WEBVTT 1 00:00:03.090 --> 00:00:04.200 Chelsea King: Will you please call roll. 2 00:00:05.100 --> 00:00:11.340 Kelly Douglas: It and re share Jesse King President vice chair Christie Thompson. 3 00:00:12.360 --> 00:00:12.750 Christy Thompson: Air. 4 00:00:13.620 --> 00:00:14.670 Kelly Douglas: And director sloop. 5 00:00:15.660 --> 00:00:16.020 Kelly Sloop: Air. 6 00:00:16.710 --> 00:00:17.640 Kelly Douglas: And jack detailing. 7 00:00:18.510 --> 00:00:19.950 Kelly Douglas: Rosa Thank you. 8 00:00:22.170 --> 00:00:41.460 Chelsea King: All right, great we have this special meeting called the order with a few items to get through and i'm just working on clicking through to pull up the agenda, but I do believe, if my memory serves me right, the first agenda item is the audit issue is that correct yes okay and. 9 00:00:42.540 --> 00:00:47.130 Chelsea King: Dr lead with all hand it over to you just to describe to us. 10 00:00:48.240 --> 00:01:02.100 Chelsea King: kind of how we ended up where we are today a little bit of the history yeah with the district and different auditing firms, and you know why is this issue before us today in a special meeting. 11 00:01:03.570 --> 00:01:08.100 Kathy Ludwig: Sure, and thank you board for making yourself available, and we know that. 12 00:01:09.570 --> 00:01:12.120 Kathy Ludwig: Time is a little bit of the essence here, and so we appreciate. 13 00:01:13.860 --> 00:01:16.320 Kathy Ludwig: It you make yourself available as soon as possible. 14 00:01:17.490 --> 00:01:33.720 Kathy Ludwig: So the history of the district has been for a while to have auditing companies for a long period of time, and you know each auditing company develops in a relationship with a district they get to know that district well. 15 00:01:34.860 --> 00:01:38.100 Kathy Ludwig: And then can not only provide. 16 00:01:39.210 --> 00:01:52.290 Kathy Ludwig: Objective audits, but then also provide for the district direction on how to improve practices, how to come back the next year and see if those practices have been realized, and so there is benefit and having. 17 00:01:52.800 --> 00:02:06.570 Kathy Ludwig: Auditors for a period of time that become beneficial to a district, and if you look at other districts and SDS and even school board associations, like oh SBA or Cosa they employ. 18 00:02:07.290 --> 00:02:15.030 Kathy Ludwig: an audit company for an extended period of time, the way that audit companies, then, make sure that each audit. 19 00:02:15.510 --> 00:02:24.510 Kathy Ludwig: Has fresh eyes, looking at a school district system is by sending a new teams of auditors so that's one of their methods of. 20 00:02:25.260 --> 00:02:38.610 Kathy Ludwig: rotating auditors within an auditing firm and there are small auditing firms, there are larger ones polly Rogers is one of those firms that has many audit many auditing teams within it. 21 00:02:39.000 --> 00:02:50.700 Kathy Ludwig: And for many years, served as the district's audit firm I think for about 15 to 20 years rotating teams who would come to the district, but providing this. 22 00:02:51.990 --> 00:02:59.580 Kathy Ludwig: narrative back to the district about how as laws changed or mandates changed how the district needed to make sure that their practices were updated. 23 00:03:01.560 --> 00:03:18.390 Kathy Ludwig: About five years ago, the board at that time decided, not only did they want to rotate auditors within a firm but that perhaps it was time to change firms, and so a whole process was gone through around interviewing different firms. 24 00:03:19.470 --> 00:03:23.460 Kathy Ludwig: and made the change to hire wilcox era dorando. 25 00:03:24.720 --> 00:03:36.570 Kathy Ludwig: And they came in and took over as our auditing firm brought their teams in had ways of doing things that were a little different than the last firm but it didn't mean that. 26 00:03:37.410 --> 00:03:44.340 Kathy Ludwig: The bottom line was wrong or different it's also different kinds of software, the way that teams approach it. 27 00:03:44.910 --> 00:04:01.830 Kathy Ludwig: So it was a high learning curve, for us as we got them all of our documents, but then we lived into that relationship with wilcox era Dando as our auditing firm and they would bring different teams each year to then bring fresh eyes to the work when they told us. 28 00:04:02.880 --> 00:04:12.510 Kathy Ludwig: Last year, that they were discontinuing as an audit firm and that the partners were either move on into other work or doing consulting work. 29 00:04:13.200 --> 00:04:20.850 Kathy Ludwig: We then brought before this board the need to hire it's actually last year's board the need to hire new auditors for this year. 30 00:04:21.240 --> 00:04:37.770 Kathy Ludwig: So we went through again a process of interviewing groups and we hired tk w for this audit so they've come in, also with their style of doing auditing their software their their teams and had been in this process with us. 31 00:04:40.200 --> 00:04:42.600 Kathy Ludwig: You know whether it's a combination of. 32 00:04:43.620 --> 00:04:55.710 Kathy Ludwig: How we were operating the way they operate staffing the pandemic, a lot of new grants, it became clear, as we were in the process that. 33 00:04:56.520 --> 00:05:09.450 Kathy Ludwig: managing our audit was taking time and how we were getting information to them how they were getting information and uncovering and learning about all of our systems, the learning curve high for us and for them. 34 00:05:10.590 --> 00:05:14.520 Kathy Ludwig: As well as just timing with when their audit team could come. 35 00:05:15.600 --> 00:05:19.140 Kathy Ludwig: has resulted in delays with the audit. 36 00:05:20.160 --> 00:05:20.820 Kathy Ludwig: and 37 00:05:21.990 --> 00:05:27.300 Kathy Ludwig: Increasingly, each delay goddess wondering about the timing of when the audit could get done. 38 00:05:28.440 --> 00:05:37.080 Kathy Ludwig: Because the state releases funds to us once we've had an audit complete from the last year, so they are holding. 39 00:05:38.130 --> 00:05:49.860 Kathy Ludwig: Our state school fund fortunately we have enough money in our reserve that we are fine financially to operate to make payroll to do the business of the district. 40 00:05:50.370 --> 00:05:59.340 Kathy Ludwig: To give tk w the time they needed to keep working through what they were learning what they were understanding about our bonds and our grants. 41 00:06:01.770 --> 00:06:10.140 Kathy Ludwig: Each delay, however, got us wondering about you know how we could expedite how we could better communicate and was there, an end in sight, at some point. 42 00:06:10.740 --> 00:06:23.190 Kathy Ludwig: And as January became February and then February became you know it will get done in March, and then the assurance of March to April there did come a point where we needed to make a decision about. 43 00:06:24.570 --> 00:06:25.860 Kathy Ludwig: Is this a progressive. 44 00:06:27.210 --> 00:06:41.370 Kathy Ludwig: uncertainty and we we we needed more certainty in what we were hearing back in terms of a finalization of the audit and what we were unable to really get was that certainty. 45 00:06:42.420 --> 00:06:58.590 Kathy Ludwig: In consultation with Oregon Department of Education our attorneys some other auditors we kind of hit a tipping point of you could keep working and waiting with and hoping it gets done in a time when. 46 00:06:59.730 --> 00:07:01.200 Kathy Ludwig: You still have reserves. 47 00:07:02.220 --> 00:07:13.140 Kathy Ludwig: Or you could make a change, right now, which is what our discussion also was with O D and find a company that could have more of a guarantee about that completion, so that. 48 00:07:14.730 --> 00:07:32.430 Kathy Ludwig: Our reserves in our funds could match the timeline of when an audit was guaranteed to get done, and so we did some querying and one of those was to paulie Rogers who you hired did approve the hiring of their be our auditors next year. 49 00:07:33.960 --> 00:07:34.950 Kathy Ludwig: And they. 50 00:07:36.150 --> 00:07:48.720 Kathy Ludwig: They did tell us that, because they have a large enough team, and they do many, many school districts across the state they felt they could give a guarantee to complete the audit for us so. 51 00:07:50.760 --> 00:07:58.530 Kathy Ludwig: So that's what we need from the board today because you we've hired polly Rogers for next year to be our auditors. 52 00:07:59.100 --> 00:08:08.430 Kathy Ludwig: We need the approval of the board to also approve them as the auditors for this year's audit to finish what tk w was unable to finish. 53 00:08:09.210 --> 00:08:22.470 Kathy Ludwig: As you do know when when you hired polly Rogers for next year, it was because we learned in January that DK w did, let us know they could no longer serve as our auditors, they would complete our audit, but that they were. 54 00:08:23.130 --> 00:08:35.640 Kathy Ludwig: dissolving that contract with us, I believe, they also dissolved with another district, so we were already looking to make a shift going into 2223. 55 00:08:37.200 --> 00:08:47.730 Kathy Ludwig: By having polly Rogers finished the audit for us has several advantages one there are large enough company that can bring in a team and get it done they provided that guarantee. 56 00:08:48.300 --> 00:08:55.860 Kathy Ludwig: They also are that the auditors we're investing in or they're investing getting to know our system again and our business office and our staff. 57 00:08:56.250 --> 00:09:03.990 Kathy Ludwig: And what they find and can advise us on how to fix or to change only goes to benefit our work going into next year. 58 00:09:04.770 --> 00:09:12.690 Kathy Ludwig: and future audits that we do have with them so there's a mutual investment in bringing them in to finish if they weren't able to, we would be. 59 00:09:13.200 --> 00:09:21.180 Kathy Ludwig: Looking for some other group, but fortunately, they are able to give us that guarantee, so our contract with tk w. 60 00:09:21.840 --> 00:09:33.540 Kathy Ludwig: Is expired that's that's not the role of the Board today to talk about finding other auditors, or about you know whether to not terminate that contract, it has been. 61 00:09:34.410 --> 00:09:45.330 Kathy Ludwig: The role of the Board today is to allow myself and the business office to approve polly Rogers coming in and finishing this audit for us. 62 00:09:47.130 --> 00:09:48.930 Kathy Ludwig: Does that help with a summary checking. 63 00:09:51.900 --> 00:09:55.500 Chelsea King: yeah that helps a lot, thank you for lay that all out for us and. 64 00:09:59.280 --> 00:10:15.840 Chelsea King: So typically, this is the details of how of our process and we could put emotion on the table and have discussion or, perhaps, it makes sense to have just a little bit of preliminary discussion first and then put it emotion out, I find that that usually helps. 65 00:10:17.670 --> 00:10:21.210 Chelsea King: I see vice chair Thompson nodding, so i'm. 66 00:10:22.380 --> 00:10:29.520 Chelsea King: Looking at my colleagues here does anybody have anything they want to jump in with with questions go ahead director Taylor. 67 00:10:30.720 --> 00:10:36.960 Louis Taylor: I have a question as far as with hiring on polly Rogers to take over the responsibilities. 68 00:10:37.530 --> 00:10:55.680 Louis Taylor: Is there a negative effect on the budget, meaning what we've already invested into the previous company now hiring on polly Rogers does this take that line item exponentially up down remain the same, what is the effect on the overall budget, bringing in a new entity that's my. 69 00:10:56.730 --> 00:11:12.390 Kathy Ludwig: yeah so i'll let Dr Hughes answer you know what was the amount of our contract with tk w and our responsibility to that contract and then we do have to write a contract for another company to come in, probably Rogers to finish so Dr Hughes, you want to speak to that. 70 00:11:12.990 --> 00:11:21.930 Son Le Hughes: Yes, so that contract, we have with decade of that we upgrade to pay them in 1500. 71 00:11:23.580 --> 00:11:38.850 Son Le Hughes: According to the letter that they sent to Jeff can I today that they they want and whatever amount that we pay them up to today with the 30,000 they were happy with that they will ask for more. 72 00:11:40.050 --> 00:11:51.150 Son Le Hughes: And then they not a different partner writer in war pay for the 1500 and for the lie item under the book. 73 00:12:00.270 --> 00:12:02.520 Louis Taylor: They were paid 30,000 up to this point. 74 00:12:03.090 --> 00:12:05.790 Son Le Hughes: We already paid an octave 30,000. 75 00:12:06.810 --> 00:12:13.380 Son Le Hughes: So for the line item we in in July item we have 41,500 but for the. 76 00:12:15.660 --> 00:12:25.950 Son Le Hughes: odd when they look at it, they look at a function later induction on function of services content, so what the addition on we pay. 77 00:12:26.700 --> 00:12:46.350 Son Le Hughes: So, so we only pay so we say pen pals with the kW and then to turn around to pay for the 1500 to party writer it mean for that line item we are, but we will be although my toughest 1500 but all of our own inner function is. 78 00:12:47.970 --> 00:12:49.350 Son Le Hughes: irrelevant it's not. 79 00:12:50.370 --> 00:12:56.910 Son Le Hughes: it's not a big problem for the for the bucket outside to all those things about my item. 80 00:12:59.490 --> 00:13:02.340 Louis Taylor: gotcha and there's is there any recourse for. 81 00:13:03.390 --> 00:13:06.000 Louis Taylor: services rendered but not received I guess. 82 00:13:07.530 --> 00:13:17.970 Louis Taylor: seems a little you know interesting that you can go all the way up to the buzzer get a full payment and then not produce the end result is there a any recourse for us. 83 00:13:19.590 --> 00:13:30.240 Louis Taylor: Against the previous company to say hey we've just now doubled our budget for something that we never received right, so I don't know if if there is that potential. 84 00:13:31.770 --> 00:13:41.370 Son Le Hughes: I think they do is they are us based on the work that they prefer for the victory along the way, so for. 85 00:13:42.090 --> 00:13:53.580 Son Le Hughes: January, they send the invoice and say hey based on the work back, we coming out August and artists and do all the work it costs, our staff time. 86 00:13:54.450 --> 00:14:11.820 Son Le Hughes: 20,000 so they send out that invoice and then they send out another invite for 10,000 and then from what about that they have the remaining that they haven't completed that they call another 10,000 they haven't published and because of that in public, they will not join us for that. 87 00:14:12.870 --> 00:14:18.750 Kathy Ludwig: yeah and I think there's an opportunity to whatever work product they have finished. 88 00:14:19.740 --> 00:14:34.230 Kathy Ludwig: You know, we we'd like to have that I think you know learning is always good for every organization so whatever work product they did get complete that we paid them for to for us to have access to that to look at it to to see. 89 00:14:35.580 --> 00:14:51.390 Kathy Ludwig: What conclusions they came to what recommendations, they might have made what they were noticing is good for us to have and polly Rogers have access to that would be important, so that they can reference it, but of course they'll do their their full audit. 90 00:14:52.680 --> 00:15:00.540 Kathy Ludwig: So there's nothing that we're shying away from or not eager to see in the work product they've produced and we're happy to pay for that it has it does have value. 91 00:15:01.050 --> 00:15:13.770 Kathy Ludwig: It has value for us as an organization to see what the work has been what they were working on what they were discovering what they would have advised us or told us, and so, in some ways we get the benefit of actually two auditors. 92 00:15:14.790 --> 00:15:19.830 Kathy Ludwig: Looking at our books this year and helping if they noticed something helping us to get better. 93 00:15:21.210 --> 00:15:32.670 Kathy Ludwig: They you know it's like two doctors having two different opinions, there might be, you know some differing of opinions between auditors, but in the end, you know, the health of the organization and how we. 94 00:15:33.510 --> 00:15:47.070 Kathy Ludwig: account for our budget and our financing and our procedures is what we'd want to learn from both so we're willing to pay that amount to receive the expertise that that that that they would have produced so far and be willing to give us. 95 00:15:48.240 --> 00:15:50.850 Louis Taylor: Okay, my last question would be i'm sorry. 96 00:15:52.260 --> 00:15:55.200 Louis Taylor: director comes in with this delay. 97 00:15:56.790 --> 00:15:59.520 Louis Taylor: I know it has an effect on a release of our funds. 98 00:16:00.570 --> 00:16:02.880 Louis Taylor: But is it also affecting other schools. 99 00:16:04.710 --> 00:16:08.490 Louis Taylor: Funds because of the audit I know it was brought up in public comment that. 100 00:16:10.440 --> 00:16:20.940 Louis Taylor: Our lack of having our audit finished is affecting not only us, but other school districts so is that still the case with this new update is our delay going to cause other districts. 101 00:16:23.040 --> 00:16:25.050 Louis Taylor: Delays are receiving their budgets. 102 00:16:25.650 --> 00:16:37.890 Son Le Hughes: I believe it's ignored because on march 21 of all these open the system for our syndicate to submit all the financial reports to the system. 103 00:16:38.250 --> 00:16:46.920 Son Le Hughes: Because they asked us why waiting for decades to complete the finance and report if they're addicted to confident with our record. 104 00:16:47.310 --> 00:17:01.020 Son Le Hughes: They were opened a system for us to submit information in there, so they had information to provide an estimate school funding for us conduct, including us, so we can master mission to all these are not. 105 00:17:02.430 --> 00:17:04.620 Son Le Hughes: Unlike a D plus that that lie yeah. 106 00:17:09.870 --> 00:17:10.350 Louis Taylor: Thank you. 107 00:17:12.120 --> 00:17:15.690 Chelsea King: All right, thank you, Director Taylor and by sure Thompson. 108 00:17:17.100 --> 00:17:20.220 Christy Thompson: yeah a couple questions so i'm first i'm wondering. 109 00:17:21.810 --> 00:17:34.500 Christy Thompson: If tk w day what was their reasoning for continuing to draw out our our audit so that is one of my wondering, did they give reasons for why. 110 00:17:35.070 --> 00:17:47.040 Christy Thompson: They continue to have to cut off, this is a staffing reason are there, issues that they're finding that are causing them to have to to do more work on it, so I have that question i'm wondering. 111 00:17:48.060 --> 00:17:56.160 Christy Thompson: were they able to, I think that they did the portland public school audit i'm curious as to if they were able to complete that one on time. 112 00:17:56.730 --> 00:18:15.750 Christy Thompson: And then, my third question for now I might have a couple more is what sort have commitment has polly Rogers made when is, I know, originally tk w said we'll have it to you, I believe, by April 25 so when is polly Rogers when they committed to having the audit to us by. 113 00:18:17.610 --> 00:18:17.910 Son Le Hughes: Oh. 114 00:18:19.650 --> 00:18:30.030 Son Le Hughes: So many communication would probably Roger he say within two and a half months three months, and he and his team will have the complete audit what for us. 115 00:18:31.110 --> 00:18:37.260 Son Le Hughes: So the question what apartments conducted like you know I work at a bit organization before. 116 00:18:37.590 --> 00:18:48.360 Son Le Hughes: The University of Oregon and for this organization lidar they had a Home Office or more 10 people just focus on the audit work so because of that. 117 00:18:48.660 --> 00:19:09.300 Son Le Hughes: Now full time they have a group of timestamp late in, and they are jet focus working with the audit them to get the Arctic work so to compare our spawn because we're often conducted and see a pockets can dictate how any issue or any that lie challenging with DK w is. 118 00:19:10.680 --> 00:19:15.000 Son Le Hughes: It not that equal comparison they might have a different experience than my. 119 00:19:16.230 --> 00:19:21.480 Son Le Hughes: Compared to us so so I can not exactly answer that but. 120 00:19:23.250 --> 00:19:43.440 Son Le Hughes: I believe school district portland's when they receive their audit on time because that's a debate that sly and DK w house, I believe that they put all the energy and resource to support their school district, and for us, they also in email indicated. 121 00:19:45.300 --> 00:19:55.320 Son Le Hughes: They will aside our staff to work on our audit book on the weekend and evening so they said because of sharks that. 122 00:19:55.890 --> 00:20:14.070 Son Le Hughes: They have a group of staff come on board come on inside to do the Arctic work for us in our guests and then in December, when they come back, they could not have a phone time put up stop working on our artists, so when i'm checking on them and they say you know, can you. 123 00:20:15.210 --> 00:20:23.610 Son Le Hughes: Know i'm waiting for you are you waiting for me and the email confirming that they have their staff working on the weekend and even to have. 124 00:20:27.000 --> 00:20:40.110 Kathy Ludwig: So in I think director Thompson to your question about what what was the continued reasoning for the delay, you know as we would get emails the best I could summarize is. 125 00:20:40.800 --> 00:20:48.960 Kathy Ludwig: Just the need to see more information, and I think it's a combination of never having audited us before, and so they were. 126 00:20:50.670 --> 00:21:01.830 Kathy Ludwig: Looking at new documents and receiving them and then, when we'd say what, what do you want us to send you next day, so we don't know yet once we see what you've sent we might have. 127 00:21:02.610 --> 00:21:09.870 Kathy Ludwig: been will then we'll know and so we'd wait another few weeks and then we'd get the next round of please send us samples of this so. 128 00:21:11.820 --> 00:21:21.660 Kathy Ludwig: that's the best way I could summarize it was a continued back and forth of what do you need from us, we think we need this, and then there would be a period of quiet and then. 129 00:21:22.260 --> 00:21:39.000 Kathy Ludwig: Now we need this and whether it was to our bond office for those you know for a lot of documents i'm fixed assets or or bonds or then to our operations department or it department or grants department or business office. 130 00:21:40.500 --> 00:21:42.420 Kathy Ludwig: The emails kept asking for. 131 00:21:43.920 --> 00:21:52.050 Kathy Ludwig: More documents of what they wanted to see and even going back two years before and several auditors, because they wanted to track how things had been done and. 132 00:21:53.640 --> 00:22:01.590 Kathy Ludwig: Their methodology, combined with maybe how they were approaching it just made for a very labored process that was taking a long time. 133 00:22:08.820 --> 00:22:11.640 Chelsea King: right by sure Thompson is that all all you have right now. 134 00:22:14.280 --> 00:22:15.720 Chelsea King: I can't hear you you're on mute. 135 00:22:18.870 --> 00:22:23.070 Christy Thompson: Yes, I i'm formulating a couple more questions if someone else has one. 136 00:22:23.370 --> 00:22:24.210 Chelsea King: Okay, you bet. 137 00:22:25.290 --> 00:22:27.420 Chelsea King: i'm director sloop how are you doing over there. 138 00:22:28.650 --> 00:22:32.130 Kelly Sloop: Yes, I have, I have some questions, but they were already answered. 139 00:22:33.180 --> 00:22:37.470 Chelsea King: Okay okay great i'll jump in here with some of mine, then. 140 00:22:40.140 --> 00:22:51.840 Chelsea King: So for me, sometimes it's helpful to just kind of repeat back some of what i'm hearing and like layman's terms, and so what i'm really take my takeaways here are. 141 00:22:52.800 --> 00:23:02.250 Chelsea King: You know, we we had paulie Rogers a while back, we we worked with someone else for a handful years, four years to get as wilcox or condo. 142 00:23:02.910 --> 00:23:07.170 Chelsea King: And then we switched over to tk w we've been working with them and it. 143 00:23:07.980 --> 00:23:23.580 Chelsea King: fell apart, for a variety of reasons they decided to no longer they wanted to terminate the contract with us for next year already we hired polly Rogers to come back after this you know gap in years working with them. 144 00:23:25.020 --> 00:23:33.060 Chelsea King: And then in between that decision, which I think it's been a few months, or something like that, since we hired the new auditor for next year polly Rogers. 145 00:23:34.500 --> 00:23:44.190 Chelsea King: Dr Ludwig you decided to terminate this contract with them, based on on the fact that the work has not been produced, that we need them to produce, so we can file and get the funds. 146 00:23:44.580 --> 00:23:55.410 Chelsea King: that's my layman's understanding of the situation alright so here is where I land, then the contracts terminated that's not the decision that's before the board. 147 00:23:56.490 --> 00:24:02.430 Chelsea King: will ratify it, meaning make it official but that's already been done, that was decided by. 148 00:24:03.390 --> 00:24:08.100 Chelsea King: Our superintendent and you know, in consultation i'm sure with you know the business office. 149 00:24:08.760 --> 00:24:14.490 Chelsea King: So the decision before us, then, is you know who do we hire to finish this audit and time is of the essence. 150 00:24:15.090 --> 00:24:24.120 Chelsea King: And so, going back to someone like polly Rogers who has a good reputation they do this work with a lot of other districts they've done this work with us before. 151 00:24:24.360 --> 00:24:35.280 Chelsea King: yields the best outcomes for us to get an audit done in the next few months, it sounds like so not really all that quick it's going to take them time to produce the audit. 152 00:24:36.390 --> 00:24:45.060 Chelsea King: And that three month lag what i'm hearing is that that's not going to harm us that's not going to harm surrounding school districts. 153 00:24:45.510 --> 00:24:48.480 Chelsea King: it's reasonable, we can do this without causing harm. 154 00:24:49.500 --> 00:24:50.550 Chelsea King: Okay i'm St john's. 155 00:24:51.990 --> 00:25:12.180 Chelsea King: So I think I like what i'm hearing about tk w has produced some work for us over the past nearly year nine months, whatever whatever it's been and we're going to take the work that they have produced for us and we're going to. 156 00:25:13.620 --> 00:25:23.010 Chelsea King: see what we can take away from that, but there will be some learnings for us either about content that they tell us. 157 00:25:23.040 --> 00:25:24.870 Chelsea King: You know, ways that we can improve. 158 00:25:25.710 --> 00:25:31.860 Chelsea King: or even about process that the process broke down with them and there's some learnings there for them. 159 00:25:32.940 --> 00:25:48.120 Chelsea King: And there's some learnings there for us right, I like to work that way so and i'm here i'm seeing nodding i'm hearing that that's an agreement that that's what we'll do so that's reassuring to me, I think, where I land with this is. 160 00:25:50.460 --> 00:25:52.290 Chelsea King: The question is. 161 00:25:53.490 --> 00:26:06.510 Chelsea King: The work that tk w is going to produce for us, the document, whether it be what they you know just emailed me a few hours ago, or if it's something more formal that they're going to submit I don't know what that would be. 162 00:26:06.840 --> 00:26:20.010 Chelsea King: My Can you help me close the gap, what would we do with that is it possible that polly Rogers will get that information is it possible, the Board will get it is there a way that there can be a bridge. 163 00:26:20.430 --> 00:26:29.220 Chelsea King: To help us with that learning between these two auditors, so we can apply what's useful here, how will we bridge this gap. 164 00:26:31.260 --> 00:26:31.500 Son Le Hughes: So. 165 00:26:32.250 --> 00:26:33.240 Kathy Ludwig: Go ahead, Dr us. 166 00:26:33.870 --> 00:26:49.860 Son Le Hughes: um so in the past when we when what i'll go and audit the incoming audit them, they will actually send the information to get there, and then they held a cq dry that they can drop information. 167 00:26:50.790 --> 00:27:07.770 Son Le Hughes: To it either in a confident way because we don't want our financial information at 10 back and forth through email and also email how limit that your car milligram limit the fire to be able to send it so. 168 00:27:08.910 --> 00:27:18.660 Son Le Hughes: by talking with our legal counsel on legal counsel of my staff is the best after the blue approves the resolution to appoint polly Roger. 169 00:27:19.050 --> 00:27:29.550 Son Le Hughes: Then Colorado will reach out to the kW and asking for all the work that they already accomplished so far for the district and drop it in the secure right. 170 00:27:30.150 --> 00:27:42.780 Son Le Hughes: With poly Roger and then polly writer will share that with us we'll sit down and go through all the information what reasonable whatnot and how can we learn from it. 171 00:27:51.330 --> 00:28:07.950 Chelsea King: So, thank, thank you for that it sounds like there's a process that you normally follow whereby one auditing firm shares information clearly large amounts of information with your office and polly Rogers helps and I think. 172 00:28:09.660 --> 00:28:13.140 Chelsea King: Just frankly you that the. 173 00:28:14.520 --> 00:28:31.410 Chelsea King: I also have some wondering about this bridge about what happened this past year, and what are the learning takeaways and so, to what degree, is the board going to know. 174 00:28:32.910 --> 00:28:33.780 Chelsea King: About. 175 00:28:34.950 --> 00:28:46.020 Chelsea King: You know the learnings and the bridge is this is something that we're you know it's a major part of our responsibility and so i'm curious about the board's role and. 176 00:28:46.590 --> 00:28:55.980 Chelsea King: Understanding the content and the process breakdown with tk w and how that will be applied moving forward with poly Rogers does that question make sense. 177 00:28:56.490 --> 00:29:02.760 Chelsea King: Like I get that you have a process and that's great and i'm wondering what's the board's role in this and how, how can we have a process around this. 178 00:29:05.850 --> 00:29:16.680 Kathy Ludwig: yeah so you know the, these are not typical occurrences, I mean it's not what any organization private or public, you know mid audit wishes for hopes for. 179 00:29:17.820 --> 00:29:22.890 Kathy Ludwig: But, but it does happen, where you contract with an agency to do the work and, for some reason they can't. 180 00:29:23.610 --> 00:29:35.670 Kathy Ludwig: And you need to find someone to come and complete and then there's a transition of the incomplete, to the completed work and that's what we're looking at here what we certainly can do is. 181 00:29:36.810 --> 00:29:46.950 Kathy Ludwig: You know, bring in, and this is technical language, because its finances and audit, so it has its own vernacular and language but but find someone who could. 182 00:29:47.970 --> 00:29:54.030 Kathy Ludwig: Work with that bridge if it sounds like that would be helpful to board members so that there's some type of a bridge report. 183 00:29:55.500 --> 00:30:05.940 Kathy Ludwig: or analysis that's done around what was the work product and learning of the one group that's applied to the transition of the of the other group how complex was it. 184 00:30:07.530 --> 00:30:09.870 Kathy Ludwig: You know what what were some of the general findings. 185 00:30:11.010 --> 00:30:12.750 Kathy Ludwig: And so that can be done, even with. 186 00:30:13.800 --> 00:30:20.460 Kathy Ludwig: an audit consultant I mentioned to you the reason that wilcox era donda was closing their firm. 187 00:30:21.120 --> 00:30:25.050 Kathy Ludwig: was to move out of the auditing business and going into audit consulting. 188 00:30:25.290 --> 00:30:36.270 Kathy Ludwig: Which is what a lot of organizations also look, for they like to be able to call someone during the year and get consultation on how they're keeping their books and what auditors might find or. 189 00:30:37.230 --> 00:30:54.930 Kathy Ludwig: You know what what's best practices in terms of finance, so we would have someone, we could have someone available, for example, like sabino era donahoe to come in, who knows school district auditing very well and could look at the work product and look at that transition. 190 00:30:56.070 --> 00:31:11.010 Kathy Ludwig: To speak to some of that bridge question that that you're wondering about director king and do do kind of a consultant analysis, instead of asking our own attorneys our own attorneys would say, well, we could find an audit consultant for you to kind of unpack. 191 00:31:12.150 --> 00:31:22.110 Kathy Ludwig: What you're seeing in the work product, especially what I hear you saying is instead of having holly Rogers look at the work product and then give us their analysis of what's in it. 192 00:31:22.530 --> 00:31:30.690 Kathy Ludwig: Could we find someone independent of that to give us the analysis also of the work product that tk w has done. 193 00:31:31.710 --> 00:31:40.410 Chelsea King: yeah that would I would feel more comfortable with this unusual situation if there was an independent. 194 00:31:41.490 --> 00:31:50.820 Chelsea King: want someone who's not polly Roger is someone who's not tk w someone who's not the district, you know somebody independent who can come in and look at what tk w has produced. 195 00:31:51.210 --> 00:31:58.950 Chelsea King: Well polly Rogers thinks about what they could produce and could almost be like a consultant working on behalf of the board, perhaps just to help. 196 00:31:59.250 --> 00:32:10.140 Chelsea King: Maybe two of us, though in as liaison to the audit process had no we've done something in that in the past with selecting a auditing firm, I think we had two board members who were. 197 00:32:10.920 --> 00:32:25.380 Chelsea King: liaison so maybe we do a similar model where there's two of us who go in and have an opportunity to do the learning alongside the business office, so that we can really move forward with. 198 00:32:26.400 --> 00:32:32.400 Chelsea King: clarity and certainty about you know what happened with the learnings are and moving forward. 199 00:32:33.030 --> 00:32:34.680 Kathy Ludwig: yeah absolutely in fact. 200 00:32:36.000 --> 00:32:46.290 Kathy Ludwig: Those were actually wanderings that Dr Hughes and I had even in January and February, as we were kind of in this process with tk w and and felt like. 201 00:32:47.160 --> 00:32:58.050 Kathy Ludwig: There was some communication breakdown and wondering about the typical nature of we've sent we've sent documents it's tasty me to take a long time to go and get the next set of requests. 202 00:32:59.280 --> 00:33:14.220 Kathy Ludwig: You know, do we need to do we need to hire an audit consultant to come in and navigate that communication that that transaction, but each time we got close to that you know we're and it was something actually we even asked. 203 00:33:15.270 --> 00:33:28.620 Kathy Ludwig: soybean oil Redondo, if it was something he'd be interested at that time, he was completing so he's still finishing up with one district before he closes his firm, the timing didn't work for him, but it is, it is work that he's interested in doing. 204 00:33:30.720 --> 00:33:49.410 Kathy Ludwig: And so what you're asking for is something that even Dr Hughes and I had been looking into as we were experiencing some of these long delays in in between getting product to them and then their analysis and then their next set of requests for you know more items or documents. 205 00:33:50.850 --> 00:33:54.480 Kathy Ludwig: So we can go back to to Mr Aaron rondo and. 206 00:33:55.560 --> 00:34:00.810 Kathy Ludwig: Re engage with him and see you know now now here's where we are and we be asking you to take a look at. 207 00:34:02.490 --> 00:34:05.790 Son Le Hughes: even reach out to auto renewal company do. 208 00:34:06.030 --> 00:34:13.620 Son Le Hughes: yeah whatever option that comfortable, we can ask book and see which one, but a valuable mm hmm. 209 00:34:15.960 --> 00:34:22.980 Louis Taylor: like an rfp I guess you know somebody who can remember your interview for you or Is that not the process for that. 210 00:34:23.310 --> 00:34:38.010 Kathy Ludwig: yeah I think we can go ahead without that to just hire a consultant, who has that type of auditing experience to take a look and help us interpret what we're seeing and getting I don't believe we need to do an rfp for for that consultant. 211 00:34:38.100 --> 00:34:44.250 Chelsea King: Is there a threshold $1 amount threshold or something that the rfp is required and we're operating below that. 212 00:34:45.810 --> 00:34:49.440 Son Le Hughes: yeah i've been a bit more than five house and. 213 00:34:52.950 --> 00:34:59.010 Son Le Hughes: You are welcome to come in, but I can get more than five hours, and we should have an rp but. 214 00:35:00.510 --> 00:35:08.160 Chelsea King: yeah I think it's a reasonable question you know what exactly is the expense on this, do you have an answer in your head already Mr mica. 215 00:35:10.800 --> 00:35:11.820 Son Le Hughes: So yeah I can. 216 00:35:12.360 --> 00:35:12.660 Son Le Hughes: Okay. 217 00:35:13.380 --> 00:35:17.310 Pat McGough: mom you're on mute sorry i'm sorry no I don't have. 218 00:35:18.540 --> 00:35:30.660 Pat McGough: a feel for read at the moment, but you know we would certainly follow or as to 79 B and C on in whatever protocols are required. 219 00:35:31.410 --> 00:35:35.820 Chelsea King: So perhaps what we need to do as far as next steps just with this work. 220 00:35:36.090 --> 00:35:46.440 Chelsea King: You know, we still have emotion on the table for the resolution, I know, Dr Thompson you might have further questions to that we're kind of percolating, but I think what we're arriving at right now is that we could have. 221 00:35:46.860 --> 00:35:53.850 Chelsea King: Two board members, following a similar model we've used in the past, via liaison to this. 222 00:35:54.480 --> 00:36:04.020 Chelsea King: bridge between the two auditing companies tk w and polly Rogers and digesting the learnings there and that we could hire an independent consultant. 223 00:36:04.530 --> 00:36:21.690 Chelsea King: And those two liaisons could work with that process, whether it be Mr Aaron dotto is available and he's what the two days Antoine or he's not available are the two liaisons don't want them or for whatever reasons to people could work with us do an rfp if necessary or not. 224 00:36:22.800 --> 00:36:32.580 Chelsea King: Am I getting this right, but this is something looking at my i'm seeing some nods from doctor who is my fellow board members, this is sound like what we wanted to do. 225 00:36:34.260 --> 00:36:39.450 Kathy Ludwig: What I what I can tell you is, it would be value added for staff so you're not going to. 226 00:36:39.720 --> 00:36:51.780 Kathy Ludwig: Get disagreement from staff we're we are incredibly invested in any kind of learning, which is why we're eager to see what DK w did produce we're not dismissing the work that they've done we're not criticizing it. 227 00:36:53.040 --> 00:37:03.690 Kathy Ludwig: You know in in my communication to them, I said in terms of on the part of the district, this is an amicable separation it's unfortunate but we We just need to get this done and. 228 00:37:04.320 --> 00:37:12.930 Kathy Ludwig: This is not personal it's not a criticism of your team and we're whatever product, we can see, we look forward to it, so if this transition and bridge. 229 00:37:13.290 --> 00:37:21.810 Kathy Ludwig: would be helpful to the board, it would certainly be helpful to staff it's also money well invested in terms of just learning for the team great. 230 00:37:22.590 --> 00:37:28.950 Chelsea King: So I think that we've got agreement that I saw director sloop Nada saw Dr Thompson nod Lewis, are you thinking, this is a good. 231 00:37:30.090 --> 00:37:32.010 Chelsea King: Use of our time and resources. 232 00:37:33.360 --> 00:37:36.120 Louis Taylor: yeah I think it's good it's not gonna hurt. 233 00:37:39.600 --> 00:37:40.980 Louis Taylor: it'd be nice to. 234 00:37:43.080 --> 00:37:45.240 Louis Taylor: not get the information filtered So yes. 235 00:37:46.350 --> 00:37:50.280 Chelsea King: Okay, so having basically someone who's a consultant to the board help. 236 00:37:50.610 --> 00:38:06.960 Chelsea King: US work on it, so I guess My question then is and I don't know if i'm supposed to know this has the Chair, but do we need to make a formal motion on that or do we just recognize that we agreed that we're moving forward with this and we don't need to take a boat. 237 00:38:07.500 --> 00:38:10.800 Kathy Ludwig: I think what i'm hearing, as your superintendent is that you're directing staff. 238 00:38:11.460 --> 00:38:17.940 Kathy Ludwig: To ensure that there is independent consultant audit consultant to help with that transition and. 239 00:38:19.080 --> 00:38:27.660 Kathy Ludwig: And the learning that came from tk w as we move forward with with a new auditor so that's the direction you're giving to the superintendent staff. 240 00:38:28.170 --> 00:38:30.840 Chelsea King: And to work with the two board liaisons. 241 00:38:31.050 --> 00:38:38.970 Chelsea King: yeah in that process and so i'm going to check in with my fellow board members if there's anybody who's interested in this work. 242 00:38:39.840 --> 00:38:48.390 Kathy Ludwig: And also that direction will be recorded in the Minutes, so it is something that we're documenting publicly for our Community and for ourselves. 243 00:38:48.450 --> 00:38:54.270 Chelsea King: Right, so we don't have to take a bow we've we're all agreeing it's going to be in the Minutes there's no need for formal motion. 244 00:38:56.370 --> 00:38:58.140 Chelsea King: i'm i'm willing to. 245 00:38:58.200 --> 00:38:59.520 Louis Taylor: serve have an interest to. 246 00:38:59.970 --> 00:39:00.420 Okay. 247 00:39:03.000 --> 00:39:09.660 Chelsea King: Vice your Thompson if you want to i'm i'm happy to have you and Dr Thompson do arra Taylor do it. 248 00:39:11.220 --> 00:39:16.770 Christy Thompson: yeah i'm happy to do if you'd like to do it feel free i'm also willing to be a part of that so. 249 00:39:16.800 --> 00:39:18.840 Chelsea King: Okay um. 250 00:39:23.160 --> 00:39:32.760 Chelsea King: I you know I, I think it makes sense for the two of you to go go ahead that's i'm comfortable with that if you both have an interest, I I trust you to move forward together with that so. 251 00:39:33.630 --> 00:39:45.600 Chelsea King: sounds like director Taylor and vice your Thompson will be the liaison thank you both of you for stepping up and taking on additional responsibilities all right thanks for the thumbs up love the nonverbal feedback. 252 00:39:47.430 --> 00:39:55.200 Chelsea King: Okay, great, thank you for that I don't have any further questions so does anybody else in the board, yes I sure Thompson. 253 00:39:56.490 --> 00:40:11.250 Christy Thompson: Thank you and it's just process and it's not it's more just asking for explanation versus questioning why, so I hope that that's the spirit that it comes across but and so Dr lovely can you just explain. 254 00:40:12.270 --> 00:40:12.990 Christy Thompson: In my. 255 00:40:14.040 --> 00:40:23.700 Christy Thompson: Not knowing because we haven't walked through this before like you said, this is the first in my mind, I would have thought oh it's the board that votes to terminate and then the board. 256 00:40:24.420 --> 00:40:31.860 Christy Thompson: Re hires a new firm but it sounds like that is not the case that you, as the superintendent have the ability. 257 00:40:32.460 --> 00:40:48.180 Christy Thompson: to terminate without us voting and then so can i'm not question again i'm not questioning it can you just speak to that and and explain the process, because if i'm you know i'm just wondering if people that are listening to what may question that as well. 258 00:40:49.350 --> 00:40:50.280 Christy Thompson: Does that make sense. 259 00:40:50.490 --> 00:40:53.100 Kathy Ludwig: Sure, and we did receive. 260 00:40:54.480 --> 00:41:05.850 Kathy Ludwig: approval for that process, both O D with Michael wilton long and then also with our legal counsel, so we did ask that process question, because as i've mentioned before this. 261 00:41:06.270 --> 00:41:15.030 Kathy Ludwig: Subject unusual circumstances and rules and regulations change all the time, and while the board did approve this this contract. 262 00:41:16.050 --> 00:41:22.920 Kathy Ludwig: Both O D and our legal counsel said it is within the jurisdiction of the superintendent. 263 00:41:23.490 --> 00:41:37.500 Kathy Ludwig: Who ope is is now responsible for overseeing that work if it's not happening can can terminate that so, for example, maybe another parallel will be you've approved a contract, as you do with many with around. 264 00:41:38.370 --> 00:41:48.810 Kathy Ludwig: operations and i'm looking at Mr mcgough where we hire a company to do something if they're not producing as we've asked them to do or there's there's some discretion. 265 00:41:50.280 --> 00:41:50.580 Kathy Ludwig: You know. 266 00:41:51.660 --> 00:41:52.830 Kathy Ludwig: difference in how. 267 00:41:53.850 --> 00:41:55.920 Kathy Ludwig: they're producing the work, then the agreement. 268 00:41:57.330 --> 00:42:05.730 Kathy Ludwig: Within that approval that contract you're also assuming us to be responsible to that work and Mr Douglas or Mr mcgough could. 269 00:42:06.120 --> 00:42:15.120 Kathy Ludwig: terminate with some of those contractors and say we're just not seeing the product and so we're going to terminate it we're going to find someone else and we're going to go back to our board. 270 00:42:15.750 --> 00:42:30.090 Kathy Ludwig: To approve another contract, so those decisions around how the work is produced by those contractors then becomes under the purview of the superintendent or the CEO to monitor and make those decisions. 271 00:42:32.790 --> 00:42:33.090 Kathy Ludwig: I don't know. 272 00:42:33.120 --> 00:42:35.400 Christy Thompson: Thank you for explaining that that's helpful to me. 273 00:42:36.810 --> 00:42:41.850 Kathy Ludwig: very simplistic I was, I was trying to not make it overly complex but. 274 00:42:42.900 --> 00:42:45.180 Kathy Ludwig: I don't know if Mr mcgough you wanted to add to that. 275 00:42:46.560 --> 00:42:47.340 Pat McGough: Though I was. 276 00:42:47.880 --> 00:42:58.500 Pat McGough: Trying to you give a couple of examples we have done that in operations in the past for non performance. 277 00:42:59.760 --> 00:43:01.950 Pat McGough: or producing a. 278 00:43:03.270 --> 00:43:12.570 Pat McGough: Perhaps a study that wasn't the intended target you ask them to study of structural problem and they tell you, your roof is leaking. 279 00:43:14.040 --> 00:43:20.400 Pat McGough: that's not what we were after, so there are the it's in contract language. 280 00:43:21.420 --> 00:43:34.410 Pat McGough: In every contract that you do as the owner, we do have the right and authority to just am the contract for dod performance. 281 00:43:38.730 --> 00:43:43.440 Christy Thompson: Thank you, I I just appreciate that explanation, and that makes me just feel better about. 282 00:43:44.520 --> 00:44:00.060 Christy Thompson: That process and then so, can you just reiterate, you know, in a few short, so why you as the superintendent and I know you said a little bit, but why you felt it was important to terminate this contract. 283 00:44:01.500 --> 00:44:24.330 Christy Thompson: And then to shift and just kind of a summary of these were my concerns, this is why I chose to terminate this contract and feel like it is a better mood for the district to pick up and spend an additional $30,000 and wait and additional sounds like two months to get it yeah. 284 00:44:25.290 --> 00:44:25.620 Christy Thompson: So. 285 00:44:26.070 --> 00:44:31.440 Kathy Ludwig: You know, essentially, it just came down to the continued delay of the completion of the project. 286 00:44:31.800 --> 00:44:37.260 Kathy Ludwig: continues to give give us pause as to when it will actually get completed. 287 00:44:38.670 --> 00:44:45.360 Kathy Ludwig: You know, a January timeline came and went of February timeline came and went to march timelines came and went. 288 00:44:47.130 --> 00:44:55.800 Kathy Ludwig: And even within those we have to keep assessing without that completed product do we have enough funds. 289 00:44:56.670 --> 00:45:07.980 Kathy Ludwig: To keep the organization afloat and that window starts to narrow with the funds and there comes a point where we kept saying let's just stick with this. 290 00:45:08.430 --> 00:45:16.770 Kathy Ludwig: We still have enough funds, there comes a point where, if you're going to make a move you just have to make it because the next company is going to need. 291 00:45:17.760 --> 00:45:26.700 Kathy Ludwig: You know 60 to 70 days to complete a full audit if they're all in and they give it their full attention, so it kind of hits that point of. 292 00:45:27.330 --> 00:45:36.390 Kathy Ludwig: If we bring in another company can they get it done and it coincides with when we have enough reserved still to maintain our organization. 293 00:45:36.990 --> 00:45:43.290 Kathy Ludwig: The longer we wait, we lose that window of time for someone to come in and say I can't even help you now. 294 00:45:43.770 --> 00:46:01.620 Kathy Ludwig: If you had called me, you know, a month ago and brought in my team, I could have helped you so it came to this critical point where, if we were going to make a decision and bring in another firm to finish it had to it has to be now because they're going to need 6070 days. 295 00:46:02.730 --> 00:46:08.130 Kathy Ludwig: To get that done and that's got to coincide with how much we have in reserve. 296 00:46:09.000 --> 00:46:22.350 Kathy Ludwig: So we could have brought in someone in February, but we wouldn't have been at that same tipping point where you know we still had enough reserve, and so we stayed on with DK w and we stayed on with them in March, and we were patient. 297 00:46:22.830 --> 00:46:38.430 Kathy Ludwig: and cooperative and everybody worked to get documents to each other and the guarantee for the end of April, when pressed just wasn't there, it was language of we hope to get it to you, but we don't know it depends on if we need more. 298 00:46:39.600 --> 00:46:43.050 Kathy Ludwig: More documents to look at that we haven't seen yet. 299 00:46:44.160 --> 00:46:57.900 Kathy Ludwig: And so that window of opportunity really got at its most narrow point and you just have to pivot and it's it's not a decision I like making it doesn't feel good to feel like you're you're giving up. 300 00:46:58.950 --> 00:47:16.590 Kathy Ludwig: It feels like it might have been really close but we don't know how close we thought it was close in February, we thought it was close in March, we thought it was close in April, and we need to go with a large enough firm that that could give us that guarantee to get that product done. 301 00:47:17.820 --> 00:47:18.330 Son Le Hughes: So. 302 00:47:18.360 --> 00:47:22.890 Son Le Hughes: i'm into additional to what Dr love with her share with you. 303 00:47:24.150 --> 00:47:36.570 Son Le Hughes: If it, though they they say they am on April 25 to get the complete audit for us on April four and written out to dictate up blue and ask them if they. 304 00:47:36.990 --> 00:47:49.830 Son Le Hughes: need any additional information from the district and their response is we'll have more questions and requests at the work in progress and we will send it to them as they arise. 305 00:47:50.340 --> 00:48:01.080 Son Le Hughes: So on that same day I send them another email and saying you know I fired Darlington because I don't know can use can you. 306 00:48:01.920 --> 00:48:15.480 Son Le Hughes: Can you send me an accomplice outstanding list that what you are waiting for what you need from us, so we can have put all about energy and make it a priority to make that happen. 307 00:48:16.050 --> 00:48:27.690 Son Le Hughes: But done on April seven the response rate is impossible to send a district, with a complex Plus, so I think because of that April seven and. 308 00:48:28.320 --> 00:48:43.170 Son Le Hughes: hit the form unable to send us a complete list of what they waiting for and looking for, then the hope for them to complete the work by April 25 is very challenging for us. 309 00:48:47.490 --> 00:48:50.010 Chelsea King: And we're this will be the last thing and then we'll move forward. 310 00:48:50.640 --> 00:49:01.410 Louis Taylor: yeah so did they did they what they did do we know when they'll be able to give us what the work that they've done that's already supposedly completed did they say when they would turn that over did I miss that and I was it. 311 00:49:02.550 --> 00:49:10.230 Son Le Hughes: No, we we help them here on dancing Dr love with send them the email or termination. 312 00:49:12.060 --> 00:49:14.130 Kathy Ludwig: I think what will happen now is. 313 00:49:15.210 --> 00:49:30.480 Kathy Ludwig: Once once you vote on this and we switch over to polly Rogers and company, then that gives polly Rogers coming the authority to now reach out to them so right now they're not going to give anything because they have no one to give it to. 314 00:49:31.110 --> 00:49:32.430 Louis Taylor: And so it's in there. 315 00:49:32.490 --> 00:49:38.730 Kathy Ludwig: it's in their file system they're secure file system, and they need the next secure file system to drop. 316 00:49:39.210 --> 00:49:52.800 Kathy Ludwig: You so that's why, today, you know this meeting is important, just in terms of timing and but, once this is this decision is official, then we can get at that timeline that you've asked director to that's a good question that know yet. 317 00:49:55.440 --> 00:49:58.290 Chelsea King: Okay, so worry about to say something. 318 00:49:58.890 --> 00:49:59.640 Kathy Ludwig: I was just. 319 00:50:00.840 --> 00:50:10.590 Kathy Ludwig: Oh, I was just going to comment that you know these are challenging conversations, because I just want to be really clear to our public that this is, this is not a disparaging. 320 00:50:10.980 --> 00:50:21.780 Kathy Ludwig: conversation about tk w that this is this is professional work and whether people deal with this and their personalized when they're remodeling their kitchen and have to get someone different to do a. 321 00:50:22.170 --> 00:50:29.190 Kathy Ludwig: You know, part of the work or their own business, they have to switch companies, you know it doesn't feel good, but it does happen. 322 00:50:30.150 --> 00:50:36.600 Kathy Ludwig: But we just want to be real clear that there is no personal disparagement here we're not questioning the hard work of the staff. 323 00:50:36.990 --> 00:50:45.750 Kathy Ludwig: Or the qualifications of tk w we want to see their work product, because we believe it will have quality to it it's the reason why we hired them. 324 00:50:46.530 --> 00:50:54.990 Kathy Ludwig: This is just an unfortunate combination of we believe a number of things with with timing with newness of two companies with staffing with. 325 00:50:55.380 --> 00:51:12.150 Kathy Ludwig: Perhaps some communication breakdown, as we learn to work together that's culminated in this unfortunate decision, but just to be real clear where this is nothing negative about their company and and who they are, and how and how they've done their work so. 326 00:51:13.320 --> 00:51:18.540 Chelsea King: Okay, and director Thompson is you do feel like there's something else that you have to say before we can move forward are we good. 327 00:51:19.440 --> 00:51:25.440 Christy Thompson: I just wanted to ask about the money so Dr Hughes you alluded to that you've given our. 328 00:51:26.490 --> 00:51:40.830 Christy Thompson: Our estimate, to the state does that mean they're going to release our money, regardless of when our audit comes in, that we will get that money or is that release of the money still dependent on official audit. 329 00:51:41.670 --> 00:51:43.620 Son Le Hughes: It depend on the officer audit. 330 00:51:44.820 --> 00:51:48.870 Christy Thompson: Okay, so we have to have that official audit in order and so. 331 00:51:49.980 --> 00:51:59.460 Christy Thompson: That means that you must feel confident that we have the money to get through until polly polly Roger says they're able to get this audit done. 332 00:52:00.090 --> 00:52:00.390 Son Le Hughes: Oh. 333 00:52:00.450 --> 00:52:01.230 Christy Thompson: That we're okay. 334 00:52:01.440 --> 00:52:02.070 Christy Thompson: He said okay. 335 00:52:02.250 --> 00:52:12.360 Chelsea King: She said that okay i'm moving forward just because we've been at this for almost an hour, we have a couple more, and I feel like we've all had chance to ask all of our questions, well, I mean the contract is terminated. 336 00:52:12.840 --> 00:52:22.350 Chelsea King: The decision before us is, who are we going to hire to get the job done, we have a resolution on the table to hire polly Rogers who we've already agreed to move forward with in the coming years. 337 00:52:22.710 --> 00:52:37.530 Chelsea King: And we've decided to have two liaisons take the work product from tk w learn with it using an independent consultant, so we just need a motion on you know who we're hiring and does anybody want to go for that. 338 00:52:42.150 --> 00:52:45.210 Chelsea King: All right, I move that we pass resolution. 339 00:52:50.160 --> 00:52:59.490 Chelsea King: As a an emergency procurement and to authorize a superintendent to negotiate and execute on audit services agreement with paulie Rogers and company to. 340 00:52:59.490 --> 00:53:02.520 Chelsea King: complete the 2020 2021 audit report. 341 00:53:04.890 --> 00:53:05.370 Louis Taylor: Second. 342 00:53:06.270 --> 00:53:15.750 Chelsea King: All right, thank you, Dr Taylor with the second and i'm assuming there's no further discussion and if that's correct then miss Douglas we please call about. 343 00:53:16.530 --> 00:53:18.480 Kelly Douglas: Certainly stack to Taylor. 344 00:53:19.680 --> 00:53:20.070 Louis Taylor: I. 345 00:53:20.970 --> 00:53:21.960 Kelly Douglas: tacked to slip. 346 00:53:22.530 --> 00:53:24.870 Kelly Douglas: I nice chat Thompson. 347 00:53:25.830 --> 00:53:27.810 Kelly Douglas: I checking. 348 00:53:28.440 --> 00:53:29.790 Kelly Douglas: I thank you. 349 00:53:30.810 --> 00:53:39.600 Chelsea King: All right, thank you very much, so we'll move forward to the next agenda item, turning to the Department of operations and. 350 00:53:41.070 --> 00:53:54.750 Chelsea King: i'm not sure if it's Mr mcgough that will be speaking to this who we have that the first item for a the proposed resolution for the new a fee creek middle school food service equipment and all hand the floor over to. 351 00:53:56.310 --> 00:53:57.390 Christy Thompson: The kitchen, I asked. 352 00:53:57.750 --> 00:54:03.540 Christy Thompson: Just for a question since i'm if anytime if there it's possible to throw the memo up. 353 00:54:04.080 --> 00:54:15.270 Christy Thompson: on the screen only because i'm not working with both usually have one screen to look at memos and when screen, but I have my small little phone, so I keep looking down, but I can't see it as well, so anytime there's a memo. 354 00:54:16.530 --> 00:54:20.370 Christy Thompson: Reference if that can go up that'd be awesome Thank you. 355 00:54:22.740 --> 00:54:42.900 Pat McGough: alrighty well, thank you board members of this, there will be two resolutions before you and i'm I am going to turn this over to Mr Douglas because he has all of the details of both of the resolutions so real. 356 00:54:45.150 --> 00:54:45.780 Remo Douglas: Thanks pat. 357 00:54:46.890 --> 00:54:51.300 Remo Douglas: The first one is, I understand the sequence of the agenda is resolution. 358 00:54:52.890 --> 00:54:54.750 Remo Douglas: Around the food service equipment. 359 00:54:56.460 --> 00:55:06.960 Remo Douglas: We went through our standard public procurement process with all the full advertising and invitation to all interested firms through a variety of public means. 360 00:55:08.910 --> 00:55:10.890 Remo Douglas: And we did receive. 361 00:55:12.570 --> 00:55:16.050 Remo Douglas: The one bid from curtis restaurant equipment. 362 00:55:17.580 --> 00:55:27.960 Remo Douglas: That bid at $294,000 or so is well within the $400,000 budget that we had set aside within the project. 363 00:55:29.160 --> 00:55:31.260 Remo Douglas: I suppose first off I should have explained. 364 00:55:32.280 --> 00:55:39.240 Remo Douglas: The reasoning for this contract being separate as opposed to being under the general contract which the board approved, I believe, in December. 365 00:55:40.950 --> 00:55:53.910 Remo Douglas: Food service equipment under this package is things like ovens stove tops coolers referred, you know refrigerators warmers those sorts of things. 366 00:55:54.750 --> 00:56:04.860 Remo Douglas: That are largely purchased brought in plugged in and set up as opposed to constructed into the physical infrastructure of the building itself. 367 00:56:05.490 --> 00:56:11.490 Remo Douglas: contracting this work separately allows us to avoid a few layers of markups through the general contractors. 368 00:56:12.210 --> 00:56:23.820 Remo Douglas: We do include language in both contracts that say hey we all need to collaborate and work together to make sure this happens, this version and approach of doing things is pretty typical. 369 00:56:24.900 --> 00:56:34.800 Remo Douglas: we've done it many times here it's been done many times elsewhere, it is very successful and it we believe saves a considerable amount of money in those markets. 370 00:56:36.600 --> 00:56:42.390 Remo Douglas: That there's only one bid on a project can be a potential sign of concern. 371 00:56:43.560 --> 00:56:52.860 Remo Douglas: This is an industry where there are not very many players i'm not aware of a time we've ever had more than two and it's always been the same two firms. 372 00:56:53.940 --> 00:57:03.810 Remo Douglas: And I I have not yet explored why that second firm elected not to approach this i'm not certain, given the last two years, if they're in business or what the state of their businesses. 373 00:57:05.160 --> 00:57:07.200 Remo Douglas: But, to the extent that the budget. 374 00:57:08.490 --> 00:57:17.220 Remo Douglas: accommodates this quite easily it's not out of line with what we expected staffer confident in the one band that we did receive. 375 00:57:19.350 --> 00:57:26.130 Pat McGough: relied on also like to add that the process followed all Oregon or else to 79 see. 376 00:57:27.210 --> 00:57:33.990 Pat McGough: So it did meet all of the legal requirements for a public contracting or an rfp. 377 00:57:36.870 --> 00:57:39.060 Remo Douglas: yeah so in this case a competitive bid. 378 00:57:40.350 --> 00:57:51.720 Chelsea King: yeah great they love the cost savings it's a considerable amount and totally understand the, thank you for explaining why it wasn't folded into the capital bond and makes sense. 379 00:57:52.770 --> 00:57:58.170 Chelsea King: And so I think this would be probably a good agenda item to just start with a motion. 380 00:58:02.820 --> 00:58:13.950 Chelsea King: All right, I will move that we pass resolution 2021 dash 13 to purchase the new at cr I love saying that new at creek middle school food service equipment. 381 00:58:15.030 --> 00:58:15.540 Christy Thompson: i'll second. 382 00:58:16.110 --> 00:58:18.510 Chelsea King: All right, thank you bye sure Thompson with that second. 383 00:58:19.530 --> 00:58:22.050 Chelsea King: Is there any further discussion or questions. 384 00:58:25.380 --> 00:58:28.830 Chelsea King: Alright hearing and seeing none, we can call that vote, please. 385 00:58:29.700 --> 00:58:30.480 Kelly Douglas: Yes, yeah. 386 00:58:31.620 --> 00:58:32.820 Kelly Douglas: director let's do it. 387 00:58:33.660 --> 00:58:34.110 Right. 388 00:58:35.220 --> 00:58:36.120 Kelly Douglas: track to slip. 389 00:58:36.750 --> 00:58:37.170 I. 390 00:58:38.220 --> 00:58:39.000 Kelly Douglas: Checking. 391 00:58:39.570 --> 00:58:41.970 Kelly Douglas: I I said Thompson. 392 00:58:42.750 --> 00:58:44.340 Kelly Douglas: I think, yes. 393 00:58:44.940 --> 00:58:46.020 Chelsea King: All right, great. 394 00:58:46.050 --> 00:58:51.570 Chelsea King: Thank you that's exciting stuff and then we'll move on to agenda item for be the proposed. 395 00:58:51.570 --> 00:58:57.210 Chelsea King: Resolution 2021 dash 14 for the replacement. 396 00:58:58.230 --> 00:59:04.920 Chelsea King: Fire sprinkler system at beckman creek primary and Mr Douglas is that you speaking to this one as well. 397 00:59:05.880 --> 00:59:14.970 Remo Douglas: It is thank you chair, this is one of those items that won't generally get a whole lot of people excited ahead of time. 398 00:59:16.470 --> 00:59:24.450 Remo Douglas: These are those hidden systems that generally quietly work along and do their thing and most people don't recall that perhaps they're even there. 399 00:59:26.160 --> 00:59:33.180 Remo Douglas: But we do know that the sprinkler system at beckman has had problems over the years, the last two years, particularly. 400 00:59:34.020 --> 00:59:42.750 Remo Douglas: And so the system has been having leaks, which causes of course water to flow into the school, which is a problem in and of itself, and it also you know. 401 00:59:43.170 --> 00:59:54.930 Remo Douglas: it's required that then the fire alarm goes off and we empty the building and so we have continued to work diligently to make repairs and try to mitigate the occasions in which that happens. 402 00:59:55.710 --> 01:00:04.890 Remo Douglas: But we are all very excited pat Jeff and I to have this project going through we're replacing all of the large mains. 403 01:00:06.000 --> 01:00:12.390 Remo Douglas: waterlines throughout the building, which is where the vast majority of the issues have originated. 404 01:00:14.250 --> 01:00:25.020 Remo Douglas: And again, we went through the full competitive bid process public advertising and all those things we did have two contractors elect to bid. 405 01:00:25.830 --> 01:00:37.530 Remo Douglas: And the low bid was from broke camp and Jaeger for 170 $5,000, this is a firm we've worked with very successfully a few times in the last couple of years. 406 01:00:38.970 --> 01:00:55.380 Remo Douglas: And as you see the price as well within the budget originally allotted, as you know, we do our best, you know, four years ago, to try to quantify and understand the scope of work for each project in this case, as we dug into the details with designers. 407 01:00:57.120 --> 01:01:07.950 Remo Douglas: The amount of demolition and things that needed to occur for this work was less than we had thought it might have been without spending a lot of money to find it out before we had the bond. 408 01:01:08.670 --> 01:01:17.880 Remo Douglas: So in this case we've done quite well, we believe the bids are reasonable to the standards of the industry today and staff would recommend approval. 409 01:01:22.890 --> 01:01:26.910 Chelsea King: hey great I think this is another good item to start with emotion. 410 01:01:29.970 --> 01:01:35.100 Chelsea King: And i'll just keep the ball rolling here all move that we approve the. 411 01:01:37.440 --> 01:01:43.560 Chelsea King: Resolution 2021 dash 14 to replace the beckman creek fire sprinkler system. 412 01:01:45.000 --> 01:01:45.450 Christy Thompson: A second. 413 01:01:46.140 --> 01:02:05.160 Chelsea King: All right, thank you, my share Thompson with the second, I do have just one question and it's about just helping me understand this world in general, and so, when I see two bids come in and one is 100% more than the other, can you help me understand how, in the world does that happen. 414 01:02:06.690 --> 01:02:25.620 Remo Douglas: So there's a simple answer the second contractor is very busy they don't have readily available, the management staff that they need to do the work, but if someone wanted to do it for that dollar value they would find someone and they could afford to hire someone to do it. 415 01:02:27.030 --> 01:02:36.690 Remo Douglas: You know the last two years, you know we'll we'll get more into a quarterly report here very shortly, but the last two years, in the last 10 months or so. 416 01:02:37.770 --> 01:02:51.720 Remo Douglas: have devastated a lot of the construction industry staffing, a lot of folks are retiring you know they're getting to that age and and covidien other things that prompted them to move on. 417 01:02:52.140 --> 01:03:09.720 Remo Douglas: Companies are struggling to find a new management to come in and lead these projects in the field we're seeing unprecedented turnover in active projects we've had three or four superintendents the lead field person on a couple of our projects. 418 01:03:10.890 --> 01:03:19.080 Remo Douglas: it's it's the nature of how things are, so we are you know i've been reaching out to other owners to a variety of contractors i'd worked with and. 419 01:03:19.530 --> 01:03:28.200 Remo Douglas: You know how many beds are you seeing on projects right now we're not seeing very many and they're saying there's there's projects going out just receiving zero bids. 420 01:03:28.860 --> 01:03:35.340 Remo Douglas: or its or they're only getting that one bid that's quite high there are instances where that's happening so. 421 01:03:36.270 --> 01:03:47.430 Remo Douglas: we've been very fortunate in these bids this spring, the bids, you know that little bit that's coming in, is quite reasonable it's appropriate it's with firms that we're familiar with that we trust to get the work done. 422 01:03:48.420 --> 01:04:05.160 Pat McGough: So i'd like to interject right here i'm just this week yesterday and today is the statewide conference for all facilities managers for all school districts in Oregon that's happening down in Albany and one of the. 423 01:04:06.600 --> 01:04:26.610 Pat McGough: conference courses, where it was about bond work and the number one topic was the inability to get multiple bids on projects, so it isn't just a local problem, it is a statewide problem that's being experienced across the board. 424 01:04:30.990 --> 01:04:32.010 Chelsea King: Okay, great thinking. 425 01:04:33.420 --> 01:04:34.320 Christy Thompson: yeah That was my. 426 01:04:34.530 --> 01:04:39.300 Christy Thompson: That was my only question, so thank you for asking that and for clarifying that tonight oh my God. 427 01:04:41.580 --> 01:04:46.980 Chelsea King: All right, great so keeping it moving, we have a motion and a second, is there any further discussion. 428 01:04:49.740 --> 01:04:52.620 Chelsea King: Okay, I think that that's a no i'm is Douglas we please call about. 429 01:04:53.310 --> 01:04:55.620 Kelly Douglas: Certainly direct to Kelly slipped. 430 01:04:57.150 --> 01:04:57.540 Kelly Sloop: I. 431 01:04:58.440 --> 01:04:59.610 Kelly Douglas: checked in US Taylor. 432 01:05:00.180 --> 01:05:00.540 I. 433 01:05:01.860 --> 01:05:02.880 Kelly Douglas: shall proceed Thompson. 434 01:05:03.780 --> 01:05:06.480 Kelly Douglas: I and Chelsea king. 435 01:05:06.810 --> 01:05:08.040 Kelly Douglas: I think. 436 01:05:09.420 --> 01:05:24.960 Chelsea King: Great Thank you everybody, and thanks for those cost savings and I think fire sprinkler systems are actually quite exciting so thanks for staying on top of that, and I think that that concludes our meeting i'll see you all Friday or. 437 01:05:26.340 --> 01:05:36.300 Chelsea King: No, I won't i'll see you Monday at five o'clock dinner will be served at 430 if you don't want to eat during the meeting come early otherwise feel free to eat during the meeting and. 438 01:05:37.560 --> 01:05:39.720 Chelsea King: we're now adjourned, thank you. 439 01:05:40.200 --> 01:05:42.270 Kathy Ludwig: Thank you, everybody Thank you so much. 440 01:05:42.330 --> 01:05:42.720 Louis Taylor: Thank you.