October, 2018 Special Meeting

Faulk, Hand, Hyde and Potter Counties, South Dakota Wednesday, October 31, 2018 8:00 a.m.

Pursuant to due call and notice thereof a meeting of the School Board of Faulkton Area School District 24-4, of Faulk, Hand, Hyde and Potter Counties, South Dakota, was held on October 31, 2018 at 8:00 a.m. in the Faulkton Community Center. The special meeting was called to order by School Board Chairman Jerry Weyand at 8:00 a.m.

Roll call of members present were Kelly Aesoph, BJ Kalkman, Scott McCloud, Ryan Nelson, and Jerry Weyand. Also present were Superintendent Scott Lepke, Business Official Lisa Hushka, Dean Marske from

HKG Architects, Val Ramsdell from the Faulk Co. Record, the following staff members: Vanessa Bowman, Jeremy Demery, Shayne & Melissa Geditz, Michele Latt, and the following district patrons: Carrie Deiter, Marilyn Hadrick, Stacy Hadrick, Gary Holsing, Randy Tisher, and Corrine Weyand.

2018-19.68. Agenda Approval. Motion by Aesoph, second by Nelson, to approve the proposed agenda. Unanimous.

Acknowledgments. No acknowledgements were made.

Conflict of Interest Waivers. No conflict of interest waivers were presented.

Open Forum. No comments were made.

2018-19.69. Minutes & Financial Approvals. Motion by McCloud, second by Kalkman, to approve the following consensus agenda: October 2018 Imprest Report, payment of the presented bills for October 31, 2018 and the minutes of the October 8, 2018 meeting. Unanimous. 2018.19.70. October 19, 2018 Minutes Amendment. Motion was made by Kalkman, seconded by McCloud, to amend the special meeting minutes from October 19, 2018 to delete: “Aesoph asked Marske if this elementary remodel plan was the best use of financial dollars and Marske stated it was not,” to the following dialogue: Aesoph asked “So Dean, can I ask you I guess a question, in one word, can you give me an answer? Do you think Plan D is the best use of our taxpayer’s dollars, the most responsible use of them? And that’s putting you on the spot, it is.” Marske replied, “I’m saying that, I’m saying I’m going with Plan E.” Aesoph said “I asked on Plan D, do you think?” Marske said, “No, I don’t think we’ll have the support of the teachers”. All members voted aye. Motion carried.

October 2018 Imprest Expenses: Travel Reimbursements: Shayne Geditz $29.40, Dacotah Bank $347, Jeremy Demery $15, Cecilia $69.61, Chase Casper $37.

Officials & Judges: Christina Bennett $194, Bruce Kleinsasser $161, Alyssa Krogstrand $110, Stephanie

Kjetland $129, Ashley Winter $85, Matthew Clark $125, Jeremy James $125, Doug Pietz $125, Mike Ruth $125, Wade Stobbs $200.60, Erin Schroeder $106, Mark Ulrich $104, Megan Hlavacek $60 Fees: Lake Preston School $25, NSU $65.

Other: National FFA $340 Registrations, KC Lumber $4.29 Repairs, NEAP $70 Registration, Craig Cassens $110.45 Supplies, Chris Ulrich $10.95 Supplies.

October 31, 2018 Bill Payments: Alex Alspach $71.30 Travel Reimb., Cardmember Services $1,318.74

Supplies, Fees & Equip., Cash-Wa Distributing $23.40 Supplies, Century Business $442.39 Services, City of Faulkton $270 Utilities, Decker Equipment $139.33 Supplies, Delta Dental $3,059.04 Insurance, Dustex

$95.40 Services, The Eye Doctor $244 Services, Faulkton Drug $25.96 Supplies, Faulkton School $2,773.30

Reimb. Imprest Fund, Hase Plumbing $5,041 Water Fountain, Hauff Mid-America Sports $31.34 Supplies,

Johnson Controls $9,583.94 Repairs, Kohlman, Bierschbach & Anderson $8,775 FY18 Audit (partial), Michele Latt $60.72 Travel, Marc $1,339.80 Supplies, Menards $66.20 Supplies, Nardini $169.42 Services, NorthStar Energy $2,037.98 Propane, Northwestern Energy $2,226.62 Utilities, NSU $653.39 Supplies, Reliastar Life Ins.

$24.05 Insurance, Reuer Sanitation $585 Services, School Specialty $87.54 Supplies, SDSTE $30 Fee, Tennant

Electric $299.09 Repairs, TLC Interiors $15 Supplies, Toennies Plumbing $223.38 Repairs, Venture

Communications $506.71 Phone/Fax/Interest Services, Wells Fargo $469.36 Lease, White River School $90 Fees, Wellmark $30,135 Health Insurance.

LRC Conference Changes. Shayne Geditz, Athletic Director, was in attendance to inform the board that the YTC Conference wanted to join the LRC conference in all sports. The LRC athletic directors decided not to allow this in volleyball and basketball due to travel time for events. The YTC schools will be added to the LRC conference in wrestling, track, cross country and golf. Track and golf will start this spring and the rest of the sports will start in the 2019-20 school year.

2018-19.71. Bond Issue Resolution Discussion/Details. Mr. Lepke stated the building committee has met since the last board meeting and both the staff and building committee have reviewed the plan and small changes were made. The newest plan is Plan E1 for $8,973,500. Lepke said the building committee has decided this is the plan they want to bring forward to the board. Lepke explained this is not the perfect plan, or the Cadillac plan, but we don’t need that. He said a lot of compromises have been made by the staff, the school board, and the community members, and this is the plan they would like to moved forward with. Plan E1 is a new middle/high school, new commons/kitchen/admin. office area, a complete remodel of the elementary, and a remodel of the current kitchen for a concession stand with those bathrooms remodeled and updated. Lepke said there are a lot of details about the transition and building period that need to be figured out such as temporary site locations. Mr. Lepke said Plan E is very feasible and will work for the needs of our students.

The board then looked at the figures Toby Morris (Dougherty & Company) provided for a $9 million bond for 20, 25, and 30 years. These figures also looked at 3.5%-4.5% interest rates. Weyand stated the board needs to figure out how many years the bond will be for. At 3.5%, the interest on a $9 million bond are approximately $3.801 million for 20 years, $5.077 million for 25 years, and $6.135 million for 30 years. At 3.5% interest the levy would be approximately $0.65 for 20 years, $0.56 for 25 years, and $0.50 for 30 years. Weyand said he thought 25 years would be the way to go. He said Gettysburg School went with 25 years. Weyand said it’s a little more interest than the 20 year, but it keeps the levy down. Weyand stated everyone needs to do their own personal figuring, because every quarter of land is valued differently, but he figured his personal highest cost at $1.03/acre (figured using ag valuation at 85% of true valuation) on a 25-year bond. The board discussed what the right answer should be regarding the length of the bond. Weyand said there are different opinions from different taxpayers but he thought 25 years would be a middle ground. All board members agreed that a 25-year bond would be a middle of the road compromise. Motion was made by Kalkman, seconded by McCloud, to set the bond resolution at $9 million for 25 years. All board members voted aye and the motion carried.

Weyand stated he would like to have the vote on December 18^th. There was discussion again about the opt out, the timing of passing it or voting on it, and whether or not there will be enough time if it isn’t decided on until the February board meeting. Board members voiced their opinions on which way they thought it should go, and the different scenarios that could take place. In the end, no definite decision was made on the opt out but a December 18^th date was set for the bond vote.

There was also discussion about when to bring the Construction Manager at Risk (CMR) on board. Weyand thought we could interview them right before the bond vote, and if it passes hire them right away. Weyand said if it fails there would be no reason to hire. Marske agreed with the interviewing beforehand. Marske thought it would be too hard for the CMR to have enough time to review the numbers before the vote.

Marske then apologized for bringing Plan E to the board before the building committee saw it last time.

Marske explained that since then the plan has been refined to Plan E1.

Aesoph then asked about the commitment to the debt if the bids come in too high. Hushka said Toby Morris stated the district isn’t obligated to the debt until the debt is issued, and that isn’t until the bids are awarded.

2018-19.72. November 2018 Regular Meeting. Motion was made by Kalkman, seconded by Aesoph, to move the regular meeting in November from November 12^th to November 5^th at 6 p.m. in order to pass the resolution in time to advertise for the December 18^th bond election. Unanimous.

Open Forum. 1. Corrine Weyand stated if people want to take out a petition on the opt out, it isn’t because they want it to fail or pass, it’s because they feel like their right to vote is being violated, and that’s why you need the people to vote. 2. Stacy Hadrick stated she respects what the building committee has done, but as an involved citizen, she has concerns about how the board plans to roll this out to the community. She said the board has talked about it a little bit, and as we know, the consensus of the building committee, the teachers, and the board were all a very important part of this, but the next huge section is community involvement on how this is going to look. Weyand stated there will be a community meeting after the bond resolution is passed and HKG will have drawings to present.

2018-19.73. Adjournment. Motion by Kalkman, second by Aesoph, to adjourn at 8:57 a.m. All in favor, motion carried.

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Board Chairman, Jerry Weyand Business Official, Lisa Hushka