USD 408 saves money, postpones decision on vans years ago
Staff writer
The Board of Education of Marion-Florence USD 408, at a special midday meeting Tuesday, saved the district more than $40,000, signed the negotiated agreement with district teachers, hired a new vocal music teacher, and postponed purchase of a pair of mini-vans.
The board saved a total of $41,118.07 by "advance re-funding" of Series 1997 bonds. The plan was developed for the district by Stephen E. Shogren, senior vice president for public finance at George K. Baum & Company, Wichita.
The board had instructed Shogren two weeks earlier to do the refinancing if he could save the district at least $40,000. A low interest rate of 2.045 percent on re-sale of the bonds led to the significant saving in principal and interest payments.
This includes $40,000 for next year's USD 408 budget, Shogren said.
Bonds from USD 408 are "well-liked, and this is a good district," Shogren told the four board members present. Also, he lowered his fee to 1 percent on the transaction.
Interest rates are low now, he said, and many entities are re-financing their debts.
The agreement with teachers for the 2003-2004 school year was approved.
Kevin Moler, a recent graduate of Wichita State University, was hired, with a 4-0 board vote, as vocal music teacher for grades 7-12 in USD 408.
Martin Tice, district business manager, said he had solicited bids from six dealerships for provision of two mini-vans. Only three submitted bids. One missed the deadline and incorrectly submitted the bid, another did not meet all the district's specifications, so only one valid bid was received.
After agonizing over the decision for about 30 minutes, board members decided to reject all bids received. They will probably "rebid" the purchase later, during the next fiscal year, which starts July 1.
Tice said, "If we rebid it, we can't take the cost from this year's budget. It will have to come from next year's."
Board member Bruce Skiles suggested the board might think about buying government surplus vans for $10,000 or less, each. The new ones being sought for bid are in the $20,000 to $25,000 range.
Cruise control could be installed on each such surplus van for about $200 each, Skiles said.
Board member Keith Collett asked for the opinions of the three people who will join the board on July 14, saying, "You're gonna have to live with this." The three are Chris Sprowls, Sarah Cope and Kathy Meierhoff.
Cope said, "School buses don't have rear air conditioning."
The cost of air conditioning for the backs of the new, seven-passenger vehicles sought was a sticking point for several people at the meeting.
The three incipient board members' consensus view seemed to be that tough economic times call for tough measures.
Superintendent Gerry Henderson said, "It's an hour to Hutch (Hutchinson) or wherever, not a 20-minute school bus ride. Would you want your kids back there (without air conditioning)? I wouldn't."
He added that he felt buying cheaper mini-vans and "converting them," i.e. installing rear air conditioning, was not a good idea. After-market modifications of items have not worked well in the past, in his experience.
Henderson said the district would use the vans in all or parts of six months — April, May, June, August, September, and October — in which air conditioning would or might be needed.
Minivans are cheaper to use on the highway, since they don't use gas like a Suburban or similar-size vehicle. County roads, however, would beat the minis to death, he said.
The decision was made to wait and perhaps purchase the vans during the upcoming fiscal year.
Henderson said, "No child will be hurt or inconvenienced by this."
On another matter, he said members of the Marion High School Class of 2004 had approached Principal Ken Arnhold and asked if the commencement ceremony next May could be held on a Saturday instead of a Sunday; or, if not, if it could be moved up from the current 4 p.m. to a 2 p.m. starting time.
The request/proposal will be on the agenda for discussion at Monday night's regular meeting of the school board.
Henderson said the only problem he saw with making such a change was that that particular May Saturday is "makeup day" for state athletic activities, for use in case of postponements earlier in the week because of inclement weather.
"Let's see what the public thinks," he said. "Let's check and see what the downside is."
