OFFICE OF SUPERINTENDENT

DELAWARE COMMUNITY SCHOOL CORPRORATION

SPECIAL SCHOOL BOARD MEETING

WEDNESDAY, APRIL 28, 2010

5:30 P.M.

ADMINISTRATION BUILDING

MINUTES

Present: John Adams, President; Tyce Stebbins, Secretary; Norb Heban, Member; Trent Fox, Member; Darin Gullion, Assistant Superintendent; and Steven R. Hall, Superintendent

Absent: Sean Burcham, Vice-President

I. CALL TO ORDER

At 5:30 p.m. Board President, John Adams, called the meeting to order.

II. PLEDGE OF ALLEGIANCE

III. AMEND AGENDA

A. A motion was made by Norb Heban and seconded by Trent Fox to amend the agenda as presented. The motion was approved unanimously.

IV. MINUTES

A. A motion was made by Tyce Stebbins and seconded by Norb Heban to accept the minutes of the business meeting, and executive session held on Tuesday, April 20, 2010. The motion was approved unanimously.

V. FINANCE

A. Purchase over $7,500

American Elevator, Inc. DHS CP $ 4,500.00

(Previously approved: $57,295)

A motion was made by Tyce Stebbins and seconded by Trent Fox to accept the alternate bid of $4,500.00 in addition to the previously approved $57,295 as presented by Assistant Superintendent Gullion. The motion was approved unanimously.

In-house Bus Repair Corp TSP $ 16,000.00

A motion was made by Norb Heban and seconded by Trent Fox to approve the in house bus repair not to exceed $16,000.00 as presented by Assistant Superintendent Gullion. The motion was approved unanimously.

VI. OPEN 1028 AND PRELIMINARY DETERMINATION HEARING

A. Explanation of Purpose of Meeting – Steve Murphy

The school attorney, Steve Murphy, explained the purpose of the meeting was that under Indiana law whenever a school corporation proposes to construct or renovate a school building at a cost in excess of one million dollars it must first hold a public hearing. Mr. Murphy also explained another purpose of the meeting was that under Indiana Code 6-1.1-20-3.1 whenever a school corporation proposes to enter into a lease for the construction or renovation of a school building resulting in total costs in excess of the lesser of (a) $2,000,000 or (b) 1% of total gross assessed valuation of the property within the school district, the school corporation is required to hold a public hearing on its preliminary determination to issue such bonds and enter into such lease. Notice of this public hearing was published in The Star Press on April 16, 2010. The proof of publication of the notice of the hearing was available for presentation at this meeting. The purpose of the hearing is two-fold: (1) to inform the public as to the proposed building project; and (2) to allow all interested parties, taxpayers and patrons of Delaware Community School Corporation to voice their opinions as to the project and ask questions.

Mr. Murphy stated no final decisions would be made tonight, but preliminary determinations would be made. The hearing will include an explanation of the project, the financial considerations of the project and then, a time of comments and/or questions from the audience.

B. Explanation of Project and Proposed Facilities

Assistant Superintendent Gullion gave the presentation regarding the need for the renovation of and improvements to Delta High School, Albany Elementary School and Royerton Elementary School (the “Project”). The project plan was then given explaining the proposed improvements.

C. Financial Considerations

Assistant Superintendent Gullion introduced Colette Irwin-Knott from Umbaugh and Associates as the financial advisor for Delaware Community School Corporation on this project. Ms. Irwin-Knott then presented the estimated project cost and schedule to the public. As the financial consultant, Ms. Irwin-Knott explained how this project could be funded and the tax rate impact the project would have on the community.

In summary, Ms Irwin-Knott informed everyone that her presentation offered the worst case scenario for the parameters of the project. The tax impact of the project, according to Ms. Irwin-Knott does not necessarily mean a tax increase and for the purposes of this project it is not anticipated to be a tax increase at all.

D. Public Comments and Questions

Joe Russell stated he did not question the need for maintenance on older equipment. His questions were regarding the tax caps and the margin of safety for the school system to continue to pay under the tax caps of 1%, 2%, and 3%. Collette reiterated there will not be a tax increase due to this project and therefore will not impact the tax caps because it is not increasing the levies. Mr. Russell also requested information on the number of other schools in the area proposing bond issues right now? Mr. Steve Murphy, school attorney, named some other schools in the area and introduced Ms. Jane Herndon who explained how much stimulus money is available. Ms. Herndon said the bottom line is there are a lot of school corporations right now trying to get some of the stimulus money for these bonds.

Fred Prow asked where in the school budget the money will come from and how much will it be each year? He also wanted to know if this project puts us in a position where we will not have any reserves for needed projects that come up. Collette explained the annual payments come from the tax base. Superintendent Hall added we would still be raising money in our capital projects fund to maintain our buildings.

Michelle Lane asked for clarification of a technology expense from December, 2009, which she had understood would be in part for cooling the server room. Mr. Josh Landis, Director of Technology, explained the money purchased a blade server which would reduce the number of servers required in the room, but had nothing to do with air conditioning the room.

Julie Costello asked if any consideration had been given to generating money for this project in other ways without coming to the taxpayers. Ms. Costello asked specifically about the sale of DeSoto Elementary School. Superintendent Hall stated the market for that property is not good right now and the appraised value of the building and property only came in at $50,000.

Denise Thornburg asked if the items included in this project are the top priorities to be completed right now or if they could wait? Superintendent Hall stated these are not wish list items, but rather very necessary projects at this time. Board Secretary, Tyce Stebbins, stated the Board wants to be sure and address the problems and not throw good money at bad equipment.

A discussion followed between the audience and the Board regarding the average amount of money spent on HVAC each year, the amount of money spent out of the capital projects budget, and the need for conservative thinking due to the present financial situation in the county.

Mr. Kurt Schneider of Energy Solutions added the average HVAC system will last approximately twenty (20) years and Delta’s system has lasted thirty-five (35) years. The bottom line is the corporation is spending a lot of money on all of these systems just to keep them running. With Energy Solutions, all contractors doing the work will be local and you want to keep local people working right now.

Victoria Rabenstein, a volunteer with the Concerned Tax Payer’s Group, stated she has been so proud of this administration and board for being fiscally responsible with the Corporation’s money. She further stated last Thursday, Assistant Superintendent Gullion and Board President, John Adams, did all they could in standing up for the tax payers in the Delta School District.

Angela Lykins asked why the Board was taking only one proposal instead of taking more time and waiting for others? Board member, Norb Heban, said to keep in mind the Board solicited proposals, but only one company was willing to go to the expense of turning one in. Mr. Kurt Schneider added his company spent over one hundred thousand dollars on the proposal. Every contractor he accepted in his proposal is local. It will be a good quality project with all local people to stimulate the economy in the area. Assistant Superintendent Gullion added the references on the company accepted were excellent. Board President John Adams added the bid was lower than expected from estimates given by the Skillman Corporation and the Delta Maintenance Director.

Terry Reynard asked if there will be a contract on the energy savings and how will we know of the savings? Assistant Superintendent Gullion stated there will be a baseline set and sent to the state who oversees these contracts. Mr. Schneider stated if after a year’s time the savings to the school corporation is not achieved he writes a check to the school. Mr. Reynard saw a situation where there was a contract signed for energy savings and it was a scam. Board member, Norb Heban said this one will be state audited.

A discussion followed between the audience and the Board regarding the number of bids (proposals) received and how the proposals were formulated, the way school budgets work and how the bonds will be paid, the immediate need for the project and the possibility of receiving stimulus money from the Qualified School Construction Bond Program.

Lorraine Tomlin stated a 35 year old HVAC system is going to have to be replaced. Ms. Tomlin who works in a bank, stated interest rates are going to be increasing over the next 3 to 5 years. This is the best time to get local contractors and to save money with interest in the future.

E. Close 1028 and Preliminary Determination Hearing and Reconvene Special Board Meeting

A motion was made by Norb Heban and seconded by Tyce Stebbins to close the 1028 Preliminary Hearing. The motion was approved unanimously.

VII. NEW BUSINESS

A. 1028 Resolution

A motion was made by Trent Fox and seconded by Tyce Stebbins to approve the maximum parameters of the 1028 hearing as presented by school attorney, Steve Murphy. The motion was approved unanimously.

B. Preliminary Determination Resolution

A motion was made by Tyce Stebbins and seconded by Trent Fox to approve the preliminary determination of the lease terms as presented by school attorney, Steve Murphy. The motion was approved unanimously.

C. Declaration of Official Intent to Reimburse Expenditures

A motion was made by Norb Heban and seconded by Tyce Stebbins to approve the declaration of official intent to reimburse expenditures as presented by school attorney, Steve Murphy. The motion was approved unanimously.

D. Resolution Reapproving Building Corporation

A motion was made by Trent Fox and seconded by Norb Heban to approve the resolution to reapprove the building corporation as presented by school attorney, Steve Murphy. The motion was approved unanimously.

E. Resolution Approving Form of Lease

A motion was made by Norb Heban and seconded by Trent Fox to accept the resolution approving the form of lease as presented by school attorney, Steve Murphy. The motion was approved unanimously.

VIII. FUTURE MEETINGS

A. A regular meeting of the Board of School Trustees is scheduled for Wednesday, May 5, 2010 at 6:30 p.m. at the Administration Building.

IX. ADJOURNMENT

Superintendent Hall announced that one of our former teachers, Mr. Gary Thomas, passed away today. He contributed a tremendous amount to the education of our students and will be missed.

A motion was made by Tyce Stebbins and seconded by Trent Fox and Board President, John Adams, adjourned the meeting at 7:45 p.m.

JOHN ADAMS

SEAN BURCHAM

TYCE STEBBINS

NORB HEBAN

TRENT FOX

DELAWARE COMMUNITY SCHOOL CORPORATION