $6,727,662;

Approve adding the revenue and expenditures of $200,000 to the budget;

Award RFP Number 2018/19-31 Apprenticeship Program project to Network Kinection, LLC in the total amount of $198,900;

Award Bid Number 2018/18-34-Rebid, Library Building G Roof Replacement project at Norco College, in the total amount of $512,600 to Cl Services, Inc.;

Approve the purchase of data equipment and services from authorized Cisco resellers, utilizing the National Association of State Procurement Officials (NASPO) ValuePoint Master Agreement Number AR233;

5

CONSENT ITEMS

Action

Academic Personnel

Classified Personnel

Other Personnel

Purchase Order and Warrant Report - All District Resources

Resolution No. 68-18/ l 9 - 2018-2019 Workforce Accelerator Fund Grant

Apprenticeship Program Project

Bid Award for the Library Building G Roof Replacement Project

Purchase of Data Equipment and Services Utilizing the National Association of State Procurement Officials (NASPO) ValuePoint Master Agreement Number AR233

Adopt Resolution No. 66-18/ 19 with the County of Riverside for award of services agreement and Sole Source Procurement of the Public Safety Enterprise Communication (PSEC) System, Equipment, Software, Maintenance, and future Product Enhancement Services for the period of July 1, 2019 through June 30, 2020, in the total amount of $103,386;

Approve the Pre-Qualified List of forty-five (45) engineering and consulting firms for eligibility to provide Environmental, Engineering, Inspector of Records, HAZMAT/Asbestos, and Structural Consulting Services on an as needed basis for individual projects;

Ratify contracts totaling $673,020 for the period of May I, 2019 through May 27, 2019;

Approve the agreement with Riverside City Fire in the amount not to exceed $175,000, for firefighter training course instruction;

Approve the contract with Terris Barnes Walters Boigon Heath, Inc. (TBWB) for future bond measure feasibility consulting services in the total amount of $102,000;

Approve the contract with Apprentice Training Program Remittance to Local Union 477, l.B.E.W.-Southern Sierras, N.E.C.A. Educational and Training Trust for the period of July 1, 2018 through June 30, 2019 not to exceed $600,000;

Approve the contract with Apprentice Training Program Remittance to Riverside County Educational and Training Trust Fund for the period of July 1, 2018 through June 30, 2019, not to exceed $600,000;

Approve the Inland Empire/Desert Region Strong Workforce Program Participation Agreements with Chaffey Community College District, College of the Desert, San Bernardino Community College District, and Victor Valley Community College District in the amount of $582,108;

6

PSEC Service

Pre-Qualified List of Engineering & Consulting Services

Contracts and Agreements Report Less than $92,600 -All District Resources

Inter-Agency Instructional Services Agreement with Riverside City Fire

Future Bond Measure Feasibility Consulting Services

Contract for Apprentice Training Program Remittance to Local Union 477, l.B.E.W.-Southern Sierras, N.E.C.A. Educational and Training Trust

Contract for Apprentice Training Program Remittance to Riverside County Educational and Training Trust Fund

Inland Empire Desert Region Participation Agreements No. 20 I 7 /20-19 Strong Workforce Program between Riverside Community College District and Four Community College Districts Within the Region

Approve the twenty-five (25) Inland Empire/Desert Region K-12 Strong Workforce Program Agreements with Apply Valley USD, Baldy View ROP, Beaumont USD, Chaffey Joint Union High School District, Colton-Redlands-Yucaipa ROP, Corona-Norco USD, Jurupa USO, Mojave USD, Moreno Valley USO, Murrieta Valley USO, Palm Spring USD, Riverside County Office of Education, Riverside USD, San Bernardino City USO, San Bernardino County ROP, Santa Rosa Academy, SIA Tech, Inc., and Temecula Valley USO in the amount of $18,961 ,442;

Approve Amendment No. 3 for the Inland Empire/Desert Regional Consortium (lE/DRC) CTE Rebranding and Marketing Campaign with Interact to extend the contract period to July 1, 2019-June 30, 2020, fulfilling the final one-year extension.

Approve Out-of-State Travel;

Declare the property on the attached list to be surplus; find the property does not exceed the total value of $5,000; and authorize the property to be consigned to The Liquidation Company to be sold on behalf of the District;

Accept the projects listed on the attachment as complete, and approving the execution of the Notices of Completion ( under Civil Code Section 3093 - Public Works);

Motion carried. (4 ayes; 1 absent [Hedrick])

The Board received the Capital Program Executive Summary Report for May 31 , 2019.

The Board received the Monthly Financial Report for Month Ending - May 25, 2019.

7

_Inland Empire Desert Region Agreements- K-12 Strong Workforce Program Between Riverside Community College District and Local Educational Agencies

Agreement Amendment for the Inland Empire/Desert Regional Consortium (IE/DRC) CTE Rebranding and Marketing Campaign

Out-of-State Travel

Surplus Property

Notices of Completion

[nformation

Capital Program Executive Summary Report as of May 31 , 2019

Monthly Financial Report for Month Ending - May 25, 2019

BOARD COMMITTEE REPORTS

Governance

Blumenthal/Figueroa moved that the Board of Trustees approve the second reading of Board Policy and Administrative Procedure 3950 - Naming of Facilities. Motion carried. ( 4 ayes; 1 absent [Hedrick])

Vackar/Alcala moved that the Board of Trustees approve the proposed curricular changes for inclusion in the college catalogs and in the schedule of class offerings. Motion carried. ( 4 ayes; 1 absent [Hedrick])

Vackar/Figueroa moved that the Board of Trustees approve the Sabbatical Leave requests. Motion carried. ( 4 ayes; 1 absent [Hedrick])

Vackar/Figueroa moved that the Board of Trustees approve the proposed Student Services Fee increase from $15.00 in the fall and spring semesters, and $2.00 in the winter and summer terms to $30.00 in the fall and spring semesters, and $10.00 in the winter and summer terms to be assessed to students at Moreno Valley College, Norco College, and Riverside City College.

Figueroa/Blumenthal moved that the Board of Trustees approve the 2021-2025 Five­Year Capital Construction Plan; the Initial Project Proposals for Biological and Physical Science Building (Moreno Valley College), Library/Learning Resource Center (Norco College), MLK Renovation (Riverside City College), Kinesiology and Athletics Building (Moreno Valley College), Cosmetology Building (Riverside City College), Visual/Performing Arts Center (Moreno Valley College); and the Final Project Proposals for Library Leaming Center (Moreno Valley College) and Center for Human Performance and Kinesiology (Norco College). Motion carried. (4 ayes; 1 absent [Hedrick])

Figueroa/Blumenthal moved that the Board

8

Board Policy for Second Reading­BPAP 3950 - Naming of Facilities

Teaching and Leaming

Proposed Curricular Changes

Sabbatical Leave Requests

Proposed Student Services Fee Increase

Planning and Operations

2021-2025 Five-Year Capital Construction Plan

Moreno Valley College 2019-2030

of Trustees approve the Moreno Valley College 20 I 9-2030 Facilities Master Plan. Motion carried. ( 4 ayes; I absent [Hedrick])

Figueroa/Blumenthal moved that the Board of Trustees approve the Norco College 2019-2030 Facilities Master Plan. Discussion followed. Motion was amended to approve the Norco College 2019-2030 Facilities Master Plan except the Student Housing and Performing Arts High School, until further policies are created. Motion carried. ( 4 ayes; 1 absent [Hedrick])

Figueroa/Blumenthal moved that the Board of Trustees approve Resolution No. 67-18/19 for the Ben Clark Training Center Letter of Intent Application for Educational Center Status. Motion carried. (4 ayes; 1 absent [Hedrick])

Alcala/Blumenthal moved that the Board of Trustees approve the RCCD EEO Fund Multiple Method Certification Form and authorize Human Resources and Employee Relations to submit. Motion carried. (4 ayes; I absent [Hedrick])

Alcala/Vackar moved that the Board of Trustees approve the allocation from the District/Centrally Controlled Measure C Bond funds in the total amount of $8 million for the following projects at Moreno Valley College: Elevator Modernization and Fire Alarm System Upgrades - $1 million; Student Services Building Renovation - $5 million; and the Education Center Bui lding Phase 1 at Ben Clark Training Center - $2 million. Motion carried. (3 ayes; 2 absent [Hedrick, Figueroa])

Alcala/Blumenthal moved that the Board of Trustees approve the Moreno Valley College Elevators Modernization and Fire Alarm System Repair and Upgrade projects and the allocation of $1 million from District/Centrally Controlled Measure C bond funds. Motion carried. (3 ayes; 2 absent [Hedrick, Figueroa])

9

Facilities Master Plan

Norco College 2019-2030 Facilities Master Plan

Ben Clark Training Center Letter of Intent Application for Educational Center Status

Resources

RCCD EEO Fund Multiple Method Certification District

Measure C Allocation Augmentation

Elevators Modernization and Fire Alarm System Repair and Upgrade Projects

Alcala/Vackar moved that the Board of Trustees approve the Ben Clark Training Center Education Center Building, Phase 1 Project total budget in the amount of $13 million; the agreement with SVA Architects in the amount not to exceed $717,869 for architectural services; and the allocation of $2 .million from District/Centrally Controlled Measure C bond funds. Motion carried. (3 ayes; 2 absent [Hedrick, Figueroa])

Alcala/Vackar moved that the Board of Trustees approve the addition of the Moreno Valley College Student Services Renovation Project into the Student Services Welcome · Center Project; approving a revised total project budget to $19 million; and the allocation of $5 million of District/Centrally Controlled Measure C bond funds. Motion carried. (3 ayes; 2 absent [Hedrick, Figueroa])

Alcala/V ackar moved that the Board of Trustees approve the revised Budget Allocation Model for implementation in 2019-20. Motion carried. (3 ayes; 2 absent [Hedrick, Figueroa])

Alcala/Blumenthal moved that the Board of Trustees approve the FY 20192020 Tentative Budget, as presented, which consists of the funds and accounts noted therein, and authorize staff to forward a copy to the Riverside County Superintendent of Schools; announce the proposed FY 2019-2020 Final Budget will be available for public inspection beginning September 13, 2019, at the Office of the Vice Chancellor, Business and Financial Services; and the public hearing will be held at 6:00 p.m. at a Board meeting on September 17, 2019, to be followed by the adoption of the FY 2019-2020 Final Budget. Motion carried. ( 4 ayes; l absent [Hedrick])

Dr. Steinback, President, Moreno Valley College, Dr. Lee, Vice President, Norco College, and Dr. Anderson, President, Riverside City College

10

Ben Clark Training Center Education Center Building, Phase l Project

Moreno Valley College Student Services Building Renovation Project

Revised Budget Allocation Model

Tentative Budget for FY 2019-2020 and Notice of Public Hearing on the FY 2019-2020 Final Budget

ADMINISTRATIVE REPORTS

Presidents

updated the Board on the upcoming events and activities occurring at their colleges.

Ms. Floerke presented the report on behalf of Moreno Valley College.

Dr. Bemiller presented the report on behalf of Norco College and Riverside Community College District.

Dr. Sellick presented the report on behalf of Riverside City College.

Dr. Taube presented the report on behalf of the CTA.

Ms. Santa Cruz presented the report on behalf of the CSEA.

Trustee Blumenthal commented on RCC's commencement and thanked Dr. Anderson for his involvement; shared she was asked to submit her name to serve on the California Community College Board of Governors.

Trustee Figueroa reminded everyone not to lose sight of why we here and the programs and careers offered to students; shared the events she attended last month; suggested more communication with the community.

Trustee Alcala thanked the speakers; made a commitment to the community to improve communication; shared the events he attended last month.

Trustee Vackar thanked the speakers; reviewed the closed session process; reminded everyone of the impact you have on student's lives; shared the events she attended last month; thanked everyone for their hard work throughout the year.

ACADEMIC SENA TE REPORTS

Moreno Valley College

Norco College/Riverside Community College District

Riverside City College

BARGAINING UNIT REPORTS

CT A - California Teachers Association

CSEA - California School Employees Association

BUSINESS FROM BOARD MEMBERS

Update from Members of the Board of Trustees on Business of the Board

The Board adjourned to closed session at 11 :26 CLOSED SESSION p.m. and reconvened at 12:55 a.m. after considering the following closed session items:

11

Blumenthal/Figueroa moved that the Board of Trustees approve the recommendation to appoint a third-party officer for the purpose of conducting an evidentiary hearing pertaining to a classified public employee discipline/dismissal/release. Motion carried. (4 ayes; 1 absent [Hedrick])

The Board of Trustees voted 4 ayes, 1 absent [Hedrick] , to terminate the employment agreement of Dr. Bryan Reece, President, Norco College, effective immediately.

The Board adjourned the meeting at 12:59 a.m.

Official Minutes Approved on 8/20/19

Certified By: ~~

12

Pursuant to Government Code Section 54957, Public Employee Discipline/Dismissal/Release

Pursuant to Government Code Section 54957, Public Employee Discipline/Dismissal/Release

ADJOURNMENT

Board of Trustees Regular Meeting (VIII.N)Meeting June 11, 2019

Agenda Item Resources (VIII.N)

Subject ResourcesRevised Budget Allocation Model

College/District District

Funding N/A

RecommendedAction

Recommend approving the revised Budget Allocation Model forimplementation in 2019-20.

Background Narrative:

The District identified a need to make substantive changes to the existing Budget Allocation Model (BAM) andembarked on a year-long effort to do so through the District Budget Advisory Council (DBAC) and engaging thecollege community throughout the process, including the District Strategic Planning Council. The construct ofthe existing BAM is based on a Full-Time Equivalent Student (FTES) model that reflected how resources werepreviously allocated from the State (SB361), modified to consider the costs associated with the instructionalprograms and organizational structures at each college, to derive the known cost of producing FTES (averagedover a 10 year period) at each college.

The newly envisioned BAM was developed to allocate resources centered around the following core principles:

• Fair – Resource allocation decisions will be informed by objective, predictable, verifiable, and easilyaccessible data and will be made in an impartial and consistent manner.• Equitable – Resources will be distributed in a manner that adequately supports the full array of programsoffered at each college while ensuring compliance with statutory and regulatory requirements; efficient andstrategic use of resources is expected, and inefficiencies will not be subsidized or supported.• Transparent – Resource allocation decisions will be made in an open and consultative manner withrepresentative stakeholder groups and that it is simple, easy to administer and communicate as possible.

Beyond the core principles, additional principles were developed to guide the allocation of resources as shownon the attachment including the alignment of resource allocation decisions with the strategic plans for eachentity, and more specifically scaling of the Guided Pathways initiative. The focus of the BAM has been on thegeneral operating fund; however, the principles enumerated above can be applied to all resources of theDistrict.

The District is primarily funded through apportionment, the majority of which is based on the number ofFull-Time Equivalent Students (FTES) we serve annually. This is still true under the new Student CenteredFunding Formula (SCFF) wherein enrollment comprises 70% of the apportionment calculation. As such, theBAM was developed using the concept of “FTES as Currency” whereby each FTES generated has a value (orcurrency) that can be assigned based on a “standard” or “exchange rate” for each instructional program ordiscipline. In general, the BAM will use the FTES “Exchange Rates” that are developed to allocate resources tothe colleges and, eventually, resource allocations at the colleges will emulate this framework. The examplesbelow demonstrate the “exchange rate” concept showing differing cost structures for two disciplines:

Nursing (Higher Cost per FTES)o Low Student/Faculty Ratio

o Dean of Nursingo Lab Technicianso Lab Equipmento Lab Supplieso Program Accreditation Costo Classified Administrative Staffo Clinical Siteso Staff Travel

Political Science (Lower Cost per FTES)o Higher Student/Faculty Ratioo No Lab Equipment, Supplies, or Technicianso Shared Dean with Other Disciplineso No Accreditation Costs

Procedurally, four years of historical discipline cost per FTES information was assembled for each college todevelop the “exchange rates” per discipline. Multiple years were used to smooth out year-over-year fluctuations(equipment investment, full-time vs. part-time faculty, etc.) to create a three-year average “exchange rate”. Each discipline was grouped into the following categories: 1) STEM; 2) Liberal Arts; 3) CTE and; 4) Unique(defined as a discipline that occurs at only one college). The “exchange rate” was then used to apply toprojected FTES for that category. A similar methodology was used to calculate the non-instructional allocation. A more detailed explanation of the procedural steps is attached. In addition, the detailed calculation worksheetsare attached for Tentative Budget purposes. This information will be updated after FY 2018-19 year-end closingto develop the BAM for FY 2019-20 Final Budget purposes.

This iteration of the revised BAM is considered the first phase of implementation. As such, no budget allocationmodifications will be made as a result of the implementation in FY 2019-20. The expectation is that disciplinecost per FTES data will be used to inform budget allocations in FY 2020-21.

DBAC will continue to assess the BAM during FY 2019-20 for the following items: 1) treatment of District Officecosts based on services level expectations; 2) Student Centered Funding Formula considerations for Equityand Success outcomes; 3) progress towards comprehensive college status; 4) Guided Pathways scaling; 5)funding alignment with strategic objectives; 6) defining key BAM terms and; 7) overall BAM performance.

It is recommended that the Board of Trustees approve the revised Budget Allocation Model for implementationin FY 2019-20.

Prepared By: Aaron S. Brown, Vice Chancellor, Business and Financial ServicesMajd Askar, Director, Business ServicesNathaniel Jones III, Vice President, Business Services, Moreno Valley CollegeMichael Collins, Vice President, Business Services, Norco CollegeChip West, Vice President, Business Services, Riverside City College

Budget Allocation Model

Operating General Fund Principles

Principles

1. The Budget Allocation Model will be fair, equitable, and transparent.

a) Fair – Resource allocation decisions will be informed by objective, predictable, verifiable, and easily accessible data

and will be made in an impartial and consistent manner.

b) Equitable – Resources will be distributed in a manner that adequately supports the full array of programs offered

at each college while ensuring compliance with statutory and regulatory requirements; efficient and strategic use

of resources is expected, and inefficiencies will not be subsidized or supported.

c) Transparent – Resource allocation decisions will be made in an open and consultative manner with representative

stakeholder groups and that it is simple, easy to administer and communicate as possible.

2. The goals and priorities for student success, equity, and access as articulated in the educational master/strategic plans of

each college and the District Office will align with the goals included in the District Strategic Plan and strategic vision plan

adopted by the California Community Colleges Board of Governors, including benchmarks and actions for measuring

progress, and the Budget Allocation Model will align accordingly.

3. The Budget Allocation Model will provide operational cost predictability and stability to support college and District Office

strategic goals and objectives.

4. The Budget Allocation Model will recognize and consider the variable costs associated with unique and common programs

at each college and across the district.

5. The Budget Allocation Model will recognize and consider the variable costs associated with new and proposed programs at

each college and across the district.

6. Operational structural balance will be maintained by ensuring that ongoing expenditures do not exceed ongoing revenues

resulting in a positive fund balance.

7. Ongoing expenditures will be funded with ongoing revenues, and one-time expenditures will be funded with one-time

revenues, with exceptions only under rare circumstances.

8. Compliance with State, accreditor, and District reserve requirements will be maintained or exceeded, will be the first item

funded in the BAM, and each college will maintain its own prudent reserve of no less than 1% of the previous years

expenditures. Reserves in excess of the minimum reserve requirements will be established in an expenditure holding

account to meet unexpected and/or unanticipated expenditures that arise subsequent to budget adoption.

9. Net prior year budget savings realized by each entity, exclusive of established net holding account balances and entity

specific revenue/expenditure budget sources, will be retained by each entity upon approval of an expenditure plan linked

to entity strategic planning priorities and once the minimum districtwide and college reserve requirements are met or

exceeded.

10. Colleges are expected to achieve their annual Full-Time Equivalent Students (FTES) targets. If a college does not achieve its

annual FTES target, they will have one year to correct the shortfall before a funding reduction is applied to the subsequent

year allocation of part-time faculty and overload budgets.

11. The budget allocation model will be assessed annually.