Ashland School District No. 5, Jackson County, Oregon - The Capital Project Advisory Committee met in a work session Monday, September 15, 2008 at 7:00 p.m. in the District Board Room. Present were:
Juli Di Chiro
I. Call to Order
The meeting was called to order at 7:03 p.m. by
II. Roll Check
All members were present with the exception of Ruth Alexander, William Anderson, Dahna Black, Shawn Grimmesey, Jeff Schlecht and Rick Whitley.
III. Review of Bond Investments and Earnings
Jill Turner reviewed the bond investments and earnings. She discussed the volatility of the investment market due to the financial crisis on Wall Street. Our fixed income investment portfolio is highly invested in Fannie Mae and Freddie Mac. However, the federal government has stepped in to ensure the solvency of those two institutions. Therefore, we do not anticipate a negative impact in that fund. The state short-term investment pool, however, was invested in Lehman Brothers portfolio, and due to their bankruptcy, the state pool will definitely be impacted. We anticipate about a 1% impact on our investments. Since we currently have approximately $23 million of bond proceeds in the state’s short-term investment pool, we could see an impact of about $230,000. Jill is monitoring the situation closely and working with our consultants from Davidson to determine how to protect the principal and to determine if we should transfer money out of the short-term pool into some other safe investment. The positive news is that we have already gained the amount of interest that we included in our estimated budget, so we do not anticipate it having an impact on our ability to complete any of our adopted projects.
IV. Review of Budget and Schedule Projects
Scott Perala gave a report on the potential costs for the mechanical restoration at Ashland High School. This project includes updating the HVAC system for the science and library building, humanities building, and the administration areas. The operating budget for that project needs to be set at $2,317,411. This budget includes all design and soft costs related to the project and may be overestimated. However, Scott felt strongly that this money should be allocated towards the project to guarantee that it will cover the costs for updating the project. This is approximately $800,000 over what is included in the current high school budget. The project managers will be examining the high school project to determine the overall impact and it is possible that we may need to allocate some of the unallocated interest earnings to accomplish this important project at the high school. We will bring another report on this issue to the next meeting.
Scott reviewed the potential budget impact at Bellview School and the structural issues that had been identified as part of the restoration of the historic portion of the building. We are currently working with the structural engineer to identify all of the issues related to the historic portion, and Heery will work closely with Adroit Construction to develop a change order that will cover the additional costs that will be necessary for that restoration. We anticipate this process will take about one month, and a report should be available for the committee to review at the November meeting.
V. Update on School Projects
Gary DeCock reviewed the updates on the various school projects. With the exception of the two items noted above, the other projects are progressing with no major budget or schedule impacts. The high school project schedule was delayed because of the discussions that needed to occur to reduce the budget. The project management is working with Adroit to come up with a new schedule. It is likely that the high school will not be completed by the beginning of the next school year. We will work closely with the contractor to try to expedite the schedule whenever possible.
VI. Confirm Next Meeting and Agenda
We discussed the option of changing the committee meeting to the third Monday of the month. Because that would cause the report that goes to the committee to already be three weeks old, it was decided that the committee would continue to meet on the first Monday of the month. However, we will not meet in October since that date is only two weeks away from this meeting. The next meeting will be held on November 3, and we will determine at that point whether a December meeting needs to be scheduled.
There being no further business, the meeting adjourned at 8:45 p.m.