The Salisbury Township School Board held an operations and finance committee meeting Sept. 6 where representatives from D’Huy Engineering were on hand to discuss the water mitigation project at Salisbury Elementary School and the possibility of securing a fixed retainer service agreement.

Updates on the Guaranteed Energy Savings Act project at the middle school were presented as well as a discussion concerning several 2019 bond projects.

D’Huy engineer Arif Fazil began the meeting by explaining what securing retainer services with D’Huy would look like as opposed to utilizing engineering services on an on-call basis as the district has been doing since 2008.

Some of the benefits of a retainer include a known fixed monthly cost, annual updates and regular management of the capital plan, regular meetings with the facilities team and the availability to attend board meetings when needed.

Fazil explained not all services and proposals are covered under the retainer. In the case of the Salisbury Elementary School water mitigation project which involves an evaluation to develop the scope, budget and report for board approval, these services would not be covered by retainer nor would the development of bid documents needed to put the project out for bid.

Another advantage to the fixed retainer option is D’Huy will assist the district to obtain grants on eligible approved projects with no upfront fees. Once a grant is obtained, a fee of 10% is assessed for the applications, management and filings to obtain the grant. Fazil did note none of the projects the district is currently considering appears to be eligible for grants but this could change.

The board asked Bill Brackett, director of facilities, to weigh in on the need for a fixed retainer. Brackett considered the costs for engineering fees over the past few years and concluded it will cost less to continue using D’Huy on an as-needed basis than the annual retainer fee of $21,600. He also noted projects in the near future would be bid projects and would not be covered by the retainer.

Several board members expressed they were inclined to favor employing a D’Huy retainer seeing value in the assistance they provide with obtaining grants that could pay off in the future.

The water infiltration mitigation project at Salisbury Elementary School was the next item up for discussion.

Brackett summarized the project which entails rerouting and retrofitting roof drains, adding perimeter drainage, altering how water is pulled away from the building and adding sump pumps at the end of each pod area to draw water out.

The project is budgeted at $910,000. D’Huy presented a timeline for the board to authorize the work so a bid package can go out by November and a bid will be awarded in January 2024. This will enable the district to get the best pricing and the project can be on the schedule for June with an August completion date in time for the start of school.

Brackett cautioned the board this project is not a 100% foolproof remedy. He reminded board members the building is constructed on top of a swamp and the initial drainage system underneath the building has failed leaving no viable way to correct the failure. The proposed rerouting of water should be able to draw most of the water away from the building.

Board members acknowledged that even if the timeline for the water infiltration project goes as planned, the problem will still exist for at least this school year. Sensors have been installed in rooms prone to flooding and frequent visual checks will be conducted during rainy weather in an attempt to head off potential flooding. If flooding occurs, plans are in place to dry and treat affected areas to prohibit mold growth.

Brackett updated the board on the GESA project at Salisbury Middle School which was completed just in time for the start of school. While it was not without a few hiccups, every room in the building was outfitted with a new air conditioning unit, ductwork, drop ceilings and LED lighting.

Rooftop units are in place and code inspection requirements have been met. He emphasized the size and scope of the project and the tight timeline and praised his maintenance staff for their tireless work. Board members Christopher Freas and Sarah Nemitz, who were present on the first day of school, expressed their appreciation for a job well done and remarked how nice the school looked.

Director Laura McKelvey raised concern because teachers were not given a suitable amount of time to ready their rooms for the start of the school year. She reminded the board Brackett had said the building would be ready to go by the first day, which in her view is the first day teachers are required to be in school. Some rooms were not accessible until the Thursday before the start of school on Monday and she asked for an explanation.

Brackett responded he informed the middle school staff in June they may not have full access to their rooms until a few days before school due to the major renovations. He reiterated every classroom was affected and this could not be avoided.

The board acknowledged the added stress put on teachers and staff and requested Superintendent Lynn Fuini-Hetten and Brackett work on a contingency plan well in advance of the next project in case the start of school needs to be altered.

A lengthy discussion was held concerning the 2019 bond projects which has a remaining balance of $208,528. Brackett proposed two projects for the board to consider: the replacement of bleachers in the gym at the middle school and the replacement of flooring in classrooms and hallways prone to flooding at Salisbury Elementary School.

Replacing the flooring would entail carpet removal in up to 16 classrooms and laying a vinyl flooring that does not require floor finish in rooms and hallways. In the long run this type of flooring would save man hours and is environmentally friendly.

The main question the board needs to decide is whether to replace flooring one classroom at a time during the school year or wait until the summer and complete the flooring project concurrently with the water infiltration project. Brackett also proposed the idea the district may consider ordering the materials for the flooring so they have them on hand if a problem occurs and the floor could be replaced as needed.

The administration recommended the new flooring in classrooms and hallways move forward only after remediation of the water infiltration issues. This option would be less disruptive to staff and students.

The finance committee portion of the meeting focused on how to pay for the new roof at the middle school and correcting the water infiltration issue at the elementary school.

Chief Financial Officer Dawn Nickischer presented the board with two detailed payment schedules which would include financing for the middle school roof only at $2.5 million and a schedule for financing the roof and the water infiltration mitigation at a cost of $3.5 million.

The board must decide whether to finance the roof project and pay for the water mitigation project out of the fund balance or finance both projects. Nickischer’s recommendation would be to finance both projects because it is difficult for the district to quickly build back the reserves once money is taken out.

In order to build reserves, expenditures must be less than revenue. Administration has made a concerted effort to find ways to generate more revenue through sound investment strategies, tightening budgets and effective use of a rebate program with vendors the district currently uses.

The board will meet with a representative from PFM Asset Management at the Sept. 13 meeting to further discuss the details of financing so an informed decision can be reached in the near future.

In other news, the auditing process is moving forward and the annual financial report should be completed by the Oct. 31 deadline.

In a 2-year comparison of revenue and expenditures, it appears there are no significant changes to report.

Nickischer continued with her monthly finance workshop designed to broaden each board member’s understanding of the Pennsylvania Department of Education chart of accounts.

This month the focus was on the coding of federal, state and local revenues.

The next operations and finance committee meeting will be held Oct. 4.

A regular school board meeting and the curriculum and technology committee meeting are scheduled 7 p.m. Sept. 13.

All meetings are held in the administration building, 1140 Salisbury Road.