Business Committee Mtg. March 13, 2006

[Guest sullinss]

Proceedings of the Business Committee

School District No. 2, Yellowstone County

High School District No. 2, Yellowstone County

Billings, Montana

 

March 13, 2006

 

Call to Order

 

The Regular Meeting of the Business Committee of School District No. 2, Yellowstone County and High School District No. 2, Yellowstone County, Montana met at Lincoln Center, 415 North 30th Street, Billings, Montana, on Monday, March 13, 2006. Chair Dale Getz called the meeting to order at 5:30 p.m. and led those assembled in the Pledge of Allegiance. Committee members present were K. Dale Getz, Jerry Hansen, Peter Grass, Kari Altenburg, Joan Sleeth, Shanna Henry, Jerome Chvilicek, Joel Guthals, and Tim Cranston. Absent were members Curt Prchal, Katharin Kelker, and Randy Durr. Also present were Business Manager Thomas Harper, Superintendent Rod Svee, Rich Whitney, and Karen Palmer.

 

Communication From the Public

 

No one wished to address the Committee.

 

Consent Agenda

 

Joel Guthals moved to recommend Board approval of Consent Agenda items as follows:

1. Minutes of February 06, 2006

2. Sub-Committee Minutes of February 14, 2006

3. Sub-Committee Minutes of February 21, 2006

4. Sub-Committee Minutes of March 02, 2006

5. Addition of Literary Magazine ECA Account at West High

6. Addition of Montana Behavioral Initiative (MBI) ECA Account at West

Peter Grass seconded the motion. The motion carried unanimously.

 

Painter Replacement-Facilities/2006

 

Facility Services has 4.0 FTE painters and one is resigning at the end of the month. Because of the freeze on hiring, Facilities is requesting this budgeted position be filled with a replacement hire. Rich Whitney was asked how painter performance and effectiveness is measured and if less skilled labor could be effective. Rich stated the painters are scheduled an amount of time at each school based on building square footage and priorities are set by building Principals. On-staff painters are cost effective. Less skilled labor is not necessarily cost effective and may conflict with bargaining agreements. Rich was asked if he could manage for a couple months until the budget is known. Rich said he could but the level of service drops and it adds to the backlog.

 

Joel moved to defer hiring a replacement for the resigning painter until the budget is finalized. Jerry Hansen seconded the motion.

 

Peter Grass asked if the motion was meant to allow hiring a temporary. Joel said no. Voting in favor of the motion was Joel Guthals, Jerry Hansen, Dale Getz, Kari Altenburg, Joan Sleeth, Shanna Henry, Jerome Chvilicek, and Tim Cranston. Voting against the motion was Peter Grass. The motion carried.

 

Rich was asked to estimate catch-up costs for material and labor to get to a workable backlog with the potential of utilizing some of the weatherization and deferred maintenance funds.

 

Bench Elementary HVAC – 2006

 

On the Elementary Building Reserve 2005-06 Project List, a bid was let for the Bench Elementary HVAC-2006 project and Facilities recommends the project be awarded to low-bidder Wagner Mechanical. The bids were:

 

Contractor Bid

Wagner Mechanical, Inc $748,000 (low bid)

Star Services, Inc $757,000

Williams P & H, Inc $967,800

 

Rich was asked if this project would take away dollars to fix the mold issue at Bench long-term and Rich replied it would not. There are no high levels of mold in the classroom; and, they are working with the State Health Dept. to remove the mold from the crawl space intact (since it only becomes a problem if it is disturbed and becomes airborne). The water drainage problem is being addressed in a separate project. New ventilation will actually improve the air quality.

 

Tim is in favor of exploring natural solutions first, measuring that data and then looking at air conditioning units. The Energy Innovation Committee has examined a lot of information on student performance in relation to ventilation. This Committee will also be working on a detailed energy analysis project at a school in the future.

 

Joel moved to recommend Board approval to award the Bench Elementary HVAC-2006 project to low-bidder Wagner Mechanical, Inc. for $748,000. Peter Grass seconded the motion. Joel said a representation was made to the public when voters approved this funding and the public expects money to be spent in accordance with this representation. However, he is in favor of using an innovative design concept in the future. Peter agrees with the concept and is in favor of the Energy Innovation Committee’s process examining a pilot school.

 

Voting in favor of the motion were Kari Altenburg, Joan Sleeth, Shanna Henry, Jerome Chvilicek, Joel Guthals, Peter Grass, Jerry Hansen, and Dale Getz. Voting against the motion was Tim Cranston. The motion carried.

 

Rooftop HVAC Replacement – Will James 2006

 

On the Elementary Building Reserve 2005-06 Project List, a bid was let for the Rooftop HVAC Replacement at Will James 2006 project and Facilities recommends the project be awarded to the low bidder Accent Air & Mechanical. The bids were:

 

Contractor Bid

Accent Air & Mechanical, Inc $ 76,362 (low bid)

Empire Heating & Cooling $ 78,096

McLee’s Heating & Air Conditioning $148,000

 

Joel Guthals moved to recommend Board approval to award the Rooftop HVAC Replacement Will James 2006 project to low-bidder Accent Air & Mechanical, Inc. for $76,362. Jerry Hansen seconded the motion. The motion carried unanimously.

 

Peter Grass was excused from the meeting at 6:20 p.m.

 

School Resource Officer Program

 

The City of Billings Police Department is asking the District for written confirmation of funding for the School Resource officer Program FY2006-07 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.

 

Joel Guthals moved to recommend the Board defer confirming the funding of the SRO Program until the budget is finalized. Tim Cranston seconded the motion.

 

Discussion was held on approving this program now or waiting for the budget to be finalized. Voting in favor of this motion was Jerry Hansen, Joel Guthals, and Joan Sleeth. Voting against the motion was Dale Getz, Jerome Chvilicek, Tim Cranston, Kari Altenburg, and Shanna Henry. The motion failed.

 

Committee members recognize the tremendous resource and support this program gives the District, and they believe this program is essential.

 

Joel Guthals moved to recommend the Board approve the School Resource Officer Program FY2006-07 in the amount of $110,000. Tim Cranston seconded the motion. The motion carried unanimously.

 

Joel Guthals was excused from the meeting at 6:30 p.m.

 

Technology Purchasing Recommendation from BPS Technology Advisory Panel

 

Karen Palmer, Director of Technology, was present to explain the BPS Technology Advisory Panel, a group comprised of staff members representing a cross section of the District, met to review District technology funding and needs. Their goal is to provide equal access to technology for all students and hold some money in contingency for emergencies.

 

One Technology funding source is the State Timber Reclamation Fund disbursed to districts based on enrollment and availability in the amount of $515,096.38. Another funding source is the one-time Microsoft settlement for $522,532.32 which must be used half and half for hardware and software with initial purchases reimbursed from UPC labels before November, 2007. Together these potential funding sources total $1,037,628.70. The Technology Advisory Panel recommends the following purchases from the Timber Funds: Network Upgrades $50,000; Implement Read 180 Enterprise in high schools $50,000; High School Art Curriculum Adoption $60,000; and Elementary Computer Labs for $100,000 for a total of $260,000. This leaves a balance of $255,096.38 in the Timber Funds.

 

There is no General Fund line item for computer purchases for schools. Past Technology levies have failed. The Technology Plan calls for a four-year cycle on computers. Unused Timber money carries forward to the next year. Computer lab purchases will be wireless labs on carts because of electrical capacity and physical limitations in old buildings.

 

Shanna Henry moved to recommend Board approval for the purchases recommended by the BPS Technical Advisory Panel for $260,000 from Timber Funds. Tim Cranston seconded the motion. The motion carried unanimously.

 

Business Manager Thomas Harper joined the meeting at 7:00 p.m.

 

Young Families Request for Building Location

 

Young Families are currently located at Beartooth School. They pay 40% of the building’s utilities at Beartooth; and, their current lease of $1 per year is ending June 30, 2006. School District #2 pays for a teacher and supplies for them. They would like to move to a more central location to better serve students, and they presented three options to the District: 1) long-term lease of SD#2 building at 10th and Central with 25-year renewable lease due to large remodeling costs; 2) space at Rimrock School with the same concerns; or, 3) building a new facility on ground adjacent to Washington School.

 

It was unclear if they expect SD#2 to donate the land at Washington or how much of that location they need and what they would use for parking. Rich believes the stipulation on that privately donated land was that it be used for K-12 schools. Superintendent Svee believes one piece was donated by the State. He believes under a long-term lease, we would not have to declare the property surplus. Rich stated originally there were plans to build a SD#2 carpenter shop on that property, but it was not pursued due to lack of funding. Kari stated two years ago Young Families had a capacity to care for 34 students and if they accommodate more students she questions if it would it require another teacher from our District. These students generate ANB for our District. Jerry believes our District should not be in the real estate business and if the land is excess, we should sell it. It was questioned if they could be moved back into the Crossroads location on Grand. Young Families is an important part of our dropout prevention program.

 

Chair Getz believes this is not only a Business Committee decision on space and grounds but also has an educational impact which must be considered on a long-term basis.

 

Joan Sleeth moved to recommend the Board appoint a sub-committee drawn from the three standing Committees to develop alternatives for a potential Young Families location. Shanna Henry seconded the motion. The motion carried unanimously.

 

Hiring Registered Nurse – 1.0 FTE

 

Monica Witten requested hiring a Registered Nurse with unfilled existing FTE. The District is extremely short staffed on nursing. They perform about 113 daily regularly scheduled nursing procedures and health care plans are specific to each child. There are 8.1 FTE Registered Nurses and 2.563 FTE LPN’s for the entire District. They have elaborate schedules to cover all schools and they are already calling families to come in and help with medications for their children. About 130 kids per day present themselves to the office for approved medication.

 

Shanna moved to recommend the Board hire a 1.0 FTE Registered Nurse to fill the vacancy. Joan Sleeth seconded the motion. The Committee discussed the importance of this position including the fact that it is a safety issue. The motion carried unanimously.

 

Health Insurance – Financial Statements – January, 2006

 

The Balance Sheet and Statement of Revenue & Expenditures for January, 2006 is prepared by the Business Office and presented to the Committee for review. Reserves have improved over the previous year, but claims have increased in the last five weeks. Thomas advised the charter says reserves shall remain above $2.2M.

 

Bills Paid – February, 2006

 

Shanna Henry moved to recommend Board approval of the bills paid for February, 2006. Jerome Chivilicek seconded the motion. The motion carried unanimously. Tim asked the cost of a warrant, and better descriptions, and if some warrants could be combined. Thomas advised the new procurement card will decrease the number of warrants each month.

 

Financial Reports – February, 2006 (Unaudited)

 

The Committee reviewed the unaudited Financial Reports for February, 2006. Thomas was asked to provide answers to questions on page 47 (object 830); page 48 (object 300); and page 46 (Elem. Bldg. Reserve Salaries). Thomas noted the high school utility costs are actually 12% over last year because about $142,000 in propane bills were not forwarded to Accounts Payable for payment. These have since been paid.

 

Budget FY2006-07 Discussion/Scenarios

 

Thomas reported he is in the process of pricing accreditation and contract items for the budget. Chair Getz reported the sub-committee of the Business Committee will meet prior to the March 27th Board meeting.

 

Recommendation for Resolution on Reserves

 

Thomas believes we need a District policy to address the reserves level long-term. He presented a draft of potential fiscal management policies that are considered “best practices” from the GFOA that may help the District develop guidelines. Thomas proposed using tuition revenue to rebuild reserves; currently it is deposited to the General Funds and used to increase budget authority. Superintendent Svee advised that Blue Creek is looking for a facility inside Billings whereby we would lose that ANB and tuition revenue at an estimated $350K. He suggested the Committee may want to do a feasibility study against charging tuition. Jerry said the budget has to be structurally balanced to have those funds available to replace the reserves. Joan was concerned if we lose Blue Creek ANB it will reduce staff.

 

 

 

 

General Comments/Announcements

 

Tim requested future agenda items detail FTE impact, the cost and how much of that is budgeted, and the funding source. Thomas will send this request via e-mail to administration.

 

The next Regular Business Committee meeting will be April 10, 2006.

 

Adjournment

 

There being no further business, the meeting was adjourned at 8:16 p.m.

 

 

 

 

K. Dale Getz, Chair

 

 

 

 

Sherrill Sullins, Recorder