Wednesday's meeting will start off with the reorganization that occurs after each spring election as we elect new officers.
Other items of interest:
VII A & B: Craig will also provide us with an update on the impact on the budget of the Federal Stimulus money, and whatever other information we might have concerning state funding. As you may have heard the state will face a larger than expected budget deficit- this is likely to impact state aids to schools.
VII C: Transportation- We've heard from a number of parents concerning transportation of students to Kid's Safari for after school day care.
This year the district has provided transportation to Kids' Safari but has proposed dropping it for next year. Current District policy allows kids to be dropped off at day care centers if they are along existing routes, space is available and no additional costs are incurred. We may wish to revisit this policy.
VII D: An update concerning the Ad Hoc facilities committee. (That committee will hold a public listening session next Sunday at 6pm at Glacial Drumlin school.)
X-B: The board will consider the recommendation for adoption of 6-8th grade English Curriculum materials. Of all the items on the agenda this is the most relevant to the pursuit of our educational mission.
Under the Business Services committee section the board will also consider approval of borrowing $1.46M to fund the McKinstry Energy Performance Contracting agreement. The debt service will be repaid out of energy savings for projects performed through the contract. McKinstry will guarantee that the savings will fund the payments or make up the difference. It was initially intended to use a lease-purchase arrangement to fund these projects, however our bond counsel determined that much more favorable terms could be obtained using general obligation promissory notes.
The agenda can be found here.
Monday, May 11, 2009
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10 comments:
whoop whoop
"Under the Business Services committee section the board will also consider approval of borrowing $1.46M to fund the McKinstry Energy Performance Contracting agreement. The debt service will be repaid out of energy savings for projects performed through the contract. McKinstry will guarantee that the savings will fund the payments or make up the difference. It was initially intended to use a lease-purchase arrangement to fund these projects, however our bond counsel determined that much more favorable terms could be obtained using general obligation promissory notes."
So -we are going to float bonds on the promise of saving money off of energy is that what you just said?
...is this the same bond counsel that you know....'cause this is a swap waiting to happen.
I can just hear it in 2 or 3 years well we did not atnicpate, well we can not have forseen...here is one for you bankruptcy...what happens when this firm making promise goes bankrupt....mmmm let me c?
Honestly, we are floating bonds on a promise from a private firm that they can find energy savings to pay the bonds off?
Here is another question-did the school district put out an RFP or heck a RFI to find more favorable terms?
All good questions:
1) Should McKinstry go bankrupt in the future (this is a firm big enough to be awarded a $5 billion contract this year) we will still have the infrastructure improvements that have been installed under the plan. (McKinstry only draws the funds as they are spent on improvements). If the improvements are performing as planned then the savings will still cover the debt service and we aren't out anything regardless of the status of McKinstry. Should the improvements be underperforming AND McKinstry is bankrupt, there will only be additional costs equal to the incremental difference between achieved and anticipated performance. Effectively this eventuality would only incrementally extend the time required before the improvements pay for themselves. We have this precise same exposure with a lease purchase option as with the bond option- the financing makes no difference to this.
2) We are using the money to pay for specific infrastructure improvements to the buildings, it anticipated that these improvements will in the long run pay for themselves through energy, operation and maintenance savings.
3)The district sent out an RFQ for the lease/purchase option, the lowest bid was 4.37%. As an alternative to that the district has available $571,000 at 3% from the Alliant energy "Shared Savings Plan", on top of that we can use the GO notes. We have solicited bids and Counsel anticipates a rate in the range of 3.44%. The 1% difference in interest rates over the lease/purchase option will save the district an estimated $129,000.
"3)The district sent out an RFQ for the lease/purchase option, the lowest bid was 4.37%. As an alternative to that the district has available $571,000 at 3% from the Alliant energy "Shared Savings Plan", on top of that we can use the GO notes. We have solicited bids and Counsel anticipates a rate in the range of 3.44%. The 1% difference in interest rates over the lease/purchase option will save the district an estimated $129,000."
Is an RFQ-the same as a request for bid or does that mean Request for Questions and you just take the first girl that kissed ya.
I understand the rest of your answers and strongly disagree with the route you are taking. It is not good fiscal managment in these leans times. It is managment by MBA and this ain't some company.
It sounds like the district is betting on the come (a poker term) while taking a loan from the bank for the bet.
On the contrary, I believe the "lean times" make this program more urgent. Any examination of the state funding system indicates that times will only get leaner for WI school districts. The sooner we implement changes that reduce our operating expenses the better positioned the district will be to meet future challenges.
"The sooner we implement changes that reduce our operating expenses the better positioned the district will be to meet future challenges."
Yes-agreed-
So did you accept the contract that was never put out to bid?
Last night the board approved a resolution that will allow the district to finance the energy performance contracts through general obligation notes. After a 30 day period the district will be able to put these notes out for bid.
read the article in WSJ about the sunday meeting. At this point, it is real clear the last ref tied the hands of this district for many years to go-the data was there and it was irresponsible for all to say this would solve our problems for the next 10 years. I would leave well enuff alone and do nothing.
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