001here. >> Andrew Adams >> here, >> Greg Beverson >> here, >> Alan Wilson >> here, >> Penny >> here, >> Mike's here, Robert D >> here. Okay. Whole board is present at this time. Brings down to new business item 2.1. We'll start out with the bond process review. So, in front of you, board um you do have a timeline basically of that general obligation bond um and what that looks like. So this first round of bonds are going to be a geo bond. Uh we are capped. Um so you can only have x amount of dollars in geo bonds. Right now we have a cap of just a little over $2 million. So that first issuance is going to be um we would look at issuing $2 million. It is a process for those folks
002who are new to this. Um this is a lot simpler process than than the building core um which causes you to lease out a building. So, uh, basically in the August board meeting, um, Stiffel as well as Ice Miller will come, serve as the council and, uh, deliver, um, this project. And then you'll adopt a resolution on that project. And they'll say, we're not going to exceed $2 million. So, we can't go over that that threshold. We can always spend under that threshold. I think Greg always asked that question. Can we spend less than we than we do that? But we can always spend less than that, but we don't uh um necessarily spend over. And then if you flip forward to that September board meeting, now those those little black points are things that
003I do behind the scenes as well as as Montana. Um we get those publications out. So there's those timelines that we have to meet for publications. Um new publications have to have things like um place, time, and now it has to have the meeting as well. also the link to the meeting so people can can um go in there and get that. The tricky part is that the paper only runs one day a week. So we've got to make sure that times out correctly and sometimes it's tricky for them to get in get it in if they don't get it a week in advance. So we're good about doing that. It's also you'll see it posted on our web page um as well. >> So are we just going to continue to use Peru Tribune
004or whatever it is or >> it's our local tribune. So yeah, I mean council advises that that's what we use. um if they would happen not to publish it, it's on our website, then that is a good backup for for them if they accidentally don't get that hint. Okay. >> Advertising Cooko, too. >> Yeah. I thought we'd talk about going to Cooko and that was acceptable since Peru doesn't have a standalone daily paper that we could go to Cooko for our legal advertisements and put it on the website. >> Yeah. When I we can do that. When I talked to our council, it they did say Peru since it is the local tribium, but we can do both just as a backup. That way, it's in three three different places if that's the board's wish.
005>> I just known and not only here, but other places when they don't catch it for whatever reason and then they don't publish it, then you're in violation because they didn't get it published. They don't care if you got it submitted or whatever. So, I think moving forward, especially through this process, maybe we >> we double dip. we go Cookamo and Peru >> just to make sure we're covered cuz they can miss it then then we can miss our whole timeline. So >> doesn't the letter of the law allow us just to put it on the website? So it is a backup. So if they would happen to miss it council says that if it's on our website then that that is a backup to >> but it's not the primary >> can't can be
006used as >> it can be used as a primary. >> Correct. So there's some, as they said, case law that that has been tested on that. So it doesn't matter to me. We can >> just duplicate of expense. How much does it cost to run these things? >> $20. >> So it's not >> Oh, that's not bad. Okay. >> We can we can run it in three places. That way if if somebody doesn't see on our website or wants to contest it, >> whatever. >> So uh if you flip forward to September 24th, um an initial appropriation hearing. So, uh, when we approve the budget, um, when when you approve the budget, you appropriate x amount of dollars. This $2 million is going to go above and beyond that appropriation. So, that's what you're doing
007is you're saying, "Okay, we have um the authority to spend that $2 million. Without that resolution, we we can borrow the money. We have no authority to spend." Um, and then obviously you would adopt that final resolution there in September. If you look on down to October, um that's when we'll get in kind of the nuts and bolts of things. Uh projects will be pretty much hammered out by that point. Um and then we look at selling those bonds. So, if you listen to uh both Eric um and Chad, there's a sweet spot for selling those bonds. They don't want to sell them too far into December. They don't want to sell them too far really into November um because people lose their appetite to buy those bonds and your um basically your percentage rate
008could go up or there's an outside chance that you can't even sell your bonds. Uh the other thing there is it talks about on September 29th um doing a rating process. We've done and you can help me out on this a little bit, Robert. We've done some projects without a rating process because it didn't matter on the percentage really. It didn't really the cost of getting that rating process did not outweigh the um rate that we were going to get. So, we'll we'll dip our toes in that water this time. So, if if we say, "Hey, we're not going to get a rating because it cost x amount of dollars and we're not going to pay that much back on our percentage," then we won't get that rating. Otherwise, um >> you're talking about interest
009rate, >> not not the our S&P rating. >> Correct. Correct. Yep. >> Does that make sense? >> Yep. >> Okay. >> Does it cost like 10 grand or something to get that? >> Uh, it's pretty expensive. I mean, it's I think it's in the tens of thousands of dollars. >> So, you got to weigh the interest rate uh correct difference. >> Yeah. Yep. Most definitely. Um, and then once those bonds sell, that money becomes becomes available. Um, early in the process, obviously, there'll be some design work um that we'll recapture with the bond. Um, again, we don't know the the full extent of that yet. Um, we'll learn a lot more on September 4th. Um, as we as we kind of walk through it, obviously, um, as we go through this list today, we've been
010given some priorities as as we look at things. We looked at some of those items. Um, some of the board members walked through and looked at those items today. Um, what we want to make sure we're doing is preventing a catastrophic failure, which would cause us from closing the school down. I that's that's uh point and case number one. So, as we start talking through some of those things, um that's why they're prioritized the way they were. I I want to thank Rex and and Andrew uh and Robert for sitting down um around Christmas time, I think, is when it was uh to look through these initially um to help kind of rank order those. Um and we're going to kind of try to hash some of that stuff out today and say, "Okay, do
011we want to do a little eb and flow?" Um, and I think on September 4th, so we're going to come back in September. Um, I think that we'll also have a better idea from an engineering standpoint as to what that looks like as well. You know, are we going to take piping out of the tunnel, move it above? Well, today we learned a little bit that maybe that's not the best option. So replacing that pipe into some facet whether it is taking parts of it out that are horrible and leaving other parts. Um but they'll have a better idea of that and that's why you pay those folks rather than you know asking a vendor, hey what do we need? And then you know you get a Cadillac when you could have gotten by with
012a >> Chevy Lumina. >> Um so that is that. Does anybody have any questions on the process and how that works and what you're going to be voting on? >> In terms of special meetings, there are no other special meetings. >> Most all this business will be conducted in our regular >> correct. I I just want to make sure everybody's going to be here on the 27th. I won't be had to have a quorum. Right. I'll be here. >> I'll be here. >> Okay. On one question, I do have one on the 24th when we do all those additional appropriations and stuff and we adopt final bond resolution. Should there also be a resolution in there for reimbursement for cost up to that point of accepting that bond? Um I'm just wondering if they forgot
013to put that step in there because we spent money ahead of time and I remember in the past bonds we had to adopt a resolution for reimbursement. Not sure exactly right off the top of my head what it was called, but in order to recapture any monies that we spend up to the time of the closing of the bond, we have to be I think there has to be a resolution to reimburse >> and I'll reach out to Eric um to make sure with the law change. I mean that's difficult to to say if you still have to do that or not. So I'll reach out to Eric and if we need that resolution that'll be there as well. Does everybody understand that? So >> that's excellent. for >> if we if we spend soft
014cost money or for some reason we would you know buy equipment because we think piping price is going to go up we can do that early in the process and then get reimbursed for it. Um so yeah I will make sure to ask that question to Eric >> engineering soft cost and stuff to get pricing decide next steps. So, >> yep. >> Earlier you mentioned we have a capacity of 20 million >> 2 million. If I said 20, I'm sorry. $2,50,000. >> So, in the geo bonds, $2,50,000. >> So, a cap, >> correct? >> So, is it a and that's just based on our current financial standings. So how much how much debt we already have out >> is is what that's based on. So >> in debt rolling off >> what's >> is there
015debt rolling off >> there there is some debt rolling off but it's not going to roll off before we issue these these bonds. So I would say we issue it we'll probably more than likely and if you listen to Eric and Chad we'll probably issue a geo bond. Not probably we'll issue a geo bond this first go around. it'll move to a building lease um the second goound and then depending on how much debt is rolled off on that third go around we may go back to a geo bond um on the on the third or fourth [Applause] >> yeah if I said 20 million I' walking >> I was like I'm sorry I mean I know what you're >> well I'm just as we look across here obviously we already think we're going to
016consume a $2 million bond. Um, there are any other smaller things that we somehow tack on that are priority one cuz there there are no small priority ones. But some prior the thing this is called priority starvation, right? Cuz when are you ever going to do a priority 2 project? >> Some somewhere in here we have to figure out we will priority. So, so what we've done in the past, we we've had lists, similar lists in the 20 years that I've been here and we have knocked off the priority ones and and then started on those priority twos. Some of these on here that are are priority ones or ones priority twos. You helped out with some of those lists um if you've been on the board for a little bit. So, some of those
017have, but it's and it's only going to get tighter. I mean, with with Senate Bill One and li limitations they're having on money you can borrow, especially money that goes into our um operating fund. It's going to get tighter and tighter. So, you are 100% correct. If you look at this list, I I don't see any of these as, hey, I I want this and it's going to, you know, their their needs. I mean, >> I'm on 2.1. Yeah, >> you did you did mention one though that will be reduced significantly and that was lockers at high school. >> Yeah, we'll we'll get to there. Do we want to move on to Does anybody understand the bond process where we're at? >> Yeah, we'll go I guess I address that just because we're already stating
018a value that we intend to take because it's 2 million. >> Y >> I guess I just want to make sure we maximize our potential for this bond. >> I I agree 100%. >> Oh yes. Thank you. floor. >> Okay. >> 2.2 financial value. >> You've seen this several times. Um I'm not going to dwell on it. Um, if you look through the bond issue, uh, there's going to have to be a a choice made by the board whether we want to extend them out and have not have the ability to borrow money um for several years or I'm sorry, extend it out and have the ability to borrow money in the in the near future or not extend them out and then we can't borrow money uh for several years. Uh, Brett, I think
019you asked about what is the interest difference. uh that is there on page seven is that interest difference. Um, [Music] [Applause] so I think, you know, as as a board, um, we're going to have to decide that sooner rather than later. >> Um, whether we want to go with the the shorter term and not have the ability to borrow until 2036 or go with the longer term and we can borrow again in 2030. It looks to me like the difference is $1.9 million in interest. But the question I guess so you're saying future capacity beginning that's not assuming the 25 26 27 28 bonds right >> that is so they have all those bonds worked in >> worked into that into that baked into your >> 2036 >> correct >> if you do that short
020term >> if you do it short term you're out to 2036 so that's on page six and and if you do the longer term you're out to 2030 that's page But by doing that, the total at your address is 1 almost $2 million. >> Almost $2 million. Correct. By extending those loans out. >> So I think >> what would that do for you guys? I mean, if we go shorter, I mean, is that is that a gamble? I mean, is that a gamble on our part to do that? >> You can see the priority list in front of you. There are roofs that need to be done and that's not something we can do out of that's not something we're going to be able to do out of our operations fund. Um, >> you know,
021mid year this year, uh, 6 months in, we we get 6.1 million in that fund, we spent 3.1. So, technically at 6 months in, we were $50,000 over budget. And it's not like we bought anything really. It's just daytoday fixing things that break. Um, I don't I personally don't like the fact that you're paying $1.9 million in debt, but I also don't want to pigeon hole >> us in the future to say, "Okay, we've got to have a roof. What are we going to do?" >> What all comes out of that budget on the 6.1? >> Uh, any number of things comes out of that budget. So, um, you have a number of employees, uh, salaries and benefits that come out of it. you have buses. So, uh, we spent $300,000 on buses. Just a
022point I'll I'll bring to you. Uh, in this month, we're going to talk about spending another $300,000 buses. And that's two buses. Yeah. Um, so those are those are the big hitters. Um, the fixed brakes, the daily fixed brakes. I mean, we had a well break and it was $100,000. Well, you you can't really budget for that. You can set aside, hey, we have this much money in fix and break, but who knows you're going to have $100,000 or $500,000 break. Um the boiler, if the boiler comes back and it's not covered by a warranty, that's $500,000. That's an operation fun um item as well. >> Go ahead. Sorry. it probably will have to roll to the rainy day fund because we don't have $500,000, but that's only $1.52 million somewhere in there. Um, so
023that's that's what those things cover and that our state legislators, I bless their hearts, don't understand that our operation costs have gone up exorbitantly in the last five years. So things we used to get done for half the cost, now we're paying big money for whether that's labor to come in and get them done or the piece itself. So >> on the employee side of thing, is that all the classified employees that come out of that fund? >> Uh a good a good majority of them. >> The boiler I know we've talked about those at like almost every meeting. Is that included in any of the things on this list? >> The boiler >> or we're just assuming it's eventually going to I mean I'm not saying we're assuming we know. >> So the boiler
024didn't make that list because the boiler just happened as we were making the list and >> we're hoping that it's covered by the warranty. >> Yes. >> What we'll do if it's not covered by the warranty is probably rolled into rainy days. So then much like this bond process, we'll ask for a appropriation for that rainy day fund and then we'll spend that money down. >> And how long until they get back with us to let us know on that warranty? >> They had two weeks to get back with us. That was last this last Tuesday. We made a call yesterday waiting to hear we're hoping to hear something tomorrow morning. >> Um but a good example pump motor went down pool this week. Mhm. >> Just the motor and I priced it out online,
025three different companies, individual us doing just the motor was $4,9959595959595959595959595959595959595959595. >> Mhm. >> So those are just little things that can just happen that cost a lot of money. Yeah. >> Just out of the blue. >> Mhm. >> So which classified people aren't on that? >> She said pays almost >> I can give you a list. I I don't have it off the top of my head. I know all of our janitors are everybody in this office is um so like somebody who wouldn't be on it are the the cafeteria workers because they come they come out of the cafeteria fund >> but all your maintenance staff your central office staff your secretaries in the building >> secretaries and buildings I I would have to check on that one they may come some of them
026may come out of the education fund >> IAS where they come from >> I think they come in many different fronts. So, like I said, I can get you a list of that. >> Okay. I'm just trying to wrap my head around on what's true maintenance parts versus what's salaries and benefits cuz >> like in any budget, your salaries and benefits is the, you know, I look at my my budget in 85% of that is probably closer to 90 salary >> and benefits. So, >> y >> So, we're you know at 10% we're looking Not very much money. >> Not very much money as far as maintenance and stuff goes. >> So, >> and I I can give you a breakdown of of what that is. But you're you're right. Even even if you're talking
027say $250,000 or $2.5 million of that, that's still not a lot of money to keep up these buildings to pay for. I mean, bus maintenance alone cost us a fortune when we do bus inspections, uh, we have about 40 buses and it cost on average $1,000 a bus to send them through inspection. >> Yeah. >> So, could you send us um a breakdown between like education fund and operations fund and you don't have to give us names, but like employee departments paid out of each. Ship, no problem. >> And then also like because there are some things that just can't be paid for out of the education fund, right? >> Is the operations fund more flexible like what you can use it for? >> They're pretty much set >> both. Okay. >> They're pretty much
028set on what you're going to do. So, back to this finance-wise, think through, you know, what what do we want to do as a board? Um, and then, you know, I I think that we we have to come to a point where we come to consensus. We can't do that. You're denied. Um, but you've had this information now. I've sent it to you several times. You now have a paper copy. So, um, if you don't understand it, you you want to sit down with me. I'm more than willing to sit down with you to give you a hey, we should do this or hey, we shouldn't do this. I can give you pros and cons to both of them. I mean, the big con is $1.9 million. The big pro is you can borrow money
029again in 2030, which looking at the priority list, you know, I think you got to think through that one um as well. >> Is there a timeline when we need to come to that consensus? >> Yeah, I would say yeah, probably at that next board meeting. We got to >> next being this August. >> Have an idea. Yes. I to have an idea of where we want to go because then it gets into the terms of the loans and they when they get ready to sell it then they have to know what those look like. >> Will this be something we vote on? Is this something we just come to the board meeting already >> consensus that um how's that process like? >> Yeah, it had to be a vote at at the open meeting
030at which we were going to decide to go. Um, but I think everybody should get a feel for where they're at if they have questions um to try to get consensus on where we need to go with it. Um, I'm I'm torn both ways, but I'm kind of like what Rex said, how much do you hand it handcuff moving forward? I mean, 2036 is a long time, but 2 million bucks interest saving, a lot of money, but you're handcuffing yourself. No flexibility. It sounds like >> or at least less flexibility. >> Yeah. The way this reading, there's none. I think you're right. Not much. >> Yeah. You're just >> you're just Have we ever done this before? Like in past years, like just did the short >> paid it and then just like somehow survived
031it without having to borrow. >> I've done several >> but not not in a series like this. So, yes, we borrowed $2 million and paid back in two years. >> Okay, >> but not a series that's >> $10 million or close to it, $9 million. So, that's where that bigger number comes in. If you don't stretch that out over more time, >> then your payments are pretty hefty and you're not going to borrow money. >> Okay. >> We didn't do any bonds the first couple years I was on the board. >> Okay. >> We just come out of that $10 million bond. We were overstrapped at that at that point. So yeah, you just can't do anything and then you end up >> with a backlog which is kind of what >> that's where we're
032already dealing with. >> Okay. >> And we went close to four years not being able to borrow anything. And it wasn't the 10 million that rolled off. It was two or three other bonds before the 10 that rolled off. So, >> is there a way out of the operations funds you can kind of segment out? I know we already talked about kind of SGNA or salaries, but like what's your salaries? What's your run the schools and then what's this fund of for oneoff that you're talking about with like just how much that is? Is there a way to get that breakdown? And then also a list and I know I'm sure I could go through back through the different uh ledgers you've sent, but is is there a way we can get a list of
033what those one time were? I don't know above a certain dollar amount just to keep tabs on it because I mean if it if we had it this year and then we have the same thing next year on the same thing that we fixed and we probably need to start adding it to this list of >> things we need to think about correcting as opposed to day fixing. >> Sure. one I think our yearly cost too on certain things you know like our testing and stuff on different equipment you know what's that look like um what what is our bus maintenance running us >> what is our our average every year as far as um inspections and stuff goes um and then I know we we do a pretty good job of keeping track of
034the buses and once they hit that point where it's a two two time cycle We try to we try to get rid of those buses so we're we're not inspecting them twice a year. But, you know, are are we holding too many reserve buses, you know, um or should we look at that, you know, and because even if we're not running them, there's still a cost to have them set in the bus gate at that point in time. So, >> so yeah, I definitely I can I can run those numbers. One thing, if it's if it's a board's if the board would like this, I can do it kind of a state of the school um when we get to the end of the year, which may be a better picture of where we're at.
035So, uh December or January, just do a state of the school. Here are the funds. Here are big ticket items. Um and then you can have that with you as well. Um it probably will present a better picture um at the end of the year than it does mid year because it's kind of eb and flow. I mean, you get through the summer, you spend more in fixing things, but less in maybe salaries depending on who comes out of what. But yeah, that that would definitely be something we can do moving forward. >> You can like categorize this is something that was one time and we won't like Chris presented last time, you know, that'll be when will we do that again? when how often do we have to like reup that kind of technology?
036>> Laptops are every year. >> Okay. But you presented maybe a different this. >> Yeah, that's something like >> Okay. So, it's a one time for now. We don't need to worry about it again for a while. Okay. >> And those are all things we look at >> when when we're budgeting. So, they're good questions asked uh during budgeting as well. It almost seems like to Allen's point how you get to priority three is you have a lucky year. You don't have one of these one-offs and you start to use that the funds you've allocated for that to knock out some of these >> at the bottom. >> Mr. Adams, we're waiting on our lucky year. >> I get 100% like I'm just it would be good for me just to knowing well how much
037of our operational fund is for those oneups or how much are we allocated to oneup in the past. >> We can't count any more leagues to get us to a new basketball court that took us a year to get it. And something that we're putting together right now that might answer your question, Beth, is we have taken our baby equipment and serial numbers off of looking at what the factory life use is for getting that chart put together. So we can kind of project out, which has never been done, that hey, this is coming up on 15 years. The most they gave us on that order was 20 years. And we're hoping with getting all these numbers plugged in that will help project out what we have coming in the future. It's never been done
038on major maintenance equipment here. >> So that is something that the hick custodas have collected that data. We're getting it entered. The architect is also willing to help us kind of get that in the chart >> so we can better prepare for some of this stuff. And that's that's kind of what we're behind the eightball two and three years in is >> um we used to as a school corporation all school corporations HVAC equipment lasted 50 years 40 years well life use now is 15 years >> so we're taking something out that last 40 or 50 years you put something in at1 to2 million dollars >> the last 15 so again that's the that's the cycle we're in. And it's I I really I mean I love Kathern Ker, but I hate when she comes
039in in the morning when I first get here because it's never pleasant. It's a this did this. >> Well, it's almost like you get it paid as soon as we get that stuff paid off, then it'll do it again while >> Yep. So, that's kind of, you know, priority wise where we're at. >> Um you want to move to 223? >> Yeah, we go to two. We have everybody's done with the financial. Everybody get any more questions on the financial review? >> Okay. Yeah. We'll go to item 2.3. >> Okay. So, you see the priority list in front of you. Uh we've we've already talked about it uh fairly extensively. Um you know, these are these are things that originally the principles and Katherine went around and then three of the board members, myself went
040around and looked at some other things and then tonight we're here to say, "Yeah, this is this is what we want to do. um look down through there. Tell me what your thoughts are. Um and we'll kind of move from there. Well, okay. I have some questions right off the bat. It's pretty obvious to me the tunnel piping is a priority. uh one one. Um now, when they gave us this $2 million uh estimated cost, of course, that was not a bid. Uh who who uh who actually gave us that number? Where did that number come from? >> So, when you look at that tunnel project, there's a lot of things without replacing some of that piping that you can't move forward on your HVAC, >> right? Could we keep going on that track even
041if we're below that 2 million? You got you got room ventilators that are 30 years old. >> So that's why we put that as our number one priority. >> And I do understand that, but I wonder who gave us that number, the 2 million. >> Go ahead, Craig. QPH originally. That was and I think that was asked at the last board meeting. Hey, is this a firm number? Is this something written on? >> No, no, it's not. >> Yeah. And and I don't think there's so if you walk down, there's so many variables in there that you can't tell. Which is why I think that we agreed that we need to look at an engineer, have them come in, um, and then that gives you a more precise number. Now, an engineer can what they
042can do is say, "Okay, we can take it this far for $2 million, and then when we, you know, if we issue money again, then we can take it this far for the other amount of money." But my question uh concerns since it they've today decided it's not a good thing to take the piping up in general, but just to replace or renew what's in the tunnels. Do you think that that would substantially lower this 2 million number? >> Well, when you don't take it up, you have to abate asbestous, >> which is a highly >> Okay. >> costly. >> Yeah. Okay. Thank you for getting me focused on that because I was thinking maybe we could catch one of those lower uh priority one things with the piping, but the qu the question is
043how the bids will come in, but obviously it's not going to be. >> Yeah. And I think it's important that um that as we work through this process, we engineer something that comes in at the right bid because we >> some of us are set around this table when things come in and they're too high and then you got to come back to the drawing board and pair things down. So, um I think having plenty of options as to how that might look is probably the the key to that um moving forward. >> Well, thank you. So, I don't know if I have a healthy paranoia or an unhealthy one, but I mean, we've been talking about this every month for quite a while and talking about the dollar value for quite a while. So,
044all the vendors who pay attention hear that. So, I mean, it just seems like that >> this is the flow process of bidding jobs because when you bid a job, you've got to put out there, just like this next meeting, they're going to say you can spend up to $2 million. >> And we've had things in the past where >> things have come in really low and we've had things in the past that rightly come in right at $2 million. >> It's the closest number to $2 million. that's the lowest is going to win the bid and then we'll see how much work we get up. So >> maybe maybe not. >> That's why I say it could be healthy or unhealthy paranormal. >> That's why I'm hoping the engineers come back with a scope
045of work that that works for not only to to suit the needs down in that tunnel, but also cuz talking to them initially, we had talked about going back up and go through the ceiling and stuff, but then the invasive part of that to make that happen. and we stay in the tunnels. It it doesn't change like the fittings and stuff in the classrooms. They're coming in the same place. They're not they're not running all new pipes to everywhere. So hopefully they bring us back a scope of work for these people to bid that keeps us where we need to be. Um, they even suggested that we go in with the possibility of what needs to be replaced right now and then look at the the vertical units and some of the rooms that are
046maybe some of them have cycled out so bad that they can't replace and we capture some of that and the first $2 million project. It'll be interesting to see what they say after they went through everything today. Um, I I'm like you, Alan. You throw a $2 million number out there, you're going to get a quote for >> $9.99. So, >> or or can we segment the work? Here's segment A, segment B, C, and D, E. I mean, maybe. >> So, what we've done in the past pretty good is had alternate bids. So, you do, okay, here's the main project, here are some alternates, and we've we've been able to knock some other things off for those alternates. And I think you alluded to that a little bit. So, okay, maybe the main bid is
047replacing piping in these three tunnels and an alternate is putting units in these four rooms. Well, and then you can pick and choose. It's kind of out of the cart. A lot of that is out of the cart as to okay, we can do this one, this one, this one >> as long as we get everybody to bid on. >> Correct. But it is on the alternates. That's why I think break up the main contract into segments. >> I'm quote segments. >> The segments get too small. Sometimes they won't people won't bid on it because of our proximity and the fact it's not a lot of money. >> Maybe we're an agreement. >> We got $10 million to split up to be that small. Well, we do this first. My fear is and this just
048looking forward is if we don't if we don't concentrate it, we're going to move the piping or fix the piping, how we're going to do it. If we don't make that our top priority, which that's what everybody has said all along, it's top priority to get it all done 100% the first go around, then you run the risk of running into the next bond and the price increases so much that now we got to spend most of the next bond to finish that that line of that project out. >> Um, now they did talk a little bit in our meeting with Jalter. Um he brought up the fact that maybe you don't go vertical with the units. You rebuild what's in there. There there is new technology if you go and those same same things
049which is going to reduce your cost of removing that unit patching the wall that's there. You're going to have a hole that's 8t long 3T tall and you're going to have to replace it. You know patch it inside and outside. So you save those costs just by rebuilding what's there versus replacing. Don't know if that's going to be an option or not. Um so that was one of the things they suggested, you know, which would which would stretch your money out on the next go around too. So um I don't know. The piping I think is the significant part this first go around. But >> you got to have a little trust like we did today walking in to answer your question and Adam's third text and I have a better idea. But they even
050said to us, we've seen other projects like this. It didn't come to this or you're going to go probably a little higher on this part of it. So the trust factor of hearing what they've said working with these other schools, it kind of gave you a good idea where you should be on certain parts of that project. those numbers recent with all of the macro environmental factors that occur now. >> That's what they're doing their study on and and going to get back with us by August. I think September 4th on what kind of thinking on some of this. >> So when they present the scope, it'll be the scope that they think they can get done for >> 2 million or other is usually what happens. And then they usually will throw those alternates
051in there >> um >> to make that happen. And they I mean the bad thing is I think it's they said it's been four years since they been on site here. So um and that engineer has not been on site here. So having him look at it um I like that idea better than the idea of okay we're just carbon taking everything out of the tunnels and putting new back into the tunnels. That that sounds good. But if some of that piping is good and we can utilize it and put shut off valves where we put shut off valves, >> rewrap those pipes, then >> then that makes better sense. Or as Mr. Dne said, you know, if you use use those units that are already in the room and you take certain parts out
052and I mean that that works out well. That vertical unit may look nice, but at the end of the day, we care about how those parts inside work and does it work well with our system. >> Good example. We have one room. We can't get the board. The only way you can get a new board for put a new motor. You spend about 10,000 on the two of them together. That unit's 25,000. Where do you say the thing's 30 years old? So to have money left over, I don't see that being something 2 million will happen. >> So moving back down through the list here. um [Applause] roof projects. I mean, those could have to go at any time, right? So, priority two may not even be the the right spot for them. I remember
053and trying to think back when we did the the big bond, we did a bunch of roofing and they did a roof assessment at that time. >> Do we still have that? >> I just had one done a year ago and I can get the copies. We had one done by McGuffs. >> Is that what what what you guys came up with is is that priority wise? Okay. >> And probably the number one that we're looking at right now would be your high school science in pretty bad shape. And I can share they did a roof assessment on every building for us about a year ago. And I >> that's science wing roof. >> Yeah. >> Thank you. >> And that's um It's a priority one. >> Yeah. I mean, I see the asphalt as
054a need every year, >> either maintaining or replacing. Um, one question I guess my next question, we're talking about LED lighting. um what's the possibility of doing that in house and with with our staff that we have to cut those costs cuz I mean I'm of course there's no cost in there but but rather than to throw that in the bond project and paying or is there a grant out there somewhere that they'll come in and do it for a cost savings and a cost share >> grant >> so with with some of these like this summer we use the IvyTech electrician class. We hope to do that in the future in the summer's coming up. Um my staff can do some of that, but we never know what we're going to walk into every
055day. >> Sure. They're not electricians. >> Not every one of my staff Yeah. can do that. you know, ballastes, light switches, things like that. Yeah. But I don't have not all 23 of my staff can go in and and what I want them to what I want that liability for. >> So to speak to that, we did talk to a a company um Schneider >> something that came in and did said they will do an energy audit on it and do a contract, but that doesn't pay for it upfront. they just say it'll pay for itself over x amount of x amount of years. And the other issue is some uh power providers are more generous in the grant part than maybe ours is on this campus. Um so like if you had um what's
056Duke Duke is pretty generous in some of those grants um and our energy provider is not as as generous in those grants. So we will continue to look for that because that's something that can save also on the operation side because you're paying less for electricity. We've done some out in the parking lot out of operations, but I like the idea of can we get somebody who can switch those panels out. Um because anymore it's just a switch them out, two wire nuts and you're you're ready to roll versus you had to mess with ballast at at one point. So >> yeah, switching LEDs is a matter of just pulling the palace, >> wiring the two connections back together, >> making sure that >> throwing new bulbs in it, >> but then you got to
057free up two staff members. That's >> more of the summer summer thing. >> I would ask does anybody see anything down that two and three that should be up in one or have we? >> Yeah. How many of our doors where it says install electronic entry in all doors? How many are without? >> On the exterior. >> Yeah. >> On the exterior there's just a few. Um Chris, do you have a count on that? >> But I mean a handful at each school probably high school. >> So there is a grant for that if they offer it again next year. We're set up to apply for that and it's it's a pretty hefty grant that we could probably get that taken care of. be 500k that would go away. >> Yeah. >> So that that
058is something we we started working on this year. Um government websites aren't necessarily as user friendly as we would like them to be and it took him two weeks to change a password over. Uh which then exhausted our ability to apply for the grant. >> And is that more of a safety We're wanting to change that because safety or because everybody and their brothers got keys or it's harder to make. >> Everybody has a key. Um, and no offense anybody who may work for a key company around here, but they're very expensive. So, uh, we priced out best padlocks at $110 a piece. Uh, we priced out cores. Some of them you can get, some of them you can't get. Right. And how much were those? I can't do you >> I want to say
059it's is pushing 200 bucks for all the guts >> and then we priced out just keys. So like if somebody just loses their key and we pay somewhere between $15 and $20 per key that somebody loses. So all that's expensive. >> I I guess I'd say too I look at the list. I don't think we'll get down to the level threes, >> but not >> the locker I think is one of those things that you could do without doing. Very simple. I mean, we're a school that's declined in attendance. I'm sure there's enough lockers for everybody and have to wait. >> Mhm. >> Yep. >> Um the chiller m that was just done >> in the $10 million bond, correct? It was >> no >> Johnson Controls is the one that does the communication over
060there. We have had some issues work through them. Right now, I hate to even say this, but we're doing well right now. >> Over there. >> Well, you had something. You had a part go out and that >> Yeah, that was 23,000. One year ago. >> 43,000. Those numbers tend to stick with you, don't they? Recall those call >> emotional. >> Okay. To maybe just to wrap up on Tim's question about door electronic access. If we said there's a subset of doors exterior facing that could be done. >> Is it should we separate that out? >> So >> or that's not because that's not what this number is. >> Yeah. I think that I think you leave that on that list but if we get a grant then that comes off the list. >> All
061right. >> You see what I'm saying? And I think Chris you you kind of walked through some of that with me. I think we have a shot at getting a grant here in the next year to two to to be able to cover that. >> All right, let's put that on the agenda every month to make sure. >> Yeah. >> And now that we are able to get into the government website that they have, I think we're good. And I know we pretty much we went off the list that you provided, Catherine provided, principal provided, but is there in any of these four buildings that were maintaining or I guess this one is five. Is there any needs that need facelift needs redone, new ventilation, new this that we cuz we've changed a lot of
062things in a lot of the different buildings and are we overlooking something just status quo? We're going to leave it go for now and see what happens because if we can't get to level three on these, we're not going to get these level five and six projects. Um, is there any way, and I guess where I'm going there is if it's a $75,000 to $100,000 upfit one of these rooms, should we have an an extra list, I guess, is what I'm saying. >> So, if this piping project comes in at $1.8 8 million and we have an extra 75 to spend. It doesn't catch any of these other things, but we have one room at the high school, the elementary, whatever, that desperately needs redone so we don't end up like we did with the
063art room. >> I think since we've been on board the last two years we've did that. You remember we did the home room of the high school. Last year we did the art room. We are trying when we have some left over to look at what our needs are especially in the high school what you said. >> So in September you'll approve a capital projects list those smaller dollar items. So you'll see some of that appear on there. >> We we did tour the um band tonight band room and it needs some help. And I think though it would be best to tour with someone from staff there next time so that they the people who live in it every day to decide that there's some work that needs to be done there and they
064don't it needs to go on one of these lists is you know compete like the others. >> Yeah that's so these things don't I guess where I'm going so they don't fall through the cracks. We we see them we know them. I know we're going to approve a a small capital project, small projects, but if there's mediumsiz, you know, not a huge projects, but projects that we're not going to capture and these small capital project list that we're going to approve that just go above that. Maybe we have a set aside list and and prioritize that along with it. So then if we have monies left over and we set as a board and we say, "Okay, here's our set aside. Here's this made a dollar amount." in it. It's priority one, two, three. Um,
065and then we can make decisions and then then that way we don't, okay, say it's the band room and it's 75 grand or whatever and we don't put it on a list and then it comes in um, another area needed something done and that gets done and we leave the other one off because we just didn't >> we didn't remember or recognize it. So, >> okay. And we have bond administration costs that we have to pay out of this bond, too. But they're not small. I mean, probably they're over $100,000, aren't they? >> Oh, yeah. About 125, I think. Allan, if memory serves, right, on the last, right? Because we didn't 1.875 out of the last one. So, you're you're dealing with uh >> you're not dealing with full $2 million. So a sublist to
066capture if we spend $1.8 million I said to what can we get done for that other two smaller projects that are not >> it's going to be like Alan said more like 75 where it's going to end up but >> but we still should be conscious of what that is and keep track of it if nothing else just to keep track of you know so we know where we're going. >> Yeah. >> We have a year to we have to have it spent. >> Yeah. And we don't we don't want to get to the end and be back. >> Yeah, we don't want to get to the end and I agree. >> You want to say something? >> Yeah. Going back in the short term, long-term borrowing in my head, is there anything like I'm
067thinking football field. I know we've talked about this a lot. Is that going to be a large expense that we're going to have to incur over the next 10 years? >> Probably in the next 10 years. So, we had a it's called an impact test and they go ahead, they drop this ball on there all over the place. Um they don't give you a definitive hey this is when it's going to go but he said from his projections and it looks like the use of the field 8 to 10 years. >> This was in the spring >> and that's like a complete like remodeling of the >> that would be taking up the turf taking not the base and the drainage out but taking all the the rubber infill out and then putting down new
068carpet. >> That would be a huge huge project. you you >> they probably half million I bet. >> They said half the cost for the new field is what they originally put in the field. >> You can see the new field was only 750 but >> but this Yeah, >> but they also told us in seven years we would be replacing it be half the cost. So now they're saying we got another 10 years worth of life. So who knows it'll it'll probably $2.8 million a new ter. Is there a way because that's a good point to make the decision on hey should we or should like which path financing should we go down is there way we can overlay projects we anticipate needing that are phase one time out that far to 2036. >>
069So so yes part part of what the engineering firm will do is is look at shelf life of bigger ticket items. I I can tell you just from being around here for 20 years, we're going to need at least a chiller. Um, we're going to need probably at least a set of boilers. So, those are all I mean, a chiller that that Macau chiller is a million dollars. >> We're looking at we're going to need Mac Elementary two water heaters. We'll need them with if you look, we'll need that in the in that term. >> So, yeah, I mean that's that's one thing that they'll they'll also lay out there. Um, >> and they looked at all that today, not just our piping, they looked at all equipment. >> Oh, so that's what we should
070get back from your walk today. >> Well, yeah, he's going to come back for another walk next week. >> Yeah. >> So, Catherine, he will walk. But, but you can look on this >> on this list itself and say, >> yeah, >> we've got >> parking lots that are not great, >> right? And you can only tar the cracks so many times and then it's it's not really worth taring the cracks and spraying with that black stuff that seals it. So >> I guess what I was saying is if you're saying like hey in 8 to 10 years we may have to do that. Well, I'm not I didn't even know that till we spoke about it now and I'm being asked to come up with the decision on should we extend our flexibility or
071not. It just would be good to have all of those informed >> to make that decision because possible that might make our decision for us >> if we have enough of those out in 7 to 10 years because that's the window that we're deciding now >> the flexibility. I'd be curious on those projects what we estimated. >> Another big one is water tower. >> We know that our water tower electronics is $250,000. No, >> we bought a we bought a piece off of eBay to keep it rolling >> because they don't have that anymore. So, you know that >> somewhere down the road that $250,000 and you know for us to project all that out >> I get it. >> But you know it now, right? Like just some things that we know because >>
072right >> otherwise I'm I don't I don't feel confident in making a decision. >> Sure. And we can do that >> without that. That's news to all of us today that the football field lifespan is much longer than first time. >> Yeah, I'm I'm surprised. Yeah, I mentioned that back in the in the spring when we did it, but that doesn't that doesn't stick with you. >> I knew we talked about it. I couldn't exactly remember the details >> that we had to test. >> Thanks for reminding me. >> The um the parts of it's not actually for the water tower. It's for the wells, right? It calls for water to come from the wells to go to the water tower. >> It's a walkers down that communication box down. >> So even if we
073make a decision about the term that we want to pay these bonds off, I mean, we can restructure payment terms if we need to. >> You could. Yeah. And obviously there would probably be some restructuring cost again, right? You'd have to pay something again, >> but decisions like that um aren't necessarily all written written in stone or >> so. So I I we just don't maybe that's something to also know is if we have to restructure, what's that going to cost us? >> Yeah. No, that's a good point. And I guess on the first go around, do we do we keep it on the extended and then we look at the 5 million next year? >> Yeah, because we could do the different trunches and different >> loan terms, right? We could >> Yeah. >>
074And maybe that maybe that changes on >> how far would look like moving forward. >> Maybe it's easier to get that number than it is to get the list of everything projected out. >> Sure. That's fair. So an easier interest rate >> or interest total amount to swallow does off the top of your head if any banker in the room know anything about restructuring large chunks of bond debt. >> I can I can ask Eric. We had had some conversation about geo bond and building capacity and paying back the bond quicker. So I can have a have a conversation with him about that. He's the He'd be the guru on >> Yeah, we just buy and get paid on. >> Get paid. Okay. Just so I have have things we'll come up with a a
075life cycle list of things we can come up with. Now, obviously that it's not going to be an exhaustive list, right? >> Um so we'll come up with a life cycle risk and I when we get that done, I'll email it out to you um like I did and I may email it out to you two or three times just in case you didn't get it uh the first time. Does anybody Does anybody have any issues getting into those docs at all? Okay. So, life cycle list um early payoff list or a extending either one, right? >> For the loan >> and the debt restructuring cost. >> Yeah. >> Okay. >> Yeah. >> Okay. If we would decide to go short term, which is a pretty smart thing to do to reduce those interest payments
076and then you get in the pickle, we're going to have to restructure and that's going to cost something >> probably some time too involved. So if it's an emergency expenditure, >> but the further you go without doing it, it it's good because >> your your one issue that I that I know that they will probably say something about is with Senate Bill one, how much debt you can have your your overall debt service and and what that looks like. So that's that'll be a player in that. So, if you take that shorter loan and then you come back and say, "Hey, we want to lengthen this out and borrow five more million dollars." What is what is that going to look like on our overall debt structure? And then is it going to hit something
077where we have to go to uh our monstrance or a referendum? So, those are things that they have a better grasp on. And I will tell you that they they have a good grasp on, but they don't still don't have a firm grasp on what the assessed value is going to look like and what that rebate on people's land is going to look like. >> Or if we if if our next bond is 5 million, which is a big chunk for us, and that means we don't do replace HVAC room units. We don't do something else for a million dollars. I mean, you got three $2 million projects right there, but what's the cost of not doing anything for three or four years? I mean, just restating the obvious tal >> do this and try
078to get through the piping and then hold steady and see where we end up. I mean, that's always a possibility. who want to ride a couple years, pay off some of the debt. >> If if restructuring costs of 600,000, we could do that three times, still be under 1.9 million of interest cost. I mean, I don't know. >> Okay. >> Except that restructuring costs probably have to be paid up front. Up front up front. Okay. Other things on the priority list >> like a rope a pipe break. That's that's a shingle roof out there, is it? >> Yes. I >> think the cost just it was between 350 to 400,000 a year ago. That's what it would cost. 350 to 400,000. Did I replace it with shingle or golden metal or something? I not bought
079a roof in a long time, but are the metal roofs comparable? >> Their concern is you have a lot of valleys over there, a lot of cuts. >> They were concerned about that. >> They're not they're not saying you have a lot of cuts. Allen's over there >> on my house which is the shape of a T. We just did ours because of damage and it was 1.5 metal versus shingles.5 time. >> Okay. >> For a relatively simple job. >> Other questions? Anything else you would like to see the price things go down. Gosh, I'd >> like to see the interest go down, but I don't want it to affect my investment by American >> I mean >> any be able to afford anything else. >> Yeah. Anything else? I I would like to say
080that I of course I've gotten an email about the fine arts wing. Of course, I'm not the only one that got it, but I did want to say that one of our constituents and former board members and thought that that should be a uh higher up the list and priority. But I'm just stating that to let you know that I heard his concern. >> I think that the way you phrase it though was that we would consider it not not it wasn't a matter of high or lower, then we would consider it for this bond project. for this bond project. Yes. Which that would uh prelude us doing what we really needed. >> Well, I think we covered that though. >> Yeah. >> Opportunities at the end of the bond cycle or some other way
081of funding it >> with with all these Hback the top four, three or four. Does one have to be precedent or successor? Can they all each be done in any particular order? the tunnel. You have to before you go in, >> you know, there's not one of us sitting here that knows that we don't, >> you know. I mean, it's just a priority. That's what it is. >> Is high school the only one with all the piping in the tunnels? Everything else is above, right? And did Jialter give us a an idea after they looked at it? I know we talked in the initial meeting about going above the ceiling and they talked about the extended cost doing that rather than leaving it where it's at. >> After our walk through today and them gathering
082that information after seeing it, that's the next step. Then they're going to come back and give us the pros and cons of both ways being above being below the cost of it. That's where they go next. So we can base decision on what we want to do costwise which one's more cost effective. The good part about the other that tunnel work, we'll have main shut offs in a lot of places where we wouldn't have to close down the school if we had leak. We'll have multiple ones of those put in where it might shut down a wing and we can move them. But that's one of the pluses. Um, think about if you had a leak on the west side and all your floors and everything pretty nice to have one shut off to control
083that. and the high school is probably the worst at that. So all the domestic water um a lot of the heating and cooling pipes like at the middle school have been done they've been it's newer at Macel. So that's the focus on the tunnels. So for the board meeting when we go and introduce us as initial hearing or whatnot are we able to convey that to people who come in in terms of like a project like this is what the bond is for this is the pros of doing it things that you're saying is that something that comes up at a bond hearing that okay >> yeah basically that on um the 27th we'll hold project hearing and we'll go over what that project entails and what buildings is going to entail. >> Okay. >>
084Um and at that time hopefully we'll have a little better trigger on what the price is going to be. >> Okay. >> Um and then we'll have to adopt the project resolution which means we're moving a resolution forward to do the project and then the premier bond resolution to get the bond process started. So >> you know what I just seen that uh the adopt reimbursement resolution is on the 27th. I was looking at the next one at the final one. So, it is >> Yep. >> on the 27th. So, you can scratch that one off your desk. >> So, thank you for showing us those things. I think that it's easy to see things that the public sees and that students see and that everybody sees. And you said it right. >> Yeah. did
085realize extended damage, >> right? And it's not anything that anybody's going to see, but it has to be done. >> Any other questions, comments? >> Okay. I move that we close this work session. >> So moved. >> Second. >> All those in favor signify by saying I. I. >> Oppos. Same sign.