Ad Hoc Committee on Building Ownership - 1/9/06

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Proceedings of the Board Ad Hoc Committee on Building Ownership

District No. 2, Yellowstone County

High School District No. 2, Yellowstone County

 

January 9, 2006

 

The meeting of the Board Ad Hoc Committee on Building Ownership was held in the Lincoln Center on Wednesday, January 9, 2006. Present were Trustees Sandra Mossman, Joel Guthals and Conrad Stroebe; Superintendent Rodney Svee, Dave Williams, Rich Whitney and Jeff Weldon. Trustee Malcolm Goodrich was absent.

 

Ms. Mossman called the meeting to order at 12:05 and explained that at the recent agenda setting meeting of the Board of Trustees, Board Chair Kelker had appointed her chair of this committee, and instructed that this committee make a recommendation on issues of ownership, primarily the Grand Avenue building. A decision needs to be made today about Crossroads ownership and a clear framework for where we’re heading including a timeline on the rest of the decision making.

 

Jeff Weldon presented information on history of ownership issues within the district.

 

Rich Whitney presented information on replacement value of the Grand Avenue building with insured replacement value of $2,159,144 this year. A formal appraisal would cost approximately $3,500 and an executive summary would cost about $600 which is a list of two or three comparables. A rough estimate of the land value is $1,306,800 which is two acres at $15 per square foot. He stated that there is no definitive border between Grand and Lewis and Clark especially on the south side by the softball fields. There is some joint use there. If there is going to be a transaction, we would have to have a line defined in order to have a land value. It would have to be subdivided. On the west side the bleachers set out past the line also.

 

Rod Svee has asked Jeff Weldon to look at a lease arrangement so we could get it transferred over so the high school becomes responsible for all the maintenance. Currently the high school is paying for all the operating costs. Rich presented a handout with projects done at Grand Avenue from 7/1/2000 through 11/15/2005. All improvements came out of high school money. Basically this building has been used for secondary use since 1983. Rod Svee explained that a lease would clarify the issues legally.

 

Conrad Stroebe would like to see a formal appraisal. Sandy Mossman said the committee needs to make a determination by the next Board meeting so we need a short term and a long term interpretation.

 

Conrad Stroebe moved to formalize a lease arrangement between the Elementary District and the High School District on the Grand Avenue building and that we request a formal appraisal of the site and the facility to aid in long term transfer between the two districts. Joel Guthals seconded the motion for the purpose of discussion.

 

Rich Whitney feels there may be a need for an engineering survey to establish the legal description and the appraiser will need that. Joel Guthals stated that we need to have terms and conditions of the lease, length of lease, amount. It should be the high school responsibility for all maintenance and repair to the structure. The term would be the end of the next fiscal year (2007). Conrad feels it should be completed by the end of this fiscal year. He reiterated that we need to know the value. Joel Guthals stated that it could be for this year subject to an extension.

 

Sandy Mossman stated that the elementary is currently paying the insurance. A commercial lease would allow sharing of insurance responsibility by the tenant. In the event of loss, the proceeds would go to the owner. Jeff Weldon will address the insurance issue and asked what parcel of the land do you want to transfer, all or just the corner. Conrad Stroebe stated that is the reason for an appraisal, to determine the highest and best use of the land and would like to have a lease of the entire property including Lewis and Clark. Superintendent Svee mentioned that Lewis and Clark is owned entirely by the elementary district but could be used for trading purposes.

 

Joel Guthals made a motion to formalize a lease between the districts for the use and operation of Grand Avenue School. The motion was seconded by Conrad Stroebe and passed unanimously.

 

Joel Guthals made a motion that the School District order and obtain an appraisal of the entire Lewis and Clark and Grand Avenue Schools property, and the appraisal shall break down Lewis and Clark School and the approximate two acre parcel for the Grand Avenue School, the cost of the appraisal should be borne one-third to the High School District and two-thirds to the Elementary District. Conrad Stroebe seconded the motion. There should be a site plan for the original. Rod Svee stated that a survey may be necessary. This is for a formal appraisal, approximate $6,000 to $7,000 estimate, to be paid from building fund or building reserve funds or general funds. There being no further discussion, the motion passed unanimously.

 

Joe Guthals made a motion to obtain an engineering survey to designate the boundary of the approximate two acre Grand Avenue School property providing the district does not presently have a survey. Conrad Stroebe seconded the motion. This will be one-third high school two-thirds elementary funding. Staff will work with Jeff on expediting that. Sandy reminded the committee that the goal is to have this information as soon as possible so we can make a formal decision by July 1. The motion passed.

 

Joel Guthals made a motion to recommend to the Board pending finalization of the lease and approval of the lease of the Board, that the High School District shall take over the maintenance and operation expenses of the Grand Avenue School. This motion was seconded by Conrad Stroebe and passed unanimously.

 

Sandy Mossman asked if everyone would be available at the Board meeting to answer any possible questions.

 

Joel Guthals presented a handout for maintenance plan of Crossroads High School. Ms. Mossman questioned whether this should be an action item at this time. Mr. Guthals wants action by the committee because he has tried for three months to get this before the Board or the Business Committee. He has listed the bigger items with a discussion figure of $50,000. Rod Svee stated that we need to first do a lease to clarify high school budget and then present to the leadership team for budget planning. There are no dollars available this year. Conrad Stroebe said this could be taken out of building reserve budget. Rich Whitney said there is $64 million. Mr. Stroebe said that it should be rearranged to cover these costs with these items being new priority. Sandy Mossman questioned the priority of these requests. Dave Williams stated that the current lists are prioritized. Dave Williams said that generally exterior work is secondary to interior work. He cautioned changing the priorities at this time. Ms. Mossman stated that she is reluctant to interfere with the process, and is reluctant to bring this forward for recommendation.

 

Rich Whitney said that there is a system for identifying issues. He feels that the potholes are a safety issue and will be fixed and funded from the general fund. The vestibule doors could be purchased out of building reserve money, and the staff could install them. He will check on the priority of the doors. He stated that the pile of dirt should not be removed because it would create a big hole. Rod Svee requested that the pile of dirt be leveled. Conrad Stroebe said that we need to stop using any facilities where there are safety issues and there is no money for repair and maintenance.

 

Joel Guthals moved to recommend to the Board pending finalization of the transfer of Grand Avenue School/Crossroads High School, the High School District budget for the current fiscal year (building reserve funds if necessary), shall be allocated for the following upgrades and renovations, not to exceed $25,000 – installation of interior vestibule doors at main entrance; clean up and landscaping work in front yard and back yard, installation of recreational facilities in back yard, tables and chairs for back yard, new signs saying “Crossroads High School,” patching of parking lot. Superintendent Svee shall meet with Principal Blades, Facilities Director Whitney, and Business Manager Harper, to prepare plans and fiscal analysis for these proposals to be presented to the Board. Conrad Stroebe seconded the motion.

 

Sandy Mossman asked for discussion. Jeff Weldon wonders about the scope of the motion relative to the scope of the committee’s charge. Sandy Mossman is concerned about getting the waters muddied with something like this, and is concerned about this committee carrying it forward. It was suggested that this go to the Business Committee. Joel Guthals wants this done with current year budget. Rod Svee asked that the last part of the motion be amended. Joel amended the last part of the motion to read “the administration should prepare plans and fiscal analysis for these proposals to be presented to the Board.” Joel wants to get this to the Business Committee and the Board Chair asked that it come to this committee. Dave Williams feels the Board Chair was reluctant to pursue the maintenance and repair issues before the decision on ownership was made because of talking about where the funds would come from. The amended motion was voted on and passed unanimously.

 

All of these motions will go to the Board under the consent agenda. Sandy asked that all members of this committee be present at the Board meeting January 16th to answer any questions on these motions.

 

Sandy Mossman would like to schedule a meeting in two weeks. Jeff Weldon said we will need the lease on Grand Avenue and a list of properties that will be dealt with. Conrad Stroebe stated that it is important to look at what is going on with the middle schools. Conrad is concerned about getting stuff done before the budget process is too far along. Rod Svee needs some direction for figures to use for discussion purposes. Rich Whitney will get current insurance values of the middle schools and approximately value of land. He will try to get some comparables. Jeff Weldon asked if the final result will be which district owns the property or each facility. Rod Svee stated that Lewis and Clark is totally elementary so it will be just three middle schools. Dave Williams will be getting an appraisal at the Career Center which will include the elementary portion east of the Career Center. Jeff Weldon will get information on the four middle schools, the Career Center property and across from Castle Rock which could be available for trade. Rod Svee will get information on all school properties.

 

Sandy Mossman wants to set a date for the next meeting. Information will include insured value, estimated value of land, engineering survey, and title work which has been done. Sandy asked that the committee review their homework which was provided months ago. The next meeting will be Wednesday, January 25th at noon.

 

Sandy is concerned about the rumor mill in the schools and in the community and how it might relate to a future bond issue. Conrad feels strongly about the need to have a decision on who owns what before we decide on a bond. Rod Svee said that there is going to be a discussion at the state level about maintenance and repair issues.

 

The meeting adjourned at 1:15 p.m.

 

 

 

 

Sandra Mossman, Chair

 

 

 

Nancy Coe, Recorder