budget-finance-committee-meeting-packet-09-12-13

ORLEANS PARISH SCHOOL BOARD BUDGET & FINANCE COMMITTEE Orleans Parish School Board 3520 General DeGaulle Drive, Suite 4050 New Orleans, LA 70114 September 12, 2013 3:00 PM (Notice: This meeting may be convened up to 30 minutes prior to the posted schedule to facilitate the orderly conduct of business)

Committee Members: Ms. Leslie Ellison, Chair Mr. Woody Koppel Mr. Nolan Marshall

Mr. Ira Thomas, Ex-Officio Mr. Seth Bloom

AGENDA Call to Order

Ms. Leslie Ellison

Adoption of the Agenda Additions/Deletions/Modifications FINANCE ACTION ITEM(S) 1. OPSB Property Auction Update Rationale: Nine properties were advertised for the auction. Prior to the actual auction two properties (John A. Shaw and Lorraine V. Hansberry) were withdrawn based on letters of interest from charter schools. Of the seven remaining properties two (Noble and Thomas A. Edison) received no bids. This was the first auction for these properties.

Recommendation: That the Orleans Parish School Board approves Administrations recommendation for acceptance of bids on the Algiers Bus Barn, Lake Forest site and Seabrook. All properties have been subject to multiple prior auctions with minimal to no interest.

2. Approval of an Exchange of Idaho & Seine property (owned by OPSB) for Fox Playground (Owned by the City).

Rationale: Fox Playground is adjacent to LB Landry and will provide additional green space for the school’s use.

Recommendation: That the Orleans Parish School Board approves the exchange of Idaho & Seine property (owned by OPSB) for Fox Playground (Owned by the City).

3. Approval of a letter of intent for the sale of John A Shaw Elementary School in accordance with LA R. S 17:3982 Rationale: Recommendation: That the Orleans Parish School Board approves the sale of John A Shaw Elementary School to Encore Academy in accordance with LA R. S 17:3982 In accordance with the Americans with Disabilities Act, if you need special assistance at a public meeting of the Orleans Parish School Board, please contact the Board Office at 504-304-5678, or by email at BoardOffice@nops.k12.la.us , describing the assistance that is necessary.

4. Recommendation on Lake Forest Charter School Rationale: On July 10, 2013 the OPSB Purchasing Department released Invitation to Bid (ITB) no. Project no. 2012-0505-0001 for New Lake Forest School at Greater St. Stephen Site. The ITB was advertised in the Times-Picayune and posted to the OPSB website. A pre-bid conference was held on June 20, 2013 at 2:00 p.m. and there were three (3) contractors represented. Recommendation: That the Orleans Parish School Board accepts the lowest responsive bid from McDonnel Group, LLC in the amount of $33,895,000.00 and all alternatives totaling $1,870,000, for a grand total of $35,765.000.00, and authorize the OPSB General Counsel to prepare a contract for signatures of the Board President and the contractor. In addition, OPSB Administration requests that the OPSB approve a 10% contingency for any unforeseen conditions. Additional work will not be performed until approved by the OPSB Executive Director of Operations by way of a field change order 5. Chevron Project Lead the Way & Ben Franklin Elementary School Rationale: Chevron is funding Project Lead the Way for Ben Franklin Elementary School.

The award will fund teacher training, supplies and software to implement an engineering pathway for 7th and 8th grade students at Ben Franklin "Extension." The students will study different facets of engineering design each year and end with a culminating project in 8th grade. This project extends the excellent science and math program currently offered at the school.

Recommendation: That the Orleans Parish School Board approves the acceptance of the Chevron Project Lead the Way Ben Franklin Elementary School award that will fund teacher training and travel, required equipment, computers, supplies and software in the amount: year 1- $31,000; year 2-10,000.00 for a total of $41,000.

6. Resolution 27-13: McDonogh 42 Transaction Summary Approval Rationale: A resolution approving the form of a Cooperative Endeavor Agreement with the Recovery School District to implement a leveraged financing transaction for McDonogh 42 Elementary School in accordance with the School Facilities Master Plan as revised in October 2011 (the “Master Plan�); approving the proceedings adopted by the Board of Directors of the Orleans Schools Facilities Foundation, Inc. and providing for other matters in connection therewith.

Recommendation: That the Orleans Parish School Board adopts Resolution 27-13: McDonogh 42 Transaction Summary Approval.

PURCHASING ACTION ITEMS Consent Agenda: 1. Compass Odyssey Purchase Approval Leslie Rey Rationale: Compass Odyssey was approved by the Superintendent at the total cost of $97,549.00. Added cost of $36,525.00 to is needed to add Alice Harte Elementary, Einstein Charter School and Mahalia Jackson Elementary to the subscription. Since the cost now

In accordance with the Americans with Disabilities Act, if you need special assistance at a public meeting of the Orleans Parish School Board, please contact the Board Office at 504-304-5678, or by email at BoardOffice@nops.k12.la.us , describing the assistance that is necessary.

exceeds $100,000 a board item is needed to get the approval to have the three schools added.

Recommendation: That the Orleans Parish School Board approves the added costs to cover the three referenced sites.

ADOPTION OF CONSENT AGENDA DISCUSSION/INFORMATION ITEM(S) 

Revenue Allocation Report ADJOURNMENT

In accordance with the Americans with Disabilities Act, if you need special assistance at a public meeting of the Orleans Parish School Board, please contact the Board Office at 504-304-5678, or by email at BoardOffice@nops.k12.la.us , describing the assistance that is necessary.

Orleans Parish School Board August 22, 2013 Auction Report

Background:

OPSB conducted an auction of surplus properties on Auguust 22, 2013. The auction was conducted in accordance with state law and board policy.

Results:

Nine properties were advertised for the auction. Prior to the actual auction two properties (John A. Shaw and Lorraine V. Hansberry) were withdrawn based on letters of interest from charter schools.

Of the seven remaining properties two (Noble and Thomas A. Edison) received no bids. This was the first auction for these properties.

The following properties were sold at the auction on an unrestricted basis.

Timbers I and II $1,392,000 Sold at 80% of appraised value with one bid. This was the second auction for this property.

Oretha Castle Haley $450,000

Appraised value of this property was $131,750.

This property received high interest with extremely competitively bidding. Sold on 48th bid.

The following properties were sold subject to board approval. They have been offered at three or more auctions in the past. Under state law OPSB has the ability to accept any bid on these properties.

Algiers Bus Barn $375,000

Appraised value on this property is $625,000.

Highest bid at previous auctions was $75,000.

Good interest at this auction. Sold on 8th bid.

Lake Forest Site $36,000

Appraised at $124,500. Highest bid at previous auctions was $20,000. Good interest at this auction. Sold on 14th bid.

Seabrook

$18,000

Appraised at $44,700, Highest bid at previous auction was $5,000. Good interest on this auction.

Sold on 11th bid.

Recommendation:

Administration recommends acceptance of all bids that were subject to Board Approval.

Multiple attempts have been made to sell these properties. Previous attempts have resulted in no bids or minimum bids. For each property, the bids received in this auction substantially exceeded the previous high bid which was rejected by the Board.

September 9, 2013 NEW LAKE FOREST SCHOOL AT GREATER ST. STEPHENS SITE Requestor: Herman K. Taitt, Jr., Executive Director of Operations Advertisement Dates: The Times Picayune Wednesday, June 5, 2013 Wednesday, June 12, 2013 Wednesday, June 19, 2013 OPSB Website - continuously from June 5 through August 8, 2013 Publicly Opened: August 8, 2013 Vendors Receiving Bid Package: Unknown

Vendors Responding: 3

Principals of the Company: THE MCDONNEL GROUP, LLC (METAIRIE, LA) President: Allan Mcdonnel

Background Information: On June 5, 2013 the OPSB Purchasing Department released Invitation to Bid (ITB) no. Project no. 2012-0505-0001 for New Lake Forest School at Greater St. Stephen Site. The ITB was advertised in the Times-Picayune and posted to the OPSB website. A pre-bid conference was held on June 20, 2013 at 2:00 p.m. and there were three (3) contractors represented.

On August 8, 2013 at 2:00 P.M. a public bid opening was conducted at the OPSB offices by the Purchasing Department.

The bid results were as follows:

Contractor 1 McDonnel Group 2 Wharton-Smith 3 Core Construction

Total Base + Alternates 35,765,000.00 36,861,000.00 37,309,000.00

Base 33,895,000.00 35,207,000.00 35,835,000.00

1 180,000.00 186,000.00 173,000.00

Alternates 2 330,000.00 128,000.00 324,000.00

3 1,360,000.00 1,340,000.00 977,000.00

McDonnel Group has committed to a DBE goal of 35%.

RECOMMENDATION:

That the Orleans Parish School Board accepts the lowest responsive bid from McDonnel Group, LLC in the amount of $33,895,000.00 and all alternates totaling $1,870,000, for a grand total of $35,765.000.00, and authorize the OPSB General Counsel to prepare a contract for signatures of the Board President and the contractor. In addition, OPSB Administration requests that the OPSB approve a 10% contingency for any unforeseen conditions. Additional work will not be performed until approved by the OPSB Executive Director of Operations by way of a field change order.

ORLEANS PARISH SCHOOL BOARD RESOLUTION NO. 27-13 The following resolution was offered by _____________ and seconded by _____________: A resolution approving the form of a Cooperative Endeavor Agreement with the Recovery School District to implement a leveraged financing transaction for McDonogh 42 Elementary School in accordance with the School Facilities Master Plan as revised in October 2011 (the “Master Plan”); approving the proceedings adopted by the Board of Directors of the Orleans Schools Facilities Foundation, Inc. and providing for other matters in connection therewith.

WHEREAS, the Public School Facilities Financing Act contained in La. R.S. 17:100.10 (the “PSFFA”) authorizes the Orleans Parish School Board (the “School Board”) and the Recovery School District (“RSD”) to enter into financing arrangements through public benefit corporations (“PBCs”) created by the School Board and through such PBCs with other private parties to leverage additional funds (a “Leveraged Financing”) not otherwise available to the School Board and/or the RSD to construct new schools and/or to renovate existing school properties; and WHEREAS, HOPE Enterprise Corporation (the “HOPE CDE”) has provided a commitment to use a portion of its New Market Tax Credit Allocation (“NMTC Allocation”) to enter into a Leveraged Financing to complete the renovation and construction of the McDonogh 42 Elementary School (the “McDonogh 42 School”); and WHEREAS, the School Board’s General Counsel and Bond Counsel have drafted a Cooperative Endeavor Agreement (a “CEA”) that the School Board will execute with the RSD to implement a Leveraged Financing for the McDonogh 42 School under the School Facilities Master Plan as revised in October 2011 (the “Master Plan”) through the Orleans Schools Facilities Foundation, Inc. (the “OSFF”) organized under the provisions of the PSFFA as a wholly owned nonprofit subsidiary of the School Board; and WHEREAS, the PSFFA authorizes the School Board to make loans and/or guarantees to a OSFF or to other third parties, including to one or more limited liability companies (an “LLC”) as may be necessary for the generation of additional funds in a Leveraged Financing in order to facilitate the renovation and/or construction of schools such as the McDonogh 42 School in accordance with the Master Plan pursuant to the PSFFA; and WHEREAS, OSFF has approved proceedings this date anticipating the approval of the CEA which provides for a Master Lease of McDonogh by the School Board and RSD to OSFF and a Ground Lease of McDonogh 42 to the McDonogh 42 School Facility, LLC (the “QALICB”) in connection with the Leveraged Financing of the McDonogh 42 School;

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NOW, THEREFORE, BE IT RESOLVED by the Orleans Parish School Board that: (i)

the form of a Cooperative Endeavor Agreement with the Recovery School District attached hereto as Exhibit A to implement a Leveraged Financing for the McDonogh 42 School in accordance with the Master Plan is hereby approved with such revisions as may be approved by the School Board’s General Counsel and/or Interim Superintendent;

(ii)

the School Board’s General Counsel and Interim Superintendent are hereby authorized and directed to transfer the McDonogh 42 School to OSFF by long term leases (the “Master Lease”) in accordance with the provisions of the PSFFA in a Leveraged Financing for the McDonogh 42 School in order to complete the renovation and construction of McDonogh 42 School in accordance with the Master Plan;

(iii)

provided that such investments, loans and/or guarantees to or on behalf of OSFF generate additional funds in a Leveraged Financing for the McDonogh 42 School and further provided that any loan and/or guarantee is determined by the Interim Superintendent to be safe and sound and necessary to implement the Leveraged Financing, the Interim Superintendent is hereby authorized as permitted by the PSFFA to arrange to grant funds to OSFF and to make such loans to and/or guarantees by the School Board on behalf of OSFF and/or to such other third parties in order to facilitate a Leverage Financing for the McDonogh 42 School in connection with the renovation and construction of the McDonogh 42 School under the Master Plan;

(iv)

as the sole member of OSFF, the School Board hereby confirms and approves the proceedings adopted this date by Board of Directors of OSFF in connection with the Leveraged Financing of the McDonogh 42 School.

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The foregoing Resolution having been submitted to a vote, the vote thereon was as follows: YEAS: NAYS: ABSTENTIONS: ABSENT: And the resolution was declared adopted, on this, the 17th day of September, 2013.

/s/ Ira H. Thomas Ira H. Thomas, President

/s/ Stanley C. Smith Stanley C. Smith, Secretary-Treasurer

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INTEROFFICE MEMORAND UM

TO:

LESLIE REY & NICOLETTE LONDON

FROM:

PEGGY VILLARS ABADIE

SUBJECT:

COMPASS ODYSSEY RENEWAL 2013-14

DATE:

9/11/2013

CC:

OPSB has a process for the renewal of contracts for software that we use successfully year after year.

The process included asking the vendor for a quote for renewal and then building requisitions against the quotes and completing whatever other paperwork is required to meet purchasing guidelines for software.

Several years ago as the funds available to cover the costs of our software package for classrooms became more and more difficult to find, the district implemented a new process that involves the NCLB team meeting with the schools regarding their plan for the new academic year. In the context of that meeting the schools complete a tally sheet indicating which of the instructional applications they are planning to use so that the district can right size its software subscriptions and minimize costs while maximizing availability of the applications to those who use them.

This year the renewal quotes for several of the applications needed to be refreshed after the tally sheets were totaled because there are a number of schools requesting access to applications they did not wish to use last year, thus they were not counted in the original quote obtained from the vendors.

Compass Odyssey is one of those.

In the case of Compass, the change on price moves the total cost from $97,549.00 to $121,599 because of the added cost of $24,050 to add Alice Harte Elementary, Einstein Charter School and Mahalia Jackson Elementary to the subscription. Since the cost now exceeds $100,000 a board item is needed to get the approval to have the three schools added.

Attachments 

Quote - Original renewal (already covered by P. O. 140069)

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Quote - Additional sites