001Good morning and welcome to the January 12th, 2026 finance committee meeting for the Lee Summit School District. We'll begin with item 1.01, music umbrella policy. Um, looking for Mr. Hall here. >> Yep. Sorry. I apologize. Yes. So, item one, the music umbrella. This is our annual renewal for our uh umbrella policy, which is a $2 million extension um for covers umbrella liability for all lines of uh liability coverage that uh up to $2 million in excess of our current standard music policy. Um this allows us to cover um or have coverage for potentially anything that may exceed that standard coverage. Um, and we have uh multiple contracts that uh require a $5 million uh liability coverage. So that helps us ensure that we have that in place as well. So uh this is $80,80. Uh
002it's a 8.26% increase and I think it's around $7500 from last year's $73,000. >> Thank you, Mr. Hall. Are are there are there any questions? I have a question, Dr. Shelton. >> Yes, Mr. >> Have we had to utilize this umbrella policy in the past? >> Yes, this is our third year um that we have utilized uh this umbrella policy. >> To what extent have we had to use it and to what what are the financial ramifications? >> So, we have not had to use it from a liability or a claim stance uh yet. Um, but it was put into place because we had uh a couple contracts um with some uh companies that require us to provide uh liability coverage of $5 million. Uh the music standard liability as I think is 3.2 or
0033.6 somewhere in that range. Um which is statutory. Um so we had to add this on to in to to get to that 5 million but we have no claims that have had to trigger the umbrella policy. Okay. Which vendors are requiring us to carry a $5 million umbrella and and why are they requiring that? >> So I I can get that information. I know at one point we were looking at entering an agreement with um rental agency for rental trucks um in uh purchasing. We had uh some other rental vehicles that we utilized throughout the district was one of the contracts that we were entering in. But I can look for that more specific information um for you at I'm not off the top of my head. I can't think of any others at
004this time. >> Okay. Well, $80,000 is a lot of money. I just want to make sure we're getting our money's worth out of it. >> Additionally, additionally, board member Haley Music um sent us a letter along with um our renewal indicating that there have been an uptick in large claims um around the state. of attorneys and and plaintiffs um bringing forward large cash settlement um request as well as those settlements being large. And so they're recommending uh additional coverage beyond the $3.5 million that we currently have in our base coverage. >> Okay. So we're doing this for defensive purposes, not really because we want to use these vendors that are requiring us to have that. Is that what I'm hearing? No, that's that. But no, in addition in addition to um what Mr. Hall has
005shared, the the current climate for risk management indicates that we should have umbrella coverage and it it is very common. It is very common among school districts to get additional coverage beyond the base coverage that music provides. >> Oh, no. I understand umbrella policies. I'm just saying $80,000 is a lot of money. I just want to make sure we're getting our money's worth out of it. >> I I agree. And um you know, insurance is you know, as you know, is um you know, you pay for it and then you know, when you need it, you're you're glad you're h you have it. >> Well, yeah, you're paying a lot of money for something you hope you never have to use. >> That that is correct. That is correct. >> Thank you, Dr. Shelton. >>
006Thank you. All right. Thank you, Mr. Hall. We're going to have you stick on though. We're going to tag team this next one. 1.02. 02 audio enhancement safety saf system. Uh we have installed safe system in two of our buildings and we are requesting to install this system districtwide. Um comes at a cost of not to exceed just a little over $3.25 million. Uh are there any questions about this agenda item? >> Yeah, I have a question. Um, so were there any updates to this contract after the pilot period? I mean, did did you learn anything new or have to make any >> Yeah, we actually we we learned a lot in our pilot period at at our two current buildings. Um, and the contract itself, no. Um, how we install and uh the system
007um use of badges, you know, th updates, you know, those sorts of things. But in regards to the contract, no. Um, in regards to how we install this product. Yes. >> Thanks. >> I have a question, Dr. Shelton. >> Yes, sir. >> Are there any ongoing maintenance costs that are associated with this project that we would have to pay uh annual fees or anything like that um for this this service that they're providing? >> There are no annual fees. you know, we will need to continue to buy badges um as we, you know, as staff come and go and badges get lost. Um that type of an expense. Uh you know, if we find that there is an area of a building uh coverage area that um you know, as as as we use this
008system, you know, we we find areas maybe that need an additional device uh for better coverage. um then then we would need to purchase that as well. But that would be I would say both the badges as well as the uh additional devices beyond what we're contracting here would be would be nominal. >> Understood. What's the life expectancy of this product? >> Uh this product has been used um you know throughout the country for a number of years. um you know let me let me get that information and get get back with you. >> I know the the company has told us the the badges themselves have a life a battery life that is expected around five years depending on usage. Um the other equipment I think it's got a um I think one of
009them said like a seven-year warranty on it. So you're looking probably a 5 to sevenyear which is very typical for electronics. >> Okay. Is this an expense that we would have we would expect to reincur in five to seven years as this uh technology ages out? Are we going to have to replace it with another three or four million worth of uh technology in in seven years? >> If I could jump in Steve I think um no. Uh and if when we do it won't be at the same expense. So right now our elementaryaries use this system for over 20 years for audio in the K through2 classrooms or speaker system. Um it's the same system and they're over 20 years old and we're just now getting to a point where we're replacing them which
010is part of the work we're using with audio enhancement. Same company we've been using with their elementarymentaries. So it it will not be the same expense and it probably will not be seven years to replace the backbones badges. Obviously they have wear and tear because they're going to be wearing them. They're wearable panic buttons. Basically what you're having, >> how much do the badges cost if we're going to have to replace all of them in five years? >> Uh they they cost $50 a piece. >> And so we're every every teacher is going to have one. So we're looking about 1500 badges or so. >> I we are looking at every staff member having one. So we're probably looking at 25 to 3,000 over the next 5year period. >> Okay. 50 bucks a piece. >>
011What's I'm sorry, sir. >> And they're about 50 bucks a piece. >> Correct. That would be around $150,000. Correct. >> That's what I was going to say. So about every every five to seven years, we're going to have a an expense of about $150,000 or so. Is that what we're hearing? >> I I would I would I would estimate that we would budget for that. Yes. >> Okay. Thank you, Dr. Shelton. >> All right. Great questions. Any additional questions? All right, moving on to item 1.03, contracts $15,000 and under. Uh fairly typical for this time of year, uh winter activities, uh upcoming spring activities. Uh you'll also noticed uh polling sites for our buildings uh for 2026. Um, are there any questions related to items that are on this list? >> No questions here. >>
012All right. Thank you. Moving on to item 1.04, contracts greater than 15,000. Every item on this list will be covered throughout uh this meeting. So, there's nothing more to highlight other than what we'll cover later in this meeting. 1.05 U enhancement grant. Dr. Berger and Mrs. Booth. >> Good morning. The um career technical education enhancement grant is a state funded grant that provides some support for instructional equipment, technology, software to make sure all of our CTE programs are industry aligned. This year the grants to for next year the grant total is $461,469. Of that the grant portion would reimburse us $291,457 which means our match would be approximately $175,011. Any questions? >> Um yeah, I'm kind of new to the language on this. So uh so you said this is state funded so this is
013from uh like desi or >> yes >> okay and and so when you say reimbursement so the cost I guess when I was reading through it I wasn't 100% clear so the cost to the district is a portion of what they're granting our teachers is that correct >> that is correct >> and it's so so all the districts are expected to pay the pay to pay us. So, is that how that works? >> Yes. We purchase all of the things that are the items that are on the grant and then I apply for a reimbursement and they send us a check that reimburses us a portion of the cost of everything that was on the grant. >> Okay. And can you explain that additional 170,000 versus the I mean because everything else was listed on
014the on the table that you attached. What is the $170,000 for? >> That's just the LSR7 match of what we would pay for the total of the $461,469. So if we were fully funded in this grant, that would be our portion that we would be paying. The rest of the difference would be reimbursed by this grant. Okay. So, um, so the amount that we're getting as grant money from the state is is about because I think what we're we're we're reimbursing half of it, I think, right? Not minus the 170. So then, so the state is giving us 291 and we're then reimbursing another 291 and then we also have to pay the 170, right? No, the the total of the grant is the 46 the total amount of all the items that we purchased
015is 461,000ish and then the grant portion of that is going to give us $291. So all we are ending up paying for is that $175,000 amount. Okay. After reimbursement. >> Okay. >> So, board member Dawson, the the total expense here is $461, and $469. >> We will make that payment and then the state reimbures us the 291457. our our out uh outlay is around $170 to $175,000. Once once the dust settles, bills are paid, were reimbursed from Desi, then our our total expenditure cash outlay is about $175,000. >> Okay. So, so the amount that you're asking to contribute to this program is is the 170 and then and then the amount we'll eventually get is the 291, right? >> Correct. >> Okay. Sorry. I just want to make sure I understood. Also, I think there's
016I think there's a typo on the summary that's accurate on the attachment and I think it's missing $44,000, but it's all on the TA table. So, I I didn't have any questions there. I just wanted to let you know that the summary is a little bit off but um on the in in in board docs but but the the document was fine. It explained it. So, okay. Thank you for answering my questions. I just wanted to understand which way the money was going. I appreciate that. >> Thank you. Well, and we'll get that we'll get that cleaned up. Thank you for for noticing that and bringing that to our attention. 1.06 First American Lease Agreement. Mrs. Gretzinger. >> Good morning everyone. Uh so this is a lease extension of our current 6 through 12 Chromebook
017lease. Um the lease extension would be for 15 months and it would take us to coincide with our K through five Chromebook lease so that we would be in a position to refresh all of our devices at the same time. >> Okay. So, I think you just answered one of my questions because I was trying to figure out why it was 15 months. It was like an odd number. Um, yep. So, okay. So, it was just to make all the leases expire at the at the same time. It had nothing to do with >> Okay. So, and then wear and tear on these. We think we can get 15 more months out of them. >> Yes, we do. Um, our current lease was only for three years. Um, I'd say a lot of times most
018Chromebook cycles go for four. Um, so we are not concerned about excessive wear and tear on the devices. >> Okay. Thank you. >> Right. Thank you, Mrs. Gretzinger. Moving on to item 1.07, Rockill Orthopedics. Dr. Linquist. >> Good morning. So, this new agreement with Rockill Orthopedic is for a continuation of services um for a 2year consecutive term. Uh we expect it to be less than 20,000 total and we're paying them a rate of $35 an hour. The services are mainly at the middle school with the rare occasion that the services happen at the high school. >> Questions? >> I I do have a question. What services are these folks providing that our own coaching staff can't provide? So, um, for example, if you went to a football game, um, and there were there was an
019injury that happened out there, um, students on the field, uh, they they walk out there, they may assess them for a concussion, um, some type of broken bone, stabilize that bone, um, assess them on the sideline for maybe a type of dehydration, but provide a an immediate, um, athletic training service, and then provide the opportunity for a conversation with parents where they can be further assessed. Uh they also stop bleeds, um wrestling matches, volleyball, whatever sport it may be. Um they stop all um blood related injuries and deal with those with gloves and and safety measures. >> Are those not skill sets that our own employees should possess? So generally our our coaches are coaching the students and then the athletic trainer does deal with the injuries that happen throughout the the event but our
020our um our coaches are trained and uh I couldn't give you specifically they have to go through two two trainings per Misha um and I could get that information for you but they are trained but they are focused on the students on the field while the athletic trainers take care of the students off the Okay. It just seems like a a fairly significant expense in light of um you know financial ramifications. But thank you. >> Thank you. >> And and just to be clear, the reason this focus is on the middle schools is because it's um because we do have staff at the high school level that takes care of it and and this is just an additional $35 an hour when needed. Right. >> That is correct. and it is a continuation of services.
021Um I have been a part of athletic trainers in the coaching um area and middle school since 2010. We've had them around. Um this is just the continuation of them. And then at the high school, yes, we do have children's Mercy um athletic trainers as well as in-house athletic trainers that we utilize at every building. >> Thanks. >> Thank you, Dr. Linquist. Moving on to 1.08 08 tuition rate. Dr. Herzog, >> good morning everybody. Um, I apologize. I'm on my phone right now because my computer actually um died. So, I'm doing this off my phone today. So, hopefully you can hear me and see me um while I'm going through this. So, first off, uh tuition rate. We're required each year to set our tuition rate um through Desi uh using a Desi calculation tool.
022I'm sorry. Uh we currently have no students uh paying tuition in the school district, but we still set a rate um if there were an instance that was unforeseen where a student outside of LSR7 uh were to attend school and we would need to charge tuition. So you can see that that roughly each uh each rate went up approximately $5 to $600 uh from last year. Uh the way we calculate that, we use values from last year's ASBR um and then break those out between elementary, middle, and high to come up with the 26 27 tuition rates. Um any questions on the tuition rates? >> Um yeah, just out of curiosity, what would be a scenario that someone would pay tuition and how long ago did we ever have we ever had anyone in the
023recent past pay tuition? As far as I know, we have not. But that that doesn't mean we couldn't. Um, so if we were required, let's just say we were required by the courts for someone to come to school here, but that wasn't funded um through some mechanism, um, there would be a tuition rate that we would we would utilize to to set that to basically allocate our expenses that would would come with that student. um out of state students who would be required to attend school here um that rate could be used uh for them. But in general in in general, Lee Summit R7 has has had no need for this because we haven't allowed students to attend on a tuition basis. >> Gotcha. And um the the calculations that you uh attached, is that
024something that Desi audits or anything like that? I mean, >> yes, the Desi provides this tool for you to be able to go through and and adjust your expenses uh based on how much you had at each level. So, so most of this is all basically broken out by ADA. So, we we look at our ADA values and then and then break those numbers out below that unless it's like a high school only expense or a middle school only expense. Um, but for the for the most part it is it is it is just it is just a tool that they give you so you can utilize it. >> Mhm. Okay. All right. Thank you. Appreciate it. >> Thank Dr. Herzog. I'm going to ask you to continue with section two of finance. All right.
025Well, I think he is trying to get his computer up and running. We're going to jump down to section three facilities. Mr. Guerrrell. Oh, Dr. Herzog is back. >> I apologize. As I said, I'm on my phone and it kicked me right off as I was in mid-sentence. So, I I apologize. Was there anything else on the tuition rate after I finished what I was saying? >> Nope, nothing. Thank you. >> Okay. Thank you. >> What you uh Thank you, Dr. Herzog. Would you continue to section two financ? >> I am happy to continue on to the next section. So, the finance can uh section. So, first of all, transfer funds. So, uh relatively standard transfer this month. uh $4,824,987.94 uh moving from uh fund one to fund two in order to cover expenses in
026fund two. >> Any questions? >> Nope, none here. >> All right, moving on to the treasures report. Uh start with the revenue and expense report. So, um, starting in in the the revenue section, I I will just say this about about this report, this is not a great summary on the revenue side, but it is very expected um, based on everything we've been we've been informed of from Jackson County. Um this this was a very I was not surprised by this report because what it will what it shows is a a shortfall in fund one which we've been having all year u and a larger shortfall in fund one very much due to the fact that our taxes have been delayed. Um so the deadline for taxes is is now January 31st. That that's one
027piece. But we also know a little more about senior tax credit and commercial reassessment where we've got a pretty good idea that that's going to come in about $5 million um in revenue losses for both of those combined roughly. So So again, fund one we are running behind budget um based on where we were last year. We're also running behind budget based on overall um dollars we've received. I would anticipate probably not until the February finance committee meeting that would um so actually in March. So looking at February expenses because we'll still receive quite a bit of Jackson County revenue towards the end of January. Uh if the deadline is the 31st, some of that will spill into February for sure. So we will not likely have a full picture until the March finance committee
028meeting on fund one revenue. Uh but in general it's running behind. It's been running behind and and so far we have not not seen any change to that and I don't foresee a change to that either. Uh I I think that is going to continue to occur throughout the entirety of this fiscal year and that that is truly why fund one looks the way it does. Now fund two um quite honestly fund two is in a very good place. Um and that is mostly um state revenue that we receive uh both on the foundation formula side uh also prop C from the state um that is running relatively close to budget um and and and relatively close to the actuals from last year. So I would say from a a fund two perspective uh on
029the revenue side things are looking looking very very positive um that we're going to hit our budget mark on fund two. And then the next three debt service um is funded through local um taxes for the most part and that is that is running a little bit behind last year just like we would have expected because taxes are behind. uh bond fund that is all interest revenue uh that we're receiving on that and then capital projects is uh we're starting to see some some money coming in locally on capital projects as well. Uh that number will go up as the spring goes on. Moving over to the restricted side um I will make a couple comments here on the restricted side mostly around nutrition services. Um if you'll notice nutrition services uh revenue to date
030uh outpacing last year significantly. Um so that is that is really due to um a slight increase in meal prices from last year which I've mentioned prior uh to this meeting. Uh when you look at the expenses in a minute um and then where we are overall nutrition services is in a very very good place in comparison to last year. Uh activity LSEF um running very very close to last year and then before and after school services um revenue is is is coming in where expected. So I want to pause for a moment and just see if there are any questions on the revenue side before I move on to the expenditures. >> Um just sort of a tangential question on the restricted funds on the nutrition services. Um do you know what month the
031the board will get an update from the Pratt that took place in the winter or the fall? >> I I do not know that quite do Dr. Shelton May he was part of that Pratt. I was not part of that Pratt. So I don't have an answer for you. Well, board member Dawson, uh, it was provided in one of our weekly updates. You know, I will, uh, pull that back up and put that in this week's weekly update. >> Oh, my apologies if it was in one of the weekly updates. I Sorry. I I should have I should have read it then. >> That's okay. There's a lot of information coming coming your way. So, I will pull that back up and and get that get that out this week. Oh, >> no. That's that's
032fine. If it's in there, I'll I'll go back and find it. Thanks. Okay. All right, I'm going to shift over to the expense side and and I will say this about the expense side. We th this budget um if it were not for the revenue shortfalls, this budget that we have set currently, I believe would be a very solid budget. um because if you look at the revenue um percentages to budget this year compared to last year, we are within 400s of a percent um in fund one and fund two this time this year compared to last year. Um now I got to give the credit to uh Mr. Holder who created this budget. I did not create the budget. He did when he was here. But that is a that is very good budgeting
033uh from from the expense side. And if we if revenues were coming in the way we had projected and been told, we would be looking at a very solid budget at this point. Um so on the expense side, um you can see that like I said, we're at 46.53 in fund one and fund two combined um compared to 46.57 last year. So running very true to to budget on the expense side uh in fund one and fund two. Um, debt service. Uh, we should be running true to budget because we've our expenses come out twice a year basically in debt service. Uh, bond fund. We we are spending our bond dollars. Um, we we need to continue to spend our bond dollars um throughout this year and and see that percent of our our dollars
034spent go up and which we will. We've got bond projects that are going to start u moving significantly here in the spring and summer of this year. Uh, and then capital projects, we are consistently using those dollars. uh we've used about, you know, 50% of our budget so far this year and plan to expense the rest of that throughout the school year. On the restricted side, nutrition services, uh I did mention um prior in the revenue side that I I feel like that is in a very good place. I will also say on the expense side, if you notice percentto budget, we are you know roughly 5% uh lower on expense to budget this year than last year. So when you when you combine some revenue, some increased revenue and a little bit lower expenses,
035that that is that is very good work from our nutrition services staff. Uh Miss Danella and everyone who works in that department um needs to be commended for the work they've done so far um in their in their budget and that that will show up at the bottom when we talk about fund balance and where we're at this year compared to last year. And then activity LSEF again though that that one runs pretty much uh break even. Um on the expenses and revenue side um and then before and after school services um in terms of expenses to revenue we are we are doing great. Um so we are running well ahead on the revenue side from the expenses and that also is reflected below in the restricted budgets I'm sorry restricted fund balances. So I
036want to pause and just uh any questions on the expenditure side. >> Nope, no questions here. Thank you. >> Okay, let's just talk about fund balances briefly then. Uh and restricted side, I won't I won't go into a lot of detail because I'm not um I feel like those are in a very good place. uh nutrition services even though it's lower than last year at this time the the rate at which last year's nutrition services fund balance reduced was significantly higher than this year um we started the year I believe with just a little bit um over a little bit under 900,000 so fund balance and nutrition services was 836 83788 to begin the year and that's only reduced down by about 30 uh um $5,000 throughout the year. Um that is that is that
037is tremendous. Um so that means they are they are basically running almost break even which is exactly what we would hope for nutrition services activity LSEF and before and after school services. Again fund balances are in a very good place. So not not truly concerned there on the overall operating fund balances. Um again expected uh with a revenue shortfall as significant as we've seen in in in Jackson County local taxes. Um it's it's no surprise that we are well behind our fund balance from last year. Um both in a percentage and and and overall number. Um so we're we ended the month of December 25.4%. Uh which is is probably as low as we've been in a long time. Um we should see again we should see some more Jackson County revenue coming in. Um
038but I would anticipate that fund balance continuing to track below where we were this time last year. Um, and again, I would say by by by the March finance committee, we'll have a much better picture of of where that's going to stand because most of our Jackson County dollars have come in at that point. So, I'll pause for a moment if there's any questions on the overall revenue and expense report for December. >> No, thank you so much for that summary. All right, then I'll shift over to the investment report at this time. And there's really not a lot to report out on the investment report truly. Um, there will be soon, but there's not a lot right now. So, I'll start with uh UBS at the top. There is going to be a maturity
039in the month of de the month of January which u I've already mentioned prior to this that that the plan with that maturity would be to um only extend the next investment out to roughly November of of of this calendar year November of 26. So when we reinvest that that will be a relatively short-term investment. We'll try to maximize the percent yield that we receive on that, but we'll keep the investment term lower so that we have access to those dollars in the fall of of the next fiscal year, which is when we'll need them um potentially need them. I I do have a very strong feeling we will need those dollars. It doesn't mean we won't reinvest them after we receive the revenue, but we would be able to utilize those in addition to
040our our liquid investments in the fall of of this fiscal year. So that that's really the only piece of the um the overall investment report that really needs note. Everything else, if you'll notice at the bottom um where we are with our our operating funds in most of MOAT, um those those are those yields are are dropping. Um you know, we're now down in the the 3.75 range. Um where we started the year closer to four. Um that is just indicative of the markets overall. Um where interest rates are dropping a little bit. So, our our yield's going to be a little bit lower there, but but still very very very healthy and and very happy with those. On the bond side, you'll notice we have both some liquid and some term investments there. Term
041doing better term looking about 3.97 U as opposed to 3.75 on the on the liquid side. But year to date, um total invested right now $151 million invested including bond funds. um that is up from the prior year but we did not have bond dollars invested last year so that is why that that number is significantly higher than it was uh last year so I will pause for a moment any questions on the investment report >> uh so so yeah you did already talk to us about um kind of liquidating some of those funds to have them for the for next fall um so I totally understand that so I take it the decision to reinvest from January 31st through November is that uh we're pretty confident we're going to get a better rate than
042those those liquid rates down below. Right. >> That is yes. The the the answer to that is yes. Now, if if we do do an analysis and it's better just to let it sit in liquid if we're not going to get a better rate of return, we can certainly do that. Um but but there but typically our our term investments a little bit further out have been better options for us. Um, so we'll certainly analyze that and decide where where that needs to go. Uh, now we certainly could just let it all sit in a liquid account, but I I I think all three of our financial firms, MOSIP, UBS, and MOAT, would would probably advise us to go ahead and find a shorter term um because we don't necessarily need access to those dollars
043right now. >> Thank you so much. >> You're welcome. All right, if there are no other questions, I'll move on to the balance sheet, which will be a relatively quick summary of our balance sheet. U because the balance sheet really just aligns to the revenue and expense report that you've already seen, but it does show you um at the very very you obviously see our our fund balance changes from the beginning to now. Um you know, most significantly um typically changes you'll see is in the operating side. Um, I have mentioned up to this point that the capital projects has been running in the negative for the past couple months and as you can see we've had some revenue come in from Jackson County that now has put that fund back to the positive. Uh,
044which is what we always like to see. Um, so so overall I would say from a from a you know where we expected to be and where we are this is exactly where I would expect us to be right now. And uh we will we will likely look at some potential there's likelihood that we might do some some amendments to the budget on the revenue side here in the middle of the spring once we get through most of the the revenue that we feel like is going to come in from Jackson County. I don't I at this point I don't see any need to do an amendment on the on the expenditure side. Things look very very good on the expenditure side, but we may need to uh amend revenues. even though that that's not
045required, it would probably give us a better outlook of of where we're going to be to end the year if we do a little bit of an amendment here in the spring. So, I will keep you updated on that as that comes forward. But that's the end of um the typical items for the finance section. Any questions on the balance sheet or anything on the finance uh treasures report? >> No more questions here. Thanks. >> Thank you, Dr. Herzog. >> Thank you. I think the only other item on the finance section is the the resolution authorizing the refunding of our 2016 certificates of participation. So, this is our lease purchase um with the Missouri Innovations Campus. Um and essentially I'll I'll give you the the quick version and then I'll answer any questions you have.
046Um the quick version is uh Raymond James, one of our bond underwriters, came to us uh with an analysis of this and said that if basically if if if we wanted to refund this at this point, we could and it would be a cost savings of approximately 600 between 600 and $700,000. And I think that that most recent estimates been about $629,000 cost savings. And that certainly was appealing. Um, however, I think it's also worth noting that the school district, even though we we do budget for these expenses, we receive the offsetting revenue from the University of Central Missouri to cover these expenses. So, the reality is this refunding, while it will save money, really won't save LSR7 money. It it truly will save uh the University of Central Missouri, who is a partner with
047us at UCM. Uh we met with them. They were very very comfortable with us moving forward with this. they know that there will be some obviously some costs they will incur to make this make this happen which just get passed on through the the uh the invoicing that we do to them. Um but overall they're going to see a a reduced amount they have to pay out in debt service um to pay off uh this lease purchase. So um very good opportunity for the school district and for UCM and happy to take any questions on this if you have them. >> Yeah. Is this costneutral to LSR7 Dr. Dr. Herzog, >> it is cost neutral to LSR7. We will not incur any costs. Like I said, what what we do whatever the cost is going
048to be for the lease purchase uh debt service payments. So both principal and interest, we we account for those in our expenditures. So they're they're in our debt service budget. However, we also account for the revenue from UCM to offset those expenses. So we we 100% build this back to them and then we receive the offsetting revenue. >> Thank you Dr. Herzog. >> Dr. Herzog, there is one other item in your section, the 2425 single audit. I believe it's the federal uh program audit that was delayed this year. >> Sorry about that. I skipped over that one. Just skipped over an audit. Nothing big. Right. So, so I I mentioned this last month and I apologize for skipping over that. Uh last month we we did approve the uh the state u and fiduciary portion
049of our audit. So we were approved this the majority of our audit from KPM. This portion was not available to us at the time um because of the federal government shutdown. the the KPM did not have the ability to do the federal portion of the audit uh in its entirety. So they audited they came in and audited title one and special education part B um in the fall and then compared those uh values to what was expected. There were no findings um of any kind in the federal portion of the audit. Um the state extended the deadline for the audit the the federal portion of the audit until the end of January. Um the regular audit was due at the end of December and that's been submitted to DESIE. Uh this audit uh is due
050by the end of January. So that's why it is on this month's agenda for approval. Uh we will not go through a full audit committee review of this um like we did with the other portion. Uh but John did mention this portion of the audit uh during uh our our our audit committee meeting and uh he was able to bring copies of the federal portion to hand out which you the board received those at the December meeting. So, any questions on the single federal audit? >> No, I feel like he did a great job of summarizing it for us back in December and giving us that sneak peek. So, looks good. >> Very good. >> Okay, I think now that does actually conclude the finance portion of the the agenda. Thank you. >> Thank you,
051Dr. Herzog. Moving on to section 3 facilities uh 3.01 ATG RAM industries contract. Uh, Mr. Guerrrell. >> Right. Thank you. Um, this item is related to the 2025 bond project for um, synthetic turf installation at our high schools. Um, multistudio is the architect uh, that is leading us um, in this process. Um, we had a district team uh, that work with them to provide feedback. It was all of our athletic directors um, some other school administration and our facilities team. Um, so we issued an RFQ um for this work. The RFQ involved um replacing the turf at the soccer stadiums at all three high schools. Um, new turf at the baseball and softball stadiums at Lee Summit North and Lee Summit West. Um so we had seven companies um respond to that RFQ and our
052evaluation team um evaluated those and four companies were selected um to come in for personal interviews. Um we interviewed them and then also took a day and um drove all over town and and went and saw products. Um and uh that was very informative in our decision. Um we then at that point issued an RFP essentially bid documents um from multistudio to three companies and um received bids um from there. So the the low bid was from ATG for approximately 9.2 million. Um, I will say that um, this total bond project, if you go back and look at the bond um, award was a $9 million project. We have some money set aside for the soft cost. There's contingency um, equipment money, of course, the design fees. Um, we don't anticipate spending all of that,
053but the uh, there's 8.2 million right now set aside for the construction part of this project. That initial budget was based on um just turf originally. And as we got into the scope, it became apparent that uh batting cages, some additional fencing, some plaza area. There was just some some peripheral work that needed to happen um along with this project. So, we will fund um the balance over the project. There's the maintenance and repair budget that I'm completely comfortable with. Um utilizing a portion of that money to cover the balance. Um we were planning on this overage from the beginning and um are excited to to get this project started. Um I will mention also that ATG um was the company that installed our turf um through the last round of projects in 2020. They
054did baseball softball complex at um for Lee Summit High on the East Trails campus and then also um replaced our three football stadiums. Um we've been very happy with their turf. Um if you go out and look at them today, they're um they've been out there for in their fifth year this year and um still look brand new. So, um, if you look at the attachments, there's a a detailed, um, product description and some information on ATG if you would like to look at those. So, I'll be glad to answer any questions you may have. >> Now, Mr. Guerilla, I have a couple of questions. One, what is the life expectancy of this product and what was the delta between the low bidder and the other biders? Yeah. So the um our high bid was
0559.9 million. Um we had another bidder at 9.5 and then ATG was 9.2 9.3. Um so it was from a bidding market standpoint, you know, less than 10% swing on the bids, which uh um which we were pretty happy with. the life expectancy. You know, there was a time when you would um in our long-range master plan, I mean, you would typically want to get 10 years out of turf. Um I will say with the the new turf that that ATG is installing, we're we're planning on a much longer life than that. Um, we went out as part of our site visits. We looked at the gardener fields there were they installed I don't remember how many fields a lot of fields out in gardener and uh they were close to 10 years old and
056honestly we thought they were brand new. I mean they were they were in really good condition. Um the reason we bought the ATG turf, the ram turf in the first round in 2020 um is that we went out to Belton. Belton at the time had a I want to say 12 or so year old field that still looked in amazing condition. And actually Belton's still playing on that field. It's now um gosh, probably 17 18 years old. So um I don't know, we're just going to kind of wait and see. A minimum of 10 years, but we really think we're going to get um probably 15 years um conservatively out of this product. >> Thank you, Mr. Guillo. You know, board member Haley, as you know, some some of that life expectancy will be determined
057by our maintenance plan, and we've got a maintenance crew and the equipment to maintain the turf. Um, you know, there's a there's a schedule of maintenance for that turf, and we uh we follow follow that and, you know, as we take care of it, um it has uh the ability to last uh many more years. So we we feel confident that it's a good product and that we'll get good use out of it. >> It certainly sounds like it. Thank you, Dr. Shel. >> All right. If there's no other questions, I'll move on to the second agenda item. Um >> Mr. Morell, before before you go on, I board members and anyone who might be watching, you you can tell that our our system is working slow today. Um not quite sure what what's causing
058that. Um, so just be patient with us here from a visual standpoint. You know, we'll cover cover the topics. Um, and anyone can go to our website and go to our finance committee agenda uh that's public and publicized. Uh, go there and take a look at these agenda items. But for today's meeting, the systems system is a little sluggish. Okay. The the next item is a contract with um a contractor, the Wilson Group. Um the background for this item is related to the the restrooms, the singleuse restrooms that um are at Lee Summit High School. Um they were installed in the 2020 bond project. um we had become aware over the last year or so that um there are some compromises in those enclosures that um had created an issue or two um essentially what
059we're talking about is um any gap that could have um a cell phone you know slid through it. And you know part of the reason that that wasn't addressed at the time some of it was just cost evaluation. Um, anytime you enclose a room, um, it's required that you have fire, um, fire system devices as well as fire sprinkler in the in the room. And so, um, we are moving forward now with a a proposal to, um, fully enclose those rooms. And, um, it does include all of the code required elements that, um, we'll put in there. We are proposing this um as a co-op purchase. Um small projects like this are um can have a lot of additional soft cost if we hire an architect and put together plans and specs. Um we have
060architects on staff that not from a liability standpoint but at least from a design direction and meeting um code compliance can give um good direction to contractors on this. So um we work through unit pricing with a contractor. we receive a a very detailed breakdown of um of every hour and the materials that are provided and uh that lets us remove the soft cost and just um as efficiently as possible um proceed with projects. So um this project will um be able to be completed through the spring semester if it's approved. um they have built into it some um temporary barriers so they can close off certain areas, work um work one area to the other and complete this um through the spring semester. So I'll be glad to answer any questions. >> Yeah, I
061did have a couple questions, but I think you answered all of them. So So you weren't aware of this issue until this past year? >> That's correct. >> Okay, got it. So So >> how many dollars are we talking about, Mr. It's approximately 75,000. >> 75,000. Is the vendor that we bought the material, the the original um construction material from, are they um going to work with us on that since their product has got some deficiencies or are we on the hook for the the entire mount on this? the system that was installed was installed um according to the design that was put forward. So there really wasn't any um any liability from that standpoint. Um it was a toilet partition type system. Um and uh you know just like typically with a toilet partition
062now you've got a couple of feet over the top of a of a partition. um we ran them up really close to the ceiling and and really close to the floor, but even from a door standpoint um just a a half inch gap can create enough of a of an issue. So like we're putting door sweeps on the doors um and additional filler panels to close them in. >> Okay. So did we design the system or did someone else design the system? Yeah, our architects um as a part of the Lee Summit High renovation project in 2020 um they designed the initial um toilet enclosures. >> Okay. So, the original shortcoming in design lies with those folks and I guess they probably didn't anticipate people sticking cell phones down there and taking pictures of folks.
063Yeah, I I wouldn't necessarily like I would be more than willing to go back on someone if we felt like there was some negligence, but um I really wouldn't call it a shortcoming. We were just making decisions with you know what we felt was the the best direction at the time and uh you know sometimes hindsight just uh gets the best of us. >> No, I understand and and I'm not saying anybody did anything negligent. It's just that we're we're having to come up with $75,000 to fix something that >> we that could have been fixed up front. I'm just trying to figure out how we can avoid that moving forward. >> Well, I I believe I believe you know in the future um if we uh design gender genderneutral bathrooms in this way, we
064will ensure that the enclosures uh are floor to ceiling with the door sweeps as well. and have all this all these features built into the original design. >> Sure. >> Yeah, we keep very detailed design standards. So, you know, and we just we learn our lessons with every project and um when things come up, we get them incorporated into our design standards so we can communicate expectations to our design teams in the future. Um, so, so when this was discovered about a year ago, was it discovered because of an incident or was it just discovered that there could be an incident and we're trying to mitigate risk? >> Um, that was a student administration issue. I'm not aware of the um of the exact incident, how and when, and who discovered it. Um I was
065just asked to to fix the system. >> Yeah. Build building administration came forward with the request to >> uh address the issue. Um I don't know if it was an issue that uh rose from a specific incident or if it was a an issue that they you know as they live in the space you know live in the space then all of a sudden you know things become evident to you. So, but it came forward from building administration to make the request to uh fully extend the purchase. >> I believe the board was informed that there was an incident of a a cell phone being used underneath the doors if I'm not mistaken. >> Okay. All right, Mr. >> Mr. Grail, thank you very much. >> Moving on to item 4.01, 01 future agenda items.
066Uh today's agenda, this month's agenda is full of a lot of important items that we've discussed, but as we look forward to February and March, there are a number of items um that are are coming your way. I I have it pulled up and we're trying to pull it up on our screen here, but uh in the coming months, we have roofing contracts coming your way. uh uh benefits administration uh out of business services uh the contract for Greenwood Elementary um coming to the board in February. Uh Lee Summit North HVAC installation uh which is a seven uh $7 million project all in. Um today we did a parameters resolution for this um certificate uh of participation but uh in February we will do a parameters resolution for the sale of our second trunch of
067bond funds. Uh you may recall that we have around $180 million that u we will sell in the coming uh months or or maybe years. We're not quite sure if we're going to sell all 180 million in March, but our goal is to bring a parameters resolution to the board in February with a likely sale date of some or all of those bonds uh on March 2nd of this year. So, there are a lot of things coming, bus purchases in the coming months. Um, uh, so get I mean, if you have an opportunity, take a look at this list. As always, if you have any questions about any items that are are coming to the board, please don't hesitate to uh uh reach out and and ask those questions. >> Thank you, Dr. Shel. >>
068Thank you so much. >> All right. Before we close today, are there are there any other questions or comments that uh need to be made? >> Nope. Thank you as always for everyone's uh preparation and time into putting these summaries together for us. >> Yes. Thank you so much. Everybody does a great job. I appreciate it. >> Thank you. Well, we appreciate you as well. Have a wonderful day. This concludes our finance committee meeting for uh January 12th, 2026. Thank you. >> Have a great day.