Past Agenda

PAST AGENDA
SCHOOL BUILDING AUTHORITY OF WEST VIRGINIA
Held At The
 
WEST VIRGINIA LOTTERY
900 Pennsylvania Avenue
Tenth Floor Conference Room
Charleston, West Virginia

Monday, March 20, 2017
9:30 AM
 
Note: To see the attachments referred to below, please click the word "Attachment" at the appropriate section and the information will be opened for your viewing. From the attachment, press the "Back" button or left arrow at the top of your browser to return to the Current Agenda.

I. CALL TO ORDER


II. ACKNOWLEDGEMENTS AND RECOGNITIONS

The Honorable Anita Harold Ashley, Fifth Judicial Circuit Judge will be providing the Oath of Office for the School Building Authority’s new Governor Designee, Nick Casey; Executive Director, Frank L. Blackwell and State Board Member, Mr. Miller Hall.


III. APPROVAL OF MINUTES

SBA Quarterly Meeting December 12, 2016 – (Action) – ATTACHMENT_A.pdfATTACHMENT_A.pdf       


IV. EXECUTIVE DIRECTOR’S REPORT
– Mr. Frank Blackwell

A. Dixon Hughes Goodman, LLP – Final Audit Report for The Fiscal Year Ending June 30, 2016 - (Action) – Mr. Garry Stewart – ATTACHMENT_B1.pdfATTACHMENT_B1.pdf - ATTACHMENT_B2.pdfATTACHMENT_B2.pdf
The CPA firm of Dixon Hughes Goodman, LLP conducted an independent audit of the SBA financial records for the fiscal year ending June 30, 2016.  Upon completion of the final audit report, the approval of the Authority is required to meet the requirements of the State Auditor’s Office and our Bond Indenture.  A hard copy will be provided at the Meeting. Mr. Cole Malcom, Senior Manager will be available to answer any questions the Authority may have in regards to the Audit.

Once the audited financial statements and the management letter are approved by the members of the SBA, Dixon Hughes Goodman, LLP will issue its final report.  This report will be forwarded to the Trustees and the appropriate investors who own SBA bonds.  A copy of the final report is provided in ATTACHMENT B1 and ATTACHMENT B2 is a copy of the Financial Statements for the Authority to review.

The staff of the SBA has reviewed the final version of the FY2016 Audit Report, as provided by Dixon Hughes Goodman, LLP and recommends its approval.


B. Memorandum of Understanding – (Action) - ATTACHMENT_C1.pdfATTACHMENT_C1.pdf - ATTACHMENT_C2.pdfATTACHMENT_C2.pdf
The following information was listed as Item K on the West Virginia Board of Education’s March 8, 2017 Agenda.  Provided in ATTACHMENT C1 is a copy of the Memorandum of Understanding and ATTACHMENT C2 is a copy of the current SBA Grant Contract with Fayette County.

Consideration of Approval of Fayette County Memorandum of Understanding - (Action) - Attachment R - Mary Catherine Tuckwiller


At its February 16, 2017 meeting, the West Virginia Board of Education (WVBE) voted to return full local control to the Fayette County Board of Education (FCBOE), subject to approval of a Memorandum of Understanding (MOU) by the WVBE, and subsequent execution of the same by the WVBE President and FCBOE President.



Motion(s) will be considered regarding approval of the Fayette County Memorandum of Understanding.


During the deliberation of projects in the December 2016 NEEDS funding meeting, several Authority members requested assurances that phases two and three of the amended CEFP would be completed as they related to the project presented for funding consideration.  It was discussed that the WVBE would be executing and MOA with the FCBOE at the time full local control was returned and that the MOA would or could include language to ensure completion of future phases.  However, the MOA approved by the WVBE did not specifically mention completion of the future phases of the approved CEFP.  

I respectfully recommend that the Authority provide the staff of the SBA with direction in preparing revised language to be included in the grant agreement with Fayette County that would address the concerns of the Authority.  Once direction is given to the staff of the SBA, a revised grant agreement can be forwarded to the FCBOE for their review and approval.  


C. Purchasing Card (P-Card) Program Report – (Information) – ATTACHMENT_D.pdfATTACHMENT_D.pdf
One of the requirements of the P-Card Program is for the Authority members to review all purchases made by the staff of the SBA.  As such, Attachment D provides an itemized list of the SBA’s card usage for the period of November 1, 2016 through January 31, 2017.


D. New SBA Sub-Committee Assignments – (Action) – ATTACHMENT_E.pdfATTACHMENT_E.pdf
Given the resignation of Dr. William White and the appointment of Mr. Miller Hall as an Authority Member it is necessary to reassign Members to Sub-Committees.  We have been asked to provide recommendations of these appointments. Attachment E provides these recommendations.

I respectfully recommend that the Authority fulfill this requirement and approve the recommended Sub-Committees.


E. Appointment of Officers for 2017 – (Action)
In accordance with the WV Code §18-9D-1, the Authority shall annually elect one of its public members as Vice-Chair and shall appoint a member as Secretary.  At this time, Mr. Steve Burton holds the office of Vice-Chair and Mr. Victor Gabriel holds the office of Secretary.

I respectfully recommend that the Authority fulfill this requirement and select officers for 2017.


F. Monroe County – Peterstown PreK-8 – (Information/Action) – Ms. Joetta Basile
The Monroe County Board of Education has been working with bond and legal counsel since receiving SBA NEEDS funding at the December 12, 2016 Authority meeting, in efforts to finalize legal language required to be included in the proposed Bond Call.  The Monroe County Superintendent, Ms. Joetta Basile, would like to provide a status update to the Authority on its progress to date.




V. CEFP AMENDMENTS
– Mr. Frank Blackwell – (Action)
The following amendments to county Comprehensive Educational Facilities Plans (CEFPs) have been reviewed and are recommended for approval by the staff of the SBA and also reviewed and coordinated with the State Department of Education Office of School Facilities. The State Board of Education will act on these same amendments at a later date.  Approval of these amendments does not necessarily reflect support for funding of the projects within the Amendment.  Approval of these amendments simply means the County followed the proper Amendment Process. Complete amendment submittals will be available for review upon request.  The following Amendments are submitted for your review and approval:

A. Kanawha County CEFP AmendmentATTACHMENT_F.pdfATTACHMENT_F.pdf
The Kanawha County Board of Education request approval of an amendment to its 2010-2020 CEFP.  This amendment would add Horace Mann Middle School’s window replacement as the number one SBA MIP Project.

Kanawha County has complied with the SBA CEFP Amendment process and based on this I respectfully recommend approval of this amendment to Kanawha County’s CEFP.


B. Nicholas County CEFP AmendmentATTACHMENT_G.pdfATTACHMENT_G.pdf
The Nicholas County Board of Education request approval of an amendment to its 2010-2020 CEFP.  This amendment would create a Comprehensive High School and a New Middle School, both middle schools and both high schools will need to close.  Nicholas County High School is the only one currently in use.  In order to provide a Comprehensive High School, the county intends to close the Career Technical Center in its current location and move it to the New High School location.  The new facilities will follow all guidelines set forth within WVDOE Policy 6200.

The Board of Education proposes to consolidate the following schools:
  • Richwood High School, Nicholas County High School and the Career Technical Education Facility into on Comprehensive High School.  This will be a building of approximately 250,000 square feet.

  • Richwood Middle School and Summersville Middle School into one Middle School facility.  This will be a building of approximately 97,047 square feet.


The benefits of this plan include:
  • Both the Middle School and Comprehensive High School are proposed to be at the centrally located Glade Creek Business Park site.  This location is closest to the center of the enrollment area.

  • Outside amenities would be relocated to accommodate all student extracurricular activities to the new campus.  This will promote student participation and community involvement at one location.

  • All Campus facilities will meet all current Handicapped Codes and standards that the current facilities are deficient.

  • The new schools will be designed around the most current “safe schools" design criteria.  The existing facilities do not meet any of the current guidelines.




VI. FINANCE REPORT
– Mr. Garry Stewart
A. Analysis of Trustee Accounts - Trustee Accounts Report - (Information) - ATTACHMENT_H.pdfATTACHMENT_H.pdf
The financial reports of the trustee accounts held at United Bank of Charleston, West Virginia and The Bank of New York Mellon for the period ending January 31, 2017 summarize the trustee functions of the SBA.


B. United Bank of Charleston – SBA Program Depository Accounts Report – (Information) ATTACHMENT_I.pdfATTACHMENT_I.pdf
The financial report of the depository accounts maintained by United Bank for the period ending February 15, 2017, summarizes construction spending by the SBA for its School Construction and Major Improvement Programs.


C. Selection of Independent Auditor – (Action)
The School Building Authority is required by our Bond Trust Indentures to have an independent audit performed at the end of each fiscal year.  Our standard procedure is to obtain new bids every four years.  As such, the SBA will release a Request for Quotation for Auditing Services for the Fiscal Years ending 2017, 2018, 2019 and 2020.  Once the bids have been received from the firms interested in performing these duties, the staff of the SBA shall proceed with an in-depth review of all bids received to determine which firm has met all the required bid criteria and is the lowest bidder.  We are requesting that the Authority allow the staff of the SBA to move forward with the hiring of a new firm for Auditing Services.

I respectfully recommend approval for the staff of the SBA to move forward with the Request for Quotation for Auditing Services for the Fiscal Years ending 2017,2018, 2019 and 2020 and to contract with the firm meeting all required bid criteria and being the lowest bidder.


D. Refunding of Series 2007A Bonds - (Information) - ATTACHMENT_J.pdfATTACHMENT_J.pdf
The SBA has had discussions with Public Resources Advisory Group (PRAG) regarding the potential refunding of the Series 2007A Bonds. PRAG has estimated     that the present value savings from this refunding transaction would be approximately $4.0 million based on the March 7, 2017 market conditions.         

These bonds are paid from annual General Revenue Fund appropriations to the West Virginia Department of Education.  The original bonds that were refunded by the Series 2007A Bonds were issued in the early 1990s and required a Debt Service Reserve Fund as collateral for those bonds.  The Debt Service Reserve Fund currently has a balance of $23 million.                       

Based on our discussions with PRAG, Federal Security regulations will require the SBA to liquidate the existing Debt Service Reserve Fund if the SBA decides to refund the Series 2007A Bonds.  The West Virginia Supreme Court's decision in the 1993 Winkler vs the West Virginia School Building Authority case requires that the liquated Debt Service Reserve Funds be used to retire those bonds.                         

WV Code Section 18-9D-8(g) states "to meet the operational costs of the School Building Authority, the School Building Authority may transfer to a special revenue account in the State Treasury interest on any Debt Service Reserve Funds created within any resolution authorizing the issue of bonds or any trust agreement made in connection with the bonds for expenditure in accordance with legislative appropriation or allocation of appropriation".                                           

To proceed with this refunding, Senate Bill 356 and House Bill 2720 have been introduced in both houses by the request of the Governor.  These are companion bills that would allow the School Building Authority to transfer funds allocated into the School Construction Fund to the School Building Authority Operating Fund.  The School Building Authority's current operating budget is $1,371,872.

Should the legislation be signed into law and the Authority chooses to refund these bonds, a special meeting will be required to initiate the refunding process.       



VII. CONSTRUCTION COMMITTEE REPORT
– Mr. Steve Burton
Policy and Procedures Revision – (Information/Action) – ATTACHMENT_K.pdfATTACHMENT_K.pdf

Final revisions of the latest Policy and Procedures are complete, the thirty (30) day comment period ended January 23, 2017 all comments received have been reviewed, and several comments have been incorporated into the revised Policy language to address the comments.  The Authority has been provided a copy of the public comments, as well as, the staff of the SBA’s responses to these comments.  The Final Version of the Policy Manual is provided in Attachment K.

I respectfully recommend approval of the Policy and Procedures Revisions.



VIII. OLD BUSINESS
– Mr. Scott Raines
A. Roofing Consultant Contract – (Action) – ATTACHMENT_L.pdfATTACHMENT_L.pdf
Payment for Roofing Consultant – At the December 12, 2016 the Authority approved the hiring of TNT Consultants to perform on-site testing and evaluations on the thirty (30) schools that have submitted roofing projects and prepare cost estimates and a prioritized list of these projects. 

I respectfully request that the Authority provide a 3% grant to enable the roofing consultant to begin the evaluation and prioritization of the roofing repair and replacement projects previously submitted by the twenty-eight local boards of education across the state. Once these evaluations are completed the prioritized list will be presented to the Authority for consideration at which time a future funding for these projects can be considered. 


B. Construction Managers – (Information) – ATTACHMENT_M.pdfATTACHMENT_M.pdf
At the request of the Authority the staff of the SBA will present an update on Construction Manager activities, as well as, events that led up to the involvement of Construction Managers on SBA projects.



IX. FUTURE MEETINGS

  • The 2017 summer quarterly meeting of the School Building Authority of West Virginia is scheduled on June 26, 2017 with the location to be determined.

  • The 2017 fall quarterly meeting of the School Building Authority of West Virginia is scheduled on September 25, 2017 with the location to be determined.

  • The 2017 NEEDs Grant Submission/Superintendent Interviews meeting is scheduled on November 13 and November 14, 2017 with the location to be determined.

  • The 2017 winter quarterly meeting and NEEDs Grant project selection meeting of the School Building Authority of West Virginia is scheduled on December 11, 2017 with the location to be determined.



X. ADJOURNMENT