Committee probes use of escalation allowance and owner-direct purchases amid billing discrepancies

Committee members pressed Ajax and district staff to explain owner-direct purchase change orders, negative allowances and the district's escalation allowance. Ajax's representative described the mechanics: they sometimes include a "negative allowance" in GMPs to reflect anticipated tax savings and later reconcile differences at buyout. As James Marini explained, the ODP process is intended to capture tax savings for the district while maintaining clear accounting for change orders.

Members expressed concern about use of escalation allowances for items not strictly defined as escalation. A board member asked whether district staff (JD) had authority to reallocate funds between categories without board approval; staff and contractors responded that changes that alter scope or contract value must be brought to the board and that many adjustments are handled with written approvals and final reconciliation. Ajax agreed to provide corrected pay-app documentation and show backup to demonstrate charges and burden rates on staff request.