The Los Angeles Unified School District (LAUSD) Board of Education (Board) and the Independent Proposition BB Citizens' Oversight Committee (Oversight Committee) have developed this charter and memorandum of understanding (hereafter "Charter") to articulate the purpose of oversight, the role of the Oversight Committee, and the level of support LAUSD will provide the Oversight Committee.

This Charter will also serve as the framework for oversight if the anticipated November 2002 local school bond measure passes.

The mission of the strong and independent Oversight Committee is to oversee the expenditure of money for the construction, repair and modernization of schools by LAUSD and to communicate its findings to the Board and the public so that school bond funds are invested as the voters intended and that projects are completed wisely and efficiently.

The shared vision between the Oversight Committee and LAUSD is to build and maintain schools that promote the full development of the child, are educationally and environmentally sound, enhance their neighborhoods through design and programming as centers of community, and reflect the wise and efficient use of limited land and public resources.

It is necessary for LAUSD to have in place strategic execution plans for school construction, repair and modernization to help ensure projects are completed as planned, on time, within budget and as the voters wanted. It is also necessary for LAUSD to have in place qualified professional staff and the management systems to develop and implement those plans.

The most critical information for school construction and modernization and for effective oversight includes:

• Strategic execution plans for school construction, repair and modernization. The necessary plans include a vision for the learning environment, mission, guiding principles, goals, lists of specific projects, milestones, budget, time schedules, management controls, information systems, cost controls, early warning systems, and the assignment of responsibility and accountability.



• Monthly progress reports to identify progress made, significant schedule and budget variances, plan revisions and current estimates for cost and completion.



• Early warning memos when a construction, repair or modernization project is likely to exceed the budgeted cost by five percent or more.



• A rational and timely audit system including annual financial and performance audits (as required by law), audits of new construction, repair and modernization contracts (as outlined in the Inspector General's approved work plan), and other audits that are mutually agreed between the Board and the Oversight Committee.



• Independent oversight reports and evaluations by the Oversight Consultant under the direction of the Oversight Committee.

The Oversight Committee will work with LAUSD so that LAUSD has in place the necessary plans, professional staff and management systems to build schools wisely and efficiently. LAUSD agrees to provide the Oversight Committee with the necessary information and resources to engage in effective oversight not hindsight, including the critical information and resources specified in the preceding five bullet points.

The Oversight Committee is entitled to obtain information concerning school construction, repair and modernization at the same time and on the same terms and conditions as the Board, with the exception of legally privileged information such as information pertaining to litigation, personnel matters, confidential student information, labor negotiations, procurements in process and investigations of possible criminal activity. If the Oversight Committee finds it necessary to request legally privileged information, the Board will consider on a case-by-base basis the balance between the Oversight Committee's need to know and the Board's need and ability to protect its legal privilege.

The Oversight Committee will report its findings and recommendations to the Board and the public.

The LAUSD acknowledges its responsibility to support the Oversight Committee in ways including but not limited to the following.

LAUSD acknowledges its duty to gather, analyze and publish information necessary for the Oversight Committee and the public to understand the impact of LAUSD's construction, repair and modernization plans, policies and practices on students and on the community. This information will enable full and fair participation by all communities in the evaluation of LAUSD's plans to build, repair and modernize schools.

To enable the Oversight Committee to carry out its responsibilities, LAUSD agrees to present information concerning major projects to the Oversight Committee before the Board commits itself to a course of action. If a project or any component thereof will result in an impermissible expenditure of bond proceeds, all parties agree that it should be discovered at an early stage. The Oversight Committee has the responsibility and authority to recommend against the expenditure of local bond funds when LAUSD does not provide adequate information for effective oversight, or when a project or family of projects when presented in a strategic execution plan appears to be impermissible or imprudent.

LAUSD agrees to include the Oversight Committee's recommendations as part of LAUSD's documentation when a project or family of projects is presented to the Board for its approval. LAUSD agrees to respond to the Oversight Committee's recommendations in writing within 30 days, reporting either on action taken or proposed to be taken in response to each recommendation and resolution of the Oversight Committee.

LAUSD agrees to provide the Oversight Committee with necessary technical and administrative assistance and resources in furtherance of effective oversight. LAUSD agrees to provide the resources to retain an Oversight Consultant, staff aide, and independent counsel, and to publish Oversight Committee reports and recommendations on the Web and in hard copy. The Board acknowledges that effective oversight requires the resources to get the job done.

LAUSD agrees to schedule a time certain for the Chairman of the Oversight Committee to present each Quarterly Report at the next Board meeting after the Oversight Committee publishes the Report. LAUSD also agrees to provide a time certain for the Chairman to report to the Board from time to time at the Chairman's request. Oversight Committee reports will also be available to the public on the LAUSD Website. LAUSD agrees to notify appropriate officials, including elected officials, each time an Oversight Committee report is released.

The Board, Superintendent and Oversight Committee agree to engage in a dialogue that will produce a plan by December 5, 2002 to streamline support services for facilities to insure that schools are built, repaired and modernized under the strategic execution plan on time and within budget.

The Board, the Superintendent, the Oversight Committee and the Inspector General are committed to implementing the central lesson to be learned from the first audit of the BB Program: the need for open communication, sharing of information and teamwork.

LAUSD will publicize the Inspector General's availability to investigate allegations of waste, fraud or abuse regarding the expenditure of local bond funds. Any public audit or report prepared by the Inspector General will be made available on the LAUSD Website. LAUSD agrees to notify appropriate officials, including elected officials, each time such an audit or report is released.

1. Oversight Committee Membership




Until such time as the voters approve a 55% bond measure as authorized by Education Code Section 15278, the Oversight Committee shall consist of members who shall serve without compensation. The membership of the Oversight Committee shall be as follows:

• The Los Angeles Area Chamber of Commerce shall appoint one of its active members to the Oversight Committee.
• The Tenth District PTSA shall appoint a member of the Oversight Committee.
• The Thirty-First District PTSA shall appoint a member of the Oversight Committee.
• The American Institute of Architects, Los Angeles Chapter shall appoint a member of the Oversight Committee.
• The Associated General Contractors of California, Los Angeles District shall appoint a member of the Oversight Committee.
• The Mayor of the City of Los Angeles shall appoint a member of the Oversight Committee.
• The Controller of the City of Los Angeles shall appoint a member of the Oversight Committee.
• The Los Angeles County Board of Supervisors shall appoint a member of the Oversight Committee from the Office of the County Auditor-Controller.
• The Los Angeles County Federation of Labor AFL-CIO shall appoint a member of the Oversight Committee.
• The American Lung Association shall appoint a member of the Oversight Committee.
• The Planning and Conservation League shall appoint a member of the Oversight Committee.

Within 60 days of the passage date that the Board enters the results of a successful 55% bond measure election in its minutes, the Board shall appoint a new Oversight Committee to oversee the expenditure of all local bond funds. The membership of the new Oversight Committee shall be as follows. (The eleven current members are noted with an asterisk (*). The five members required by state law are noted with a pound sign (#).)

• #*The Board shall appoint one member nominated by the Los Angeles Area Chamber of Commerce who is active in the Chamber of Commerce.
• *The Board shall appoint one member nominated by the Tenth District PTSA.
• *The Board shall appoint one member nominated by the Thirty-First District PTSA.
• *The Board shall appoint one member nominated by the American Institute of Architects, Los Angeles Chapter.
• *The Board shall appoint one member nominated by the Associated General Contractors of California, Los Angeles District.
• *The Board shall appoint one member nominated by the Mayor of the City of Los Angeles.
• *The Board shall appoint one member nominated by the Controller of the City of Los Angeles.
• *The Board shall appoint one member nominated by the Los Angeles County Board of Supervisors from the Office of the County Auditor-Controller.
• *The Board shall appoint one member nominated by the Los Angeles County Federation of Labor AFL-CIO.
• *The Board shall appoint one member nominated by the Planning and Conservation League or another nonprofit environmental, environmental justice or civil rights group.
• *The Board shall appoint one member nominated by the American Lung Association.
• #The Board shall appoint one member who is the parent or guardian of a child enrolled in the LAUSD
• #The Board shall appoint one member who is the parent or guardian of a child enrolled in the LAUSD and is active in a parent-teacher organization such as the PTSA.
• #The Board shall appoint one member who is active in a bona fide taxpayers' organization.
• #The Board shall appoint one member who is active in a senior citizens' organization.

The new Oversight Committee members shall serve for a term of two years without compensation and for no more than two consecutive terms. The Board may appoint some members for one term only so that all members' terms don't expire at the same time.

Members are expected to attend all meetings. If a member without good reason acceptable to the Executive Committee of the Oversight Committee fails to attend either (a) two or more consecutive meetings or (b) three or more meetings in a year, then the Oversight Committee shall define the member as inactive and shall inform the Board of its action.

If a current member is inactive or if one of the nominating individuals or organizations noted above elects not to nominate a member, the Oversight Committee may request the Board to appoint a replacement or recommend specific changes in the number of members and/or composition of the Oversight Committee to the Board, consistent with state law.

No employee or official of the LAUSD shall be appointed to the Oversight Committee. No vendor, contractor, or consultant of the LAUSD shall be appointed to the Oversight Committee. Subsequent to the passage of a 55% bond measure, Oversight Committee members shall abide by Article 4 and Article 4.7 of Division 4 of Title 1 of the Government Code.

Oversight Committee members are required to sign a conflict of interest statement and to disclose any potential conflicts that may arise in the course of their service.

2. Oversight Committee Meetings and Bylaws

The Oversight Committee shall meet monthly or as the Oversight Committee shall deem necessary to conduct its business. All Oversight Committee proceedings shall be open to the public except as necessary to consider legally privileged matters consistent with state law. Notice to the public shall be provided in the same manner as the proceedings of the Board.

The Oversight Committee shall adopt bylaws regarding its internal organization. Such bylaws shall include the following:

• A majority of the active members of the Oversight Committee shall constitute a quorum.
• Recommendations to the Board to approve or disapprove a project must be approved by a majority of the active members of the Oversight Committee. Other recommendations may be approved by a majority of the active members in attendance, provided that there is a quorum.
• A provision for electing a Chairman.
• A provision for an Executive Committee.


3. Oversight Committee Reports

The Oversight Committee shall issue regular reports on the results of its activities. A report shall be issued at least quarterly. Minutes of the Oversight Committee's proceedings and all documents received and reports issued shall be a matter of public record and be made available at Oversight Committee meetings, with the exception of any documents that are privileged or otherwise exempt from disclosure under the Public Records Act. Such minutes, documents and reports may be posted on a Website maintained by the LAUSD.

4. LAUSD Support Services

The Board agrees to provide the Oversight Committee with reasonably necessary technical and administrative assistance and financial resources in furtherance of its mission and purpose under this Charter.

This assistance includes but is not limited to the commitment of sufficient staff time within the Facilities Division and Budget Office to prepare periodic reports that will show the Oversight Committee what projects are proposed, what each project is estimated to cost, when each project is scheduled to be completed, each project's current stage of completion, and the final cost of the project. Facilities, Budget and other LAUSD staff will assist the Oversight Committee and its representatives in furtherance of the Oversight Committee's mission and purpose under this Charter.

The assistance also includes the commitment of a budget of LAUSD resources for staff or consultant time to assist the Oversight Committee, including the following:

• Staff aide and office supplies budget sufficient for the Oversight Committee to prepare its agenda, distribute materials, prepare minutes, publish and distribute Quarterly Reports.
• An independent Oversight Consultant, responsible to the Oversight Committee, who can advise the Oversight Committee regarding methods LAUSD is using or could be using to construct, repair and modernize schools.
• Independent legal counsel, responsible to the Oversight Committee, to advise the Oversight Committee on relevant legal issues.
• Assistance in broadcasting and recording Oversight Committee meetings.
• A Website on which the Oversight Committee can post relevant information.
• A travel budget sufficient to allow each member of the Oversight Committee to attend one bona-fide conference or educational seminar related to California school facilities each year and to allow the Chairman to testify before a State authority if approved by a majority of Oversight Committee members.

Such support will not come from bond funds.

Adopted on July 9, 2002.