North East Independent School District

210-407-0541 8961 Tesoro Drive San Antonio, Texas 78217

Brian G. Gottardy, Ed.D. Superintendent of Schools

July 24, 2012 Dear Parents and Guardians: It has been a month since my last construction update and I want to bring you up to date on the status of the projects at Vineyard Ranch and Las Lomas elementary schools. Progress is being made at both sites, but unfortunately there have been repeated issues with subcontractors not being paid by Summit Builders, the general contractor. Due to Summit Builders experiencing financial difficulties, a meeting was held between Summit and its bonding company, Safeco. Safeco has informed North East ISD that Summit will no longer be in control of the project financially. Instead, Safeco is stepping in and taking over the process of ensuring that payments are made to the subcontractors. NEISD will now pay the bonding company directly instead of issuing payment to Summit Builders. Starting today, July 24, an audit team from Safeco will begin assessing construction at Las Lomas and Vineyard Ranch elementary schools to see exactly where the projects stand. As you know, both elementary schools were originally scheduled to be completed by mid-July. In May, Summit Builders informed NEISD that the deadline would not be met. Instead, they revised those deadlines for Las Lomas and Vineyard Ranch to October 25 and November 1, respectively. However, NEISD believes those completion dates are now in jeopardy and we are awaiting further information from Safeco. I will continue to send additional updates as we learn more. Thank you for your continued cooperation and patience. We will continue to answer your questions at newelementaryschools@neisd.net. Sincerely,

Brian Gottardy, Ed.D. Superintendent of Schools

(210) 407-0040 (210) 804-7093 fax newelementaryschools@neisd.net