10/12/2017 FINANCE COMMITTEE Minutes

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5 Finance Committee Minutes October 12, 2017 Erin Orcutt, Business Manager Cape Cod Regional Technical School, discussion regarding the Cape Cod Regional Technical School constructionproject: (continued) Ms. Orcutt indicated the Cape Cod Technical School Building Committee comprised of 25 members agreed to move forward with new construction as the most prudent direction. If funding is not achieved at the district-wide election on October 24, 2017 Ms. Orcutt stated the technical school would further review this matter with the Massachusetts School Building Authority(MSBA) and determine the reasoning behind the lack of community support. It was explained there is no financial ability within the present operating budget of the school to fix the mechanical systems and other core systems that are failing in the school. There is also the matter of ADA compliance issues that also exist. In further discussing the matter it was noted the school has a current enrollment of 593 students from 623 students last year. Ms. Orcutt indicated that 30 students have enrolled in other sending districts. This figure is less on average than the traditional schools. There is competition with respect to the educational marketplace. Students now have a wide variety of options in terms of education. The new school is being constructed to house 650 students. Five years ago, 650 students were enrolled. The new building is expected to serve the needs of the regional district for the next 50 years, and it is assumed a new facility would attract more students. It was noted the MSBA is funded by using 1% of the state's sales tax. Presently,the Town of Mashpee is expected to obtain a 45.45% reimbursement on eligible costs for the project. With specificities relative to reimbursement, the estimate is reduced to 33%. It was noted the MSBA cost share is based on the economic factors of the Cape. Ms. Orcutt indicated the state's contribution may increase by an additional 5%to increase the reimbursement by a projected $6 million. This would represent a substantial savings to the $127 million project and lower interest rates. Scott McGee commented with respect to this regard stating the Town of Mashpee has not contributed to the infrastructure (no bricks and mortar and no capital costs contributed to this school) since the district was formed in 1974. The Cape Cod Regional Technical School has not requested additional funding for capital costs over the years only to request funds for the feasibility and design of the new school two years ago. When asked about the enrollment projections, it was noted if enrollment was reduced the cost of the construction would be about the same. Cost is factored into the budget for space requirements, classrooms and shops.