001missed your phone call. >> Oh, no. It was about schedule, so I solved it. But thank you. >> Pardon? >> I was around last night, too. Glad I didn't tag in. >> My kids are going away for the model UN tomorrow. He's like, "Oh, Brad, you should try using Gander." session can't. It's good though, Tammy. I really want to try it. My kids both delicious. >> Sorry, but >> that's one. >> Yeah. And I looked at their food online. It looks delicious. My husband will occasionally on Friday nights ask me to cook up ramen's tons of people going in and you like mushrooms, right? You like mushrooms. Okay, so they have a burger this month that is their special mushrooms on it. It is so good. I'm telling you right after meeting another >> because
002I lost my glasses and I found him again. We are starting this meeting late. >> Few minutes late. We're not going to quibble. >> Thank you, Lori. Well, let's open this meeting. What's my next step? Guidelines for public comment. >> Well, we don't have anybody. Suits, you got any public comment for me? >> Not yet. >> Okay. Thank you. No public comment. We'll open up our first order of business, which is who you work with. Now, let's get this thing. >> Let's get on here. >> What is our first order of business? >> Summer work bids. >> Dig in. >> Summer work bids. >> Oh, go ahead. S. Um, so we said that we would bring a update back to fiscal committee after we had our bid opening on uh at the end of February
003for our summer work at the high school. Um, summer work at the high school was divided into two bid packages. Uh, basically inside work being bid package one, the outside work being bid package two. And the uh kind of the the impetus for that was uh it was really hard for our survey crew to get outside and do survey when there was all kinds of snow on the ground. Uh so luckily we had a little break in between where uh our uh civil engineering partner would be able to get out and do that survey, put together the plans. Uh bid package two will hit the street at the end of this month and uh it should be it will be a really short bidding window uh because it's pretty simple. The work in there is
004pretty darn simple. Um so we're expecting to have those hard numbers back. Um so for the uh two um two parts of the project that were put into bid package one uh remember we talked about three phases of projects. Uh phase one being projects that would help the high school operate more efficiently um as it is right now. Then uh option two was modifications that we made to the building to accommodate um transferring or grade level realignment where we might bring more grade levels up to the high school. And then the third package was the the outside or the third option was the outside play space for kids um if we did that great alignment. Um bid package one came back uh over what we expected. Um, we were estimating to around um, uh, lost
005my train. We were estimating around $300,000 for bid pack one and then around um, sorry my thing here because I did load up the nice board report that I wrote up for you guys. So, I apologize. Uh but so we were estimating about $360,000 for the second part of the project, about u 180 for the first part. Uh when our results came back, bid pack two kind of played um real close to that number, but bid pack one or option one came back about $200,000 more than what was expected. Um couple reasons for that. Uh the estimate that was created was created before we did some work with our focus groups where we gave the teachers in the building and the the folks that work in the rooms the option to say hey what this
006is what we're thinking what would make it better what would make it worse how can we make sure that what we're doing meets the needs of new in this instructional space. So there were about um five or six different things that we added in uh including some u lookouts for appliances and appliances in certain areas adding like we had estimated that we would put one stove in um the multi-purpose room to face classroom. The feedback that came back was well if we're going to have a full class in there we really need more than one we need two or we need three. So, there were there were multiple different things that added up to about $100,000 in additions. Um, there was also some things in scope um that we looked at and said, you know
007what, maybe when we did the design, we wanted to redo the flooring in this room that was like a a $20,000 thing. Maybe that's something that we can do without, you know. So, we have additions to scope. At the same time, we also uh identified some value engineering items that we'll work through with um the folks at the high school and those focus groups to say, "All right, we know that we're above what what can we make work?" Um and then um the other part of it, I mean, there there was some just some signals uh from when that estimate was made. Uh we talked a little bit about you know um um cost increases uh due to outside um things going on and people needing to forecast that. Um and then also one thing
008uh is that uh with um with this work there are general conditions uh things that need to be on site to facilitate the work of the construction that aren't necessarily construction stuff. So that is the dumpsters, the barricades to keep people out of areas and things like that. All of those costs were wrapped into bid pack because they they could be there if we're doing work regardless. So the dumpster that we're paying for in option one. So I keep saying bid and options. So I apologize if I'm messing people up here, but the dumpster that we paid for in option one will also facilitate work that's done in option two if need be. So, some of those costs are frontloaded in there as well. Um, so overall, like I said, we're about the the estimates
009came back $213,000 over. Um, right now JP Cullen is doing their due diligence to work with the biders um to see, you know, what the scope of those bids were, see if there's ways that they can reduce the cost of their bids. We also reached out to a couple people that didn't submit bids and say, "Hey, why didn't you submit a bid? you know, what was holding you back. Would you be willing to, you know, if we answer some questions, would you be willing to bid to make it a more aggressive uh bidding uh area? There were some areas where we had excellent coverage. There were some areas where it was hard to get bers. So, uh all those things are kind of working. And what our goal is then is to bring a GMP
010amendment uh to the school board at some point um next month to um either to authorize us to enter either into work for option one, option two, option three or whatever of those options we choose to move forward. >> I just want to make sure. Go ahead. Go ahead. >> I just want to make sure that I'm reading this right, Kevin. So, I always appreciate your explanations. They're generally very very helpful. On the the piece that you gave us on page two, you have the preliminary estimates before design and then you explain that things jump and then it says after reviewing bids, the costing for the project options is as follows. So that those three numbers 492,000 336,000 and 426,000 those are our best estimates at what this projects these projects will cost. Is that
011right? >> The costs at bid over. >> Okay. >> So or those were the and and the way that the GMP works is we are working with JP Colin as our construction manager. That's kind of where the at risk comes in. Basically, they take on the the the biders that they select and we get a maximum price at a certain point in time that we enter into the agreement and that's our top dollar. That's what we put into the project for the expectations that were in the bid package. Now, if we come back and say, "Hey, you know, all those faucets we want that were chrome, we want them bold out." that that's a change order and that goes above the GFP, but that's kind of that's how we set it and uh we've been
012working very strongly with Cullen um on how comfortable they feel with their civil numbers that would they be willing to enter into that GMP number with us before we get bid pack 2 or not depending on the timing and how we want to advance things and they've been uh they've been pretty positive for that. >> Thank you. Any other questions? >> So, go ahead. >> The 1,26 254,000 number is within our um fund 46 limit there. >> We definitely have that much in there. Um we just need to make hard decision about how much we want to allocate to a project and how much we want to pull. >> Yeah. Beth, we got 2.2 million in there. >> 2.4, I believe. >> 2.4. >> I do. Yes. Um, I could double check, but it's not
013on my screen right now. >> This uh readout that we got, it said there was 2.2 million in the fund >> stated there was 2.2, but you think there's 2.4? If if you are getting actuals, I can't check right now. So, I knew it was the gotos. Yep. >> Yep. >> Go ahead, Tammy. >> Okay. So, I guess I'm I guess I'm looking for a bit more explanation on option one because the increase is more than the original option estimate. So like I guess what would cause the estimate to be less than half of the job expense? >> Um so uh the big one uh was carrying general conditions forward. So the like I say the rents the job site access the the things that have to be on construction site. when they did their
014estimate, they use like a a 10% figure. They had a number that they had been very successful with, so they feel comfortable on that percentage. When they were doing their estimate, they applied it to the the total number of product. Well, now that they're actually estimating and they're looking at it, part of that is all a lot of those numbers are frontloaded. Um if you if you look through it, I believe the option two was 34 and it actually came in at like 335. So there's a little bit of transfer there, but I think um not all but some of that number might have been that those general conditions are actually being realized earlier in in >> right. They want to be paid for their Yeah, I totally get like I would add it if
015I was running a construction company. I I'd add the dumpster in the beginning too. I totally get it. Um other things are like there there were some specific things in option one like that's where we talked about the multi-purpose room the CTE area that was the thing where going from one oven to two ovens there's electrical cost um there was a request to put countertop in a lot of the room to facilitate it being a computer lab as opposed to just open space with tables. So that was an ad that had a request to add that happened after we initial initial. None of these thing I mean we have the option I mean we can go back and work on what we call value rich hearing exercises which is a great term for how can
016we cut stuff out back to our number while making sure that we're meeting the needs of what the the project is. >> Okay. I guess maybe I'm just a little on the I'm assuming maybe you know what the room's going to be used for. Do you know or is this just like a general purpose any class can be in their kind of space kind of is that the deal with this room with which particular room? >> Multi-purpose. >> Option one, the multi-purpose room. >> Oh, it would be the CP area. Um the idea is that uh if we um if our pro our programs are growing and they're hurting for space, we might possibly need more kids up there that would park uh options in CTE, face art. So, this is kind of a multi-purpose
017space that's being set up that could be that classroom that would allow us to teach that class and not really knowing what that class is. So, we're trying to outfit it to be a mobile computer lab or a foods classroom or be a um art classroom possibly or anything that in that vicinity that can handle an overload. So, it's kind of a catchall. So, you know, when we went into this, we we were like the initial estimate was basically planning on wiping the room clean and we as the district would buy some tables. There was no countertop in that estimate. Well, when it was as a computer lab, that really doesn't work. If we have tables, we want countertops. So, we put the computers in things like that. So, so the focus group really the
018focus group stuff uh was really important to us to make sure that the the needs of the of what we're designing the space for are being met. So, we're not uh not doing things the right way. Um and I will say some of it is is came in higher. Um there were a couple trade packages that just weren't really aggressive that we thought might you know at at the time of posting we had one electric and that it's a pretty decent amount of work. So, I I have faith that um when we're ready to sign a contract or when we're ready to bring numbers to you, that number will option for. >> Okay? >> Whether it's through uh value engineering options that we make on our own or whether it's, you know, the work that
019JP Con is doing to help work with vendors to get that number, >> but it is hot. Not trying to. >> Yeah, you're just giving the facts. Totally get it. Thank you. >> Here's where we stand. We're $115,750 over right now from the original bid, right? >> Uh 213 on >> Yeah, it's $115,750. And then I know that um Okay. Yes. Good. Because we are seeing we're estimating that we're going to have some savings on option three. So you could possibly even it out. >> Possibly. >> Not not back to zero. I don't think we're back to zero, but I think we'll be able to get lower than where we are now by >> Go ahead, Lori. >> Okay. So, as a former estimator, this is very familiar pattern, right? These preliminary estimates are what
020Margaret would call walking around numbers. Something to start the conversation, right? Okay. So, so you can kind of like sort of get in the ballpark. That original 215 that just started the conversation. Now, the option one, two, and three here at the bottom, it has a not to exceed price. That's very important. That means that they have to they they have to abide by that price. And if they goof something up, >> I don't see anything in writing yet. Do you? >> I saw not to exceed in there somewhere. >> Is it in here? >> Okay. Very good. So, so that's the difference you're seeing is that the initial estimate wasn't really an estimate. It was more like a shoot from the hip. Let's talk about this. >> You're looking work for government >> or
021work for price. >> This is how you start. >> And it's a scrappy. >> Well, we're 115750 off. So, one way or the other. Are we ready to go ahead? Go ahead. So, are are you looking for recommendations or is it just more of an update? >> I honestly don't know. We're looking for some guidance as to what we need to be prepared to bring to the board for a final resolution. >> Yeah. >> Um, and what the board would want to see on that. I mean, are we bought in on seeing the numbers? Is all three options still something that that is being thought of? Is it something where you're signing or what that? >> I'm looking for guidance. >> David, go ahead. >> Are the bids still open? >> Uh, no. The Well,
022the the bidding deadline was closed uh from February at the end of February. Want to say February 27th was bid date and now the bids are being >> Lori. So, so I would say very common, right? You don't end you don't stop with that first round of bids, especially since all the bids didn't come in. So, I I would propose that we let Kevin chase that around and go find out why people didn't bid. Sometimes it's some dumb reason like they were busy. >> Some suggestion that he knock off 115750. >> Well, go ahead. Go ahead. Well, I'll tell you what Tammy was going to say is when she subtracted 1 1,ion254 or 1,ion39570 from 12 1 million 254 that the number is >> 24 430 >> 214430. So, so we're off by more than
023115 on on these numbers. But Kevin, is what you're asking for tonight is that we agree to the guaranteed minimum I mean guaranteed maximum. Sorry. >> Well, I I think we we need recommendations about, you know, how we're going to move forward and, you know, we're going to bring a GMP amendment to you folks to approve. And, you know, I mean, if if we're like I'm sitting in my chair and I say, 250 over, who cares? We're just going to bring the GMP forward and we're going to try to say you need to do all these projects at once. And there is no appetite for that to say, no, you're over budget. you need to make the project meet budget then that's what I need to do or that's the information that I need. You
024might also say you know what after looking at these numbers there's no appetite for carrying option two or three forward. We're only going we only feel comfortable going forward with option one you know uh so that's that's the the information I'm looking >> I'm just a little bit uh concerned about uh fun 46. I want to make sure that there's >> I just got confirmation we're just under 2.4 million. So this was >> received we've had some growth in the funds since then. So we are looking at just under >> what I'm I'm still what I'm concerned about is that we still have room in there in case something like an emergency happens. And um my my suggestion to the committee might be to consider uh working uh working with Kevin to have him stay
025within a certain certain dollar amount uh and make the make the uh project fit fit the budget that you you feel is appropriate. >> Tammy >> Kevin. So, which of the options have the bathroom? Is it option one? >> Option one has the bathroom. >> Okay. So, I I agree with what Loriy's saying with the estimates, but I think what I gathered from you is that after the focus group, there was a number of extras to make the space more usable added which inflated option. Correct. Is that >> Yeah, that was definitely part. >> Okay. Um, I guess you Sarah, >> yep. >> Do you think it's necessary? >> Yeah. To have all of the added amenities to the space to have it utilized? >> Yes. >> The other piece that we have to consider
026is at some point we're going to have a drop dead date because we're going to have to get this in motion so that they can order all of the materials and they can get started. And I just said to Kevin, remind me of that date. And you had said it's like in a month, >> the end of April would be like we're going to be probably getting some doors after the start. >> Correct. And that is the we are ordering at the end of April, which when you backtrack that it's the approvals of the bids and getting everything going so that we can start. >> Okay. So S you say that that it's necessary. >> Yes. >> Right. Do you foresee being able to work on lowering any of those costs or is the realistic
027reality of what we're facing? Is that is going to be the expense to the district to have it fitted for the use it is intended for? >> I think there's some there's some value engineering options here that we could make work without negating the product. do would be things like um going from an epoxy floor to keeping a BCT tile floor, something like that. Those are both things that I think we we could make work and we can live with. Uh there are things like, you know, that second oven, you know, where if we don't do it now, in order for us to do it in two years when they say, "Holy cow, I just can't get room for that." I'm going to be paying probably twice as much because we're going to be bringing
028in somebody off the side to do it. Um, so I mean, you know, there there's there's things like that. I I definitely believe that we'd be able to knock some money off. Uh, but I I couldn't give you like a solid answer that yes, I feel this is what we're going to be able to work with. That also determines a lot like um we got a bid in for uh our low bid for um pardon me epoxy flooring was $15,000. Now, I can say, "Well, we can knock $15,000 off by saying we're not going to do that work." Well, if they're beating down their vendors right now, and they all of a sudden the epoxy flooring comes out at $12,000. Well, now if we beat that out, it's not $15,000, it's 12. So, I can't
029necessarily sit here and say, "Yes, we can do it by this month." But I definitely think that we we can do the exercise of 14% to to get a better >> Go ahead, Lori. So, um, you said you only had one electrical contractor bid, correct? >> Yes. >> So, do you think you can, um, get two other electrical contractors? >> At least within there was one other one that was going to local companies. Uh, there was other company that was going to bid and they were chasing some other uh, contractors that they had they're working with on other projects right now. And part of it, I mean, I'll be honest with you, part of it is the way that this project is left. there is a lot of risk to contractors uh where they could
030either have a $30,000 contract or a $200,000 contract and they need to schedule their labor and their you know so it does make it hard. Some companies looked at it and said without a hard answer we just we can't commit. >> So so you think you can get those bids back within you within the 30-day window? Yep, they're they're working on it right now. I know that they've already received, you know, they've already had and these aren't people like we went off the street. These were people that were asked to bid at the beginning of the process. Um, where we we have got some back in that will be working hard. >> Do you think are you confident that we can't you don't have a crystal ball, but do you think they'll they'll they'll save
031us some money? >> I do. I do. I don't think it's going to be $215,000 worth of money, but I think we'll we'll be able to do that. Um, another thing is that because we're doing this as a GMP, there is also some contingency money that is built into JP Collins bid because there are going to be unknowing and they're putting their name on this is our guaranteed maximum price. So, they're going to they're putting a contingency in there. That is something that if you know the the stars align and everything works out perfect, that's money that would not be put into the project and would be realized this. >> Go ahead. Greg, >> did I did I hear you right? Uh that a vinyl tile flooring is less expensive than like a polyaspartic floor.
032>> Yeah, the VCT floor that's in place already. Like so you know one by one tiles that we have to wax every year it's cost a buff of wax. >> Yeah. >> But that's that's a lot cheaper. I mean that one I want to say that's almost like four or five bucks a square foot installed as opposed to epoxy flooring which is >> just seems counterintuitive like >> well it's go ahead. It's a it's a it's a wear forever. It's a wear forever product. We're BCT tile floor. We had to put you know 70 bucks worth of wax on a floor every year to protect that tile. >> Oh, I see. >> So, so Kevin, if let's say on on the options, if I'm if I remember correctly, option three is pretty much all outside,
033right? So, if we were to lock that off, there's no way that the number, let's say we put that off for two years, it's not going to go down in price, >> right? >> Nothing on this is going to go down in price. Labor is going to go up, materials are going to go up more than likely. Correct. >> Yes. And like that was one conversation that we had earlier. Well, if if option two and three are more based towards seven and eight and we don't know that right now, but we're going to know that next summer, why don't we just say let's move forward with option one now and then do two and three later. That puts us in a situation where now all those general conditions we need to realize again. We're going
034to have to get officers again. We're going to have to get the job site people. We're going to have to commit labor. So there is a cost associated with with delaying some of the work till later the way that we have it presented. It's not saying it can't be done. It just it will end up costing district. >> Well, I understand what Craig is saying about fund 46. Obviously at this point in this district we are looking at every penny but it would seem to me if we need these things done and we have made the calculation that you know there's a good possibility we're going to end up moving seventh and eighth grade. Nothing for sure yet but a decent possibility. Is it reasonable that you could and I'm not, you know, so I'm
035certainly not into building stuff, but is if we said we are more comfortable with a flat 1.2 million and took 54,000 off it, is that anywhere near reasonable in cost reduction to still get what we need all three all three options? >> It would just it would put us in a an avenue of what are we cutting, right? I mean that that would be what are we taking away from from where? >> Okay, >> go ahead Tammy. >> Okay, so um going off of what Craig said about giving a number and Jolene. So I just did a percentagewise of the 492 from job one because I think that that is the one everybody's concerned about. So if we asked for a 5% decrease, we would request that heaven reduce that expense by 24,600, bringing the
036total cost to 467400. If we request a 10% decrease in that expense, then we'd need to reduce the expense for option one to 490 or I'm sorry to um which is a reduction of 49,200. Then if we go up to 50 15% we're requesting that Kevin get rid of $73,800. I think I think even given the way construction is I'm not sure if we should expect anything more than a 10% reduction. Thoughts? Well, a 10% reduction is within 6,000 with within $5,000 of where I sit about 54. But what you're saying, Kevin, is we would then have to sit down you all the team and say, "Okay, we're willing to give up this, this, this, this, and this to get there." >> Yeah. Okay. That would be you folks putting the onus on me to
037work with the CNI folks to say, "All right, >> this is what we can afford. This is what we can't." We have a list of some options that you know that are there that we can work off of. Um I know what what our our number is. I think the biggest thing also would be like how do you want to see how do you want to see options brought forward? Um we've worked with JP calling a lot. I know that they are willing to work with us on on bringing the proposals forward, but they are not going to want to create like 10 different contracts to bring forward. We're going to want to narrow that down to, you know, like are we doing just one thing? Are we doing the whole kitten kaboodleoodle? Um, knowing
038that this is going to come to the board after the results of our referendum election. We got 2.4 mil in. It'd be my position if if we put the limit at 1.2 million. Can you work with 54,000 off of there? >> Yeah. Oh, yeah. If that's what we're told to do, that's what we'll do. >> Well, try it once. See how close we get. >> Does that sound fair to everybody? >> I think it sounds fair, but I want to know what we're cutting. >> Yep. So, so the the more the more you mess with this bid, the more it costs JP Cohen, the more you're you're wearing out your vendors. So, be careful what you ask for. >> 54,000 asking too much out of 1.254 million. >> I don't know. That would be Kevin's
039question. >> 54,000 is less than 5%. 5% of that total is 62700. I feel we I mean I knowing that it's going to mean that we're not going to get some of the things that we want in there. I think I can work with um I think we can do it from both sides. We can work with JP Colin to say, "Hey, how have you guys done at working on your bids to get us down and that's me working with Jason and the folks at the high school and or our CNI team as a whole to say what can we do? What is a realistic cut? And if it is a cut now, what are things that like, you know, a flooring job is a heck of a lot easier for me to go out
040and do in three years than we want to run sink under the floor and we need to tear up all that. So, you know, maybe prioritizing things that we could do later. So, it's not necessarily I think it's going to be taxed from the project, but something we might need to bring back in later at a higher expense, but meeting our budget now. Um, so I I I feel confident that we could do >> Go ahead, >> Lori. I just want to hear from Sarah and Beth. I want you guys to weigh in on this >> because you have expertise. >> Yep. There is no harm in going back to JP Cullen Cullen and asking um where can we shift some numbers? What could they do as advocates um and partners of the school district
041to do that as well? and going back to our teams and saying where could we make some adjustments. There are some things that are non-negotiable and they're going to have to stay in place. But there are some other things that perhaps we could take a look at and see if we could navigate some of that cost. >> David, how soon could you get back to us after you go back and talk with these people, our own people? So, we've been queuing up for I believe the second week in April. So, that is kind of our goal is to have uh a contract drafted that we folks for approval uh possibly as soon as the second week of that gives you a couple weeks from the deadline that you had. >> Okay, go ahead. >> I
042don't like asking ignorant questions, but I'm making a I'm making a living on it these days. How is fund 46 funded? >> Good question. was it was funded through additions during times that the district ran a surplus. A decision is made at the close of the fiscal year. Always has to be done before July 27th, which is an odd date. And a transfer has to be approved from the general fund to fund fund 46. Now, there are some years that it was funded through that surplus. There were some years it wasn't funded because there was no surplus. And it has grown with interest and how banks work and so on since that time. And it's my understanding, Kevin, that we have not used 46 funds in the past. >> Thank you. That's very helpful. >>
043Can't be used for anything else. >> Cannot be used for anything but facilities. >> That makes sense. >> And and we're not talking publicly about this until after the referendum. Is that the deal? I mean, like broadcasting it or something? I don't know. Well, I mean, we're in open session. >> Well, I know we're in open session now, but So, okay. >> You mean are you talking about the the things that we're going to be doing like we're revamping the bathrooms because we need ADA accessible bathrooms and we need to be able to access bathrooms in a green wing hallway. All of those pieces. I don't believe that this is something that is being hidden by any means about this. We've had um plenty of sketches and scopes that have been put out there that
044we have talked about. You've approved um you know these projects to go forward this summer. um these are needs to the high school that have to be done regardless and so um this is an update that that we've been looking at for a while and now we've gotten to bid process and we can take a look at reducing it by 54,000 and we will absolutely embark on that conversation with our friends at JP Cullen are going to be on campus tomorrow we have weekly meetings and so um we will get back >> I just wanted to make sure that that as we message this out and as people perceive it, they understand this is a fund that was funded as Beth explained and it is those are funds that are reserved for this kind of
045project and it's time that we get it done. >> Yes. So >> yes, >> the public is not going to understand. >> Public doesn't understand that. >> No, they're not going to understand that. >> I have more faith than the public. >> At least Well, at least >> maybe you do. >> At least we know how to answer the question, >> right? >> Very good. >> Is everybody in agreement with this? >> Yes. >> David? Yes. Lori Julian. >> Yes. >> Very good. Soups, you got your marching orders. >> Thank you so much, Kevin. >> All right. Next order of business is Wisconsin School Nutrition Purchasing. >> Got that. >> I will jump in with this one. Um, so this is a contract that is signed kind of on a yearly basis. Some of you
046have seen this before and the overview of this is our food service department co-ops with just about 60 other school districts in the state to purchase their products through this cooperative agreement. The vendor is currently Gordon Food Service that provides um our our food for this contract. And um what we get in return is because of all of these districts are co co-oping together. It drives prices down and it then makes quality better because these districts are demanding that kind of thing. Um, per what I know of the contract, 80% of our nonm milk milk doesn't have to be purchased through this or bakery has to be purchased through this co-op agreement which is Gordon Food Service. So, it's something that kind of just flows every year. Um, I came from a school district that
047wasn't under this co-op. We actually moved there my last year just because of the backups that we saw. >> Discussion. Anybody got any comments? >> Saves us money. Go forward. >> Yeah, it's a good idea. >> All in favor of going with the program? >> I I heard it. >> That was easy. Thank you. >> Magic words. Say >> budget. Here we go. >> So this is going to be a little bit more um in depth. So let me share with you there are two um models that I shared with you in the admin content. The one is a bar model with no re reductions and no referendum. So what this model is accounting for certain assumptions that the bar model does. We know going into the second year of the bianual budget, we have
048a 325 per pupil revenue limit increase. We've done some enrollment projections, we we kind of can estimate the special education reimbursement rates and so on. Going forward, I enter then some assumptions in for example I know that um right now we ended the year at 2.63 63 CPI and we know we're negotiating just under that for um personnel. So I put those kind of things into the bar model and it gives me some results that first is showing you um the current year which is 2526 we are looking at having a deficit budget of about $3.4 4 million and that's the ballpark that I am seeing right now. Now, what was approved for budget in October was a $4.1 million deficit. So, it looks like we're going to hit just under that, which is always
049good news. Um, this would bring our fund balance down to that 36%. Now if no changes were made, no reductions were made, we know how enrollment is looking and so on, we are seeing that if we maintained the same budget with those assumptions moving forward next year, we are looking at a $6.1 million deficit and you can see that moving on. So we have talked in the past in the in in board meetings, fiscal meetings and so on that it's not realistic to do that. So we can see that maintaining a healthy fund balance is one of the priorities and we're going to have to look at some reductions to get there. So that second modeling is going to show you some scenarios of some reductions. Now, there are some things that we don't know
050and the biggest is what's going to happen in April with our referendum. So, there is scenario one and scenario two that is going to show you what things look like with a past referendum. And then there's scenario two that is going to look at how things look with a failed referendum. So, we've had some discussions about that 28 threshold. So in scenario one, we're looking at a $1.8 million cut next year, 2627, and a $1 million cut 2728. That gets us to that 2 million. That's with a past referendum. And you can see that we would be running a surplus budget of about $147,000. Keeps our fund balance at that healthy 36%. that following year we would drop and it would go to a deficit of about 148,000 keeping that fund balance at that 46%.
051Does anybody have questions on scenario one? Okay. All things remain constant in scenario two. But now instead of a twotiered cut, one in next year and the other part in the year after, we are going to be making a bigger reduction next year 2627 and the referendum fails. So what we are seeing is next year that would be a deficit budget of $3.3 million keeping our fund balance still in a healthy spot at about 31% but then you would see the impact moving out into future years that that fund balance is dipping into levels that are not as healthy. So something to be aware of and again we don't know what's going to happen in April. So this is kind of where we are sitting right now. Questions on scenario two. Scenario three is looking
052at a bigger cut next year a bigger reduction of 2.8 and then a cut of 1.1 million the following year 2728 and a pass referendum. What you will see is we have a surplus budget next year of $1.1 million, which brings our fund balance up to almost 40%. Then the following year, we are also running a surplus budget of 875,000. Again, brings our fund balance up to 40%. So, I know the question is going to be where do we want our fund balance to be? >> I I want to make sure >> okay you're the the scenario number three because the public can't see this. >> Yes. >> It it reflects a past 4.5 million >> $28 million reduction 2627 $1 million reduction 2728 and a pass referendum. So you can see how the fund
053balance is moving from there. Um so I know there's going to be some discussion about fund balance and where should fund balance be. Right now we've got a very healthy fund balance. And I say healthy because there is no need for us right now to shortterm borrow to meet payroll needs any other weeks. dipping below about a 25% fund balance. That would put in times of when revenue doesn't come into a school district, that would put the possibility out there of possibly having to incur some short-term borrowing costs. So, being at that 30% threshold, I'm saying is healthy. It's not even on our radar now to short-term borrow, but dipping below that conversation we may have to have. questions. Go ahead, Craig. Not necessarily a question, but a comment that I would say is like
054we don't we could be in a situation of scenario two where the referendum fails. And then we need to make a sizable reduction in order for us to uh buy ourselves some time for the uh 26 27 budget year where we maintain a fund balance of about 30%. So not having a crystal ball and knowing exactly where we're going to land on the referendum. That's what that's one of the areas that I look at. The other thing in scenario three, um if we're looking at a reduction and then another reduction the following year, um at least that gets us out a little bit farther and perhaps maybe a reduction might need to be made later in that particular uh forecast when we get out to like 20 uh 2029 20 30 Um, those were the
055concerns that I had and I I feel like scenario three would be perhaps the best case scenario with with the $4.5 million referendum. >> Can I say something, David? You had an excellent suggestion the other night when you said, "Let's go down to Madison and talk to some people." You know what really upsets me? Mr. Ivers upsets me a lot because he is not We have a surplus. People are aware of that. The state has a surplus, but the school districts aren't getting any money. Now, isn't the state supposed to be their their main one of their main things is to educate people, right? Isn't that the truth? Is anybody arguing with me? Okay. Now, you know what Mr. Ivers did this year? If you're 67 years or older, you're getting a hell of a
056tax cut. Are are you all aware of that? >> Yes. It's the taxes today. >> And you found out where it was, did you? >> Indeed. Was like, >> "So, you're older than 67?" >> Uh, yes. >> Do you use up the whole 48,000? >> Thank you. I'm happy somebody did. So, so you also have to keep in mind um the the voucher program is is not done the way it should be in my opinion, right? The legislature has tried to decouple school funding from the voucher program locally for since 2013. This last decoupling proposal from the legislature that Tony Eagers decided that he didn't want would have given this school district $1.4 million more per year under the decoupling uh scenario that they presented him and he refused it. I think we need to
057go on cheeks and trees up there. >> Thanks for that info. We try to stick to the agenda, guys. >> I will tell you I I I agree with you. school funding a whole issue we can talk on length about and how broken the system is and I think we all agree that there could be improvements made >> what I what my thought is is a lot the biggest unknown for us is happening in just a couple of weeks here Craig I appreciate you saying what you're saying about scenario three but you have to keep in mind there are no cuts that we are making in 2829 9. There are no reductions we are making in 30. So when you see those deficit budgets, we've only done reductions for the first two years. Our goal
058as a school district is to maintain a healthy fund balance but to not over build that fund if that makes sense. And so for us to do our due diligence in what we are doing for the districts, it is just to continue to look at the district needs yearbyear and continue to rightsize which is the discussion that you all have been having when it comes to consolidation and so on. So I think those are very valuable conversations to have. >> Yeah. I I guess I when I look at scenario three, I'm looking at um I I see the reduction up front and then I see, you know, what it would look like if you were to make a $1 million reduction the following year. So, so that's a forecast. That's a projection. Uh it doesn't
059mean we have to do it that way. It means that uh if we did let's say if we took a different route of some other other reductions as necessary into the future that allows us some flexibility in that respect. >> Were you including in that thought process the closing of shares? >> We haven't discussed yet whether or not we're going to close a third building. Um but if uh scenario three is does that include that in scenario three a possible >> well in order for the district to make the types of cuts that are necessary to get to this particular level. Um then perhaps maybe that that might be one of the recommendations that the administration brings. But um those are further discussions. >> Yes. It's a wait and see thing. >> Yeah. >> Well,
060but we're right back where we where we're going to be. Every time we discuss this, when you're talking about a million dollar cut in a in a district like this, it's always almost always the biggest part of it is coming from people. >> Yeah. because that's now I appreciate, you know, that when we talk about what percentage of our overall budget goes to, you know, uh, payroll and benefits and then from what I could tell, we're in the ballpark. We're in the right side of where we should be percentage wise, but it's hard. It's hard because this is talking about So, so let's just say that in order to get to that million, we did have to close another school. As you've pointed out many times, Craig, that's one time fix pretty much. Close the
061building. We read the the savings the biggest part of it in one year we have some trickle down because of adjustments in staff and stuff but after that there's not a lot of discretionary money and so we're talking about people >> right >> and that goes back again to these discussions that we have ongoing about whether we consolidate classes cut sections forgo certain programs that's the only way you can reduce staff because I'm Just going to say it again. I don't mean to sound like a broken record, but the minute you have people in a class, you got to have a teacher and there and then you've got your your biggest investment. So, >> go ahead, Tammy. >> I I think we're naturally going to see that staff reduction though. If if the projection stays
062as is, right? 2526, our enrollment, student enrollment is 31.41 and if we go to 2829, it's 28.46, 46 which is a loss of 293 students. So I think organically over time if we do see numbers dropping like that we would slowly reduce that expense. You would think so assuming that right amount >> the the u the the interesting part about that thought process was that through we have tried to we have reduced some of the staff through attrition but hasn't kept pace with with the uh decline in uh student enrollment. Um so so there might need to be a bigger adjustment that that's made over time. And the thing that the thing of it is is that enrollment decline is very directly tied um to the state aid uh that the state provides to um
063our school district and I think other things like categorical and equalization aid as well but uh that's a secondary and tertiary number. But >> go ahead. So, um, you know, after our $7 million referendum, previous board $7 million referendum failed, we cut, um, the administration cut, uh, 1.4 million through >> it was it was prior to the referendum. >> So, it was prior prior to the referendum. >> They cut 1.2. >> Right. Right. And um, and that was through attrition. So, so those were it was >> okay. That's what I was told. >> Not not entirely. So, um I feel like it didn't keep pace and they should have kept up and been looking at that every year and I think we should do that going forward. That way we won't be in the position
064where we're like, "Oh my goodness, we have to cut everybody. We can't do that." You know, so we we need to keep up on this and be proactive as the students population fluctuates. You're you're right in in the the challenge that a board has is when uh when the administration brings forward a staffing plan, the administr unless the board communicates to the administration a desire to reduce the staffing plan, the administration is going to assume the status quo. >> I I think the board just this board is very communicative. Yeah, we we we don't have that problem. >> Linda, >> another possible uh revenue um area that we haven't discussed yet, but we probably will, is real estate. So, that is an addition as well, a potential addition to that does it's not reflected here.
065>> Yeah, the one time thing >> one time things, but but still uh real estate. So, >> go ahead, Julian. Well, I I just want to I'm looking at Sarah Y >> and Beth, >> okay, on this because tell me I'm wrong. If the student if the student decrease doesn't happen in the right places, you may or may not be able to reduce staff. >> So, the hard thing about losing students, >> that's exactly right. We don't lose them predictively across the across the spectrum. you're losing six kids here and five kids here. And so trying to get these formulas, I've appreciated the administration bringing forward those formulas that make it very black and white for us to see at our elementary levels, it's it's much easier to kind of see class sizes. But now,
066as we get into a high school where we're switching classes and we've got course selections and whatever, that conversation is very different. So you hit the nail on the the head absolutely correctly that it's not a cut and dried like easy kind of thing. >> It's not and I just want to make sure that we don't portray that because we have a decrease in the student population that there's some kind of formulaic commensurate cut in people simply because it doesn't happen in the right places. If we stick with the the magic on this is the class size range that we as the board have approved. If we want to increase the class size range, then you can start consolidating classes to bigger numbers and then you can start actually cutting people, you know, and in
067in a staff and and faculty sense. But otherwise, if you if you stick to the range we currently have, we're probably going to have we aren't going to have a nice solution to this. Do you see what I'm saying, Craig? >> There's there's never a nice solution. >> Well, no. There no. A deficit is a horrible place for a school district to be. There's no doubt about it. >> Sarah, >> how many students are going to other schools right now from Watertown? You mean leaving us right now through open enrollment or >> No, that that are going to other schools that are the limited on the high school level >> at the high school levels, >> right? >> Well, we could take a look and and see, but typically they don't leave us at the
068high school level to go somewhere else. They come to us at the high school level from the parochial schools. >> Yeah, I I understand that. But I mean how many are going to other schools like Okanamok or >> open enrollment? So we have we have a cap right now. This year is the last year of the cap. >> So right now we have 3,000 and some odd students. I'm not sure how much it is. The cap is 10%. So we can only allow 300, let's just say it's an even 3,000 students to open and roll out. We have a waiting list after that cap. So, right now we are maxed out on our 10%. >> I wonder why. >> What's that? >> I wonder why. >> Well, >> can anybody tell me why? >> I
069can tell you some of it. So, some of the new applications that came in for this upcoming year were in places that were like an hour away. And it's because the parents are working an hour away and they're taking their children with them because then they have afterchool or before school care in that location, but they live here because they can afford it here. So it's going out towards the Madison area and it's going out towards the Milwaukee area. Now, full transparency, we do have some people that have open enrolled out to Okana um that are living out in Lebanon and so it is close proximity and that was occurring before we held the listening sessions. >> You think it all has to do with proximity? >> No, I think it has to do with
070programming. I think it has to do with opportunities. And what scares me is when we talk about reductions, some of those reductions are programmatic reductions, which makes us less alluring to people who are looking for a school district to attend a place to live and have their children attend. When we cut programs and when we cut these types of opportunities for kids, we are less marketable. >> So what programs are those? could be advanced learning, could be extracurriculars, could be clubs, could be um AP classes, could be our CTE, could be career readiness. There are so many different things that you could look at and say can't afford it anymore. That is a real reality of not passing a referendum. >> Well, I know three students that are leaving next year because of a certain
071athletic program. >> Okay. >> Go ahead, Lori. So yeah, I think I think it's not cut and dry, right? But I think it's a multiaceted phenomena. Uh, as you know, I'm here because um I I'm on the board because my daughter had opened enrolled the grandkids over to Dodge along with many many other people I've known down through the years. Right. uh there were in a nutshell they were not responsive to parents. Uh and we have as a board we have addressed a number of those issues and um continue to address those issues of of quality in lower lower grades and competitiveness with other school districts. Now, academically, we're better than dodge, but that doesn't always that's not always what drives the the flight to to dodge, right? Um, and so I think it depends
072on the parent, but I think it also depends on on our responsiveness and our connection to the community, which hasn't been great in the past, and we are repairing that relationship, but it takes time. Well, >> you're right. Go ahead, Craig. Um, to bring this back around to the um barit budget model, they were um they were forecasting with with our um data about an average of an 89 student decrease over the next five years year-over-year. So, and and there are a number of reasons that people have mentioned and why why students may uh why we're experiencing a declining enrollment. But perhap but one of the biggest things that seem to indicate um a reason behind a decline in enrollment was because we have smaller class sizes coming in and we have larger class sizes
073graduating from our school district. Go ahead, Tammy. >> I just want to ask if our our longitudinal data on year-over-year student loss aligns with this 89 number >> or is it a bit high? >> Oh, question. >> We could just we could pull up the study. >> Okay. >> Just out of curiosity. Just I am happy that they're being more conservative in the in the bottles. So, >> I just would like to know what the realistic what we've been experiencing over the past few years as far as student loss. >> The the there's a greater spike in loss of uh enrollments um not loss or decline in enrollment um earlier on and then it starts to it starts to level out. >> Yeah. Okay. >> Yeah. because it's 122 and 113 in the first couple
074of years. >> And that's what they do is they it's kind of fascinating how they do this. They take the whole enrollment of the district in every single grade level and then they project it all out, >> you know, and something else. Any other questions? >> No, not for me. I think I've taken up enough of your guys this time. >> Okay, so we're done with the beard model. monthly reports. Anybody got any questions on any of the reports? >> Nice job. >> You uh got your email out to everybody. Beth, >> I did. Um so, thank you. I'm I'm gonna play the new guy card right now and just say I wish I could answer questions on the spot and I feel like I will eventually get there, but right now giving me that
075little time to find the wise is very appreciated. So, thank you. >> So, anybody got any questions of Beth? You're lucky we talked earlier. >> Your very favorite one, which is the Amazon one. Okay. >> So, I just have a question about It appears to me, and I didn't go back and look at previous reports, but appears to me there's more description in the description than we've had in the past. Am I imagining or longer? I noticed that, too. >> Yeah, it's very helpful. I feel like I know more about what the actual purchase was. So, so, um, and I I Stacy is great at pulling these reports, and I'm not sure if there's a difference with Amazon or how people are entering these, but I'm going to follow up with Stacy and um, figure
076out why, and just pass that on that that description is >> I'll tell you that special education um, descriptions are always very specific because we have to make them specific. I got a question for you then, Sarah. >> Yes, sir. >> How come we're buying so much gum? >> Okay. I knew you were going to bring up bubble gum. Carl, I don't know why we're buying bubble gum. Okay. We can ask about the bubble gum. I have no idea who is buying bubble gum, why we're buying bubble gum, but I assure you we will do a deep dive into the gum. I have no idea. Carl, >> you know, another thing with bubble gum is it it's more maintenance, too. You know where bubble gum usually goes when some teacher tells them to get it
077out of their mouth? Under the chair and then what happens with maintenance, right? >> An issue with bubble gum under our chairs. >> In the summer, clean it off. I'd rather have it under the chairs and on the floor in the dirt. >> Yeah, you got that right. >> Work on the gum. >> We don't >> I knew you were gonna I knew it. >> Very good. I'm glad you're on top of it. I'm on top of go. >> Very good. >> That is the top priority of my day. >> Very good. Right. >> Okay. Action items. That's done with the monthly report, right? Or is anybody got any questions yet? You got any questions, Julian? >> No. Oh, I'm just I'm just shocked at how fast we did the monthly reports. Go for it.
078>> Very good. All right. Yeah, that's a new that's a >> All right. Now, we're action items. Who's dealing with that? >> Well, the one thing I have to ask is, do we want to have some sort of action on the school nutrition purchasing program? >> That needs to be moved. That needs to be to move to Monday's meeting. Yes. >> Oh, yeah. Okay. Great. Yeah. So, we'll agree that it should be moved to Monday's meeting. Everybody in agreement? >> Yes. >> Very good. All right. Any other action items? Well, we gave Kevin his marching. >> Yeah, he's got his marching orders, right? >> How do you feel about the marching? >> That's what we're gonna do. >> Remember, right, your right foot first. >> I thought left. >> Left right. You want me to
079sing you the >> I can sing the song. You know what that agenda? >> Yeah. Very good. >> Okay. >> All right. Any future agenda items? >> Big. >> Is there anything else to be discussed? >> I move I'm ready for a motion to adjourn. >> Scroll down. >> Oh, no. Close. I got word to go into close >> at 6:40 p.m. >> Right. Make a motion to go into close session for the purposes stated in the agenda. >> I second. >> Everybody say I. >> No. Roll call vote. >> Just looking. >> That would just be the committee. >> So it would be okay. I'll do it. Carl, >> right? Yes. >> Dave, right? You're on the committee. >> Yes. Lori and me. >> Lori. >> Yes. >> Joane. >> Yes. >> And that
080was at 6:40. >> Take over then. Okay. You want your ball of wax? All righty. >> Hang on. We got >> Okay. >> All right. Sam and Dan are gonna make it. >> Thank you, Carl. Um, I didn't hear from >> Saman. >> I talked to Dan just not too long ago. It's a technically it's a um close session for