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I LIKE TO CALL THE MEETING OF THE BUFORD COUNTY BOARD OF EDUCATION AND FINANCE COMMITTEE TO ORDER APRIL 7TH, 2020 TO 5:00 PM.
CONFERENCE ROOM E IT'S A REMOTE HYBRID CONFERENCING MEETING IN ATTENDANCE.
TINA ROSS, MR. EARL CAMPBELL, DR.
WE HAVE MEMBERS, BOARD MEMBERS, STEVEN STURBRIDGE MIRROR ALSO AS WELL ON WORD OUR FIRST, UH, CO OH, THIS WILL BE LIVE STREAMED ON THE COUNTY CHANNEL.
AND FIRST ITEM IS THE PLEDGE OF ALLEGIANCE TO JOIN ME IN THE PLEDGE.
I PLEDGE ALLEGIANCE TO THE FLAG, TO THE REPUBLIC FOR WHICH IT STANDS ONE NATION UNDER GOD, INDIVISIBLE WITH LIBERTY AND JUSTICE.
THE NEXT ITEM ON THE AGENDA IS THE APPROVAL OF THE AGENDA.
DO WE HAVE A MOTION TO APPROVE THE AGENDA? ROZ, I MOTION FOR GENDER, MR. CAMPBELL, AS A MOVE TO THE AGENDA, BE APPROVED AND SECONDED BY DR.
ALL THOSE IN FINGERS TIE BY SAYING, AYE.
WE HAVE A UNANIMOUS CONSENT PUBLIC COMMENTS.
ARE THERE ANY PUBLIC COMMENTS, PUBLIC COMMENTS, THE MOVE TO APPROVE THE FEBRUARY 10TH, 2022 COMMITTEE MINUTES.
DO I HEAR A MOTION TO APPROVE THE MINUTES UNDER BRAS? YES.
WE APPROVE THE, UH, COMMITTEE MEETING MINUTES.
UM, AND I'M NOT SURE THE DATE ON THE AGENDA.
SO SALARY AND THE DATE ACTUALLY ON THE MINUTE SOCIO LAB, DO YOU KNOW WHICH IT IS OKAY.
YEAH, BE THE FINANCE COMMITTEE MEETING AND IT'S FEBRUARY 11TH, 2022.
SECOND SECOND FROM MR. CAMPBELL AND DISCUSSION HEARING BOTH ON A MOTION.
WE ARE NOW IN THE NEXT ITEM ON THE AGENDA, THE 2021, HE BOND REFUNDING OPPORTUNITY AND TERM SHEET DOCTOR MS. CROSBY LIKE, YES, SIR.
UH, HERE WITH US THIS EVENING IS RYAN MERRICK OF COMPASS MUNICIPAL ADVISORS.
AND BRIAN BUILDS EACH DOING, UM, UH, UH, RE PRESENTATION ON THE REFUNDING OPPORTUNITY BEFORE YOU TODAY.
SO WITH THAT, I'D LIKE TO TURN IT OVER TO BRIAN.
WELL, GOOD AFTERNOON EVERYONE.
UM, SO I WROTE A, A, A, A SUMMARY MEMORANDUM REGARDING THIS OPPORTUNITY AND, AND THIS, UH, THIS, THIS REFUNDING IS THE GIFT THAT KEEPS ON GIVING.
UM, AS YOU ALL RECALL IN THE, UH, THE WORK SESSION THAT I GAVE ON, WE CALLED THAT DAY.
UM, I WENT OVER IN GREAT DETAIL, THIS REFUNDING, WE, UH, SOLD THE BONDS IN SEPTEMBER.
WE PHYSICALLY CLOSED THE BONDS IN DECEMBER.
WE ALSO INVESTED THE PROCEEDS.
AND SO THE FIRST PARAGRAPH OF THE MEMORANDUM JUST RECAPS WHAT W WHAT I EXPLAINED AT THE, UM, AT THE MEETING THAT, YOU KNOW, WE NETTED 1.8 MILLION IN SAVINGS FROM THIS REFUNDING.
UM, I WORKED WITH TD BANK, UM, ON ANOTHER LOAN PRIOR TO THE BEAVER COUNTY SCHOOL DISTRICT FOR FUNDING.
AND THEY'RE PRETTY, UM, OPEN MINDED IN, IN, IN FAIRLY, UM, ASTUTE IN IDEAS AND IN, IN DISCUSSING DIFFERENT OPPORTUNITIES ON BOTH SIDES OF THE TRANSACTION AND BECAUSE THIS IS TAXABLE, AND THEY'RE A, YOU KNOW, AN ENTITY THAT PAYS TAXES, UM, THERE'S A DIFFERENCE BETWEEN A TAXABLE RATE AND A TAX EXEMPT RATE.
SO I WENT TO THEM ON THE OTHER TRANSACTION, AND THEN SUBSEQUENTLY ASKED IF THEY WOULD DO THE SAME THING ON THIS TRANSACTION, IF THEY WOULD BE INTERESTED IN WAIVING THEIR PREPAYMENT PENALTY AND ALLOWING THE SCHOOL DISTRICT TO REFINANCE AT THE COLUMN EIGHT, WHICH WOULD BE IN MARCH OF 2024.
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SOMETHING THAT WOULD OCCUR IN Q1 OF 2024.AND IF SO, WOULD THEY PRESENT THE SCHOOL DISTRICT WITH THE TERM SHEET TODAY THAT WOULD, UM, GIVE A NEW INTEREST RATE ON A TAX EXEMPT BASIS? UM, SO THEY HAVE DONE SO, UM, INCLUDED IN, IN THE, IN THE MATERIALS THAT I HAVE SENT, AND THEY'RE WILLING TO ALLOW YOU TO, UM, GO THROUGH THE PROCESS OF A REFINANCING WHERE YOU AT ADDITIONALLY, UH, LOWER THE RATE FROM A 1.5, 1% TO A 1.2, 3%.
AND SO WHY WOULD THEY DO THAT? WELL, UM, IN THE, THE REFUNDING REPORT, WHICH IS NOW ON THE SCREEN THAT SHOWS THE CASH FLOWS OF THE REFUNDING, YOU CAN SEE THAT FROM THE SCHOOL DISTRICT'S PERSPECTIVE OF TOP, WE HAVE PRIOR BOND PAYMENTS, WHICH ARE ESSENTIALLY OUR NEW BOND PAYMENTS.
AND THEN WE HAVE, UM, A NEW BOND PAYMENTS WOULD BE IN THE FUTURE 20, 24 REFUNDING BOND PAYMENTS.
AND SO THE DISTRICT AFTER ALL FEES, EXPENSES WOULD NET AN ADDITIONAL, UM, 2 MILLION, I'M SORRY, $261,000, WHICH WOULD PUSH THE SAVINGS IN TOTALITY TO 2.1 MILLION.
UM, FROM, FROM TD BANK'S PERSPECTIVE TO THIS, I THINK IT'S BENEFICIAL TO UNDERSTAND EVERYBODY'S VIEW FROM THEIR PERSPECTIVE.
THEY'RE LOOKING RIGHT NOW AT ERNIE 1.5, 1% TAXABLE.
SO THEY STILL HAVE TO PAY TAXES ON THAT INTEREST.
IF THEY CONVERT THIS ESSENTIALLY TO A TAX EXEMPT RATE OF A 1.2, THREE AT A 28% CORPORATE TAX RATE, THEY ACTUALLY MAKE A LITTLE BIT MORE MONEY, NOT A WHOLE LOT, BUT A LITTLE BIT MORE MONEY.
BUT I THINK WHAT I WAS ABLE TO CONVEY TO THEM IS WHAT'S THE PROBABILITY TWO YEARS FROM NOW THAT CORPORATE TAX RATES ARE STILL 28%.
AND THEY LOOKED AT THEMSELVES, YOU KNOW, IN THEIR COMMITTEES.
AND THEY SAID, YEAH, THAT'S RIGHT.
WE REALLY NEED TO THINK ABOUT IF CORPORATE TAX RATES GO UP, YOU KNOW, US LOCKING IN THESE ECONOMICS IS ACTUALLY GOOD FOR US AND GOOD FOR THE SCHOOL DISTRICT, AND EVERYBODY'S A WINNER.
SO THE BONDS ARE NON CALLABLE.
SO THEY WOULD IN THE TERM SHEET WAVE THE CALL PROVISION.
UM, THEY WOULD OFFER THIS INTEREST RATE.
AND SINCE THEY'RE THE ONLY PARTY THAT CAN WAIVE THE CALL PROVISION, THEY WILL BE THE ONLY PARTY THAT WOULD WIN, UM, QUOTE UNQUOTE, THE SALE UNDER, UNDER STATE LAW.
SO, UM, THE ACTION AS OF NOW WOULD BE A RECOMMENDATION TO THE FULL BOARD TO ACCEPT THE TERM SHEET.
THE TERM SHEET DOES HAVE A CARVE OUT THAT IF FOR ANY REASON, BOND COUNSEL IS UNABLE TO ISSUE A, AN OPINION THAT THE BONDS IN THE INTEREST ARE TAX EXEMPT, THEN EVERYTHING IS KNOWN VOID NOBODY'S OUT ANY MONEY, AND EVERYBODY JUST WALKS AWAY.
UM, SO I THINK THAT'S A VERY IMPORTANT PIECE, BUT THE REASON THAT I WANTED TO GET TERM SHEETS AND, AND HAVE TERM SHEETS ADOPTED IS THAT THE PEOPLE AT THESE BANKS CHANGE.
AND SO WHAT THEY'RE WILLING TO DO TODAY MAY NOT BE WHAT THEY'RE WILLING TO DO, PRESENTING THIS ITEM TO THEM, YOU KNOW, IN, IN 2024.
SO I WANT TO GET EVERYBODY, UM, YOU KNOW, WITH TERM SHEET SIGNED TERM SHEET, READY TO GO.
UH, THIS WOULD JUST BE PUT ON THE SHELF AFTER THE BOARD ACCEPTS THE TERM SHEET.
AND THEN IN, IN JANUARY OF 2024, WE WOULD COME TO THE BOARD WITH THE PHYSICAL RESOLUTION, THE ISSUE OF THE REFUNDING BONDS.
AND WE WOULD GO THROUGH THE PROCESS AND CLOSE THE TRANSACTION ON MARCH 1ST WITH, UH, THE ECONOMICS THAT YOU SEE IN FRONT OF YOU.
SO, UM, AGAIN, IT'S KIND OF THE GIFT THAT KEEPS ON GIVING.
UM, PROBABLY BE THE LAST, UH, WE WOULD TALK ABOUT THIS 2014 BE REFUNDING, UM, BUT I'M HAPPY TO ANSWER ANY QUESTIONS.
UM, BUT I DON'T SEE ANY DOWNSIDE FOR THE SCHOOL DISTRICT.
AND ONCE AGAIN, IF, IF ANY FIRM CANNOT ISSUE A LEGAL OPINION, THEN, UM, EVERYTHING'S NOLAN'S LIFE.
UH, FIRST OF ALL, MS. CROSBY, DO YOU HAVE A RECOMMENDATION ON THIS ACTION? UM, I RECOMMEND THAT WE ACCEPT, UM, UH, THE FINANCIAL ADVISOR'S RECOMMENDATIONS AND TO RECOMMEND IT TO THE FULL BOARD, ANY QUESTIONS, UH, OUR DOCTOR WAS NASTY.
DO YOU HAVE ANY QUESTIONS, MR. HERBERGER? DO YOU HAVE ANY QUESTIONS? UM, NO.
IT LOOKS LIKE ALL GOODNESS TO ME.
SO WOULD YOU MAKE THE MOTION? SO I MOVED AT THE FINANCE COMMITTEE RECOMMENDS THAT THE BUFORD COUNTY BOARD OF EDUCATION, EXCEPT THE TD BAY, 2021 E BOND REFUNDING TERM SHEET AS PRESENTED, IT'S BEEN MOVED.
ARE THERE ANY DISCUSSION HEARING, NONE CALL FOR THE VOTE? ALL THOSE IN FAVOR SIGNIFY BY SAYING AYE.
OPPOSED? NONE HEARD MOTION CARRIES UNANIMOUSLY.
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THANK YOU.UM, THE NEXT ITEM IS A DISCUSSION OF THE FINAL REFERENDUM, 2019 REFERENDUM BOND ISSUE.
AND SO, UM, THE DOCUMENT BEFORE YOU, UM, HAS BEEN CREATED TO SUMMARIZE THE PREVIOUSLY, UH, PREVIOUS TWO PREVIOUS BOND ISSUES, THE 20, 20 TO 2020 ISSUANCE OF $75 MILLION, UH, AND THE 2021 ISSUANCE OF 130 MILLION.
SO WE'VE ISSUED A TOTAL OF $205 MILLION.
UM, THE PRINCIPAL AMOUNT THAT WAS AUTHORIZED BY IN THE BALLOT WAS 344,610,000.
UM, SO WHEN SUBTRACTING THE 205 MILLION FROM THAT NUMBER, OR THE PROPOSED, THE DIFFERENCE IN THE PROPOSED FINAL ISSUANCE AMOUNT IS 139,610,000.
SO, UM, I, I, BRIAN WILL IS HERE AND CAN HELP ANSWER QUESTIONS REGARDING, UM, FREEMIUMS AND INTERESTS.
WE DO HAVE, UH, HAVE ACCUMULATED THUS FAR.
AND SO, UM, BRIAN, IS THERE ANYTHING ELSE THAT YOU WOULD LIKE TO ADD TO THIS DISCUSSION? UH, I THINK I'LL JUST REITERATE WHAT I SAID AT THE, UM, AT THE WORKSHOP, WHICH IS, UM, YOU KNOW, WHAT WE TYPICALLY SEE WITH CLIENTS IS THAT THEY ACCUMULATE SOME BID PREMIUM AND INTEREST, AND EVEN AT TIMES SOME BUDGET SAVINGS THROUGH A PROCESS, AND THEN AS THEY GET TOWARDS THE END OF THE PROCESS, THEY MAKE FINAL DECISIONS AS IT REBATES AS IT RELATES TO THE, THESE AMOUNTS.
UM, I DID SEE, UM, TANYA'S, UM, HANDOUT AND HAVE IT IN FRONT OF ME IN, UH, AT THE BOTTOM.
IT SORT OF REITERATE WHAT WAS SAID AT THE, UH, AT THE MEDIAN, WHICH, UM, YOU KNOW, THE, THE MONEY IS, CAN BE USED FOR A VARIETY OF SOURCES, UM, OR A VARIETY OF NEEDS.
THEY'RE ALL, I THINK, GOOD OUTCOMES, BUT FLEXIBILITY IS SOMETHING THAT YOU CAN'T GET BACK, UH, WHICH IS WHY I THINK THE, YOU KNOW, MORE OF OUR CLIENTS CHOOSE TO WAIT TO THE END TO MAKE DECISIONS ON THESE.
BUT AGAIN, YOU KNOW, IT'S, IT'S THE WILL OF THE BOARD.
SO THERE ARE ANY, UH, FIRST OF ALL, LET'S, UH, JUST BRING UP A MOTION.
I MOVED THAT THE FINANCE COMMITTEE RECOMMENDED THE BEAVER COUNTY BOARD OF EDUCATION APPROVED THE FINAL ISSUANCE OF 2019 REFERENDUM BONDS IN THE AMOUNT OF 139 MILLION, 610002ND FROM, UH, MR. CAMPBELL AND DISCUSSION.
FIRST OF ALL, UM, MS. CROSBY, DO YOU RECOMMEND THAT THIS BE APPROVED? YES, SIR.
UM, I THINK IT IS WISE FOR, UM, ONCE YOU HAVE MULTIPLE OPTIONS AVAILABLE TO YOU AS, AS MR. GENERIC STATED.
UH, BUT I THINK IT IS WISE TO WAIT UNTIL THE FINAL, UH, THE COMPLETION OF THE FIRST ROUND OF BOND, UH, CONSTRUCTION PROJECTS ARE COMPLETED.
UM, THEN YOU HAVE OPTIONS REGARDING THE USE OF THOSE FUNDS, IF YOU SHOULD HAVE ADDITIONAL NEEDS THAT WERE NOT ADDRESSED IN THAT REFERENDUM WEEK BECAUSE OF COSTS, UM, UH, COSTS INCREASES, OR YOU COULD USE IT FOR, UM, THE BEGINNING PROJECTS IN THE NEXT ROUND OF REFERENDUM AND POTENTIALLY LOWER, UM, BOND ISSUANCES IN, IN A SECOND REFERENDUM.
SO YOU HAVE SOME FLEXIBILITY, BUT, UM, IT, IT, AGAIN, IT'S AT THE WILL OF THE BOARD.
I I'M GONNA ADD SOMETHING TO THAT.
UH, FLEXIBILITY, AS BRIAN RIGHTLY SAID, IS SOMETHING YOU WANT TO KEEP TO THE LAST MINUTE.
SO YOU CAN, YOU CAN DEAL WITH ANY LAST MINUTE THINGS THAT COME UP.
SECONDLY, UM, I STILL BELIEVE THAT WE ARE GOING TO COME IN, UM, ON TIME AND ON BUDGET USING OUR CONTINGENCIES THAT ARE ALREADY IN THE PROJECTS THAT WE HAVE UNDERWAY.
THIS JUST GIVES US SOME FLEXIBILITY.
IF WE HAVE SOMETHING SURPRISING HAPPENS IN THE MARKET, THAT BRINGS HIGHER PRICES THAT WE DON'T KNOW NOW IN YET, IT ALSO GIVES US THE OPPORTUNITY TO PREP FOR THE NEXT REFERENDUM.
ONE OF THE PROBLEMS THAT WE HAD WITH THIS REFERENDUM FOR OUR BIG PROJECTS WAS THAT, OF COURSE, WE DID A COST ANALYSIS AS WE WERE DEVELOPING THEM, THE NUMBERS FOR THE REFERENDUM.
UH, WHEN WE DID THAT, WE DID NOT KNOW ABOUT COVID.
WE DID NOT KNOW A LOT ABOUT, UH, WHEN THE ECONOMY'S DONE, AND
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IT IS REALLY SURPRISING AND QUITE WONDERFUL THAT WE HAVE BEEN ABLE TO PUT IN CONTINGENCIES THAT HAVE BEEN SUFFICIENT TO HANDLE THESE INCREASES.WE WERE ALSO ABLE TO START THE PROJECT THAT REFERENDUM WAS PASSED IN NOVEMBER, AND WE BROKE GROUND IN JANUARY BECAUSE WE SPENT MONEY TO DO THE DESIGN WORK WITH THIS MONEY, IF IT'S AVAILABLE TOWARDS THE END, BUT WE CAN START THE DESIGN WORK ON THE SECOND REFERENCE THAT WILL GIVE US HARD NUMBERS BECAUSE ONCE THE DESIGN WORK IS DONE, YOU'VE GOT HARD NUMBERS FOR WHAT YOU'RE GOING TO HAVE TO DO FOR YOUR PERMITTING, WHAT YOU'RE GOING TO HAVE TO DO FOR YOUR GROUND.
WHETHER WE WILL BE ABLE TO EITHER RENOVATE HILTON, HEAD HIGH SCHOOL OR TEAR IT DOWN AND START OVER, WE WILL KNOW, AND WE CAN COST IT VERY GOOD.
SO THAT MEANS THAT WHEN WE GO WITH THE NEXT REFERENDUM, WE WILL HAVE MORE HARD DATA ON THE COSTS.
AND I SEE THAT THE MARKET BEING VOLATILE IN THE NEXT THREE TO FIVE, EVEN 10 YEARS.
AND I THINK IT'S GOING TO BE VERY, VERY IMPORTANT TO BE ABLE TO LOCK DOWN STRONG PRICING AS WE GO FORWARD ON PROJECTS.
WE ARE BORROWING WHAT THE TAX PAYERS VOTED TO ALLOW US TO BORROW ANYTHING THAT COMES IN FROM PREMIUMS OR CONTINGENCY MUST BE USED FOR CAPITAL CAN'T BE USED FOR ANYTHING ELSE MUST BE USED FOR CAPITAL CONSTRUCTION.
I WAS JUST GOING TO ASK IN REGARD TO THOSE DIFFERENT, UM, SERIES AND THEIR ASSOCIATED PREMIUMS, WHAT IS THE, THE DEADLINE ON THEIR USAGE? I KNOW WE'RE TALKING ABOUT PERHAPS UTILIZING THEM AT THE END OF CERTAIN CONSTRUCTION PHASES, BUT I WAS JUST WONDERING WHAT IS THE, THE BOUNDARY SET ON THAT FRANNIE HEIZER IS NOT ON THE CALL, BUT I BELIEVE THAT QUESTION HAS BEEN ASKED BRIAN, DO YOU KNOW THAT ANSWER HAVE FOR ANY, FOR ANY IS ON THE CALL FOR ANY YEAH.
TH THE PREMIUM IS CONSIDERED PART OF THE BOND PROCEEDS.
AND SO TYPICALLY THERE'S A THREE TO FIVE-YEAR PERIOD THAT YOU WANT TO SPEND YOUR BOND PROCEEDS.
THE, THE, UM, YOU CAN HAVE A LONGER PERIOD OF TIME.
UM, AND IF WE, IF YOU CHOOSE THAT, W WHICH I THINK WE WOULD RECOMMEND, WE WOULD WANT TO DO A, WHAT WE CALL A REBATE ANALYSIS.
AND I KNOW THAT THAT MS. CROSBY HAS Y'ALL HAVE THE FIRM ON BOARD MONITORING THE AMOUNT OF MONIES THAT ARE EARNED ON YOUR BOND PROCEEDS.
SO ALL THE IRS WANTS IS, UM, IS FOR YOU TO NOT MAKE EXTRA MONEY BY BORROWING, UH, TAX EXEMPT MONIES AND NOT SPENDING IT.
SO IF WE KEEP THE REBATE ANALYSIS UP TODAY, YOU COULD HAVE A LONGER PERIOD OF TIME TO SPEND THOSE FUNDS.
AND DO YOU HAVE ANYTHING ELSE TO ADD DR.
I'VE ALWAYS WANTED TO DO THE FLOOR.
UM, I JUST WANT TO MAKE SURE I THOUGHT THAT WE WERE OBLIGATED TO SPEND THE BOND MONEY THIS 2019 BOND MONEY ON THE PROJECTS THAT WERE, THAT WERE OUTLINED IN THAT REFERENCE.
AND IT'S, IT SOUNDS LIKE THAT THAT I'M WRONG ON THAT, THAT WE CAN, WE CAN ROLL THE EXCESS FORWARD.
I'M A LITTLE SURPRISED WE CAN ROLL FORWARD TO 8% PROJECTS, BUT IS THAT NOT, IS THAT NOT CORRECT? YOU? UM, THERE ARE REALLY NO STATUTORY RULES IN SOUTH CAROLINA ABOUT HOW A SCHOOL DISTRICT EXPENDS PREMIUMS ON, ON BONDS.
UM, JAN, 15 YEARS AGO, THERE WAS A REQUIREMENT THAT ANY BAD CASH PREMIUM BE PUT INTO DEBT SERVICE AND USED, UM, TO PAY,
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UM, DEBT SERVICE ON THE BONDS THAT PRODUCE THE PREMIUM THAT SENT US WAS ELIMINATED FROM THE CODE.SO THERE IS NOW A ZERO RULES AND RESTRICTIONS ON HOW A SCHOOL DISTRICT CAN SPEND ITS PREMIUM.
THE RULES ARE DIFFERENT FOR A CITY OR A COUNTY, BUT Y'ALL GOT FLEXIBILITY.
SO WE'RE, WE'RE COMFORTABLE, UM, ALLOWING Y'ALL TO USE PROCEEDS OF A PREMIUM, UM, ON CAPITAL PROJECTS.
THEY DO NOT HAVE TO BE SPECIFICALLY RELATED TO THE REFERENDUM PROJECTS OR TO THE PROJECTS FOR WHICH THE BONDS WERE BORROWED OR ISSUED.
UM, HOW ABOUT THE EXCESS BORROWING? IF WE DON'T USE ALL OUR CONTINGENCY, IF, IF YOU, IF YOU'VE COMPLETED YOUR REFERENDUM PROJECTS TO EVERYONE'S SATISFACTION AND YOU HAD A BOND PROCEEDS REMAINING, WE WOULD PROBABLY ADVISE THAT THOSE BE MOVED.
IF YOU HAVE A SECOND BOND REFERENDUM, THAT THOSE BE MOVED TO THE PROJECTS FOR A SECOND BOND REFERENDUM.
UM, THERE HAS BEEN ONE, ONE TIME IN Y'ALL'S HISTORY WHERE YOU DID NOT, UH, NEED ALL THE PROCEEDS OF ALL THE BONDS THAT WERE APPROVED AT A REFERENDUM.
IT RELATED TO A PIECE OF PROPERTY THAT YOU WERE NOT ABLE TO PURCHASE IN THAT CASE, THE MONEY OR THE HAD NOT YET BEEN BORROWED.
THE BONDS HAD NOT YET BEEN ISSUED, BUT IN TODAY'S CLIMATE, I THINK IT'S UNLIKELY THAT THERE WILL BE A SIGNIFICANT AMOUNT OF LEFTOVER OR EXCESS BOND PROCEEDS.
AND IF, IF THAT IS THE CASE, THEN WE WOULD WORK WITH Y'ALL TO HAVE THAT BORROWED MONEY EXPENDED ON APPROPRIATE PROJECTS THAT WOULD THEN ALLOW LESS MONEY TO BE BORROWED, UM, ON, UM, ON THOSE ADDITIONAL PROJECTS.
SO IT, ULTIMATELY YOUR TAXPAYERS DO GET THE BENEFIT OF THE, UM, ANY EXCESS THAT COMES FROM THE REFERENDUM.
YES, MA'AM AND THAT'S EXACTLY, THAT'S EXACTLY HOW WE WANT TO PACKAGE IT.
THE ACCESS MONEY WE CAME IN UNDER BUDGET, WE'RE RETURNING THE MONEY, THE TAXPAYERS, I JUST WANT TO MAKE SURE IT WAS, IT WAS LEGAL THAT WE DIDN'T HAVE TO SPEND IT ALL ON THE OUTLINE BECAUSE WE WERE VERY SPECIFIC ON WHAT PROJECTS THE MONEY COULD BE USED FOR.
SO AS LONG AS WE'RE NOT BREAKING ANY REGULATIONS, I'M REALLY HAPPY WITH THAT.
I'D LIKE TO ADD THE OTHER THING THIS GIVES US THE OPPORTUNITY TO DO IS REDUCE THE AMOUNT OF BORROWING WE MAY BE FOR A SECOND REFERENDUM.
AND ONE OF THE GOALS THAT WE'VE TALKED GIVEN TO BRIAN TO FIGURE OUT IS HOW TO HAVE ANOTHER REFERENDUM.
I'VE LOST AUDIO TO THE, YEAH, SHE CUT OUT MR. GEIER ON ONE OF THE THINGS FOR BRIAN TO FIGURE OUT, AND THEN IT STOPPED THE FIGURING OUT BRIAN, KEEP THE MILLAGE RATE THE SAME FOR A SECOND REFERENDUM SO THAT THERE IS NOT A MILLAGE INCREASE TO PAY FOR A SECOND REFERENDUM AND USING THESE FUNDS TO HELP REDUCE THE AMOUNT BORROWED COULD HELP US ACHIEVE THAT GOAL.
CORRECT? YES, YOU'RE EXACTLY RIGHT.
UM, YOU KNOW, I HAVE BEEN MODELING SORT OF JUST ON MY OWN INDEPENDENTLY, THE SECOND HALF OF THE REFERENDUM AND TRYING TO MAKE SURE THAT I DON'T, UM, MAKE ANY SIZING ERRORS WITH THIS UPCOMING, UH, ISSUANCE THAT WOULD THEN, UM, HAVE A, A NEGATIVE IMPLICATION ON, UM, A POTENTIAL FUTURE REFERENDUM AND, YOU KNOW, OUTSIDE OF ANY COST INCREASE THAT IS JUST UNFORESEEABLE.
I THINK RIGHT NOW WE'RE IN A REALLY GOOD POSITION TO HAVE A SECOND REFERENDUM WITH, UH, WITH, UH, NO, UH, MILLAGE INCREASE.
AND I SAY THAT IN, IN, UM, IN MAKING SURE THAT, YOU KNOW, WE'RE APPROPRIATELY SIZING EACH YEAR TO KEEP THE MILITARY THE SAME.
IT'S VERY IMPORTANT THAT WE KEEP THE MILITARY THE SAME.
UM, AND WE LIVE WITHIN THAT MILLAGE RATE AND FUND AS MANY PROJECTS AS WE CAN AND PAY OFF THE DEBT AS QUICKLY AS WE CAN WITHIN THAT.
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ANY OTHER DISCUSSION? ANY OTHER QUESTIONS? I DON'T SEE ANY OTHER HANDS UP OR THEREFORE WE'LL CALL FOR THE QUESTION.ALL THOSE IN FAVOR, SIGNIFY BY SAYING AYE.
THE NEXT ITEM IS THE 2019 REFERENDUM BOND ISSUE.
I'M GOING TO DROP OFF AS ALWAYS.
IF YOU HAVE THE GRAPHIC AVAILABLE FROM GET IT TO GET THE MORTGAGE, I'LL JUST START MY, UM, SOME JUST VERY, A BROAD INTRODUCTIONS AGAIN.
UM, WE BROUGHT US VERY BRIEFLY TO A VERY LONG WORK SESSION, A FEW A WEEK OR SO AGO.
UM, SO WE DIDN'T HAVE AN OPPORTUNITY TO REALLY GO INTO ANY DETAILS.
AND SO WE WANT TO GO INTO THOSE A LITTLE MORE WITH YOU TODAY.
UM, KAYLEEN IS HERE AND SHE IS AN EXPERT.
REGGIE MURPHY IS ISN'T EVEN EXPERT OR I'VE GOT A WHOLE TEAM OF PEOPLE THAT HELP TODAY THROUGH THE COMPLEXITIES OF THE PROCUREMENT CODE CHANGES.
UM, SO THE GOAL IS TO ONE, UM, OUR RECOMMENDATION IS TO ADOPT THE MODEL CODE OF THE STATE.
UH, IT IS, IT WAS WRITTEN IN 2020, IT WAS DISTRIBUTED OR RELEASED IN 2021 FOR DISTRICTS TO REVIEW ABOUT COMMENTS AND WENT BACK.
SO IT IS, UM, UH, AN EXTENSIVE CODE AND IT DOES REQUIRE SOME STEPS TO GO THROUGH AS THIS PROCESS, UH, THAT WE'VE PROVIDED IN THE THERE'S A ONE PAGE EXECUTIVE SUMMARY THAT WE CAN RE REITERATE AT THE END.
BUT WHAT WE WOULD LIKE TO ULTIMATELY DO IS, UM, HAVE THIS ENACTED AND APPROVED BY THE BOARD AND THE STATE AND BEGIN TO USE IT IN BY JULY ONE, HAVING A, UM, UH, MID YEAR PROCUREMENT CHANGE POTENTIALLY WOULD HAVE THE AUDITOR'S LOOKING AT ONE CODE FOR CERTAIN TRANSACTIONS, CERTAIN TIMEFRAMES.
AND SO THE IDEAL TIME IS JULY ONE FOR US.
SO I'M GOING TO TURN IT OVER TO KAYLEE TO START DIGGING INTO THE DETAILS.
THANK YOU FOR HAVING ME AGAIN.
I'D LIKE TO GO OVER THE SUMMARY OF SIGNIFICANT CHANGES COME.
THE REASON THESE ARE BEING SIGNIFICANT CHANGES IS THAT WE COMPARED OUR CURRENT PROCUREMENT CODE TO THE 2020 MODEL CODE AND CAME UP WITH A WHOLE LIST OF THINGS, UM, FROM ROUGH CHANGES.
BUT THESE ARE THE SIGNIFICANT ONES.
THESE ARE THE ONES THAT ARE GOING TO IMPACT THE DISTRICT.
SO IF YOU LOOKED AT THE LEFT UPPER LEFT PORTION OF THE SUMMARY, SIGNIFICANT CHANGE SUMMARY OF SIGNIFICANT CHANGES, WE HAVE HAVE THREE THRESHOLDS THAT WE USE UNTIL WE GET INTO COMPETITIVE SEAL DENNING.
CURRENTLY PURCHASES UNDER $2,500, DO NOT REQUIRE THREE QUOTES DON'T REQUIRE ANY ADVERTISING OR ANY COMPETITIVE BID THAT THRESHOLD WOULD CHANGE TO 10,000 FOR THE STATE FOLLOW CODE, ANYTHING OVER 2,500 UP TO 10,000, WE GET THREE QUOTES THAT THRESHOLD WOULD CHANGE FROM 10,000 TO 25,000 ADVERTISED QUOTES WOULD MOVE FROM THE THRESHOLD OF 10,000 TO 50,000 TO 29,000 TO A HUNDRED THOUSAND AND THEN COMPETITIVE SEAL BIDS, WHICH IS YOUR BEST VALUE BIDS.
IFPS RFPS, UM, WOULD MOVE FROM $50,000 IN GREATER TO A HUNDRED THOUSAND DOLLARS TO GREATER PREFERENCES.
UM, THAT IS SOMETHING THAT IS INTERESTED.
A LOT OF PEOPLE, WE HAVEN'T HAD ANY PREFERENCES FOR OUR PROCUREMENT CODE.
THIS CODE WOULD INTRODUCE PRODUCTS MADE IN THE UNITED STATES, AS WELL AS PRODUCTS MADE IN SOUTH CAROLINA AND A RESIDENT VENDOR PREFERENCE FOR COMMODITY CONTRACTS.
FOR THOSE OF YOU THAT ARE NOT FAMILIAR WITH COMMODITY CONTRACTS, THOSE ARE GOODS.
THOSE ARE TANGIBLE ITEMS. SECOND SET OF COULD BE FOR SEARCH SERVICE CONTRACTS.
THOSE WOULD BE FOR STATE RESIDENT CONTRACTORS AND SUBCONTRACTORS.
THESE PREFERENCES WOULD HAVE TO BE CLAIMED BY THE VENDOR WHEN THEY SUBMITTED THEIR SEALED BIDS OR SUBMITTED THEIR QUOTES, BUT ALL OF THAT WOULD BE LISTED IN THE SOLICITATION.
AND AS FAR AS THE ADVERTISEMENT THAT WE PUT
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OUT ON HOW THEY CAN CLAIM IT AS ONE SOLE SOURCE, ANY EMERGENCY, THIS WAS ANOTHER LARGE CHANGE THAT WAS HAPPENING.A SOLE SOURCE IS APPROVED BY THE PARENT DEPARTMENT.
THEN FORWARD IT UP THROUGH THE CHAIN THROUGH FINANCE, WHERE MS BROWSEY IS THE FINAL SIGNATURE SIGNING OFF ON A SOLE SOURCE.
THE STATE IS NOW REQUIRING IF THE NEW CODE IS ADOPTED THAT ANY PURCHASES BETWEEN 50,000 AND 250,000 AND HAPPY ADVERTISE FOR A MINIMUM OF FIVE BUSINESS DAYS PRIOR TO DATING IN A SOLE SOURCE OR ALLOWING YOU TO APPROVE THE SOLE SOURCE.
AND THEN ANYTHING GREATER THAN 250,000 WOULD HAVE TO BE ADVERTISED FOR A MINIMUM OF 10 BUSINESS DAYS.
EMERGENCY PROCUREMENT IT'S STILL NEEDS TO BE ROUTED THROUGH CHAIRMEN LIKE IT DOES CURRENTLY AND WOULD HAVE TO BE APPROVED BY THE CFO AS WELL.
BUT IF IT WAS A GREATER THAN $50,000 EMERGENCY PROCUREMENT AND REMEMBER EMERGENCY DEAN LIFE, HEALTH, SAFETY, STRUCTURAL, SOMETHING THAT'S GOING TO AFFECT THE STUDENTS OR THE STAFF, UM, $50,000 OR MORE, WE HAVE TO ADVERTISE AFTERWARDS TO LET PEOPLE KNOW THAT WE DID AN EMERGENCY, THE CHAIRMAN FOR THAT.
AND THE LAST MAJOR CHANGE IS EXEMPTIONS EXEMPTIONS, AS WE KNOW, ARE NOT EXACTLY PART OF THE PROCUREMENT CODE.
THEY'RE AN EXTENSION OF THE PROCUREMENT CODE AS PART OF OUR INTERNAL OPERATING POLICIES AND PROCEDURES.
THIS NEW CODE WOULD ADOPT ALL STATE EXEMPTIONS.
IN ADDITION TO OUR CURRENT EXEMPTIONS THAT WE HAVE, THAT WOULD BE ULTIMATELY A THIRD OF THE WORD AT THE DISCRETION OF THE BOARD.
I'M HERE TO ANSWER ANY QUESTIONS THAT YOU HAVE.
I KNOW THAT THERE MAY BE A FEW.
SO I SEE DOCTOR WISCHNEWSKI HIS HAND UP AND DR.
UM, YES, I HAD A COUPLE QUESTIONS.
I'LL START FIRST ON THE SUMMARY OF SIGNIFICANT CHANGES.
UM, MY FIRST QUESTION IS, AND MY APOLOGIES THAT I, I DO NOT KNOW THIS ANSWER OFF THE TOP OF MY HEAD, BUT IF THE CURRENT THRESHOLDS ARE CHANGED TO BE 10,000 AS BEING THE, THE START FOR COMPETITIVE, UM, QUOTE, DOES THAT MEAN THAT A PURCHASE COULD BE MADE ON AMAZON FOR UP TO $10,000? YES, MA'AM.
COMPETITIVE BIDDING WOULD NOT BE REQUIRED OR ANY, ANY, UM, COMPARATIVE QUOTES FOR THE PURCHASE WOULD NOT BE REQUIRED UP TO $10,000 AFTER $10,000.
THAT'S WHEN PROCUREMENT WOULD COME INTO PLAY AS IT DOES AFTER 2,500 NOW.
AND THEN MY OTHER QUESTION IS IN REGARD TO THE EXEMPTIONS, I HAVE, I HAVE A HANDFUL OF THEM.
SO, UM, MR. JARED, YOU WANT TO MOVE ON TO SOMEBODY ELSE AFTER I ASKED A COUPLE, PLEASE LET ME KNOW.
SO, UM, MY FIRST ONE IS IN REGARD TO, AND IT'S ON PAGE, OH, I DON'T SEE A NUMBER ON HERE, BUT IT'S WHERE IT SAYS THE POLICY AND LEGAL SERVICES TO INCLUDE, BUT NOT LIMITED TO.
AND IT TALKS ABOUT FINANCIAL ADVISORS, INVESTMENT MANAGEMENT, BROKERAGE SURFACE SERVICES, AND IT SAYS SUBJECT TO BOARD APPROVAL, IT'S LISTED AS A STATE EXEMPTION AND IT LISTS THE, UM, I BELIEVE THE DATE PERHAPS THAT THAT WAS ADDED TO THE STATUTE.
UM, I GUESS I'M A LITTLE CONFUSED BECAUSE IT LISTS 2002 DASH ZERO TWO DASH 14 FOR BOTH ITEMS D AND F.
BUT I, I PERSONALLY DON'T FEEL THAT THAT'S ACCURATELY APPLIED TO AF UM, MY READING OF THAT HIGHLIGHTED LANGUAGE IS IN REGARD TO FINANCIAL SERVICES AND AF IS IN REGARD TO BOARD GOVERNANCE, CONSULTANTS AND FACILITATORS.
I DON'T THINK THAT THOSE ARE NECESSARILY WHAT WAS INTENDED UNDER THAT PROFESSIONAL SERVICE THAT'S LISTED.
UM, I CAN ANSWER THAT FOR YOU.
IF YOU NOTICE THERE'S SOME HIGHLIGHTED PORTIONS IN HERE FOR THE COPY THAT YOU HAVE, IF THE ITEMS WERE NOT HIGHLIGHTED WITH THE EXCEPTION OF THE FINANCIAL ADVISORS, THOSE ITEMS NEED THAT THEY ARE IN THE STATE, UM, EXEMPTION, UM, BOARD GOVERNANCE AND CONSULTANTS AND FACILITATORS WAS NOT LISTED, BUT THAT IS ONE WE'D LIKE TO ADD BECAUSE IT DOES FALL UNDER POLICY AND LEGAL SERVICES THAT CAN BE INCLUDED BECAUSE WHEN YOU HIRE CONSULTANTS FOR THE BOARD FOR BOARD GOVERNANCE, GOVERNANCE, IT TYPICALLY FALLS UNDER POLICY THAT YOU'RE DISCUSSING OR SOME KIND OF LEGAL SERVICES THAT YOU MAY BE ASKING FOR.
UM, AND WE ALMOST CONSIDER THAT WE ALREADY HAVE AN EXEMPTION FOR PROFESSIONAL DEVELOPMENT, BUT THE BOARD DOES NOT HAVE AN EXEMPTION FOR ANY KIND OF BOARD GOVERNANCE, ONLY PROFESSIONAL DEVELOPMENT.
[00:35:01]
MEANS, SORRY, GO AHEAD.OH, I WAS JUST SAYING THAT MAKES SENSE.
I JUST, I WAS CONFUSED BECAUSE IT HAS THE GRAY NEXT TO IT AND INDICATES THAT THE SERVICES LISTED AS A STATE EXEMPTION BELOW, AND IT'S TALKING ABOUT BROKERAGE SERVICES.
SO IF THERE'S ONE THAT IS BEING ASKED FOR BY THE PROCUREMENT DEPARTMENT, THAT'S ONE THING.
BUT IF IT'S SOMETHING THAT THE STATE ALREADY ALLOWS FOR, THAT'S DIFFERENT.
I THINK I'M CONFUSED ON WHICH ONE IT IS.
SO I BELIEVE THAT'S MY MISTAKE.
UH, I WOULD BE TWO ITEMS THAT I WAS TRYING TO REFERENCE IN THE STATE CODE WERE FINANCIAL ADVISORS AND BROKERAGE SERVICES.
AND I INADVERTENTLY ADDED A SECOND SECTION IN A LETTER F THAT SHOULD NOT HAVE BEEN THEM, SHOULD NOT HAVE SAID THAT.
WELL, IT, THE GRAY SHOULDN'T BE THE GRAY SHOULDN'T BE APPLIED TO F BUT YOU DO WANT TO EXEMPT IT PER THE PROCUREMENT DEPARTMENTS RECOMMENDATION.
UM, AND THEN LET ME KEEP SCROLLING HERE.
THERE WAS ANOTHER ONE THAT I HAD, UM, AND IT WAS IN REGARD, I BELIEVE TO CATERING SERVICES.
UM, THERE'S A RECOMMENDATION BY THE PROCUREMENT DEPARTMENT TO EXEMPT CATERING SERVICES.
NOW, WOULD THAT INCLUDE OUR FOOD SERVICES CONTRACTS? BECAUSE I KNOW THOSE ARE RATHER SUBSTANTIAL.
CERTAINLY THE ISSUE WE RAN INTO THE CATERING SERVICES, UM, IS WHEN WE RENT A FACILITY OR WE'RE HOLDING PROFESSIONAL DEVELOPMENT OF THE FACILITY AND THE COST OF THE PROCUREMENT CODE OR THE COST OF THE THRESHOLD THAT 2,500 HAS NOT CHANGED IN REGGIE.
HOW MANY YEARS IT'S BEEN A LONG TIME.
I'VE BEEN HERE FOR SIX YEARS, THE 2,500.
SO THE 2,500 HAS BEEN IN PLACE FOR SO LONG.
WELL, WE KNOW HOW EXPENSIVE CATERING CAN BE WITH THAT AS WELL.
IF WE CAN USE OUR IN-HOUSE FEAR OR THAT'S SOMETHING THAT WE WANT TO DO, WE'VE WANT TO USE OUR FACILITY, OR WE'RE CURRENTLY USING, IF WE GO OUT ON TOWN AND SOMEONE COMES IN JUST $20 CHEAPER, WE'RE USING THEM AS WELL.
ALSO WHEN YOU HOLD TRAINING AT A FACILITY THAT REQUIRES THAT YOU CATER WITH THEM, WE STILL HAVE TO GO OUT FOR THREE QUOTES AND THIS PROCUREMENT CODE WILL NO LONGER ALLOW A NO QUOTE AS A BONAFIDE QUOTE.
CURRENTLY, IF I GO OUT THROUGH SERVICES AND TWO VENDORS ARE NOT AVAILABLE FOR THE DAY, I NEED A SERVICE.
THAT'S CONSIDERED A NOTE QUOTE, AND I GO WITH THE QUOTE FOR THE VENDOR WHO IS AVAILABLE.
NOW A NOTE QUOTE IS NOT A BONAFIDE QUOTE ANYMORE.
SO WE HAVE TO HAVE GREAT QUOTES AND WE'VE RAN INTO MORE ISSUES WITH CATERING SERVICES AND GETTING FLOATS FOR THOSE, WHICH I BELIEVE EVEN WITH BOARD FUNCTIONS, GETTING THAT CATERING WHEN YOU'RE TRYING TO ENGAGE THE COMMUNITY HAS BEEN VERY DIFFICULT.
THANK YOU FOR THAT CLARIFICATION.
WE RAN INTO THAT WITH THE YES.
AND THEN I HAD JUST HAD ONE MORE AND THAT'S ON THE MEDICAL DEVICES REQUIRED FOR INSTRUCTION.
THAT'S UNDER THE HEADING OUR NUMBER THREE MEDICAL AND OR PSYCHOLOGICAL SERVICES.
UM, CAN YOU EXPLAIN WHY THAT ONE WOULD BE, CAUSE I KNOW SOME OF THOSE, UM, CAN BE THE SIGNIFICANT EXPENSE, BUT I ALSO KNOW THERE'S QUITE A LOT OF VENDORS THAT DO THAT.
UM, SO CAN YOU GIVE ME THE REASONING FOR THAT ONE, THE MEDICAL DEVICES THAT ARE REQUIRED ONLY FOR INSTRUCTION? SO THOSE WOULD BE IF WE NEED TO BUY AUDIOLOGY EQUIPMENT, BUT THAT'S FOR THE NURSING STUDENTS AT THE HIGH SCHOOL THAT ARE WORKING WITH, UH, BUFORD MEMORIAL OR ANYTHING ELSE THAT, THAT THOSE MEMORANDUM OF AGREEMENTS THAT WE HAVE TRYING TO GET QUOTES FOR THAT INSTRUCTION.
WE ALREADY EXEMPT INSTRUCTION FOR THE CLASSROOM, BUT BECAUSE IT'S A MEDICAL DEVICE THAT CAN'T BE, WE HAVE TABLES THAT WE'D LIKE TO PURCHASE FOR.
I CAN'T REMEMBER THE TERM EXACTLY, BUT IT LAYS OUT A COMPLETE BODY ON LIKE A SMART BOARD.
AND YOU CAN ONLY FIND THOSE IN, IN ONE PLACE THAT THEN WE HAVE TO SOLE SOURCE IT AND WE TRY TO AVOID SOLE SOURCING AS MUCH AS POSSIBLE.
SO MEDICAL DEVICES WAS SOMETHING THAT WAS RECOMMENDED TO THE PROCUREMENT DEPARTMENT, BUT THAT'S TOTALLY NEGOTIABLE AS WE SAY IN PROCUREMENT EVERYTHING.
SO THAT'S, IT MAY BE PREFERRED THAT IT'S EXEMPT, BUT YOU MAY STILL GO OUT FOR A COMPETITIVE BIT.
I APPRECIATE YOU ANSWERING THE QUESTIONS.
[00:40:01]
I JUST WANT TO ASK A GENERAL QUESTION.I KNOW HISTORICALLY WE, WE DID NOT WANT TO ADOPT THE STATE PROCUREMENT CODE BECAUSE IT WAS, IT WOULDN'T SCREW UP SOMETHING, UM, THAT WE HAD GRANDFATHERED IN PRIOR TO, SO SOMETHING HAS CHANGED.
AND WHY AM I CLEAR TANYA KAYLA? UH, SO THE PROCUREMENT CODES FROM THE STATE HAS ALWAYS HAD THEIR OWN MODEL CODE AND SCHOOL DISTRICTS HAVE BEEN ABLE TO ADOPT THAT MODEL BOAT, BUT THE STATE HAS CHANGED THEIR CODE OVER THE YEARS, SEVERAL TIMES, BUT HAVE NOT ALWAYS REQUIRED SCHOOL DISTRICTS TO FALL IN LINE AND DO THE SAME.
SO WE HAD MULTIPLE PROCUREMENT CODES THROUGHOUT ALL OF THE DISTRICTS.
SO WHEN THE SIGNIFICANT CHANGE HAPPEN AT THE LEGISLATIVE LEVEL WHERE THEY MADE, THEN HE CHANGES, ESPECIALLY WITH THE THRESHOLDS AND THE PREFERENCES, THEY DEVELOPED A MODEL CODE FOR US.
UM, REGGIE, MAYBE SPEAK TO WHY WE DIDN'T ADOPT EARLIER AND WHAT WOULD HAVE CHANGED, BUT WE'RE REQUIRED BY STATE TO REMAIN SUBSTANTIALLY SIMILAR.
UM, WE HAVE THE OPTION NOT TO ADOPT THIS CODE, BUT IF WE DON'T, WE RUN INTO CONFLICT WITH STATE AND RENTAL, REGULAR STATE AND FEDERAL REGULATIONS.
UM, AND THEN WE WILL NO LONGER BE SUBSTANTIALLY SIMILAR AND NO CHANGES WILL BE ABLE TO BE MADE TO OUR CURRENT CODE.
UM, OR GB ONE SAY WHY WE COULDN'T BEFORE DIDN'T, BEFORE NOT TO, IT'S NOT THAT WE COULDN'T.
UM, THE BREAKFAST WAS BECAUSE, UH, AND THIS, THE NEW CODE ACTUALLY DE-CENTRALIZED AS SOMEONE, THE AUTHORITY IN THE CODE PUSHES IT OUT.
AND OUR, OUR FORMER PROCUREMENT OFFICER COORDINATOR REFERRED TO HAVE THE CONTROL AS YOU SIT AT THE DISTRICT OFFICE.
AND THAT WAS, THAT WAS THE MAIN REASON WE DIDN'T WANT TO GO TO.
THAT, THAT'S NOT THE IMPRESSION I GOT AT THE TIME, BUT THANK YOU.
SO ON THE, UM, EXEMPTIONS HERE, I SEE HOW THE BLUE HIGHLIGHT WE'RE REQUESTING TO ADD THESE TO THE MODEL CODE IS EXEMPT EXEMPTIONS, CORRECT? YES.
WHAT ARE WE DOING WITH THE YELLOW? THE YELLOW IS THE CURRENT EXEMPTIONS THAT WE ALREADY HAVE IN OUR CURRENT PROCUREMENT CODE, BUT ARE NOT IN THE STATE, UH, EXEMPTIONS AND THE BEST WAY THAT I CAN PRESENT.
THIS IS THE STATE ISN'T K THROUGH 12, THEY DEAL WITH HIGHER ED.
THEY DEAL IN LOCAL GOVERNMENT, BUT THEY DON'T DEAL IN K-12.
SO THINGS LIKE HOME BOUND SERVICES AND HOME VISITS, GOING OUT TO BID AND TAKING THE CHEAPEST BID FOR SOMEONE WHO'S GOING TO BE VISITING OUR STUDENTS IN OUR HOMES SEEMS TO SERVICE BETTER TO HAVE IT AS AN EXEMPTION, BUT THE STATE WOULDN'T BECAUSE THEY DON'T HAVE HOME BOUND SERVICES.
SO THE YELLOW ONES ARE THE ONES THAT WE HAVE IN OUR CURRENT CODE THAT WE ARE OPERATING UNDER NOW.
AND THAT THEY'RE NOT PART OF THE STATE EXEMPTION.
SO THE STATE ASKS THEM TO BE EXEMPTED.
THE BOARD HAS THE POWER FOR ALL EXEMPTIONS.
THE STATE WILL NOT DEAL WITH, UM, THE EXEMPTION PORTION OF THE PROCUREMENT CODE.
WE HAVE TO ADOPT THEIR EXEMPTIONS, THAT ANYTHING IN ADDITION TO THAT IS ALL FOR GOVERNANCE.
SO THERE CURRENTLY ON OUR LIST, WE ARE CURRENTLY, WE CURRENTLY HAVE THE ITEMS LISTED IN YELLOW AS AN EXEMPTION, AS OUR CURRENT PROCUREMENT CODE.
AND WE'RE RECOMMENDING TO KEEP THOSE AS AN EXEMPTION.
AND THEN THE BLUE IS THOSE CURRENTLY AREN'T EXEMPTIONS.
THEY ARE NOT EXEMPTIONS, BUT THEY, YES.
AND THEY'RE USED BY OTHER SCHOOL DISTRICTS.
I, IT WAS A LOT, IT'S LIKE A THREE PIECE TOGETHER.
A BUNCH OF THE CAMERA COORDINATORS GOT TOGETHER AND SUBMITTED ALL OF THEIR EXEMPTIONS OF WHAT WAS BENEFICIAL TO THEIR SCHOOL DISTRICT.
AND WE PULLED THEM TOGETHER AND LEFT.
THE ONES THAT WE THOUGHT WOULD BE BENEFICIAL IS LESS TO BE ADDED TO THE PROCUREMENT CODES.
EXEMPTIONS DON'T CHANGE VERY OFTEN, BUT WE'VE BEEN CHANGED TWICE.
I THINK SINCE I'VE WORKED HERE IN SIX YEARS AND THE PROCUREMENT CODE THRESHOLDS HAVING TO CHANGE TO 50.
UM, SO HAVE, HAVE ANY, UM, SCHOOL DISTRICTS IN SOUTH CAROLINA ALREADY ADOPTED THE MODEL, UM, MODEL, BUT YEAH.
AND SO WE'RE, IF WE'RE LOOKING TO ADOPT THE MODEL PROCUREMENT CODE, AS YOU'VE MENTIONED, A GOOD START DATE WOULD BE JULY ONE.
SO DOES IT HAVE TO BE, OBVIOUSLY
[00:45:01]
IT HAS TO BE SUBMITTED TO THE STATE WITH THE SMELTING OBLIGATIONS OR DO YOU WANT TO USE SO, AND THEN BEF BEFORE, OBVIOUSLY JULY ONE AND HOW LONG DO YOU KNOW THE TIMEFRAME FOR THAT? WHAT WILL BE SUBMITTED IS IF THE FINANCE COMMITTEE RECOMMENDS IT TO THE FULL BOARD FOR APPROVAL AND THE BOARD APPROVES THE PROCUREMENT CODE AS IS, OR THEY MAKE ANY CHANGES, REMEMBER EXEMPTIONS ARE SEPARATE FROM THE PROCUREMENT.SO THAT'LL BE A SEPARATE, UM, ITEM WE SUBMITTED TO THE SFAA ONCE THEY DO THAT, COULD TAKE THEM A WEEK MAYBE TO GO THROUGH IT.
THEY GAVE US A DOCUMENT WHERE WE TRACK ALL OF OUR CHANGES, WHICH MAKES IT A LOT EASIER FOR THEM TO APPROVE OR DENY ONCE THEY SEND BACK THEIR APPROVAL.
IT'LL COME BACK TO THE BOARD FOR A SECOND READING FOR A FINAL ADOPTION ADOPT FOR IMPLEMENTATION.
AND THEN A SECOND ITEM OF MOTION WOULD BE FOR THE EXEMPTIONS AS A REVIEW AND THEN APPROVAL TO BE ADDED TO OUR INTERNAL POLICIES AND PROCEDURES.
AND THE BIG REASON OF WANTING TO GO AWAY FROM WHAT WE CURRENTLY HAVE TO THIS MODEL IS SO COMPLIANCE WOULD BE THE RIGHT WORD WITH STATE AND FEDERAL PROCUREMENT CODES.
YES, MA'AM BASICALLY, I HAVE JUST A COUPLE OF QUESTIONS.
FIRST OF ALL, IT LOOKS LIKE TO ME THAT IT GIVES US MORE FLEXIBILITY THAN IT DOES WITH THE CHANGING PRICES AND INFLATION AND MANUFACTURING INCREASES IT'S SO IT'S NOT A, IT'S NOT A COMPRESSION, IT'S MORE OF AN EXPANSION OF THE AMOUNTS THAT YOU CAN USE FOR CERTAIN THINGS.
THE OTHER QUESTION I HAVE HAS TO DO WITH THE SERVICE CONTRACTS AND STATE RESIDENT CONTRACTORS AND SUBCONTRACTORS, YOU SAY THEY WILL GET AN ADVANTAGE.
DO YOU KNOW WHAT TYPE OF ADVANTAGE THERE IS, UH, FOR COMMODITY CONTRACTS THERE'S, UM, USC ETP, WHICH IS THE, UM, PRODUCTS THAT ARE IN PRODUCTS THAT ARE MADE IN THE U S AND THEN IN PRODUCTS THAT ARE MADE IN SOUTH CAROLINA AND THEN RESIDENT VENDOR PREFERENCE.
SO IF THEY HAVE ANY PRODUCTS THAT ARE MADE IN THE U S IT'S 2% IN PRODUCTS THAT ARE MADE IN SOUTH CAROLINA, 7% AND A RESIDENT VENDOR PREFERENCE IS 7% AS WELL.
AND, AND THAT'S, IF WE ADOPT THIS, THAT'S, IT BECOMES EFFECTIVE ON THE 1ST OF JULY.
THAT IS SOMETHING THAT WE NEED TO LET OUT TO OUR CONTRACTORS AND OUR LOCAL COMMUNITY RIGHT AWAY, UH, YOU KNOW, CLOSER TO THE 1ST OF JULY, BUT, BUT THAT'S A, THAT'S A SIGNIFICANT ADVANTAGE.
AND, UH, YOU KNOW, THAT WOULD HELP US.
DON'T YOU THINK, GIRL, I GET GET MORE, UH, I GET SOME ADVANTAGE TO OUR FOLKS.
ANY OTHER QUESTIONS I'M HEARING? NONE.
I MOVE THAT THE FINANCE COMMITTEE RECOMMENDS THAT THE VIEW FOR COUNTY BOARD OF EDUCATION ADOPT DOC THAT 2021 MODEL SCHOOL DISTRICT PROCUREMENT CODE, THE FINANCE COMMITTEE FURTHER RECOMMENDS THAT THE BOARD OF EDUCATION APPROVED THE ADDITION OF THE PROCUREMENT EXEMPTIONS TO THE MODEL CODE AS PRESENTED TO THE COMMITTEE UPON ADOPTION BY THE BOARD OF EDUCATION, THE 2021 MODEL CODE WITH THE EXEMPTIONS WILL BE FORWARDED TO THE STATE FISCAL ACCOUNTABILITY AUTHORITY DIVISION OF PROCUREMENT SERVICES FOR FINAL APPROVAL.
SECOND FROM MR. CAMPBELL, IS THERE ANY OTHER DISCUSSION? WHAT ARE THESE BOARD MEMBER? YEAH.
WELL, WHEN WE BRING IT TO THE BOARD HEARING, NO FURTHER DISCUSSION, ALL THOSE IN FAVOR SIGNIFY BY SAYING, AYE.
RACHEL, DID I GET AN I THANK YOU.
NOW WE'RE ON THE ANNUAL RESOLUTION FOR GRANT AUTHORIZATION, SORRY.
SO EACH YEAR WE BRING BEFORE YOU A RESUME AND OPTIMIZATION OR RESOLUTION AUTHORIZED SUPERINTENDENT ASSIGN OR DESIGNEE TO ASSIGN GRANTS, UH, SUBMIT ADMINISTER GRANTS, AND AS WELL AS FEDERAL STATE OR LOCAL GRANTS, AND AS WELL AS FOUNDATION GRANT APPLICATIONS AND COOPERATIVE AGREEMENTS.
[00:50:01]
THIS MAY, THIS LOOKS A LITTLE DIFFERENT.IT'S MORE IN COMPLIANCE WITH THE STATE DEPARTMENT IRONMAN.
UM, AND SO, AND WE ALSO REFERENCED AN ADMINISTRATIVE REGULATIONS, UM, THAT SITES THAT WE HAVE TO DO THIS.
SO THIS IS JUST AN ANNUAL, UM, UH, RESOLUTION THAT WE REQUEST APPROVAL ON TO ALLOW US TO MANAGE OUR GALL LARGE VOLUME OF GRANTS RECEIVE EVERY YEAR.
SO, YES, I'VE MOVED THAT THE FINANCE COMMITTEE RECOMMENDED THAT THE BUFORD COUNTY BOARD OF EDUCATION AUTHORIZED THE SUPERINTENDENT OR HIS DESIGNEE TO APPLY FOR SIGNS, SUBMIT AND ADMINISTER FEDERAL STATE, LOCAL AND FOUNDATION GRANT APPLICATIONS, AND COOPERATIVE AGREEMENTS FOR THE 20 22, 20 23 SCHOOL.
SECOND, ANY DISCUSSION? I JUST DON'T SEE ANY HANDS HEARING, NO REQUEST FOR DISCUSSION, ALTHOUGH THE FAVOR BY SAYING, AYE, AYE.
OPPOSED, MOTION CARRIES UNANIMOUS.
NEXT ITEM ON THE AGENDA IS FUTURE TOPICS.
HOWEVER, THERE'S A SETTLED SCHOOL LAST COUPLE OF MONTHS, ALLOW PRINCIPAL, UM, OR TALK TO THEM ON THE MONITORS BECAUSE THEY SENT THEIR TEACHERS A WAY TO DOWNWARD BUS DUTY AND ALL THAT STUFF.
SO THAT'S, THAT'S SOMETHING THAT PROBABLY OUGHT TO BE A JOINT THING THAT THE ACADEMIC COMMUNITY KIND OF KICK IT THERE, BUT THEY SIT THERE.
THE REQUIREMENT IS, YEAH, THE ACADEMIC COMMITTEE SHOULD PROBABLY TALK TO PRINCIPALS ISD AND TWO COULD BE OPERATIONS AS WELL.
UM, AND THEN ONCE THEY FIGURE OUT A REQUIREMENT YEAH.
AND WE HAVE THEM TO COME TO US TO FIGURE OUT YEAH.
COSTS AND WHERE IT WOULD FIT IN SCHOOL, I GUESS.
SO IT MIGHT BE A BUDGET DISCUSSION AS WELL.
WE DO A WORK SESSION ON THE 22ND.
UM, WE CAN RUN SOME NUMBERS AND HAVE THEM AVAILABLE FOR THAT SPECIALIST AS WELL.
SO, UM, THAT'S OPTION TWO, SINCE IT WILL BE THE FULL BOARD.
UM, I MENTIONED THE LAST TIME THAT I WAS WANTING TO DO THE MINORITY WOMEN BUSINESS ENTERPRISE REPORT, WE DO THAT TWICE A YEAR SO THAT, UH, WE HAVE A BRAND FORWARD TODAY BECAUSE WE HAD SO MANY OTHER THINGS ON THE AGENDA, BUT, UH, SO I'LL INCLUDE THAT FOR NEXT TIME.
ROSS TO THE SUPERINTENDENT ASKING FOR WHERE STARTING SALARIES ARE THROUGHOUT THE STATE AND TEACHERS.
AND I THINK THAT WOULD BE AN INTERESTING DISCUSSION TO BRING TO THIS COMMITTEE TO TALK ABOUT THAT.
AND I THINK WE'LL TALK ABOUT IT DURING BUDGET, BUT, UM, THERE'S NEEDS TO BE A STRATEGIC VIEW OF HOW WE'RE GOING TO GET TO WHERE WE WANT TO BE IN TEACHER'S SALARY.
AND I THINK IT'S PRETTY OBVIOUS THAT 3 88 IS NOT GOING TO ALLOW US TO GET TO OUR ULTIMATE GOAL IS IN ONE YEAR, MAYBE TWO, MAYBE EVEN THREE YEARS, YOU SHOULD BE PUTTING A MARK ON THE WALL AS TO WHERE WE WANT TO GO AND FIGURE OUT THE DETAILS OF HOW THEY GET THERE.
SO THAT, THAT MIGHT BE A TOPIC THAT WE COULD TALK ABOUT IN THE FUTURE FUTURE.
WE'LL BE TALKING SOME ABOUT THAT AT THE WORK SESSION.
THE WORK SESSION IS GOING TO TALK ABOUT THIS COMING BUDGET.
[00:55:01]
GOING TO NEED TO BE, YOU'RE SAYING STRATEGIC ONES FOR STARTING SALARIES.IS THERE ANY OTHER, I DON'T SEE THE HANDS.
I THINK WE NEED TO GET THEM NEXT TIME.
UM, OUR NEXT MEETING IS SCHEDULED FOR THURSDAY, MAY 12TH.
SO OUR TIMELINE BETWEEN THE WORK SESSION ON 22ND AND THE CURRENTLY PROPOSED, UM, FOR CERTIFYING THE BUDGET ON MAY 3RD IS A VERY TIGHT TURNAROUND.
UM, SO, WELL, I GUESS WE'LL PLAY IT BY EAR ON THE 22ND TO SEE WHAT THE WILL OF THE BOARD IS ON.
THERE MAY TYPICALLY HAVE HAD A SPECIAL CALL MEETING IN BETWEEN TO HELP, UM, GO THROUGH THE DETAILS OR OPTIONS OF BUDGETS.
SO WITH THE WORK SESSION ON THE 22ND, OUR NEXT PLAN FINANCE COMMITTEE MEETING WOULD BE ON THE 12TH.
WOULD YOU BE WILLING TO MOVE YOUR FINANCE COMMITTEE TO THE FIFTH, IF THERE IS A SPECIAL CALL BOARD MEETING SO THAT YOU COULD HAVE IT THE NEXT WEEK WE'LL MAKE UP THE NIGHT, IF IT'S ANTICIPATE, OR SHOULD WE JUST SEE HOW THINGS GO? I THINK WE SHOULD SEE HOW THINGS GO AND, AND, AND, UH, THE FULL BOARD WOULD PROBABLY, UH, IF THEY HAVE SOMETHING THAT THEY WANT US TO LOOK AT BEFORE THE NEXT READING, THEY CAN TELL US AND ADJUST ACCORDINGLY.
WE MIGHT JUST HOLD A FEW DATES IN CASE OF THE NEED FOR EXTRA, UM, ANOTHER MEETING, BUT, UM, WE'LL JUST SEE HOW THINGS GO AND LET'S, LET'S LEAVE THE 12TH ON THERE RIGHT NOW.
AND THAT MEANS AT FIVE O'CLOCK.
AND I CAN SAY RIGHT NOW I'M NOT AVAILABLE ON, OKAY.
RACHEL, IS THAT OKAY WITH YOU? UM, I WON'T BE IN TOWN ON THE 12TH, BUT I TRUST YOU THE BOLTS TO DO THE WORK.
SO I HEAR A, YES, WE CAN DO IT ALL IN FAVOR.