March-9-2020-Board-Meeting-Segment-4
[00:00:00] Allowing us a bit of a break and we will now return to our regularly scheduled meeting. Mr. Douglas, thank you for allowing us to shift you on the agenda and you are up next with some resolutions. Yes. Got two resolutions this evening for construction contracts. Uh, the first one being for the, um, track surface replacement for the eighth, the Creek middle school.
Um, that's, uh, a project that's on the bond list. And, uh, the track was reviewed this winter and it was deemed time to, uh, get that surfacing replaced. Um, and so we've moved forward with a cooperative purchasing agreement, um, which is a. Regional contract that's been bid. Um, and, uh, our district is eligible to use that.
Um, and so we're [00:01:00] getting that same level of pricing we experienced recently at the wood middle school track. Um, and so, uh, it's most appropriate, um, that the middle school for the few years that it will still be there as a good and functional track. And that we're able to expand those athletic opportunities for our third high school, um, when it arrives there.
Um, so staff would recommend approval of resolution 2019 dash 14 with the word of this project to Bain and field turf USA for a contract price of 245,000, $86.
Is there a motion. I will move that the board adopt a resolution number 2019 dash 14 is there a second? Second. It's been moved. And second end. Um, time for discussion or questions. [00:02:00] Mr. Douglas, how old is the current track? How long has it been there? Uh, I'm not certain of the exact year it was built. Um, I know that, um, it had been around for at least several years when I arrived in 2009.
Um, and it's expected that a life expectancy of a track would be around 10 to 15 years. Um, and the, the track, certainly visually when you walk on it, um, you can tell her that it's deteriorating and it's also, um, the rubber surfacing is coming unattached from, uh, the asphalt below, um, creating a, a spongy effect when running.
Um, so it's really an inappropriate time for the track. Have you replaced, thank you. Respond to potential. Gosh, darn.
How would you respond to concerns that we're building a track for a middle school at a site that we're planning to [00:03:00] turn into high school? Sure. Um, that's a conversation that we have very deliberately in the lead up and estimating of the bond program. Um, the determination has been made that, uh, the athletic activities, the organized sports teams, um, for, uh, area and state competition will happen at the two comprehensive high schools.
Um, and so the additional track lane with isn't necessary at this time. Um, as I said before, track surfacing is, is expected to last between 10 and 15 years. And a, there's not an expectation that those organized athletics would happen at that new high school through that time period. Um, there's a lot more implications and a significantly higher cost if you're going to add that additional square footage.
Um, once you increase what we call impervious surface area, basically hardscape, um, then you need [00:04:00] to, um, add additional storm water control facilities. Um, so it would substantially increase the cost. Um, given that it's not projected for the school to need those facilities at that high school competition level.
Um, through that time period, it's most appropriate that we spend only the money that that needs to be spent to give the students, um, a perfectly good, um, place for PE activities. Um, and other, other types of activities that might occur on the track. Um, another. A common use of our tracks that folks often don't think about is community members walking.
Um, having rebuilt a number of these over time, I've had cause to be, they're both very early and very late. Um, and there's routinely, um, community members who come and walk the tracks. Um, and so there's, there's a number of reasons why we want the track facility. Um, and there was good thought put in, in determining the scale of [00:05:00] this replacement.
It'll serve well for the third option, high school, which won't have those competitive events there. So it was, it'll suffice for what they need in terms of club and exercise. Um, and then we also have other middle schools that often have more events that their, that their own fields can't, um, often schedule.
And so having it available, um, to our. Middle schools will be great, especially with its central location. Um, when we have overbooking of middle school events, um, we can always use that facility as well. So it will be well used.
Quick question, um, does, it's the longevity of this track expected to be about the same as the tracks that they were putting in 10, 15 years ago. Do we expect another 10 or 15 years or do they improve the technology. Uh, it, it is a new generation of product. Um, it's, it's relatively new. It's, it's certainly expected to last at least that long.
[00:06:00] Um, I could quickly lower folks in the technicalities of it, um, but it's, uh, it's a much more waterproof product so that, um, the type of action we're seeing where the rubber's, um, loosening from the asphalt below, um, shouldn't be able to happen because that asphalt's encapsulated beneath the rubber. Um, so, uh, I don't, I don't have a definitive answer, but there are specific changes to the material, um, that are aimed at stopping some of those issues we're seeing.
All right. Let's call it for a vote please. Ellen hides 50. Tom sent a reg and mandatory. Yes. Cindra fetch. Oh, Kathy King. Aye. All right. The resolution has been approved.
So we have a second row resolution here. I'm centered around sports field [00:07:00] relighting for Wilsonville high school. Um, the fields, um, that we're going to be replacing this lighting on includes the baseball fields, the football field, and three of the tennis courts. Um, these are sports lighting fixtures that have been in place for decades.
Um, they are beyond the warranty for the systems. And so every time a bulb comes out or goes out, uh, we have to bring in 120 foot lift, um, and then have our own crews go up, uh, and, uh, you know, operate that lift. We up at that height. I'm replacing bulbs or doing whatever other repairs need to happen. Um, and there's also, um, you know, a large component of this that's around energy, um, than modern led systems use substantially less electricity.
Um, and they also produce a lot less light pollution. They have really good light cutoff and control where that [00:08:00] light goes. Um, we have two installations of this type of lighting system. One, it would middle school's football field if you've been there when it's in use, as well as the varsity women's softball at Wilsonville high school.
We just put that in. Um, and it's, it's a little punny, but it's night and day difference, um, in how that light cut off happens. So as far as it might affect neighbors. Um, or you know, if you're driving down the road near Wilsonville high school and you could see all the light, um, the vast majority of that goes away, um, with this new technology.
So, um, it's, it's something we're looking to implement across the high schools. Um, the bond program also includes at a later time, uh, the synthetic turf upgrade of the other women's softball field, and it will also receive the same treatment with lights. Um, so that we're improving on the, on the title nine front, um, [00:09:00] for those types of facilities.
So that's the purpose and attempt of this one. Um, so staff recommends approval of resolution 2019 15 with the word of this project to Mackow lighting for a contract amount of 688,000, $595. I move that we approve resolution number 2019 dash 15
it's not good. It's been moved and seconded. Are there any further questions, Mr. Douglas? Just when the board is being asked to approve contracts, um, it would be helpful for me if the memos were. More extensive, like for example, I'd like to know why we're relating Wilsonville or did we do it 20 years ago and they're, all the bulbs are all dead now, or we did the five years ago and it was done wrong, or there's no amount of background information.
You kind of gave us some now, but it wasn't an [00:10:00] memo. And then secondly, it would also be helpful to know how many bids we got and why we selected the bid that we did. Was it the dollars and cents or was it a reputation or, um. And with that information, this almost becomes a formality. You just did this. My perspective is those things would be helpful.
Understood. Um, so in this case, um, we're again using a cooperative purchasing contract through Casey da. Um, and so again, this similar to the running track, um, this is a nationally, um, you know, far reaching contract, uh, bid. That's done. And then, um, eligible entities such as school districts are able to use that bid result for our own projects.
Um, it's very commonly done, particularly in fields like this where local competition is relatively scarce. There's not a whole lot of companies going around installing a hundred foot tall light fixtures for sports [00:11:00] fields. Um, and certainly not ones that have the level of control and warranty that we're getting here.
Um, so, uh, just in this case, we're using cooperative purchasing. Um, but I appreciate the feedback on those memos or make sure to make those a little longer for you. Thanks chairman. Monitor. And just a quick, uh, comment, um, about, um, seeing our communities using the fields. I mean, you all know this, but that a field that's lit up at wood is just frequently in use at nighttime.
And I did recently see, um, our youth softball organization using, um, the soft, the turf softball field, um, after dark. And it was really nice to see them have access to, to that field. And. I'm happy to hear that the JV field, what we call the J D field, will also be tarped and Enlighted, so thank you for that.
Yeah. There's, um, the auditorium project will be happening at Wilsonville. They'll have a lot of the equipment that they'll need to do that field upgrade [00:12:00] on the project to do the parking already. Um, so that's why we're allowing that work to happen a little later. There'll be much more cost effective.
Alright. It's been moved and seconded and discussions concluded, so we did call it for vote please. Ellen Heights. Hasty Thompson. I regulatory. Yes. Ginger. Fetch Chelsea King. Aye.
All right. Thank you Mr. Douglas. Is there anything further? Um, we will have, I, I believe three more resolutions that we do need this forward to vote on, um, prior to spring break. So rather than, you know, um, creating a work session, if we could have at least a quorum, I'm available next week and Mr. Douglas can bring those three forward.
That would be great. So maybe at the end of this evening, when you're looking at the important dates. It'd be [00:13:00] thinking about it. Folks could call in and we could do maybe a phone in to, um, see if we can get those done. Do you want to come?
Could do another update on Corona virus.
And Dr. Hughes, when you get situated, we'd love to hear the financial report.
You're deepening. So in this presentation, I will [00:14:00] update you on the finance sold report on general fund and update you on the sales up the gender on obligation bond series 20 jaunty.
Let's see the turnaround point peninsula report, um, as our period age, the apriori 29, this presentation under the income statement, at the first portion, it shore us where we anticipate all of the revenue coming from. The second part it is finisher.  is show where the expenditure going to Spain this coming year, this year on the first column.
That's it. A work in column that, um, modify with the 1.2 million that we adopt for the supplement of book just last month and the year today projected. Um, we asked them. We work in [00:15:00] very close off track in the revenue and expenditure for this year. So I'm as are now, the estimate for the ending fund balance that I have is 8.8 million.
This is the graph that showed a comparison between the work in  and the current . Yeah. Today projected the first graph compared to revenue. And the second one, comparing the expenditure.
So now moving into, um, bond 20, 20, we have three Siri, uh, when we pass the bond of 2019. So for the bond office, whenever we pass a bond. Um, the one office you'd asked here at, we call buying 2019, [00:16:00] but for the business office and for the underwriter or the legal council, whatever year that we settled upon, that's why we call it a series 20, 20.
So in here of the 2019 bone, we have to Siri, Siri, 2028 does say one Oh 3 million. And Sierra 2020  44 million. They say only the portion of the two or 6 million that we sold, and then the rest was still later. A CRA 2020 C is the theory that we refinanced the pound 2015 and again, we only refinance a portion of task.
We'll say the 76 million. When you say that they for internet phone, they for internet pause. Um, our bond that pay [00:17:00] interest in full only upon maturity and then the current internet porn are born that we have to pay interest choice a year, one in December and one in June. So that the different between differ interests in current
So I'm on newer 22nd a team or Pao. I'm from our district alongside what pipeline? Sandler. We have a conference call with moody surface and in this conference car, um, outdoor liquid, present economic situation at our dictates a dock grow in a factor. And then I present a financial information. Um, after the conversation, they, this, they took over a week to review and do the grading.
[00:18:00] Uh, after that they came back. Yeah. Now upgrade our  from  to  three due to several credit challenges. The first one is to narrow up our reserves and in fund balance. The second one is the elevated DEP and on Bondon.
This, see the five year end in fun balance that's I presented to them. You're an L conversation that decay that in 2015 we have 6.5% ending fund balance carry forward from that year into the nest year, and then 2016 we have 7% and then a 7.4% in 2017. 9.1% in 2018 and 9% in [00:19:00] 2019 so even though our district helping emphasize grow in reason in reserve in recent year is still not meet the, uh, code a median.
The moody services when they ride in Detroit across the U S that you the median MIDI and inserted the segment, the middle value update says, so in here they bring in, Oh, the ending fund balance for our districts. Um, across the nation from the lowest one to a highest one, and they chewed a middot. So the Mudo a 22%.
So with the NY person and 6% and 7% at we hell compared to the 22% of us media, and, uh, it's considered very low.
So.
[00:20:00] So did, regardless of. They doubt grace, our writing from  to depo eight, three, uh, due to our narrow ending fund balance and a depth that we have when we went out and sold a boss, um, on February 22nd, we have seven times people want to buy our wall than we anticipated. We only have 150 million to song, but.
The number of people want to bind the money in there is 1.7 billion or seven times more. So our bond is very desirable for investor,
um, this ADA destination of officers. So not only born office or business to business [00:21:00] office, um, take care of the bond we hire. Hi by Sandler at our bond underwriter. And then we have our legal counsel, uh, muster. Rose and Shannon serve at our bond counsel. David a division serve at financial advisor. So Davison is a company that between Ross and Piper Sandler, that when Elva sack Piper sender come up with the number.
David  in the middle to work on our behalf to work for us. And what word hi by Sandra. You say, yes, that's a good investment. That not good. And last, but not, let's say, do U S bank, they serve an at Touro for us. They serve at the safekeeping. When, um, Piper Sandler's sell bond for us, the money come in us bank self and a safe keeper.
And then at the bat [00:22:00] you Espen also so at the pain agent. So when the time comes to pay the Def and encourage, they send respite boy with pay them money and they did to you out to the investor.
So that's all I have about the update. Any question. I had a couple of questions. Um, would we have been downgraded if we hadn't passed the bond? Nay now upgraded the flow. Oh yes. After. Because we passed the bond on November, 2019 and then we downgraded on January 26 and I couldn't tell is there any impact to us, the district by being downgraded.
There's no impact at all because, um, not only out Detroit, but across Oregon scone Detroit, like Hillborough, uh, Portland school district as a lab test conductor got [00:23:00] downgraded due to the reserve, a small and research that we have. Okay. So it's not impacting the price at which we borrow money or anything like that, or no impact.
Okay, thanks. When one of the, um, comments that Piper Sandler made is that what they've noticed is this downgrading that's been happening as districts are going out for bond sales and in their mind, what's happening is almost a recalibration. That, um, Oregon's been going to this steady decline and where ratings used to be, not everybody goes out for bonds every five years like we do.
So some districts go out, you know, 10, 12, 20 years. They don't have to go to Moody's every five years to get their rating updated. So they feel that it's been slightly elevated compared to the national norm. And so there's this recalibration that's been, that's going on with all school districts in Oregon.
I'm now comparing it nationally. Everybody likely will come down a notch so that it's, it's, um. [00:24:00] More comparable to what's going on nationwide. We were, we look too elevated now compared to the 22% so even when we explained, um, what's going on with purrs, they said, that doesn't factor in that you have these situations.
We just have to keep comparing you nationally. So, but as Dr. Hughes mentioned, we had over one point $7 billion worth of interest in our $150 million bonds. Nobody was looking at that downgrade as a risk factor. We also have an Oregon, what's called a guarantee with Oregon bonds. And so that, um, enhanced us to an a AA one.
So, even though we were downgrade to AA three, they gave us an enhanced AA one because we have that, um, protection of how our bonds have done, and we have that guarantee with, um, within the state of Oregon. So people could look at that as a factor, as they're making decisions about buying.
[00:25:00] So that leads me to a purrs question, uh, with the stock markets plummeting right now. Does that have any impact on our purchase rates or, um, any foreseeable impact for us? Nope. Uh, race, um, we received the employer contribution rate a biennium. So for the biennium, uh, fiscal year, 1921, the right for tier one, tier two is 24 point 25%.
And tier three, we'll say to obser States, 18.8%. So dat apply for 1920 and also for 2021. Um, but look in. Future into the future. I think when we have more time this coming year, we should bring back high by Sandler to help Carol as [00:26:00] planned, a bond for us. And that is, uh, one of the best option if we would like to take care of the patient problem.
Have one per his bond. Um, if the board wanted to consider another purrs loan or bond, um, that is a type of bond that you do not have to go for public vote. You can just decide as a board and have some figures run and look at some rates and see if you want to take an, um, look into support at first bond option.
Is that the one that we heard about in the past that the state offered? Can you refresh our memory? Is that the one where then it guaranteed a certain rate of return? Is, was that the one that guaranteed the rate of, I think you're thinking of that set aside offer that the governor that was out and we decided if we put our money into that, it would be locked in for a number of years.
So that was a set aside. Okay. A purrs bond is [00:27:00] essentially us going out for another loan to help, um, pay our purrs obligations. So life assemble. In 2014 our district went TowerFall pub on 42 million and over this year we've been saving 14 million. So we also present that information to moody. When we talk to them, they can say, say, Hey, we see that you have every five year your discharge went out for.
Bond and also you'll have a poor bond. How's, uh, how does the poor bond safe in your district? And we're presented information that what a 42 million this year it's saved rough. 14 million in it might be worth a decipher Sandler to come and do a little mini workshop and just present again what would be the benefits and is now the right time for something like that.
Again, to consider.
Um, [00:28:00] uh, a net one, hold on one second. Chelsea has one more question. Please. I could wait until you're done and then ask. Um, and it's, you know, it's maybe not even a question that can be answered right now. And I think a remote Douglas would probably even pipe in. And so it could just be a future question, but just a curiosity about, um.
What potentially could happen with the economy. I realize none of us can predict it, but if we do continue to see, um, a downward pattern, like what started, how that would impact, um, capital bond projects. So it's not necessarily something that has to be answered right now. I know it's a big question, but it's a curiosity that I'm going to have as we were rolling out several years of, you know, capital projects.
Yeah. So in, um, in the reality, the bond rate and the stock race is, um, indirect relationship.
Oh. So when the, when the stop, right. Go up, [00:29:00] the bonds go down. When, when the soft go, now again, the ball go up, this type, that relationship. So that Y in, um, uh, in February. Hi, by San called us and say, Hey, the stock race, when all the way down to 1.5% is a time to refinance our bond because the par value was at a par race on bond for the general obligation is stayed at 5% so right now the stock market out as the like one below 2% because.
When the investor is set up, invest in stock where they earn less than 2% here, buy in general obligation, bond from school and district, and guaranteed to earn at a 5% rate. People rush into buy in bond. So when stocks go down, it truly is favorable for the district.
[00:30:00] so that why when we sell our bond. No, we're, we're, we're good. I mean, there's a point where you don't want to keep playing the market too far. Um, and I think that's a Piper San Jose. We're, we're good because there's a volatility right now with the stock market economy and also with the coronavirus, you're hearing about it every day, which makes our bonds.
The security of it and the predictability of it, much more desirable. So more people are investing in bonds right now. Um, but I think what I heard you say too, is just being mindful over the years, um, with our economy that even as we do projects, what kind of costs are we getting for materials and labor and, and watching that.
So we stay within budget, right? Yeah. Okay.
But it's something we'll keep in mind as we report and give you updates. Okay. Okay. So, um, the next, uh, items is, um, the [00:31:00] resolution 2019 dash 13 distress solution, um, in the fiscal 1920 when more of director and, uh, our superintendent, dr language and, uh, into the employment contract. Um, per the agreement and also upon our superintendent request.
So would like to donate her increase salary, um, to establish a scholarship fund for students because we don't how fun. 700 700 is Destinee full scholarship. And right now we don't have that as stop. Let's, and now financial symptom. So in order to how the money put in that we have to grave fund 700 for this.
And because right now, no fun and no money. So when we put in that money from dr Lockwood. It's considered a more than [00:32:00] 10% within that category. And because it's more than 10%, we all put in for a couple of public Codman. And we did put, um, the advertise, um, what, uh, maybe a local newspaper for public to read and come if they have any common on that.
So, um, what that, if you don't have any. We're going to go ahead and close out this or just pause, essentially a recess. This board meeting, we're going to convene and open our, uh, budget hearing so. We are now opening our budget hearing and we would then take any public comment on this change. Nobody has signed up for public comment and I don't see anybody in the audience who's wanting to comment publicly.
So then we would go ahead and we'll just close that budget hearing [00:33:00] and then we can move forward towards board decision on this matter. I'll move that the board adopt resolution number 2019 dash 13
awesome. Okay, Christie. Got it. All right. It's been moved and seconded. Is there any further discussion? All right. Call for vote please. Ellen hides. Hi, Kristi Thompson. Hi. . Yes, ginger. Fetch Chelsea King. Aye. And just real quick comment of gratitude for, I mean, we born, gave you a raise and you deferred it into a scholarship fund.
And so I just appreciate, you know, your, your generosity in that fashion. And I understand something like this existed. Far less formalized fashion with fewer resources over the past years. But this is really a way to formalize that and to generate some more [00:34:00] significant resources and really put a system in place around how we award this.
And, um, you know, just generous of you and I appreciate it. Thank you. The letter I'm drafted, ready to review, to now send out to businesses out there who might like to contribute to the scholarship fund and invest in our students. So it allows us, your action tonight allows us to formally now do that because we have a line item for donation.
So thank you very much. A second, what Chelsea just said,
I don't know if you could hear that, but.
All right. Thank you, Dr. Hughes. And, um, the last item is one that I. Put on the agenda and it's just kind of a followup to something we'd originally talked to them. I'm looking to see if there is consensus amongst the board. Um, and it links a little bit to what ginger shared in her board report, but in essence, um, I'm just.
[00:35:00] Like I said, looking for some consensus if this is something you want to do, but would be to task the long range planning committee with, um, doing two things, essentially, uh, revisiting our district land holdings and. First of all, like refreshing its memory on, on the purpose of having a land big bank and then revisiting the current holdings that we have in a land bank and, and making some determinations in their opinion as to whether or not those lands still fit the district purpose.
Um, and then we would hope that they would come back and advise us on their thoughts on that matter. And then if land is currently being held. Um, that meets the land banking purpose. Uh, this other inquiry around, um, could the long range planning committee make a recommendation or recommendations to the board as to how the district could be explicit in its [00:36:00] communications with the public about its attention, intentions for the use of that land.
And in particular, we've seen this in a variety of different examples. Um. One is around, you know, um, with our, our dollar street property and then the community around that, um, growing accustomed to having that be a vacant piece of land to that, um, it could wander through and, and if people moved in, maybe after a period of time, they may not have known it belonged to the district.
Um, you could see something similarly happening to our property that used to be the crest farm where, um, the front pond development is, is developing all around that. And. Neighbors may not know that that's, you know, an active school site. If somebody were to move into a new home there, you know, or a future home site.
And how would we share that? The same would be true around Meridian Creek and further development, whether it be parks or homes around that. Those are just some examples where, you know, how, how might we [00:37:00] want to share our purpose and intention for that land with the public. So I am. Does our board have, I'm seeing some head nods that we should go ahead and, all right, thank you.
That is sufficient. And then, um, I actually am attending, uh, I get to, unfortunately, Chelsea can't be there on the 18th, the long range planning committee meeting. So I get to go and I like that meeting. So, um, I will share that. With them at that time. So thank you all. Um, that is it for tonight. And then our next board meeting will be April 6th, and we will have another joint session with the city of Wilsonville on April 20th.
or did you want to see if, um, we, you either circulate a doula poll or do you want to see tonight if there's a date next week that do you have a, I mean, could throw us out like by when, but when will you have the bids, you know, or the . Awards and yeah.
[00:38:00] of this week. Okay. Okay. So anytime next week would work for you to bring forward the resolutions. Okay. So would you prefer us to get a doodle poll going so that you can get home and check your calendars and see if you can call in, or do you want to do something tonight? And I know it's getting a little late.
Oh. Okay. It seems like doing it right now might be good. At least trying. And then if we run into some bumps, then we can, and this is something too where we could do it during a lunch hour. Could we even, or, uh, I mean D does people have a preference during the day? Okay. What if we aimed for noon on one of those days?
I'm just, okay, so now we have a time plan. Um, how about I had Monday. Monday would be great. I'm available on Monday. We have a standing of board chairs meeting. Always in fun. [00:39:00] Mondays typically are . Oh yeah. Right. So that's at least I can make it work. I need to get it in there. How long will it, we'll call it
Yeah, they're usually 30 minutes or less. Mr. Douglas, do you know how long you'll need the board members times? Hmm. Well, it'd be similar to about the time we spent this evening. On the resolutions, so about 15 minutes or minutes depending on your questions. We were saying Monday the 16th at noon, and I think, didn't we just say that that wasn't going to work because the board, because there's a standing meeting, they're saying that that is a good no.
All right, so tentatively, well, Mark your calendars for Monday at noon and Kelly will send out. You all want to make sure we post, um, within the 24 hours. Thank you. This is Martin March 16th, correct? Correct. Okay. Correct. March 16th at [00:40:00] noon, and we'll be emailed the information before, correct. All right.
Thank you. And we'll adjourn.