CLEARFIELD – The Clearfield County Career and Technology Center’s Joint Operating Committee heard from Executive Director Lois Richards at its regular meeting Monday night, who updated it on the center’s two renovation bond issues.
Last month, the committee approved a parameters resolution, 5-1, in order to refinance the bonds, which were in the amounts of approximately $8 million and $1.4 million from 2005 and 2006. In addition, they set the net present value savings at no less than 2.5 percent of the par value.
Richards advised that they were still in the preparatory phase, and it will take at least another six weeks. She said their next step is to move forward and seek approval from the member school districts.
“It takes a lot of preparation,” she said. She told the school district representatives that they will communicate to the school boards via the superintendent.
In addition, Richards said that Les Bear of Robert W. Baird & Co. believed that the CCCTC had the potential to save in the area of $227,000. Last month, she said they believed their savings would be closer to $160,000 to $180,000.
She stressed that these figures change on a daily basis, and they cannot be sure of their exact savings amount at this time. But she told the committee that they saved approximately $20,000 by not going through another firm.
At last month’s work session, the committee debated whether or not to utilize a competitive bid process to refinance its debt. Phil Carr of the Clearfield Area School District mentioned that his home district has a financial advisor and utilizes a competitive bid process for bond refinancing. When asked for a recommendation, he indicated that Clearfield uses Public Financial Management LLC (PFM) of Harrisburg.
Then, Jamie C. Shelby, director of public finance with Robert W. Baird & Co., said his firm acts as both financial advisors and as underwriters. He said there wasn’t any reason that they could not conduct a competitive bid process. However, he didn’t believe it was necessary under the circumstances, as the parameters resolution gives them “flexibility” and allows them to “adjust” to the market.
Shelby indicated while the PFM Group was a “fine firm,” an excess of 60 percent of its bond pricing was done through a non-competitive process. He also said his firm was complimented as “the best” and among “the most aggressive” in Pennsylvania.
“If that’s of any comfort to you,” he said to Carr. At that point, Smith asked if there was sufficient time to advertise for competitive bids. Superintendent of Record Norman Hatten said he didn’t believe the question could be addressed accurately, as market figures could change at any time.
Kitko then questioned Carr about his reasons for hearing another presentation and seeking out competitive bids. Carr believed there was a chance at better rates if they shopped around. He preferred that they consider a presentation from the PFM Group before making a final decision.
Kitko pointed out that the PFM Group wouldn’t be able to provide any more information to them. He said that neither the Robert W. Baird & Co. nor the PFM Group would give them “locked in” rates and savings until hired.
“How would we be any more able to make a decision,” Kitko asked. Carr said that was a “good question.” During the regular meeting, Carr requested that the committee vote on the parameters resolution separately.
Last month, committee members Rodney Kitko of Moshannon Valley; James Smith of Philipsburg-Osceola; Jason Sunderland of Harmony; Larry Allen of West Branch; and Ken Veihdeffer of Curwensville all voted in favor. Carr cast the lone opposing vote.