[4.05 Approval to Award Master Architectural/Engineering Services Agreement and Project Assignment Agreement No. 1 with Westgroup Design Inc. for the New Student Housing Project]

ABSOLUTELY. GOOD EVENING, BOARD OF TRUSTEES.

AND AS I BEGIN SPEAKING, I ENCOURAGE YOU, THERE'S A DOCUMENT WITHIN THE BOARD ITEM THAT IT'S I BELIEVE THE TITLE IS WD WESTGROUP DESIGN.

SUMMARY. SO FEEL FREE TO OPEN THAT DOCUMENT.

THAT KIND OF EXPLAINS WHO THEY ARE AS I KIND OF GO THROUGH THE PROCESS.

SO I'M GOING TO GO THROUGH THIS QUICKLY ON THAT.

AND SO REMEMBER BACK IN SEPTEMBER AT THE SEPTEMBER 20TH BOARD MEETING WHERE I PROVIDED AN UPDATE ON STUDENT HOUSING, WHERE THE NEXT STEPS WERE, AND AT THAT TIME, WE AUTHORIZED US TO MOVE FORWARD WITH THE RFP PROCESS.

NINE DAYS LATER, WE ISSUED THE RFP.

KUDOS TO MARK LOGAN AND HIS STAFF FOR HUSTLING ON GETTING THE RFP.

GIVEN THAT, YOU KNOW, OBVIOUSLY TIME IS ESSENTIAL IN THIS PROCESS.

AND SO WE THE RFP WAS KICKED OFF.

AT THAT WE RECEIVED A TOTAL OF SEVEN PROPOSALS AT WHICH TIME WE DEVELOPED A COMMITTEE TECHNICAL EVALUATION COMMITTEE TO REVIEW THEM AND SELECT.

AND WE SELECTED THREE FIRMS FOR INTERVIEW.

WE CONDUCTED INTERVIEWS AND AFTER THE INTERVIEWS, WE ACTUALLY HAD A SHORTLIST OF WE SHORTLIST TWO.

AND THEN WE BROUGHT THEM BACK IN TO HAVE MORE IN-PERSON DIALOG BECAUSE WE WANTED TO MAKE SURE WE HAD WE WERE MAKING THE RECOMMENDATION WITH THE RIGHT PARTNER ON THIS PROJECT.

ULTIMATELY, WE ARE RECOMMENDING WESTGROUP DESIGN AS OUR ARCHITECT FOR THIS PROJECT. A LITTLE BIT ABOUT THEM ON THAT.

AND SO THEY ACTUALLY HAVE A UNIQUE COLLABORATION.

ALTHOUGH WESTGROUP DESIGN IS THE ARCHITECT FIRM THAT WE'LL BE CONTRACTING, THEY ALSO BROUGHT IN A PARTNER ALONG WITH THEM.

LOWRY ARCHITECT AS WELL.

AND THE COMBINATION OF THEM THEY'VE CREATED WHAT THEY CALL FORWARD LIVING HOUSING.

CO-LAB SPECIALIZING IN A CERTAIN PARTICULAR MODEL OF LOW INCOME HOUSING.

AND HAVE BEEN DOING THIS LOWRY ARCHITECT HAS BEEN DOING THIS ALL OVER THE WORLD ESPECIALLY HERE IN CALIFORNIA.

SO IF YOU GO THROUGH THEIR PROFILE, YOU CAN KIND OF SEE THE LIST OF HOUSING PROJECTS THEY HAVE BEEN INVOLVED WITH ON THAT.

ONE OF THE THINGS, CRITICAL ITEMS THAT WE WERE STARTING TO FOCUS ON AS WE STARTED NARROWING OUR DECISION.

OBVIOUSLY BUDGET IS ALWAYS A CONCERN.

WE HEARD YOUR VOICES AT THE LAST MEETING.

OR THE PREVIOUS MY PREVIOUS PRESENTATION REGARDING THE THE THE BUDGET.

YOU KNOW, AS COSTS, THE LONGER WE WAIT ESCALATION COSTS WERE GOING.

SO OBVIOUSLY THAT WAS A FACTOR IN OUR SELECTION ON THAT.

BUT ALSO TIME HOW CAN WE SPEED UP THIS PROJECT? IS WAS THERE A WAY TO SPEED UP THIS PROJECT? AND THE ANSWER TO THAT IS YES.

THERE IS A WAY TO SPEED UP THAT PROJECT.

THERE IS A WAY TO BUILD FASTER WITH LESS IMPACT TO THE ENVIRONMENT AND STILL BE HIGH QUALITY.

AND THAT SOLUTION IS WHAT THEY CALL VOLUMETRIC MODULAR CONSTRUCTION.

[01:30:01]

AND SO OBVIOUSLY THAT PROCESS IS NEW TO THE CAMPUS BUT NOT NEW TO THE INDUSTRY OUT THERE ON THAT.

AND SO I DO HAVE REPRESENTATIVES WITH ME TO ANSWER A LITTLE BIT MORE QUESTIONS IN DETAIL, IN CASE YOU WANT THAT.

BUT SOME OF THE HIGHLIGHTS THAT I WANT TO SPECIFY WHY WE'RE GOING DOWN THIS ROAD IS SOME OF THE A LOT OF THE STAINABILITY ASPECTS REGARDING THIS TYPE OF BUILDING ARE CONSIDERED.

SO AGAIN, SOME CONSIDERATIONS OF THIS ARE RESPONSIBLE USE OF MATERIALS AND RESOURCES, DESIGN DURABILITY, ENERGY AND SYSTEMS. EFFICIENCIES. SOME OTHER ADVANTAGES IS OBVIOUSLY COSTS, COST SAVINGS AND PRIMARILY COST SAVINGS WITHIN SCHEDULE REDUCTION, BETTER QUALITY SAFETY LESS POTENTIAL FOR WEATHER DAMAGE BECAUSE OBVIOUSLY YOU'RE CONSTRUCTING THIS IN A, IN A MANUFACTURER TYPE OF SETTING LESS PROCESS OF EITHER ARSON OR DAMAGE TO THE PROPERTY. AND THEN OBVIOUSLY THE STAINABILITY THIS PROCESS IS DESIGNED TO ELIMINATE OR LESSEN WASTE ON MATERIALS HERE. AND ONE OF THE BEAUTY PART OF IT, IT ACTUALLY REDUCES THE AMOUNT OF NOISE POLLUTION FROM CONSTRUCTION HERE ON OUR SITE.

BECAUSE THIS IS ACTUALLY MANUFACTURED IN A CLOSED ENVIRONMENT AND THEN SHIPPED HERE AND THEN CONSTRUCTED.

SO REALLY INSTEAD OF HAVING A 20 LIKE FOR EXAMPLE, A NORMAL TYPICAL BUILDING FRAME WOULD BE SOMEWHERE IN THE NEIGHBORHOOD OF ROUGHLY ABOUT 20 MONTHS.

SO WE'D HAVE 20 MONTHS OF CONSTRUCTION GOING ON WITH NOISE, HAMMERS, YOU KNOW, WHATEVER.

ON THAT AND CAUSING A LOT OF DISRUPTIONS.

THIS ACTUALLY PROCESS ELIMINATES THAT WHERE IT'S A VERY SHORT PERIOD OF TIME, ROUGHLY ABOUT TWO WEEKS.

OBVIOUSLY THERE'S SOME STILL ELEMENTS THAT WE HAVE TO DO FOUNDATION WORK AND, AND, AND THINGS LIKE THAT.

BUT THE BULK OF THE CONSTRUCTION AND NOISE IS, IS HEAVILY REDUCED ON THAT AND REALLY IMPACTS THE ENVIRONMENT AROUND US ON THAT.

AND SO ONE OF THE KEY THINGS BY UTILIZING THIS METHOD IS AGAIN, THESE ARE ESTIMATES.

BUT WE WE BELIEVE WE CAN SAVE ROUGHLY SIX MONTHS OFF THE SCHEDULE BY MOVING INTO THIS, THIS METHOD OF CONSTRUCTION.

SO SO AS TIME IS ESSENTIAL, WE THINK THIS IS A VALUABLE PROCESS ON THAT.

AND GIVEN THE EXTENSIVE INTERVIEW AND INFORMATION REQUESTED THAT WE DID AND DUE DILIGENCE ON THAT.

COST PRICE WE FEEL CONFIDENT WITH WITH THE GROUP.

BUT WE'RE HAPPY TO ANSWER ANY ADDITIONAL QUESTIONS THAT YOU MAY HAVE.

AND AGAIN, LIKE I SAID, I HAVE REPRESENTATIVES HERE THAT WOULD BE HAPPY TO ADDRESS ANY ADDITIONAL QUESTIONS THE BOARD MAY HAVE.

I HAVE A COUPLE OF PRESIDENT.

YES, MADAM PRESIDENT.

CONGRATULATIONS ON YOUR SELECTION.

I THINK THE, THE ONE OF THE MAIN CONCERNS IN THE INDUSTRY WAS ACTUALLY JUST HAVING A CONVERSATION WITH ABOUT THIS TODAY IS AROUND THE KIND OF AS MUCH AS THERE'S A CERTAIN LEVEL OF MATURITY IN MODULAR CONSTRUCTION THERE'S A LOT OF HESITATION, I KNOW, IN THE DEVELOPMENT INDUSTRY RELATIVE TO WORKING WITH PARTICULAR SUPPLIERS AND THE MODULAR SUPPLIERS HAVING A CERTAIN AMOUNT OF RISK RELATIVE TO THEIR LONGEVITY.

RIGHT AFTER KATARA BLEW UP, EVERYBODY STARTED TO REALIZE THAT THIS IS A THERE'S A CERTAIN KIND OF RISKY PROPOSITION.

SO COMPARED TO, SAY, IF YOU'RE BUILDING A NORMAL STICK FRAME BUILDING AND YOU HAVE A WOOD CONTRACTOR THAT GOES OUT OF BUSINESS, YOU CAN FIND SOMEBODY ELSE TO DO THE SAME WORK.

IT'S NOT QUITE SO STRAIGHTFORWARD WITH MODULAR CONSTRUCTION.

SO JUST WANTED TO KNOW HOW WE WERE LOOKING AT THAT.

I UNDERSTAND THAT WE DON'T.

IT SOUNDS LIKE WE PROBABLY DON'T HAVE A SELECTED SUPPLIER JUST YET ON THAT.

SO THAT WOULD BE WOULD WOULD THE CHOP.

YOU DON'T HAVE TO KNOW EXACTLY WHAT THE DESIGN IS BEFORE YOU DESIGN IT.

SO I UNDERSTAND THAT, BUT I JUST WANTED TO KNOW WHAT OUR OUR THOUGHTS WERE RELATIVE.

YEAH. AND THAT WAS A RISK THAT WAS IDENTIFIED IN THE PROCESS.

WE WEREN'T SHY ON THAT.

BUT I WOULD WELCOME OUR PARTNERS ON THERE TO MAYBE EXPLAIN A LITTLE BIT THIS, BECAUSE OBVIOUSLY THEY GONE THROUGH THIS QUITE A BIT AND THEY CAN SHARE SOME OF THEIR EXPERIENCES.

SO IF.

[01:35:08]

SIR. YEP. HELLO, BOARD.

MY NAME IS MARK DONOHUE.

I AM WITH LOWNIE ARCHITECTURE.

MY BOSS WOULD KILL ME IF I DIDN'T SAY THAT.

WE ARE SPECIALISTS IN MODULAR ARCHITECTURE, AND WE'VE BEEN DOING IT ACTUALLY, FOR QUITE A LONG TIME.

WE'VE BUILT WELL, IN EXCESS OF 5000 MODULAR UNITS.

AND SO, FIRST OF ALL, I'M GOING TO SAY YOUR QUESTIONS ARE OUTSTANDING BECAUSE THOSE ARE THE SAME QUESTIONS THAT WE ASK ON EVERY PROJECT.

IS THE FACTORY VIABLE? IS THIS THE RIGHT DELIVERY METHOD? AND IT JUST SO HAPPENS FOR THE STUDENT HOUSING PROJECT AT CERRITOS COLLEGE.

THE ANSWER IS YES.

THE QUESTION OF THE FABRICATOR THAT WOULD BE SELECTED, THE.

YOU'RE ABSOLUTELY CORRECT.

KATARA REALLY PAINTED A TERRIBLE PICTURE OF WHAT CAN HAPPEN IF YOU RUN A FACTORY, A PREFABRICATION FACTORY, AS IF IT WERE A LIKE A TECHNOLOGY COMPANY.

AND THAT WAS REALLY THEIR SHTICK, IF YOU WILL.

AND SO WHAT WE TYPICALLY DO IS RELY MORE ON PARTNERS WHO SEE IT AS WE SEE IT, WHICH IS AN ALTERNATE CONSTRUCTION METHODOLOGY.

YOU'RE LOOKING AT PEOPLE WHO HAVE MORE OF A BACKGROUND IN CONSTRUCTION RATHER THAN PEOPLE WHO HAVE A BACKGROUND IN TECH.

WE'VE ACTUALLY WORKED WITH TWO COMPANIES THAT HAVE GONE BELLY UP THAT WERE BOTH BASED ON THE TECH MODEL, WHICH IS GROW, GROW, GROW.

INNOVATIVE PRODUCT.

THAT'S HOW THAT'S HOW YOU BEAT THE MARKET.

THE ONES THAT HAVE STAYED THE COURSE, THE ONES THAT HAVE BEEN ABLE TO MAKE IT THROUGH, WEATHERED THE STORMS. THESE ARE FACTORIES THAT ARE STARTED ON THE BASIS THAT ALL WE'RE REALLY DOING IS TAKING A PORTION OF THE CONSTRUCTION THAT YOU NORMALLY DO ON SITE, AND WE'RE MOVING IT INSIDE AND TAKING ADVANTAGE OF ALL THOSE THINGS THAT YOU CAN DO INSIDE ON A RAINY DAY IN A WAY THAT YOUR WORKERS ARE NOT HURT OR, YOU KNOW, REACHING FOR THINGS THAT ARE OUT OF REACH OR TRYING TO LIFT THINGS THAT ARE TOO HEAVY.

ALL OF THOSE THINGS CAN BE TAKEN CARE OF INSIDE.

THE BEAUTY OF THAT IS, IS THAT WHILE THE OTHER GUYS ARE OUT THERE IN THE RAIN WITH HARD HATS ON BUILDING THE FOUNDATION, THE SUPERSTRUCTURE CAN BE BUILT IN THE FACTORY.

AND SO WE'VE WORKED WITH PRETTY MUCH ALL OF THE MODULAR FACTORIES.

MAYBE NOT ALL OF THEM, BUT I'D SAY 20 OR 30 AT LEAST.

WE'VE DONE PROJECTS WITH WE'VE PROPOSED ON PROJECTS WITH AT LEAST THAT MANY MORE.

AND THERE ARE CERTAIN ONES THAT HAVE EMERGED AND THOSE ARE THE ONES THAT WE WOULD INVITE TO EXPRESS INTEREST IN THE PROJECT.

AND I THINK THAT YOU CAN LOOK AT THEM, THEY ARE STABLE.

THEY HAVE BEEN DOING IT FOR A WHILE, AND THOSE ARE THE PEOPLE WE WANT TO WORK WITH ANYWAY, BECAUSE I THINK THE WORST THING THAT YOU CAN DO WITH MODULAR IS WORK WITH PEOPLE WHO HAVE NEVER DONE IT. SO IF THERE ARE ANY OTHER TECHNICAL QUESTIONS ABOUT THAT, I'M HAPPY TO ANSWER IT.

WE WE'VE DEFINITELY ASKED A LOT OF THOSE SAME QUESTIONS.

THANK YOU. MY OTHER QUESTION IS LESS ABOUT MODULAR, BUT I APPRECIATE YOUR ANSWERS IS REALLY GOOD.

THE THE OTHER QUESTION I HAVE IS REALLY AROUND THE, THE PROCESS FOR HITTING OUR COST GOAL OUTSIDE OF THE MODULAR QUESTION, WHICH I THINK IS HELPFUL.

BUT AS WE LOOK AT A WORLD WHERE WE CAN'T WE CAN'T RAISE RENTS AS PER THE STATE, SO WE DON'T REALLY HAVE ANY FLEXIBILITY THAT, SAY, OTHER RESIDENTIAL PROJECTS MIGHT HAVE IN TERMS OF BEING ABLE TO PIVOT ONE WAY OR THE OTHER.

AND DEPEND ON KIND OF MARKET.

MARKET OPPORTUNITY IN THE FUTURE.

OUR OUR RENTS ARE EFFECTIVELY SET FROM THE DAY THAT WE START CONSTRUCTION.

SO, THAT BEING SAID DO WE HAVE A TARGET VALUE DESIGN METHODOLOGY OR HOW WHAT HOW ARE WE COORDINATING THE DESIGN PROCESS TO ENSURE THAT WE'RE GOING TO BE ABLE TO HIT OUR ESTIMATED COST TARGET? MY COLLEAGUE KEN IS GOING TO COME UP AND TALK MORE ABOUT THAT SIDE OF IT.

OH, AND THAT IT'S GOING TO BE BEAUTIFUL SOMEHOW.

ALSO AT THE SAME TIME. WE'LL COVER THAT.

GOOD EVENING. MEMBERS OF THE BOARD.

MY NAME IS KEN ONG.

I'M A DESIGN PRINCIPAL WITH WESTGROUP DESIGNS.

AND IN REGARDS TO PROJECT BUDGET AND MAKING SURE THAT WE STAY ON TARGET OR BETTER YET, IMPROVE ON THE TARGET THROUGH SOME OF THE EFFICIENCIES THAT WE'VE ALREADY IDENTIFIED WITH THE POTENTIAL CONSTRUCTION METHODOLOGY. WE HAVE WE BASICALLY PLAN THE WORK AND WORK THE PLAN AT EVERY PHASE, WE'LL BE DOING COST ESTIMATING

[01:40:09]

TO VALIDATE THE DESIGN AND ALSO POTENTIAL OPTIONS RELATED TO THE DESIGN SO THAT THE COLLEGE AND YOUR THE BOARD WILL BE ABLE TO GAUGE THAT WE'RE BEING GOOD STEWARDS WITH NOT ONLY YOUR FUNDS, BUT WHAT THE TARGETS ARE AND HOW WE'RE ACHIEVING THEM.

AND SO WE DO THAT WITH ALL OF OUR PROJECTS.

OUR FIRM MOST RECENTLY COMPLETED WORK FOR A NEIGHBORING COLLEGE COASTLINE COLLEGE AND THEIR NEW STUDENT SERVICES BUILDING. AND SO THAT IS AN APPROACH THAT WE UTILIZE FOR ALL OF OUR PROJECTS.

HAVE WE CONSIDERED IN THE PROCESS OF VICE PRESIDENT LOPEZ? I'M WONDERING IF WE BECAUSE IT SOUNDS LIKE WE'RE SETTING OURSELVES UP FOR A DESIGN BID BUILD, RIGHT AS A PROCESS.

SO DO WE HAVE A METHODOLOGY IN WHICH WE COULD BRING IN A BUILDER EARLIER ON IN THE PROCESS TO CONSULT ON COST AS A WAY OF ENSURING ALIGNMENT FROM AN EARLIER STAGE? NOT THAT I DON'T TRUST LIKE BEST PRACTICES, BUT AS A RETIRED ARCHITECT MYSELF, I KNOW THAT WE'RE WE'RE ARMCHAIR COST PROFESSIONALS SOMETIMES AS OPPOSED TO WE, YOU KNOW.

YEAH. SO WE WE DO HAVE SOME IDEAS OF BRINGING PARTNERS ON THIS PROJECT ON THAT.

YOU KNOW, FOR EXAMPLE, WE'RE OBVIOUSLY LOOKING TO HAVE A CM ON BOARD TO ASSIST IN THAT AS WELL, AND ALSO BRINGING A SPECIALIST ON THERE, SOMEONE LIKE A CERRITOS PERHAPS TO BE BROUGHT IN TO PROVIDE SOME OF THOSE FINE TUNING.

I KNOW THEY WERE PART OF THAT PROCESS AND HELPED US DEVELOP THE APPLICATION PROCESS ON THAT.

SO I'VE ALREADY ALREADY HAD SOME OF THOSE MEETINGS STARTING TALKING TO MAKE SURE WE HAVE INTEREST JUST TO LINE UP, JUST IN CASE. ONCE THIS GOES THROUGH, THEN THOSE WOULD BE SOME NEXT STEPS ON THAT.

BUT THOSE ARE SOME ITEMS THAT WE ARE TALKING ABOUT AS WELL.

AND I DON'T WANT TO REALLY MUDDY THIS UP TOO MUCH.

BUT, YOU KNOW AT THE LEAGUE CONFERENCE THAT I WAS JUST AT IN NOVEMBER, I WAS IN A HOUSING PRESENTATION ON SOMETHING THAT THAT JUST DAWNED ON ME WHEN I WAS IN THERE, AND WE'RE STILL GETTING CONFIRMATION TO MAKE SURE THIS IS TRUE.

THE STATEMENT THAT YOU MADE REGARDING OUR RENTS OR ARE SET AND, AND OBVIOUSLY WE HAVE TO COMPLY WITH THE LOW INCOME.

WITHIN L.A. COUNTY, BUT THAT'S ASSOCIATED WITH THE BEDS ASSOCIATED WITH THE STATE DOLLARS.

THIS PROJECT ALSO HAS LOCAL DOLLARS, SO THE BEDS ASSOCIATED WITH THE LOCAL DOLLARS ARE FREE OR OUTSIDE THAT LIMITATION. I APPRECIATE THAT I, I DO THINK WE THAT MIGHT TAKE A LOT OF CONSIDERATION AT GAME TIME BECAUSE BECAUSE IT'S KIND OF HARD TO CHARGE ONE STUDENT A CERTAIN AMOUNT AND THEN TURN AROUND TO THEIR ROOMMATE AND CHARGE A DIFFERENT AMOUNT, BUT I, I, I SENSE WHAT YOU'RE SAYING AND YEAH, IT'S VALUABLE.

THERE IS SOME OPTIONS OUT THERE DEPENDING ON THE DESIGN.

YOU KNOW, LIKE FOR EXAMPLE, WE COULD BE DOING THAT FOR MAYBE A ONE STUDIO BY THEMSELVES, YOU KNOW, CONSIDER THAT, YOU KNOW, THOSE TYPE OF THINGS.

BUT, YOU KNOW, WE STILL HAVE A LONG WAYS TO GO TO GET TO THAT POINT.

BUT JUST WANTED TO KIND TO BRING THAT TO THAT ATTENTION ON THAT, THAT THAT DOES PROVIDE SOME FLEXIBILITY.

NOT SAYING THAT THAT'S WHAT WE'RE GOING TO DO OR RECOMMEND DOING, BUT WE DO HAVE THAT ABILITY TO DO THAT.

THE OTHER THE OTHER THOUGHT I HAD IS YOU KNOW, I LOOKING AT THE, THE COMPANY PROFILE FOR WD REALLY IMPRESSIVE A LOT, A LOT OF REALLY NEAT PROJECTS, A LOT OF RESIDENTIAL EXPERIENCE AND EXPERIENCE WITH DIFFERENT INSTITUTIONS OF HIGHER EDUCATION, NOT A TON OF STUDENT HOUSING. ONE OF THE THERE IS SOME.

RIGHT, LIKE UC RIVERSIDE AND POMONA.

MY THOUGHT REALLY IS JUST AND THERE'S GOOD AND BAD PARTS TO THAT, RIGHT.

LIKE THE HARDER PART IS THERE'S LESS OF A, LIKE A WEALTH OF INSTITUTIONAL KNOWLEDGE COMPARED TO SOME OF THE COMPETITIVE FIRMS THAT YOU BEAT OUT.

GOOD JOB. THAT MAY THAT'S KIND OF THEY HAVE A WHOLE KIND OF DEDICATED PRACTICE, AND DOZENS AND DOZENS OF PEOPLE WORK ON THAT EVERY DAY.

BUT THAT BEING SAID, THERE'S I ALSO SEE AS AN OPPORTUNITY, RIGHT, BECAUSE WE'RE LOOKING AT STUDENT HOUSING FOR A DEMOGRAPHIC THAT ISN'T TRADITIONALLY AS DIRECTLY SERVED BY STUDENT HOUSING.

SO THINKING ABOUT HOW TO HAVE A HIGH IMPACT ENVIRONMENT FOR CERTAIN PEOPLE BEYOND JUST THE COST THING THAT I THINK WE ARE ALL SUPER SENSITIVE TO.

[01:45:08]

BUT THERE'S ALSO A LEVEL OF OPPORTUNITY LIKE THERE'S THAT'S A REGULATOR, BUT AT THE SAME TIME THERE'S THERE'S A LITTLE BIT OF BLUE SKY OPPORTUNITY, I THINK, WITH HOW WE SERVE THOSE STUDENTS IN A RESIDENTIAL ENVIRONMENT.

AND I JUST WANTED TO KNOW IF THERE WAS ALREADY SOME THOUGHT AROUND THAT OR JUST SOME KIND OF OTHER COMMENTARY THAT THAT OUR NEW ARCHITECTURAL PARTNERS MIGHT BE ABLE TO TO POINT OUT FOR US.

I THINK I WOULD ONLY ADD, I THINK THAT'S A LITTLE EARLY.

IT'S A GREAT QUESTION.

I DON'T THINK WE'VE GOTTEN TO, YOU KNOW, THAT FAR.

IN THAT I THINK THERE'S STILL A LOT OF LEG WORK TO DO ONCE BRINGING OUR, YOU KNOW, PARTNER ON TO START HAVING THAT, THOSE DIALOGS ON THAT.

BUT I DON'T I DON'T KNOW IF THEY HAVE ANYTHING ELSE TO ADD ON ON THAT.

YOU KNOW, I, I WOULD JUST SAY THAT OUR EXPERIENCE IN HOUSING INCLUDES SUPPORTIVE HOUSING AND AFFORDABLE HOUSING FOR COMMUNITIES THAT ARE IN NEED OF HELP.

AND SO THE PROGRAMING OF THOSE BUILDINGS IS VERY MUCH CENTERED ON POPULATIONS THAT ARE NOT CONVENTIONAL.

THEY ARE POPULATIONS THAT NEED A SPECIAL KIND OF INFRASTRUCTURE TO SUCCEED.

THEY NEED SUPPORT SPACES TO SUCCEED.

AND WE REALLY PRIDE OURSELVES ON DOING THAT SUCCESSFULLY.

WE'VE DONE A LOT OF HOSPITALITY, IN FACT, USING MODULAR, ALL OF THOSE FACTORS CONTRIBUTE TO SEEING THE RESIDENTS OF THE BUILDING AS ENTITIES THAT HAVE A CERTAIN SET OF NEEDS, CERTAIN DEMEANOR CERTAIN OUTLOOK THAT WE WOULD RESPOND TO. AND SO WE WOULD BRING ALL THAT EXPERIENCE TO BEAR.

IT'S TRUE THAT WE PROBABLY DON'T HAVE THE DEPTH OF EXPERIENCE THAT SOME OF THE OTHER PARTICIPANTS HAD, BUT I WOULD SAY THE BREADTH OF OUR EXPERIENCE IS WHAT WE WOULD BRING TO THE TABLE.

I'M DONE. ALL RIGHT.

ALL RIGHT, DOCTOR HAUSER.

YES. THANK YOU SO MUCH.

I HAVE A COUPLE OF QUESTIONS TO REALLY APPRECIATE THE PRESENTATION.

WHILE I AM VERY EXCITED ABOUT THIS, EVERYONE KNOWS I'M CAUTIOUSLY PESSIMISTIC ABOUT THIS JUST BECAUSE OF THE STATE.

SO. AND I'M SO SORRY PHILIPPE.

I AM STILL REALLY STRUGGLING WITH HOW WE'RE PAYING FOR THIS.

I'M SORRY I THE 60 IS 62 MILLION, RIGHT? ISN'T IT LIKE 18 MILLION FROM.

SO THE COST WAS 80, RIGHT.

SO THE WHOLE THE WHOLE PROJECT IS 80.

SO HOW THAT SPLIT IS ROUGHLY IT'S 67, 67,995,000 IS THE STATE FUNDED PORTION, 12 MILLION IS DISTRICT FUNDED PORTION SO ROUNDED IT'S $80 MILLION PROJECT BUDGET.

OKAY. SO AGAIN, WHEN WE APPLIED FOR IT, WE WERE LIKE, YES, STATE GIVE US MONEY.

AND THE STATE WAS GOING TO GIVE US $67 MILLION.

AND WE WERE LIKE, WOO, PERFECT, RIGHT? WE'RE GETTING A GREAT DEAL.

SO NOW HOW ARE WE GETTING THE $67 MILLION AGAIN? AND I KNOW BASED ON WHAT ANDREW PRESENTED, IT'S ALL UP IN THE AIR AND WE'RE FACING A $68 BILLION DEFICIT.

AND IT IS. AND I KNOW DOCTOR FIERRO IS GOING TO CHIME IN ON THIS AS WELL.

BUT I THINK AS I PRESENTED LAST TIME, YOU KNOW, WE HAD A PLAN BECAUSE BECAUSE OF THE SIGNIFICANT INVESTMENT THE DISTRICT WAS MAKING, THE BOARD CHOSE TO MAKE.

WE WERE MOVING FORWARD BECAUSE WE KNOW TIME IS ESSENTIAL THE LONGER WE WAIT, ESCALATION COSTS AND UTILIZING THAT $12 MILLION.

THAT'S WHAT WE WERE PUSHING FORWARD WITH THIS PROJECT, BECAUSE WE DID ANTICIPATE THAT THE STATE WOULD HAVE A PLAN.

BUT THE PLAN WOULDN'T NECESSARILY BE RELEASED UNTIL LITERALLY NEXT MONTH, WHEN THE GOVERNOR RELEASES THE THE JANUARY BUDGET PROPOSAL.

THAT'S GOING TO BE THE FIRST INDICATION OF WHAT THAT PLAN IS GOING TO LOOK.

YES. WE DON'T KNOW EXACTLY WHAT IT'S GOING TO BE IN THERE, BUT ALL OF OUR CONVERSATIONS HAVE POINTED TO THAT GOVERNOR'S BUDGET PROPOSAL ON THAT.

AND LIKE I MENTIONED BEFORE AT ANY TIME WHEN, YOU KNOW, IT IS MY GOAL TO INFORM THE BOARD ON THAT BUDGET AND IF THAT BUDGET CANNOT BE MET, WE'RE GOING TO BE HAVING THAT CONVERSATION ON THAT END AT ANY GIVEN TIME.

WE CAN BASICALLY SAY, YOU KNOW WHAT? THIS BUDGET IS JUST NOT GOING TO WORK.

WE'RE GOING TO CUT OUR LOSSES AND AND NOT, YOU KNOW, AND NOT PROCEED ON IT.

AND SO BUT YOU KNOW, BUT THAT INDICATION IS GOING TO BE IN JANUARY.

DOCTOR FIERRO, IF YOU HAD SOMETHING ELSE, DO YOU WANT TO ADD BEFORE DOCTOR FIERRO? BECAUSE I KNOW YOU CAN OR MAYBE, MAYBE YOU CAN EXPLAIN TO ME WHAT EXACTLY IS THE BOND LIKE?

[01:50:01]

ARE WE ISSUING BONDS? WE'RE NOT ISSUING BONDS.

LIKE, WHAT'S THE FINANCING BASE? BUT NOT LIKE, IN VERY COMPLICATED TERMS. YOU THREE. YOU WANT ME TO EXPLAIN BASIC TERMS LIKE I NEED TO UNDERSTAND.

AM I USING A CREDIT CARD OR AM I ISSUING? YOU KNOW, I'M TAKING A LOAN.

SOMEONE'S GOING TO PAY ME BACK. I NEED, LIKE, BASIC UNDERSTANDING, BECAUSE YOU GUYS STILL CONFUSE ME.

AND IT'S BEEN AT THE MOMENT WE'RE NOT ISSUING ANYTHING.

ZERO. SO SO LET'S LET'S TAKE A STEP BACK.

FIRST TIME WE APPLY AND THEY SAID THEY WERE GOING TO GIVE US MONEY.

WE SUBMIT THE APPLICATION, WE RANK FIRST.

AND THEY SAID, OH, SORRY, WE'RE NOT GOING TO GIVE YOU MONEY.

WE MAY OR MAY NOT PAY YOU.

RIGHT. THAT WAS THE FIRST ITERATION OF THIS.

WE WENT TO SACRAMENTO AND WE WERE SHOVEL READY AND THEY SAID, YES, WE WILL PAY YOU.

WE WILL GUARANTEE PAYMENTS.

THERE WILL BE TWO WAYS IN WHICH YOU COULD POTENTIALLY RECEIVE THESE PAYMENTS.

ONE, WE CAN GO TOGETHER AND COSIGN ALONE.

SO THE STATE AND THE DISTRICT MORE OR LESS WILL SIGN A LOAN FOR THE NEXT 30 YEARS, AND THE STATE WILL WRITE US A CHECK FOR THE TOTAL AMOUNT THAT IS DUE EVERY YEAR OF THAT PARTICULAR LOAN.

SO WE WOULDN'T HAVE TO PAY THE LOAN.

THE STATE WILL WRITE US A CHECK EVERY YEAR TO SAY HERE, THIS IS THE AMOUNT OF MONEY THAT WILL COST TO COVER THE LOAN THAT WE GOT TOGETHER.

THIS IS HOW YOU PAY IT FOR THE NEXT 30 YEARS.

WE SAID, OKAY, WELL, THAT SOUNDS PRETTY GOOD BECAUSE YOU'RE SAYING YOU'RE GOING TO PAY FOR IT.

BUT WE CONTINUE TO SAY WE WANT THE MONEY.

SO THEN THE STATE SAID, FINE, LET US SEE WHAT WE CAN DO.

SO THERE IS A TIMELINE THAT IS DUE AT THE END OF JANUARY, THAT SAYS FOR THOSE DISTRICTS THAT DO NOT WANT TO GO AND GET A LOAN, THERE MAY BE A SOLUTION IN WHICH THE STATE WILL GIVE YOU SOME MONEY.

THAT COULD HAPPEN IN A COUPLE OF DIFFERENT WAYS.

THEY CAN DIG INTO THE RESERVES AND SAY, HERE, CERRITOS COLLEGE $68 MILLION IT STOP COMING HERE.

WE'RE TIRED OF SEEING YOU.

OR THEY COULD SAY, LET'S ISSUE AN ESTATE BOND AND CASH THAT STAY BOND SO THE STATE GOES AND GET SOME SORT OF LOAN. AND THEY STILL WRITE US A CHECK FOR $68 MILLION AND DON'T COME BACK.

WHAT WE ARE TRYING TO DO WITH THIS IS NOT JUMP THE GUN AND GET A LOAN IN PARTNERSHIP WITH THE STATE, BECAUSE WE HAVE A SIZABLE APPORTIONMENT FROM THE DISTRICT.

WE WANT TO WAIT OUT THE STATE AND BEGIN OUR CONSTRUCTION PROCESS WITH THE DOLLARS THAT WE CAN CONTROL, WHICH IS THE $12 MILLION THAT THE BOARD, THE BOARD INITIALLY ALLOCATED.

THIS WILL GIVE THE STATE APPROXIMATELY A YEAR OR SO TO SORT OUT THEIR SOURCE OF MONEY TO GIVE TO US IN THE EVENT THE STATE SAID, YOU KNOW WHAT, WE'RE NOT GOING TO GIVE YOU MONEY IF YOU WANT TO CONTINUE TO BUILD.

YOU NEED TO GO WITH US AND GET THIS LOAN.

WE NEED TO SIGN TOGETHER.

AT THAT POINT, IT'S A DECISION MAKING POINT IN WHICH WE COULD SAY WE STOP OR WE CONTINUE, BUT AT THAT POINT WE GO TO THE BANK TOGETHER.

WE GET A CREDIT CARD, A JOINT CREDIT CARD THAT I GET TO USE.

BUT YOU PAY FOR IT. OR I'LL SAY, HOW ABOUT THIS PAYS FOR IT? IT'S LIKE THIS. IT'S A LET'S USE A MORTGAGE ANALOGY.

RIGHT? SO SO IT'S BASICALLY SAYING, HEY, DO WE WANT TO DO A HOUSE? THIS IS LIKE A DREAMY SCENARIO.

HEY, I, I'M UNCLE NEWSOME, AND I'M GOING TO.

AND I'M GOING TO I'M GOING TO BUY YOU A HOUSE.

RIGHT? YOU'D BE LIKE, ALL IT'S IT'S THIS AREA.

SO $1 MILLION TO BUY A HOUSE, AND I GOT YOU.

AND THEN IT TURNS OUT I DON'T HAVE $1 MILLION RIGHT NOW.

SO WHAT WE COULD DO IS I'M.

I'M GOING TO I'M GOING TO YOU TAKE OUT A MORTGAGE AND I'LL COSIGN ON THE MORTGAGE, AND THEN I'LL DO ALL THE MORTGAGE PAYMENTS FOR YOU.

IT'S STILL ON YOUR BOOKS, BUT IT'S YOUR HOUSE AND YOU'RE LIABLE.

BUT I'M A PRETTY CONSISTENT RICH DADDY, SO I'M UNCLE, UNCLE, UNCLE, UNCLE.

SO AND SO AND SO I.

I'M, LIKE, SET UP AN AUTOPAY.

I GOT AN AUTOPAY ON YOUR MORTGAGE.

DON'T WORRY. WHAT HAPPENS IF YOU DIE IN THE THIS SITUATION? OR IF YOU JUST DECIDE NOT TO PAY? OR YOU GET INTO A FIGHT AND YOU'RE NOT GOING TO PAY.

SO THESE ARE THINGS THAT TYPICALLY ARE NOT GOING TO HAPPEN BECAUSE THE STATE IS REALLY NERVOUS ABOUT BEING A BAD BECAUSE IT'S A GOVERNMENT.

RIGHT. IT'S. YEAH.

SO BUT THAT BEING SAID TO DOCTOR FIERRO'S POINT, WE STILL A LITTLE LESS MAYBE THEY SHOULDN'T HAVE TOLD US THE BEST OPTION AT THE BEGINNING, BECAUSE NOW WE'RE LIKE, HOW ABOUT YOU STILL JUST PAY US THE MONEY?

[01:55:02]

AND SO UNCLE NEWSOM IS GOING BACK AND SAYING, WELL, EITHER I CAN PULL, MOVE SOME MONEY AROUND AND PULL SOME MONEY OUT TO PAY YOU, OR MAYBE I WILL GO OUT AND GET A LOAN ON SOMETHING ELSE.

GET A LOAN LIKE I NORMALLY DO, BECAUSE MOST STUFF AT THE STATE LEVEL IS ACTUALLY FINANCED THROUGH BOND MEASURES.

I'LL FIGURE OUT A WAY TO JUST GET YOU THE CASH.

YOUR 1 MILLION BUCKS.

BUT IF YOU WANT TO STILL GO DOWN TO THE BANK RIGHT NOW, WE CAN DO THE DO THE MORTGAGE.

OKAY, SO BASED ON THE BOARD'S ACTION THAT YOU WOULD LIKE FOR US TO TAKE TODAY, WHEN, WHEN? AND SO IT'S LIKE $6.7 MILLION, RIGHT? IS THAT WHAT THE DOLLAR AMOUNT WAS? I CAN'T SEEM TO LOG ON FOR, FOR THIS CONTRACT.

I THINK IT'S 3.7.

3.7. OKAY. I HAVE NO IDEA WHERE I GOT SIX.

OKAY, SO IT'S $3.7 MILLION, RIGHT? AND THEN WHEN WOULD WE START? WHEN WOULD WE START DOING THIS? WHEN? WHAT'S THE TIME FRAME FOR THIS.

AND THEN ONCE THEY COMPLETE THE ARCHITECTURAL DESIGN, HOW LONG IS THAT DESIGN GOOD WITH DSA.

SO LET ME LET ME GO THROUGH THIS BECAUSE I HAPPEN TO BRING THE, THE CALENDAR AND I'LL HAVE MY COLLEAGUES JUMP IN IF I MISSPOKE ON THAT.

OBVIOUSLY, YOU KNOW, IF THE BOARD APPROVES THIS YOU KNOW, WE PLAN TO HAVE KICKOFF MEETINGS IMMEDIATELY.

I DON'T KNOW IF WE CAN SQUEEZE ONE IN THIS WEEK OR NEXT WEEK, BUT DEFINITELY WOULD BE THE FIRST WEEKS IN, IN JANUARY ON THAT. SO THE PLAN WOULD WOULD BE IS OBVIOUSLY WE NEED TO GET THE USER GROUPS GOING ON THIS.

SO THEORETICALLY WE WOULD WANT TO TRY TO SUBMIT INTO DSA SUBMITTAL SOMETIME MID-YEAR, JUNE, JULY, AUGUST, RIGHT AROUND THAT TIME FRAME, DEPENDING ON HOW QUICKLY WE CAN ACTUALLY MOVE THAT, THAT PROCESS IN THERE IS, YOU KNOW, 6 TO 8 MONTHS, RIGHT? FIVE, SIX MONTHS, FIVE, SIX MONTHS NOW.

SO, YOU KNOW, IT REALLY DEPENDS ON THAT.

SO BASED ON THIS THE SCHEDULE WE'RE LOOKING TO REALLY COMMENCE POTENTIALLY CONSTRUCTION AND CONSTRUCTION IS IN A DIFFERENT WAY BECAUSE, AGAIN, YOU KNOW, WE'RE PROBABLY GOING TO BE PHASING THIS IN INCREMENTS SIMILAR TO WHAT WE DID IN THE SASSA PROJECT.

WE STARTED THE SOILS WORK ALONG WITH BEFORE DSA ACTUALLY APPROVED THE PROJECT.

SO WE WOULD ACTUALLY LIKELY COMMENCE CONSTRUCTION SOMETIME IN HOPEFULLY IN ABOUT A YEAR OR SHORTLY AFTER THAT. THAT WOULD BEGIN A LOT OF THE SOILS PREP AND THINGS OF THAT SORT.

AND SO WE CAN KIND OF GET INTO THAT, THE SITE GRADING UTILITIES, ALL THAT, THAT WOULD BE INCREMENT ONE.

OBVIOUSLY INCREMENT TWO WILL BE IN THE BUILDING ITSELF.

AND SO, SO CONSTRUCTION COULD COMMENCE SOMETIME AROUND NOVEMBER DECEMBER, JANUARY TIME FRAME ON THAT.

AND SO WE'RE LOOKING ROUGHLY YOU KNOW, IN COMPARISON OF THE TYPICAL STICK FRAME, YOU'RE LOOKING AT ROUGHLY 20 MONTHS OF, OF CONSTRUCTION UTILIZING THIS, THE MODULAR METHOD.

WE THINK WE CAN GET THAT DOWN TO ROUGHLY ABOUT 13 MONTHS A CONSTRUCTION BECAUSE AS AS WHAT WAS SAID IS AS IT'S BEING CONSTRUCTED OFF SITE, THERE'S OTHER THINGS WE CAN BE DOING AT THE SAME TIME TO HELP SPEED UP THAT PROCESS ON THAT.

SO WITH THE ESTIMATED, IF ALL THINGS ALL WORK OUT WE'RE LOOKING MAYBE OCCUPANCY SUMMER OF 2026.

OKAY, SO THEN MY OTHER QUESTION IS THIS SAY THIS ALL FALLS THROUGH.

WE HAVE NO MONEY. WE CAN'T DO IT.

SAY SORRY. WE HAVE THIS WONDERFUL, BEAUTIFULLY DESIGNED HOUSING.

HOW LONG DOES THAT DESIGN REALLY GOOD FOR BEFORE EVERYTHING CHANGES AGAIN I WOULD ASK.

CONSTANTLY CHANGING FOR YEARS.

OKAY, SO THE WORST CASE SCENARIO IS WE DESIGN IT.

WE PAID FOR THE DESIGN OF A OF A BUILDING FOR FOUR YEARS.

YES. THAT'S WORST CASE SCENARIO.

OKAY. THE OTHER CONCERN I HAVE, WHICH I'VE RAISED NUMEROUS TIMES, IS THE COMMUNITY.

AGAIN, YOU KNOW, I KNOW WHERE THIS IS GOING TO BE LOCATED.

RIGHT. AND I AM JUST CONTINUED TO BE CONCERNED WITH A 400.

IS IT UNIT IS THAT WHAT WE'RE SAYING? 396 BEDS.

IT'S FOUR STORIES BEDS RIGHT? YES. HOW MANY UNITS? WELL, I DON'T KNOW.

WE GOT TO FIGURE THAT OUT BEING IN OUR COMMUNITY AND I UNDERSTAND, YOU KNOW, AS EDUCATION FACILITIES WE HAVE ALL THESE DIFFERENT THINGS, RIGHT.

THAT OTHER YOU KNOW, IF YOU WERE GOING TO BUILD A 400 BED BED HOUSING IN THE MIDDLE OF NORWALK, MIDDLE OF LAKEWOOD, MIDDLE

[02:00:09]

OF LA MIRADA, THAT WOULD NOT BE WELL RECEIVED BY ANY MEMBER OF OUR COMMUNITY BECAUSE OF TRAFFIC, NOISE, CONGESTION, YOU NAME IT.

AND SO I JUST I'M JUST A LITTLE BIT HESITANT ABOUT THAT.

BUT I FORGOT YOU MENTIONED THE USER GROUPS.

I WOULD HIGHLY SUGGEST WE DO A USER GROUP OF THE COMMUNITY BECAUSE I WOULD REALLY BE INTERESTED, YOU KNOW, AND AND GETTING THEIR FEEDBACK, LIKE WHAT ARE THEY GOING TO THINK WHEN THEY'RE AND AGAIN, I HAVE NO IDEA.

LIKE IS THIS LIKE A I SHOULD KNOW I KNOW WE TALKED ABOUT IT'S FOR STORIES FOR STORY.

OKAY. PRETTY BIG.

YOU KNOW ARE GOING TO BE CONCERNS.

I MEAN OBVIOUSLY THE TRAFFIC IS GOING TO BE IMPACTED ALONG STUDEBAKER.

166 ALONDRA I MEAN, THERE'S JUST A LOT OF THINGS THAT GO INTO IT PARKING WHERE ALL THESE STUDENTS GOING TO PARK, RIGHT? I MEAN, AGAIN, LIKE THESE ARE JUST LIKE, IF I'M A TOTAL NIMBY, RIGHT? WHICH I LOVE OUR COMMUNITY, BUT WE'VE GOT A LOT OF NIMBYS WHO LIVE IN THIS AREA, RIGHT? YOU KNOW, I MEAN, THOSE ARE THINGS THAT I WOULD BE VERY CONCERNED ABOUT.

SO AGAIN, LIKE, I WOULD HIGHLY, HIGHLY RECOMMEND THAT ONE OF YOUR USER GROUPS HAS TO BE THAT NEIGHBORHOOD RIGHT ACROSS THE STREET BECAUSE THEY'RE GOING TO NEED TO KNOW.

AND I AND I DON'T MEAN IT TO BE NEGATIVE, BUT I JUST THINK THAT WE SHOULD ADDRESS THOSE ISSUES BEFORE THEY BECOME AN ISSUE.

SO YEAH, AND WE'LL WE'LL BE REQUIRED TO DO AN ENVIRONMENTAL IMPACT REPORT ON THAT THAT SPECIFIES, YOU KNOW, THE THINGS EARLY OUTREACH.

YEAH. NOW OUTREACH NOT LIKE NOT LATER DOWN I'M TALKING LIKE YOU SAID, YOU'RE GOING TO DO A KICKOFF MEETING LIKE THIS SHOULD BE A KICKOFF MEETING COME JANUARY.

THIS SHOULD BE PART OF YOUR FIRST GROUP OF USER GROUP BECAUSE IT'S IT AGAIN LIKE I DON'T I MEAN THINGS LIKE THAT THAT THERE'S I LIVE IN LAKEWOOD.

YOU KNOW ANY ANYTHING THAT ANY SORT OF CONSTRUCTION, ANY SORT OF HOUSING PEOPLE FLIP HERE, I DON'T KNOW.

I MEAN, WE'LL DO OUTREACH TO THE COMMUNITY AND OBVIOUSLY WE WILL HOLD A COUPLE OF FORUMS. BUT BUT ONE OF THE THINGS TO KEEP IN MIND, THE TRAFFIC WHEN YOU DO A STUDENT HOUSING IS ACTUALLY ONE OF THE ONLY HOUSING PROJECTS THAT HAS A NEGATIVE IMPACT ON TRAFFIC, MEANING THAT YOU WILL SEE FEWER VEHICLES ENTERING AND LEAVING THE CAMPUS, AND YOU DO WHEN YOU HAVE A RESIDENTIAL COMMUNITY, BECAUSE ESSENTIALLY YOU ARE MINIMIZING THE TRAFFIC OF 396 POTENTIAL 396 STUDENTS IN ANOTHER CAMPUS.

SO ONCE THEY COME IN, THEY STAY IN AND THEY DON'T NECESSARILY LEAVE ALL AT THE SAME TIME AS THEY WOULD WHEN THEY COME TO CAMPUS.

THAT WILL BE THE FIRST ONE PARKING.

WE HAVE PLENTY OF PARKING ON C10 TO BE ABLE TO DO THIS, AND THEY WOULD ALREADY BE PARKING HERE ANYWAY AS STUDENTS. CORRECT.

SO IT'S JUST LEAVING THEIR CARS HERE AT NIGHT WHEN IT'S A LOW DEMAND TIME ANYWAY.

AND ON THE LAST PORTION OF THIS IS THE PART OF OR REASONING ON.

ADOPTING THIS METHOD IS BECAUSE IT HAS A FEWER NOISE AND TRAFFIC IMPACT ON THE COMMUNITY, MEANING THE BULK OF THE CONSTRUCTION WILL TAKE PLACE OUTSIDE OF THE CAMPUS AND THE ACTIVE CONTROL CONSTRUCTION TIME.

THAT IS BUSY TIME THAT WE COULD POTENTIALLY OBSERVE NOISE IN THE COMMUNITY IS BETWEEN 4 TO 6 WEEKS, WHICH IS WHEN THE ASSEMBLY IS TAKING PLACE.

SO WE ARE TRYING TO MINIMIZE ANY IMPACT THAT WE HAVE IN THE COMMUNITY DURING CONSTRUCTION TIME, DEBRIS THAT IS LEFT ON THE ROAD AND SO ON. SO, SO WE FULLY PLAN TO OBVIOUSLY HOLD THE FORUMS AND SO ON AND AND OBVIOUSLY WE ARE WE ARE VERY MUCH AWARE THAT THERE WILL BE SOME PUSHBACK.

BUT BUT WE'RE DOING EVERYTHING THAT WE CAN TO ENSURE THAT THE IMPACT IS MINIMUM AND THE TRAFFIC CONCERNS ARE ACTUALLY APPLAUSE RATHER THAN A MINUS.

USUALLY ON A STUDENT HOUSING.

I'D BE INTERESTED IN SEEING THAT DATA.

AND I THINK ALSO, WE HAVE A NEW CITY MANAGER IN THE CITY OF CERRITOS.

HE IS VERY ACTIVE. I WAS JUST AT A MEETING WITH HIM RIGHT BEFORE I CAME HERE.

I THINK WE NEED TO SET UP THAT MEETING WITH HIM TO AS AN INTRO, JUST TO MAKE SURE HE KNOWS WHAT'S GOING ON HERE, TOO.

SO OKAY, I THINK I'M GOOD FOR NOW, IF I MAY, MADAM PRESIDENT.

SO I ECHO A LOT OF SENTIMENTS THAT TRUSTEE PEREZ BROUGHT UP, BUT I ALSO WANT TO GET FURTHER CLARIFICATION WITH THAT.

WHERE DOES OUR $12 MILLION COMMITMENT COME FROM? IS THAT FROM BONDS? IS THAT FROM OUR GENERAL? THAT'S FROM OUR GENERAL OR GENERAL UNRESTRICTED DOLLARS? GENERAL UNRESTRICTED DOLLARS, WHICH WE SPENT THE LAST TIME WE DID A SIGNIFICANT INVESTMENT WAS THE $4 MILLION, ROUGHLY OF THE HOUSING. YES.

OVER THERE. YES.

IN NORWALK. RIGHT? YES.

AND WE'VE NEVER REALLY MADE ANY SIGNIFICANT INVESTMENTS SINCE THEN.

[02:05:02]

THAT'S CORRECT. OF GENERAL INVESTMENT.

SO, SO THAT'S A SIGNIFICANT AMOUNT.

THREE TIMES AS MUCH MATHEMATICALLY SPEAKING.

BUT SO, YOU KNOW, THAT GIVES US A LOT OF PAUSE, ESPECIALLY WHEN IT'S NOT FROM, YOU KNOW, A CERTAIN RESTRICTED ACCOUNT TO DO THAT.

SO, YOU KNOW, ONE OF MY QUESTIONS, FOLLOWING UP ON THE THINGS THAT WE'VE JUST DISCUSSED NOW, IS THAT IS THERE ANY CHANCE OF EITHER A DELAY OR CONTINUANCE OF SIGNING THIS CONTRACT AND BEGINNING TO SPEND THOSE DOLLARS, WHICH WILL GO VERY FAST PENDING THE PROPOSED JANUARY BUDGET FROM GOVERNOR NEWSOM, CONSIDERING THE $68 BILLION SHORTFALL.

SO THERE ARE A COUPLE OF THINGS THAT WE HAVE TO CONSIDER.

THE FIRST ONE IS THAT IN ORDER FOR US TO RUN THROUGH THE $12 MILLION, IT WILL TAKE WELL OVER A YEAR TO DO IT.

THE CONTRACT IS 3.8, AND BY THE TIME IT GETS TO DSA AND SO ON WILL BE AT THE END OF 2024.

CONSTRUCTION IN THE BEST CASE SCENARIO WILL NOT BEGIN UNTIL PROBABLY JANUARY OR FEBRUARY.

I WILL SAY BETWEEN DECEMBER AND FEBRUARY OF 25.

SO THE ACTUAL EXPENDITURES WILL NOT BEGIN TO RAMP UP UNTIL WE GET TO CONSTRUCTION TIME.

FOR THE MOST PART, WHEN WE DO SOILS AND SUBMISSIONS AND SO ON, WE PROBABLY WON'T GET TO THE $12 MILLION.

PLEASE CORRECT ME IF I'M WRONG.

THE FIRST COMPONENT. THE SECOND COMPONENT OF THAT IS A.

THE LONGER WE DELAYED OR CONSTRUCTION TIME, THE GREATER THE COST OF CONSTRUCTION WILL BE, BECAUSE ESCALATION COST IS GOING UP PRETTY QUICKLY. SO PART OF THE DELAY THAT WE EXPERIENCED WITH THE GOVERNOR ALMOST THREW US OUT OF SCHEDULE, NOT ONLY ON OUR TIMELINES, BUT ON THE COST.

IN FACT SOME OF OUR ESTIMATES WERE RUNNING ALREADY 12, $15 MILLION OVER, WHICH WILL OBVIOUSLY WILL HAVE LED TO A STOPPAGE ON THE ON THE PROJECT.

AND FROM THE TIME THE LAST ITEM IS FROM THE TIME THAT WE BEGAN THIS PROCESS, WE BEGAN EARMARKING.

THE MONEY IS STILL RESTRICTED ON THE GENERAL FUND, BUT WE HAVE MADE ALL OF OUR PROJECTIONS FOR THE DISTRICT AND ALL OF OUR PROJECTIONS IN OUR RESERVE ACCOUNTS KNOWINGLY, THAT THAT MONEY HAS BEEN COMMITTED.

SO WE WE WE HAVE NOT TOUCHED THE MONEY, BUT WE HAVE ALREADY PROJECTED EARMARKED TO ENSURE THAT THAT DOES NOT HAVE A NEGATIVE IMPACT ON THE OPERATION OF THE DISTRICT.

WHAT I WOULD POINT OUT ALSO BECAUSE WE DISCUSSED THIS AT SOME LENGTH AT AN EARLIER STAGE ABOUT WHETHER OR NOT TO PROCEED NOW INTO PROCURING THE ARCHITECT AND TEAM MEMBERS, WAS THAT TO YOUR POINT, 12 MILLION IS A IS A GOOD CHUNK OF MONEY.

IT'S NOT COMMITTED UP FRONT.

MOST OF THE ARCHITECTURAL WORK HAPPENS.

THE SPEND HAPPENS IN THE LATTER TWO STAGES CONSTRUCT CONSTRUCTION DOCUMENTS AND DESIGN DEVELOPMENT.

SO A LOT OF THOSE THAT EXPENDITURE THAT WE WOULD BE WE'RE PLANNING ON GETTING INVOICED FOR REALLY DOESN'T OCCUR UNTIL MUCH LATER ON NEXT YEAR AT BEST.

SO WHAT THAT MEANS IS THAT BEFORE THEY EVER START BURNING THOSE HOURS, WE'LL HAVE A GOOD IDEA OF WHETHER OR NOT THIS THING IS IS LIVE OR NOT.

AND WE CAN PULL THE PLUG EVEN ON MOST OF THE 12 MILLION BEFORE, BEFORE IT EVER GETS REALLY COMMITTED.

YEAH, AND THAT'S FINE AS LONG AS THERE'S A PULL THE PLUG CLAUSE, SO TO SPEAK, IN THERE, AND THAT THERE WON'T BE ANY AND THERE ALWAYS IS IN THE CONTRACT ON THAT. AND SO YEAH.

BECAUSE YOU KNOW WHO'S TO GUARANTEE, JUST AS YOU SAY, YOU KNOW, WITH ESCALATION COSTS, YOU KNOW, ARE WE GOING TO BE RESPONSIBLE AS A DISTRICT FOR COVERING ANY INFLATION OF THE COST BECAUSE THE STATE IS ONLY GOING TO GET 67.

ULTIMATELY, YES.

YOU KNOW AND SO THAT'S WHY WE'RE YEAH.

YEAH. SO SO, YOU KNOW, YOU WILL EVENTUALLY HAVE TO MAKE ANOTHER ALLOCATION, I GUARANTEE YOU THAT WE'RE GOING TO MAKE ANOTHER ALLOCATION WHETHER IT'S 1 MILLION, 2 MILLION OR GOD FORBID, MORE.

YEAH. IN THERE BECAUSE, YOU KNOW, IF THE ARCHITECTS ARE IN THE ROOM.

YEAH. BUT, YOU KNOW, WE PLAN TO LEASE, PROVIDE QUARTERLY UPDATES AT A MINIMUM TO THE BOARD ON BUDGET WHERE WE'RE AT ON THE PROCESS.

SO YOU WILL BE FULLY AWARE OF WHERE TO DEEP INTO THE RABBIT HOLE.

THEN WE WOULD HAVE NO CHOICE BUT TO ALLOCATE AGAIN.

AGAIN, THAT'S OUR THAT'S OUR CHOICE.

THE BREAKING POINT WHERE WE CAN END IT IS ALL THE WAY UP TO BIDDING THIS, THIS THING OUT.

RIGHT. AND SO BECAUSE AGAIN, THOSE BIDS NEED TO COME BACK TO THE BOARD AND THEN WE WOULD KNOW WHAT THE TOTAL FINAL COST IS BASED ON, ON THE BIDS, SIMILAR TO WHAT WE JUST RELEASED WITH SSA OF WHAT THOSE BID PROCESSES.

SO THERE'S MULTIPLE STEPS IN THE PROCESS WHERE THAT ANALYSIS COULD BE MADE.

[02:10:02]

AND THAT DETERMINATION CAN BE MADE WELL IN ADVANCE.

IF, YOU KNOW, IF WE'RE GETTING WAY FAR OUT OF WHACK ON THE BUDGET AND STUFF LIKE THAT, YOU HAVE A BUNCH OF THINGS IN PLACE TO THIS POINT.

TRUSTEE LEWIS.

THAT WAS THE CONVERSATION ABOUT GETTING A THE GENERAL CONTRACTOR ON EARLIER SO THAT THEY CAN BE COMMITTED TO CERTAIN COST EXPECTATIONS EARLY.

THEN WE ALSO HAVE A GUARANTEED MAXIMUM PRICE AGREEMENT THAT HAPPENS BEFORE CONSTRUCTION BEGINS.

AND THEN WE HAVE REALLY GREAT OWNERS REPS THAT ARE GOING TO BASICALLY BE AUDITING EVERYTHING THEY DO TO ENSURE THAT THINGS DON'T GO OFF TRACK AND WE END UP HAVING TO FUND THAT IN THE END.

AND THAT'S ALL IN ADDITION TO THE FACT THAT WE BUILT IN AN ESCALATION COST AMOUNT CONTINGENCY INTO THE BUDGET.

SO LIKE THE $80 MILLION PROJECT, IF WE COULD SNAP OUR FINGERS AND HAVE IT BE BUILT TODAY IS ACTUALLY SIGNIFICANTLY LESS THAN THAT.

BUT IT INCLUDES A KIND OF THE WIGGLE ROOM THAT WE EXPECT TO HAVE TO EAT UP FOR THAT ESCALATION.

BUT IN TERMS OF BEING PRICE GOUGED, THAT'S WHY WE HAVE AN OWNER'S REP.

OKAY. SO IF SOMETHING HAPPENS, LIKE IT DID ABOUT TWO YEARS AGO, WHERE IT WAS LIKE 154% INCREASE IN THE PRICE OF STEEL OR THE PRICE OF WOOD OR SOMETHING.

THEN THERE MIGHT BE SOME KIND OF ALLOCATION, WHICH IS NOT OUT OF THE QUESTION.

OF COURSE. BUT, YOU KNOW, I UNDERSTAND THAT $80 MILLION IS NOT EXACTLY WHAT IT'S NOT WHAT IT IS TODAY.

BUT, YOU KNOW, MORE OFTEN THAN NOT, GOVERNMENT PROJECTS RUN OVER BUDGET, YOU KNOW, SO MY LAST CONCERN BEFORE I TURN THE MIC BACK OVER TO THE PRESIDENT IS THAT OURS DON'T THOUGH.

RIGHT. WE HAVE GOOD, GOOD OWNERS REP TRACK RECORD FOR BEING UNDER BUDGET.

OKAY. YEAH, YEAH, THEY TYPICALLY DON'T.

BUT FOR SOMETHING WHERE IT COMES FROM THE STATE, THIS IS GOING TO BE EVENTUALLY A STATE PROJECT.

ANYWAY, POINT BEING IF THE PROPOSED BUDGET FROM GOVERNOR NEWSOM SAYS, WE'RE NOT GOING TO FUND STUDENT HOUSING THIS YEAR, IS THERE A CLAUSE IN THIS RETAINER AGREEMENT THAT WE HAVE THAT WE CAN JUST DELAY IT OFF AND, YOU KNOW, HAVE THOSE PROJECTS TO START THE TOLLING OF THE FOUR YEAR TIME FOR DSA APPROVAL LATER IN THE YEAR THAT WE EVENTUALLY, YOU KNOW, SO THAT WE CAN BASICALLY INVEST THE TIME THAT WE'RE DOING NOW IF WE DON'T HAVE IT BE BUILT ON THE SUMMER 2026 OCCUPANCY PLAN AND EVENTUALLY GOES TO 2027 OR EVEN 2028, THAT, YOU KNOW THERE'S STILL THE PROCESS TO START.

THAT FOUR YEAR TOLLING WILL HAPPEN LATER IN ACCORDANCE WITH ONCE WE GET FUNDING FROM THE STATE.

DO YOU GET WHAT I'M SAYING? CAN WE DELAY? YES.

YES, YEAH. TECHNICALLY, YES YOU CAN.

AND I THINK THE CLARIFYING PIECE HERE IS.

THE MONEY, THE COMMITMENT OF THE MONEY HAS BEEN ALREADY MADE.

HOW THEY ARE GOING TO GIVE US THE MONEY IS WHAT WE ARE WORKING ON RIGHT NOW.

SO I GUESS THE QUESTION AT THAT POINT, IF THE GOVERNOR, IF UNCLE NEWSOM COMES AND SAID, YOU KNOW, I'M DEFINITELY NOT GOING TO GIVE YOU THAT MILLION DOLLARS, LIKE, LET'S GO ON, COSIGN THE LOAN.

AT THAT POINT, WE CAN DECIDE WHETHER WE WANT TO COSIGN A LOAN THAT THEY WILL PAY THE THE MORTGAGE FOR.

OR WE SAY, YOU KNOW WHAT, WE'RE NOT GOING TO DO THE PROJECT.

SO, SO, SO WE KIND OF STOPPED.

YES. AT ANY TIME WE CAN DELAY.

YES AT ANY TIME.

BUT I THINK THE DECISION POINT WILL BE AT THE END OF THE FIRST DECISION POINT WILL BE AT THE END OF FEBRUARY JANUARY, I THINK WHEN WE LEARN IF THEY'RE GOING TO GIVE US THE CASH OR IF THEY'RE GOING TO SAY WE WILL COSIGN A LOAN WITH YOU.

YEAH, BUT OKAY.

GO AHEAD. TRUSTEE LEWIS I THINK TO GET TO YOUR POINT WHERE I THINK WHAT YOU'RE ASKING IS, DOES THE CURRENT CONTRACT ALLOW US THAT TYPE OF FLEXIBILITY OF DELAYING? MY ANSWER WOULD BE LIKELY NOT, YOU KNOW, BECAUSE OBVIOUSLY THEIR CONTRACT BID WAS BASED ON A PREDICATED SCHEDULE OF WHAT THEY ANTICIPATED.

WE WOULD HAVE TO HAVE THOSE DIALOGS WITH THAT, WITH, WITH WITH THEM TO SEE WHERE THEIR, THEIR, THEIR AT.

BECAUSE I WOULD IMAGINE THEY'RE NOT GOING TO HOLD FIRM THEIR COSTS AND SAY, WE'LL GIVE YOU THAT SAME RATE FOUR YEARS FROM NOW IF WE STARTED FOUR YEARS FROM NOW. SO OBVIOUSLY, YOU KNOW, WE WOULD HAVE TO TAKE THAT INTO CONSIDERATION.

BUT I THINK WHETHER OR NOT THERE'S A NO NO GO, WE'RE GOING TO KNOW THAT REALLY QUICK COME JANUARY.

BECAUSE AGAIN, IF THE STATE JUST ALL OF A SUDDEN REVERSES THEIR PACE AND SAID, YOU KNOW WHAT, WE'RE NOT GOING TO BE ABLE TO FUND

[02:15:06]

THIS, THAT WE WILL GO, YOU KNOW, YOU'RE GOING TO HAVE TO FINANCE YOURSELF.

OBVIOUSLY, WE'RE GOING TO HAVE TO HAVE A SERIOUS CONVERSATION COME JANUARY TO SEE WHETHER OR NOT WE'RE REALLY PROCEEDING WITH THIS PROJECT.

OKAY. LAST BONUS QUESTION.

COSIGNING ALONE, DOES THAT MAKE US JOINTLY AND SEVERALLY LIABLE FOR THE FULL DOLLAR AMOUNT? I, I DON'T KNOW THAT.

AND I DON'T KNOW WHETHER OR NOT IT'S ACTUALLY A COSIGNING.

I THINK MY UNDERSTANDING IS WE WOULD ACTUALLY SELF-FINANCE IT, OBVIOUSLY, WITH THE STATE AGREEMENT OF SAYING WE'RE GOING TO PAY YOU BACK.

SO, YOU KNOW, WE'RE WE WOULD BE OBLIGATED LEGALLY TO PAY THAT OBLIGATION ON THAT.

AND SO THE STATE OF CALIFORNIA HAS GIVEN IOUS FOR ABOUT TEN YEARS BEFORE THEY ACTUALLY PAID IT.

IS THAT RIGHT? THEY'VE I THINK IT WAS LESS, YOU KNOW, BUT AGAIN YEAH, WE'LL GET TO THAT BRIDGE IN THE RUBICON IF WE HAVE TO CROSS IT IN JANUARY.

BUT I JUST WANTED TO VOICE THAT CONCERN SINCE THAT'S BEEN BROUGHT UP A FEW TIMES AS AN OPTION TO DO, WHICH I'M VERY RELUCTANT, BUT WE'LL FOR SURE KNOW WHETHER OR NOT WE'RE GOING DOWN THAT PATH COME JANUARY.

FAIR ENOUGH. I MEAN, THAT IS WHY WE'RE STALLING, RIGHT? BECAUSE WE'RE LIKE, HEY, WE'D RATHER HAVE THE THE MILLION DOLLARS, OF COURSE.

TRUE. RIGHT. AND THAT'S WHY WE CHOSE NOT TO GO SELF-FINANCE IT EARLY ON, BECAUSE, AS THE STATE SAID, THEY GAVE US THE ABILITY TO DO THAT.

AND SO WE'RE HOPING THAT THE STATE WILL COME UP WITH A MECHANISM.

SO WE DO NOT HAVE TO DO THAT.

OBVIOUSLY, THAT IS OUR PREFERENCE.

OKAY. SO I THINK AT THIS POINT I'M PROBABLY NOT GOING TO BE VOTING FOR THIS.

BECAUSE I, I REALLY THINK WELL, NOT JUST THE WHOLE PROJECT, JUST IN GENERAL.

YES. FOR THIS ITEM, I WILL PROBABLY BE A NO ON THIS JUST BECAUSE I DO FEEL WE SHOULD WAIT FOR ANOTHER MONTH.

I THINK WE SHOULD WAIT AT LEAST UNTIL THE GOVERNOR PROPOSES HIS BUDGET, I THINK, YES, IT WOULD BE A NICE GIFT IF HE SAYS, I'M GOING TO CONTINUE STUDENT HOUSING AND CONTINUE FUNDING. BUT I JUST THINK RIGHT NOW, AND I APPRECIATE ALL THE DISCUSSIONS.

AND I KNOW IT'S NOT A SURPRISE.

BUT I JUST DON'T I HAVE NO TRUST IN THE STATE, AND I'VE WORKED IN GOVERNMENT MY ENTIRE LIFE, SO THAT WILL TELL YOU.

BUT, YOU KNOW, MY LEVEL OF COMFORT IS I JUST I'VE SEEN IT BEFORE.

I'VE SEEN IT ON IN MY WORK THAT, YOU KNOW, THE STATE SAYS, YES, I'M GOING TO PAY YOU AND THEN WE DON'T.

AND I JUST PERSONALLY CAN'T DO IT RIGHT NOW.

I'M OPEN TO NOT VOTING.

NO. IF WE WANT TO DELAY THIS TILL THE JANUARY BOARD MEETING, WHENEVER THAT IS.

I DON'T EVEN KNOW WHAT THE DATE IS.

AND AFTER THE GOVERNOR PROPOSES HIS BUDGET, IT'S JANUARY 24TH.

IS OUR NEXT MEETING ON THAT.

ON THAT NOTE, MY MAY I KIND OF INQUIRE WHAT THE WORK PLAN IS RELATIVE TO NOW IN JANUARY 24TH? BECAUSE CERTAINLY I THINK WE'RE GOING TO PROBABLY SPEAK FOR EVERYBODY.

IT WOULD BE HELPFUL TO HAVE AN UPDATE ON JANUARY 24TH AS TO WHERE ALL THIS LANDS.

BUT THAT BEING SAID JUST HAVING WORKED ON PROJECTS BEFORE, I'M NOT EXACTLY SURE HOW MANY HOURS ARE GOING TO BE BURNED BETWEEN NOW ON THE 24TH WITH, ESPECIALLY WITH THE HOLIDAY, BUT I THINK IT'S A VALID CONCERN.

YEAH. SO WE PLAN TO OBVIOUSLY BEGIN WITH A KICK OFF MEETING WITH THAT, AS WE START ORGANIZING THE AND START GETTING INTO KIND OF THE DESIGN THINGS I DON'T KNOW IF I, I'M PUTTING ON THE SPOT.

I DON'T KNOW IF WE PENCILED OUT EXACT MEETING DATES ALREADY OR HOW MUCH TO START.

AS SOON AS YOU ARE READY, YOU CAN START.

YEAH. SO THE INITIAL PLAN IS BECAUSE TIME IS ESSENTIAL.

WE WANTED TO GET THIS THING OFF AND GOING AS, AS QUICKLY AS, AS AS POSSIBLE ON THAT.

AND SO BUT OBVIOUSLY KNOWING THAT THE GOVERNOR'S JANUARY BUDGET, WE YOU KNOW, THE BUDGET WILL BE KNOWN PRIOR TO THAT, THAT MEETING. SO WE DEFINITELY COULD PROVIDE AN ADDITIONAL UPDATE.

THAT MEETING SPECIFICALLY ON STUDENT HOUSING AND THE GOVERNOR'S BUDGET 20.

OKAY. THE 24TH 20.

YEAH, JANUARY 24TH. SO IT'S A BIG DAY.

THE BUDGET AND OUR BOARD MEETING OKAY.

NO, NO, NO, THE GOVERNOR'S BUDGET WILL BE BEFORE THAT.

OH, WHAT DAY IS THE GOVERNOR'S.

SO THE WE'RE ACTUALLY HAVING A WORKSHOP TYPICALLY.

NO. SO THE THE BUDGET, WE'RE PAYING ATTENTION.

WE SWEAR I WAS I JUST DIDN'T WRITE DOWN THE DATE.

SO SO THERE IS A BUDGET WORKSHOP ALREADY SCHEDULED IN THE BOOKS, I BELIEVE THE IT'S THE 17TH IS THE GOVERNOR'S BUDGET PROPOSAL WORKSHOP IN SACRAMENTO ON THE 17TH SO THAT I WILL BE ATTENDING.

SO WE'LL KNOW THAT MEANS THE GOVERNOR TYPICALLY WILL RELEASE THAT EITHER THE FRIDAY BEFORE OR THE MONDAY.

AND SO SO WE WE WILL KNOW WE'LL AT LEAST HAVE IT IN OUR HANDS AT LEAST A WEEK BEFORE THE BOARD MEETING.

[02:20:07]

I WOULD SUGGEST MAYBE WE HAVE.

I MEAN, IT'S THIS IS A $3.5 MILLION CONTRACT, RIGHT.

SO HOW MUCH IS REALLY GOING TO BE SPENT BETWEEN NOW? AND EVEN IF YOU HAVE YOUR KICKOFF BETWEEN NOW AND THE 24TH? WHAT I'M THINKING IS LIKE, IF WE NEED TO CANCEL THE CONTRACT BECAUSE ALL HELL BROKE LOOSE.

I WOULD AGREE THAT I'D WANT TO BE ABLE TO DO THAT.

BUT I ALSO DON'T WANT THIS WHOLE PROJECT TO SIT IN LIMBO EITHER, ESPECIALLY BECAUSE YOU'VE SPENT A LOT OF TIME AND ENERGY AND THE TEAM HAS SPENT A LOT OF TIME AND ENERGY GETTING TO THIS POINT IN THE PROCESS.

THE OTHER THING, AND I DON'T WANT TO I'M GLAD MARK LOGAN IS HERE.

WE MISSED YOU. I DON'T WANT TO.

I HAVE NEVER SEEN YOU ANYMORE.

I MISSED THE DIALOG.

I DON'T I DON'T WANT TO PROVIDE FALSE EXPECTATIONS.

IS THAT, WELL, WE MAY KNOW SOMETHING BY JANUARY 24TH.

THAT DOESN'T MEAN IT'S GAME OVER.

GAME OVER IS JUNE 30TH BECAUSE THIS WILL BE NEGOTIATED THROUGH THE ENTIRE BUDGET PROCESS.

SO. SO EVEN IF WE WAIT TO MAKE A DECISION IN JANUARY, THAT DECISION WILL NOT STAND UNTIL JUNE 30TH. SO CHANCES ARE THAT WE WILL SEE A WISHY WASHY PROPOSAL BY THE TIME WE GET TO THE 24TH, AND WHATEVER NUMBERS ARE GOING TO TRULY BE FIRMED UP WILL NOT HAPPEN UNTIL THE MAY ARE REVISED AND THEY WILL NOT BE FINAL UNTIL JUNE 30TH.

WE NEED TO REMEMBER THAT THIS IS A TWO YEAR LEGISLATIVE SESSION, AND THIS IS NOT GOING TO STOP UNTIL THE 30TH.

NO. SO I DON'T WANT US TO THINK THAT IF WE DELAY TO THE 24TH, WE WILL HAVE A DEFINITE ANSWER, BECAUSE EVEN IF THEY SAY YES ON THE 24TH, IT COULD BE NO ON THE 27TH. YOU KNOW, AND I APPRECIATE THAT.

SO REALLY THE QUESTION IS THE QUESTION IS A LITTLE BIT ABOUT JANUARY 24TH.

BUT MAYBE THE QUESTION FOR MARK IS REALLY WHAT IS THE LEVEL OF EXPENDITURE ANTICIPATED FOR THIS PROJECT CURRENTLY BETWEEN NOW AND THE END OF JUNE? AND AGAIN, I WAS JUST SPEAKING WITH MY COLLEAGUES BEHIND ME, YOU KNOW, AT MOST AT RISK ROUGHLY BETWEEN THAT TIME WE'RE AT THE MOST IS ROUGHLY ABOUT MAYBE 25 TO 30,000 IS PROBABLY THE MAN HOURS THAT WOULD BE UTILIZED BETWEEN FOR FOR JANUARY, FOR THE MONTH OF JANUARY, FOR BY JUNE PROBABLY WOULD BE CLOSE TO 60% OF THE BUDGET.

BECAUSE IF YOU ARE GOING TO THE GSA BY JULY, ARGUES THAT THE CONSTRUCTION DOCUMENTS FINISH REMAINING READING AND THE STATE.

SO YOU BE ABOUT A MILLION AND A HALF BY JUNE 30TH 1.7.

ONE AND A HALF. ONE.

I DON'T KNOW EXACTLY, BUT LAST TIME.

WAIT, WHAT? LESS THAN 2 MILLION.

2 MILLION? SO 2 MILLION? YEAH. SO THAT'S HOW MUCH WE WOULD RISK FOR THE ENTIRETY OF THE PROJECT.

BECAUSE IS IT JUST ARCHITECTURAL SERVICES THAT WE'D BE SPENDING MONEY ON THE SAPS? WE ALSO WOULD BRING THE CONSULTING TEAM.

WE IN ORDER TO ADVANCE THE PROJECT, WE WOULD NEED TO HAVE THE ENTIRE CONSULTANT TEAM.

YEAH. SO WE'D BE LOOKING AT SOILS SPECIALISTS, THINGS OF THAT SORT.

OBVIOUSLY OUR CCM ON THERE ARE YOU KNOW, SOMEONE LIKE A SERVETUS ON THERE.

SO WE, WE WOULD BE BURNING ADDITIONAL ADDITIONAL RESOURCES.

SO WE IN THE BALLPARK OF $3 MILLION.

TWO AND A HALF. I HATE I DON'T WANT, YOU KNOW, WITHOUT LOOKING AT IT ON PAPER.

YOU KNOW, IT'S A FAIR QUESTION THAT TRUSTEE PEREZ IS PUTTING ON THE TABLE, WHICH IS, HEY, SINCE WE DON'T GET TO DECIDE WHETHER OR NOT WE GET FUNDED TO DO THIS PROJECT, WHAT IS THE LEVEL OF RISK? NOW, I STILL AGREE THAT IF THERE'S $2 MILLION THAT WE HAVE SOME LEVEL OF RISK IN THIS CASE.

BUT I ALSO UNDERSTAND THAT GIVEN A 3 TO 4 YEAR PROJECT LIKE THAT ON AN $80 MILLION PROJECT, THAT IS A VERY SMALL AMOUNT IN TERMS OF WHAT THE EFFECT OF ESCALATION COULD BE.

SO WE'RE LIKE, WE'RE PUTTING $2 MILLION AT RISK IN AS A KIND OF MATHEMATICAL DECISION TO NOT HAVE 2 TO 4 TO

[02:25:03]

$8 MILLION OF EXCESS EXPENDITURE.

IN THE END, BECAUSE WE WAITED AND WE MAKE THAT $2 MILLION RISK ON JANUARY 24TH.

AGAIN, I DON'T WANT TO CREATE FALSE EXPECTATIONS.

I UNDERSTAND THAT YOU KNOW WHAT THE GOVERNOR SAYS AND WHAT THE LEGISLATURE DOES.

I UNDERSTAND, YOU KNOW, THE SEPARATION OF POWERS AND ALL THAT.

BUT WHAT I'M TRYING TO SAY IS THAT, YOU KNOW, WILL WE HAVE WE AND WE WILL PROBABLY HAVE A BETTER IDEA OF WHERE THE WINDS ARE HEADED ON JANUARY 24TH, BASED ON THE GOVERNOR'S PROPOSAL, WHETHER HE SAYS YES AND IT TURNS INTO A NO OR A NO, THAT TURNS INTO A YES, WE WILL HAVE A PROPOSAL LIKELY BY THEN, BUT RIGHT.

IT WILL NOT BE FINAL UNTIL JUNE 30TH.

SO WHATEVER DECISION WE MAKE THAT DAY COULD NOT BE ALIGNED WITH WHAT ENDED UP HAPPENING IN JUNE 30TH. EACH MONTH.

EACH MONTH DELAY APPROXIMATELY ZERO 5% CONSTRUCTION COST.

I MEAN, IT DEPENDS ON THAT, BUT IT'S STILL THE THE CONTRACT THAT WE'RE BEING GIVEN TODAY IS APPROXIMATELY $80 MILLION.

SO IF WE DELAY BY THAT ONE MONTH, ARE YOU SAYING THAT YOUR CONTRACT IS GOING TO INCREASE BY 0.5? NO. HE'S SAYING CONSTRUCTION.

YEAH, YEAH. CONSTRUCTION COSTS.

BUT, YOU KNOW, $80 MILLION IS WHAT WE'RE GIVEN AT THE CAP.

SO, YOU KNOW, ARE YOU SAYING THAT IT COULD GO OVER? COULD IT GO UNDER. IS IT DEFINITELY GOING TO BE UNDER.

RIGHT. AND AGAIN IT'S JUST A RISK.

YEAH. BUT IT COULD BE $2 MILLION.

WE COULD SAVE MONEY. WE COULD NOT.

BUT YOU KNOW, WELL, I'M JUST SAYING THAT IT MIGHT BE A BETTER IDEA TO.

WE WILL DEFINITELY LOSE MONEY IF WE WAIT, BUT WE HAVE A CHANCE OF PUTTING MONEY AT RISK IF WE DON'T WAIT.

SO WE COULD SAVE A LOT MORE MONEY.

IF WE DON'T ACT NOW, WE WOULD BE SPENDING MONEY THAT WE MAY NOT GET REIMBURSED WITH THE STATE IF IF THEY PULL THE PLUG ON THIS, IF WE WAIT SIX MONTHS, WE WILL DEFINITELY SPEND MILLIONS OF DOLLARS MORE ON THIS PROJECT.

IF WE DECIDE TO GO THROUGH WITH IT AT ALL, SURE WE COULD.

WE COULD DECIDE THAT WE DON'T WANT TO DO THIS PROJECT.

AND THEN THEN THEN WE PUT YEAH, I MEAN, THAT'S DEFINITELY A DECISION.

NOT SAYING THAT WE SHOULDN'T DO THIS PROJECT NECESSARILY, BUT YEAH, AT THAT POINT.

YEAH. YEAH. BUT SO, SO THERE, THERE IS A POSSIBILITY OF SAVING ALL THAT MONEY BECAUSE WE WAITED UNTIL THEN.

SO AND I UNDERSTAND IT'S VERY IF WE DECIDE TO WAIT UNTIL THEN, AND THERE'S A SURETY ON JANUARY 24TH THAT WE PROBABLY WILL NOT GET FUNDED AND WE CHOOSE NOT TO GO THROUGH THE PROJECT, IT'S A RISK AT THAT DAY.

IT'S A RISK. AND THE THE COSIGNING OF THE LOAN AND EVERYTHING, AND WE CHOOSE NOT TO GO FORWARD WITH THE PROJECT AT THIS TIME.

YOU KNOW, THEN THAT COULD BE A SAVING IF WE OBVIOUSLY NEVER GET THROUGH.

I THINK IN THE FUTURE I WOULD THINK THAT OF THAT AS A BIT PENNY WISE, POUND FOOLISH IN A WAY.

RIGHT. BECAUSE YOU'RE DECIDING, HEY, THERE'S A 5 TO 10% CHANCE THAT THIS ISN'T GOING TO ACTUALLY COME THROUGH ON THE STATE'S END.

SO WE'RE GOING TO MAKE 100% DECISION THAT WE'RE GOING TO OVERSPEND MILLIONS OF DOLLARS ON THE BACK END.

BUT SOME OF US ARE RISK AVERSE OR LEVEL OF RISK IS DIFFERENT.

YEAH, YEAH. AND THAT'S THAT'S FINE.

BUT THEN WE HAVE TO BE OKAY WITH THE FACT THAT WE'RE GOING TO OVERSPEND ON THIS PROJECT IF WE DECIDE TO DO IT, BUT STILL BE UNDER THE $80 MILLION IF WITH UNDER THIS CONTRACT NOW.

BUT BASED ON JUST THE TIMELINE BETWEEN NOW KNOW WE HAVE TO GO FIND SEVERAL MORE MILLION DOLLARS OUT OF OUR RESERVE IN ORDER TO PAY FOR THIS.

BUT EITHER WAY, WE'RE GOING TO HAVE TO FIND MONEY OUT OF THE RESERVES TO PAY FOR IT.

OKAY, WE CAN FIND MORE.

IT'S JUST STILL MORE.

YEAH. NO GOVERNMENT PROJECT IS UNDER BUDGET.

SAME THING. ALL RIGHT, LET'S LET'S TALK TO OUR OWNERS REP PEOPLE.

I THINK WE'RE I KNOW WE'RE JUST NITPICKING RIGHT NOW, AND I THINK WE JUST NEED TO MAKE A DECISION.

DO YOU WANT TO MOVE FORWARD OR DO YOU NOT.

AND YOU CAN EITHER CHOOSE TO MOVE FORWARD OR NOT TO ME, TO ME I THERE I MY MOTION.

DO I HEAR A MOTION TO CALL THE QUESTION.

YEAH MY MY MOTION IS TO MOVE FORWARD WITH THIS PROJECT AND NOT AND NOT KEEP DELAYING THIS.

LET'S MOVE THE ITEM.

OKAY. ITEM 405.

MOVE THE ITEM. MOVE THE ITEM FORWARD.

CAN I GET A SECOND? I'LL SECOND.

CAN WE GET A ROLL CALL VOTE, PLEASE.

COULD I DO THIS? STUDENT TRUSTEE SCOTT.

YEAH. SORRY.

ONE SECOND. TRUSTEE JAMES.

CODY. BIRKEY I TRUSTEE DON GREEN.

NAY. TRUSTEE.

ZURICH LEWIS. NO.

TRUSTEE SHIN LIU I TRUSTEE MARIANA PACHECO I TRUSTEE MARISA PEREZ NO TRUSTEE SANDRA SALAZAR I MOTION PASSES. WE DON'T GET A LOT OF SPLIT VOTES, SO HOPEFULLY WE'RE EXCITED ABOUT THAT.

THANK YOU FOR YOUR TIME AND AND FOR BEING HERE TODAY.

[02:30:04]

SO YOU CAN ANSWER ALL THE QUESTIONS.

SO ITEMS APPROVED.

NEXT ITEM IS ITEM 5.01, COLLEGE COORDINATING COMMITTEE MINUTES.

[5.01 College Coordinating Committee Minutes: November 6, 2023]

NOVEMBER 6TH.

WE WILL RECEIVE AND FILE THAT ITEM.

NEXT ITEM IS 6.01 REQUESTED BY TRUSTEE ZURICH LEWIS.

[6.01 Requested by Trustee Zurich Lewis: Consideration of Adoption of Resolution No. 23-1213A Condemning Acts of Violence, Prejudices, and Hindrance of Freedom of Thought in Response to the Israel-Hamas Conflict]

CONSIDERATION OF ADOPTION OF RESOLUTION NUMBER 20 3-1213A CONDEMNING ACTS OF VIOLENCE, PREJUDICES AND HINDRANCE OF FREEDOM OF THOUGHT IN RESPONSE TO THE ISRAEL-HAMAS CONFLICT.

AND I'LL LET TRUSTEE LEWIS PRESENT.

YOU CAN SAY, DOCTOR, DOCTOR, I WANT TO CALL YOUR DOCTOR, BUT THAT'S OKAY.

THEY DON'T CALL DOCTOR LAWYERS DOCTORS, BUT THAT'S A THAT'S A DIFFERENT RESOLUTION WE'LL BRING UP LATER.

NO. SO I BROUGHT THIS VERY SERIOUS, TRULY RESOLUTION FOR TWO REASONS.

NUMBER ONE WAS TO CONDEMN THE OCTOBER 7TH ATROCITIES AGAINST INNOCENT CIVILIANS OF ALL NATIONALITIES, NOT JUST ISRAELIS.

AND FOR THE SECOND REASON OF SUPPORTING PUBLIC SAFETY AND FREE SPEECH ON OUR CAMPUS.

AND SO, YOU KNOW, IT WAS REALLY MY CONVICTION AND MY HEART TO, YOU KNOW, BRING THIS UP TO THE BOARD.

AND I WORKED TOGETHER WITH THEN PRESIDENT SHIN LIU AND THEN VICE PRESIDENT SALAZAR TO CRAFT THIS CONSENSUS LANGUAGE THAT IS NOW A PART OF OUR AGENDA, TO ACKNOWLEDGE THE TRAGEDY OF THIS, OF THIS RESOLUTION AND THIS CONFLICT FOR INNOCENT CIVILIANS ON BOTH SIDES OF THIS CONFLICT, AND TO AFFIRM THE VALUES OF OUR COLLEGE AS OUR STUDENTS AND THE REPRESENTED CULTURES IN OUR DISTRICT GRAPPLE WITH THIS MILLENNIA LONG CONFLICT THAT HAS HAD YET ANOTHER LASH.

IN THE MANY DECADES SINCE THE STATE OF ISRAEL HAS BEEN RECOGNIZED OR OTHERWISE.

SO, YOU KNOW, I DIDN'T WANT TO WAIT TILL SOME KIND OF INCIDENT OR OTHER THING HAPPENED ON OUR CAMPUS BEFORE WE, YOU KNOW, TAKE THESE KINDS OF RESOLUTIONS BECAUSE A LOT OF HIGHER EDUCATION INSTITUTIONS AROUND OUR COUNTRY HAVE HAD TO DEAL AND GRAPPLE WITH VERY SERIOUS INCIDENTS THAT HAVE HAPPENED AGAINST MEMBERS AND STUDENTS ON BOTH SIDES OF THIS CONFLICT.

SO, YOU KNOW, AS LONG AS WE TAKE THESE POLITICAL POSITIONS AND SUCH AS WE'VE HAD IN THE PRECEDENCE OF THE BLACK LIVES MATTER RESOLUTION AND DACA RESOLUTION THAT OUR BOARD HAS TAKEN IN YEARS PAST, I BELIEVE THAT THIS IS SALIENT AND NECESSARY TO TAKE THESE POSITIONS THAT ARE PUT ONTO THIS RESOLUTION TODAY. AND, YOU KNOW, IN LIGHT OF THOSE SAFETY VIOLATIONS AND SOME OF THOSE OTHER INSTITUTIONS BEFORE.