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  "text": "Okay, let's call this meeting to order here of the Citizens' Bond Oversight Committee, October 8th edition. And first up is the roll call, please. Olivia. Jennifer Givens. Rick Hunter. Tony Hani. Here. Carl Landers. Here. Alan Hansen. Here. Jepal Saini. All right, so by my count, there are 1, 2, 3, 4 of us here, and for a committee of 7, 4 is a quorum. So we thank you all for coming so we can conduct our business this evening. As a reminder, don't forget to turn on the right button of your microphone if you're speaking so that folks on Zoom or the recording will hear you. And, uh, I want to welcome everyone to the meeting. We have some traditional attendees who couldn't make it tonight, like Rick, who's under the weather, but we're going to proceed with our business at hand. So first up, are there any changes to the agenda that anyone wants to make? All right, not hearing any. Do we have a motion to approve the agenda for tonight? Motion to approve. Anyone want to second? All right. All in favor? Aye. Okay. Unanimous approval of tonight's agenda. Thank you very much. As always, we welcome public comment at these meetings. We represent the public and would love to hear from the public. Nobody is here in person, but do we have anyone on Zoom? Olivia? No one on Zoom. Okay. If anyone is watching this after the fact on YouTube, feel free to come to any of these meetings and share with us. We're always open to public comment. So that closes Section 3 and moves us into Section 4 of the agenda, which is to review the minutes from the last meeting. June 25th was our last meeting, and Olivia sent those out as part of the agenda packet. Any comments or questions on the agenda? I have to say it was very thorough, Olivia. So thank you. You really captured all the detail of the meeting. Okay, not hearing any. Is there a motion to approve the agenda? The, uh, the June 25th minutes. Motion to approve. Second. All in favor? Aye. Okay, minutes of the last meeting are approved. Moving us into Section 5, uh, which is the information and discussion section. We don't have any, uh, action items at tonight's meeting, so all of this is information sharing. There's nothing here that we need to take action on. And as a reminder, when we get into the activity, we're covering the period from April 1st through June 30th is what we're covering in tonight's session. So with that, let's jump into the first 5.1, which is an update on Bond Measure S projects. Is that you, Nick? That is me. Okay. So Measure S project update. So this summer, we— Measure S project updates. So this summer we did HVAC upgrade projects phase 2. That's at Clifford, Kennedy, and Orion Schools. That was approved— the GMP was approved by the board in April. We started construction the day after school got out. There was a lot of early procurement that happened before that, and as of right now, I would say we're about 98% complete. There's commissioning left to do at some of the sites that is now being done on weekends. We're in the process of DSA closeout on all these projects. So happy to say we were ready for students to return on the first day of school. So just going through some pictures for the summer, a reminder of scope. At Clifford— well, at all the schools, we replaced all the HVAC units that were 20 years or older and upgraded, adding air conditioning into all the classrooms. So these photos are just at Clifford, craning some of the package units onto the MPR building. Um, the crane day is always a fun day, so just some photos there. Uh, this is actually a good add that wasn't part of the original scope, but because at Clifford and Kennedy we use the blacktops as our construction laydown and staging area, we decided to go through and do a refresh as the contractor pulled out. So they got a fresh slurry coat that'll extend the life of the asphalt. And fresh new striping. So visually, it, it's a great add for the first day of school when everybody comes back. Um, this is over at Orion. So the picture on the left shows the rooftop units that were installed. These are the condensers for the added air conditioning. It's kind of hard to see, but next to the classroom doors is the HVAC closet doors, which are where The heating units and fans are. The picture on the right, one of the lessons learned from Phase 1 was these newer, sometimes larger units, we had some noise issues. So in this phase, we decided to add ducting in the classroom that spreads the air better in the classroom, but also spreads the noise. So the noise in a learning environment, as we all know, is important. This is an aerial shot of Kennedy. So I included this one really just to capture the scope of Kennedy. You can see all the new rooftop units through all the buildings, obviously one for each classroom. So really, you can see the overall scope there and then kind of zoom in. This is what the new units look like on the rooftop. They're paired like this because that's actually how the heater units are paired for each classroom. Okay. On the right is new relief vents, which was a code change from Phase 1 to Phase 2. I don't know, we talked about this, I think, previously, which added— did add some additional cost as we moved into Phase 2. What's the purpose of that? Relief air in the classrooms. Um, so just the, the static air in the classrooms, so it has somewhere to escape. I, I had 2 questions. Um, the first is, was there— no, no, was there ever— oh. Okay, we'll try this again. Turn off your speaker. Okay, so we'll try this for 3 times the charm. Um, was there ever an ROI in terms of like energy savings, uh, for all these AC systems done? Um, not, not specifically for the HVAC project. Uh, we did talk about that. It's hard to Quantify because the air conditioning project did add power needs to the school, which were offset by some of the solar and LED lighting that we did. But also, we because of code, all these new units are now electric units, and they were taken off of the gas side. So it's hard to quantify. Plus. The savings for not having to maintain these 20-year-old units. Right? Right. Parts and maintenance calls. So no, there was not. I mean, we've spent already $50 million on Phase 1 and Phase 2. I'm not sure what ROI you could calculate. Right. Yeah, no, that would be like very long. That's a good point. Yeah. All right. Yeah, it's not a— the intent of the project was never to save money. It was to get air conditioning in the classrooms. That was the intent. And we definitely— I think Nick touched on it, but yeah, we definitely added load. Hi, everyone. This is Eric. I didn't see everybody in person, so I'm probably a disembodied voice there. But we definitely added load on the electrical side for the AC to be able to cool the rooms and for the heating going to electric heating. Got it. And then the second question is, I assume all this had to be permitted by the city. And we go to the Division of State Architect, not the city. Okay. Yes, all the plans are approved and reviewed by a DSA inspector, which, if I may, kind of transitions me into Phase 3. Okay, please. Before you go to Phase 3, just a few questions on Phase 2, if you don't mind. So Orion, I think, is the first campus you've done that had construction under Measure T. New construction was done there. A major new building was built. My understanding is it didn't have HVAC or didn't have air conditioning when the new building was built. So what was the— correct me if I'm wrong. It did on the second floor. So the scope as part of this project was to add it to the first floor. And was it already plumbed in, if you will, or what was the scope of the work to add air conditioning to the first floor of that New building? Uh, similar to the other classrooms, we had to add condensers for all the unit— all the classrooms on the bottom floor. Uh, those were put on the roof at that building, um, and then upgrade the closet units. Okay, so essentially what was put in there 5 years ago had to be taken out and replaced, I guess, or— I don't, I don't think there was any nicks Correct me if I'm wrong, I don't think there was anything here and there for the first floor rooms. You mean— yeah, yeah, that had to be upgraded, replaced, replaced. Yeah. Okay. Uh, what was my other question? It'll come to me, but anyone else who wants to go? Yeah, Jen. Yeah, question on work already done. Um, has there been much warranty work? Is there A 12-month warranty walk on each phase, or is there reserve funding for any balancing or needs like that? Phase 1 is still under warranty. We're coming to the end of that, but it's still under warranty for now. Phase 2, we haven't officially started warranty yet because we haven't done a notice completion and finalized that project. We are right now anticipating coming back to the board in probably November with a Deductive change order to the contractor, so we're planning to get some money back from them for Phase 2. Um, I, I'd say the comfort calls have been minimal for Phase 2. Um, like I kind of mentioned earlier, there was some lessons learned in Phase 1, so there was a few additional calls, but those have all been ironed out at this point. Okay, I know of one school that has One of the temporary units is kind of insufficient in a room, and it might be too close to the exhaust of another, and a student passed out from the heat. So I don't know if there's like a modification plan for that warranty under that Phase 1, or if something— I think you're referring to a school that hasn't been retrofitted yet, correct? They're using the portable coolers? The portable portion, yeah. Yeah, correct. So it is temporary, but it's still also insufficient for what it was there for. So would warranty— it would be under warranty to modify that, or— I don't think that— that wouldn't be under warranty, the temporary ones, because, well, it's been more than 12 months since we installed them. But that's more of a capacity problem with temporary units. But we could definitely— I hadn't heard about this— we could definitely take a look and see if maybe adding another unit, because we still have some units. Could, could help offset in, in, in some of those rooms. Okay, that would be great. Yeah, so that does bring up a great question, which is what's happening with the, then the surplus portable units? Because in Phase 1 they were rented, Phase 2 they were purchased, right? So there's 62 or 97 of these that came out of these classrooms, right? There's about 75 that came out of The Phase 2 classrooms. Right now we're holding on to some for any emergency situations, but we're also looking into selling the others. Okay, so right now the 75 are still in the ownership of the district, correct? But there's a plan to surplus sell some portion of those. Okay. I wanted to make a point, Alan. So Division of State Architect— you asked about permitting, and you heard it goes through the Division of State Architect. And if you look at the Measure S expense sheet, you'll see Division of State Architect listed several times and the associated expenses. And just in this period, $153,000 was paid to the Division of State Architect for whatever permit fees, review fees, I guess, for these projects. So the state doesn't provide it as a complimentary service either. Well, to, to Carl, just to piggyback on that, that is, that, that's the fees to get to the permit that we're paying DSA. We also have to pay an inspector for DSA for every job too. So that's— that is a fraction of what you end up paying the state for their oversight on DSA. Which vendor name is the inspector company? Nick, can you help me on that one? MWC and Associates. Oh, got it. Yep. But also to piggyback on what Eric said, Plus required special testing labs and those kinds of special consultants that are required as part of the inspection. So they test our concrete, they test our anchor bolts, and, you know, to make sure they're up to par. Yep. Great. But those are all soft costs already included in the budget, right? Correct. Yeah, that's correct. I'm just saying it's some— it's additional cost that's required by DSA. Yeah. Right. All right, you want to take us into Phase 3, which is in the planning stages now? So the board also approved Phase 3 of the HVAC project, which is Henry Ford and Roy Cloud. They approved that back in June. We submitted to DSA just last week. We actually got our letters from DSA accepting those, those plans. We have an RFPQ on the streets right now for preconstruction services and lease-leaseback contract. Our mandatory job walk for contractors is actually Monday. So we are, I'd say, a couple months ahead of last year's schedule, which is great because we've seen some delays at DSA for review. Also, it's nice to get ahead for procuring equipment early, as early as possible. So that is anticipated for construction summer of 2027. Thank you. So for active projects, that's— At some point, take the contract value of Phase 1, Phase 2, and what you get in Phase 3 and basically divide it out on the number of classrooms and just give us an idea of how costs are escalating from Phase 1 to 2 to 3. Does that make sense? So it's kind of an apples-to-apples comparison. Yeah, we can, we can do that for the next meeting for sure. Yeah, I think we all know that construction costs, equipment costs, tariffs, everything's going up, right? Inflation. Absolutely. And I mean, we can stare— anybody who drives, if anybody has a diesel truck or watches the news, a good guide for construction is always the cost of diesel because everything revolves around that. So, but yeah, we can, we can look at those numbers a little bit more specifically for you for the next meeting. What is the rationale behind only taking on 2 schools in the next phase? Because there are 12 sites, I believe. Correct me if I'm wrong. We've done how many so far? 6? Was it 3 and 3 in Phase 1 and 2? 7. 4 and 3. 4 and 3. Now we're down to 2, but all schools need this. So why not go faster? Uh, well, the remaining schools on the list in the master plan have some pretty significant projects and possible buildings being demolished, so that's why they were put to the end as we're working on an implementation plan. What about the charter school sites? Are they going to get this upgrade? Yes, the charter schools are Are the charter schools are getting the upgrade? And so what's the reason for not including a few of those each summer? Because otherwise they're going to be phase 7 or 8 or 9, aren't they? I think the goal is to have 2 more phases after this, to have 2 more big phases after this, and see if we— and see what sites we can get as we get the implementation plan developed. And I think it's a It's a timely topic, Carl, because we've got the capacity report from the district a couple weeks ago at the board meeting. That's all starting to tie in together with the implementation plan. And so we're working on that. We're working on an updated implementation plan and what I would call a light upgrade to the master plan. That's going to take into account the updated capacity report. It's also going to take into account— there's some new state laws in the last 3 to 6 months that require updating your master plan. So we're going to be doing that with that updated master plan and working on kind of the capacity report and seeing where that goes as well. That'll all kind of take into account there. So that'll help us guide the other schools. And the charter schools were always kind of scheduled for the back end. End of the HVAC. So we'll, we'll probably pick those up in the final phase. Those are kind of going to be easier to do in big chunks because they're a little bit smaller sites. If I remember correctly from the master plan, the charter schools aren't getting major buildings demolished and rebuilt, right? That is correct. Yep. So, and the flip side is that every phase that's a year out is going to be 50% more expensive, right? So, uh, I mean, not 50%, but yeah, I'm exaggerating slightly. Yeah, yeah, it's not far off, Mike. It could be 30% more every summer that we do this, right? I think, uh, the— I think the, uh, uh, I think we're— the, uh, AGC, the Association of General Contractors in California, put escalation last year of about 6.5%. So it's— I mean, which is significant for million-dollar projects. So again, I guess I'll ask the question, why not do the charter schools now when prices are only going to go up? We're not going to build at those schools. Why wait? It's just going to cost the taxpayers more. Yeah, it's definitely something we can look at for the, for the next phase if we wanted to, if, uh, if the board wanted to move, move some of the charter schools up in front of the other schools. Well, how would the board know to ask about this unless you guys bring a proposal? For, uh, or we talked at least— We talked about these options probably a year, I would say. I don't know, Nick, what was it about? It was when Phase 2 got approved is when we talked about the rollout and what sites we were going to do when. And, um, and at that time, they, uh, we, we talked about having the, uh, the charter schools at the end of, at the end of the last, or at the last phase. So that was the last time we talked about it. We can— it's definitely something we could revisit when we bring the next implement— when we bring the update to the implementation plan up. I mean, Martin, what is your take on this? Why push the charter schools to the back? Is there some thought that maybe we would get rid of the charter schools and disposition the properties? But it costs more to wait, right? It doesn't cost anybody. So I, I don't know, but one of the things that I didn't mention to you was the name of the vision. So we know which, which, uh, charges there, there are, which aren't going to be moved, which we don't know what's going to happen with, with, uh, you know, the classrooms or do any kind of remodeling. for them. So I think, like you mentioned, we have to go back to the board and look at the implementation plan for approval. When are we supposed to get that? I thought we had talked about like end of summer was the plan for the implementation plan to know— like, maybe I'm wrong— um, when— what the plan was overall for the larger-scale projects under Measure S. It sounds like we still don't have that. Is there updated timing on it? We are going back, like I touched on a little bit. We are going back, we're re-engaging to update the master plan. We were waiting— a lot of this was waiting on the capacity report and making sure that we got that, because the implementation plan can't really be informed until we have some information on capacity and where that's going. So That is kind of— that was the step that was kind of that we got. And now we're, like I said, we're re-engaging with the master plan to start updating that and update the implementation plan and then bring that back to the board with some options. The new requirements that the state has put in. Yeah, yeah, with the new requirements. You know, that's one reason that it can be frustrating to go slow, because the slower you go, the more new requirements. The state never removes a single requirement. They only add them, correct? So the longer we wait on these things, the more it's going to cost in new requirements, in inflation. And if they're obvious, if we've already said, hey, we're going to put— I'm going to just continue to bang this drum. If we've already said we're going to put air conditioning in the charter schools, why wait 3 years to do it? It's just going to cost the taxpayers a lot more money. Um. Unless there's some other issue that, you know, you can't just— you can't manage that many projects at once, or you can't acquire that much equipment at once, or whatever. But it does seem odd to wait. There doesn't seem an obvious good reason to wait. I could see being the optics of prioritize the school. I hear you. Right? No, right? Totally. But yeah, same time, are we doing For this next phase at Roy Cloud and Henry Ford, is it, is it to buildings that could get demolished and we'd have to undo the work? At each school, there are some existing portables that are currently in the scope, and if we decide to move forward with projects at those sites, we would remove those from the scope. So we, we still have time. We can get it approved by DSA but still remove it from the scope. Before we approve a GMP with the contractor. Yeah, we don't have to make that— that decision doesn't have to be made literally till June of next year. So that's kind of— we talked about that. It's going to be what— it's going to be deductive alternates when they price out this, so we could take those out easily if need be. So there's a portable classroom that doesn't have air conditioning today that we would install air conditioning in. No, there's portable buildings at Roy Cloud and at Henry Ford. They do have air conditioning, but the units are more than 20 years old. So they meet that requirement of the scope. These are portables owned by the district. These aren't rented portables, I get, for temporary use. Correct. Yeah, they're not. They're a long-term— Permanent temporary. Yeah, correct. These portable classrooms And we have now 75 portable air conditioning units. And at the same time, I have a concern that we just so nonchalantly said these pro— these air conditioners that are 5 years old now have to go. I'm curious if— is the life of the air conditioners that we're putting in supposed to be greater than 5 years, or in 5 years are we just going to say, oh, They're 5 years old, they need to be upgraded, and we probably won't even have gotten to a charter school yet for Phase 1. I think that— I think, I think what you're referring to is, is it Orion, uh, regarding the 4 units that were installed, the 4 classrooms? So those furnaces had to be removed to put in AC units, so you had to make the space for those. But other than that, there's— there hasn't been any other units that That were 5 years old and got replaced. No, it's always been anything over 20 years or didn't have AC units. I got to sell. So the port— so the portable classrooms would get permanent AC? Well, they already have permanent AC. They already— all the portables already have AC. Okay. And they would be replaced with also more permanent AC? They were replacing the old units in like kind. Yeah, they already have air conditioning. Okay, in portable classrooms that might go away? Possibly. Okay, but they wouldn't be replaced with the portable units that we already currently purchased? No. Correct. Different units. Yeah, I think we're— yes, uh, maybe we should use mobile air conditioning units that we purchased for a temporary fix. Um, we use the term portables, but they're really modular buildings. That— and we use the term portable because they're easily moved from one site to the other, but they're modular buildings that have been there for more than 20 years. What about buildings that under the new— the implementation plan would get demolished? At Henry Ford, if we proceeded with that project, the current Kinder Building would be replaced. So you'd be putting in air conditioning there and then demolishing it? No, no, it hasn't. It's part of the scope. Yeah, yeah, we'll do— is that it's a deductive add in the contract. But we've already spent— I don't want to say hundreds of thousands on the design towards it. Yeah, it would. That's where like doing the charter schools would make sense because, you know, you're not— they're not going to get demolished. Absolutely. So doing those first. There's no plan to do anything at the charter schools in terms of new construction. So they should have been prioritized first, frankly. Yeah, then we wouldn't have the burn funds. But the optics are not good, to your point. Yeah. The— since we brought it up at the board a couple weeks ago was the presentation of the capacity— not plan, I guess, the current capacity at the different schools, and presented at that meeting was a 2-year plan a study plan to decide things like, should there be a middle school on the Bayside? Should Orion get more classrooms? There, it wasn't a lot of detail because what was approved by the board was, let's take the rest of this year, school year, and next school year to come up with a plan to address the capacity issues in the district, right? Am I characterizing it correctly? So, it doesn't seem like there could be a new implementation plan approved At least until that whole process completes, right? I mean, I know you don't speak for the board, but if the board's going to take till the end of next year to approve potentially moving schools, closing schools, changing schools, like, why would they before that time approve building new buildings, for example? And those are some of the issues that we're going to talk about as part of the Facilities Master Plan update. And there is the option to do a partial implementation plan instead of the full Measure S funds allocating them all. We can do a partial that will move forward some projects sooner and then, you know, save some money for whatever comes out of that. Okay. That process. Okay. I think, again, you can't speak for the board or what they're going to approve or not approve or their timeline. I get that. I think what it drives home is the point that there's a lot of uncertainty in the facilities master plan and the implementation plan because of this new 2-year study process that's going to go on. And so not to beat a dead horse, but it makes sense if you're going to spend money, spend it on sure bets now, not investing in school improvements when we don't know what's going to happen to those schools. Yeah. So does that make sense? There's also some certainty in the district. So as we've talked about it internally, you know, we've talked about a 2-track plan where we can, like I just mentioned, possibly approve some projects to move forward sooner. And then save some of the Measure S funds to deal with, you know, what comes out of this study. So, for example, the board could say, hey, we want TK classrooms at Roy Cloud. We know we're not going to close Roy Cloud, so that's a fine investment to move forward with, even with the uncertainty of what we might do with Bayside schools or other schools that are at low capacity. Is that your point? I think potentially that could— that is— that could be an option. Now, I I caution Carl, we're not the board, so we can't— I want to be really clear with whoever's taking notes that, I mean, we're talking really fictitiously with school names right now, and I don't want that to be misconstrued. But yes, that potentially could be a situation for whatever school and whatever direction that the board gives. Yeah. All right. Well, I think the point that we're trying to make In our role of, you know, making sure funds are expeditiously expended, that we're in a difficult spot with costs going up significantly year over year. And so delaying projects, while it seems good because, well, we might not make a mistake if we delay, the flip side is it's going to cost a lot more if we delay. Yeah, I— yep, message heard loud and clear. And I, I, uh, I don't disagree with anything you said. I'm just curious, does anyone have a sense of what the Measure T timing was like from when it was passed to like breaking ground on a major project? Well, Will is— is Will on? Yes, I am. Yeah, I think it went a lot faster, but we can let Will speak to it. He was there, as was Mark. We actually ran all 16 site modernization and new construction project designs in parallel. And then we're executing them as they would come out of DSA approved. Don't quote me on it, but I believe we began construction on some of the first modernization projects within maybe like 2, 2 and a half years of start of the program. Yeah. Wow. Okay, because we're going on almost 3 years here and— 4 years. It was 2022 that the Measure S passed. Yeah, right. Yeah, and we don't have a plan yet, so that's disheartening. On the flip side, the district has only sold $90 million of bonds, so the taxpayers are only paying for $90 million, not the full $300 million yet. So On the flip side of that, interest rates are going up. So if you were to sell new bonds today, the taxpayers would be paying for them at a much higher rate than they, than they did back in 2022. Yeah. Fun times. Okay, this was on the Measure S update. So is there any other questions from the committee members on Measure S? Thank you, Nick, for that. So that was 5.1. So 5.2, Will Robertson is here to speak on, and he represents the program management team for Measure T. So, Will, we haven't seen you in a few meetings. Thank you for coming and sharing with us what's happening basically with solar, because that's the only Measure T left. Absolutely. Yeah, solar is our last Measure T project, and we're down to our last Handful of sites. So for McKinley, we'll have substantial completion and have the construction fences down in November. There will still be some activity on site through the end of December, through the end of the calendar year. For Orion Alternative, we'll have substantial completion and have the construction fencing down in December. Activity will continue on site through early February. For Roy Cloud, we have an EV charger install date that's expected late October, early November. For Hoover, we plan to get the remaining construction fencing down in November when we get substantial completion on the solar system. There will be activity on site through the end of December, through the end of the calendar year. And the EV charger installation is expected to happen in late November. Garfield, we're working on the field restoration. The sod replacement and the hydroseeding of the remaining area is expected to be completed in November. And then for Kennedy, we've got a field and track restoration remaining, and that's expected to be completed in November as well. Thank you. Can I ask what that field and track restoration is at Kennedy? Yeah, the, um, the structure was installed near the track and, uh, near the, near the track and grass field area. So it's just restoring a portion of the grass area and a portion of the track, um, where it was damaged. Okay, thanks. On one of the corners. Yeah. So, Will, I heard some strong parent feedback in a meeting I was at about the solar construction that they— everyone thought was going to be done by the end of the summer. And it still— Your point continues, and we'll be wrapping up this calendar year, which is good to hear. But can you give us some commentary on why this is months delayed beyond what was communicated to To the community about this, these projects? Yes, absolutely. So it's a combination of things. One, there were unforeseens that came up during the design process. For this project, the delivery method was design-build, which means we have one entity that is an architect and a contractor. They handle the design and build all under one contract. And so through that process, there were unforeseens during the design process. We've also run into unforeseen circumstances at certain sites. Carl, as you and I have actually, you know, discussed lightly, in addition to that, we, we have had a very difficult contractor. The contractor that we selected Has caused you know some delays based on their subcontractors' manpower. It's been very difficult trying to you know push them through and keep them on schedule. All all school districts are trying to were trying to anyone who was granted. grandfathered into the PG&E Net Energy Metering 2.0, the most financially advantageous rate. Everyone was racing to finish their solar projects before summer so that they could maintain that tariff and get that big financial advantage. We do want to celebrate that we were able to accomplish that for all of the district schools. But basically You know, we continued getting excuses that, you know, subcontractors, you know, were spread thin. They were having trouble getting manpower, and we went through quite a lot to fight, you know, to fight the design-build contractor on that through the first half of this year, including escalating to the owner, you know, meetings with the owner, you know, official letters written and things like that. So it's been a combination of things. I can't say that there haven't been unforeseen circumstances. That have come up at specific sites. These solar projects impact a significant area of the site that is used by the students and by the community. You know, these are installed out in fields and play areas, on the asphalt play areas, and out in parking lots. So it's very high-impact areas. Okay. And in a significant area, you know, has to be fenced off during the construction phase. And so for us to try to execute on, you know, we're doing the majority of the district schools right now. If we've tried to execute on all of the, all of the school sites concurrently, it's just too much to handle with that much of an impact. So We took a phased approach. And so if you run into an unforeseen circumstance on one of the sites that, say, is in the first phase or the second phase, and you're, you know, you're fighting those delays, they continue, you know, trickling down as you're trying to work through the process. So right now we're down to, you know, the last few sites. As you mentioned, we're going to be finishing by the end of this calendar year, you know, for the most part. Um, and it, it has been painful getting here. We all wish we could have delivered this by the end of summer, but, um, this is the way it played out, and we're going to continue pushing, um, through the end of the project. Are there any financial repercussions to the delays, either in our favor, meaning there's a penalty on the contractor for not meeting a certain deadline, or is it costing us more because it's taking longer? It's not costing us more. We had our prices locked in at the start of the project. You know, there is an opportunity at the end of projects to claim liquidated damages impacts. It does not happen very often because it normally turns into a big legal battle that costs more than you're able to recoup at the end of it all. But, you know, it's something that we always look at. It's something that we threatened when we were, you know, trying to put the pressure on them. But no, I don't feel that at the end of this project we're going to be trying to, you know, recoup funds. We've definitely, you know, already argued through multiple situations and, you know, certain unforeseen circumstances, other things. Okay. You know, tend to come up. So yeah, it's a difficult battle to fight, but we're going to continue pushing to at least make sure we're able to complete by the end of the year. I don't see any more gray hair on you, though, at least in Zoom. So just maybe 2 thoughts, or one question and one comment. Question is, are there learnings from this, Will, this experience that should be passed along to the district for future projects where expectations could be set? Either management could be different, contractors could be different, or expectations could be set differently. Because I think everybody knows when you do construction, there are delays. Who hasn't experienced that? But would you, would you do anything differently if you were to go back and do this again, I guess, is the question. In looking, you know, hindsight is a beautiful thing. Um, Yeah, I, I can't say that we would. You know, I, I could look to Nick and Eric. We've all ended up with a difficult contractor that you have to fight the whole way. Um, it's always difficult because a difficult contractor that causes issues always makes, you know, everyone involved in the project look bad. But all that being said, I can't think of anything that we could have done differently except choose one of the contractors that was more expensive, which we did our due diligence on these contractors. You know, the contractors had a good track record. They were, you know, they went through all the prequalification process. So, you know, we've done everything that we could during the construction phase as these issues have come up, and I don't think there are many, like, many lessons learned or anything that we could have done differently. To, you know, to, to have made, made these, or to have delivered these projects any sooner. I do think that we used lessons learned on past projects from earlier in Measure T to get ahead of the approach that we took when we started seeing some of the red flags and running into some of the issues. And Martin, Martin can probably confirm, at the start of this year when we started seeing issues, we came in hot, escalated immediately, began with the actual official notice letters, meetings with the owner of the company, demanded, you know, additional manpower. And we did see some improvements once we got through that process, which, you know, took, took the first few months of the, of the year. We did start to see Some improvements we still had to, you know, stay on them and call them out on certain things throughout the remainder of the project and through summer. But yeah, that's pretty much it, Carl. I'll just then give one suggestion or comment, and then anyone else who wants to speak, please. I think that, you know, the district is quick to celebrate wins and send out communication to the community and parents. Hey, we built this New building, we did this new thing. I think it would have gone a long way for the district at the beginning of the school year to send a note to affected community members and parents saying, hey, we apologize. We had planned to have this done by the end of summer and your kids would have free rein of the school. We didn't quite make it. We're trying our best. Um, I think it would go a long way, as opposed to just being silent. And parents complaining, as I heard in that meeting, about safety concerns, trucks driving across the playground during school hours, you know, just taking up space. Uh, so my suggestion is, I think it would go a long way for the district to step up, take ownership when things happen. Everybody knows things happen, but be upfront about it and communicate it more effectively to the community. And when people hear nothing, they assume the worst, like, oh, they must be incompetent, right? But we know you're not incompetent. You're competent. But when you hear nothing, you assume the worst. So that's my suggestion. Anybody else? Yeah, I would, I would add to Carl's point is, you know, as a person who's implemented many messy IT projects, They always— there's always an interesting story to it. But just being, say, you know, your communication plan of once a month we have challenges, we'll have next update, these are our challenges, blah, blah, blah. Just be open and upfront about it because, you know, to Carl's point, is people love to be Monday morning quarterbacks. And they don't know the whole story of what's going on. And then what you do is you create all this spin that accomplishes nothing, and everyone— you all get frustrated, everyone gets frustrated, and it's just, it's just a big can of worms. And so, um, that— I agree with Carl's point. Um, couple of comments. Liquidated damages, I think, should be considered written into the contract. Parks and Rec did it for the turf fields at Red Morton. They're clean late. Which certainly helped speed up the process towards the end. Even writing in contracts, I know it's hard with design-build to hold a contract, to potentially stop working with a contractor because they're not performing. But design-build might be easier with that, in that if a contractor is not performing, I'm not sure if we write these as bulk projects, so like one contractor gets multiple, but that's a lot of repeat business. So if the contractor isn't performing on one, to say you're done now and we're gonna get someone else for the rest and have these stopping points might be worth looking into. Yeah, you are right on design-build projects, it's more difficult. And this project, trust me, we thought about it, we entertained what that would look like, and because we had that April 15th deadline of the PG&E NEM 2 2.0 deadlines that we had to hit a certain substantial completion amount at each of the specific sites to reach it. We didn't have, you know, that opportunity. I mean, to pivot, do a quick recompete, get board approval, get that under contract takes, you know, at least a couple months. And so we did not have that range. So we gave them all the force that we could. I can mention that there was one big project during Measure T, a full new reconstruction project, that at the end of the project there were some significant delays. And we actually did calculate out the liquidated damages and presented that to the contractor. The contractor had countered with, you know, their claimed delays for, for, you know, district and management reasons. In advance of this. Their amount was lower than the liquidated damages amount that we calculated. We had some significant change orders that we had to negotiate at the end of the project, you know, over $1 million worth, and we were actually able to recoup like over half a million dollars more than liquidated damages wouldn't have cost, or would have recouped through strong negotiations. So You know, at the end of this project, you know, we're going to see where things land, and it's definitely an opportunity that we'll take into consideration. Thank you. Thank you for the due diligence. Thanks, Will. We look forward to hearing at the next meeting. It still won't be done, but hopefully much closer. I do have one other item since you're on with us. It's a little later in the agenda, but might as well address it now. There is on the chain Measure T change order list, there is a refund of $300,000 from Holt, the so-named contractor. Yep. For the site 3150 Granger Way. And I was curious why we're getting $300,000 back, and, um, I found the reason. We actually canceled the solar project at that site, and the board approved that. Uh, change order. And if I'm correct, the original amount for that with Holt— I'm looking at what was presented to the board— it was a $575,000 project which we canceled, correct? That is correct. And they said, well, we still owed them $287,000 of the $575,000 even though we canceled the project. Nothing Installed, correct? That is correct. And what we see on the change order was the rebate, uh, or the decrease, I guess, from the $575,000 agreed contract to what we agreed to pay them was $287,000, correct? Uh, that sounds correct. So I guess first off, why did we cancel the project? And second, more importantly, why did we have to spend $300,000 with a contractor that didn't end up doing the work? Good question. So the reason that we canceled the project was because of site usability issues. So the, the solar structure was going to need to be relocated to very far out in the rear field, or along the edge of the asphalt in the rear field, which is on the complete opposite side of the campus as the electric service that it would need to be tied into. Okay. When we did the calculation, the 5— the cost for all of the added, you know, trenching, boring, or additional electrical run to get it out there was going to increase the cost significantly higher than the $575,000 initial quote. And when we ran the numbers on financial feasibility and payback, The increased cost of the overall contract versus the payback that you would see at that site based on the PG&E tariff did not pencil out to be a financial advantage for the district, and therefore the job was canceled. So it was canceled. So, but no construction was done, right? It's a design-build contract, so obviously you had to pay for the design. Yeah, I guess, right? Well, we had We had to pay for more than that. We had to pay for the design work, but the actual— all of the structural steel procurement and fabrication, custom fabrication, had been completed in advance, trying to get ahead to accelerate the project. We tried to see if it could be reused at other sites, and it was not possible. So that contributed to The amount that you know that that Holt charged minus the recoup. Ouch! Was there other materials procured in advance that are included in the $300,000 that we ended up paying them, or was it just the steel that you mentioned, or was that the biggest? The steel was the biggest one. The other you know the other equipment could either be reused or you know used as Used as backups and saved. So the structural steel was the big bulk of that, and then their, you know, their team's time to go through the full design process. So will the district be using the structural steel to make a nice-looking art piece at one of the campuses, or are you getting recycling fee back on it, Martin? Like, what are you doing with the steel that the district paid for? All of that was captured in the, uh, in the change order. Okay. Um, we tried to— yeah, we tried to negotiate and get as much back as we possibly could, think about it, think about every option that we had, um, to try to minimize the impact, and that was where it landed. Unfortunate outcome. Okay, thank you for going through that though. I appreciate it. Does anyone else have any questions or comments for Will on Measure S— sorry, Measure T progress? Okay, thank you, Will. So that was 5.2. That takes us into 5.3, and we're going to look at activity for the April to June period. First up is 531, which is the list of Measure T expenses in the period. Any questions on that list? Can we just clarify the difference between services for a time period versus accrual for the fiscal year '25-'26? Erica, you want to answer that one? So the accruals are set up for fiscal year '25-'26 for the last invoice, for a June invoice, and services is just other invoices during that, during the fiscal year. But we, we write accrual for, because we, we accrue for that last invoice for June. Okay. Because the invoice can come in in July or August as well, and then we have to accrue in the previous fiscal year for the services rendered. Okay. In that fiscal year. So is that for June then? Yes, it's— Okay. Normally right before June 30th. Thanks. One question. I saw Carducci Associates pop up on the vendor list. I hadn't seen them before, and so I went and looked. This is a landscape architect firm, right? And when I looked a little closer at what the board approved there, it was some landscape design work, Will, and it mentioned, uh, renderings and reviews with neighbors. Um, that is correct. Were there complaints from neighbors where we then had to go spend more money to put in, or just design in this case, additional landscaping that wasn't planned That is correct. Um, we had 2 neighbor complaints, uh, once the systems were installed, one from Roy Cloud and one from Henry Ford. And the neighbor complaints were stating that they were able to see the structure from their backyards and that they wanted the structure to not be visible. And so we had to Identify solutions to try to mitigate this and understand what those mitigation measures would cost the district in order for the district to be able to assess whether to proceed or how to proceed with the school board. And so Carducci was a landscape architect that helped basically identify options, helped go through the design process so that we actually had something down on paper and were able to do cost estimates to provide the district with estimated costs to execute the mitigation, potential mitigation measures. And now the district is at that phase of assessing whether to proceed or not, and trying to identify if there are, you know, any other ways of Approaching it in a more affordable way, and so we're talking to contractors and trying to think outside the box and preparing to you know take the next steps on presenting and and making decisions on you know whether to proceed with any of these mitigation measures. So the cost in in just in here for Carducci is sixty-six thousand. For these 2 sites, Henry Ford, is it? And Roy Cloud, I think. Is that right? Correct. Uh, and then that's just the design, right? Then there's obviously the installation of whatever landscaping that you would need to put in. I know this might sound like a joke, but I'm actually serious. Did we consider just offering to pay the homeowner $10,000 to say we're sorry? It would have been less than the $100,000 we're going to spend on design and landscaping. I mean, it might sound like a joke, but I'm actually serious. I don't know that the district can— I don't know that the district can legally do that. But Martin, I don't know if you wanna— I mean, obviously in a legal way, or you come to some settlement agreement with the— I get that a neighbor complained and then you need to react, but this is gonna be over $100 grand in landscaping because 2 neighbors complained. So we're still exploring. Carl, um, like Will was saying, um, as a matter of fact, today I had a landscape company come out, uh, to both sites and, and gave me a proposal for, uh, you know, a different design, you know, which, which, uh, hopefully it's way lower than the current. But you've already spent the $65,000 on the landscape architect. Yes. So this would be an addition to that. No, not, not these current landscape companies that came out. There, I just asked for a certain type of tree, certain type of plants that we can plant on our side of the fence. But it's going to be on top of what you already spent for design work though, because this— these are the Carducci expenses have already been paid, correct? Yeah, correct. Yeah, yeah. So it's gonna be not $100,000 or $200,000. So, but it's $65,000 already. And if I can't imagine a landscape company is going to do it for less than $30,000, are they? I don't know. So you end— it's going to end up being— I'm once again just guessing— $80,000, $100,000, $120,000. It's gonna be tricky. I know one of the families, they're on my street. Their entire yard became a canopy of solar, and I completely empathize for what they're dealing with. They didn't know ahead of time. That it was gonna be there. Well, they're okay. So flyers were put out at every neighbor's house a month before. Saying they might have needed a knock at the door saying it's gonna go your whole backyard. But having said that, I don't think there's a whole lot of landscaping that can do anything. I mean, are 2 redwood trees gonna solve the problem? No, I mean, I think they had talked about asking like, can we have some solar from it? But Man, I think you have to get creative. And we are. Yeah, we are. I've met with her today. I don't think they ever asked for additional solar. They asked for green screening. So some kind of plant things that would block the view. Okay. All right. It just struck me as maybe there was a more unconventional way to solve the problem. Maybe not. I'm certainly not in the middle of it. But Just wanted to ask the question. Sometimes writing a check can go a long way. Okay, anything else on Measure T expenses? Okay, so that takes us to 532, right? Change orders for Um, Measure T and S, any questions on those? We, we did talk about the last one, the Holt Renewables $292,000 one on Measure T, but any other? Okay. On to 533, which is no bid contracts executed in the period. Oh, there's where Carducci Associates showed up. I know it was in— I knew it was in there somewhere. Um, the— on the— will the Hoover and Roy Cloud purchase 8 AV charge— EV chargers? Excuse me, that, that's new construction, or is that replacing something that was already at the site? I know we have them. It's new. It was required by the solar projects, and when we were doing, uh, the RFP for the design-build contractor, The purchase of the district's selected EV chargers was always planned to be part of a district requirement. So owner-furnished, contractor-installed. So this was the purchase of just the EV charger units that would be installed as part of the solar project requirements. Is each site required to put in these EV chargers then, or is it just— No, it's just specific sites that trigger The need, um, that have, um— so Roy Cloud and Hoover both had, um, solar, uh, arrays installed in the parking lots that caused the parking, uh, stalls to need to be reconfigured, and therefore it triggered, uh, the EV chargers at those sites. Got it. Taft, for example, had a, uh, a solar array installed in their parking lot, but as part of the new construction project there, we had already been required to install EV chargers as, as part of the new parking lot, new classroom building project. So yeah, just, just as an example. Okay, thank you. Anybody else have questions on 533? What is the expected expense for Carducci to solve this problem? It was just nothing remaining now. That's it. But the problem is still quite there, right? So correct, but Carducci's, that was just for all their design. Has there been an upper limit of cost to solve this problem? Like I said, we're still working on it. We're still working on it. And once, once I have proposals, then, you know, we'll decide then. Thank you. All right. So that takes us then to 5.3.4, which is new projects approved by the board in the period. Under Measure T, there were none. Several under Measure S. That we heard about already in the update. Any questions on the new Measure S projects? Okay, moving on to 5.3.5, current litigation and public disputes related to the bond program. It's marked as none. Yes. But probably this landscape issue should have been flagged as a public dispute around bond program. I mean, I had to go dig it out through, you know, my own ferreting. I don't know that it was ever mentioned in a board meeting. I think it was just on the consent calendar. Is that correct, Martin? The Carducci spend was just approved under the bond consent items, I believe. I think so. I don't recall. That sounds, that sounds accurate. Okay. Okay, so that takes us to Section 5.4. Erica, the floor is yours to walk us through the financial updates. Okay, the first report is Measure T Bond Fund Income and Expense Summary Report. As of June 30th, 2026, this is pre-closing unaudited actuals report across showing actuals across multiple funds from fiscal year 2013-14 through June 30th, 2026. The column for fiscal year 2025-2026, I highlighted showing interest of $27K. Actuals for Fund 21, $783,000. The rest of the funding for Solar Phase 2 project is captured in Fund 40, Special Reserve Capital Facilities, out of $13.7 million. Okay. We expensed $7.6 million and a cumulative of $8.7 million, and the remaining balance of $5.42 million across capital project accounts at fiscal year end. And how does that compare to what we're committed to spend to finish out the solar project? Does anyone have that number handy? I mean, I guess to rephrase the question, will there be anything left in Measure T when Holt is all done and everything's signed off and the blacktop is swept clean? And it's funny, it's funny you ask because there is nothing left in Measure T. Measure T was— it was expended as of the end of last fiscal year. And so the, the remainder of the project is being paid for with state fund reimbursements during the Measure T bond program. We maintained state funding eligibility and submitted to the OPSC, Office of Public School Construction, for each of our projects. The district received a significant amount of the state funding reimbursements, and they're now The remainder of the project is being paid out of a separate fund. Okay, so let me rephrase my question. Of the combined funds, of which there's $5 million and change left, how much of that will be left, Will, when the solar projects are all wrapped up? There's $53,000 remaining in unspent contingency funds. I saw in the reports. Because there's $50K in a contingency fund. Yes. But the rest is essentially committed to— And then there is $602,000 in the Phase 2 solar project as well. How much? $602,000. So there's $650,000 in contingency left in the essentially the solar between 21 and 4 funds 40. Yeah, well, but okay, so that, that's the, that's the overall project budget. You are correct that we are coming in significantly under budget currently, and we plan to deliver the project under budget. But the board-approved budget is composed of Measure T funds and state reimbursement funds, 2 separate funds. Yes. And so if we finish the project Under budget. Yes, the district— the district has a significant amount more of state reimbursement funds over and above what they, you know, what is apportioned to the solar project. So any of that money goes back into the state reimbursement fund, which is a separate fund from Measure T and is not, you know, a bond fund. That's basically— basically it's a fund, you know, like not under the purview of the CBOC. Got it. Okay. If that, if that answers your question. Uh, I think it does, yes. Got it. There's not additional, uh— There's nothing that's going to come back, yeah, to Measure T at the end of the project. If you have $500K left at the end of solar, it's not bond money, it's just— That's correct. Yeah. Okay. Yeah, we will— we do plan to have a significant chunk of money. As Erica mentioned, there's still, uh, quite a bit of unspent contingency. You know, and a few other line items that have come on the budget that have come in under. So the project will definitely be delivered under the approved budget. Got it. Thank you. Okay, sorry, Erika, back to you. I just wanted to add one more thing, that the total cumulative expenditures for all funds as of June 30th, 2026 It's $223,461,054. Yep, over the course of how many years? 8, 9, 10, 11, 12, 13 years. Yeah, okay, thank you. Uh, okay, uh, the next report is 5.4B. Um, is a report, uh, generated from, um, the district financial system of financial ERP. It's a supporting document for Fund 21, uh, supporting the previous report showing the revenue and the actual for fiscal year 25-26. Okay. Okay. And the next report is similar, but this one is generated for Fund 40, reflecting the Solar Phase 2 expenditures, the $7.6 million. Any question? Okay. Yep. I'm going to the next one. D. 5.4D is a report from the accountability system. This report summarizes project budgets and expenditures across all projects, including completed ones. Measure T program funds are at 97.63% completion. The total budget is $228,888,745. And cumulative actuals, $223,461,000, which ties back to the district financial systems reports. Solar Phase 2 progress is on page 4, if you want to go to page 4. Mm-hmm. And then Showing remaining funds of $5,084,190 out of the $5.42 million. And then, as I said, it has the $602,386 project contingency. Any questions? Nope, thank you. Okay, the next report is, um, 5.4E, is the Measure T Sources and Budgets Report. Uh, this report, uh, is from the accountability system as well, and it shows, um, the budgets as of August 13th, 2026. The Measure T, uh, T bond program has success allocated and spent almost 98% of its total $228 million. Phase 2 solar project is on page 2. It's called Multiple Solar Phase 2. If you have any questions regarding that, and— So just one question to follow on to what we were talking about with Will about So the solar is being funded by these rebates, right? The rebates came from— Or the remaining portion of the project remaining after the end of the fiscal year. So, Erica, I think— I'm not certain, but I believe there might be some, like, because you're showing 98%, I believe the 2% remaining is From a different fund, not the Measure T fund. Is that correct? That's allocated in the budget, Fund 40. Yeah, it is the combined one. Yes, 21. There it shows it right there. The— yeah, the funding sources, Fund 40, the 4th line down from the top, uh, the $13 million committed. And so we're spending down on that, and that is the remainder, um, because we, we finished spending down Measure T and its completion. At the end of this phase that we're reporting on right now, which, you know, ended at the end of the, uh, of the last, uh, fiscal year. Okay, that's accurate. That's accurate, correct, Erica? It looks— So the Measure T, uh, fund is completely empty then as of the end of the fiscal year? That's correct. And the, the time period that we're reporting on right now, which is Q2 of Calendar year 2026 is the quarter that we completed the spend down of Measure T. So, you know, I'm not sure that there will be future reports to the CBOC on Measure T because the Fund 40 is not under CBOC purview. So 2 things. So is that indeed correct? There's nothing left in Measure T. So we did some journal entries and we closed the Fund 21. This report does not show because it's a pre-closing report, so it's not the final report. So the final— but Erica, to answer his question, show that the Fund 21 is at zero balance. Okay. Then the 2nd question I had, so will you— so this Fund 40 that's funding the rest of the solar project, you said that the funds came from state rebates, right? That's correct. The state rebates were on construction projects done under Measure T? That's correct. So when the state provides this rebate money back to the district for projects that were paid for under the Measure T bond, Is the— are the funds restricted or earmarked because they were— the rebates were from facilities improvements? Or does the money just go— the district put it in the general fund and can spend it on anything that it wants? That's the question. I don't want to speak inaccurately, so I would want to— You want to speak internally? I mean, you can if you want. I just don't want, you know, with Rick Edson not here, I don't want to You know, I don't want to speak inaccurately on the way. Yeah, it can't go into the general fund. It has to go to capital projects, but it's not tied to anything really. It's— it does not have to be used on the same per se bond language that the bond that got the money goes on. That's, that's what I was going to say. Not tied back to the same facilities master plan. It doesn't have to execute, you know, the remaining projects, but it can't go to teacher salaries, as Eric mentioned. It has to go to You know, new construction or modernization. Yep, it has to go— it has to go to capital. So, but it can— but it is not tied to the same bond language. Okay, got it. Thank you. Yeah, thanks, Eric. No problemo. Okay. Yep. Moving on to 5.4F. This is Report for Measure S. Okay. If we are looking at page 3, the Measure S bond summary report outlines a total revenue pool of $308 million, driven by $90 million in Series A proceeds, about $10 million in interest income, and $208 million in the remaining bond authorization. Out of this total budget, the district has spent $6,081,159 in project expenditures. $60 million, just to correct. Sorry. Yes. $60 million, leaving $7,667,431. $70 million. Yes. Yeah. Allocated for current projects. $177 million remaining for future planned projects. So I mean, the $10 million in interest stands out, doesn't it? So the bonds were sold in 2022. Construction has not consumed all of the $90 million. So the district has earned $10 million in interest sitting on the money. One could argue that should be returned to the taxpayers, right? 100%. 100%. I mean— Except for the fact that delaying the work makes it cost more when you finally do it. So you need that money for that. You do. But I mean, to take this to the absurd, the district could sell $300 million in facilities bonds as authorized by the voters, not spend a single dollar of it. And collect interest for 40 years, right? Yeah, I think there's a lot more to it. I mean, sure, how the bonds are taxed over time, but there is $10 million in interest that the taxpayers are funding, right? You can't argue that point. Well, I think, you know, the taxpayers are funding the initial purchase of the bond, right? And then they're paying back That initial purchase of the bond, and then the bond is sold, put into the bond fund that is earning interest. So just to get technical, Carl. Yeah, so the, the assumption here as presented in the table is the $10 million just goes into the available money to spend on projects, which I get. If it were my money, I would do the same thing. I would say, well, thank you. We didn't spend the money, we got $10 million more in interest, so we just add that to what we can spend in the future. I'm not sure that the taxpayers would look at it the same way. Just wanted to make that comment. The other thing that this shows is when— if all of the money that's currently budgeted, which is $130 million, is spent, and it may cost more than $130 million to deliver the committed HVAC projects for the reasons we talked about earlier with inflation and construction costs going up, it's quite possible that only half of all of that $300 million will be left, right, to spend on future projects. Or in other words, about half of the $300 million is committed. Is that fair to say? No, not half of the $300 million is committed. Well, it says $130 million is committed, right? About 46% of this budget is Spent and committed. Okay. About— yeah, so I'm sorry, I should have said 46%, not 50%. No, it— and it's, it's a, it's a nomenclature issue thing on the report. That is total budgets for the current projects. That also includes $35 million inside the bond program contingency, which is just where we're holding a whole— holding a portion of the cash right now. That, that, that all is going to get distributed out into projects too. So it's really closer to about $95 million right now, Carl, that we're talking about. And why is $35 million held in contingency for $90 million in work, Eric? It's— it was— it's the way that the budget is put together. It will be distributed out. When we initially presented the options, we held $35 million for the entire bond to distribute into the implementation plan. For things like escalations, for things like new projects that the board wants to do as the— as time goes on. So that fund will eventually, when we have an implementation plan, that fund will be allocated out to projects. Okay. I don't want to dwell on it, but there's tons of extra money. Why was the $30 million called out in particular? Because there's another $177 million in the bond that's That's just sitting there, right, that says funds. Yeah, yeah. So why, why hold 30 in a particularly different category than the 177? Yeah, we could put it— we, we could put it back in the 2 and make it a full 205. It doesn't— at this point, until the implementation plan's approved, it doesn't— where, where it sits doesn't really matter. But yeah, I see what you're saying. It goes in that— it goes in that same bunch. When we started— when we started bringing implementation plan options to the board, we said We, we were holding, um, as we were doing the planning, we said we needed to hold back about $35 million in order to work out the schedule so we can apply money to where escalation's going to hit. And so they, they, in the budget software, they just held that $35 million separate from the other $205. But yeah, I, I see what you're saying. What's, what's your best estimate of the committed projects that are on the plate? How much will Consume? If it— I know, hard to estimate because there are charter schools getting HVAC 2 years from now, right, that are part of the commitment. Yeah, you're saying that's $90 million? Um, it's— yeah, it'll be somewhere around $90 to $100 million. Yeah. Okay, so $90 to $100 million is the right number to have in, in our heads about how much is essentially committed with board— not the board-approved plan, let's call it. Right. Yeah, yeah, the board hasn't officially approved the budgets, but yeah, the board-approved plan, that would be a good term. So this is Alan. Um, I, I think we need to get a couple wordsmithing going on here. So the $308 million, if I'm understanding this correctly, that's the total bond authorization amount. Is that true? That is correct. Okay, so that's what we should say on this. Um, Well, actually, that's not correct, right? It's $298 million is the bond authorization plus the $10 million. Plus the $10 million in interest. Yes, correct. Okay, so we should, we should say that. So with that said, that's what it is. How would you phrase it then? Well, I would say, um, I would say— It's certainly not total current projects planned. That's not the right lingo. No, we all agree to that. Yeah, no, it's not. It should say Bond measure authorized amount for via bond measure of $298 million, right? Plus the $10 million expected or earned interest. So far. So far, yeah. And then where the heartburn here is, $177 million, to your point, Carl, is that should be broken out like the anticipated projects. And then you also have another bucket says to be determined. Or some, some communication of like, we don't know what this really is at this point in time. And what one of the things that we should be getting updates on is, well, what's the plan for that? What are we going to be determined about? Because like, then the question is, why do we need to use the $298 million of authorized bonds? Because that's really the question, is because, you know, obviously it's costing Taxpayers' dollars. So do we really need to spend $298 million? That's where I'm going at. So like, that's the question we should be able to easily decipher from this, this report, quite frankly, because like, I don't know. Yeah, I don't think anyone knows is, I think, the bigger issue. I'm happy to change the nomenclature for you. I'll, I will, I'll talk to the SOFR people to make it a little bit clearer. I understand what you're saying. I, I, I get what you're trying to— it's like And why I say this is, you know, I hate to say this, but I'm a CPA and I know there's a lot of people that don't have this, this level of knowledge and training. And so we, we need to really be crystal clear of what each of these numbers are. That's all. So, yeah, yeah, I, I'm happy to if that's, uh, this is the CBOC report. So if that's, uh, you guys', uh, wishes to kind of break it down a little bit different and make that, and make that work, I'm, I'm happy to work with the software folks at Keystone, and I know they can customize some stuff for us and, and get it and get Broke out a little bit different for you. Yeah. Oh, thank you. No problem. Yeah, I think the, the, the revenue part is pretty clear, right? There's $90 million of bonds that have been sold, $208 million are remaining to be sold if it's all sold, $10 million in interest. So you get to $308 million. We— I think we get that. It's in the expenses or the plan or how to spend the $308 million that maybe could be more clearly communicated as Already spent, kind of committed by the board, and then all the rest are really the 3 buckets. Does that make sense, Eric? Yeah, no, that, that, that absolutely makes sense, Carl. And like I said, I'm, I'm happy. I think we're thinking— I think we're all— we're thinking along the same lines of how to break that down. I'm happy to, uh, to work with Keystone to have them split it up and, and do some customization on the front end of that report. There's no problem there. And then, you know, another comment would be— I know we're going down a little rat hole here, but, you know, as more bonds are issued, right, one would presume that we would have more interest earned. Correct. Okay, depending on the timing between when they're sold and when you spend the money. Yes. Yeah, yeah. Okay, so I just want to make that call out. Yeah, yeah, you're always going to have interest earned no matter how fast you, you spend the money. Every bond program In the state of California earns interest on their bond. All right, so we can move on. Like, I have no further questions on this. Yeah, so that— and that interest earned, that I believe it's up from the last report that you guys saw. So it changes, it'll change every report. So has there been any discussion about when to sell the next tranche of bonds? I think it's going to come hand in hand with the implementation plan as it comes together. We have enough money for right now, and, and for— so I think we're, we're doing okay. But I think as that implementation plan develops, once the schedule gets tied to it, that's when we'll really start looking about when the tranche— when the next tranche sales are, Carl. Can we please wait till interest rates go down? There is always a robust and thoughtful discussion with the financial advisors about when About when to sell. It's not— it's not— I've been in many of those discussions with the financial advisors, and it's not without thought, Carl. I guarantee you that. I'm sure. I was only half joking. But yeah. Yeah. No, I get it. I get it. Yeah. Okay. Sorry, Erika. Back to you. Moving on to page 5, Measure S summary of revenues and expenditures as of June. There is. We can see some categories and the budget, and then the spend committed is 46%, the remaining budget 54% of the total budget. With the caveat that we just talked about, the budget is a bit of a weird thing because it just has this $35 million sitting in it. That's not committed to anything. Yeah. Okay. Absolutely. Yes. And then next is page 6. This cumulative Measure S summary by project type chart and table tracks the comprehensive financial allocation and deployment of bond funds across various project types. The report shows a total allocated program budget of the $130 million, with the $60 million successfully encumbered and expended, and leaving a remaining balance of $70 million. And you can see the budget allocations in the pie chart. Phase 1, 2, 3 combined is about $69 million, more than 52% of the total budget pool. Then the bond program contingency is $35 million. Lighting retrofit is the 6— almost $70 million. Program support costs, $7.7 million, combining general management and common district overhead costs. Modernization, classroom climate control, the $2. $3 million. So when we finish Phase 1, 2, and 3 of the HVAC modernization, that is, by my count, was that 9 sites? Did you say 4, 3, 2? Yes. Yes. Okay, so that gets us 9. How many sites in total? 12, is it? All of our sites, yes. Because we're not doing AC in any— But 2 of them, 2 of those will be charters, so it'll be 14. So 14 getting HVAC, and 9 will be complete by end of Phase 3. Okay, so 14 in total. So that leaves 5 more sites to do. I mean, if you had to guess, is 5 more sites going to consume the $35 million? No, I Are these 5 more sites going to consume that extra $35 million? No. I mean, if you had to guess how many 5 sites, how much it's going to cost 2 or 3 years from now? Carl, I would literally be throwing a dart because off the top of my head, I don't— I know the charter schools are our smallest sites. I know we've done some of our biggest sites already. Okay. So it's— I wouldn't— whatever answer I gave you right now wouldn't be totally accurate, but I can go back and I can bring you something at the next meeting, no problem. So what we talked about that I think would be helpful is you're going to basically come with a per-classroom cost, right? And how that's grown year over year for phases 1, 2, and 3. And then it would be easy to just total up the number of classrooms left and say, well, we guess about this much, right? Yeah. And we assume about that much. But there's also big things that come up at each site every year, right? At Kennedy, we had to do a PG&E upgrade, which is a significant amount of money. And some of these— some of the charter schools We may not have to do that. So it'll be, it'll be a guide, but it won't be— what I'm saying is it won't be exact. Sure, of course. But if it costs $25 million to do 4 sites in Phase 1, to do 4 sites in Phase 5 or 6 could also be $25 million, couldn't it? Given cost escalation. It could be, depending on what size they are. Yep. Yeah. Okay. Just trying to get a handle. And Erika, you said how much in total has been spent on HVAC? Did you have a total? On HVAC— Or budgeted, I guess. Is it $69 million, you said? Yes, about $69 million. Yeah. Okay. So it could end up being $85 million or somewhere in that range. Rough ballpark, right? Yeah, yeah, I don't— I, I, yeah, I don't see you being miles off with that number. No. Okay, just trying to get a feel of, you know, how much will— once that's done, lighting was done for $17 million, those are the 2 big quick-start projects, then it's whatever's left is the next big, big phase of this program, right? Correct. Okay. Okay. All right, thank you. Moving on to page 7, this is the cumulative Measure S summary by site. It's just another summary, and then you can see the budgets per site. So each site and total budgets and the expenditures and the remaining balance of the budget. Okay. Next page. I mean, I move on to page 9. This is another report, cumulative Measure S overall summary by project report. This report details specific projects, original budget, budget changes, revised budget, actuals, and remaining budgets. Um, it shows a revised grand total budget, and you can see at page 10, total budget, is that actually the revised budget? Um, and just to clarify, Eric, uh, the original budget is always going to stay the same, right? Yes, yes, yes. That's the improvement we made this time around. It's not going to be a moving budget, correct? Yeah, that's never on this report. That's never Yes. Got it. Thank you. And there was a change of $3.8 million, and that's increased the revised budget. And I know I will comment on that. There is an increase of $3.8 million on that budget, but we are tracking a $2, almost $3 million credit that's going to come back on savings for the lease-leaseback contract. And then at one of the sites, we're about $1 million under. So we're going to be, we're going to be right on target for the Phase 2 budget. So just a quick question on page 9. It shows Kennedy. That's the biggest chunk of the budget increase, right? It went from $6.8 million and you added $3 million to the Kennedy HVAC. What was the— was it the PG&E upgrade you made? It was, yeah. Or— That's exactly right. It was the PG&E upgrades. And then, and then there were some structural upgrades that had to happen to the building to support The units. And like I said, though, we're going to— Carl, we're tracking an almost $3 million credit that's going to come back. So we are still going to be— and we're anticipating still being right on the original budget, the $21.2 million. So when the Kennedy design was done by the architect that we paid for, presumably, they had no idea that this PG&E upgrade was going to be needed, and thus it wasn't quoted as the original Part of the job. Yeah, yeah, no. So the way it works, Carl, is we go— when we take these budgets to the board, we're taking them based on conceptual. And then as we get into the project and as we dig into the project a little bit deeper with the consultants and the architect— that is before the architect comes on board— then the architect comes on board with his consultants. One of them is the electrical engineer, um, and he says we need to do this, or the structural engineer, we need to do this. This is the more details now that we're digging into it. Okay, so the southern is pre-Architect. I was, I was thinking it was post-Architect. Sorry. Okay, gotcha. So it's pre-Architect, and then, then we get there. Um, so, uh, so yeah, I, like I said, I think it's all going to end up balancing out to about the $21 million of the original budget. Um, and we're going to be in good shape. Thank you. No problem. The next report is page 11. It is an encumbrance report. It's a vendor summary. And it's also, it's from April 1st to June 30th, 2026. It shows the vendors and expenditures and some descriptions. So we were still wrapping up the lighting project in this period. Is that why we're seeing Southland in here? Yeah, there, uh, we hold retention, um, on all of our contracts, and there was some, uh, some retention release. Thanks. And if you don't have any questions, I move on to page 18, and this is the last report. This is Measure S expenditure summary by project, and this report is from April 1st through June 30th as well, and it shows the same expenditures, but this time grouped in categories. Okay. Okay. Any questions? Nope. I have to say it's much easier to consume all of this in one document, Measure T with its 7 or 8 attachments is— so this is a nice improvement. Thank you. Okay, anything else, Erica? All right, anything else from the committee on 5.4, the financial review? Okay, that takes us into 5.5 then. Discussing future meeting dates and agenda topics. So, Olivia, do we have a proposed date for the next— I would assume it would be in the November-December timeframe to cover the Q1 quarter. Did we already have something suggested, or do we need to find a date? So our next meeting is going to cover the July 1st through— correct me if I'm wrong— July, August, end of September, right? So that's just— that period is just closed. So probably like a month out to give the district— how much time do you need, Erica, to get all these reports ready for the next— for the period that just closed? Okay, so we're looking at a November date for our next meeting. Does anyone, uh, and we're gonna— is Wednesdays the preferred date, Olivia? Wednesdays, or does it Thursdays? Okay. Um, generally I'm not available the 3rd Thursday of the month, and then also Thanksgiving we have. That's Thanksgiving, luckily. No, it isn't. No, you're right. We celebrate Thanksgiving the 4th Thursday, so How about the 12th of November? That would work for me. Tony? 12th is good. It's the day after Veterans Day. I don't know if that matters to anyone. Veterans Day is a Wednesday this year. Okay, so we're tentatively planning the 12th. Jen, you are not going to be available, correct? Is this your last meeting? Okay, so Jen is, is resigning her membership as of this meeting. So first, want to thank Jen for 5 and a half years of service on the committee, most of that as the vice chair. So thank you. Really appreciate it. Your experience has been great. Your questions always insightful and thoughtful. So thank you for your service. Uh, that will take us down to 6 members— 1, 2, 3, 5 members. Um, which means that the district needs to do some recruiting, uh, because Jitpal and I are also— our terms end at the end of June, and we're termed out at that point. So we'll be down at Stage, if there aren't any new members, to 3, which isn't even enough to meet the statutory requirement. So, Martin, if you could take this message back that the district needs to do some recruiting to get new membership on the CBOC. Okay, so we have the November 12th as a tentative next meeting date. And does anyone have topics that they want to see added to the agenda for the next meeting that are beyond the standard items that we cover? I think, you know, Eric, they— that what we talked about on kind of the per-classroom cost of HVAC, that could just be rolled into your Measure S update for the next meeting. Does that make sense? Absolutely. Me and Nick will work on it and we'll roll that in, roll that in. And I also took notes on the requested changes to the report, and I'm happy I'll work with Patty over at Key Analytics and get those. Excellent. Any other topics, Alan or Tony, that you want to see on the next agenda? I guess my only question is, I guess I'm surprised that until we get to an architect phase, That there's no inability— there's no ability to ascertain the load of the current electrical systems in the schools as we— as the load of the AC or the heat electrical heaters is definitely known. Why is it waiting till the architecture phase? To know that they're incompatible and needs a big upgrade. Can you help me out? Is this your call? Yeah, there's— they're complex systems. And yes, I agree with you. You do know the load of units, but you don't know— I don't— I'm basically— we're not electrical engineers. So if it's something super obvious, we can pick up on that when we're putting together the budgets. But if it's not, if it's not super obvious and the load's going to be close, then we're going to— we're not going to pick up on it. That's what I can tell you. If you can— so that's why you get there and you get to the point of your best estimate— estimation. And then once you bring the electrical engineer and he does the math and the calcs, the calc out for it, Then they will tell us. Okay. Is there something you want to put on the agenda next time to talk about in more detail how the budgeting process works, or— No, I don't believe so. I was— had a— that— I just had a thought about that. I mean, I think it stands out, Eric, because it was like a 50% increase, right, for one school site. It does stand out as a pretty big budget buster. Yeah, yeah, yeah. No, and I, I don't, uh, I don't disagree. But no, like I said, we're still— we're gonna hit— we're still gonna hit the original $21 million. Thank you. All right, no problem. Um, with a tentative date in mind and not hearing any other topics beyond the normal, uh, do we have a motion to adjourn the meeting? Motion to adjourn. Hey, Carl, can I add one more thing? Oh boy, you snuck in just— I did. Yeah, I want— I— well, it's not— it doesn't have to do with the meeting. I just wanted to, uh, let you guys know I appreciate everything that you guys have done as a CBOC, um, in oversight of Measure T. As we mentioned, Measure T has been fully expended, and we just reported on the last of the Measure T funds under CBOC purview. So I don't know that I Will be joining future meetings. So if this is my last meeting, just wanted to let you guys know I appreciate everything you've done. Likewise, Will. If it's our— if it's our last meeting, thank you. Yeah, thanks, Will. You've always done a really great job of communicating effectively and transparently and taking the feedback really well from the committee. So we certainly appreciate that. Working relationship, and good luck on closing out all that solar work before— absolutely before the people with the picks and the shovels come running for you. There you go. I appreciate it. Okay, we had a motion. We're looking for a second on the adjournment. Second. Alan, all in favor? Aye. Okay, the motion passes. The meeting is adjourned. Thank you all. Thank you.",
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      "text": "I think the goal is to have 2 more phases after this, to have 2 more big phases after this, and see if we— and see what sites we can get as we get the implementation plan developed. And I think it's a It's a timely topic, Carl, because we've got the capacity report from the district a couple weeks ago at the board meeting. That's all starting to tie in together with the implementation plan. And so we're working on that. We're working on an updated implementation plan and what I would call a light upgrade to the master plan. That's going to take into account the updated capacity report. It's also going to take into account— there's some new state laws in the last 3 to 6 months that require updating your master plan. So we're going to be doing that with that updated master plan and working on kind of the capacity report and seeing where that goes as well. That'll all kind of take into account there. So that'll help us guide the other schools. And the charter schools were always kind of scheduled for the back end. End of the HVAC. So we'll, we'll probably pick those up in the final phase. Those are kind of going to be easier to do in big chunks because they're a little bit smaller sites.",
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      "text": "Good question. So the reason that we canceled the project was because of site usability issues. So the, the solar structure was going to need to be relocated to very far out in the rear field, or along the edge of the asphalt in the rear field, which is on the complete opposite side of the campus as the electric service that it would need to be tied into.",
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      "text": "Uh, okay, uh, the next report is 5.4B. Um, is a report, uh, generated from, um, the district financial system of financial ERP. It's a supporting document for Fund 21, uh, supporting the previous report showing the revenue and the actual for fiscal year 25-26.",
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      "text": "Yep. Moving on to 5.4F. This is Report for Measure S.",
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      "text": "If we are looking at page 3, the Measure S bond summary report outlines a total revenue pool of $308 million, driven by $90 million in Series A proceeds, about $10 million in interest income, and $208 million in the remaining bond authorization. Out of this total budget, the district has spent $6,081,159 in project expenditures.",
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      "text": "Nope. I have to say it's much easier to consume all of this in one document, Measure T with its 7 or 8 attachments is— so this is a nice improvement. Thank you. Okay, anything else, Erica? All right, anything else from the committee on 5.4, the financial review? Okay, that takes us into 5.5 then. Discussing future meeting dates and agenda topics. So, Olivia, do we have a proposed date for the next— I would assume it would be in the November-December timeframe to cover the Q1 quarter. Did we already have something suggested, or do we need to find a date? So our next meeting is going to cover the July 1st through— correct me if I'm wrong— July, August, end of September, right? So that's just— that period is just closed. So probably like a month out to give the district— how much time do you need, Erica, to get all these reports ready for the next— for the period that just closed? Okay, so we're looking at a November date for our next meeting. Does anyone, uh, and we're gonna— is Wednesdays the preferred date, Olivia? Wednesdays, or does it Thursdays?",
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      "text": "Yeah, there's— they're complex systems. And yes, I agree with you. You do know the load of units, but you don't know— I don't— I'm basically— we're not electrical engineers. So if it's something super obvious, we can pick up on that when we're putting together the budgets. But if it's not, if it's not super obvious and the load's going to be close, then we're going to— we're not going to pick up on it. That's what I can tell you. If you can— so that's why you get there and you get to the point of your best estimate— estimation. And then once you bring the electrical engineer and he does the math and the calcs, the calc out for it, Then they will tell us.",
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