Guest sullinss Posted January 11, 2005 Report Share Posted January 11, 2005 Proceedings of the Business Committee School District No. 2, Yellowstone County High School District No. 2, Yellowstone County Billings, Montana December 6, 2004 The December 6, 2004 Business Committee meeting was called to order at 5:35 p.m. by Chair Malcolm Goodrich. Committee members in attendance were Bob Whalen, Patty Lacy, Curt Prchal, Judy Herzog, Joan Sleeth, Malcolm Goodrich, Jerry Hansen and Dale Getz came at 6:00 p.m. and Peter Grass came at 7:20 p.m. Absent was member Shanna Henry. Also in attendance were: Superintendent Rod Svee, Dan Martin, Woody Jensen, Sheri Weidinger, Janet Baum, Mark Wagner, and Billings Action for Healthy Kids Committee members Sarah Blackburn and Dayle Hayes. Pledge of Allegiance Chair Goodrich led those assembled in the Pledge of Allegiance. Downtown Billings Partnership Quarterly Report The Downtown Billings Partnership Quarterly Report was presented for information and review. Minutes of November 8, 2004 The minutes were corrected to add Joan Sleeth as a subcommittee member on the food service RFP proposals for school lunch. Judy Herzog introduced a motion to approve the Business Committee minutes of November 8, 2004 as corrected. Patty Lacy seconded the motion. The motion carried unanimously. Employee Suggestion Program Leo Hudetz, Internal Auditor/District Clerk, has created a system for employees to offer suggestions intended to: increase efficiency and/or production, reduce waste, reduce operating costs, increase receipts or revenue, and save money. Items will be considered in the budget process and will be cycled through the Business Committee before going to the Board. Judy Herzog introduced a motion to recommend Board approval of the Employee Suggestion Program. Patty Lacy seconded the motion. The motion carried unanimously. Addition of Booster Club Trust Account at Lewis & Clark MS Board approval is required to set up a new Trust account. Principal Pomroy is requesting a Booster Club Trust Account be set up for Lewis & Clark Middle School for parents doing fundraisers for the school. Bob Whalen introduced a motion to approve the addition of the Booster Club Trust Account at Lewis & Clark Middle School. Judy Herzog seconded the motion. The motion carried unanimously. Addition of Concession Stand ECA Account at Will James Board approval is required to set up a new extracurricular account. Principal Farnum is requesting a Concession Stand ECA Account be set up for Will James Middle School to be used to help pay for wireless computers. When this is completed, different clubs will be able to run the concessions for club revenue. Bob Whalen introduced a motion to approve the addition of the Concession Stand ECA Account at Will James Middle School. Judy Herzog seconded the motion. The motion carried unanimously. Committee members Jerry Hansen and Dale Getz joined the meeting at 6:00 p.m. Billings Action for Healthy Kids Committee Report Two members of the Committee, Sarah Blackburn, Pediatric Social Worker at DBC, and Dayle Hayes, MS RD Nutrition Consultant were present to share community survey reports. Survey results point out awareness that nutrition and physical activity are important to academic performance. Comments received related to removing pop and candy from vending machines in the schools, increasing physical activity, and requests for healthier choices provided from food service. Dayle Hayes works with State Departments of Education and school districts to work on improving nutrition in the schools. There is a problem with childhood obesity which has a financial impact in terms of health costs and potential reduction in funding in states where attendance helps to determine the level of state funding for schools. There is a possible association between weight problems and lower academic achievement. We need a systemic approach to this issue in schools. The schools are not completely responsible, but they need to be involved in the issue to reach a solution to the problem. Dayle reviewed the RFP and specifications for food service that are part of the RFP. We are currently getting what we asked for in the last RFP, which is satisfactory overall. Contractors should not necessarily be required to do more than we ask them to do. Dayle questions if this is good enough moving forward in terms of what we want for systemic changes. Sodexho has been included in their meetings. There are opportunities to be more specific in exceeding minimum federal guidelines. There are several references to nutritional marketing in the RFP, but Dayle has not seen any evidence of that. New federal legislation says that by year 2006-07 every school district that receives funds for child nutrition programs will have to have a school wellness policy in order to receive child nutrition funds. In the elementary schools, Sodexho serves five options every day, not all of which are healthy choices. Sodexho says they need to market to their customer base, and Dayle believes that is not an appropriate answer. Healthy foods can be marketed successfully but needs to be started with specifications that require service contractors to do that for us. A fiscally viable program is to have kids physically participating in meal planning. Subsidized food service programs are decreasing across the nation. There is pressure to do creative and active marketing. Marketing to high schools is more challenging, but we could do a better job of keeping kids on campus by better marketing with things like kiosks, carts, and different vending machine choices, etc. Dan stated in our system, the District controls the price of lunch. Sodexho develops the menu based on a survey of what they think the kids and staff would like to eat. Sodexho will serve anything we want them to serve, irregardless of what the RFP says. We asked Sodexho to figure their margin and return us our guarantee of $100,000 that we use to maintain the kitchens and equipment. Sodexho sells the same things as in the vending machines to stay competitive to earn that return. Curt believes we need to offer healthy choices to kids and need to hold the provider accountable through the contract. We pay a good share of general fund dollars to maintain those buildings and kitchens and have a company that pays nothing in utilities or rent. Bob says the high schools are totally market driven. If food service doesn’t compete with the fast food markets, the kids don’t stay at the schools and eat. Joan said issues at the elementary schools are different. No one monitors what kids eat. They can choose hot dogs and desserts and not even drink milk. It’s not part of Sodexho’s duty to monitor kids. Dayle said the situations are different at elementary, middle school and high school levels. Some fast food places are offering healthier options in their menu. She believes this is about marketing food to the kids. The RFP has a specification that Sodexho participate in nutrition education, a nutrition marketing plan, and a district advisory board; but, she questions their level of existence. Superintendent Svee said the plan has to be systemic. This is not only a school problem, but a community problem that needs a long-term plan for a solution. Supervision in the lunch room is the school district’s problem and not Sodexho’s responsibility. Dale Getz asked if we could bid to include piloting a program in 3-4 elementary schools and build on that and make the contract term shorter and renewable to renegotiate. Dan stated we will have a pre-bid conference tomorrow morning on the RFP. We are not locked into a timeline and have time to do whatever we want to do. We have one bidder interested. Aramark pulled out. Chartwell has shown some interest but we have not heard from them for a few weeks. Chair Goodrich said this is a community issue and suggests the Board convene the three committees, or sub-committees, in a special meeting to examine the food service issue to develop a joint strategy. Curt Prchal introduced a motion that the sub-committee will continue to meet with this group and review from them what they might look at as options to put into an RFP to integrate health issues and bring it back to the Business Committee and suggest possible changes. Joan Sleeth seconded the motion. Jerry would like the motion to include the three committees or sub-committees meet together. Dale Getz would like to have a concrete motion to start something and target some milestones right now in the RFP process. Judy agrees with starting the process right away and believes we should also look at something for the Alternative School. The question was called for. The motion carried unanimously. Dale Getz introduced a motion to recommend Board approval to: 1) direct the incumbent contractor, Sodexho, to provide healthy choices in the menus for the second semester of the 2004-05 school year at a minimum of four elementary schools (trial period); 2) following the trial period, that an evaluation and assessment of the success of the trial be completed; and, 3) if the trial is deemed successful, that the healthy choice menus be part of future contracts at all elementary schools. Judy Herzog seconded the motion. The motion carried unanimously. Curt Prchal introduced a motion that we request the Board schedule a joint meeting between the Business, Education and School/Community Committees to discuss the systemic approach to nutrition and healthy food choice options and physical activity in our school district. Dale Getz seconded the motion. The motion carried unanimously. Reclassification of Adult Education Testing Technician from Wage Level II to Wage Level IV This item was tabled from the last meeting to allow the Adult Education Director time to meet with the BCEA for resolution on placement. Committee member Peter Grass arrived at the meeting at 7:20 p.m. Woody Jensen, Adult Education Director, presented documentation to support the reclassification of the Adult Education Testing Technician from Wage Level II to Level IV at the rate of $14.32 per hour. This is an attempt to bring the rate of pay to a semi-professional position. Testing time and responsibility have been increased in this position. Woody compared job descriptions and responsibilities and believes Level IV is appropriate for this position. Related to this reclassification there needs to be a variance related to the hiring of GED Alternate Examiners used in a substitute role such that they can receive the same current hourly rate of the Testing Technician. Adult Education has the funding to support the increase. Janet Baum, BCEA President, stated considering the changes in job requirements the BCEA supports the reclassification of this position to Level IV. Dale Getz introduced a motion to recommend the Board accept the proposal to reclassify the Testing Technician from Wage Level II to Wage Level IV and those substitute testing technicians be similarly classified. Bob Whalen seconded the motion. The motion carried unanimously. Federal Management Strategies, Inc. (FMS) Contract This item was tabled from the November 8, 2004 Business Committee meeting. FMS is proposing a contract with Billings Public Schools to assist in the development and implementation of a strategy to secure federal funding for education programs and projects at a cost of $20,000. Joan shared comments from Shanna Henry saying this organization had high recommendations but they are mostly used by districts without grant writers. Perhaps this item should be reconsidered at another time. The $20,000 is only a retainer and other expenses are separate. Superintendent Svee stated this has nothing to do with grants. This organization goes after direct appropriations from Congress by working with our delegation to give riders to bills and draw funding. Potential projects for our District might be: 1) $2M to put into Broadwater because it’s a historic preservation, 2) technology, 3) the vocational program dealing with the construction project with Career Center and College of Technology, and 4) the phone system. There may be some chance of exploring alternative funding. The Superintendent cannot proceed to finalize anything or attempt to find alternative funding if he is not directed to proceed. Dale said he would endorse a performance clause in any contractual agreement. Rod noted there is a development of a compensation for performance addendum for fees over and above the contracted amount if they perform as agreed. Additional negotiations would come through the Business Committee. Curt does not want to create unsustainable future programs. Rod said these programs are a one-time thing and not sustainable programs. The Board or Business Committee needs to be involved in choosing and reviewing the projects. Judy Herzog introduced a motion to recommend to the Board that the concept of proceeding forward with the FMS contract should occur subject to review of performance clauses to projects reviewable by the Business Committee and the Board and to the source of funding for the fees associated with the contract. Dale Getz seconded the motion. The motion carried unanimously. Health Insurance Fund The Insurance Committee has reviewed the Self-Funded Health Insurance reserve fund balance. They recommend action to bolster the Health Insurance Fund reserve. The actuarial projection for the given year will probably pay the claims. The operating reserve fund has about $1.1M which is about $300,000 underfunded. The reserve fund should be maintained between $1.7-$2.0M to pay the tale claims in case we terminate the program. If we do join the State Health Insurance Program that starts June, 2006, we would be required to pay out those remaining claims from our reserves. The actuarial projection is $907,000 in reserves for year ending June 30, 2005. Their optimistic estimate is $1.1M. Our estimated “break-even” claim level is $880,963 per month. Our average monthly claim cost so far is $792,991. Last June our claims were $1.5M, which may have been caused in a large part by people running out claims against their deductibles. The Board is in charge of the premiums and has the legal responsibility of making the fund actuarially sound. The $300,000 shortfall amounts to about $30 per month per member for six months. The options considered by the Insurance Committee included: 1. Increase in premiums 2. Change in Plan Design to save costs 3. Negotiate with hospitals for a single provider contract that would generate the savings 4. Change plan design and increase the premium The Insurance Committee recommends we increase the premium by $15 and make several changes in plan design. They recommend the District increase the District contribution by $15 per member for six months (1,650 members X $15 X 6 months = $148,500 divided proportionately among the Elementary and High School General Funds); and, implement plan design changes that will generate about $150,000 savings to the plan. These two adjustments would sunset on June 30, 2004. In a letter addressed to Dan Martin, the BEA confirmed that the Association is willing to agree to a one time variance to Article x, Section 2. Level of benefits as follows: • Increase the office visit copay for Plan B from $10 to $20 and Plan C from $25 to $30 • Subject MRI’s, PT scans and CT scans to an additional $100 copay – this would be PRIOR to (not in lieu of) the application of deductibles and coinsurance • Reduce the 100% coverage of outpatient surgeries to the copay and deductible levels prescribed by Plan B 80/20 and Plan C 70/30 with all other provisions remaining the same These plan changes would be agreeable to the Association if District 2 increases their per member contribution $15 per month per enrolled employee while maintaining all other BEA Master Labor Agreement obligations not noted above. It is understood by both parties, District 2 and the Association that these are one time variances that will take effect on January 1, 2005 and will sunset June 30, 2005. Following the sunset date all benefits and District contributions will return to the pre-agreement levels as noted in the BEA Master Labor Agreement. Curt stated in the BEA contract there is maintenance of benefits clause so the plan reduction would have to be agreed upon there. If the premium were raised $30 per employee we would begin to have a gap between what a single employee would have to pay out of pocket for insurance which creates an opportunity for them to opt out of the insurance program. We can’t have a gap that would create an exodus of people from the plan. Dan stated that due to a grievance settlement the District continues its insurance contribution for each part time certified employee who opts out of the insurance program if the reserves are less than 25% of the prior year claim value. This does not apply to the BCEA or MPEA. The prior year claim expenses were approximately $11,800,000; therefore, the District will continue these contributions until the reserve level exceeds $2.6M or more for twelve consecutive months. Patty asked if they charged employees an additional $30 per month if the flex fund would be opened. Dan stated any additional premiums would automatically go through flex; but employees would not be able to change their out-of-pocket Flexible Spending Account since that is a one-time declaration. Janet Baum, BCEA President, stated concern if employees were required to pay $30 per month, many BCEA employees would experience financial hardship. They can’t opt out of the program until the new plan year. Janet expressed concern for damage to the plan if a number of employees opt out. She expressed support for the BEA variance letter which divides the obligation between the employee and the District, and stated it was important to have the $1,000 deductible fully paid insurance. Mark Wagner, MPEA President, expressed concerned that de-enrollment decreases the amount of money in the fund and creates greater problems. Mark encouraged a timely solution to the problem. Judy asked if there were more possibilities to alter the plan, since no one has a lot of money. Dan replied that it wasn’t possible because of maintenance of benefits in the BEA agreement and what the BEA has agreed to concede. Dan reported that the portion funded by the District probably could not come from the General Funds unless it is decided to anticipate year-end money or a budget amendment. Utilities are currently down, but the rest of the year is unknown. We currently have an approximate $3.8-3.9M in the Elementary Reserve Fund and $900,000-$1M in the High School Reserve Fund. This year buildings are split funded with MAC, so they have to spend their General Fund dollars before they can spend MAC money. This year we could collect $600,000 in MAC money and have budgeted only $550,000 of that. Other funding possibilities might be from Flex dollars or freezing purchasing in the Spring. Dale Getz introduced a motion to recommend to the Board that the District increase the per member contribution $15 per month per enrolled employee for six months to be funded from General Fund savings or other yet to be identified fund savings; and, that the Board accept the BEA’s proposal for a one-time variance to Article x, Section 2 as outlined in their letter to Dan Martin and sunsets June 30, 2005. Judy Herzog seconded the motion. The motion carried unanimously. Financials – Reporting Process This item will be tabled until the next Business Committee meeting. Financial Reports – October, 2004 and (Incomplete) November, 2004 Several members expressed concern with overspending encumbered amounts in the budget and asked what the control process was. The total bottom line is not a negative and budget transfers to cover expenditures are not done monthly; therefore, it’s difficult to track where we are in the total budget year-to-date when budget transfers are not current. The directive to spend general funds before MAC money at the building level is difficult to administer. The financial process will be addressed at the next Business Committee meeting. Adjournment There being no further business the meeting was adjourned at 8:35 p.m. Malcolm Goodrich, Chair Sherrill Sullins, Recorder Link to comment Share on other sites More sharing options...
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