Capital Funds Update on Reconciliation and Proposed Spend Plan - - PowerPoint PPT Presentation

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Capital Funds

Update on Reconciliation and Proposed Spend Plan

Presented by: Darin Simmons, Jr., Chief Operating Officer Venue: Richmond School Board Meeting Date: August 20, 2018 RICHMOND RICHMOND

PUBLIC SCHOOLS PUBLIC SCHOOLS

Capital Funds: Update on Reconciliation and Pr Capital Funds: Update on Reconciliation and Proposed Spend Plan

• posed Spend Plan

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Background

Richmond Public Schools | August, 20, 2018

As has been widely publicized, for some time, RPS and the City have shown different balances for the school division’s capital (facilities) balances. To address this, the RPS and City budget and finance teams have worked together over the past several months to reconcile their accounts. Based on this work, the following issues were identified:

• RPS and the City have had different names for the same accounts (e.g., “Planning and Construction” vs.

“Architectural and Engineering”). This has created a great deal of confusion. Going forward, RPS and the City will align on account names.

• RPS and the City have had different processing timelines for invoices. Going forward, RPS and the City will align
• n timelines.
• RPS had been requesting reimbursements against its capital accounts for items that should have been charged to

its operating accounts. Going forward, the City will clarify what expenditures are allowable against capital accounts and RPS will make sure to only submit invoices for these items.

• RPS only recently became aware of certain funds (e.g., High School Athletic Facilities). Going forward, RPS and the

City will meet on a quarterly basis to ensure that the two entities remain 100% aligned.

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Account Account Balance Balance Notes Notes

School Capital Maintenance $6,681,182

• These funds can only be used for items that extend the life of a

building (like a roof or HVAC system).

• The figure at left includes $1 million specifically for lead abatement.
• It also includes the FY 19 appropriation of $1,562,000.

School Capital Maintenance (Cash) $2,650,109

• These funds can be used for any maintenance needs, including smaller

items such as light bulbs, sinks, or broken windows. High School Athletic Facilities $568,000

• These funds can only be used to upgrade athletic facilities. RPS was

not aware of these funds but plans to aggressively spend them. ADA Compliance $975,866

• These funds can only be used to upgrade facilities to accommodate

the needs of individuals with disabilities (e.g., the addition of a ramp or elevator). School Bus Lease $771,093

• These are funds left over from the payoff of the school bus lease. RPS

was not aware that there was a balance in this fund but plans to aggressively spend them on new buses. TOTAL $11,646,250 $11,646,250 School CIP Planning and Construction (to Build NEW Facilities) $12,235,946 $12,235,946

• Some of these funds are reserved to support the City’s project

management firm during the construction of Green ES, George Mason ES, Elkhardt-Thompson MS, and George Wythe HS.

• The figure at left is in addition to the $150 million from the Meals Tax.

Capital Balances as of 6/30/18

Capital Funds: Update on Reconciliation and Pr Capital Funds: Update on Reconciliation and Proposed Spend Plan

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FY 19 Proposed Use of Additional Capital Balances

Pr Project

• ject

Funding Sour Funding Source ce Requir Requires Council es Council Action? Action?

1) Address the most urgent facilities needs (leaking roofs and failing HVAC systems) by the end of Summer 2019. (See Appendix 1.)

• $5.6 million from the School Capital Maintenance

fund

• Reallocation of $5.3 million from the School CIP

Planning and Construction fund Yes (only for the reallocation

• f the $5.3 million from the

School CIP Planning and Construction fund) 2) Install new water fountains and hydration stations across the division. This work will be completed by the start of school.

• $1 million in funds in the School Capital

Maintenance fund that are earmarked for lead

• abatement. Request reallocation of any leftover

amount to general use in the School Capital Maintenance fund. Yes (only for the reallocation

• f leftover funds)

3) Complete the “Bathroom Blitz.”

• Up to $350,000 from the School Capital

Maintenance (Cash) fund No 4) Purchase additional buses to replace those that are far older than industry

• standard. (See Appendix 2.)
• $771,000 balance in the School Bus Lease fund

Yes (for the repurposing of these funds from paying off a lease to purchasing buses) 5) Address ADA concerns across the division (developing spend plan).

• $975,866 from the ADA Compliance fund

No 6) Complete a variety of enhancements to our athletic facilities. (See Appendix 3.)

• $568,000 from the High School Athletic Facilities

fund No

5

Appendix 1: Urgent Facility Needs

Richmond Public Schools | August, 20, 2018

Location Location Need Need Estimated Cost Estimated Cost

ACDC Replace leaking 35-year-old boilers. $220,000 ACDC Replace 35-year-old condensate return system. $100,000 Arthur Ashe Center Replace all 30-year-old roof-top AC units. $1,500,000 Binford Replace all windows and sashes. Windows are falling out of the frame, creating safety issues. $1,000,000 Blackwell Elementary Replace leaking 19-year-old boilers. $160,000 Blackwell Annex Replace 30-year-old chiller. $220,000 Carver Replace leaking 17-year-old boilers. $265,000 Carver Replace leaking 25-year-old roof. $400,000

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Appendix 1: Urgent Facility Needs (cont.)

Richmond Public Schools | August, 20, 2018

Location Location Need Need Estimated Cost Estimated Cost

Cary Replace 25-year-old chilled water pumps. $60,000 Chimborazo Replace leaking 24-year-old roof. $250,000 Chimborazo Replace leaking 30-year-old boilers. $200,000 Fairfield Court Fairfield Court Replace leaking 30-year Replace leaking 30-year-old r

• old roof. (In Pr
• of. (In Progr
• gress)

ess) $280,000 $280,000 Fox Replace leaking 30-year-old roof. $350,000 Francis Replace leaking 20-year-old boiler (only one in building). $150,000 Franklin Military Replace leaking 23-year-old boiler. $180,000 Franklin Military Replace leaking 23-year-old water pumps. $115,000

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Appendix 1: Urgent Facility Needs (cont.)

Richmond Public Schools | August, 20, 2018

Location Location Need Need Estimated Cost Estimated Cost

Ginter Park Replace leaking 100-year-old (estimate) hot water pipes. $180,000 Henderson Replace leaking 40-year-old original heating pumps. Some parts are no longer available. $135,000 Henderson Replace leaking 37-year-old heating pumps. $180,000 Henderson Replace 21-year-old failing HVAC system. $800,000 Henderson Replace leaking chiller. $800,000

• J. B. Fisher

Replace leaking 30-year-old roof. $300,000 John Marshall Fix cracking in brick façade for safety reasons. $200,000 Open Replace leaking 28-year-old boiler. $100,000

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Appendix 1: Urgent Facility Needs (cont.)

Richmond Public Schools | August, 20, 2018

Location Location Need Need Estimated Cost Estimated Cost

Richmond Community Replace 20-year-old air conditioner and ice storage (beyond repair). $650,000 RTC Replace failed HVAC and ice storage. Currently renting air conditioner at $17,560 per year. $850,000 Swansboro Replace leaking 30-year-old boilers. $220,000 Swansboro Replace 30-year-old condensate return system and all traps. $180,000 Summer Hill Replace boilers. $265,000 Summer Hill Replace 24-year-old roof. $200,000 Summer Hill Replace 22-year-old chiller. $160,000

Total: $10,670,000

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Appendix 2: Rationale for Bus Purchases

• Approximately 43% of our bus fleet is 14 years of age or older.
• Industry standards recommend bus replacement at 13 years.
• Maintenance best practices recommends replacement after 10 years due to wear and tear from city driving and new

emission standards.

• RPS proposes using $771,000 to purchase up to 9 additional buses.

Age Age Number of Buses Percent of Fleet

20+ years 45 21% 15-19 years 49 13% 14 years 19 9% 9-13 years 25 12% 6-8 years 21 10% 1-5 years 78 36%

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Appendix 3: Proposed Enhancements to Athletic Facilities

Pr Proposed Pr

• posed Project
• ject

School(s) School(s) Rationale Rationale Appr Approximate

• ximate

Cost Cost Pr Projected Deadline/

• jected Deadline/

Notes Notes

Eight Lane Track John Marshall The current track is literally gravel and only has six lanes. Marshall is the largest comprehensive high school without an 8-lane, modern synthetic track. $350,000 Spring 2019 – Work cannot be completed during football season

• r during the winter

months. Gym Floor Upgrades Armstrong, George Wythe, John Marshall, Thomas Jefferson, Community, Franklin, Brown, Binford, Hill, Elkhardt-Thomson, Westover Hills, Overby Shepherd, Chimborazo Schools were identified by age and condition of gym floors. $176,000 Spring 2019 – Work can be done over winter and spring breaks. Football Field Renovation Thomas Jefferson Safety issues exist due to poor

• drainage. A renovated field

would also provides

• pportunities for additional

sports such as soccer and lacrosse. $55,000 Spring 2019 – Work cannot be completed during football season

• r during the winter

months.