001order. Uh, everybody please stand for the pledge of allegiance. >> I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all. Mrs. Mlan, can you call the role, please? >> Mr. Hyer, >> here. >> Mrs. Love >> here. >> Mr. Ne >> here. >> Mrs. McInness, >> here. >> Mrs. Degan >> here. >> Mr. Clark >> here. >> Mrs. Crank >> here. Thank you. Item 1.3 is the reading of the public statement. This meeting is a meeting of the board of education in public for the purpose of conducting the school district's business and is not to be considered a public community hearing. There is time for public participation during the meeting as indicated in agenda
002items three and nine. Item two is approval of the consent agenda. May I have a motion, please? >> I move we approve the consent agenda as presented. >> Support. >> Motion made in support. All those in favor, please signify by saying I. >> I. Any opposed? >> Motion carries. Item three is the first opportunity for citizens to address the board. You are given two opportunities to address the board. Under this item 3.1, you can request to address the board about any topic that is on tonight's agenda. And under item nine, you are welcome to address the board on any topic. When making comments, please state your name and address, direct your comments here to the board president. Each person may speak up for for up to two minutes per established established procedures. The board will
003not respond to questions or interact with the speaker during public comment. Anybody? No. No citizens. Thank you. Item four is our superintendent update and I'll turn it over to Dr. Ryan. >> Thank you. Good evening, Clarison community. For those of you tuning in this evening, we're on that final big push before the start of the school. It's been a busy busy summer. Um amazing strides in construction at the junior high who myself and the board of education had a tour right before this meeting uh this evening. Great progress. The gym looks absolutely amazing. you can see where they're really going to be laying ground for the foundation of the new academic wing that'll be open spring break, the year after next, and they're keeping on pushing on and and do making great headway. Uh at
004the same time this summer to financially support that, we had a great bond sales uh which we'll hear a little bit from our our partners this evening. It was very successful for Clarkston and the Clarkson community and managed what we were able to succeed. Addition to that, our custodians are hard at work with our facilities and maintenance division putting the last touches on our buildings and our teachers are getting ready to come back in force next week. Um, we started today with our brand new teachers who come in the week before and we're working with them to onboard them. Met with all them this morning and we have an amazing crop of new teachers coming into Clarkston for this fall. So, all around exciting. We're on the move and getting ready to start another amazing
005school year. >> 35. Thank you, Dr. Ryan. Uh, there are no presentation items. We will move on to item six, action items. Item 6.1 is approval of personnel changes. May I have a motion, please? >> I move board of education approves personnel changes as listed in the 10 sheets as presented. >> Motion made and supported. Are there any questions or discussions about what is on the personnel report? >> Okay, seeing none, all those in favor say I. >> I. Any opposed? Motion carries. Item 6.2 is approval of the contracts agreements. May I have a motion, please? I move that the board of education approves the agreements for administrators and non-affiliate groups and the contracts for the assistant superintendent and the superintendent as presented. >> Support. >> All right. Motion made and supported. Are there any
006questions or discussion? Point of order, President um Crane, I don't believe we noted the assistant superintendent administrative services, assistant superintendent instructional services in that motion. Am I correct? >> I believe so. >> Was it our intention to have them all? >> Uh 6.2. >> I think that was the one for the new assistant superintendent. Is that what we're talking about? >> Position is what we're talking about, not not people related. >> Yes. In this one, >> say it again. This is the position descriptions and contract not the the people in furthest right Mr. Lto >> or it marks our current setup maybe >> the position for business services was approved at a a few board meetings ago I I believe the these are the individuals getting approved >> so let me clarify 6.2.1 6.2.2 and
0076.2.3 2.3 are in this motion. >> Correct. >> Yes. >> Those are different. The 6.2 is the non-affffiliate due to the paid sick leave act final changes that needed to be implemented. The 6.22 is is needed the adjustments as a result of 6.2.3. >> Just as a further point of order, we have a resolution in here now that I think we've added after this motion. So the maker of the motion was you make the motion would would you accept a friendly amendment to add as well as adopting the resolution regarding administrator pay increase? >> Yes. >> Who supported that? I think >> corrected you. >> Okay. Thank you. >> Okay. So is there any further discussion or questions? All right. Uh because of the amendment, do we need a roll call vote? >> We do.
008>> Okay. Can we get a roll call vote? Mrs. Mlain. >> Mrs. >> Yes. >> Mrs. Eaten? >> Yes. >> Mr. Clark? >> Yes. >> Uh Mr. >> Yes. >> Mrs. Love? >> Yes. >> Mr. He? >> Yes. >> Mrs. >> Yes. Motion carries. Thank you. Item 6.3 is approval of TLC as a district-wide professional development committee. May I have a motion, please? I move that the board of education approves the purchase of furniture from Interior Environments in the amount of $36,276.73 as part of our shared services agreement as presented. >> 63, not 64. >> I'll support. >> Oh, >> that's all right. We went out of order. We'll just go out of order. It's okay. >> My ass. >> You see that one's not even on there. >> I just wanted that one. >>
009Okay. Okay. Are there any questions or discussions on item 6.4? >> 6.3. >> No, we just did 6.4. >> Mr. Ne skipped ahead. >> We'll go back. >> Yes, we'll go back. Are there any items or discussions on the shared service partner school purchases? Okay. Um, motion made and supported. All those in favor say I. I. >> Any opposed? Motion carries. Back to item 6.3. Can I get a motion, please? >> I move the board of education approves the teaching and learning council as the district professional development advisory committee as presented. >> Support. All right. Uh, motion made and supported. Are there any questions or discussions on 6.3? You'll remember this is something that we approve every year. Um seeing no questions or discussions, all those in favor, please say I. >> I. >> Any
010opposed? >> Motion carries. Item 6.5 is approval of the >> what? They're they're separate. These are separate. >> 6.4. >> I think we need 6.4.2. >> Yes. Sorry. Thank you. Uh item 6.4.2. 2 is approval of the Chromebook purchase. May I have a motion, please? >> I move the board of education approves the purchase of 130 Chromebooks from Computer Discount Warehouse Government in the amount of $30,573.40 as part of our shared service agreement as presented. >> Support. Are there any questions or discussion? Seeing none, all those in favor say I. >> I. Any opposed? >> Motion carries. Item 6.4.3 4.3 is approval of professional development for shared time teachers. May I have a motion? >> I move the board of education approves the purchase of 500 group registrations and enrollments in the amount of 155,000
011as part of our shared services agreement as presented. And that motion should probably say in the Michigan virtual professional development program >> support. >> Are there any questions or discussion? Seeing none, all those in favor, please signify by saying I. >> I. >> Any opposed? Motion carries. Item 6.5 is approval of the Clarkston Junior High School signage. May I have a motion, please? >> I move that the board of education approves the contract for DMP Sign Co. in the amount of $56,717 and the contract for Summit Advertising Inc. in the amount of $52,365. support. >> Are there any questions or discussion? Okay. Please remember this is the signage that's inside of the building. Uh I believe not the street sign which I think we talked about a little bit after the weekend review came out.
012Um seeing no questions or discussion, all those in favor, please say I. I. >> I. Any opposed? >> Motion carries. Item 6.6 Six is approval of the Clarkston Junior High School change order to bulletin 11, including the revised panel locations and linear lighting update. May I have a motion, please? I move the board of education approves a construction change orders for Metro Electric in the amount of $147,335, for Conte Corporation in the amount of $69,640, and for ECR Mechanical in the amount of $354,437 as presented. support. >> Support you. >> Are there any questions or discussion? Seeing none, all those in favor, please signify by saying I. I. >> Any opposed? >> Motion carries. Item 6.7 is approval of the annual resolution regarding the school B bond loan fund. May I have a motion, please?
013>> I move that the board of education approves the repayment resolution for the school bond qualification and loan program per the attached resolution. support. >> Are there any questions or discussion? Mrs. Rogers is here. Seeing none, Mrs. Mlan, can I get a roll call vote, please? >> Mrs. Sean, >> yes. >> Mr. Clark, >> yes. >> Mrs. McInness, >> yes. >> Mr. >> Yes. >> Mr. Hire, >> yes. >> Mrs. Love, >> yes. >> Mrs. Rick, >> yes. Motion carries. Item 6.8 8 is approval of the resolution regarding the issuance and designation of 2025 bond series 2. May I have a motion, please? >> I move the board of education approves a resolution authorizing the issuance and delegating the sale of the 2025 bond series 2 as presented as approved. >> Support. Right. Thank you.
014I think Mr. Nton is here with his team to give a quick presentation on this. >> That's right. >> Thank you very much. We have Chris Christine Griffins and R.J. Nton here from PFM to present. And then from PFM as our financial adviserss and then we have Max Hutchin here from uh Huntington Securities on the underwriting piece of our bond sale. Thank you. So just to talk a little bit about how this bond issue went. Uh I first wanted to start with a quick review of the steps and work that go into the bonds before we actually have to go to pricing. Part of that is putting together the preliminary official statement which shows um information about both the bonds and the school district. Um Huntington and PFM worked to put this together. Obviously critical
015information came from Mary Beth so we could get everything in there correctly. Uh the other part that goes into it before the bond sale is actually the rating call. Um, this year Moody's was particularly difficult with some of their questions they asked, but Mary Beth handled those questions uh with great skill and uh it helped a lot that Dr. Ryan put together a letter um that showed that the school district was committed to long-term financial plan that will um continue the sustainability into the future. And because of those things together, the school district was was confirmed at an A1 rating, which actually um made it much easier and gave us a good starting point for when we actually went into the day of the bond sale. So, I know that's hard to see from your
016seat, but this is just a summary of what our order period for when we price the bonds looks like. Um I know it's very hard to see but we were um there was a lot of interest in the bonds. We um were overs subscribed in all of the maturities from anywhere to two to 10 basis points through and the 10 basis points was through much of the front half. Um we started before the order period with a true interest cost in the bonds of 4.68 and by the end of the order period we're at 4.64 64, which is the best marker that we've had in quite a while. So, we were very pleased with how that order period went. And this next slide is just a quick um pricing comparison between another issue that went
017right in the same time frame. um not exact match for um how it was sold or the um specifics of the bond, but um the one we compared it to is Chelsea Community Schools. It was uh $26 million as opposed to the $119 for Clarkston, but they have the same rating. It was a competitive sale versus a negotiated sale that you guys did. But as you can see from up there that final that last column um the spreads over aaa rated scale were much better for Clarkson than they were for Chelsea. So we were very very pleased with that. >> Excuse me. >> Can can you read the bottom lines? I can't read any of it. So you're saying >> so I'm looking at the MMD spread comparison. Um, most of the maturities were better
018than our spreads for Chelsea with the exception of three um at the very end. But most of those spreads that were better were better from anywhere from 6 to 14 basis points. >> Okay. >> Thank you. >> Yeah, you'll be able to see it much better in there. >> Thank you. >> I just emailed everybody the presentation, too, so if you're able to pull it up. Thank you. Moving around. Okay. So here the next few pages are a couple summaries of showing how the bonds were issued in series. The original authorized amount by the voters 197.5 million. The first series of bonds was 66,335,000. Plus, there was premium that counted toward voter authorized principal because premium is deposited into the capital projects account. And some of that premium is treated like voter authorized principal because
019the net deposit into the capital projects account cannot be more than the voter authorized amount. And uh so the amount remaining after the first series was just over 125,351,000. And this bond amount of 119.6 million plus there was some premium that counts toward the voter authorized principal amount of just under 5,750,000. So that's the balance of the issuance. Um there is a little funds remaining and that's because bonds are issued in multiples of 5,000. That's not unusual. Um, next page is a little comparison of how the bonds were actually issued in the first two series compared to the plan at preliminary qualification when the ballot was presented and the preliminary qualification application was presented to department of treasury and the ballot was prepared. Um at that time if we look at the middle part the
020um bonds were expected to be issued in three series with this third series estimated to be issued in 2029. We ended up selling all the bonds in two series which is beneficial in many ways. Um, for one, it saves on issuance costs and also it provides opportunity to earn more on interest earned on bond proceeds because you're investing a larger amount for a longer period of time. Uh, so that was beneficial uh that we issue the bonds in two series instead of three series. Um as as you can see that the total bond amount totaled 185,935,000 and we had total premium to make up the difference um totaling the 197.5 million that was authorized by the voters. Uh moving on to the estimated bond proceeds for the project and this is just an estimate because
021much of this depends on the pace of the draws spending the proceeds on the project and also the interest earnings on bond proceeds during that time. So uh based on this um the estimated amount available for the project is 210,69,000 and compared to the 197.5 million estimated project amount at the time the ballot was prepared. That's an increase of 12,569,000 more funds estimated for the project. I consider that conservative estimate. Again, much depends on the pace that proceeds are spent and the interest earnings. Um, so that that is also worth noting the school district stay in school by loan fund cannot extend past 2035. That is the year of school loan fund mandatory loan repayment. And at the time the ballot was prepared, the projected stay in school by loan fund was to the year
0222035. And now the projection is to the year 2034. So, one year sooner than originally projected, the district would be paying off the loan with the state unless the district had maybe another bond issue between now and then. Um, also worth noting is the difference in interest rates. So, the first series came in at 3.93% compared to 4.5%. Really favorable rates at that time. Now interest rates have gone up um in 2025 and original estimate for the second series was 4.65% and we came at 4.64%. So not too far far off which is a average interest rate for both series of 4.39% compared to the 4.6% originally estimated. So very beneficial for the district. Uh the next slide, oh the next few slides are just a listing of the existing debt for the school district.
023Uh and there are seven bond issues outstanding. And um I think that's it that I parts that I wanted to highlight. I think Max is going to go into some further detail on the pricing. >> M Mr. No, can I just recap? So, you're saying we have $12 million, $12.5 million extra to spend potentially than what we originally estimated and we have $10 million less in debt and our interest rate is 2% better than we anticipated. >> Exactly. >> Okay. Thank you. >> Thank you, Mr. Hire. >> Thanks, RJ. Thanks, everyone. Uh, yeah, Max Hashkin. I'm the underwriter. So, I work for Hunting Capital Markets. we essentially find the investors to fund the project. Thanks again for allowing Huntington to work on another transaction for the district. I think RJ covered a lot of this
024here, so I'm going to uh go relatively quickly. Uh if anybody wants to sit down over lunch or Zoom call, I'm happy to dive in. Um this is just a transaction summary just talks about our to you know true interest cost of the 4 point 4.64%. Uh this is just the outstanding debt service as Christine talked about a little bit here. So this is just on this transaction here. So we issued $19 million in bonds. There's your debt service and there's just this transaction here. You know, in terms of capital markets, we always look at uh economic conditions. Uh so the day we price this bond issue really CPI was the only big big number that was coming out. So that's inflation came out really as expected. um we were the only bond issue in
025the market that day uh in Michigan. There was a couple Texas deals that were also pricing and really for that week there wasn't a lot of a lot of uh supply in Michigan which is good. That's what that's what you want you know in terms of progression. So here's just you know from the from the time we started to when we were done and we were able to lower bas you know yields anywhere from 10 basis points to two basis points which you know you think about a basis point at $120 million that's that's $12,000 a year for 25 years. You know really adds up. So those are comparables. That's just how we start with our pricing. Um, again, just different school districts that are priced in the past week or two. You know, this
026is what I sort of like to to look at here. This so this is our subscriptions. You know, we're anywhere from 2 and a half to 10 times overs subscribed. So, we had $62 million in orders for, you know, $119 million in bonds. And here's all your uh investors. So, next year will be 20 years from me. And I don't ever remember one buyer coming for the whole thing. Fidelity came in for all of it. That's that's that's a lot. Um, you know, $119 million, State Farm, Vanguard, and those we call those anchor orders. We can get those orders to come in. That's when you can really lower the yields. And again, that's just the the rating of the school district. I mean, kudos to to the A1. Uh there's a case study here. This
027is just again just a sort of transaction overview. And uh that's where I'm going to stop here. So again, I appreciate the opportunity. Uh any questions certainly can ask them or or answer them or again in the future if you have questions feel free to reach out. >> Mrs. Love, >> I just had a question about selling them in two series instead of three. Is there a downside to that? Because I'm just wondering why that wouldn't have been the plan. >> Well, your your municipal adviser would be the one to answer the the series questions. Um well the I think the only downside is if interest rates were lower with the third series and also the difference in interest rates of the incremental amount in between series. Um I I do think that it's worth
028uh avoiding the interest rate risk by issuing the remaining bonds together in this la last series uh because we don't know where interest rates would be in a few years and >> there's a possibility they go up. >> That's for sure. Yes, interest rate could go up or down yet. >> It just seems like they're kind of high right now. So >> yes, >> what what I've seen this year was very interesting where I think leading into the beginning of the year, we were expecting lower interest rates and all of a sudden the tariff talks happened and interest rates start to increase in beginning of April. By the way, I' I've forgot to mention that one of the reasons why the district's projected to be out of the school by loan fund a year sooner
029in along with having a lower interest rate on the combined series for series 1 and series 2 uh is the taxable value growth is better than originally projected. Correct. >> I would say the only disadvantage from my point of view and Mr. Goodwin might agree with me is it just compacts the number of years that we have to spend the bond funds. Correct. So you have to make sure that your planning and your execution of your projects fits in within the size and scope of when you sell the bunn money and collect and the repayment. Correct. >> That that is correct. Leading up to this we had to get an updated monthly draw schedule from a to show that we were meeting the spend down requirements. >> Other than that thank you. And and you
030mentioned earlier we do save on issuance cost because there is cost to actually go forward and prepare all the respectuses and do the credit rating calls and do all the steps that you just outlined. We save that by doing only two of those instead of three of those. Correct. >> That's correct. >> Do we have any other questions or discussion? >> Thank you very much for the presentation for the information. It's a lot for people like me who But I love that you guys love it so much. Thank you. >> So, >> uh, Mrs. Mlan, may I have a roll call for a vote, please? >> Mr. Ne, >> yes. >> Mrs. McInness, >> yes. >> Mrs. Love, >> yes. >> Mr. Hyer, >> yes. >> Mr. Clark, >> yes. >> Mrs. Egan, >> yes.
031>> Mrs. Crane, >> yes. Motion carries. Thank you. That is all of our action items. There are no report or discussion items tonight. Item nine is the second opportunity for citizens to address the board. Seeing no citizens in the audience, we can move on to item 10, which is information items. We have our annual board retreat tomorrow, August 12th, starting at 4:00 at Foley Sportsman Inn. We have a workshop meeting on Monday, August 25th, starting at 6:00 here in the board office. And our next regular board meeting will be on Monday, September 15th, which I believe it still says the 8th. What uh we moved it from the 8th, so it'll be the 15th. >> Yes. >> One other announcement. I just want to acknowledge and congratulate Mor Rogers from the role of assistant superintendent
032in this last part of her career. Uh all of her hard work in her uh almost decade and a half with Clarkson schools, including all the management with the bonds and everything else. Uh we've really appreciated your efforts. So congratulations and I only speak for our whole team up here together that you know we wish you well especially as you go in the last phase here. >> Thank you Mrs. Rogers. I know all of our high ratings are in huge part because of you. Much appreciated. Um item 11 is adjournment. May I have a motion please? >> I move to adjourn. Support. >> All those in favor please say I. I. Any opposed? We are adjourned.