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Curtis Nelson: Starting accordingly now.

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Chelsea King: Okay Hello everybody i'm calling in to order this special.

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Chelsea King: board meeting and Mr this week, please call roll.

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Kelly Douglas: Certainly chassis king.

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Kelly Douglas: Present kiersten wire.

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Kelly Douglas: Here Christie Thompson.

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Kelly Douglas: Air Thank you.

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Chelsea King: Okay, great, so we are together today to talk about the.

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Chelsea King: bid award resolution for the new at creek middle school at dollar street and we have your memo remote thanks for putting that together, and the supporting documentation and.

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Chelsea King: i'd like to if it feels good to hand it over to you, so you can let us know what what you want to just what you want the public to now, or what you want to highlight before we make a motion and ask questions.

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Remo Douglas: Thank you chair king.

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Remo Douglas: Yes, we have.

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Remo Douglas: Our bid result.

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Remo Douglas: From last Wednesday afternoon for the new at cricket dollar street project.

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Remo Douglas: We had five pre qualified general contractor bitters on this project, one firm elected to not bid because between inclusion on the list and the bid date they were awarded several other contracts, and so they elected to withdraw.

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Remo Douglas: So we had four bids come in.

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Remo Douglas: Three of them were in scale and in the industry, what I would call extremely close together the three lowest bids, that is.

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Remo Douglas: A big confidence booster for the validity of the bids that we're receiving if we had three separate contractors all come to a very similar conclusion that's a very good sign.

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Remo Douglas: That they weren't missing something as a little bitter.

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Remo Douglas: And that sort of thing.

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Remo Douglas: The low bitter that we're recommending award to is emmerich construction company, they are a substantial firm, as I said they were pre qualified they do a lot of school work they do a lot of hard work.

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Remo Douglas: And there's a high degree of confidence in their ability to pursue this project.

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Remo Douglas: And so you've seen in the memoranda the various numbers there this bid did come in, under the estimate.

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Remo Douglas: Which is good, there was some concern over the year of you know, did our estimate from last spring, you know how valid what's that still.

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Remo Douglas: we've been keeping in touch with our estimators and other parties in the region that track estimating and there was a high degree of confidence that the the estimate was still good and to the extent that the bid came in below estimate that would seem to confirm this.

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Remo Douglas: And the price that we received also does not contemplate a few million dollars and reimbursement that we expect for some additional street work that we're doing for the benefit of the city of Westland.

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Remo Douglas: And when you factor all of that in we're within one and a half a million dollars of the original bass construction budget that we set several years ago.

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Remo Douglas: Anticipating this work before we got into coven and all of these things that increased cost substantially so from our viewpoint, this is an extremely successful result.

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Remo Douglas: By the time we get that reimbursement from the city of Westland.

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Remo Douglas: We expect at this time that.

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Remo Douglas: little to no money will be needed to be brought from any other projects to complete this project.

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Remo Douglas: And so, this This really is a significant mark of success of the design process that happened all of the efficiencies work that we did to bring the estimates down and, in turn, the bid.

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Remo Douglas: So with that i'm i'm open to any questions the board may come up with when integrations.

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Chelsea King: All right, thank you, remote for putting this together, and just for the work that went into getting us announced as a huge project very large percentage of our capital bond, I think, a good place to start would be to have emotion.

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Chelsea King: So i'll move that the board pass resolution number 2021 dash 07 and to award.

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Chelsea King: The project for the new at creek middle school at dollar street.

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Christy Thompson: And i'll second.

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Chelsea King: Okay, so the board chair, with the motion by sheer Thompson of the second and are there questions.

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Christy Thompson: I did have one question and I was trying to find it in the memo and it had to do with.

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Christy Thompson: Remote in the memo you talked about.

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Christy Thompson: something about.

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Christy Thompson: Not doing a first round of.

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Christy Thompson: Now i'm trying to find it sorry i've got my laptop and then i'm looking at the board book on my phone i'm.

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Christy Thompson: something about them not doing the first round of bidding or and that was normal.

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Remo Douglas: Yes, right I think i'm familiar with what you're searching for.

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Christy Thompson: And I wasn't sure what that.

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Remo Douglas: meant.

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Christy Thompson: And I can't find the exact terminology that you use.

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Remo Douglas: yeah sorry I know what you're asking about.

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Remo Douglas: Okay, so what we're talking about is called first tier sub subcontractor disclosures.

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Christy Thompson: Yes.

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Remo Douglas: Can you explain a mouthful.

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Remo Douglas: But what it is, is a form that the contractors are required to submit within two hours of submitting their bid and it outlines the major subcontractors that they are intending to use and the value of those subcontracts.

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Remo Douglas: And what often happens is you get the bids in.

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Remo Douglas: And then the the lowest two or three firms will typically take the time to review all the subcontracts make sure they're solid and then fill out those forms and submit them.

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Remo Douglas: And usually after three or or if you're kind of up there, and the likelihood of the bitters ahead of you.

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Remo Douglas: Being invalid in some way you know if that is that risk goes down, then the contractors simply don't bother to keep someone in the area for two hours and fill out the paperwork and submitted.

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Remo Douglas: That makes them eligible to get the contract, but if you're in fifth place you're probably you know there's almost no case where for contractors ahead of you will be disqualified and then you're going to win.

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Remo Douglas: And so that was the reasoning for for making that statement, two of the four firms elected to not submit those forms and therefore they're not eligible for the contract.

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Remo Douglas: But, as both the first and second bids were deemed valid there there's no loss or risk to the district, and then not submitting those forms.

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Christy Thompson: Okay, thank you for explaining that and so as soon as contractors submit the bids do they all find out what everyone else is bid is so they know kind of where they are and then at that point they decide, is it worth it for me to submit that Thank you okay.

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Christy Thompson: next to me now.

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Remo Douglas: yeah so the so the bids were due at five o'clock last Wednesday and we stand there from about a quarter till and we're watching looking at you know cars sitting in the parking lot that we don't recognize with people sitting in them.

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Remo Douglas: And in the last three or four minutes, they all rush in and they get their envelopes stamped and they've got their bid in.

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Remo Douglas: If someone came in at five o'clock in 30 seconds and handed us a bid, we would hand it back to them on open and refuse to accept so it's a it's incumbent on them to be timely, which of course they generally are.

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Remo Douglas: In this case, no bids were late, and then by about 502 we all agreed that it was in fact beyond five o'clock and that we had received for bids.

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Remo Douglas: And then we go to somewhere where we can all sit and I get out the letter opener and I open each of the bids and I read every number on the bids allowed.

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Remo Douglas: that's part of the public requirement that you have a public bid opening so that there's no perception of malfeasance related to the bid opening an award so each of the firm's has a representative there and they're frantically scribbling down all of the numbers as we read them out.

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Remo Douglas: And so.

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Remo Douglas: While we don't say who is the apparent low bitter because we've not done all of our due diligence at that time there's obviously a strong correlation between being low at the time of bid opening and award.

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Christy Thompson: And again it's not going to affect whether my voting for this, but I just wanted to understand what that meant.

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Christy Thompson: So I understood the process, so thank you for explaining that and that is the only question that I had shirking.

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Chelsea King: All right, thank you.

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Chelsea King: I do have a handful of questions and while I.

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Chelsea King: Totally respect the process that you went through and that we're following the typical lowest responsive competitive bid.

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Chelsea King: And I think also we've been moving toward a larger discussion over over the years of some other factors and so.

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Chelsea King: My questions are related to some of those things we've been talking about for some years, particularly as.

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Chelsea King: I think, is this maybe 20 or 25% or something of our entire capital bond budget so it's a significant contract to be awarding.

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Chelsea King: And so, my first question is related to district goal number one and i'm curious if emmerich construction company has a diversity equity and inclusion statement or anything along those lines.

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Remo Douglas: Sure, so as briefly mentioned, this was a.

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Remo Douglas: Alternative procurement method, to the extent that we pre qualified bitters and then we have the competitive straight bid and so each of those firms was required to submit on a number of criteria, including.

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Remo Douglas: inclusiveness, as well as apprenticeship opportunities and so emmerich did speak to it, they spent they had about half a page of their document that they submitted speaking to their inclusive practices So yes, they have a program around.

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Chelsea King: They have a statement around their inclusive at practices and then you mentioned.

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Chelsea King: I didn't see it on their websites, maybe I just didn't miss I maybe I missed it that's Nice that they included it in the.

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Chelsea King: in their bid.

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Chelsea King: You mentioned an apprenticeship program and you know we we just passed this policy, DJ see, and so I know that we're going to be working on bringing your resolution before the board.

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Chelsea King: Early next year and so these you know these questions don't necessarily.

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Chelsea King: apply to this bid but they're there they've been so relevant to the discussion we've been having and you did mention apprenticeship program, can you tell me a little more about what emmerich construction company is doing with apprenticeship.

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Remo Douglas: Sure, perhaps i'll read off a couple of highlights from their.

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Remo Douglas: document that they had proposed with because I think I think it will answer some of these questions.

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Remo Douglas: So regarding diversity and apprenticeships, they promote diversity and contracting and employment through engaging with a variety of diversity and inclusiveness programs in the area there's a lot of.

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Remo Douglas: nonprofit organizations that are working to connect big general contractors with various subcontractor pools they're heavily engaged in network their contracts to MW ESP firms in the last four years exceeded $38 million.

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Remo Douglas: Their past project apprenticeship participation rate average 20 to 24% of their work hours.

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Remo Douglas: They participate host and sponsor a number of annual events they call meet the PRIMES events which was referring to prime contractors or general contractors.

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Remo Douglas: Essentially, seminars in opportunities to get to have small emerging businesses get to meet some of these larger firms get to interact with their estimating staff and learn how to be successful at submitting bids.

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Remo Douglas: With some of these larger contractors and they also host their own independent just emmerich's specific workshops bringing in a number of small firms.

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Remo Douglas: And just having an open dialogue with their leading estimators and working through you know, step by step, this is how they submit subcontract bids to emmerich.

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Remo Douglas: They also spoke in their proposal about breaking up projects, meaning breaking up subcontracts into multiple pieces, in order to give some of those firms, an opportunity, even on larger projects.

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Remo Douglas: It gave a lot of confidence to me in answering that criteria of the pre qualification process to have $38 million in MW SP firms in four years that's that's a lot.

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Remo Douglas: and spoke to their commitment.

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Kathy Ludwig: email for those listening, who may not be familiar with some of the vernacular could you explain what m w E s P stands for.

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Remo Douglas: Sure yeah that's technically that specific acronym is minority and women owned emerging small businesses.

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Remo Douglas: The acronym as, as with many acronyms these days continues to grow and folks have sort of just let it remain truncated.

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Remo Douglas: But that also involves disabled and veteran owned businesses as well generally in common usage and it speaks to a class of contractors that are relatively young small business that are emerging small business term is key.

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Remo Douglas: And whether or not they go through the formal certification process to achieve that that technical definition.

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Remo Douglas: we're seeing area general contractors focusing a lot on developing relationships with those new young firms.

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Remo Douglas: which has been great to see as part of these pre qualification process.

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Kathy Ludwig: Thank you, looks like we have a question from director Wyatt.

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Chelsea King: Yes, Director wait, is it Okay, if I just finished one more question and then i'll yield the floor.

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Kirsten Wyatt: I just had one just quick point of clarification, and I appreciate your question, Dr king, I was pleased to see that.

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Kirsten Wyatt: The President of the Executive Board for the portland workforce alliance which is a group that's really promoting.

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Kirsten Wyatt: Student engagement in career and technical education and it's actually from emory construction and so pleased to see that it's not just a statement that they put in their bed.

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Kirsten Wyatt: But also, you know, a practice that that living and I, you know I my experience with the homework for some clients, is that they are definitely aligned with the policy that we just passed and so just wanted to point that out as well.

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Chelsea King: awesome, thank you for that, and I think this, I have one more question thanks for letting me ask several in a row here, and you know when we start to work on this resolution for next year, one of the things that we discussed last Monday that we passed was this.

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Chelsea King: resolution could specify requirements for the contractor to clarify their health plan and I apologize I didn't give you much advanced notice on this, but in.

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Chelsea King: practice for what will start to do, and after that resolution hopeless past I do you know anything about the type of health plan that that emmerich construction provides for their workers.

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Remo Douglas: I do not, we don't have any specific comments I did reread through that that would be kind of into the details beyond what they would typically propose with.

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Remo Douglas: So, certainly, I would expect that they're compliant with law and employees have a certain number of hours and all those sorts of things would they be required.

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Remo Douglas: Pursuant to the eventual creation of or or designation of Community benefit contracts, now the district will need to consider for each contract that might be designated.

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Remo Douglas: What those levels of apprenticeship, and what the health plan requirements would be that's that would be on the district to define that.

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Remo Douglas: Which is something we've not done before, so there would be some time and consideration needed to figure that out and learn what is reasonable, practical and achievable and kind of weighing the pros and cons of what levels, one would put in and for which contracts, we might use those.

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Remo Douglas: its entire entirely possible that stringent requirements like that could actually.

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Remo Douglas: create barriers for some of our emerging small businesses who don't have some of that office complexity.

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Remo Douglas: So those are our conversations and studies that I would look forward to.

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Remo Douglas: But will need to be thought all is how we go about it in order to have the the intended impact.

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Chelsea King: Sorry, and thank you, Director white or vice your Thompson do either of you have any further questions or comments.

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Kirsten Wyatt: i'll be supporting this resolution and I just want to give thanks for the careful thought and work that went into this it's always to me it's a true superpower, to be.

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Kelly Douglas: able to.

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Kirsten Wyatt: Budget and estimate project of the scope and size and then have the bids come in so close to what what we're anticipating and i'm also just always taken by.

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Kirsten Wyatt: How all inclusive this project is and so as our Community looks at all of the things that are included in this very large price tag and the end result being a brand new.

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Kirsten Wyatt: middle school, I mean it's really impressive, so thank you for your work and getting us to the point where we are able to make this decision.

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Pat McGough: Okay, if I may um you know.

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Last.

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Pat McGough: That the quarterly report on the full financial outlook of the bond, and I know there's a lot of questions but i'm going to T ri mo up again to describe how that project brings us closer into alignment with the overall budget um So if you could speak to that remote.

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Remo Douglas: yeah so all respond to director Wyatt and and then dovetail right into that.

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Remo Douglas: Speaking to a project.

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Remo Douglas: coming in close to budget.

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Remo Douglas: That was not a small thing on this project.

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Remo Douglas: This is a significant project is complex.

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Remo Douglas: And Rebecca grant and Rebecca Sucre at IBM group and all of the team that worked underneath them, as well as our project manager Angela caffery.

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Remo Douglas: Put an incredible amount of time into this project and we've talked about you know changes and cost and schedule and things related to bond.

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Remo Douglas: And we've seen some of that obviously.

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Remo Douglas: But the.

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Remo Douglas: The biggest impact in the Office here is the number of hours, it takes to get this done.

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Remo Douglas: These folks are working very, very hard and they're working long hours.

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Remo Douglas: And the success that we have today through this.

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Remo Douglas: contract.

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Remo Douglas: is due in no small part to their commitment to get it done we met with our Civil Engineers last Friday, and I think them time and again.

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Remo Douglas: getting a job, like this designed in a way that's very efficient for earthwork.

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Remo Douglas: was very complex and they worked long and hard at it and they worked a lot longer than they thought they were going to, but in the end we've got a bid that we can afford.

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Remo Douglas: So just want to say that I am the one who shows up and you see my face on the screen and I was certainly involved, but those three gals were the true leaders of this project and, as we talked about inclusiveness.

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Remo Douglas: To have those three women and as the true project leads for a project of this size and have it goes a wonderfully well like is telling of of the success that you can have.

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Remo Douglas: In terms of the program budget impact Angela and I went through the project budget this morning and we reduced the estimated cost of completion by over a million dollars, this morning, as a result of this bid.

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Remo Douglas: We believe there's more to come, but we're waiting for you know contracts to be executed to get the earth work well underway to ensure that there's confidence there.

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Remo Douglas: And that doesn't account for a few million dollars in funds that we expect to see from our partnerships with the city so.

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Remo Douglas: In time, this will be a multimillion dollar reduction to the expected costs to build the Program.

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Chelsea King: Dr Ludwig how was going to say something, and I think, maybe by sure Thompson to.

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Kathy Ludwig: yeah I was actually going to ask you to speak to what.

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Kathy Ludwig: pat mcgough just asked him to speak to we had this report on Monday and and there was this chart remote and I think when citizens look at.

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Kathy Ludwig: The mind that says new middle school that dollar and they see original budget 78 million approved change, you know, so how, how does someone now read that chart.

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Kathy Ludwig: And come alongside hearing now this public bid process and understand where they see something different, well, we see something different written in the chart next month or next quarterly report.

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Kathy Ludwig: than what we've got there which.

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Kathy Ludwig: Has that original budget number.

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Remo Douglas: Right so.

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Remo Douglas: yeah what I was hoping to get there and and perhaps failed to was.

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Remo Douglas: We just reduced the expected cost of that project by over a million dollars this morning as a response to this bid, we expect that that number will increase will.

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Remo Douglas: improve further in the coming months as we get into the contract and we develop a confidence that the bid does in fact cover everything that we're getting you know the earthwork his commands that we're not finding anything unexpected underground all of those sorts of things so.

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Remo Douglas: What the Community should expect for a fourth quarter 2021 is to continue to see the financial trajectory of the program moving towards balance.

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Remo Douglas: I don't know that the program will show balanced just yet there's a whole lot of things in the next couple of weeks that will be diving through.

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Remo Douglas: But we are, overall, seeing.

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Remo Douglas: Success across the program Wilson ville high schools auditorium project is coming out of the ground.

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Remo Douglas: we've discovered what there is to discover underground already we did okay financially in that portion of the project, we believe that's on good footing the other projects from this year are also performing as expected.

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Remo Douglas: And so we should continue to see that.

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Remo Douglas: Estimated or what we say in the report forecasted over under that overage will continue to decrease.

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Pat McGough: So I might just and when you when we build a budget, there are many unknowns um so you place a lot of money in.

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Pat McGough: Trying to cover the potential for those unknowns as the projects begin to take shape those unknowns become known and then the uncertainty disappears and that's what we're seeing here.

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Chelsea King: Richard Thompson did I see that you've had a hand up earlier.

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Christy Thompson: All I was going to say is I was just going to reiterate exactly what director, why it said, like agree with everything she said so that's it.

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Chelsea King: yeah I also echo a director Wyatt said when I saw that bond report from Kim Jordan and the photos and everything this school is going to be a showstopper it is.

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Chelsea King: The the photos are gorgeous and you know, the amount of projects that are going it's a huge price tag but the number of projects that are included.

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Chelsea King: Under this big project are enormous so it's you know it'll it'll be around for many, many, many years to come and.

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Chelsea King: i'm very pleased with the process that went into this as well it's been a very long public process as well with receiving input on the design and all the things that went into this so very excited about it.

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Remo Douglas: And I.

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Chelsea King: think your team rainbow sorry to interrupt please, thank you, that the women that you described, please extend the board's gratitude to them as well.

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Remo Douglas: I will certainly do that and i've given them mine, time and again in the last few days, and that Community connection is is very important, of course.

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Remo Douglas: We started some of the prep work towards the construction, a couple of weeks ago, and there was will say hi Community interest in that activity and so that two weeks ago I spent about 30 hours of my, week out standing in the street talking with anyone who wanted to talk answering questions.

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Remo Douglas: and go over and over you know what was happening what the next steps were you know where's the sports field, going to be where's the school going to be those sorts of questions.

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Remo Douglas: And you know that neighborly conversation needs to continue throughout this project, it will not be quiet.

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Remo Douglas: there's no way to do this silently.

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Remo Douglas: And we need to do a good job, engaging with those neighbors throughout the construction and we started that.

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Remo Douglas: Passing of that torch from me as the primary folk person that folks are talking with to Angela as the project manager the contact information that we're putting out is to her phone to her email.

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Remo Douglas: And while i'll certainly be involved as with past projects when we get into this phase we start turning it more and more to the project manager to answer those questions.

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Remo Douglas: As Angela will be the person that can most directly connect and engage with the contractor and address any concerns that come up so we'll continue to see that and our commitment is still very much there, we need to finish strong in the Community engagement aspect of this project.

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Remo Douglas: And we've got another you know, two years from now we'll be wrapping up so lots more to do on that front.

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Chelsea King: Okay, thank you, so I, it seems to me that we're ready to call a vote.

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Kelly Douglas: Okay, thank you Chelsea king.

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I.

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Kelly Douglas: Christie Thompson hi justin when.

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I.

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Kelly Douglas: Thank you.

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Chelsea King: All right, thank you, everybody was present today and for all the good questions, and thank you, remote and your team and.

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Kathy Ludwig: Congratulations.

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Chelsea King: yeah.

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Kathy Ludwig: you're gonna build a school.

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Christy Thompson: At.

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Chelsea King: School yeah yes, thank you to our public for funding this project.

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yeah.

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Chelsea King: All right, thank you, the meeting is adjourned.

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Pat McGough: Thank you all.

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Thanks.