Finance & Audit Committee Meeting/Notes August 15, 2019

Agenda

 

August 15, 2019 Board Finance and Audit Committee Meeting

11:30 a.m. - Meeting Room A, Panorama Village Building

240 Villa Crest Drive

State College, PA  16801

 

 

        I.     Call to Order

 

       II.     Bond Sale Update

 

      III.     SCASD Education Foundation Financials - unaudited June 2019 (attached)

 

      IV.     Sponsorships Updated (attachment 1(attachment 2)

         

       V.     Electricity Renewal Opportunity (attachment)

 

      VI.      Solar Power Purchase Agreement 

                 A.   Evaluation Criteria Discussion

 

     VII.     Future Meeting Agenda Items

 

    VIII.     Public Comment

 

      IX.      Adjournment


APPROVED
August 15, 2019 Board Finance and Audit Committee Meeting Minutes
11:30 a.m. - Meeting Room A, Panorama Village Building
240 Villa Crest Drive
State College, PA 16801

Committee Members Present: Amber Concepcion, Scott Fozard, Jim Leous (by conference call), Laurel Zydney (by conference call)
Committee Members Absent:
Others: Gretchen Brandt, Randy Brown, Bob O’Donnell, Nancy Reese, Donna Watson

A copy of all materials Distributed to the committee members for discussion are included with the official minutes, unless otherwise indicated.

  1. Call to Order
    Mr. Fozard called the Board Finance and Audit Committee meeting to order at 11:42 a.m. and turned the meeting over to Randy Brown.

  2. Bond Sale Update
    Mr. Brown updated the committee on the outcome of the 2019 Bond Sale on August 13. The bond sale included the new money for the projects as well as the refunding for the previous debt. The School District achieved its lowest cost of borrowing on a 25 year new money bond issue at 2.74%, the next lowest being 3.17% on its 2017 issue. Bank of American bought 10MM of the 30MM+ bonds, that they will repricing and selling at a later date. The savings for the District will be $1.2 MM or over $110,000 annually through FY 2030. The bond sale closes on September 19 and Bank of America and Merrill Lynch representatives will be at the September 23 board meeting to provide the closing report.

  3. SCASD Education Foundation Financials 
    Mr. Brown reviewed the SCASD Education Foundation June 2019 financials. Mr. Brown advised that the contributions look a little different due to the Galen Driebelbis contribution, which has been included in the report in preparation for the audit statement. Due to the contribution being received over multiple years, reporting needs to be shown at the net present value, which is why it is not showing at the full $500,000 value. After the first year it will be recorded as present value received. Revenue and expenses are showing consistent with the anticipation of up to $107,000 of the $120,000 of the District funding being spent, after Mr. Olivett’s bonus is awarded. The 2019-20 budget will be presented to the SCASD Board in September. Discussion and questions followed. It was noted that pledges that were not received from the Maroon and Gray Event in 2017-18 and 2018-19 M&G pledge amount will show a 5% deduction, in anticipation of pledges not being received.

  4. Sponsorships Update
    Mr. Brown gave an update on the donations that have come through the SCASD Education Foundation recently. The following donations will be on the August 19 board agenda for approval.

    An Anonymous gift was given for the naming of the Home Team Locker room which will be received over the next five years at $40,000 per year totaling $200,000. The first $40,000 has been received.

    South Track Scoreboard donation of $33,375 was given for the scoreboard. The donation is in memory of Don Vinson, an Alumni and athlete of State High. The donation covered the full cost of the scoreboard, including installation costs.

  5. Electricity Renewal Opportunity 
    Mr. Brown updated the committee on the Premier Power options for an extension for electric utility rates. Discussion and questions followed. Mr. Brown stated that rates for power have been decreasing and that Premier Power provided options of 12 (0.0456), 24 (0.0480), 36 (0.0486) and 48 (0.0489) month extensions for consideration, with kilowatt hour rates noted in parentheses. The recommendation of Premier Power is to purchase a 36 or 48 month extension to lock in lower costs. Discussion on using solar in the next few years and the termination clause of a 36 or 48 month contract with the possibility of preventing using solar were discussed. It was determined by the committee that doing an extension of 12 months would give the Solar Working Group more time to develop data and criteria to make a better decision on the direction the district should take for their power purchase in the future. The committee will, therefore, make a recommendation to commit to a 12 month extension at the August 19 board meeting.

  6. Solar Power Purchase Agreement
    Mr. Brown discussed the need to be prepared to have district criteria in place for the topic of solar energy, so that SCASD representatives can accurately represent the district in the Solar Power Working Group. The district is the largest user of energy in the working group and, therefore, should have these standards in place moving forward. Mr. Brown and the Finance Committee members began looking at criteria and will continue discussions at future meetings. The following points were noted:

    Cost being the number one criteria
    Understanding a 10 to15 or 20 to 25 year commitment and the cost associated with both
    Understanding the terms and costs accurately
    What are the district short/long-term goals and priorities; costs or footprint
    What would be the renewable energy for supplemental power
    Energy consultant will be key on historical background
    Understand the criteria of others in the Solar Power Working Group

    Ms. Concepcion left the meeting at 12:50 p.m.

  7. Future Board Action Items
    Budget Process
    Sponsorships
    October 31 - deadline for Audit

    Mr. Brown updated the committee on the movement on Charter School reform package. Mr. Brown has been in contact with our Senate and House of Representative offices so that we can provide information on this topic and will keep the committee updated.

  8. Public Comment
    There was no public comment.

  9. Adjournment

Mr. Fozard adjourned the Board Finance and Audit Committee meeting at 12:56 p.m.

Submitted by,


Nancy Reese