Agenda Item
Meeting Date: 6/7/2018 - 7:00 PM
Category: Items Pulled from Consent Calendar
Type: Action
Subject: Budget Transfer from the CIP Reserve Account to Support the George Washington Middle School Kitchen/ Cafeteria Renovation
Strategic Plan:
Objective 4.1 Optimal Learning Environments and Infrastructure
In collaboration with City partners, ACPS will move aggressively to modernize all learning environments, expand or otherwise adapt facilities to meet projected changes in school enrollment, and ensure equitable application of capital improvements throughout the school division.
Policy: FEG-R - ACPS Capital Improvement Program Regulations
Funding Source or Fiscal Impact (where applicable):
File Attachment:
180601_Memo_GW Kitchen-Cafeteria_Renovation_Funds_Transfer_v9.pdf
Agenda Item Summary: A transfer is recommended from the CIP Reserve Account totaling $218,361.95 to support the George Washington Middle School Kitchen/Cafeteria renovation project. This would leave a balance of $903,129.32 in the CIP Reserve Account.

The George Washington Kitchen/Cafeteria Renovation project has been developed in close communication with the Office of School Nutritional Services (SNS), which has provided the majority of the funding for the project through the School Nutrition ServicesSurplus Fund Balance. Portions of the project that are prohibited from being funded with SNS fund balance dollars (such as code required HVAC infrastructure improvements) are to be covered through CIP funding. The attached memo includes a full breakdown of the funding sources required.

The George Washington Middle School Kitchen/Cafeteria renovation project consists of renovating approximately 13,500 square feet including the kitchen, serving area and dining area. Work comprises replacement of the heating ventilation and air conditioning infrastructure and systems throughout the entire project area as well as new flooring and ceilings, lighting and equipment in the kitchen and serving area. Equipment includes new hot wells, refrigerators, walk-in cooler, etc. All of the proposed plans for the project will serve to improve functionality by modernizing the kitchen and cafeteria. Furniture and finishes for the GW cafeteria dining area are being procured and installed under a separate contract using SNS Funds.

The timing of this current request relates to three issues: (a) an unanticipated requirement by the City for mechanical (HVAC) infrastructure upgrades as a prerequisite to the primary renovation; (b) fine tuning of the pricing for that work by bidders to the ACPS request for proposals; and (c) the inability to use SNS funds for the mechanical system portion of the renovation project. Unfortunately, after significant and multiple negotiation attempts, the final fee proposal gap exceeded the available Educational Facilities CIP funds earmarked for this project.
Background: On December 7, 2017, the School Board authorized the establishment of a Capital Improvement Program (CIP) Reserve Account which provides an additional option for CIP budget transfers. This reserve account allows the School Board to move budgeted funds between capital accounts through the below two-step process:

1. The School Board approves budget transfers from specific project account lines to the CIP Reserve Account.
2. The School Board later approves budget transfers from the CIP Reserve Account back to other specific project account lines based upon need justifications.

On at least a quarterly basis, ACPS staff provides recommendations to the School Board to move funding into and out of the CIP Reserve Account, as required.

The CIP Reserve Account currently has a balance of $1,121,491.27 remaining from prior approved transfers.
Recommendation: The Superintendent recommends that the School Board approve this budget transfer request totaling $218,361.95 from the CIP Reserve Account to the George Washington Middle School Kitchen/ Cafeteria renovation project.
Approvals:
Recommended By:
Signed By:
Lois Berlin - Interim Superintendent
Vote Results:

Original Motion
Member Christopher J. Lewis Moved, Member William E. Campbell seconded to approve the Original motion 'The Superintendent recommends that the School Board approve this budget transfer request totaling $218,361.95 from the CIP Reserve Account to the George Washington Middle School Kitchen/ Cafeteria renovation project.'. Upon a Roll-Call Vote being taken, the vote was: Aye: 9 Nay: 0.
The motion Carried 9 - 0
   
Ronnie Campbell     Yes
William E. Campbell     Yes
Karen Graf     Yes
Christopher J. Lewis     Yes
Ramee A. Gentry     Yes
Henry E. Cardwell     Yes
Margaret Lorber     Yes
Cindy Anderson     Yes
Veronica R. Nolan     Yes