Archive for Wednesday, March 12, 2003

School board agrees to hire bond consultant

March 12, 2003

School board members gave the go-ahead for the district to hire a bond consultant to lead the district through a bond election.

Monday night, after saying he was impressed with both bond consultants he interviewed, Erickson recommended that the board approve the George K. Baum and Company as consultant.

Also in the running was the Bancorp Piper Jaffrey company.

It was a close call, said Erickson, who had called other school districts for references on the two companies.

"I don't think the board could go wrong with either one of these bond consultants," Erickson said.

The George K. Baum Company charges $9,500 per bond issue regardless of the size of the issue, and they work on a contingency. And the Bancorp Piper Jaffrey company's fee is $8,500 if the election is between $10 million and $20 million, and $9,500 if it's between $20 million and $40 million.

In regard to an expected savings the district will receive by refinancing the last three years of the present bond debt on Tonganoxie Junior High School, Baum estimated a savings of $33,905, and Piper Jaffrey estimated a savings of $24,687.

Board member Ron Moore asked why, since Baum charged a higher fee, Erickson was recommending them. Erickson said he was more impressed with Baum's knowledge of school finance. After further discussion, Moore said to Erickson, "If you feel more comfortable with Baum, then that's fine with me."

Moore then made a motion to accept Erickson's recommendation, and the board board unanimously approved it.

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