um and I have there's two committee members that need to leave early today so um once we get to the agenda I'm going to ask to take some items out of order so we can make sure we get the voting items done as quickly as possible so okay uh good morning we're going to get moving here we'll start off with our attendance Lori venor please yes Lori vinor Alliance of delr Radcliff Brown representing technical advisory committee Barry Brown budget advisory committee George El Mo Economic Council Joseph Sanchez Chief Operating Officer David Porter representing construction oversight and Review Committee lean Evans School District Treasurer David Dolan Chief Facilities Management Heather Frederick Chief Financial Officer Gordon lofer CTA president Christ VAR Garcia Office of the general counsel Patricia Morales Office of the general counsel okay thank you everyone all right we uh don't have any members of the public in the room so I guess that's no public comments are public Patrick Franklin from the Urban League of Palm Beach County that's right we need to go to the we forgot virtual sorry about that and we have Paul Dumar virtual and Michelle Jacobs and we also have Mrs bril representing the school board and then a lot of Staff as well as Mr Franklin and M and Patrick Franklin's online okay yes perfect okay good we have a quorum we will move along public comments any public comments no one's in the room so we don't have any public comments all right items for approval I think we're going to re um realign the agenda here so we can get the voting items and the discussion items out of the way then we can go back for the other general meeting items uh anyone have any objection to doing it that way okay say done then we will reorder the agenda go ahead Le okay and I'm going to skip over the minutes I can bring those back at the next meeting uh but I do want go right into the presentation and give you a quick summary um just the sales tax continues to be coming in ahead of schedule we're at 127% of the projections at this time for this time frame so well ahead um we still expect that we will sunset a year early and the expenditures through March are 712 million purchase orders at 108 interest earnings continue to rise at 39 million um and this is the summary of the project budget report that that we built in for you and it does show there's 2.6 million of changes that we're going actually there's a total of 8 million 2.6 is funded with sales tax and then we have the other funds so we're going to skip right down into changes I do want to point out that the cost escalation update that you've asked to see um with the items included today we will have tapped into 7.8 million of the 190 million set aside so we're still well on target with where we'd expect it to be and the interest earnings can also help deal with any cost escalation as we move forward so the plan modifications there are a few this time and I'm going to go through the first three and then let Mr Dolan take over the rest so the first one is for Rivier um West Riviera Beach High Elementary School we're canceling that facility renewal project because we're rebuilding the school we're doing a modernization um it will start in June of 2024 as soon as school is out we've known this was coming I didn't bring it to the committee earlier because we knew it would exceed student station costs and there was a chance that we might need sales tax to help deal with that but the legislature has extended that um waiver for cost per student station through 2028 so we don't need to do sales tax um so the sales tax money that was earmarked for the facility renewal moves into sales tax reserves and we're borrowing to build a new school so that's PPM number 228 sorry these are a little out of order um 228 that was 226 228 we're consolidating the facility renewal for Inlet Grove and Lincoln Elementary School so the school board is um moving forward they've directed staff to move forward building a new River Beach High School and the high school is going to be located where Inlet Grove is currently located at so Inlet Grove is going to eventually be moving into Lincoln Elementary um which we will Remodel and add a new building to that site so Lincoln would move there and the students from Lincoln Elementary are are moving into three other area elementary schools that are very close by and they're all under enrolled um so the the plan for moving this which students to which school has not been finalized yet but we will be the the plan is to take the money earmark for Inlet Grove and transfer it over to Lincoln and spend it all on that site and the um Inlet Grove site will eventually that school be demolished and used for the New River Beach High School any questions on that one before I jump actually for those two those two are really I classify those as changes to the capital plan those are significant changes if not I'll jump to the next one which I'm excited about um all the facility renewals that were planned in 2025 and 2026 we have enough money in the sales tax Reserve in 2024 to move all those forward right now so rather than coming to you it's can't I'm I'm sorry to say this was selfish on my part I was tired of bringing you all agenda items constantly to accelerate funds can we just accelerate them all so that's what we're doing we're moving them all forward um that means the construction Department can go as quickly as possible to get all those projects done lot of our contract terms right so when you look at um the actual PPM documents and I just want to show you this one and then we'll move on for this particular one I have a summary it's the changing of the funding that we're moving all the projects up it's 89.6 million um part of it's coming from 25 and part of it's from 26 and the second and third page lists each individual school and how much is being moved forward for those schools so all the backup is included in your package so for example Westgate there was 2 million That was supposed to be funded in 25 we've moved that into 24 so the work can start right away so there's 55 million that was planned for 25 and 34 million that was planned for 26 total of 89 million and we've just done a swap with the sales tax Reserve so the sales tax Reserve is going down in 24 and then it's going up for 25 and 26 that's when we need it for cost escalation anyway so rather than having the money just sitting there we're applying it to the schools so are we I know construction Department probably can't get all of that work done even though you're moving it up in terms of the same time period so is that money sitting in something that's interest bearing it's exactly the same as was with sales tax Reserve so it is it earning interest until it gets spent it'll be earning interest and we're working with purchasing to try to expand the number of contract vendors that we have to try to get this drug work done I think there's a question Miss Jacobs yes hi thank you um for sharing this with us um my question to you is if we are accelerating these um projects which I think is the right thing to do when the sales tax ends I know right now you have on the ballot for um what what we're calling a renewal but it's really a new tax for the half penny again uh all the projects that were originally air marked for the first 10 years will then be completed and is there a new list of projects that you need to do with this Penny tax that's going to be coming beginning um you know when when it sunsets bot this year there is another project list and we're going to share that that's the last thing on the agenda today and if we have time we'll go through that with the committee thank you very much but this will finish up the projects that were on the 2016 sales tax um this is all the facility renewals so they would move forward it's not every project there's some construction projects that are still planned in the future years it's just picking up this is all the Deferred maintenance and what we want to get done as quickly as possible uh is the interest you're earning on the invested money balancing out with what we're seeing inflation to be or inflation is still a higher perc percentage in our interest B inflation is still higher and that really goes back to this cost escalation plan that we developed and talked to the committee about back in September and I'm happy to bring that back at another meeting to go through it again but we were able to shift some projects from sales tax into borrowing and take into account the extra money because the funds are coming in faster than expected and we expect it will be a little bit more than we originally anticipated that money is set aside in this cost escalation fund some of it is now coming in in FY 25 and 26 but we had a total of $190 million set aside to deal with deferred maintenance and that's the bucket we've only used 7.8 of so far but the cost escalation the farther we go the more we're seeing those prices come up so every time I hear of a price coming up I'm saying we've got to keep in mind there's a lot more projects coming so we're keeping that number low but we will be spending tapping into that money more and more as time goes on well that's another good reason for pulling the other projects up closer because the further out we go the higher they're going to cost yes that was one of the conversations we had if we move move them up we can get them done faster more vendors right so there any questions on these three ppms the these are the the big ones and then we've got a few more that Mr Dolan's going to go over do you want a motion to vote on those before we go further we can do them all this this is the rest of them um there's there's there's only five more so Mr Doan let you walk through these okay uh good morning everybody uh the first two Hagen Hagen Road and pamosa are both increases uh for waterproofing um which is basically painting uh we're working on again this this pretty much goes to what Miss Miss Evans is just talking about is this is something that we could pull we're pulling these these uh things forward because we have a term vendor who can do these the project right now so we're pulling additional monies uh forward on these two these are actually budget increases um and uh and and that's primarily because our cost for painting has have um continue to rise and we probably will have another increase on these two projects as they get ready to award the major construction contractor that's doing the rest of the Deferred work this is just the painting So or we call it waterproofing it's waterproofing seiling cocking everything on the outside of the building what we're trying to do is if there's pieces of the projects that we can move forward and get done we're trying to do that so I I did go back and said can we get an estimate for the total project that way we only bring it to ISO once and unfortunately it's too early yeah it's though both of them are too early we're still in the design process going through um through there to get to a GMP which is probably six months from now so we weren't able to put a number at least the number that I would want to ask the committee for with that expectation of uh being fully covered uh the next one Roosevelt Middle School is more of a substantial budgeting increase because it's more for it's basically the one that's that's at the at the point we're about to go to GMP and uh we have a number of mechanical scope items that were the costs were higher um EMS controls um and um and HVAC equipment um classroom um LED lighting again a slight increase in those and and interior finishes that's generally we're we're painting we're painting these buildings um which are desperately needed in this school so uh that's that's a $2.5 million increase to the project a question on that we're not doing any more deferring of Scopes no no we're picking up all Scopes now right yes and that's why we're coming to you on each and every one of these for if there's an item that we can't check off because we don't you know we don't we're not we're short on money we're absolutely coming to in now on these okay okay well do you want to touch on I was just going to say the first those three are funded from the sales tax reserves the next two are funded with comps but they're on the referendum list so we wanted to bring them to you so okay and um historic Roosevelt that's a project that's just getting underway now the Dem demolition we had our groundbreaking and our demolition is underway um the this increase was is intended to cover this the original budget when it was established early on in the design ended up being 5 .4 million short because of um a lot of our basic our primary Services mechanical electrical and plumbing Scopes um and so so we're asking for additional money on there but in addition um we had some remedial uh environmental remediation that had to go on inside that gym that we're restoring um plus uh during the course of the design or later in the design they came back to us and said oh you need more on-site parking which forced us to change our drainage um storage capacity and instead of doing above ground storage which is nice and easy uh these are now under underground storage much more costly so th those are the items that contributed to the additional cost question question on that I think just to refresh everybody's memory we're saying above budget and that budget was established what 2016 from a bunch of guesses wasn't a budget that was actually you know 40 line items and somebody actually estimated what things were going to cost uh that is correct that is above budget but and but I will acknowledge that some of these costs are uh costs we've we've encountered in the last several years with escalation um just price you know material shortages and such that's why I say the mechanical electrical Plumbing Scopes were changes from what happened it's probably two two and a half million dollars worth of the five um for uh just standard increases over the course of the last year or two okay and the other ones were unforeseeable in design so and then the last one is uh Windbrook is a$ 2.6 uh million dollar increase um I I'll I'll I'll I'll take the the hit for this one basically what this was was when we were organizing and planning our budgeting um for many of you may know we have a holding School a holding campus at Crestwood and when we were organizing and planning this that this holding school um was a holding school for maluca first and then it now it's a holding school for Windbrook when we were moving All the Monies around and making sure that we had rented Portables we had the right amount of rented Portables on that holding campus um we we uh we erently uh omitted um the second half the Windbrook a portion of the Windbrook Portables uh the cost for those so this is literally just an update to make sure that we accounted for th those uh those funds it it wasn't a design change it was strictly a budgetary Miss extending the lease so those temporary portables for another year till the Project's complete and those are funded from Capital contingency it's not sales tax and it's not borrowing either it's it's money that we would normally have set aside for emergencies and that's how we're paying for it um I have a question uh you went real fast into that last one I had a question about the historic Roosevelt High School at 70 years old um the remediation the environmental remediation was that like asbest or um yes it's everything it's asbest we even have um we're working through some of the remediation on lead in lead paint that's got to be taken care of before we ever get back in there floors okay thank you yeah and I will bet the asbestos is more flooring than it is you know uh piping covering that is correct uh vinyl asbest tile was used up through 70s and even in maybe the early 80s before it was completely eliminated so when you get a building that old and the tile floors are still down you go to scrape them up you got to remediate that with guys in Moon suits exactly um and haul it away correctly which is a lot more expensive than just throwing it in the dumpster so that's all the proposed plan modifications for this meeting are there any questions this George um Just for information South Florida is going to be under a a I'll say a rationing of aggregate the quaries are basically producing all they can and the demand is higher than they're able to so there's going to be a rationing or whatever you want to call it so just be aware of it it's coming okay thank you for letting me know I hadn't heard that I do appreciate that absolutely we we suffered that um about two years ago um on some of our projects because of the concrete shortage uh and it was primarily uh or one of the big things was uh shortage of aggregate so I've suspect they're G to continue wow okay well and even road base that's accur yeah um I'll motion to approve the ppms if you need a motion I do we do need a motion need a second second second by Mr Elmore any other discussion questions okay anyone objecting to approving these all right they're accepted okay um the next slide is just a list of things that we believe are coming in the next three months um we're going to skip over those but we bring those to you because we may very well come back to you for ratifications for these contract Awards so I'm going to skip over those um they're in your packet um we're going to skip over all the pictures um I do want to very quickly go over there's some questions about the upcoming referendum and we really hadn't talked to the committee about that so I want to do this and I know two people have to leave so I'm going to go as quick as I can um but stop me if you have questions because I don't want to go too fast but I want to Value everyone's time so the sales tax um we are appro asking for a new half penny tax that if approved by voters would allow the district to continue to collect a half penny totaling approximately $2 billion dollar um based on current collections it' be for security technology facilities and infrastructure the majority of it and it's half of it is going to be used for Planned maintenance um the tax we have right now is dealt with deferred maintenance and we we we've come to the conclusion there's no way we can keep up with maintenance without another Revenue Source um this new tax would begin after the current 1 cent tax sunsets and we're expecting that to happen early in December 20 um 2025 um this is the ballot language that was already approved by the school board and has been approved by the board of County Commissioners and will be on the ballot in November um and the big question everyone else is why do you need it do you still need it and the additional funding is needed to maintain the $30 million 30 million square ft and 9 billion of school buildings we've got to make sure that we're maintaining those so we don't end up with another backlog like we did this time um the existing funding streams just are not sufficient and there's no other funding options available for schools um the the capital outlay millage that used to be two Mills that dropped to um 1.5 so it's 25% less that would equate to about two $215 million a year as composed to the 200 million for the sales tax if we could go back to the 2 M Levy we wouldn't need the sales tax this is really getting us back to where we used to be at um we also are dealing with unfunded mandates from the legislature um we do have to share this all the money with Charter Schools now that's going to be an estimate of $600 million over the next 10 years and this is the referendum project list um and it does show half of it is for Planned maintenance and then the rest of it is going to be for school-based initiatives um security projects technology projects school buses and um about 200 million going to Charter Schools it's chaired with charters on a per student basis based on statute with that Charter School sharing do they have to validate what they're using the money for yes they would have to spend it in line with the referendum project list and that's something new we would be getting reports from the charters and bringing back to this committee that happens with the irck committee now it's reviewed their spending plan has to be approved because I think previously they were just handed out a check and there was no validation of what they had to use it for right their statute the capital outlay millage they have to follow a statute it's 10171 and 1013 um tells them exactly how they can spend the money um this would be based on the referendum project list and it would be based on the ballot language that the voters are approving so they would have to limit it it would have to be spent on planned maintenance security technology school buses so the same things we'd be spending it on okay and it would be coming to this committee for oversight so the current status of school board's already approved the ballot language the county approved it in April um we're working on scope validation of a facility condition assessment um we've done the preliminary work already and this is the validation that's going out and checking school by school putting their eyes on everything to validate every line item um we're undergoing a performance audit right now and I want to thank Mr Porter he was uh they asked to speak with somebody from the oversight committee um so he met with the Auditors last week for a little bit um so that's going on right now we're providing a lot of information to them and we expect they'll be here visiting us in May um and that poll process has to continue through the summer and then the general election is scheduled for November 5th 2024 again it would start in January 2026 you now have to take these items to the general election you can't take it closer to when we need the money so it's coming in early but it wouldn't start until 2026 and it would be after the current tax ends was the uh is the FCA assessment work being done with a consultant or in-house staff consultant it's Roth and Associates roths okay thank you there any questions on go ahead I have a couple questions well the first one you answered about would this committee be continued then to be looking you won't be looking for a new I see that um how how do you round it off when you buy something for a dollar I'm sorry said how does it get rounded off if it's going to be six and a half percent then oh they they actually they will round it to the nearest Penny well what's the nearest Penny up or down it would be up it would be up okay and um didn't did they consider maybe a extra one penny tax for five years instead of a half a penny tax schools can only do a half penny on their own we can't do a full Penny um the only way you can do a larger one is you're if you're doing something like the local government infrastructure tax that we're doing now and that's shared with the county and the cities the only option that's available for schools is a half penny tax okay so it would be six and a half percent right thank you so you go down saving a half a percent because we've been paying 7 % yes and I did hear that the the BCC did decide not to go ahead with another half penny so we just this is just the school board right okay anything else on that yeah if I remember correctly the half cent sales tax was only on the first 5,000 it's on the first $5,000 of any sale anything over five is go reverts back to six that's correct this will be the same way yes it will okay thank you okay yeah didn't understand that okay it's important when you're buying a car oh yeah um when I bought my last one I talked to the dealer and they said we don't know that it's calculated by our computer and the salesperson had no idea when I was asking that or you know getting a new roof or whatever you have to get 5,000 doesn't take much to get to that point anymore yeah those all those rules are all step by Statute and it's managed by Department of Revenue they just send the money to us um on a monthly basis I think in whatever promotional not promotional but informational material that goes out that should be stressed okay because I didn't understand that was going to be in effect as well until just now well it's in it's in effect with the tax we have now all sales taxes are configured that way okay or the discretionary taxes of discretionary tax the 6% is on all all of it but anything over is only for the first 5,000 okay any other questions about this for Leen okay uh what's up next um the next meeting is August 23rd um and then November 8th um I would like to go back on the sales taxt just one second and want to know if the committee is in support of doing that referendum because we won't be meeting again until August so I'm curious to see if the committee is in approves of that or if you need more information and we need to bring something back to you again anyone have objections or further questions whether the reference should go forward I think you need to have time to study what you just presented okay okay happy to do that do you need a vote of this committee um and would it wait till the next meeting and not be too late we have time to wait till the next meeting yeah all right then I would suggest we look over what's been presented come back to the next meeting with any questions and then uh we can go on the agenda to ask for a vote of this committee and if you have any other questions in the meantime please feel free to let us know okay until people have to leave you could probably go back up and do the sales tax report now I think they're anxious to leave Miss Jacobs I know had at 10 o'clock and you're you're on mute Miss Jacobs we can't hear I think she's in her meeting okay okay and I know Mr Elmore has to leave so I think we just need to ask for an adjournment okay uh all right our meeting's over so we are adjourned thank you thank you very much