{"date":"2026-04-30","type":"CBOC","videoId":"PnOi-XcblAE","audioDuration":6105,"speakers":{},"utterances":[{"start":4854,"end":108753,"speaker":"A","text":"Okay, 6 o'clock. Why don't we, uh, get started right on time here? Olivia, if you wouldn't mind calling the roll for tonight's meeting, please. Not here. So by my count, we have 4 of 6 current members, so we do have a quorum and we can have our meeting this evening. All right, so welcome everyone. We have a lot to cover on the agenda, but first we'd like to welcome 2 new members to the Citizens' Bond Oversight Committee. Before they— I do that, though, I do want to mention that Janet Borgens, who was a member of the committee, had to resign her position as she's moving out of the area. So we lost 1, but we gained 2. And Janet was a, was a great contributor and we'll miss her for sure on, on the committee and wish her well. I thought it would be helpful if we just quickly go around and do brief intros so that you know who everyone is here in this meeting. And if you guys want to say anything about yourselves, feel free to. You don't have to other than just your name, but if you want to say a little bit about why you're here, That would be helpful. So I'm Carl Landers, chair of the committee. I've been on, I think, 5 years now. Next year, June, will be my last— will be the end of my 6 years, because I think it's maximum of 3 terms. And I'm a parent. I have 2 kids in the district. So why don't we go around this way? That way you guys have the last word."},{"start":108753,"end":109991,"speaker":"B","text":"Hi, I'm John Baker."},{"start":111789,"end":113803,"speaker":"C","text":"I'm Rick Wells. I'm a school board trustee."},{"start":116685,"end":121356,"speaker":"D","text":"On the— Martin, Director of Facilities."},{"start":121614,"end":126949,"speaker":"A","text":"And we'll skip Rick for a moment, come over here."},{"start":128920,"end":150428,"speaker":"D","text":"Development and Public Instruction Services, Construction and Program Manager for Measure S. I'm Nick Olson, Program Manager for Measure S for the BPCS. Hi, Olivia Costa. I'm the admin assistant to the city. Rick Hunter, member of the committee. I'm Alan Hanson."},{"start":151158,"end":153906,"speaker":"E","text":"I've been living in Redwood City since '95."},{"start":155561,"end":159418,"speaker":"D","text":"My son went through all the entire program."},{"start":159563,"end":162493,"speaker":"E","text":"He's 27 now, so that was yesterday."},{"start":163482,"end":167858,"speaker":"D","text":"I'm a CPA. I financial systems for a living."},{"start":170615,"end":348374,"speaker":"A","text":"My name is Tony Hanny. Uh, I have two children in the district, uh, 16 and 13 years old. Um, I also work at Sequoia Hospital, and, um, I am also one of our amateur radio, uh, gentlemen here in the local area as well. Fantastic. Okay, thank you everyone. And just as a reminder, especially to the new folks, when you speak, you got it. That's fine. Yeah, all good. So that— I don't know if we have anyone on Zoom this evening, do we? Olivia, not— no, Jen didn't join. Okay, Rick, you didn't get to introduce yourself if you want to just say hello. Perfect. Great. Thank you, everyone. So we do have 2 other members who couldn't make it tonight, Jitpal and Jen, and hopefully you'll get a chance to meet them at the next meeting. I always think it's a good idea to remind ourselves occasionally of why we're here, especially with 2 new members. So if you didn't get a chance to read the bylaws, I'll just read this first section for you. The purpose of the committee is to inform the public concerning the expenditure and use of district's bond measure revenues. We actively review and report on the expenditure of taxpayer money for school construction in accordance with the voter-approved projects that are on the, the ballot measure. We ensure that bond revenues are expended only for the purpose described, uh, essentially, um, here and in the ballot measure, and that no bond revenues are expended for any teacher administrative salaries or other school operating expenses. And so how we do that, we meet 4 times a year. We receive and review copies of the annual independent performance audits, and you're lucky because this is the meeting where we do that once a year. So we're going to hear about the, the audit reports. And we then can inspect facilities as construction is happening, and several members did that a few months ago for some of the current construction projects that are going on. We get reports from the district, um, and then once a year we write an annual report that's published to the public on our findings. And so after receiving the audit reports, we have all the material we need to start working on the annual report for the previous fiscal year, the '24-'25 fiscal year. So we'll talk more about that, but that's our, our one deliverable of the year other than the meetings. So any questions about— nope. Okay, great. Well, let's jump into the agenda then. We have an agenda here. Does anyone have proposed changes to the agenda? All right, not hearing any. Can I get an approval, a motion to approve the agenda?"},{"start":350684,"end":351117,"speaker":"F","text":"So moved."},{"start":351437,"end":401986,"speaker":"A","text":"Okay, Rick, thank you. A second? I second. All right, all in favor? I, I— okay, approved of the agenda. Great. We have always a section at the beginning of the meeting for public comment, and we also take public comment during any of the discussion items. I don't see anyone from the public tonight. Is there anyone online? No. Okay, so we will skip the public comment and move into Section 4 of the agenda, which is the action section. We only have one item for action tonight that we'll be voting on, which is approving the minutes of the November 5th meeting, which seems so long ago now. But Rick and I were there. If you have any questions about the minutes, we'd be happy to answer them. Is there a motion to approve the minutes?"},{"start":403832,"end":408585,"speaker":"F","text":"I move to approve the November 5th, 2025 minutes."},{"start":409051,"end":443149,"speaker":"A","text":"Okay, is there a second? I second. All right. Is there any— before we vote, does anyone have any discussion, questions, or edits to the minutes of the meeting, the last meeting? And I just want to thank you, Olivia. The minutes were— it was a long meeting. There was a lot covered, and you really captured a lot of the detail in here. So thank you for that. Okay, with that, all in favor of approving the minutes from the November 5th meeting?"},{"start":443926,"end":444202,"speaker":"F","text":"Aye. Aye."},{"start":444202,"end":482698,"speaker":"A","text":"Okay, all in favor, passed. Great. Thank you very much. That takes us then into Item 5 on the agenda, which is our discussion and information topic. So here the committee hears, gathers input, learns about reports, reviews the, the pre-work that was handed out. Feel free to ask any questions clarifying. We're going to start with 5.1. Which is the audit reports, the financial and performance audit reports for the '24-'25 year. Nathan is here to present his findings. So welcome and thank you for coming this evening, Nathan."},{"start":482698,"end":485797,"speaker":"D","text":"Oh, yeah, thank you very much. All right."},{"start":486391,"end":492251,"speaker":"A","text":"And is your mic on? Make sure you hit the, the button with the person's— there we go. There you go."},{"start":492396,"end":513148,"speaker":"B","text":"Okay, thank you very much. And you got my presentation up very last minute that I was able to submit that as we, uh, in real time. Well, good, good evening everyone. My name is Nathan Edelman with Eide Bailey. I am the— I don't need this— independent external auditor. So I guess there's no clicker, right?"},{"start":513277,"end":513694,"speaker":"D","text":"I just—"},{"start":513951,"end":545169,"speaker":"B","text":"next slide, please. So we'll talk about— I'm going to give you the— really, it's the 10,000-foot executive overview. And since you're a CBOC, and if you have— if we can go into things in a lot more detail than I normally would if this was the full board. But really, I'll start with the end of the audit. The bottom line audit result is kind of what's on, what's on this slide here. There's a few things that we look at, and I'll— we'll talk about the scope of the audit in a minute."},{"start":545329,"end":546791,"speaker":"D","text":"But—"},{"start":546791,"end":601043,"speaker":"B","text":"Excuse me. With respect to the, the accounting, there's a, there's a set of financial statements that's, that's within the packet. Really no audit findings with respect to that. Allowability, which is probably what this group is most interested in. And again, we'll talk about the scope in a second, but no audit findings with respect— excuse me, no audit findings with respect to allowability as in the performance audit. The performance audit as well as the financial statement audit is what we call a clean or really it's an unmodified opinion. So, you know, this is the audit result, the outcome that you want. And if you go to the next slide— Thank you, Rick. Next slide is the, the scope of the audit. Oh, thank you."},{"start":602871,"end":602967,"speaker":"G","text":"Oh."},{"start":604955,"end":648131,"speaker":"B","text":"So the, the scope of the audit, which is, you know, what is it that we actually did? And it's easy to say, you know, audit this and audit that. And when we say there's a clean or unmodified opinion or no findings on the performance audit, it's really from looking at these things here, which is one, verify allowability. I think Chair Leanders mentioned something about making sure that that salaries are only spent to the extent that they're allowable to other expenditures. There's a lot of restrictions on what these Prop 39 bonds can be spent on, and it's, it's school facilities. It's, it's basically construction. There's a little more narrowing of the, of those within the—"},{"start":648131,"end":649253,"speaker":"D","text":"Oh."},{"start":649253,"end":834019,"speaker":"B","text":"Within Prop 39, within the ballots. But, you know, the school district spends a lot of money on, on teacher salaries, and that's something that is not part of part of the bond program. And so really, the audit, the performance audit picks samples, asks questions, looks at the accounting records. And when I say pick samples, it's invoices, it's contracts, it's purchase orders. But the question is, are these things that are being funded by the bond program, are they allowable? Are they, you know, is it construction? Is it, is it something compatible? And similar with salaries, to the extent that there's any salaries charged charged to these bond programs, it does have to have a direct nexus to the bond program. So it's a really narrow kind of scope of what makes, what makes salaries allowable. And then internal controls, internal controls play into this. Internal controls are about kind of the signatures, the review process along the way. And if there's issues with that, those are things that would be reported in the audit as well. And usually internal control issues Probably a more formal is deficiencies in internal control. That's if the auditor comes in and finds errors, finds things that are, are wrong. Because if for some reason, you know, hypothetically some unallowable expense, if we're doing the audit and we find teacher salaries are being charged to the bond program, it's a compliance issue. But that also means that something broke down during that, that process. Which allowed that to happen. So we look at internal controls as, as well. Ah, excuse me. Next, next slide, please. And then I kind of spoke about this, but the methodology and how we actually go about this in the, in the performance audit, there's a set of accounting records, and Measure T and Measure S actually have their own, actually their own separate accounting records. But the bond program, Measure T and Measure S, are separately accounted for from all of the district's, you know, general operations. It kind of cropped out as if it's their own little companies. Measure T, Company 1; Measure S, Company 2. As we get the accounting records, and it's, it's like I said, it's pick samples. It's look at invoices and contracts and purchase orders and really make sure that the, the things that are being charged, those accounting records, line up with the, the source documents that we're, that we're looking at. And then for the, for the salaries, we know exactly who is being funded by the— oh, oh, thank you, Olivia. Oh, 2 water bottles. But we, we know exactly who is being funded by the bond program, and it's, it's make sure that these people are working in the, in the facilities department, make sure that there's a, a direct nexus to the to the bond program. Next slide, please."},{"start":834019,"end":844752,"speaker":"A","text":"Are you going to cover, Nathan, what the sampling rate was for the 2 audits in terms of invoices? And so I think it's in the report, but are you, are you going to speak to that later, or do you want to speak to it now?"},{"start":844752,"end":848298,"speaker":"B","text":"I, I can talk about that. And you said, is it sampling?"},{"start":848298,"end":849244,"speaker":"A","text":"Yes."},{"start":849244,"end":937547,"speaker":"B","text":"Yeah, so that's a good question. We do not— auditors will not look at the entire population, and so we have the entire population, every item within the population. And you can think of an Excel sheet with lots of, lots of rows, lots of columns. Every item is equally likely to be selected. And we run these, these things through— in a way, I say fancy tools, but at the end of the day, there's some— it's mostly a randomness. There's some very large transactions which the auditors would say They're too large to not look at. So we look at big things, and then it's kind of just shuffling up and, and it's randomly— random selection of, of the, the remaining items in the population such that the, the sample represents the population. And sometimes there's questions. What happens if you have exceptions? If we pick a sample and there is an exception, The expectation is that there's probably lots of errors, lots of exceptions throughout the population. To some extent, there may be some additional sampling, but if we have errors, those get reported as audit findings because it would be unusual that the auditor has a random sample and just randomly picks the one item and there's zero other problems. That's, that's odd. So through the sample, if there's any exceptions, those get, those get reported as, as audit findings."},{"start":939731,"end":953175,"speaker":"A","text":"So what was the sample rate for Measure T and for Measure S then? Do you recall offhand? I think for Measure T, it was— I can go look, but I think you were over 90% because there weren't a ton of things to look at."},{"start":953175,"end":965011,"speaker":"B","text":"Yeah, I don't have those in the slides, and I believe within the report we do have a— I don't know what it is off the top of my head, but I do think there's a paragraph or sentence that says the percentage that we that we looked at."},{"start":965011,"end":965718,"speaker":"A","text":"Yeah."},{"start":965718,"end":999126,"speaker":"B","text":"And one of them, I think Measure T is the older. Sometimes the way that these bond programs work, just depending on where they are in the life of the bond program, if there's a small number of transactions, if say there's, you know, 3 transactions, we might end up looking at nearly 100% or even 100%, as opposed to if there are 100 or 1,000 transactions, the sample rate typically would go down if you look at that in terms of kind of the, the percentage of transactions."},{"start":999897,"end":1007476,"speaker":"F","text":"If I could interrupt, just clarify that, um, it says in the reports for the Measure T report says 97%."},{"start":1007540,"end":1007765,"speaker":"B","text":"Yeah."},{"start":1008102,"end":1008503,"speaker":"A","text":"Okay."},{"start":1008728,"end":1013738,"speaker":"F","text":"Um, and, uh, the Measure S report was 24%."},{"start":1014123,"end":1017078,"speaker":"A","text":"24%. Okay, thank you."},{"start":1017479,"end":1017736,"speaker":"F","text":"Welcome."},{"start":1020224,"end":1278460,"speaker":"B","text":"And then, then financial statement audit. So there's actually 2 audits within the report. There's the performance audit, which is the one we just spoke about, which is about what did the district do with the money. The financial statement audit is, if you're familiar with companies or other governments, there's a set of financial statements one for Measure T, one for Measure S. Balance sheets, income statements. It's basically a— I mean, it is actually a full-on, full set of financial statements separate for each one. These are for the year-end, June 30, 2025. So the specific numbers might not be super relevant, super useful for you, but it becomes the historical accounting record for the, for the year for each of those bond programs. And then it becomes also the basis that we pick the samples from those audited accounting records, pick the samples so that we can verify them, verify compliance in the, in the performance audit. And, and, you know, part of that is also looking at internal controls, internal controls relevant to financial reporting in this case, which is, you know, are the— is the district able to reconcile cash really to be able to present those, those financial statements? Next slide, please. And then I always kind of end with this. But the Oversight Committee, the, the school board has this role of kind of overseeing. You have to ensure that there is, there is an audit. The auditors are really at the end of the day just messengers reporting back the results of the audit. We have our, our audit opinion. We have the audit report, but it's, it's like, it's just a reporting mechanism. But management of the district, the folks on the accounting side, the folks on the facilities side, they actually need to support the audit. They have to prepare the accounts or account reconciliations. They have to answer our questions, give us the documents that, that we need. They are responsible for compliance, for effective internal controls. And management actually does a lot of— or I should say, does the hard work, the heavy lifting. We ask the questions as auditors and really report back to the, to the board. I think there's actually one more slide. There should be. Oh, maybe not. Okay, well, the other thing that Yes, I don't have a slide for this, but the audit standards do require other communications, things that are beyond the financial statement opinion or the, the performance audit opinion. And there's a kind of a separate letter, but it talks about if there are disagreements, if there are— if an auditor has difficulties in conducting the audit, if there's kind of misstatements. And then, you know, pleased to report, I guess I don't have a slide for it, but You know, there were no such items. There's no disagreements. And in fact, the, the folks that we work with, the folks at the district, they are very cooperative. Like I said, the audit is an after-the-fact affirmation of the information that they already put together. They have to send out those confirmations. They have to answer the questions. And everyone, everyone was very supportive of, of working with the— working with the auditor so that we can get it done. And then the only last thing— the report in the packet is a draft report, and that's kind of intentional. The audit's finished, so there's nothing else to do. Since it's a draft, if there are— if there's feedback, if there's comments that comes from this group, we still have a path to make changes if, if necessary. Usually there's— usually there's no changes, but The possibility exists, assuming that nothing, nothing changes after this meeting, we, we would then proceed to just issue the, issue the report. So with that, I'll, I'll turn it over to the, to the committee, and I'm happy to try to answer any questions as best I can."},{"start":1278460,"end":1280416,"speaker":"D","text":"Thank you."},{"start":1280416,"end":1293861,"speaker":"A","text":"Yeah, thanks for explaining the draft. I don't think we've previously seen the reports in draft state before when they came to the committee. So thanks for clarifying that. Uh, any questions, comments for Nathan?"},{"start":1295081,"end":1296430,"speaker":"E","text":"I just have a general—"},{"start":1297345,"end":1299014,"speaker":"A","text":"don't forget to unmute yourself."},{"start":1299833,"end":1306848,"speaker":"E","text":"I just had a procedural question. So the district, I assume, pays your fee, correct? Or does that come out of—"},{"start":1308887,"end":1316398,"speaker":"B","text":"yeah, there's a, you know, contract is with the school, the school district, that the district, district pays the Pays the fees for the auditor to work."},{"start":1316398,"end":1349548,"speaker":"A","text":"You know, something, while you're noodling, if you have any other questions that I hadn't caught before, but I did go back and look, and it was in the previous reports. It says— it's the last paragraph, actually. It says this report is intended solely for the information use of the district governing board and the CBOC. It's not intended to be and should not be used by anyone. Other than these specified parties, but it does say it's in the public. Why does it say that?"},{"start":1349548,"end":1388285,"speaker":"B","text":"Oh, yeah, that is an audit requirement, more of an audit standards thing. It's not an issue about distribution. It's obviously a public document on board agendas. It's not a, not a restriction on who can look at it, who can see it. It's really a restriction on placing reliance, and it's because those specified parties And kind of the way that the audit standards work, those specified parties, you know, you folks here understand the scope of work, understand kind of the purpose of, of the report, and therefore it's intended for the CBOC. It's intended for those specified parties. That makes sense."},{"start":1389361,"end":1418531,"speaker":"A","text":"Thank you. Rick, going back a year ago, We had a discrepancy between the audit. You'll remember this, other Rick, the discrepancy between the district financials at the end of the previous fiscal year and what was reported in the audit report, and we had to do some reconciliation work on that. Will there be the same discrepancy this year, or can you—"},{"start":1418531,"end":1422409,"speaker":"G","text":"I, I'll start with—"},{"start":1423227,"end":1571754,"speaker":"B","text":"Yeah, I, I can talk about that a little bit. I think I know what you're referring to. So the interest income and the— these bond programs have a lot of money. You sell bonds on year 1, you get— I don't know what the number is here— $100 million, and it sits in an account to be spent over the next few years. So the funds sitting with— it's the, the San Mateo County Treasurer— those are in interest income. I think the, I think the issue or the discrepancy that was identified— I don't know if it was last year or the year before, but one of the bonds had $100 million and the other one had— and these are fake numbers, illustrative— you know, $1,000. But yet the bond with $1,000 somehow got all the interest income. So it was, it was misallocated. So what, what happens in the county kind of looks at this— County of San Mateo is It's just kind of one fund. They don't really have this distinction. And so they just deposit everything, and then the school, the accounting folks have to distribute, and there's kind of a report that, that does that. So I believe it was last year or the year before that distribution had not happened, had not occurred. So in the current year, at least, because I'm a little more familiar with this one, a little fresher in my mind. You'll notice two things. One, the interest income is aligned much more reasonably. There's actually a report that they have on the accounting side that figures out for kind of based on that daily average balance how much interest belongs to A, or I should say T, how much belongs to S. And so the current years— when I say current year, it's, it's 2025— current year interest out income was correctly allocated And then there's also, and you'll notice one of them, I don't remember which, which letter. I guess S, I think it is, has this other source, kind of a transfer in. And the other one might be Measure T as a transfer out. The 2 are the same dollar amount, but that is, that is the flow going from one to the other, which is kind of this true-up, correcting the interest income from the previous year so that Yeah, so that as of June 30, 2025, it's kind of been— it's been settled, and, and you've got a solid starting point."},{"start":1571754,"end":1573457,"speaker":"D","text":"Okay."},{"start":1574582,"end":1591478,"speaker":"A","text":"That's super helpful. So because we, we did go around a bit on that a year ago, but we're not going to have that issue this time. It sounds like the audit numbers are going to line up with the district numbers, which will be make our lives easier, right?"},{"start":1592392,"end":1608246,"speaker":"F","text":"Um, excuse me. Um, I did, uh, see, uh, what I believe is, is one error in the, um, and that would be in the, in the notes and footnotes. So, um, in the, um, in the income statement—"},{"start":1608599,"end":1609962,"speaker":"A","text":"are you on T or S, by the way?"},{"start":1610058,"end":1616953,"speaker":"F","text":"Uh, I'm looking at T. T. All right, thank you. Um, but they, uh, They're, they're both mirror images, actually."},{"start":1617033,"end":1617244,"speaker":"A","text":"Yeah."},{"start":1617389,"end":1628373,"speaker":"F","text":"So on, on page 5, which is the statement of revenues and expenditures, or the income statement, it shows, as you just said, transfers to Measure S of $2.5 million."},{"start":1629300,"end":1630303,"speaker":"E","text":"Do that."},{"start":1630384,"end":1650757,"speaker":"F","text":"However, on page 7, which is in the notes under inter-fund transfers, it said the district recorded an inter-fund transfer of $3.4 million. And the $3.4 million is also showing on the top of page 19."},{"start":1650757,"end":1675859,"speaker":"B","text":"Yeah, so it's good that it's a draft. The, the number on the— the number on the income statement, the— on page 5, that, that's the correct number. Otherwise, that would not work. We, we need to correct the narrative that's within the notes so that it's the $2,552,000 688. So we'll get— I'll, I'll make sure that does get corrected."},{"start":1675907,"end":1684048,"speaker":"F","text":"And the exact same mirror, mirror problem that was in Measure S. Yes."},{"start":1684226,"end":1684792,"speaker":"B","text":"Yeah."},{"start":1685260,"end":1689308,"speaker":"A","text":"Where did you see the page 19 mistake?"},{"start":1690218,"end":1691275,"speaker":"F","text":"At the very top."},{"start":1692152,"end":1702398,"speaker":"A","text":"Oh, the second line there where our sample included transactions including transfers out, including expenditures of $3.3 It's a little unclear what that means."},{"start":1702398,"end":1712698,"speaker":"F","text":"Our sample included transactions totaling $355,000 and the transfers to Measure S of $3.4 million, which could be $2.5 million."},{"start":1712698,"end":1713117,"speaker":"A","text":"Yes."},{"start":1713311,"end":1713536,"speaker":"F","text":"Okay."},{"start":1713536,"end":1721553,"speaker":"B","text":"Yeah, I think the numbers are in a few places that within the narratives that probably need— looks like they need updating. I, I got that noted down."},{"start":1721553,"end":1725645,"speaker":"A","text":"Great catch, Rick. Thank you."},{"start":1725645,"end":1726033,"speaker":"D","text":"Thanks."},{"start":1729725,"end":1732901,"speaker":"A","text":"Any other questions or comments for Nathan?"},{"start":1739511,"end":1752265,"speaker":"F","text":"Yeah, just, just a question, and maybe it's more for Rick Edson. And given that I'm relatively new, I think this is— I've heard this answer asked and answered before, but I don't remember. It's just about encumbrances. Is that—"},{"start":1752265,"end":1752457,"speaker":"B","text":"yeah."},{"start":1752842,"end":1790850,"speaker":"F","text":"Paragraph here about what encumbrances are. Page 7 of the footnotes. It's, it's just more for, for my education and possibly for the 2 new members also. So it says encumbrances are liquidated when commitments are paid and all outstanding encumbrances lapse at June 30th. So I'm reading that to say that really it— this is for information, but that those encumbrances have nothing to— no impact on the financial statements because they're like defined down to zero at the end of the year. Is that the— is that true?"},{"start":1791123,"end":1794753,"speaker":"G","text":"Yeah, and then they would be reopened for the fall fiscal year."},{"start":1795219,"end":1800616,"speaker":"F","text":"Okay, so it's more of like just an inter— an internal thing that you internally manage."},{"start":1801499,"end":1804278,"speaker":"D","text":"Disorder, billion dollars."},{"start":1806640,"end":1807092,"speaker":"G","text":"$800,000."},{"start":1807173,"end":1812720,"speaker":"F","text":"So nothing having to do with encumbrances would be included in the, uh, in these actual financials here."},{"start":1812898,"end":1818695,"speaker":"B","text":"Yeah, you could honestly probably remove that paragraph from the narrative and it'd probably make more sense."},{"start":1818792,"end":1829094,"speaker":"F","text":"That, that's, that's, that's up to you. I just wanted to, I wanted to make sure that I understood right, that, that it's, it's for, for our information but it's not in the financials."},{"start":1829272,"end":1831375,"speaker":"B","text":"Yeah, yeah, yeah, that, that's correct."},{"start":1841687,"end":1858400,"speaker":"A","text":"Other items? All good. All right. Nathan, thank you very much for coming, presenting. Sounds like you got a few corrections to make, and then you'll distribute the final reports, and we can use those in our annual report. Thank you."},{"start":1858740,"end":1861348,"speaker":"B","text":"Yeah, thank you very much. Have a good evening."},{"start":1864976,"end":1968852,"speaker":"A","text":"All right, so that takes us to— that was 5.1. So our next agenda item is 5.2, uh, which is the writing of the annual report for the '24-'25 year. So once we have the final audit reports, we'll have the material we need to attach to the annual report. But it's time now to write the annual report. So this is an open discussion about how we want to approach that this year. Just as background, not suggesting this be the plan going forward, but for the last 2 or 3 years, I think, that I've been chairman, I basically wrote the report. Nobody else raised their hand to participate. I shouldn't say that. Others raised and said they would help review it, which they did. And Rick, I don't think you were officially a reviewer last year for last year's report, but you were definitely the best reviewer I've ever had. You caught all my mistakes. So thank you. Thank you. So I'm, I'm Happy to take on the role and draft the report again, but I'm also happy to have someone else step up. I don't think it should be either of you two because you weren't even here for that year, so that wouldn't make sense. But, or Rick, if you want to work with me on it, I mean, Jitpal and Jen aren't here to raise their hands. I can pull them offline and see if they want to participate, but this is just an open discussion on how we want to approach the report. The goal would be to have a draft of the report. In advance of the next meeting, which generally would be in the June timeframe. Do we have a date yet, Olivia, or do we need to set a date at this meeting?"},{"start":1968852,"end":1969397,"speaker":"D","text":"June 11th."},{"start":1969397,"end":2000803,"speaker":"A","text":"June 11th. Okay, June 11th. Ideally, we would approve the report at our next meeting, and then we get that released and, and move on. So the time— the timeframe to write it is a little shorter this time because this meeting is a bit later than the normal. So we've got a month essentially to craft it. There is a template that we've used. Doesn't mean that's how it needs to be done this time. And I'll just open the floor for any comment or discussion on the topic. I'd be glad to help review it."},{"start":2001141,"end":2002666,"speaker":"E","text":"I agree with your point."},{"start":2002762,"end":2007579,"speaker":"D","text":"I wouldn't know what to write. So great."},{"start":2007643,"end":2008575,"speaker":"A","text":"Thank you for volunteering."},{"start":2009008,"end":2020224,"speaker":"F","text":"I'm happy for you to do it again, and with our thanks for doing it. But I'm happy to work with you and and/or review, you know, as, as would be most helpful."},{"start":2020224,"end":2020801,"speaker":"G","text":"Okay."},{"start":2022483,"end":2193664,"speaker":"A","text":"That's fine. So usually what I do then is I create a list of requests to the district to— because typically when we're reviewing here, as we will be later this evening, we're looking at a quarterly snapshot. But for the report, we're covering the annual period. So I usually have asked to the district, and Rick and team are always very helpful in producing attachments and summaries that go into the, the report. So I'll— after this meeting, I'll get that punch list off to Rick and team. It's really going to be up to you on how quick you can turn it around, Rick, those requests, so that I can author the report and have it ready for the next meeting. The goal, as I said, would be to distribute it in advance of the meeting. If you have a chance to review it, provide feedback. We can approve it at the next meeting. In the past, we have had some changes that come up at the approval meeting, and we've been able to say, hey, if we make these changes, is it approved? And we vote and everyone accepts it. We make the changes so we don't have to wait for another quarter to approve the, the final report. So, okay, anything else on the report topic? All right. And, uh, this time next year, we can have the same conversation about the, the report for this year. Okay, so we're moving on to 5.3 now. This is— so for the new folks, there's really these sections right here where we talk about Measure S and Measure T, really to get an update on what's happened in the project, in the, in the bond, and ask as many questions as you want about what's going on. Where were the projects? What's the status? We'll get into the actual financial reports that were handouts. You'll see those coming up. This is more of a qualitative assessment of, of where things are. Generally, when we are at a meeting like this, we're reporting on the progress that happened in the previous quarter. So as you saw with all the financial statements, they're covering the September 1st through December 31st period. But here we're just talking about where are we today? Essentially with, with the program, and we have the Van Pelt folks here. So they are the bond program managers. They're running the day-to-day for Measure S. Measure T has a different bond program manager, and I don't know, Rick, are you going to give an update, or Martin will give an update? Okay, on the Measure T piece. So you guys have got some prepared slides. It's your time, and feel free to ask any questions. You're all new to this, or 2 of you are new. Do, so feel free to ask away. Yeah, I'll go into a little more detail on scope numbers."},{"start":2194675,"end":2273633,"speaker":"C","text":"So the first project I want to talk about was LED lighting and controls upgrade. So this is one of the first Measure S projects approved by the board. We are now 100% complete. We brought our notice of completion with the board on April 22nd. So the scope here, just for you guys was we went through and upgraded every light fixture and control throughout the whole district, interior and exterior, to LED, and replace the controls to timers, motion sensors, up to the new code. So including the district office, everything has been upgraded. We started this project last spring of 2024, and now the scope completed late February, and then we got through closeout. No change orders on this project, uh, so this one is officially complete. Uh, the other thing that the board has committed to is upgrading HVAC throughout the district. So the general scope here is replacing any HVAC unit more than 20 years old and adding air conditioning into the classrooms, which the district previously did not have, at least for the majority of classrooms. So Phase 1 was these 4 schools listed here."},{"start":2275141,"end":2275269,"speaker":"D","text":"It—"},{"start":2275301,"end":2410828,"speaker":"C","text":"construction started right after school got out last summer. We are 99% complete. We have just a little bit of programming and commissioning left, and with our commissioning contractor Siemens Um, so we're hoping to bring those to completion on this next month, and this will be 100%. Yep. Uh, RCSD Phase 2 is Clifford Kennedy and Orion. Uh, we took, uh, GMP, guaranteed maximum price, to the board last week, April 22nd. Um, We already were under contract with them for preconstruction services, including early procurement of equipment. So that's all been ordered. We're on track to start construction the day after school gets out. Um, at Kennedy in particular, they will be there on Saturday, uh, that we work in 10-hour days, 6 days a week, most of the summer, to make sure that we're complete by the time students and staff return. Um, we have additional consultant contracts that'll go to the board next month for our industrial hygienist. Uh, that actually went on the 22nd for testing. We'll take back a revision for monitoring, hazardous material removal monitoring, monitoring. Um, our Division of State Architect Inspector, our special testing lab, and our commissioning agent. Um, so we're set up nicely to start that construction, and we're on target. Uh, so also at the April 22nd meeting, the board approved Phase 3 of the HVAC upgrades project for Henry Ford and Lloyd Cloud. Um, so that is scheduled for construction summer of 2027. We have an RFP out right now for architectural services. We're hoping to bring that back in June to the board for approval so that we can start, um, doing some pre-design investigation of those campuses over this summer."},{"start":2412604,"end":2416348,"speaker":"F","text":"Is that the third and last phase, or is there four more?"},{"start":2416962,"end":2426323,"speaker":"C","text":"Uh, there are three district sites left, uh, Garfield, McKinley, and Northstar. And then there's the Turner School sites land."},{"start":2427460,"end":2429636,"speaker":"F","text":"Oh, so that, that's not the, that's not the end of it then?"},{"start":2429895,"end":2436173,"speaker":"D","text":"Correct. Yeah, so there'll be a fourth phase for sure, possibly a fifth based on how much—"},{"start":2436173,"end":2444952,"speaker":"A","text":"Is there a reason only doing— you've gone from 4 schools to 3 schools to 2 schools each summer. Is there a reason?"},{"start":2445534,"end":2473468,"speaker":"C","text":"Uh, well, Phase 2 this summer we did 3 schools because Kennedy is so big. It's the size of 2 schools, so it was the same scope. Phase 3, we recommended these 2 schools because we're still working on an implementation plan, and the remaining 3 schools, if we did work on those sites, would have some buildings being demolished. So we didn't want to upgrade HVAC in buildings that may be demolished."},{"start":2473953,"end":2476055,"speaker":"D","text":"And that's it for current projects."},{"start":2478061,"end":2482795,"speaker":"A","text":"How did the buildings that might get demolished be red tagged for that, and how do you—"},{"start":2483854,"end":2484929,"speaker":"B","text":"it's not red tagged."},{"start":2484977,"end":2493242,"speaker":"D","text":"When we started the bond program, we did a master plan, um, and part of that master plan was identifying what future projects, uh, could be funded by the bond."},{"start":2493948,"end":2496579,"speaker":"H","text":"And that master plan, what we're trying to do here is—"},{"start":2496692,"end":2508937,"speaker":"D","text":"well, the, the final decision is still being made on what, what the, the remainder of projects will be to spend the money. Trying to avoid buildings that could possibly be demolished as part of the Master Facilities Plan."},{"start":2509370,"end":2528951,"speaker":"A","text":"Great, thank you. Back to the lighting project, you mentioned no change orders on that. So was every dollar originally bid was spent? It'll be 100% of the original budget."},{"start":2530958,"end":2532708,"speaker":"C","text":"We didn't have a decrease."},{"start":2532885,"end":2534603,"speaker":"A","text":"There was no decrease, no increase."},{"start":2537686,"end":2547400,"speaker":"F","text":"How much is the, the whole, um, LED lighting upgrade? How much, how much money do you expect that to save the district annually? I don't—"},{"start":2547400,"end":2549792,"speaker":"D","text":"we have a report. I'd have to go back and we could—"},{"start":2550145,"end":2556294,"speaker":"A","text":"$250,000 per year, I believe, was the number. Yeah. I remember it distinctly."},{"start":2556952,"end":2563933,"speaker":"D","text":"I know we talked about it a lot, but I don't—"},{"start":2563933,"end":2599550,"speaker":"A","text":"Spent, yes, to save $250,000 a year. Okay, any other questions on the Measure? So maybe for the benefit of the committee, what's happening? Martin, I don't know if you want to speak to this about planning for new projects. Where there has been some development since, because a plan did go to the board and then it was postponed. Uh, so just in general, like, what— where are we on the planning for, for new projects to come into Measure S?"},{"start":2599550,"end":2614129,"speaker":"I","text":"So we're still, um, reviewing that implementation plan that was brought back to the board back a couple months ago. And we pulled back. So we're working on that with more input."},{"start":2615799,"end":2620440,"speaker":"A","text":"And do you have a target date to bring a new proposal to the board, or not yet?"},{"start":2620488,"end":2622623,"speaker":"I","text":"2 months ago. I mean, yes, 2 months."},{"start":2622800,"end":2625851,"speaker":"A","text":"Do you have a new, new target date?"},{"start":2625915,"end":2629303,"speaker":"I","text":"Yeah, we're bringing it after, uh, July 1st."},{"start":2629752,"end":2630234,"speaker":"A","text":"July 1st."},{"start":2631053,"end":2634907,"speaker":"G","text":"Okay, likely the first meeting for consideration."},{"start":2637394,"end":2637939,"speaker":"A","text":"All right, thank you."},{"start":2638340,"end":2638436,"speaker":"D","text":"Yep."},{"start":2643327,"end":2659812,"speaker":"A","text":"Anything else on— okay, uh, so let's move to, uh, thank, thank you guys. Yep, Measure T then. Um, Martin, you're going to give us an update on what's— maybe just give a little background of where we are on Measure T for the new folks, because that, that's the bond that's wrapping up essentially."},{"start":2660069,"end":2729068,"speaker":"I","text":"Yeah, so Measure T, what we're wrapping up right now is the solar project Phase 2. Phase 1 happened back in 2017, which was approved, and that was to do 3 sites and the district office. That was Clifford, Roosevelt, and Selby— Adelante, Selby. Now, that was Phase 1. We're into Phase 2. We got 9 sites. We are currently working at Taft, wrapping up. We have Henry Ford. We have Garfield. We also have Kennedy that were in the middle, and Roy Cloud as well. And then, so those are wrapping up pretty, pretty quick now. We did meet our NEM 2 before April 15th, so everything was submitted. So we're— we met that deadline. So now we will be beginning after June 8th the, the remaining sites— McKinley, uh, part of facilities, and, um, what else did we have that I was skipping here? Oh yeah, Orion."},{"start":2729501,"end":2729629,"speaker":"D","text":"Sorry."},{"start":2731425,"end":2734872,"speaker":"A","text":"And those are past the NEM 2 deadline, but you have—"},{"start":2734872,"end":2735721,"speaker":"B","text":"no, so there was only—"},{"start":2735818,"end":2746864,"speaker":"I","text":"so there was, there was an extension. We had 4 sites that had to meet the deadline, and the other sites, uh, met an extension until next year of January, okay, 2027."},{"start":2748499,"end":2751160,"speaker":"A","text":"But the plan is by the end of the summer it's all done, or—"},{"start":2751304,"end":2753212,"speaker":"I","text":"yes, well, that's, that's the plan, correct?"},{"start":2753933,"end":2754093,"speaker":"D","text":"Correct."},{"start":2754189,"end":2761740,"speaker":"I","text":"Yeah, actually it'll be hopefully go quicker with no students on, on site, you know, at the remaining sites."},{"start":2762669,"end":2762750,"speaker":"J","text":"Yeah."},{"start":2765106,"end":2796139,"speaker":"A","text":"So just for the benefit of our new members, the me— this is the last project in Measure T, um, using up every last dollar in the Measure T bond, plus a lot of rebates and other things that came back over the years of its life. It's obviously money is still being spent in this fiscal year and will be spent in next fiscal year. It sounds like a bit into July or August. So we, we won't get to say goodbye to Measure T for another 2 years. Probably we'll still be reporting on it even though there'll be nothing left after August."},{"start":2796139,"end":2797423,"speaker":"D","text":"Yep."},{"start":2797423,"end":2801706,"speaker":"A","text":"Okay. Thank you. Any questions?"},{"start":2801706,"end":2809884,"speaker":"E","text":"Yeah, I had a couple just general questions on the solar project. What's your expected return on investment, like timeline."},{"start":2810894,"end":2822993,"speaker":"I","text":"So, and the life expectancy of these systems, um, if I'm not mistaken, was about $25 million. It's in about 20— you say about 25 years, $25 million."},{"start":2824083,"end":2833142,"speaker":"E","text":"Okay, so you, you spent what, $10 million or so on this, and then you're expected to— how many years will So that was—"},{"start":2833400,"end":2844615,"speaker":"I","text":"this is just for this phase. First phase, I can't— don't recall. I think it was like $2.3 million, and don't recall the savings on that. I could get that back for you."},{"start":2845569,"end":2853355,"speaker":"E","text":"But just for these sites, just for the 9 sites with solar projects in general, you always look at ROI of some number of years, right?"},{"start":2853355,"end":2853662,"speaker":"G","text":"Yeah."},{"start":2853662,"end":2854148,"speaker":"D","text":"Right."},{"start":2854229,"end":2854796,"speaker":"B","text":"Yeah."},{"start":2855281,"end":2857240,"speaker":"E","text":"So yeah, just to follow up, that'd be— thank you."},{"start":2857240,"end":2857710,"speaker":"I","text":"Sure."},{"start":2862183,"end":2872313,"speaker":"A","text":"Um, I think the goal, if I recall, was to be 100% covered by solar energy for the district's electricity consumption. Is that right?"},{"start":2872457,"end":2872649,"speaker":"I","text":"That's—"},{"start":2872761,"end":2878099,"speaker":"A","text":"that was the sizing that was done, correct? Okay, including the— all the air conditioning that's going in?"},{"start":2878163,"end":2880166,"speaker":"I","text":"Yes, that's— that's in— in play too."},{"start":2880567,"end":2880727,"speaker":"D","text":"Okay."},{"start":2883580,"end":2886097,"speaker":"A","text":"All right, anything else on Measure T status?"},{"start":2887643,"end":2888897,"speaker":"D","text":"Right. Um, the school—"},{"start":2890360,"end":2900521,"speaker":"A","text":"the schools that have had solar panels implemented and the air conditioning also implemented, are there schools that have that functioning currently?"},{"start":2900811,"end":2900875,"speaker":"J","text":"Yes."},{"start":2901454,"end":2905591,"speaker":"A","text":"And are they running 100% on solar?"},{"start":2906204,"end":2911237,"speaker":"I","text":"And so it varies, right, with the weather, but yeah, 95-98%."},{"start":2912252,"end":2912332,"speaker":"D","text":"Okay."},{"start":2912332,"end":2913870,"speaker":"I","text":"It flexes."},{"start":2920264,"end":2961269,"speaker":"A","text":"Okay, nothing else on that topic. Then let's move into 5.5. And this is reviewing bond activity for last quarter. And we have handouts here, 1, 2, 3, 4, and, well, 5. There is no litigation, so there was no handout for that. But we can just step through these and ask if there's any questions. So 551 is the list of Measure T expenditures in the last quarter. And as you can see, it's all related to solar, I believe. But any questions on the, the Measure T expenditure list?"},{"start":2990247,"end":3005083,"speaker":"F","text":"All those things add up to about $1.2 million, close to $1.3 million. Um, and in the, um, the annual report, the draft annual report that we just, that we just saw, it looked like there was a balance left of $1.1 million."},{"start":3005934,"end":3007138,"speaker":"A","text":"So are we—"},{"start":3007989,"end":3014283,"speaker":"F","text":"if we're spending more than was in that balance, where do we, where do we take that money from?"},{"start":3016419,"end":3070009,"speaker":"G","text":"So it, it's a combination. So as Carl correctly mentioned, during Measure T, when it was in full swing and the modernizations were going on, the school district received money from the state facilities construction program— was it SF— SFP. That reimbursed based on past projects. So that money, although derived from Measure T projects, is held in a separate fund, so it doesn't get commingled with bond monies that have to be repaid to— by our taxpayers, right? So we have an allocated amount still within Measure T that's dwindling. As Carl mentioned, it's going away, and we have money to offset that through the, the rebates that we received."},{"start":3070908,"end":3071277,"speaker":"I","text":"Thanks."},{"start":3071277,"end":3154940,"speaker":"A","text":"So are the expenditures all made in the Measure T fund and then money is transferred in, Rick, or are the expenditures from different funds? Different funds. Okay, but on this list, it's everything that's under these projects, even though these might come from different funds. Okay. Alright, other questions on that one? Otherwise, we can move to the other 551, which is the Measure S list. And any questions on this one? I will start. You probably guessed I would ask about the spot coolers. So this is, if I remember correctly from our last meeting, we needed to rent the coolers for those first 4 projects for an additional few months. This is the— I think I said September. Sorry, the October through December quarter. Why are we— do we still have expenses for spot coolers in this quarter?"},{"start":3158854,"end":3169290,"speaker":"D","text":"I would assume, not having it in front of me, Carl, those were when the last bills were paid for those rentals, because the rentals were to cover—"},{"start":3169823,"end":3202379,"speaker":"A","text":"correct me if I'm wrong— it was August through August, right? So this is You know, there was September, and then we're into October. So it is early October, the dates here. But the board approved the rental long before October, right? It was approved back in— was it May, I think? Didn't you ask for the approval for the extension of the rentals?"},{"start":3204498,"end":3221836,"speaker":"D","text":"Your bill in September, then you have 30 days to pay it. So your, your bills would go out the door— your, your bills would go out the door early, early October if the bill came in on time. And I don't know, I have to go back and look."},{"start":3221836,"end":3238470,"speaker":"A","text":"Okay, so there is one set of, uh, looks like 1, 2, 3, 4, 5, 6 charges on October 2nd. Which makes total sense, what you just said. But then they show up again. I'm looking for them here. I think—"},{"start":3238470,"end":3241970,"speaker":"D","text":"The October 2nd— October—"},{"start":3241970,"end":3244185,"speaker":"A","text":"Oh, maybe you're right. Is it up at the top there?"},{"start":3244185,"end":3245597,"speaker":"D","text":"Yeah."},{"start":3245597,"end":3259065,"speaker":"A","text":"Okay. Yeah. So— and you're suggesting that because we have, for example, Taft at $12,000 on October 2nd, and then we see Taft again for $15,000 on October 6th."},{"start":3260685,"end":3274927,"speaker":"D","text":"Like, slightly lagging bills. Yeah, because I think we used them through October and they picked them up in September to return them, and then we got the bills after that through August."},{"start":3277028,"end":3391592,"speaker":"A","text":"Okay. All right, maybe this is a good time also to address— we had an action from the last meeting. Uh, let's see, where did I put my notes here? About the cooler, the— you may remember this. I think I reminded you, Rick, on this. So the— just as background to catch the committee up, there was— when the HVAC project was originally initiated, there was money spent to acquire temporary cooling for all the classrooms. For the first 4 schools that were going to be done that next summer, they were rented. For all the other schools, they were purchased as an asset because they were going to be needed for multiple years. So the board approved the initial rental cost, which was accounted for as an operating expense because it was not a capital asset acquisition. It was a rental of air conditioning. Then the rental was extended for 3 months because construction took a bit longer than expected, and you wanted to have the, the air conditioning, the temporary air conditioning when kids came back to school, which makes total sense. But that rental was charged to the bond as a bond expense, not as a rental expense. And we talked about this in depth at the previous meeting. The action item was that we asked the district to provide to us the legal basis by which the decision was made to move the rental expense from an operating expense to a bond expense. So, Rick, what is the legal opinion that allowed the reclassification? Because this was an additional expense, right? The first rental was charged as an operating expense, is that right?"},{"start":3391961,"end":3392298,"speaker":"G","text":"Yes."},{"start":3392298,"end":3397689,"speaker":"A","text":"So do you have something to share with us that—"},{"start":3397689,"end":3434295,"speaker":"G","text":"Yeah, I can share the legal opinion as well. Uh, but just as we talked about last time, uh, legal did deem it appropriate use of bond funds, uh, based on the fact that the reason why we extended rental was due to the bond project, uh, and ensuring that there would be cooling in the classrooms at the Star School with the delays, as you noted, uh, and the reasoning for us with that extension of the rental time. I'm happy to share this with all of you, and you guys can read it."},{"start":3434295,"end":3452133,"speaker":"A","text":"So I don't think there was any question about whether the rental should be extended. Like, if you need it, you need it. I think the question was, if we paid out of operating expense for the first rental, why was the second rental paid out of bond money? And this is meant to answer that question, I guess."},{"start":3463083,"end":3463501,"speaker":"D","text":"Thank you."},{"start":3463645,"end":3574903,"speaker":"A","text":"Would you like copies down there? So I guess the nut of it comes down to ancillary work that the school district would not be required to undertake or to fund, but for the existence of the construction project. That seems to be the nut of it, that if I were to interpret this, it basically says we rented the coolers, then we started a construction project paid for with bond money, and because that construction project ran longer than expected, we needed to continue to rent these air conditioning units. And so the continued rental, as opposed to the initial rental, was only due to the fact that construction was delayed, and thus it's a legitimate bond expense. I mean, that's how I'm interpreting this."},{"start":3574903,"end":3588059,"speaker":"G","text":"And without the bond, we wouldn't have rented them in the first place, nor bought them for any of the schools."},{"start":3588140,"end":3588860,"speaker":"D","text":"Sense, right?"},{"start":3588908,"end":3590895,"speaker":"G","text":"So there's also another nexus there as well."},{"start":3591600,"end":3598585,"speaker":"A","text":"Well, but the initial rental was paid for out of operating expense. It was not a bond expense because it was not required for construction, correct?"},{"start":3599530,"end":3621177,"speaker":"G","text":"Understood, Carl. And I, and I don't want to litigate this again, uh, but we wouldn't have done any of it without the bond project happening, right? We would not have rented air conditioning units for those 4 sites without the construction project to implement air conditioning at those 4 sites in the summer It wouldn't have happened."},{"start":3621819,"end":3624500,"speaker":"A","text":"But why didn't you charge the initial rental to the bond then?"},{"start":3624500,"end":3629366,"speaker":"G","text":"Based on feedback we received, we went a different route."},{"start":3629366,"end":3637876,"speaker":"A","text":"And how much—"},{"start":3637876,"end":3641745,"speaker":"G","text":"Project would have ended on time. We wouldn't have any additional rental."},{"start":3645486,"end":3645694,"speaker":"F","text":"Right."},{"start":3652473,"end":3671238,"speaker":"A","text":"Okay, any questions on this from the— if the extension wasn't paid from the bond, would it have come from the original source of the rental? Readily?"},{"start":3676092,"end":3684039,"speaker":"G","text":"We would have had to have found additional dollars to pay for it. To say it was readily coming from the same source, I can't say that."},{"start":3692514,"end":3719114,"speaker":"A","text":"Um, is there— so this summer there are— I'm, I'm moving on from this topic, but it's related. So this summer there are 3 sites, right, that have whatever, 200 of these purchased units in them that will obviously be obsolete once you've done the project and put in air conditioning. What's going to happen to the 200 assets that the bond paid for? I'm just using 200 as an illustrative number, whatever it is."},{"start":3719114,"end":3736881,"speaker":"C","text":"I think it's a little bit over 100 that we'll have up to the end of the summer. The contractor will return them to us. We're going to store them for for now, and then we're going to try to resell them to another district or— and get some of those funds back."},{"start":3738147,"end":3744174,"speaker":"D","text":"I think we'll probably save a few for emergencies, but the majority of them we'll try to resell."},{"start":3744174,"end":3778753,"speaker":"A","text":"Okay, well, we look forward to that contribution back into the fund. All right, uh, anything else on— thank you for providing that, Rick. We were on the, the Measure S expenses, the 511 sheet. Any questions on any of the other Measure S items? Thought there was something else I was going to highlight. Let's see here."},{"start":3789980,"end":3794288,"speaker":"F","text":"My, uh, person happens to be on it here. What's an industrial hygienist?"},{"start":3794873,"end":3796288,"speaker":"B","text":"What do they, what do they do?"},{"start":3798477,"end":3821972,"speaker":"D","text":"Hazardous material in a building, oftentimes in schools and older buildings, show things like asbestos and lead paint that are in the building. So when you remove, uh, when you remove that and you're doing a construction project, you have to have a, a certified industrial hygienist observe and monitor and make sure that the removal's being done legally, and then there's no, uh, none of that material is escaping."},{"start":3821972,"end":3824434,"speaker":"B","text":"Good answer. It makes a lot of sense. Thanks."},{"start":3825389,"end":3835419,"speaker":"E","text":"Uh, I had a question on, um, there's $6,500 and change for banking services retention. What What is that?"},{"start":3835579,"end":3881292,"speaker":"H","text":"Yeah, as part of construction projects— I'm sorry, I apologize. As part of construction projects, um, we hold 5% retention, uh, from contractors. So when we get to the end of the project, we have some money to, um, properly motivate people to finish and come back if there's any issues with the building and so forth. Um, we're, uh, required by law to offer those contractors an escrow account. And, uh, so the, the retention is either held by the district or the contractor can request an escrow account, and that money can go into an escrow account, and then it'll take, uh, it'll take two parties to release it at the end of the project once all the project's completed, finally completed. So those are the fees, uh, for establishing those escrow accounts."},{"start":3895289,"end":3969030,"speaker":"A","text":"Alright, anything else on this stock? If not, great. Let's move on to my agenda here. That concludes 551. 552 then will be your change orders in the period. Any questions on the Measure T, Measure S change orders? Okay, no bid contracts. There were none in the period, so we can go right through 553 to 554, and I believe there were no new projects initiated in the period either. So that takes us— and 5.5.5, there was no litigation in the period. So now we've completed 5.5 and we're into 5.6, which is the financial update, revenue and expenditures, starting with Measure T. Several attachments here. Erica will walk us through, and she's always— welcomes questions at any point."},{"start":3972460,"end":4087341,"speaker":"J","text":"The first report is 5.6A, Measure T bond fund income and expense summary. This is an actual report and it shows the cumulative expenditures from the beginning of the bond program until December 31st, 2025. So just to give you an overview. So the columns show each fiscal year, and the last 2— I'm looking at the last 2 columns. This is Measure T Fund 21. Interest revenue received is $9,900 for the first quarter. And the expenditures were $136,879. The rest of the funding for Solar Phase 2 project is in Fund 40, uh, Special Reserve Capital Facilities. And out of the $13.7 million that was deposited in these funds, um, we spent $1.1 million this fiscal year until December 31st, and cumulatively $2.3 million. And there's a remaining balance of $11— almost $11.5 million. And if you're looking at the bottom of the report, it shows that for The expenditures, total expenditures for all the funds. It's $216.4 million. You have any questions?"},{"start":4088833,"end":4110457,"speaker":"A","text":"Super helpful. Thank you. And you've added the, the fund balance, I think, or ending balance, which is always appreciated. So it's about $1 million in Measure T, and there's $11.5 million roughly in the, the And that's what's paying for the solar project. Okay, thank you. Any questions on that, or move on?"},{"start":4111309,"end":4147610,"speaker":"J","text":"Okay, the next report is 5.6B, Measure T Fund 21 financial statement. I included this report from the district's financial system frontline ERP. As a supporting document for the previous present report presentation to show that the revenue deposited was $9,900 deposited and the actual expenditures $136,879. Any question on this?"},{"start":4147771,"end":4151894,"speaker":"A","text":"How are you deciding what to take out of T versus the whatever the other fund was?"},{"start":4152840,"end":4161356,"speaker":"J","text":"This is Fund 21, and I just run a report for Fund 40. The solar, just for the solar project."},{"start":4161356,"end":4167511,"speaker":"A","text":"Okay, but the only project that's happening for T now is the solar project, right?"},{"start":4167511,"end":4176551,"speaker":"J","text":"Some of the expenditures are still in Fund 21, but some of the expenditures are charged under Fund 40."},{"start":4176551,"end":4177304,"speaker":"A","text":"Right."},{"start":4177304,"end":4177849,"speaker":"J","text":"Yes."},{"start":4177849,"end":4182081,"speaker":"A","text":"But how do you decide which to take out of 21 versus 40?"},{"start":4182081,"end":4210503,"speaker":"J","text":"Now it's fund— there were some encumbrances Multi-year encumbrances that, like, for instance, coming the program management, I just left it in Fund 21. I haven't changed it to Fund 40. Fund 40 has, for instance, the Halt construction charges. The new, the, the new POs that I opened up, I opened up in Fund 40."},{"start":4211610,"end":4221704,"speaker":"G","text":"Okay, primarily it's for program management at this point, and then we'll look at closing out the remainder of those dollars over the course of this year as that is fully expended."},{"start":4221704,"end":4234453,"speaker":"A","text":"And will— coming, is it? I, I want to call them by their old name, but are they contracted through the end of the solar project or through the end of the fiscal— next fiscal year, or how does that—"},{"start":4234453,"end":4236090,"speaker":"G","text":"At this point, through December."},{"start":4236090,"end":4241903,"speaker":"A","text":"Through December, and you expect to be fully wrapped up by December, and okay."},{"start":4244296,"end":4244553,"speaker":"C","text":"Okay."},{"start":4244617,"end":4245196,"speaker":"A","text":"All right, thank you."},{"start":4245646,"end":4259689,"speaker":"J","text":"The next report is 5.6C. This is the, the same report I ran for Fund 40 to show you the, um, uh, actuals for that, uh, account, $1.1 million."},{"start":4263578,"end":4264028,"speaker":"A","text":"Thank you."},{"start":4264863,"end":4329938,"speaker":"J","text":"The next report is 5.6D. This is, um, The bond program, uh, accountability system report. Um, this is a cumulative report, uh, as of December 31st, 2025. Um, and summarizes projects, um, budgets, and expenditures across all, um, projects. The total budget If this is an 8-page report, if you go see the last page, the total budget is $228.8 million. And the only change to this budget is the second interest revenue entered, the second quarter interest revenue entered. And then the remaining budget is The $12 million, that actually ties back to my report, to the 5-6-A report."},{"start":4331785,"end":4339027,"speaker":"A","text":"I probably ask you this every time, but why is there money still sitting in these old projects? There's, you know, $27,000 here and $5,000 there."},{"start":4339156,"end":4371189,"speaker":"J","text":"And are there, like, Clifford, those are— they were some prepaid expenditures we paid those years, but they are across 10 years. There were like Greenlots software that we have to expense them every year. And you will see it. This is— this was the 7th year posted, but then it's going to be 3 more years. You will see."},{"start":4371189,"end":4385586,"speaker":"A","text":"So these are expenses at that site, like a software license for 10 years. That you have to allocate some budget for to pay for for 10 years, and we're in the 7th year of paying them."},{"start":4385586,"end":4393343,"speaker":"J","text":"Yes, we, we had it allocated. I just have to recognize it in the current year each year."},{"start":4393343,"end":4406769,"speaker":"A","text":"Okay, and what happens when the Measure T fund is closed? Where will those, the years 9 and 10 be paid from? Or is this thing going to stay open until that 10-year period is is up."},{"start":4408054,"end":4410189,"speaker":"D","text":"So everyone—"},{"start":4410189,"end":4410430,"speaker":"G","text":"is that—"},{"start":4410607,"end":4418683,"speaker":"A","text":"so, I mean, it's not paid, right? It was a prepaid— but a 10-year amortization of the expense, or— you guys know this language better than I do, right?"},{"start":4418732,"end":4436413,"speaker":"G","text":"So it's prepaid, showing each year that there is a cost associated with it from the original contract. So if it was 10 years at $10,000 a year, we paid $100,000 up front And we're showing a $10,000 hit to the budget in each of the fiscal years."},{"start":4437565,"end":4444840,"speaker":"D","text":"Okay, thank you. Any questions regarding this report?"},{"start":4448908,"end":4449084,"speaker":"A","text":"Nope."},{"start":4450370,"end":4501041,"speaker":"J","text":"The next report is 5.6E, Measure T, um, sources and budget report. This is also from the accountability system. It's a budget report showing the budgets as of April 17th, 2026. Shows the local— all the funds, Fund 1, 21, 25, and 40, and then shows the budgets, the expenditures by site and projects. And as, as you can see, also showing the total $228.8 million, and project contingency, uh, as of April 17th, is, uh, $791,553."},{"start":4505254,"end":4506880,"speaker":"A","text":"All right, thank you."},{"start":4508230,"end":4517419,"speaker":"J","text":"Okay, the next report, uh, It's—"},{"start":4517419,"end":4523235,"speaker":"A","text":"So this is all like all new. What are you doing to us here? What, what is this?"},{"start":4523235,"end":4544610,"speaker":"J","text":"So it's, it's more like an overview of Measure S bond program that you can actually find it on the website. So I, I won't go talk about that, but I'm just going to summarize some of the reports. Let's go to Page 3."},{"start":4544899,"end":4551631,"speaker":"A","text":"But just to, to clarify, this is replacing your financial reports that you're sharing with us with this presentation format?"},{"start":4552208,"end":4553234,"speaker":"J","text":"Yes, if that's okay."},{"start":4553555,"end":4556264,"speaker":"A","text":"Oh, I just wanted to know that. And what, what's the—"},{"start":4556280,"end":4559598,"speaker":"J","text":"let me know if you like it or not, or if something you think—"},{"start":4559662,"end":4568527,"speaker":"A","text":"it seems a lot easier to consume. I won't be missing the accountability reports personally. I don't know about you all, um, but none of us will miss the accountability."},{"start":4568655,"end":4569537,"speaker":"H","text":"So, Carl, one of the—"},{"start":4569681,"end":4569890,"speaker":"A","text":"one of—"},{"start":4570162,"end":4573336,"speaker":"H","text":"we, we started, we talked about the switch from accountability to Keystone."},{"start":4573512,"end":4573753,"speaker":"A","text":"Yes."},{"start":4573929,"end":4598522,"speaker":"H","text":"Which is what we're using For the Measure S bond, one of the advantages to Keystone is that it directly links with the district's existing financial software. And so there's no double entry, there's no hand inputting. The report's a little bit more intuitive, and it all happens a little bit more automatic. So what you're seeing here is basically the same information, but it's provided in, in a little bit easier to digest format."},{"start":4598522,"end":4604462,"speaker":"A","text":"Okay, it doesn't create this presentation automatically, though, I'm guessing. Or it does."},{"start":4604831,"end":4605185,"speaker":"I","text":"It does."},{"start":4605602,"end":4606068,"speaker":"H","text":"Absolutely."},{"start":4606244,"end":4608492,"speaker":"A","text":"It spits out this PDF for you."},{"start":4608556,"end":4613100,"speaker":"H","text":"Yeah, there's input that goes— that you have to provide for it, but yeah, it spits out the PDF."},{"start":4613406,"end":4615059,"speaker":"A","text":"So is Erica going to lose her job then?"},{"start":4615413,"end":4619925,"speaker":"H","text":"No, absolutely not. Okay. The bond doesn't work without Erica, so—"},{"start":4621113,"end":4627086,"speaker":"A","text":"All right, well, this is the first time we're seeing it in this format, so, you know, feel free to walk us through."},{"start":4628980,"end":4723924,"speaker":"J","text":"So on page 3, there is a little summary as of December 31st. 2025. It's a cumulative summary of the— so we have the Series E— sorry, Series A bond proceeds, um, first bond issuance, uh, June 28, 2023, was $90 million. Total interest earned, uh, as of December 31st, $7.4 million. And, uh, there is a remaining bond authorization, $208 million. So total current revenues will be $305.4 million. Project expenditures— these are, um, cumulative expenditures, uh, as of the, uh, December 31st— is $45 million. Incomprises, um, these are the remaining, um, balances on the open POs, $7.6 million. So, so the total commitment is $52.7 million, and, um, funds remaining for future projects, $178 $5 million."},{"start":4724037,"end":4732613,"speaker":"G","text":"Um, in, in the copy that's on the agenda, that number, uh, we found today, that was an error. The one that Erica just reported was correct."},{"start":4732774,"end":4734429,"speaker":"A","text":"I was going to say it says $50 million."},{"start":4734638,"end":4739635,"speaker":"J","text":"So this report actually, uh, it's a little bit manual. It's a manual report."},{"start":4739683,"end":4744756,"speaker":"A","text":"Wait, he just said it was automatic. It's not going to be manual and automatic. It's either one or the other."},{"start":4745078,"end":4747365,"speaker":"G","text":"Like I said, there's a little bit of manual input."},{"start":4747477,"end":4753202,"speaker":"J","text":"Yes, a little bit of still man— I can tell you which ones are, um—"},{"start":4753202,"end":4775798,"speaker":"E","text":"I have a request for future, uh, reports, is to show projections for the future fiscal years. So it's like when you look at this report, like next year, say it's 2026, we're looking at sometime 2027. It's what's more important to me is what's changed and why it's changed."},{"start":4775880,"end":4776072,"speaker":"D","text":"Changed?"},{"start":4778000,"end":4786002,"speaker":"J","text":"We have, um, um, a more detailed report coming up, uh, next slide, um, that will show the changes."},{"start":4786999,"end":4787175,"speaker":"D","text":"Okay."},{"start":4787320,"end":4791867,"speaker":"J","text":"And more details. This is just a very short summary."},{"start":4792140,"end":4793233,"speaker":"E","text":"Yeah, yeah, I understand."},{"start":4795097,"end":4796832,"speaker":"A","text":"So, so on this— oh, go ahead."},{"start":4796881,"end":4816619,"speaker":"H","text":"I was just going to bring everybody's attention to this page. This is the F&P, and this just for the, the, the new members then this might be some good reference material for you to take a look at. This facilities Master Facilities Plan was done the very beginning of the bond program to identify the needs, the updated needs for the district. So just, just for the, the new members, that might be something to take a look at."},{"start":4816619,"end":4839286,"speaker":"A","text":"Could you just review on this table, Erica, how is the remaining budget projects— is that even the right terminology? The $74.6 million, how is that calculated? So, I'm with you at the expenditures, the encumbrances. We get the commitments. Where does the $74.6 million come from?"},{"start":4840040,"end":4845157,"speaker":"G","text":"The remainder of the HVAC projects that have already been budgeted."},{"start":4845478,"end":4852906,"speaker":"A","text":"Okay, so a better word for that would be what, committed but unspent, essentially, is what you're referring to here?"},{"start":4853115,"end":4858551,"speaker":"H","text":"Well, committed kind of, kind of, insinuates that there's a PO out for it."},{"start":4858647,"end":4858935,"speaker":"F","text":"This is—"},{"start":4859512,"end":4862798,"speaker":"H","text":"but this is money that's maybe— that's budgeted but not committed quite yet."},{"start":4862798,"end":4866228,"speaker":"J","text":"Well, unallocated funds."},{"start":4866228,"end":4876213,"speaker":"A","text":"But it's approved to be spent, right? The board already approved that you're going to do this HVAC. It's going to take 4 years or whatever. So you're setting aside this money for that, right?"},{"start":4876213,"end":4876614,"speaker":"E","text":"Yep."},{"start":4876614,"end":4884227,"speaker":"A","text":"But it's not— you're right. I mean, POs haven't been issued, but the budget has been claimed essentially. That's what this is supposed to say. It's supposed to—"},{"start":4884757,"end":4889591,"speaker":"H","text":"The budget's been claimed through Phase 3. Yeah, through Phase 3, correct."},{"start":4891599,"end":4896819,"speaker":"A","text":"Okay, and then the— so the total then is the, the commitments plus that?"},{"start":4897445,"end":4897766,"speaker":"H","text":"Correct."},{"start":4898569,"end":4902922,"speaker":"A","text":"And then you just subtract that from $305 million, and that's supposed to be the $178 million?"},{"start":4903147,"end":4903484,"speaker":"G","text":"Yeah."},{"start":4903628,"end":4904913,"speaker":"D","text":"Okay, yep, got it."},{"start":4905925,"end":4915368,"speaker":"F","text":"So, so the $127 million For everything. So is that a number that the board would have, would have approved?"},{"start":4915673,"end":4915994,"speaker":"H","text":"Correct."},{"start":4916155,"end":4916717,"speaker":"B","text":"Yeah. Okay."},{"start":4918563,"end":4918836,"speaker":"A","text":"Okay."},{"start":4920008,"end":4920201,"speaker":"D","text":"Okay."},{"start":4923235,"end":4934893,"speaker":"A","text":"And at what point do you think the amount that needs to be spent will be equivalent to the $90 million raised, and thus a new tranche will need to be sold?"},{"start":4938007,"end":4945358,"speaker":"G","text":"We'll likely look to sell Series B in the spring to summer of '27."},{"start":4945358,"end":4961600,"speaker":"A","text":"'27. Okay. All right, then there's the facilities Master Facilities Plan you referred to. Thank you for the reference to that. Where do you want to take us next, Erica?"},{"start":4962070,"end":5004055,"speaker":"J","text":"Page 5, Measure S revenue and fund status. This is also a summary. It's very visual, and you can see encumbrance categories: site, planning, construction. And then the, the column shows the total budget, $127 million, and we encumbered $52.7 million. So if you take the budget minus the encumbrances, the purchase orders, we have the $74.6 $26 million budget remaining. And then you can see total budget, and then revenue received 77%, 41% encumbered, and 59% remaining budget."},{"start":5006977,"end":5011319,"speaker":"D","text":"Any questions?"},{"start":5011319,"end":5013324,"speaker":"A","text":"Super fancy."},{"start":5015119,"end":5072802,"speaker":"J","text":"Next page is page 6. I really like this one. This is a pie chart. Shows the total budget, and then it shows all the different projects like lighting retrofit, the HVAC modernization, Phase 1, Phase 2. We added Phase 3. We have the bond program contingency, $35 million. And program support costs include the bond program general management and the, the common costs as well, which is like pro— also includes program management, salaries and benefits of bond director, accountant, and other audit costs. This kind of type of running costs. That's $7.7 million. $1.2 million. And then we have, um, the climate control."},{"start":5073748,"end":5080022,"speaker":"A","text":"Yeah, I was— I hadn't seen that before. What is that project? Is that something different from the HVAC modernization project?"},{"start":5080246,"end":5101607,"speaker":"H","text":"Yeah, that was, uh, that was the installation of the temporary units, and it was some of the miscellaneous climate control that happened. Um, Martin, if you can help me remember, it's the, uh, the blinds, the roller shades, shades, uh, some tinting, window tinting, window films, and like I said, the, the installation of the temp HCSD units as well."},{"start":5102635,"end":5109186,"speaker":"A","text":"And the purchase of them as well is in there, or— okay, all right, thank you for that clarification."},{"start":5110342,"end":5110583,"speaker":"G","text":"So the—"},{"start":5110728,"end":5116588,"speaker":"A","text":"again, the budget is the— what the board has approved to spend out of the $300 million. That's the $127 that you're working from."},{"start":5117166,"end":5117391,"speaker":"D","text":"Got it."},{"start":5117648,"end":5117760,"speaker":"A","text":"Okay."},{"start":5121480,"end":5138773,"speaker":"J","text":"The next report is Measure S summary by site. This one shows each site and how much is the budget for each site, how much we encumbered, expenditures, and remaining balances."},{"start":5138773,"end":5150665,"speaker":"A","text":"So my question here was, you mentioned that this Phase 4 has not been budgeted, correct, or approved by the board. But is it in here or not in here?"},{"start":5151050,"end":5151546,"speaker":"J","text":"No, it's not."},{"start":5151691,"end":5152364,"speaker":"H","text":"It's not in here."},{"start":5152668,"end":5155617,"speaker":"A","text":"So if you— what, what school would be in that Phase 4, for example?"},{"start":5155777,"end":5155953,"speaker":"B","text":"Nick?"},{"start":5157540,"end":5159751,"speaker":"A","text":"Uh, McKinley, I thought you said was in Phase 4."},{"start":5160280,"end":5161498,"speaker":"C","text":"McKinley, North Star."},{"start":5161578,"end":5164142,"speaker":"A","text":"So why does McKinley have $1.5 million in the budget?"},{"start":5164222,"end":5175584,"speaker":"H","text":"Because this also has, uh, the temp units. This is everything that's been spent under Measure S. Okay, so this has the temp units, the lighting project, any of the climate control projects also included in it."},{"start":5175888,"end":5183451,"speaker":"A","text":"All right, so each of these schools will look more like $8 or $10 million when you put the HVAC in, plus or minus, rough depending on the size."},{"start":5183500,"end":5191047,"speaker":"H","text":"Some of the schools are, are, are a fair significant size less, less from size. But yeah, when you put that money in, it'll eventually get closer to balancing out."},{"start":5192473,"end":5192793,"speaker":"G","text":"Thank you."},{"start":5194956,"end":5236095,"speaker":"J","text":"The next report— if you have no questions, I go to the next report. The next report is the Cumulative Measure S overall summary by project. This is a cumulative and from inception to December 31st, 2025. So page 9, it starts at page 9. And then you can see the original budget, budget, budget change, encumbered amounts. The expenditures, and it shows also the encumbered balance remaining. And then on the left side, it shows the project."},{"start":5237010,"end":5296485,"speaker":"H","text":"So, uh, I could jump in here real quick. Um, just speaking of Phase 1 of the HVAC, since it's our, our major— our, our first major project outside of the lighting project— you can see the board-approved budgets right there, and you can see the, uh, the total budget, and we ended, uh, at this point we were at about $24 million, $24.3 million, uh, encumbered. So a little bit, a little bit under the, the original board-approved budget. Um, we're also just— this is a preview until next board meeting. You'll see a change order on the, uh, the log next board meeting that returns about $2 million for, uh, for savings for the overall project from the general contract. Contractor. So through— as we got through construction, we realized— didn't realize, but we, we worked and we got to the point where we were able to save about $2 million on the original construction contract. So that credit will come back to this. So we'll end up, end up pretty, pretty decently under budget for Phase 1."},{"start":5296485,"end":5329658,"speaker":"A","text":"Okay, so just to walk through, um, just so I'm totally clear, so page 9, right, HVAC Phase 1 subtotal line, you're referring to. $25 million was the board-approved original budget number, correct? And Erica, this is the thing we were asking for in the next meeting, or last meeting. This is never going to change. That number was the board-approved original number, right? It's not a moving target like the other— okay, then you said, um, Eric, that the total budget went up a little bit, but you're expecting it to actually be below?"},{"start":5330058,"end":5331100,"speaker":"H","text":"No, no, no, no."},{"start":5331244,"end":5332623,"speaker":"A","text":"Let me cover it. Okay."},{"start":5332623,"end":5360109,"speaker":"H","text":"And on two projects, so when we took it to the board, it was, we said it was going to be an average of $5 million per site. On two projects, it ended up being a little bit more than $5 million. On two projects, it ended up being a little less than $5 million. So overall, on Phase 1, we are under budget. And right now, at this point of 12:31, we're going to be even farther under budget when we get that change order, when the change order hits the books the next phase. So we were, we've been under budget the entire time for this project."},{"start":5360702,"end":5366200,"speaker":"A","text":"But in the total budget column, it says that the budget did go up. That's because in the, the estimates went up, you're saying?"},{"start":5366409,"end":5366633,"speaker":"H","text":"Yep."},{"start":5366777,"end":5368588,"speaker":"A","text":"But then you're going to deliver at a savings?"},{"start":5368717,"end":5369278,"speaker":"H","text":"Exactly."},{"start":5369598,"end":5374840,"speaker":"A","text":"And what do you think the total— but the total expense will be relative to the $25 million?"},{"start":5375192,"end":5378318,"speaker":"H","text":"Uh, we— yeah, we should be, we should be in the $22s."},{"start":5379119,"end":5392972,"speaker":"J","text":"Okay, so you will see a deductive change order. Um, the deductive change order of $2.3 million will, uh, be applied, and then it will decrease the, the, uh, income balance."},{"start":5393807,"end":5397224,"speaker":"A","text":"And what do you attribute the $2 million savings to, roughly?"},{"start":5398203,"end":5500936,"speaker":"H","text":"Um, when we— so when we initially got the drawings, um, there was a couple things. Uh, DSA, the Division of the State Architect, the authority having jurisdiction— sorry for the new folks with the acronyms— they are, uh, the, uh, the authority having jurisdiction over the buildings and schools. So you don't go to your, your local city to get a permit for a school, you go to the state, and the state agency is DSA. Um, when we submitted our plans, uh, to DSA, uh, we had extensive comments, uh, structural comments, um, that we had to address, that they wanted addressed at each site. So we worked initially when we put the contract together, we, we based it on those— the, the what we knew at the time. Um, We worked— the project team worked together to kind of come up with some more creative solutions to those as we went through, and we took those solutions back to DSA and got them approved and got it and, and saved a little bit of money there. The project also had a contingency for the installation of the temp ACs, and part of that money, part of that contingency, as we got into each classroom. So it's a unique project, right? Installing a temp AC in each classroom, we're not, we're not going to be able to walk every single classroom and figure out exactly how we're going to do it each way beforehand. So we put an average per classroom. There were some classrooms that we were able to go into and come up with a better solution and run it more efficiently. And then also the project included some contingencies for items like dry rot or anything that we came across as we took the units off and we exposed unforeseen conditions, and we saved a chunk of money with that too, just by not encountering as many unforeseen conditions as we thought initially."},{"start":5501531,"end":5505659,"speaker":"A","text":"Thank you to Martin and his amazing maintenance crew. There was no dry rot, you're saying?"},{"start":5506590,"end":5511425,"speaker":"H","text":"Yeah, there was, there was very little. Martin, Martin is fantastic at his job."},{"start":5511554,"end":5512180,"speaker":"B","text":"Good job, Martin."},{"start":5512228,"end":5512565,"speaker":"H","text":"No doubt."},{"start":5514862,"end":5517111,"speaker":"A","text":"All right, thank you for explaining that, and that's great news to hear."},{"start":5517593,"end":5518059,"speaker":"H","text":"Thank you."},{"start":5519602,"end":5523619,"speaker":"A","text":"Anything else on— any questions on this or anything else you want to share on this, Erica?"},{"start":5524808,"end":5526671,"speaker":"J","text":"Uh, no, I will go to, uh—"},{"start":5527057,"end":5534143,"speaker":"G","text":"can I say something though? Yes, just for our new members, we're talking about a directive change order that's going to come to the board in May."},{"start":5535252,"end":5538401,"speaker":"H","text":"Actually, it, it was, it was approved in February."},{"start":5538465,"end":5539044,"speaker":"G","text":"Just have that."},{"start":5539671,"end":5553214,"speaker":"J","text":"Yeah, yeah, it's very much The next report is on page 11, Measure S encumbrance summary by project."},{"start":5553278,"end":5563062,"speaker":"A","text":"Can I pause you just for one sec? I'm sorry, something else caught my eye. So HVAC Phase 2, you're budgeting more per school. Is this just because costs are going up every year?"},{"start":5563159,"end":5606954,"speaker":"H","text":"Yeah, and it's something that we're going to have to talk to the board about as we bring these HVAC projects. They're going to be more more. Um, costs are going up every year. We set aside the $35 million to help pay for escalation. I mean, we all know current events with— as we go to fill up our pump, uh, and that drives everything in the construction industry from trucking to materials to everything. So, um, the, the costs are going up at a pretty good pace right now. Uh, so it's definitely, uh, you're going to see every year that they are going to going up, and we're going to be fighting that battle the entire bond program. And like I said, that's the— that's why we set aside that $35 million for the program contingency to help cover some of the costs of escalation as we go through the program."},{"start":5607612,"end":5618932,"speaker":"C","text":"If I could add, there was also a code change from Phase 1 to Phase 2 that required some additional demo framing mechanical equipment that we didn't have."},{"start":5618997,"end":5620088,"speaker":"A","text":"There goes our $2 million."},{"start":5622270,"end":5631092,"speaker":"H","text":"Yeah, I mean, there's no doubt. I mean, we laugh about it, but yeah, you're, you're absolutely right that it's going to get spent. It's going to go through this project and it's going to get spent between that."},{"start":5631623,"end":5640381,"speaker":"A","text":"So can you talk about Phase 3? Because the costs are almost double now. If you were originally budgeting $5 million a school, now it's almost $10 million by the time you get to Phase 3."},{"start":5640769,"end":5647375,"speaker":"H","text":"Yep. Me? Yeah, me. You're absolutely right. And I'll let Nick talk a little bit about some unique situations of both of those schools."},{"start":5648419,"end":5677078,"speaker":"C","text":"Uh, yeah, so for Phase 3, we based it on the numbers we were getting from contractors for Phase 2 with a little bit of escalation. Um, and so it's actually $7.5 million construction per school that we brought to the board, and then we always put a 25% soft cost on that, um, which we're right now a little bit under for Phase 1, and we expect to be under for Phase 2. Um, but that's always part of the total project cost."},{"start":5677565,"end":5682242,"speaker":"H","text":"So we're, we're tacking on that about 6.5-7% each to each phase right now."},{"start":5689331,"end":5700713,"speaker":"A","text":"A lot of money. Um, all right, sorry for that, uh, digression. The lighting project is going to come in exactly to the dollar of the budget?"},{"start":5700763,"end":5716872,"speaker":"H","text":"Yeah, it's going to come in right on budget. It's Pretty typical for an energy lighting project. They're really easy to quantify up front. They're design-build. The designer goes out and, and quantifies everything, counts light fixtures, goes through the electrical and all that. So yeah, it's going to come in right on budget."},{"start":5717049,"end":5718894,"speaker":"A","text":"Didn't find any dry rot, apparently."},{"start":5719070,"end":5722231,"speaker":"H","text":"No, no, good thing, good thing with lighting."},{"start":5722423,"end":5725247,"speaker":"D","text":"Yep. Okay, thank you."},{"start":5726835,"end":5727637,"speaker":"A","text":"Back to you, Erica."},{"start":5728359,"end":5761278,"speaker":"J","text":"Page 11, Measure S encumbrance summary by project. We are going into more details. Quarterly report. So this one is from October 1st through December 31st. And this is— this report is very similar to the Excel spreadsheet you received at 5.51. It just shows in a different format. It's a PDF format. And is the same."},{"start":5761696,"end":5771664,"speaker":"H","text":"Okay, yeah, this is, this is basically showing you every expense that for each by project for, for the time period."},{"start":5773097,"end":5786202,"speaker":"A","text":"And on the bottom of page 17, you can see the price for key analytics, how much it costs to get this beautiful PDF, right? Okay."},{"start":5786202,"end":5790407,"speaker":"D","text":"Okay. All right."},{"start":5790407,"end":5811959,"speaker":"A","text":"This, this may be— It's a bit of a sensitive topic with you guys sitting here, but we're spending $200,000 a month, right, on your services, but we're not really doing the big projects yet. Do we need $200,000 a month of your services? So, uh, our—"},{"start":5811959,"end":5813337,"speaker":"F","text":"yes, I, I get it."},{"start":5813561,"end":5821061,"speaker":"A","text":"I mean, I, I mean it in the— you know, I'm just asking as the taxpayers' representative here, because if we're building 4 buildings, we need all your help."},{"start":5821429,"end":5853399,"speaker":"H","text":"It's a fair question. Um, it's a, it's a common way that districts try to put out their RFPs is for a lump sum for the entire bond program, and it gives us a straight line, uh, the, the straight line fee. I it can ebb and flow. Um, but that's the, that's how our proposal was written at the time, was a, was a straight-line fee. We will charge you this much per month regardless of how many projects are going or how many, how many projects. So when you have 10 projects going, they'll be the same, it'll be the same amount per month."},{"start":5854360,"end":5856684,"speaker":"A","text":"And how long was the engagement for, do you recall?"},{"start":5857165,"end":5859921,"speaker":"H","text":"I forget off the top of my head. I'd have to go back and look at my contract."},{"start":5859969,"end":5859985,"speaker":"D","text":"I—"},{"start":5860370,"end":5862251,"speaker":"H","text":"Rick, I don't know, do you remember? Was it 5 years?"},{"start":5862299,"end":5863006,"speaker":"C","text":"Yeah, 5 years."},{"start":5863199,"end":5863344,"speaker":"D","text":"Yeah."},{"start":5865289,"end":5876328,"speaker":"A","text":"Okay, thank you. Okay, Erica, one more, or—"},{"start":5876377,"end":5903923,"speaker":"J","text":"Yes, one more report, uh, page 19, cumulative Measure S expenditures summary by project. This is also a quarterly report, October 1st through December 31st, and it's a summary by category. You can see the, the projects and different categories like architects' fees, DSA fees, and the rest of the categories."},{"start":5903923,"end":5933125,"speaker":"A","text":"Okay, thank you. Okay, any final questions on this section? Alan, did you get— you had a request. Was it addressed, or do you— is there something that you would like to see from the district that you're not seeing?"},{"start":5933977,"end":5946472,"speaker":"D","text":"Well, it would just be like when we have— we have this moving forward, you have like this Measure Bond Summary, and I guess it's on page, page 3."},{"start":5948169,"end":5951806,"speaker":"E","text":"It'd be helpful just to see what, you know, as you—"},{"start":5953326,"end":5978512,"speaker":"D","text":"when you do a, a period of time reporting, what do you project for the future periods? What's more important, I think, to see like what's what's changed from the original projection to what actually happens. That makes sense. Just add a couple columns here."},{"start":5978512,"end":5993973,"speaker":"A","text":"Okay, can you produce this for last fiscal year? Because we need that for the bond, for the, the annual report."},{"start":5994117,"end":5997136,"speaker":"J","text":"Just this summary or everything?"},{"start":5997891,"end":6004297,"speaker":"A","text":"This package, this thing. Is it easy enough to change the date range and press go?"},{"start":6004378,"end":6005437,"speaker":"J","text":"Yes, we can work on that."},{"start":6005759,"end":6006690,"speaker":"A","text":"Beautiful. What an amazing—"},{"start":6007027,"end":6007284,"speaker":"J","text":"this is—"},{"start":6008729,"end":6037268,"speaker":"A","text":"unfortunately, we'll need the same thing for Measure T, and it probably won't be quite as easy for you. Okay. All right, I like the new formats, much more accessible. Yeah, yeah, much, much easier to consume. Thank you. All right, that was 5.6. So we're now at 5.7. Thank you. There's the date, June 11th. Does anyone have an issue with June 11th for the next meeting? Check your calendars."},{"start":6039001,"end":6040847,"speaker":"D","text":"Okay."},{"start":6046374,"end":6085671,"speaker":"A","text":"Sounds great. Okay, beautiful. Any topics for the agenda? We kind of have our typical rolling topics, but was there anything that came up that anyone would like specific? We will have at the next meeting, if all goes well, we'll have the approval of the annual report for '24-'25 as an agenda item. The normal things. Is there anything else that anyone on the committee wants to add to the agenda for next time? Beyond the— okay. All right, then, do we have a motion to adjourn the meeting?"},{"start":6088349,"end":6088927,"speaker":"F","text":"With pleasure."},{"start":6090498,"end":6092984,"speaker":"A","text":"I second. Okay, all in favor?"},{"start":6093305,"end":6093353,"speaker":"B","text":"Aye."},{"start":6094110,"end":6098180,"speaker":"A","text":"Okay, the motion is passed. The meeting is adjourned. Thank you, everyone."}]}