coen Posted September 16, 2010 Report Share Posted September 16, 2010 Proceedings of the Board of Trustees Budgeting for Results Committee, Planning and Development Committee, and Energy and Environmental Innovation Committee School District No. 2, Yellowstone County High School District No. 2, Yellowstone County, Billings, Montana June 7, 2010 CALL TO ORDER The Special Joint Board Meeting of the Board of Trustees, Budgeting for Results Committee (BFR), Planning and Development Committee (P&D), and Energy and Environmental Innovation Committee (EEIC) of School District No. 2, Yellowstone County, Montana, and High School District, Yellowstone County, Montana was duly held at the Lincoln Center, 415 North 30th Street, Billings, Montana, June 7, 2010. Trustee Chair Barbara Bryan called the meeting to order at 5:50 p.m. and led those assembled in the Pledge of Allegiance. Board members present included Trustees Kathy Aragon, Barbara Bryan, Mary Jo Fox, Lindy Graves, Travis Kemp, Teresa Stroebe, Connie Wardell, and Joyce Weber, District Clerk, Leo Hudetz, Superintendent Copps. Planning and Development Committee members present included Kathy Aragon, Sandra Abrahams, Doug Armknecht, Margaret Aukshun, Deana Elder, Mary Jo Fox, Amy Griffin, Krista Hertz, Josi Wilgus, and Kathy Olson. Budgeting For Results Committee members present included Barbara Bryan, Tom Bick, Paige Darden, Deana Elder, Rod Gottula, Bruce MacIntyre, Sandra Mammenga, Joan Sleeth, Dan Stanaway, and Thomas Harper. Rich Whitney, Executive Facilities Director and Ed Gulick, (Energy and Environmental Innovation Committee). Others present included Gail Surwill, Executive Director of Curriculum, Don Reed, Sue Vinton, John Eisen, Patty Fain, Conrad Stroebe, Kurt Hay, and Bridgett Ekstrom, Vice President of D.A. Davidson & Company. COMMUNICATION FROM THE PUBLIC The Board recognizes the value of public comment on educational issues and the importance of listening to members of the public in its meetings. The Board also recognizes the statutory and constitutional right of the public to participate in governmental operations. The Board encourages members of the public to participate in and express opinions about issues important to the District. This part of the Board’s meeting is dedicated to public comment on any public matter that is not on the agenda of this meeting and is within the jurisdiction of the Board of Trustees. Members of the public may also address particular items on this agenda either now or at the time the Board considers the particular item. Jennifer Howe stated she was in favor of running the bond issues and felt they would pass if the allocated funds were used for deferred maintenance throughout the district. Sue Vinton encouraged the Board to consider building a high school in Lockwood when looking at strategic and long term planning. Conrad Stroebe spoke to the education and political component to running the bond issues. Mr. Stroebe encouraged the Board to build a high school in Lockwood, this would eliminate transportation costs, open up classroom space, provide more opportunity for more students to participate in activities, and provide a smaller school environment. Don Reed urged the Board to consider the education environment in a school, keeping neighborhood schools, not having school buildings that are a 100 years old, and building a high school in Lockwood to serve as a small environment high school. QZAB, QSCB AND BUILD AMERICA BONDS DISCUSSION Chair Bryan stated the purpose of the special meeting is to discuss the bond issues the district is eligible for under the federal American Recovery and Reinvestment Act. Chair Byran explained the bonds must be approved by the voters within six months of the approval of the state notification. Chair Bryan clarified that the original application for the bond issues was June 25, 2009 and the district was notified of state approval of the allocations to issue the bonds March 23, 2010. Below are exhibits in the agenda packet which were discussed: Exhibit A What is the opportunity? - $2 million in QZAB bonds - $10 million in QSCB bonds - Approve BAB bonds up to the districts capacity Exhibit B Applicable deadlines - No later than June 28, 2010 the Board must declare its intention to run a mail ballot bond election in September - No later than July 7, 2010 the Board must declare the amount Of the bond(s) and the specific intended uses for bond(s) - September 7, 2010 election for voter approval for bond(s) - December 31, 2010 bond(s) must be issued Exhibit C Financial analysis of bonding options (estimated costs) - Mail ballot election in one district $77,000 - Mail ballot election in both districts $87,000 Exhibit D Questions/Issues for discussion 1. Run a fall bond election to take advantage of ARRA bonding opportunities. 2. Discuss types and amounts of bonds (QZAB, QSCB and BABs) 3. Should the district seek to issue bonds for one or both districts. 4. What projects should be designated for completion with bond funds. 5. What key points should be made to the public about the bonds. Exhibit E Highest priority maintenance projects Exhibit F Total deferred maintenance list Exhibit G Broadwater, McKinley and Cottonwood, School construction Bridgett Ekstrom, Vice President of D.A. Davidson & Company, explained the QZAB, QSCB and Build America Bonds (BAB) and the savings to the district, which included: QZAB Bonds (Qualified Zone Academy Bond) is part of a federal program. QZABs are available to school districts where at least 35% of students qualify for free or reduced school price lunches. The bonds can be used for repairs and renovations of facilities, but not for new construction. The district is eligible for 2 million dollars in QZABs for 2010. The financial advantage of the bonds to the district is that they are interest free and single-bullet maturity. QSCB Bonds (Qualified School Construction Bonds) is a new class of bonds available only for public school facilities. The bonds may be used for repairs, renovations and new construction of facilities. The financial advantage of these bonds to the district is that they are interest free and single-bullet maturity. Ms. Ekstrom said Billings applied for these bonds with the Montana Office of Public Instruction (OPI) in June of 2009 and was placed on a waiting list for the 2010 allocation. On March 25, 2010, the district was notified by OPI that it approved a $ 10 million QSCB allocation for Billings Public Schools. OPI informed the district a bond election must be held by September 21, 2010 to qualify for the funds. Due to a conflict with the general election in November the county notified the district the latest day it could run a mail ballot election is September 7, 2010. BAB Bonds (Build America Bonds) are a new class of tax advantage bonds available. The financial advantage is that the federal government pays 35% of the interest, the bonds have no dollar amount limits, and they have a 20 year maturity. Bridgett Ekstrom said the state facilities reimbursement subsidy is approximately 47 percent of the principal and interest to all three of the bonds. Ms. Ekstrom stated although the state does not guarantee this program will be funded indefinitely into the future, it has been in existence since 1993. Kathy Aragon asked what the requirements for the QZABs and if the STEM (Science and Math) project is a component to the QZAB 10 percent required match by a third party. Superintendent Jack Copps stated the STEM project is independent from the QZAB bonds. Superintendent Copps said other avenues such as an in-kind match can satisfy the match obligation. Gail Surwill explained the STEM project offers nine academies to choose from. Ms. Surwill said there is one math elementary piece, one math and digital literacy piece for the middle school, and the other pieces are for the high school. Currently the district is using Success Maker for math and science through 8th grade. Paige Darden asked if we receive the fund allocations before we submit the list of projects. Chair Bryan explained that when applying for a grant the district must submit the projects that will be funded. However, with bonds, we request the voters approve a specified dollar amount to be borrowed. The district must be able to explain to the voters how the bond proceeds will be used. The check and balance is voter based. The amount of funding that can be requested under QZAB and QSCB bonds is determined by the Office of Public Instruction (OPI). These bonds are more of a stimulus to generate the general economy by the federal government. Ron Gottula suggested these bonds are a good way to be good stewards for the district. To promote the bonds to the public he feels it is wise to use the money for deferred maintenance not salaries. Superintendent Copps said these bonds are a major savings with zero interest and state aid on any bond issues. The members were in agreement that there will be further bonding opportunities and the district can still get state aid. The district must build on successes and do exactly what you say you are going to do with the proceeds. The consensus was to move forward with the bond issues as it makes good business sense. Mary Jo Fox brought up the issue of using the bonds to help address the $ 4.5 million dollar deficit projected for FY 2012 by building a new school. Chair Bryan felt that addressing deferred maintenance actually address the deficient more than building new. There is a savings when deferred maintenance is done with energy savings and avoiding catastrophic repairs that would come out of the general fund. Chair Bryan clarified the motions are “straw poll motions” to see what direction members want to move forward with. MOTION 1 Rod Gottula made the following motion seconded by Bruce MacIntyre: Budgeting for Results Motion to recommend to the Board to use the full $ 2 million dollars of QZAB for deferred maintenance for projects to be determined at a later date when members have had a chance to review. Bruce MacIntyre suggested qualifying the motion to say if the decision is made to move forward by the Board in the motion with the QZAB. Rod Gottula approved of this change and Bruce MacIntyre seconded it. Those voting in favor were Barbara Bryan, Tom Bick, Deana Elder, Rod Gottula, Bruce MacIntyre, Sandra Mammenga, Joan Sleeth, and Dan Stanaway. Paige Darden voted against the motion. The motion passed. Mary Jo Fox made the following motion seconded by Doug Armknecht: Planning and Development Motion to recommend to the Board to consider deferred maintenance, and/or renovation, and expansion of any schools they deem appropriate using the QZAB. Sandra Abrahams asked if the project for replacing the roofs included insulation. Rich Whitney said all roof projects include insulation. Those voting in favor were Mary Jo Fox, Doug Armknecht, Sandra Abrahams, Deana Elders, and Josi Wilgus). Kathy Aragon opposed the motion due to the expansion. The motion carried. Chair Bryan explained criteria for the QSCBs are not limited to Title 1 schools and can be used for deferred maintenance or new construction. MOTION 2 Rod Gottula made the following motion seconded by Deana Elders: Budgeting for Results Motion to recommend to the Board to use the entire $ 10 million QSCB for qualifying deferred maintenance projects. Deanna Elders asked if it would be used just be used for deferred maintenance and not renovations. Rod Gottula said since time line is short he will add to his motion: Deana Elders seconded. Budgeting for Results Motion to recommend to the Board to use the entire $10 million QSCB money as the Board deems. Those voting in favor were Barbara Bryan, Tom Bick, Deana Elder, Rod Gottula, Bruce MacIntyre, Sandra Mammenga, Joan Sleeth, and Dan Stanaway. Paige Darden and Bruce MacIntyre voted against the motion. The motion passed. Mary Jo Fox made the following motion with no second: Planning and Development Motion to recommend to the Board to use the entire $10 million QSCB money for whatever purposes allowable by law. The motion failed. Lindy Graves suggested that since only $ 12 million dollars is available the Board needs to be realistic and get needed maintenance done. Kathy Aragon encouraged using the Citizen Advisory Committee and hire professionals to address the projects priority list. Sandy Abrahams feels the Board needs to choose projects that appeal to public by addressing the district’s educational and building needs. MOTION 3 Mary Jo Fox made the following motion: There was no second. The motion failed. Planning and Development and Budgeting for Results Committee Motion to recommend to the Board to bring back the proposed task force architect plans and reports for Broadwater and McKinley elementary schools that were previously completed and address the criteria, warm, safe, and dry. Chair Bryan said portions of the task force reports can be looked at in addition to the compressive project list Rich Whitney has compiled. Paige Darden suggested the task force reports are mixing new construction and maintenance projects. Rod Gottula made the point that we may not want to spend money on Broadwater and McKinley for repairs if renovations are going to be done later. Rod Gottula suggested Paige Darden brings up a good point if you look at the $ 6 million needed for maintenance of Broadwater and McKinley and it cost $ 12 million to refurbish each building. Chair Bryan suggested members discuss recommendations be made to the Board as to what criteria to use when choosing projects and secondly if we want to do any building with the BAB bonds. MOTION 4 Rod Gottula made the following motion seconded by Joan Sleeth: Budgeting for Results Motion to recommend to the Board to apply the following criteria; potential energy savings, catastrophic avoidance, and educational adequacy for students for the use of QZAB and QSCB bonds. Those voting in favor were Barbara Bryan, Tom Bick, Paige Darden, Deana Elder, Rod Gottula, Bruce MacIntyre, Sandra Mammenga, Joan Sleeth, and Dan Stanaway. The motion passed unanimously. Mary Jo Fox made the following seconded by Sandra Abrahams: Budgeting for Results Motion to recommend to the Board to apply the following criteria; potential energy savings, catastrophic avoidance, and educational adequacy for students for the use of QZAB and QSCB bonds. Those voting in favor were Kathy Aragon, Mary Jo Fox, Sandra Abrahams, Doug Armknecht, Deana Elders, and Josi Wilgus. The motion passed unanimously. It was noted the EEIC Committee along with Rich Whitney compiled a prioritized list of Deferred Maintenance projects. MOTION 5 Mary Jo Fox made the motion: No second. The motion fails. Planning and Development Motion to recommend to the Board use as criteria in applying BAB bonds that they take into account the projected deficit of $ 4.5 million dollars and to preserve neighborhood schools. MOTION 6 Rod Gottula made the following motion seconded by Tom Bick: Budgeting for Results motion to recommend the Board not pursue the BAB Bonds at this time. Mary Jo Fox reminded members that if the district decides to renovate, expand or build a new school in the future it needs to happen sooner than later. A school takes at least two years to build and the window of opportunity may be shut because the District must construct a school on the Cottonwood property within eight years or the property reverts back to the city. Paige Darden questioned the use of using the BAB Bonds to build a new school and simultaneously close schools when the district is looking at a $ 4.5 million dollar short fall. Ms. Darden felt this is not an issue that can be made before September 7, 2010 without the 2010 Census Data and without doing a lot of careful consideration. Ron Gottula suggested a facility plan be complete before pursuing the BAB bonds. Those voting in favor were Barbara Bryan, Tom Bick, Paige Darden, Deana Elder, Rod Gottula, Bruce MacIntyre, Sandra Mammenga, Joan Sleeth, and Dan Stanaway. The motion passed unanimously. Sandy Abrahams made the following motion seconded by Josi Wilgus: Planning & Development Committee motion to recommend the Board not pursue the BAB Bonds at this time. Those voting in favor were Kathy Aragon, Sandra Abrahams, Doug Armknecht, Deana Elders, and Josi Wilgus. Mary Jo Fox opposed the motion. The motion carried. Thomas Harper asked if the funds for the $10 million would be split between the elementary and high school. Chair Bryan suggested a consensus rather than a motion be taken to see where the criteria takes us regarding this issue. Mary Jo Fox suggested the recommendation be made that the Board could include both as not to limit the Board. MOTION 7 Mary Jo Fox made the following motion seconded by Kathy Aragon: Motion on behalf of the Planning and Development Committee to recommend the Board of Trustees to consider both the elementary and high school projects in the $ 12 million dollars for the QZAB and QSCB Bonds. Doug Armknecht pointed out that in Motion 2 earlier in the evening the Planning and Development Committee did not vote to recommend the pursuit of a $10 million QZAB bond. QZAB bonds are for Elementary Title schools so it is a mute point. The motion was withdrawn. No alternative motion. Bridget Ekstrom stated it looks like Congress will extend the BAB bonds savings into the future. Chair Bryan asked for a motion from the Budgeting for Result Committee. Ron Gottula stated a motion was not needed because the recommendations this evening did not limit the Board to seeking bonds in the elementary or high school districts. No recommendation was made by the Budgeting for Results Committee. Chair Bryan felt all the questions were discussed. A follow up meeting may be scheduled to review and apply the criteria to pick the projects. Chair Bryan will talk with Joel Guthals, Chair for the Budgeting for Result Committee and let members know if another meeting will be scheduled. As there was no further business, the meeting adjourned at 8:50 p.m. Barbara Bryan, Chair Brenda Cross, Recorder Link to comment Share on other sites More sharing options...
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