Board Finance & Facilities Committee Minutes – March 2, 2020

District Mission: The Sioux City Community School District exists to educate students to believe in their talents and skills, achieve academic excellence, and succeed in reaching their potential.

Facilitator: Dr. Paul Gausman
Secretary: Melissa Weber Peterson

The Board Finance & Facilities Committee (BF&F) met on Monday, March 2, 2020 in the
Educational Service Center Board Room. Copies of the Agenda and the following Executive
Summaries were available:

  • Student and Teacher Device Lifecycle Purchases
  • Acceptance of the Student, Staff and Teacher Device Contract
  • $15,108,000 School Infrastructure Sales, Services and Use Tax Revenue Bonds, Series 2020: Consideration of Financing Proposals and Resolution Directing Sale
  • FY21 Budget – Final Review of All Funds
  • Hail Damaged Roofs and Vertical Metal Replacement Project
  • Waste and Recycling Disposal Bid
  • High School Domestic/Potable Water Pipe Replacement Project-Phase 2

Committee Members Present: Dr. Paul Gausman, Patty Blankenship, Brian Fahrendholz,
Ron Colling, Dan Greenwell and Taylor Goodvin

Committee Members Absent: Patty Pageler

Guests / Visitors: John Pritchard, Dr. Kim Buryanek

Call to Order: Dr. Paul Gausman called the meeting to order at 3:00 p.m.

Acceptance of the Student, Staff and Teacher Device Contract: John Pritchard

  • The District issued a request for proposal to establish pricing, a relationship with a manufacturer and on-going services for student, staff and teacher devices.
  • The District received three responses.
  • The recommendation is that the Board of Directors approves the contract with Sterling Computers for purchases of student, teacher and staff devices through FY21.
  • This item will be included on the agenda of the March 9, 2020 Board meeting.

Student and Teacher Device Lifecycle Purchases: John Pritchard

  • To request Board approval to purchase student and teacher devices under the approved contract with Sterling Computers.
  • This request is for 1,000 student devices (Dell Latitude 3190) and 100 teacher devices (Dell Latitude 3390 2 in 1 XCTO).
  • The recommendation is that the Board of Directors approves the purchase of 1,000 student laptops ($294 each) and 100 laptops for teachers ($634 each) for a total purchase price of $357,400.
  • This item will be included on the agenda of the March 9, 2020 Board meeting.

$15,108,000 School Infrastructure Sales, Services and Use Tax Revenue: Patty Blankenship

  • To issue approximately $15,108,000 School Infrastructure Sales, Services and Use Tax Revenue Bonds, Series 2020.
  • The financing proposals are due March 6, 2020 at 3:00 p.m. Tim Oswald will prepare a summary of the bids received and make a recommendation.
  • The recommendation is that the Board of Directors adopts a resolution directing the sale of $15,108,000 School Infrastructure Sales, Services and Use Tax Revenue Bonds, Series.
  • This item will be included on the agenda of the March 9, 2020 Board meeting.

FY21 Budget – Final Review of All Funds: Patty Blankenship

  • The FY21 Budget – Final Review of All Funds was presented.
  • The PPEL Fund, Sales Tax Fund, Student Activity Fund, Debt Service Fund, and School Nutrition Fund were briefly discussed noting no material changes from the previous presentations.
  • The Management Fund estimated revenues decreased by $800,000, reducing the tax levy rate from $1.78 in FY20 to a proposed rate of $1.25 in FY21. An additional $0.27 decrease from the February 10, 2020 presentation.
  • The General Fund estimated revenues are $180.2 million. This revenue estimate is from the FY21 preliminary aid and levy worksheet.
  • The proposed general fund levy is $12.00 versus $11.80 as presented in the February 24, 2020 presentation. The change is due to decreasing the income surtax rate from 3.0% to 2.0%.
  • FY21 targeted expenditures were reviewed as well as the proposed budget reductions and increases and additions.
  • The general fund expenditures by function were presented.
  • A summary of FY19 expenditures for travel (object code 0580) and purchased professional and technical services (object code 0310 to 0349) was reviewed.
  • The committee members requested that FY20 budget and FY20 year to date expenditures be added to the summary.
  • The proposed property tax levy rates were discussed. General Fund levy rate of $12.00416, Management Fund levy rate of $1.25333 and PPEL levy rate of $0.33. Total levy rate of $13.58749. These levy rates may change once SSA is final and District income tax paid in 2018 is available.
  • The proposed income surtax rate is 2.0%. The income surtax partially funds the Instruction Support Program.
  • There was discussion about whether the property tax levy rate should be further reduced versus reducing the income surtax rate from 3.0% to 2.0%.
  • District administration will present two options to the Board of Directors.
  • Option 1: Property tax levy rate of $13.58749 and income surtax rate of 2.0%. (Property tax levy rate subject to change once SSA is final and District income tax paid in 2018 is available.)
  • Option 2: A lower property tax rate and income surtax rate of 3.0%.
  • The recommendation is that the Board of Directors acknowledges the information presented related to the FY21 budgets for all funds and allows for publication of the District’s FY21 budget and sets a hearing date of April 14, 2020.
  • This item will be included on the agenda of the March 9, 2020 Board meeting.

Hail Damaged Roofs and Vertical Metal Replacement Project: Brian Fahrendholz

  • Sealed bids were received and publicly read on February 25, 2020 related to the Hail Damaged Roofs and Vertical Metal Replacement Project.
  • The recommendation is that the Board of Directors accepts the low bids from 10 Men Roofing L.L.C for Morningside Elementary, and awards a contract in the amount of $235,000 and JC Roofing and Insulating for Nodland Elementary, East High School and West High School and awards a contract in the amount of $651,694.
  • This item will be included on the agenda of the March 9, 2020 Board meeting.

Waste and Recycling Disposal Bid: Brian Fahrendholz

  • Sealed bids were received and publicly read on February 25, 2020 for awarding a contract for waste and recycling disposal.
  • The agreement will be for a period of three years starting July 1, 2020 ending June 30, 2023, with annual reviews of pricing and service.
  • The recommendation is that the Board of Directors accepts the low annual bid from Western Disposal in the amount of $146,808.
  • This item will be included on the agenda of the March 9, 2020 Board meeting.

High School Domestic/Potable Water Pipe Replacement Project – Phase 2: Brian Fahrendholz

  • Bids were received and opened on February 18, 2020 for the High School Domestic/Potable Water Pipe Replacement Project – Phase 2.
  • The recommendation is that the Board of Directors accepts the bid from Mullen Company and award the contract in the amount of $99,972 for the High School Domestic/Potable Water Pipe Replacement Project – Phase 2.
  • This item will be included on the agenda of the March 9, 2020 Board meeting.

The next meeting of the Board Finance & Facilities Committee will be Monday, March 16,
2020 at 3:00 p.m. in the ESC Board Room.