1. Program Controls Systems & Processes Board of Trustees Workshop October 11, 2005

2. Introduction Objectives Presenters Agenda

3. Objectives Describe Program Controls Process and Systems Provide Current Program Budgets and Schedule Discuss Key Program Controls Issues

4. Presenters Al Harrison - VP of College Operations Yulian Ligioso - Director of Fiscal Services Dave Kirn – Program Manager Bruce Rich – Program Controls Manager Dale Molyneux – Manager Estimating/Scheduling Geraldine Bracken – Financial Controls Manager Arthur Bart-Williams – VP, Professional Services (ViaNovus, Inc.)

5. Agenda Overview of Program Control Systems Budget/Cost Management Current Budgets Paragon System- Cost Mgmt System Procurement Process Delegation of Authority Schedule Management Current Schedule Program Cash Flow Information Management

6. Overview of Controls Systems Budget / Cost Management Schedule Management Procurement Management Information Management

7. Budget Management Process Determine Funding Establish Budgets Prepare Project Estimates Design to Estimate Obtain Bids Track Actual Costs START

8. Schedule Management START

9. Procurement Process START

10. Information Management Process START

11. Budget/Cost Management Systems Funding Sources Detailed Budgeting Initial Budgets Project Definition Budgeting Budget Issues

12. Funding Sources Measure C$249M Local Funds ? M State Funds ? M Donations ? M Total Funding$250M +

13. Program Budgeting Initial Budgets 36 Projects = $249.5M(100%) Current Budgets 47 Projects = $200.8M(80%) Program Mgmt = $ 12.8M( 5%) Contingency = $ 35.9M(15%) Total$249.5M(100%)

14. Program Budget Components Program Level Budget Components Facilities Master Plan Facilities Assessments Program Studies Campus Master Plan Program Support Staff Program Management Staff

15. Project Budget Components Project Level Budget Components Design A & E Fees Plan Check Construction Haz Mat Bonds and Insurance Test and Inspection Furniture, Fixtures & Equipment Relocation Construction Management Contingency

16. Detailed Program Budget Budget Breakdown 8-15-05 COM (Final).xls Appendix 1

17. Project Initiation Process Define Scope Create Project Construction Estimate Establish Schedule Develop Project Budget Determine Funding Source (s)

18. Project Initiation Forms JCAF Allocation Master.xls Appendix 2

19. Paragon Systems System Overview Information Input Typical Reports

20. Budget/Cost Management Systems Contingency Management Program Level Project Level Reports Management District Public

21. Budget Issues Program Definition Process Internal Forces People Changes Ed Plan Changes External Forces Inflation Regulatory Changes Community Input

22. Procurement Procurement Process Purchase Orders Consultants Contractors Changes Payment Process

23. Identify Need Establish Scope & Budget/Cost Codes SMC M&O VP DOM Review & Approval Project Initiation Form Contracting Process Procurement Process BOT Approval Of Award VP VP of College Operations SMC M&O DOM Director of Maintenance & Operations Swinerton CM/PM Director of Modernization DP BOT District Purchasing Board of Trustees Paragon Procurement Process Overview VP Review & Recommend

24. Identify Need Establish Scope & Budget/Cost Codes Write Requisition ERS SMC M&O VP Review & Approval Create Purchase Order Send PO to Vendor Vendor Deliver Product Vendor Submits Invoice DOM VP VP of College Operations SMC M&O DOM Director of Maintenance & Operations Swinerton CM/PM Director of Modernization DP BOT District Purchasing Board of Trustees Paragon Purchase Order Process Goods or Services

25. Write Requisition ERS Create Purchase Order Send PO to Consultant Consultant Delivers Services RFP/RFQ Process VP Review & Recommend Review Proposals & Recommend Shortlist BOT Approval Of Award Negotiate Agreement BOT Approval Action (Final Contract) 1. Full Selection Committee approves interview process 2. Full Selection Committee approves recommended firm Consultant Interviews VP VP of College Operations SMC M&O DOM Director of Maintenance & Operations Swinerton CM/PM Director of Modernization DP BOT District Purchasing Board of Trustees Paragon SMC M&O VP Review & Approval Procurement Process Consultants VP Review & Recommend

26. Write Requisition ERS Create Purchase Order Send PO to vendor Contractor Deliver Services Bid Bid Analysis VP Recommend to Award SMC M&O VP DOM Review & Recommend BOT Approval Document Execution Notice to Proceed VP VP of College Operations SMC M&O DOM Director of Maintenance & Operations Swinerton CM/PM Director of Modernization DP BOT District Purchasing Board of Trustees Paragon SMC M&O VP Review & Approval Procurement Process Contractors

27. Pay Invoice Accounting Vendor Submit Invoice Cost Controls Mgr Review Invoice PM Approve Payment SMC M&O VP DOM Review & Approval VP VP of College Operations SMC M&O DOM Director of Maintenance & Operations Swinerton CM/PM Director of Modernization DP BOT District Purchasing Board of Trustees Paragon Invoice Payment Process

28. SMC M&O VP DOM Review & Approval Contractor Submit Change Order Request Cost Controls Mgr Assign Cost Code CM Review Change Order Request BOT Approval Contract Amendment Notice to Proceed Change Order Identified VP VP of College Operations SMC M&O DOM Director of Maintenance & Operations Swinerton CM/PM Director of Modernization DP BOT District Purchasing Board of Trustees Accounting Paragon Change Order Process VP Review & Recommend

29. Delegation of Authority Types of Commitments Contracts/Purchase Orders Changes Suggested Limits New Commitments – Up to $250,000 Changes Lesser of 5% of Original Agreement or $250,000 Total change less than 10% of Original Agreement

30. SMC M&O VP DOM Review & Approval Contractor Submit Change Order Request Cost Controls Mgr Assign Cost Code CM Review Change Order Request ADMIN Admin Approval BOT Approval Contract Amendment Notice to Proceed Change Order Identified Value VP VP of College Operations SMC M&O DOM Director of Maintenance & Operations Swinerton CM/PM Director of Modernization DP BOT District Purchasing Board of Trustees GT 10% LT 10% Paragon Change Order Process Proposed

31. Contracting Strategy Encumber the bid amount plus 10% for contingency Delegate the management of contingency to District Administration Report use of contingency at regular intervals

32. Schedule Overview Program Schedule Development Project Schedule Development Schedule Format-Paper/Electronic

33. Program Schedule Development Identify Projects Develop Sequence of Projects Evaluate Impacts Establish Priorities Balance Resources Integrate College Schedules Adjust Schedule

34. Project Schedule Process Planning Template Adjust Template to Project Scope Establish Activity Durations Adjust with Progress

36. Program Cash Flow Combine Schedule and Budgets County Investment Earning Impact of Delays

38. Information Management Filing System-Paper/Electronic Software Microsoft Office Package 2003 Auto CAD 2005 SureTrak 3.0 Adobe Acrobat Professional 7.0 Distribution Access SMC Team, Facilities, Financial Management & Vice President

39. Summary Overview of Program Controls Budget / Cost Management Schedule Management Procurement Management Information Management Upcoming Activities Program Budget/Schedule Update Paragon Development