Call to Order
The meeting was called to order
at 12:05 p.m.
Roll Call
Present: Heywood, Holden,
Jeffries, Patterson, Pelleran
Absent: Canady, Rasmusson
Trustee Pelleran was present via
conference call.
Trustee Canady arrived at 12:12
p.m.
Limited Public Comment
Regarding Agenda Items
There
were no comments from the public.
Closed Session
IT WAS MOVED by Trustee Heywood and supported by Trustee
Patterson to go into closed session for the purpose of discussing the
potential purchase of property.
Roll call vote:
Ayes: Heywood, Holden,
Jeffries, Patterson, Pelleran
Nays: None
Absent: Canady, Rasmusson
Motion carried.
The Board went into closed session at 12:05 p.m.
The Board returned to open session at 1:03 p.m.
IT WAS MOVED by Trustee Canady and supported by Trustee
Holden to return to open session.
Roll call vote:
Ayes: Canady, Heywood,
Holden, Jeffries, Patterson, Pelleran
Nays: None
Absent: Rasmusson
The Board took a short break.
Roll call:
Present: Canady, Heywood,
Holden, Jeffries, Patterson, Pelleran
Absent: Rasmusson
Sale of Bonds
President Cunningham proposed to
the Board that the College move forward with the sale of the bonds as
discussed during the millage. She asked Vice President Barbara
Larson to present the options in selling the bonds.
Vice President Larson stated that
the Board authorized a new bond sale of $58 million at the December 10
meeting. A two-issue approach is recommended for several reasons.
The main reason being that the College has applied for capitol outlay
dollars and if there is a chance that the College will receive capitol
outlay funding it will be beneficial to the College to receive those
dollars to fund half of Phase I instead having to borrow all of the
funds at this time. Secondly, there are legal requirements that
85% of the bond proceeds be spent within the first three years. A
schedule has been prepared that allows that to happen with the first
bond sale at $43,250,000. The recommendation is that the first
sale take place in February.
Vice President Larson reminded
the Board that part of their authorization in December was to go with a
negotiated recommended public competitive sale that offered several
advantages. The primary advantage being that the College could
time and market the sale. The College went out for bid for a
senior underwriter. Stauder & Barch, the College's bond
advisors, assisted in the review of proposals that were received and
interviewing of the three bidders. The evaluation committee
recommends the award be made to UBS PaineWebber as senior underwriter
for 60% of the sale. It is recommended that Edwards Jones and A.G.
Edwards participate as co-managers with 20% each. She said that by
having multiple vendors it allows the College to take advantage of their
brokers and the investors they are able to reach and gain the retailing
strength of more firms to market the College's bonds.
President Cunningham stated that
by approving the sale of the first bond issue the Board would be
approving the awarding of the bid to UBS PaineWebber.
Chairperson Jeffries asked if the
existing debt is figured into the information provided.
Vice President Larson responded
that the existing debt is not figured into the information provided.
The College has budgeted for the existing debt this year and will next
year. It will drop each year and will cease to exist in the
2008-2009 fiscal year.
Vice President Larson stated that
the recommendation before the Board is to approve going out with a bond
issue of $43,250,000 or less depending on the final cash flow analysis
on the day of sale. Understanding the Board's desire to keep the
length of the payment terms as low as possible it is recommended that
the total repayment schedule not exceed 18 years, but not be less than
15 years and it is assumed in this that there will be a second issue
needed. The combined mill requirement pay total debt service for
the two mills stay at or below .57 mill. Ultimately that will be
known on the day of sale when the bonds are priced in Chicago at UBS
PaineWebber.
IT WAS MOVED by Trustee Canady
and supported by Trustee Holden to adopt the proposal in its entirety
and proceed with the sale of bonds as outlined therein and approval of
the contract award for bond underwriting services.
Roll call vote:
Ayes: Heywood, Holden,
Jeffries, Patterson, Pelleran, Canady
Nays: None
Absent: Rasmusson
Motion carried.
Public Comment
There were no comments from the
public.
Adjournment
IT WAS MOVED by Trustee Canady
and supported by Trustee Heywood to adjourn the meeting.
Ayes: Canady, Heywood,
Holden, Jeffries, Patterson, Pelleran
Nays: None
Absent: Rasmusson
Motion carried.
The meeting was adjourned at 1:13
p.m.
