LINCOLN PARISH SCHOOL BOARD
Ruston, Louisiana
REGULAR SESSION
Tuesday, November 5, 1991 6:00 p.m.
The Lincoln Parish School Board met in Regular Session on Tuesday, November 5, 1991 at 6:00 p.m. in the Board Room of the Lincoln Parish School Board Office, 410 South Farmerville Street, Ruston, Louisiana. Members present were: Mr. Allen Tuten, Dr. Phil Rice, Mrs. Loyace Braggs, Dr. Marty Beasley, Mr. George Mack, Mr. Andy Shealy, Mr. Jim Kessler, Mr. Wayne Barfield, Mr. Calvin Wilkerson, Ms. Ann M. Boyd, Mr. Paul Woodard and Mr. David Wright.
Absent: None
Mr. Allen Tuten, president, called the meeting to order and the invocation was given by Mr. George Mack.
Mr. Tuten recognized Mrs. Patsy Bullock, principal of Cypress Springs School, who presented Nancy Boddie, fifth grade student from Cypress Springs, to the board. Mrs. Bullock indicated that Nancy was an excellent student and citizen and described her as the type of student that is "every teacher's dream." Following the introduction, Nancy led the board in the Pledge of Allegiance to the American Flag after which Dr. Cobb presented her with a certificate of appreciation from the Lincoln Parish School Board.
Mr. Tuten welcomed guests and members of the staff and media who were present for the meeting.
Upon a motion by Mrs. Loyace Braggs, seconded by Mr. Paul Woodard, the board voted to approve the minutes of the Regular Session held on October 16, 1991.
There being no objection by the board, it was agreed that the agenda would be adjusted to hear representatives of the School Food Service Program, immediately following recognition of the National Merit Semifinalist.
In addressing the next agenda item which provided for the adoption of a resolution calling for the opening of sealed bids for Ruston School District Refunding Bonds, Mr. Tuten first asked if there were any other bids to be submitted at this time. There being no other bids, Mr. Tuten called attention to the resolution to be adopted by the board and, upon a motion by Dr. Phil Rice, seconded by Mr. James R. Kessler, the board voted unanimously to adopt the resolution providing for the opening of the sealed bids for the purchase of $11,930,000 of General Obligation School Refunding Bonds, Series 1991, of Ruston School District No. 1 of the Parish of Lincoln, State of Louisiana, approving the Official Notice of Bond Sale and Official Statement in connection therewith, and authorizing the President and Secretary of the Parish School Board to sign copies thereof as evidence of the approval thereof.
Prior to the opening of the bids, Mr. David Wolf came before the board to bring them up-to-date since the last board meeting.
The bids were then opened and read aloud as follows:
1. The first bid was the bid submitted by a group of underwriters headed by Howard, Weil, Weiss, Freidrichs, Inc. in New Orleans. All of the bids were required to be accompanied by a good faith check in the amount of 2% of the bond issue or $238,600, in the form of a cashier's or certified check made payable to the district. The interest rate specified by this bid will be included in the minutes. They run from 5.750/. to 6.25%. The true interest cost which is essentially the average of those rates is 6.202387%.
2. The second bid was submitted by Shearson, Leaman-American Express. It included a good faith check in the proper amount. This amount is led by Leaman Brothers. The interest rates run from 5.6% to 6.4% with true interest cost of 6.224210%.
3. The final bid was submitted by a group of underwriters headed by Scharff & Jones which is a division of Morgan, Keagan & Company. A good faith check is included. The interest rates on this bid run from 4.5% in 1992 to a high of 6.4% in 2005 and the average is 6.20077%. It appears that this was the low bid.
After opening the bids, Mr. Wolf asked to be excused to review the bids and to check for accuracy of figures in order to determine that the low bid was in order. He would come back before the board later in the evening and give an extensive detailed report on the actual sale of the bonds as it relates to the tax payer of Ruston School District No. I and the remaining steps that must be followed in order to compete the issue.
Special recognition was given at this time to Andrew Jacobs, National Merit Semifinalist at Ruston High School. Mr. Danny Garbarino, principal, gave a brief background on the requirements necessary to become a National Merit Semifinalist. He told the board that since 1959, we have had 78 semi-finalists. He commended Andrew and told the board that not only is he an outstanding student academically, but he was also on the all-state football team his junior year. Ruston High School had three additional students who transferred to Louisiana School for Math, Science and the Arts in Natchitoches after their sophomore year at Ruston High. These students were Guy Alexander, Blake Gnemi, and Patrick Ramsey. The board presented Andrew with a plaque of commendation and expressed their appreciation for his hard work and dedication.
At this time, Mr. Tuten recognized Ms. Pam Moon, manager of the cafeteria at Hico Elementary School, who came before the board on behalf of all School Food Service employees to express some concerns and problems that they have and would like to see addressed by the board. These concerns were expressed by Ms. Moon as follows:
"I have prepared a statement that will give you an idea of what our problems are and what we would like you as the board to help us do. We as the managers of the cafeterias have been working a lot of overtime trying to get our work done since the breakfast program has been in effect this year. We take home work which cuts into our family time and also leads to a lot of problems with our spouses. The managers are looking for another hour on our workday or to be paid for overtime work that we do. The clerks are working at least 16-20 hours each month trying to get their billing and their closing of their accounts done every month. They have been hired as 10-month employees, but they want to know why they have to work the 2 weeks before school and 2 weeks after school when a lot of them put in enough overtime during the year to make up for that time and they don't get paid for the overtime work. There has been a big turnover of clerks this year in the schools and we think a lot of this leads to the paper work. Our technicians are tired and we have had more complaints about them being tired this year than we have in any other year. We have had a lot out sick. I know at my school, mine have been out sick a lot since school started, probably more since school started this year than they ever were in all the years before that they have worked. We believe that this is caused from their being so tired and run down from being overworked. Also, lifting and carrying all the heavy things they have to carry causes a lot of aches and pains and now since we have the breakfast program to do, we have a lot more of this going on. We believe in the long-run that if you will provide extra help for the technicians, this will cut down a lot on the sickness and on the accidents that they are having. We believe we have a problem with our cleaning. We do a lot cleaning of ovens and warmers and, what we call our light housework chores that we do everyday and we have not been able to get this done which is causing problems with our health board. We have been getting written up for a lot of things that normally we don't get written up for. We have been real proud of the Lincoln Parish School cafeterias because we have always had a good record with the health board and we've hardly ever been written up but now we are having a lot of problems with that and also this is caused from lack of time and overworking. Our breakfast program has added to everybody's workload. It is not just the managers or the clerks or the technicians. Everybody is overworked and although on the surface, things look really good and look like things are settling down, there are a lot of problems underneath and we believe that if these problems are not handled now, they will be major problems in the future. We think that the lunchrooms have a high caliber of employees and they are not being treated very fairly."
Following these remarks given by Ms. Moon, Mrs. Theodos, School Food Service Supervisor, spoke in support of the cafeteria workers and the good job that they do. She indicated that the only problem that we have with this situation is the money or lack of it. Also, she told the board that we have a labor formula that the state requires us to adhere to. This also creates a problem. It was pointed out that the breakfast program is another mandated program, with no money allocated to fund this program. Local funds must be used to absorb the costs. Board members expressed their concern over the increased workload being placed on all of the cafeteria workers due to the breakfast program and a lengthy discussion followed.
Following the discussion and, upon a motion by Mr. David Wright, seconded by Ms. Ann Boyd, the board voted unanimously to accept the School Food Service personnel's request in writing and ask that Dr. Cobb, Mrs. Theodos and other staff members conduct a study of this problem to schedule action to address the problems and requests outlined by Ms. Moon, spokesperson.
Mr. Tuten and Dr. Cobb expressed the board's appreciation for the work that the School Food Service personnel are doing and for the manner in which they handled their business in going through the proper chain of command in approaching the board. They were assured that their requests will be seriously considered and analyzed by members of the staff and board.
The next agenda item to be considered by the board was a request presented by Mr. Richard Hinton, Supervisor of Transportation, for permission to declare as surplus bus number 13 and to advertise for bids to sell it to the highest bidder. Upon a motion by Mr. George Mack, seconded by Ms. Ann Boyd, the board voted to grant the request submitted by Mr. Hinton for permission to declare as surplus bus number 13 and to advertise for bids to sell it to the highest bidder.
At this time, Mr. David Wolf asked to appear before the board to report on the bid computations and to offer some words of explanation. Mr. Wolf reported to the school board that the three (3) bids were all correct and the low bid was submitted by Scharff & Jones at 6.20077%. This low bid will provide the school board with a total savings of $1, 810,000 in interest over a period of fourteen years. Each year this works out to a $158,000 of interest savings to the tax payers of this district which is roughly 2.33 mills. The present value of that savings is about $1.1 million. The board at this time considered adoption of a resolution providing for issuance of refunding bonds and provide all the details of the bonds. Mr. Wolf stated: "It would incorporate the interest rates that I just read out and award the bonds to Scharff and Jones together with the other bidders that were with them. It would lock in those savings that were read to the board. It provides for the appointment of Premier Bank in Baton Rouge as the paying agent. They are the paying agent on your 1985 issues and will continue as paying agent on the new issue. It also provides for the application of the proceeds of these bonds to pay off the 1985 bonds that are being refunded. Mr. Wolf explained to the board that what is happening is that the Lincoln Parish School Board is refunding only the callable maturities of the 1985 bonds. In other words, those bonds that mature in 1996 through 2005, the last 10 years of bonds. Those bonds aren't subject to call until 1995. So this $11,900,000 will be used together with some surplus tax revenues that you have accumulated over the last few years in this bond sinking fund to purchase about 6 or 8 U.S. Treasury Securities that will mature on each March 1 and September 1 through 1995. Those treasury securities will pay the interest on the bonds that we are refunding. So those bonds will be completely taken care of from those treasury securities and the securities will mature in 1995 and pay those old bonds off. You will have no further responsibility with respect to those maturities of the 1985 bonds and, in fact, will take them off your books. They will not show up as a debt any longer even though they will remain outstanding until the call. In replacement of those bonds will be this issue of 1991 bonds at the lower interest rate and as a result, lower interest cost and we will be replacing your old debt service with a new bond issue and it will cost you $160,000 on average a year less. That allows you to reduce the millage in the district and this is the whole reason for doing this refund---reduction of the millage. The paying agent from your bank will hold those escrow securities, not as a deposit, but as a trust account. They will be separate from the paying agent fund and separate from any other deposit. They will be held as a trust account for the benefit of the 1985 bond holders and the deposit will be irrevocable so you can't change your mind, you can't take them back, you can't alter it. Those bond holders will be taken care of irrevocably and between now and 1995, they will actually be secured by that escrow fund consisting of government securities. So, if anyone is holding a Ruston School District No. 1 bond issue that matures from 1996 to 2005, instead of looking to the credit of the school district from now on, they will actually be holding a U.S. government security because that will be the source of payment or debt service. That will all be taken care of by Premier Bank at my direction. I will be selecting the securities and instructing them as to the ones to purchase." If anyone is interested in buying any of these bonds, Mr. Wolf indicated that you could call any one of the firms. Of the firms that were interested in doing a negotiated sale with us, all were included in the 25 firms that bid with the exception of one. They all followed through and expressed interest in buying bonds. It was pointed out again that since these are not bank deposits or Certificates of Deposits, but are treasury securities, failure of the bank would not have any effect on them. It is the same collateral that our fiscal agent is required to put up to secure our school board bank deposits.
Upon a motion by Mr. James R. Kessler, seconded by Dr. Marty Beasley, the board voted unanimously to adopt a resolution providing for the issuance and sale of $11,930,000 of General Obligation School Refunding Bonds, Series 1991, of Ruston School District No. I of the Parish of Lincoln, State of Louisiana; prescribing the form, fixing the details and providing for the rights of the owners thereof; providing for the payment of the principal of and interest on such bonds and the application of the proceeds thereof to the refunding of certain bonds of said District; and providing for other matters in connection therewith.
Mr. Tuten spoke of his pleasure in being able to see the culmination of this procedure with the end result being to save tax payers some money.
Dr. Rice spoke to the board of his appreciation to Mr. Wolf for the excellent and professional manner in which he has handled this transaction for the Lincoln Parish School Board.
The board served as a Committee of the Whole and the following personnel items were addressed:
1. Upon a motion by Ms. Ann M. Boyd, seconded by Mr. David Wright, the board voted to accept the letter of resignation submitted by Lowlette Evans, special education aide at Cypress Springs, effective October 23, 1991, as presented by Ron Suggs.
2. Upon a motion by Mrs. Loyace Braggs, seconded by Mr. Wayne Barfield, the board voted to grant the request for Sabbatical Leave for the second semester of the 1991-92 school year submitted by Angela Thomas, teacher at Cypress Springs Elementary School, as presented by Ron Suggs.
3. Upon a motion by Dr. Marty Beasley, seconded by Mr. Jim Kessler, the board voted to grant the request for a leave without pay for the 1991-92 school year submitted by William Barmore, bus driver for Ruston School, as presented by Mr. Richard Hinton.
4. Upon a motion by Ms. Ann Boyd, seconded by Mr. Paul Woodard, the board voted to accept the letter of resignation submitted by Debbie Richardson, SFS clerk at Ruston Elementary School, effective October 18, 1991, as presented by Brenda Theodos.
5. Upon a motion by Dr. Marty Beasley, seconded by Dr. Phil Rice, the board voted to employ Terri Simmons as SFS clerk at Ruston Elementary, effective October 18, 1991,as presented by Brenda Theodos.
6. Upon a motion by Mr. David Wright, seconded by Mrs. Loyace Braggs, the board voted to approve employing the following personnel as presented by Mr. Charles Owens:
a. Howard Drayton as custodian at Cypress Springs, effective November 1, 1991 to replace Cardell Pringle, resigned.
b. Ivet Gipson as custodian at Cypress Springs, effective November 1, 1991 to replace Patricia Williams, resigned.
c. Carolyn Davis as custodian at Glen View Elementary, effective November 1, 1991 to replace Randi Harris, resigned.
d. Janice Jones as custodian at Ruston High School, effective November 1, 1991 to replace Sandra Davis, transferred.
e. Dorothy Spencer as custodian at Ruston High, effective November 1, 1991 to replace Earnestean Lyons, resigned.
7. As a point of reference, Mr. Owens informed the board that Sandra Davis, maid at Hillcrest, was transferring to Simsboro.
The sales tax report for October, 1991 was given by Benice McGee, Supervisor of Finance for the Lincoln Parish School System. She reported a slight decrease in collections from the same month in 1990. Collections were down .06% or $158.79. She indicated that sales tax expenditures were greater than last year and that collections would need to be consistent with a monthly increase in order for the salary adjustment given in June to remain the same as last year.
Following this report, Ms. McGee gave the financial update for September, 1991.
Ron Suggs reported on the Academic Awards Banquet held recently on October 21, 1991. He indicated that there was excellent participation and the event was well organized and well attended.
Information on the formation of a new class at Ruston High School at the beginning of the second semester of this school year was given to the board by Fred Higginbotham, speaking on behalf of Dean Jerry Andrews, Dean of the College of Education of Louisiana Tech University. This class, after receiving approval from the Board of Elementary and Secondary Education, would be an elective targeted at increasing the number of minority students entering the field of classroom teaching, especially male minority teachers. Mr. Higginbotham further indicated that college credit would be given for this course. He also said that the teacher of this course would be employed by Louisiana Tech and that this was not a grant but a program provided by Tech. The members of the board expressed much interest in this offering and entered into a time of questions and answers led by Mr. Higginbotham.
Dr. Cobb informed board members that the upcoming Louisiana School Boards Association Convention will be held in Alexandria on March 5-7, 1992 and encouraged them to make their plans to attend if possible.
In the Superintendent's report, Dr. Cobb expressed his appreciation to members of the central office staff for their dedication and hard work. Our system was recently commended for the efficient and thorough manner in which various programs and services are handled through the central office.
Members of the board offered comments and observations on various aspects of the school system at this time. Mr. Shealy expressed concern due to the continued problems we face with programs being mandated but not funded. He suggested the Lincoln Parish School Board begin now to investigate ways in which we might help to raise funds for education in Lincoln Parish. Dr. Cobb indicated that he would put together some information in concise form for members of the board to bring them up-to-date on our situation.
Comments were heard from Mr. Jim Kessler who is serving on the state textbook committee. He told the board of some of the work being done in that area.
Also commenting on some of the financial problems facing the board was Mrs. Loyace Braggs.
Dr. Marty Beasley, as Lincoln Parish Legislative Liaison representative, gave the board a brief overview of the meeting held recently in Baton Rouge.
There being no further business, the meeting was adjourned at 7:45 p.m.
Gerald W. Cobb, Secretary Allen Tuten, President