Special Meeting of May 2, 2005

[Diane Blevins]

Proceedings of the Board of Trustees

District No. 2, Yellowstone County

High School District No. 2, Yellowstone County

Billings, Montana

 

May 2, 2005

 

Call to Order

 

The Special Meeting of the Board of Trustees of School District No. 2, Yellowstone County, Montana, and High School District, Yellowstone County, Montana, was duly held at The Lincoln Center, 415 North 30th Street, Billings, Montana, May 2, 2005, at 5:30 p.m.

 

Those present included: Judith Herzog, Gene Jarussi, Superintendent Rod Svee, Katharin Kelker, Mike Dimich, Conrad Stroebe, Clerk Leo Hudetz, Malcolm Goodrich, Dale Getz, and Karen Moses.

 

Registered guests included: Janet Baum, Joel Guthals, and Elsie Arntzen.

 

Communication from the Public

 

The Board recognizes the value of public comment on educational issues and the importance of listening to members of the public in its meetings. The Board also recognizes the statutory and constitutional right of the public to participate in governmental operations. The Board encourages members of the public to participate in and express opinions about issues important to the District. This part of the Board’s meeting is dedicated to public comment on any public matter that is not on the agenda of this meeting and is within the jurisdiction of the Board of Trustees. Members of the public may also address particular items on this agenda either now or at the time the Board considers the particular item. There were no public comments.

 

Insurance

 

Dan Martin stated the Board needed to set the rate for the health insurance for the 2005/06 school year. The Insurance Committee has met and also met with Trustees Moses and Getz. Trustee Getz reported the District and bargaining units in January agreed to split the risk due to declining reserves. The District contributed an additional $15 and the units reduced their coverage by the same amount. Next year, an increase is anticipated due, in part, to demographics of aging clientele. It was agreed by the District to continue to pay the additional $15, plus approximately $5 for LTD. The unions would go back to the coverage that was offered prior to January. The reasoning was to provide coverage to those that are insurable. If coverage is reduced, those insurable may be opting out of this plan, which would make it a questionable plan. The committee did not have the most current reserve information levels. When the new figures are available, the District could choose to change the amounts.

 

Trustee Jarussi asked why the District should pay more than the contracted amount? Dan Martin replied there will be pressure to make this plan qualify as a HAS (Health Savings Account) for those people who are getting no benefit, and the District did not want the plan to get hit by adverse selection. The BEA agreement states the District must provide single coverage. Trustee Jarussi felt both sides should have a stake in the plan and saw no stake in it by the employees. Mr. Martin stated without a fully funded plan, the plan would lose people. Trustee Getz stated for those who are insurable, if the coverage is not as robust, there is the risk that they will flee the plan and leave people who have more bills. If that were to happen, the reserves would be heavily drawn upon. For a new employee, health care coverage is very important. Trustee Getz stated, philosophically for him, it is a good faith effort for the future that says the District will try to attract good people.

 

Dan Martin reported the plan may experience a 17-18% increase and the Insurance Committee is reviewing the figures. He suggested a discussion be held in the future on the plan design, as the bargaining groups are saying they want to maintain coverage. Trustee Goodrich asked if the District could afford this increase without cutting people or programs. Dan Martin felt the dollars are there to do this increase. If the Board does not decide on this rate, negotiations would have to be opened up.

 

Trustee Goodrich made the following motion with a second by Trustee Getz:

 

Motion to raise the contribution for the next term for $15 for health, a total of $20, which includes LTD.

 

Those voting in favor of the motion were Mike Dimich, Dale Getz, Malcolm Goodrich, Judith Herzog, Gene Jarussi, Katharin Kelker, Karen Moses, and Conrad Stroebe. The motion passed unanimously.

 

Building Ownership

 

Superintendent Svee reported, since the handouts were not included with the agenda, the Board could take no action at this meeting. He reviewed the handouts. Mr. Svee reported the taxable value for the elementary district in 1951 was $25,869,078. The taxable value for the elementary district in 1959 was $49,659,574. He stated the ad hoc committee felt by utilizing the taxable values of the districts that paid for high school buildings compared to the percentage that came in as rural districts in 1951, and compare that same issue in 1959 as compares the four middle schools that have one-third ownership in the high school district. We would be talking apples to apples. Superintendent Svee stated he found documentation in the bond, that even though the high school district had been formed, it had never been activated. That was in correspondence from bond counsel. The number analysis for 1951 shows $513,006.25 would have been paid by rural schools if they were made to pay. In 1959, rural districts would have paid $499,914 if they had been made to. Senior High and West High were paid for totally by the elementary district.

 

Superintendent Svee stated he would like the Board to act on the ownership at the next meeting so it can be put into the records. Trustee Herzog stated the committee also discussed usage of the buildings, which was very complicated and unreasonable to figure out rent or who owes what. A solution would be to, from this time forward, charge rent for an elementary owned building occupied by a high school. It was determined the ownership issue would be addressed first.

 

As there was no further business, the meeting adjourned at 6:25 p.m.

 

 

 

 

Katharin Kelker, Chair

 

 

Diane Blevins, Recorder