Connecting Waters Charter School

219 N. Reinway Ave.

Waterford, CA 95386

Special Parent Council Meeting

Tuesday, October 22, 2002

UNADOPTED MINUTES

1. Call to Order

The meeting was called to order at 6:30 pm, 219 N. Reinway Ave., Waterford, CA.

2. Approval of Agenda

3. Roll Call

There were 18 parent council members present.

4. Discussion Time

The Executive Director of IEM; the Managing Principal of Delta Public Finance, LLC; the Vice President of PCN; and the PCN Controller were available for questions. There were questions concerning the interest rate on the bridge loan. The Managing Principal of Delta Public Finance, LLC explained the interest rate was 18 % on this loan due to the risk involved with loans to charter schools. He also explained that the loan could be paid off early and by doing so we would save the school money on interest. Some of the parent council members were concerned they may be held liable for the loan if IEM should default. The Managing Principal of Delta Public Finance, LLC said that it could be stated in the loan notes that the Parent Council would not be held responsible in case of default on the loan. The PCN Controller answered many questions concerning the budget and the need for the bridge loan. The Vice President of PCN explained the effects of SB740 on the schools budget.

5. Action Items

A. ****** motioned to approve the resolution authorizing the execution and delivery of 2002-03 Revenue Anticipation Notes of Innovative Education Management, Inc. as borrower, on behalf of the Connecting Waters Charter School, and related instruments, and determining other matters in connection therewith. The motion was seconded by ******. There was 17 yes votes and 1 no vote. The motion was passed.

B. ****** motioned to approve the resolution directing Waterford Unified School District to intercept certain revenues received on behalf of Connecting Waters Charter School until scheduled Sinking fund Payments have been made to the holder of the 2002-03 Revenue anticipation Notes as repayment for amounts borrowed thereunder. The motion was seconded by ******. All in attendance voted unanimously. The motion was passed.

6. Adjournment

The meeting was adjourned at 7:10

The next Parent Council Meeting: December 10, 2002, 6:30pm, 219 N. Reinway Ave., Waterford, CA 95386