June 20, 2017 at 12:00 PM - Board of Education Special Meeting

Discussion:  Pres. Olsen called the meeting to order at 12:02 pm.

Discussion:  Pres. Olsen led assembly in the allegiance.

Discussion: 

Supt. Lefdal used a presentation to summarize for the Board an assessment of the entire Wellington facility including the bus barn. The current bus barn sq. footage was assessed adequate for District needs, however, areas of concern were storage, tile, transitional flooring concerns, pit fill in, breezeway & leaking, venting concerns, alarm system, door security, fire exit & emergency lighting, minimal hot water, broken glass, heating unit in office, exterior downspouts, electrical, exit rails and steps, in addition spot repair will be difficult due to the volume of damaged areas, and once any changes begin to be made with the facility we will void "grandfathering" and will need to be brought up to code. The estimate of dollars of these repair costs were addressed with some items being mandatory and more immediate while others could be considered discretionary at this time. Estimate of total costs would be approximately $325k with $150k in the next 1-2 years and approximately $65-70k in immediate concrete needs. Wellington is approximately 55 years old with minimal upkeep once that site was left 25 years ago. An agreement to sell with lease option was discussed, however, investing money in a facility we do not own and are leasing was not advised per the District legal counsel. New building financing was estimated at $600,000, 20 year with balloon payment at year 7. Interest rates at time of addition a year ago were 2% and now we are looking at approx. 3.8% and above. Supt. Lefdal noted just with all other factors constant the cost of a bus barn has increased $70k with the increase in interest rates since the District considered a year ago. Supt. Lefdal presented a table of the related cost of continuing to wait and invest in a new facility. Supt. Lefdal was also asked to research surrounding projects if any and noted both Alma & Holdredge have projects underway that include transportation facilities and though not exact comparables in any say, both projects are $500k to $1.2m respectively.

Discussion:  Nick Schultz inquired and Supt. Lefdal said disclosure of all reports will be made. Kathy Kuenning expressed budget concerns, as a former Chase County Board Member, stating for a taxpayer, the timing of another new building would be difficult. Discussion highlights included Wellington is zoned residential, and current lighting does not meet energy code requirements, however Member Terryberry said the property demands for energy and safety for maintaining the property as part of the school District are much greater than a private owner would have to maintain. Supt. Lefdal noted in the proposed financing, the District is looking at an annual $40,000 principal & interest payment, which he says can be made within the existing budget. In addition, he added that State of Nebraska has set the 17-18 valuation max at a 1.5% increase and the State has indicated a 0-1% increase in the following year, asking would not increase.

Discussion: 

Financing - Olsen, banks requiring 7 year balloon. Reeves 20 year. Both options were presented. FSB, Adams & Pinnacle. Interest 3.8% best rate for 20 yr term.

Meeske, better way, neglected maint because we were going to move forward. Stromberger was wanting to have sale proceeds to apply towards new construction, Wallin can't sell without a place to go. Stromberger inquired as to committee's assessment of "other sites" and Oneil & Terryberry both affirmed yes considering drainage, other buildings, and still considering keeping adequate ground for future needs. Stromberger also thanked the committee for all of their work and Strands concern is the timing of another new construction project. Meeske Current structure was originally built as an ag shop, not a bus barn. Penny -hold off a year or two. First year the maint portion will be the same as the building payment.

kuenning - what can we afford and how much is the limit. Stromberger and Schultz inquired regarding re-zoning of the property. Reeves 'land owner and former Board".... still separate location with depreciating property. one year down the road "a considerable increase".  current bid is very competitive. Nothing excessive, functional, corners aren't cut. Olsen, it makes sense for the District but he challengers tax payers are still going to see an increase in the levy, Supt. Lefdal believes their is a place to absorb that $40k.  Oneil, let's make a decision, stay or go from Wellington. Liability issues were discussed. Importance of the quality of the facility for our employees. Olsen would put it off for 1-2 years and he is speaking for "taxpayers" and both Reeves & Terryberry expressed opposing opinions from other tax payers who believe it is the best interest LT. Stromberger thank you to the several public members present but it is the Boards responsibility to educate the public. Mandatory, fire exit doors $6000 and concrete $65000.

Discussion: 

ETA date on bid is December/January. 45-60 days for auction. Auction entire Wellington property, however, discussion on parceling, building vs. football field. Member Olsen was not in favor of parceling off. Member Meeske suggested selling combined option and then selling parcel A & B and them combined would have to be equal to or greater. Member Reeves suggested immediate possession on all but bus barn/office. The Board agreed the buyer(s) will be responsible for survey off cost, if this option is pursued. Member Meeske emphasized all would be contingent to the buyer. Board discussed auction costs, noting it would be a % or minimum would be cost to advertise. Board agreed to have committee pursue auction options and the Board would then intend to act upon terms of sale and contract with auction service at the next meeting.

Discussion:  Meeting adjourned at 1:30 pm.