Additional Details

Special Board of Education Meeting

AGENDA

Friday, June 27, 2014

7:30 AM

DeLayo Martin Community Room, Alice and Bruce King Educational Complex, 6400 Uptown Blvd. NE

Albuquerque, New Mexico

Minutes of Special Board of Education Meeting

Albuquerque Public Schools

A Special Board of Education meeting of Albuquerque Public Schools was held Friday, June 27, 2014, beginning at 7:30 a.m. in the DeLayo Martin Community Room, Alice and Bruce King Educational Complex, 6400 Uptown Blvd. NE.

I.        Call to Order        

            The meeting was called to order at 7:30 a.m.

1. A.           Roll Call

Present: Dr. Analee Maestas, Lorenzo Garcia, Steven Michael Quezada, Dr. David Peercy

Absent:            Kathy Korte, Martin Esquivel, Dr. Don Duran

1. B.            Adoption of the June 27, 2014, Special Board of Education Meeting Agenda and Approval of the June 13, 2014, Board of Education Meeting Minutes (Discussion/Action)

Mr. Garcia motioned for adoption of the agenda with a movement of agenda item II.A.I. to be held before agenda item II.A. and agenda item II. C. should read $94,305,000 instead of $102,450,000, and approval of the minutes. Dr. Peercy seconded the motion.  Board members unanimously adopted the June 27, 2014, Special Board of Education meeting agenda with the changes recommended and approved the June 13, 2014, Board of Education meeting minutes.

II.      Special Issues       

A.       Consideration to Award $15,000,000 Education Technology Lease Purchase Arrangement and Notes Series 2014, and Approve Note Purchase Agreement (Discussion/Action)

Goal Two: Financial Stewardship

Don Moya, chief financial officer, reviewed the timeline of awarding the lease purchase arrangement of the education technology notes. On June 26, 2014, final terms and interest rates were received for sale of the Series 2014 education technology lease purchase arrangement and notes. At today’s meeting, the final terms and interest rates of the lease purchase arrangement and notes sale award resolution documentation were presented for review and approval.  The award resolutions and the documents will be signed for inclusion in the lease purchase and note documentation.  Closing on the lease purchase and note sale will occur on August 5, 2014.

Issues discussed regarding this agenda item:

• Advantages of using negotiated  agreement
• Benefits of APS’ upgraded rating
• Underwriter contributions to presenting APS with a stable and positive outlook
• Gratitude for the expertise of the RBC staff
• Average cash balance of other New Mexico school districts and government entities
• Difference of methods of government entities to obtain funds; for example, the county has a large tax base that generates funding directly for county purposes
• Importance of board members attendance at bond rating meetings

Dr. Peercy motioned for adoption of the award $15,000,000 education technology lease purchase arrangement and notes Series 2014, and approval of the note purchase agreement.  Mr. Garcia seconded the motion.  Board members Maestas, Garcia, Quezada, and Peercy approved the motion.

1. I.             Public Forum Regarding General Obligation Education Technology Notes

There were no participants of public forum.           

B.       Consideration to Award $75,000,000 General Obligation School Building Bonds, Series 2014A, and Approve Bond Purchase Agreement (Discussion/Action)

Goal Two: Financial Stewardship

Don Moya, chief financial officer, reviewed the timeline of awarding the series 2014A general obligation school building bonds. On June 26, 2014, final terms and interest rates were received for sale of the Series 2014 A bonds. At today’s meeting, the final terms and interest rates were presented for review and approval.  The award resolutions and the documents will be signed for inclusion in the bond documentation.  Closing on the bond sale will occur on August 5, 2014.

Martin Esquivel motioned to award the $75,000,000 general obligation school building bonds, Series 2014A, and approve the bond purchase agreement. Dr. Peercy seconded the motion. Board members Maestas, Garcia, Quezada, and Peercy approved the motion.

C.       Consideration to Award $102,450,000 General Obligation Refunding Bonds, Series 2014B, and Approve Bond Purchase Agreement (Discussion/Action)

Goal Two: Financial Stewardship

Don Moya, chief financial officer, reviewed the timeline of awarding the series 2014B general obligation school refunding bonds. On June 26, 2014, final terms and interest rates were received for sale of the Series 2014B bonds. At today’s meeting, the final terms and interest rates were presented for review and approval.  The award resolutions and the documents will be signed for inclusion in the bond documentation.  Closing on the bond sale will occur on August 5, 2014.

The amount of the general obligation refunding bonds Series 2014B was changed to $94,305,000 due to a savings gained by refinancing the 4.56 percent interest rate with 1.87 percent interest rate, resizing the debt to what is needed by the district and the $17 million premium received at the sale of the bonds.  Lorenzo Garcia motioned to award the $94,305,000 general obligation refunding bonds, Series 2014B, and approve the bond purchase agreement. Steven Michael Quezada seconded the motion. Board members Maestas, Garcia, Quezada, and Peercy approved the motion.

D.      Consideration for Approval of the Resolution Approving Continuing Disclosure Compliance Procedures for Bonds (Discussion/Action)

Goal Two: Financial Stewardship

Don Moya, chief financial officer, explained about the need to approve the resolution because the Securities Exchange Commission (SEC) has strongly urged issuers of tax exempt bonds to acknowledge its continuing disclosure obligations as set forth in SEC Rule 15c2-12. These obligations are in the form of a continuing disclosure undertaking, which is part of the bond and note transcripts.  This resolution acknowledges that the Board of Education is aware of the existence of these continuing disclosure obligations. 

Dr. Peercy motioned for approval of the resolution approving continuing disclosure compliance procedures for bonds.  Mr. Quezada seconded the motion.  Board members Maestas, Garcia, Quezada, and Peercy approved the motion.

I.        Discussion of Revisions to Tax Compliance, Record Retention and Disclosure Procedures for Bonds and Notes (Discussion)

Carrie Robin Brunder, legislative liaison and policy analyst, Art Melendres-legal counsel, Modrall, and Don Moya-chief financial officer, presented the need to make revisions to the tax compliance, record retention and disclosure procedures for bonds and notes due to SEC regulations.

III.     Superintendent Report   

                        Superintendent Brooks reported on the following:

• Superintendent’s Cabinet attending all day cultural-proficiency training
• Receipt in writing of the denial of waiver request from Dynamic Indicators of Basic Early Literacy Skills (DIBELS) testing for Reads-to-Lead program requirements
• Accepting the $1 million Reads-to-Lead grant 
• Discontinuance of the Developmental Reading Assessment (DRA) as a testing requirement for the APS district, but will be available for teachers if they want to use it to support their lessons plans

IV.     Board Reports       

Board members expressed support for continuing to build relationships with charter school administrations and offering opportunities for participation and support.

V.       Announcement of Upcoming Board Meetings        

The next Board of Education meeting will be held on Wednesday, July 16, 2014, at 5:00 p.m., in the John Milne Community Board Room and the next Special Board of Education meeting will be held on Friday, July 25, 2014, at 7:30 a.m., in the DeLayo Martin Community Room.

VI.     Adjournment        

The meeting adjourned at 8:15 a.m.

APPROVED: ________________________

            Dr. Analee Maestas, President

ATTEST: _____________________________

               Steven Michael Quezada, Secretary