MINUTES OF THE SPECIAL MEETING OF THE GOVERNING BOARD School District No. 40 of Maricopa County, Arizona District Office Board Room October 7, 2010 PRESENT: Mr. Martin Samaniego, Board President Ms. Sara Smith, Board Clerk Ms. Rosemary Arthur, Member Ms. Mary Ann Wilson, Member ABSENT: Mr. Steve Johnston, Member CALL TO ORDER The meeting was called to order by Mr. Samaniego at 5:24 p.m. quorum of the Board, with the absence of Mr. Johnston. Mr. Samaniego noted the presence of a OPENING EXERCISES Ms. Smith called for a moment of silence followed by the Pledge of Allegiance. Mr. Samaniego called for a motion to adopt the meeting’s agenda. Ms. Smith moved to approve the agenda as presented and Ms. Arthur seconded the motion. Upon call to a vote, the motion carried. VISITOR QUESTIONS AND/OR COMMENTS Ms. Norma Alvarez addressed the Governing Board as a community member, grandparent, and taxpayer to express concerns about perceptions in the community about the District’s financial practices, specifically in relation to allegations and investigations of the Valley Schools Trust that the District is a part of. She urged the Board to seriously consider withdrawing from the Trust to avoid being linked to the negative publicity. CONSENT AGENDA Ms. Smith requested to have item 4.B. Classified Personnel Report pulled for separate consideration. Ms. Smith moved to approve the Consent Agenda as presented with the exception of item 4.B. and Ms. Arthur seconded the motion. Upon call to a vote, the motion carried and the following items were approved: Certified Personnel: The following Certified Personnel items were approved: Barrera, Alma Bess, Renae Bowman, Kristie Kizer, Kellie Employment - New Behavior Interventionist Special Education Teacher, Spec Ed Desert Garden Teacher, Kindergarten Landmark Teacher, K/1st grade Burton $31,065.00 $34,962.00 $31,046.00 $28,385.00 09/27/2010 09/07/2010 09/07/2010 09/13/2010 Beunza, Elena Boyer, Fred Chapman, Amber Cross, Lisa Jess, Stephanie Lee, Susie Lewis, Laura Lindebak, Gary Lindebak, Sydney Paczosa, James Rudisill, Kathy Substitutes Substitute Various Substitute Various Substitute Various Substitute Various Substitute Various Substitute Various Substitute Various Administrative Substitute Various Administrative Substitute Various Administrative Substitute Various Administrative Substitute Various $90-100.00 $90-100.00 $90-100.00 $90-100.00 $90-100.00 $90-100.00 $90-100.00 $295-324.67 $295-324.67 $295-324.67 $295-324.67 09/28/2010 09/01/2010 09/13/2010 08/10/2010 10/04/2010 08/20/2010 08/17/2010 08/12/2010 08/09/2010 09/20/2010 09/02/2010 Minutes of the Special Meeting of the Governing Board Bruns, Melissa Hagen, Brent Driver, Paula Travel: Teacher, 4th grade Teacher, Spec Ed Teacher, Spec Ed Page 2 Resignations Coyote Ridge Burton Discovery October 7, 2010 (moving) 12/17/2010 09/14/2010 10/19/2010 The Board approved employee out-of-county travel requests for Lori Shough, Ed Sloat, Joe Quintana, and Candace Diehl. The following item was pulled for separate discussion and action. Classified Personnel: Ms. Smith asked for clarification on the employee listed under Change in Contract on page two of the Classified Personnel Report. Mr. Quintana responded that it would not be appropriate to discuss specific information at this time, but essentially the status of the employee’s contract was brought back to the Board with the recommendation to change from at-will to term contract. Ms. Smith asked what the reason was for changing this after a few months instead of keeping it how it is and making the change when contracts are offered for next school year. Dr. Smith explained the Board had approved the change from exempt/continuing to at-will on the April agenda, and the employee’s performance has indicated he is ready to be given the contract he is due and has had over the last several years. Ms. Wilson asked if there was a change in salary, which Dr. Smith confirmed there was not. Ms. Arthur moved to approve the Classified Personnel Report as presented and Ms. Smith seconded the motion. Upon call to a vote, the motion carried and the following Classified Personnel items were approved: Acosta, Ana Acosta, Francisco Armstrong, Aprili Barbosa, Juan Berry, Karen Brown, Loretta Canez, Briana Carlos, Leticia Cirilo, Anita Clark, Tiffany Figueroa, Daisy Herrera, Maria Howard, Katherine James, Bryon Kitchen, Paul Martinez, Jessica Martinez, Karen Martinez, Lydia Morales, Meredid Robertson, Serena Siordia, Joel Valdes, Cecilia Vejar, Sonja Employment – New Cleaner Coyote Ridge Cleaner Discovery Sub Lunch/Bus Monitor Transportation Sub Cleaner Maintenance Sub FS Worker Food Service Lunch/Bus Monitor Mensendick FS Cashier Food Service Sub ED Activity Leader Extended Day Sub Lunch/Bus Monitor Transportation Ed Assist Sp Ed SC Coyote Ridge Sub Lunch/Bus Monitor Transportation Sub FS Worker Food Services Crossing Guard Jack WH Delivery Driver Food Service Ed Assist Sp Ed SC GSA-Annex Cleaner Challenger Ed Assist Sp Ed Sine Crossing Guard Imes School Secretary Smith Crossing Guard Sunset Vista Journey Painter Maintenance Ed Assist Sp Ed Bici South Family Svcs Advocate Imes $8.44 $8.44 $8.65 $8.44 $8.44 $8.65 $9.09 $8.44 $8.65 $12.41 $8.65 $8.44 $8.44 $13.43 $11.58 $8.44 $9.55 $8.44 $10.80 $8.44 $18.44 $10.44 $9.09 09/22/10 09/22/10 09/20/10 09/20/10 08/31/10 09/13/10 09/08/10 09/16/10 09/16/10 09/30/10 09/22/10 09/20/10 09/24/10 09/27/10 09/29/10 09/14/10 09/09/10 09/21/10 09/07/10 09/20/10 09/13/10 09/16/10 10/04/10 Minutes of the Special Meeting of the Governing Board Page 3 October 7, 2010 Barlass, Christy Rios, Alejandra Silva, Joseph Trailor, Nellie Weston, Lisa Williams, Lucas Resignations Ed Assist Sp Ed Jack Ed Assist Sp Ed American Ed Assist Sp Ed Challenger Budget Technician Grants Wellness Program Spec Human Resources Ed Assist Sp Ed SC Landmark Alas, Edda Canez, Luis Curry, Ozie III Gonzalez, Ramona Herrera, Rosa Johnson, Joseph Kramperth, Jennifer Lindemuth, Megan Lopez, Rosemarie Lychwick, Moira Ford, Nicole Palomo, Rudy Perez, Aleida Panerio, Heather Position Changes FS Specialist Desert Spirit FS Specialist Mensendick Sec- Maintenance Maintenance FS Worker Jack Ed Assist Sp Ed SC Landmark FS Worker Imes EA-Assist Std Sunset Vista FS Specialist Food Service FS Cashier Coyote Ridge Ed Assist Sp Ed SC Coyote Ridge FS Cashier Burton Ed Assist Sp Ed Desert Spirit Ext Day Activity Leader Bici South School Secretary Mensendick $10.43 $10.03 $12.40 $8.44 $11.81 $8.00 $9.93 $10.03 $10.62 $11.81 $9.09 $9.93 $8.44 $11.82 09/27/10 09/27/10 09/08/10 10/01/10 09/27/10 09/22/10 09/27/10 09/27/10 09/27/10 09/20/10 09/22/10 09/27/10 09/07/10 09/27/10 Bender, Alicia Cervantez, Aleida DeAnda, Gabriela Dent, Claudia Weaver, Debra Zatarain, Agueda Changes in Hours Ext Day Activity Leader Sine Ext Day Activity Leader Coyote Ridge FS Worker Challenger FS Cashier Challenger FS Worker Challenger FS Worker Discovery $8.44 $8.44 $9.04 $9.94 $8.44 $8.44 09/07/10 09/07/10 09/27/10 09/20/10 09/15/10 09/20/10 Lopez, Catalina Pay Changes Lang Acq Data Specialist-Language Acquisition-$11.82 2nd Positions Challenger Bici North 09/24/10 09/07/10 09/03/10 10/01/10 09/10/10 08/31/10 $8.44 $13.49 07/01/10 Martinez, Jessica Cole, Barbara J Crossing Guard Sub Classified 09/20/10 09/20/10 Newman, Regina Peterson, Pat Leaves of Absence Ed Assist Sp Ed SC Coyote Ridge School Secretary Burton Werhanowicz, Robert Contract Renewal: Transition from At-Will to Contract Director Technology Services 09/30/10 Garner, Contina FS Worker End Temporary Assignment Bici South 08/28/10 09/24/10 – 08/30/11 10/01/10 – 06/30/11 Minutes of the Special Meeting of the Governing Board Page 4 October 7, 2010 ACTION ITEMS Annual Financial Report: Mr. Kevin Hegarty presented the Governing Board with information from the Annual Financial Report (AFR) for the 2009-2010 fiscal year. He noted that the report shows the District’s spending was down in Maintenance and Operations Funds, utilities, Soft Capital, and transportation. The employee benefits trust had an extra $3 million in expenditures last year, which was due to the prepayment made to the trust for 2010-2011 employee benefits from the 2009-2010 budget. Classroom Site Funds had a negative balance by $1.3 million due to revenues falling short of budget capacity (the per pupil allocation decreased from $244 to $120). He noted that another negative budget situation can be expected for 301 monies in 2011-2012. There were balances from 2009-2010 that were carried forward into 2010-2011: M&O had $2.2 million, Indian Gaming $940,000, Civic Center $300,000, Indirect Costs $1.5 million, and Medicaid $700,000. The District had some one-time expenses that lead to an increase in administrative spending: the prepayment of employee benefits and the initial cost for implementing Smart Schools, which would show as savings in 2010-2011; the Board’s extra expenses related to the superintendent transition including legal fees, interim superintendent, the former superintendent’s vacation payout and performance pay and the expenses of having the second override election in the Spring. These one-time expenses totaling $657,000 were offset by reductions made in administrative budgets elsewhere. Mr. Samaniego asked for clarification of what Civic Center funds are from. Mr. Hegarty explained these funds are revenues collected by the District for facility usage, transportation services, and cellular towers. Ms. Wilson inquired about how Medicaid funds can be used. Mr. Hegarty stated these funds could be used for anything except for the activities the District billed for that generated them. Ms. Wilson asked about the negative balances and how we were able to carry over funds with these. Mr. Hegarty explained the negative balance is attributed to the state delaying payments; even though the funds are not received yet, they are due to the District from the state. The District issues short-term debt to pay expenses until the cash is received from the state. Ms. Wilson asked what sort of expenses the bond funds were spent on. Mr. Hegarty reported the bond funds had been applied to facility-related expenses, such as roofing, facility repairs/remodels, etc., and a full report would be presented to the Board at the next meeting. Ms. Wilson asked about the $1.1 million difference in class size reduction funds. Mr. Hegarty stated that no funds had been used from Indian Gaming funds in 2009-2010, and these were being used to fund teacher salaries in the current year. Ms. Smith asked about the District’s plans for increasing energy efficiency. Mr. Hegarty reported that the District is looking at ways to increase energy efficiency with high-efficiency lighting and automating ‘shut down’ schedules for when facilities are not in use. He noted that the District had not seen the full-year impact of the improvements put in place or of the increase in utility rates to know for sure where things stood. Mr. Samaniego asked about which utility company the District used the most, and if we were working with them to save money in the future with things like solar panels. Mr. Hegarty responded the District works with them the best they are able to, but often times the District Minutes of the Special Meeting of the Governing Board Page 5 October 7, 2010 must pay a part of the expenses for the grant programs they offer. He stated he would provide the Board with a report breaking down expenses between the two utility companies. Ms. Smith moved to approve the Annual Financial Report as presented and Ms. Arthur seconded the motion. Upon call to vote, the motion carried. SUPERINTENDENT AND BOARD COMMENTS Mr. Quintana thanked the District’s teachers, technology staff, Achievement Advisors, Nathan Fairbanks, and staff who contributed time and effort to ensure everything was in place with the Genesis implementation for printing report cards. Ms. Smith asked if the Board could be provided with a report on Genesis in a future meeting or through the Board Memo, and also look at the Board and District’s future strategic goals. Ms. Wilson wished everyone a happy fall break. Ms. Arthur thanked Mr. Hegarty and his staff for preparing the report. Mr. Samaniego expressed concerns about the allegations of improper and unethical behavior of public officials linked with the Valley Schools Trust. He stated the District should take a very close look at its operations to ensure we are ‘clean’ in that area. He suggested that an outside company audit the District’s financial records to review operations and ensure no Board members are receiving compensation or gifts. ADJOURNMENT Ms. Smith moved to adjourn the meeting and Ms. Arthur seconded the motion. Upon call to a vote, the motion carried and the meeting adjourned at 6:16 p.m. Submitted by: Elizabeth Powell, Executive Assistant Approved By: Sara Smith, Clerk of the Board Date: November 18, 2010