February 22, 2016 at 5:00 PM - GMSD Special called Board Meeting

Discussion:  Chairman Linda Fisher called the Special Call Meeting to order at 5:01 pm.

Discussion:  Chairman Linda Fisher briefed on the purpose of the Special call meeting and requested the Superintendent, Jason Manuel to explain the process. Superintendent Manuel said that the this was based on the previous MOU signed between the City of Germantown and the Germantown Board of Education which talked about the share of commitment and process. He explained how this Agreement spells out how this could be processed with actual numbers and debt service details. Mr. Manuel, on behalf of the School Board thanked Mr. Patrick Lawton and the City of Germantown for stepping up to take this big historical undertaking towards this partnership, making our schools to be exceptional. City Administrator, Patrick Lawton, on behalf of the Board of Mayor and Aldermen and the City of Germantown, thanked School Board and the Superintendent, for this great relationship and partnership that exists between the two. Ms. Lauren Lowe, Director of Public Financial Management, Inc., the City's Financial Advisor, briefed on how this process was months and months of undertaking both for the City and the School Board. She said that the funds will be available after the closing on March 7, 2016 as expected. She also said that this is was a true competitive bid process and City of Germantown met with 25 to 30 banks about issuing the $18 Million in Bond Sale. With a small window frame of 15 minutes from 10:15 am to 10:30 am on February 22, 2016, in which six bank participated and First Tennessee Financial Capital Market (out of New York with a huge presence in Tennessee) won the bid. Ms. Lowe explained, - how the final numbers were computed in "exibit A" showing the allocations, sources and uses of these funds, - Four Million to be paid by the GMSD for the Riverdale Project, -Eight Million to be covered by the City of Germantown out of which Seven Million is for the Riverdale School expansion project and One Million towards other needed Capital Improvement projects of the School district - Pro-Rata Allocation of Project Funds, Costs of Issuance, Additional Proceeds and Total Proceeds for both GMSD and the City of Germantown -Bi-annual Payment schedule for both GMSD and the City of Germantown to cover the period of Thirty years for the total debt service Patrick Lawton justified the reason for the special call meeting, stating that the Germantown Board of Education had to act on this agreement before the Board of Mayor and Aldermen could vote on it. Board member Ken Hoover requested clarifications regarding the Disbursement procedure and the early payment process.

Discussion:  The Special Call Meeting was adjourned at 5:19 pm