SOUTH WASHINGTON COUNTY SCHOOLS MAY MEETING MINUTES

District 833 School Board Regular Meeting

Unofficial Clerk's Summary for May 24, 2012

24 May 2012

Pursuant to due call and notice thereof, a regular meeting of the School Board of Independent School District 833, South Washington County, was held on Thursday, May 24, 2012. The meeting was called to order by Chairman Leslee Boyd at 7:00 p.m. at the District Service Center, located at 7362 East Point Douglas Road South in Cottage Grove, MN. School Board members present were Marsha Adou, Leslee Boyd, Tracy Brunnette, Jim Gelbmann, Laurie Johnson, Ron Kath and David Kemper. Superintendent Mark T. Porter was present.

Motions were made and seconded to approve the consent and main agenda items. Consent agenda items included resignations and terminations, leaves of absence, new employees/change of status, electronic fund transfers, gifts, field trips, School Board meeting minutes, bid award for Nutrition Services equipment, Special Services contract with Three Eyed Bird Design, March 2012 financial statements and cash disbursements, district population update, student teacher placement agreements, 10-year Alternative Facilities plan, change orders, bid award for construction of Merrill Community Arts Center, lease agreement with Merrill Community Arts Center, refinancing request of the WAA building at WHS.

Mike Vogel, Assistant to the Superintendent for Operations, and Gary Dechaine, Director of Transportation, presented the proposed transportation department budget and service change recommendations.

MOTION: "TO APPROVE AN INCREASE IN THE FUNDING FOR TRANSPORTATION FROM 4.85% TO 5.0% OF THE GENERAL EDUCATION FORMULA." Motion was passed unanimously.

MOTION: "TO APPROVE THE CHANGE IN SCHOOL START TIMES IDENTIFIED AS OPTION I WHICH RESULTS IN A CHANGE IN MIDDLE SCHOOL SCHEDULES FROM 7:55-2:25 TO 7:35-2:05 EFFECTIVE WITH THE 2012-13 SCHOOL YEAR." Motion failed.

MOTION: "TO APPROVE THE CHANGE IN SCHOOL START TIMES IDENTIFIED AS OPTION V WHICH RESULTS IN A CHANGE IN MULTIPLE SCHOOL SCHEDULES AT THE ELEMENTARY, MIDDLE SCHOOL AND NON-PUBLIC LEVELS." Motion failed.

MOTION: "TO APPROVE AN INCREASE IN THE WALKING DISTANCES FROM 1.0 MILES TO 1.5 MILES MIDDLE SCHOOL STUDENTS AND FROM 1.5 TO 2.0 MILES FOR HIGH SCHOOL STUDENTS." Motion failed.

MOTION: "TO APPROVE THE IMPLEMENTATION OF THE COMMUNITY EDUCATION SLIDING SCALE FEE FOR SERVICE TO PROVIDE TRANSPORTATION FOR CHOICE PROGRAMS WITH A FULL FEE AMOUNT OF $250 PER STUDENT AND A FAMILY CAP OF $500." Motion failed.

Ernie Pines, Director of Community Education, and Ellen Casey, Community Education Account Specialist, presented the final reading of the proposed 2012-2013 Community Services budget.

Revenue assumptions for this budget include:

•Levy revenue amounts reflect funds certified in December 2011 payable in 2012 for the 2012-2013 school year. Basic Community Service Levy and Youth Levy revenues are reflective of district population figures.

•Basic Community Education Levy funding is based on $5.42 per capita.

•Community Education will maintain fee levels for all programs. The 1.8% increase in fee revenue is due to anticipated growth in youth program participation. There are no fee increases planned in programming for 2012-2013.

•Revenue projections for 2012-2013 include 14 elementary sites planning on offering Kindergarten Plus (all day Kindergarten). A total of 33 sections with 20 students per section are currently budgeted. However, space availability and participant counts may impact the actual number of sections offered this fall. Spanish Immersion (3 sections) will be housed at Crestview.

•ECFE will be funded at $120 per estimated population under 5 years of age. Funding formula changes will result in a drop in state aid dollars offset by an increase in levy dollars received.

•The decrease to School Age Special Needs levy is due to a prior period levy adjustment payment in FY12 to meet actual expenditures reported.

•Preschool Screening anticipates in increase in early childhood screening for 3 to 5 year olds.

•ABE, School Readiness, ECFE and Youth program grants will be completed by June 30, 2012.

•Community Education anticipates continued financial support from the Lifelong Learning Foundation.

•Interest income is budgeted at $10,000 as Community Education continues to spend down fund balance. The proposed interest income budget is also impacted by a decline in investment interest rates.

Expenditure assumptions for this budget include:

•In the 2012-2013 school year, expenditures captured in administration will be allocated directly to specific Community Service programs at the end of the fiscal year.

•In the 2012-2013 school year, Community Education anticipates an indirect cost recovery of approximately $15,000 for grants that District 833 is awarded.

•K-Plus programs (all day Kindergarten) will be offered at 14 elementary sites in 2012-2013, pending space availability. A total of 33 sections are planned.

•The School Readiness program for pre K students will expand to offer services conveniently at neighborhood elementary sites.

•Community Education will manage the Driver's Education program in 2012-2013.

•The 2012-2013 Community Education budget includes $62,000 available for youth programs financial assistance, enabling all district families to participate in program offerings.

•The district's PERA contribution will remain at 7.25% of salary paid for nonlicensed staff.

•The district's TRA contributions will remain at 6.5% of salary paid for licensed staff.

•Salaries and benefits are budgeted per bargaining unit contract settlement or 2% increase for the 2012-2013 school year.

•Facilities Use will incur approximately $25,000 of additional expense for Saturday custodial at the three high schools.

•For 2012-2013, a new Community Education Technology Support Specialist II position is budgeted to assist with increasing technology demands in the department.

•Chargebacks from the General Fund are estimated at $714,484, and increase of 25% from prior period, and include a building usage chargeback for the District Program Center, property and liability insurance, Kids Club building usage, swimming pool temperature increase, facility use user usage assessments and Kindergarten Plus building support specialist.

The proposed revenue in this budget is $11,513,774 while expenditures are proposed at $12,244,640 for a deficiency of $730,866 which will come from the department's fund balance. The Community Education Advisory Council has set a goal to maintain 10% of the current Community Service expenditure level in the Fund 04 fund balance. The projected fund balance for June 30, 2013 is $941,167. Ernie presented a resolution from the Community Education Advisory Council that they asked the board to consider approving.

RESOLUTION: The Community Ed Advisory Council (CEAC) acknowledges the intention of the School Board to obtain $150,000 from the Community Services budget for General fund use during the 2012-13 school year due to budget cuts. The Community Ed Advisory Council respectfully requests that this amount be considered a 1 time additional surcharge and not be added to the continuing Community Ed chargeback obligation.

MOTION: "TO APROVE THE 2012-2013 COMMUNITY SERVICES BUDGET AS PRESENTED."

Motion was passed unanimously.

MOTION: "TO APPROVE THE RESOLUTION FROM THE COMMUNITY ED ADVISORY COUNCIL (CEAC) WHICH ACKNOWLEDGES THE INTENTION OF THE SCHOOL BOARD TO OBTAIN $150,000 FROM THE COMMUNITY SERVICES BUDGET FOR GENERAL FUND USE DURING THE 2012-13 SCHOOL YEAR DUE TO BUDGET CUTS - CEAC RESPECTFULLY REQUESTS THAT THIS AMOUNT BE CONSIDERED A 1-TIME ADDITIONAL SURCHARGE AND NOT BE ADDED TO THE CONTINUING COMMUNITY ED CHARGEBACK OBLIGATION." Motion was withdrawn.

ALTERNATIVE MOTION RELATED TO CEAC RESOLUTION: "THAT THE SCHOOL BOARD DIRECT THE ADMINISTRATION TO BRING FORWARD A DISCUSSION OF COMMUNITY EDUCATION CHARGEBACKS PRIOR TO THE REVIEW OF THE 2013-2014 PROPOSED BUDGET."

Motion was withdrawn.

Board member Gelbmann asked for a reconsideration of an earlier motion that dealt with the transportation budget - specifically the approval of a change in school start times identified as Option I. Because member Gelbmann voted on the prevailing side of this motion earlier, it is within his rights to raise this again (per Robert's Rules of Order).

MOTION: "TO RECONSIDER THE EARLIER TRANSPORTATION MOTION THAT DEALT WITH OPTION I -TO APPROVE THE CHANGE IN SCHOOL START TIMES IDENTIFIED AS OPTION I WHICH RESULTS IN A CHANGE IN MIDDLE SCHOOL SCHEDULES FROM 7:55-2:25 TO 7:35-2:05 EFFECTIVE WITH THE 2012-13 SCHOOL YEAR." Motion passed to reconsider the earlier motion.

The motion to reconsider the topic passed. Board members again expressed their comments about this specific item. After much discussion, board member Laurie Johnson called the question.

MOTION: "TO APPROVE THE CHANGE IN SCHOOL START TIMES IDENTIFIED AS OPTION I WHICH RESULTS IN A CHANGE IN MIDDLE SCHOOL SCHEDULES FROM 7:55-2:25 TO 7:35-2:05 EFFECTIVE WITH THE 2012-13 SCHOOL YEAR." Motion failed.

Barbara Osthus, Director of Nutrition Services, presented the final reading of the proposed 2012-2013 Nutrition Services budget. This budget was presented to School Board members at their May 17 workshop session. Barbara presented information on the Goals, Budget Assumptions, Statement of Revenue & Expenditures and Fund Balance Summary. The programs offered by Nutrition Services include lunch, ala carte, breakfast, Kids Club breakfast/snack, Kindergarten milk, 1st & 2nd grade snack milk and Summer Food Service.

Budget assumptions include:

•The budget reflects a 0% increase in paid participation and a .6% increase in free/reduced participation. The General Fund enrollment is projected to increase by 1%.

•Valley Crossing Community School (VCCS) and District 833 Nutrition Services will be in the second year of a six year contract - the projected number of meals to be served includes VCCS.

•Nutrition Services is recommending the following increases in lunch prices, in response to the federal law requiring all districts to close the gap between the amount charged for full paid lunches and the amount reimbursed for free lunches.

a.Increase High School pricing by 15 cents from $2.00 to $2.15

b. Increase Middle School pricing by 10 cents from $2.00 to $2.10

c. Increase Elementary School pricing by 10 cents from $1.70 to $1.80.

•School breakfast prices will not change.

•Lunch reimbursement will be $.12 for each lunch sold. Breakfast reimbursement will be $.55 for each fully paid breakfast and $.30 for each reduced price breakfast.

•Interest income is budgeted at $1,000.00.

•$869,099 has been projected as the Nutrition Services chargebacks from the General Fund.

•Commodity usage is estimated at approximately $.2225 a lunch; corresponding commodity revenue has been reflected within the federal aid revenue.

•Nutrition Services does not use money from the Operating Capital Budget for the replacement of food service equipment. $250,000 has been budgeted for this.

•The labor agreement with Local 17 expires on June 30, 2012. Inflationary increases related to salaries and wages have been built into the budget. Benefits have been projected using current FICA and retirement rates. Health, dental, and life insurance projections are based on inflationary increases.

•Nutrition Services contracted with The Amherst Wilder Foundation in SY 2012 to develop a department planning process. The process gained stakeholder input, and furthered Strategic Objective #3 - Performance Excellence of the District's Strategic Plan. In SY 2013, $30,000 is budgeted for full implementation of the planning process. Information gathered will keep the Department on target with customer/community expectations, state and federal requirements, and school nutrition best-practice

•A goal has been set to maintain 10% of the current expenditure level in the fund balance.

Revenue for the 2012-2013 budget is proposed at $7,897,960 while expenditures are proposed to be $8,112,659 for a deficiency of $214,699 which will come from the department's fund balance. The projected fund balance for June 30, 2013 is $992,102. This budget will be brought back to the May 24th School Board meeting for approval. A motion was made and seconded to approve the budget as presented. Motion was carried.

Mark T. Porter, Superintendent, presented a resolution to terminate long-term substitute teaching contracts. In compliance with Minnesota statutes, the district is required to terminate the teaching contracts of District 833's long-term substitute teachers. A long-term substitute by definition is one who worked all or part of the school year replacing a specific teacher who has return rights to her or his position. The contracts of the long-term substitutes must be terminated. Failure to terminate these contracts would result in the district allocating two teachers in each affected position as the regular teachers exercise their contractual right to return from leave. A motion was made and seconded to approve the resolution as presented. Motion was carried.

Keith Ryskoski, Assistant Superintendent for Secondary Education, presented proposed changes to Policy 510.3 Athletic and Activity Fee Schedule. As part of the most recent budget reduction process, the district Athletic/Activity Directors (AD's) were asked to come up with $100,000 in reductions to their budgets. After much discussion, the AD's are recommending slight changes to the fee schedule so as not to reduce services to students. The changes are as follows:

•Change Level I MSHSL Athletics from $125.00 to $150.00

•Change Level II MSHSL Athletics from $130.00 to $155.00

•Change Level III MSHSL Athletics from $155.00 to $180.00

•Change MSHSL Fine Arts One-Act Play from $95.00 to $120.00

•Change MSHSL Fine Arts Speech from $100.00 to $125.00

Keith went over a spreadsheet which lists the fees for other comparable high schools. Even with the increases, our high schools still fall to the lower end of the schools listed. Administration is also recommending that the family cap be raised from $400 to $475 as this is reflective of the $25 increase for three sports. This item will be brought back to the June meeting for approval.

Mark T. Porter, Superintendent, presented proposed a new district policy on Health and Safety. This is a mandatory policy required by M.S. 123B.57, Subd. 2, for School Boards to qualify for health and safety revenue. The Minnesota Department of Education has informed school districts that the adoption deadline for this Health and Safety Policy is July 20, 2012.

Subd. 2.Health and Safety Policy

To qualify for health and safety revenue, a school board must adopt a health and safety policy. The policy must include provisions for implementing a health and safety program that complies with health, safety, and environmental regulations and best practices including indoor air quality management.

This new district policy is modeled after the MSBA model policy. This more detailed policy will replace the school district's current Policy 806.1, Health and Safety Program. This item will be brought back to the June meeting for approval.

The School Board recessed to a closed session at 9:43pm to receive confidential legal advice pursuant to Minnesota Statute. Mick Waldspurger, attorney with Ratwik, Roszak and Maloney, P.A. was on hand for the closed session with board members. This is in response to the specific threat of litigation that Superintendent Mark T. Porter has made to the district related to the dispute of provision over his employment contract.

MOTION: "TO MOVE TO CLOSED SESSION TO DISCUSS THE SPECIFIC THREAT OF LITIGATION THAT SUPERINTENDENT MARK T. PORTER HAS MADE TO THE DISTRICT." Motion was carried.

The School Board came back to the open meeting at 10:38pm.

MOTION: "TO RECONVENE THE SCHOOL BOARD MEETING IN OPEN SESSION." Motion was carried.

Leslee Boyd, Chairman of the School Board, stated that the School Board has been discussing a proposed agreement related to a perceived dispute of provision with Mark Porter's employment contract with Mick Waldspurger, attorney with Ratwik, Roszak and Maloney, P.A.

MOTION: "TO APPROVE A RESIGNATION AGREEMENT AND RELEASE OF CLAIMS FOR MARK T. PORTER CONTINGENT ON MARK PORTER'S ACCEPTANCEOF THE AGREEMENT."

Motion was carried unanimously.

Leslee Boyd, Chairman of the School Board, presented a draft proposed contract for the incoming Superintendent, Dr. Keith Jacobus. Mick Waldspurger, attorney with Ratwik, Roszak and Maloney, P.A. presented the highlights to this proposed contract. Mick stated that negotiations of this contract with Dr. Keith Jabobus were very cordial and amicable and Keith had agreed to all terms pending the salary that was proposed by the School Board. Highlights of the contract include:

•25 vacation days annually, consistent with the school district

•15 days of sick leave annually, consistent with the school district

•2 days each of bereavement pay and family illness, consistent with the school district

•Offers the same insurance package given to other school administrators

•Provides a $500 monthly vehicle allowance

•Provides for $178,000 salary in the first year with annual 2.25% salary increases in year two and year three of the contract

MOTION: "TO APPROVE THE NEW SUPERINTENDENT CONTRACT FOR DR. KEITH JACOBUS AS PRESENTED." Motion was carried unanimously.

The meeting adjourned at 10:56pm.

This published material is only a summary. Full text is available for public inspection at the administrative offices of the school district and the district website at www.sowashco.k12.mn.us. A copy of the full text, other than attachments, is available without cost at the administrative offices of the school district or by means of standard or electronic mail.

6/27/2012

Tags: public notices, meetings