School Board Retains Bond Underwriter

by Jonathan Weaver

The current bond firm representing Armstrong School District will also consult on bond refinancing before the end of this calendar year.

At their regular voting meeting last night, school board members voted unanimously for Piper-Jafray Companies to facilitate the refinancing of the $16.2 million bonds financed in 2007.

District Director of Finances and Operations Sam Kirk said those bonds can be redeemed in mid-November.

“Since they were working with the district and their rate was the lowest that was quoted, that’s why they were chosen,” Kirk said.

Piper Jaffray estimated final underwriting fees are not to exceed $3.90 per $1,000, as opposed to a negotiable $5 per $1,000 from Janney Montgomery Scott, LLC and not to exceed $3.95 from PNC Capital Markets.

Last week, Kirk explained Piper Jaffray’s underwriting fees have diminished more than $2 just based on interviewing the other two firms.

“Whether you liked the process or not or whether anybody thought it was a good idea, I think anytime you bring competition to the table, it will always get you a better price,” Kirk said. “If anything, even if we stick with the same company (Piper Jaffray Senior Vice President Randy Frederick) has actually given us the lowest price in the proposal.

(The price) is a lot lower than what they charged (the school district) the last couple of times they did.”

As he did last week, School Board President Joseph Close stuck with his vote to retain Piper Jaffray.

“I was also with (Frederick) –he’s done us well, saved us a lot of money with the refinancings, was always charging us a fair price,” Close said. “He was doing the job an underwriter does and getting us better rates, showing us what to do.

“Through the process, he even got his price a little cheaper. All in all, he wants to keep our business and likes working with us. He could’ve easily said ‘I’m not lowering my price’ but he wanted to lower his price to stay competitive – very competitive; almost at an entry-level rate.”

Region I Director James Rearic motioned for the four business items to be approved, followed by Region III Director Linda Walker

A pair of school board directors – Paul Lobby and Stan Berdell - were absent from the regular meeting.

During their proposals in September, each firm said it would take 30-45 days to initiate the refinancing and sign all necessary paperwork to sell the bonds before the end of the calendar year.

Jorn Jensen, of Worthington Borough, was concerned Piper Jaffray or another firm may be retained to consult on future bonds in order to construct Armstrong Junior/Senior High School’s new sports stadium.

“You’re task is education – I don’t understand why you’re going to put us further in debt for a stadium,” Jensen said.

However, Board President Joseph Close said a list of construction projects completed with the bond refinancing or new bonds has not been finalized.

“We’re still in that process of looking over these projects. It’s in the works that we may do those things, but we haven’t discussed and nailed those projects down yet,” Close explained.

Close later further said Piper Jaffray is not under a contract for other financial matters.

“There’s nothing holding us from going and getting somebody else,” Close said.

Last week, Kirk said he would like to stick with whichever firm was selected “and start building a long-term relationship with them.”

Resident Adam Grafton, of South Bend Township, hoped school board members would hold at least one public meeting near Dayton or Shannock Valley Elementary (if those schools will be renovated with the refinancing) to receive local feedback.

Another business items approved last night allowed district administrators to seek public bids to initiate energy conservation measures at the two elementary schools.

In other news, school directors also approved a LERTA resolution for Plumcreek Township – an action that was similarly approved by Armstrong County Commissioners last week.

1 Comment

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  By jorn jensen, October 11, 2016 @ 7:06 AM

  This was another typical ASD school board meeting - an agenda with no detail, 15 minute meeting with 7 unanimous votes on everything, no discussion, no debate. Another rubber stamp event. Amazing how well this board works together.

  Agenda item PERSONNEL was blank, but during the meeting, Joe Close mentioned that there were 17 items in the PERSONNEL agenda item (the largest agenda item line item count). Those 17 items were not on the paper agendas available for the meeting.

  This is the most stealth board in the universe. It operates ‘in public’ by keeping the taxpaying public in the dark - by design.

  People should attend these meetings and demand openness and transparency.

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