001Mhm. >> [clears throat] >> Dr. Mona? No, that's Dr. Lash. All right, it is 6:30. I will call the Finance and Capital Management Committee meeting to order. Uh my name is Phil Montgomery. I'm chair of the committee. I am joined by vice chair Reverend Harrison and also committee and board member Jerose as well as Treasurer Bowers and Superintendent Outlaw. So, we'll go ahead and move through the agenda. The first item up on the agenda, there are two sets of minutes to approve from our last two meetings of April the 15th and April the 29th. Is there a motion to approve? >> So moved. >> Is there a second? Second. All in favor? >> I. Any opposed? All right, item 1.02. Is there anybody here to address the committee? Seeing none, we will continue to move
002on. So, item 2.01 under finance updates, we have the monthly financial report, Treasurer Bowers. Thank you, Chair Montgomery. >> [clears throat] >> We are now going to go through our April financial report. Uh this is our new one-pager. In your packets, you've also been given the uh regular monthly financial report and a uh all funds green and yellow report. Looks like this uh that we'll begin spending more time on in future meetings. >> [clears throat] >> So, so far through April, you can see in column A there, we have received so far this year $338.7 million in revenue and other financing sources, which is 89.48% of the full year's allotment. We've already see received all of our property tax money for the year that we're expecting and collections were a little bit higher there. You
003can see that our uh in the orange column, we saw some we saw 968,000 in general property tax and 512,000 in public utility. Uh it's because our collection rate was a little bit higher than we thought it was going to be when we completed our forecast. So, that's some good news for us. >> [clears throat] >> Uh on the expenditure side, also in column A, you can see that we've so far had 312.3 million in expenditures and other financing uses, which is right about 80.4% of the budget. So, we're just a little below what we thought we'd be spending so far this year. Um and then in uh for our cash position down in the bottom uh row 6.7.01 and 7.02 down there, >> [clears throat] >> uh we're showing that after April revenue expenditure
004activity, we're predicting that we'll end the year with 8.1 million in deficit spending. This [snorts] is still deficit spending, but compared to our August forecast, that is we've made uh we've made up some ground. We've made up 4.8 million dollars. We were originally um predicting a 10.4 million dollars in deficit spending. And uh as compared to our uh February forecast where we made some adjustments, we are already up 2.2 million dollars. So, [snorts] if that holds uh true, we we will end the year with at 5.9 million in deficit spending, which is a real big improvement for us. So, we're hoping that that sticks and we'll we'll continue to uh make some more improvement. That's all I have for that report. Uh is that inclusive of the close out of the segments? Is that 1.8
005million in there yet, or is that not until May? So, that is in um 034 funds, which are not in the general fund. Okay. Uh any other questions from members of the committee? Uh Vice Chair Harrison. W- When you say it's in whatever fund you just mentioned, what what is that fund? Is it a designated fund? Yeah, that's That's where we um track all of our construction money. And you know, so the projects each have a fund. So, it's each segment had a different fund within that special cost center, so that they um so that each so we can send a keep a good accounting of the activity by segment, so that it um isn't commingled. >> [clears throat] >> So, so my understanding was was we we closed the segments out after Garfield. That
006Garfield was the last Mhm. Uh so well, I guess the the the the general question would be when will that 1.8 go to the general fund and be accounted for in the general fund? It's not going to be coming into the general fund. It's satisfying some negative deficits um within those different segments over there. So, there were there's that's a bigger conversation we can have um with Valerie, but um it's in the end, those combined with the LFI money are going to all net that out to zero, and then we'll have the remaining money to use in the general for the for whatever else we decide. So, then does it essentially negate us having to transfer general fund into those deficits in the segments? so it really is a artificial increase to general fund. Correct.
007Yeah, that's yeah. Any other questions? Member Deros? So, we recently in May approved the transfer of the $4 million to cover the van driver expenses. So, does that mean we would be at a negative cash flow for the year as we have a $2.2 million cash flow uh in the black? That That was an appropriations increase. Um which Phil, could you help me out I'll explain that on So, the $4 million was a essentially an it was an appropriation increase which translates to budget. So, in the blue and green columns, the actual expenditures for transportation are in here and reflective. Uh the real question that I think might help you uh Member Deros is whether the projected uh of actual versus forecast is inclusive of the estimated increase in transportation spending. I know the actuals
008are in here uh in column A, but is the remaining overspend on transportation included in column B? Like, what do you have in this estimate for transportation? Is it the $9 million? Yes, we have we have what we need to cover the rest of the year in column B. Correct. Does that answer your question? >> Any other questions? All right, hearing and seeing none, we will move on to 2.02 annual athletic funds transfer. And I hope you're not going to read all of this. So, I'll I'll try to keep it to a summary. Uh at the end of each school year, we need to make sure that we get our athletic fund 300-3001 back to zero. Uh they spend down their budget each year, and And we are given from the athletic department what they
009need to get to the end of the year and you can see here on the slide that in previous years the total amounts we've transferred into the athletics funds been around $300,000. We're going to end up right at $300,000 this year and we are requesting that to close out this fiscal year we will request a transfer to be made from the general fund in the amount of $60,000. [clears throat] Any questions from members of the committee? Reverend Harrison. Thank you Mr. Chair. I remember last year's transfer I I believe was 90,000. So are we doing better with >> [clears throat] >> athletics? We're only doing 60,000 now. And it was explained last year you you didn't do the explaining but it was explained last year that every year we kind of transfer to cover the
010actual cost because our athletics don't actually pay for themselves. I guess that would be a question. So >> [clears throat] >> some of their budget comes from ticket sales and donations and so depending on the amount of money we receive there it would you know eat into how much we need to transfer at the end of the year. Any other questions? Okay, does that need to be motioned to move to the rules >> Yes. So can I have a motion to move item 2.02 to the rules committee on June the is it June the 1st? Right? Yes, June the 1st. So moved. Is there a second? Second. Second. All in favor? I. >> I. Any opposed? All right. I am now the really exciting stuff 2.03 debt service and bond ratings. Mr. Treasurer. So >>
011[clears throat] >> we I don't wanted to give you a brief history of our debt history here. We didn't have any debt until 2023 when we issued the Kenmore cops and then I have the North High School uh history there what we've gone through so far. We approved the levy in 24 and then we immediately issued 15 million in notes and then we paid those notes off in 25 with 27.5 and now we are reissuing to pay off that same amount of 27.5. We actually have earned some interest on this money. So, that 27.5 that we thought was going to be the amount is going to be actually like 24.5 million. So, we've reduced that somewhat. Uh what this is about is um >> [clears throat] >> to issue that debt, we have to have
012a rating. And so, we presented to I presented to S&P Global on May 7th and then on the 14th they issued a rating outlook report for us. Um >> [clears throat] >> they affirmed our long-term rating of A on the 2023 cop series and our short-term rating on the 2025 geo notes, which is the uh North uh series. But they revised our outlook from stable to negative. Uh and there's a bunch of information here that you probably have already read through. I explained what an S&P plus one means and all the all of that, but >> [snorts] >> here's the debt rating schedule which shows S&P's um >> [clears throat] >> rating chart and we are in A, so we're in the upper upper medium grade. Um so that means that we're deemed excep- exceptionally
013reliable. Um but going forward, there's a chance that we could be uh rated one notch lower than our rating on the district's general creditworthiness. Uh and here are the reasons that they gave us. The rationale is is there with um >> [clears throat] >> there's a negative outlook on long-term rating due to an ongoing ongoing budgetary imbalance, which we've been talking about, you know, in our forecasts. And there are the reasons there. They did say as a as a good point for us uh that we have new administration that's all focused on reducing expenditures, and we've already identified 11 million this for next year. Uh but they did conclude that there's a one in three chance in the next 3 years they could downgrade or lower the rating. Any questions from members of the committee?
014Any questions from members of the committee for the treasurer? Seeing and hearing none, we will Uh we don't need to take action on that one, Craig. >> No, it's just a just an update. Item 2.04 Piper Miller South Project Arbitrage Compliance Update. So, associated with our cops uh which we issued in 2024, we we um arbitrage occurs when you um borrow taxable tax-free money and then earn money on it um for too long of a period of time. You earn more than some calculations done by the IRS. And so, we have a uh consultant that has done a compliance review for us. And this is explaining that um even though we're starting to spend the money, we're going to be picking up speed on this. There is a there's a possibility that we could be
015uh we could have some arbitrage fees or fines um by the end of this year. Uh there's no payment due to the IRS right now, but we do have a positive liability in the amount of 98,053.85 on the cops as their computation. I provided you all with a 25-page report if you're interested in reading through how they calculate that and all the all of that, [snorts] but um, our next computation is scheduled uh, to cover through the period of 12/6, so this this at the end of this year. If we spend we start spending the money quicky quick quickier quicker, uh, I I believe that we'll be okay. Quicklier? Is that a word? Probably not. Questions? Uh, Vice Chair Harrison. Uh, thank you, Mr. Chair. The the the arbitrage, I know we're gaining interest on
016the money. Would we Is there a scenario that we would pay more than we earn? So, there's couple schools of thought on how you handle this situation. One is um, don't invest it so that you earn as much as possible. The other, which we're doing, is earn as much as possible so that you can pay cuz you'll have as much available to pay whatever the fees and fines are. Um, does does it answer your question or I believe I I I guess I'm getting at I don't want people to think that we're um, are being not good stewards of the money. So, we we there are cer- certain things with the building that we have to put in place. We we can't just hand over money. So, >> [clears throat] >> while we're putting those
017systems into place, the money is gaining interest. >> Right. And would we ever be in a scenario where we're gaining where we where we have to pay out more than we're gaining. No. No, we're we're Yes, so we are we're investing these dollars to earn as much as possible. And then if we earn more than the IRS allows for that period of time, we will have to pay a portion of that interest back. And if we kick up spending before the end of the year, we won't have to pay it at all. Right. Any other questions? Uh okay, item 2.05, OFCC segments 4, 5, and 6 closed out. This is just to mention that we did receive those funds on April 29th and have officially closed all of those segments. Questions or comments? Okay, uh
018Vice Chair Harrison. That that would be helpful to get some kind of communication out to the board. Okay. Um as to what it means to close it out and where the money is going. And I think it's better than if we read it, then we can have more direct questions. If if there are questions, then we can kind of just pinpoint our questions. So, I know that would be helpful to me and I'm sure the other some of the other board members would want to know that. Yeah, I would agree with you, uh Reverend Harrison, in the fact that I think today was the first time we heard that that 1.8 is sitting in a segregated fund. We were under the impression it was new money that was going to go to the general fund.
019So, by knowing that it's offsetting money that would have left the general fund, I think it's six of one, half a dozen of the other, but I think having that explanation would be helpful. So, thank you for that. Any other questions on this one? Uh Mr. Treasurer, I will say your PowerPoint and the agenda are out of alignment. You've got the Auditor's State Award on here as 2.05 again. Uh so, we're going to have to move that to new business, um because we have a item 2.06, uh which I will need to abstain from, so I'm going to turn the lead of this topic over to Vice Chair Harrison. Thank you, Mr. Chair, and I assume the chair for this item and this item only, and I will allow Mr. Bowers, our treasurer, to explain
020this so that we are informed. I apologize, it looks like this PowerPoint is not following the agenda. So, I >> [clears throat and cough] >> So, we received from Summit County on Monday >> [snorts] >> a grant agree- an agreement to It's called It is a grant agreement to receive uh $640,243.97 in um >> [clears throat] >> uh delinquent taxes that uh associated with the one the sale of one Cascade Plaza to Pleasant Valley Corp. Um >> [clears throat] >> The sale the the property had sat for a while, and so that no taxes were collected, and the proceeds of the sale were high enough to allow for the satisfaction of all of the outstanding debts of all the outstanding um uh income tax or property taxes property tax delinquent property taxes, so we are
021asking that this grant agreement be sent to the [snorts] Rules Committee uh to be approved eventually in the board meeting. >> [clears throat] >> Thank you, Mr. Bowers, and uh just for clarity's sake for the general public, um as you can correct me if I am wrong in this. One Cascade Plaza was sold. And because it was sat empty, we were not the school was not collecting the appropriate taxes on the property. Once it was sold, the county has now distributed the money that we would have collected on it as part of the proceeds of the sale. We're getting the benefit of having the taxes that we would have had had they been paid to our account. Yes, that's correct. Okay. [clears throat] Is there any questions? And I will relinquish the chair back to
022um >> [clears throat] >> Oh, yes. Okay, is there a motion to move to rules? >> So moved. Um all in favor? I. >> I. Abstain. Director I mean Chair Montgomery has abstained. I will relinquish the chair back to him and ask him to simply give us a brief explanation of his abstention. Just the conflict of interest interest with my job at the county. All right, thank you, Vice Chair. With that, we will move into section three, capital management and construction updates. Item number one. And before actually before I jump into item number one, I just want to preface this section before Executive Director Folk comes up. There's been on item 3.02 and 3.03, both Pyfer Miller South and North High School, I just want to give a general kind of update um >> [clears
023throat] >> as to board function in those two areas. And the Executive Director will give an actual update of the status of the projects, but the full board did for the North High School project reintroduce and pass the resolution to name CT Taylor as the number one ranked construction manager at risk best value. So that will now move the project forward with the core team to begin negotiations with the contract. It does not mean that they've signed it and they're on board yet, does mean that the administration can go begin those negotiations and that contract will include direction from the board as to things that we want included in there, clarity that we want included in there. And so as we kind of move that piece forward, there will be communications and opportunities for the
024board to review that draft contract, work with the administration to make sure those things are included. So a lot of progress has been made in the last two weeks on that. In that same vein, the board will be participating more in the Piper Miller South project as those bid documents are expected to come in on Friday. I believe it's been extended to Friday. It's today. Okay, I'm getting differing dates on that. So we can address that when you come up. So today the bid documents are coming back on that. So the board will have the opportunity to participate in those conversations as much as allowable and as much as preferred. And so anyways, we are watching both of these very large construction projects that are going on that are will soon be going on concurrently
025in more gusto as the construction manager at risk potentially comes on board on North and as we move to the next phase of bidding on Piper Miller South. And so with that I will turn it over to Executive Director Folk to start with item 3.01, the Book Dole Press Box. Director Folk. Good evening, Chairman Montgomery, Vice Chair Pastor Harrison, Member DeRose, Treasurer Bowers, and Superintendent Audley. As of May 13th, I am happy to advise that the press box masonry is finished other than capping the block blocks. The restroom exterior is mostly complete, and remember these are now two separate buildings. This is the first time we will have outside public restrooms at this stadium. The north half of the track has been paved with a base layer on Thursday, and actually this was written prior,
026and I can advise you that that has occurred. Please refer to Friday notes, you will see a picture. The steel work on the press box was to begin on Friday, it is now progressing, and the roof trusses are on site and should be installed in early June. Please refer to your Friday notes, I have three pictures, and this is on schedule and on budget. Thank you. I will just add that at the core team this afternoon, we were informed that we will have griffins and not gargoyles on the top of the press box. >> [clears throat] >> And so, great. It's great progress. I know we looked at some pictures at the core meeting, so thanks for that update. Any questions or comments on the Book Dole Press Box? Can I just give an update
027on the griffins? This is kind of a cool. You will see as you look I pedestal in the one picture, and you will see a cap on it. The actual body of the griffin will be masonry constructed with a company, and our students in our masonry program are going to make the wings that will be attached to each one of those. And this is a really cool picture, so I just wanted you to be aware that we have actively engaged the students in that as well. And that picture is in Friday notes, right? I will add the extra gargoyle picture because I did the Friday notes earlier by noon today, but I can do that. >> gargoyles. They're griffins. I'm sorry. What? Excuse me. Thank you. Uh any questions on Book 2? All right. 3.02
028Piper Miller South. Uh the guaranteed maximum price for GMP 2, the bids were uh pre-bid meeting was held on the 6th. We had 12 vendors show up. That doesn't mean that those are the only people that will bid. There are currently 19 bid packages that have been released for seeking firm firm quotes to all bid information, and I wanted to advise that those that is actually listed all 19 packages on our website. Please open up the construction tab, and it is on the right side, so you'll see exactly what they are bidding on. Vendor responses were due today by 3:00 p.m. to local time to CT Taylor. Now, as an update to that process, uh there is a meeting scheduled on June 11th, uh which is a Thursday from 2:00 to 4:00, and we will
029have active participation and review of those bid submits submittals, and we reviewed that with Chairman Munger and Maria at the core meeting today. Questions or comments on Piper Miller South? Okay. Seeing and hearing none, we'll move on to item 3.03 North High School. Uh the construction manager at risk, as you uh advised at the meeting of the 18th, originally uh the board uh re-approved resolution 26078. This resolution affirms that the board has determined that CT Taylor Incorporated is the best value of the rankings for the construction manager at risk for North High School, and the resolution also ranks all of the short-listed construction management firms, and we are in the process moving forward with making those negotiations start, and we will be actively engaging with the board members as well as the superintendent and the
030treasurer. Uh thank you. Just to add uh to my earlier comments, so the next two parts of the process are to negotiate a contract. Uh once and if that is done, uh the who of the CMR will become part of the project team, and then from there uh I have asked Director Folk to provide the board with essentially a timeline of what happens from there. Uh what when it's not an exact science on the dates, so we got to be a little bit flexible with that, but over the course of the construction project when bid documents will go out, what parts the board are are part of and need to take action on. So, she's going to put that in a one or two-page document for us to have handy, so we know every step
031of the process throughout the rest of this. So, uh any questions on North High School? Vice Chair Harrison. Um Mr. Chair, thank you, Mr. Chair. This is regarding both building projects or both school building projects. It would be also helpful to have a list of the meetings um and a list of the meetings for all of the board members so so that we can, you know, hopefully at least make a couple of them and get our questions answered. Um it it also would be helpful um when we receive these updates to have the owners' reps available. Um I think, you know, some some things can get lost in um transferring of information or the understanding of information, but I we we have owners' reps too. Yeah, and so it it would be helpful to have,
032you know, at you know, some of these meetings and and I and I wouldn't want to be tying up their time, but upon request sometimes I think we need to hear the update from the owner's rep. Thank you. Director Folk? Um I can advise and I we can certainly give you a listing. The current Peifer projects meets every first and third I've got to get my dates together. First and third Wednesday at 1:00 in this room. So, the next meeting for that is next week and the owner's reps are always in these meetings and included. And the North and Bookter projects meet the second and fourth Wednesday also at 1:00 uh to discuss the updates and the owner's reps are also in attendance and I can certainly get you a list of those dates for
033you. Vice Chair Harrison. Y- Yeah, and I and I understand that but but I want to make sure that we are transparent to the public as well. And so, that's the the purpose of the updates in the committee meetings and sometimes we ask a question and you get back with us. You you you send it to us on the emails but we haven't uh been informative to the public. Um so, that's um That's that. So, I'll agree with uh Vice Chair Harrison on that. If we could ask the owner's reps for both projects to attend as often as possible uh but that putting them on notice that there will be times where we will request or require them to be here if there's an important update. Does that cover where you're Member Jurus. Uh speaking
034to Vice President Harrison's comments. So, when we all all those meetings are going on, can we get summaries of each of those meetings as they take place? Um you can. They I can certainly share the agenda meeting uh minutes as recorded during the meeting. Excellent. And then probably would just to add to that would be probably just a good practice to send that out after the meetings to the full board. I can actually make that update. Okay, thank you. Member Jurus. And then the second thing was just I know there was the initial boilerplate contract that was in the original bid documents. Can we as a committee receive that contract that would be going out to the highest bidder or the actually in the best preferred ranked Director Folk. Uh we actually you will receive
035that. We talked about that today. Um I have reached out to General Counsel Harps and we want to make sure that you have the correct copy and I have made a call to him today. I'm waiting for him to call me back. So you should see it shortly. Yeah, hopefully tomorrow and the next day or so. Yeah. Okay, excellent. Thank you. Any other questions? Uh okay, item 3.04 district-wide roof maintenance plan. Um at the board meeting of March 10th, the board approved a 3-year contract with Innovative Red Roofing Solutions for roofing service preventive maintenance in the amount not to exceed $199,611.80 per year. So the total contract came to $598,835.40. And we have attached that proposal to you. Um in addition to the preventive maintenance, we Akron Public Schools has also incurred numerous additional repairs
036that were either identified through their required inspections or due to the additional call-outs for leaks. So those invoices so far this year have totaled $191,975 for total roofing costs so far this year of $391,585.80. There were an additional 33,000 for a partial roof replacements which you did approve and as we discussed earlier in the contract committee, you will see another request to finish Sam Salem at $142,000 as a CLC out of 034 funds. We are proposing at this time because of what we are doing uh with this particular preventive maintenance plan, a more comprehensive agreement to go forward that encompasses all of our roofs. And we would like to do what is called the PM Plus program at a cost of $564,005 per year. This would also include most repairs and some extra preventive maintenance.
037And I want you to talk about point and tuck and other things that are up there approaching those items that are 20 years old. This are your schools, not only your legacy schools, but this also includes your segment ones and segment two schools cuz they're now hitting the 20-year mark. And we have attached that. Additionally, IRS is already maintaining a 5-year roofing forecast to the document on upcoming repairs, and we have would like to identify those repairs early so that we can correct small problems before they become large ones, which would then lengthen our time before a whole replacement is due. It's always good to have an ounce of prevention before you have a pound to cure. While this cost is increasing by 300,000 a year, APS would now have a full-service contract funded for
038repairs would be split. So, your capital improvement project funds would cover your legacy buildings and 034s would cover your CLCs as part of that requirement. This is required through the OFC agreement. Once you took over an ownership of a building, you are required to maintain them with 034 funds for 23 years. So, as an example, Pastor Harrison recently Garfield was the last one we did. We are required to cover Garfield until 2055. So, we are asking the committee to consider moving this PM Plus program agreement to the rules committee for consideration and eventual vote by the board. When you say it includes most repairs, can you give us an idea of what that might include? >> Okay, so say that you walked in and I'm going to use the superintendent's office cuz this has happened.
039We >> 950° in there. I know that. We are different different project. But as an example, if you had water coming in and the ceiling tiles get wet or something like that. They are called immediately to come out when we are walking our roofs for regular inspections. If we see something wrong, we are sending this in and this particular company could come in and find a repair and it cost $1,500 and it doesn't have to go to board because it's part of this PM. They have done a number of repairs for you under this current contract. And it could be that there's just a hole or a tear in the roof. Or it could mean that you need a cleanout of a drain pipe and they can tell us if they can do it or
040not. It just depends on what they find, but they have done a number of repairs costing anywhere from $1,500. I can tell you you had one at one of your legacy buildings, which is the central distribution center. You had which unfortunately, I will report is the original roof from 1965. It has never been totally replaced. But because you have leaks in that area and an agricultural license for the central distribution child nutrition part, they went out, they assessed it, they knew exactly what to do and we automatically made that repair at $18,000. So is there a cap or a not to exceed on the repair or the amount of repairs? >> anything that would be above our current board 25,000 would come to you for additional approval. But anything below that would not require additional
041approval. What I mean though is if we're going to do the PM Plus program where it covers the repairs, Is there a maximum amount that they would cover under this contract? >> is. What do you know what it is? >> it's it's anything that is under that 500,000 amount that you are paying for each year. That 500,000,640 dollars is it. They will do the repair without any additional cost. Okay. Any other questions or comments? Vice Chair Harrison? Nope. Treasurer Bowers? No. Deb, can you explain the difference between what we have now and what this plus program like I'm Uh originally the one-year uh original contract only did what we would call uh shingle roofs. It did not cover your flat roofs. By going to this, you get all your flat roofs as well. So, you
042have a shingle roof on your house that does not have the same warranty or lasting period more than about 20 years. Some of your flat roofs go 25 to 30 to 40 years. Um we are just very fortunate. We've done good maintenance on some of them, but we are getting to the point our legacy locations will start to have to be a total tear-off based on their maintenance advisement to us. And I can give you an example, uh the central distribution roof I just discussed, when we go to replace that, that is going to be well over a million dollars because it's never been done and the building is from 1965. So, we want to make sure and as you can see while the cost is increasing to have it, we will get better service
043and more readily repaired that should not have to be above that 560 640,000. Yeah, 500,640,000. Great. Vice Chair Harrison? Uh thank you, Mr. Chair. Uh so, the total cost for 3 years is the five 598,835. >> 500 500 and thousand, 640 dollars per year. That said Yes, the current Yes. The current year was 199,000. So, see, originally you approved for 598,000 and it was not supposed to be more than 199,000 per year for the 5 years. And we're asking it to increase per year to the 500,000. So, it's a million and a half for 3 years. >> Mhm. Okay. Yes. Okay. Now, now, how many buildings do we have that this cover? It will cover all of them. So, you currently have 44 buildings that you have. >> 40 40 buildings. So, and I just
044want to make the point of that million and a half for the for the duration of the contract covers the 44 buildings. Um and >> [clears throat] >> I'm looking at just our preventative maintenance. Our yearly preventative maintenance in some buildings is 7,500. Some buildings [clears throat] I I'm looking at one is 13,000. So, really this this is the cost of doing business, but it's a better value cost of doing business. So, yeah, I just want to make that point. >> Uh any other questions or comments? Uh okay. Can I have a motion to move this to propose to move this to the Rules Committee on June the 1st? So moved. >> Is there a second? Second. All in favor? Aye. Any opposed? Thank you. Thank you. Thank you, Director Folk. Uh item 4.01, items
045referred from other committees. I don't believe we have any. Item 5.01, old business. I don't believe we have any. Item 6.01, new business. Uh I would like to en- entertain a motion to add two agenda items to the new business. Uh one being the Auditor State Award and the other being the I Promise School parking lot pavement project. Is there a motion to add these agenda items? >> So moved. Is there a second? I second. All in favor? I. Any opposed? Uh the eyes have it and the agenda has been amended. So, first up, uh auditor state award, Treasurer Bowers. Thank you, Chair Montgomery. Uh last Thursday, we received the auditor state award for the June 30, audited financial statements. Uh this recognition is given to local governments and school districts, public entities that have
046clean financial audit report. Um this award honors public entities that demonstrate a strict commitment to efficient, effective, and transparent uh financial tracking. Uh this means that we've received a clean audit. The we must file our financial reports in a timely manner. They have some statutory dates. We met those those timelines. And our audit report also did not contain any findings for recovery, material citations, material weaknesses, significant deficiencies, uniform guidance, uh single audit findings, or any questioned costs. Um here again is a list of all the things that this means that we are accomplishing. I'm very proud of the finance department. They work hard to make sure that we account for everything properly, and this award uh demonstrates that. And I may have given you all a copy of it somehow, uh and I apologize for
047uh messing up the PowerPoint, but I think maybe I was just excited about this. I [clears throat] know, congratulations to you and your team. Uh that's a big deal, and I believe you told me uh this is putting us back on the list that we we didn't get it for a couple years, and so the team has come back together and rallied, and we're we're back on the award list. So, congratulations. >> So, we the one thing that kept us from getting it was the filing deadline. Um but we corrected that problem and we have now received the award again. Congratulations. Questions or comments? Uh, okay. Hearing none, the next up is the added agenda item, the I Promise School Parking Lot Pavement Project. Director Folk. Good evening again. I bring before you a need
048to replace the entire parking lot at I Promise. It has not been totally replaced since we purchased the building. We went out and sought uh quotes to do this and we have received a quote from Guardian, uh, which is a member um of a consortium that we belong to. This would be a two-phase two-summer project and for those of you who have been to I Promise, the first phase would be where the bus lanes are with the understanding that that's the neediest part. We have 20 buses that go and sit on this particular uh part of the parking lot twice a day and it needs to be taken off, rebased, and whatever. Then that was what we're proposing for this summer if you this moves forward if with approval and then the second phase would
049finish it out next year. So, the first uh phase item is for this summer is $217,752.21. Next summer it would be $189,086.06. This is not a CLC, so this would come out of your already established budget for next year out of your capital improvements, which is what it's standing there to do. So, we would like to move this forward so that we can certainly improve the parking lot and make it safe and travelable. Thank you. Uh, I have a couple of questions. Um, first of all, I think you've got them backwards. It says phase one is two >> I'm sorry. Phase two is 217. >> Okay. I have them backwards. >> is 189. Um, first question I have is have you used this firm before? We have and Gordian has also worked with us on
050a number of other things and this particular Empire Paving is an excellent company. Okay. And the other question I have is in the quote it talks there's two different lines for contingencies. One for payment repairs and one for pavement repairs after milling. Yes. So I guess my quick question on that is in previous experience with any paving company but specifically this one how often do we use these contingencies? >> It's rare that we have to do them. So they may not actually cost us >> They may not cost us this much but because this is the original parking lot that we inherited from the building we just wanted to make sure if something came up we had the money to make that improvement if needed. Okay. Questions from members of the committee? Member Jaros? Is
051there a reason why we're doing it in one year and then the following year and not just getting the entire parking lot done in one year? You can only really do this type of work when there is no activity on the school property because we will close and the last school day for students will be the 28th which is next week and staff and students will start coming in in August. We have to have a completely you know area done prior to arrival of the last week in August which is the 21st and there's no time to get them all done and still be able to populate the school. Okay. So it's a time issue more than a budget or >> Yes and and I will give you another example. When we did this particular
052parking lot some of you were here some of you were not. It was a phased continuous project but everybody knew we're not parking on the north of the property you have to use the west because this is the section. But because this is such an active location on the school day there are not enough days in the summer time between opening and closing etc. for us to be able to do this. Okay. Thank you. Other questions? Vice Chair Harrison. Um the consortium group that you mentioned we belong to, uh does that do we still send out bids or we just pick from a list? >> Actually, they do all the bidding for us as a group. This is a uh large consortium that a number of public entities belong to and they send out the
053bids and they uh they get input if we need to. It's rare we need to do this and these are state-approved uh consortium bids that are put out and approved that way. So, we do not have to put out a bid ourselves because we belong to the consortium. Okay. So, um did we and this is just for my information as far as two phases. Did we did we put it out did we did we tell them the dates that we needed it done by? Let's say, okay, the the first week of we have the first week of June to the middle of July to get this done. Did Did we put it out that way or we just told them we needed it done? When we went to the consortium group to look at their
054this is what we told them and this is the company that could come back and do it at that time frame. Okay. Any other questions? Uh if not, can I have a motion to recommend this to go to the Rules Committee on June the 1st? So moved. >> Is there a second? Second. All in favor? I. Any opposed? I's have it. All right. Thank you, Director Folk. Uh our next meeting will be June the 17th at 6:30 in this board room. Uh if there's nothing else to come before the committee, can I get a motion to adjourn? So moved. >> Is there a second? Second. All in favor? I. Any opposed? We are adjourned at 7:17. Thank you. >> Hey.