September 20, 2016 at 6:30 PM - Business Committee - Regular School Board Meeting

1. Financial Report

1.A. Financial Report 
Financial statements only (Cash Flow report will resume later this year)

1.B. Approval of Payment of Claims
This item is attached as an "extra".

1.C. Budget Revisions

1.D. Wire Transfers

1.E. Investment Transactions

1.F. APU Projections
APU Projections will resume in October.

1.G. Fundraisers

2. Bids, R.F.P.s and Quotes Reports

2.A. Bids

2.A.1) Bid #1254 - Bakery Products
Bids for bakery products were advertised and sent to five regional providers.  There were two responses with the low bid coming from Bimbo Bakeries USA in the amount of $26,451.81.

2.B. R.F.P.s - None

2.C. Quotes - None

3. Policies and Regulations

3.A. Suspension of Policy 3065
Administration is requesting a suspension of Policy 3065/Regulation 3065R in order to contract for interpreter services with a relative of a current employee.  There continues to be a shortage of interpreters in the area and special services is in need of interpreter services.

3.B. New Policy 707 - Transportation of Public School Students
Attached is MSBA model policy 707 - Transportation of Public School Students for the first reading.  This policy would replace current policies 3140, 3142 and 3145.

3.C. 3140 - Transportation of Students - Deletion
In moving to MSBA Model Policies, administration is recommending the deletion of Policy 3140 which will be replaced with MSBA Policy 707.

3.D. 3142 - School Transportation Services Along Private Roadways - Deletion
In moving to MSBA Model Policies, administration is recommending the deletion of Policy 3142 which will be replaced with MSBA Policy 707.

3.E. 3145 - Transportation-Student Eligibility and Route Scheduling  - Deletion
In moving to MSBA Model Policies, administration is recommending the deletion of Policy 3145 which will be replaced with MSBA Policy 707.

3.F. New Policy 710 - Extracurricular Transportation
Attached is MSBA Policy 710 - Extracurricular Transportation for the first reading.  This policy would replace current policies 3170 and 3175.

3.G. 3170 - Secondary Schools Curricular, Co-Curricular, and Extra-Curricular Transportation - Deletion
In moving to MSBA Model Policies, administration is recommending the deletion of Policy 3170 which will be replaced with MSBA Policy 710.

3.H. 3175 - Elementary Schools Special Activities Transportation - Deletion
In moving to MSBA Model Policies, administration is recommending the deletion of Policy 3175 which will be replaced with MSBA Policy 710.

4. Contracts, Change Orders, and Leases

4.A. Contracts

4.A.1) Duluth Energy Systems Steam Service Agreement
Since 1995 the District has been connected to City Steam serving the Historic Old Central High School Building. There was an agreement made at that time which continued to renew since then. With the change in operation status from the Duluth Steam Cooperative to Duluth Energy, the new operator has requested updated agreements for continued service.

City Steam has been a reliable and efficient source of heat for HOCHS and the attached agreement has been reviewed by District Administration, and by Mark Knutson, the District’s legal counsel, and edits to the Operator’s Draft Agreement Form have been negotiated.

4.A.2) Hallberg Engineering
Attached is the contract for Hallberg Engineering to provide re-commissioning and technical services at Ordean East Middle School not to exceed $40,000.

NOTE:  Please see next contract with Minnesota Power, who will reimburse ISD 709 the cost of Hallberg Engineering's re-commissioning of Ordean East Middle School, not to exceed $40,000.

4.A.3) Minnesota Power Business Pilot Program Opportunity for Power of One
As an enhancement to the existing Business program and to promote ongoing investment in energy efficiency, Minnesota Power is offering a pilot program opportunity for refunding up to $40,000 of the cost of re-commissioning services at Ordean East Middle School.

NOTE: Please see above contract with Hallberg Engineering for re-commissioning services at Ordean East Middle School.

4.A.4) ACT District Testing Program - Spring 2017
Attached is a contract from ACT, Inc. to provide testing services to the Duluth Public School District for the Spring 2017 District Testing program.  The ACT test is a curriculum- and standards-based education and career planning tool that assess students’ academic readiness for college.  The testing will be available via paper or online.  Billing is determined by the number of answer documents processed or online assessments launched and will cost approximately $35,000.00.  

4.B. Change Orders

4.B.1) Change Order #1 for Quote #4238 - HOCHS Gyms Ceiling - Abatement
750 square feet of the duct insulation must be removed to allow for the connection of new ductwork and new gym ventilation diffusers to be connected to the existing ductwork that had asbestos containing material covering them.

Change Order #1 to this bid is the added cost for the removal of the 750 sq. ft. of asbestos containing duct insulation resulting in a increase of $9,000.00.

4.B.2)  Change Order #3 for Bid #1247 - Denfeld High School CTE Addition
Change Order #3 is for the cost to replace non-code compliant sanitary sewer pipe that was located below the new Denfeld addition and also to reroute the same in order to avoid additional delay in project completion.  The additional cost of Change Order #3 is $9,255.69, with a total revised contract cost (including Change Orders #1 and #2) of $684,615.86.

4.B.3) Change Order #2 for Bid 1248-1 HOCHS Third Street Parking Lot
Change Order #2 to this bid is added time for completion due to delay in start.  The original start date was June 6, 2016 and completion date was September 2, 2016.  The actual start date was July 11, 2016 and the revised completion date is November 15, 2016.  There is no cost change.

4.B.4) PLACEHOLDER - Other Change Orders

4.C. Leases

4.C.1) MARCO
Administration is recommending that we accept the proposal from Marco for four (4) Konica Minolta black and white copiers for the Print Shop.  The 48 month lease will be an approximate annual cost of $ 72,924 (including equipment and maintenance).  Pricing is based on the AEPA (Association of Educational Purchasing Agencies) Contract.  Please note that this represents an annual savings of approximately $23,460 from current pricing.  

5. Resolutions

5.A. B-9-16-3394 - Acceptance of Donations to Duluth Public Schools.

5.B. B-9-16-3395 - Maximum Levy Certification

5.C. B-9-16-3396 - Purchase of Real Property Located at 3215 Elm Street (near Lincoln Park Middle School)
This property is adjoining the land associated with the Lincoln Park Middle School near its entrance off West Third Street.  This property will provide future opportunities for use that are yet to be determined.

5.D. PLACEHOLDER - Sale of Property

6. Informational - These items are provided for informational purposes only and no action is required.

6.A. Expenditure Contracts
Superintendent Gronseth or the CFO/Executive Director of Business and Finance has signed the following contracts during the month of August 2016.

6.B. Revenue Contracts
Superintendent Gronseth or the CFO/Executive Director of Business and Finance has signed the following contracts during the month of August 2016.

6.C. Other Contracts
Superintendent Gronseth or the CFO/Executive Director of Business and Finance has signed the following contracts during the month of August 2016

6.D. Change Orders Signed - None

6.E. Facilities Management & Capital Project Status Report 

7. Future Items

7.A. Policy Updates

7.B. Final Levy Approval (December)

7.C. FY 2015-16 Audit Results (December)