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Board Update: District's New Agreement with ICS Consulting

NOVEMBER 27, 2018 - At Monday's board meeting, Superintendent Mike Redmond presented a proposed new agreement between Building Systems Holdings/ICS Consulting and Shakopee Public Schools for board review.

The agreement serves to protect the interests of the school district and to bring the current projects being worked on by ICS to final and successful completion.

As a result, the board approved the agreement.

 “The new agreement between Shakopee Public Schools and Building Systems Holdings/ICS shows the efforts put forth by two organizations, impacted by inappropriate actions of former employees, that are attempting to move forward to restore trust and integrity to their work while also completing a high quality construction project," said Superintendent Mike Redmond.

Here are some highlights of the new agreement:

 

  • Stewardship/Oversight: There is every indication that contracts and billing/accounting processes are in good order for the current work being done by ICS on behalf of ISD 720. 
    • ICS and ISD 720 are voluntarily, and by mutual agreement, hiring an independent auditor to re-examine contracts and billing/accounting documents. ICS is committed to paying up to $15,000 for this service.

 

  • Completion of Projects: There is every indication the on-site work of the ICS team has been of high quality. The employees have developed a deep knowledge of the pertinent aspects of the work being done in ISD 720, and are therefore best suited to bring this work to completion. Wold Architects and Engineers has been providing leadership on this project, which will continue. ICS has been providing services as the owner’s representative on this project, and that will continue with some minor adaptations. The changes involve adding a bit more in the way of redundancy and check-offs to be conducted by Wold Architects and Engineers.

 

  • Financial Relief: There are a number of financial costs to the school district in dealing with this unique circumstance and working to make sure everything is in order. There are the costs of additional time to pull and examine contracts, invoices, and the like. There are also the costs for the time to communicate with the public and fulfill data requests. And there are additional administrative and support costs in terms of time spent on matters pertaining to this unique situation. Arif Quraishi of ICS recognizes the costs incurred by the school district. He is also very committed to rebuilding trust between ICS and ISD 720, and in restoring the good name of the company he purchased in June 2017. As such, he has offered to provide financial relief to the district in two specific forms, in addition to the payment for the independent audit. ICS will stop billing the reimbursable expenses for their employees working on the high school project from this date through the end of the project. ICS will also not bill the district the fees remaining on the high school project. The fees total $218,725. At the conclusion of the project, at the sole discretion of the school district, if the district is completely satisfied with the work of ICS, the district may pay ICS up to 50% of the fees not billed.