Guest sullinss Posted March 15, 2005 Report Share Posted March 15, 2005 Proceedings of the Business Committee School District No. 2, Yellowstone County High School District No. 2, Yellowstone County Billings, Montana February 15, 2005 The February 15, 2005 Business Committee meeting was called to order at 5:30 p.m. by Acting Chair Dale Getz. Committee members present were Patty Lacy, Joan Sleeth, Jerry Hansen, Judy Herzog, Bob Whalen, Shanna Henry, and Dale Getz. Malcolm Goodrich attended from 6:10 p.m. until 7:10 p.m. Absent were members Peter Grass and Curt Prchal. Also in attendance were: Adam Hanel, Peggy McSweyn, Business Manager Thomas Harper, District Clerk Leo Hudetz, Rich Whitney and Karen Palmer. Pledge of Allegiance Acting Chair Dale Getz led those assembled in the Pledge of Allegiance. Request to Authorize Hiring of Special Education Needs Assistant A request was received from Kathy Olson to cancel this agenda item. Addition of Rose Park Special Fund-Trust Account Board approval is required to set up a new Trust account. Principal Lemelin is requesting a trust account be set up for Rose Park Elementary School. This fund will be for miscellaneous donations to the school. Shanna Henry introduced a motion to recommend the Board approve a new Rose Park Special Fund Trust Account. Judy Herzog seconded the motion. The motion carried unanimously. Minutes – January 10, 2005 Jerry Hansen introduced a motion to approve the minutes of January 10, 2005. Joan Sleeth seconded the motion. The motion carried unanimously. Mechanical System (HVAC) Replacement – Senior High/2005 As previously approved on the Secondary Building Reserve 2005-2005 Project List, a bid was let for this project and was opened on February 9, 2005. Bid results are as follows: Base Bid Alt. 1 Alt. 2 Alt. 3 Total Bid Star Service $1,422,600 $248,400 $385,900 $84,675 $2,141,575 Wagner’s Mechanical $1,473,000 $281,000 $405,000 $83,000 $2,242,000 Facility Services recommends the project be awarded to Star Service to do the Base Bid, which is floors two and three, along with all three alternates. Alternate 1 is buying the chiller, Alternate 2 is the first floor, and Alternate 3 is for an emergency generator for all of the electrical systems. It will take 6-7 more years to remove all the old mechanical systems. The music wing and art wing on the first floor are not in the base bid, but will be added to another phase. Judy said we need to be certain this project is within the realm of the Long-term Planning Committee recommendations. Rich said this project will serve a minor remodel configuration. The Test and Balance would be an additional expense. Asbestos abatement would be an additional expense of approximately $50K. Rich would like to order the custom made rooftop units by the end of February to allow contractor work completion by August 12th. We are doing the majority of the classrooms in three phases, plus another year to do the auditorium and cafeteria, plus two more years to complete the music/gym area. This totals approximately six summers to complete. We have the dollars to complete Phase I, but will require another levy to complete the rest of the projects. We have 10% contingency built into the bids. Jerry Hansen introduced a motion to approve the Star Service bid for $2,141,575 plus the Balancing and Testing Contract to Bighorn Corp. for $21,460. Bob Whalen seconded the motion. The motion carried unanimously. Financial Reports – January, 2005 (Unaudited) The January, 2005 (Unaudited) Financial Reports have been reviewed by the Committee. School Resource Officer Program Chairman Malcolm Goodrich joined the meeting at 6:10 p.m. and took over Chairmanship. The City of Billings Police Department is asking the District for written confirmation of funding for the School Resource officer Program FY2005-06 in the amount of $110,000. This is a mutually beneficial program whereby Billings Police Officers are assigned as School Resource Officers in the High Schools and Middle Schools. Program objectives are: liaison between the Police Dept. and youth and neighborhoods, education and information sharing, protection, investigation, crime prevention, and problem solving. This program has enjoyed a 9 ½ year history in Billings. The schools provide an office, furnishings, telephone and computer and the Police Dept. provides required police equipment, including radios and vehicles. Thomas is having an exploratory conversation with the City asking for help in absorbing part of the cost. The City Finance Director will take it to their City Administrator as part of their process. There are no grants to help with finance. Judy Herzog introduced a motion to recommend Board approval of the School Resource Officer Program FY2005-06. Dale Getz seconded the motion. The motion carried unanimously. Food Service Contract The Food Service Subcommittee reviewed two proposals for the District’s food service provider and evaluated each on the basis of ten relevant factors. The bidders submitted proposals that defined their position on each factor. Based on the results, the subcommittee recommended a five year, renewable each year contract, be awarded to Sodexho. In the future Jerry would like to see an executive summary of the comparison of the contracts and the bids before we approve one. Bob Whalen, a subcommittee member, stated the bids were about the same and the overriding factor was the excellent service Sodexho has provided over the years and their willingness to look at healthy eating initiatives in the schools. Judy Herzog introduced a motion to recommend the Board approve a five year, renewable each year food service contract with Sodexho. Bob Whalen seconded the motion. The motion carried unanimously. Acceptance of Network Manager Job Description Karen Palmer, Director of Technology, has evaluated the Technology Department to determine the level of service to the District and possible improvements. She is proposing a Network Manager job description be established for 2.0 FTE to do infrastructure like cables, switches and routers between buildings as well as network security. These positions would be filled through reorganization and would alleviate a lot of outside contractor costs. Human Resources, COLT, the Technology Dept., and the BCEA approve of the Network Manager job description which would be established at wage level IV at a salary of $20.02/hr. (2004/05 YR) for an increase of $9984 per year to the Technology salary budget. Shanna asked what affect filling these two positions from existing FTE in the IT Dept. would have on their workload since Technology is already stretched to the limit. Karen will address this through the next agenda item as follows. Reorganization of Technology Department Changes in the reorganization of the Technology Department include: 2.0 FTE Network Manager, move .5 Assessment Specialist to 1.0 FTE, reduce Computer Technician from 6.0 FTE to 5.0 FTE, and reduce Information Specialist I from 3.5 FTE to 2.0 FTE for a annual increase in the Technology budget of $20,446.40. Karen is realigning some of the work and believes that they can handle the added workload. Systems like Zangle are becoming more familiar to employees and require less technology support which offsets this added workload. Bob Whalen introduced a motion to recommend Board approval of the Network Manager job description and the reorganization of the Technology Department. Shanna Henry seconded the motion. The motion carried unanimously. Budget Forecasts FY 2005-2006 Leo Hudetz, District Clerk/Internal Auditor, was asked to study Indirect Costs with the purpose of viewing future grant requests to determine their effect on the general fund budget. Leo reported when the District gets a grant through OPI or the Federal Government we have the right to apply an approved Indirect Cost Rate to pull money out of that grant to fund indirect costs like administration, accounting, and human resources. School districts have the option to let OPI figure the rate from the Trustees Report, or we can take their rate and ask for an adjustment. We have allowed OPI to figure our Indirect Cost Rate; however, in the last several years calculation of indirect costs has changed. Indirect costs not included in the current OPI determined rate are $2,554,761 elementary and $1,395,534 high school. We did not include severance pay (OPI used our compensated absence fund), Information Technology (District-wide applications), outside audit fees, legal fees, and the grant writer. Our average current Indirect Cost Rate (HS and elementary) is 1.48%. If we ask for a revision, we could ask for 9.35%. If we submit a revision, OPI would allow us to recover that new rate from the date they approve it forward. This would be effective March through June, and about 40% of the grant money is spent in the last three months. The total dollars are the same – if you take more money in Indirect Costs, you get less money available for programs. If we adjust our rate to the higher amount, the benefit would only last two years. You can approve the rate and choose which grants to apply the higher rate to and how much of the increased rates you want to use. Title I and Title II have carry-over money each year and could handle the higher rate. The rest of the grants are usually expended each year. The District decides how it wants to spend Indirect Costs. The Committee believes every grant should bear its fair share of indirect costs that the District incurs for that particular grant and should not be subsidized by the general fund. Dale Getz introduced a motion to pursue an increased Indirect Cost Rate for all grants for fiscal year 2005-2006 and thereafter. Judy Herzog seconded the motion. The motion carried unanimously. Request to Authorize an Increase of FTE for a Special Education Needs Assistant A request has been received to increase a special needs assistant FTE (4 hours) to provide special education services. This would end with fiscal year 2005. Judy Herzog introduced a motion to recommend Board approval to increase a special needs assistant FTE (4 hours) to provide special education services for the rest of fiscal year 2005. Dale Getz seconded the motion. The motion carried unanimously. Budget Forecasts 2005-2006 (continued) Chair Goodrich presented an updated general fund budget forecast for 2005-06. Even reflecting the Governor’s proposal of added funding there is an estimated general fund deficit of $146,497 elementary and $407,013 high school. The revenue numbers are solid with final student count numbers secured and agreement on FTE with the union. Flex, MAC and Medicaid funds were figured into other sources of revenue. Expenses were derived by using contract figures, trends and averages, and estimates on utilities. Notice to run a mill levy needs to be given by March 24th. The largest voted amount possible is: Elementary High School Largest voted amount possible: without Governor’s proposal 199,813 2,104,158 with Governor’s proposal 648,462 2,186,249 A mill levy study group is being formed. Dale noted the expense projection shows a $3.3M increase (7.1%) from 2005 to 2006 and the contracts do not increase that percent. The Chair requested Thomas provide a number breakdown on expenditures to show the differential on the increased costs from year to year. Chair Malcolm Goodrich left the meeting at 7:10 p.m. Acting Chair Dale Getz took charge of the meeting. Jerry Hansen presented his analysis of Maintenance & Operating Expenditures (M&O) for 2004 and 2003 for each of the Districts and compared them to the industry standards. Most note worthy was the increase in employee benefits, utilities, and telephone expenditures. In the High School District there was a significant increase in professional services due to fees associated with the bond levy. The Elementary District spends 7.51% and the High School District spends 8.47% of total expenditures on M&O. The industry average in 2004 was 7.70%; but, when the Building Reserve levies are included, the Elementary District spends 10.43% and the High School 10.11%. Our facilities average 46 years of age which contributes to the higher percentage of total expenditures for M&O. Jerry also passed out single page financial statements for both Districts and discussed how each transaction is classified. This detail provides the ability to produce reports classified in various formats that would be useful when preparing budgets. Gail Surwill and Shaun Harrington reviewed the District’s textbook adoption schedule. They research, write, edit and review learning objectives for a Mapping Guide to align it with State and National Standards. Curriculum documents are approved per Board Policy. They research and review materials, receive public comment and select materials for Board adoption. Professional Development training is determined for successful implementation. State law asks we revisit our curriculum documents every five years. Our District is on an 8-10 year cycle for textbook adoption. The K-8 Curriculum Work scheduled FY2005-06 totals $413,000. Textbooks, replacements, and teacher materials are extremely expensive and quickly go out of print, preventing the purchase of new or replacement books. Announcements Thomas announced that we will soon be sending out the RFP for next year’s audit; we are working on the commercial insurance; and, we will be bringing a recommendation forward for the activities transportation contract. Adjournment There being no further business, the meeting was adjourned at 8:00 p.m. Malcolm Goodrich, Chair Dale Getz, Acting Chair Sherrill Sullins, Recorder Link to comment Share on other sites More sharing options...
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