001Good afternoon everyone and welcome to the finance and capital management committee meeting. I am Barbara Sykes the uh chair of the committee and joining us today are the is the vice chair of the committee uh pastor Gregory Harrison and a member of the committee uh Dr. Molinar as well as the president of the board, President Jackson. We're also pleased to have our superintendent always with us. Welcome, um, uh, Superintendent Utley. And today we have also present with us our new inim treasurer. Hello. We didn't hear that loud enough. Hello. Hello. And just so we can just start this off, why don't we just start off real quickly just telling us a little bit about yourself. Let us hear your full name. Uh my name is Richard Wayne Bowers I um and I understand that you
002are a uh current employee of the Akan public school before being appointed ins treasurer. Yes, I've been here nine years now. I started in 2016. started out doing revenue for the finance department. I moved into the assistant treasurer in charge of payroll and I've been doing that for seven years now. Great. Great. We're pleased to have you as our interim treasurer and we we look forward to working with you. So, we're going to get right into the committee. May I have a motion to u approve the previous minutes, please? So, move. So, Pastor Harrison, thank you for that motion. Second. Thank you, member Molina for the second. And all those in favor? I I those opposed? No. And I am doing this today because we have our new inim treasurer and so this is a
003little bit different for him. So, I said this meeting we're kind of going to walk you through it. Next meeting he'll be ready. So, uh, let's let me just start by saying that there have been some individuals who have requested to address the board. Uh, and before we do that, let me just uh uh ask Pastor Harrison as a member Mona, would you please read that uh that little piece there for us? Yes, Chair. Participants will not be permitted to speak on matters related to vendor, business matters, formal complaints, grievances, specific students, or student records, personnel matters, and or pending legal matters. P participants must speak on matters related to the business of the board. Please keep your comments to three minutes or less. The board will not respond, but will assign through the superintendent
004the appropriate person to follow up. Thank you, Pastor Harrison. Now, as we before the meeting started, I said that I know some people had we you have signed up uh to speak here at the finance committee meeting. Uh we do have a special board meeting after this meeting. However, we would prefer if you would please if you would like to speak to speak now uh during the finance committee meeting as opposed to waiting until the special uh board meeting unless you have some strong objections against that. Okay. Thank you. Member Molinar, would you u call the first person? Yes. The first name on the list is Gerald A. Fiser II. [Music] The microphone. [Applause] Good afternoon. I appreciate you guys taking time out to hear me. Uh my name is Gerald Fischer II as very
005well mentioned. Uh just turned 48 years old. Been a Akran Firestone Park resident my whole life. Proud to be an Akran resident. Uh will always uh honor and represent Akran strong. Uh that being said, I have a history of coached Firestone Park in the past. I coached Kenmore youth wrestling in the past. Um, I have a passion for uh a few things. Children uh is one of them. I have four of my own. Love them to death. Always there for them when they need me. Uh that being said, uh last year I was fortunate enough to latch on to a job with uh Templeton Transportations doing uh transportation for the school students. Um I spent 6 to 8 hours a day uh with them. uh got to know them well. Uh their parents and I
006clicked at the end of the year. Parents were taking pictures with me. They they loved me, loved our company to death as I did them and do did their children. Uh doing the community a service such as that is an honor for me and I appreciate having that honor. Uh I have no plans on stopping that. I could do that for the next 25 years and be pleased to do it. Um, that being said, when we started last year, um, it was my understanding that Templeton was a supplementary company to take over kids that had no routes, no, I'm sorry, no transportation on those routes to get to and from school. Uh, that being said, as a supplementary company, I know that we stayed really busy. Uh my I myself as I just said drove
007six to eight hours a day depending on what month and what kids came to me and and did you know moved out of the district or whatever. But I I had that uh going into this year uh me along with quite a few others. Uh oh 70 plus is the number I had heard. we were all uh counting on looking forward to and had a had jobs to to also transport these children this year to and from school. Uh I even have a couple friends that that I got into it and they're excited about doing it. Uh good people. Uh, I got to meet a lot of them over the time and they've all got good hearts and great people and churchgoers and and you know, it's just our community, the Templeton community is a
008great blessed community. Uh, I just wanted to give my concern out that I was told that we may not have jobs coming up in 3 or 4 days due to other reasons to my unknown. But that being said, I'm concerned and really confused on why that is because I have a family to feed. Thank you for your time. [Applause] Second name on the list is Lisa Densen. Hello. Good evening. Um, thank you. I appreciate the time you're taking to listen to our concerns today. I did email and left voicemails for each of the um, members of the board so you can basically see what I'm going to say in writing if you choose to read that later, but I I'm just going to take an excerpt from that. The um, heading of my email is
009urgent request for clarity and support an APS van transportation roll out. Um, I won't read the first half. That's about how I became a van driver. But, um, I will start here. In fall of 2024, I attended an APS job fair and I was a substitute teacher. It was rewarding, but I found it I found it difficult to balance the classroom demands with um, caregiving, which I do for both my mom and my grandson. Um, a friend consider suggested I consider van transportation, which would let me be present for my grandson. 's neurode diversion and whilst and I could still support other children in our community. I took the leap in the spring of 2025 joined Templeton transportation and I absolutely love that because I'm able to work more um one-on-one with you know a
010smaller number of students. Um I'll admit that I didn't closely follow any of the public dur debate following the APS's shift to contracting transportation services through an external provider. I simply applied with Templeton and I was impressed by their professionalism, onboarding and commitment to compliance and safety. I have nearly 20 more than 20 years of independent contracting experience and I could recognize their organizational integrity immediately. But as the um school year starts just days away, it appears we are facing confusion around how van routes are being assigned. So I came today to kind of help ask for your um help in understanding that and in clearing the way clearing that path. From what I understand through public reporting um the initial roll out was bumpy. Um there was you know there was some issues but
011after much public debate I think the board made a wise decision to amend the plan and include two transportation vendors. So despite that decision though, Templeton drivers have not received any student route assignments for the coming year. And that raises several important questions. Okay. So I'll just go through my questions. What is the board's intent for both companies to receive route assignments concurrently? Um was it that was that the intent? Is Templeton considered a supplemental provider? And if so, was that clarified in the contract? Why haven't any routes been assigned to Templeton as of today? What criteria are being used to determine assignments? And why does there appear to be a disconnect between the board's directive for two transportation providers and how it's being implemented? On behalf of the families um that I've served and
012I hope to serve this year, I respectfully request your swift and clear direction to resolve it. Thank you. Third name on the list is Crystal Curry. [Applause] Hello superintendent, members of the board. My name is Crystal Corey. I'm a lifelong Akran resident. I attended Firestone Park Elementary, Roswell Kent, and Garfield High School, class of 2007. My son is currently a gifted and talented student at Nif ST STEM Middle School. Um, I have been an independent contractor since 2011. At Garfield High School, our motto was enter to learn, leave to serve. And I've been serving as an independent contractor van driver since 2011, taking lots of students with lots of different needs. We have been doing this for a long time. I have sat through these board meetings and listened as this went down. We were
013told via the transportation department that both of these companies as well as sitting here listening to these board meetings that both of these transportation companies would be used and we could choose to go with either one of them. There are many people on our team that have been serving as van drivers for years in this district. We have chose to choose Templeton. I am very proud to be a Templeton driver and we are now sitting here three days away from school starting with no routes. It is unfair. The way that this is being played out is not happening fairly. We have listened as we were told that that we would be the secondary company. It was reiterated that Buckeye would be primary. Templeton would be secondary. That was fine and dandy for everyone as long
014as we get students. From my dictionary definition, primary means 51 or more percent, secondary means 49 or less. We have zero AAN public school students with 3 days until school starts. That is not secondary. That is supplementary. That is not what I believed was the intention of the board. I was very pleased when the amendment was made mid meeting to say Buckeye and Templeton will both be used. We have sat quietly through all of these meetings at the request of the board that we are not to speak about this. We have listened as the other drivers have. I have been on that team. I have been on the entire team for this district fighting and we do not understand why 3 days till school we are still with zero students. This is unfair. I have
015a child to provide for. I love this job. I love the ability to be able to spend the summers with my child and still do this. We really just want answers. We don't understand why we were told that we were the secondary company, why a plan was formulated from the people in the administration, the people in the transportation department. They had it all worked out. They had a plan. You guys may not realize that this has now become Buckeye versus Templeton. And there's there's conflict now. It should be van drivers versus the administration that was trying to take away our jobs. It's no, it's no longer van drivers versus the administration who was trying to outsource our jobs. It has now become Buckeye versus Templeton. I have watched drivers be scared to put Templeton on
016the side of their car because they're being bullied by these other drivers. I am watching today as Buckeye is poaching our Templeton drivers. We have lost drivers this past week because our organization is being transparent in telling our drivers that we don't have work. We have lost multiple drivers to Buckeye this week and that is not right. Thank you. [Applause] [Music] [Applause] Thank you very much. Uh so as uh uh you heard we will not respond to this. However, we will refer to the administration uh to uh speak with any individuals that would like to speak to the administration about this and try to bring some clarity to this. Uh so we had three individuals to sign up so there's no confusion. Uh if you were planning on speaking during the next meeting, this would
017be the time you would need to speak. So is there anyone else that would like to speak on this? If so, would you please come forward? We would need to speak at this one. Yes. And as you come, just know that uh we will I'm sure the president will let the other board members as well as we will let the other board members know what your concerns are. Uh but we will ask if you would speak and I I appreciate you. I appreciate you doing that for us. Thank you. Could Could we have your name, please? Stacy Burgdorf. Could you spell your last name for us, please? B as in boy. E R G D as in dog. O R R F as in Frank. Great. Thank you. My name is Stacy Bergdorf. I have
018driven school transportation for APS for 25 years. I felt very secure about my job until 22 23 school year when APS without the driver's knowledge hired a company agreeing to pay them double what they were paying the APS drivers and giving them first dibs at the routes leaving only leftovers for the veteran drivers some without a route at all. The drivers came to the school board asking for answers and to consider our loyalty and experience to APS. Dara Jarvis Templeton and her late mother Sandy Jarvis were longtime veterans to driving van for APS as well. Dara has had a business with Canton schools routing all their vans for several years in addition to driving for Akran public school. When Dara heard from Akran drivers what was happening, she wanted to help the drivers and friends
019she worked alongside for years. Akran 2 was trying to switch to a company at the advice of the state. However, they were excluding all the loyal drivers that had serviced them and their students for 20 plus years. Templeton Transportation submitted a contract to APS for a lot less cost to APS as well as hire all the current APS drivers and paying them more. A large number of drivers rejected her offer wanting to remain independent drivers. APS approached the board to hire Templeton alone for 2324 school year. The board wanted to do right by the past drivers and agreed to only hire Templeton to drive routes that weren't covered by APS drivers. Temp Temp Temp Temp Templeton had necessity to hire 52 drivers last school year to cover all overflow students that were passed to them,
020310 students. Many of the original APS drivers got together and decided to start their own business and submitted an offer to the board. Templeton resubmitted their contract in order to continue to provide service to APS students. Both offers were accepted saying that both companies would equally utilized as to allow all the same drivers from that school year 2425 that serviced our students to continue to drive the current school year 2526. We all renewed our commercial very expensive insurance contracts. We paid inspections. We got physicals. Some even bought new vehicles. Route pick days were scheduled and repeatedly rescheduled due to the lack of APS providing any students to us. We are all beyond stressed and sick to our stomach that we will not receive work needed to make our van and or insurance payments as well
021as bills and family obligations. I believe that there is enough work for all drivers, no matter what company they have chosen to work for. I want all drivers at both companies to succeed in continuing to service our students as we have for many years. Templeton met with the superintendent last week and he couldn't tell her whether sorry when or if we any students would be given to us. Please hear me and all my co-workers and know that we are people not just a company. We've worked closely with our students and their families and treated them as our own and don't want to let them down. So please don't let us down. [Music] Thank you. So we are about to go into the finance and capital management committee meeting. As I said uh we will immediately
022go into the uh regular uh the special board meeting after this. You are welcome and encouraged to stay. The majority of the board members are here now. However, uh but the remaining board members will be here if you would like to stay and think of having a conversation with them at the end of the special board meeting. You are welcome to do that and we encourage you to do that if you would like to. Uh Miss Dawson, I think you mentioned that you sent us a a text, I'm sorry, that you sent us a an email. So I I think I remember receiving something from you was a a telephone message but not an email. So maybe you want to try resending that to us. Okay. Thank you. I also did not see your email
023and I'm very glad that you said something. I searched for it and it was in my spam. So if you speak to other board members it might be in their spam also. President Jackson, did you have something you want to address? Thank Thank you, Madam Chair. Yes. Same. But I don't I don't know if it's in my spam, but when you were up talking, I went to search my phone to see if I could see your email um just to be sure. And I just saw the voice message. So, I'm about to check my spam now just so followup can be so we know what's going on so we can How should I resubmit it? No, you your voice message is there. Remember Molar, she had it in her spam. So, if anything, she can
024forward it to us. If we don't, it may be in all of our spam. Thank you. And we should be looking for Lisa Densa. Yes. There's more speakers. Another speaker can't go at 5:30. Well, I need you to fine. Come on up. [Applause] Hi, my name is Angela Gardner and I've been a van driver for 10 years, taking a few years off. I returned last year and drove for Templeton. I formed some great relationships with students and parents and teachers alike. I've even had grandmas contacted saying their child wanted to come back in my van and asking for transportation phone number. I've had a teacher wish I could be the van driver again as well. Please allow me and my co-workers to continue to impact these students and continue a relationship we built with the
025teachers as well. Thank you. Okay. So, I want to make sure is there someone else? I just wanted to let you know I also sent an email to every Okay. And what was that name? Crystal Curry. Crystal. Okay. Yes, we will look for that also. Thank you for letting us know. I did too. All right. Thank you. We will we'll do our best in reviewing those those emails and and getting responses to you. Thank you so much. All righty. So, let's go into the finance uh and capital management committee meeting. Uh so, we have approved the previous minutes of the meeting and uh so our interim treasurer, we would like to hear from you on our monthly finance report, please. [Music] Good evening, U member Sykes, Reverend Harrison, and Dr. Holler. Uh we're going to
026be looking at the July um the July financial report for um for Aken City Schools. Um we're going to start on page three. You can see the the blue tile here. This is the total revenues for the month or the this is this is the change in revenues for July of 24 versus July of 25. Um, this page is an overview of where we are at the end of July. So, we begin by comparing the July 25th actual revenues and expenditures to the same for July of 24. And as you can see, uh, timing is key here because we've only got one month that we're looking at. So, we're 7,000 7 million higher this month than last July. And that's in uh because we received some uh tax payments earlier this year than last year.
027And you can then see that the total expenditures for for July were lower than last year. Last year in July, we had a um textbook payment we made in the month of July that we did not make this month. Um and the the cash balance is lower this year, but we're expecting that as we uh work down our our cash balance. Um revenue is trending a little bit higher. Now again, this is just one month's worth of data. So a $16,000 favorable um variance versus last year. So not much to go on for one month versus you know the whole year. So, and then expenditure trend is also favorable compared to the forecast for last year. Um, and the net potential trend is, you know, negligible compared to our $460 million budget. So, um, this
028bar chart here at the bottom shows the es and flows of our cash in the general fund over the course of two years. The gray bar is the fiscal 25 and the blue bar is the actual cash for this year so far through June. And this goes through June of 26. And you can see how our um our revenue comes in and out in the in the in the fall we'll receive our full uh settlement for taxes and then we'll eat away that balance towards the end of January and then we'll start to get some advances on that again through February and March. it'll go back up and then we'll start to eat that away again. On the next page, this is just more detail. These next two pages are dig into the actual revenues
029and expenditures. Again, we had talked about how the the property tax um collections from the county change year to year based on when the county receives payments from the taxpayers and banks. Additionally, this represents the so this this revenue is also representing the additional levy passed in November. That top box there is just showing July versus last year and those are the more it's more detailed uh box for that. Um box two actual revenue received through July compared to the prior year. Um, this is just again detailing the first blue tile we saw on the first page where we talked about the revenue being coming in sooner than we did last year. Um, the final page this is where we should keep our focus. It it compares actuals plus projections to the May forecast. As
030you can see, there's very little variance compared to the forecast. Uh we will continue to monitor this page closely as we um progress through the year. This is that's still the third page. Sorry, this is the last page here. This is this is what I was mentioning. Um our revenue trending is positive and our revenue expenditure trend is also positive. But again, it's only one month. So, and this is comparing it to the forecast. So, we're projecting against these numbers here. Right now, we're only off 01% to our forecast and it's not even calculating a percentage for the revenue. Um, there any questions on on that? Thank you. Are there any any questions? No questions. Uh but but we are still dealing with our temporary budget. Yes. This is still you want to make note.
031So we have approved our temporary appropriations resolution that went into effect July 30th and then September 30th we'll adopt our final appropriations resolution. Right. So that so you're saying that the state of Ohio has not given you those per those those final numbers yet. um right to find. We developed those numbers over the summer based on any changes that we may have found uh between June and and September. And from what what the legislators voted in? Yes. We're monitoring that very closely. House Bill 96. Yeah. So, when do you expect that we will have the the our permanent budget? We have a board meeting, I believe, 9:15. So, we're going to look at it at the 82 whatever the the next finance committee meeting 8:15, I think. Okay. We'll look at it then and then
032we'll get it into the board meeting right ahead of that. All right. Great. Thank you. All right. Let's go into the uh just a real quick overview on where we are with the five-year forecasts. Okay. So, House Bill 96 came effective June 30th and they revised all the deadlines for the forecast submission. Um, the initial filing is now due by August 31st and then in February they've moved it up to February 28th. Now, this for this year only, the forecast is due October 15th. So, we have a little bit more time. We have 45 more days to get it in place. Um, we do have a finance committee meeting scheduled for 9:15 and a board meeting scheduled for 9:22 which allows us to get that in place in time. We are working on the forecast
033right now. We pretty much have it nailed down. So, we will have that soon and then we can start talking about it. Okay. So, we should bring that before the committee. We'll take a look at that and then we'll have enough time to bring it to the full board so that we can approve the five-year forecast in October. When is it due? Is it due? The first of first part of October or last part of October? It is due October 15th. October 15. Middle of October. Okay. Yeah. Right. So, we're Yeah. Okay. And uh next on the agenda, I'm sorry. The It looks like I have my dates wrong up there. The So, if the initial filing is due August 31st this year, I think our finance committee meeting is I'm sorry I this looks
034wrong to me. Okay. Because we can't have the finance committee meeting after the No, we cannot. Right. So at the eight. Do you think it's actually Do you think it's actually in October or do you think this is a a misprint? I think October. I think it is October. It's October. Where's all these? Do we have the dates for the It's October. I'm Oh, don't worry about it. Don't worry about it. That's correct. October. Yeah, this is October. So, we're going to So, we'll we'll we The main thing we're concerned as a committee and a board is that we're on schedule that you would have enough time, you're working on it now, that you have enough time to submit it to the committee. We'll have enough time to talk to the president and other board
035members and they will have enough time to review before you ask the full board to vote on it. Right. That's what we want to be able to do. I'm just nervous. For some reason, my brain was telling me September, October. Don't worry about it. We have We have enough time. We have enough time. Okay, that's fine. And then let's look at uh we we talked a little bit about the uh uh performance audit. Yes. and whether or not we wanted to do a real serious performance audit. Could you tell could you give us a little bit of information on what that would entail? Sure. So, and the cost? Yes. So, we can start with the cost. So, our financial audit costs about $60,000 a year. Woo. And I would imagine that a performance audit would
036cost at least that much if we did the full-blown performance audit. These are the areas that they would focus on. We have a financial management, human resources, facilities, transportation, and food service. Uh we could pick and choose from that menu. We could do all of it at once. We kind of feel that we may want to focus on financial management and human resources and maybe facilities, transportation and food service have been have very steady leadership there and they run pretty well. So we could ask the state auditors for that that type of um quote, you know, to see if that would bring the cost down. I can tell you we did have a performance audit here in 1998. They gave us back 378 pages worth of information. I still have that and I can provide
037it to you if you'd like to read through it just to get a sense for what they do just in case we don't have anything else to do. Yeah. It's not I didn't want to bring it up to give it to you right away, but there 378 pages, right? Yeah. So like the financial management section would have 80 pages of its own. So it's very detailed, in-depth. It's nice to have a third party look at your facilities and everything and tell you from their point of view because you know that that might help us figure out where we can make some efficiencies. Okay. Um again, yeah, it it takes about 8 to 10 months to complete that audit and it takes about eight months to get them in here. So, we're looking at a long-term
038commitment to getting this going. So, if we're interested in doing that, I would start that conversation now with the state auditor rep that we're talking to and see what see how soon we could get that quote and then bring it back and see what you guys think. Okay. Are there any questions about the the performance audit? Well, so I think what we will do is kind of get the opinion of the superintendent and on how she se this and the advantage of that in the board as a whole and then the president will probably we'll get back to Okay, Madame President. Yes. Thank you, Madam Chair. Typically, what is the normal um cycle for because since 19 I graduated Garfield High School in 1998. I'm 45 years old. So if this because it goes through
039each system because how it said broke down you had each area that it looks over. So the question is how often what is the cycle period uh for performance audit that's it's a two I had a followup after that. What's the regular cycle? I don't know that there's a cycle. I think as a district starts to feel like they may need a third party opinion on what they're doing, you would bring them in. I I did performance audits back like you're saying in 97. I worked on Youngsttown State. I don't know if they've had one since then, but you know, if we've had a lot of change in leadership, a lot of different ideas have flowed in and so there's a lot of potential to tighten it back up. Possibly this could show us where
040we could do that. All right. I just wanted like that's good. And so, as you told me, it's like 300 and some odd pages whenever this is done. And so being that you've done this, I know from my position on it, I would like for you to then inform us what the audit is saying. Like give us some insight at hey like maybe focus in this area like high level because if you're working with it and it's your department. I'm just I just want to make sure that's a reasonable because if we do something like this, I will want to be informed from the Treasury Department and who's working with the auditors like a key areas to hit and just give me a general summary which I can go back to if something sticks out
041on a certain page then I can delve deep into it not necessarily just read through it all. I mean, I will if it come down to it, but if I can get high level insight um I just Sure. that's just I just want to um put that there because it seemed like this would be something important especially with a lot of turnover to make sure we're doing stuff with fidelity. But thank you. Thank you, Madam Chair. Uh so I think that would what what is the actual process? So the auditors would come in you you first of all we would have to get on their schedule. uh it takes 8 to 10 months for them to go through a performance audit. Then you would in working with you and your department and then you would
042uh get the report and there would be a summary I'm assuming uh that would be in the summary but I think the president is saying even though even with that summary we would still want your department you and your department to go through this and then to make recommendations to the board and to our superintendent as to where you see adjustments changes savings savings can take place because if we're going to be asked to spend $60,000 or more is with the understanding that we're looking at how we can adjust the management of the of the school system to where we may be uh maybe doing things where we could do it a little bit more efficiently and save money. So then we would expect you to come back or your department and make those recommendations
043to us in sureation with the superintendent. the the finance department would coordinate it. Yes, for sure. With, you know, the superintendent's office and we would analyze whatever they give us. You know, we would for sure look at that as detailed as they give it back to us. I don't know that there would be installments of it. It might just all come at the end. So, we'd have to be patient, but maybe we could through what they're asking us for, get a sense for what they're, you know, what they think is important. So I think it's a good process to go through especially after 30 years of almost 30 years of waiting to you know go through another one. So of course yeah we would we would provide that coordination and I've also done one so
044I'll be here. Yeah. So I I know the process. Yes. That is a unique situation to be in that you've actually provided a performance audit. Okay. So, how soon would you need something from the board? So, the next step we there's an application that we have. We can fill that out and then submit it if you'd like or we can bring it back to the next finance committee meeting. You can look that over and then we could submit it. Uh, however you'd like to do that. And if you'd like to do the peace meal, like couple sections first, maybe we could do two at a time, like, you know, like piece it out or do it all at once. just however you feel like you'd like to do that. And how does the payment can
045we get on an installment plan? I don't think so. That's not how the auditors work, unfortunately. No installment plan. That'd be nice. All right. You know, never know if you don't ask. All right. So, we would have to pay the money up front. It would come at the end when when they're done. At the end. Okay. All right. Thank you. Any other questions? All righty. Thank you very much. So, next up we have uh just to give us a quick uh uh comments on what's happening with the uh our construction projects. Here is Deb Folk, our executive director. Hello, Mr. Folk. Hello, member Sykes. Bright has a bright t-shirt. I am really bright today, aren't I? You want to tell us about that t-shirt? I do. Hey, it's bus yellow because I was at the
046com uh convocation this morning and I was helping with traffic so they needed to be able to see me. So, thank you very much for bringing that to our attention. Dr. Molnar, President Jackson, Superintendent. And I wanted to give you an update on our construction. This one is Miller South as you can see or uh the 23 uh budget projection was 63 million 40 million in cops 15 in esser which is actually general fund 8 million in LFI and then 70 uh the current estimate after we planned the building came to 76 million because there was a $13 million increase in the square footage that was reported earlier and so we were 42 2 million in cops now because we've earned interest, 15 million left from general fund. As you know, the joint board is
047working on hoping to split the LFI and we were looking for 10 million in general fund on top of that. Um, at this point, as we know, the joint board has recently met and they are looking at the last part of the arbitrage, which may determine if all the LFI money as reported at 18 million could be put towards this project with an amendment from the joint board uh of review at city council and APS board. The next item I have for you is just an update from the core team working on this. Please be aware the schematic design for the floor plans and property layout version 3.0 is on the APS website. The design team has now moved into what is called the DD design process to work for on the plans for inside
048of the building. This is where you get the renderings that you often see on how a classroom will look, how your hallways will look. And then the last is we have started to request to set up a community meeting because you heard they had one cancelled in April in early September to get feed feedback on the DD designs that are rendering to this display. On the right side of this slide is the budget sheet that was asked for and I just was putting it together so that you could see the parts and pieces that make up the budget. At the top are the what we call the hard cost, the construction of the actual building. The non- construction soft cost include actual items that you need to budget for this particular item. And then construction
049including your design firms, your other items that are there. You have a copy in your packet. The construction soft cost also include all the testing items as you go down. And then obviously we've already done the abatement and uh demolition of Kenmore. So that is already completed. I'm sorry this page wouldn't take the last item that was on the page in front of you. You can see a difference of 15 million. So if the LFI funds do get to come to us and the full capacity that we hope is there with no arbitrage, we would have not only the amount to cover this particular project just a little over that could be also put towards other changes that come as part of a project. The second item I have for you here is an update
050on the BookTal Presbach project. The board has approved the design firm is Hust and Stop Architects. The approved budget is 1 and a half to 2 million for this project. The project surveyor is on site this week because we need to lay out the actual property layout for the press box, the concession stand, and the restrooms we're adding to the bookal site. The design team is to meet with the booked team on 8:26 of 25 to introduce themselves to the principal and the staff that are in the building. This will start this outreach to get them to know who this team is. And then we will also include the students and athletics as we move forward in getting that information. The design firm now needs to have a CMR or construction manager at risk and
051those interviews will be held on 829 of 25. We have a team of seven people from APS that will be working with legal counsel as well as Hassenab who have no vote in this to vet those three firms and to make a recommendation to the board. As you well aware, when that comes to you, it will be ranked and if approved, we will start negotiating with the first uh number one ranked firm. This hopefully gets done in this fall so that we can start breaking ground in the spring in March or April with a goal to hopefully have this project done in the fall of 2026. Thank you. Okay, that's that was a lot of information that you gave us there. Uh uh questions from the committee members, I'm sure. Member Mohanar. Uh my first
052question, you mentioned that there's a community meeting planned for September because of a community meeting that was cancelled in April. Yes, that's for the Miller South one. Yes. Um who who was invited to the April meeting or I guess more importantly is who are we planning to invite or how are invitations planning to be communicated for the September meeting? Um, and where will this be posted so interested parties can? We are asking that uh through SE Superintendent Utley that that outreach be made to use the community center in Kenmore and we're looking to work with uh ward council person boys. So to see if we can coordinate with her and then it would be any community members, staff, students, uh parents, family members that are associated with this project. We wanted to make sure it
053was midepptember because we needed school to open and people to be available to hear the announcement followup. I have a couple questions. Um the um Miller South first. Let's go to Miller South Per. Yes sir. the um timelines and I know with construction it's hard to actually get a exact timeline but we need a projected timeline um because as we wait as we continue to do these things time is money. So do we have a timeline where we are looking to have things done by this date by this date by this date? Uh projected timeline is a little bit of twofold. We have been advised by the city of Akran that there is a major sewer project that will be taking place around this property. So, we are working with HM Miller to allow them
054to lay property sewer items on this particular uh location that now has a baited building project in the fall of 25. Moving forward, we are looking to hope to break ground as the weather uh opens us allow that in March of April of 2026. We hope to then see the construction move forward with a planned opening of the building to take uh possession by students and staff in August of 28. Okay, thank you for that. The I I guess the timeline that I am looking for is actual construction projection. Okay, so we we want to be here doing this by this date, this by this date, and this by this date. and that's your construction manager at risk and they're working on the GAN charts right now. This core team meets every two weeks and
055our next meeting is on Wednesday the 20th. Okay. Thank you. U Madam Chair, I have I don't know if this is a question for the treasurer. Um we we mentioned the um certificate of participation that we're gaining interest on on that fund. Um are we making payments And if we are, what are what is the payment amount? We are not making payments yet. We just received the money to pay off the first round of the cops money. Um, and we So, we're financing short-term like a line of credit kind of situation right now. And then we will eventually finish the project and then begin to pay off the project. Okay. Yeah. Right. Thank you, Madam President. You have a question. Okay. I I just want to note that um I'm I'm still kind of perplexed
056why we have not heard about the arbitrage from the city. Um and why we do not know the answer to that question yet. At the joint board, Miss Sykes, uh Mr. Fricker from the city said that he and Dr. Thompson had gone through the original up through uh 22 and there was nothing necessarily that was arbitrageed fined. The second part was now being proposed and worked on. He hoped to come back at the end of August to go from 22 up to date and he should report that out at the end of August of 2025. So we hope to hear I would think in the next few weeks. I would think so. I I I'm still And we can certainly have Mr. um myself and Mr. Bowers reach out to Mr. Fricker. That that would
057be good because the sooner we know how much if any monies we can receive then the better planning we can do because as you said it we're seeing that is at 15 million now. And uh if that's the case, then there will be significant funds there to pay the uh overrun costs. And so that would be really nice to hear as soon as possible. Yes, ma'am. Because it's it's been a while. It's it's been a while. Okay. and and please let us know if we need our president to reach out uh to find out to our just just what's happening with that because we really do need to know and then so with the book to press box. So 1.5 million is what what we 1.5 to2 million that is in our capital 1.5 to2
058is what's in the capital budget. What's in the capital budget for this for this year? That is correct. Okay. And so with the Kimmore project, so you're saying that Kimmore is totally demolished? Yes. So if you drive by, you won't see part of the building standing up. No, it's beautifully uh depleted and grassed and all set up. Thank you. It is to still have security fencing around it though. And I know the community Thank you. Especially the people that live right across the street from from that school. I know they they really they must be excited that that that has been demolished. I think that's it for me. M Madam President, yeah, Miss F, just for a point of clarity because I'm trying to make sure I didn't miss a meeting. Uh because you referenced
059that Mr. Fricker made a comment concerning the arbitrage at the last JBR and I don't remember any such statements other than they were looking into it and to get back with us but not a statement that nothing was found with him. He said there was no fine up until 2022 and he was looking from 22 to present to see if anything was result from that and you I think we could refer to the minutes of the meeting for that. Yeah. Yeah, no problem. I was going to do that. Thank you. Thank you. If there's no more questions, thank you very much. You're welcome. So, real quickly, if we could talk quickly about the bond anticipation and the notes and where we are with that. So, this is really a place order. We just talked about
060how uh Thursday of last week we received $27.5 million from the uh Stifla and Nicholas and that paid off the first round of the notes that we issued and then um we're going to use this money in the shortterm financing for the project costs. That's that's it. Yep. Okay. Thank you. If there's no questions, Madam President. Thank you, Madam Chair. Very quick question. Um, kind of when you were talking about the may I the performance audit. Mhm. Because will this audit even though I know it may take about 10 months almost a year help to also inform because in my mind I'm thinking it would inform us areas to cut as we're cutting money from budgets. Is this the type of audit where we can see absolutely where we can be lean and save money
061over the course of 3 to 5 years? Yeah, they would compare us to comparable school districts and tell us if we are heavy in areas or not. Yes. So, I'm Thank you. Next on the agenda is board members event information. I think we all received that. I don't know if there's any questions on that or if you would like to make a statement in any way. This is basically indicating those activities that the board uh has uh participated in. Okay. There's no questions on that. Unfinished business. Is there anything that board members would like to bring up at this time with the uh inim treasurer? Nothing. Um uh any new business? Any new business? Uh I did um Madame Superintendent. Yes, I'm sorry, Madam Chair. Under old business, I did want to address two things
062that were mentioned actually today if that's okay. one is I did have an opportunity to um meet with Mr. hours. And we did talk about the possibility of doing the performance audit over certain areas where new staff members are being we're waiting to hire that it would be good for them to inherit information that they can use. And we do have depending on the cost, we do have a funding source from um our Northeast Ohio. So if we could just find out the cost, we could see it work it into that budget possibly so that those reports could be on hand once new staff has been hired would be what I would like to recommend. Wonderful. Okay. The other is with the um we may want to see if JBR get a date for that
063once we know if anything is owed so that the um city council would have an opportunity to do what they have to do before they would come before the JBR because I thought that's what the mayor said the last time is that they need to vote as well. That's Harrison. I don't Thank you, Madam Chair. I I think what need to I think what the next steps were was the amendments had to be established and so um the ultimately it does have to go to city council, but we have to look at the amendments and um now that we have general counsel, of course, we we can catch our council up on it so that um the amendments can be agreed upon. But the next steps was the amendment um after we find out the
064total cost and then um then it went to city council. Um the language of the amendments I think it was the next step. It's just that usually it takes so long, you know, some time for us to come to an agreement on when to meet. I just thought you may want to start conversations as soon as you're ready. Thank you, uh, Madam Superintendent. Great recommendations. Thank you. We appreciate that. If there's nothing else, uh just we we talked real shortly just about our computer systems and scamming and what's happening with that because the state has informed us that if we find ourselves in any situation with our system being compromised that they will not recognize the cost uh in writing our system. Could you did you find out anything else on that? I did. So
065they they have passed the new cyber security program. Yeah. By September 30th, we have to begin reporting any incidents of cyber security to the auditor states office. And then by June 30th of next year, we have to have a policy in place. Um we have started looking at this. I talked to Doug today about a pilot program that she is already involved with that gets us further down the road than I thought we were we are with regards to a policy. So, we're looking pretty good and I mentioned it to the tech team um the other day. They gave I gave them a PowerPoint from the state auditor's office so they're aware of this and um we just to your point on the ransomware payment. So if we were held for ransom, we couldn't just
066pay it. It has to be board approved. So that's one of their one of their rules, right? So that's why I wanted to bring this to you. The board may have remembered that one of the the former treasur one of the rec one of the statements that he made at the end of his last meeting was that the legislators had passed legislation saying that if we had to pay ransomware that the state would not see that as an allowable expense. So, we want to make sure that our system is as tight as it could be and that we're doing everything that we can do in our IT system to make sure that we're not compromised. And you may remember just a few months ago that Cleveland really was shut down. Their city hall was shut
067down for at least a week, maybe longer. And I know the same thing has happened in Columbus and another a number of other uh municipalities. So, we just want to think ahead, plan ahead. We do have insurance in this area. Okay, good. It has a $50,000 deductible. So, anything over that, we would obviously pay the deductible and then Okay. But hopefully that never happens. Hopefully it doesn't. Yeah. Any comments? Yeah. M madam chair. U Thank you. Um and and I I the last comment doesn't make me comfortable. Um hopefully um so so I mean there's some preventable things that we can do. We have been working um with the interim director of it. I think we need to move expeditiously to fill that position so that we have some subject matter experts in place. So
068um we as a district can do all that we can do um to mitigate our our our liabilities in that area. So, um, yeah, hopefully, look, I I'm I'm all for hope, but I'm all for preparation to make sure that we don't need that hope. Amen. Amen. I agree. Uh, did you have something you want to add to that preparation? um the former executive director of IT, myself and his team put together and you've heard us talk about -ate. We have been selected for a federal pilot on cyber security. It runs for three years. We have worked on that particular program. We submitted what is called the 470 form out for bids. So these are firewalls and things that you need. It was posted on Friday night. It runs for 28 days. It will come
069back and if it is successful with your approval, those items will be substantially covered in reimbursement under this program, more than likely possibly up to 90% of its cost because that is based on your federal standard for your meal program. So, we are hopeful that we will get good responses and move that forward. But we're to Pastor Harrison's uh concern, these were very specific firewalls and items that we asked for that we do support and we have to supply in questions to our insurance company when we annually apply for cyber security insurance. So I wanted to let you know that that's out there as well. Thank you. Wonderful. Thank you. Happy to know you're being proactive. We appreciate that. If there's nothing else to come before the board for before the committee then this uh
070I'd like a motion for the finance and capital management committee to adjoin. I move that we adjourn um finance and capital committee meeting. Is there a second? Second. All those in favor. So the eyes have it. So, the finance and capital management committee meeting is adjoining at 5:32 Yeah.