Mt. Vernon Administrative Service Center
Monday, May 15, 2023
- 7:00pm - 9:00pm
Please reference Policies H 225 - (Public Participation at Board Meetings) and B225 (Meetings) for guidance on providing public input on an agenda item.
Board Policies can be found at www.mvcsc.k12.in.us
Recognize the Indoor Percussion Group State Championship.
You are hereby notified that a public hearing will be held before the Board of School Trustees (the "Board") of Mt. Vernon Community School Corporation (the "School Corporation") on May 15, 2023 at the hour of 7:00 p.m. (Local Time) at the Mt. Vernon Administrative Service Center 1806 West State Road 234, Fortville, Indiana, upon a proposed Fourth Amendment to Lease (the "Fourth Amendment") to be entered into between Mt. Vernon School Building Corporation of Hancock County (the "Building Corporation"), as lessor, and the School Corporation, as lessee.
The proposed Fourth Amendment upon which the hearing will be held amends the existing Lease Agreement originally dated May 16, 2007, as previously amended (as amended, the "Original Lease", and together with the Fourth Amendment, the "Lease"). The Fourth Amendment increases the rent payable thereunder in exchange for further renovation of and improvements to the property which is subject to the Fourth Amendment (the "Leased Premises"). The Fourth Amendment increases the annual Lease rental by a maximum of $2,000,000, payable on June 30 and December 31 beginning with the completion of the renovation of and improvements to the Leased Premises or June 30, 2024.
As additional rental, the School Corporation shall maintain insurance on the Leased Premises as required in the Lease, shall pay all taxes and assessments against such Leased Premises, as well as the cost of alterations and repairs, and shall pay rebate amounts to the United States Treasury, if necessary. After the sale by the Building Corporation of its bonds (the "Bonds") to pay for the cost of the renovation and improvements, including any other expenses incidental thereto, the increased annual Lease rental stated above shall be reduced to an amount equal to the multiple of $1,000 next higher than the sum of principal and interest due on the Bonds in each twelve-month period ending on January 15 plus $5,000, payable in equal semiannual installments.
The Lease gives an option to the School Corporation to purchase the Leased Premises on any lease rental payment date. The Leased Premises includes a portion of Mt. Vernon High School located at 8112 North 200 West, Fortville, Indiana in the School Corporation.
The plans and specifications, including the estimates for the cost of the renovation and improvement, as well as a copy of the proposed Fourth Amendment, are available for inspection by the public on all business days, during business hours, at the Administration Building of the School Corporation, 1806 West State Road 234, Fortville, Indiana.
At such hearing all persons interested shall have a right to be heard upon the necessity for the execution of the Fourth Amendment, and upon whether the increased lease rental provided for therein to be paid to the Building Corporation is a fair and reasonable rental for the renovations to the Leased Premises. Such hearing may be adjourned to a later date or dates, and following such hearing the Board may either authorize the execution of the Fourth Amendment as originally agreed upon or may make modifications therein as may be agreed upon with the Building Corporation.
Dated this 7th day of April, 2023.
(The School Corporation is funding this project through a lease financing, as it has done with other past construction/renovation projects. Lease financings are used by school corporations across the State of Indiana in order to borrow for renovation and construction.
The Mt. Vernon High School building is currently subject to a financing lease. Therefore, we are amending that Lease to increase the lease rental due from the School Corporation. In exchange for the increased lease rental, the Building Corporation will use the bond proceeds to make the needed improvements to the building. The increased lease rental ,as shown as a maximum amount in the Fourth Amendment to Lease, will be sufficient to pay the principal and interest due to the bondholders.)
As required by the School Leasing Statute (IC 20-47-3), after a hearing, the School Board must approve the Fourth Amendment to Lease and authorize the officers to execute such Agreement. This Lease is the agreement whereby the School Corporation will levy the required property tax to pay the lease payments. The lease payments will be paid to the Building Corporation and used to pay the bondholders. Without the Lease, bondholders will have no assurance that the Building Corporation will repay the bonds. The Lease is the mechanism by which the property tax collections can get to the bondholders.
The Building Corporation currently owns a portion of Mt. Vernon High School. The Building Corporation will also be the issuer of the bonds. The bond proceeds will be held by the trustee bank, and will be used to pay the contractors for the construction work. As a result, the construction bids and contracts will need to be with the Building Corporation because the Building Corporation will hold the money to pay the contractors. The School Corporation receives the bids and/or contracts and awards the bids and/or contracts under State law but then assigns those bids and/or contracts to the Building Corporation.
The Securities and Exchange Commission requires that a school corporation enter into a Ninth Supplement to Master Continuing Disclosure Undertaking before it issues bonds. The School Corporation has previously entered into this type of agreement. The agreement requires that the School Corporation agree to timely provide certain financial information to the SEC's EMMA database (www.emma.msrb.org) and provide notice of any material events.
E-06 – Misc. and Ornamental Metals to Indiana Steel Fabricating in the amount of $482,500. This includes Alternate #2 for Tubular Skylights.
E-07 – Framing, Drywall & Ceilings and E-09 Metal Panels to Quality Walls and Ceilings in the amount of $4,128,900. This is based on an optional combination bid submitted by the contractor for both packages, and includes Alternates #3 for moisture resistant drywall, #4 for exterior sunshades, and #5 for canopies above entry doors.
E-11 – Painting to Diversified Painting in the amount of $293,000. There are no Alternates for this package.
E-12 – Carpet & Resilient Flooring to Jack Laurie Group in the amount of $454,700. This includes a deduct for Alternate #1 to replace some of this bid package’s flooring with terrazzo.
E-13 – Tile & Terrazzo to Victory Surfaces in the amount of $851,650. This includes Alternates #1A and 1C for terrazzo flooring and precast terrazzo base.
E-14 – Gym Flooring to Jack Laurie Group in the amount of $120,925. There are no Alternates for this package.
E-15 – Millwork and Casework to PR Bean Co. in the amount of $734,700. This includes Alternate #6 for upper cabinets in the classrooms.
E-16 – Signage to Essential Signs for $33,500. There are no Alternates for this package.
E-17 – Food Service Equipment to Central Products for $648,424. There are no Alternates for this package.
E-20 – Fences & Gates to Bullseye Fence Design for $184,900. There are no Alternates for this package.
E-21 – Landscaping to MG Landscape & Irrigation for $334,900. There are no Alternates for this package.
E-23 – Fire Protection to FE Moran for $ 397,533. There are no Alternates for this package.
Fortville RDC - Mr. Tony May
Cumberland RDC - Mrs. Kellie Freeman
Hancock Co. RDC - Mr. Phil Edwards
McCordsville RDC - Mrs. Shannon Walls
MVEF - Mr. Chad Gray