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SO WE'LL, THE TREES, THE SUNS BACK AND IT TOTALLY, THE BACKYARD IN THE WINTER TIME.HOW ARE YOU? YOU, I GOOD, GOOD TO SEE.
WE READY? HOW ARE YOU? I IN OF CAR COMMERCIAL BREAK.
I AM THRILLED TO, TO ORDER OUR 9:00 AM BOARD OF SUPERVISORS FOR OUR NOVEMBER 29TH JOINT WORK SESSION AND I'M HAPPY TO CALL TO ORDER THE SCHOOL JOINT WORK SESSIONS.
THANK YOU EVERYBODY FOR COMING.
BE SOMETHING EXCITING GOING ON
SO SINCE IT'S EXCITING AND I'LL TURN IT OVER TO SOMEONE A LOT MORE EXCITED THAN ME, DR.
A, TAKE IT AWAY, RIGHT? WELL, GOOD MORNING AND, AND WELCOME EVERYBODY.
UH, TODAY IS CERTAINLY A VERY IMPORTANT PIT STOP ON THIS JOURNEY, UH, JOURNEY THAT'S BEEN GOING ON FOR QUITE SOME TIME, AS WE KNOW.
AND IN SOME WAYS, DATING BACK TO MAYBE ALL OF OUR SERVICE IN THIS COUNTY WHEN EVEN DISCUSSIONS WERE TAKING PLACE IN GLAND COUNTY AROUND 2007, 2008, ABOUT A NEW GUC ELEMENTARY SCHOOL.
SO THIS HAS BEEN CERTAINLY AN IMPORTANT CONVERSATION IN OUR COMMUNITY FOR QUITE SOME TIME.
UH, A FEW INTRODUCTIONS REALLY QUICKLY.
IN ADDITION TO THE INTERNAL STAFF THAT WE HAVE HERE REPRESENTING THE SCHOOL DIVISION, WE HAVE A FEW FOLKS WHO'VE BEEN A PART OF THIS PROJECT ALONG THE WAY.
UH, LAST SUMMER WE HIRED STANTEC AS OUR ARCHITECT ON THIS PROJECT, AND DR.
BILL BRADLEY, WHO'S THE PRINCIPAL ARCHITECT FOR STANTEC, HAS BEEN WORKING WITH US ALONG THE WAY, IS HERE TO ANSWER ANY TECHNICAL QUESTIONS THAT I MAY NEED ASSISTANCE WITH.
IN THE BACK OF THE ROOM, WE ALSO HAVE MR. JIMMY ICK AND MR. RYAN WALD, WHO REPRESENT THE FIRM WITH MVP, THE SCHOOL DIVISION, HIRED LAST SUMMER.
AGAIN, TO REPRESENT OUR INTEREST IN THIS, MAKING SURE THAT WE HAVE A QUALITY PROJECT FOR OUR COMMUNITY.
SO, UH, LOOKING FORWARD TO OUR CONVERSATION TODAY.
I HAVE SOME NATURAL BREAKING POINTS IN THE CONVERSATION FOR QUESTIONS, CLARIFICATION, ANYTHING THAT THE GROUP MAY NEED.
BUT BEFORE THAT, IF YOU HAVE ANY QUESTIONS, IF I'M GOING THROUGH A SLIDE AND SOMETHING RESONATES WITH YOU, WE CAN PAUSE AT ANY MOMENT.
THIS IS A DISCUSSION, RIGHT? THIS IS A REALLY IMPORTANT DISCUSSION FOR OUR COMMUNITY.
I REALLY WANNA MAKE SURE THAT EVERYBODY WHO IS MAKING DECISIONS ON THIS PROJECT FULLY UNDERSTANDS EVERYTHING SO THAT YOU CAN MAKE AN INFORMED DECISION, UM, MOVING FORWARD.
SO, ORDER OF EVENTS FOR TODAY, I DO WANT TO GO BACK IN HISTORY JUST A LITTLE BIT, JUST THE STANDARD SET FOR THE BENEFIT OF THE AUDIENCE WHO MAY NOT HAVE BEEN A PART OF THE CONVERSATION IN THE PAST.
SPEND SOME TIME UNPACKING THE PROJECT BUDGET, REALLY BREAK THAT APART A LITTLE BIT, AND TALK ABOUT WHERE WE HAVE BEEN AND WHERE WE ARE NOW WITH SOME FACTUAL INFORMATION, UH, PRESENT TO YOU FOR YOUR CONSIDERATION, UH, IN DISCUSSION, A BALANCED FINANCIAL MODEL, UH, GIVEN SOME PARAMETERS AND SOME POTENTIAL REVENUE STREAMS. AND THEN JUST HAVE SOME OPEN DISCUSSION ALONG THE WAY REGARDING WHAT NEXT STEPS MAY BE.
SO JUST TO BRING US BACK IN TIME A LITTLE BIT, UH, THIS IS THE SITE THAT WE ARE CONSIDERING BUILDING THIS NEW ELEMENTARY SCHOOL.
IT'S AT THE CORNER OF STEEPLE CHASE AND BULLDOG WAY.
IT'S IN CLOSE PROXIMITY, AS WE KNOW TO OUR MIDDLE SCHOOL AND OUR HIGH SCHOOL THAT CURRENTLY EXISTS ON THE BULL DOG WAY PROPERTY.
IT'S A BEAUTIFUL PIECE OF PROPERTY.
UH, BUT AS WE HAVE DISCOVERED OVER TIME, UH, THERE ARE SOME CONCERNS AND SOME ISSUES RELATED TO SITE DEVELOPMENT THAT WE'VE TALKED ABOUT IN, IN A SETTING LIKE THIS IN THE PAST.
BUT ULTIMATELY, IT STILL IS A VIABLE SITE.
PLENTY OF ROOM FOR US TO BUILD THE SCHOOL, UH, ON OPPORTUNITY TO SEPARATE BUS TRAFFIC FROM CAR TRAFFIC, AMPLE OPPORTUNITY FOR PARKING, PLAYGROUNDS, AND ALL THE COURSE SERVICES THAT ARE NEEDED AT THE SCHOOL.
UH, IMPORTANT AS WE PLACED A BUILDING ON THE SITE THAT REALLY THIS SITE, UH, CAN ACCOMMODATE A SIMPLE DESIGN.
UH, AND AS YOU KNOW, WE HAVE GONE BACK AND LOOKED AT MANY DIFFERENT ITERATIONS OF DESIGN.
WE HAD AN INITIAL DESIGN BACK IN JANUARY THAT WE SCRAPPED SIMPLY BECAUSE OF THE COST ASSOCIATED WITH THAT.
AND WE HAVE EVOLVED INTO A VERY SIMPLE DESIGN THAT REALLY ESSENTIALLY IS TWO RECTANGLES.
UH, WE HAVE CORE SERVICES ON THE RIGHT HAND SIDE WITH ADMINISTRATION AND GYMNASIUM AND CAFETERIA AND SERVICE.
AND ON THE LEFT HAND SIDE IS THE ACADEMIC WING.
SO IT'S REALLY A VERY SIMPLE DESIGN, TWO STORY DESIGN ON THE LEFT,
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THE ONLY TWO STORY ON THE RIGHT HAND SIDE IS THE GYMNASIUM.SO THIS IS A FLOOR FRAME OF THE FIRST LEVEL.
AGAIN, JUST A, A SIMPLE TWO RECTANGLES.
YOU CAN SEE ON THE RIGHT SIDE THE GYMNASIUM IN THE KITCHEN ON THE LEFT HAND SIDE, ON THE FIRST FLOOR.
UH, WE HAVE ON THE EXTERIOR ASPECTS OF THE BUILDING, PRE-K, KINDERGARTEN, FIRST GRADE.
WE ALSO HAVE ON THE FIRST FLOOR OUR LIBRARY MUSIC CLASSROOM SUPPORT FOR STUDENTS, FOR COUNSELING, AND THEN SOME PRESCHOOL SPACES TO SUPPORT THAT OPERATIONS.
JUST TO BRING US ALL BACK TO WHERE WE ARE ON THE CAPACITY OF THIS BUILDING.
IT'S DESIGNED FOR 650 STUDENTS, GRADES K THROUGH FIVE WITH 50 OTHER STUDENTS, GRADES, PRESCHOOL.
SO A TOTAL OF 700 STUDENTS WHEN THIS IS FULLY OCCUPIED IN FUTURE YEARS.
SO AGAIN, SIMPLE DESIGN CORRIDORS ON EITHER SIDE, ACCESSING THE CLASSROOMS. AND THEN THE SECOND FLOOR, WE HAVE THIRD, FOURTH, AND FIFTH GRADE STUDENTS, SECOND GRADE STUDENTS UP THERE AS WELL.
STUDENT SERVICES AND OTHER SUPPORT FOR STUDENTS WITH SMALL GROUP INSTRUCTION SPACES AS WELL.
SO, UM, TWO SIMPLE RECTANGLES.
UH, PRETTY STANDARD SIMPLE DESIGN, UH, SCHOOL IS DESIGNED FOR US TO BE PROUD OF, BUT YET AT THE SAME TIME BE REALLY EFFICIENT WITH OUR TAXPAYER DOLLARS AND, UM, AS FAR AS WE CAN, UH, TO SUPPORT OUR INSTRUCTIONAL PROGRAM MOVING FORWARD.
SO, UM, SEE, I'VE LOST WHAT'S, UH, WHAT'S CURRENT ENROLLMENT AT GLAND ELEMENTARY? CURRENT ENROLLMENT AT GLAND ELEMENTARY SCHOOL IS, UH, WHEN YOU FACTOR IN ALL OF THE PRESCHOOL STUDENTS, MS. MCKAY, WE'RE ROUGHLY 400 STUDENTS, 3 90, 3 90, PLENTY OF ROOM TO FLEX UP WITH THIS DESIGN.
SO WHAT WE'VE DONE, MR. VAS, IS LAST YEAR THE SCHOOL BOARD HAD THE VISION TO GO BACK AND, UM, DO SOME BOUNDARY ADJUSTMENTS AND RECOGNIZE THAT WE WANT, ULTIMATELY THIS IS BUILT FOR 650 STUDENTS, GRADES K THROUGH FIVE AND 50, PRESCHOOL AT 700.
SO WHAT WE WANT TO DO IS WE WANNA PULL STUDENTS FROM THE RANDOLPH ATTEND ZONE.
WE PULL STUDENTS FROM THE BIRD TENDON ZONE SO THAT WE CAN PROVIDE SOME LONGER LIFE TO THOSE SPACES, PULL TRAILERS THAT ARE CURRENTLY OFF THE SITE.
SO THROUGH THAT BOUNDARY ADJUSTMENT, WE CAN PULL THE KIDS FROM THOSE TWO SPACES.
AND THIS WILL BE FULLY OCCUPIED, ABOUT 75% OCCUPANCY, UH, WHEN WE OPEN HERE TO GO.
ALL RIGHT, SO LET'S UNPACK THE PROJECT BUDGET FOR A LITTLE BIT.
AND THE PROJECT BUDGET REALLY CONSISTS OF SOFT COSTS, HARD COSTS, AND THEN AN OVERALL PROJECT CONTINGENCY.
AND SO, UH, SPENDING JUST, JUST A MOMENT QUICKLY ON WHAT IS COMPRISED OF THE SOFT COSTS AND, YOU KNOW, A VARIETY OF THINGS GO INTO THE OVERALL PROJECT.
AND WE'RE GONNA TALK IN A MOMENT ABOUT THE HARD CONSTRUCTION COSTS, BUT THERE ARE ALSO OTHER SERVICES THAT HAVE GONE INTO THIS WORK TO DATE.
AND SO WE'VE HIRED STEC, THEY'RE OUR FIRM, AND SO THERE ARE CERTAINLY FEES ASSOCIATED WITH THEIR WORK AS WELL AS THE OWNERS REPRESENTATIVE.
UH, WE HAVE BUDGETED FOR COMMISSIONING.
WE'VE DISCUSSED COMMISSIONING IN SOME CIRCLES IN THE PAST.
AND COMMISSIONING ULTIMATELY IS AN OPPORTUNITY FOR US TO MAKE SURE THAT EVERY ASPECT OF THE DESIGN FOR THE MECHANICAL SYSTEMS IS WORKING THE WAY THAT WE WANT IT TO.
THIRD PARTY COMES IN AND DOES THAT WORK, MAKE SURE THAT OUR INVESTMENT IS TRULY WHAT WE HAVE PAID FOR.
UH, WE HAVE TO GET FURNITURE FOR THE NEW BUILDING.
WE HAVE TO GET EQUIPMENT FOR THE NEW BUILDING.
SO THAT'S ALL PART OF THE SOFT COST BUDGET, UH, IN OUR REFERENCE TECHNOLOGY.
AND THEN PART OF THE PROJECT BUDGET OVERALL ULTIMATELY IS SOME OF THE WORK THAT WE'VE DONE IN COLLABORATION WITH COUNTY GOVERNMENT AND PERMITTING, UTILITIES, WETLANDS MITIGATION, AND SOME OF THE OTHER ASPECTS OF, OF THE WORK THAT WE'VE HAD TO DO SO FAR.
SO DATE, WE HAVE SPENT A LITTLE LESS THAN 3 MILLION ON SOFT COSTS ALREADY INVESTED IN THIS PROJECT WHEN IT COMES TO PERMITTING AND THE FEES THAT WE'VE ALREADY PAID FOR OUR SERVICE PROVIDERS ASSOCIATED WITH THIS.
SO MINIMAL CHANGE OVER TIME FROM OUR ORIGINAL NOVEMBER 21 BUDGET TO THE APRIL BUDGET THAT WE HAD.
AND THEN ULTIMATELY, OUR FINAL COSTS RIGHT NOW HAVE CHANGED JUST JUST A LITTLE BIT OVER TIME.
SO YOU CAN SEE WHERE WE ARE RIGHT NOW AT 7.64 MILLION IN TOTAL SOFT COSTS ASSOCIATED WITH THIS PROJECT BUDGET.
SO ON OCTOBER THE 17TH, WE SUBMITTED OUR PLANS TO EIGHT PRE-QUALIFIED BIDDERS.
UH, WE WENT THROUGH A PRE-QUALIFICATION PROCESS, AS WE KNOW, SO THAT WE COULD ENSURE QUALITY.
THOSE EIGHT BIDDERS MET MINIMUM SPECIFICATIONS THAT WERE REVIEWED BY US AND OUR OWNERS REPRESENTATIVE.
AND SO, UH, ULTIMATELY WE WERE REALLY EXCITED ABOUT HAVING EIGHT INDIVIDUALS WHO WERE INTERESTED IN THIS PROJECT AND WHO WERE PRE-QUALIFIED FELT THAT THAT WAS GOING TO GIVE US A LOT OF COMPETITION AND ULTIMATELY RETURN A REALLY GOOD PRICE FOR US.
AND SO WE SOLICITED THOSE BIDS ON OCTOBER THE 17TH.
WE LET 'EM SIT ON THE PUBLIC MARKET FOR 30 DAYS.
WE OPENED THEM AT TWO O'CLOCK ON THE 17TH AND OUT OF THOSE EIGHT PREQUALIFIED BIDDERS FOR ULTIMATELY DECIDED TO BID ON THIS PROJECT.
AND YOU CAN SEE THE RESULTS OF THOSE BIDS ON THIS SLIDE HERE.
SO YOU CAN SEE THE VENDOR AND THE
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RESULTS OF THEIR BID.SO AT THIS POINT IN TIME, THE APPARENT LOW BIDDER IS OUR SHOCKING AND SONS, THEY OF COURSE, ARE ONE OF OUR EIGHT PREQUALIFIED BIDDERS.
AND YOU CAN SEE THAT THE BID PRICE FOR THIS IS $45,599,000.
UH, SO THAT WAS THE LOWEST BID FROM THE FOUR THAT WE RECEIVED.
SO ANY QUESTIONS AT THIS POINT IN TIME? I LIKE THE
THEY WERE HOPING THAT NOBODY WAS GONNA TO COME A DIFFERENT, I WOULD JUST SAY FOR HOWARD SHOCKEY THAT THEY HAVE AN EXCELLENT WEBSITE THAT GIVES A, A VERY POWERFUL, UM, SUPPORT FOR THE EXCELLENT WORK THEY'VE DONE AND BEEN RECOGNIZED FOR THEIR SCHOOL, RIGHT? SO WE TRANSLATE THAT COST INTO THE HARD CONSTRUCTION COST IN THIS ASPECT OF THE BUDGET.
AND SO LEFT TO RIGHT BOARD MEMBERS, YOU CAN SEE WHERE WE WERE IN OUR ORIGINAL PRIOR, UH, ESTIMATE.
THAT WAS NOVEMBER OF 2021, AND HOW THAT EVOLVED OVER TIME WITH INFLATIONARY PRESSURES THAT EVERYONE CERTAINLY IS VERY, VERY WELL AWARE OF.
AND THEN WHERE WE ARE RIGHT NOW WITH THE FINAL BID PRICE.
AND SO THAT 45,599 INCLUDES SITE PREP, IT INCLUDES CONSTRUCTION, INCLUDES THE ROADS, IT INCLUDES, YOU KNOW, ALL THE THINGS THAT WOULD BE CONSIDERED HARD CONSTRUCTION COSTS THAT WERE NOT PREVIOUSLY REFERENCED IN THE SOFT COST SLIDE.
UH, WHAT WE HAVE DONE SO FAR, AND GRANTED, WE JUST RECEIVED THESE BIDS ON NOVEMBER THE 17TH.
UH, WE HAVE THANKSGIVING HOLIDAY IN THERE.
SO THERE HAVE NOT BEEN A WHOLE LOT OF BUSINESS DAYS SINCE WE RECEIVED THESE BIDS, BUT WE'VE ALREADY STARTED TO WORK WITH SHOCKY TO SEE IF THERE ARE ADDITIONAL OPPORTUNITIES FOR VALUE ENGINEERING BEYOND WHAT WE HAVE ALREADY DONE TO GET TO THIS POINT IN TIME IN THE PROJECT.
AND WE'VE IDENTIFIED QUICKLY $611,000 OF VALUE ENGINEERING OPPORTUNITIES THAT WE ARE AS A STAFF ARE COMFORTABLE WITH.
AND I'M GOING TO SHARE SOME, SOME OTHER POTENTIAL OPPORTUNITIES HERE ON THE NEXT SLIDE.
BUT WE'VE ALREADY IDENTIFIED, UH, WHAT WE FEEL IS A PRETTY SIGNIFICANT AMOUNT OF, OF OPPORTUNITIES TO REDUCE THE OVERALL PROJECT COSTS.
UM, WE'VE TALKED IN THE PAST ABOUT THIS ONSITE WATER TANK AND PUMP STATION.
WE WERE ACCOUNTING FOR THAT IN PREVIOUS BUDGETS.
THAT IS INCLUDED, UM, UH, IN, IN THIS OVERALL BUDGET.
AND WE'RE NOT SEEING THAT WE HAVE A NEED FOR THAT NOW, WHICH IS VERY POSITIVE, A SIGNIFICANT SAVINGS IN THE OVERALL PROJECT BUDGET.
UH, AND YOU CAN SEE THAT WE HAVE A CHANGE ORDER CONTINGENCY AT 3%, WHICH IS THE INDUSTRY STANDARD.
SO THE OVERALL HARD CONSTRUCTION COST, YOU CAN SEE THERE ARE 46 MILLION 8 36 TO 26.
SO AS I REFERENCED, WE'VE ALREADY BEEN WORKING WITH HOWARD SHOCKEY TO SEE IF THERE ARE ADDITIONAL OPPORTUNITIES TO, TO PROVIDE SOME SAVINGS.
AND SO, UH, WE, WE AS A STAFF, BASED ON THE WORK THAT WE'VE DONE SO FAR WITH THE ARCHITECT AND MVP, FEEL THAT WE'RE COMFORTABLE WITH THESE OPPORTUNITIES FOR ADDITIONAL SAVINGS.
UH, LIKE I SAID, 600, $11,000, UH, PRETTY, PRETTY SIGNIFICANT OPPORTUNITY IS MODIFYING ROOFING MATERIALS, UH, TO A DIFFERENT MATERIAL THAT STILL WANT TO HAVE LONG QUALITY AND WANNA BE POSITIVE FOR THE OVERALL BUILDING ENVELOPE WITH SOME PRETTY SIGNIFICANT CHANGES THERE AND SOME GOOD SAVINGS.
A FEW THINGS NIBBLING AROUND THE EDGES ON SOME EXTERIOR PANELS AND SOME EXTERIOR FINISHES.
UH, MODIFYING THE SITE WORK A LITTLE BIT, THAT'S A PRETTY SIGNIFICANT OPPORTUNITY FOR SAVINGS.
AND WE IDENTIFIED SOME CHANGES IN THE ELECTRICAL SYSTEM THAT'S NOT GONNA HAVE A NEGATIVE IMPACT ON THE PROJECT.
UH, THERE'S STILL ARE SOME OTHER OPPORTUNITIES POTENTIALLY DOWN THE ROAD FOR US TO FIND SOME ADDITIONAL SAVINGS.
AND ANY ADDITIONAL SAVINGS ULTIMATELY WILL BE TREATED MUCH LIKE WE DID WITH THE PARKING LOT PROJECT, RIGHT? THIS PROJECT COMES IN UNDER BUDGET, LIKE THE PARKING LOT PROJECT, THEN WE CAN LEVERAGE THOSE SAVINGS FOR ANY FUTURE CAPITAL PROJECTS PENDING APPROVAL BY, BY THE SUPERVISORS.
YOU'RE STILL SCRUBBING OUR FURNITURE BUDGET THAT WAS INCLUDED IN THE SOFT COST ABOVE, BUT THERE MAY BE SOME MINOR OPPORTUNITIES TO SAVE A LITTLE BIT IN FURNITURE BUDGET.
UH, ARE THERE ANY OTHER CONTINGENCY OR SITE ALLOWANCES THAT WE CAN LOOK AT? UH, WE'RE LOOKING AT WHETHER OR NOT WE WANT TO ACTUALLY PURCHASE A GENERATOR FOR THIS NEW SCHOOL.
UH, WE'RE STILL EXPLORING THAT A LITTLE BIT THAT COULD HAVE SOME POTENTIAL SAVINGS.
AND THEN SOMETHING ELSE THAT WE'RE PRETTY EXCITED ABOUT IS WORKING DIRECTLY WITH HOWARD SHOCKEY, WHERE WE COULD BUY MATERIALS THAT ARE APPROVED BY THEM, MATERIALS THAT ARE SPECIFIED IN THE DRAWINGS.
SO YOU'RE GOING TO GET THE SAME MATERIALS THAT, THAT WE WANT, BUT IF WE PURCHASE THEM, WE CAN SAVE SALES TAX AND, AND POTENTIALLY A LITTLE BIT OF, OF SOME OF THE, THE OVERHEAD ASSOCIATED WITH WITH THEIR WORK.
SO, UM, WE NEED TO EXPLORE THIS FURTHER WITH SHOCKI, BUT WE FEEL LIKE WE MIGHT BE ABLE TO, TO MANAGE A FEW SAVINGS SIMPLY BECAUSE WE'RE A TAX EXEMPT ORGANIZATION AND WE CAN SAVE A LITTLE BIT OF MONEY ALONG THE WAY THERE.
UH, SO THE BIG ONE HERE IS THE ROOFING.
UH, SO 335,000 REPRESENTS WHAT KIND OF SAVINGS? IT, 5% SAVINGS, 50% SAVINGS.
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AND WHAT DOES THAT DO TO THE LONG TERM MAINTENANCE OF THE BUILDING? YEAH, GREAT.SO OUT OF A $45 MILLION PROJECT, UH, NO, THE ROOFING.
SO WE COULD SAY IF, SO IT'S, UH, IT'S, I ASK JIM TO TALK A LITTLE BIT ABOUT THE ROOFING BECAUSE KNOWS A LITTLE BIT MORE OF THE DETAIL OF THE KIND OF MATERIAL AND THE THICKNESS OF THE ROOFING.
SO JIM, IF YOU WOULDN'T MIND SHARING, IT'S PROBABLY OFF THE TOP OF MY HEAD, IT'S PROBABLY ABOUT A 10, 15% SAVINGS ON THE OVERALL ROOFING.
I SAY ROOFING COSTS A 3 MILLION RANGE ON THE PROJECT.
UM, AS FAR AS THE QUALITY GOES, WHAT'S SPECIFIED IS A 30 YEAR WARRANTY ROOF, UM, WHICH IS 90 MIL.
IT'S HOW THEY, THEY RATE THE THICKNESS AND HOW IT QUALIFIES FOR A HIGHER WARRANTY.
UM, AND WHAT IS BEING PROPOSED TO GO TO A 20 YEAR ROOF, WHICH IS 60 MIL.
AND IN, FROM OUR EXPERIENCE, UM, 20 YEARS IS CLOSER TO THE INDUSTRY STANDARD.
SO WE, WE FEEL COMFORTABLE WITH THAT CHANGE.
SO THAT WOULD CHANGE THE C I P OVER TIME.
WOULD YOU WERE REPLACE TO MOVE 10 YEARS EARLIER? YES, MA'AM.
WHAT WOULD A GENERATOR TO POWER A SCHOOL RUN? AND IS IT, TO ME, IT SEEMS LIKE YOU DO NEED BACKUP POWER FOR SCHOOL.
YEAH, WE'VE BEEN ROUND AND AROUND ON THIS BECAUSE BY AND RANDOLPH CURRENTLY HAVE WHOLE SCHOOL GENERATORS AND RANDOLPH WILL BY THE END OF CHRISTMAS BREAK.
SO WE'VE MADE THAT INVESTMENT IN THOSE TWO SCHOOLS.
UM, THE WAY, YOU KNOW, OF COURSE WE'VE BEEN VALUE ENGINEERING THIS THING ALONG THE WAY, AND INITIALLY I WANTED A WHOLE SCHOOL GENERATOR FOR, FOR THIS PROJECT AND REALIZED THAT WE, WE COULDN'T AFFORD THAT.
SO WE, WE BUILT THAT INTO THE BID AS AN ADD-ON.
AND THAT ADD-ON FOR A WHOLE SCHOOL GENERATOR, I THINK JIM WAS WHAT, ONE POINT, 1.4.
SO NEEDLESS TO SAY, WE'RE NOT GONNA GO WITH THAT.
UH, IT'S SPECIFIED RIGHT NOW FOR A GENERATOR THAT HAS, THAT CAN OPERATE SOME OF THE CORE FUNCTIONS, EMERGENCY LIGHTS, REFRIGERATORS, FREEZERS, SOME OF THOSE KIND OF THINGS.
SO THAT'S, THAT'S IN THE OVERALL PRICE.
IF WE CHOOSE TO NOT DO THAT, I WOULD ESTIMATE WE COULD PROBABLY SAVE LIKE THREE OR $400,000 ON THE ACTUAL GENERATOR ITSELF.
HOW MANY DAYS, AND I DON'T KNOW IF YOU'VE DONE THIS, HOW MANY DAYS THAT WE WOULD HAVE A NEED FOR A GENERATOR, CAN WE EVEN GET SCHOOL BUSES TO THE SCHOOL? SO IS IT, DOES IT KIND OF BECOME A WASH IN THAT REGARD OR? NO, IT'S A NICE TO HAVE, BUT YEAH, SOMETIMES IN THE SPRING WE HAVE HAD TO CLOSE SCHOOL BECAUSE OF THUNDERSTORMS AND LACK OF POWER.
IT'S NOT NECESSARILY A WINTER EVENT, BUT, UM, YOU KNOW, OUR, THE SCHOOLS TOO ARE PRETTY IMPORTANT COMMUNITY HUBS FOR EMERGENCY SERVICES AS WELL.
SO, UH, YOU KNOW, THE HIGH SCHOOL HAS A GENERATOR.
IT'S ON SITE, IT'S PRETTY CLOSE BY, UH, SINCE WE'RE HIGH SCHOOL WE'LL HAVE A GENERATOR.
SO THERE ARE ARE OTHER COMMUNITY RESOURCES.
SO THAT'S WHY WE'VE REALLY SPENT SOME TIME THINKING ABOUT HOW WE CAN BEST USE OUR RESOURCES HERE.
AND SO REGARDLESS OF WHETHER OR NOT WE HAVE A GENERATOR, IT WILL HAVE THE CONDUIT AND THE CAPABILITY FOR A FUTURE GENERATOR, WHOLE SCHOOL OR SMALL SCALE.
WE'VE HAD THAT, THAT I FEEL STRONGLY ABOUT THAT.
SO SOME POTENTIAL OTHER OPPORTUNITIES, UH, PENDING EVALUATION WE TO, RIGHT, SO LOOKING AT THE PRO PROJECT AND ITS TOTALITY, UH, AGAIN, LOOKING LEFT TO RIGHT AND WHERE WE'VE BEEN IN HISTORY AND WHERE WE ARE NOW, UH, THE CURRENT PROJECT BUDGET IS $56,075,904, WHICH IS AN INCREASE FROM OUR ORIGINAL BUDGET IN NOVEMBER OF 13.4 MILLION OR 31.5%.
AND SO THIS JUST SUMMARIZES THE SOFT COSTS.
WE DISCUSSED THE HARD CONSTRUCTION COSTS AND GENERAL PROJECT CONTINGENCY, WHICH OVER TIME WE HAVE REDUCED FROM 7%, 3%, PRETTY NARROW MARGIN THERE.
STILL WANT TO HAVE PROJECT CONTINGENCY, DON'T WANT TO HAVE TOO MUCH CONTINGENCY, BUT WE WANT HAVE ENOUGH JUST TO FACE FOR SOMETHING THAT WE FACE THAT WE HAVEN'T PREPARED FOR.
SO I THINK AN IMPORTANT COMPARISON, AND THIS WAS REFERENCED IN ONE OF OUR PREVIOUS WORK SESSIONS, IS, YOU KNOW, WHERE DOES THIS COST LINE COMPARISON TO OTHER PROJECTS THAT ARE TAKING PLACE ACROSS THE COMMONWEALTH? YOU KNOW, WE, WE, THAT WAS AN IMPORTANT DISCUSSION POINT IN ONE OF OUR PREVIOUS WORK SESSIONS.
AND SO THIS IS THE MOST CURRENT DATA THAT WE HAVE BASED ON PROJECTS THAT WE ARE AWARE OF.
UH, CERTAINLY BUILDING HAS SLOWED DOWN JUST A LITTLE BIT, UH, BUT ULTIMATELY HERE'S THE PRICE PER SQUARE FOOT OF THESE PROJECTS.
AND SO WE, WE PURPOSEFULLY HAVE PULLED THE SITE OUT OF THESE COST COMPARISONS
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BECAUSE IN EACH ONE OF THESE SITUATIONS THE SITE'S GONNA BE DIFFERENT.WE KNOW OUR SITE CHALLENGES, GANDY ELEMENTARY SCHOOL IS IN A FLAT GREEN FIELD WHERE YOU HAVE WATER AND SEWER ALREADY THERE AND YOU HAVE A ROAD THAT ALREADY IS IN FRONT OF THE SCHOOL AND HAS, HAS THE ABILITY TO ACCEPT THE SCHOOL.
SO I'M NOT AWARE OF SOME OF THESE OTHER PROJECTS, BUT I KNOW THAT THAT ONE CERTAINLY DOES NOT HAVE THE SITE ISSUES THAT OUR PROJECT DOES.
SO IT'S REALLY DIFFICULT TO COMPARE APPLES TO APPLES WHEN YOU THROW THE TOTAL PROJECT COST INTO EVERYTHING.
SO WE'VE PULLED ALL THAT OUT AND JUST LOOKED AT HEART CONSTRUCTION COST IN THE BUILDING AND YOU CAN SEE HOW WE FOLLOWED IT AT $332 PER SQUARE FOOT.
THIS PROJECT IS IN THE MIDDLE OF THESE OTHER PROJECTS IN, ALL RIGHT, SO A LOT THAT WE'VE GONE THROUGH THERE, MIND LET YOU GO BACK TO THAT SLIDE.
SO, SO THE BUILDING ONLY COST NO CONTINGENCY, NO SITE WORK, NO SOFT COST.
IS THAT HOW YOU, THAT WHAT YOU'RE SAYING? YES MA'AM.
BRA, THE CONSTRUCTION CONTINGENCIES CHANGE ORDER CONTINGENCY AT 3% IS IN THAT JUST ON THE BUILDING PART OF THE COST.
SO IS IT IN, IS IT IN THE OTHER NUMBERS TOO? THEIR THEIR CONTINGENCY IN THAT NUMBER.
SO WHY IS IT, I'M JUST NOT FOLLOWING YOU, SO JUST HELP ME.
SO THE BUILDING CONSTRUCTION IS 45 MILLION.
WHY IS IT 34? WE'VE TAKEN THE SITE OUT OF THIS NUMBER.
SO ON OUR PROJECT WE HAVE ABOUT $11,000 IN 11 MILLION
IT'S STILL A CRAZY NUMBER, RIGHT? YEAH, YEAH, YEAH.
AND, AND IF YOU REMEMBER BOARD MEMBERS, WE, WE LOOKED AT A VARIETY OF OPTIONS.
WE LOOKED AT ANOTHER SITE, UH, WE LOOKED AT BUILDING ON THE CURRENT GES SITE, WE LOOKED AT A RENOVATION OF THE CURRENT GES SITE AND, UH, DID NOT MOVE FORWARD WITH THOSE OPTIONS.
SO, UM, WE EVEN LOOKED AT POSTPONING THE PROJECT.
THAT WAS A CONVERSATION THE BOARD HAD CHOSEN TO MOVE FORWARD WITH THE SEGMENT.
ANY OTHER QUESTIONS? PRIVY TO PREVIOUS CONVERSATIONS, BUT UM, THE EXISTING GES SITE, WHAT ARE THE PLANS THAT YEAH, SO CANON GIVE ANY VALUE LEVERAGE OUT? YEAH, SO DEPENDING ON WHAT HAPPENS WITH THIS CONSTRUCTION PROJECT, UH, WE'LL NEED TO MAKE A DECISION TOGETHER AS TO WHAT HAPPENS WITH THE CURRENT GES.
AND I THINK THAT'S BE A LOT OF COMPETITION FOR THAT SPACE CUZ THERE ARE A LOT OF THINGS ON THAT SPACE THAT ARE VERY, THAT ARE POSITIVE FOR OFFICES, FOR SCHOOLS OR COUNTY GOVERNMENT THAT'S CLOSE TO THIS COMPLEX.
SO MAKES SENSE THAT MAYBE, YOU KNOW, COUNTY GOVERNMENT MAYBE USES THAT SPACE.
UM, YOU KNOW, MR. UH, CARPENTER AND I TOWARD THAT SPACE ABOUT TWO WEEKS AGO AND WE LOOKED AT ONE SECTION OF THE FACILITY THAT MAYBE WE DON'T WANT TO KEEP, UH, IT WAS BUILT IN THE SEVENTIES, MAYBE NOT WITH GREAT CONSTRUCTION, MAYBE WE DON'T WANT TO KEEP THE BACK PART OF THAT BUILDING.
UM, I THINK LONG TERM WE NEED TO LOOK AT THE GREENFIELD ASSOCIATED WITH, WITH THAT GES PROPERTY, GREEN SPACE IN THIS COMMUNITY IS, IS VALUABLE.
SO IS THAT USED FOR PARKS AND REC? IS THAT USED FOR SCHOOL PURPOSES IN THE FUTURE? UH, I THINK THE COUNTY HAS HAD THE FORESIGHT TO LOOK AT MONEY IN ONE OF THE C I T YEARS FOR RENOVATION OF THAT BUILDING AND 2 MILLION HAS BEEN PLANNED IN FUTURE YEARS FOR THAT.
SO CERTAINLY ON ROUTE SIX AS PART OF OUR COMMUNITY, WE DON'T WANT TO MAKE THAT NICE TO WORK.
WE WANT TO MAKE SURE IT'S SPACE FOR SOME SORT OF, YES SIR.
I'VE TALKED ABOUT IT BEFORE AND THE ONE THING COMING INTO THIS MEETING THAT I'VE HAD ON MY MIND AND, AND I'M REALLY IMPRESSED WITH THE EFFORTS IN THE PROCESS AND I KNOW THIS GROUP WILL, WILL GET, WILL LAND THIS PLANE AS YOU SAY, IN A GOOD PLACE, UM, AND GET THIS DONE.
BUT I'VE TALKED TO YOU BEFORE ABOUT IT AND I JUST HAVE STRUGGLED AND I'M NOT CLEAR WHY THE SCHOOL BOARD'S INSISTING ON THAT AUGUST 20, 24 OPENING DAY.
BUT THESE COMPARISONS RIGHT HERE KIND OF MAKE ME THINK MAYBE, YOU KNOW, LET THAT ISSUE GO.
UM, BUT CERTAINLY WE KNOW IN THIS ENVIRONMENT THAT IF A CONTRACTOR IS FACING PENALTIES FOR NOT COMPLETING ON TIME AND, AND, AND THE SUPPLY CHAIN ISSUES, THE WORKFORCE ISSUES, THAT IF THEY'RE ON A TIGHT TIMEFRAME, THEY'RE GOING TO RUN THE BID UP.
I MEAN, THEY HAVE TO TO GET IT TO
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WORK.SO I GUESS THE QUESTION I WOULD'VE DO, WE KNOW IF IS FALL CREEK MIDDLE SCHOOL AND IOWA WHITE AND AUGUSTA AND GANDY ARE ALL HAVE THAT SAME TYPE TIME FRAME.
UM, SO I DON'T KNOW WHETHER WE HAVE A CONSTRUCTION TIMELINE THERE.
I THINK THAT WOULD BE A REALLY HELPFUL THING FOR US OVERALL.
AND I'M SORRY THAT WE DON'T HAVE IT RIGHT THERE.
UM, BUT I, I THINK IT WOULD BE GREAT TO KNOW AND, AND PERHAPS JIM COULD HELP US, UM, YOU KNOW, FROM GROUNDBREAKING, HOW LONG DOES IT TAKE TO CONSTRUCT THE SCHOOL SO THAT WE KNOW WHETHER WE ARE PUSHING THE ENVELOPE OR NOT.
I THINK YOUR POINT IS VALID, BUT, AND I'LL TELL YOU THE REASON WHY WE'VE HAD THOSE DISCUSSIONS IS BECAUSE THE COSTS ARE RISING AND THEY'RE RISING FASTER THAN ANY SAVINGS WE CAN GET BY WAITING.
YOU KNOW, SO THAT'S, THAT'S SORT OF THE REASON WHY WE'RE SAYING NOW IS THE TIME.
IT'S, IT'S NOT GONNA GET BETTER FROM A COST PER SQUARE FOOT STANDPOINT.
BUT WHAT'S OUR TIMELINE THERE? JUST SO WE UNDERSTAND, I MEAN, FOR THIS FROM THE GROUNDBREAKING TO OPENING OF A SCHOOL, WHAT IS THAT TIME PERIOD? IS THAT A A YEAR PROCESS, YEAR AND A HALF PROCESS? IT OF COURSE VARIES DEPENDING ON SIDE OF THE SCHOOL.
SO, YOU KNOW, HIGH SCHOOL IS GONNA TAKE LONGER IN ELEMENTARY SCHOOL.
THE THE RULES ARE GENERALLY FOR AN ELEMENTARY SCHOOL, UM, 16 TO 18 MONTHS, MIDDLE SCHOOL MAYBE 20 MONTHS, UM, HIGH SCHOOL, 24 TO 30 MONTHS.
SO THOSE ARE, THOSE ARE GENERAL TIMEFRAMES THAT YOU USE AND THOSE ARE RULES THAT WERE ESTABLISHED, I WOULD SAY KIND OF INDUSTRY RULES ESTABLISHED BE MORE THE PANDEMIC.
AND NOW KIND OF A LOT OF THE WAY WE THOUGHT ABOUT HOW LONG IT TAKES IS KINDA SOMEONE WITH CHAIN STILL EXISTING.
SO THERE, THERE WAS, THERE THERE'S BEEN CONCERN ABOUT TIMEFRAME, UM, KIND OF ALL THROUGH THIS PROCESS.
SO ONE OF THE THINGS THAT, THAT WE DID, UM, SINCE WE HAD THE BENEFIT OF HAVING SAY PRE-QUALIFIED CONTRACTORS ON BOARD, UM, AND IT'S EITHER SEPTEMBER OR OCTOBER, WE ACTUALLY WENT TO THEM, SAID, WHAT DO YOU THINK ABOUT THE TIMEFRAME? AND AND SHOCKY KIND OF COINCIDENTALLY ENOUGH WAS THE ONE THAT PROVIDED THE MOST, SEEMED TO BE MOST ENGAGED IN THAT QUESTION.
THEY ACTUALLY, UM, UH, WE SCHEDULED CONFERENCE WITH SHOCKY TO TALK ABOUT THE TIMEFRAME.
THEY, THEY SAID THEY WERE COMFORTABLE WITH IT.
THEY SAID THERE WAS NOT A LOT OF ROOM FOR ERROR.
UM, CAUSE THE, THE SCHEDULE WAS ALWAYS BASED ON STARTING IN DECEMBER.
AND UM, THEY SAID THERE WASN'T A LOT OF AIR FOR DELAYS IN THE BEGINNING OF THE PROJECT.
SO IF WE PUSH JANUARY, FEBRUARY, MARCH, THEY, THEY WOULD BE A LOT LESS COMFORTABLE.
BUT IF WE COULD KEEP ON OUR TIMELINE AS WE HAVE RIGHT NOW, THEY SAID THEY'RE COMFORTABLE WITH THE TIME THAT'S GIVEN TO THEM.
UM, THE OTHER QUICK POINT I WOULD MAKE IS GETTING THEM MORE TIME DOESN'T NECESSARILY MEAN CHEAPER IF YOU GIVE THEM MORE TIME THAN THEY NEED.
THEY, THEY MAY JUST PUT ADDITIONAL, THEY'RE GONNA HAVE TO, THEY, THEY MAY SLOW DOWN, THEY MAY PUT ADDITIONAL OVERHEAD OUT THERE SO THEIR SUPERINTENDENT MANAGERS TRAILERS OUT THERE FOR A LONGER PERIOD.
SO THAT IN ITSELF WILL DRIVE UP COSTS.
UM, BUT IT, IT'S, IT IS A GOOD QUESTION.
UM, I I THINK IT'D BE FAIR TO GO BACK TO SHOCK, SAY, JUST KINDA REVISIT AND SAY, IS THIS, IS THIS ENOUGH, UM, TIME FOR YOU TO BUILD THE PROJECT? UM, JIM, WE HAD A CONVERSATION LAST WEEK WITH THEM.
THEY'VE ALREADY CREATED THE GANTT CHARTS.
YOU KNOW, THEY, THEY, THEY HAVE, UM, I THINK BILL AND, UM, SOME OF THE REPRESENTATIVES FROM SHOCKY TALKED ABOUT HOW THE BUILDING WAS DESIGNED IN SUCH A WAY THAT'S EASY TO BRING THE TRADES IN, YOU KNOW, UM, IN A TIMEFRAME.
AND SO SHOCKY VOLUNTEER THAT, THAT THEY'VE ALREADY CREATED THE GANTT CHARTS.
THEY, THEY KNOW WHEN THEY'RE GONNA BE BRINGING THEIR TRADES IN, UM, TO GET THIS PROJECT DONE.
SO, UM, I I I, I FELT VERY COMFORTED BY THAT, THAT THAT CONVERSA THAT VERY CASUAL CONVERSATION WITH ALL OF US IN THE ROOM, THAT, YOU KNOW, THAT THEY, THEY WERE READY, READY TO GO.
AND I THINK AN IMPORTANT POINT TOO, AND I GLOSSED OVER THIS UNFORTUNATELY, IS THAT THE BIDS THAT WE RECEIVED ON NOVEMBER THE 17TH ARE EFFECTIVE FOR 60 DAYS.
AND SO THERE IS SOME TIMING ASSOCIATED WITH ANY SORT OF FUTURE DECISIONS THAT WE HAVE MOVING FORWARD.
AND SO, UH, AFTER THOSE 60 DAYS, THOSE PRICES ARE ALL VOID AND HAVE TO DO WELL.
WE JUST HEARD FROM THE REPRESENTATIVE THAT EVERYBODY'S THINKING OF A DECEMBER START DATE AND WOW ON NOVEMBER 9TH.
AND SO WE NEED TO CLOSE THE GAP AND WE NEED TO MAKE IT HAPPEN QUICKLY.
IS THERE A PENALTY CLAUSE IN THE CONTRACT IF THE IS NOT, YEAH, THERE, THERE WOULD BE LIQUIDATED DAMAGES AND, AND THE
[00:30:01]
CONTRACT THAT WE WOULD SIGN WITH THEM.I THINK BASED ON MR. RICE'S COMMENTS, WE HAVE SUBSTANTIAL COMPLETION IN JUNE OF 2024 WITH THE SUMMER BEING MOVED IN.
SO IT WOULD REALLY BE, YOU KNOW, FROM DECEMBER TO JUNE THAT WE WOULD HAVE CONSTRUCTION PHASE OF THE PROJECT.
IS THERE ANY, UH, SUPPLY CHAIN CONCERNS IN ANY ASPECT OF THE BUILDING THAT MAY AFFECT THAT KIND OF A KIND OF PUSHED UP TIME FRAME FOR CONSTRUCTION AND TURNOVER? I KNOW THIS REALLY WELL,
THE LONG, LONG POLE IN THE TENT IS H V A C.
YOU'RE TALKING 40 WEEK LEAD TIME ON LARGE CUSTOM UNITS LIKE THIS.
UH, SO THAT'S, YOU CAN GET THAT WITHIN THE TIMEFRAME THAT WE NEED.
YOU CAN PRE-WIRE DO ALL KINDS OF THINGS, SET UP DUCT WORK, THAT SORT OF STUFF WITHOUT THE UNITS THEMSELVES.
UM, YOU KNOW, THERE IS, UH, SOME SUPPLY CHAIN THOUGHTS, YOU KNOW, OBVIOUSLY HAPPENING ECONOMICALLY RIGHT NOW.
UM, THERE, THERE, I JUST WANT TO ADMIT THIS, UM, OBVIOUSLY, YOU KNOW, ANYTHING TO AND FROM CHINA HAS ITS SORT OF VOLATILITY.
UM, BUT WE'VE BEEN VERY SUCCESSFUL IN GETTING UNITS BUILT IN NORTH AMERICA.
UH, CANADA ACTUALLY DOES A WHOLE LOT OF MANUFACTURING H VC UNIT STUFF.
AND SO THERE'S, THERE IS SOME THINGS THAT YOU COULD CIRCUMNAVIGATE THAT SORT OF RISK, UH, OF THAT'S, YOU KNOW, SORT OF OUT OF MANY WAYS OUT OF YOUR CONTROL OF WITH CHINA.
THE OTHER THING THAT'S POPPED UP WITHIN THE LAST COUPLE OF DAYS, AND I JUST WANT TO ADMIT THAT IT COULD CAUSE SOME PROBLEMS SOMEWHERE, IS THE THOUGHT THAT THERE MAY BE SOME FORM OF RAIL STRIKE, WHICH THEN WOULD CREATE BOTTLENECKS IN OTHER FORMS OF TRANSPORTATION TO TRANSPORT SET UNITS TO YOU.
UM, BUT YOU KNOW, WITH 40 WEEKS IN A SCHEDULE THAT'S, THAT'S GONNA BE, YOU KNOW, TWICE THAT LONG IS ISN'T REALLY NECESSARILY A CONCERNING THOUGHT FROM A SUPPLY CHAIN ISSUE.
I THINK SHOULD WE MOVE FORWARD WITH THE DIRECT PURCHASE PROGRAM, WE WOULD NEED BE VERY CAREFUL AND STRATEGIC ON THIS IN THOSE ITEMS THAT THE SCHOOL DIVISION WOULD PURCHASE WOULD HAVE VERY LITTLE LAG TIME.
YOU KNOW, WE, WE PROBABLY DON'T WANT TO DIRECT PURCHASE HBA CS JUST BECAUSE WE DON'T WANNA BE ON FOR THAT, BUT SOMETHING THAT IS READILY AVAILABLE WE CAN GET IN A WAREHOUSE LIKE THAT MIGHT BE SOMETHING WE DO THE DIRECT PURCHASE PROGRAM, SO WE DON'T HOLD THE SCHEDULE.
SO BASED ON YOUR TIME FRAMES AND SLIDE 12, THE SOLUTION SLIDE.
SO I WANT, I WANT TO TRANSITION INTO 13, TRANSITION INTO WHAT THIS MAY LOOK LIKE FROM A FINANCIAL PERSPECTIVE.
BECAUSE ULTIMATELY THIS IS A NUMBER THAT NONE OF US WERE EXPECT.
WE WERE, WE'VE BEEN MONITORING THIS, ALL OF US HAVE BEEN, THIS HAS BEEN AN IMPORTANT PROJECT AS WE KNOW.
UM, BUT NOW WE KNOW RIGHT NOW WE KNOW WE HAVE THE BIDS GOOD FOR 60 DAYS, WE KNOW THE TOTAL PROJECT, COSTLY, NOW WE KNOW.
SO WHERE DO WE GO FROM HERE? THAT'S, THAT'S THE MAJOR QUESTION.
SO JIM, BEFORE YOU LEAVE THAT SLIDE, DID YOU, THE OTHER THING TO SAY, COULD YOU, I THINK WE ARE ALL SHOCKED WITH THE NUMBER, BUT IN SOME WAYS WE'RE NOT THAT SHOCKED.
SO I WONDER IF THESE OTHER FOLKS HAVE, WE SEE THEIR COSTS AND ALL, BUT I WONDER WHAT THEY WERE BUDGETING WHEN THEY WERE PLAYING, YOU KNOW, A YEAR AGO.
YEAH, THESE, THESE ARE ROUGH NUMBERS.
IT'S MY UNDERSTANDING THAT THIS IS ABOUT 32, 30 3% MORE THAN WHAT HANDOVER WAS BUDGETING.
UH, AND THAT'S, I THINK THAT'S WHAT WE'RE SEEING MARKET.
JIM SHAP HAS SAID BACK THERE THAT YOU'RE SEEING LOW 30% INCREASE BUDGET NUMBERS WHEN IT COMES TO, AND SO WE, WE DO SOME WORK FOR TOO.
AND UM, THEY HAD ADJUSTED THEIR BUDGET NUMBERS ON COST.
SO RYAN IS ON THAT CHESTERFIELD PROJECT, RIGHT, RYAN? WELL, OUR TEAM IS, UM, CHESTERFIELD, THE FALLEN CREEK SCHOOL HAS THE SAME CODE IN TIME AS, AND IF I'M NOT MISTAKEN, THAT THAT IS A, UM, IT'S A PROTOTYPE SCHOOL.
SO THE CONTRACTOR'S FAMILIAR WITH THE DESIGN.
IT'S PRODUCT DESIGN THAT CHEST FROM, SO THE CONTRACTOR IS VERY FAMILIAR WITH THAT DESIGN.
SO YOU KNOW, THE $238 SQUARE FEET, THEY'RE ABLE TO DO THAT AT THE SAME TIME THAT WE'RE ABLE TO, AND THAT SITE IS VERY DIFFERENT FROM THE SITE FOR FUTURE.
AND IT'S AN EXISTING SITE HAS ALL SITE UTILITIES ALREADY THERE AND IT'S BASICALLY A FLAT SITE.
UM, I WAS TRYING TO FIGURE OUT, UM, WHAT WAS I, WELL, I STILL, I'M STILL DOVETAILING AFTER MR. LUMPKINS ON THE
[00:35:01]
TIMEFRAME MM-HMM.UM, SO WE'RE REALLY PUSHING IT SO HARD.
WHY IS THAT? YOU KNOW, AND WE'VE DISCUSSED THIS BEFORE AND I STILL NEVER REALLY UNDERSTOOD WHY THIS IS SUCH A CRITICAL THING TO OPEN IN AUGUST OF 20.
WHY IS THAT? I THINK THERE ARE SCHOOL DIVISIONS THAT HAVE DONE MID-YEAR OPENINGS.
IT CAN BE DONE, IT'S NOT PROBABLY THE BEST WAY TO DO IT CUZ OF THE TRANSITION MIDYEAR, BUT IT COULD BE DONE.
SO A DELAY OF SIX MONTHS WOULD, YOU KNOW, OPEN US IN JANUARY OF 2025.
UH, BUT AGAIN, YOU KNOW, THAT SIX MONTH DELAY, HOW'S THAT GOING TO IMPACT PRICES? UM, KNOW, I THINK THERE, THERE IS A SWEET SPOT IN THAT CONSTRUCTION TIME.
YOU EXTEND IT TOO LONG THEN THAT'S WHEN YOU HAVE THE OTHER INCREASED OVERHEAD, INCREASED COST.
THESE CONTRACTORS HAVE SAID, YEAH, YOUR TIMELINE IS DOABLE.
UM, UH, DELAYING IT TILL AUGUST OF 2025, WHAT WOULD THAT IMPACT YOU ON COSTS? DON'T WE ALL WISH WE HAD CRYSTAL BALL? BUT, UM, SO THAT, THAT'S SOME OF THE, THE, THE THINKING COME IN.
I THINK, UM, THAT TIMELINE IS VERY CRITICAL AS WELL.
WE'VE DONE THE MAJOR MAINTENANCE PLAN AND WE KNOW WHAT NEEDS TO BE DONE TO ELEMENTARY SCHOOL TO KEEP IT AT THE PLACE.
FIRST OF ALL, I HAVE TO SAY OUR FACILITIES AND OUR CUSTODIAL KEEP THAT SCHOOL AS SHINY AND OPERABLE AS POSSIBLE FOR THE AGE AND LIMITATIONS THEY HAVE THERE.
THERE'S, THERE'S NOTHING THAT THEY HAVEN'T DONE TO KEEP IT SAFE AND, UM, A GOOD SPACE FOR ONE AS IT CAN BE.
BUT I BELIEVE THAT THERE'S SOME MAJOR PROJECTS THAT HAVE BEEN WITHHELD, UM, AT THAT SCHOOL.
AND SO WHERE YOU PUT YOUR MONEY, CAN YOU PUT YOUR MONEY INTO A BUILDING THAT YOU KNOW YOU'RE GOING TO ABANDON OR DO YOU KEEP MOVING FORWARD AND, UM, WITH YOUR PLAN AND DO THAT FIELD? THERE'S A LOT OF COST SAVINGS THERE THAT WE HAVEN'T REALLY BROUGHT THIS DISCUSS, WHICH WOULD BE NEEDED ESPECIALLY IN ANOTHER YEAR, GIVEN ANOTHER YEAR AND ANOTHER YEAR.
AND HOW MUCH, WHAT WOULD BE THE MORALE TO FACULTY TO HAVE THIS VISION FOR AUGUST, 2024 AND, AND A DELAY? I MEAN, THAT'S A REAL COST EVEN THOUGH IT IS SOFT, UH, IN A PLAIN LIKE THIS, I THINK THAT WOULD BE SIGNIFICANT.
MRS. MCKAY IS OUR PRINCIPAL AT ULA ELEMENTARY SCHOOL AND SHE HAS HER FINGER ON THE PULSE OF HOW HER FACULTY IS MONITORING THIS.
YOU CAN BET THAT THEY'RE A ONE, YOU KNOW, WATCH WHAT HAPPENS TODAY AND WHAT HAPPENS IN THE FUTURE SIMPLY BECAUSE IT IS SOMETHING THAT THEY HAVE A SIGNIFICANTLY INVESTED INTEREST IN RIGHT NOW.
AND ONE OTHER THING, I MEAN, IT'S THE TRUTH IS TO ANSWER YOUR QUESTION JUST LAST, BUT THERE'S A NUMBER OF REASONS WHY WE'RE, WE'RE THINKING SOONER THAN LATER.
UM, WE RECOGNIZE THAT THE COUNTY IS, IS CARRYING INTEREST ON, ON THE DOLLARS THAT, THAT WE'VE GOT HERE TOO.
I MEAN, THAT'S, THAT'S SOMETHING ELSE.
RAY REFERENCED IT A CONVERSATION SINCE 2007, EIGHT, THERE ARE DRAWINGS OF POSSIBILITIES SINCE 2007.
AT WHAT POINT IS THE RIGHT TIME? DO WE WAIT ANOTHER YEAR OR ANOTHER FIVE YEARS, OR SIX MONTHS SINCE 2007? THAT'S HARD TO EXPLAIN IN.
SO LET'S TALK ABOUT, UH, ONE OPTION.
UH, THIS IS JUST ONE OPTION, UH, THAT WE, WE FLUSHED OUT AS A STAFF HAVE SHARED INITIALLY TO THE SCHOOL BOARD.
SO GOING BACK IN TIME A LITTLE BIT THIS TIME LAST YEAR, WE WERE RIDING HIGH BECAUSE 85% OF OUR VOTERS PUT THEIR FULL FAITH BEHIND 96 MILLION WORTH OF PROJECTS FOR OUR COUNTY, AND 60 MILLION OF THOSE PROJECTS WERE FOR SCHOOL PROJECTS.
AND SO, UM, CERTAINLY THANK THE VOTERS AGAIN PUBLICLY FOR, FOR THEIR SUPPORT OF THAT.
IT WAS A SIGNIFICANT APPROVAL.
AND SO, UH, OUT OF THAT $60 MILLION, THIS IS HOW IT'S CURRENTLY BEEN DISTRIBUTED, UH, 36.5 MILLION FOR THE NEW
AND THAT LEFT 19.2 MILLION FOR OTHER BOND RELATED PROJECTS.
AND THERE WERE THREE PROJECTS LISTED IN QUESTION RELATED SCHOOLS IN GES PARKING LOT AND THEN HIGH SCHOOL PROJECTS.
SO THAT'S, THAT'S HOW THE 60 MILLION HAS BEEN SEPARATED AT THIS POINT IN TIME.
SO THE, THE SUPERVISORS BACK IN FEBRUARY AUTHORIZED THE BOND SALE AND CERTAINLY A LOT OF POSITIVES CAME OUT OF THAT.
AND IT WAS A $50 MILLION BOND SALE OVERALL, $41.8 MILLION WORTH FOR SCHOOL PROJECTS, THE REST FOR FIRE STATION.
AND SO THIS IS HOW THAT 41.8 MILLION
[00:40:02]
IS SEPARATED AT THIS POINT IN TIME.YOU HAVE ALREADY AUTHORIZED AND APPROPRIATED 36.5 MILLION FOR THE NEW GES ALREADY AUTHORIZED AND APPROPRIATED THE 4.2 FOR THE PARKING LOT.
AND SO THE REMAINDER OF THAT IS 1,000,030 $3,000 THAT WAS PART OF THAT INITIAL BOND SALE.
THAT HAS NOT YET BEEN APPROPRIATE.
SO THAT'S JUST, THAT'S JUST THERE AT THIS POINT IN TIME, BUT WAS A PART OF THAT INITIAL BOND SALE.
SO THAT WILL BE AN IMPORTANT NUMBER GOING FORWARD.
SO WHEN YOU DO GET SPECIFICALLY RELATED, SORRY, I JUST SAID I'M SORRY, WHERE IS THE 36.5 SITTING CURRENTLY THAT'S BEEN APPROPRIATE TO THE SCHOOL DIVISION? I GUESS IT'S SITTING IN OUR ACCOUNTS.
IS THAT RIGHT, DAVID? YES, IT'S, IT'S SITTING AS CASH THAT WE'RE EARNING INTEREST ON, BUT IT'S NOT, IT'S NOT.
SO IT'S, IT'S NOT, WE, WE CAN'T SPEND IT UNTIL THE BOARD OF SUPERVISORS APPROPRIATES IT TO US.
IT'S, IT'S, WE, IT'S A, IT'S AN OVER BUDGET RECEIPT OF FUNDS.
WE, WE HAVE AUTHORITY TO SPEND THAT AND WE'VE SPENT ROUGHLY $3 MILLION IN SOME OF THOSE SOFT COSTS ALREADY.
SO THAT'S HOW WE GET TO THE 41.8.
SO, UH, SPECIFICALLY, UH, LOOKING AT ALL OF THE PROJECTS RELATED TO THE BOND, BUT SPECIFICALLY THE NEW GES UH, LOOKING AT SOME, SOME FUNDING STREAMS FOR THIS PROJECT, PARTICULAR TALKED ABOUT THE 36.5.
UM, THE SUPERVISORS RECENTLY APPROVED ITS TRANSFER FROM THE PARKING LOT PROJECT TO THIS PROJECT THAT WAS BALANCED THAT WE HAVE IN THAT PROJECT LEFT OVER $550,000 FOR THAT.
UH, THE SUPERVISORS HAD THE FORESIGHT AND THE VISION MANY, MANY YEARS AGO, SEVERAL YEARS AGO TO START TO PUT CASH TOWARDS THIS PROJECT.
$500,000 PER YEAR DATING BACK SEVERAL YEARS.
AND SO THAT IS CASH YOU HAVE PUT TOWARDS THIS PROJECT.
UH, YOU INCLUDE A LITTLE BIT OF 2021 TURN BACK, THAT'S $2.50 AND CASH FOR THE PROJECT.
UM, AND THEN SOME ADDITIONAL PROPERS AND FY 22 PRO TURN BACK THAT'S ALREADY BEEN APPROPRIATED TO SEVEN $50,000.
SO THAT IS MONEY THAT YOU ALL HAVE ALREADY AUTHORIZED AND GIVEN US, UH, THE OPPORTUNITY TO SPEND TOWARDS THIS PROJECT.
NOW LAST YEAR IN APRIL, WE HAD A DISCUSSION IN THIS ROOM.
THAT WAS THE MOST RECENT TIME THAT WE, WE TALKED ABOUT THIS PROJECT AND FOLLOWING THAT CONVERSATION, THERE WAS SOME DISCUSSIONS WITH COUNTY STAFF RELATED TO SOME OTHER POTENTIAL FUNDING STREAMS. AND SO PART OF THAT CONVERSATION INCLUDED THAT MILLION 33 THAT WAS PART OF THE INITIAL BOND SALE THAT HAS NOT YET BEEN APPROPRIATED.
SO WE TALKED ABOUT THAT WITH STAFF.
UH, WE ALSO TALKED A LITTLE BIT IN THIS SETTING AND SOME MORE WITH STAFF ABOUT THE BOND PREMIUM.
WHEN YOU SOLD THOSE, THOSE $50 MILLION WORTH OF BONDS, THANKFULLY AS A RESULT OF YOUR STRONG LEADERSHIP, THERE WAS A PREMIUM ASSOCIATED WITH THOSE BONDS.
UH, SLIGHTLY LESS THAN 10 MILLION FOR THAT BOND PREMIUM OVERALL.
SO THE CONVERSATION WITH STAFF WAS $5 MILLION POTENTIALLY OF THAT BOND PREMIUM YOU BEING USED FOR THIS PROJECT.
AND THEN AS WE DISCUSSED A LITTLE BIT, THERE IS SOME INTEREST ASSOCIATED WITH THIS AND WE RUN A CONSERVATIVE ESTIMATE BASED ON LOW, UH, INTEREST RATES AND, AND DRAW DOWN TIMELINE.
AND WE'RE ESTIMATING THAT THERE'S GOING TO BE A LITTLE OVER A MILLION DOLLARS IN INTEREST EARNED FROM THIS THAT POTENTIALLY WE COULD USE FOR THIS PROJECT.
SO, UM, AGAIN, THESE HAVE NOT BEEN APPROPRIATED BY THE SUPERVISORS, BUT THEY ARE POTENTIAL FUNDING STREAMS. SO IF YOU ADD UP WHAT IS APPROPRIATED AND WHAT POTENTIALLY COULD BE APPROPRIATED, UM, THE POTENTIAL FUNDING FOR THIS PROJECT IS $47.6 MILLION.
I'LL PAUSE THERE FOR A SECOND.
ANY QUESTIONS? SO YOU ARE EARNING INTEREST ON THE BOND FOR WHICH THE COUNTY IS PAYING INTEREST.
THE, THE COUNTY IS EARNING INTEREST FOR THE BOND.
UM, BUT ULTIMATELY THERE'S GONNA BE A DRAW DOWN OF THAT AND EARNING INTEREST AND WE, WE ESTIMATED OVER THE PROJECT LIFE THAT, AND THIS IS, THIS IS PROBABLY A VERY LOW NUMBER QUITE HONESTLY, WE WOULDN'T BE CONSERVATIVE, BUT OVER THAT TIME THE COUNTIES WANT TO EARN 1.25 MILLION IN INTEREST ON THE 41.8 MILLION THAT'S BEEN DESIGNATED FOR THE SCHOOLS.
YOU TALKED TO THE TREASURER ABOUT THAT.
WE HAVEN'T RUN OUR NUMBERS PAST THE TREASURER, BUT WE'RE HAPPY TO DO SO.
STAFF'S LOOKED AT 'EM AND WE'RE, WE'RE COMFORTABLE WITH THOSE NUMBERS.
[00:45:02]
AGAIN, CONSERVATIVE NUMBER WE EXPECT IT'S PROBABLY A LITTLE MORE, BUT WE DIDN'T WANT OVER THAT POTENTIAL REGULAT.WE, BASED ON WHAT WE KNOW, THE TREASURER CAN PROPERLY IMPROVELY INVEST.
YES, THOSE, SO CARLA CAN RESPOND TO THIS.
THEY, UM, THE FINANCE DEPARTMENT IN, UM, FEBRUARY PRUDENTLY PUT IT IN A SNAP INVESTMENT.
AND RIGHT NOW, UM, THE SCHOOL'S 41.8 MILLION IS EARNING OVER A HUNDRED MILLION, A HUNDRED THOUSAND DOLLARS IN INTEREST PER MONTH.
SO WE'VE ALREADY PROBABLY WITH NOVEMBER WE'LL PROBABLY HAVE ABOUT $550,000 ALREADY EARNED ON OUR 41.8, WHICH, WHICH WE'RE STEADILY DRAWING DOWN ON.
SO, UM, YOU KNOW, WE'VE ALREADY HAD ALMOST $5 MILLION DRAW DOWN ON THAT, BUT WE'RE STILL EARNING OVER A HUNDRED THOUSAND DOLLARS A MONTH.
AND SO THAT'S INCLUDED IN THE MILLION TWO 50 YES.
BUT, BUT AGAIN, IT'S LIKE THE 1 MILLION OF 30, 33,000, WE CAN'T, WE CAN'T USE THAT ANY OF OUR BOND INTEREST EARNINGS UNTIL THE BOARD OF SUPERVISORS GIVES US AUTHORITY TO, UNTIL THEY APPROPRIATE IT TO US, WE'VE GOT IT SITTING THERE ADDING TO OUR CASH, BUT WE CAN'T SPEND IT.
WELL, IT'S JUST FOR CLARIFICATION, YOU SAID ADDING TO YOUR, IT'S REALLY NEVER PART OF THE FORMULA THAT INTEREST IS COUNTING MONEY UNTIL IT'S, UNTIL IT'S DECIDED THAT THIS GOES TO SCHOOLS VERSUS SOMETHING ELSE, RIGHT? CORRECT.
BUT YOUR LOGIC IS THAT YOU'RE LOOKING AT THE MONIES THAT ARE APPROPRIATED FOR THIS PROJECT THAT ARE BEING INVESTED IS DRIVING THAT CALCULATION.
ONLY THE 41.8 MILLION IS GOING INTO THAT, THAT INTEREST EARNINGS.
AND, AND THAT BOND INTEREST 1.2, I THINK YOU ANSWERED THIS ALREADY TO SUSAN'S QUESTION, BUT THAT INCLUDES THE 500 THAT YOU EARNED TO DATE.
WHERE WE THINK WE BE MAXED OUT AND ULTIMATELY STILL THINK THAT'S A VERY CONSERVATIVE NUMBER.
ALL RIGHT, SO YOU ADD ALL THAT UP, WHAT HAS BEEN APPROPRIATED AND WHAT HAS BEEN CONSIDERED, YOU'RE AT 47.6 MILLION AS WE KNOW THAT'S NOT, NOT THE NUMBER THAT, THAT WE NEED TO GET TO.
SO WHAT'S NEXT? WHAT ELSE? HOW ELSE DO WE GET THERE POTENTIALLY? AND SO, UH, THERE MAY BE OTHER FUNDING FROM ANY SORT OF END OF THE YEAR TURNBACK THAT WE HAVE AND WE'VE HISTORICALLY BEEN TURNING BACK 150 OR $300,000.
SO THAT'S CERTAINLY NOT GONNA CLOSE THE GAP, BUT THAT COULD AT LEAST, UH, HELP TOWARDS THIS PROJECT OR FUSION PROJECTS, ANY ADDITIONAL APPROPRIATION FROM THE SUPERVISORS AND ANY USE OF THE REMAINING BOND.
SO, UM, IF YOU, IF YOU TAKE OUT THAT MILLION 33 THAT WE DISCUSSED, UH, 41.8, SO YOU TAKE 60 MILLION, YOU SUBTRACT 41.8, THAT LEAVES 18.2 LEFT.
SO IS THERE AN OPPORTUNITY TO USE ANY REMAINDER OF THAT 18.2 TO CLOSE THE GAP FOR THE GLAND ELEMENTARY SCHOOL PROJECT? AND THAT'S WHERE I WANTED TO, UM, TALK ABOUT THAT IN THE NEXT FEW SLIDES.
ULTIMATELY, THAT WOULD RESULT IN A ADJUSTMENT TO OUR SCHOOL DIVISION'S CAPITAL IMPROVEMENT PLAN.
IT WOULD RESULT IN THE ABANDONMENT OR POTENTIAL DELAY OF SOME FUTURE PROJECTS.
SO EARLIER THIS MONTH, WE PRESENTED TO THE SCHOOL BOARD AND UPDATED CAPITAL IMPROVEMENT PLAN FOR THEIR REVIEW.
AND SO WE UPDATED ALL OF THE PRICING ASSOCIATED WITH OUR C I P BASED ON WHAT WE HAD JUST EXPERIENCED, THE 30% INCREASE AND WE INFLATED FUTURE YEARS AT 5%.
UH, SO HERE'S WHERE WE ARE BASED ON WHERE THOSE PROJECTS THAT WERE INITIALLY DISCUSSED AS THE PART OF THE BOND.
THIS IS WHERE WE ARE IN PRICING AT THIS POINT IN TIME.
UH, AND ULTIMATELY I'LL SHARE WITH YOU JUST ANECDOTALLY THAT IT'S ABOUT WE'VE DOUBLED THE PRICE OF THESE PROJECTS AS A RESULT OF WHAT WE'VE GONE THROUGH INFLATION, BUT THIS IS WHERE WE ARE RIGHT NOW.
UM, SO ULTIMATELY, YOU KNOW, ALL THESE PROJECTS WERE, WERE UNDER CONSIDERATION.
SO CERTAINLY NOT GONNA BE ABLE TO FUND ALL THOSE PROJECTS WITH THE REMAINING 18.2 THAT WE HAVE PLUS THE DIFFERENTIAL IN THE SCHOOL.
SO WHAT IF, WHAT IF HYPOTHETICALLY, UM, PROJECT TOTAL IS 56 MILLION AND WHAT IF ALL OF THOSE FUNDS PREVIOUSLY DISCUSSED OR APPROPRIATED AND YOU GET TO THAT 50 47 MILLION FIGURE, WE'RE STILL LOOKING AT A $9 MILLION DELTA.
WHAT IF WE USED 8.4 OF THE REMAINING 18.2 IN BOND PROCEEDS, CLOSE THE GAP IN THE NEW GUC ELEMENTARY SCHOOL, ABANDON THESE PROJECTS KICKING FARTHER DOWN THE ROAD, MAKE DECISIONS ON WHAT WE WANT TO DO WITH THESE PROJECTS HERE? UH, I WOULD SUBMIT THAT ONE LIKELY SOLUTION IS THE WRESTLING ROOM WOULD BE TRANSFERRED TO THE OLD GUC ELEMENTARY SCHOOL AND WE COULD WRESTLE IN THE CAFETERIA.
SO WE NOT NECESSARILY EVEN NEED A WRESTLING ROOM MOVING FORWARD.
SO WE'D HAVE TO MAKE SOME STRONG DECISIONS
[00:50:01]
ABOUT WHAT WE WANT TO DO WITH THESE.THE AUXILIARY GYM, I WOULD SAY WE'RE BUILDING THE NEW GES WITH AN AUXILIARY GYM, SO MAYBE WE CAN ABANDON THAT PROJECT.
UM, AND THEN, YOU KNOW, WE, WE THINK DIFFERENTLY MAYBE ABOUT THIS PROJECT HERE.
SO ULTIMATELY CLOSING THE GAP IN THE NEW GES THAT WOULD ALLOW $500,000 FOR INTERIOR RENOVATIONS TO THE HIGH SCHOOL SPECIFICALLY FOR OUR FINE ARTS PROGRAMS. AND THAT WOULD LEAD 9.2 MILLION FOR A FUTURE CTE RENOVATION THAT WE COULD USE BOND PROCEEDS FOR.
SO ULTIMATELY THAT WOULD BE A WAY FOR US TO USE THE REMAINING BOND PROCEEDS TO ACCOMPLISH THE NEW GES PROJECT AS WELL AS SOME OF THOSE OTHER PROJECTS THAT WE HAVE DISCUSSED WITH THAT CLEARS A MAY BE MISLABELED.
WE DON'T HAVE 18 PROCEEDS RIGHT NOW WE HAVE 18 MILLION REMAINING REFERENDUM.
CONTEMPLATE A GREAT TO DO RIGHT NOW.
RIGHT? HOW MUCH, WHAT ARE OURS AT THIS POINT? WHAT WE DO 15.
WE DID 15 AND THAT'S IN THAT PREVIOUS SLIDE.
WE'VE NOW TRANSITIONED FROM CASH ON HAND EARNING INTEREST TO AUTHORIZATION, AND THAT'S A WHOLE DIFFERENT LEADERSHIP OF YEARS.
I APPRECIATE THAT CLARIFICATION.
JUST AN OPTION FOR CONSIDERATION.
I NOTICED CTE ADDITION WENT FROM 17 NINE TO NINE TWO.
I MEAN, WHAT, WHAT DO THOSE CUT? WHAT, WHAT DOES 50% CUT IN THAT ENTAIL? YEAH, IT WOULD INVOLVE CHANGING THE SCOPE OF THE PROJECT OR AN INFUSION OF CASH FOR, TO GET TO THE DIFFERENTIAL, BUT YOU KNOW, LIKELY IT WOULD BE CHANGING THE SCOPE OF THE PROJECT AND PRODUCING THAT.
CAN I, CAN I ANSWER SOMETHING? SURE.
SO IN THE C I P, THE FIVE YEAR CIP THAT WAS APPROVED LAST YEAR, THERE WAS OVER 5 MILLION OF CASH ON TOP OF THE BOND PROCEEDS FOR THOSE HIGH SCHOOL PROJECTS.
SO NOW YOU'RE LOOKING AT MAYBE A, A A 15,000, 15 MILLION PROJECT INSTEAD OF JUST A 9 MILLION IF THAT, THAT WERE TO, IF THAT CASH BALANCING WAS STILL AVAILABLE.
BUT THAT WASN'T THE, WHAT YEAR WAS THAT? THE, THE CIP THAT WAS APPROVED THIS YEAR.
WHERE WAS FUNDING AND WHAT YEAR IN THE, IT WAS IN 2024.
NO, IT WAS NOT FUNDED AND THAT, BUT WHAT I'M SAYING IS THE PLAN, THERE WAS A, THERE WAS A CASH CASH ASPECT TO THAT.
I JUST WANNA BE CLEAR, IT'S NOT FUNDED.
ITS NOT FUNDED WHAT, SO AN OPTION, MAYBE LIMITATIONS ASSOCIATED WITH THIS.
UH, IT WAS AT LEAST A WAY OF LOOKING AT SOME REMAINING, UH, BOND FUNDS, UH, THAT POTENTIALLY COULD CLOSE THE GAP.
SO JUST, JUST AN OPTION FOR CONSIDERATION.
SO LET'S FOLLOW THAT THROUGH JUST FOR A LITTLE BIT LONGER.
UM, SO IF YOU LOOK AT A BALANCED APPROACH, THE EXPENSES ASSOCIATED WITH WHAT I JUST SHARED IN THE GES INTERIOR RENOVATIONS AND THE CPE EDITION, UM, CHANGED THAT, UH, WE'RE LOOKING AT 65.8 MILLION.
AND THEN IF WE LOOK AT REVENUE ASSOCIATED WITH THAT, CURRENTLY APPROPRIATE BY THE SUPERVISORS, AND IF YOU ADD IN THE $6 MILLION AND 1250 THAT WE DISCUSSED EARLIER TODAY, AND OF COURSE MY TITLING PROBABLY IS NOT ACCURATE, BUT IF YOU LOOK AT EACH 24 MILLION, UH, OF THAT 18.2 MILLION AND THEN YOU LEAVE THE REST OF THE BOND, UH, YOUR, YOUR BALANCE IS 65.8 MILLION.
SO IT SHOWS THAT USING THE REMAINER OF THE BOND, HOWEVER THAT MAY HAPPEN NOW OR IN FUTURE YEARS, IF IT'S A REIMBURSEMENT RESOLUTION OR WHATEVER MAY BE THE MECHANISM TO DO THAT.
UH, THERE IS A POTENTIAL TO USE 18, A PORTION OF THAT 18.2 MILLION TO CLOSE THE GAP IN THE NEW GES WITH ADDITIONAL APPROPRIATION FROM THE SUPERVISOR.
SO, UH, COMING WITH A SOLUTION, MAYBE SOME PICKUPS ASSOCIATED WITH THAT SOLUTION, BUT AT LEAST IT WAS A WAY OF BRINGING THIS TOGETHER AND PROVIDING AN OPPORTUNITY TO BALANCE EVERYTHING AND STILL ACCOMPLISH WHAT COULD BE IMPORTANT TIMES.
AND WHAT'S THE TOTAL NUMBER, I THINK WAS IN THE PREVIOUS SLIDE? WHAT'S THE TOTAL NUMBER OF FUTURE C I P PROJECTS THAT YOU JUST TAKEN OFF THE TABLE? WHAT'S THE TOTAL VALUE OF THAT? IS ALL THE THINGS THAT YOU STRUCK OUT ON THAT PREVIOUS SLIDE?
[00:55:01]
YEAH, THAT'S SIGNIFICANCE.THAT'S FIVE, THAT'S SIX AND A HALF, THAT'S EIGHT AND A HALF, YOU KNOW, NEARLY 9 MILLION OF PROJECTS.
WHAT'S THE REDUCTION? SO 9 MILLION.
OH, THIS, THIS WAS A, THIS WAS A MUCH LARGER PROJECT.
LET'S SEE, THAT WAS, OH, THERE.
SO YOU'RE LOOKING AT ANOTHER $2 MILLION PLUS $8 MILLION THERE.
IT WAS PRETTY SIGNIFICANT REDUCTION.
AND IS THOSE ALL ON THE, THOSE THINGS ALL ON THE FIVE YEAR CIP? THEY ARE CURRENTLY, YES SIR.
SO EVERYBODY'S GONNA SEE A CIP P RADICALLY DIFFERENT FOR YOU.
DOUBLE THE NUMBERS I THINK IS WHAT YOU SAID.
WELL, WE WENT THROUGH A CALCULATION AND ESSENTIALLY THEY DOUBLED THIS FROM THE ORIGINAL PROJECT THEY WERE PRESENTED SEVERAL YEARS AGO.
GOING BACK TO, ALL RIGHT, SO, UM, ONE OF THE THINGS TO CONSIDER AND THE SCHOOL BOARD'S GOING TO MEET AFTER THIS WORK SESSION TO CONSIDER THEIR NEXT STEPS.
BUT ONE OF THE POTENTIAL CONSIDERATIONS IS TO REQUEST THE APPROPRIATION FROM THE SUPERVISORS FOR THAT 7.2 MILLION, WHICH IS THIS RIGHT HERE, UH, WHICH CONCLUDES THE BOND PROCEEDS, THE BOND PREMIUM AND THE BOND BOND INTEREST AND ITS BOARD TO CONSIDER WHETHER OR NOT THEY WANT TO REQUEST THAT, UH, FOR CONSIDERATION.
AND THEN MAKING SURE I WORD THAT CORRECTLY, WILL THE SCHOOL BOARD REQUEST 8.4 MILLION OUT OF THE 18.2 MILLION FOR THE OTHER PROJECTS IN ORDER TO FUND INCLUDING GPS? SO THAT'S A DISCUSSION THAT THEY'RE GONNA HAVE LATER ON TODAY, BUT CERTAINLY HAPPY TO ANSWER ANY QUESTIONS OR YOU AGREED OR UNDERSTANDING OF THE ISSUES TODAY.
I'LL ASK FOR CONFIRMATION FROM SUPERVISOR PETERSON.
UH, FIRST BULLET POINT BOND HAS ALREADY BEEN ISSUED.
SECOND, WE'D HAVE TO TAP THE CAPITAL MARKETS IS THE AREA PART.
UM, BOND REFERENDUM MILLION FOR SPECIFIC PRODUCT AND THOSE PROCEEDS CAN ONLY USED FOR PUBLIC SAFETY IN SCHOOLS.
AND WE ISSUED 50 MILLION IN FEBRUARY, FIRST WEEK IN FEBRUARY AT 2.2% BEFORE INTEREST RATES SKY AND WE GET SEVEN.
ONE OF THE REASONS WE DID 50 WAS IT HAS TO ENOUGH TO GET INTEREST BIDS WAS 11 DIFFERENT DIFFERENT BANKS.
THAT'S BEEN FOR THE ENTIRE ISSUE.
WE GENERATED A LOT OF ISSUE INTEREST.
UM, IF YOU GO OUT WITH 5, 6, 7 MILLIONS GONNA BE INTERESTED IN BIDDING.
UM, IF YOU GO OUT WITH 10 15, YOU'RE STILL TALKING ABOUT MAYBE YOU JUST GO A INSTEAD OF, UM, BUT IF YOU GET 40, 50, 60, THAT'S THE LARGER BANKS AGGRESSIVELY AND GET A MUCH BETTER REGISTRY.
UM, WITH INTEREST RATES MORE THAN DOUBLING SINCE WE DID THAT.
UH, YOU'RE PROBABLY LOOKING AT WAITING UNTIL THE BACKSIDE OF THAT INTEREST RATE CURVE BEFORE YOU GO OUT AND MARKETS THAT'S PROBABLY COUPLE YEARS OUT.
SOMEONE COME TO MY CONCERNS, JUST SHARES A SAFE SPACE.
WE CAN ALL SHARE OUR CONCERNS IS THAT WE'RE GOING OUT TO BID A CONTRACT WHERE COSTS HAVE RUN UP TO THE HIGHEST INFLATION 40 YEARS AND WE'RE GONNA CHOOSE THAT TIMEFRAME TO GO OUT IN SOLICIT BIDS.
AND WE BUDGET THE LAST YEAR AND I SORT OF 10 YEARS IN THE ARMY, WE ALWAYS, WE CRITICIZED FOR LEARNING HOW TO FIGHT THE LAST WAR.
THIS IS KINDA LOOKING THROUGH YOUR REAR MIRROR.
WE HAD DOUBLE DIGIT INFLATION LAST YEAR.
SO NOW WE'RE ALL CONVINCED THAT THAT'S GONNA BE DOUBLE DIGIT INFLATION FOR THE REST OF OUR LIVES.
THE FEDS OUT THERE NOW TRYING TO BEND THAT COST.
UM, NEW HOME CONSTRUCTIONS CUT DOWN BY 50%, MORTGAGES ARE 7%.
NOBODY'S BORROWING A MORTGAGE ANYMORE.
UM, SO IF THEY'RE, IF THEY'RE BENDING THE COST CURVE AND THAT INFLATION HAS BEEN GOING STRAIGHT UP, IT'S GONNA, THEY'RE GONNA BEND THAT CURVE AND IT'S GONNA END BACK DOWN.
AND THAT'S WHAT THE FED SET OUT TO DO.
AND THE OLD S DON'T FIGHT THE FED WHATEVER THEY WANNA DO, THEY CAN GET DONE RIGHT, JUST MATTER HOW LONG IT TAKES AND HOW BAD IT, BUT SO IF THEY'RE BEEN IN A COST AND WE'RE PRINTING OUR CONSTRUCTION COST AT THE PEAK YEAR, AND NOW WE'RE TALKING ABOUT GOING ACCESS TO CAPITAL MARKETS WHERE INTEREST RATES ARE AT THE HIGHEST THEY'VE BEEN IN DECADES.
AND THEN WHERE DO THINGS GO FROM HERE? LIKE WE COULD PREDICT HISTORY WITH RELATIVE ACCURACY.
YOU
YOU KNOW THAT FOR US TO GO OUT AND PRINT A DEAL, WE PRINTED THE ONE IN FEBRUARY AT 2.2.
[01:00:01]
TO FIVE.THAT INTEREST ON THAT, YOU KNOW, ANOTHER 20 OR 30 MILLION OF BONDS, WE JUST, YOU KNOW, THERE'S NO ROOM FOR THAT IN OUR INTEREST EXPENSE, OUR DEBT SERVICE EXPENSE.
SO IN MY MIND, WE'VE PRETTY MUCH TAPPED THE CAPITAL MARKETS AT THE RIGHT TIME.
ISSUED, ISSUED THE AMOUNT OF THAT WE WERE, TOLD US WHAT WE NEEDED, RIGHT? SO WE'RE FULLY FUNDED ON THAT AS A GREAT PRINT.
AND IN MY MIND, WE'RE PRETTY MUCH, YOU KNOW, STEPPING BACK FROM ISSUING BONDS UNTIL INTEREST RATES COSTS COME BACK DOWN, LIKE DOWN TO EARTH.
AND, UH, AND WE REALLY CAN'T GO OUT THERE WITH 5, 6, 7, 8 MILLION OFFERING AND EXPECT TO GET ANY INTEREST ON IT.
AND IF WE DID, IT'D BE A MORE THAN DOUBLE AN INTEREST RATE.
SO THOSE ARE SOME OF MY CONCERNS THAT WE'RE, WE'RE BUILDING AT THE PEAK COST OF CONSTRUCTION AND WE'RE TALKING ABOUT PRINTING LINES, THE PEAK INTEREST RATE.
I MEAN, UH, AGAIN, HISTORY, WE GET FUTURE, WE DON'T KNOW, BUT JUST SOME CONCERNS ABOUT WHERE WE'VE BEEN VERSUS WHERE WE'RE HEADING VERSUS THE INFLECTION POINT THAT WE'RE GONNA BE AT NOW.
DOES THAT ANSWER YOUR QUESTION, GENERALS OR YEAH, DO, CAN WE ASK TO WEIGH IN ON THE CONSTRUCTION, WHAT HAS, WHAT THE THINKING IS AS FAR AS CONSTRUCTION COSTS? BECAUSE WE KNOW THAT THE FALLING CREEK AND, AND WILL MOVE FORWARD IN THE SAME ENVIRONMENT THAT WE HAVE.
UM, AND YOU KNOW, SO WHY, WHY ARE OTHER SCHOOL DIVISIONS MOVING FORWARD? IF, IF, IF THERE'S A PERCEPTION THAT THIS IS A PEAK AND IT'S GONNA GO DOWN, OOPS.
AND SPECIAL, IT'S A SPECIAL PLACE.
I WOULD LIKE TO HEAR ABOUT WHAT'S GOING ON OUT THERE BECAUSE I, I DO KNOW THAT IF YOU'VE PUT TWO BY FOURS AND STICK TO BUILDING YOU, YOU'RE GONNA PUT THE ROOF ON THE SIDING OUT AND SELL IT.
YOU'RE GONNA FOLLOW THROUGH ON YOUR CONSTRUCTION AND THERE IS A CYCLE THAT YOU KNOW OF, OF GETTING ZONING APPROVALS AND YOU'RE NOT GONNA STOP MID, MID CONSTRUCTION.
BUT, BUT WOULD YOU BE STARTING A NEW PROJECT KNOWING WHERE YOUR CONSTRUCTION COSTS ARE TODAY VERSUS WHERE THEY MIGHT BE? I BE INTERESTED TO HEAR WHETHER THE NEW HOUSING CONSTRUCTION, COMPETITION FOR WORKFORCE MATERIALS, ALL THAT, IS THAT COMPETITION FOR US, YOU KNOW, LESSENING OR IS IT STRENGTHENING? ARE, IS THE HOUSING MARKET, YOU KNOW, GROWING STRONGER OR, OR WEAKER GIVEN THAT MORE THREE 37%? I, I'D BE INTERESTED IN THOUGHTS ON WHERE THINGS ARE HEADED FROM HERE AND I, I DON'T HAVE AS MUCH INSIGHT ON THE RESIDENTIAL SIDE JUST CAUSE I, I DON'T TRACK AS MUCH, BUT I DO, UM, I THINK OF IT AS TWO PRETTY, UM, SEPARATE MARKETS.
SO THE THINGS THAT HAPPEN ON THE RESIDENTIAL SIDE DON'T NECESSARILY HAPPEN ON THE COMMERCIAL.
FAIRLY DIFFERENT TRADES PEOPLE ARE WORKING IN RESIDENTIAL, EXTREMELY, EXTREMELY HEAVY ON THE, ON LUMBER COST.
OF COURSE ON COMMERCIAL YOU'RE DEALING MORE WITH CONCRETE AND STEEL.
SO, SO SOMEWHAT DIFFERENT MATERIALS.
UM, BUT THE, THE POINT EXACTLY IS THAT, UH, WE, WE DON'T REALLY KNOW WHAT'S UM, GONNA HAPPEN IN THE FUTURE.
WE CAN KIND OF LOOK AT THE PAST AS A KIND OF A PREDICTOR OF THE FUTURE.
AND IF YOU LOOK AT COMMERCIAL COSTS OVER THE LAST 30, 40 YEARS, THERE'S REALLY ONLY BEEN ONE, ONE DIP, ONE COMMERCIAL CONSTRUCTION COSTS.
UM, AND THAT WAS MORE TOWARDS 2009, 2010 WHEN PEOPLE STOPPED FILMING.
CAUSE THE DEEPER SESSION BANKS WEREN'T LOADING MONEY COSTS ACTUALLY WENT DOWN.
BUT IF YOU, YOU LOOK AT THAT CURVE, ANY, ANY OTHER TIME IN THE LAST 30, 40 YEARS THAT THEY COST HAS DONE NOTHING BUT GO ALONG WHAT WE TALKED ABOUT, UM, HOW MUCH ARE, ARE, HOW MUCH WE CAN AFFORD FOR JUST DUMB IT DOWN FOR, FOR FOLKS, IF I GO TO BUY HOUSE, I KNOW HOW MUCH OF A MORTGAGE I CAN AFFORD.
HOW MUCH, HOW MUCH CAN A SCHOOL AFFORD MORTGAGE? HOW MUCH CAN YOU BORROW AND PAY BACK? WHAT IS YOUR DEBT SERVICE? WE CAN'T, WE CAN'T, CAN'T BORROW.
BUT THERE SHOULD BE A NUMBER THAT THE SCHOOL CAN REPAY.
WELL ULTIMATELY WE GET EVERY DOLLAR FROM THE COUNTY, SO WE GET A LITTLE BIT OF STATE MONEY AS YOU KNOW.
BUT ULTIMATELY THE VAST MAJORITY COMES FROM THE APPROPRIATION THAT YOU PROVIDE TO US.
SO ULTIMATELY WE CAN'T SPEND ANYTHING WITHOUT YOU GUYS GIVING US THE GLORY.
BUT IN YOUR BUDGET YOU'D HAVE TO SAY, OKAY, WE, SOME OF, SOME OF OUR BUDGET CUTTING HERE HAS TO GO TOWARDS PAYING, OBVIOUSLY COUNTY CARRIES OUR DEBT SERVICE.
WE DON'T, WE DON'T HAVE ANY LINE ITEMS IN OUR BUDGET FOR DEBT SERVICE.
[01:05:01]
MAY I ASK QUESTIONS? GOTTA WATCH OURS.
UM, AND MAYBE THIS IS FOR MR. PETERSON TOO.
SO IN MY EXPERIENCE, I'VE SEEN WHERE SOME LOCALITIES ACTUALLY IN THEIR LOCAL MATCH REQUIREMENT INCLUDE THE DEBT SERVICE AS PART OF THEIR SCHOOL FUNDING.
SO IN IN ESSENCE THEY'RE GIVING THE MONEY TO THE SCHOOLS, BUT GETTING IT BACK.
AND I THINK THAT THAT'S SORT OF WHAT MR. SPOON, HOW IT WAS ASKING, YOU KNOW, IF, YOU KNOW, IF YOU WERE TO IN THEORY DEDUCT IT FROM YOUR LOCAL MATCH, HOW MUCH CAN YOU ACTUALLY ABSORB IN YOUR COUNTY CONTRIBUTION? SO I, I DON'T KNOW IF THAT'S HOW WE DO IT HERE, BUT I DO KNOW THAT THERE'S SOME LOCALITIES THAT THE DEBT SERVICE IS, THE AMOUNT IS REFLECTED IN THE LOCAL MATCH AND THEN THE LOCAL STILL CARRIES THE DEAD SERVICE BUT IT BECOMES A WASH.
UM, THE WAY WE HAVE DONE IT IS WE DON'T REALLY SEPARATE IT DR.
BRADLEY, WE CARRY ALL THE FINANCIAL BURDEN, BUT WE DO COORDINATE.
BUT THE FINANCE AND AUDIT COMMITTEE, UM, HAS ADOPTED FINANCIAL POLICIES ACCOUNT.
AND IN THOSE FINANCIAL POLICIES WE HAVE UM, A DEBT SERVICE COVERAGE RATIO THAT WE USE.
NO MORE THAN PERCENT YOUR BUDGET TO DEBT SERVICE.
WE HAVE AN ASSET COVERAGE RATIO WHERE THE DEBT SERVICE IS NO GREATER THAN A CERTAIN PERCENT OF THE TAXABLE BASE OF THE COUNTY.
SO YOU GOT AN ASSET PACK COVERAGE RATIO AND A CASH FLOW COVERAGE RATIOS.
AND WE'VE GOT OTHER POLICIES AS WELL.
SO WE HAVE, YOU KNOW, THEORETICAL MAXIMUMS AND WE HAVE OUR TARGET CAUSE WE RUN UP MAXIMUM.
SO OUR TARGET AND THEN WE HAVE OUR CURRENT AND WE TRACK THOSE ON ACCORDING BASIS FINANCE AND AUDIT COMMUNITY MEETING.
SO THE QUESTION OF HOW MUCH DEBT CAPACITY DO THEY HAVE IS REALLY HOW MUCH DEBT CAPACITY DOES THE COUNTY HAVE? AND WE TRACK THOSE RATIOS TO SEE, AND THIS LAST 59 AT A VERY, VERY SKINNY 2% INTEREST, THE PRINCIPLE AND INTEREST THAT SERVICE ON THOSE RUNS US UP PRETTY CLOSE TO OUR TARGET.
SO WE DON'T HAVE A WHOLE LOT OF ONIONS AND PART OF THE REASON FOR WINNING FOR THAT 50 MILLION TO BUILD THE GS, WE TALKED ABOUT 2 0 7, 2 8, PART OF THE RATIONALE FOR WAITING UNTIL NOW WAS TO PAY OFF THE MIDDLE SCHOOL HIGH SCHOOL DEBT, WHICH COMES OFF THIS YEAR I BELIEVE, AND THEN REBAR THAT AS OPPOSED TO LAYERING DOWN TOP OF THAT, WHICH GONNA LOWER OUR RATIOS.
AND SO I GUESS I WAS JUST WONDERING, YOU KNOW, HAVE HAS LOOKED AT COUNTING THE DEBT SERVICE THAT'S PAID TOWARDS THAT LOCAL AMOUNT.
WE LOOKED AT THE, UH, HOW THE SCHOOLS, NO.
SO WHEN YOU HAVE YOUR LOCAL MATCH AMOUNT THAT THIS THING PROVIDES WITH YOUR, LIKE YOUR ADM AND ALL OF THAT INDEX, THE COMPOSITE INDEX, THE 20% YEAH, THE 20% TAKING WHAT YOU ACTUALLY CARRY AS YOU ARE DEBT.
AND THAT'S PAYMENT AMOUNT THAT RELATES TO THE SCHOOLS AT DOLLAR FIGURE AND HAVING THAT LISTED AS PART OF YOUR CONTRIBUTION, BECAUSE IT STILL IS FUNDING IN KIND TO SCHOOLS.
UH, I MEAN IT STRIKES ME THAT'S ON PAPER, BUT THEN IS IN A WAY THEN YOU'RE ABLE TO SAY THAT THERE'S STILL THE LOCAL MATCH WITHOUT IMPACTING THE LOCAL MATCHED THE BUDGET.
THAT'S IT REALLY FUNDS OPERATINGS OPERATING.
IT DOESN'T FUND REALLY ISN'T A, THE
SO, BUT I I I I, I WE'RE ALL CIRCL AROUND HERE IS IS UH, HOW DO WE REFLECT WHAT THE SCHOOLS ARE OCCURRING ON THE SCHOOL'S NUMBERS OR IS IT COMPLETE, YOU KNOW, THERE'S NO VISIBILITY IF IT'S, IF IT'S COMPLETELY OFF OFF FINANCIALS AND OFF BALANCE SHEET AND OFF INCOME STATE AND OFF TO THE SIDE, YOU KNOW, HOW DO WE MEASURE, YOU KNOW, THE FINANCIAL IMPACT ON WHAT CAUTIOUS WHAT AMOUNT OF THAT IS ACTUALLY BEING, YEAH.
SO YEAH, THAT MIGHT BE A GOOD NUMBER TOO.
AND TO YOUR POINT AND, AND EVERYTHING THAT YOU SAID HAS, WELL GOOD HERE WE
[01:10:02]
YOU KNOW, THE IDEA HAS BEEN THAT THE MIDDLE SCHOOL DEBT IS GONNA DROP OFF, YOU KNOW, SO WHAT'S THE TIMING OF WHEN WE ACTUALLY NEED THE, THAT ADDITIONAL $8 MILLION? IS IT, IS IT IN THE TIME PERIOD WHERE WE WOULD ACTUALLY HAVE TO CROSS THAT PATH? I MEAN, WHEN WE THINK ABOUT HOW WE FUND A A CONSTRUCTION PROJECT, WE, WE'VE GOT THE MONEY SITTING THERE EARNING INTEREST, WE'RE NOT GONNA SPEND IT ALL IN ONE CHECK AND GIVE IT TO 'EM AND SAY, GEE, WE HOPE IT TURNS OUT OKAY, WE, WE HAVE PROGRESS BILLINGS ALONG THE WAY.AND SO IT, YOU KNOW, WE, THERE WILL BE SOME OPPORTUNITY FOR TIMING TO BE AN IMPORTANT CONCEPT FOR US TO DISCUSS AND CONSIDER.
SO YOU'RE GONNA SIGN A CONTRACT PLEDGING THE MONEY AND DON'T, WE DON'T HAVE THE PROCEEDS, THE PURPOSE OF THIS CONVERSATION? WELL, I'M SAYING THAT IT'S AS, AS WE CONSIDER THIS, THIS IS SOMETHING THAT WE CAN, CAN DISCUSS.
I DON'T, I DON'T KNOW THAT YOU HAVE TO TAP THAT RIGHT AWAY.
IF YOU, IF YOU HAVE A COMMITMENT TO SIGN THE CONTRACT, THE FUNDING IS SORT OF A SEPARATE WAY TO TAKE THIS ON AND, AND TO CONSIDER DOING THIS.
I WOULD THINK THAT JUST AS YOU GUYS MADE A GOOD DECISION TO, TO TAP THIS WHEN THE MARKET WAS LOW, YOU CAN MAKE A DECISION TO TO TIME WHEN YOU TAP THE REST OF IT ALONG THE WAY.
I MEAN, IF, IF, IF WE'RE NOT GONNA DO THIS, THEN WE'RE, WE'RE NOT GONNA DO IT WHOLEHEARTEDLY.
AND NOW WE'VE GOTTA FIND SOME WAY TO, TO UTILIZE THE DOLLARS THAT HAVE ALREADY BEEN COMMITTED.
SO I THINK WE'RE ALREADY IN THE BOAT.
THE QUESTION IS, IS, YOU KNOW, WHEN, WHEN WE GO THROUGH, YOU KNOW, THE PROCESS TO TO, TO TAP SOME OF THESE OTHER THINGS, I, I GET WHAT YOU'RE SAYING ABOUT STICKING TO THE PRINCIPLES AND, AND I THINK THEY'RE GREAT PRINCIPLES.
I DON'T, I MEAN WE'RE JUST ALL IN THIS WITH THE SAME AMOUNT OF PAIN TRYING TO FIND A SOLUTION.
AND SO WE, TIMING MAY BE PART OF OUR SOLUTION.
COULD WE TAP THE CAPITAL MARKETS IN THE NEXT 18 MONTHS? MY QUESTION IS GONNA GET SUSAN'S POINT AND I DUNNO WHO HAD THE ANSWER, BUT WE WERE HOPING YOU DID THESE PROJECTS, HOW OFTEN DO YOU SEE THEM FUNDED? I GUESS IN WHICH WAYS DO YOU SEE THEM FUNDED? IT MIGHT BE A BETTER QUESTION BECAUSE THE CAPITAL MARKETS LITERALLY HAVE JUST BEEN SNATCHED AWAY FROM US.
THAT IS A VERY SUDDEN WHAT'S THE SITUATION? BUT, BUT IT DOESN'T MEAN THAT THERE ARE NOT POTENTIAL ATTRACTIVE SOLUTIONS.
SO IF YOU ALL TOLD ME THESE THINGS ONLY GET FUNDED WITH MUNICIPAL BONDS AND YOU KNOW, AND CASH FROM OUR BUDGET, THAT'S A DIFFERENT STORY.
IF YOU SAY NO, I'VE DEALT WITH X, Y, Z SCHOOL DISTRICT OR, OR TALKED TO THEM AND THEY WORKED WITH, CUZ TRUST ME, BANKS WANT TO GROW TOO.
THEY WANT TO DO BUSINESS WITH LARGE ENTITIES LIKE A COUNTY AND, AND THERE AND THERE ARE CONVERSATIONS TO BE HAPPY.
I HAVE TO RECUSE MYSELF AND MAYBE
I THINK WE JUST HAVE TO ASK THE RIGHT QUESTIONS TO POTENTIAL FINANCING SOURCES.
THAT'S A TIMING ISSUE FOR OUR FINANCIAL RATIOS.
I MEAN, WHEN ARE WE PAYING OFF, PAYING OFF THE SCHOOL AT UH, LIKE NOVEMBER, LIKE ABOUT A YEAR FROM NOW I THINK.
WELL, BUT REMEMBER WE'VE ALREADY APPROPRIATED NO BUT THIRD OF THAT BUDGET.
BUT, BUT WHAT I'M, THAT'S, THAT GOES TO THE TIMELINE.
I MEAN WE, WE HAVE A, A PAYMENT WATERFALL SO TO SPEAK.
WE'VE ALREADY, IT'S THAT TAIL IF WE REALLY WANTED TO LOOK AT IT, WE NEED TO FIGURE OUT, AND THERE'S NOTHING A LEGAL CONTRACT CAN'T SOLVE IN REGARDS TO THE TAIL.
WE MIGHT NOT BORROW THE MONEY FOR 18 MONTHS, BUT THEY'RE STILL BOUND.
WE KNOW THE TERMS, WE KNOW HOW WE'RE DOING IT.
I'M NOT, I'M I'M JUST THROWING THAT OUT THERE CAUSE WE NEED TO EXPLORE ALTERNATIVES.
WE CAN'T EXPLORE THE TRADITIONAL MEANS IN THIS MARKET.
HOW DOES THAT EXPLORATION TAKE PLACE? THAT'S WHAT'S IMPORTANT.
WHO, WHO MAKES IT? I I CANNOT
I JUST, RIGHT, SO WHAT YOU'RE TALKING ABOUT IS BANK QUALIFIED
[01:15:02]
TYPE OF TRANSACTION, CORRECT? OH YEAH, YEAH.SO BANK QUALIFIED CAN USUALLY, I MEAN YOU GUYS ARE MORE EXPERT AT THIS THAN I AM, BUT BANK QUALIFIED IS ALWAYS AN OPTION INSTEAD OF THE BOND MARKET.
BUT FROM, FROM MY CONVERSATIONS IN THE PAST WHEN WE LOOKED AT THE C I P AND WE LOOKED AT THOSE HIGH SCHOOL PROJECTS AND I SAY TO BARBARA, UM, CARLOCK OR THE FORMER, UH, FINANCE PERSON, I FEEL LIKE YOU'RE NOT, HOW CAN WE MOVE FORWARD ON THE HIGH SCHOOL PROJECTS WHEN IT'S FROM A FUTURE BOND PROCEEDS? AND SHE GOES, THAT'S WHERE THE REIMBURSEMENT RESOLUTION COMES IN.
WE'VE GOT CASH ON HAND, WE'RE GOING TO TIME THAT SECOND BOND ISSUE WHEN IT'S RIGHT FOR THE COUNTY IN A COUPLE YEARS, RIGHT? SO SHE SAID, YOU KEEP ON YOU, YOU SPEND THE MONEY THAT WE APPROPRIATE FOR YOU.
SO IN THIS CASE I WOULD'VE HAD 1,000,033, WELL IT'S STILL, STILL WASN'T APPROPRIATED, BUT UM, SHE SAID, DON'T WORRY ABOUT WHEN I TIME THAT BOND PROCEED.
AND SO THAT, THAT'S REALLY SORT OF BECAUSE I, WE'RE GONNA TIME IT TO THE COUNTY'S BEST ADVANTAGE AND WE'RE, WE'RE GOING TO USE CASH IF WE NEED TO BEFORE THE, THE BOND IS ISSUED.
AND SO WE CREATED, WHEN WE DID OUR BOND RESOLUTION, AND THIS WAS IN DISCUSSION WITH BARBARA LAST NOVEMBER, WE INTENTIONALLY KEPT IT VERY HIGH LEVEL.
WE SAID $60 MILLION FOR THE THREE, FOR THE THREE TYPES OF PROJECTS THAT WERE APPROVED IN THE BOND REFERENDUM SO THAT WE COULD AT ANY POINT USE CASH TO PAY FOR ANY OF THE PROJECT.
AND WE DID THAT BEFORE THE FEBRUARY WE, WE HAD INCURRED, UH, YOU KNOW, A LOT OF THAT'S NOT A LOT, A COUPLE, UH, PROBABLY A MILLION OR SO FOR BOTH THE, THE, UH, PARKING LOT AND THE UH, SCHOOL PROJECT BEFORE THE BONDS WERE EVER ISSUED.
AND UM, I THINK OUR FIRST DRAW WAS UM, AFTER THE FEBRUARY WAS PROBABLY $2 MILLION.
SO, UM, WE'D ALREADY USED CASH AND, AND THAT WAS ALWAYS HER DIRECTIVE TO ME IS DON'T WORRY ABOUT WHEN WE DECIDE TO DO THE BOND, PROCEED, MOVE FORWARD WITH YOUR PROJECT.
YOU'VE GOT YOUR REIMBURSEMENT RESOLUTION IN PLACE.
WE'VE DONE CASH TO COVER YOU THE BREAKS THERE FOR JUST A SECOND.
SO THAT, THAT WAS, THAT WAS THE DIRECTION THAT I WAS BEING GIVEN.
BUT THAT WAS ALSO THE ROSY ENVIRONMENT, RIGHT? THE DIRECTION WE GOT BEFORE WE WENT OUT, THAT WAS A VERY SPECIFIC NUMBER ON THE ELEMENTARY SCHOOL CONSTRUCTION AND THAT'S HOW WE BUILT THAT 50.
IT DIDN'T HAVE ANYTHING, THE 60, THAT'S A 10 YEAR NUMBER.
THIS, THIS 50 MILLION WAS BUILT ON A VERY SPECIFIC NUMBER WE WERE GIVEN, THAT'S HOW WE GOT TO 50.
THAT IT WASN'T THAT YOU CAN USE THAT OTHER 18 ANYTIME YOU WANT.
IF YOU WANTED TO USE THE ENTIRE 60 UP FRONT, WE WOULD'VE BUILT THAT INTO THE NUMBER.
THAT'S NOT WHAT WE'RE TOLD MR. WILDERS TO ANSWER YOUR QUESTION ABOUT SOME OTHER ALTERNATIVES.
BUT EVENTUALLY OTHER SCHOOL DIVISIONS HAVE USED, UH, THERE IS THE LITERARY LOAN PROGRAM THROUGH THE COMMONWEALTH.
NOT A LOT OF SCHOOL DIVISIONS QUALIFY FOR THAT CUZ I WOULD EXPECT WE PROBABLY WOULDN'T QUALIFY BECAUSE OF THE STRONG FISCAL MANAGEMENT OF, OF THE COUNTY.
UH, THERE IS A GRANT PROGRAM THAT VIRGINIA DEPARTMENT OF EDUCATION'S WORKING ON RIGHT NOW LOOKING AT THE EARLY PARAMETERS ASSOCIATED WITH THAT DOESN'T LOOK LIKE WE WOULD QUALIFY.
IT WOULD BE ABOUT $2 MILLION FOR GOON.
IT WOULD BE GREAT IF WE QUALIFY.
UH, AND THEN THERE'S THE VIRGINIA PUBLIC SCHOOL AUTHORITY, THE B PSA, WHICH UM, MOST OFTEN SCHOOL DIVISIONS CAN ACCESS OF COURSE THEIR ADMINISTRATIVE FEES ASSOCIATED WITH THAT.
BUT THAT IS ANOTHER FORM OF PUBLIC FINANCING SCHOOL DIVISIONS.
I'M THINK, I MEAN I'M THINKING MORE THE PRIVATE SECTOR.
I THAT WAS JUST, I I DIDN'T WANNA SUGGEST SOMETHING THAT WOULD'VE WOULD BE SO OUTTA WHACK THAT YOU'D SAY NO, BUT I MEAN IT'S, IT'S COMPETITIVE.
IT'S, YOU KNOW, IT'S QUICK DECISIONS, IT'S THE AMOUNT WE NEED AND, AND IT CAN BE STRUCTURED.
THAT'S, THAT'S THE BEAUTIFUL THING IS YOU WANNA TALK ABOUT STRUCTURING, WE CAN STRUCTURE A BOND ALL DAY.
YOU CAN STRUCTURE A BANK LOAN FOR A SPECIFIC PROJECT 10 TIMES MORE SPECIFICALLY IN REGARDS TO WHEN THE FUNDS ARE AVAILABLE.
WHEN WE NEEDED ALL THAT STUFF.
YEAH, I DIDN'T, I WANTED, I DIDN'T WANT TO BRING THAT UP IF
[01:20:01]
YOU SAID NO, THAT'S NOT A FINANCING ALTERNATIVE.I THINK, I THINK IT IS AN OPTION.
I THINK ULTIMATELY THAT'S WHAT WE'LL HAVE TO DECIDE TOGETHER.
LIKE WHERE DO WE GO FROM? YEAH, I THINK WE NEED TO KEEP IT OPEN MIND AND EXPLORE ALL OPTIONS THEY DID THAT HAD TO BE GOING OUT WITH ANOTHER 10 ON THE 50 A WAS OF TIME GOING BACK IN, BUT THAT EM IS A 20 YEAR LEVELIZATION AT 2%.
IF YOU THEN TALKED ABOUT A BANK LOAN TODAY, YOU'RE GONNA DOUBLE THE INTEREST RATE, CUT THE EMBOLIZATION DOWN TO WHAT, FIVE OR 10 YEARS FOR SEVEN YEARS.
YOU'RE NOT GONNA GET A BANK LOAN FOR 20 YEARS.
SO, SO YOU'RE, YOU'RE LOOKING AT A, YOU KNOW, CUTTING A MATURITY IN HALF.
SO THE EMBOLIZATION PRINCIPLE IS, IS TWICE AS FAST AND DOUBLING THE INTEREST RATE.
IT'S A MUCH LESS EFFICIENT, EFFECTIVE WAY TO FINANCE A LONG TERM PROJECT.
HAVING SAID THAT, AGAIN, WE'RE OPEN MIND, WE'LL LISTEN, WE'LL LOOK AT ALL THINGS, BUT IT'S A LITTLE DIFFERENT.
THERE'S DIFFERENT IMPLICATIONS AND, AND HERE ME JUST STEP BACK AND SAY ALL THESE GEARS ARE CONNECTED, RIGHT? EVERYTHING'S CONNECTED.
THE AAA CREDIT RATING THAT WE GOT FROM THE COUNTY, WE ISSUED THE 50 MILLION.
WE TOOK THOSE BONDS TO THE AGENCIES AND GOT AAA RATING ON THOSE BONDS, WHICH ALLOWED US TO GET THAT 2.2.
IF WE HAD NON-RATED BONDS, LIKE WE, YOU KNOW, FIVE YEARS AGO WE DIDN'T HAVE A RATING, THAT INTEREST WOULD NOT HAVE BEEN 2.2, IT GOT DRAMATICALLY HIGHER.
SO YOU WANT TO PRESERVE THE ABILITY TO ACCESS WHEN YOU GO OUT TO GET THE MOST FAVORABLE RATE.
PART OF THAT IS OUR DEBT SERVICE AS A PERCENT OF OUR BUDGET IS UNDER OUR MAXIMUM CAP AND OUR TARGET.
IF WE NOW TALK ABOUT ISSUING ADDITIONAL DEBT, ADDITIONAL INTEREST AND BLOW THOSE, THOSE TARGETS AND THOSE THRESHOLDS AND THOSE REP RATIOS, THEN THEY START TAKING A HARD LOOK AT OUR RATING, WHICH MEANS THAT WE GOTTA MAKE MORE INTEREST.
THE WHOLE THING GETS INTO A VICIOUS CYCLE AS OPPOSED TO A VIRTUOUS CYCLE.
RIGHT NOW WE'RE AT A VIRTUOUS CYCLE AND ALL THE GEARS ARE CONNECTED, EVERYTHING'S WORKING.
AND THAT'S SOME OF THE CONCERN IS NOT TO DESTABILIZE THAT, UM, AND, AND, AND TAKE OUR RATIOS OUTTA LINE WITH WHERE THEY'VE BEEN.
BUT AGAIN, I WANNA KEEP AN OPEN MIND HERE, WE'LL FIGURE THIS OUT.
BUT THERE ARE SOME CONSTRAINTS AND ALL THE GEARS ARE CONNECTED.
I JUST WANNA MAKE SURE THAT THE LAW OF UNINTENDED CONSEQUENCES TO THINK ABOUT.
SO WE HAVE TO LOOK AT, WE HAVE TO TALK ACTUAL NUMBERS TO KNOW IF YOU'RE GONNA START GETTING THOSE NUMBERS OUTTA WHACK.
AND I DON'T THINK CHARLIE SUGGESTING THIS IS A LONG TERM FINANCING, FINANCING, WHATEVER IS A LONG TERM FINANCING SOLUTION.
I SEE IT AS IS A SHORT TERM FINANCING SOLUTION CLOSING UNTIL GET TO, UNTIL WE GET TO THAT 0.2, TWO YEARS OR THREE YEARS OUT WHEN WE'RE, WHEN WE'RE COMFORTABLE ISSUING THE BOND.
SO WE HAVE TO LOOK AT THAT, THE DEBT SERVICE IMPACT AND, BUT THEN HE'S ABOUT CREATIVE STRUCTURE AND THE STRUCTURE WOULD BE SUCH THAT IT WOULD HOPEFULLY SLIDE US RIGHT INTO THE TIMING THAT YOU'RE CONCERNED ABOUT THAT POINT.
THAT'S NOT THE CAPITAL MARKET'S NOT AN OPTION RIGHT NOW.
WE NEED, WE NEED TO PUT THIS FRONT AND CENTER TOO.
IT'S NOT SCHOOL BOARD'S FAULT, THIS IS NOT THE BOARD OF SUPERVISORS FAULT.
THIS IS SITUATIONS WE'RE DEALING WITH.
EVERY SINGLE COUNTY IN THE COUNTRY IS DEALING WITH THE SAME SITUATION.
IF THEY HAVE A MAJOR CAPITAL PROJECT, WE CAN FIND A SOLUTION.
WE'RE SMART ENOUGH, WE HAVE THE PEOPLE TO DO IT.
UH, LAST THING I WANT IS ANYBODY, THE SCHOOL BOARD, THE SCHOOLS TO THINK THAT THERE'S NOT EVERY OPTION ON THE TABLE AND WE, IT STINKS.
I WISH WE DIDN'T HAVE, IT WAS SO EASY LAST YEAR AND NOW WE HAVE TO ASK THESE TOUGH QUESTIONS AND IT'S, AND IT STINKS, BUT WE CAN DO IT.
YEAH, I MENTIONED GOES TO SPECIAL.
LOOK AT THE PEOPLE IN THIS ROOM AND WE HAVEN'T HAD A FOOD FIGHT YET.
COUNTIES WE'RE WORKING TOGETHER TO SOLVE A COMMON PROBLEM.
IT DOESN'T HAPPEN VERY MANY PLACES.
SO I'M, AND I THINK THIS PROJECT GOES ALONG.
WE'RE HAVING A DISCUSSION TONIGHT ABOUT THE COURTHOUSE VILLAGE.
WE HAVE ANOTHER VILLAGE, BUT YOU KNOW, WE ARE BOARD SUPERVISORS OF ALL IN THIS COUNTY IS LOOKING AT INFRASTRUCTURE ISSUES IN THIS COUNTY AND HOW TO CAREFULLY, MINDFULLY GROW THIS COUNTY IN A WAY THAT EVERYONE IN THE COUNTY WANTS IT TO GROW.
WE KNOW WE DON'T WANT TO BE ANYTHING BUT GOLAND AND YOU GUYS HAVE ALREADY MADE SOME REALLY TOUGH DECISIONS AND YOU'VE WORKED VERY CREATIVELY WITH PROJECT BRA AND THAT ROAD CONSTRUCTION THAT'S NEEDED.
THERE'S A, THERE'S A LOT THAT'S HAPPENING RIGHT NOW AND I FEEL LIKE THIS SCHOOL IS A PART, IT, I KNOW THIS SCHOOL IS A PART OF THAT IMPORTANT INFRASTRUCTURE DECISIONS BEING MADE FOR THE GOOD OF THIS COUNTY.
THE VOTE THAT OUR CITIZENS MADE PROVES THAT.
SO, AND THE DECISIONS AGAIN MADE TOWARDS PROJECT ROCKY, THOSE WERE, THOSE WERE NOT DONE LIGHTLY EITHER.
SO I THINK IT'S ALL PART OF THE WHOLE BIG PICTURE OF HOW WE SEE GLAND AND WE KNOW THAT SCHOOLS ARE A HUGE PART OF WHY COUNTY THRIVES OR COMMUNITY THRIVES.
[01:25:01]
REALLY, THIS PROJECT JUST, JUST IS PART OF THE BIG, LET'S NOT FORGET, UH, I DON'T KICK THE CAN DOWN THE ROAD ON THE DISCUSSION OF WHAT'S GONNA HAPPEN TO THE EXISTING HOUSTON ELEMENTARY SCHOOL.YEAH, THAT'S A BIG THAT YOU'RE ABSOLUTELY RIGHT.
UH, BECAUSE KAREN, WHEN YOU WERE TALKING EARLIER, I THOUGHT, I SEE WHERE THIS IS GOING CUZ YOU WERE MAKING THE POINT LOOKING AT ALL THE, THE FUTURE EXPENSES THERE THAT, YOU KNOW, WILL I PUT MORE MONEY INTO THAT? AND I'M SMILING AS A SCHOOL, SMILING TO MYSELF THINKING, OKAY, HERE YOU GO, COUNTY, HERE'S YOUR BUILDING.
DON'T BLOW ON IT TOO HARD CUZ IT MIGHT FALL OVER.
UM, SO, SO UH, THAT'S JUST WHAT HAPPENED LAST TIME.
WE'VE SEEN THIS MOVIE BEFORE WE'VE YEAH.
FOR SCHOOL, YOU KNOW, TO USE AN OFFICE SPACE IS DIFFERENT THAN SPACE.
BUT I, I KNEW WHAT YOU SAID AND I JUST WAS SMILING TO MYSELF BECAUSE IN THE EARLIER CONTEXT YOU JEREMY POINTED OUT THAT THERE'S GONNA BE COMPETITION FOR THIS BECAUSE IT'S, THERE'S A DESIRE.
SO I, BUT I THINK YOU WERE TALKING ABOUT THE WRESTLING ROOM AND THINGS LIKE THAT, RIGHT? BECAUSE IF WE FIND A WAY, WE WILL FIND A WAY, BUT ONCE WE FIND A WAY THROUGH THIS CLOSING THIS GAP, IT'S NOT TOO LONG.
WE'RE GONNA HAVE SOME DISCUSSIONS CUZ THESE OTHER THINGS ON THE C I P THEY'RE JUST AS IMPORTANT, YOU KNOW, OR THEY FEEL'S JUST AS IMPORTANT.
SO I KNOW THAT THAT C 1 43, THAT IS THAT, IS THAT THE TECH, THE BIG GIANT TECH ROOM IN THE HIGH SCHOOL THAT WAS YES SIR.
THAT'S, THAT'S GONNA BE AWESOME WHEN WE GET TO THAT, THAT'S GONNA BE VERY IMPACTFUL FOR THE SCHOOLS.
AND THAT'S BEEN YEARS, YOU KNOW, WE TALK ABOUT SINCE TWO, MIKE YOU WERE TALKING ABOUT WAITING SINCE 2007 AND WHEN WE GOT ON THE BOARD IN 2011, I WAS SO ENCOURAGED REPRESENTING DISTRICT THREE AND ALL THE BOARD MEMBERS WENT TO GOODSON ELEMENTARY SCHOOL AND THERE WAS A DISCUSSION WHERE ARE WE GONNA FOCUS FIRST? AND THIS WOULD'VE BEEN 2012.
UM, AND EVERYBODY, YOU REMEMBER THAT.
EVERYBODYS LIKE THE BOARD, THE THEN BOARD VISOR.
WE NEED TO FIX, WE NEED TO DO SOMETHING.
SO HERE WE ARE, HOW MANY YEARS LATER? THOUSAND 12.
UM, BUT I DO LET, LET'S BE VERY INTENTIONAL ABOUT TALKING CANDIDLY ABOUT WHAT WE'RE GONNA TALK
LIKE I CAUGHT THE WRESTLING ROOM.
I DON'T KNOW IF THERE'S OTHER THINGS ON THE CTE FRONT.
UM, BECAUSE LET'S, LET'S PROTECT OURSELVES FROM FACING ANOTHER SITUATION LIKE OH WE MADE SOME TOUGH DECISIONS AND THIS TIMING IS STILL NOT RIGHT TO GO WITH THE REST OF THE CAPITAL MARKETS, BUT THESE NEEDS ARE BECOMING GREATER AND THE SOLUTIONS ARE SO DON'T SEEM AS APPARENT.
AND MR. CARPENT, MR. CARPENTER AND I TALKED ABOUT CTE CENTER AND THE PRESCHOOL TOO AND HOW WE INVEST THE MONEY IN THAT FROM AN H V A C STANDPOINT NOW BEFORE WE ABANDON THAT SPACE CAUSE IT'S LIVING ALONG.
SO WE HAVE THOSE CONVERSATIONS QUITE FRANKLY.
JEREMY QUESTION, UM, JUST IN PUTTING EVERYTHING ON THE TABLE LOOKING, IS THERE AN OPTION THAT WOULD RESULT IN SOME FUNCTIONS OF THE ELEMENTARY SCHOOLS STAYING IN THE ELEMENTARY SCHOOL, PERHAPS PRE-K AND K, TURNING THAT INTO AN EARLY EDUCATION CENTER AND THEN DOWNSIZING THE NEEDS FOR AN ELEMENTARY SCHOOL? YEAH, I THINK THAT'S A GREAT QUESTION.
I THINK THE WAY THE BUILDING IS CURRENTLY DESIGNED, THAT WOULD BE DIFFICULT, UH, TO, TO SEPARATE THOSE CLASSROOMS OUT I THINK WOULD TAKE A LOT OF REDESIGN QUITE HONESTLY.
UM, AND THEN IF WE WERE TO USE THE CURRENT PRESCHOOL CENTER, IT WOULD TAKE A LOT OF RENOVATION.
WE'RE TALKING OF SIGNIFICANT RENOVATION, KNOCKING DOWN LAWS AND INVESTMENT IN MECHANICAL SYSTEMS. SO I DON'T KNOW IF THE SAVINGS, WE LOOK AT IT TOTALITY.
I DON'T KNOW IF THERE WOULD BE ANOTHER THERE WHERE MY QUESTION, WHERE ARE THE PRE PRE-K UH, STUDENTS HOUSE TODAY? WHERE, WHERE DO THEY GO TODAY? YEAH, CURRENTLY THEY'RE ON THE SECOND FLOOR OF THE CTE BUILDING.
THEY'RE, THEY'RE ALREADY THERE.
AND YOU KNOW, I, I'D ABOUT TO SHARE MANY PEOPLE WHO HAVE VISITED HAVE SEEN JUST HOW DIFFICULT THAT SITUATION IS FOR THOSE YOUNGSTERS AND STAFF.
IT WAS DESIGNED FOR A BUSINESS SETTING IN 1975 WHEN IT WAS USED AS A CENTER THERE THAT START, THAT START FROM THERE.
IT STARTS NOT OVER THERE, BUT WE HAVE THREE AND FOUR YEAR OLDS WITH DISABILITIES AND NON-DISABLED PEERS WHO ARE IN THERE, YOU KNOW, NEARLY 60 KIDS.
BUT ONCE YOU ABANDON THE SCHOOL AND MOVE TO THE NEW ELEMENTARY, FOR THOSE BE MOVED DOWN TO THE FIRST FLOOR.
IS THAT A, TO AVOID SOME OF THE DISABILITIES USED BY ST IT'S, SO WHAT'S THE PROBLEM,
IF YOU LEAVE WHEN THE SCHOOL IS EMPTY, WE'RE STILL GONNA HAVE TO SPEND A LOT OF MONEY ON
[01:30:01]
THAT BUILDING IN ORDER TO MAINTAIN IT.UM, IN ORDER TO KEEP IT IN A CONDITION WHERE WE CAN THEN MOVE INTO IT IN THE FUTURE AND SPEND MORE MONEY AND TURN IT INTO A FUTURE USE.
SO, SO THERE'S COST REGARDLESS WHAT WE DO.
BUT, BUT I WOULD SAY THAT CERTAINLY THAT AT LEAST IF YOU CAN DOWNSIZE THE FUTURE ELEMENTARY SCHOOL TO, TO A DEGREE THAT ALLOWS YOU TO PROVIDE THE SERVICES FOR THE ELEMENTARY SCHOOL AND THAT MAYBE AS EARLY, EARLY EDUCATION THAT MAY BRIDGE A GAP.
YEAH, WE'LL CERTAINLY PONDER THAT.
I THINK THE CURRENT DESIGN RIGHT NOW IS NOT MODULAR, ALLOWING US TO ELIMINATE FIVE CLASSROOMS JUST LIKE THAT.
SO PRETTY SIGNIFICANT REWARD CERTAINLY ALSO, ALSO PUT FORTH MENTIONED THE BOUNDARY ADJUSTMENTS.
SO NOW YOU BRING IN MORE K, PRE-K, K KIDS POTENTIALLY INTO THIS AREA AND THEN STAFF LIKE, OKAY, I'VE GOT MS. MCKAY AT THE NEW GES, WHERE'S MY ADMINISTRATION, MY STAFF, MY CENTRAL SERVICES AND SO FORTH.
NOW YOU HAVE REDUNDANCY AND THOSE ARE ONGOING COSTS, OVERHEAD COSTS THAT YOU HAVE TO CONSIDER AS WELL BACK STAFF GOING BACK AND FORTH.
CONTINUITY, RIGHT? THEY'RE JUST A NUMBER OF, NO, NO, NO.
JUST KIND OF THINKING ABOUT SOME OF THE ONE OTHER OBSERVA CAVEAT I GUESS THAT I THINK SAID IS PART OF THE FIGURE TO LOOKING AT OUR BASE IN PART ON CIP FUTURE CIP AS MS. LASKO POINTED OUT, IS NOT FUNDED RIGHT.
AND I THINK THAT'D BE REMISS IF I DIDN'T SAY THAT.
WE HAVE NO GUARANTEES THAT THEY WILL BE FUNDED.
UM, AS WE LOOK AT THE ECONOMY GOING RIGHT NOW, WE'RE, WE TEND TO MAKE AN ASSUMPTION THE NEXT FIVE YEARS WE'RE GONNA HAVE THIS MUCH MONEY EVERY YEAR AVAILABLE FOR CIPS.
BUT AT THIS POINT I DON'T KNOW THAT, THAT MY STAFF IS COMFORTABLE TO SAY THAT THAT MONEY IS ABSOLUTELY GONNA BE HERE BASED ON UNKNOWN EXPENSES AND UNKNOWN REVENUES.
SO I THINK THAT'S ALSO IMPORTANT THAT WE NOT COUNT CHICKEN BEFORE THEY'RE HATCHED, IF I MAY SAY THAT.
I THINK WILL SHOW THAT YOU UNDERESTIMATE THE SIZE OF A BUILDING CUT BACK JUST UP THE TRAILERS AND OF SCHOOLS.
SO BE PROACTIVE IN THINKING ABOUT THIS WEED KINDERGARTEN STUDENTS LAST YEAR WE WERE NOT EXPECT.
SO THAT IS A VARIABLE THAT I THINK NO ONE KNOWS THE ANSWER TO, BUT CUTTING BACK ON THE SIZE OF THE SCHOOL IS NOT GONNA HELP.
THERE'S BEEN SOME DISCUSSION AROUND TIMING ON WHEN, WHEN AND IF UNDER WHAT CONDITIONS WE CAN ACCESS THE ADDITIONAL FRIEND PROCEEDS THAT HAVE NOT BEEN ISSUED YET.
AND, AND A COUPLE THINGS ON THAT.
ONE IS WE DID THE 50 NOW AND 50 LATER TO DIVIDE THE PROJECTS UP.
WE HAVE PUBLIC SAFETY PROJECTS BUILDING NEW FIREHOUSES.
WE HAVE A COURTHOUSE THAT NEEDS TO BE REPLACED.
ALL THESE THINGS WERE IN THAT REFERENDUM AND WE AS A COUNTY DECIDED IT WOULD BE, I PRUDENT TO WATCH ALL THOSE PROJECTS AT ONCE.
SO PART OF THE RATIONALE BETWEEN BEHIND DOING THIS PORTION NOW AND A PORTION LATER IS THIS YEAR PROJECT MANAGEMENT AS WELL.
SO WE DIDN'T ANTICIPATE GOING BACK OUT UNTIL READY FOR ANOTHER BIG PROJECT GES GETS DONE AND THEN YOU START THE COURTHOUSE PROJECT OR A COUPLE OF FIREHOUSES, RIGHT? SO PART OF IT IS TIMING OF THE MARKETS.
PART OF IT IS JUST PROJECT MANAGEMENT.
IF YOU WANT TO KNOW WHAT THE TIMING OF WHERE INTEREST RATES ARE HEADED, THE BEST, THE BEST WAY TO FIGURE THAT OUT IS TO ASK THE PEOPLE THAT THAT SET THE RATE AND THE, THE FEDERAL RESERVE HAS WHAT THEY CALL OPEN MARKET COMMITTEE FMC AND THERE'S VOTING MEMBERS ON THE FMC AND THEY'RE THE ONES THAT ACTUALLY DECIDE WHETHER OR NOT RATES GO UP OR DOWN.
IF YOU LOOK AT WHAT THE FMC DOES, THEY PUBLISH WHAT THEY CALL A DOT PLOT.
EVERY, EVERY VOTING MEMBER ON THE F OMC PUTS A DOT PLOT FOR THE NEXT SEVERAL YEARS AND SAYS, THIS IS WHERE I THINK GRANTS ARE GOING AND THIS IS WHERE, HOW I PLAN TO VOTE IF I HAD TO VOTE TODAY SUBJECT TO CHANGE EVERY DAY, EVERY WEEK, EVERY MONTH YOU PULL UP THAT FIT DOT PLOT AND YOU'LL SEE THAT NEXT IN TWO WEEKS, MID-DECEMBER, THE MARKETS ARE PRICING IN AT 50 BASIS POINT OR HALF A PERCENT HIKE.
NOT AS THE LAST TIME THERE'S SOME DISCUSSION AROUND A THREE QUARTER POINT HIKE.
THE LAST FOUR TIMES THEY'VE DONE IT, IT'S BEEN THREE QUARTERS.
SO THERE'S SOME PATTERN THERE.
BUT IF YOU WANNA KNOW WHERE THE RATES ARE HEADED, JUST LOOK AT WHAT THE PEOPLE THAT SET THE RATE ARE TELLING YOU WHERE THEY'RE HEADED.
AND THEY'RE NOT SAYING THEY'RE COMING DOWN ANYTIME SOON.
THEY'RE CONTINUING TO GO UP NOW THEY'LL PAUSE AND LEAVE 'EM THERE FOR A WHILE, COULD BE A YEAR OR MORE.
AND THEN WHEN THEY START TO SAY THAT THEY'RE GONNA START TAKING RATES BACK DOWN, NOW YOU'RE COMING BACK DOWN THE UH, THE BACKSIDE OF THE INTEREST.
THAT'S PROBABLY A COUPLE YEARS OUT.
THAT'S PROBABLY WHEN GS IS WAS SUPPOSED TO BE FINISHED.
THAT'S PROBABLY WHEN WE GO BACK OUT FROM THE COURTHOUSE AND SOME FIREHOUSES.
THAT'S THE WAY WE HAD SET THIS WHOLE THING UP AS FAR AS TIMING GOES.
WE CAN REVISIT ALL OF THAT, BUT THAT'S KIND OF THE WAY THE BIG PICTURE, 30,000 FOOT, YOU KNOW,
[01:35:01]
STRATEGY WAS SET UP.UM, BUT IF YOU WANT KNOW WHERE RATES ARE HEADED AND WHAT THE TIMING IS AND WHEN THE CAPITAL MARKETS MIGHT OPEN BACK UP AGAIN AND ALL THAT, JUST LOOK AT THE VOTING MEMBERS, THE FMC AND WHAT THEY'RE TELLING YOU.
CAUSE THAT'S THE CLOSEST YOU CAN GET IS THE PEOPLE ACTUALLY SET THE RATE.
THE LAST THING HAPPENED, JUST REAL QUICK, WE'VE GOT ABOUT 25 MINUTES OR SO I WOULD PUT TO THE SCHOOL BOARD AND DR.
RE, WHAT DO YOU NEED COMING OUTTA THIS MEETING? WE'VE GOT A FEW MINUTES LEFT TO DISCUSS.
ARE THERE DATES, ARE THERE MILESTONES, ARE THERE DECISIONS, THE TIMING? COULD YOU KIND OF SHARE WITH US SO THAT WE USE IT TIME WE HAVE REMAINING FOR LET FLIP IT AROUND.
SEE, I THINK WHAT WE NEED OUT OF THIS, YOU GIVE US A LOT OF INFORMATION, BUT I I WANNA MAKE SURE WHAT WE NEED TO BE COMFORTABLE THAT WE'VE GOT THE VERY BEST NUMBER THAT THAT WHAT IS THE GAP THAT YOU NEED TO COVER AND, AND IT NEEDS, NEED TO BE SUPER COMFORTABLE WITH THAT IS THE BEST YOU CAN DO.
AND I'VE BEEN LOOKING AT PRIOR AGENDAS, PRIOR BOARD, OUR BOARD MEETING AGENDAS, LOOKING FOR SOMEWHERE IN THE PAST.
I THINK YOU HAD A NUMBER IN THERE WHERE YOU HAD, UM, VDOE HAD SOME FUNDS OUT THERE FOR BUILDING, YOU KNOW, WE'RE NOT THE ONLY SCHOOL DIVISION FACING THIS AND I THINK THE STATE FOLKS ARE, I UNDERSTAND THEY'RE, WE'LL SEE WHAT SOLY DOES IN THE NEXT BUDGET, BUT I THINK THERE'S GONNA BE SOME CONSTRUCTION MONEY OUT THERE.
BUT THE NUMBER THAT YOU ALL HAD BEFORE I REMEMBER ASKING SAID THAT'S NOT, IT WASN'T, IT WAS A, IT WASN'T A NUMBER FOR CONSTRUCTION, IT WAS IN THE MILLIONS BUT IN THE LOW MILLIONS.
BUT I DON'T, I DON'T HONESTLY REMEMBER AND I WAS TRYING TO FIND IT, I CAN'T FIND IT IN THE AGENDA MEETING.
SO LET'S LOOK, LET'S MAKE, WE REALLY NEED TO BE COMFORTABLE.
I, AS A BOARD MEMBER, WE REALLY NEED TO BE COMFORTABLE THAT Y'ALL HAVE PAIRED IT DOWN AND SLICE IT AND DICE IT EVERY WHICH WAY CAN.
AND THEN WHAT IS AT THE END OF THE DAY, WHAT'S A NUMBER THAT WE NEED TO WORK TOGETHER TO COVER? YEAH.
AND THEN WHAT ARE OUR OPTIONS? EXCUSE ME THEN WHAT ARE OUR OPTIONS BASED ON WHATEVER THAT NUMBER IS? WHAT DOES IT DO TO OUR TAX SERVICE? WHAT DOES IT DO TO OUR COST STUFF? I THINK WE'RE GONNA HAVE TO ROLL UP OUR THAT'S WHAT I'M SAYING, BUT NEED THAT NUMBER FIRST.
YEAH, BUT WE CAN'T MAKE ANY DECISION UNTIL WE UNDERSTAND THIS IS THE DELTA.
THIS IS THE DELTA HERE IN YALA.
THIS IS WHAT YOU'VE ALREADY APPROPRIATED.
SO IF YOU ADD ALL THIS UP, THAT'S THE DIFFERENTIAL BETWEEN WHAT YOU ALREADY APPROPRIATED AND THE TOTAL PROJECT COSTS.
WE FEEL GREAT ABOUT THE TOTAL PROJECT COSTS AS WE ARE HERE TODAY.
SINCE WE RECEIVED THE BIDS THROUGH THE HOLIDAYS, WE HAVE PAIRED $611,000 OFF.
YOU FEEL REALLY GOOD ABOUT THAT THERE.
IT'S LIKELY TO BE ADDITIONAL SAVINGS AND I JUST DON'T HAVE THAT NUMBER FROM YOU, BUT IT'S NOT GOING TO GO HIGHER THAN THIS DELTA RIGHT NOW.
THAT WILL BE A CONTRACTUAL COST THAT IF THE BOARD CHOOSES TO SIGN A CONTRACT, THAT WILL BE THE CONTRACT COST.
ANY SORT OF PROJECT SAVINGS THAT WE GET THROUGH CHANGE ORDERS, GREAT.
WE'LL PUT THAT TOWARDS FUTURE PROJECTS.
BUT NONE GUARANTEE THIS FIGURE COMES FROM THE MILLION 33 THAT WAS INITIALLY SOLD.
IT HAS NOT YET BEEN APPROPRIATED PLUS $5 MILLION OF BOND PREMIUM.
THE SUPERVISORS COULD APPROPRIATE THAT THE SCHOOL BOARD ASKED.
UM, AND THAT COULD BE, COULD BE DONE.
UH, THIS IS THE BOND INTEREST EARNINGS.
UM, SUPERVISORS COULD APPROPRIATE THAT TO US ONCE THE SCHOOL BOARD ASKS FOR THAT APPROPRIATION.
SO TO ME THAT IS PROBABLY AN AND THE MAGNITUDE OF IT ALL MAY BE AN EASIER DECISION.
NO, THESE DECISIONS ARE EASY BUT IT COULD BE AN EASIER DECISION.
THE BIG QUESTION IS, WHAT YOU DO HERE IS THE 8.4 MILLION.
HOW DO YOU CLOSE THE GAP THERE? IS IT CASH FUNDED? IS IT DONE THROUGH A FUTURE BOND SALE AND THEN THE COUNTY REIMBURSES THEMSELVES.
YOU GO OUT TO THE PUBLIC MARKET SOMEHOW AND, AND CLOSE THAT GAP.
BUT TO ME THAT IS PROBABLY THE MOST DIFFICULT IS HOW YOU, HOW YOU GET TO THAT 8, 8, 5 BASICAL EIGHT THAT YOU WERE REFERENC ST AS FOR 10.
DON'T DON'T ASK FOR, WE'RE NOT GONNA MEET, YOU'RE NOT GONNA GET ANY OF GRANT, ANY OF THE GRANT OR CONSTRUCTION MONEY.
I'M SORRY YOU ASKED THAT QUESTION.
YEAH, WE'VE WE'VE SCRUBBED THE QUALIFICATIONS OF ALL THAT AND WE JUST DON'T GET ENOUGH POINTS TO QUALIFY.
WHAT ARE WE DOING WRONG? MANAGE.
YOU GUYS ARE TOO, YEAH, WAS GOOD.
[01:40:02]
TO WHAT DEGREE COULD WE, WE WE ADJUST THAT? YEAH, WE FEEL CONFIDENT WE CAN SAVE AN ADDITIONAL $120,000 IN SITE COSTS TODAY.UH, THERE ARE ALSO ALLOWANCES THAT ARE IN THE SITE OF IF YOU MOVE X AMOUNT OF DIRT IT'S GONNA COST YOU Y JIM COULD YOU TALK A LITTLE BIT MORE ABOUT THE SITE ALLOWANCES THAT MAY REVEAL SOME POTENTIAL SAVINGS? THOSE ARE TO COVER SOME UNFORESEEN CONDITIONS.
SO WE, WE THINK BASED ON SOME OF THE UM, SURVEYS OUT THERE, WE MAY HAVE SOME, SOME SOIL ISSUES.
SO, SO WE HAVE SOME CONTINGENCY BUILT INTO UM, THE CONTRACT DOCUMENTS WHERE WE CAN DRAW FROM THOSE CONTINGENCY FUNDS IF WE FIND SOFT SOILS AND HAVE HABITAT IMPROVE SOILS FOR PARKING LOTS AND FROM THE BUILDING, UM, PATH, UM, FOUNDATIONS ALSO MR. CARPENT REALLY BE BETTER.
THERE WAS A LOT OF WORK DONE BY THE, BY DR.
THERE'S LIKE A SIGNIFICANT AMOUNT ALREADY SHAVED.
WE TRANSITIONED FROM THE INITIAL DESIGNS TO THE SECOND DESIGN.
WE SHAVED A LOT OFF OF THAT CUZ WE NARROWED THE FOOTPRINT AND ORIENTED THE BUILDING A LITTLE BIT DIFFERENTLY AND THERE WERE DEFINITELY SIX FIGURE SAVINGS THERE, MAYBE UP TO A MILLION MADE THAT TRANSITION LIST INSIGHT COST.
THAT 20% I SEE A HUGE CTE OPPORTUNITY.
I KNOW A HUGE CTE YOU CAN LEARN IT OFF A LOT FROM M SURE.
YOU'VE BEEN PRETTY QUIET BACK THEN.
SO I'D LIKE TO RAISE ONE MORE POINT TOO, AND THIS KIND OF GOES BACK TO WHAT YOU WERE SAYING AS FAR AS TIMING OUT WHAT'S BEEN ISSUED AND FIGURING OUT THE REST.
BUT SO 41.8 HAS BEEN ISSUE AND I DON'T, YOU PROBABLY KNOW A LOT MORE ABOUT THIS THAN I DO, BUT I DON'T THINK YOU CAN SIT ON IT FOR TOO LONG.
SO I MEAN THERE'S THE ARBITRAGE FACTOR, BUT ISN'T THERE A TIME LIMIT? EIGHT YEARS, 10 YEARS.
THAT'S KIND OF WHAT I WAS THINKING, BUT I TEXTED BARBARA, HOW LONG DO WE HAVE TO SPEND THIS? AND SHE SAID IDEALLY THREE YEARS, TWO DIFFERENT THINGS TO ISSUE THE ADDITIONAL BONDS FOR THE REFERENDUM.
YOU ABOUT EIGHT YEARS TO SPEND.
WHAT'S THE BONDS YOU'VE ALREADY SOLD IS A SHORTER PERIOD OF TIME TO HAVE ARBITRAGE ISSUES.
WHILE I'M NOT EXPERT, THAT'S WHERE YOU'RE LOOKING ABOUT HERE.
SO THAT BEING SAID, I MEAN IT DOESN'T HAVE TO BE TODAY, BUT I DO FEEL LIKE IT DOES NEED TO BE DECIDED UPON FAIRLY QUICKLY IF WE'RE GONNA MOVE FORWARD THIS.
SO WE AREN'T SITTING ON THIS FOR YEARS.
I THINK IF IT'S, CAUSE YOU ALSO ASKED ABOUT TIMING.
SO THE SCHOOL BOARDS WANNA MEET AFTER THIS TO DECIDE WHAT DIRECTION THEY WOULD LIKE TO DO AS FAR AS GO, AS FAR AS THE REQUEST OF THE SUPERVISORS FORMALLY, UH, OF COURSE YOU MEET NEXT WEEK.
THE SCHOOL BOARD IS SCHEDULED TO MEET DECEMBER THE 13TH WITH A REGULAR BOARD MEETING.
ALL THAT BEING DONE DECEMBER, IN A PERFECT WORLD DECISIONS MADE PRIOR TO DECEMBER 13TH WITH A CONTRACT SIGNED PRIOR TO THE HOLIDAY AND THEN YOU BEGIN THE GROUNDBREAKING PROCESS AFTER THAT.
WE KNOW THE BIDS ARE DUE FOR GOOD FOR 60 DAYS, SO WE CAN'T GO TOO FAR INTO JANUARY.
THERE IS A SCHEDULED IS DECEMBER, SO WE'LL GET A CHANCE FOR THAT.
UM, IS THAT THE LAST EIGHT LANE YOU'RE GONNA SPEND OR THE FIRST EIGHT? BEST JUST ASK WHEN THEY HEAR 18, 20 MONTHS, TWO YEARS, DIFFERENT BUDGET CYCLES.
I, YOU KNOW, BY THE TIME YOU DO PUNCH OUTS AND EVERYTHING, YOU PROBABLY, YOUR LAST PAYMENT IS DECEMBER, 2024.
JANUARY, 2025 MAYBE WHERE EVERYTHING'S CLOSED OUT.
I DON'T KNOW, JIM, WAS THAT, I THINK YOU NAILED IT.
UM, OKAY, WELL THAT JUST, I JUST WANT THROW IT OUT THERE THAT SOMEONE ASKING IS TIME ON OUR SIDE OR AGAINST US? DOLLARS ARE FUNGIBLE.
I GET, BUT UH, TO MISS LA'S POINT, I THINK IT ABSOLUTELY VALID.
YOU DON'T PULL THE TRADE AROUND THIS AND AND SAY LET'S, YOU KNOW, GO UNTIL YOU KNOW WHERE ALL THE FIGHTS GO.
YOU DON'T CRUSH YOUR FINGERS AND HOPE YOU CAN'T GET YOUR HOOK.
WELL MIXED UP WHERE YOU THINK IT WILL.
SO, SO TIMING WISE, EIGHT AND A HALF MILLION CLOSE
[01:45:01]
IN THE NEXT 30 DAYS WITH TWO BOARD MEETINGS IN BETWEEN MY GOAL IN LIFE.WELL FOLKS, ANYTHING ELSE? WE'RE WRAP.
SO WHEN WILL WE GET SOME IDEA? YOU'LL GIVE US SOME NUMBERS SOMETIME AFTER Y'ALL MEET TODAY.
WE HAVE A SAMPLE TRANSMITTAL LETTER THAT MAY OR MAY NOT BE MODIFIED BASED ON WHAT THE BOARD DECIDES AND GIVE THAT TO MR. CARPENTER BY THE END OF THE BUSINESS DAY AND THEN GET THAT AS PART OF YOUR OFFICIAL PACKING CONSIDERATION MOVING FORWARD.
SO THEN WHAT WE HAVE TO DO THEN IS LOOK AT OUR, WHAT, WHAT ALL THE COSTS.
SO PROBABLY ON OUR JANUARY AGENDA WE CAN DO IT SOONER IF YOU WANT.
SO IT'S DEFINITELY NOT ON DECEMBER 6TH.
UM, MR, ARE YOU ADJOURNING TO YOUR BOARD AND THEN, OR OR ARE YOU KEEPING IT OPEN FOR WE'RE TO MOVE.
WE'LL JUST RECESS TO, WE'LL RECESS A OKAY.
CAN COME OUT TO THE VILLAGE PLANT.
SO WE'RE GONNA BE SLACKERS WE'RE GONNA ADJOURN OUR BOARD TO THE DECEMBER 6TH, 1230, UH, SUPERVISORS AUDIT, FINANCE COMMITTEE MEETING AND OUR 2:00 PM REGULAR BUSINESS MEETING AND OUR DECEMBER 13TH TRANSPORTATION WORK SESSION.