RICHMOND RICHMOND PUBLIC SCHOOLS PUBLIC SCHOOLS 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 Public Schools | 301 North 9 th Street | Richmond, VA | www.rvaschools.net
Capital Funds: Update on Reconciliation and Pr Capital Funds: Update on Reconciliation and Proposed Spend Plan oposed Spend Plan Background 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 • on 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. 2 Richmond Public Schools | August, 20, 2018
Capital Funds: Update on Reconciliation and Pr Capital Funds: Update on Reconciliation and Proposed Spend Plan oposed Spend Plan Capital Balances as of 6/30/18 Account Account Balance Balance Notes Notes • These funds can only be used for items that extend the life of a $6,681,182 building (like a roof or HVAC system). School Capital Maintenance • The figure at left includes $1 million specifically for lead abatement. • It also includes the FY 19 appropriation of $1,562,000. • These funds can be used for any maintenance needs, including smaller School Capital Maintenance (Cash) $2,650,109 items such as light bulbs, sinks, or broken windows. • These funds can only be used to upgrade athletic facilities. RPS was High School Athletic Facilities $568,000 not aware of these funds but plans to aggressively spend them. • These funds can only be used to upgrade facilities to accommodate ADA Compliance $975,866 the needs of individuals with disabilities (e.g., the addition of a ramp or elevator). • These are funds left over from the payoff of the school bus lease. RPS School Bus Lease $771,093 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 • Some of these funds are reserved to support the City’s project School CIP Planning and management firm during the construction of Green ES, George Mason Construction (to Build NEW $12,235,946 $12,235,946 ES, Elkhardt-Thompson MS, and George Wythe HS. Facilities) • The figure at left is in addition to the $150 million from the Meals Tax. 3 Richmond Public Schools | August, 20, 2018
Capital Funds: Update on Reconciliation and Pr Capital Funds: Update on Reconciliation and Proposed Spend Plan oposed Spend Plan FY 19 Proposed Use of Additional Capital Balances Requir Requires Council es Council Pr Project oject Funding Sour Funding Source ce Action? Action? 1) Address the most urgent facilities $5.6 million from the School Capital Maintenance Yes (only for the reallocation • needs (leaking roofs and failing HVAC fund of the $5.3 million from the systems) by the end of Summer 2019. Reallocation of $5.3 million from the School CIP School CIP Planning and • (See Appendix 1.) Planning and Construction fund Construction fund) $1 million in funds in the School Capital • 2) Install new water fountains and Maintenance fund that are earmarked for lead hydration stations across the division. Yes (only for the reallocation abatement. Request reallocation of any leftover This work will be completed by the of leftover funds) amount to general use in the School Capital start of school. Maintenance fund. Up to $350,000 from the School Capital • 3) Complete the “Bathroom Blitz.” No Maintenance (Cash) fund 4) Purchase additional buses to replace Yes (for the repurposing of those that are far older than industry $771,000 balance in the School Bus Lease fund these funds from paying off • standard. (See Appendix 2.) a lease to purchasing buses) 5) Address ADA concerns across the $975,866 from the ADA Compliance fund No • division (developing spend plan). 6) Complete a variety of enhancements $568,000 from the High School Athletic Facilities • to our athletic facilities. (See Appendix No fund 3.) 4 Richmond Public Schools | August, 20, 2018
Capital Funds: Update on Reconciliation and Pr Capital Funds: Update on Reconciliation and Proposed Spend Plan oposed Spend Plan Appendix 1: Urgent Facility Needs 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 Replace all windows and sashes. Windows are falling out of the frame, Binford 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 5 Richmond Public Schools | August, 20, 2018
Capital Funds: Update on Reconciliation and Pr Capital Funds: Update on Reconciliation and Proposed Spend Plan oposed Spend Plan Appendix 1: Urgent Facility Needs (cont.) 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-old r Replace leaking 30-year -old roof. (In Pr oof. (In Progr ogress) 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 6 Richmond Public Schools | August, 20, 2018
Capital Funds: Update on Reconciliation and Proposed Spend Plan Capital Funds: Update on Reconciliation and Pr oposed Spend Plan Appendix 1: Urgent Facility Needs (cont.) Location Location Need Need Estimated Cost Estimated Cost Ginter Park Replace leaking 100-year-old (estimate) hot water pipes. $180,000 Replace leaking 40-year-old original heating pumps. Some parts are no Henderson 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 7 Richmond Public Schools | August, 20, 2018
Capital Funds: Update on Reconciliation and Proposed Spend Plan Capital Funds: Update on Reconciliation and Pr oposed Spend Plan Appendix 1: Urgent Facility Needs (cont.) Location Location Need Need Estimated Cost Estimated Cost Richmond Community Replace 20-year-old air conditioner and ice storage (beyond repair). $650,000 Replace failed HVAC and ice storage. Currently renting air conditioner at RTC $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 8 Richmond Public Schools | August, 20, 2018
Capital Funds: Update on Reconciliation and Pr Capital Funds: Update on Reconciliation and Proposed Spend Plan oposed Spend Plan Appendix 2: Rationale for Bus Purchases 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% 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. • 9 Richmond Public Schools | August, 20, 2018
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