001All right, good evening. I'm going to call to order the Finance and Capital Management Committee of the Akron Public Schools Board of Education. Uh my name is Phil Montgomery and I'm the chair of this committee. I am joined by Vice Chair Harrison, Member Gerrosch, President Sites, Vice President Molnar, and Member Kelly. Uh and we've got uh Treasurer Bowers and Dr. Lash uh at the dais with us as well. Uh the first item on the agenda is to uh get a summary of the previous meeting. Those were attached. The last meeting was on October the 27th. The uh approval of the previous minutes were done. There was a request to address the board. Topics were discussed regarding the finances of the district. There were event information of board members discussed and unfinished and new business. With
002that, I would ask to have a motion to accept the summary of the last minutes. So moved. Is there a second? Second. All in favor? I. I. Any opposed? The eyes have it. Uh item 2.01, request to address the committee. Is there anybody in the public uh that would like to address the committee tonight? Uh seeing none, we will move on to the next agenda item, which is 3.01, the December financial report. Treasurer Bowers. That was a Thank you. Good evening, Chair Montgomery, uh Vice Chair Harrison, Member Gerrosch, and all the other members of the board. Uh tonight we're going to go over the December monthly financial report. Um Our monthly financial reports provide us with actual and projected totals and comparisons [snorts] for the month ended as well as for the fiscal year to
003date for our general fund. This report reflects both the month of December and the first half of our fiscal year, which runs from July 1st to June 30th. In December, financial activity trended slightly positively for the both the month and the fiscal year. Here on page three, >> [clears throat] >> the first set of blue, yellow, and green tiles compare our 2026 fiscal year to date revenues, expenditures, and cash balances for the same fiscal year to date uh amounts for fiscal 25. So far this year, we've received 16 million more in revenue, spent about 6 and 1/2 million less, and our cash balance is up 5.2 million. We'll go into greater detail on uh this year's revenues and expenditures on pages four and five. Uh just below that set of tiles is a second group.
004This is comparing the first 6 months of this school year's actual data plus 6 months of projected data to the forecast. Through the first 6 months, our revenue has come in 1.3 million higher. Uh we spent 918,000 less than we expected. And adding those together gives us a positive trend of almost 2.3 million dollars. If I could jump in real quick, Mr. Bowers, on the When we say the revenue's up 16 million and expenditures are down 6 and 1/2, but we only increased cash by 5.2, did we add additional encumbrances or what's the difference in that delta? It's I'm going to have to dig in on that. That's a good question. Uh just something that jumped out at me. Yeah, no, that's a good That's a great question. Um >> [clears throat] >> So here
005we have our uh bar chart showing our fluctuation in our cash balances throughout the school year. Uh you can see that we receive our pro- as we receive our property taxes in July, August, and September, and then again in January, February, March, it kind of goes up and down. Um And this year, we started the school year with 89.1 million, and we are estimating to end the school year at 80.9 million, which is about an 8 and 1/2% or 8.5 million dollar uh deficit spending. Here on page four, this is our revenue broken down into more detail. Uh in December, >> [clears throat] >> our total revenue was down 3 and 1/2 million when compared to Sep- to December of last year, and that's primarily due to uh timing in our TIF revenue. We received
006it earlier in November than we had in the past. Um in section two, uh this is showing our revenue collection through December is up about 16 million more than through December of last year. Uh the biggest increase has been to local taxes, where we we've received about 11.3 million more than uh than last year, uh reflecting our November 8, 2024 levy. Um All other revenue is also up by about 2.9 million than through this part this time last year, which again reflects our uh tax increment financing. It's a little bit up this year. On page five, this is showing our December expenditures compared to the prior year. Overall, our expenditures for the month were down 604,000, or about 1.9% when compared to last December. Uh salaries and benefits were down 0.2%, all other expenditures were
007down 65% with no significant variance noted in any of those categories. Uh purchased services, on the other hand, was up 21.9%, primarily due to an increase in pupil transportation of about 549,000 dollars. Here at the bottom, this is our total expenses so far this school year compared to last year. >> [snorts] >> Through 6 months, our expen- expenses have been 6 and 1/2 million or 3 and 1/2% lower than last year at this time. The majority of that decrease is due to the the 4 million dollar textbook adoption we didn't make earlier this year, and building expenses have been down about 2.8 million dollars so far. We've also spent about 747,000 less on supplies so far this year. However, we forecasted a 1.83% increase to our pupil transportation costs for this year, and unfortunately, those
008have been up 2.3 million or 16% so far. Uh through December of last year at this point, we had only spent 3.9 million. So far this year, we've spent 6.3 million. Page six. This is a summary of our revenue and expenditure detail compared to our forecast projections, which continue to be pretty accurate. Uh through 6 months, our revenue is trending 1.3 million higher than the forecast, which is about 0.37% of our forecasted 377 million. And then on the expense side, uh we're also trending very close. Uh expenses have been 918,000 less than forecast, which is 0.24% lower than our projected 387 million for the year. Any more questions on the the on the data so far? Okay. Here's our bank rec. Um It's the last page of the financial report. It it represents all of
009our funds, not just the general fund. On the left-hand side, our book balances. On the right-hand side, our bank balances. Uh at the end of December, we were maintaining a 211 million dollar cash balance. We perform this reconciliation every month as an internal control to ensure the accuracy and completeness of our financial records, detect errors and fraud promptly, and effectively manage cash flow. That concludes our monthly report. Uh thank you, Treasurer Bowers. Before I jump into any members' questions, uh I do want to let the committee know that I spent about 2 hours with Treasurer Bowers on Thursday going through this information. It's six pages of a lot of data and red lights and green lights and colored tiles, and uh even a [clears throat] financial nerd like me, it takes me a little bit
010to go through it. So uh he and I have discussed uh the preparation of kind of a one-pager for the board, for the committee to be able to disseminate. I will still get all the detail, but I want a I want a one-pager uh that's easy for the board to digest when we when we look at revenue and expense. Um so that's coming. Um just wanted to let the committee and board know that. Uh the one question I had on the bank rec, of the 211 million, how much of that is unencumbered? Do you know? Not off the top of my head, I don't I do not know. Okay. Uh questions from other members of the committee? Other members of the board? All right. I brought you two samples of a one-pager. I forgot to
011give them to you, but I'll give them to you in a second. >> Okay. >> [clears throat] >> I believe I'm up next. That's all >> Yeah, so we can then move on to item 3.01, the 5-year forecast, Treasurer Bowers. Okay. So, now we're going to go over the required financial forecast update. House Bill 96 changes submission deadlines, and now we're required to submit the forecast 3 months earlier than we have been in previous years. So, here we are. Normally, we'd be starting this in April. End of March, maybe. Uh one major one other major change to the forecast is that it's no longer going to be called the 5-year forecast. It's simply being referred to now in emails as the forecast. Um structurally for fiscal '27 and forward, the forecast will no longer actually
012be a 5-year forecast, showing 1 year of actual and five projected. Starting with next school year, it'll contain the current year revenue, appropriations, and fund balance assumptions contained in the budget adopted by the board for the fiscal year, and projections of revenue, expense expenditures, and fund balances for three succeeding fiscal years. Functionally, it'll be a 4-year submission. I call it the forecast, but it's like a bad joke. >> [cough] >> For this year, however, it'll still be prepared and submitted in this 5-year format. So, we've had some We have some good news this year, which we'll flesh out as I go through these slides. You can see a little bit of it of it already here. Uh in our forecast, we expect to receive $378 million in revenue and spend 386, which is uh deficit
013spending of about 8.1, but we started this school year at about a $10.5 million deficit spending scenario. So, we made a little progress. On the left-hand side are those cash balances. >> [clears throat] >> Here's our revenue broken out into categories. Uh our forecast of general fund revenue consists of $204.8 million in state funding, 156.7 in local taxes, and 16.7 in other revenue sources, like earnings on investment, rentals, and donations. Here is how our expenses are broken out. About 80% of our fork of our general fund is is um personnel-related costs, about $309 million. Uh 48 million, or 13%, is our purchased services. Consists of services rendered by personnel not on district payroll, tuition paid to other districts, utilities, all of those things. And then 28 million in all other expenditures, such as supplies, capital,
014and debt. Here's where we're going to see some of that good news I was mentioning. Uh the bar graph on the left compares in blue our revenue each year, and the orange reflects our expenses, which you can see expenses outpace outpace our revenue um tremendously. But over the next 3 years, we forecast is um >> [snorts] >> We forecast that at the end of fiscal '28, we are now going to end the school year with about an $18.6 million cash balance. In the August forecast, we were at -2 there. We've made some uh great strides. We have some good news in behind the scenes of this, uh but we can see that we still have work to do there. Our uh fiscal year '29, we are we are um we are looking at a deficit
015of >> [clears throat and snorts] >> I think it is I'm not sure. I don't have it right in front of me. Sorry about that. Um >> [clears throat] >> But over the next 3 years, we forecast that expenses will exceed revenue by 35 million. That'll leave us with that cash balance at 18.6, and at the end of five, we forecast that if we stay on the path we're on, our cash deficit could reach 112 million. Here is uh some graphics on the key changes in revenue expenditures, or the rates of revenue and expenses um Revenue [snorts] over the last 3 years increased 1.52%, but it's expected to only increase for 0.4% for us going forward. That reflects our state revenue declining. Um expenses over the last year have 3 years have averaged about 5.34.
016We're projecting that to only be 2.88. Here is a graphic of our days cash on hand. At the end of this school year, we'll have 77 days of cash on hand, and by the end of '28, 17, and afterwards, we won't have enough cash to uh meet our needs. This calculation takes our projected 630 fiscal year-end cash balance and divides it by the total fiscal year-end expenses divided by 365. Here's our district enrollment, uh which reflects an average decline of about 1.1%, or 218 students a year. On the flip side, here are per pupil general fund expenditures. We expect this trend to continue to increase at the rate of 5.17%, or approximately $1,000 a year. The next slide is our daily cost to educate a student here. We project that this school year, it will
017cost us $114 per day to educate one student. Broken down on the right in the orange and blue into revenue sources, state and federal funding, business tax, and other sources make up 77% of that $114, or $88, and of the >> [snorts] >> and the other 23% is about 26%, which is our residents' local portion. Not sure why there are all those zeros and ones down there. That was not there before I put this up here. It's interesting. And then our last slide, um this is just comparing our current forecast, this February forecast, to our August forecast. Uh we are positive on the revenue side by 477,000, and our expenditures are lower about 6.5 million. So, in conclusion, on the on the current path we're on, we'll be facing some serious difficulty in 2029. Um
018we'll drop below our board cash policy um of 60 days, and keep We will not be able to finish that school year. We do have some time to to get behind us, and we already are working on this. Uh that will positively influence this path, and I I think we need to continue to do that, because the sooner we do that, you know, the the sooner we can um get this moving in the right direction. That's that's all I have for that. Any members [clears throat] of the committee have questions for Treasurer Bowers? Mr. Chair. Other members of the board, President Sykes. Sorry. Thank you, Mr. Chair. Uh Mr. Treasurer, so is it 2029 that we also will see that we will have no cash on hand? Is it 2029? >> Yes, that's It was
0192028 in August, and we've gotten it moved back to '29. Correct. Which This also means we will not have to submit um the report to the ODE fiscal consultants, because we have gotten that removed. Great. Vice Chair Harrison. Um thank you, Chair. The student enrollment, um you gave us um demographics of student enrollment for um the graph. Mhm. Uh where do we get these numbers? These come straight from the state um ODE enrollment data for EMIS. Okay. >> It's a I believe these are this this is reflecting our December counts. Okay, thank you. The uh next question, last question, um you gave us cost per pupil, and I was trying to write it down. I didn't uh Mhm. So, it's $88 is paid for by non-local sources, and the remainder is $26. So, it's 114
020per day. Yeah. Yeah, it's 114 per day. Thank you. Other questions for the Treasurer? Okay. Thank you. Uh next up is item 3.03, construction updates. Uh before I turn it over to Deborah Folk, I just want to let everybody know a few of us, President Sykes, member Jarouch, and I uh attended the Pfeiffer Miller South update in the community. Uh President Sykes and I also met with the core team on North High School and the Book Depo press box project. Uh so, I've asked Director Folk to come give us a construction update. I know she has some of the core team with her today. Uh we won't spend a lot of time on Pfeiffer Miller South, but uh really want to talk through uh where things stand. I think President Sykes and I got a
021lot of information out of attending that meeting as to the status of North and Book Doll. And so, they're asking for inclusion of some things on the agenda for the full board on the 26th. So, let's get through some updates and some questions and see if where we stand with that. So, Director Folk. Thank you, Chairman Montgomery. Welcome to Vice Chair Harrison and Member Drose along with Treasurer President Sykes and members of the board. Good evening. On the Pfeiffer Miller South update, I've got three for you. Yes, we held our first our third community meeting last Wednesday, the 14th. It was nicely attended. And the renderings that were actually physically there last night that night are now up on the website as of this afternoon. And this included all the different colorings and layouts not
022only for the building inside, but also the renderings for outside. CT Taylor, who is the construction manager at Rusch, advised in the core meeting this last week that they will be releasing the first bid package in 2 weeks for site development. That is actually ground development including underground structures etc. They expect that bids will be back in mid-February. And the groundbreaking ceremony for the actual project for us to all attend is scheduled for March 19th, 26 at 11:00 a.m. on the Kenmore site. And we discussed shovels and everybody and who would attend. So, please look for that invitation. The second update has to do with North High construction project. We are seeking approval of the negotiated contract for Westfield Consulting Group, who ranked number one in the process of picking an owner's rep, which was
023approved on the November 3rd meeting. And we have added to the agenda for the 26th the actual contract. With that would we would like to seek approval so that we can add them to our core team. We were very fortunate that they attended the meeting last week in which President Sykes and Mr. Montgomery were here to introduce themselves. Moving forward, if this is approved, they would then start becoming part of the core team to help us develop the RFQ for the next part of this, which is to obtain a construction manager at risk. And the additional marketing efforts to seek community input for the actual options that were provided to you in the Friday notes as to how the property would lay out will occur at a scheduled event on 2/19 of 26. That is
024interim pickup night. And we have asked the team to be there so they can get further input and show those layouts to the public while we are attending interim pickup with Principal Morrison and his staff. And the last update is with the Book Doll stadium project update. >> Well, what if we pause there and do them kind of one at a time? So, >> I'm sorry. >> on the North High construction project. And we kind of talked about this in the core team meeting. We have a couple new faces up here and some of us weren't here when that was voted on and you put a lot of really good information in the Friday notes. But I guess just for everybody's kind of I guess my question to you is you said that Westfield Consulting
025was ranked number one. Yes. I would reiterate something that Dr. Molnar said earlier. If we can going forward, if we have rubrics or scoring mechanisms even on some of these construction and consulting, we may get them. I don't know that. Getting got my first packet. So, if we don't already get those, I would ask to see those kind of like that you sent the bid tabs on the Book Doll project. Just making sure that we know. So, with Westfield Consulting being number one, were they also the lowest of the bids or no? They were the lowest and the rubrics were contained in the agenda of the November 3rd meeting as part of the attachment. >> Okay, so what say we receive? Okay. >> that is correct. Okay, members of the committee, any other questions on
026North High? Yeah, I Other members of the board? I but Mr. Chair, I think that that the other issue that I thought was important that they talked about was the three options and they are recommending number three. Yes. And if you And this is the way out that they have worked on with the architectural team of Hassonstab, who have been the designers. They have gone through the SDs to start processing saying that. And one of the things that came out in the community meeting last fall as we started to engage with the students, the staff and the community was some discussion about is there any way to save some of the items including the gym. And that was one of the discussions that our core team took [clears throat] back with the design troop of
027Hassonstab and Moody Nolan. Option one was to be a brand new build, which was over the budget of 85 million. Option two was a reconstruction of it a little differently, which still was over the 85 million. Option three actually takes full consideration of adding and renovating the 70 structure cuz original building was from 1931 to this plan with renovation to that and laying the property to the north and what I would call if you're standing looking at North with Gorge on your left Yeah, my left towards [snorts] the fire station, the building would be on the west side with the field coming forward to be on the corner of Gorge and Talmadge. That [snorts] would be put there. One of the questions that Mr. Montgomery asked last week was this a full use field? Yes,
028it is full use. It would be 100 yards and it would take obviously football, soccer and if we ever added lacrosse, marching band etc. It would be more of a practice field. We don't have a full stadium component at this point in the budget, but we would still have a full use field. So, therefore we were seeking for them to be added to the team and we want to make sure that we reach out to the community during the meeting of the 19th of February to see what their thought about laying out option before we bring it back, but we would like to move this forward so that we can get this started down the path because in order to get a CMR, they have to know what the project layout is. And we'd like
029the owner's rep to be part of that discussion to move it forward. >> And just so we're clear at the November 3rd meeting, it was the board approved for you to enter into negotiations with the number one ranked >> with the number one. And so now we have that. You've done the negotiations. So, you're asking us to approve the contract, the agreement. >> That is absolutely correct. And is the final terms of the agreement any higher than what was originally bid? Like did the price change? Were there no prices in the beginning? >> The actual pricing came in at $18,000 a month and it is for the duration of the project through 20 December of 2029. So, that will get you a building open in 2029 and start the process to abate and demo the
030existing building. This will be a self-swing. So, students will remain in the old North, move over to the new building. We will renovate and put extra effort into abate and renovate what is left including the new gym. I can advise in working with the team that the size of the current gym, which is just wonderful, would not be necessarily size that you would get if you used a standard budget of 85 million for this. It would be a smaller gym and that is a well-used gym. And we would eventually also with the new build and the renovation give North two gyms, which they have never had. And then the under structure is planned to be support for the athletics, which it North is unique cuz it's on the second floor. And that under structure would
031be supportive of say wrestling rooms and locker rooms and other things that would support which would then face the front field that would be on the corner of Gorge and Talmadge as we are proposing in option three. Okay. >> [snorts] >> Vice Chair. You have a question? Just a quick question. As far as you know, I I know you were talking about some stuff trying to be saved. One of the specific questions was the artwork at the top. Yes, we have talked about that as well. And we are looking to see what we can similar to what we did at Garfield, did you remember? Some of the terracotta in Garfield is now inside along the gym wall. And we've also seen that we would like to or pastorally put that on One of the ones
032we talked about is the big Viking ship and what other terracotta could be included. So, the team is well aware that we would like to preserve some of that. So, when you say a smaller size gym, the capacity that we have now, what's the capacity we have now and what capacity are we talking with a smaller gym? A capacity in the gym right now is close to 2,000. The capacity you could end up with be about 1,500. So, I just want you to be aware that you'd still we get two gyms, but it is truly a well- preserved gym. It is in good shape. So, that yeah, the keeping the the 70s building would keep the current gym. Yes. Mhm. Any other questions? Not not so much a question, but I want to say great
033work with using the third option. I know my only concern with it was the field to make sure that it was competitive because I know North is a community that is very much into soccer and I'm very glad to see that the contractors were able to find a way to make that work so it's competitive. The other thing that we're looking for is some support from the community such as naming rights, things like that that we could also put some funding into that field as going forward, but that we have asked them to give us some ideas going forward on that as well. Councilman Harrison. Last question, the if we're going to keep the the gym I know there were some roofing issues, there were some heating issues. That would all become part of the
034renovation, you are correct. >> Okay, thank you. And the other parts that are currently also in that area is the child care location which is one of the paths that the students work on there and then the other part is part of the nursing items. They have fully vetted this with the staff at North and including Principal Morrison who has helped us figure out exactly what square footage each area is that we serve and to an earlier conversation tonight, this also includes keeping the family resource center as well to outreach those services to the community. Great. Member Kelly. Uh thank you Ms. Folk. My if we could go back to remarks made about collaborating with the principal to try to include the parents or the guardians of the students during the progress report pick up
035schedule for February 19th. Are you able to share a little more of what the ideas are and how we can get more individuals involved? >> Actually, we talked about report cards will be going out and Mr. Morrison said he would put some a statement in the report card and his local newsletter that is also out there. The team the last time they did this also was there to have anybody come up and look at the renderings and the original processes. They were actually asked questions, they could put ideas on what I would call a post board so that they could be included. So we're working with communications as well to make sure that those marketing efforts are put out there and we will make effort to include one or two person Lombardi as well so
036because we are very interested in hearing also his thoughts. One of the other thing that is very important about this, we have our team has been great, they have already talked to the traffic engineering department of the city of Akron because this is one of the hardest sites to get students safely across Tallmadge as they travel and we have been working with them to develop a plan if and get some insight from them as we plan this project. Hasenstab has met with them already twice. So we're trying to make sure that we can also make this as a safe environment traveling to and from school. In the past, I know that there's been previous like outreach to get the the guardians or the parents involved in these conversations regarding rebuilding North High School. Has what
037I am interested in knowing what has that feedback looked like? Has the turnout been what what you think would be expected considering that community is so large or was the turnout slightly disappointing because we didn't get the response we were expecting and if so, what could we do? What could I do to support making sure that that that information is sent to those that represent that school cluster? Uh the first meeting that occurred in which we talked to them a community was from 5:00 to 7:00. The 19th event starts at 3:00 p.m. and goes to 8:00 at night. Because it's interim pickup night, we expect more parents will be there to take in participation in this. We also will be working with Principal Morrison and his translators because many of these languages that we speak
038at North also may need to be translated and those translators have also been on site so they they can help interpret and put that information out to them as well. Yeah, I would that came up because the Principal Morrison said that at the community showcase for North, they had a lot of parent and family participation. So that model of getting word out to the parents that are going to come into the building was kind of where we came up with that idea to include that with the interim pickup. So it should we should for all intents and purposes be well attended. So it's our goal to do something new. President Sykes. Yeah, I Member Montgomery and I were at that original meeting and we were we did express our disappointment in lack of participation and
039we went through the whole process of how can we what can we do? Just as you have Member Kelly trying to figure how can we because we want the community to really be involved in this. This is an exciting time. There's great things happening there and that was those were some of the suggestions from the principal that perhaps we can't do it when cards have been when the report cards have been distributed. >> one of the things that we also talked about was the student leadership also being more engaged with the team and those are some other ideas that happened and as we transition Jennings into North, we will make an outreach to Jennings. There's always a trip to Jennings that comes and we will get that information as well. And that idea also has
040been discussed with Board Council two person Lombardi. I just to kind of bring it back real quick to the specific question of the committee for Westfield Consulting. I know Westfield's here if anybody from the board or committee has questions for them. Otherwise, I would entertain a motion to accept moving the contract to the 126 committee meeting agenda. So moved. Second. Second. All in favor? I. >> I. I. Any opposed? All right, thank you. Thank you. On to Book Doll. On to Book Doll. All right, I have an update for you. In working with the core team in which Mr. Montgomery and President Sykes was there last week, the team which is Beaver Constructors, they are your construction manager at risk along with Hasenstab, the entire project can now run concurrently to update the press box,
041the concession stand, the track, the restroom and storage over the same time period. And the timeline if approved to move the GMP which is on the agenda for the meeting of the 26th would be ground breaking in February with a mid-August date of 2026. One of the questions came up and I did confirm with athletics that the first home game would be 9/4 and some adjustments to the earlier different type of games are being worked on, but we definitely can be ready for the 9/4 home game in which Book Doll is the home team. Uh Beaver Constructors at the time we met last week, their guaranteed maximum price came in at $2,777,000. We received an update from them very late Friday night so the agenda was updated so the GMP is now a maximum price
042of $2,500,089.49. What was in the background and we discussed it excuse me, slightly. Um as you are aware, we have had a since 2003 the Ohio Schools Facility, it's now called the Ohio Facilities Commission um segments going forward and you close out each one. We recently closed out segment four and segment four involved Firestone, Case, Harris and um yeah, those three. Firestone, Lichtfield, Hasen Harris and we closed out segment five which was Ellet. We're in the process of closing out segment six. Those are they are working on the maintenance plans right now. Brewer Garrett is making those submissions on our behalf to the OFCC. Once that is completed and it should hopefully be done by the end of January, that allows the last funds that the state is holding to be released to us which
043total 1.8 million and that 1.8 million which Mr. Bowers and I discussed with Mr. Montgomery on Thursday and also his controller who is well aware of construction because Ms. Mills used to do all the submissions to Oaks which is the process for OFCC would be released to us and could be designated to help cover the additional $500,000 for the cost of this project if you approve the GMP as stated at the meeting of the 26th. Uh thank you Ms. Folk. So I just before I turn it over for questions, I suggested she bring a Publisher's Clearinghouse check and some balloons about the $20 million but I mean in the end I think that those will become separate issues as to what that 1.8 million gets allocated for. It's good to know that it could be
044a potential resource for this because it is unbudgeted money that we weren't necessarily expecting to get. So that part's good. It was good to hear at that meeting that the project can be done concurrently to meet what was perceived to be the goal of August 26th. I think we're going to have some dialogue as to what that looks like. So, this proposal is bathroom facilities and a concession stand and press box duly constructed and meeting the timeline. So, that's what's in front of us. I will open it up to questions. I'm assuming Vice Chair Harrison I will turn it over to you first. Um Thank you. Um Chair I guess my first question is what changed to get it to 2.5 million? Uh we from the 2.7 million? Is that what you're asking or from
045the 2 million that was originally budgeted? Well well my I don't even want to go back to my from 1.3 to where we are now. >> Okay. This is this is the cost. They have gone ahead and gone out and sought bids from construct This is Beaver Constructors. They have submitted bid packages. There are 23 of them out to a number of local and area contractors. This information is attached to the agenda for the meeting of the 26th. They received responses back and that is the cost that the bidders came in at to do the 23 packages. Site development, you know, demolition, etc. building and to do the demolition and abatement of the building which is currently there from 1955 to rebuild the building in new construction to upgrade the track in which the utilities
046will also not only be for the concession and press box. It will run on the under the track and down to the building that will house the public restrooms and the storage. So, this was able to be aligned correctly in order to do it, but that is the pricing that is currently available from the lowest cost most responsible bid responders to these packages. Okay. So, the the cost is I'm around it to 2.5. Yes, that's the guaranteed maximum price. Okay. And again, we we approved in May two 2 million. Yes. So so what's what changed to bring it to 2.5? >> It's the fact that that's the cost of the materials and services that are needed to go ahead and get this constructed. That estimate was based on the design and until you truly get
047it out on the street, which is now from as you said May up until this month, that's the cost per square foot that is coming across [clears throat] from the bidders that can do the work. How many bids [clears throat] did we receive back for that for for that that we Excuse me. I I have it all in attachments, but I didn't count it. Just a moment, please. Greg How many bids? I don't know. Beaver's not here. I am terribly sorry. It is attached in the bid document for January and I showed that to Mr. um Bowers earlier today that it was there. I just don't remember off the top of my head how many I mean, we got a bid for everything we needed to do on the 23 packages. And you had some
048people bid on all of them and some people not bid on any of them. Yes, sir. So, if I can just add to that jump in real quick. I I know there's conversation that it went from 1.3 to 1.5 to two to 2. All that stuff, but in in that time frame, I think to build on Vice Chair Harrison's question is you mentioned there's 23 components of There's 23 bid packages. That is correct. Over the course of when this first went out to now did the scope change? Did any segments get added? Has it always been 23? Has it always been the same project? >> It's always been the same project. That is correct. >> So, no scope >> No scope change. No. Um okay. So, then it So, then who performed the engineer's estimate
049of the original one I don't remember which number's right, 1.3 or 1.5, but that original one, who came up with that number? I will be honest with you, Mr. Montgomery. I was not included in that process at that time. That was done under previous Treasurer Thompson and previous Director of Facilities, Mr. Keenan. So, that was what was presented to the board in May. 2.0 million and I I'm sorry, I cannot answer that question correctly. I can certainly dive into it more for you. Uh Treasurer Bowers, is that something that would still be available in the Treasurer's office as to what went out at the time the original I can check. Okay. So we we did a request for a proposal go out with a request for qualifications? A request originally went out to find a
050as you are aware, a request went out to find a design firm. And the design firm was the original approval to bid on the project that was put out on the RFQ and the design firm was then elected to be Hassonstab. So, that's part of the process to put it out there. Once they did the design, then the second process went out. >> Let me Let me I don't I don't want to go too far cuz I want to come back. So, we did a request for a design first. Yes. Okay. And so when did the request for qualifications come in? Is that the same thing? A request for design and a request for qualifications? >> A request for qualifications went out to seek what firms you would vet to go ahead and put a
051design together. The board approved the request of the qualifications for us to negotiate with the number one design firm that was in the ranking and that was Hassonstab. From there, they went and and went out and did the scope based on the information they got to put the design package together. Okay. So, I'm looking at I'm assuming I'm looking at that now. That request for qualifications. That already happened. Yeah. Yeah, I I get that. Okay. And in that request for qualifications, we put everything in here we wanted. Yes, we did. >> A wish list, let's say. >> Yes. Okay. And we gave them a And we said the budget was 2 million dollars. So, we we get information back on that. Yes. Okay. And so when we get the information back on that, is that
052when we get back 2.5? >> No. You then went out and had to hire a construction manager at risk. And that was again an RFQ that was put out to find vendors who would become your construction manager at risk and they were also ranked. We then got approval for Beaver Constructors to be the construction manager at risk. At that point, they take those designs and put them on the street to get the pricing from the contractors that will go ahead and perform the work. That's when the 2.5 came back. Okay. So, and I'm just trying to get this straight in my mind so I know the right questions to ask. So, we we sent it out to a design architect firm. And we we told them everything we wanted. And we said this is our
053budget. Mhm. And they said, well, okay. Great. We we possibly can do this for for you This is what you want. This is what your budget is. We can do that. We can design that. That's what they're saying. We can design that. Mhm. And then okay. And so then we say we take this design and then we send it out to bidders. To the construction to find a construction manager at risk. Okay. So, we do that. And then the construction manager say, we like these designs and we can do this. Yes. But it's going to be at this cost. They put it then once we approved them as the construction manager at risk. They then put that design out on the 23 packages, you know, demolition, site, you know, development of the each project, etc.
054And this is the responses you got from the vendors that will perform the services. >> So, hold on. So, we secured the contract first. For the construction manager at risk. Okay. We secured that contract. So, we got this company. Yep. And now we Okay. We're going to use you. Mhm. So, now we want you to bid it out. Mhm. That's correct. Because the company is the construction manager at risk. They don't perform all the various types of bid packages such as abatement, demolition. They hire the people that need to do each package. >> Yeah, I understand that. But but we secured them before they ever did any before they sent anything out. Okay. You're the You're the lowest most responsive. Yes, that is correct. >> Okay. So, what makes them the lowest most responsive? Which
055one? The one we're using. Oh, you mean Beaver? Who Yes. Because that was the lowest most responsive bid for their services as a as a construction manager at risk. How many companies that we have >> had seven. Okay. And do we have the rubrics for that the how we scored >> they were they were attached to the time those? in which Beaver Constructors was approved by the board to be the construction manager at risk. >> meeting? Um I'm thinking it was November 3rd. Okay. So so I I I guess this is where I'm looking at. If we're securing the person or the company first and then If I could jump in, Beaver is only construction manager at risk is a service that they're going to perform as >> understand part of the 2.5. I I
056I understand that. We don't we haven't got to the 2.5 yet. We got the company right now. Mhm. Then they bid it out. >> That is correct. Okay. And then they came back and said, "Hey, we can do these designs." Okay. Cuz we have the architect tell us, "Okay, they can be done." Right. Or I'm assuming I know we have architects here. So I'm assuming an architect can architect anything. Um so we have the design. Mhm. We find this company this at risk company. Yes. construction manager >> construction manager and then we bid the project or we let we allow them to bid the project because they're incurring the risk and >> Yes. And okay. And so then they come back at 2.5. Mhm. Okay. And and I guess my I don't have any more
057questions. I would like to see the seven that came back. Okay. We can go ahead and give you that information. >> Yeah. Okay. Um I am more than happy to give those to you. Yeah. And and and I don't >> But we had seven responses and I'd have to go back. I think the rubrics actually narrowed it down to four that actually would have met the re- re- criteria, but Beaver Constructors was the number one ranked. Okay. >> And that is the under the revised code for expenditures of public funds. >> understand all that. I understand all that. Thank you. Dr. Moller. Thank you, Chair Montgomery. I'm trying to follow the line of questioning and I think it's developed a couple questions for me. And as we are looking at, we don't just have one
058building or project. We have several building projects. So the concept of the construction manager at risk, when we pick them or when they apply to us, do we have out there, you know, Hasenstab said that this could be built for $2 million. So when or whatever it is, really. Do the construction managers at risk, when they bid, do they know they're bidding on we would like to do this for $2 million? >> Yes, they are. Could Could I ask too, what was the length of time between the design thinking it would be $2 million and the bids that came in? Cuz you mentioned cost of material increases and things like that. >> Um if I remember correctly, and please I I'd like to be more specific. Um we selected this project to move forward and
059Hasenstab, I think was part of a July meeting to be the design firm. They started those designs to go forward and it was in mid-October they they were made ready enough to put a RFP out to vet for construction manager at risk, but I can certainly get you more detail, Mr. Montgomery. Mr. Gerace. Yes, I have a few questions of kind of like where the money specifically is coming from for this project. Is any of the money for this project being used with our capital funds or like our general funds being used? Is it all capital? >> is all It is all general fund. It's all general fund. >> is all general fund. And the $2 million? The $2 million. That The $2 million is from the general fund and then the $1.8 million that
060we discovered that we got back from the state, is that something that could be used for any purpose? Is it undesignated or is it designated for capital project specifically? >> Um Mr. Bowers and Mr. Atkins and I had discussed that as it's coming back from the state, it would probably related to construction. Exactly where it lands, it could possibly go into the permanent improvements capital funding for capital projects. It would not go into your 034 funds. Those are for maintenance of CLCs and stadiums were never part of a CLC build. They were what I would call it's a want, a need, a replace only. So you would not be a maintenance fund. It would have to be capital or maybe goes into general. We discussed that this morning. Once we realized what we could do,
061we're just not sure where the funds are, but that is up to Mr. Bowers to determine as he seeks Excuse me, advice as to where it gets placed. Okay. So the the $2 million is general fund and then this is potentially .5 of it could go toward this and it would have to be toward some sort of capital or maintenance project. Is there a way we can It's probably capital. Okay. Is there a way we can switch that and put the $1.8 million that we just received toward this project to free up more of the general fund? That would be a discussion with Mr. Bowers. So I'm in the [clears throat] midst of trying to figure that out. Reached out to a few places, but I need to continue to do that till I get
062a good answer. We don't have the money yet, but we're expecting it shortly and we're going to need to know where to receive it for one thing, but we we still don't know exactly just through the nature of how it's coming to us. Um what we're allowed specifically to do with it. So I'm I'm trying to figure that out as quickly as possible. Right. Cuz I mean if this opportunity allows us to free up more of the general fund, then that's a great opportunity for us. But that's 1.8 out of the 2.5 that we're expecting. Now with the GMP, that's the that's the maximum that they can spend. Is there an estimate of what they do plan on spending? They Is the project supposed to be less than that, but they're guaranteeing us that they
063will not go over $2.5 million? >> Actually, they have expenses equal to $2.5 million and if for some reason something or unforeseen came, which a construction project could do and that would go higher than that, we have to come back and get further board approval. How much of the 2.5 is contingency? Um I'd have to look at the budget. It's It's in contained in the budget stuff that we put there. I think it's two No, that's the wrong project. I'm sorry. I can't tell you that without looking at it. But there is a contingency fund. I'll I'll give you an example. There's a contingency fund for the um project that we discussed today, which were we had the core meeting today for Kenmore and that was $2.6 million for on owner's contingency. Reverend Hazel. Um
064I I I I I first want to say um that we need to build this stadium and and we need to build it as soon as possible. Um the community deserves the state the stadium and they can they deserve everything that we said we were going to put in that athletic complex. Mhm. Um now when this when Booker was built and and I'm saying we the community were told that you can't use the state money, the money that we get for the construction of the schools, you cannot use that for athletic facilities unless it was part of the build itself. Okay. So so I I I I I don't want to answer the question because the treasurer is looking at it, but I I just want to say that this stadium I want to use
065that as a rule as a guideline to how far back we have been talking about this stadium. Um again, we should build this stadium as quickly as possible, but there becomes some um some unreadiness on my part as to how we do this smartly. And when I look at the request for qualifications, the time left to build the stadium was 5 months. And and so to hear we are in a rush to do this to make it to September 4th. First that that that was never the board's deadline. The board's deadline was never the beginning of football season. That that date never came from the board. That date was implemented and instituted by the administration. And and it's always great to have a deadline. I I like that. But when it was when we sent
066the request for qualifications out, the time frame was from May to September to have this built. And so again, they send this out or we send it out for a um at risk. construction manager >> construction manager Um and and we send it we send everything that they gave us. Mhm. the architect firm >> Mhm. So we come back at 2.5 although our budget was two with an additional 4 months. It's still slated to be done in mid-August. No. I'm looking at the request for qualifications. It was from May to September. Is what the the the project was. The build. The original build. Yes. >> The original estimated time is what you're saying. >> Yes. It It was It was from May to September we were going to finish. I guess a lot of my
067questioning doesn't really stand because we have to build the stadium. We have to build the stadium. >> have to build the the improvements to the stadium, right? The complex. Okay, so we have to build it. I just don't want to be in a situation where we're building it at any cost. I understand what you're saying. Thank you. >> Thank you. Any other questions? I I I member Kelly. Thank you member Montgomery. You you made a comment about it wasn't until Friday that we you received confirmation from Beaver Construction. I actually had two original GMPs to them. One of them was to do the entire project at 2.7 million and another one was at 1.9 which would have only not included the restrooms. That was not the intent of the board and they came back Friday
068night and because the design fees were already you know design was already done that lowered some of the other designs that needed to be included and that lowered it from 2.7 to 2.5. So when I received that on Friday knowing that we wanted this to move forward I immediately gave it to the superintendent and to Mr. Bowers to get it on the agenda at the correct price cuz your original request was for port 2.7 and to save the additional 200,000 was an important part of making sure this is cost effective as possible. Do you know when those items were added to the agenda? I actually met with Mr. Montgomery and Mr. Bowers on Thursday am I correct if I remember the dates to go over what I would present tonight at the finance committee meeting
069and I had that all in the agenda Friday night before I left cuz I help I had Miss Yvette help me add something to it so I could have it and then if we followed that up following the meeting that we had with you and Miss President Sykes in the scrimmage. Okay, thank you. I also wanted to it was asked how many attachments were included with that agenda item and there are four attachments. Yes, three of them are um the bid tab the original listing of vendors that [clears throat] went out and obviously the contract as well and then there's an additional attachment for Beaver because I'm sorry for Westfield because that has their contract in it for North. You are correct there's four attachments. Thank you. Reverend Harrison. My last question. What is the
070risk of sending this back out? It will delay it completely and you will not get it done in time for the summer meeting. I don't know that you'll get anything else. You're saying to have the to Beaver to send it back out? No, if we sent if we sent it out back out for the construction manager at risk. Then it will halt the project because you've already approved the construction manager at risk. >> We're already in a contract with them. We we approved it at a cost. Okay, well we'll talk about that later. We we approved it at a cost. President Sykes. Um Thank you Mr. Chair. So just to be clear that we're not talking about building a stadium we're talking about improvements to the stadium and that's that is very important to know
071because the state has said that we will not that they would not contribute to a stadium. So this is not contributing to the building of a stadium and this is an improvement to the state. And the construction management at risk we've already approved this. That is correct. [clears throat] >> This is the usual process that we go through and we do that because we don't have anyone on staff that can provide us with those services. >> is correct. Okay. So um uh you know I I would agree that the community has been waiting on this and um uh and and I'm very supportive of this project and I believe we should move post haste with this project. Any other questions? I just want to make sure that we're aware before we take the vote that
072there are some pending questions that we kind of lobbed around and I want to make sure vice chair Harrison's questions get asked. So I would ask to entertain a motion to approve moving this to the full agenda on the 26th pending the answers to those questions and with that I would entertain a motion. So moved. Second. Who seconded? Either I Second. >> [laughter] >> Second. All in favor. No. Any opposed? Aye. All right. Last up and I'm going to ask the treasurer to keep this brief. Thank you Madam Folk. Thank you. Item 3.04 miscellaneous finance updates. I'm going to put an egg timer on you for about 90 seconds. Thank you Mr. Chair. This won't take long. I just want to run through the current events that we're we're we're working on in finance the
073performance audit. I have not heard anything yet. I'm still waiting for them to get back with a start date. The financial audit is winding down. I'm hoping that'll be soon but we got some requests today for data so that's still going on. No no nothing's come back to me on Steve Keenan filings either. Just want to make you aware of that. In the payroll function we have we have a new payroll account clerk for starting the 27th. Her name is Amanda Hetrick. She's an internal candidate. She's moving up into our department. We're very excited to be fully staffed again. And then retroactive payroll processing we're currently working on the NBE gray MOT and 689 groups while we're doing W-2s and starting the payroll counters for next year. That's all I've got. Okay. >> [snorts] >>
074Any questions for the treasurer Madam Real quickly the performance audit do we have a date yet when that will take place? I have not heard back from them since before the holidays so it's probably time to reach back out and see what's going on. Okay. And also I would be interested in letting knowing when we could that's one of the groups that we can sit down as a board and talk to before they actually start their performance audit to put emphasis in the area in the areas that we are interested in and really focusing in on. So if you could ask them >> [laughter] >> when when they may start and when we can meet with them as a I will do that in the morning and I'm also going to remind us that we
075throughout that audit can get together and it's not considered a board meeting so all the board members can get together and talk about what they're what's going on in there. That's what I was talking about. Yeah. Any other questions for the treasurer? The only thing I will re-emphasize is the five the forecast is due at the end of February. We'll have a couple more meetings to discuss items as that gets finalized so we'll vote on that in February. The there is no need for an executive session. Our next meeting will be Wednesday February the 18th at 6:30. If there's nothing else to come before us we are adjourned at 7:38.