The Ellsworth-Kanopolis-Geneseo school board Monday night approved superintendent Eric Reid’s proposal to hire a consultant, Piper Jaffray of Kansas City, to assist the district as it grapples with the idea of a special bond election.
Reid also recommended the board have a special meeting — set for 5:30 p.m. Jan. 23 —to hire an architectural firm for the potential bond issue.
And, finally, he suggested the board hire a bond attorney to assist with legal issues, if the board decides to pursue a bond issue.
Reid said the bond assistance firm, Piper Jaffray, works on a contingency fee, receiving payment only if the bond issue passes. The rate is usually .5 percent of the bond issue. On a $10 million bond issue, the fee would be $50,000.
School board member Deneen Urbanek voiced reservations about hiring firms before the board decided whether to seek a bond issue.
“It just seems like we are already moving forward and the board hasn’t even voted if we are going forward,” Urbanek said, “I don’t know what we are looking for. We should make a decision if we are going forward, if that is what we are doing.
“I think that is what we have to do to get the best possible information,” Reid responded. “And I agree with you. It does kind of seem backwards. It’s just part of the process to get the right numbers. For me to pick a number in December and give you a recommendation, it would not have been good.”
Board president Gina McGowan made the observation that for most school board expenditures, such as a bus, the board knows a price beforehand. Construction projects are different due to the many variables and legal aspects of construction, she said.
Reid said architects are needed to draw tentative project options. They will be paid hourly initially and later work on a percentage fee if the board moves forward with the bond issue.
Reid said seven firms are vying for the work and three will be selected to meet with the board at the Jan. 23 special meeting.
Board attorney John Sherman said a firm or attorney that specializes in bond issues would be an asset to the board.
Reid said any bond issue was at the mercy of the 2012 Kansas Legislature.
“The legislature could decide to retroactively do away with the 30 percent bond issue assistance,” Reid said. “If that happens, then the bond issue is dead. I can’t in good conscious ask our patrons to carry the burden of a bond issue without help. It would just be too much.”
The next meeting of the USD 327 school board will be at 7 p.m. Feb. 13 at the district office in Ellsworth.