AG says board should have used competitive bids - Shiner Gazette

AG says board should have used competitive bids to finance new school
Plans are to move to new campus over Spring Break
Thursday, January 18, 2007

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The method by which trustees of the Shiner ISD chose to finance the construction of the new school was not correct according to an opinion released by Texas Attorney General Greg Abbott.

According to the attorney general's (AG) opinion, the school should have competitively bid the lease-purchase agreement it used to finance the new school building project. The opinion comes as a result of the Texas Education Agency's (TEA) request for the AG to answer four questions that stemmed from a TEA audit. The questions dealt with whether or not the lease-purchase agreement should have been put out for competitive bids and if the proper procedure was used to hire the building consultant.

The document released by the AG's office stated it was permissible for the district to hire a consultant without a formal request for qualifications. However, the ruling was the first of its kind by either the attornery general or a Texas court the document stated.

Shiner ISD hired Chancellor Financial to arrange the lease-purchase financing for the $7.493 million school construction project.

Superintendent Trey Lawrence said the attorney general's opinion and ruling does not affect Shiner ISD but it does tell other districts how to contract for these services in the future.

Lawrence said the procedure the district used has been used by others in the past throughout the state but this is the first time it has been questioned.

"We followed steps recommended by our consultants and attorneys in entering into the lease purchase agreements," said Lawrence, "but it seems we should have advertised for bids."

"This ruling is the first of its kind pertaining to this specific matter and has set a precedent for lease purchase contract awarding," he said.

Lawrence said that another result of the attorney general's opinion may be that the legislature will address the matter and may set some guidelines.

Superintendent Lawrence also reviewed the financial status of the district, noting that tax collections for the reporting period amounted to $101,842.23, bringing the total collectioins to $1,793,964.63.

Total revenue for the month of December was $790,585.44, while expenditures totaled $914,810.50. Cash balance in the bank as of December 31 was 52,956,281.12.

As the building project enters its final stages, the balance in the lease purchase revenue bond account was 5676,257.69 and the personal property account was $1,147,337.94.

Architect Jim Singleton reported on the final work phase saying it will be tough and tight, but the Feb. 12 completion date is still in place.

Commissioner David Wagner informed the board that CR 348 is scheduled for upgrading later in the year.

The board approved a payment of $805,971.16 to Sterling Structures.

Mr. Lawrence said moving into the new campus is still scheduled for spring break, March 12-17. First day of classes in the new facility would be March 19.

In other action, the board reviewed the continuing education and board training hours of board members and set the date for an election of trustees.

SISD will conduct an election for board trustees on May 12, 2007. Positions on the ballot will be Place 3, currently held by Michael Huser, Place 5, currently held by Laura Kaspar and Place 6, currently held by Gloria Reindl. All positions are for three vear terms.

Prospective candidates may file for these places beginning Feb. 12 through March 12, 2007 in the SISD Administrative Office. Candidates mav file weekdays from 7:30 a.m. - 4 p.m. with the exception of March 2.

reprinted by permission.
The Shiner Gazette is published weekly in Shiner, Texas.
Agnes Sedlmyer, Managing Editor and Myra Lampley, News Editor
Contact them at 361-594-3346, or by e-mail at shinergazette@sbcglobal.net.

Shiner School Construction News | Construction Watch Home Page | Shiner Home Page

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