Currently, the poll regarding a feasibility study shows nine people are in support of the study. After watching the school board meeting this morning and uploading the podcast to Lebocitizens.com, I see that the board decided to table the vote until next month. Directors Remely, Kubit, Ostergaard, and Goldman expressed concerns such as the tight budget, staff cuts, timing, and not enough information to make a decision. I believe it was Director Goldman who pointed out that Pursuant Ketchum did not meet with the directors and would like to see a presentation from them, as well as hearing from other fundraising firms.
The goal is to raise $30 million but the cost of fundraising could amount to $3 million. There was a lot of discussion about naming rights, which amazed me since we have a resident and frequent commenter on this blog who handled the naming rights of Heinz Field.
The other point to mention, in my mind, is that Pursuant Ketchum, out of Texas (travel costs??), will be contracted for the feasibility study only, and if Pursuant Ketchum or another party is retained to assist in a fundraising campaign, it will be pursuant to a separate contract to be negotiated at that time. Why not take bids for an actual fundraising campaign? Do we really need a study?
17 comments:
Wait one damn minute! There was no presentation made to the directors by Pursuant Ketchum and this item was on the agenda for a possible vote to go ahead.
What in the hell would they have been expected to approve?
Who put this on the agenda? What were the details? Had Elaine not highlighted this agenda item would the board vote gone differently, in favor of the expenditure.
Thank you, thank you, thank you... Elaine for shining a light.
Dick Bachman
DB,
This action item on the agenda was brought to my attention. Neither of us had any idea that a presentation was never made. From what I picked up watching the meeting this morning, it was one of Dr. Tim's harebrained ideas. Of course, the gals thought it was a great idea. Oops, was that a sexist remark?
Elaine
The Board Agenda is set by the Superintendent, the President and the Vice President.
John
The other five directors should have voted for this proposal because Pursuant Ketchum is a very fine fund raising firm. If the $30,000,000 goal is reached at a cost of $3,000,000, the savings on the HS Project would have been $27,000,000 plus the interest to borrow $27,000,000 over a multi-year period.
Pursuant Ketchum does the fund raising for Notre Dame University among many other prominent clients.
John
John, this vote was to spend $41,000 plus travel for a study, not for them to do the fundraising.
Elaine
Elaine,
I understand the motion was to do a study but we have to do the homework (study) on fundraising before we let the contract. The risk is $41,000; the reward if we employ P/K is $27,000,000 plus the interest savings.
John
John, how did you arrive at the $27,000,000 figure? Is there a guarantee that P/K will generate $30,000,000 less the $41,000 + 10%, that we haven't been told about?
Dick Bachman
Maybe a good test would be-- let's see if they can get some donor to cough up $41,000 for their feasibilty study!
The school district doesn't have any spare cash and that $41Gs will save some teacher or program this year.
Hell if they are that good that they're going to drum up $30,000,000 in donations, $41,000 should be a cake walk.
Dick Bachman
Hey John, how big is Notre Dames endowment? And how much extra money does MLSD have to speculate on fundraising? This is so far beyond apples and oranges that it makes me think that you are back on the school board. Spend now, think later, if ever!
Joe Wertheim
Here is an idea that was sent to me:
Chicago School Nets $190,000 in Student Fines
Mary Birks said there is nothing on the Internet about fundraising for schools. I don't know how she came up with that, but in about thirty seconds, I got Fundraising Basics
and A.L. Brourman Associates, Inc. And they are right here in Pittsburgh.
Here is a creative idea.
Carnegie Mellon Tepper School of Business has fundraising guidelines. Maybe we can get some grad students to come up with something. It wouldn't cost $3 million, they're local, and it could help out some students make a name for themselves.
Elaine
Mr. Bachman, $41,000 can't save a teacher because the pension and healthcare costs have to be added to get the total employment cost and that is well above $41,000 for a new teacher.
The $41,000 is the fee we pay to study how to do fund raising properly and, most likely, on a continuing basis over a period of years. The P/K firm is an outstanding choice to raise funds for us and thereby provide the cash-flow to save future programming and teachers.
Think of it this way: if we do raise the $27,000,000 and save financing costs on that amount at 4% over 25 years that saves $1,700,000 per year or over $40,000,000 over a 25 year life span. That adds almost one mill to cash flow without raising assessments or millage.
So I have to support the decision to hire P/K to get the job done right on the first try. I have a very high regard for the firm selected. We should have hired them two years ago when we had preliminary costs.
I'm a bit surprised two long term board members did not support this action. At some point the CEO may need to make the decision to accept the five-vote majority and hire P/K to do the study and if the report has a positive result, we need to hire them to raise the funds. The firm has an excellent reputation raising funds for education.
John
Was the entire SB not fully informed about this *scheme* before it was presented to them for a vote ? Or were only a select few SB members aware and fully informed....and who specifically were they ? Who specifically originated and promoted this behind the scenes, glaring example of non-transparency scheme and *administered* it to this point in time...outsider(s), Admin and/or SB ? Who proposed and who specifically named Pursuant Ketchum based on what performance & evaluation criteria ? What consideration of other qualified firms, specifically those located in the Pittsburgh area, was given and by whom ? Why was there not an RFP...appropriate even for public personal service contracts that do not otherwise legally require competitive bids ? Was it because to do so would have required a SB motion or resolution approval in a public meeting ?
These, and more, relevant and unanswered questions that scream for answers that will likely never occur or satisfactorily occur in the light of day.
I'm about to marm up the tar...who will donate the feathers ?
Bill Lewis
John, what happens if P.K. decides that it isn't feasible to have a fundraising campaign? What? It IS worthwhile? Then forget the study and let companies do their own research and let them present their proposals, including P.K.
Elaine
Folks give to needs or causes that mean something to them. It is one way we can make a difference -- somehow, someway.
This "study" reminds me of a similar endeavor a few years ago by our neighbors to the south.
The ruling gentry pushed through a very expensive recreation center and followed with a capital fundraising feasibility study -- which if my memory serves me -- found that such an initiative would bear little fruit.
The non-using public had no interest in contributing additional funds beyond the significant tax increase already bestowed upon them. While, the using public was quite satisfied using OPM (other people's money) to fund their community interests.
This study should be required reading before MTLSD embarks on such folly.
If the "smarter than the rest of us bunch" still wants to proceed, may I suggest a leadership contribution that really speaks to their commitment to the education of our youth -- say collectively about $50,000.
Thanks Mr. Mathews, for making a pertinent point.
I'm still trying to find out how this group has determined that there is a vault with $30,000,000 just waiting to be tapped by the district.
Furthermore, if they know it exist why do they need P/K to do a feasibility study, why not just go after it and save $41,000?
This is similar to the contracted $15,000 strategic planning facilitator. We have a superintendent that we just had to give a very attractive raise so he wouldn't leave.
One of the duties of the super and administration is to develop the strategic plan and then see it's implemented.
Next we will be hiring a high priced athletic motivator to assist the athletic director.
Dick Bachman
I think that number is what is needed to avoid a second bond. I could be wrong.
Elaine
A question.
Has anyone ever done an accounting on the amount of money donated directly to the district and it's extracurricular activities by volunteer parents?
Including the various team parents, the PTAs, the Fairs, the playground equipment efforts and on and on.
Not to mention the local businesses that generously donate goods, services and money to the causes,
All done by volunteers for no pay.
Dean Spahr
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