I'd like to call the November 26, 2018 meeting of the Derry Township School
District Board of Directors to order
and announce that this meeting is being audio recorded.
Mr. Friends, Roll Call.
Mr. Abel Here.
Dr. Cronin.
Here is Drew.
Miss, have a stick here.
There's many here.
Dr. Shore here is sicker here.
Mr. Singer. Here. Mr. Weiner. Here.
A present. One absent.
I'd like to say that Mrs.
Drew has an excused absence.
Please rise available and join me for the Pledge of Allegiance.
I have the United States of America
and to which it stands, why Nation under God,
indivisible. Mr.
May I have a motion to approve the November
26, 2018 Board of Directors agenda so moved
back a second.
Maria and Kip. Is there any discussion?
This is a standard voice vote.
All those in favor say I, I and all those opposed say no.
Okay.
The motion carries recognition of Transportation Department.
Mr. McFarland. Thank you, Madam President.
If I could have a crystal ball and go back to November 15th at about 4:00
in the morning and redo that day, I would definitely have redone it.
But looking at what we saw then we thought, wow, we could do a
an early dismissal, get the kids home before the roads got bad.
But that didn't happen.
And tonight we have before us, I'm thrilled to death
this this shows the dedication right here of our Transportation Department.
But what they did on that day, I know it was stressful having to make the call,
but I didn't have to transport home 3400 kids and do it safely.
And you guys did it.
And I can't imagine what that was like.
I know what it was driving home with just me and my car.
I can't imagine having kids behind you and that that the
pressure that was for you.
I give you my sincere apologies for having make you do having do that.
But I thank you from the bottom my heart, as we all do,
for your compassion and your dedication to get our kids home.
And with that, Ms..
Mrs. Six, I'll turn it over to you.
We have a proclamation that we would like to give you tonight.
Whereas the Derry Township School District seeks to create a community
cultivating an extraordinary learning environment,
and the district embraces the cocoa principles of community
opportunity, citizenship, ownership and academics.
Whereas service to others and being personally
engaged are a hallmark of the characteristic ownership
and the safety and well-being of the students we serve is job number one
for every member of the school district staff.
And. WHEREAS, deteriorating weather and road conditions during the early
dismissal of students on November 15th, 2018, and the dedicated men
and women of the Dairy Tented School District Transportation Department
were undeterred by the challenges of the winter storm
Advisory Avery.
And. Whereas, despite the stress of extra hours spent
navigating heavy traffic and snow covered streets,
all students were delivered safely home to their families.
Therefore, it
be resolved that the Derry Township Board of Directors and the Derry Township
School District Administrator in do hereby recognize, honor
and commend the Transportation Department staff as outstanding employees
who exemplify the mission values and beliefs of our school system.
Thank you.
What we like to do is
get a picture of all of you with our President in the proclamation.
So if you can
and you didn't want to get a picture, but oh, easier to do it that way.
Okay,
I'm here.
Okay.
So the next challenge is going to be best
I can do.
I was is probably going
to hold the front row, sit in the front
row, sit.
Say, you
they want to sit
because you're trying to give us some background.
Make sure you're in a space trying to slide.
Okay. Photography is
this because you can
slide right around the frame?
All right.
We're going to take a look at it.
Very similar of closed
door, but they're
at three one, two, one, two and three at the.
You can see here, you there are three.
One, two and three
one door.
I have a comment.
I know you all do a great job, but I just want to say that from from 2000
to when my oldest son was in second grade until now, he's turning 25 and all seven.
My children have written with Miss Linda.
I think she comes by our house four times every single day.
My kids actually said Miss Linda has driven on this road more than we have.
So thank you, Miss Linda and all of you. Appreciate it.
Thank you, guys. You
know, welcome to stay.
You don't have to.
We know you have an early morning.
Yes, that's
right.
But I miss Linda for 16 years,
three buildings, perfect,
you see, four times a day.
Now it's down to twice a day.
Thank you.
I thought they were here for Mr.
Running.
Let's
start talking money and.
Right.
Okay.
I would like to announce the board met in executive session prior to this meeting
and will meet in post exec to discuss matters of personnel and agency business
if conducted in public would violate a lawful privilege or lead to disclosure
of personal confidential information or announcements.
We have reorganization on Monday, December 3rd at 7:00.
This is an opportunity for anyone to say anything they would like to say.
Okay,
Recognition of citizens.
I don't believe we have any citizens in the audience.
They all just exited after they got their block proclamation
standing committee meeting reports the Finance Committee met today.
Mr. Singer, do you have a report? Yes.
Thank you.
The committee recommended today in accordance
with our budget development schedule for 2019,
2020, we're recommending to the full board
that they agree to live within the 2.3%
index for this year.
Obviously, it's a decision that you as individuals will make
and we as a board will make.
But the Finance Committee, after reviewing the information that was provided
to us that you all received as well, along with our discussions with Mr.
Friends, we are recommending that we live within that that index.
And I want to note that that does not mean that
we have to increase our budget by 2.3%,
but that we would
would be able to if we needed to.
I also want to note that and and the committee member
who noted this can speak for themselves if they would like to.
But it was also noted that looking at the five year projections
for for our budget going out five years
at least as it appears in the chart, it looks like
that we have a deficit each year
and that our fund balance grows
smaller with each succeeding year.
So it was it was noted that
and that we don't want to be idle,
have to switch here and allow that to sneak up on us.
And I know from previous experience with working with our business manager
that that we'll keep a close, close watch on that.
And another item is that the
board of board members themselves, if they have any priorities
that they would like to share with the business manager,
I think you need their the board priorities
expressed by when Mike
would be as soon as possible,
but we would we have a drop dead deadline, essentially the end of January.
We're move forward assuming that hearing nothing
that we're working on the priorities that we have in front of us.
Okay.
So if there's anything that anyone has that they would like to discuss,
we can probably discuss within agenda planning the possibility
of making some time at a future agenda to talk about
board priorities within the time frame that you've noted.
And the last item is going forward,
the committee will be working
with MAG to look at some of the contracts that we have
and based on amounts and ending dates
and types of services provided,
see if there's any opportunity to add value in
letting out for competition some of those contracts in the future
with an eye towards possibly gaining some savings.
That's all that I have.
If there's any other member
of the committee that wants to add anything, please feel free to do so.
Thank you.
The General Services Standing Committee met today. Mrs.
Mamie, do you have a report?
Yes, I do. It was a very short meeting.
We welcomed our two new citizen advisors, Kelly Kirton, Hallahan and Randy Smith.
And I'd just like to take a second to recognize that we certainly appreciate
all of our citizen advisors who dedicate their time and volunteer.
It never ceases to amaze me.
We had a couple of updates.
Mike was basically bringing them up to speed and giving us updates
on the Grenada Avenue project and also the concession stand.
He explained that bids have been sent out concerning Granada Avenue.
Sorry. They were sent out.
Bids are to be sent out by the end of February
so we could potentially be starting construction on the middle section
of the Granada Avenue property late April or early May.
Is that right? Might I get that right?
Okay.
And concerning the concession stand,
Mike also gave an update on that.
We will be planning in the second meeting in January
to give to come back to the full board
with a presentation from is it is it?
Hamel will be giving us
a rough schematic
drawing of what a proposed concession stand would look like
and also give us some indication as to how much that that would cost.
And that's kind of the first step in that in that process.
And then if we find that number to be palatable
or something we can work with and we can go back and get more
solid drawings that we can get a more firm number two to proceed.
But we're not that far along yet.
That's just what's coming.
So we're we're getting there.
And then the last item, which I'd like Mike, to explain,
I think he has a better handle on it than I do, and I don't want to get it wrong.
Mr. Hummel from Food Services, the director of Food Services,
came to ask to move some items around in his capital plan.
Yes. So
it's posted on the agenda for the General Services
Committee meeting free to view, but basically
he had about 3700 or $37,000 worth of projects
that were on the ticket for 1819 for this year that he would like to
He thinks he can get a little more time out of the equipment that he has.
And so we'd like to spend about $32,000
expanding our or upgrading the point of sale system.
And then and there was one other smaller piece of equipment,
I'm sorry, $27,000 in total to do that.
So came to provide that presentation
as is normal to the committee and the committee approved
to allow that to come to the full board.
So I will have or we will have at the December meeting on the agenda
a revised 1819 capital plan.
The board would have approved the capital plan for 1819 back in July.
So we're just going to bring that one item for revision to the full board.
And as those are normal process with the plan for 1920, Mr.
Hummel had a few things once again to to swap back and forth
that plan for 1920 will be brought in total at our June meeting,
as is our normal process for it to capture any other changes that may occur.
Mr. Hummel was just one of the first to have some changes for 1920,
but as normal, we may have some others,
so we wait till the end of the year to get that approved.
That was everything. Thank you.
Thank you. Student Representatives report.
We have Mr.
Mangia and Mr. Carrasco tonight.
Thank you.
Okay, so I just want to say good evening to all of you.
And we hope we hope everyone had an awesome break.
And I know that many students really
were excited to have that break and just relax and spend time with family.
And today we just wanted to update you guys on some
amazing achievements of the students all the way from sports to art.
So, Audie, so to start off, we would like to send a huge
congratulations to the field hockey team for their state championship victory.
It was their first state championship at three.
They worked really hard their entire season.
They defeated the rivals twice and they also defeated the prior
state championship stampede champions in the last in the tournament.
And it was a very successful season and we were glad to see them and it
with a victory.
And on that note of sports, we'd also like to congratulate ten seniors
who signed their national Letter of Intent to continue their athletic
and academic careers. In college.
There were students committing to dive,
swim, play soccer, lacrosse, baseball, field hockey and run track.
So once again, congratulations to those students.
And if we have enough time, can I read off the names then?
Sure. Okay.
So we have Zach Hynes.
He's going to East Stroudsburg, I think he's playing baseball.
Molly Drayer, Field hockey, University of Maine.
K Olmstead. University of North.
University of North Carolina.
Field Hockey.
Meredith scored.
University of Delaware. She's diving.
Elina SVITOLINA Joyner, Rollins College.
I think she's playing lacrosse.
Elizabeth Newman, Wargaming University.
Field Hockey.
Lacrosse.
I'm sorry, My Ben Taylor.
John Mercy University. She's playing lacrosse.
Molly Painter, Davidson College.
She is running track.
Abigail Sullivan Clarion University.
She is.
I think she's playing soccer.
Soccer, right. Okay. Yeah.
And Mikayla Tarkington is swimming. She's going to Ashley University.
We'd also like to
congratulate the cast crew and basically anyone involved with the foul play.
Our town, everyone, everyone did a really great job.
The set, the sound effects, lighting,
everything came together and created a wonderful production.
And last Tuesday at the middle school, we had our annual turkey trot.
I remember those days.
It was really fun.
The students were able to collect
more than 9600 nonperishable food items to donate to the food bank.
So the community enjoyed the holidays and the days were filled
with lots of fun for the students as they played music.
They hosted their annual Turkey Trot fashion show
and of course they had the Turkey trot run that they do every year.
We also wanted to let you know of some musical annual holiday events.
Coming up, the elementary will host their winter concert on December ten.
The middle school orchestra and choir will perform on December 4th,
and the band will perform on the 13th and after high school,
everybody will join together on December 5th and they'll have their concert then.
And we also have a volleyball tournament coming up the last full day
before winter break.
And it's a really fun time for the students
and they hope that the team can win.
And basically to wrap up, we would like to say thank you
for the opportunity to share these achievements.
And as always, if you have any questions, feel free to ask.
Great.
Thank you.
The listed items are on the proposed
December 17th, 2018 Board of Directors Agenda
Content Agenda Items.
May I have a motion to approve the contents agenda items as listed
so moved?
Second, Maria and Donna, is there any discussion?
I just wanted to say a couple of things.
I'm just really impressed with our students
and their creativity and their dedication to service those.
The two clubs that they brought forward, the Jane Austen Society Club.
Like, I want to join that club.
I think that's amazing.
And the UNICEF, I just anyway, I mean, there's a lot of awesome clubs
that are brought forward.
Those two just really like, just got me.
So I just think that's a testament to our students.
And then also the I'm sorry, have a lot of little comments.
The the U.N., the United Nations
Club, you know, the
I wish that all of our students could experience this club.
The the critical thinking and the oral debate and the conflict resolution.
There's a little line that says,
you know, students learn to work together to craft solutions to world issues.
I feel like that's something that we should all be working on right now.
So that's really great.
And I just also wanted to highlight
the approval
of 30 day review for a new policy
brought forth from the Policy Committee on
uh oh, I just wrote about nondiscrimination, diversity,
inclusion and equity.
So I'm really proud of this policy and
I want to thank the policy committee for supporting this.
This was really inspired from Jerry Township's commitment
to equity inclusion and the resolution that they passed in April of 2017
and their commitment to the All Things Diversity series, which
I think this policy is just a reflection of that.
And another promotion of that brought down to the educational level.
So I'm hoping that everybody approves that.
So thank you.
Is there any other discussion?
Okay, this is a standard voice vote.
All those in favor say I all those opposed say no.
Okay.
The motion carries
new business
approval of bond issuance Granada property.
Mr. McFarland. Thank you.
The administration recommends the Board of school
directors of the Derry Township School District authorize the administration
to work with PFM Financial Advisors LLC as Financial advisor
RBC Capital Markets as Underwriter and Bartley Snider as bond counsel
and solicitor to prepare for a borrowing that will net the District
3.1 million for the purpose of funding capital projects.
May I have a motion to approve Canady Granada property
bond issuance so moved Maria
second and Donna, is there any discussion?
Yeah.
I would
just like to repeat what I what I've said previously.
My feeling in this kind of
environment
where the district has many competing needs
that to enter into a
negotiated sale
with to predetermined or organizations
isn't in the best interest of the school district in terms of
our use of of tax dollars that
in talking with Mike,
I I'm led to believe that
we would not lose any time in the process
or and it would not cost us any additional money
to seek competitive bids
for the that the bond
underwriting portion of the of the project.
So it being if that's the case,
I can't see why as a board
we would not want to have the opportunity to see what the market
might bear and
working with PFM to to ensure
an RFP for
underwriting the bonds.
So for that reason, I just want to let everyone know that I'll be voting no.
Thank you.
I appreciate that.
You were always trying to investigate
if we're being fiscally responsible, but we did get some more information from Mr.
Friends regarding the underwriter RBC Capital in an email,
and they charge $8 per 1000 of bonds issued.
And are you okay if I read this information?
PFM provided Mike with information.
So that has so far in 2018, they have done 108 bond transactions.
Of the 108 50 were negotiated. Sale
fees ranged from as low as $7
per 1000 to $9.34
per $1,000, which is an average of $8.17.
They have done a total of 40 competitive sales.
They range from 11 $35
per thousand to $20.48 per thousand.
So $8 per 1000 is an outrageous
It is on the lower side of the fees.
And we do have a long standing, strong history with
RBC Capital.
So I don't have a problem moving forward with that.
And it's also what Mr.
Friends recommends, but I 100% appreciate where you're coming from
because you're just only trying to maximize our dollars.
I although I do feel like perhaps if we were going to entertain this,
we should have done it back in May or June.
I have a question just because I'm reading it
four times and I just want to make sure I'm clear that the two the two bond
refinancing are very similar.
One one is specifying the 3.1 million and the other one
is just saying that we're identifying which buys were re.
That's the only difference.
Right. I'm okay thank you.
After the meeting.
So the current motion on the floor is just for them to investigate
either giving them authorization to
borrow the three up to 3.1 million.
And the second one is if we investigate refinancing our bonds,
that keeps our debt service payments equal.
So there's two votes coming.
So the way the proposal is written,
it says $3.1 million for funding
capital projects.
How flexible is that wording?
In other words, what are we committing to?
The reason I'm asking is because I believe we should reconsider
spending any money on building B until a parking agreement is obtained.
Building B should be uncoupled from A
and C, the agency buildings should have been done a long time ago.
Building B and you've heard me say this before, has been abandoned
and vacant for over 20 years.
It was unable to be sold, unable to be leased,
and it is the restrictions on the building usage.
In addition to that, the renovations to make that leasable are
I think it's I think it's very unlikely that we're going to get a lease,
certainly not at prime rate. I mean,
at market rate
you're going to the the building B the floors are not even with A and C,
so therefore you would have to have an accessible entrance built
separately for building B, So I believe that we should not be
spending any money on building B, So if this commits us to $1,000,000
for the exterior building B then I'll also be voting no on this.
And just to clarify,
we voted previously to get to this stage of whether to demolish
Building B or not, and the majority voted not to.
So we're you can't just replace two thirds of a roof.
So but the buildings are separate.
They're separate buildings and and the rooms are not contiguous.
So A and C can be done without placing the roof of building
B, the exterior building B, I mean I mean, this is a
this is $1,000,000 on wishful thinking,
on hope that we're going to be able to get to be able to lease this out.
Well, we we do know to that
we have properties in the Derry Township that are expanding with housing,
with townhouses and single family dwellings,
and that the space could also be used for educational purposes,
which does not require additional parking if you bus the students.
And so I understand that it needs parking if it's going to be luxury apartments,
if it's going to be a restaurant
or a banquet hall or something, but it can't be any of those.
It can't be by lease by lease agreement,
It cannot be retail, it cannot be
that we would have to get a clearance from the trust, which is.
But it could be educational, it could be school classrooms.
Sure.
So what is the answer to the question?
Is that funding capital project?
Is that left generic or is it already pre-specified?
One of the reasons that you can tell me one of the reasons we have it
as not Granada property is so that it would have the ability
to be spent on capital projects outside of that,
although mostly that's intended for if there should be, we borrow
3.1 in the contracts, come back as two and a half million.
If we borrowed the whole amount, we still would have the ability
to spend it on something other than Granada property.
So it would still would have to be a capital
so we could spend it on capital for school safety.
Correct?
Yes. Okay.
Capital equipment,
any other discussion?
So I want to be clear then. So
we are borrowing these funds for is the the Granada property.
You should not if you are not assuming that you are spending $3.1 million
on the Granada property, you should not in good conscience approve this.
If you're thinking
that you don't want to spend it all here and you want to spend it somewhere else.
And I think I understand. Think of the interest.
Question five a and B under the agenda.
They're not mutually exclusive, right?
I mean, we'll vote on Friday and then we vote to five.
Be there.
Okay, good.
Thank thanks.
Did anyone need any further clarification?
Okay.
I'm thinking that we should do a roll call vote at this point.
Mr. Friend.
Mr. Able. Yes.
Dr. CRONIN.
Now, Ms.. Drew, I'm sorry. Mr..
Not here.
Mr.. Have stick.
Yes. Ms..
Memory. Yes.
Dr. Shaw. No.
Jessica.
Yes, Mr. Singer? No.
Ms.. Steiner. Yes.
Five. Yes. Three.
No votes. It carries.
Okay.
Thank you.
Okay.
Approval of bond refinancing. Mr. McFarland.
Thank you.
The administration recommends the Border school directors of the
Derry Township School District authorize the administration to work with PFM
Financial Advisors LLC as Financial Advisor RBC Capital
Markets as Underwriter and Borrelli Snider as bond counsel and solicitor
to prepare for borrowing that will refinance and restructure all or a portion
of its outstanding general obligation bonds series of 2012
and Series A of 2012.
May I have a motion to approve bond refinancing
so moved second, Donna and Maria.
Is there any discussion
this quarter of million dollars
that's being proposed to refinance the bonds?
Just to make this clear, we're not getting a reduced interest rate
correct on the refinancing.
Just to make that clear,
we're not. Okay.
So in the Finance Committee, we were presented a like release scenario
over the next five years of a situation which is unsustainable,
and that's given a 2% tax increase
every year for the next five years, the general fund
will be wiped out
and we will be running deficits in excess of $1,000,000.
And the likely scenario.
Consequently,
we need to ask is any money we spent?
And I get the difference between capital and operational.
I get all that.
But ultimately it comes down to repaying debt.
So any debt that we incur, is it for something that is essential?
Is it necessary?
And in looking at the smoothing out of the debt servicing that you get
for spending a quarter of $1,000,000, it doesn't appear to me to be worthwhile.
And so I don't think we should be refinancing our debt.
Just to
clarify what you were talking about from the Finance Committee,
we looked at a budget projection which most every year projects
a deficit, but we don't actually end up having a deficit.
So, you know, Mike gives us real numbers.
He doesn't make it.
He doesn't balance it to zero just to make us feel good.
So even last year with the budget, he projected $450,000 deficit
and we had a $2 million
in excess that we transferred to our fund balance.
So I understand that those numbers look scary
and what you just said could be picked up and be perceived as like,
oh my gosh, this is terrible.
By 2024, we won't have a savings account and we'll be running
a deficit of 2 million.
I don't think that's completely accurate because we fine
tune these numbers more toward the end of the budget season.
And he's just going with what we know.
We know that we can do a 2% increase on real estate taxes,
but we don't know the other unforeseen things like how much
we'll get from the state or how much we'll get for special education funding.
And those things usually do come through or we do see an increase in
certain things.
So we don't necessarily run a deficit. So
I do think we
should vote to refinance these bonds because we could still another board two
or three years now could refinance again and get a lower interest rate.
But the purpose of refinancing
the bonds was to keep our debt service level every year so that in five years
you're not going to ask the school board
to have to come up with an extra half a million dollars to pay that year.
It was really just a a way to keep it level.
And I and I know and I understand that and I understand that.
And I'm looking and I'm looking at the at the worksheet. And,
you know, it's it's
I mean, you're incurring a quarter of $1,000,000 more debt.
Okay.
That has to be paid off with interest.
And if you go out to 2026,
you know, they end up with $1.9 million less in debt service.
I think they'll be pretty pleased that your if that if that projection holds.
And it's not like these are these are surprises.
You know, I mean, there's a variation in the debt servicing each year.
You know, that you can you can plan for that.
You know what it's going to be in 2023 and 2024.
And I just think a quarter million dollars of other people's money
to smooth out your your payments is just not essential.
It's not necessary at this juncture.
Does everybody understand that
leveling out the debt service every year, the payments?
Because when I ran the numbers, you know, there were a few years where you're going
to ask the school board to have to the school
to come up with a significant amount of money
that they're not used to paying it without refinancing This in the long run.
It was on one of the sheets that we came up,
so I didn't feel comfortable doing that to future boards
when they could potentially refinance, possibly for another
down the road at some point.
I just wanted it to feel safe and take care of, be able to pay our debt
and be able to do what we need to do for the students year after year.
But that being said, it's important to note
that those numbers are known and they are part of the budget.
So each year you budget for the debt that you have,
whether it's less or more, and if other things have to be,
money has to be taken from other areas, you know that advance.
So there's no surprise.
It's not like this year, oh, my God, we have to pay 500,000 more.
You know that going into the year.
You hit the nail on the head, Dr. Cronin.
Our our
what we can do is very minimal.
So at that point,
our resources probably would be to take from something else to make that happen.
And that's exactly what we're trying to prevent here.
Because if we take from somewhere else, the program is going to suffer.
There's there's no way around that.
That's because we've set our bar so high.
We're trying to make our decisions that we won't have to affect the programs
or affect anything in the future
and make this decision now while we have the opportunity.
So that's why we're bringing it forward and looking at it
in this way, because that would be the only way we can balance our budget.
We we don't have unlimited taxes increase, so we can only raise our revenues
up for so much.
And then reducing expenses would have to be the other side.
Reducing expenses equates to reduction in programs.
We don't have that much extra left
over that we can cut something and not having not have it have an effect,
not necessarily programmatic.
I'll be obviously programmatic is usually the bigger ticket items, but you don't
necessarily have to take the money from programs.
We have to take it from where it's available.
So I can't take money from
from electricity
because that's what we need to operate the buildings
Just when we boil it down and we've worked through this,
there are a lot of places that you have the ability to go in and make those
those changes on a year to year basis.
I'm sure
it's possible and maybe it's just right in front of me.
But what what will it cost us
to refinance these bonds?
What what what is the bottom line
cost to the school district for refinancing these bonds,
These that we're noting?
It's about $270,000. That's what kips are.
That's what he's referring to as the quarter of 1,000,200 interest
plus the financing over eight years. Correct.
Over the life of the remaining life of the bonds, that that is correct.
To buy that time to essentially push
other bonds out to future years so that that smoothing can be done.
Yeah yeah.
You know to
I don't think that makes any sense at all.
It also increases
that that doesn't include the increase
on the bond issuance costs, does it or doesn't?
It's $8 per thousand rate.
So that's the amount that I noted is net all costs
includes all costs.
Okay.
Yeah, but I see this as an investment to continue with the standard that we have
so that we don't just fall off a cliff in the future.
So this is seems like a lot of money, but over a period of time
it actually ends up to be more money for us to continue
with the same level that we have been doing all along.
That's how I interpret it. So what would the cliff
here?
What would the cliff be?
So in next year, not so bad.
40,000, 20, 2000, over
100,000, 20, 21, 200,000 might get above what we're normally paying.
So you're going to ask, you know, so there's our normal amount
that we usually pay about $4.9 million a year in debt service.
And then, you know,
the worst case scenario is in 2025 that bumped up to 5.2 million.
So, you know, that could be $250,000 more that
they have to come up with to pay that annual debt service.
This refinancing allows us to stay at 4.9 consistently the whole time and never ask
a future board to come up with another $200,000 that they don't have.
And what mean, Mike, seen as the only way he can come up with
that is potentially cutting back something else.
It's like an insurance policy like baking in that fees.
I don't like it either.
Like I don't want to spend the money either,
but I want us to be comfortable enough to continue this in
sustaining what we're already giving.
I would propose that we that we would look at that 1070 that we'd be that
we could potentially save and spread that over where we need to level off.
And then also look, take the amount that would be increased every year,
added up divided by those number of years and make that be the target.
Then we look at and if we have to
make some,
I don't think we'd have to I don't think we'd bring down off a cliff.
I think we might have to not be as extravagant.
And one example might be and this might not be a good example, but
one on one iPads, three year rotation on it.
If that's correct, let's make it a four year rotation or whatever.
I think there are ways that we can be smart
without spending 270,000 for the security.
I would rather take that to 70 and work that into our current off balances.
I'm just trying think how I would
do in my own home financing and I wouldn't spend a lot of money to make my budget
even I would just try to control my cost, just my own personal,
you know, I
get my iPhone for a third year just so I have two payments that year.
You know, it's interesting, you said we just had a technology
presentation at the Finance Committee and there really was no shaving off a year
for iPads. Like they come into a contract, they're replaced every four years.
They have the Apple contract, for example.
But that's that that's the way I'm thinking. We don't have to pay.
And we reviewed the whole contract list to see where we can save money.
And, you know, we might to 30,000 here, ten there, but we're not talking about
being able to shave $200,000 off of something.
I mean, I, I just think it's
I don't like it either that we have to spend the money.
But I like making future our future budget
secure with a debt service payment that's locked.
This was the first thing
that I'm not a financial person at all.
So this is hard for me to conceptually wrap my head around.
But I just remember as a new board member, Brian Shiflett
gave this amazing workshop
and the fall before we before some of us joined the board,
and that was like the first fundamental thing
to like school board finances was this is what you do
to invest in a future to make sure that you have this continual
build so that you're not facing these big,
you know, situations.
Yes, these big fluctuations so that you can maintain a consistent
academic program.
And to me, like
it's it's more scary to me
to have to like $270,000.
$1,000 doesn't.
It's it's a lot of money.
But we would be faced with a lot more money if we didn't spend
that over the eight year period because we would
we wouldn't have that money in the bank that's already there.
And then we'd be looking to supplement what we lost in our investment
and continuing with the bond.
So, Mike, do you agree with that, like what
Tricia is saying that most likely we would spend more?
Absolutely.
That's why I mean, this is the recommendation
of the administration that we that we go through with this financing,
because that's what I believe
is in the best interest of the school district for the long term,
setting us up for our budgets.
And also including that
there are a ton of unknowns
out there that things that we can't even think of
right now today that are going to affect our budget in five years.
And so I want to make sure we have the ability to react to those
and are wishing or hoping target.
I wish, you know, we'll be sitting here in five years saying,
I wish we could have spent that money
to refinance that instead of going through those options.
So I'm just trying to what I believe is in the best interest of the long term
for the district
is this refinancing, because it provides that that stability.
Right.
Because you feel strongly that most likely we would spend more than that
in the next five years because of what Tricia said and what you've explained.
Correct.
That those that those increases will would would come along in in other ways,
not necessarily directly related back to the debt, because we may not have
a need to go borrow any more money in the next four years.
But in other ways, yes, but but you're not really spending more.
You do spending a disproportionate every year on what we know,
what we're spending already. We're not going to spend more.
It's just it goes up and down, but we're not spending more dollars on on debt.
But then we're taking that and having a larger conversation.
How that debt that impacts our entire $60 million budget dollars
in general, if that's what you're asking, it's not like it's going to cost us more.
It's just that we know how much the debt is going to be and it just fluctuates.
But it's not going to grow just because we didn't borrow this,
right.
It's not like she asked if we'd be spending more money,
but it could cost us more.
Yeah, if we don't invest.
If we don't invest now to maintain our sustainability for the future
and if that money is no longer there, I'm envisioning that bar graph.
We get to that point, that bond is gone.
Then we have to look at our budget and real numbers and real time
and take away programs in order to balance our budget
instead of having that money there to draw from. Right.
So this is a more conservative approach, but it doesn't
it doesn't necessarily mean that you would have to do that.
But if you did, then it would cost more
because you made it sound like a black and white question.
I don't think it is.
Well, it's an unknown.
It's an unknown.
And it would be it would be a big risk.
And not maintaining that sustainability.
I mean, to me,
$200,000 is not a not a cliff.
No, that wouldn't be the cliff that's the that's what we're spending over.
And our investment money to invest in making sure we don't fall off the cliff
when that bond is no longer sound like what Kathy was saying
earlier is that the payments, the debt service payments goes up.
Goes up inefficiently.
Yeah, it goes up $200,000. Yeah.
For many years.
Right.
We're Refinancing the bonds to keep the debt service payment at 4.9
million consistently until 2026.
If we don't do that, the debt service
increases at some point up to 250,000.
You have to go and find that money.
Tax increase, cutting programs
and you're pushing that off to a future board.
You're spending the money to make it
one payment per year.
And I don't think we can assume that we'll have to cut programs.
I think there's a lot of other things that could happen along the way,
including revenues being greater than we would expect, which has happened
pretty consistently.
It seems like, even though I know you can't count on that,
is there any discussion,
any more discussion?
Okay. Mr.
Friends, roll call that.
Dr. CRONIN.
I'm sorry, which one we're voting on now?
Being sorry, refinancing.
Now, can I ask a quick question?
What if this does not go through?
Where does that put us if we vote no,
it's just the refinancing won't occur.
Okay,
That's
and I think that's you know, there's not necessarily right.
I have my very strong opinion, which of course I think is the right one.
But there isn't necessarily a wrong.
This will just have those essentially those those blips
in our for our financing for future boards.
That's that's what it will provide.
And not to say that refinancing couldn't happen
and it probably won't even the standpoint that we would come back
and say we can save dollars because of the economy the way it is
and that these bonds were paid off in eight years anyway.
So I would hesitate to say there would be future refinancing available.
But that's that's a small possibility.
But that would be the effect of this.
We've already dealt with the new money for the Granada building
and this is just the refinancing of the 2012 and 12 bonds.
And your recommendation is is. Yes, correct.
Your years of experience,
all the information that you have running school districts for many, many years.
Yes. Much more than what I would have.
Okay. Thank you.
Sorry to
Miss Tavistock.
Yes, My memory.
Yes, Dr.. Sure.
No massacre?
Yes, Mr. Singer? No.
Miss Stainer?
Yes, Mr. Able? Yes.
Five. Yes.
Three. No.
Okay.
Approval of bus purchase. Mr.
McFarland, The administration recommends the board approve the purchase.
The listed busses
utilizing the National Joint Powers Alliance Cooperative Purchasing Contract.
In lieu of the bidding process for school busses.
The delivery date would be no later than June 20th, 2019.
May I have a motion to approve the bus purchase?
So moved Maria second.
Tricia, is there any discussion?
I have a question.
So the 48 versus the 77 passenger, what's the
I mean, there's not like
there's just a small difference in price, but the bus is 48 versus 77.
What's the difference and why are need and exactly
where are those busses where that bus may be going?
So there are some places that a 77 passenger bus
cannot safely maneuver in and around the township.
So we've a few of the smaller ones that get assigned to those those areas. So I
thank you.
This is a standard voice vote.
All those in favor say I always opposed say no to the motion
carries may have a motion to approve that listed resignations
so moved Donna
second Tricia is there any discussion?
This is a standard voice vote.
All those in favor say I was opposed.
Say no.
Hear the motion carries personnel.
General. Mr.
McFarland, the administration recommends the approval of the listed personnel.
May I have a motion to approve personnel, General?
So moved.
Second, Donna and Maria, is there any discussion?
This is a standard voice vote.
All those in favor say I.
All those opposed say no.
Okay. Delegate reports.
Mrs. Havas, do you have a Dauphin County Technical School report?
No, no, Actually, it's
going to be attached to your next board minutes.
It was just too quick of a turnaround with the holiday for them
to get it ready and approved.
And so it'll be attached to. Your next one.
Okay. Thank you.
Mrs. Mimi, do you
have a CAIR delegate report?
Mine is actually attached for anybody that would like to read it.
Okay.
Harrisburg Area Community College.
Dr. Shah?
Yes. Nothing to add to the report that is included with the board brief.
Okay. Thank you.
And also also Dauphin County Times Association report.
Dr. Shah,
the only comment on this is that of the 52 taxing entities,
only 25 are represented as there was no quorum.
All action items will have to be then
affirmed by
at the next meeting.
Presumably there'll be a quorum.
That's the only thing to add to what's in the packet.
Okay, thank you.
Special reports.
Are there any board members who would like to give a report?
If I may, Madam President, briefly, just on behalf of the Downtown
Hershey Association, to remind folks this Friday from 5
to 8 as the holiday celebration at Chocolate Town Square,
open free, get some hot chocolate and get in a holiday mood.
Thank you. Okay.
Thank you.
I have a report.
Okay.
I have three things.
One, I just want to say that I went to the turkey trot
last Tuesday at the middle school, and it was really fun.
It I'd been to the race part before, but I went inside the gym and saw, like, the
the fashion show.
And it was it was a lot of fun, really creative.
And so I just want to thank all the teachers
and staff and administrators that do that every year and support that every year.
It's it was it was really fun to be there.
The second thing I want to report is just that the Derry Township
Tax Association met last week and we just approved a budget.
So that will be coming to the school board on an upcoming agenda.
So yeah, December 17th probably.
And then also I went to the
All things diversity meeting,
which was on
bias, anti-bias training, equity inequality.
It was it was really great.
It was just about acknowledging your potential
for your own biases and every interaction that you have with with someone.
So just to acknowledge that and recognize that and how it influences your decisions
and just to try to, you know, give yourself a time out
when you feel yourself having it because everybody has it.
It's, you know, it's one one comment that he made was that, you know, we it's
we're hardwired to have bias
to find our tribe and to find differences.
It's acknowledging that
and trying to combat that and and work
against that to make sure we're just looking at everybody and their humanity.
So that was really interesting. The next
the next All Things
Diversity series is going to be in January,
on January 23rd, about addressing
micro inequities and microaggressions.
I think you and the other board
member reports.
Mr. McFarland.
Do you have a superintendents report?
I do.
First, I just hope that everybody had a wonderful Thanksgiving
and enjoy their time with their family and friends.
And I want to echo
the congratulations to our triple-A state championship field hockey team.
They worked so hard and we're just incredibly proud
of their teamwork, their sportsmanship and the effort that they gave.
And we'll have a formal recognition of them, the team at our December
17th meeting.
And I'd like to turn the rest of my time over to Mrs.
Smith.
Thank you, Mr.
Macfarlane.
In just a few minutes, the students are going to help me with something special.
I wasn't sure if this was going to be my last board meeting with all of you
because I wasn't sure about some other things that had in December.
Turns out it's not going to be my last meeting.
But Joe and I decided we will still move forward with this this evening.
And so Mr.
Macfarlane has graciously yielded his time to me
in my 25 years of being a school district solicitor.
I have spent more time with this board than with any other board,
and I think it's predominantly because you have two meetings per month
and you want the solicitor to come to those meetings.
We have shared meals, we have debated issues, we've worked through conflict,
we've grown professionally and we have laughed many times, many times.
During my time at Derry Township, I value each of you individually
and collectively, and I certainly value the administration as well,
although I really shouldn't have a favorite board or district.
And Monica, I'm asking that you not publish this.
I believe that my connection with Derry Township
is probably my strongest and most enjoyable,
and because of that I wanted to do something special for each of you
as I move on to other opportunities.
So as I debated what to do, I thought, Well, what do I like to do?
I'm a reader, I love to read,
I treasure books, real books, and I kindle real books that I can hold
and smell and touch and turn pages and do whatever I want to with them.
And I appreciate all genres of writing.
My parents read to me and my siblings all through our junior
high years and high school, and they encouraged us to read.
And even when money was tight because my dad was a teacher in rural Ohio
and my mom was a piano teacher, even when money was tight,
they allowed us to buy books through the school book sales,
and I think it was probably through Weekly Reader, which probably is now defunct,
I'm not sure, but that was such a highlight to get that book
last and get to go home and pick out two or three little paperback books to read.
So when I thought about what I wanted to do for you, books came to mind.
I thought about each of you
and what I know about you or what I have observed about you.
And I researched
and created
a list of books, and I looked online for what
teachers recommend or what I personally like for grades K through 12.
That had certain themes that represent some aspect of you,
certainly not all of who you are, but some aspect
that you have shown repeatedly in your time on the board.
I sent the list to Stacey and Joe and asked for their approval.
I certainly didn't want to buy any banned books.
40 banned books, not banned,
with one exception on which the content was a little bit over the top.
Every book that I had suggested was approved, so I started to buy
one book for each of you in appreciation for each of you,
but there were too many good choices.
So I ended up with two books for each of you
and one for Stacey and Jason and Dan and Mike, two for Joe.
All of those fit a particular theme for you.
So and I apologize to Ms.. Cross.
I did not know she was going to be filling in today.
So I have a business card in your to email me some of the things you like
and we will rectify this.
But the students are going to distribute your books to you.
Now, the books will be donated to a library within the school district.
So we have a bookplate in each book that has your name in it.
And then I want you to take a few minutes, look them over,
and at the end of the meeting, if you would please return them to Stacey
or to Joe, they will see that they get assigned to the appropriate library.
I do have for those of you who are curious and want to know
who got what books and what things, I do have a list,
so I'm passing out the list of you.
And certainly if you want to Google them
or look them up, you're welcome to do that.
So as you receive your books, thank you for allowing me the opportunity
to serve this district.
Thank you for sharing a bit of yourself with me
and thank you for your professional friendship.
I truly, truly appreciate my time with you.
Thank you.
I think that's the most thoughtful thing
I have ever experienced.
I can easily send money
to my husband.
Ask if I only got your book each.
I hope he doesn't listen to our audio
recording down just.
Oh wow.
Oh, everybody's busy looking at their books.
Mrs. Smith, would you like to clarify
what we're to do with them after their we read them?
I do have a box.
It's by they over on the side.
So once you've taken a look through them and you don't have to write anything down
because it's on the list that I gave you, if you'll just put them in the box,
then Joe or Stacey will make sure they get to the appropriate library.
So thank you so much.
Thank you so much.
This is so thoughtful and I'm having a hard time. Not
Yeah, just the fact that,
you know, especially for a newer member and
those of us that are newer on the board, the fact that you've been able
to peg our personalities and what's important to us
is really meaningful.
So thank you.
I'm so excited.
And I now have a great reading list for the holidays.
Thank you.
Can choose,
but I know that's really nice.
Everybody's alive right?
Thank you so much.
Hey, that note
board president report.
I did want to also
talk about the all things diversity meeting as well that I attended.
Tricia was there.
You hit most of it.
It was Dr. Paul hate it.
And he actually has at least one child in the district of high school.
I don't know if he has more, Jonathan, which I thought was so cool to see
one of our students
parents and what he does in the local community.
He is a professor of medicine and humanities and public health at Penn
State College of Medicine, and he works directly with medical students and medical
residents, too, in overcoming their biases and their unconscious biases.
So we actually teach us this at the College of Medicine
to up and coming physicians, which is just incredible.
The whole and we did
small group exercises and partner exercises to identify our own biases.
And that concludes my report.
This is recognition of citizens.
I don't see any citizens in the audience at this point.
I would like to come forward
the reorganization meeting of the Board of directors
open to the public and will be held
December 3rd in the District Office Board of Directors Room.
The following Public Board of Directors meeting will be held December 17,
starting at 7:00 in the District Office Board of Directors Room,
and we are going to be adjourning to Post Exec.
May I have a motion to adjourn?
So moved second,
I don't know.
Maria and Donna, all those in favor say I was opposed.
Say no. And we are adjourning at 805.