Budgeting For Results Comm. - April 12, 2010

[Guest sullinss]

Proceedings of the Meeting of the

Budgeting For Results Committee

School District No. 2, Yellowstone County

High School District No. 2, Yellowstone County

Billings, Montana

 

Call to Order April 12, 2010

 

The Budgeting for Results Committee of Billings School District No. 2, Yellowstone County, and High School District No. 2, Yellowstone County met at Lincoln Center, 415 N. 30th Street, Billings, Montana, on Monday, April 12, 2010. Chair Joel Guthals called the meeting to order at 5:20 p.m. and led those in attendance in the Pledge of Allegiance. In attendance were committee members Peter Gesuale, Joel Guthals, Joan Sleeth, Deana Elder, Rod Gottula, Barbara Bryan, Sandie Mammenga, and Paige Darden. Committee member Tom Bick arrived at 7 p.m. Also in attendance were Rich Whitney, Thomas Harper, Scott Anderson, Barb Buss, and Rob Rogers.

 

Communication from Public

There was no communication from the public.

 

Committee Structure Review

 

Chair Guthals explained that board policy allows 14 members on this committee; seven who are community members and seven that are school district associated. We have a staff member who is interested in being on the committee, but he explained that there is no vacancy at this time. The Chair explained that she will continue to attend these committee meetings and be considered when appointments are made this summer.

 

In the meantime, the committee does have a vacancy of a community member due to one member moving away and resigning their position. We have an interested community member, Charles Loveridge, who has applied to be appointed to the committee. Paige Darden motioned to recommend Charles Loveridge be appointed to the Budgeting for Results Committee for the remainder of the committee term. Peters Gesuale seconded the motion. Rod Gottula asked if there is a requirement to have the general public aware of the vacancy. Chair Guthals stated there is no requirement in current policy. The vote was taken. The motion passed unanimously.

 

Consent Agenda

 

Peter Gesuale moved to recommend Board approval of Consent Agenda items as follows:

1. Minutes of March 8, 2010

2. Addition of Rachel’s Challenge Trust Fund account at Castle Rock Middle School

Barbara Bryan seconded the motion. The motion carried unanimously.

 

Bills Paid – March, 2010

 

Rod Gottula motioned to recommend the Board approve the bills paid for March 2010. Barbara Bryan seconded the motion. The motion carried unanimously.

 

Financial Reports – March, 2010 (Unaudited)

 

The Committee reviewed March, 2010 unaudited financial reports. Thomas Harper stated with 75% of the year complete, we have 65% of revenue collected which is due to timing of tax collections that will come in May. 66% of expenses have been paid, due to the lag in timing of payroll that will offset in June.

 

 

 

 

Health Insurance Financials – February , 2010 (Unaudited)

 

Chair Guthals asked Thomas Harper to give an overview. Thomas Harper stated that based on current trend, we are still projecting a break-even in the health insurance plan for FY2010. There were no other questions from the committee.

 

Quality Schools Project Grants

 

Rich Whitney, Executive Director of Facilities Services, presented information regarding Quality Schools Grants projects, which are through the Montana Department of Commerce as a part of ARRA stimulus funds. We originally applied last year and were approved and completed two projects: the Career Center rooftop units and the roof at facilities. These were known as the Quick Start Grant. We have now applied for the next group of grants via application that was submitted March 1, 2020. There is a total of $10 million available statewide. The state says they will award these by the end of April. The projects we submitted were for energy management systems at six locations, window replacement at Senior High and Poly Drive School, lighting project at Arrowhead, and roofing at Castle Rock.

 

Castle Rock Middle School Reroof

 

Rich Whitney also presented the project to reroof a portion of the roof at Castle Rock Middle School. He stated this is considered a high priority as it is leaking into areas of the building. The area has the original roof. We solicited bids last summer and Empire Roofing was low bid. They have agreed to extend their bid price until April 30, 2010.

 

Chair Guthals asked Thomas Harper if we have the funds to pay for this project. Thomas replied that it is one of the projects submitted for the Quality School Grants and if that was not awarded, we have funding in the ARRA Deferred Maintenance and Energy Efficiency grant funds. Joel Guthals asked if there were any stipulations on that particular ARRA funding and Thomas replied that it has a strict timing deadline of September 30, 2010, but no other stipulations.

 

Joel Guthals asked about energy savings on this project. Rich Whitney stated there would be some savings as new insulation would have to be installed.

 

Barbara Bryan asked what other projects remain to be completed. Rich Whitney stated that he should have all that information available at the next meeting after he learns the outcome on the award of the Quality Schools Grants projects.

 

Rod Gottula moved to recommend that the award for the reroof project at Castle Rock Middle School be granted to Empire Roofing for the bid amount of $97,450.00. Barbara Bryan seconded the motion.

 

Barbara Bryan asked if we are familiar with the work of the vendor, Empire Roofing. Rich Whitney stated he has worked with them on many projects and is comfortable with their work.

 

The vote was called. The motion passed unanimously.

 

Signage at Schools

 

Chair Guthals asked Thomas Harper for an update on this subject. Thomas reported that we are compiling an inventory of signs that we presently have in the district and have also put out a Request for Interest to see if there are parties interested in participating in donations for signage or other advertising. We have not received any replies to the RFI. He stated we have also researched what policies are in place regarding revenue raising. There was discussion about commercializing in our schools and what type of business and what areas of the building we would allow signage. Does the committee have enough information about the pending project at Senior high; we do know what the sign will cost based on a contract submitted by Epcon Sign.

 

Peter Gesuale commented that we would not have a sign that costs more than the funds that are received. He also made note that there could be some inequity in different school locations. For example, a sign on 24th Street West or on Grand Avenue could be considered more valuable than a sign on a more remote street; the funds that signage brings in should be for district-wide purpose, not just the location it is placed.

 

Barbara Bryan requested a list of the signage inventory be included for the board meeting packet.

 

Chair Guthals stated this was not an agenda action item, so there was nothing further at this time.

 

Enhanced P Card

 

Chair Guthals asked Thomas Harper to address this matter. Thomas explained that we currently use our PCard to purchase and pay for small cost items in order to reduce the amount of warrants written each month. PCard stands for Procurement Card or Purchasing Card. Items less than $2,500.00 can currently be purchased with the PCard.

We are now looking at an additional procedure (enhanced PCard) that will facilitate how we make payment to vendors using electronic methods rather than payment by paper warrant. We would still use our purchasing process and approval methods; only the payment method would change. We currently have proposals being prepared by Wells Fargo Bank and Commerce Bank and are reviewing the accounting viability.

 

Joel Guthals asked what controls are in place to ensure purchases are made at the best prices available. Thomas responded that we have standard stock items for purchase from our central warehouse supply, and then have contracts and agreements with vendors to get the best prices. Work is being done to provide increased communication to staff of who are the preferred vendors. Thomas also stated that spending is controlled by monitoring purchases; most items purchased are less than $100.00. Joel asked Scott Anderson, Executive Director of Secondary Education, for his input. Scott responded that currently all transactions are subject to review and approval of the building supervisor and he is comfortable with the process.

 

Paige Darden asked for further explanation on the feature of the enhanced PCard. Thomas explained that it will be used as an alternative payment method; rather than writing a check for payment, we would submit payment electronically through a third party (such as Wells Fargo Bank or Commerce Bank).

 

Joel Guthals overviewed that it appears the committee likes what is being done with the PCard, but would like to see further implementation of best pricing.

 

Food Service Contract

 

Thomas Harper reported that it is a USDA requirement that we have a contract once every five years for food services. We have a bid from Sodexo for a 5 year contract. It is the only bid that was received. There was discussion about the charts and graphs that were presented in the handouts. Thomas stated that any fluctuation in prices is reflected in the price charged for our lunches that students pay; federal reimbursement for free or reduced-fee lunches helps keep the costs affordable.

 

Joel Guthals stated that since there was no other bid, there is no competition; however he feels there are some issues with quality. Rod Gottula noted that for some high school students the portion size is too small and there is not enough to eat. Joan Sleeth noted that for elementary students, they still do not receive fruits and vegetables. They are required to take the main offering and milk, but the fruit and vegetables are offered but not required and students often do not take other than what is required.

 

Joel Guthals asked Thomas for a time-frame to complete the new contract. Thomas stated it will be effective July 1, 2010. Joel stated that since the contract is for five years, it seems a very important matter. He suggested that perhaps the committee should recommend to the board that there be a survey conducted of schools regarding food quality and possible improvements.

 

Barbara Bryan suggested that perhaps the Student Health Advisory Council (SHAC) could conduct the survey plus provide some input on the contract.

 

Sandi Mammenga stated that before we enter in to a five year contract, we should be doing all we can to ensure the quality and the best we are able to receive for our contract.

 

Thomas Harper stated that he did want to interject that there are at least annual meetings with Sodexo each year to go over specific items and expectations of the contract such as quality and to get feed-back for the upcoming school year, so there is discussion each year, not just a contract signed once for five years.

 

Barbara Bryan motioned that the Sodexo contract be referred to the School Health Advisory Council and request they report back to the Budgeting for Results committee in one month to report best recommendations to be included in the contract about quality and other performance requirements, as well as conducting a survey to buildings in order to receive qualitative input. The motion was seconded by Peter Gesuale. Tom Bick asked if we have compared this contract to other school districts in Montana. Thomas Harper responded that from a financial stand point, this contact will place us ahead of other districts. He has seen other districts having to subsidize their school food program with general funds. The chair called for a vote on the motion. The motion was approved unanimously.

 

Budget Award

 

Thomas reported that he was recently notified that Billings Public Schools has been awarded the “Meritorious Budget Award” for the 2009-2010 budget by the Association of Schools Business Officials International. Joel Guthals conferred congratulations on this accomplishment.

 

Budget Update

 

Thomas Harper stated he would like the committee to continue its discussion of the high school budget for FY2011 at this time. Chair Guthals stated that from our meeting last month, we still have a gap in what was projected for revenue and what spending is projected. Thomas Harper went over the items that had been previously discussed. He also noted that some funding that was thought to be reduced by the state has been determined to be re-instated. This is the School Block Grant that will provide funding of $170,000. This information was just provided by the state last week. Given this new funding, and accounting for the items this committee already recommended for budget reduction, the remaining gap is $182,586.

 

Joel Guthals asked Scott Anderson, Executive Director of Secondary Education, to address the committee. Scott stated that there have been many meetings with administration, including building principals, to address this gap and trying to determine what would have the least impact on students. Scott stated that they have reviewed programs to also determine the best delivery and if we are receiving our best benefit for what we are spending, especially in the at risk population of students. He stated the Superintendent has suggested that $50,000 from the Indian Education Achievement Gap be directed to the 2011 high school budget to fund the at risk program, reducing the gap to $135,586. Scott stated that his high school team then would be willing to reduce the at risk budget by $50,000. The Superintendent stated that he would then work with Thomas Harper to determine $82,586 in budget items that could be reallocated to balance the remaining shortfall. These items would be examples such as utility savings, retirement savings (severance payments to retired staff), savings in the election budget, and legal fees.

 

Barbara Bryan asked Scott Anderson about grant opportunities at the high school level. Scott stated that there have not been any available to us, but some of our partners (Tumbleweed, Rimrock Foundation) receive grants that we then benefit from.

 

Peter Gesuale asked for more clarification on retirement savings. Thomas Harper responded that the subject is two-fold: a) New hires cost less in salary versus those that retire that have been higher paid, creating a savings in projected salary cost, and b) a set amount is budgeted for planned expenses to pay severance for those that may retire; however, if not as many retire, then there are still unspent budgeted funds. Peter stated his question is should we modify the salary projections when we now are aware that we have fewer retirements, so we will have the higher salary amounts to pay. Chair Guthals directed Thomas Harper to double check the salary figures to be certain that all retirements have been accounted for and the proper amounts of salary is budgeted for all high school certified positions.

 

Peter Gesuale also requested more information on utility savings, as it is discussed that the district has current utility savings, but there has not been a change in the projected budget. For example, we have budgeted a certain amount for utilities in FY2008, and the same amount in FY2009, and the same amount in FY2010. Considering that the actual utility expense is now coming in at less, then we should not need to budget the same amount in FY2011, allowing funds available in FY2011 for other areas – this could help solve the high school budget gap if it is not necessary to budget as much in utilities. Peter stated he would prefer that we check all other areas before having to cut a program such as the at risk area.

 

Joan Sleeth discussed more about the salary budget. She recalled that when we made budget assumptions in December, that was based on all of the same staff for the following year. Peter Gesuale stated that he believes that now we are aware of how many actual retires, we can calculate a difference in the salary cost of retirees versus new hires.

 

Thomas Harper stated that the savings difference is included in the total projected budgeted expenses for the high school, as well as the difference in projected health insurance cost. Chair Guthals requested Thomas Harper to provide the detailed amounts of the “new” expense amount and provide that information to committee members via email.

 

Joan Sleeth requested that Thomas Harper also show the committee how the total high school salary has changed from the December projection, less the 12.67 positions that were approved to be reduced through attrition/elimination.

 

Chair Guthals stated that it appeared to be the wish of the committee to request Thomas Harper work with the superintendent to determine if all of the $182,586 gap can be covered with other budget adjustments before a program (such as at risk) is cut. These budget changes would come mostly from additional energy savings and projected compensation and retirement area in addition to the ones otherwise identified such as election costs and legal fees.

 

Joan Sleeth asked about the vendor that we pay to assist us with energy savings and how we budget for that. The response is there is a separate budget line item for that cost. It was noted we are in a five year contract with that vendor.

 

Deana Elder asked about the savings identified as Office of Development and Advancement, if this was for the warrants that we paid to Federal Management Strategies and Thomas responded yes.

 

Warehouse and Print Shop

 

Chair Guthals asked Thomas Harper for an update on this subject. Thomas stated that his department is working on a baseline study on the warehouse and purchasing throughout the district, as well as the print shop.

He stated the study is currently in progress, but not yet complete. He affirmed the need for enhanced communication to staff about preferred vendors and best cost vendors.

 

Joel Guthals suggested that more efficient use of the print shop and standardized usage, as well as the ability to utilize digital files could result in substantial cost savings.

 

Paige Darden mentioned that we should also compare our printing expense to other vendors. Deana Elder reminded that we have a contract with staff that must be honored and should not be considering ideas that would conflict with our existing agreements. Joel Guthals stated that we have not found outside vendors to be cost competitive with our in-house print shop.

 

Committee members gave input on usage of the print shop and were in agreement that use of the print shop may need some adjustment in flexibility. Peter Gesuale stated he felt much of this should be a district management issue to be able to adjust for all the variables.

 

Joel Guthals stated it is clear that there is potential for substantial savings, which this committee encourages. He also recapped that some marketing might be helpful.

 

Teachers on Special Assignment (TOSA’s)

 

In response to a prior month’s committee request, information was presented about Teachers on Special Assignment. Committee members noted that there was no mention of reading coaches, math coaches. Chair Guthals requested Thomas Harper to get clarification on teachers that are non-instructional and also what percentage of their time is actually spent with students as often their time is mixed. Thomas Harper stated that would perhaps ask Gail Surwill to address the committee on this topic. Sandie Mammenga also commented that having the math and reading coaches in her building seems to achieve the best product for the effort – she is pleased with having coaches.

 

Future Agenda Items

 

Rod Gottula mentioned with the note on future agenda items of examining outsourcing, the committee should be reminded to be cautious about considering outsourcing when we already have agreements in place that would not allow certain areas to be outsourced. Peters Gesuale noted, however, that the committee is still Budgeting for Results and must consider anything that may provide a positive fiscal impact. Paige Darden also stated that she did not feel there had been much training for this committee, so she asks many questions and if she asked about an area that offended someone, that certainly was not her intention. Deana Elder stated she was appointed to the committee to represent the members of the BCEA and that is what she would intend to do. Joel Guthals stated that the committee does not enter in to unfair labor practices and that would not be considered.

 

Adjournment

 

There being no further business, the meeting was adjourned at 8:45 p.m.

 

 

 

 

______________________________

Joel Guthals, Chair

 

 

________________________________

Jeri Anton, Recorder