DPSCD Finance Committee Meeting

Still waiting for the meeting to start. Nothing has been announced about the delay. They are recording on Zoom though. There is no way to tell them we can't hear them if they are speaking. Will keep you all posted.

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It is 11:24am and we are still waiting for an update on when the meeting will begin.

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We are finally starting! Meeting called to order at 11:26am. Agenda for today is below. https://t.co/V92cygIluW

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The audio connection is terrible. People are very far away and cutting in and out. Hopefully the presentation will help me key in to what is being said.

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I have no idea who is speaking but we are presenting on September financials now https://t.co/qi5BeGv3DL

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YTD is on track for textbooks and supplies. Salaries are increased due to after school programs beginning. https://t.co/LFeYMOi9ff

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https://t.co/FTwZ5ixz0E

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Revenue and Expenditures were down but still maintaining a surplus for the year. https://t.co/qH8PUUhpRx

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48,200 FTE currently which is lower than pre COVID, but an increase from Spring counts. Need to budget for increase in inflation and increase in teacher salaries. https://t.co/LaeYjAxQf7

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Someone is abstaining from voting on the below contract approval due to her organizations interests. Sounds like due to this there are not enough to make a vote today. https://t.co/IwUwrMc7Ui

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Contract to improve lessons at high school level to be more committed to anti-racist and reflective of student body. Moved forward to consent agenda. https://t.co/2IprCYYA1X

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https://t.co/dRqcpZRmYm

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Someone asked how the public is being notified when inspections occur. "By ordinance there must be a tag after inspection occurs." There is no outward announcement, but if there is a request they can send notification.

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This was an emergency purchase for Noble Elementary to buy and install a boiler so there is heat in the building. https://t.co/eF1zZsmyqk

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Asbestos remediation. Question asked when this will take place? It will take place over winter breaks and in the evenings. https://t.co/h5MxTKHBhx

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Demolition contract for former Phoenix building. Comment made that someone is not comfortable moving forward with this. https://t.co/Mds6rKl0pT

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Questions asked around what is the commitment from @PlanteMoran to the students and teaching them the industry? There have been discussions from other construction companies working in the district. Dr. Vitti said starting those conversations falls on the district. https://t.co/9tY9nARN8p

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https://t.co/0utRX3wJMQ

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Moving to public comment before the next action item. There are 4 people in-person and 2 online.

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1. Ms. Moore raises concerns of ethics of the board and Dr. Vitty and their connections to certain contracts.

2. Mr. Waters encourages to go forward with sale of Cooley High School.

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3. Comment about making sure no one is using us and the board needs to look at that. All contracts should go to Black and Brown people.

4. Worked with Life Remodeled, says they will do a good job with Cooley based on their success with Durfee.

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Companies applying for DPSCD contracts, they are not required to identify themselves. Dr. Vitty says they try calling to get that information and track that.

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Now up, discussion of the sale of Cooley High School to @LifeRemodeled
detroit.chalkbeat.org/2022/10/25/234….

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Two organizations bid on the sale, Bridging the Gap based in Pennsylvania and Life Remodeled based in Detroit. Life Remolded showed cash to purchase and has track record of similar work in the city. https://t.co/ZUIiMx5PNX

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I'm not sure who is speaking but she is sharing about the connection between Bridging the Gap and LEEC …diesentrepreneurempowermentcircle.com and how this purchase would have impact on them. Dr.Vitti shared there are other buildings available and opportunities for MOUs in after school programs.

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Q: what most recent appraisal was?
A: about $930k
Q: why are we selling at half the appraisal?
A: if we don't sell, we have to spend ~$300k/year to maintain or demo at $6m
Q: why wasn't this negotiated in sale?
A: appraisal came after bid https://t.co/NLC0HIrpYe

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Q: which proposal has more solid long term finance plan?
A: Life Remodeled has purchase cash on hand, Bridging the Gap will finance. Both will fundraise the ~$20m to rehab the space.

Q: have we considered option to own pending funds raised?
A: we don't have capacity to manage

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I am not sure who is asking the questions, but Dr. Vitty is answering them.

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Unidentified speaker -- "I don't want to see the building transferred at a higher cost or fancy condos built in the middle of the hood but I agree with the intended use and hope it stays mutually beneficial for the community."

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Q: what restricts their project intended scope? what's the accountability?
A: for 10 years they have to maintain the original project scope.

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Ms. Moore is now in-person and speaking up about how she contacted the people when Dr. Vitti claims he was the one who did. It was hard to hear the exchanges being made. Ms. Moore was asked to save her comments for an offline conversation.

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Dr. Vitti has concerns of not moving one of these deals forward. The cost for DPSCD to maintain the vacant building are too high.

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Recommendations are being discussed to ask Life Remodeled to enter into a site control agreement and/or increase their bid cost to closer match the appraisal value.

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There's a lot of chatter trying to get everyone on the same page of how to move forward.

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"As superintendent, I can see the value in selling it, I can also see the value in holding on to it if we secure it and we understand the risks."

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This concludes the DPSCD Board of Education Finance Committee Meeting on November 10th, 2022. For more meeting coverage, check out documenters.org. #detdocumenters

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If you believe anything in these notes is inaccurate, please email us at documenters@outliermedia.org with "Correction Request" in the subject line.

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By Noah Kincade 11/10/2022

Agency Information

Detroit Public Schools Community District

www.detroitk12.org

(313) 240-4377

See Documenters reporting

Detroit Public Schools Community District (DPSCD) is Michigan’s largest public education system. It is governed by a locally-elected, seven-member board. The District’s mission is to provide every student with a beneficial and rightful educational experience, preparing students to be career and college ready, and qualified to compete in the global market. The District has 106 schools and educates 50,000 children.