“The errors led Murley to call for an outside audit. The report, by Synesi Associates, was released last week and was critical of the district’s financial operations.
Among the concerns cited in the report were budgets that were developed without the input of educational leadership, not seeking competitive bids for services and no standard operating procedures for purchasing. Synesi recommended the district hire a budget director.”
Request XI 9 January 2012:
Looks like you are turning a deaf ear to all that you have been handed and are moving forward with your hand-picked favorite instead of pursuing competitive bids?
01.09.12 BE IT RESOLVED by the School Board of Independent School District No. 277, State of
Minnesota, as follows:
2. Sale. The District has retained Ehlers & Associates, Inc. (Ehlers) in Roseville, Minnesota, as
its independent financial advisor for the Bonds. Ehlers is authorized to solicit proposals in accordance
with Minnesota Statutes, Section 475.60, Subdivision 2(9). If the issuance of the Bonds is approved, the
School Board shall meet at the time and place specified in the Official Statement to receive and consider
proposals for the purchase of the Bonds.
3. Official Statement; Negotiation of Sale. Ehlers is authorized to prepare and distribute an
Official Statement and to open, read and tabulate the proposals for presentation to the Board.
This is despite knowing what the MN Auditor’s position is on this behavior? You are leaving the community with little choice but to petition the state for an audit to unveil what is driving this behavior. Of course; as you know, the district will bear the entire cost of this process:
Request X 6 January 2012 Guess not. This is how the Bunker Boyz roll at Westonka, where transparency and accountability to the taxpayers is but a pipe dream………
Request IX 12/29/2011
Request VIII 12/28/2011
Request VII 12/27/2011
Request VI 12/24/2011
Request V 12/23/2011
Request IV 12/22/2011
Request III 12/21/2011
Request II 12/20/2011
12/19/2011 Kevin,
So you missed/skipped paragraph 2, page 13:
"The formal process of bidding serves several public objectives. Certainly one objective is to
obtain the lowest price, but another important goal of bidding is the opportunity it allows
qualified entities to obtain public business in an open process."
Further:
He also said he is very pleased the auditor's office recommended that the district adopt a formal bidding process.
"I hope going forward the board will implement the recommendations made by the state auditor's office as a first step toward being more transparent and fiscally responsible toward the taxpayers who fund these schools," he said.
And:
3. The lack of a transparent process for requesting proposals or other "bidding" processes regarding the underwriting of bonds.
Petitioners were shocked to learn that the School Board didn't have a competitive bidding process in place when it awarded $37 million (principal and interest) in bonds to Northland Securities in a negotiated sale. The auditor said this: "The formal process of bidding serves several public objectives. Certainly one objective is to obtain the lowest price, but another important goal of bidding is the opportunity it allows qualified entities to obtain public business in an open process." It's common sense to obtain more than one bid when making a major purchase - especially when millions of dollars are involved. Could the School Board have negotiated a more favorable rate if they had opened up the bidding process? We'll never know, and that's inexcusable. A policy without a bidding process exists and that has to change.
Just so we have it on record for all to see, Mr. Borg, you are saying you disagree with every aspect of point 3, immediately above? This is the type of district you are running?
I don’t care what practices and procedures you feel you have followed/adhered to in the past! The community wants the best price and terms possible in the upcoming debt sale and that is not possible via your monopoly with Ehlers. Is it really that hard for you to comprehend this or do you really not care about wasting money??
Take care,
Don Mailey
RE/MAX Results
Don,
Attached is the report from the Office of the State Auditor(OSA) that you made reference to. On page 8 and 9 they address the topic of bidding out of professional services. In this section, they recommend that district's "periodically review" who they use for professional services. Westonka did this review in August of 2009. We feel that our practices are within the recommended guidelines. Ehler's has been involved(answering questions and providing tax impact scenarios) with this bond project since fall of 2010. Again, the School Board Finance Committee determined that we should use Ehler's (one of three firms that were evaluated in 2009).
Kevin
Kevin Borg, Superintendent
Westonka Public Schools
5901 Sunnyfield Road
Minnetrista, MN 55364
952-491-8001
>>> "Don Mailey" <
donmailey@resultsontheweb.net> 12/19/2011 9:50 AM >>>
PS:
Why are we any different than St Anthony?
The Auditor's office also recommended that the District also adopt a formal bidding process. No bidding process was used for the underwriting of $22,000,000 in bonds awarded to Michael Hoheisel of Northland Securities in 2008. Principal and interest will amount to a debt of $37,000,000 to district taxpayers, yet there were no competitive bids for such a large expenditure, and that is unacceptable!
“The petitioners also raised concerns about the lack of a transparent process for requesting proposals or other bidding processes regarding the underwriting of bonds. In addition, the petitioners felt the debt service schedule resulted in excess interest for taxpayers.”
Take care,
Don Mailey
RE/MAX Results
Kevin,
We know how they [Ehlers] were picked in the past. You are straying from the topic. The question is, was, and will remain; ‘why won’t you seek the most competitive pricing in the market for the district’s upcoming $30,000,000 bond issue??’
No one cares what happened 2.5 years ago. Either you have decided—2.5 years ago—Ehlers is the district’s designated financial advisor and you have a policy in place governing this decision, or, you will now pursue an open bidding process which best serves the district and its taxpayers by soliciting the lowest cost/highest quality vendor for this future bond placement.
Civil? It is an interesting point of view that communication must be hidden behind closed doors to be “civil?” Perhaps you feel my questioning of why you are not pursuing the best financial outcomes for the district and its taxpayers is somehow “uncivil?” I will stick with copied communication that can be shared with the many stakeholders out there who have the same question I do, namely, ‘why is this future, large-scale, financial transaction being monopolized for Ehlers?’ Until you can clearly state why you refuse to seek an open and competitive solution to this piece of public business, peripheral questions are going to continue.
Take care,
Don Mailey
RE/MAX Results
Don,
Maybe my point was missed so I will email this once more. I have reached out to you in order to have a civil, face-to-face conversation on this issue. My offer stands.
I have answered how Ehlers was chosen.
Kevin
Kevin Borg, Superintendent
Westonka Public Schools
5901 Sunnyfield Road
Minnetrista, MN 55364
952-491-8001
>>> "Don Mailey" <
donmailey@resultsontheweb.net> 12/18/2011 7:21 PM >>>
Request IV December 18, 2011
Request III December 17, 2011
Request II December 16, 2011
12/15/2011 See inserts below in blue [Don Mailey]
Take care,
Don Mailey
RE/MAX Results
Don,
As you saw on my auto reply, I was out of the office Friday and Monday. [Don Mailey] Always good to take a few days off before taking a couple of weeks off. Nevertheless, my calendar shows the 13th as Tuesday and the 14th as Wednesday, so I am not sure what your point is?
As I stated before, the district did an interview process and selected Ehlers. [Don Mailey] Recently, or 2.5 years ago? So it’s Ehlers forever then?
The decision was approved by the Finance Committee. [Don Mailey] Recently or 2.5 years ago?
In talking to Gary Hejna, our Treasurer, he also would not advise the district to interview again at this time. [Don Mailey] Gary Hejna? Who is running the school district? You, or Gary Hejna? Wait, isn’t Gary Hejna soon to be our ex-Treasurer, after you spent all that time, money and resources defeating him in the recent election? After that, you defer to his expertise? Tell me, why didn’t you defer to his expertise when he advised you against OPEB??
Why are you so against the potential savings that forcing Ehlers to compete for a $30,000,000 float may save the district? Why?? Someone really needs to get to the bottom of your biased protectionism of this firm at the expense of the district’s taxpayers! I-Team, are you out there?!
I would recommend that you give me a call or set up a time to meet if you would like to discuss this or another topic further. In the future, call me at 952-491-8001 and we can talk over the phone or set up a meeting. [Don Mailey] I have no interest in communicating with you in any venue other than one that records every character of any interaction and leaves me with access.
Kevin
Kevin Borg, Superintendent
Westonka Public Schools
5901 Sunnyfield Road
Minnetrista, MN 55364
952-491-8001
>>> "Don Mailey" <
donmailey@resultsontheweb.net> 12/14/2011 9:06 AM >>>
Request III December 14,2011
Request II December 13, 2011
December 9, 2011 So this means the district will be openly interviewing and soliciting proposals from a minimum of three firms to underwrite this $30,000,000 project?
Take care,
Don Mailey
RE/MAX Results
Don,
I would recommend that you talk to Gary Hejna(he was part of the finance committee in 2009, you ran with him for school board this year, and he is our current treasurer).
In 2009, the process of the review of firms was discussed with our board, our finance director and myself conducted the interviews, and the finance committee approved the recommendation. I have spoken with Gary Hejna and he agrees with the decision and my recap of this process. The school board does not have a policy for specific companies, firms, or advisors that we work with.
The board in 2009 included Tom Notch, Keith Foerster, Dave Botts, Ann Bremer, Martine Hewitt, Ron Faust, and Gary Hejna.
Kevin Borg, Superintendent
Westonka Public Schools
5901 Sunnyfield Road
Minnetrista, MN 55364
952-491-8001
>>> "Don Mailey" <
donmailey@resultsontheweb.net> 12/7/2011 7:34 PM >>>
Kevin,
Who were the members of the finance committee that interviewed these firms 2.5 years ago? Are they all still on the board? Since I don’t live in a vacuum, I would be interested in asking them their opinions in 2011.
If their/your conviction to exclusively use Ehlers is this firm, surely a policy was created? Please email me this policy at your convenience.
I look forward to receiving the names of the finance committee members who conducted these interviews in early 2009!
Take care,
Don Mailey
RE/MAX Results
Don,
The district interviewed firms about 2 and 1/2 years ago. One the firms that we interviewed was Northland Securities. After the interviews, the Finance Committee approved to stay with Ehlers.
We will continue to monitor companies that we use for competitive service and pricing.
Kevin
Kevin Borg, Superintendent
Westonka Public Schools
5901 Sunnyfield Road
Minnetrista, MN 55364
952-491-8001
11/30/11 Help me out here! Since I am conservative and hate waste and inefficiency, I may be somewhat biased. Therefore, I appeal to the capacity of an enlightened gentleman such as yourself to tell me why this won’t work or shouldn’t be pursued:
Take care,
Don Mailey
RE/MAX Results
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