[CALL TO ORDER ]
[00:00:03]
BOARD MEMBERS PRESENT IN THE BOARD AUDITORIUM ARE TRUSTEE CRUZ.
TRUSTEE BAKER AND TRUSTEE DEIGAARD.
I WOULD LIKE TO ASK EVERYONE TO PLEASE SILENCE ALL CELL PHONES.
TRUSTEE WADE HAS NOW JOINED US AS WELL.
OUR FIRST ORDER OF BUSINESS IS TO HEAR FROM SPEAKERS TO THE AGENDA ITEMS. HOWEVER, WE HAVE NO REGISTERED SPEAKERS FOR THIS MEETING.
SO WE WILL MOVE ON TO OUR WORKSHOP TOPIC.
[WORKSHOP TOPIC: CLOSEOUT OF 2012 BOND ]
THE CLOSE OUT OF THE 2012 BOND.CHIEF PAUL, YOU HAVE THE FLOOR.
THE AGENDA THAT I HAVE PROPOSED FOR TODAY IS TO CLOSE OUT THE 2012 BOND.
WE WANT TO TALK ABOUT THE ACTUAL PROGRAM, GIVE YOU AN UPDATE OF WHERE WE ARE ON THE BOND 2012 BOND.
LOOK AT SOME OF OUR SPECIALTY FUNDED PROJECTS.
LESSONS LEARNED AND CURRENT BUYING POWER.
TRUSTEE BLUEFORD-DANIELS HAS NOW JOINED US.
THANK YOU. SO AS YOU CAN SEE, THESE ARE THE PROJECTS THAT WERE PROPOSED IN THE 2012 BOND OFFERING.
THE ESTIMATED COST AND THE SCOPE OF THOSE PROJECTS.
AS I SAID BEFORE, WE ARE CLOSING OUT THE 2012 BOND.
THEY'RE DIVIDED INTO SEVERAL GROUPS.
SO YOU SEE THE FIRST OFFERING GROUP ONE.
THAT INCLUDED MANY OF OUR OR BASICALLY OUR HIGH SCHOOLS.
THE NEXT SLIDE REFLECTS GROUP TWO.
THE SECOND PROPOSAL AND GROUP OF PROJECTS.
AND YOU CAN STOP ME IF YOU WANT TO DISCUSS ANYTHING.
BUT THIS IS THE GROUP THREE, WHICH WERE WE HAD AN ELEMENTARY SCHOOL IN THERE, AS YOU CAN SEE.
SURE. WE WILL HAVE SOME TIME AT THAT.
QUESTION WE DID RECEIVE THIS IN AN EMAIL SO THAT MAYBE LEFT IT BACK UP FOR TRUSTEES TO HAVE IT AT THE TOP OF THEIR EMAIL TO BE ABLE TO SEE IT ON THEIR IPAD WOULD HELP.
LET'S JUST SCROLL ALL THE WAY BACK THROUGH.
I'M OKAY WITH THE PRESENTATION.
OKAY. SO THIS IS GROUP TWO AGAIN.
GROUP THREE. AND FINALLY, GROUP FOUR.
AND THEN THE NEXT SLIDE REFLECTS.
THE DISTRICT WIDE PROJECTS THAT INCLUDED OUR ATHLETIC IMPROVEMENTS LAND ACQUISITION FOR CONSTRUCTION, MIDDLE SCHOOL RESTROOM RENOVATIONS, DISTRICT WIDE TECHNOLOGY, AS WELL AS DISTRICT DISTRICT WIDE SAFETY AND SECURITY, AND THE DOLLAR AMOUNTS THAT WERE ESTIMATED AT THE TIME FOR THAT.
OVERALL, THE PROJECT, THE BOND WAS $1.89 BILLION FOR THE ENTIRE CAMPAIGN.
THESE ARE THE PROJECTS REFLECTED ON THE SLIDE THAT WERE COMPLETED.
WE WILL HAVE 100% COMPLETION IN JUNE OF 2023.
AND OF COURSE, THE BOND HIGH SCHOOLS, THE 2012 BOND PREDOMINANTLY FOCUSED ON HIGH SCHOOLS.
EXCLUSIVELY. AND THESE ARE KIND OF THE FEEL GOOD SLIDES OF THE COMPLETED PROJECTS.
[00:05:03]
I'M GOING HAVE TO TAKE THE CLICKER FROM YOU.AND THESE ARE THE 2012 BOND K-8 CAMPUSES.
OVERALL. THE BOND WAS 24 BOND WAS $2.137 BILLION.
WE HAD THIS CATEGORY OF SPECIALLY FUNDED CAMPUSES WHICH WERE FUNDED THROUGH VARIOUS SOURCES.
THIS IS MONEY USED FROM OR CARRIED OVER FROM THE 27 BOND.
THESE SCHOOLS WERE ALSO FUNDED PARTIALLY WITH 2012 BOND MONIES.
THESE ARE THE HURRICANE HARVEY SCHOOLS THAT WERE REBUILT FROM GENERAL FUND AND TOURISTS FUNDED ALSO.
NOW WE COME TO THE FINANCIAL UPDATE.
TRUSTEE GUIDRY HAS NOW JOINED US.
SO THESE ARE THE BIG CATEGORIES OF HOW THE MONEY WAS APPORTIONED.
OUR BALANCE TO DATE IS 14.56 MILLION REMAINING IN 2012 BOND FUNDS.
THE LIST NEXT SLIDE IS GOING TO TAKE AWAY FROM THAT SLIDE BECAUSE AT THIS TIME WE HAVE 8 MILLION DEDICATED FOR ROOF REPLACEMENTS AND THESE ARE EMERGENCY ROOF REPLACEMENTS.
THESE ARE ROOFS THAT ARE FIT THE CATEGORY OF CATASTROPHIC FAILURE.
I'M SORRY. THE NEXT ITEM REPRESENTS MASTER PLANNING FOR FUTURE BOND ISSUE.
IT IS THE PRACTICE TO SET ASIDE THIS MONEY SO THAT YOU CAN PREPARE FOR THE NEXT BOND AND NOT WAIT UNTIL THE BOND IS PASSED. THAT PUTS YOU TRULY BEHIND THE POWER CURVE.
SO YOU WANT TO GET IN FRONT OF THAT.
AND I HAVE ANOTHER SLIDE THAT WILL SPEAK TO THAT.
THESE ARE OTHER EMERGENCY PROJECTS THAT WE SET ASIDE MONEY FOR.
AND THEN ALWAYS IN ANY CONSTRUCTION SITUATION, YOU HAVE UNFORESEEN PROJECT COSTS.
AND SO FOR THE TOTAL PLANNED PROJECTS THAT WE WOULD LIKE TO DO, YOU KNOW, YOU SEE A NEGATIVE BALANCE ON THAT. AND WHAT THAT MEANS BASICALLY IS THOSE ARE PROJECTS THAT WE WOULD NOT BE ABLE TO DO.
YOU SEE AGAIN THE EXISTENT OR EXISTING FUND BALANCE IN THE BOND, AND THEN YOU SEE THE 16 MILLION OVER 16 MILLION FOR PLANNED PROJECTS.
AND AT THE END OF THE DAY, WE HAVE A DEFICIT OF 1.859.
AND AGAIN, THOSE ARE PROJECTS THAT WE WOULD NOT BE ABLE TO DO OR ARE NOT CURRENTLY ABLE TO DO.
AND WE GO INTO THE LESSONS LEARNED SLIDES.
SO THE TOP ONE IS COMMUNICATE WITH THE CITY OF HOUSTON TO MAKE SURE THAT WE MEET ALL CODE REQUIREMENTS BEFORE THE BUILDING PERMIT IS ACTUALLY ISSUED.
ANOTHER BIG BUCKET THAT WE HAVE TO LOOK AT IS TO MAKE SURE THAT WE HAVE THE ACADEMIC PROGRAM ARTICULATED LOCKED IN STONE PRIOR TO TRYING TO DESIGN IT.
[00:10:03]
SPEND ADDITIONAL MONEY TO CREATE A NEW PROGRAM.AND SO THAT'S TIME AGAIN AND MONEY.
SO WE JUST WANTED TO POINT THAT OUT.
AND WE ALSO HAVE TO MAKE SURE THAT WE ARE FISCALLY RESPONSIBLE IN CONTROLLING THE COST.
THE DESIGN AND EDUCATIONAL SPECIFICATIONS NEED TO BE NEED TO BE MORE CENTRALIZED.
AGAIN, IT'S THE CHANGES AND THE CHANGE ORDERS THAT ADD TO THE COST OF A PROJECT.
ON ONE OF THE PREVIOUS SLIDES, WHEN I TALKED ABOUT THE ESTIMATED COST, WE CAN'T STAY TRUE TO SOME OF THOSE THINGS WHEN WE HAVE THESE CONSTANT DESIGN CHANGES, COLOR CHANGES, PRINCIPAL TURNOVER THAT A NEW PRINCIPAL COMING IN WANTS A COMPLETELY DIFFERENT CONCEPT.
AND I THINK THAT WHAT HAS WORKED FOR THE DISTRICT IN THE PAST IS HAVING PROTOTYPE DESIGNS FOR EACH LEVEL OF SCHOOL. AND SO THAT HELPS US NOT ONLY FROM A SECURITY STANDPOINT, IT HELPS US FROM A MAINTENANCE STANDPOINT IN A SENSE THAT WHEN A PLUMBER GOES IN A MIDDLE SCHOOL, THEY HAVE AN EXPECTATION OF WHERE CERTAIN THINGS ARE.
WHEN A ELECTRICIAN GOES IN, THEY KNOW WHERE THE ELECTRICAL ELEMENTS ARE AND STUFF LIKE THAT.
SO AND IT ALSO HELPS US SAVE IN DESIGN COSTS.
AND NUMBER TWO, TO CHANGE OR TO SAVE COST.
THE MORE MONEY WE SAVE, THE MORE BUILDINGS WE CAN BUILD GOING FORWARD, EMBRACE AND INCORPORATE FUTURE READY TECHNOLOGIES, EQUIPMENT AND BUILDING SYSTEMS. SO THE GOAL IS TO GET IT RIGHT THE FIRST TIME.
AND SO WHETHER YOU'RE LOOKING AT TELECOMMUNICATIONS, YOU KNOW, WHERE YOU HAVE DEAD SPACE IN CERTAIN BUILDINGS, WHETHER YOU'RE LOOKING AT CERTAIN IS CHEAPER TO DO IT WHILE YOU'RE IN CONSTRUCTION, AS OPPOSED TO TRY TO GO BACK LATER AND RENOVATE IT.
YOU KNOW, IF YOU OWN A HOUSE, YOU KNOW THAT YOU WANT TO GET IT RIGHT.
PHASE COMPLETION CERTIFICATIONS TO ALLOW EARLY USE OF A FACILITY.
SO WE WANT TO TRY TO GET THE KIDS IN AS SOON AS POSSIBLE.
SO WE DON'T WANT TO MOVE INTO A SCHOOL OR INTO A NEW SCHOOL IN THE MIDDLE OF SPRING SEMESTER.
SO, YOU KNOW, I RECOMMEND I'VE DONE MOVE INS IN JANUARY AND OF COURSE THE POPULAR SUMMER MOVE ENDS.
AND SO WE WANT TO BE CONSISTENT WITH THAT.
SO AS YOU KNOW, AN EMERGENCY SITUATIONS ARE DIFFERENT, BUT WE WANT TO BE CONSISTENT SO WE WON'T DISRUPT OUR KIDS EDUCATIONAL EXPERIENCE AND DO NOT START CONSTRUCTION OR.
ISSUE A NOTICE TO PROCEED UNTIL A FULL PERMIT IS ISSUED.
THIS IS KIND OF HOW THE SAUSAGE IS MADE.
AND BUT THIS IS A REALLY IMPORTANT POINT HERE.
WE DON'T WANT TO HAVE TO BACK UP AND WAIT.
YOU KNOW, WE WANT TO MAKE SURE WE TAKE ADVANTAGE OF TIME AGAIN.
TIME IS MONEY, A TERM I LIKE TO USE TO SPEED TO MARKET, YOU KNOW.
NEXT SLIDE. POST CONSTRUCTION COORDINATE PROCESSES WITH FACILITIES AND OTHER DEPARTMENTS TO ENSURE PROPER DOCUMENTATION AND WARRANTIES MATCH THE NEEDS. SO IN OTHER WORDS, WE NEED TO HAVE A COLLABORATIVE UNDERSTANDING OF HOW WE'RE GOING TO MAKE SURE THAT OUR BUILDING IS PROTECTED.
AND DOCUMENTATION IS SO CRITICAL.
AND SO THERE HAS TO BE, YOU KNOW, IN OUR.
WE WANT TO HAVE A COMPLETE UNDERSTANDING OF WHAT'S REQUIRED.
HOW DO WE CONTROL OUR DOCUMENTS GOING FORWARD FOR OUR BUILDINGS?
[00:15:02]
KEEP IN MIND, OUR BUILDINGS WILL LAST IN 50 YEARS PLUS.WE HAVE OVER 35% OF OUR BUILDINGS CURRENTLY THAT ARE OVER 50 YEARS.
FINANCIAL MAINTAIN ACCOUNTING FORECASTS WITH ACTUAL EXPENDITURES THROUGHOUT THE PROJECT.
SO AND THIS IS HOW WE CAN PREVENT SOME OF THAT BY HAVING THESE COST CONTROLS.
AND THIS IS A REALLY IMPORTANT ONE.
INTERNAL AUDIT PLAN MUST COINCIDE WITH PROJECT CLOSE OUT PERIOD OF 120 DAYS.
WE CLOSE OUT A PROJECT IN 2025 AND 2030.
INTERNAL AUDIT SAYS, WELL, WE WANT TO AUDIT THAT PROGRAM.
BY THAT TIME IT'S VERY UNLIKELY THAT WE CAN HOLD THE CONTRACTOR, THE ENGINEER, THE ARCHITECT ACCOUNTABLE IF THERE IS A DISCREPANCY.
AND ADDITIONAL LESSONS LEARNED.
WE LEARNED A LOT FROM THE 2012.
OBVIOUSLY, CONSTRUCTION SERVICES SHOULD MEAN A PROJECT MANAGEMENT SYSTEM OR SOFTWARE SYSTEM THAT COINCIDES WITH OUR FINANCIAL SYSTEM AND SAP. IN OTHER WORDS, WE WANT TO MAKE SURE THAT THE SYSTEMS CAN TALK TO EACH OTHER.
WE MUST CREATE AN ENVIRONMENT FOR TRANSPARENCY WITH OUR PROJECTS.
IT'S NECESSARY TO PROVIDE OUR COMMUNITY THE INFORMATION IN A TIMELY MANNER SO THAT THEY UNDERSTAND KIND OF WHAT IS HAPPENING.
PART OF THAT PIECE IS COMMUNITY ENGAGEMENT.
YOU KNOW, THAT'S A HUGE PIECE TO MAKE SURE THAT WE COMMUNICATE WHERE THEY, YOU KNOW, MEET THEM AT A LEVEL WHERE THEY ARE AND MAKE SURE THAT OUR THE INTENT WE'RE TRYING TO COMMUNICATE IS ACTUALLY RECEIVED BY THE COMMUNITY.
IN OTHER WORDS, WE NEED TO BE TRANSPARENT AND REAL WITH OUR COMMUNITY.
COORDINATE STANDARD OPERATING PROCEDURES WITH ALL RELATED DEPARTMENTS.
AND THAT'S AN INTERNAL THING TO MAKE SURE THAT I'M WORKING IN LOCKSTEP WITH THE CFO.
HE YOU KNOW, HE HAS THE MONEY, AND THAT'S REALLY IMPORTANT.
THE MORE LEVELS AND BUREAUCRACY WE HAVE IN OUR PROJECTS, IT COST US MORE MONEY.
IN OTHER WORDS, IF WE WERE TO GO FOR IT WITH ANOTHER BOND, WE NEED TO MAKE SURE THAT WE HAVE PEOPLE IN-HOUSE TO MANAGE THAT AND HAVE THOSE PEOPLE THAT HAVE THE THE BACKGROUND TO DO IT.
AND THEN ANY PROGRAM MANAGEMENT FIRMS WE BRING ON, YOU KNOW, THERE'S AND THAT'S PART OF WHERE WE BUILD UP WHEN WE START BRINGING IN PROGRAM MANAGEMENT FIRMS WITH BOND APPROVAL TO MAKE SURE THAT WE HAVE THOSE SUBJECT MATTER EXPERTS WHEN WE NEED THEM.
CURRENT BUYING POWER. THIS IS A REALLY IMPORTANT SLIDE.
I'VE SAID SEVERAL TIMES DURING THE PRESENTATION, TIME IS MONEY.
SO THE CONVENTIONAL PROCESS IS YOU START A BOND PROCESS AFTER THE BOND VOTE AND OVER NOVEMBER 2023, START CONSTRUCTION IN SUMMER OF 2025 AND COMPLETE IN FALL OF 2026.
THERE'S $90 MILLION OF LOST BUYING POWER RIGHT THERE.
[00:20:01]
THE NEXT CATEGORY IS OUR CURRENT PROCESS.TIMELINE BEGAN PROCESSES IN SUMMER OF 2023, START CONSTRUCTION IN EARLY 2025 AND COMPLETE PROJECTS IN 2026.
THAT'S $68.7 MILLION OF LOST BUYING POWER.
THAT EQUATES TO ONE AND A HALF ELEMENTARY SCHOOLS.
THE NEXT CATEGORY IS THE IMPROVED PROCESS TIMELINE.
BEGIN THE PROCESSES OF BOND PROCESSES IN THE SPRING OF 2023.
START CONSTRUCTION IN THE FALL OF 2024.
COMPLETE PROJECTS IN EARLY 2026.
AND STILL WITH THAT, POTENTIALLY LOSING 52.5 MILLION OF LOSS BUYING POWER.
AND THAT EQUATES TO ELEMENTARY SCHOOL AND A QUARTER OF ELEMENTARY SCHOOL.
THE LAST SLIDE IS THE MAXIMIZED PROCESS TIMELINE.
BEGIN BOND PROCESSES IN SPRING OF 2023.
START CONSTRUCTION IN EARLY 2024 AND COMPLETE CONSTRUCTION IN SUMMER OF 2025.
THAT'S $15 MILLION OF LOST BUYING POWER.
SO FROM 2012 TO 2016, THAT PERIOD OF TIME BURNING MONEY.
AND SO IT IS OUR RESPONSIBILITY TO TRY TO MITIGATE THAT GOING FORWARD.
AND THAT'S WHERE YOU LOOK AT PROTOTYPE SCHOOLS.
THAT'S WHERE YOU LOOK AT DOING AS MUCH AS YOU CAN ON THE FRONT END BEFORE IT GOES TO ELECTION.
THERE'S NOT ANYTHING THAT WE'RE GOING TO DO THAT WE CAN'T STOP.
IF WE WERE TO GO OUT FOR A 2023 BOND.
BUT THE PREPARATION PIECE OF IT IS SO CRITICAL TO HAVING A SUCCESSFUL BOND PROGRAM.
AND SO WE'RE COMPETING FOR THE SAME RESOURCES.
AND THANK YOU FOR YOUR ATTENTION.
MR. HARRIS, DO YOU HAVE ANYTHING TO ADD? I HAVE NOT BEEN LOOKING FORWARD TO ANY QUESTIONS FROM THE BOARD.
WE ARE NOW READY FOR COMMENTS OR QUESTIONS FROM TRUSTEES.
PLEASE INDICATE YOUR INTEREST IN THE QUEUE.
WE WILL DO TWO ROUNDS OF 2 MINUTES EACH.
IF AN ADDITIONAL ROUND IS DESIRED, THAT CAN BE DONE WITH THE MOTION.
THANK YOU. CAN WE START AT SLIDE NINE? WHICH HIGH SCHOOLS DID NOT GET ANY KIND OF MONEY IN 2012.
[INAUDIBLE], I DON'T KNOW RIGHT NOW.
BUT, YOU KNOW, WE CAN DEFINITELY DETAIL THAT.
OKAY, THEN LET'S MOVE ON TO SLIDE SIX.
IT WAS FOR A FACE TO BE PUT ON JOAN'S HIGH SCHOOL.
JONES HIGH SCHOOL. JONES HIGH SCHOOL DOES NOT EVEN HAVE ITS OWN AIR CONDITIONING UNITS.
THEY'RE USING RENTED AIR CONDITIONING UNITS.
AND IF THERE'S THAT, WE HAVE ALL THE NOT ALL OF THIS MONEY LEFT OVER.
WAS THERE ANY PLANS FOR JONES TO BE GETTING ANY OF THIS MONEY BESIDES JUST FOR PLASTER? I KNOW WE HAD TO PUT A BIG FIGHT UP FOR WORTHING TO GET A WIN.
JONES DIDN'T GET ANYTHING BUT PLASTER ON THE BUILDING, SO I WAS WONDERING WITH OK, BECAUSE WHARTON ALSO HAS THAT BUILDING ON THE BACK THAT CANNOT BE OCCUPIED BECAUSE IT DIDN'T GET COMPLETED.
SO IN REGARDS TO THE TECHNICAL BUILDING I THINK IS WHAT AT WHARTON? THERE WERE NUMEROUS FIRE CODE VIOLATIONS.
WE'VE GOTTEN THAT UP AND SO IT WILL BE OCCUPIED SHORTLY.
OK OKAY, WE CAN GO BACK TO JONES.
THANK YOU. SINCE YOUR SCHOOL IS HAPPY, I JUST NEED TO MEET, MAKE MINE HAPPY, OKAY? BECAUSE THERE WAS NOTHING ELSE BESIDES THE FACT THAT THEY DON'T HAVE THEIR OWN AIR CONDITION AND THEY'RE USING RENTED CHILLERS.
THEY DON'T HAVE THE TENNIS COURT, ANY OF THE THINGS OUTSIDE.
THAT HAS BEEN NO RENOVATIONS RIGHT NOW.
I THINK WITH THE TOILETS WERE OVERRUNNING.
SO THEY WERE WORKING ON THAT SEWER SYSTEM.
[00:25:08]
CLASSROOMS. BUT IN THE MEANTIME, ILT HAS BEEN BUILT A HIGH SCHOOL IN THEIR ZONE.THE BLOCK I DON'T KNOW WHAT IT'S CALLED NOW WAS A HIGH SCHOOL THAT CHARTER PUT IN THEIR ZONE.
SO WERE THERE ANY MONIES LEFT TO FIX ANY PART OF JONES HIGH SCHOOL? SO AGAIN, THE ITEMS THAT I SHOWED YOU, THEY WERE DESIGNATED THESE ARE CATASTROPHIC FAILURES FOR THOSE PROJECTS LIKE ROOF FAILURES AND THAT SORT OF THING.
BUT REALLY, THESE MAJOR SYSTEMS THAT YOU'RE TALKING ABOUT.
WELL, WE CAN DEFINITELY HAVE A CONVERSATION ABOUT SPECIFICS ON IT AND WE HAVE MANY.
AND AND LITERALLY THE REASON WHY WE HAVE SOME OF THESE ISSUES AND WHY WE HAVE JONES IS THAT AGAIN, WE HAD A 2012 BOND. IT WAS FOCUSED PRIMARILY ON HIGH SCHOOLS, NOT A LOT OF DEFERRED MAINTENANCE IN THERE AT ALL.
THAT MONEY THAT WOULD REPLACE.
HVAC SYSTEMS AND PLUMBING INFRASTRUCTURE AND THOSE KIND OF THINGS.
AND WHEN WE BASICALLY AS A DISTRICT MISSED A WHOLE BOND CYCLE.
WELL, DR. ALLEN, I GOT HERE AS FAST AS I COULD, AND I APPRECIATE YOU DOWN THERE.
WE WOULD ASK ANY TIME I BRING UP ANYTHING, YOU ARE ALWAYS JOHNNY ON THE SPOT AND I APPRECIATE THAT.
TRUSTEE BAKER. AND THANK YOU FOR THAT PRESENTATION.
SUPERINTENDENT SO THAT'S ON THIS SAME PARTICULAR SLIDE WITH SHARPE'S TOWN IN NEUROMANCER.
UP, DOWN. LET'S GO TO SLIDE 25.
[INAUDIBLE]. OKAY, SO HAVE WE IMPROVE, YOU KNOW, THE WAY WE COMMUNICATE WITH THE CITY OF HOUSTON WITH REGARD TO THOSE PERMITS AND SO FORTH? BECAUSE THAT'S THE DEPARTMENT I CAME FROM, THE DEPARTMENT OF ADMINISTRATION AND REGULATORY AFFAIRS, AND I KNOW HOW YOU COULD RUN INTO, YOU KNOW, SOME STOPPAGES WHEN YOU'RE TRYING TO GET THOSE PERMITS.
SO THERE'S THERE'S ALWAYS ROOM FOR IMPROVEMENT IN TERMS OF AND MRS. PAUL TALKED ABOUT THE IDEA OF MAKING SURE THAT WE COINCIDE WITH EACH PROJECT AND MAKING SURE THAT WE DON'T LOSE TIME PER MINUTE IS A BIG PART OF THAT. SO WE DEFINITELY WANT TO CONTINUE TO WORK WITH THE CITY OF HOUSTON TO ENSURE THAT WE ARE AS EFFICIENT AS POSSIBLE, THAT WHEN WE FINISH ONE PORTION OF THE PROJECT AND IT NEEDS ADDITIONAL PERMITTING, THAT WE'RE ON TOP OF IT AND THEY'RE FINISHING THEIR WORK IN TERMS OF PERMITTING SO THAT WE CAN MOVE FORWARD WITH THE NEXT PORTION OF THE PROJECT.
SO IT'S AN ONGOING PROCESS AND WE DEFINITELY WILL CONTINUE TO WORK WITH THE CITY ON THAT WORK.
MY QUESTION WAS WITH REGARDS TO CATASTROPHIC INSURANCE.
WHEN WE LOOK AT WARRANTIES AND SO FORTH, HOW ARE WE DOING WITH OUR CATASTROPHIC INSURANCE IN THE CASE OF EMERGENCY WEATHER EMERGENCIES AND THINGS LIKE THAT? HAVE WE BEEFED UP WITH THAT AREA IN THE AREA OF INSURANCE COVERAGE? I DON'T KNOW THAT THE COVERAGE HAS HAS CHANGED SIGNIFICANTLY.
WE'VE HAD SOME REPLACEMENT SCHOOLS SINCE THAT TIME.
BUT MY ESTIMATION IS THAT WE HAVE THE NECESSARY COVERAGE THAT WE NEED.
AND THAT'S A REFLECTION OF WHAT OCCURRED IN HARVEY.
[00:30:04]
BEING A FORMER WE IN THE CURRENT INSURANCE ADJUSTER, I KNOW THAT WILL BE KEY.AND ON SLIDE 28, PROJECT MANAGEMENT QUESTION, OUR PROJECT MANAGEMENT.
SO ARE WE WHERE WE NEED TO BE IN TERMS OF OUR STAFF AND WITH REGARDS TO MANAGING THESE PROJECTS? BECAUSE WHEN WE LOOKED AT YOUR OTHER SLIDE.
SO WE HAVE A CORE STAFF THAT WE KEEP THAT WE HAVE ON AS A DISTRICT EMPLOYEES THE PROGRAM AND IT'S NORMALLY A PRETTY THIN STAFF AND THEN WE MOVE TO A BOND.
WHEN YOU MOVE TO A BOND, YOU RELY ON OUTSIDE RESOURCES, WHICH ARE THE PROGRAM MANAGEMENT FIRMS ALSO TO HELP US MANAGE THE NUMBER OF PROJECTS THAT WE HAVE, WHICH WILL BE PLANNING THIS.
IF WE WERE TO HAVE A PROPOSED BOND IN THE FUTURE, WE REALLY NEED TO FOCUS ON THE DEFERRED MAINTENANCE PIECE OF IT, WHICH NOT ONLY, YOU KNOW, NEW CONSTRUCTION EVERYBODY LOVES.
BUT REALLY THE HUGE PART THAT WE HAVE TO FOCUS ON ARE THE THINGS THAT TRUSTEE ALLEN POINTED OUT, THOSE INFRASTRUCTURE THINGS THAT WE HAVEN'T REALLY ADDRESSED IN A NUMBER OF YEARS.
AND SO FOR THAT, WE'RE GOING TO HAVE TO HAVE A SUPPLEMENTAL HELP, WHICH ARE THE PROGRAM MANAGEMENT FIRMS. OKAY. ALSO, AND ALSO ANOTHER QUESTION REGARDS TO SECURITY.
I KNOW YOU MENTIONED THAT YOU DO CONSIDER IT SECURITY IN YOUR BUILDINGS AND SO FORTH.
YOU KNOW, IN LIEU OF RECENT EVENTS, DOES THAT COUNT? HAVE WE RECONSIDERED HOW WE'RE GOING TO APPROACH OUR SECURITY? IT'S ABSOLUTELY BEING TAKEN INTO CONSIDERATION AS WE LOOK AT A POTENTIAL FUTURE BOND.
SO BUT BOND WILL BE A MAJOR PORTION OF THAT IF THE BOARD CHOOSES TO TO MOVE FORWARD WITH A BOND.
THANK YOU. GOT TO GET USED TO THIS SIDE.
GOT ALL THESE COLORS OVER HERE TOGETHER TO PACK ON PACKAGE PAGE SEVEN, THE LAND ACQUISITION.
PARTICULARLY WHEN YOU TALKED ABOUT THE LAND ACQUISITION WE WILL HAVE, ARE THERE ANY OPPORTUNITIES THAT WE'LL HAVE TO NECESSARILY REQUIRE MORE LAND OR WE COULD BE REQUIRING MORE LAND WITH A FUTURE BOND? SO THIS REFLECTS THE PAST BOND OK GOING FORWARD, WE WOULD HAVE TO ASSESS THAT BASED ON, YOU KNOW, THE BOARD'S APPROVAL OF MOVING FORWARD WITH ANOTHER BOND.
BUT WE HAVE MANY SITES THAT ARE VERY SMALL, AND SO WE DEFINITELY HAVE TO TAKE THAT INTO CONSIDERATION, ESPECIALLY IF WE'RE TALKING ABOUT EXPANDING PROGRAMS AND SO FORTH.
SO YEAH, IT WOULD BE REMISS OF US NOT TO HAVE A LINE ITEM FOR ACQUIRING LAND AND APPRECIATE THAT BECAUSE OBVIOUSLY I'M NOT GOING TO GO OVER THERE AND GO THROUGH THE DETAILS LIKE DR.
ALLEN BECAUSE WE'VE GOT A LOT OF THOSE ISSUES WITH A LOT OF THE SCHOOLS, AS YOU ALL KNOW, JUST FROM VISITING THE CAMPUSES THAT WERE NOT COMPLETE AT 12 BOND AND I WAS AROUND ON THAT SIDE, YOU KNOW, AS AN ADVOCATE WHEN THAT BOND WAS PASSED IN 12 AND IT WAS PROMOTED AS A BOND FOR HIGH SCHOOL, OBVIOUSLY. AND IT DID NOT ADDRESS JUST HIGH SCHOOL.
I MEAN, JUST HIGH SCHOOL. IT WENT VARIOUS OTHER PLACES.
AND YOU MENTIONED ABOUT 35% OF THE BUILDINGS ARE 50 OVER 50 YEARS OLD RIGHT NOW.
CAN YOU GIVE ME A LISTING OF THOSE ONES THAT ARE OVER THAT 35%? I'D LIKE TO SEE THOSE.
I'M SURE WE ALL HAVE HAVE SOME OLDER SCHOOLS IN OUR DISTRICT.
[00:35:08]
THAT. AND IN THE 12 BOND, A LOT OF THAT WASN'T DONE.I KNOW WE TALKED ABOUT THAT CONTINUOUSLY, ABOUT GETTING THE WORD OUT.
THANK YOU FOR THIS PRESENTATION, MR. HOWSON. OF COURSE, MS. PAUL. I WANT TO KIND OF MOVE BACKWARDS.
I UNDERSTAND YOU SAID THAT THESE THE ROOFS THAT HAVE BEEN SET OUT TO BE REPLACED OR MAJOR REPAIRS ARE OF CATASTROPHE NATURE.
SPEAKING OF FOR FISCAL RESPONSIBILITY, ARE THESE ARE ANY OF THESE SCHOOLS POTENTIALLY SUBJECT TO BE A NEW BUILD? AND IS THIS SOMETHING THAT PERHAPS WE COULD UTILIZE TO BUILDINGS, MOVE CHILDREN INTO OUR BUILDINGS INSTEAD OF REPLACING, YOU KNOW, $1,000,000 ROOF ON A BUILDING THAT WE POTENTIALLY WILL BE REBUILDING COMPLETELY IN A NEW BOND IF IT PASSES? THAT IS A VERY GOOD QUESTION.
AND SO AND THOSE ARE SOME OF THE QUESTIONS THAT I ASKED MY STAFF.
MY UNDERSTANDING IS NONE OF THESE FIT THAT CATEGORY.
BUT THE OTHER PART AND HE GAVE ME THE LOOK, THIS IS ANDREAS PEOPLES.
HE'S OUR EXECUTIVE OFFICER OVER CONSTRUCTION.
YOU KNOW, WE PUT AS MUCH DUCT TAPE ON THEM AS POSSIBLE.
THE REASON I'M ASKING. AND EXCUSE ME IS BECAUSE I UNDERSTAND THAT.
AND I KNOW HOBIE HAS TO BE IN A CATASTROPHE NATURE, BUT IT'S NOT ON THE LIST.
SO IF WE'RE NOT GOING TO BE MOVING THESE CHILDREN TO THE BUILDINGS, WHICH IS SOMETHING THAT I SUGGEST, GET THEM OUT OF THOSE BUILDINGS AND LET'S DECIDE WHICH WHICH MIDDLE ELEMENTARY SCHOOLS WILL BE REPLACED SO THAT WE WON'T BE UTILIZING THESE FUNDS.
WATER JUST POURING IN ON HOBIE.
AND THEY HAVE REPLACED AND REPAIRED AND YOU KNOW, BUT AND I WAS THINKING THAT PERHAPS THEY WERE NOT BEING CONSIDERED BECAUSE THIS IS A SCHOOL THAT HOPEFULLY PRAY TO GOD.
PRICE EVERYTHING IS ON ME TO GET US A BOND AND GET THIS SCHOOL REPLACED.
SO THIS ISN'T A REFLECTION OF WHAT WOULD BE FOR A 2023 BOND.
HOBIE VERY WELL COULD BE FAR UP ON THE LIST, BUT THIS IS JUST A REFLECTION OF WHAT WAS IN 2012.
AND AND I'M SORRY, I KNOW I'M OUT OF TIME, BUT I JUST NEED TO ASK A FOLLOW UP QUESTION.
SO ALL OF THESE NEW ROOFS ARE ROOFS FROM 2012? NO, MA'AM. SO, NO, MA'AM, THE EIGHT ROOFS THAT WE'RE REPLACING.
SO WHAT I WOULD SAY IS THE EIGHT THAT ARE REFLECTED HERE ARE THE MOST CRITICAL BASED ON THE FACILITY CONDITION ASSESSMENT THAT WAS DONE BY RICE AND GARDNER.
AND SO EVEN THOUGH HOBIE HAS A LOT OF NEEDS, THAT'S CODE
[00:40:07]
WORD FOR A NEW SCHOOL.SO WE'LL HAVE WE'LL START THAT CONVERSATION, I THINK, NEXT MONTH.
TRUSTEE DEIGAARD THANK YOU, SUPERINTENDENT HOUSE AND CHIEF PAUL.
AND I KNOW THAT YOU HAVE COME IN TO A SITUATION THAT YOU DIDN'T CREATE, BUT HERE WE ARE.
AND I APPRECIATE YOU BEING HERE AND ASSESSING WHERE WE'RE AT.
AND WHEN I WAS EARLY ON, WHEN I WAS ON THE BOARD, I REMEMBER HAVING A SIT DOWN WITH RICE.
GARDNER, CHIEF OPERATING OFFICER I FORGET WHO ELSE WAS GLEN.
YOU ALL HAVE AN INVENTORY OF THAT.
SO IT IS VERY MUCH APPRECIATED AND I THINK IT'S A GOOD FIRST NEXT STEP FOR US.
SO I THINK THAT MIGHT BE HELPFUL FOR US.
WAS ANY OF THIS BOND MONEY AFFECTED BY THE FBI INVESTIGATION FINDINGS? NOT THAT I'M AWARE OF.
WE WHEN WE GO INTO CLOSED SESSION LATER, CAN WE ASK THAT QUESTION AGAIN, PLEASE? YES. AND THEN MY NEXT QUESTION IS, HAVE WE PAID FOR THIS WHOLE BOND ALREADY? GLENN, YOU WANT TO COME ON OVER AND JOIN US? MY AFTERNOON, LADIES, AND I'M THAT.
HAVE WE PAID FOR THE WHOLE THING? HOW MUCH IS LEFT? HOW MUCH DO WE PAY IN PRINCIPLE? HOW MUCH IN INTEREST IS ALL IN MY ONE QUESTION? YEAH. SO RIGHT NOW, AS FOR THE BOND, WE'VE STILL GOT ABOUT $3.2 BILLION OUTSTANDING.
BUT MILLION OR BILLION? BILLION, BILLION.
ALL BONDED DEBT IS ABOUT STILL ABOUT $3 BILLION.
THAT'S ALL. BOND WITH A B? YES. HOW MUCH SHOULD WE BORROW TO BEGIN WITH? WELL, I MEAN, WE ALSO HAD A 2007 BOND.
WE'RE STILL PAYING ON THE 2007 BOND AS WELL.
OKAY. SO WE HAVE MULTIPLE BONDS OUT THERE THAT WE'RE PAYING OFF.
SO THE TOTAL DEBT RIGHT NOW IS ABOUT $3.2 BILLION ON THE BOND DEBT.
I ASKED A WHOLE BUNCH OF QUESTIONS.
YEAH. SO THERE'S ABOUT $2.3 BILLION IN PRINCIPAL AND ABOUT $850 IN INTEREST STILL REMAINING.
950 SORRY. 915 INTEREST AND THEN ABOUT $2.3 BILLION IN PRINCIPAL.
HOW MUCH SHOULD WE BORROW? HOW MUCH SHOULD WE BORROW? MM HMM. SO RIGHT NOW, THE PRINCIPAL IS 4.5.
SORRY. I'M ADDING THE TOTAL IN THERE.
THE TOTAL IS 2.3 IN PRINCIPLE THAT WE OWE, WE BORROWED.
THAT'S JUST THE PRINT. THAT'S JUST THE PRINCIPLE.
CORRECT. AND THEN 874 IN INTEREST.
IT WILL BE PAID. IT WOULD BE PAID.
WE OWED 2.3 BILLION IN PRINCIPAL, WE OWED 9.50.
I DON'T HAVE WITH ME WHAT WE'VE PAID ALREADY.
THAT'S JUST THE BASIC PRINCIPLE.
IF WE DID NOTHING ELSE TODAY AND WE JUST CONTINUE TO JUST PAY OUR DEBT OVER THE NEXT.
20 YEARS, THEN WE WOULD PAY AN ADDITIONAL $912 MILLION IN PRINCIPAL AND INTEREST.
[00:45:04]
THANK YOU. TRUSTEE DEIGAARD.TRUSTEE CRUZ. THANK YOU, SUPERINTENDENT HOUSE AND CHIEF PAUL THIS HAS BEEN JUST APPRECIATE THE TRANSPARENCY IN LETTING THE PUBLIC KNOW AND OF COURSE THE TRUSTEES ON LESSONS LEARNED AND REALIZE THAT THIS WAS SOMETHING YOU INHERITED.
SO I HAVE A QUESTION ON SLIDE 28.
AND I'M GLAD TO SEE THE IMPLEMENTATION OF SYSTEMS AND SOFTWARE.
HOWEVER, I KNOW THIS ALL COMES WITH A COST.
IS THE COST FOR THESE THESE PROGRAMS AND SOFTWARE, IS THAT GOING TO BE INCLUDED AS PART OF THE BOND OR IS THAT LIKE COMING OUT OF OUR CURRENT BUDGET? THAT WOULD BE AN EXPENSE TO THE BOND.
THAT'S WHAT I THOUGHT. I JUST WANTED TO MAKE SURE.
SO THIS WASN'T DONE IN THE PAST? WELL, I THINK WHAT THE EMPHASIS IS ON IS HAVING A REALLY GOOD RELATIONSHIP WITH THE CITY OF HOUSTON TO MAKE SURE THAT WE COMMUNICATE VERY CLOSELY WITH THEM SO THAT WE ARE ABLE TO MAKE SURE WE'RE FOLLOWING THE CODES AND MAKE SURE THAT WE GET OUR BUILDING PERMITS. AS YOU KNOW, WE NEED THEM.
AND SO IT PROBABLY A BETTER WAY TO PHRASE IT WOULD HAVE BEEN TO MAKE SURE THAT WE HAVE A VERY SOUND AND GOOD RELATIONSHIP WITH THE CITY OF HOUSTON.
THANK YOU. BECAUSE I IMAGINE THAT COULD DELAY CONSTRUCTION.
AND SO THE COMPLETION OF THIS ONE, I MEAN, FROM THE TIME IT WAS APPROVED TO FINISH IS WHAT, 11 YEARS? WHAT IS THE TYPICAL TIMELINE OF COMPLETION FOR AN URBAN BOND? SO IT REALLY IT REALLY DEPENDS ON WHAT THE MARKET IS.
AND SO I WAS IN DALLAS AT THE TIME WHEN WHEN Y'ALL STARTED YOUR BOND UP.
AND SO THE PRICE I RECEIVED IN DALLAS ON AN ELEMENTARY SCHOOL WAS REMARKABLY DIFFERENT FROM WHAT YOU ALL RECEIVED BECAUSE OF THAT TIMELINE OR THE TIME Y'ALL WENT OUT TO MARKET AND TO SELL YOUR BONDS.
AND SO WHAT'S IMPORTANT IS THAT.
YOU BUILD COST ESCALATION INTO YOUR BOND.
AND SO WHEN I WAS IN DALLAS, WE WE DID THAT.
SO WE WERE ABLE TO DEAL WITH WHEN THE MARKET WAS HIGH OR COST OF SERVICES WERE HIGH, WE HAD THE MONEY AND WHEN IT DROPPED, WE HAD THE YOU KNOW, WE HAD THAT CUSHION.
AND SO BUT IT'S ALWAYS SPEED TO MARKET.
YOU KNOW, WE'RE A LARGE SCHOOL DISTRICT.
A LOT OF PEOPLE WILL WANT TO DO BUSINESS WITH US.
AND SO IT'S IMPORTANT THAT, YOU KNOW, ONCE IF WE GO FORWARD, IF THE BOARD APPROVES A FUTURE BOND THAT, YOU KNOW, WE ARE VERY AGGRESSIVE IN STARTING THE PROJECTS AND GETTING THEM TO THE MARKET AND GETTING THE BEST QUALIFIED CONTRACTORS AND ARCHITECTS AND FIRMS TO HELP US.
AND A FOLLOW UP QUESTION ON THIS.
THE DEBT, OUR CURRENT DEBT, HOW DO WE COMPARE TO OTHER LARGE URBAN DISTRICTS IN TERMS OF LIKE THE AMOUNT OF BOND DEBT WE HAVE? AND I DON'T KNOW IF YOU KNOW THAT OFF THE TOP HEAD.
I DON'T I'D HAVE TO GET THAT FOR YOU.
YEAH, I WOULD LIKE TO SEE THAT BECAUSE I KNOW IT IS.
RIGHT. TO GET OUR INFRASTRUCTURE WHERE IT NEEDS TO BE.
THANK YOU AS AN ALL MY QUESTIONS FOR NOW.
THANK YOU SO MUCH. SO, SUPERINTENDENT.
SO I KNOW WHEN WE DO, WHEN YOU GO OUT FOR PERMIT AND CODE, YOU CAN DO IT'S BEST PRACTICE TO LUMP PROJECTS ALL IN THE SAME BATCH SO THAT THE CITY STAYS FOCUSED ON.
THAT PARTICULAR MATCH ALL IN ONE TIME.
I DON'T KNOW IF THAT'S THE CASE, BUT THAT'S WHAT I UNDERSTAND.
[00:50:07]
OF STYLE, THAT WILL HELP LUMP THOSE CATEGORIES A LITTLE BETTER FOR THE PROCESSING.I THINK MY PRACTICE AND MY PRACTICE HAS BEEN THAT WE OBVIOUSLY DO PROJECTS IN PHASES AND SO WE HAVE TO MAKE SURE THAT WE HAVE THE APPROPRIATE AMOUNT OF PROJECTS THAT WE CAN EFFECTIVELY MANAGE.
AND SO I DON'T KNOW IN TERMS OF WHAT HAS BEEN DONE IN THE PAST, BUT, YOU KNOW, I THINK IT HAS TO BE A NICE BALANCE BETWEEN NEW CONSTRUCTION AND DEFERRED MAINTENANCE.
YOU KNOW, NOT SO MUCH WORRIED ABOUT NEW CONSTRUCTION, BUT INSTEAD DEFERRED MAINTENANCE BECAUSE THERE WILL BE A LOT MORE PROJECTS OF THAT, HUNDREDS OF THEM.
THE INTENT ALWAYS IN MY PRACTICE HAS BEEN WITH MY TEAM THAT WE TOUCH EVERY SCHOOL IN SOME WAY.
AND SO WHEN YOU ADD ALL OF THAT UP, IT'S A TREMENDOUS WORKLOAD.
AND SO, YOU KNOW, WHAT'S MOST IMPORTANT IS THAT WE BALANCE OUT THE PROJECTS AND THE PHASES OF PROJECTS AND THE TYPE OF WORK THAT WE'RE DOING SO THAT WE CAN MANAGE IT EFFECTIVELY.
OKAY. THANK YOU. AND THEN ALSO, MY QUESTION IS, DUE TO THE MANAGEMENT OF THE 2012 BOND, HAVE WE LOST TRUST IN BIDS FROM REPUTABLE CONTRACTORS? WELL, YOU KNOW, WE'RE THE BIGGEST THE LARGEST SCHOOL DISTRICT IN TEXAS, SO CONTRACTORS ARE GOING TO GRAVITATE TOWARDS US.
HE'S BEEN HERE FOR SEVERAL YEARS.
AND THAT COST, THERE'S A COST ASSOCIATED WITH THAT.
AND SO IF YOU WANT TO EXPOUND ON IT.
SOME OF THE THINGS WE'RE DOING IS HAVING OUR ALL OF OUR CONTRACTS UPDATED WITH WITH LEGAL, INTERNAL, LEGAL AND OUTSIDE LEGAL AND COMPARING THAT TO SURROUNDING DISTRICTS TO SEE WHAT WHY IS HISD PAYING A PREMIUM AS OPPOSED TO SUBURBAN DISTRICTS WHICH ARE SMALLER AND WE ARE URBAN AND LARGER.
SO THERE'S A PREMIUM THAT COMES WITH THAT.
MY TASK IS NOT TO PAY AN EXORBITANT PREMIUM JUST BECAUSE WE'RE HISD.
SO WE'RE HAVING OUR CONTRACT REVIEW THROUGH OUTSIDE AND INTERNAL LEGAL AND ALSO HAVING THE PLAN IS TO HAVE FEEDBACK WITH WITH SOME OF OUR WHAT WE CALL OUR TEAM PARTNER CONTRACTORS, THOSE THAT ARE REALLY OUR CORE MAIN BIG CONTRACTS TO SAY WHAT CAN WE DO TO EASE THAT BURDEN OF CONTRACT AND WHAT CAN WE DO TO MAKE THE CONTRACT A MORE USER FRIENDLY WHILE MAINTAINING OWNERSHIP AND JUST GETTING FEEDBACK? LIKE I SAID, BECAUSE THE MARKET, REGARDLESS OF OUR PROTOCOLS AND SYSTEMS, THE MARKET IS GOING TO DICTATE WHAT COSTS WE GET.
SO WE'RE TRYING TO GET AHEAD OF THAT CURVE AND SEE WHAT'S OUT THERE BEFORE THAT HAPPENS.
AND IF I MAY ADD TO THAT, IN FACT, KIND OF BROADER OUTSIDE OF THE SCOPE OF EVEN JUST A POSSIBLE BOND IN THE FUTURE, WE ACTUALLY HAVE A MAJOR PROJECT GOING ON RIGHT NOW IN PARTNERSHIP WITH ALVAREZ AND MARISOL, OUR FINANCIAL CONSULTANTS, WHERE THEY RECENTLY COMPLETED AN AUDIT OF OUR PROCUREMENT FUNCTION IN THE DISTRICT, AND WE'RE WORKING SIDE BY SIDE WITH THEM TO INCREASE EFFICIENCIES THAT COULD TRANSLATE TO SIGNIFICANT COST SAVINGS.
THANK YOU FOR THAT. THANK YOU FOR ALL OF THAT INFORMATION.
AND THEN MY GLEN, IF YOU DON'T MIND, I HAVE A QUESTION FOR YOU.
SO ON THIS IS THE PLAN TO OBVIOUSLY ROLL THIS HUGE DEBT INTO THIS NEXT BOND.
BUT WE WOULD STILL HAVE TO PAY OFF THE EXISTING DEBT.
SO MY QUESTION WITH THAT IS WHAT IN THIS ROLE IN OR THIS CONTINUING TO PAY OLD BONDS OFF IS GOING TO AFFECT THE BOTTOM LINE IN THIS FUTURE? BOND MEANING.
HOW. YOU MAY BE BETTER TO EXPLAIN WHAT I'M ASKING.
[00:55:02]
RIGHT? RIGHT. WE SELL IT AS WE NEED THE CASH TO PAY PROJECTS AND SO FORTH.BUT AT THE SAME TIME, WE'RE ALSO PAYING OFF DEBT EACH YEAR THROUGH OUR DEBT SERVICE FUND.
RIGHT? RIGHT. SO WHEN WE GO OUT AND WE SAY WE'RE ABLE TO DO X AMOUNT OF DEBT IN BONDS WITHOUT INCREASING YOUR TAX RATE, THAT MEANS THE WAY WE'RE SCHEDULING OUR DEBT PAYMENTS, WHAT WE'RE PAYING OFF, WHAT WE'RE SELLING AND WHEN WE'RE SELLING, IT KEEPS THE TAX RATE THE SAME AND KEEPS OUR DEBT SERVICE RELATIVELY THE SAME.
IT'S JUST NOW WE'VE GOT A NEW SET OF DEBT THAT WE'RE GOING TO PAY OFF OVER THE NEXT 30 YEARS.
SO EVERY YEAR WE GO OUT WE TRY TO GET SAVINGS, WHICH REDUCES INTEREST COSTS IN THE FUTURE.
WE ALSO FEES DEBT SO WE PAY OFF DEBT ADDITIONAL DEBT EACH YEAR AS WE HAVE GROWTH IN PROPERTY VALUES.
SO WE MANAGE THAT DEBT TO TRY TO KEEP OUR TAX RATE FROM INCREASING.
BUT IT'S ALL IN HOW WE STRUCTURE THAT.
BETTER WAY TO FOR OUR FUTURE BOND TO DECIDE WHAT PERCENTAGE GOES TO NEW CONSTRUCTION VERSUS DEFERRED MAINTENANCE, LIKE 50, 50, 60, 40.
I DON'T THINK THAT'S A GOOD PRACTICE.
TYPICALLY, THE REASON THAT WE PAY FOR A COMPANY TO COME IN HERE AND DO A FACILITY ASSESSMENT THAT THEY PRIORITIZE BASED ON THE EXISTING BUILDINGS NEEDS.
AND SO WHEN YOU START TRYING TO PROVIDE A SPECIFIC PERCENTAGE OR WHATEVER YOU TAKE AWAY FROM THAT, WE CAN DO THAT AS A DESKTOP EXERCISE. WE DON'T NEED TO PAY A COMPANY TO DO THAT.
WE PAY THE COMPANY SO THAT WE MAKE SURE THAT WE HAVE A RECORD OF ALL OF THE NEEDS OF EVERY SINGLE SCHOOL FACILITY THAT WE HAVE IN THE DISTRICT. AND WE CAN ESTABLISH A COMPREHENSIVE PLAN SO THAT WE CAN, OVER TIME TAKE CARE OF THOSE NEEDS AND THAT WHEN YOU DO IT, TRY TO DO IT AS A PERCENTAGE, THEN YOU LEAVE OUT SOMETIMES A LOT OF THINGS THAT WE NEED TO TAKE CARE OF.
CAN YOU EXPLAIN A LITTLE BIT MORE ABOUT THAT? AND THEN I'LL COME. I'LL LET HIM START, AND THEN I'LL COME BACK.
FOR INSTANCE, TRUSTEE HERNANDEZ, WHERE AT THE END OF THE 2012 BOND PROGRAM.
SO IF THAT BOND CYCLE, WHICH WAS ORIGINALLY 2019, WOULD HAVE COME TO FRUITION, WE'D HAVE HAD X AMOUNT OF MILLIONS OF DOLLARS AS A SURPLUS, LIKE 2007 HAD A BOND CARRYOVER.
SO THE REASON WE HAVE A CARRYOVER FROM 2007 IS BECAUSE WE GOT THE 2012 BOND.
SO IN 2012, IF WE'D ACTUALLY INITIATED OUR 2019 BOND, WE 2017.
BUT ACTUALLY YOU'RE RIGHT, TRUSTEE DANIELS, THEN THERE WOULD HAVE BEEN A SURPLUS.
SO THE MONEY THAT WE HAVE LEFT, WE'RE AT THE END AND THIS IS WHERE WE COLLECT ALL OF OUR DOLLARS AND WE AS CHIEF PAUL SAID, WE TRY TO GET AHEAD OF THE CURVE ON THE NEXT ONE WITH THOSE BONDS. IT'S NOT A SAVINGS, IT'S JUST THE MONEY THAT'S LEFT.
AND THE WAY WE DO THAT IS AGAIN, TIME AND MONEY.
SO USE THOSE SAVINGS TO HELP YOU GET AHEAD.
SO AGAIN IF WE DIDN'T HAVE THE CARRYOVER FROM A PREVIOUS BOND, THEN WE WOULDN'T BE ABLE TO DO THOSE MAJOR TYPE ITEMS. REPLACING ROOFS.
SCHOOLS THAT HAVE CATASTROPHIC FAILURE ON HVAC OR PLUMBING OR THOSE KIND OF THINGS, WE ALWAYS HAVE TO PLAN FOR THAT CARRYOVER.
IF WE SPEND DOWN TO ZERO, THEN THE NEXT PLACE TO TO GET THAT MONEY WOULD BE FROM GENERAL FUND.
[01:00:06]
YOU KNOW, SO AS A AS A PRACTICE, YOU ALWAYS HAVE TO HAVE THAT CARRYOVER JUST LIKE WE HAD IN 2007 THAT ALLOWED TO BUILD SOME OF THE PROJECTS THAT YOU SEE UP THERE.AND NO, YOU KNOW, NO ONE EXPECTED, YOU KNOW, HARVEY TO HAPPEN.
NO ONE EXPECTED THE ICE NATO OR WHATEVER HAPPENED HERE.
AND SO YOU HAVE TO HAVE THAT CARRYOVER TO SUSTAIN THE DISTRICT.
OTHERWISE THE OPTION WOULD BE WE WOULD NOT HAVE SCHOOL IN THOSE PARTICULAR FACILITIES.
THANK YOU. AND ON SLIDE 28, YOU MENTIONED THAT THERE WAS A NEED FOR THE ENVIRONMENT, FOR TRANSPARENCY.
YES. WHAT ACTUAL ACTION STEPS YOU SEE YOURSELF TAKING? SO ONE AND I LOVE THAT QUESTION, TOO.
ONE OF THE THINGS THAT WE'RE GOING TO HAVE IS A FORWARD FACING DOCUMENT ON EACH SCHOOL THAT BASICALLY LISTS, YOU KNOW, THE F, C, A, THE ASSESSMENT THAT WILL BE PUBLIC AS WELL AS EACH SCHOOL'S FACILITY CONDITION INDEX.
AND SO THE MAJOR SYSTEMS THAT NEED ATTENTION AND THEN OTHER THINGS THAT NEED ATTENTION AT THE CAMPUS, THAT WAY WHEN THE PUBLIC SEES THEIR PARTICULAR SCHOOL, LET'S SAY, WORTHING, THEY CAN THEY CAN SEE ALL OF THE NEEDS OF OF WORTHING AND THE THINGS THAT WE DON'T ADDRESS IN THIS BOND THAT WERE NOT PERHAPS ADDRESSED IN 2012, BOND WOULD CARRY OVER TO THE NEXT BOND.
AND SO SETTING THE INTENT IS TO HAVE A 20 YEAR COMPREHENSIVE CAPITAL PLAN THAT YOU GO FROM ONE CYCLE BOND CYCLE TO THE NEXT BOND CYCLE TO THE NEXT BOND CYCLE OVER THE NEXT 20 YEARS.
WE HAVE TO BRING THE AGE OF OUR FACILITIES TO HAVE 35% OF OUR SCHOOLS THAT ARE OVER 50 YEARS IS NOT GOOD UNLESS, YOU KNOW, YOU CAN MAINTAIN AN OLDER BUILDING IF YOU HAVE ALL THE MONEY AND ALL THE STAFF THAT YOU NEED.
AND SINCE WE DON'T, WE NEED TO MAKE SURE THAT WE HAVE THAT COMPREHENSIVE PROGRAM TO SUSTAIN US.
SO EVEN IF WE CAN'T REPLACE A BUILDING IN FIVE OR SIX OR SEVEN YEARS, WE KNOW THAT WE ARE DOING WHAT WE NEED TO DO TO MAINTAIN IT, TO EXTEND THIS LIFE CYCLE ON CERTAIN SYSTEMS LIKE HVAC ROOFS.
THEY HAVE A LIFE CYCLE, BUT THEY REACH A POINT WHERE YOU JUST CAN'T KEEP THEM GOING.
THE PARTS ARE OBSOLETE AND THEY ARE YEARS PAST THEIR USEFUL LIFE CYCLE.
AND PLEASE STOP ME IF I GEEK OUT BECAUSE THIS STUFF IS PRETTY COOL.
SO THE PLAN FOR THE FUTURE BOND IS TO HAVE, LET'S SAY, A WORKSHEET FOR EVERY CAMPUS.
AND THAT'S A GOOD WAY TO PUT IT.
OKAY, HAVE A WORKSHEET FOR EVERY CAMPUS.
AND THEN THE COMMUNITY, YOU KNOW, THEY THEY SEE IT.
DOES IT LOOK YOU KNOW, DOES IT LOOK NICE? REALLY? THE REAL WORK IS BEHIND THE WALLS.
IT'S THE THINGS THAT PEOPLE DON'T SEE, THE PLUMBING, THE ELECTRICAL.
WELL, WE'RE NOT GOING TO TALK ABOUT THAT.
BUT ALL OF THOSE THINGS THAT THE PUBLIC CANNOT SEE.
AND THAT'S WHERE WE NEED TO GAIN MORE VISIBILITY.
WHEN YOU SAY TWO POINT OVER $2 BILLION IN DEFERRED MAINTENANCE, PEOPLE DON'T KNOW WHAT THAT MEANS.
BUT IF YOU SAY THAT MY AIR CONDITIONING IS 30 YEARS OLD, THEY KNOW WHAT THAT MEANS.
AND SO WE HAVE TO DO A MUCH BETTER JOB OF COMMUNICATE.
THANK YOU. WE WILL NOW GO ON TO ROUND TWO.
TRUSTEE BAKER. THANKS SO MUCH.
MY FIRST QUESTION IS RELATED TO PAGE SIX, PAGE SIX.
AS A CITIZEN, IT'S ALWAYS USED FOR MANY, MANY YEARS.
[01:05:04]
WHEN THEY BUILT THE CHARLESTOWN HIGH SCHOOL, IT WAS TOO SMALL AND THERE WAS A LOT OF CONTROVERSY REGARDING THE CONTRACTOR, IF I'M NOT MISTAKEN, BACK THEN.AND EVEN AS A TRUSTEE, WHEN I VISITED IT, I NOTICED THAT THEY HAD A LOT OF STUDENTS IN THE HALLWAYS AND, YOU KNOW, MAKESHIFT CLASSROOMS AND EXTRA SPACE JUST TO DO WHAT THEY CAN.
WELL, ARE WE AWARE OF THAT AND WHAT ARE WE PLANNING TO DO IN THE FUTURE TO AVOID THESE TYPES OF ISSUES WITH CONTRACTORS AND THE WORK THAT'S BEING DONE? WELL, REALLY, THE CONTRACTORS BUILD IT THE WAY WE ASK THEM TO BUILD IT.
SO IT'S NOT REALLY SO MUCH THE CONTRACTORS.
YOU KNOW, WE'RE IN AN URBAN CITY, SO POPULATION SHIFT OVER TIME.
AND SO WHAT WE USE PASA AND I THINK IF YOU ARE FAMILIAR WITH THE DEMOGRAPHIC GROUP THAT, WE USE THAT IN TERMS OF HOW WE BUILD SCHOOLS GOING FORWARD.
AND SO, YOU KNOW, WE HAVE TO BE VERY CAREFUL IN TERMS OF THOSE ENROLLMENT PROJECTIONS AS WELL AS THE PROGRAMS. I SPOKE ABOUT PROGRAMS EARLIER TO MAKE SURE THAT WE UNDERSTAND WHAT THE DEMAND AND NEED IS FOR A PROGRAM AND THAT WE BUILD IT APPROPRIATELY.
AND SO WHEN YOU HAVE A BOND THAT LASTS TEN YEARS OR 11 YEARS, POPULATIONS ARE GOING TO SHIFT, YOU KNOW? AND SO I THINK WHAT WE'VE LEARNED FROM THIS LAST BOND IS TO MAKE SURE THAT WE WORK IN CONCERT WITH THE COMMUNITY, WITH THE TRUSTEES, WITH OUR DEMOGRAPHICS, DOCTOR DELANEY AND HER GROUP, TO MAKE SURE THAT WE BUILD IT TO MEET THOSE NEEDS, YOU KNOW, AND SO, YEAH, AND SO I THINK THAT, YOU KNOW, IT'S LIKE PREDICTING ENROLLMENT AT A SCHOOL.
YOU KNOW, YOU ALWAYS BUILD A LITTLE OVER WHAT YOU DON'T BUILD A SCHOOL TO THE EXACT STUDENT NUMBER.
BUT, YOU KNOW, I THINK, YOU KNOW, THE WORST THING YOU CAN DO IS.
SO WE'RE GOING TO DO WHATEVER WE CAN TO STAY OUT OF THAT THAT AREA, BECAUSE IT'S NOT A GOOD LOOK.
AND THAT'S WHY I ASKED THAT, BECAUSE AS A CITIZEN AGAIN, WAS THAT A PART OF THE 2007 BOND 2012 BOND WITH CHARLESTOWN? BECAUSE AS A CITIZEN, THE OLD BUILDING WAS SAID TO HAVE BEEN, YOU KNOW.
BIG ENOUGH TO ACCOMMODATE THE POPULATION.
WE KNOW THAT IT WAS IT'S A GROWING AREA.
THE PROJECTIONS ARE HUGE OVER THERE.
AND THEN THE NEW BUILDING CAME OUT LOOKING PRETTIER, BUT SMALLER.
BUT, YOU KNOW, THE THING IS THAT I'M NOT A FAN OF KEEPING OLD STUFF UP AND THE REASON I SAY THAT IS BECAUSE YOU INHERIT THE DEFERRED MAINTENANCE PIECE OF THAT.
WHEN YOU START A NEW BUILDING, YOU HAVE, YOU KNOW, A GRACE PERIOD, LIKE WHEN YOU BUILD A NEW HOUSE THAT FIRST YEAR IS UNDER WARRANTY, RIGHT? WHEN YOU HAVE A BUILDING THAT IS, YOU KNOW, AND I UNDERSTAND THERE ARE HISTORIC PRESERVATION AND ATTACHMENTS TO THE NEIGHBORHOOD AND STUFF, BUT WE NEED TO BE AWARE, AND IT'S MY JOB TO KEEP YOU AWARE OF WHAT WE'RE ASSUMING WHEN WE KEEP AN OLD STRUCTURE UP, YOU KNOW, BECAUSE, YOU KNOW, I NEED TO MAKE SURE AND, YOU KNOW, GIVE YOU THE INFORMATION YOU NEED WHEN WE GET INTO THAT ARENA.
AND I'M SURE WE WILL IF WE GO FORWARD IN THE FUTURE WITH A BOND.
SO WHEN WE HAVE A BUILDING, IT'S AS A TURNOUT, BE SMALLER.
WHAT CAN WE DO TO RECTIFY IT? WELL, IT DEPENDS ON, YOU KNOW, WE HAVE A DATABASE THAT WE KEEP WITH CURRENT ENROLLMENT NUMBERS AND ALL THAT.
AND ONE OF THE THINGS YOU LOOK AT AND I'M NOT SAYING THIS TO SHARPS TOWN SITUATION, ONE OF THE THINGS YOU LOOK AT IS HOW THE BUILDING IS UTILIZED, RIGHT? AND SO IF YOU HAVE A CLASSROOM THAT WAS TURNED INTO AN OFFICE OR YOU HAVE A CLASSROOM THAT WAS BUILT FOR INSTRUCTION AND NOT CULINARY, WHEN I YOU KNOW, YOU HAVE TO LOOK AT THOSE CHANGES.
NOW, IF IT'S JUST AN INCREASE IN ENROLLMENT, THAT'S GREAT.
[01:10:04]
OKAY. AND MY LAST QUESTION IS JUST TO FOLLOW UP WITH TRUSTEE WADE OF REGARDS TO THE SURPLUS MONEY, I JUST WANT TO MAKE SURE MY UNDERSTANDING IS CORRECT.SO THE SURPLUS MONEY IS THAT YOU'RE SAYING IS ARE YOU SAYING THAT IT'S BETTER TO MAKE PAYMENTS, YOUR BOND PAYMENTS, RATHER THAN USE THE SURPLUS MONEY TO PAY OFF DEBT? YOU KNOW, IN ORDER TO KEEP THE SURPLUS, THEY'RE AVAILABLE TO HAVE CASH AND TO BUILD ADDITIONAL BUILDINGS.
RIGHT. I DON'T THINKING TRUMP PAID OFF DEBT WITH THE BOND PROCEEDS.
I GOTCHA. SO SURPLUS MONEY IS BACK FOR BACK IN THE PROGRAM PUT BACK IN THE PROGRAM, CORRECT? IT'S NOT REALLY SURPLUS.
IT'S ENCUMBERED. SO THANK YOU VERY MUCH.
THAT'S ALL I HAVE. TRUSTEE GUIDRY, THANK YOU SO MUCH.
SO ON SLIDES 15 THROUGH 19, WE SEE THAT SOME CAMPUSES WERE BUILT WITH SPECIALTY FUNDS, SPECIAL SPECIALTY FUNDS.
OKAY. MY QUESTION IS, DO WE HAVE THAT OPTION, THOSE OPTIONS AVAILABLE TO US RIGHT NOW SO THAT WE COULD FULFILL THAT 1.8 MILLION AND GET EVERYTHING DONE? CAN WE LOOK INTO SOME OF THESE SPECIAL FUNDING OPTIONS? THE THE ONLY ONE WE HAVE LEFT RIGHT NOW THAT'S REALLY KIND OF SPECIAL FUNDING IS THIS PUBLIC FACILITIES CORPORATION.
WE CAN NO LONGER ISSUE ANYTHING UNDER PFC.
WE HAVE ATTORNEY GENERAL RULING FROM SEVERAL YEARS AGO.
OKAY. SO THOSE OPTIONS ARE NOT AVAILABLE AND THEY WILL NOT BE AVAILABLE FOR THE NEXT BOND, IS WHAT YOU'RE SAYING? NO WHERE IN THE NEAR FUTURE.
ALL RIGHT. AND THEN MY NEXT QUESTION WOULD BE ON SLIDES THREE THROUGH EIGHT, WE SEE THAT THERE WERE VOTER APPROVED CAPITAL IMPROVEMENTS.
HAVE ALL OF THOSE IMPROVEMENTS BEEN COMPLETED? BECAUSE I SEE THAT ON ONE OF THE SLIDES IT SAYS, YEAH, ON SLIDE EIGHT, IT SAYS 99% COMPLETION.
DOES THAT INCLUDE ALL OF THESE CAPITAL IMPROVEMENTS? SO THOSE PROJECTS ARE COMPLETE.
AND I THINK THE LAST PROJECT WE HAVE, IT WILL BE COMPLETE IN JUNE 2023 AND WE'LL BE AT 100% THEN.
SO THERE'S A LIST OF ITEMS ONE THREE THROUGH EIGHT, INCLUDING THE MIDDLE SCHOOL RESTROOMS. YES NOW, THE ONES THAT WERE IN THE PROJECT SCOPE. CORRECT.
SO HOW DO WE FIND OUT IF THEY WERE IN THE ORIGINAL PROJECT SCOPE? IS THERE A LIST OF MIDDLE SCHOOLS? YES, WE HAVE A LIST OF MIDDLE SCHOOLS.
MAY I PLEASE REQUEST TO SEE THE LIST? THANK YOU, SIR. THANK YOU.
I HAVE TO BE CAREFUL OVER HERE.
THEY WERE THAT. I MEAN, THAT'S GOOD.
ON PAGE 30, YOU TALKED ABOUT THE.
WELL, LET ME ASK THIS QUESTION.
WILL THE DISTRICT HIRE PROJECT MANAGERS FOR OR DO WE ALREADY HAVE PROJECT MANAGERS HERE AT HATTIE MAE WHITE? WE HAVE A PROJECT. WE HAVE A THIN STAFF THERE AT THE OLD HARPER SCHOOL ON CENTER STREET.
THAT'S WHY YOU HAD HIGHER SUPPLEMENTAL RESOURCES PROGRAM MANAGEMENT FIRMS. WHEN YOU'RE AT THE END OF A BOND, THEY GO AWAY.
BUT WE HAVE A CORE STAFF OF CONSTRUCTION PERSONNEL.
ANDREAS IS IS THE HEAD OF THAT DEPARTMENT.
SO WE WILL CONTINUE TO HAVE A CONSTRUCTION DEPARTMENT FOR SPECIAL PROJECTS THAT OCCUR.
THANK YOU FOR THAT. HOW MANY PEOPLE ARE IN THAT PART OF THAT STAFF? TRUSTEE BLUEFORD-DANIELS. WE HAVE APPROXIMATELY TOTAL 30 PEOPLE THAT'S STILL TAKING CARE OF THE 12 SEVEN EMPLOYEES.
OK THAT'S WHAT I'M GETTING TOO.
SO WE'RE ACTUALLY 12 YEARS BEHIND IN A SENSE, GOING ON 13, WELL, 12 YEARS NOW.
[01:15:01]
SO BECAUSE OF THAT, THEN THERE ARE CONTINUAL NEEDS AND IMPROVEMENTS THAT ARE CONTINUOUSLY GROWING FROM THE BUILDING ISSUES THAT WE'VE HAD IN THE PAST.SO IT'S SORT OF LIKE THE BOND DID.
EXACTLY. IT CARRIES OVER AND IT JUST ROLLS.
I GUESS WHAT I'M TRYING TO SHOW THE SEE THE VISUAL IS THAT THOUGH WE DIDN'T HAVE THE 17 BOND AND THE 22 BOND THAT WOULD HAVE ADDRESSED SOME OF THE ISSUES THAT WE'RE HAVING NOW AS FAR AS COST AND REPAIRS AND WITH SOME OF THESE CAMPUSES THAT ARE 50 YEARS AND OLDER, THAT'S WHY WE'RE SORT OF I BACKS AGAINST THE WALL.
I WAS HERE IN 07 AND FOR THE 12 BONDS OVER THERE AND I KNOW WE WERE CONCERNED ABOUT THE WAY THE BOND WAS UTILIZED AND HOW IT WHY IT WAS SPENT AND THE PROCESS THAT IT WAS USED.
SO AS WE TALK ABOUT BOND AND GOING FORWARD FOR NOVEMBER AND I'VE EXPRESSED THIS, IT'S GOING TO BE VERY GRAVE CONCERNS FROM THE COMMUNITY BECAUSE THERE'S SO MUCH DISTRUST. YOU KNOW, LET'S PUT IT OUT THERE.
TALK ABOUT THE ELEPHANT IN THE ROOM.
AND ARE THERE ANY BUILDING ENGINEERS IN YOUR DEPARTMENT AS WELL WITH YOU? MR. ANDRUS NO, WE DO THAT THROUGH PROGRAM MANAGEMENT AND STAFF AUGMENTATION, SO HAD TO BE WHITE.
IT'S NOT HAVE ANY BUILDING THE ENGINEERS ON THE PAYROLL HERE.
WE DON'T YOU ALL DON'T HAVE ANY BUILDING ENGINEER FACILITY, BUILDING ENGINEERS THAT HELPS TO OVERSEE AND IS FAMILIAR WITH OUR COMMUNITY RATHER THAN GO OUT AND HAVE TO PAY SOMEONE ELSE TO DO IT.
JUST LIKE ME AS CEO, I REPRESENT THE DISTRICT.
WHAT WE DON'T HAVE ARE THOSE PEOPLE THAT ARE THE ESTIMATES THAT DO KIND OF FIGURE OUT HOW MUCH IS A PROJECT COST THE DESIGN PEOPLE TO, YOU KNOW, WHEN YOU THINK ABOUT ANY PROSPECTIVE BOND THAT WE WOULD GO FORWARD WITH, IT'S HUGE.
AND SO WE USE THAT USE OUTSIDE RESOURCES, THAT BID ON THE WORK TO SUPPLEMENT THE PROGRAM.
BUT OUR INTERNAL HIRED PEOPLE WILL BE THE DISTRICT'S REPRESENTATIVE THROUGHOUT THE WHOLE PROCESS.
THANK YOU. AND IN MY TIME IS RUN OUT.
CAN I DO A FOLLOW UP RIGHT PLUG RIGHT HERE? AND THE REASON WHY I'M ASKING YOU, WE HAD THE CONVERSATION IN THAT MY FAMILIARITY WITH THAT AND I'M ALWAYS CONCERNED WITH THAT.
ABSOLUTELY. ACCOUNTABILITY, TRUSTEE ALLEN.
I WAS THE LIAISON IN MY BUILDING TO CLOSE OUT 2007 SO THAT WE COULD OPEN UP 2012.
AND ONE OF THE THINGS THAT I WITNESSED AS THE LIAISON FOR THE BOND WAS SHODDY WORKMANSHIP, WHERE YOU HAD THE SINKS WOULD FALL OFF AND THE KIDS WOULD LEAN UP AGAINST THE WALL AND THE BATHROOM AND THE WALL WOULD FALL IN.
WE HAD A A REGULATOR THAT WAS NOT PUT INTO IT.
THEY JUST CLOSED IT UP WITH NO REGULATOR ON IT AND SIGNED OFF.
ONE OF THE WORDS I'M MISSING ON SLIDE 28, WHICH IS LESSON LEARNED, IS THE WORD QUALITY AND THE WORD REPUTABLE CONTRACTORS, BECAUSE THOSE CONTRACTORS ALL OF A SUDDEN WHEN WE NOTICE THAT OUR SINKS WHILE FALLING IN THE BUILDING, THE CONTRACTORS HAD CLOSED DOWN NO LONGER EXISTED.
WHERE CAN WE FIND THE WORD QUALITY AND REPUTABLE CONTRACTORS? ABSOLUTELY. I THANK YOU.
THANK YOU. AND I HAVE A POINT OF ORDER.
QUESTION BEFORE I GET INTO MY QUESTIONS ABOUT THIS, WHO WAS ACTING AS SUPERINTENDENT? OKAY. THANK YOU. ALL RIGHT.
SO REFERENCING SLIDES 25 AND 30, YOU'VE BROUGHT UP AND THIS IS A LOOKING FORWARD QUESTION BASED ON LOOKING BACKWARDS. PROGRAMATIC NEEDS OF FACILITIES AND WHAT WE'RE SEEING HERE ON PAGE 30.
[01:20:05]
WHEN CAN WE EXPECT FOR THE BOARD TO HAVE A COMPREHENSIVE PROGRAMING PLAN BEFORE WE CAN BE VOTING ON A BOND? SURE. THAT IS A GREAT QUESTION.TRUSTEE DEIGARD. A FEW THINGS HAVE ALREADY HAPPENED ARE UNDERWAY WITH REGARD TO PROGRAMING.
IN FACT, AT AN UPCOMING BOARD WORKSHOP, I BELIEVE THE ONE IN FEBRUARY, DR.
A LOT OF THE WORK IS GOING TO HINGE ON COMMUNITY ENGAGEMENT.
SO MAKING SURE THAT WE'RE WORKING WITH THE COMMUNITY TO FIGURE OUT WHAT THEY WANT, WHAT THEY VALUE, AND THEN LOOKING AT THE PROGRAMING HOLISTICALLY ACROSS THE DISTRICT TO MAKE SURE THAT THERE'S EQUITY IN TERMS OF ACCESS, THAT IF A STUDENT IS IN SOME MIDDLE SCHOOL PROGRAM, THAT IT FEEDS TO A QUALITY HIGH SCHOOL PROGRAM, FOR EXAMPLE, AND THEY DON'T HAVE TO GO NECESSARILY ENTIRELY ACROSS TOWN.
SO YOU CAN SEE HOW OUR EXISTING PROGRAMS ARE DOING.
THERE WILL BE INFORMATION SHARED.
IT DEPENDS ON HOW YOU DEFINE COMPREHENSIVE.
WE WILL BE WE KNOW WHAT THE PLAN IS FOR ALL OF OUR CAMPUSES AND HOW IT ALL WORKS TOGETHER.
BUT THIS WORK AROUND FACILITIES, IF WE ARE MOVING IN THE DIRECTION OF ANY POTENTIAL FUTURE BOND, WHETHER THAT'S THIS YEAR OR ANOTHER YEAR, OF COURSE, HAS TO BE OVERLAID WITH THE PROGRAMMATIC CONSIDERATIONS.
IN FACT, IN MANY WAYS, THE PROGRAMMATIC CONSIDERATIONS INFLUENCE THE DIRECTION OF THE BOND, AND THAT'S SOMETHING THAT WE'VE BEEN WORKING VERY CLOSELY ON OVER THE PAST FEW MONTHS AS WE THINK OF THE CAPITAL T TRANSFORMATION, LOOKING AT FINANCIAL TRANSFORMATION, LOOKING AT PROGRAMMATIC AND ACADEMIC TRANSFORMATION AND THE SCHOOL FOOTPRINT.
BECAUSE AGAIN, GOING BACK TO THE LESSONS LEARNED, THAT WAS ONE OF THE THINGS THAT WE LEARNED FROM THE LAST BOND AND THAT WE'RE STILL, QUITE FRANKLY, DEALING WITH WAS THAT SOMETIMES FACILITIES DECISIONS WERE MADE IN ISOLATION OF PROGRAMMATIC CONSIDERATIONS.
I KNOW THAT WAS A CONCERN ABOUT THE CAPITAL PLANNING COMMITTEE, AND THAT'S WHY I.
PLAN TO SEE A COMPREHENSIVE PLAN ON PROGRAMING BEFORE I'M ASKED TO VOTE IN THE BOND.
SO THIS IS MORE OF A TECHNICAL QUESTION.
WHY IS IT CALLED INTEREST IN SINKING? THAT'S JUST THE TERM THAT'S USED.
WHERE I STARTED, I COULDN'T TELL YOU.
OKAY. ALL RIGHT. I COULD BUY RESEARCH IT.
I'VE BEEN HERE FOR FIVE YEARS.
I DID NOT UNDERSTAND THAT WE ARE STILL PAYING OFF 2007 POND.
SO YOU TAKE OUT A LOAN ON TOP OF YOUR MORTGAGE AND YOU REFINANCE THE WHOLE THING TOGETHER.
AND WHAT STARTED OUT AS A 30 YEAR NOTE, YOU'RE FIVE YEARS IN NOW.
YOU HAVE A NEW 30 YEAR NOTE, YOU GET FIVE YEARS.
YOU'RE JUST ALWAYS PUSHING IT FURTHER OUT UNTIL YOU DIE.
I MEAN, AM I? IS THAT AM I RIGHT OR AM I WRONG? AM I NOT UNDERSTANDING THIS CORRECTLY? YEAH. WELL, AS YOU CONTINUE TO PAY OFF DEBT, RIGHT THEN YOU ISSUE OTHER DEBT TO THEN EXTEND.
THAT YOU'RE YOU'RE PAYING OFF BUT IT DEBT BOND DEBT IS NOT LIKE A A MORTGAGE NOTE OR A CAR PAYMENT YOU'RE NOT MAKING PAYMENTS ON EVERY SINGLE DEBT ISSUANCE EVERY SINGLE YEAR. SO BUT IT NEVER ENDS.
I MEAN, IN A MORTGAGE FOR MOST PEOPLE DOES END RIGHT, IF THEY'RE RESPONSIBLE ABOUT IT.
BUT THAT'S THE NATURE OF THIS SYSTEM AND THAT'S WHAT MAKES THIS DIFFERENT THAN A HOUSE.
SO IF WE DID NOT ISSUE ANY NEW DEBT, THEN ALL EVERYTHING WE HAVE NOW THAT'S 27 BOND, THAT'S THAT'S 2012 BOND WOULD ALL BE PAID OFF BY 2043. SO IF WE ISSUED NO NEW DEBT, ANYTHING, WE WOULD WE WOULD PAY IT OFF IN 2043, IT WOULD BE PAID OFF.
BUT AS YOU AS WE GO OUT FOR NEW BONDS AND DO NEW ISSUANCES, YES.
THEN OF COURSE, WE'RE ISSUING NEW DEBT.
[01:25:02]
IT'S LIKE ALMOST LIKE GOING ON GETTING A SECOND MORTGAGE.BUT YOU'RE STILL PAYING ON YOUR REGULAR MORTGAGE.
RIGHT. THAT'S THE PART I DIDN'T UNDERSTAND.
TRUSTEE. WAIT. SO IT'S A PERFECT SEGWAY FROM SUE DIVERTS TRUSTEE DIVERTS QUESTION SO IN LAYMAN'S TERMS TO THE PUBLIC, HOW WILL ACCOUNTING MAKE SURE THAT THAT IS A PUBLIC FACING, THAT THERE'S CLEAR PUBLIC FACING UNDERSTANDING OF WHAT OUR FINANCES ARE WHEN IT COMES TO BOND DEBT AND THE FUTURE BOND IN LAYMAN'S TERMS. DO NOT ACCOUNT AND SPEAK.
IS THERE A WAY THAT WE CAN BE MORE PUBLIC FACING ABOUT THAT? SO OBVIOUSLY, WE WORK WITH OUR FAS WHO HELP US DO THE CALCULATIONS ON WHEN WE'RE GOING TO SELL DEBT, WHEN WE'RE GOING TO MAKE PAYMENTS, INTEREST PRINCIPAL INTEREST PAYMENTS.
BE VERY HELPFUL IF YOU COULD FIND A WAY TO MAKE THAT MORE PUBLIC FACING AND MORE USER FRIENDLY FOR THE MAJORITY OF PEOPLE OUT THERE WHO ARE NOT IN THE ROLE THAT YOU ALL ARE ENDS.
THANK YOU. THAT WOULD BE VERY HELPFUL.
MY QUESTION IS, SO ON THE STAFF THAT YOU HAVE THAT CURRENTLY IS IN THE CONSTRUCTION DEPARTMENT, WILL THEY BE THAT WHOLE ENTIRE STAFF? WILL THEY BE IN WITH THE ARCHITECTS AND WITH THE ON? WILL THEY ALL BE INCLUDED IN THE PROCESS FOR THESE NEW BUILDINGS? ABSOLUTELY. AND ALL OF I MEAN, THIS IS A COLLABORATIVE EFFORT.
SO IT'S NOT IT JUST DOESN'T SIT IN A CONSTRUCTION SIDE OF THE HOUSE.
IT SITS WITH THE MY OTHER DEPARTMENTS MAINTENANCE.
THEY'VE BEEN HEAVILY INVOLVED WITH THE INFORMATION THAT IS IN OUR DATABASE ON THE FCA, AS WELL AS THE ACADEMIC SIDE OF THE HOUSE FOR PROGRAMING AS WELL AS THE COMMUNITY SCHOOL PRINCIPAL.
IT'S VERY DIFFICULT TO TRY TO DO THIS IN A BUBBLE.
SO IT'S REALLY IMPORTANT THAT WE DO OUR BEST TO TRY TO GET IT RIGHT.
AND THAT'S FROM THE ORIENTATION OF THE BUILDING ON THE SITE, PREDICTING FUTURE GROWTH AND SO FORTH.
SO IT TAKES A VILLAGE TO ACTUALLY HAVE A QUALITY BOND PROGRAM AND A QUALITY OUTPUT FROM IT. OKAY.
THANK YOU. AND THEN MY LAST QUESTION WOULD BE TO SUPERINTENDENT HOUSE, BUT I'LL FRAME THIS TO YOU SO I KNOW THAT THE CURRENT PUBLIC AND THE WELL, THE FUTURE OF THE CURRENT SCHOOL SYSTEMS AS THEY ARE.
SO DO YOUR IS THERE ANY CONCERN THAT THE CURRENT SYSTEM OF PUBLIC EDUCATION IS CHANGING BECAUSE OF THE WAY COVID MANAGED THAT AND BECAUSE OF THE, YOU KNOW, JUST THE WAY THINGS ARE MOVING? IS THERE A CONCERN OR HAS THERE BEEN CONVERSATION IN THE DISTRICT ON HOW THAT'S GOING TO BE MANAGED THROUGH THIS BOND CAMPAIGN? ABSOLUTELY. IF I'M UNDERSTANDING THE QUESTION CORRECTLY IS HOW DO WE PLAN FOR THE FUTURE KNOWING THAT THINGS ARE RAPIDLY EVOLVING IN EDUCATION? CORRECT. BETTER SET. AND THAT IS CERTAINLY I MEAN, NONE OF US HAVE A CRYSTAL BALL AND WE SEE THAT THINGS ARE QUICKLY OR QUICKLY MOVING.
BUT I THINK THAT WAS ONE OF THE THINGS THAT CHIEF PAUL WAS ALLUDING TO EARLIER IS EVEN IN TERMS OF THE DESIGN OF ANY BUILDINGS OR UPDATING ANY BUILDINGS, BUILDING IN FLEXIBILITY FOR UPGRADES AND FOR ADAPTATIONS IN THE FUTURE THAT ARE GOING TO HELP US RESPOND TO WHAT STUDENTS NEED AND TO WHAT LEARNING ENVIRONMENTS LOOK LIKE, MAKING SURE THAT, FOR EXAMPLE, TECHNOLOGY IS IS INTEGRATED INTO SCHOOLS, THAT THEY'RE FLEXIBLE SPACES.
WE'RE SEEING SOME CREATIVE THINGS ALREADY HAPPENING IN CERTAIN POCKETS OF THE OF THE CITY.
WE SEE SPECIALTY SCHOOLS THAT HAVE ACTUALLY DESIGNED THEIR ENTIRE SPACES.
I THINK OF A SCHOOL LIKE ENERGY, RIGHT? WHERE IF YOU GO TO ENERGY HIGH SCHOOL, YOU WILL SEE THAT THEY HAVE A SOCRATIC METHOD THAT THEY IMPLEMENT IN TERMS OF INSTRUCTION, AND THAT ACTUALLY MANIFESTS ITSELF IN THE BUILDING ITSELF. AND SO I THINK THAT THERE ARE SOME CREATIVE WAYS AND AS CHIEF PAUL WAS ALSO MENTIONING, THE PROTOTYPES WILL INCLUDE DIFFERENT TYPES OF OPTIONS THAT WILL ADAPT TO DIFFERENT SPACES AND ENVIRONMENTS.
[01:30:05]
SERVE US THE MANY DECADES THAT HE PROBABLY WILL.I HAVE A COUPLE OF QUESTIONS IN REGARDS TO TRUSTEE ALLEN'S POINT EARLIER.
YOU KNOW, I ALSO WORKED ON CAMPUSES AND A NEW SCHOOL THAT HAD A LOT OF PROBLEMS, EVEN THOUGH THE CONSTRUCTION WAS DONE JUST MONTHS BEFORE.
WHAT IS THE PLAN FOR? I KNOW THAT YOU MENTIONED WARRANTIES, BUT HOW IS THAT GOING TO CHANGE? WELL, YOU KNOW. THANK YOU.
WE HAD SOMEBODY SWITCHED IT FOR YOU.
AND I HOLD MY STAFF ACCOUNTABLE FOR THAT AND MYSELF ACCOUNTABLE FOR THAT.
AND SO, YOU KNOW, WE HAVE TO BE AND I THINK YOU ASK THE QUESTION, WELL, WHO'S GOING TO ACTUALLY REPRESENT THE DISTRICT, EVEN THOUGH WE HAVE EXTERNAL PARTNERS OR PROGRAM MANAGEMENT FIRMS OR, YOU KNOW, ONE OF THE THINGS I WANT TO DO IS REDUCE THE NUMBER, YOU KNOW, MAKE SURE WE HAVE A GOOD BASELINE IN TERMS OF WHAT THE EXPECTATIONS ARE.
MAKE SURE WE HAVE A GOOD BASELINE IN TERMS OF HOW THE FACILITIES ARE DESIGNED.
NOT ONLY THAT, WE NEED TO MAKE SURE THAT WE HAVE THE BEST CONTRACTORS THAT ARE WORKING ON OUR BUILDINGS AND MAKE SURE WE HAVE AN INCLUSIVE ENVIRONMENT AND MAKE SURE THAT WE HAVE CONTRACTORS THAT COMPETE FOR THE WORK AND THAT WE HAVE A GOOD POOL OF QUALITY FOLKS THAT WANT TO WORK FOR HISD.
PART OF THAT IS, YOU KNOW, WE TALKED ABOUT COMMUNITY ENGAGEMENT, BUT WE ALSO NEED ENGAGEMENT OR TO ENGAGE THE BUSINESS COMMUNITY AND OUR MWB FIRMS AND SBE FIRMS AND SO FORTH TO MAKE SURE THAT WE HAVE A GOOD POOL TO SELECT FOR.
SO THAT WHEN I BRING AN ITEM FOR A BOARD VOTE, I'M CONFIDENT THAT THEY CAN DO THE WORK.
SO, YES, THERE'S A LOT OF ACCOUNTABILITY THAT NEEDS TO HAPPEN.
IF WE GO OUT FOR ANOTHER BOND IN OUR COMMUNITY MEMBERS, YOU KNOW, AND OUR PRINCIPALS, YOU KNOW, UNDERSTAND WHAT TO A CERTAIN EXTENT WHAT THOSE EXPECTATIONS SHOULD LOOK LIKE FOR THEIR CHILD.
AND I THINK THAT, AS I SAID, IF WE WERE TO MOVE FORWARD, YOU KNOW, THAT IS A HUGE PIECE IN MY MIND BECAUSE, YOU KNOW, AGAIN, I DON'T LIKE PAYING FOR SOMETHING TWICE, YOU KNOW, AND SO WE HAVE TO HOLD OUR CONTRACTORS ACCOUNTABLE AND WE GO INTO THAT PROCESS WITH THAT EXPECTATION OF THEM.
HAS THAT INFORMATION BEEN LOOKED AT AND REFERENCED WITH THIS NEW COMPREHENSIVE BOND PLAN THAT'S GOING TO BE PRESENTED TO US PRETTY SOON? SO WHAT I WOULD SAY IS THAT WE WILL BRING THAT, YOU KNOW, BRING PARTS OF THAT.
YOU KNOW, I'M ACCUSTOMED TO HAVING WORKSHOPS AND CONVERSATIONS WITH BOARD MEMBERS AND THE SUPERINTENDENT IN TERMS OF, YOU KNOW, HOW WE MOVE ALONG IN THE BOND PROCESS.
YOU KNOW, IF A BOND GOES FORWARD IN NOVEMBER, THAT PROCESS DOES NOT STOP.
IT IS MY EXPECTATION THAT WE HAVE SOME KIND OF QUALITY OR QUARTERLY UPDATE TO YOU ON PROJECTS AND AND SO FORTH. THE MEETINGS THAT WE HAVE WITH THE SUPERINTENDENT TO KEEP YOU INFORMED.
SO WE HAVE MORE NEEDS THAN WE CAN GO OUT FOR A BOND FOR.
SO WHATEVER THAT NUMBER IS THAT WE COME TO YOU AT SOME POINT JUST DOUBLE IT, BECAUSE THAT'S
[01:35:03]
REALLY WHAT THE TRUE NEED IS.AND WHAT I HAVE EXPERIENCE IS THAT NO COMMUNITY CAN ACTUALLY THEY DON'T WANT A TAX INCREASE AND THAT SORT OF THING, WHICH IS UNDERSTANDABLE. BUT YEAH, YOU KNOW, WE HAVE TO CONTINUE THE CONVERSATION.
THAT'S BASICALLY WHAT I'M SAYING.
OKAY. AND MY LAST QUESTION IS, I KNOW FROM THE 2012 BOND, SOME OF THE SCHOOLS WERE PROMISED CERTAIN THINGS, BUT THEN THEY DIDN'T RECEIVE IT BECAUSE THERE WASN'T ENOUGH BOND MONEY.
THAT'S WHAT THE EXPLANATION WAS FROM THE ADMINISTRATION TO THE COMMUNITY.
SO HOW ARE WE GOING TO MAKE SURE THAT DOESN'T HAPPEN AGAIN, THAT WHAT'S PROMISED TO THE COMMUNITY OR A CERTAIN SCHOOL, THEY ACTUALLY GET WHAT THEY'RE PROMISED AT THE SIZE THAT THEY'RE PROMISED OR THE EXPECTATION THAT THE COMMUNITY HAS PROMISED THAT SO, YOU KNOW, PROMISES MADE, PROMISES KEPT.
BUT WE NEED TO MAKE SURE THAT PROMISE IS THE ACTUAL PROMISE.
SO FOR ME, WE ARE GOING TO BE TRANSPARENT IF WE GO FORWARD WITH A NEW BOND.
I'M NOT MAKING SURE THAT I'M NOT SAYING THAT IT'S IN ALL CERTAINTY.
AND THAT'S WHERE YOU BUILD THAT TRUST THAT A BOARD MEMBER SPOKE ABOUT.
BY BEING TRANSPARENT, YOU KNOW, WE WILL SET A GENERAL SCOPE OF PROJECTS AT SOME POINT, WHETHER IT'S NEW CONSTRUCTION OR DEFERRED OR DEFERRED MAINTENANCE, WHATEVER THE PROJECT IS, AND WE WILL SET IT SO THAT IT SERVES THE COMMUNITY AND WE CAN KEEP THOSE SAME WE CAN KEEP THOSE PROMISES.
I THINK THAT BY BEING TRANSPARENT, KEEPING PEOPLE UPDATED AS TO WHERE WE ARE ALONG THE ALONG THE WAY HELPS US KEEP THAT PROMISE, WHATEVER PROMISE THAT IS.
AND TRUSTEE ALLEN HAS SOME TIME LEFT FOR ROUND TWO.
THANK YOU. NO, THIS IS JUST A BING IDEA.
IT'S NOT NECESSARILY A PROBLEM.
BUT COULD THERE POSSIBLY BE A COMPONENT OF WORK BY CONTRACTORS THAT COULD INCLUDE OUR CARPENTRY STUDENTS AS INTERNS? SO I CANNOT SPEAK FOR OTHER DEPARTMENTS, BUT I'VE BEEN IN DISTRICTS THAT HAVE HAD A VERY VIBRANT CTE PROGRAM.
ONE EXAMPLE WAS THEY BUILT HOMES FOR PEOPLE AND THEY BUILT A HOME A YEAR.
THEY BUILT IT IN THEIR CONSTRUCTION AREA AND DELIVERED IT TO THE HOMEOWNER.
AND SO THAT'S IN PARTNERSHIP WITH A LOT OF THE COMPANIES AND SO FORTH, CONSTRUCTION COMPANIES.
AND THEY TEACH KIDS HOW TO BUILD HOMES.
AND IT WAS A VERY VIBRANT PROGRAM.
SO I THINK WE IT WOULD BE EXCITING TO HAVE SOME KIND OF CONNECTION OF THAT WAY.
WELL, I KNOW WE DIDN'T GET THAT DEAL.
SO THEY HAVE TO, LIKE, BE IN A CLASSROOM FOR 90% OF THE TIME.
BUT IF THEY WERE INCLUDING ON SOMETHING THAT WAS ON THEIR CAMPUS.
WELL, AGAIN, IT'S SOMETHING I THINK WE NEED TO LOOK AT BECAUSE THE REALITY IS SKILLED WORKERS.
WE NEED TO LOOK AT GROWING OUR OWN.
AND SO IT WOULD BE VERY INTERESTING TO HAVE THAT KIND OF HANDS ON EXPERIENCE.
THANK YOU. THAT CONCLUDES OUR WORKSHOP DISCUSSION.
[ADJOURN TO CLOSED OR EXECUTIVE SESSION ]
THE BOARD WILL NOW ADJOURN TO CLOSE SESSION UNDER CHAPTER FIVE FIVE, ONE OF THE TEXAS GOVERNMENT CODE.SUBSECTIONS 551.004551.071551.07255.
1.082155. 1.083551.04 AND 551.09.
SHOULD BOARD FINAL ACTION OR DECISION ON ANY MATTER CONSIDERED IN CLOSED SESSION BE REQUIRED.
[01:40:02]
THE BOARD UPON NOTICE.NOTICE THEREOF. THE BOARD HAS ADJOURNED TO CLOSED SESSION AT 3:41 P.M..
* This transcript was compiled from uncorrected Closed Captioning.