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“All of the bids came in under the estimates,” YME Superintendent Al Stoeckman explained to board members gathered at a second school board meeting this month that was held Monday night. He went on to explain that the cost of the health and safety project was projected at $11,660,000 and that the actual bids were let for a total cost of $8,581,000, $3 million under estimate. “We can almost fund the entire project with the interest- free money.”
The interest-free money Stoeckman was referring to are the QZAB bonds allocated to YME through the Minnesota Department of Education. The QZAB bonds are a part of the stimulus dollars awarded to the state through the American Recovery and Reinvestment Act of 2009 for educational construction projects.
Stoeckman had just received information from Ehlers and Associates minutes before the meeting that showed how the QZAB funds impacted the taxes. Then he posed a question to the board: “With the total project costs cut almost in half, do we add more or do we stick with the original project?”
The additions Stoeckman was referring to include improvements to the fire protection systems in the school buildings. Stoeckman reminded board members that YME has been cited by the Fire Marshall and that head custodian Francis Staab has been gathering information and estimates on the costs to bring the school into compliance.
“We need to have a plan in place to make the improvements,” Staab shared. The plan has two options: the first option is to add fire doors and fire dampers; the second option is to install sprinkler systems in both buildings. “It’s almost cheaper to put in the sprinklers than put in fire doors and fire dampers,” stated Staab. “When we start taking the ceilings down to put in the new ductwork, it is a lot cheaper to put in sprinklers now, than to come back in three years and install the sprinklers.” Installing sprinklers will also reduce insurance costs and reduce the costs of fire detector inspections.
In addition, Staab inspected all the doors in the two buildings and found that 16 doors should be replaced. Most of the doors are exterior doors that are no longer energy efficient. The doors in the ’65 building that lead to Bert Raney Elementary and the doors in the Espeland Gym were examples. “Those door are in bad shape,” said Staab.
In preparation for the meeting, the Buildings and Grounds and Finance Committee had met last week to discuss the financial impacts of the health and safety project. During that meeting, those members were given information on the cost of installing a sprinkler system and replacing the doors.
The estimate that Staab shared for installing a sprinkler system in both building and replacing the 16 doors came to $683,000. The recommendation of the Buildings and Grounds and Finance Committee was to move ahead and make those improvements concurrent with the health and safety project improvements.
During a lengthy discussion, Board member Larry Lee commented, “The more I think about it we have an asset in our buildings that we need to maintain. We have an optimum way to do what’s best for our kids and optimum financing. There are a lot of stars lining up here to do something significant with these buildings.”
“No action will be taken tonight,” shared Stoeckman. “The action item to put in a sprinkler system and replace the doors will be on the May agenda. That way we’ll have time to think it over.”
Tax Impact
“QZAB funds have shortened the life of the bond and reduced the tax liability,” Stoeckman shared as he presented the board with the preliminary analysis of Tax Impact for Potential Alternative Facilities Bonds prepared by Ehlers and Associates. Prior to the availability of the QZAB bonds the Tax Impact showed that a residential homestead valued at $100,000 would be taxed $109 per year for 20 years. The new Tax Impact shows that a residential homestead valued at $100,000 would be taxed at $71 per year for 17 years. There is a similar drop in the tax impact on agricultural homestead property, as well.
The newest analysis includes two possible scenarios: a tax impact for $8,800,000 for the original health and safety project and a tax impact for $9,510,000 if the board votes to go ahead with the fire protection projects and replacing the doors with energy efficient doors.
Graphs that compare the resulting total tax for the YME district with the total taxes of area school districts are included on the front page of this issue of the Advocate Tribune.
Before moving onto other business, YME Board member Steve Zumhofe publicly thanked Superintendent Stoeckman, “As you all know, I was the only board member that voted against the project. Now I would like to publicly thank Al for all the work on finding the funding for the project.”
Hearing Date
Superintendent Stoeckman informed the board that a hearing date on the complaint filed by district taxpayers is set for May 4, at 10:00 a.m. at the Renville County Courthouse.
“Our attorneys will include the new financing impact in the affidavit that is being prepared for the hearing,” shared Stoeckman. He went on to explain that Kevin Rupp an attorney representing YME in the complaint has advised the district to put all work on the health and safety project ‘on hold’ until after the May 4 hearing date. Stoeckman indicated that there are many avenues the law suit could take and that it could take “several weeks before the judge rules.”
One fact that Stoeckman made clear to the board is that the availability of using QZAB funds has a limited time window. YME only has until August 31, 2010 to request the QZAB funds. He shared that if an injunction is put in place by the court that goes beyond the August 31 deadline the district will lose the entire $10.7 million dollars in zero interest/low interest financing on the project.
Technology
While no action was taken the board took advantage of their meeting time to discuss several other topics. One discussion was to move the district offices into the lower level of the east wing of the 30s building and moving the high school office from the ’65 building into the current district office space.
Stoeckman also took the opportunity to inform the board that the district is looking at installing wireless internet throughout both buildings since the ceilings will be taken out during the health and safety project. The technology improvements would allow the district to be ready for future technology needs. The cost of the wireless internet would come out of the technology capital funds and possibly through grant dollars.
In addition to the wireless internet the district is looking at installing 35 sets of infrared audio systems in classrooms. Currently the district has FM audio systems where the FM frequencies often interfere with other transmissions in the buildings and surrounding area. The cost of the wireless internet would come out of the technology capital funds and possibly through grant dollars.
“All of the bids came in under the estimates,” YME Superintendent Al Stoeckman explained to board members gathered at a second school board meeting this month that was held Monday night. He went on to explain that the cost of the health and safety project was projected at $11,660,000 and that the actual bids were let for a total cost of $8,581,000, $3 million under estimate. “We can almost fund the entire project with the interest- free money.”
The interest-free money Stoeckman was referring to are the QZAB bonds allocated to YME through the Minnesota Department of Education. The QZAB bonds are a part of the stimulus dollars awarded to the state through the American Recovery and Reinvestment Act of 2009 for educational construction projects.
Stoeckman had just received information from Ehlers and Associates minutes before the meeting that showed how the QZAB funds impacted the taxes. Then he posed a question to the board: “With the total project costs cut almost in half, do we add more or do we stick with the original project?”
The additions Stoeckman was referring to include improvements to the fire protection systems in the school buildings. Stoeckman reminded board members that YME has been cited by the Fire Marshall and that head custodian Francis Staab has been gathering information and estimates on the costs to bring the school into compliance.
“We need to have a plan in place to make the improvements,” Staab shared. The plan has two options: the first option is to add fire doors and fire dampers; the second option is to install sprinkler systems in both buildings. “It’s almost cheaper to put in the sprinklers than put in fire doors and fire dampers,” stated Staab. “When we start taking the ceilings down to put in the new ductwork, it is a lot cheaper to put in sprinklers now, than to come back in three years and install the sprinklers.” Installing sprinklers will also reduce insurance costs and reduce the costs of fire detector inspections.
In addition, Staab inspected all the doors in the two buildings and found that 16 doors should be replaced. Most of the doors are exterior doors that are no longer energy efficient. The doors in the ’65 building that lead to Bert Raney Elementary and the doors in the Espeland Gym were examples. “Those door are in bad shape,” said Staab.
In preparation for the meeting, the Buildings and Grounds and Finance Committee had met last week to discuss the financial impacts of the health and safety project. During that meeting, those members were given information on the cost of installing a sprinkler system and replacing the doors.
The estimate that Staab shared for installing a sprinkler system in both building and replacing the 16 doors came to $683,000. The recommendation of the Buildings and Grounds and Finance Committee was to move ahead and make those improvements concurrent with the health and safety project improvements.
During a lengthy discussion, Board member Larry Lee commented, “The more I think about it we have an asset in our buildings that we need to maintain. We have an optimum way to do what’s best for our kids and optimum financing. There are a lot of stars lining up here to do something significant with these buildings.”
“No action will be taken tonight,” shared Stoeckman. “The action item to put in a sprinkler system and replace the doors will be on the May agenda. That way we’ll have time to think it over.”
Tax Impact
“QZAB funds have shortened the life of the bond and reduced the tax liability,” Stoeckman shared as he presented the board with the preliminary analysis of Tax Impact for Potential Alternative Facilities Bonds prepared by Ehlers and Associates. Prior to the availability of the QZAB bonds the Tax Impact showed that a residential homestead valued at $100,000 would be taxed $109 per year for 20 years. The new Tax Impact shows that a residential homestead valued at $100,000 would be taxed at $71 per year for 17 years. There is a similar drop in the tax impact on agricultural homestead property, as well.
The newest analysis includes two possible scenarios: a tax impact for $8,800,000 for the original health and safety project and a tax impact for $9,510,000 if the board votes to go ahead with the fire protection projects and replacing the doors with energy efficient doors.
Graphs that compare the resulting total tax for the YME district with the total taxes of area school districts are included on the front page of this issue of the Advocate Tribune.
Before moving onto other business, YME Board member Steve Zumhofe publicly thanked Superintendent Stoeckman, “As you all know, I was the only board member that voted against the project. Now I would like to publicly thank Al for all the work on finding the funding for the project.”
Hearing Date
Superintendent Stoeckman informed the board that a hearing date on the complaint filed by district taxpayers is set for May 4, at 10:00 a.m. at the Renville County Courthouse.
“Our attorneys will include the new financing impact in the affidavit that is being prepared for the hearing,” shared Stoeckman. He went on to explain that Kevin Rupp an attorney representing YME in the complaint has advised the district to put all work on the health and safety project ‘on hold’ until after the May 4 hearing date. Stoeckman indicated that there are many avenues the law suit could take and that it could take “several weeks before the judge rules.”
One fact that Stoeckman made clear to the board is that the availability of using QZAB funds has a limited time window. YME only has until August 31, 2010 to request the QZAB funds. He shared that if an injunction is put in place by the court that goes beyond the August 31 deadline the district will lose the entire $10.7 million dollars in zero interest/low interest financing on the project.
Technology
While no action was taken the board took advantage of their meeting time to discuss several other topics. One discussion was to move the district offices into the lower level of the east wing of the 30s building and moving the high school office from the ’65 building into the current district office space.
Stoeckman also took the opportunity to inform the board that the district is looking at installing wireless internet throughout both buildings since the ceilings will be taken out during the health and safety project. The technology improvements would allow the district to be ready for future technology needs. The cost of the wireless internet would come out of the technology capital funds and possibly through grant dollars.
In addition to the wireless internet the district is looking at installing 35 sets of infrared audio systems in classrooms. Currently the district has FM audio systems where the FM frequencies often interfere with other transmissions in the buildings and surrounding area. The cost of the wireless internet would come out of the technology capital funds and possibly through grant dollars.
City-wide
Garage Sale
The board agreed that allowing the school to participate in the upcoming city wide garage sale this weekend is a good idea. “It’s a way we can reduce and recycle some of the equipment, books, and furnishings that we no longer use,” shared Stoeckman. Instead of putting a price on an item, or auctioning the item off, the board agreed to a “Free Will” sale. Individuals will be allowed to come, make a donation and take what they want. Elementary teachers will be bringing the items to the BRE gym late Friday afternoon. “I’ll be there so people can come on Friday evening or during the day on Saturday.”
