Quincy Reporter

Community Consolidated School District 181 Board of Education Finance and Facilities Committee met March 12.

Here are the minutes provided by the committee:

Call of Meeting

The Board of Education Finance and Facilities Committee meeting of Community Consolidated School District 181, DuPage and Cook Counties, Illinois, was called to order by Board Member and Finance Committee Chair Sinead Duffy at 5:00 p.m. on Tuesday, March 12, 2024.

Roll Call

Finance and Facilities Committee members present were Asim Aleem, Margaret Kleber, Jerry Mejdrich, Lois Mejdrich, Rich Giltner, Ellen Dunlap, Mindy Bradford, Meg Cooper, Mike Duggan, and Catie Norton.

Pledge of Allegiance

Mindy Bradford led the Pledge of Allegiance.

Public Comment

No public comments.

Approval of Minutes

Sinead Duffy made a motion to approve the minutes from the February 6, 2024, Finance and Facilities Committee meeting. Margaret Kleber seconded the motion. The motion carried.

Celebrations

Ms. Bradford noted the following celebrations and reminders:

● DuPage County 2023 Levy Confirmation

● Successful automation of online ticket sales for the musicals at both middle schools. Ticket sales were higher at both schools than they were in previous years, and the amount of cash collected was reduced dramatically to some cash ticket sales at the event as well as concessions.

Discussion Topics

Full-Day Kindergarten Update

Todd Rusche, Vice President, David Lapidus, Senior Project Manager, Anastasia Long, Assistant Project Manager, and Jason Sparks, Midwest Region Director, from Turner and Townsend, attended the meeting and updated the committee.

Mr. Rusche shared that Turner and Townsend will provide continuous financial and construction progress monitoring, tracking, oversight, and reporting on all project aspects in conjunction with the District staff. They will act as the District’s eyes and ears in the field and aggressively advocate for its interest in all project aspects.

During the preconstruction phase, they will monitor and develop the following:

● Develop the budget cost reporting format, project management plan, and responsibility matrix

● Establish communications protocols

● Review contractor construction schedules

● Develop a master construction schedule

● Review contractor submittal schedules and early submittals with the Architect

● Identify long lead time items and review contractor procurement plans to ensure delivery

● Coordinate with ComEd for Underground Electrical line relocation at Oak and Monroe Schools

● Procure field materials testing and lab services

Construction Phase Activities

● Contractor and construction oversight: Site visits to review progress and quality

● Review Requests for Information (RFIs) and field conditions with Architect

● Review all potential change orders and change orders

● Review contractor pay requests

● Direct weekly Owner, Architect, and Contractor meetings

● Coordinate Owner provided Furniture, Fixtures, and Equipment (FF&E)

Financial Tracking and Oversight

● Monthly Progress Reports

○ Budget/Cost Report, cash flow projections, change order logs, contingency usage

○ Schedule and progress review, RFI logs, and documentation

○ Payment request documentation and contractor performance review

● Construction Completion and Post-Construction

○ Assist the architect with the development and completion of the punch list by the contractor.

○ Coordinate inspections with the Architect for substantial completion and occupancy.

○ Coordinate receipt of Operations Manuals and product Warranties from Contractor.

○ Coordinate project financial closeout

○ Coordinate and participate in post-construction warranty walk-throughs

Mr. Rusche shared that he foresees a low number of change orders. He said the drawings were solid, and each potential change order would be fully vetted if any were received.

He shared a sample project schedule and RACI (Responsibility, Approver, Consulted and Informed) Matrix that will be used for each school. He noted that this is the best way to provide clear direction, roles and responsibilities for all of the teams involved to improve the efficiency of this project.

Ms. Bradford shared a sample project budget report and noted that the “original” budget will not change. Any change orders will be clearly identified and tracked separately, so that the committee and board will know the exact level of change orders that have been approved.

Per a question, Mr. Rusche confirmed that they and the architect will run a formal commissioning process. Every piece of equipment will be tested at the end of the project.

Turner and Townsend representatives left the meeting at 6:20 p.m.

Five-Year Forecasting

Assistant Superintendent of Business and Operations Mindy Bradford explained that a five-year forecast is a comprehensive and interactive planning process that can be updated to assist the District in making important decisions as financial assumptions change.

The key forecast assumptions - revenue are as follows:

Tax Levy

● CPI: FY25 = 3.4% (Known), FY26-29 = 2.5% (In-line with 10-year CPI average)

○ (1% � ≃ +/- $800,000 annually)

● New Property: $20MM

● ($1MM � ≃ +/- $265,000 annually)

Other Local Revenue

● Registration Fees: FY25 ≅ $1.35 MM (Remain Flat through FY28)

● Interest on Investments: FY25 ≅ $1.7MM, FY26 = $1.4MM, FY27-FY29 = $1.2MM (Decrease as Interest Rates Come Down)

● Corporate Personal Property Replacement Tax: FY25 = $1.2MM, FY26-27 = $1.1MM, FY28-29 = $1MM (Based on Actuals)

Evidence Base Funding (EBF)

● General State Aid, English Learners Education, Sp. Ed Personnel, Sp. Ed Funding for Children, Sp. Ed Summer School

● Base Minimum Funding (FY24) = $2,258,248 - Remain Flat (Tier 4)

State Categorical Revenue ≅ $.6MM (Remain Flat through 2028)

● Special Ed Private Tuition, Regular/Vocational/Special Ed Transportation

Federal Categorical Revenue ≅ $1.3MM Moving Forward (ESSER grants ended in FY24)

● IDEA, IDEA Pre-School, IDEA CEIS, Title I, Title II, Title III, Special Milk Program

Key Expenditure Levers

5-Yr. Facility Master Plan - Big Lever Items (> $100,000)

● FY25 = Madison: MRC remodel; Monroe: flooring & moisture mitigation; Prospect: parking and playlot resurface; Monroe: playlot resurface; Madison: playlot resurface; The Lane: playlot resurface; Walker: playground; The Lane: LED retrofit and replacement

● FY26 = Oak: playground; Prospect: roof replacement; Walker: MRC remodel and new flooring; Monroe: LED install; Prospect: door hardware replacement;

Elm: flooring & moisture mitigation

● FY27 = Elm: chiller replacement & fire alarm system; Madison: floor replacement; Oak: MRC remodel and chiller replacement; The Lane: parking lot;

Walker: parking lot and playlot; CHMS: front door replacement

● FY28 = Monroe: roof replacement; Walker: flooring & moisture mitigation; The Lane: chiller replacement; Monroe: roof replacement & addition; Walker: roof replacement & addition

● FY29 = Walker: roof replacement; Madison: roof replacement; Elm: roof replacement; CHMS: parking lot north & east access road

5-Yr. Technology Plan - Big Lever Items (> $100,000)

● FY25 = Kinder iPads, 3rd grade iPads, 6th grade Chromebooks

● FY26 = Kinder iPads, 3rd grade iPads, 6th grade Chromebooks

● FY27 = Kinder iPads, 3rd grade iPads, 6th grade Chromebooks

● FY28 = Kinder iPads, 3rd grade iPads, 6th grade Chromebooks

● FY29 = Kinder iPads, 3rd grade iPads, 6th grade Chromebooks

5-Yr. Textbook Adoption Plan - Big Lever Items (> $100,000)

● FY25 = Social Studies & Additional Materials for Full-Day Kindergarten

● FY26 = Elementary: Reading

● FY27 = Math

● FY28 = Middle School: Language Arts & Elementary: Music

● FY29 = Science

Key Expenditure Levers - Assumptions

● Insurance

○ 1% ^ = +/- $62,000

● Salaries

○ 1% ^ =+/- $486,000

● 5-Year Facility Master Plan

○ FY25 = $5.7 MM

○ FY26 = $2.7 MM

○ FY27 = $2.4 MM

○ FY28 = $2.4 MM

○ FY29 = $2.4 MM

● 5-Year Technology Plan

○ FY25 = $916,000

○ FY26 = $1,102,000

○ FY27 = $1,042,000

○ FY28 = $1,081,000

○ FY29 = $1,110,000

● 5-Year Adoption Plan

○ FY25 = $1,150,000

○ FY26 = $1,180,000

○ FY27 = $1,200,000

○ FY28 = $1,200,000

○ FY29 = $1,510,000

Salary/Benefit Expense Assumptions

Salary Increases

● HCHTA: Aligned to Contract through FY27 (Used CPI for FY28-FY29)

● HESS: Aligned to Contract through FY26 (Used CPI for FY27-FY29)

Base Student/Teacher ratios remain at the current level

○ See next page for anticipated Full Day Kindergarten staffing increases in FY26

Health Insurance

● 9% - PPO/HMO increase and 8% HDHP increase for FY25 (Likely renewal amounts)

● 5% - All three health plans for FY26-FY29

● 5% - Dental Plan for FY25-FY29 (Plan next renews 1/01/2025)

Full-Day Kindergarten Assumptions

Anticipated staffing increases for FY26

● 12.5 Certified staff

● 4.0 Classified staff

Building Additions/Renovations ≃ $19.2MM (Latest Estimate)

Additional Furniture/Fixtures (for existing kindergarten classrooms) ≃ $60,000

Additional Curriculum Resources/Materials = $200,000 - $250,000

Mr. Mejdrich asked about the HCHTA salary increases that were approved in the last contract.

Ms. Bradford said she would share this information with the committee. She clarified that she did not include the insurance in the HCHTA salary increase assumptions, as those are tracked separately.

Per a question, Ms. Bradford said the assumption is that all positions will be filled next year.

Ms. Kleber asked why the District is trending to the higher end of the fund balance policy. Dr. Garcia noted that historically, the District has been near the 40% range.

Ms. Kleber asked for some different fund balance scenarios. She also requested that long-range facilities planning be added to a future agenda.

Items for Recommendation

Monthly Financials

Ms. Bradford shared the following:

Operating Funds Year to Date:

● $32.9 MM: Trending on track

○ Includes relief to the taxpayers and purchase of district office building

● Revenue $41.8 MM: Trending on track

● Expenses $42.2 MM: Trending on track

The committee agreed and supported the recommendation to bring this item forward for Board approval.

Approval of Natural Gas Parameters

Mike Duggan, Director of Facilities, shared that the District is currently a party to The Illinois Gas Cooperative Agreement. He said the District is also a party to the Master Energy Services Agreement between Vanguard Energy Services and the Illinois Gas Cooperative on behalf of its Members. Mr. Derek Mozeham from Century Energy Solutions was also present remotely.

Mr. Duggan and Mr. Derek Mozeham noted the following.

● The existing Illinois Gas Cooperative (IGC) agreement expires in July 2024.

● District desires a 3-year contract with a fixed rate (100% swing).

Illinois Gas Cooperative (IGC):

● Pros: Cooperative buying power, historical benefits.

● Cons: Variable rates after an initial period and ongoing and indefinite commitment. Other options (Century Energy Solutions (broker with various vendors) & Vanguard):

● Pros: Century offers a fixed price (100% swing) rate for all terms.

● Cons: Vanguard's 100% swing fixed rate is only available for a 12-month commitment.

Request:

● Lock in a new rate with Century Energy Solutions (CES) at a maximum of $0.40/therm.

● Secure a 36-month or shorter-term contract with 100% swing (guaranteed, fixed price).

The recommendation would be to enter a new natural gas supply agreement within the parameters as presented. Approval of a fixed-rate natural gas supply contract starting August 1, 2024, with a ceiling rate of $0.0400/therm for 36 months or less, with the vendor providing the most favorable rate to the District on the date the agreement is signed.

The committee agreed and supported the recommendation to bring this item forward for Board approval.

Approval of E-rate for Internet & WAN

Ms. Bradford shared that the District is seeking a one-year fiber optic WAN contract for internet connectivity between the new administration center and Hinsdale Middle School

● Once the District is no longer in the old administration center, the District will seek to bring all sites under one service provider

● The District received proposals from three providers:

○ AT&T, Verizon, and Metronet

● Although Metronet currently services WAN & Internet connectivity for District 181, AT&T provided the lowest cost for services overall (including no up-front costs)

● The Administration recommended the approval of AT&T to provide WAN services to the District under a 1-year contract.

● The one-year cost for E-rate/WAN services through AT&T will be approximately $15,372

The committee agreed and supported the recommendation to bring this item forward for Board approval.

Digital Learning - iPad Refresh

Ms. Bradford shared that the administration recommends purchasing the following devices

● iPad device refresh for Kindergarten and 3rd Grade

○ Kindergarten: 420 iPads 10th Gen, AppleCare, cases

○ 3rd Grade: 440 iPads 10th Gen, AppleCare, cases

● Each group will use the device for three years

● The purchase includes AppleCare+, which will cover two instances of accidental damage to the device per year for each of the three years of the lease (6 total instances).

Cost

● The total will be leased from Apple over three years, with annual payments being $132,629 per year.

● The total will be $397,886

● This is part of the District’s device refresh plan and is slightly less than the budget for FY25. The committee agreed and supported the recommendation to bring this item forward for Board approval.

Future Agenda Items

● Cash Flow Outlook / Investment Update

● Full-Day Kindergarten Financing

● Monthly Financials

● Quarterly Financials

● Updated Transportation Walking Map

● District Office Building Update

Adjournment

Sinead Duffy made a motion to adjourn at 6:12 p.m. Margaret Kleber seconded the motion. The motion carried.

https://go.boarddocs.com/il/hccsdil/Board.nsf/files/D423X87972EE/$file/2024_03_12_Fin.%20and%20Fac.%20Com.%20Mtg.%20Min..pdf