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The West Virginia Lottery Building
900 Pennsylvania Avenue
10th Floor Conference Room
Charleston, West Virginia

March 23, 2015
9:00 A.M.

Note: To see the attachments referred to below please click the word 'Attachment' at the appropriate section and the information will be opened for your viewing.

 

I. CALL TO ORDER

II. ACKNOWLEGEMENTS AND RECOGNITIONS

III. APPROVAL OF MINUTES

SBA Quarterly Meeting of December 15, 2014 – (Action) – ATTACHMENT A



IV. EXECUTIVE DIRECTOR’S REPORT - Mr. David Sneed

A. New Appointments and Reappointments to the Authority - (Information)

Ms. Beverly Kingery has been temporarily assigned to serve on the SBA Board representing the State Board of Education. She will fill Mr. Robert Dunlevy’s unexpired term until November 2015, at which time the State Board of Education will assign a permanent replacement. Ms. Kingery will not be in attendance for the March meeting. The Oath of Office will be administered at the June Quarterly Meeting.

B. Legislative Overview – (Information)

Several Bills were introduced this Legislative Session that impacted the SBA. A summary of the final action on these Bills will be provided during the March 23, 2015 Meeting.
       
C. Update on Office Technology Improvements - (Information)

Mr. David Sneed / Mr. Scott Raines – ATTACHMENT B
At the request of the Governor’s Office and Members of the Authority, we have been reviewing the possibility of revising our use of technology to improve delivery of our services and services of our outside consultants. Attachment B provides a status report of our progress to date and provides recommendations for future technology upgrades within the office that will improve the operations of the agency. In addition we have provided recommendations for the use of Design and Construction Technology that will improve the quality of our construction documents, as well as, construction coordination and duration.

Click Here to see the Desktop Version of the new SBA Website

Click Here to see the Tablet/Smartphone Version of the new SBA Website



D. Purchasing Card (P-Card) Program Report – (Information) – ATTACHMENT C

One of the requirements of the P-Card Program is for the Authority members to review all purchases made by staff members. As such, Attachment C provides an itemized list of the SBA’s card usage for the period of November 1, 2014 through January 31, 2015.

E. New SBA Sub-Committee Assignments – (Action) – ATTACHMENT D

Given the loss of some Authority Members over the last two years and the appointment of new Members to the Authority, it will be necessary to reassign Members to Sub-Committees. We have been ask to provide recommendations of these appointments, Attachment D provides these recommendations.


V. FINANCE REPORTS – Mr. Garry Stewart


A. Analysis of Trustee Accounts - Trustee Accounts Report - (Information) - ATTACHMENT E

The financial reports of the trustee accounts held at United Bank of Charleston, WV and The Bank of New York Mellon for the period ending February 28, 2015 summarize the trustee functions of the SBA. The report includes a short summary of each bond series.

B. United Bank of Charleston – SBA Program Depository Accounts Report – (Information) - ATTACHMENT F

The financial report of the depository account that is maintained by United Bank for the period ending March 15, 2015, summarizes construction spending by the SBA for its School Construction and Major Improvement Programs.



VI. FINANCE COMMITTEE REPORT - Mr. Tom Lange


A. Refunding of Bonds – (Action) Mr. Garry Stewart – ATTACHMENT G

Upon review of our current Outstanding Excess Lottery Revenue Bonds with Public Resource Advisory Group, we feel that a portion of these bonds should be refinanced. Attachment G provides a summary of the proposed refinancing that provides a net-present value savings of $5,036,459.73. Should the Authority choose to refund these Bonds, a motion from the Authority will direct the staff to move forward with the refunding Bond sale. The Finance Committee will be considering this matter and will provide a recommendation during the March 23, 2015 Quarterly Meeting.



B. SBA Multi-Year Funding Commitment - (Information/Action) Mr. David Sneed - ATTACHMENT H

1. Wayne County – (Information/Action)
Wayne County received a NEEDs Grant to construct a new Ceredo Kenova PK-5 School, a new Crum PK-8 School and renovations and addition to Wayne High School. This was a multi-year funding commitment and the SBA provided $8,000,000 on April 28, 2014 that allowed the projects to progress to the construction documents phase. The grant contract requires an additional $10,000,000 in SBA funding to complete our commitment to Wayne County. The Project Development Schedule requires the county to move forward with this project and bid the work prior to June 15, 2015. Since we have moved our funding cycle to December 2015, it is necessary that we provide the final grant funding for this project in March to prevent project delays. The staff of the SBA respectfully recommends the Authority approve the final amount of grant funding in an amount not to exceed $10,000,000 for the Wayne County Projects as required in the grant contract. The Finance Committee will be considering this matter and will provide a recommendation during the March 23, 2015 Quarterly Meeting.

2. Hardy County – (Information/Action)
Hardy County received a NEEDs Grant to construct a new Moorefield High School and renovations and additions to East Hardy High School. This was a multi-year funding commitment and the SBA provided $11,000,000 in July 2014 that allowed the project to progress and the grant contract requires an additional $10,295,000 in SBA funding to complete our commitment to Hardy County. Since we have moved our funding cycle to December 2015, it is necessary that we provide the final grant funding for these projects in March to prevent project delays and cash flow problems. The staff of the SBA recommends the Authority approve this final amount of funding in an amount not to exceed $10,295,000 for the Hardy County projects as required in its grant contract. The Finance Committee will be considering this matter and will provide a recommendation during the March 23, 2015 Quarterly Meeting.

3. Brooke County – (Information/Action)
Brooke County presented a NEEDs project to the Authority in April 2014 that would construct a new consolidated middle school and provide HVAC renovations at Brooke County High School. The project financing plan required passage of a Local Capital Improvement Bond to effectuate these improvements. Brooke County requested an $18,000,000 NEEDs grant from the Authority and also proposed a local Bond call of $15,000,000 and Local Capital Improvement Funding of $3,000,000 to complete the financing plan. The Authority showed their support for the projects by providing a Reserve Grant of $100,000 to Brooke County and a grant contract was executed placing the $100,000 in reserve with the understanding that an additional $17,900,000 in SBA funding would be considered in future funding cycles. SBA funding was contingent upon the passage of their local Bond. We are pleased to report that Brooke County passed their $15,000,000 local Bond on November 4, 2014. These funds along with their $3,000,000 in Local Capital Improvement Funding will now complete their portion of the financing plan for these two projects. Brooke County will retire their current outstanding bonds in June, 2015. The county requests that the Authority consider their funding request as soon as possible to allow them to go to market with their Bond sale prior to the retirement of their current bonds and to prevent a lapse in their Bond tax collections. The staff of the SBA recommends approval of the first year of NEEDs funding in an amount not to exceed $12,500,000 to Brooke County based on their fulfillment of the Reserve Grant requirements the balance of their grant of up to $5,400,000 will be recommended for approval in the December 2016 funding cycle. The Finance Committee will be considering this matter and will provide a recommendation during the March 23, 2015 Quarterly Meeting.

4. Preston County – Additional Funding for the Addition and Renovation Project at West Preston Pre K-8 – (Information/Action) – ATTACHMENT I
Preston County has requested that remaining SBA funding approved for their Capital Improvement project at South Preston PK-8 School, be approved for expenditure on the only remaining project, the West Preston PK- 8 School. Preston County has sent the SBA Office correspondence, Attachment I, that they would like to forfeit these remaining funds and they would also request that these funds be reallocated to the West Preston PK-8 School project. The Authority approved all Grants separately and as a result the South Preston PK-8 School funds would require SBA approval of the forfeiture of these Grant funds placing these funds back into the Construction Fund. A separate motion will then be required to award these same funds back to Preston County for the West Preston PK-8 School project. The staff of the SBA has requested assurances from Preston County that they will provide the balance of funding required to complete this project. Based on Preston County providing this assurance, we recommend approval of this request.



The Finance Committee will be considering this matter and will provide a recommendation during the March 23, 2015 Quarterly Meeting.



VII.  CONSTRUCTION COMMITTEE REPORT

Procedural Changes in the Project Planning, Design and Construction Process - (Information) Mr. David Sneed / Mr. Scott Raines – ATTACHMENT J

For some time the School Building Authority has experienced problems with the project development, planning, design and construction process. Project scope creep and budget deficits are not being addressed in the pre-submission and planning phase of the projects where the staff of the SBA has not been engaged in these early phases over the past few years. Too often these problems have led to costly resolutions later in the design or construction phases. The introduction of our Construction Analysis has been very beneficial during the design phase and together, working with the staff of the SBA, we have been able to address problems with excessive square footage and costly design details. This partnership has saved over $8,000,000 in construction costs and avoided several million dollars in construction change orders. However, neither the SBA nor the Construction Analyst is a party to the Construction Contracts and our comments are not always incorporated into the bidding documents by the design firms. Revised project development and project delivery strategies are needed to allow the staff of the SBA more involvement and control of the projects. The creation of new policy will provide greater SBA control over future projects from the Development Phase through the Construction Phases. Attachment I provides a summary of several procedural changes that will be required to effectuate these changes.

VIII.  FUTURE MEETINGS

The 2015 summer quarterly meeting of the School Building Authority of West Virginia is scheduled to begin at 9:00 a.m. on June 22, 2015.

The 2015 fall quarterly meeting of the School Building Authority of West Virginia is scheduled to begin at 9:00 a.m. on September 28, 2015.

The 2015 NEEDs Grant Submission/Superintendent Interviews meeting is scheduled to begin at 9:00 a.m. on November 9 and November 10, 2015.

The 2015 winter quarterly meeting and NEEDs Grant project selection meeting of the School Building Authority of West Virginia is scheduled at 9:00 a.m. on December 14, 2015.



IX.  ADJOURNMENT