Good evening, everyone.

Um, it is Tuesday, September 23rd.

This is a regular meeting of the committee on finance on Province Councilwoman Joanne Ryan.

Um could you kindly read the role?

Chairman and Ryan.

Present.

Thanks, Chairman Talent.

Yeah.

Council Angie Black.

Councilman Grace.

Yeah.

Council and check.

Present.

Yeah, five times that we have a lot.

Thank you, General Clerk.

Um let the record reflect that we are joined by the solicitor Ken Cheverini.

Thank you very much.

Madam Splash, I would like to entertain a motion to amend the agenda to add on the mile of history project uh to this meeting agenda for the purpose of sole purpose of scheduling a public hearing.

Also leave the rating.

And I have that motion.

Motion made by um councilwoman and blood, seconded by councilman Taylor.

All in favor, aye, and opposed, eyes have it, motion carries.

Thank you.

Okay.

Next, I would like to ask this committee for a motion to uh take an item out of order.

Um I would like to take item five and hear that first.

May I have that motion?

Motion made by council and draw, seconded by councilman Taylor.

All in favor are aye and opposed, eyes have it, carries.

Madam Clerk, please read the item five into the record.

Communication from his comment of mayor, meeting September 9th of 2025, informing the honorable members of the city council that pursuing section three of the B, and one of our provincial new charters, as many and public law, chapter 45 through 50, sections one through 31.

He is his day appointing my colleague of 67 Providence, but I have to nine other position of director of the department of recreation.

Okay, Sean Lolly, please come forward.

Sure, Ollie.

Thank you, Mr.

Holly.

We all have your resumes.

Oh, before I started, but recognize that uh councilwoman Peterson has been supposed to see the okay.

So we all have your resume um before us.

Um but we would like um to give you the opportunity to talk about yourself, your accomplishments, who you are, what you've done to do, and how you can help the city in this new role.

Well, with the mindfulness of time, I prepared a statement.

Um good evening, thank you for your time.

And allowing me to speak with you this evening.

My name is Sean Hawley, and I appear before you with the hope of gaining the support to be director of recreation for the city of Providence.

I take this role with the utmost importance and with a passion and determination that I am confident will be on back.

I was born in Washington, DC, but the City of Providence is where I consider myself to be from, but also where I truly believe that I have to find us.

I view recreation centers as a central components to any thriving community.

And at the forefront of each community in the city of Province as a whole on the youth.

Empowering and a reaching the youth is a task that I take it seriously for many years.

I firmly believe that in order to have a successful and vibrant community, there needs to be recreation centers operating efficiently at the hub of each of those communities.

And recreation is not just sports, nor fun and games.

It's also much more than that.

Recreation in my vision cuts deeply with a multitude of layers.

Yes, sports, but also many other aspects included, but not limited to promoting community, strengthening diversity and inclusiveness, family, safety, character building, empowerment, leadership, education, health and wellness, workforce career development, development of social skills, enhancing quality of life.

It is a lifestyle.

I am confident that my cross-training along with my skill set and fast experiences academically and professionally provide me with a strong foundation from which I can be successful as your director of recreation.

Academically includes degrees from the province college as well as from Catholic University School of Law.

Professionally includes that of being a sports agent, Professor at Johnson and Wells University, Sports Entertainment Management Department, Professor at Province College at the undergraduate and graduate MDA level with courses ranging from history of sports to sports management.

Also the position I'm currently left as the administrator for the Equal To the Office for the State of Ohio.

I look forward to working closely with my amazing staff at the main office.

I look forward to working with the individual recreation center directors, who I consider to be the heartbeat of this operation and their staff as well.

I look forward to working with community leaders to create a path forward to success.

And I leave you with something that I view is extremely important to the success of my role, and that is the partnership with Providence City Council.

I certainly just practice integral role that needs to be played in making the city of Providence the best city.

And I do consider you as feedback.

Thank you for that.

Wonderful.

Any questions?

Councilman Bridge.

Hi, Shana.

Hello.

Um I have several questions.

That's okay.

Um you have a very extensive resume.

Would you speak up a very extensive resume?

I have Paladines.

You serve at Madeline Rogers, which is in my area, rec for three years, which is a short period of time.

Um you said that that recreation is means a lot to community, which it does.

Why did you only stay there for such such a short period of time?

Why did you leave?

And the reason I'm asking is most people when they go into the recreational centers, they tend to make that their life a goal and they tend to stay forever.

Um why did you leave?

Well, I don't necessarily consider three years to be a short period of other respect to digital.

I enjoy it, enjoy it immensely working in Madame Ranger Center.

I felt like I accomplished quite a bit there.

I felt like I worked well.

Uh things between the Smithdale Library and other initiatives.

Um I do regret leading Rockish Recreation because it was a strong uh network that I had to run for my staff and the community too as well.

But at that time, I felt it was a call for me to uh to move along to a position uh with the city of France and as workforce development, which I do see still working with youth, requiring you to helping to find individuals uh career development.

Okay.

Um the other one, um there's an article that I'm sure was gonna come up, so I'm not gonna be the one to bring it up.

Um about there being uh the issue of double dipping, should we say, with the uh Princeton and our city to prior men, would you like to address that or absolutely I would love to address that?

I uh first of all, I feel it's unfortunate that uh whole issue, which is flawed and it's reporting was brought up again.

Um I take that very seriously to serious to be accused of such an issue.

we say with the uh Princeton and our city to prior myth would you would like to address that or absolutely I would love to address that I uh first of all I feel it's unfortunate that uh whole issue which is flawed and it's reporting was brought up again um I take that very seriously to serious to be accused of such a issue I'm not a cheater and would never do so I'm raised by two parents that raised me well and I know better than but be that as it may it's also been flawed in this reporting that I left that position on my album because that was a position I went into that there was some discrepancy and this communication or what the role was that I had and I took the high role out of respect for everybody and although my father told me to never quit a job unless you have a job I thought it was in my best interest to to move along that job okay the other thing and I told you I was going to ask you some tough questions here's the next the next question is seems like a lot of these things were really short term um positions is there a reason for that I don't know exactly you referring to um a lot of these kind of short term but oftentimes one position leads to the open door of another position um I have to look out for myself too and the progression of my career because I like it if I feel that there's a position that allows me to um move forward on that path for my career that's going to benefit others too as well normal wage I should not be uh forced to stay in a position what I feel like I could do to be better by moving with all to this job but I I don't necessarily see those positions I I think I know what you're referring to but one position kind of leads man and man to to the next position okay and my oh just one okay and the other one is you have a lot of current um you're on a lot of boards and you're there's a lot of current positions um here how are they gonna interfere or are they gonna interfere with I've already discussed with the mayor and I think plan on separate officer boards uh what are my favorite boards have to be in the rules so I'm not gonna say it's step and down for them and talk about love for water fire province um however I do have to make sure that none of those get in the way of the mechanics and the teaching I'm sorry and the teaching rules and the teaching ones can you have one two three four teaching any teaching that I do is outside of uh work hours anyone else Councilman Stanford uh thank you chairwoman uh thank you Sean for uh presenting here before us and stepping into this uh very important uh role for the city of Providence um I just had a quick question um basing off my my colleagues last question um it's confirmed I guess that you are going to continue uh to to be a professor um which is obviously you're you're right um my question is um what's your what's your course load per semester usually um and if it's outside of work hours I'm guessing their their evening classes um which does raise a little bit of the questions because there is um a lot of uh after school and evening events um that our rec centers uh participate in so um just trying to get a little bit more information on you know how uh how busy your outside work is gonna uh keep you from possibly uh being uh available for evening uh recreational activities uh one course at best one evening at best um for for the teaching aspect um i had made a commitment to teach in that class and i think you would respect that it wouldn't necessarily be fair to the students that I automatically pulled a plug on that however I have not committed to teaching in the courses beyond the semester I will reflect on that to see if that is going to get in the way of uh my job as director of recreation should have I appreciate that thank you for it's welcome well I'd like to say I'm very impressed with your resume background I know you personally know of your commitment um to our youth and um I'm uh impressed with your resume and I like the fact that you um I will retain a teaching position an adjunct teaching position on because I think it's a nice uh role model we serve as a nice role model for our knowledge folks and I think I can speak for all our council members when I say we are very close we pay close attention to the work that happens in our recommendation centers there's a community centers

courses beyond the semester I will reflect on that to see if that is going to get in the way of uh my job as director of recreation I appreciate that thank you right anyone else well I'd like to say I'm very impressed with your resume background I know you personally know from your um to our youth and um I'm impressed with your resume and I like the fact that you um are we retain uh a teaching position an adjunct teaching position um because I think it's a nice uh role model we serve a nice role model for our element folks and I think I can speak for council members when I say we are very close we pay close attention to the work that happens in our recreation centers there's a community centers on the center of our communities uh and we pay close attention to that um I think you're a great I think the mayor administration did great job in finding you and enticing you to take on this role I think um um you've got all the tools necessary um I would just like to ask you one quick question what's first thing that I do and uh if you're in front of which I think you will be um how are you doing Salwell what do you think well I'm only the second on this second day of the job however I do plan on uh for the next couple of weeks uh taking a big down a comprehensive um review of what's going on at the recreation centers meeting with staff meeting with my directors um so to put an exactly I have a a whole lot of ideas and thoughts of what I would like to do but I think that to do to put in place uh an educated um plan I need to do a dive into see what's going on at the recreation centers and see how that I can build off of what it's already been put in place.

Great um let the record reflect that we're joined by Pro Ten on the shared and I've leading up question as well.

Yes thank you uh thank you very much for stepping up and and uh you know um being the director of uh recreation just uh two questions one is uh and perhaps uh you spoke about it that's what you did so what you got and as it relations to the um the management of personnel um what role how long has it been and what role have you played in managing um teams or is that and how with the staff uh can you see that did you manage and now that you're gonna manage other the bundle of all recreation well I've managed various sizes of staff the staff that I just came from at the state that's a small staff but aligning staff and it's about responsibility within and I've been able to get out of a small staff a great deal of body of work um but I have worked with larger size staff as well but I'm not looking to micromanage the deep into each recreation center staff there's roles and responsibilities I need to place all my recreation center directors and have them have accountability to manage their staff as well but we will work hand in hand together.

And uh just a follow up on that um understanding that the position I've stated and also we'll cover letter indicating uh as a director servicing the city private mayor how do you see the relationship with city council um with each of us 15 of us um in how do you see that role especially coming from the experience that you had by your two uh several youth back working within the system what would you improve uh managing these relationships with um the needs of of our uh city council members but also because they represent the area that are particularly um the needs are uh somewhat even uh unique to their own region uh the data was that actually that is a question that was raised before but but I will answer to you thank you um I see you guys as teammates I see you uh city council is an extra part of uh the operation of the city of province so I look forward to working you very closely um but I also would like to have you guys step up too and work with me also I know for Florida City a great partnership uh and making each recreation center better um and yes I do agree that each recreation center has its own shape and mold and look um and there's a that's what I meant by over the next couple of weeks I'll look forward to working with each recreation center get taking a comprehensive overview of what is going on at those recreation centers to uh get a strong understanding of the makeup of the community around it and so forth so it's important to understand that each recreation center cannot be taken as a cookie cutter type of recreation centers each one has its own um

Um and there's a that's what I meant by over the next couple of weeks.

I'll look forward to working with each recreation center and get taking a comprehensive overview of what is going on at those recreation centers to uh get a strong understanding of the makeup of the community around it and so forth.

So it's important to understand that each recreation center cannot be taken as uh cooking cutter type of recreation.

Each one has its own um makeup.

Each one has its own labor.

So I look forward to working with each one as well as it does last one.

I'm sorry, right?

Um, do you have any thoughts or decision on the rectors uh fundraising for recreation?

As you know, the recreation departments and all the body, but the basic part of the also faces a lot of challenges when it comes to uh resources of funding for our youth and so forth.

Do you have any position or thought about um the uh funding or direct fundraising and or having other team fundraising for um the particular needs?

First, I must say that not everybody's equipped to be a fundraiser.

So to put that on direct directors, I need to take a look at are they work with the work.

I'm not opposed to it.

Um back when I was at Rogers Recreation, there was bad fundraising was bad and later there I'm saying it is something that's going on currently.

Uh there's a need to look at keeping operational uh funds in place to help drive uh individually in the recenter and for all recreation facilities as a whole.

So it's something I look forward to looking at too make a vote, but I think first and foremost, not everybody is equipped to be a fundraiser.

So to put fundraising on somebody that's not capable, we need to have the right people in place to everybody all set.

Motion uh made by the councilman Taylor.

I have a second, second second by councilman Sanchez.

Any opposed?

Uh by motion.

I'm sorry, that's being you're abstanding.

Yes, we okay.

Um, so we have a motion to approve all in favor, aye, any opposed, eyes have it.

Motion carries.

Thank you.

All right.

Um, so you need to go to the support of full council.

Um, I would encourage you to introduce yourself to other council members so that they know you before they test their vote on good luck.

Thank you very much.

I appreciate the time.

Okay, Madam Clerk, please read item one into the record.

The province public school districts attend me a discussion application alright.

Okay, we have one exhibit.

Okay, can everyone come forward that it's going to testify on this topic?

In the meantime, may I have a motion first to enter the packet that is in front of you?

Red and white striped on as uh exhibit one a and that motion motion may by council.

And um uh Raves all in favor audience, I was happy carries.

Please clear anything to clean up the cleaning here about to be in the rest of the happy to state in the city.

Uh C director of program management down construction.

We have the um uh yes the facilities and have the planet C O Lee C architecture.

John Oswidi and direct public privacy funds.

Wonderful.

Thank you all.

Who is I'm gonna kick us off?

Okay, great.

Tell you who's here and thank you.

I think we'll have to move back to it.

Um thanks for having us, everyone.

This is a stage two application, which we've come before you with stage two applications to arrive before.

So just as a reminder, um, in order for capital projects um done in schools to be eligible for your reimbursement for ride, it has to go through this process of being approved to be on an approved list of projects.

That's what the stage two does.

So this is our latest round of approved funding.

Um there are three kind of separate uh uh pieces that I would draw your attention to here, and then our team will go through the details.

So there um our list of capital projects that are primarily for schools that aren't in phase three and four, and you'll need other kinds of improvements through the capital revolving fund.

This allows us for that money to revolve back in the fund.

So that's the biggest group of projects that we've described.

There's additional funding for the Casarian school based on the new designs that we worked on, Councilwoman that provides the additional funding for that project.

The team can talk you through what that pays for, and then there's some money for Times Square, which we've not been before you um seeking funding for before, but this was through a partnership with Ride and PPSD.

This will allow them to uh seek reimbursement through Ride.

100% of that funding comes through the school and they'll manage that project, but it has to be in their home city's application.

So that's why you see it here and keep this here to speak to that.

Um so I'm gonna turn it over to Joe and PSD who can walk through the projects, and then obviously the financier team is here if you have questions about the funding.

I'm here, right?

Thank you very much.

Good evening, Matt Chair.

Good evening.

But did prepare a brief presentation.

Um certainly can ask you questions as we go through.

Um, so just refresh memory.

The objectives of the right stage two is to submit an application for housing aid reimbursement structure projects.

Up until now, we've been using the 2019 MOA as uh primary means of getting reimbursement for a doctorate volume fund.

Um none of the items that are in here are in the stage two, three, or four projects.

They're separate from those projects, uh, with the exception of classical and both, which are identified in here, but it's for separate project.

For example, a classical, uh, there's an area in the back of the building in the admin area that the windows weren't replaced, it's accept the project uh and funding uh storage for that as well.

Uh once approved, uh typical processes uh and submitted on September 15th.

Ride will review it, respond with some comments that we have to respond back as well.

Uh Ride will make a recommendation over to council elementary and secondary education.

Usually happens around uh late November, sometime in December for us in the new year.

Um that'll result in a memorandum agreement, mOA, which will list out the projects.

At that point, the building committees will have the opportunity to be hearing that with PPIC in the city, and I'm then basically able to determine what projects are critical for educational or just for maintenance.

That's both of them.

Um key components are as uh Courtney said previously, capital evolving program editions, supplemental um areas that was there in three page of existing gym renovation and time through academy and as 40.

So previously no capital funding in that for city.

So the second page is a snippet pretty much of what we submitted as part of the stage two.

And I think what's important to note is the highlighted area isn't is the possible information.

Uh 80 million dollars the projects are going to be in the stage two.

Um, and with the uh approval of the stage two in the MOA, that means the city is eligible up to 67 million three hundred thousand based on it.

So the city can full factory what they're doing for so next slide, there's the project uh vote for you point individually.

Funding again, very important note on the fourth page.

Um this is not seeking funding, this is reimbursement.

So understand that the five-year capital plan project will easily the city's council existing.

And that's the 2030, uh, the order of magnitude per the area and elementary school uh gym for innovation and site work with approximately 20 million district wide five-year capital proven plan about 50 million and about 10 million per year, and times two academy funding uh through the time budget possible.

So the Cazar Elementary School, you go to the first slide shows you um just the site planning.

The original 20 to 22 MOAs are the new caveric school did not uh include uh a new gym, uh that original plan we utilized the right center gym uh substance as discussion about using that existing gym and the license at the right center uh from community feedback.

So, in order to do that, we leave a separate uh way of getting reverse.

Sure, just a clarification of the funding uh that slide for the states we utilize the city council evolving fund for reimbursement.

I'm not aware of the city council.

So strike council.

Yes, sorry.

We've cited the book.

Thank you.

Sorry to interrupt you because we're not saying um so uh going back to Bazerian.

Um, in order to utilize that gym, we're also gonna need the fragmentational space and be connected to the new building.

So there's additional cost um including that as well as some existed sanitary, store mines, and utilities we have to work around.

We want to uh have a mechanism to get reimbursed for that work so that they'd be part of the executive in addition to uh capital fall.

So district-wide, even after stage uh after phase two, three, and four, there still is approximately 350 million dollars for additional weeks on the 1800 schools.

Uh it's broken out to about 175 million for the elementary, 80 million for the middle schools, about 95 million for uh high schools.

PPSD has been working on a five-year capital improvement plan over the last couple of years, uh, been fine-tuning it more and more of a year.

Um, and with a projection out, um, we worked with them, including Studio J to prepare this uh stage two.

We used a uh a number of 10 million dollars, even though our capital involved in fund is not 10 million dollars, um somewhere less than that.

Uh we just wanted to have the flexibility of uh having funds available in case some additional funds might come available or something happens to an emergency situation comes up.

There's a flexibility to be able to move funding around within that MLA.

Um, the way the breakdown is uh of the approximately uh 50 million dollars over here marking for the doctor volume again, the major needs, as we said before, with the elementary schools, which is about 25 million, approximately five million in middle schools and some other things in the high school.

So if you want to talk a little bit about the capital costs and what the actual number is like technique, uh that's available in this year 2026 our remote fund is cost of these three million dollars.

Um, is this established in this school year 2022 is the total governance in conjunction with DPSD.

The initial starting balance was $8.3 million, $5 million was invested by the district, and $3.3 million was invested by the city.

So year every year, we can use all those dollars and remaining balance at this point in time is 6.3 million available to use.

Um also in the capital plan just adopted by the city council.

There are two plans funded at this time deposits into that fund of $5 million each.

Um, the first right now is just a part of this clear 2027, and the second is clear to be 29.

So aligned very well with the current section.

Uh next slide talks about the project types.

Uh the focus is always on teaching and learning.

Staff all these resource management and engagement, but at the same time, we do know that we are met with emergencies uh situations with leaks water leads to all this kind of thing.

So uh there is an allocation so that there's a final source for all, or should say reimbursement source for all of uh the five-year capital improvement plan is based on a couple of the uh items that uh guess the city um and at the term as their bias needs, so there's critical infrastructure improvement that mechanical electrical quality each keep the buildings operational, life safety, everybody safe in the building, learning environment enhancement.

Uh you know that both we have to listed sometimes our building cells differently, but whenever the opportunity becomes available and can't plan fit for it, uh we've done uh individual projects about specialty classrooms.

Um we've added uh elementary school small passage to the uh pre-K in some buildings as well.

Uh, all things that is important to enhance the education as well, and also site environmental outgrades, pedestrian vehicles, um, and just making shape for good.

The next slide is a breakdown of uh based on PPSB's uh thoughts on what they need to be looking at for planning, and these include um all those categories we talked about um infrastructure improvements, um enhancement to education.

They are very specific dollar numbers because we did go through a very specific plan developed by PPSD and added cost of those.

Um I think it's important to note here is that the uh school building uh committee will make adjustments and we do this on an annual basis.

Um we should vote once a year on it, or we go through uh with BPSD City and with that the list of what we believe to be those um capital evolving projects.

Um if it's vetted out, looked at um and just uh in the past we've had time where we've had a plan, but then the plan had a change because some of them have to be wet.

So there is flexibility.

Um the key thing is that the dollars are allocated there, so if uh a bigger lead is at reservoir, you have the flexibility to ask for some adjustments um in that, and we can do the planning based on the capital evolving funding basis.

Um, and we'll pause for a second because we want to talk a little bit about the actual projects and how we came to it.

Um, thank you.

Again, I'm Kevin Dion from uh school system.

Um I uh I think I really want to stress uh at this list of these capital projects, the these buildings, uh the 17 schools uh total identified eight are elementary schools, two are middle schools, and seven are high schools.

Um within our group, our um our approach is uh we go through, we identify projects, uh, discuss them internally, and we work with uh Dallas construction rest of the district, city and uh COG identifying what those needs are.

Um I think it's incredibly important to remember that outside of all the construction cap done in the district uh for the schools that are currently in design, these schools still need upgrades and improvements as well.

So that is what our focus is here to make sure that we're moving forward and equally pull that across the district, spending the money as uh efficiently as possible.

But maybe it's important to know that these some of these repairs need to be done and need to be spent, and this provides you the opportunity to get reimbursed uh up to 91%.

Perfect.

Uh next slide, just talk a little about prepared and 3K exact number is 19 million nine 78500, supplementary funds and additional scope in phase uh three project.

Um, and then the last slide talks about time to the academy.

Uh we have 9.5 million um and two output funding for improvements to the school show for uh this page two will allow them to see things like as well.

Um, and as we see no uh below time two will be self-funded, no CRS, no city or EPSD funding in the way to be happening to be a um so our project will be so funny times here we have after we go from to the finance proposing building project.

This uh piggyback with the city's applications really just allow Close time.

How we uh this particular child school when we send out two simple previous applications, we still tell cities application.

The projects will be managed by Townsquared, self-finance and time period, and really the only reason that we at least say less time that's the that concludes our presentation.

Thank you very much.

Many members questions parts of the Mallaghts would be go right in a good.

Um good to see you again, Jeff.

Um, I have a few questions.

So the first thing on the second slide um for 67 approximately million at the 79.0 million are eligible.

Some of the projects we've seen are 91% eligible, like we can get reimbursed up to 91%, but it's only 84.7 percent of there aspects of the projects that aren't reimbursable up to that until now, and then why would it be that expensive?

So on average, uh the the base rate is around 8080.

It'll be 8.5.2.2 is basically, yes.

Yeah, and then we could have bonuses of uh 5% increments.

Um so we kind of average that number out.

Uh on some projects might get up to 91%, some will be closer to 8.5.

Um it's a matter of how we'll fund those potential bonuses have popped in.

And has it revolved?

So every year Bristol closes out of what we build out of the revolving fund, and that sets a new baseline for next year's project, depending on what percentage we get reimbursed, it just means there's more money for next year.

So if we if that number went up, it would just go into that fund, we apply to the next year's projects.

Okay.

Are there things we could have done off of that amount that was eligible because of their bonuses?

Yeah, I'm actually all right.

Sorry to ask you, but is the the bonuses sunset?

So is the percentage going to be more locked in and not have the opportunity to get it up today?

So yeah, so the start of the good news for us is a really good job for the bump from the projects to make sure that all those are getting numbers.

Yes, I remember that's already pushing billion dollars, and we're showing 900 million.

That's the heavy limiting is done with the stage two application, these with the exception of the zero to start, that will get the higher rates.

These are all starting after July 1, 2024.

So we have the five months.

Anything that is safety related, which is likely a lot of it, we'll get 84.7 percent of rates.

Uh, anything that doesn't qualify for school safety, you're then gonna get a 79.7 is the exact number for this this year.

So it is a blended rate.

Uh a big chunk of it, about 20 million, we'll get 91%.

Uh security ones will be 84.7, and then everything else will get a hair on the okay.

Thank you.

That extended as we got.

Thank you.

Um, so then I don't know what slide number it is because there are numbers, but the one that says district five and five and pickment plan 35.

Um on the following slides and talk a bit about uh the list of schools, but if I want to confirm so the 350 million, which is for me, those are both schools that otherwise weren't touched by our other found that we've done like George J.

West School and also and Nick and Bishop and additional like schools that are being touched, which is additional projects at the schools that can be included in the boss we've already discussed.

Yes, so that's that's correct.

So um that 350 million represents the remaining projects that are not in phase two, three, or four, with the exception of although classical people are identified, that's total work that's now part of the phase two or uh or three or four of the projects.

Um but that that's correct.

Um in 2022, we did a reassessment of the point, and that number was about a billion dollars, it's like 100 and something.

So you know, if even if you escalated that number, the needs at that time were a billion dollars, um, and about 700 million have been um you know identified in phase two, three four, which leaves that other three percent.

Okay.

And then um if we have about um six point three million in the revolving fund right now, thank you for still point numbers of that.

Um, how do we feel okay with an MOA of 10 million?

That's so much higher than the 6.3.

Well, the MOA could be adjusted.

You don't have to use all the the money, it's just it's reimbursement, it's not funding.

So if for some reason in one year there happens to be some additional funding comes in or some greater way of moving money, it just gives us the option.

Um, and that's why we just pick a 10 million dollar number because there's always more needs, yeah, yeah, um, then we have for funding, but it just gives us the flexibility to be able to move projects around if for some reason there's some other emergency which we know will happen in the next couple of years.

Um it's just more for reimbursement, I think not committing any funding or anything at all, or any of the projects right now.

Okay, and then since the need is so great, how will you?

I guess I the questions how will you make the decision across like all these schools that are listed in the pretty specific amounts?

Like given that it's like at most 10, but probably closer like six.

Like, how are you making the decision about which school is go first, like which projects are happening, like what is that decision we can have?

So I'll start in the best jump in.

So we've been working with PDSC over the last couple of years.

They have a five-year capital plan.

Um, every we need a couple times a month.

Um, but every couple months we say, okay, these are the projects we're moving forward with because they are the priority projects that we've been talking about playing.

Some of them may be a need for special deep class, some of them may need uh there's a part leaking that's happening to be uh resolved right away.

There's an ongoing list uh the PBSD prepared, and they would love to see that happen over the next five years.

Um, unfortunately, what we see is that sometimes a roof leak will take priority over something else.

Uh but again, we we work at least on a quarterly basis where we say here's the next five projects, um, and we're gonna move ahead with our fees or getting that work done.

Here's the next five.

Um, and that is just an ongoing discussion and it changes um constantly.

And then there's the list also coordinated, like the local principals, like principal Jackson made the bishop.

Is she like feeding in information about what that million?

I'm just using it as an example because that's like about any of the schools are the local principals like feeding in like these are our biggest needs, right?

How are you determined this?

What we're what we're attempting and going to be doing is providing uh the bucket of what the costs are that they done about that school, and we uh identify priority items that need to be done and then discuss those and great scope for those projects, um, getting school leaderships uh input, and that's gonna drive how we uh follow our path, if you will, um, because it has to be a partnership.

Yeah, I can't um say for the district that we have to do these way, but doesn't meet the need of the students and the school.

Yeah, so it has to be a partnership that has made agreement, and those decisions have to be prioritized um need of the of the students in the school that department.

So it's it's gonna be a constant mandation and a living document that's getting involved design that's better.

Um, you have that regular communication that you're yeah, we're going and we're gonna improve that as we go first and put new nod rails on the system to rarely document monologues, how we go from A to C on to buy.

Um Councilman Sanchez, uh I didn't see Bridge.

Well, how to extensive that's land.

Um, my question is um seems like the middle schools are getting pushed out.

Why so little on the middle schools?

Um there's only two listed here, and five million seems to be what you had for them allocated.

Um, just as rundown is all the other schools.

Um is there a reasoning for this?

Well, I think it goes back again to um what's been accomplished and what's been done and planned and designed as part of the previous basis, and what is planning to be done in phase four.

Ums that identified here, middle schools are targeted needs on you know what those infrastructure improvements might be within the school or if it's rude for exterior envelope creatives, things like that.

Um it's it's our best uh it's our best effort to identify what priorities have to be done and leveraging them across the district.

So it is um you know, obviously there's less middle schools than there are elementary schools and and the high schools, so that's the uh the trade-off, if you will.

Um, so really allocate the funds on the need.

Um, and we're we'll continue to evaluate and improve that between process as we go forward.

So we will, I'm sorry.

No, no, no.

No, I I was just wondering because it's sometimes I feel like we're trying to close down our middle schools, and I just want to make sure that this is not something that we're doing, you know.

Um I just wonder and I want to make sure that we are repairing them alone with everything else because I I noticed that was one of the things that came up when we had uh open meetings about trying to take over on those schools, and we don't want that to happen.

And I'll just respond to that.

So they're aggregating decisions around the schools.

Uh and obviously, you know, as we shared earlier, the sites that are here are sites that were on phase two, three, or four.

Um, and so we're getting ready to launch our phase four engagement.

Um we started that with our school report last week.

Uh we'll bring that to our school building next week, and we'll start some more public engagement over the one of October.

But no decisions that we've made yet.

Um, this list is simply those sites that were a part based board uh that we want to make sure we're also outlocated as well.

Okay, thank you.

Just to add, I mean if we look at the list, we see elementary elementary elementary, right?

So the majority of our elementary schools, the majority of the age of those are older, uh, there's less needs at even when we did our 2022 assessment that the needs of the middle school with the least amount, the elementary just the amount of uh was the highest and in the high school.

Okay, thank you.

What's that?

Thank you, chairwoman.

Uh, thank you, uh gentlemen for being here.

Um, my first question since since we're on this uh graph right here, um, I feel like we've been told this committee uh over and over that completing phase four uh would give the opportunity uh to every student in in PPSD to uh new or uh like the new building.

I feel like that phrase will uh quite some time.

Um so my question is if by the time we're done with phase four, every student in the city uh will have the option to go uh or continue going to a new or late new school.

Uh, where does that leave the rest of these schools um outside of central and classical?

Because I know those have been included um in up to phase four.

Um so yeah, my question is what what do we do with these buildings or or students uh at this point or at that point by the time we're done with phase four?

Because that's always been my kind of question and concern with all of this process.

So you know, obviously, we support uh giving our our students that opportunity, but if that opportunity is going to be presented by phase four, um, and one, two, three, four, five, six, seven, eight, nine, ten, eleven, twelve, thirteen, fourteen, fifteen schools um that currently have students in them are included in phases one through four.

Um, where does that leave us as a city?

I guess is like I think to answer the question goals, yes.

That's it, uh vision that every child will have the opportunity to school.

Part of this is twofold.

Number one, the revolving fund that is going to help us get there.

The approval we've been using the women's projects which from 2019 expires this year.

So either way, that this is a way to re-out some of that work.

This also provides flexibility.

I think we mentioned uh in some other council meetings, the enrollments.

We're gonna see if they actually convention per se minus three thousand each of them when that becomes or not, if it doesn't come to fruition, then obviously we need to move to phase five because there's students that are not accounted for who are here that we would have to move for if the data that is being divided by the profession comes true, then I think there's conversations to be had like do all these either if you're done three thousand students equivalent, we have six schools resulted.

Um the other value that we're just revolving funds.

If you do make a repair, let's say one of these is going to be claimed.

If you uh are funding with bond and you close it, the stage gossip is going to be computer problem.

If you fund it with revolving funds, you can make the repair while the school, you can make school space for the students funding if something would happen in the future.

You've already received your student, there's nothing else to come out.

Uh so again, there's like a this is still still finders out.

We mentioned the meeting last May that there's a natural office group phase five.

That isn't right, but if numbers trim down as it's inspected, then I think this conversation would be different from years now because we've got another 152%.

So I guess my question slash like confusion is um if by the time we're done with phase four every student in the city has uh an opportunity to go to a new or like new student.

Doesn't that account for the students that are in these schools already?

I I appreciate the question.

I think an important distinction is we shape it from uh 100% and more likely buildings, so 100% newer I think we seats, uh, which means that we would be able to have that number be the number of seats, not necessarily the building.

So I think there's a little nuance uh that I to clarify as well presentation.

Um, so just to kind of clarify that.

So by the time phase four is done, there will be new seats for there will be enough seats in those schools for every child in the city of Providence.

That's what we're aiming for.

Is that goal of 100% in the working seats?

There will be 18,000 new seats across the district.

There might be other seats available, and you may not have AT house in the students might have the season.

There will be a seat for every child.

Right.

All right, uh, I appreciate the uh responses.

Um, just for the record, I will um you know share my concerns that um that I've shared before before this committee is that we're gonna we're moving in the direction of uh creating a situation where um schools on this list are gonna be closed at some point.

Um, you know, with the enrollment declining and the the strong push assumed by all powers that be to expand uh charter school seats.

Um, you know, are the two main reasons for uh my thought process on this.

Uh, but like I said, I I do appreciate you guys uh you know being here and presenting on this.

Um my last question on this graph specifically uh are about central and classical.

Um how come this work wasn't included in previous uh phase uh approved projects?

Because what I why I asked that is I don't want to, you know, come back to table next year um and have schools that we have approved uh to be reconstructed or or be uh renovated completely.

Um, you know, asking for more improvements because certain work was included.

Um, I think it would make sense to try to get everything done.

You know, obviously there's going to be emergency repairs here and there, uh, but all the work done um as much as possible so we can focus on the next project.

Yeah, so uh I would speak to to that.

So the central uh was included in 2019 MOA, but as Margaret said, that uh MOA expires the end of this year.

So this provides us there was funding in there, there still is funding in there, but once that expires, we need the ability to get reimbursed.

So if we wanted to put some more money in for that, and on classical and hope specifically up to both of those, when we did the assessment in 2022, and then the stage uh two and three and four, um, there was an additional 20 million dollars allocated for classical and another 25 million, I think for hopefully.

But at that time, we also noted there's an additional 40 million dollars that over those schools still.

Um so there was um uh an understanding and a knowledge that there was further work that has to be done at those schools.

Um the class school specifically, we identified that the rear administration area, the back windows are failing there, that then needs to be a separate project because of 20 million that the conclusion stage four is to do the auditorium, the cafeteria, the kitchen that is in there, which has not been renovated at all.

Thank you.

Um, and I actually do have another question on the scratch if it's okay to your role.

Um say one of these schools um closes down.

Um, how what's the decision process on where to reallocate uh the funds?

So that that process was a couple times in that five, four five different amendments just for the 2019 MOA.

Um we sit down with the city and the district, determine where there's the need for potential reimbursement, right?

It's not a flying source, it's a reimbursement source.

Um there's discussions about what they think the priority projects are going to be, and we submit as a formal request uh to the ride asking if the dollars it's a thoughtful process that you look at what potentially the needs might be for a specific school.

Um there's no needs there, um, then that funding or catch up for reimbursement should be moved to school, they get reimbursed for doing not maintenance or some kind of educational.

So just to confirm that process is between you, Downs construction, PPSD, and the city of Providence.

Yeah, we I mean we but don't have a decision in it.

We are just facilitating the discussion about where uh where those funding sources should be over that reimbursement source should be open.

So it's PBSD that decides where that would go based on their needs.

I would think that the majority of it will be some information we'll get from PSD.

Yes.

Thank you.

Um I just have a clarifying question um on the first line of the first page, uh, where it says housing aid reimbursement for future construction projects.

So all the money that ride uh reimburses the city is in the form of housing aid reimbursement.

Yeah, so there's a variety of fund resources, but the main one is housing, which is which is reimbursed.

So we've received 100 million dollars in pay as we go funding from statewide bond.

That's what I'm funding, ride is provided in a series of grants, um facility equity, wellness, food trucks, which are paid on the hundreds and the vast majority of funding is school housing.

This takes two forms.

One is when you complete a project and say it's a hundred million dollar project and you get 90% reimbursement on every bond payment make over the next 20 years, we'll pay 90% HP.

That's the majority of it.

These projects, with the exception of the Kazerium, is all with within your revolving funding.

That's money at this time is just state money.

Initially, those $8 million that the district and the city put in, which you've got 91% of that from the history of state money that needs to continue that thought process.

So without even without those two five million dollar additional contributions, you should be able to do 30 million dollars of work with just the money that's in that fund.

Every year you complete the project, um, verify it's done, it can buy will send back the reimbursement rate, and then look at the next class of projects, and you can repeat uh that sign column number against the the key here for this, unlike other stage two is they're not seeking any money because money already exists in resolving funding.

It's merely getting approval to allow reimbursement to fit on the normal testing side.

Thank you.

Um, my last question is um so just to confirm, I know it's been stated uh by allowing times to academy.

Thank you, uh director for being here.

Uh there's no fiscal impact at all to the city, like this doesn't you know cap us from adding more work or anything of that nature.

That's correct.

So, unlike treatment first and others, there's a PSP.

I'm sorry, it's technically a PPSD school.

They haven't their building is 20 years old, so they haven't applied it in a long time.

The file process budget they apply a separately some small province money that we do pay two 200 patients when we just travel for one.

Their uh projects and the resources have like doesn't do not limit what you can get forwards.

It's just the way so the findings taxpayers run things in two applications, and then we can give you first centre.

So they're gonna manage the fundamentals on their own central funding, it's not hard to be revolved as part of their own budget.

It's just the way it's uh single application fees.

Um, can you you said there's uh what's the application fee?

It's the preparing the application.

So we have to hire an architect and do all that studies and you can draw it and stuff like that.

But it could be like depending on the district, it'll be millions, people need 100,000, which we'll get reimbursed.

It's a CPSC entity that two separate 500,000 occupations doesn't make sense when we want you still have the same up there.

Thank you.

Okay, councilman.

I just had a quick follow-up to council and sanction's first line questions.

Um I guess confirmation of what I'm hearing, and then also requests of like his point about and the clarification with the seats versus schools.

This is part of the like newer and fewer initiative from Ride, right?

Is Ride reimbursed like incentivizes PPSD to have newer and fewer schools?

It's like part of the process, right?

That that's a phrase with a lot, but just clarifying.

Some of that's there is a state law, which one of the bones is your argument, there's the new reviews.

Some of these are already underway the West Ryan President.

Um others that are hurry.

These are the ones that aren't part of the that natural mix that we are also like waiting and seeing moments again.

This change this is actually giving the city options.

If you need to, you're not losing anything.

It would be very painful to invest.

The bond funds in the building all of some things stop and for it.

So I guess this will really give you flexibility.

No, I love the options.

I guess the request is that if there are schools that are going that we start project, we might close that you don't wait.

I I sense that sometimes you wait until the last minute and then it's actually and we're like, what do we do with this little?

And so the request is that we all work together much earlier in the process than hasn't been what's happened before to like identify where those are and like work together and what those next steps are because it's not to hit us like super close to when the school's been closed.

I mean parents were upset and kids were upset and council people we didn't know and lots of folks.

It's just it's been a little more chaotic than I think it you should have been.

This is not like a prison.

I just like would love us to make it even better in the future.

Hopefully, we're not closing these schools.

These are great schools, George US, great school, maybe this should great school.

Like let's keep those.

Yeah, all these are great and I can list all of them, but um if there are changes, let's not wait five years and to start those conversations to be that fast.

I think my council might be open to my fellow cancel.

Jordan House, many members, many members, um then Peterson.

Thank you.

Uh thank you, Chairwoman.

I actually have a little bit similar to the questions that were asked by the committee, but um referring to the district-wide capital improvement plan, you have um a reimbursement projective for Isak Hopkins.

Um Isak Hopkins is currently housing Kennedy elementary.

And my understanding was that we were phasing out Isik Hopkins.

So I'm trying to understand if the reimbursement was for things that we were fixing up for Kennedy to be there, or if this is something that we're projecting over the next five years, and we're not technically going to be phasing out PSA Hopkins.

So those costs that are included in there are for natural maintenance for uh it would be great to utilize that for a swing space in the phase four buyers, for example, right?

So it's working, you'd be working well for RFK.

If that space does get used for a swing space, we would like to have the ability to have a reimbursement source.

So if work does get done there, you can get reimbursed for it.

Um support thing right now.

That work that we're that we have done there came out of the RFK uh function for the four that will revolve our okay.

So that's that's the reason that that uh those dollars are out here.

We do have to maintain the building for the next five years anyway.

Okay.

That's what I need to know.

Thank you.

Thank you.

Um just overall starting off with the uh resolution.

I noticed that the same resolution is passed at the 2020.

Is that uh standard for the languages to address the um this process?

So every community has this standard for the balance.

I don't know how far enough you can use the cell, every community has different things that they have, but from stage two across the board, you knew one of the criteria is you know downgrounds, we don't and that looks differently community.

So it's the same one.

There's no point of changing in the language, but just um yeah, this is this is consistent with the previous one that we had to say that well with no specifics and all the panel as far as just getting a console resolution uh based on the assumption and the goals of meeting the needs of the local schools, state and and the funding.

That's what the state two documents real quick is those those projects because I just wanted to clarify the clarification because I I noticed the same same resolution that's going on.

So um as I listen to some of the presentation, I just wanted to go back to one specific, and again, I say these things at times we look at overall, but I also look at the school, particularly the areas that I represent, right?

Um this one being uh one of them Feinstein Elementary School, Sacketry.

Um we can retard it, and they'll all these schools need need uh some work.

Um there's there's a roof leak there and so forth, and needs a roof.

Is this part of that phase, or is that is it already in that process?

I think that's the majority of that work that we've identified at PBSD keeps uh report of leaks, yeah, potential issues.

So there's that scope of work is a good thing, and it's there and this obviously priority.

I'm sorry, and it's obviously priority to correct those situations.

And when you say priority within what uh months or when when it raises to to that level of um, I think realistically, it's it's uh structural life safety issue, so it should be addressed as quickly as possible.

It's securing the funding, scoping off the project exactly how much the roof needs to be repaired, white needs repaired, and then doing that work in the summer months while students out there.

There's um you know, as you can imagine, it's very uh disruptive.

Yeah, working on the roof.

So it's identifying the problem, clearly uh uh planning what the problem will be the resolution will be and then done.

So is that uh the summer ideally, yes.

Um, and uh how we get there, whether it'll use October movement several into that share to start working on the process.

So you're saying uh 2026 summer is closed and if I um if I'm not following the term, that's yeah, this this MOA would be active at the July.

And our our capital volume fund that we had uh identify anything else will be July 1st, 27.

So yeah, you could prepare and get everything ready to start in the summer of 26.

Um you reference um Hope High School needing additional work of about 40 million dollars in in the initial stages of these things.

Does down or assess the whole school uh of their needs or just particular identity uh when you identify a specific area to renovate?

Uh was uh an assessment done in the entire school that we knew already that whole high school needed another 40 million.

Does it need and then the other question is does it need another X amount of ballots in other areas?

Or what is the total need for like for example on the whole high school?

So going back to 2017, uh state did an assessment of all schools, the 2017 Jacobs report.

That point they did identify the needs for high school, for example, was pretty significant.

Um 2019 there was an MOA that had certain amount of money that was allocated for high school that's been over the last couple of years today.

As we've gone through and done other stage twos in 2022, 2023, 2024, and now again 25.

We continue to identify those schools that have more needs.

Um that need has been known since 2017.

Um, but you also have the problem like uh, like I said, we had identified 2022 a billion dollars worth of work piece of time.

Um we need we need to be able to fund that billion dollars in order to submit that MOA, what the financial plan is for it.

And that's kind of how problems have been doing in the piecemeal for 2019, 2022, 2023, 2024, up to 700 million dollars.

No other district uh in the state is doing it, no fishery couldn't even guys do it here.

Um but that need has been known for a long time, and it just becomes what projects we do, what are the higher priorities, and how much money you would have to be able to find.

Is yes, focus would be more money even after it's the next and you just stated over there.

Will be another phase that will probably be needed there tell me two.

Um thank you.

And uh currently, what is the uh balance of the revolving fund?

It's not even 328, 675,000.

And uh thank you.

Um lastly uh one of the challenges that I faced or we faced over here is uh uh at least uh the notion of having more transparency around uh disclosing um information and so forth.

I know that uh more so the other buildings committee, uh the decision process in a sense we go through can you just explain that again in terms of how those decisions are made and where the the documents uh writ uh reside where we as city council or the general public can see them if they were able to um make an analysis or are they available?

face though we face over the end so uh at least uh the notion of having more transparency along uh disclosing um information and so forth i know that uh that's more so the other buildings committee uh the decision process in the sense of what we go through can you just explain that again in terms of how those decisions are made and where the the documents you know uh we're uh decide where we as city council or the general public can see them if they were able to um make an analysis or are they available yeah that uh the building committee is the right place to go that the bill committee reviews for stage two application which is this for example these projects right so um once we get approved by right and get that away and sometimes i mean 0.26 on to the building committee based on the s and requests for what they see priority project that will be the reviewed and voted on at the uh school building three meeting um and that point we'll develop a plan on implementing that during the contractors so that's the process really starts with um understanding what the needs are educational or in some cases the building is it's got a we can approve and then that possible goes with the building committee or maybe back to the city for and the details of counselor please we've got a big agenda here then wrap your questions up thank you and just the um uh well housing with the the details of the documents uh is there is uh designated place or just uh um with every building committee anything that's protected there is posted online um and i think that there's a rolling for an email that does go to everybody because we put that agenda it's a book but even because without that you go to state website um and be able to access what that counselman i'm gonna actually ask um i'm also that person file ron open brief you on uh the building committee information that we'll see i'm also okay anyone else okay yes please what is going to happen when we get the school to buy this face phase one face two phase three post and what quite answer that question so i don't actually think this will change currently the government bodies for this are the school building committee the city um and e ds td so this is an example of where despite the relationship um the district and the city have had to continue to work together because housing aid has continued to come to the city um so i wouldn't expect it to change in the instance that uh just move this oh thank you very much madam war did you have any uh thing to add any questions and concerns no i have okay with that do i have a motion make a motion approve number one motion made by councilman to second by councilwoman and all in favor aye any opposed eyes have it motion fashion passes thank you very much thank you all okay now please read item two random friends author asking the adding to issue bonds with the purposes at the last of the city for building I see yeah sorry we can talk about yes okay um please come forward whoever is presenting on items two can clerk please go to me with that so you don't have a little bit yeah I've seen uh you know that knows you not have a lot of financial city block are there any um exhibits of chair to stay the last two items um I'm gonna continue them based on the time I think so if you don't need them um thank goodness matter they can delete thank you thank you uh okay passing documents one is a no um and one is a PowerPoint presentation okay thank you thank you the cook okay so yeah oh I know

Documents, one is a memo, um, and one is a PowerPoint presentation.

Okay, thank you.

Thank you.

Okay, yeah.

Oh, I know.

Okay.

Umbers, I believe you have item exhibits two A and two B.

Let's call two A the memo on dated September 23rd uh reason property acquisition bonding background.

And then on I'm gonna on call 2B on how title finance committee hearing 923-2025 management motions.

We set these exhibits.

Okay.

Okay, circulate that.

Let's get these two in.

Motion to enter 2A and 2B.

Second name by Taylor, second by Sanchez.

All in favor, I noticed I have it.

Motion carries, it passes.

We have participated A and B.

Okay, may I have a motion to uh poll on this memorandum from Hilltop Securities to Orange and C Financial Officer dated September 17th.

We'll call it 2C.

Motion A by the Council Will the Grade, second by Councilman Taylor, favor I, any opposed, eyes have okay.

We have two A B and C.

Okay, you're all so I'm gonna walk us through the PowerPoint.

Everything in the PowerPoint is contained in the memo.

There's just a little more detail in the memo.

Um it will be a good reference document as we take questions, but I'm gonna use the PowerPoint to provide a high level overview.

Sarah is gonna provide a little bit more detail on the impact of the budget this transaction to the budget, and Larry's here as always to talk about the bond and answer questions about either the future impact of the city's fiscal stand.

Okay, so before you tonight is a resolution supporting a bonds that would be issued through the PPBA for 25 million dollars.

The purpose of that bond is to acquire two properties, one uh 444 Westminster, also known as the Dorley Building.

Uh, the other is 475 Valley Street, also known as Water Fire Heart Center.

And so the bond is split 18.5 million for 444 Westminster, 3.75 million for 475 Valley Street, and then the balance goes to closing and borrowing costs, and also will allow for a set aside some capital emergence uh not for Westminster.

Um so moving into the PowerPoint, I just gave a little bit of an overview of the why and the impact of both of them.

So for background on 444 Westminster, that was a property that was leased um starting in 2011.

Um as you all know, is for many of our city operations.

The term of that lease expires in 2036 and would likely need to be renewed as the city's, you know, our operations are settled in there.

Moving from that building would be an expensive and um potentially over as undertaken.

Um the annual lease cost there is about a million and a half dollars.

Um, and it escalates at either the CPI or three percent of you.

Uh going through the history of this, Sarah noted that there have been years where the escalation has been as high as eight percent because the CPI was that um it's never less than three percent.

Um that cost includes uh some custodial services that are outsourced, um, but does not include building repairs and they so we recently replaced all the lighting with energy efficient lighting, the city had to pay for that.

We installed the server room to better um maintain our computer network equipment, the city paid for that.

Um so over the course of the lease we paid 14.7 million dollars in rent.

And if we were just hanging planning out the end of this lease to 2036, we would spend about 18 and a half million, although that 19 and a half million assumes that the escalation is only three percent a year.

And it also prompt mats, right?

It's 4% and then 5%, and we carry that review on limits.

So the minimum we would pay to move to the end of this lease is 18 and a half million.

What we're proposing tonight is a purchase of that building for 18 and a half million.

Um, obviously at the end of the term, the city was on the building.

Um, I'll also note there's no right to termination or to purchase this building in the lease.

Um, so our choices are really to purchase the building or to um move to the end of the lease of 2036, spending 18 and a half million at least in one case, 18 and a half million for certainty.

Um some additional benefits about why I am personally excited about this and why I can get to the fiscal operations and for the city's financial health.

First of all, the purchase building will move the cost of the building into our debt service line, which you all are used to seeing as a relatively flat line.

You've heard Larry's uh eloquent lesson about how we always kind of maintain our debt service the same as a way to make improvements in the city.

So this would take the least cost out of individual city departments paid by general revenue and move it into debt service.

So that general revenue is now saved in the budget.

If we were trying to close a gap, it would come out.

Maybe it allows us to make other investments in those departments.

Um I talked about how the bond payments are equal or less than the rent payment.

So if we look out over the course of the 20-year bond, assuming we stayed in the building for that period, the savings to the city for that 20-year period is seven and a half.

Um, it also allows us to make some more strategic investments in the building.

Um if you've spent any time in that building, you know it has not been properly organized, I'll say it.

It is spread out and sprawling.

Um, there are file cabinets everywhere.

We could certainly better use that building, and our goal is to move departments that have pain points in city hall near that building because we would be able to better reorganize it and use it more efficiently.

Um, we have some real pain for departments here, archives, people and culture, other folks that aren't well served by this building.

No decisions are made have been made there because we're waiting to be able to do this.

But part of what we would do is be able to make actual investments, like in that building, there's still like the blue cross logo in some of the places.

So we just really haven't spent that much money.

Um, we would be able to fix that.

Um, obviously energy efficiency improvements, uh, investments to help make the building carbon neutral would be you know much more feasible as we own the building and we're gonna want to spend money on it.

Um, and then just general repairs.

Like any money that you know, anyone who's rented has sometimes felt the spent money.

You're putting money into something and then you're walking away from it, and the landlord benefits from whatever he did depending on your arrangement.

In this case, it's all the city money going into improvements in that building.

So going forward at a minimum when we would make improvements, we would benefit from that.

And then the last thing I'll say is, you know, it is important for the city to stay downtown.

We are, you know, in a time when we're trying to attract business downtown.

We want people working in the city.

We want to maintain our city operation down.

In particular, that location, you all also know that we've authorize some improvements to Cathedral Square.

And so we're going to have the opportunity to be improving that building for our employees, improving it for the residents and customers that are served there, and improving the outdoor space.

Like I think it's a could be a once in a generation value.

Um, would you like me to just go through the next one and then take all the questions?

So as I mentioned, the second property that we're considering is 3.75 for the Waterfire Arts Center.

Um, this is really out of recognition of our commitment to Whattify.

Um, obviously, some of our colleagues from Waterfire are here tonight.

We all we have talked about this in our budget process before.

Um, we believe that uh a strong financially healthy water fire that is important to the city.

Um, and we're looking for something more strategic to do with them to help them get to a place of financial health.

We are used to every year the tasks coming forward and everybody's shaking the couch cushions.

We don't believe that that's the state that we want that organization to be in.

And so their leadership team came forward to the city with a proposal to contemplate the city purchasing the building and leasing it back to water.

So that's what we're doing here in the circumstance.

Waterfire will pay all their operating costs.

We will carry the debt service, which is about $336,000 a year again in our debt service line, which where we have capacity to do so.

Um and water fire will manage the building and its operations, um, but it will provide it with some capital to help it get into a more stable place so that we don't uh have to worry about its feature as okay.

Sarah, would you just add any other comments on the budget that I have a number?

Yeah, if I could ask everyone on the key popping memo, we turned it to speak at the bottom of them takes two.

There's a spreadsheet that laid out acquisition costs versus the rental cost uh through 2046.

When I um tax it for 2026, I think it's the base of the base rent of three percent.

Um in 2020, fiscal plan CPI was 8.52 percent.

So that was the much the rent increase to that year.

That was a 10,000 a month uh increase to our rental payment, just in that year.

Um in festival 24, it was 3.18, not much greater than 3%.

Um, but then in fiscal 25 and 26 CPI was less than 3%, but we were helped to that 3% and so today.

So that uh 3%.

Um in addition to the space rental costs, this increase the monthly management fee.

Um, and that is around $72,000 a year.

Um, we also pay for all of the maintenance and utilities on this building.

Um, and just for some examples, in this in July, our monthly maintenance fee was six thousand uh five hundred and ninety dollars, and of that five of that bill for 535 was a 10% service charge charged to us.

So we pay for all of the maintenance.

There's paper towels for the paper purchase when there's pest control or whatever other monthly service that is provided by um 444 methods and partners, they charge us for that, and they are just the 10% service we can provide that service.

So there's um other than the rent that is in the rent line, there's also money in the public property budget to uh account for those expenses.

Um notice that invest 26.

We will be paying potentially a half a million dollars in acquisition costs.

It would be uh it's just only payment off of bond um and a half a year of rent.

Um that is a bit of a we've got 1.5 million budgeted on this full year and 26 rent, so it's less than that, and we both have a whole year of pay as to be a management fees.

Um, and then going forward, you'll see the acquisitional cost is less than our base, just our base rents um for the next couple of years, and then we have a few years where we are like 100,000, 140,000 over that uh rental cost, but not considering uh the potential that those grants could have increased more, or you know, that we're paying these monthly payments to management fees in addition to these costs.

Um additionally, we have some money budgeted if it doesn't apply six as a placeholder for debt service to keep that service uh level, and so that payment on the first year cost would be uh picked up by that placeholder that is okay.

Great chair understanding by the council.

Uh so before you with memorandum that is prepared by build top security, which is the city's other side fiscal even it's a pricing aid total 25 million dollar bond issue, price still 20 year period two series uh series 2025, which is the account of floor court four and series B, which is the additional full 75 dollars.

But uh, as is the case in most bond issues that the city participates in.

It appears that we won't be elegant for bond premium, which is probably running at about 1,460,000 and a manager.

It's a wonderful thing that they're keen on that.

Yes, it is a wonderful thing.

It truly assists in many areas beyond the closing bond.

I should walk you through that in a moment.

I think our city should probably have last several years, and the market, as I've seen the market is strong for practicing bonds over the so at that point, we would generate most of the five bonds.

That will assist us and other force associated beyond the bond.

We would take in the post for 26 million four sixty and the total post seat.

We see that the first two bonds allocated by the bond issue, that's important.

You know, that there's a reason why any funds that are currently contemplated to be used for project reserve for improvements are strictly allocated to the 444 property, if you will, as a reserve in case there's a need for some sort of improvement.

But follow that along, it appears that the acquisition costs will be 18 million five hundred dollars for the 445.

Can we pay for uh the space finally?

Um 18 18.5 million is the acquisition cost associated assigned to the bully building.

3,700 is the assigned cost for water fire, and we expect that there will be a reserve approximately 932,000, could be a little higher.

That reserve will be completely affiliated with 444 in the event that we have an independent need or need in the near future to do some subject property improvements.

It'll be already provided for reset aside as a reserve.

Following that, we do believe that um uh there may be the need for a debt service fund.

Now, that service fund is generally required in all bond issues, but the city through its outside fiscal advisor needs diligence and its credit worthiness, always seeks to buy a bond shuri bond.

If that's the case, we need to be fortunate to be boost our debt service reserve by about a million eight.

If that happens, we will use that savings to cover the next year's interest only payment, and we'll put an additional fund aside in research.

So here's that would be in good favor.

We can save there, we might save about a million eight if we can get bond share and insurance.

I think we might be able to do that past practice as proven that we were qualified to do so.

But in addition to that, there will be what's known as capitalized interest that will cover at least the first six months in 2026, which has been set aside and is included in our debt service budget.

That will come with the interest payment that will be necessary from the date of clause until the end of the fiscal year is the very end point of uh we expect to see interest only payments for the next two years, thereby lower the bond costs, and then that'll be a blended rate over the remaining 18 years of the bond.

In addition to that, of course the issues, which includes fundamental rights discount to the service of providing replacement bonds, legal fees, and any other costs associated with the transaction have been uh estimated at 500,000 and then it's split accordingly by course of issues, it's 375 allocated to the two projects and 125,000 for underwriting discount.

In addition to that, there may be some small additional funds.

Having said that, uh, Madam Chairman committee, there's our anticipation to close by October 31st.

We are replaced to do so, um, working with our outside law firm and advisors uh following this meeting this evening.

If we are uh fortunate to receive your consideration of the committee, expect that this manual local for the council is next meeting on October 2nd, and we're single passage of October 2nd.

You got all of the schedule to return back to the public with this authority in hand, this transaction already structured and then ready to be priced.

Public building authority will be must be to go forward, and then the underwriter will be to engage to move forward and identifying bond buyers and placement.

Uh, on that note, we have already submitted the information to the outside fiscal agent.

They can RFP for underwriting services for certain things last week.

Those underwriting proposals got moved back tomorrow to the outside fiscal agent post, then we'll record them and circulate them to all the principal bodies of the transaction, including those associated with city finance, city administration, city internal law that the sea, the list of return firms we had responded.

While over the next several days, that's two or three days.

I think it was the highest return on our bond issue.

With that said, the statistics as they appear on the left hand on the right hand side of the bond just generally showed statistics.

When this was priced, they were using an all-in cost, which is not the same as interest and all important of 27%.

The numbers that this similarity that was forkens uh compared to this evening was priced a little bit lower.

We expected that's from the market will do, notwithstanding federal reserve action.

I was actually quite clear this evening.

That does not show up a really municipal bond market, but maybe all the time in the city's other bonds, if you will, might see some difference, but not in the studio technology.

Many members council one.

Why are we entertaining this building that's worth seven million?

You asked me that question.

We're talking about paying 18.whatever million dollars on a building.

That's estimated to cost seven million dollars.

Well, right now the building was assessed at that.

That's an assessment that doesn't mean it's well in the city's outside of praise it at a level 105 million.

Still less than look and then if I may not as far as part of all our current lease has no provision for us to have the option to purchase it.

So this is a transaction that I would consider the business decision between a willing seller and a willing buyer, and because this willing buyer has an immediate need to preserve that skills, but most likely you'll stay in that space, if nothing else until the very end of this lease for no provision to rate the lease, and then the room of cost can relocate to a lot of property quite similar in kind in the city.

While we may think they do exist, I don't know if there will be enough for floor planning and space planning as the city attends it too.

So in that regard, overall we see a savings of 7.5 million, plus the ability to gain equity unit ownership and wild financing specifically traveling.

This sounds good.

Well, we you know we just raise taxes on our people, and then we tell them now we want to get a bond, which is gonna go back onto the we have buildings that are sitting empty and falling apart that we owe and we're not doing anything with you telling what we mean.

I'm I'm talking about we own properties that throughout the city.

Can you tell me specifically about Brian?

Yeah, you're trying to tell me we don't own properties that that are something sitting empty.

Councilman, she asked you no, I no, no, no, no, no, no.

Are you no?

Are you telling me that we don't own any property?

So that's a setting in her that we're not doing anything with schools.

We are we are actively working to move naked properties to the market warehousing and other things.

There are non-vacan properties that are we don't have plans to do anything.

Plans that plans and one thing, and doing and fitting there is a whole yeah, the number of basic properties for the city property commission that I think council.

There are not properties that could be invested in for the purpose of this operation available to the city again.

I don't want to be argumentative because that's my that's not by side.

No, I just want to clear.

I well, I'm I'm I'm gonna clarify again.

I have a really big problem with us trying to engage in in bond issues and all these other things after we sit here and just finish telling people we have to raise your taxes, and then we say, Oh, well, we have now we're gonna enter into a bond thing.

Not just one thing, I'm looking at two different bond issues on this table.

And these are things that we shouldn't be trying to do.

I I think we're asking too much for the people from our people.

I really do.

Go ahead, Sarah.

I'm sorry.

That's um, I just want to make sure that moving this payment from a rental payment to a bond payment does not increase the city's funding.

Okay, it's a savings to the budget, a minimum of 7.5 million for the parcel of that fund, but we're also saving an extra 250,000 dollars in that infant fee than maintenance means that our landwork right now.

Okay, this is no way increases facilities operated by well.

Well, that makes me feel a lot better.

It definitely does, you know, because I don't I don't want to go to my meeting tomorrow and have everybody screaming and hollering at me.

I'm gonna be truthful with you.

And I hope somebody can talk to my meeting tomorrow and explain it to me just the way you explained it to me to them, just where you explain it to me because I know there's gonna be someone there that's gonna be doing that.

So you put something in writing and send that.

Yeah, thank you.

Okay, that would be hopeful, I think.

Okay.

Did you want to follow?

Yeah, yes.

In addition to what's right, the severity shift.

We recently adopted 2026 budget already has made a provision for the necessary debt service to incorporate not only this problem, but there's some other matters that are paid for a dollar or trash concert as well.

That has already been accommodated in the 2026 budget that fits within the budgetary capacity of that service.

So the addition directly, I'm not just a very good point or substituting the basically is the renting for all those graphical local.

Thank you very much.

Great clarification.

Councilman Sanchez.

No, I'm done.

Uh thank you, Chairman.

Um, my first question is um our current rental payments at World of Court Westminster from your guys'.

I know you guys are a bunch of intelligent folks.

Um are they above uh average commercial rental payments in the city province right now or below?

What would your guys' just initial assessment of this city class save on the government?

So I would say that it's it is approaching what would be rate given that this is a respect sign back and develop and the cost escalator has been done so that we can just keep up with operators.

So I asked that um because I think it's important to acknowledge some of my colleagues' concerns.

Um, we have read a couple of news articles recently, and I think the optics of this purchase definitely are not in um all of our our favors.

Uh, but when you look at the current lease, um, and what we would be paying to what we are going to be paying to purchase, I think the math makes sense.

Um, but it makes sense, and in my opinion, on a for lack of better words, a really happy lease.

Um, and just to put that out on record, I think it's important to acknowledge that with our constituents when we're speaking to them directly, that the city, in my opinion, at least has his hands tied to a really crappy lease.

Uh so we're gonna you know do this move uh to get out of that copy lease and then own the property.

Um not really a question, I think it's just uh an acknowledgement that I haven't really seen from any city uh visuals up to this point.

Uh that's important to you know communicate that with our uh neighbors.

Um just to uh just to confirm, you know, we're talking about moving uh funds from uh payments and and rental to that's what to debt service.

That's good.

So by doing that, um, that's where we're saving money still perspective that service line most of the time that are many changes to the debt service line both on it now as bond issued book tour off the city's books, it gives new capacity to borrow choose to borrow them both do nothing and save themselves.

So in the debt service line, there is that flexibility for it if it's a rental payment to do each other, or it has to be appropriate every year.

So you always hear Larry talking about debt capacity in our budget, the team manages our debt capacity, which is how we determine oh, we can go out for capital improvements because we want to keep it about the same, allowing us to continue to make investments so that we all fall behind on things and have buildings and disrepair chair point.

Um, but taking it out of general revenue, it is a big impact.

Like you all felt this when we spread to the budget this year for every single penny for this rent, you know.

Part of why we came to this is this rent became like one of the biggest things that we'll just had no opportunity to cut, and it was painful to have other things knowing that we didn't have a chance to do this, and that's why I will bring it for you to thank you.

Um can I continue?

Um how does this impact our bond capacity for the next couple of years?

Do we still have um room for uh another CIP?

Yeah, but you'll recall that in the CIP this year there was a line for 20 million for property acquisition.

So you've really already accounted for it.

This is five million more, so we'll have to make those adjustments when the CIP comes back to you, but it's not uh significant.

So we saw how the how your projects when we come back to the budget, you'll see this in there, but we purposely taped it in there to make sure that we were accounting for this as we were thinking about all the other funds.

Thank you.

Um and really my last question is um, we could just kind of explain a little bit more of how we came to the 3.75 uh million dollar figure for the 475 Valley Street property.

Well, did we have someone uh do uh uh assessment on behalf of the city of that property?

Uh we did and water fire did the water fire assessment was 3.75, so that's what we have brought.

That's what they had brought forward as part of this proposal.

Our own assessment um came in much higher in the six million dollar range.

Um so we did that assessment to ensure that we were not overpaying and it wasn't an internal assessment for where that was announced outside appraisal.

Sorry, yeah, okay, thank you.

Council, do you mind if I have a couple?

Go right in and thank you.

Um, thank you for the presentation.

I have a key question.

Um, as usual.

Um first I just wanted to follow up on the council and raises question.

So it sounded like our appraisal was our outside appraisal with 11 million, but the purchase of 18.5.

Does the does the property owner have an other interested parties?

Like, why is there not more than a meeting in the middle?

Like it seems like the kind of building that like we're already in.

It would be painful for us to move, but it would probably also be painful for them to sell it to anyone else who's not us.

Like did we have that house to tell me?

Yeah, we don't have a legal way to not pay that through 2050 cents.

They also have an appraisal that is in the 23 million dollar range, which considers the value of our lease because uh we didn't know, but also because we are a long-term leaseholders of properties tax exempt.

So if you think about if they were to sell the building with us as a leaseholder guaranteed, they're saying to the market, who wants this building that is guaranteed to be properly exempt that is guaranteed to pay at least 15 and a half million dollars and probably more in the future because they're likely not leading.

It is the seller's appraisal took that into account and our appraisal didn't take that account.

It was a different effort, but it was it was different there if you want to uh the city's appraisal PRA uh took into consideration you know, market rate uh conditioning out of the league sellers point out that because the current ten wasn't relevant, I think we'll be uh at least that and local clause that market rate rent would continue and it would have additional value or something that's available.

Please go um I guess to the um memo from or two you cheat my teeny.

Um I think this is a question with might be a question for the like the civilian.

Um can you help us me do the math here?

So if the bill we're buying it three point, so just for the um uh for either actually.

So if we're buying uh the series 2025 at 18.5 or amount is 20.95.

Um at the bottom it all even sat, but where are we seeing the like where's the one point roughly 1.5 million difference showing up in the NASA?

Do you understand my question?

Like I understand through it again.

So on the premise of the writing expenses that were common to both uh these mighty of two transactions, typical non issue for the acquisition of four on the post one or five operations held by a 501c3 separate and a separate issues, although it'll be one other right, which they would do.

So when you allocate the price, it comes up to approximately 83 percent to 17 percent is the is the common denomination between two problems, and then all of the expenses that are common will be split in that direction, weight and three seven three, except for the amount that was intended to be a capital reserve for future input or imminent funds, only associated with the full volume property.

So, 75.

So we follow those two first two ballot, they are set up to show you that for example power month means that's the purchase price, power lock.

That's how we're gonna do it right signing it.

Premium is the bond free that we booked average, so that's an existence resources, and then the real the cost flow from there.

I do think that when you see that they split between an 837 split on the common algorithm, cost of issuance, debt service reserve on the right discount.

Yeah, the only other cost that's um direct to the 444 transactions the capital clicking because we can council in the annual credit and the debt service reserve money of the two point two million one thirty two seven is anything that that's our money that'll pay our final debt service.

We might have that that's not like an expense that we're paying us something outside money that'd be the reserve.

As I gave testimony to the chair, if we're fortunate enough to secure a bond insurance, surely one, which is common in the model, but not all bond borrowers can get that.

We have to leave credited so the speakers that there is an opportunity to load that reserve, even that the cost additional that surety bond would have that saves there, the million hundred fifty thousand, which we will for the next year's interest-only payment saving the budget once again, and maybe a small piece we need for additional capital reserve if there's a default because it approves at like 12.4 problems.

got to be the reserve as I gave testimony to the chair if we're fortunate enough to secure a bond insurance surely one which is common in the market but not all bond borrowers can get that we have to need credit it so the stickers that there is an opportunity to load that reserve even at the cost additional that surety bond with a net savings there the million hundred fifty thousand which will hold for the next year's interest only payment saving the budget once again and maybe a small piece we made for additional capital reserve if there's a default repairs and force at the 4.4 property so overall transactions that structural fund and do we know that we'll qualify for the surety bond you just mentioned or then we're no insurance from our side fiscal drivers the last two bond issue that we did last summer in 41 that was compounded like this is a CIP certainly right bond we can buy sure results that's we can and then more on this page the um all in cost at 4.71 percent are we locked in at this rate over like this this is this was priced last week based on market condition last week we won't price until like one week by the poll and it's all based on market conditions so certain things trigger certain conditions when they use the word all in cost we really mean all in cost associated not just the interest but the cost associated clauses trade actions but the better number is TIC total if it's cost that's based on pricing and bottom thing and then payment the low normal benefits transaction disposed but I would buff that it would be no great on that it may be a price of somewhere maybe quite below just significant savings with the and for the sorry for my acknowledgment but for the TIC percentage the state consistent over the life of the the bond of the Space case which you want for that um I think I appreciate it.

You mentioned this Chief Hawkins but can you talk a little bit more once we buy a building it is then um needs to be confined with our carbon neutral ordinance so have we budgeted for that um we have not I think we'll have to assess that building I think there's actually probably not an opportunity that would be contemplated and this we haven't owned it before first things but that will um we'll be excited to be bringing your proposal for a revolving fund of reinvestments and that would be the kind of also the money Larry talked about like capital improvements to the building could also be spent on that it would buy something that is like technically gonna provide a savings that maybe want to have things that we do which two more questions one is and this is the full up the water and you said that I love all the fire does it all the time advertise friends and loved ones but the question I have is um if we do this are we still giving it to your allocation in the budget to water fire can we often give like a budget our intention to include that in the budget level of the four council and we should have the chairwoman and I discuss the lease will come back to this council hopefully it will be a journey structure second um at that meeting we're gonna ask water fire for a little presentation about their finances some of the turnaround efforts what this funding's going to do and you'll have a chance to understand more why they will be because it's going to help them and so you'll have a you know hopefully that'll leave you wanting to continue to make those investments because we certainly don't want to make an investment there and then take one away so that they're not kind of yeah I wasn't intimidating that I thought we shouldn't it was just like transparency or that idea and then my last question I guess is so this is these are complicated numbers I think my colleagues and I are smart people but these require us to like really dig in but I guess I'm wondering we this came up when we're doing this K that the 20 million could be used for the 444 building yes why didn't we get any of these memos or anything ahead of time it would have been nice to see these folded locked in and quickly just read it as you were talking but um some of this would be nice on the bond price normally I'm not done unless there's a serious intent to move forward and price has been established if we will and then the technical cost to cook if then enable something that may not be adopted to the July budget the transaction that we're already soon October we'll probably have skewed those numbers so while we had an idea in our mind and that schedule to bring that complete transaction forward as I'm presenting this evening wasn't called the fund I appreciate that Chief okay committee number two yes if down the road we sell A subsets for like something and we sell on multi station that's two we can think of that where there may be but uh when that happens where does that money go would it go back into bonds where there's a it's not a general unread anyway it's a separate fund that all any sale state property goes into the separate fund and it can only be used for like capital repairs or tax there's that could be used if we want to make carbon neutral we can lose that money towards that the sale of property was into capital asset reserve fund and then only by council resolution can you have that dispersed for those clauses that are further capital improvements the property acquisition for the extinguishment of that sort of yeah and in some cases where we can we're transferring properties to the for sale that money revolves into the housing trust to allow them to contemplate investments but in some cases like Humboldt we can't do that because it's not in a development age area so that would go back and five feeling these the addition oh thank you just a quick question chairwoman um

And in some cases where we can we're transferring properties to the PRA for sale, that money revolves into the housing trust to allow them to continue make investments, but in some cases like Humboldt, we can't do that because it's not in a development age area.

So that would go back and find this the field medition.

Oh thank you.

Just a quick question, Chairwoman.

Um just going back to the statistics uh part of uh hilltop securities uh memo.

I don't know if you touched on already.

Um the total interest amount on there that that's the total interest that we're gonna pay on this bond based on based on pricing in the mid-floors that uh over a 20-year life on 25 million.

It's so I guess where um I guess where has the city like analyze like that total amount into the projected uh it's it's it's we'll put it in that still say certain oh okay we don't know what's the insurance okay thank you anyone else um council member uh thank you volunteer uh just uh a question in reference to um owning the buildings is the will the building be uh owned by PVBA or both of them and under the and as as presented I think it's a good deal in terms of the 444 uh because it has come before us and it is as you said the map just keeps adding adding uh increasing over time.

Uh in question in terms of the savings, and I think you highlighted um based on the projected rents like 1.2 million dollars.

That's gonna be useful um in the savings in 2027-28 um for debt service, or also or this coming back to the budget to be other case that it's holding specific about debt service line and not including any next borrow that we get considered school bond dollars, so I'll talk about that as well.

Next issue, um there may be opportunity to absorb the boot that service for this transaction in the current size of that service line that's very funny, and then system the general fund budget, and all we can't rent that would probably be some of the problems to the budget as a lower specific.

Um in reference to the uh um the building itself.

Uh can the repairs be also included in this uh uh agreement uh to repair 444 or improvements because allowing amount that will approximate one million dollars that will be held in reserve in the reserve that we use for any imminent repair requirements, if you will, or any in the very near future, they could be set aside a little talk for how with the three years of course like the terms of the bond condition, but that's the approximate amount that we believe would be if that's we can be set aside if not we can use all the low benefits, and then the last one on on the um uh water five building.

I know we said we're gonna get a uh presentation.

Uh PBA is going to own this uh facility and in that contract.

Uh they also get a uh a lease for how long and do they get to buy it out too at the end.

Um I don't want the leases currently the negotiation that will come back to the results of all those terms will be in that.

I don't want to spend thank you.

Okay, oh council involvement studio.

Sorry, but no, sorry, well thank you very much.

If any willing to lose any city requirements and that water five million is a huge plus 10 requirement.

It is um really important that the city not take any um responsibility for the management of that building.

The water fire will continue to operate that building.

Um and to you know, critical as I've learned more about their future plan, the that building being busy with events and pay rent is part of how water fire becomes stronger.

So we really want to give them the autonomy to continue to develop that business.

I think the possibility for work we can do at 444 for city departments, you know, we have the new TPW and DIS buildings on Jackman.

We'll have a new reorganized 444 Westminster.

Um it will allow us to improve spaces in here, including for council departments.

Um I think you know, my goal was that when I'm done in city service, I would leave all of these buildings in a much better condition than we have.

Last one.

Please.

You mentioned the 444.

Is it that intent?

Is it that isn't because of DSA or because of the lease.

Or because it's because we're in the lease open.

Yeah.

Okay, all set.

We have a motion.

I can both make a motion.

We approve number two.

Second.

Second and five.

Councilman Grace, all in favor.

All right.

Any vote?

I have it.

Motion carries.

Matter passes.

Well, it goes to the council.

Thank you.

Thank you, everyone.

Oh, yeah.

May I have a motion to continue items three and four of our agenda?

Motion made by end council and second by council contentions.

All in favor.

I oppose I have to carry.

Motion made by Council Taylor.

Second by anyone and favor.