Independent School District #595, East Grand Forks, Minnesota Proceedings (0210)

Regular meeting of the Board of Education, 

Independent School District #595, 
East Grand Forks, Minnesota
december 14, 2015

The regular meeting of the Board of Education, Independent School District #595, East Grand Forks, Minnesota was held on Monday, December 14, 2015, at 5:30 p.m. at the Senior High School.
Board Chair Palmiscno called the meeting to order.
Board members present: Black, Palmiscno, Piche, Simonson, Thompson, and Useldinger
Board member absent: None
Black moved to approve the agenda as presented. Piche seconded the motion.  The motion was carried.
Useldinger moved to approve the minutes of the regular school board meeting held on November 23, 2015, and the special school board meetings held on November 30 and December 9, 2015.  Piche seconded the motion.  The motion was carried.
Member Black introduced the following resolution and moved its adoption:
RESOLUTION PROVIDING FOR THE SALE OF GENERAL OBLIGATION SCHOOL BUILDING BONDS, SERIES 2016A; AND COVENANTING AND OBLIGATING THE DISTRICT TO BE BOUND BY AND TO USE THE PROVISIONS OF MINNESOTA STATUTES, SECTION 126C.55 TO GUARANTEE THE PAYMENT OF THE PRINCIPAL AND INTEREST ON THESE BONDS
BE IT RESOLVED by the School Board of Independent School District No. 595 (East Grand
Forks), Minnesota, as follows:
1.   Bond Authorization. The School Board has determined that it is necessary and expedient to issue $19,965,000 General Obligation School Building Bonds, Series 2016A.
2.   Sale.  The District has retained Ehlers & Associates, Inc. (Ehlers) in Roseville, Minnesota, as its independent financial advisor for the Bonds.  Ehlers is authorized to solicit proposals in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9).  If the issuance of the Bonds is approved, the School Board shall meet at the time and place specified in the Official Statement to receive and consider proposals for the purchase of the Bonds.
3. Official Statement; Negotiation of Sale.  Ehlers is authorized to prepare and distribute an Official Statement and to open, read and tabulate the proposals for presentation to the Board.
4. Minnesota School District Credit Enhancement Program.  
(a) The District hereby covenants and obligates itself to notify the Commissioner of Education of a potential default in the payment of principal and interest on the Bonds and to use the provisions of Minnesota Statutes, Section 126C.55 to guarantee payment of the principal and interest on the Bonds when due.  The District further covenants to deposit with the Registrar or any successor paying agent three (3) days prior to the date on which a payment is due an amount sufficient to make that payment or to notify the Commissioner of Education that it will be unable to make all or a portion of that payment.  The Registrar for the Bonds is authorized and directed to notify the Commissioner of Education if it becomes aware of a potential default in the payment of principal or interest on the Bonds or if, on the day two (2) business days prior to the date a payment is due on the Bonds, there are insufficient funds to make that payment on deposit with the Registrar.  The District understands that as a result of its covenant to be bound by the provision of Minnesota Statutes, Section 126C.55, the provisions of that section shall be binding as long as any Bonds of this issue remain outstanding.
(b) The District further covenants to comply with all procedures now and hereafter established by the Departments of Management and Budget and Education of the State of Minnesota pursuant to Minnesota Statutes, Section 126C.55, subdivision 2(c) and otherwise to take such actions as necessary to comply with that section.  The chair, clerk, superintendent or business manager is authorized to execute any applicable Minnesota Department of Education forms.
The motion for adoption of the foregoing resolution was duly seconded by Member Simonson, and upon vote being taken thereon, the following voted in favor thereof:  Palmiscno, Simonson, Piche, Black, Useldinger, and Thompson and the following voted against the same:  none
whereupon the resolution was declared duly passed and adopted.
Piche moved to approve the 2015-16 seniority lists for the following groups as posted on November 11, 2015:
Teachers
Administrative Assistants
Bus Drivers
Custodians/Maintenance
Food Service
Paraprofessionals
Simonson seconded the motion.  The motion was carried.
Useldinger moved to adopt the 2014-15 Audit Report as prepared and presented by Brady, Martz, and Associates.  Black seconded the motion.  The motion was carried.
Piche moved to certify the 2015 Payable 2016 Levy at $3,517,166.80.  Black seconded the motion.  The motion was carried.
Member Black introduced the following resolution and moved its adoption, which motion was seconded by member Useldinger:
RESOLUTION RELATING TO THE FINANCING OF A PROPOSED PROJECT TO BE UNDERTAKEN BY THE SCHOOL DISTRICT; ESTABLISHING COMPLIANCE WITH REIMBURSEMENT BOND REGULATIONS UNDER THE INTERNAL REVENUE CODE
BE IT RESOLVED by the School Board (the Board) of Independent School District No. 595 (East Grand Forks), Minnesota (the School District) as follows:
1. Recitals.
(a) The Internal Revenue Service has issued Section 1.150-2 of the Income Tax Regulations (the Regulations) dealing with the issuance of tax-exempt obligations all or a portion of the proceeds of which are to be used to reimburse the School District for project expenditures made by the School District prior to the date of issuance (the Reimbursement Obligations).
(b) The Regulations generally require that the School District make a declaration of its official intent to reimburse itself for such prior expenditures out of the proceeds of a subsequently issued series of tax-exempt obligations within 60 days after payment of the expenditures, that such obligations be issued and the reimbursement allocation be made from the proceeds of such obligations within the reimbursement period (as defined in the Regulations), and that the expenditures reimbursed be capital expenditures or costs of issuance of the obligations.
(c) The School District desires to comply with requirements of the Regulations with respect to the project hereinafter identified.
2. Official Intent Declaration. 
(a) The School District proposes to undertake the following project and to make original expenditures with respect thereto prior to the issuance of Reimbursement Obligations, and reasonably expects to issue Reimbursement Obligations for such project in the maximum principal amounts shown below:

Maximum Amount of 
Obligations
Project Expected to be Issued for 
Acquisition and betterment of school $20,600,000
facilities, including but not limited to, 
addition to and remodel of the high 
school and athletic facilities
(b) Other than (i) de minimis amounts permitted to be reimbursed pursuant to Section 1.150-2(f)(1) of the Regulations or (ii) expenditures constituting preliminary expenditures as defined in Section 1.150-2(f)(2) of the Regulations, the School District will not seek reimbursement for any original expenditures with respect to the foregoing Project paid more than 60 days prior to the date of adoption of  this resolution.  All original expenditures for which reimbursement is sought will be capital expenditures or costs of issuance of the Reimbursement Obligations.
3.   Budgetary Matters.  As of the date hereof, there are no School District funds reserved, pledged, allocated on a long term basis or otherwise set aside (or reasonably expected to be reserved, pledged, allocated on a long term basis or otherwise set aside) to provide permanent financing for the original expenditures related to the Project other than pursuant to the issuance of the Reimbursement Obligations.  Consequently, it is not expected that the issuance of the Reimbursement Obligations will result in the creation of any replacement proceeds.
4.   Reimbursement Allocations. The School District’s financial officer shall be responsible for making the “reimbursement allocations” described in the Regulations, being generally the transfer of the appropriate amount of proceeds of the Reimbursement Obligations to reimburse the source of temporary financing used by the School District to make payment of the original expenditures relating to the Project. Each reimbursement allocation shall be made not later than (i) eighteen (18) months after the date of the original expenditure or (ii) eighteen (18) months after the date the Project are placed in service or abandoned (but in no event later than three (3) years after the original expenditure is paid) and shall be evidenced by an entry on the official books and records of the School District maintained for the Reimbursement Obligations and shall specifically identify the original expenditures being reimbursed.
Upon vote being taken thereon, the following voted in favor thereof:  Palmiscno, Simonson, Piche, Black, Useldinger, and Thompson
and the following voted against the same:  none
whereupon the resolution was declared duly passed and adopted. 
Black moved to table the EGFEA Memorandum of Understanding until January 11, 2016.  Simonson seconded the motion.  The motion was carried.
Piche moved to hire the following people:

Joanne Graves NH/SP Custodian, 8 hrs/day beginning 12/7/15
Deanna Devine SH Custodian, 8 hrs/day beginning 12/7/15
Mark Kudryavtsev Bus Driver beginning 11/20/15
Jennifer Oatman Bus Driver beginning 12/2/15
Kelly Useldinger Administrative Assistant, 1
95 days beginning 1/4/16
Andrew Huovinen Science Teacher, 120 days, 
B39 Step 1 – $25,246.70 beginning 12/7/15
Kelley Swanson Elementary Teacher, 
114 days, M20, 
Step 7 – $35,523.02 b eginning 12/15/15
Lamart Bullocks 9th Boys Basketball Coach beginning 12/14/15
Simonson seconded the motion.  The motion was carried with Useldinger abstaining from the vote.
Useldinger moved to approve a childcare leave of absence as per the Master Agreement for Sonja Brandt beginning approximately January 12, 2016.  Black seconded the motion.  The motion was carried.
Thompson moved to create the following additional special education positions:
Speech and Language Pathologist – 1.0 FTE
E/BD Teacher – 1.0 FTE
Piche seconded the motion.  The motion was carried.
Simonson moved to approve the miscellaneous payments for the November 28, 2015, payroll in the amount of $14,547.78.  The consent agendas are on file in the Superintendent’s Office.   Black seconded the motion.  The motion was carried.
Simonson moved to approve the following donations to the school district:
Donation From: Donation To: For: Amount 
Green Wave 
Sports Boosters Boys Basketball Reversible Jerseys 960.00 
TOTAL DONATIONS $960.00 
Useldinger seconded the motion.  The motion was carried.
Black moved to approve the payment of the K-12 bills #107521 through #107731 as follows:

General Fund 01 $527,177.68
Food Service Fund 02 55,147.76
Community Education Fund 04 2,198.50
Building Fund 06 0.00
Debt Redemption Fund 07 0.00
Trust Fund 09 0.00
Community Service Fund 14 6.84
Activity Fund 21 62,722.36
Electronic Fund Transfers 452,255.28
Total Payments $1,099,508.42
The bills are on file in the Superintendent’s Office.  Simonson seconded the motion.  The motion was carried.
Simonson moved to adjourn the meeting at 6:52 p.m.  Useldinger seconded the motion.  The motion was carried.

Respectfully submitted,
Melissa Thompson, Clerk 

special meeting of the Board of Education, 
Independent School District #595, 
East Grand Forks, Minnesota
december 17, 2015
A special meeting of the Board of Education, Independent School District #595, East Grand Forks, Minnesota was held on Thursday, December 17, 2015, at 12:00 p.m. at the Senior High School.
Board Chair Palmiscno called the meeting to order.
Board members present: Black, Palmiscno, Piche, Simonson, Thompson, and Useldinger
Board members absent: None
Dr. Greg Vandal, from PEER Solutions attended the meeting the set timelines for the Superintendent search and to establish a leadership profile
Simonson moved to adjourn the meeting at 1:30 p.m.  Black seconded the motion.  The motion was carried.

Respectfully submitted,
Melissa Thompson, Clerk

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