Board of Education Official Meeting Minutes

UTICA COMMUNITY SCHOOLS
BOARD OF EDUCATION MINUTES
Joan C. Sergent
Instructional Resource Center
14201 Canal Road
Sterling Heights, MI 48313

UTICA COMMUNITY SCHOOLS
BOARD OF EDUCATION MINUTES
Joan C. Sergent Instructional Resource Center
14201 Canal Road
Sterling Heights, MI  48313
June 22, 2015
7:00 p.m.

 

Attending:  C. Klenow, G. Klida, M. Templeton, K. Krolczyk, J. Prybys, M. Thomas

Absent:        R. Ross

1-2.      Meeting Called to Order
Dr. Carol Klenow, Board President, called the meeting to order at 7:00 p.m. followed by The Pledge of Allegiance.

Deletion of Agenda Items
Dr. Klenow informed Board of Education members that she made a decision to remove items 9E (Advance Path Academics Partnership Resolution) and 11C2 (AdvancePath Educational Pilot and Technology Agreement) from the agenda.  She said that the Board is in the process of working on some very difficult financial issues.  She also said that a focal point of a board’s work is to assure the fiscal integrity of the district.  She referenced a special meeting of the Board of Education (study session) at which budget projections and proposals were presented and discussed.  After that meeting, two UCS labor groups approached the administration regarding the recommendation (agenda items 9E and 11C2) as part of cost savings that included a change to the alternative education program.  Individuals from the labor groups had different ideas that perhaps may help solve the budget problem and still achieve the savings that were earmarked for the Alternative Education program.  The initial recommendation was to have the Board act tonight. However, she believes it is prudent to allow the discussion to continue to see if another possibility exists that is viable and meets the Board’s budget reduction goal.  She established a deadline of August 10 for a final recommendation to be presented to the Board of Education.

There were no objections.

3.         Minutes
Motion by Klida, support by Prybys, that the minutes be approved as presented.

Motion carried unanimously.

4A.      Recognition – Macomb Daily Regional Spelling Bee Winner
Robert Monroe, Assistant Superintendent for Teaching and Learning, stated that Nate Britton, an eighth grader at Shelby Junior High School, captured his third Macomb Daily Spelling Bee title in four years.  Nate and his family traveled to Washington D. C. for the third time to compete in the Scripps National Spelling Bee this past May. More than 70 years ago his grandfather won the Detroit Spelling Bee and competed in the national tournament.

Michigan had 11 contestants at the Scripps National Spelling Bee and Nate was one of two students to advance to the semifinal.  He made it farther than any prior winner of the Macomb Daily Spelling Bee, which has staged the event since the year 2000.  For making the semifinal, Nate won a $500 gift card.  All the spellers received a Microsoft Surface 3 tablet.

Board of Education members commented on the Nate’s achievement and congratulated him.

4B.      Recognition – Math Olympiad
Mr. Monroe stated the seventh annual Utica Community Schools Math Tournament was held at Utica High School in March.  This tournament was open to students in fourth, fifth, and sixth grade.  There were 259 students who participated in this year’s tournament. There were 54 teams representing 22 elementary schools.  Awards were presented for each of the following events:  Team, Individual, Quiz Bowl, and Overall Tournament Champions.  Students were introduced individually from Beck Team A, Duncan Team A, Ebeling Team B, Messmore Team B, Morgan Team A, Shuchard Team C and Wiley Team A.

Mr. Monroe further stated that many UCS students also participate in the National Math Olympiad Competition. There are the five monthly online contests given from November to March.  These contests provide an incentive for students to intensify their study of math. Each year, about 100,000 students from over 5,000 teams worldwide participate in the Olympiads. All 50 states, as well as many other countries around the world are represented.  Students who place in the top ten percent nationally receive a silver pin and those who place in the top two percent receive a gold pin. There were seven silver pins and one gold pin earned at Beck, four silver pins earned at Crissman, a silver pin earned at Havel and two silver pins and two gold pins earned at Messmore. 

Mr. Monroe thanked all the coaches and principals at these schools for promoting the love and learning of math.  Board of Education members commented on the students’ achievement and congratulated each of them.

4C.      Recognition – DECA, Skills USA and HOSA
Mr. Monroe stated that Michigan DECA is an association of students who are planning careers in marketing, management and entrepreneurship. Michigan DECA has more than 7,300 members in four divisions: high school, collegiate, professional and alumni.  There are more than 165 high schools and area career centers have DECA chapters.

Students from all four high schools, who excelled at the Michigan DECA state conference in March and reached the international level competition, were recognized.  These students were national qualifiers representing Utica Community Schools at the DECA International Conference held in Orlando, Florida at the end of April.

The Chieftain Connection at Utica, Ford Dealers at Henry Ford II and the Titan Shop at Stevenson High School all earned certification and re-certification status for their school-based enterprise stores.  They presented to two sets of DECA judges before a final presentation to business leaders from Otis Spunkmeyer, a national cookie dough manufacturer.

Next, the SkillsUSA state winners and national qualifiers were recognized.  SkillsUSA is a national organization with over 335,000 members from 54 states and territorial associations. Michigan has 101 chapters and over 4,648 members. The purpose of SkillsUSA is to prepare high performance workers and it does so by providing quality educational experiences for students in leadership, teamwork, citizenship and character development.

This year Utica Community Schools had several students who were highly successful, earning many medals at regional events.  Students from Stevenson who earned first place and students from Utica Center for Science and Industry who earned third place at the state competition held in Grand Rapids in April were recognized. Those who finished first in their event, along with their advisors, competed at the National Competition in Louisville, KY.

Finally, students from Health Occupations Students of America (HOSA) were recognized.  This is a national student organization of 120,000 members from 47 states.  HOSA has over 3,200 secondary and post-secondary chapters, 76 of which are in Michigan.  HOSA's two-fold mission is to promote career opportunities in the health care industry and to enhance the delivery of quality health care to all people.

Utica Community Schools had 94 students from the Medical Health Science Careers, Medical Dental Assisting and Nursing Assisting classes at all four high schools attend the state competition in Traverse City in April. HOSA students from Henry Ford II, Stevenson and Utica high schools who finished in the top three in their event qualified to compete at the National Competition in Anaheim, California and were recognized.

Mr. Monroe congratulated students from DECA, SkillsUSA and HOSA and their principals, teachers and advisors. Board of Education members commented on the students’ achievement and congratulated each of them.

5.         Superintendent’s Report
No report was presented.

6.         Community Correspondence
Community correspondence from Eliza Parkinson, Robert Wathen, Wendy Pate and Susan Florek was acknowledged.

7.         Public Communication
The following expressed concern about the 2015-2016 proposed budget:

Julie Dombrowski

Vevean Bachi

Alonzo Williams

Danielle Petrucella

Surilkumar Patel

Steve Conn

Anita Petrucella

Allison Stefanski

Christian Adkins

Dominic Shamoon

John Duffy

Elizabeth Williams

Jennifer Kotas

Markeith Jones

 

Austin Kotas

Nicole Conaway

 

 

8A1.      Policy 3135 – Tax Anticipation Notes – Second Reading
Utica Community Schools revised Policy 3135 – Tax Anticipation Notes in preparation for cash flow borrowing.

Motion by Templeton, support by Prybys, that the Board of Education approve Policy 3135 – Tax Anticipation Notes as presented.

Motion carried unanimously.

8A2.      Policy 3136 – State Aid Anticipation Notes – Second Reading
Utica Community Schools prepared Policy 3136 – State Aid Anticipation Notes in preparation for cash flow borrowing.

Motion by Klida, support by Prybys, that the Board of Education approve Policy 3136 – State Aid Anticipation Notes as presented.

Motion carried unanimously.

8A3.      Policy 3150 – Payment of Bills – Second Reading
Utica Community Schools revised Policy 3150 – Payment of Bills.

Motion by Templeton, support by Thomas, that the Board of Education approve Policy 3150 – Payment of Bills as presented.

Motion carried unanimously.

8B.      Change in Regular Board of Education Meeting Schedule
It was recommended that the July 13, 2015 and July 27, 2015 Board of Education meetings be canceled due to the fact that the Board of Education organizational meeting is now held in January, as opposed to July, because of legislative changes. Also, capital projects and spending were reduced and purchases for summer work were previously approved.  The change to the regular meeting schedule will be posted in accordance with the Open Meetings Act.

Motion by Klida, support by Thomas, that the Board of Education cancel the Monday, July 13, 2015 and Monday, July 27, 2015 regularly scheduled meetings.

Motion carried unanimously.

9A.      Resolutions – 2014-2015 budget Adjustment II
Budget Adjustment II was developed by the Business Department and reviewed in detail by the Finance Subcommittee of the Board of Education.  The adjustments are the administration’s estimate of anticipated revenue and expenditures for 2014-2015.

Motion by Klida, support by Prybys, that the Board of Education approve the Budget Adjustment II Resolution for 2014-2015 for the General, Special Revenue, Debt Service, and Capital Projects Funds as submitted to take effect on June 22, 2015. Mrs. Templeton called the roll.

Ayes:  Klida, Prybys, Krolczyk, Thomas, Klenow, Templeton

Motion carried unanimously.

9B.      Resolutions – 2015-2016 Budget Adoption
Superintendent Dr. Christine M. Johns made comments to provide context for this recommendation.  She stated that the budget is the document that translates the services and learning opportunities we provide to 28,100 students.  The budget proposal is focused on maintaining core instructional programs and services for students in the midst of a serious financial outlook for the district.

Through this process, Board of Education members have expressed concerns about how Utica Community Schools is positioned for the next two fiscal years, given the continued structural deficit facing the district. Deepening these concerns is the fact that next year’s budget is partially funded by one-time revenue sources such as a land sale, operating fund transfers from the continuing education program and the use of $16.6 million from fund equity.

The budget process begins early in the school year as both long-term and short-term fiscal projections are developed. These projections are refined and matched to our existing programs, staffing and curriculum.  Further refinement occurs as the State of Michigan finalizes its school aid package.  Utica Community Schools receives 82 percent of its revenue from the State of Michigan.
There are a number of variables that impact the budget, such as student enrollment, the state aid package, including per pupil funding, and the salaries and benefits of employees.

In terms of enrollment, the district continues to experience declines as a result of falling birth rates in Macomb County.  This year, UCS graduated 2,200 seniors and is projected to enroll approximately 1700 kindergarten students.  Some of this difference is offset by cohort growth, or the number of students normally gained between grades and Schools of Choice enrollees. However, the projection anticipates an overall reduction of 200 students for the new school year. 

As the budget presentation will demonstrate, Utica Community Schools has approximately 1,300 fewer students than ten years ago. This represents a $10 million loss in annual funding.  It should be noted that the total in-district enrollment is down 3,000 students over that same period, which is a ten percent drop in enrollment and represents $21.4 million. The loss was mitigated through our Schools of Choice efforts.  Without the additional 1,500 students who enrolled through this program in the last ten years, annual funding loss would be an additional $11.4 million.  Even with participation in Schools of Choice, the birth rate decline will result in continued student enrollment loss.

In response to this student loss, reductions in staffing levels are needed. Nearly 90 percent of the total budget is comprised of salaries, benefits and retirement costs.  The reductions that are necessary to reflect current enrollment levels will impact valued staff members. 

The loss of student enrollment further impacts UCS by creating a greater gap between expenditures and revenues. The plan presented is a balanced budget.  However, the issue that remains to be addressed is that expenditures continue to outpace revenues.

As in the past, the budget is balanced through a strategy of efficiencies, cost containment, reductions and the use of fund equity.  Over a ten-year period, costs have been reduced by more than $83 million.  Fund equity may not be used in the future as a strategy to meet the state legal requirements of a balanced budget.  The reduced fund equity that is part of this year’s budget also means that the district will be borrowing State Aid Anticipation Notes to meet its obligations. Cash flow borrowing is a strategy that has been used by the district five times in its history during periods of enrollment decreases and flat state aid adjustments.

Today, the issues are enrollment loss and the State of Michigan redirecting money in the school aid fund toward community colleges, universities and its own general fund, as well as legacy costs, such as retirement.  Historically, the district was able to move back to a position where expenditures and revenues were balanced. It was not without very difficult decisions. The district is now in the same position.  Expenditures are $16.6 million more than revenue.  This structural deficit is projected to substantially increase next year unless enrollment grows, new funding is secured or major reductions are made.

The budget proposal maintains current programming and services. Dr. Johns advised the Board that the fiscal outlook for the 2016-2017 budget is not very bright. She introduced Stephanie Eagen, Assistant Superintendent of Business Services, to present the detailed budget.

Ms. Eagen presented the Budget Adoption Resolution for the 2015-2016 fiscal year and the associated millage levy for approval by the Board of Education.  The detailed budget can be found at www.uticak12.org under the District Info tab.

Motion by Klida, support by Prybys, that the Board of Education adopt the 2015-2016 Budget Resolution for the General, Special Revenue, Debt Service, and Capital Projects Funds along with the levy of 17.9082 mills to support operations and 3.85 mills for debt services as submitted to take effect on July 1, 2015. Mrs. Templeton called the roll.

Yeas:  Klida, Prybys, Krolczyk, Thomas, Klenow, Templeton

Motion carried unanimously.

9C.      Resolutions – Authorizing Issuance of Notes in Anticipation of State School Aid
The Resolution Authorizing Issuance of Notes in Anticipation of State School Aid was submitted for approval by the Board of Education.  This resolution authorizes the issuance of notes up to $12,000,000 to fund school operations.  These funds are necessary as a cash flow shortfall is expected during the 2015-2016 fiscal year.  The cash flow calculation was reviewed and the resolution was prepared by bond counsel, Miller, Canfield, Paddock & Stone, PLC.  The closing for this transaction will occur August 20, 2015.  This resolution has been reviewed with the Finance Subcommittee of the Board of Education.

Motion by Krolczyk, support by Thomas, that the Board of Education approve the Authorizing Issuance of Notes in Anticipation of State School Aid Resolution for the 2015-2016 year.  Mrs. Templeton called the roll.

Yeas:  Krolczyk, Thomas, Prybys, Klida, Klenow, Templeton

Motion carried unanimously.

9D.      Resolutions – Summer Collection of Taxes
The Summer Collection of Taxes Resolution for the 2016-2017 fiscal year was submitted for approval by the Board of Education.  This resolution imposes a summer tax levy to collect one-half of school property taxes, including debt services, upon property located within the school district and requests each city and/or township in which the district is located to collect such taxes.  This resolution must be filed with the city and/or township by January 1, 2016 for the 2016 tax levy.

Motion by Klida, support by Thomas, that the Board of Education approve the Summer Collection of Taxes Resolution for the 2016-2017 fiscal year.  Mrs. Templeton called the roll.

Yeas: Klida, Thomas, Krolczyk, Prybys, Klenow, Templeton

Motion carried unanimously.

9E.      Resolutions – Advance Path Academics Partnership
This item was removed from the agenda.

9F.       Resolutions – Michigan High School Athletic Association (MHSAA)
School districts throughout Michigan have worked with the MHSAA to establish a common set of rules for the orderly administration of an interscholastic athletic program which promotes academic integrity and competitive equity.  Any school district considering participation in MHSAA tournaments and to benefit from MHSAA services must schedule on its board of education agenda the adoption of the Membership Resolution.

The Membership Resolution requires the listed schools in the district to follow standardized rules and obligates the administration and board of education to enforce those rules.  As part of the responsibility for the supervision and control of interscholastic activities, each school district must establish a code of good sportsmanship for its athletes, coaches and spectators, an educational program to promote good sportsmanship, and a system of progressive discipline for failure to behave according to the code of good sportsmanship.

Motion by Prybys, support by Klida, that the Board of Education adopt the Michigan High School Athletic Association Membership Resolution for the year, August 1, 2015 through July 31, 2016 as presented.  Mrs. Templeton called the roll.

Yeas:  Prybys, Klida, Krolczyk, Thomas, Klenow, Templeton

Motion carried unanimously.

10A.     Changes in Certified Personnel
Changes in certified personnel since the Board of Education meeting on June 8, 2015 were presented for approval.

Motion by Templeton, support by Klida, that the Board of Education approve the changes in certified personnel as presented.

Motion carried unanimously.

10B.     Changes in Certified Personnel-Layoffs
Changes in certified personnel, including layoffs, since the Board of Education meeting on June 8, 2015 were presented for approval.

Motion by Klida, support by Templeton, that the Board of Education approve the changes in certified personnel as presented.

Motion carried 5:1 with Mr. Krolczyk opposed.

11A.     Financial Report – Part II
Jill Tomyn, Executive Director of Business and Finance, reviewed the Financial Report Part II as of May 31, 2015 including reports on the financial status of the following funds:

                        Capital Projects                                   Food Service
Trust and Agency                    Internal Service
Enrichment

Inquiries concerning these reports may be directed to Ms. Eagen or Ms. Tomyn.

The Board of Education accepted the report as presented.

11B.       Schedule of Bills Report
Ms. Tomyn presented the schedule of bills for the General Fund and Capital Projects Fund.  Prior to the Board of Education meeting, all pertinent information necessary to process payment of the bills was reviewed by Dr. Robert A. Ross, Treasurer of the Board of Education.  Inquiries concerning the schedule of bills may be directed to Ms. Eagen or Ms. Jill Tomyn.

General Fund:
GENERAL FUND (06/10/15) ................................................ $453,963.50
GENERAL FUND (06/17/15) ............................................. $1,061,907.12 
General Fund Total                                                       $1,515,870.62

BOND 2009:
CAPITAL PROJECTS 2009 – May 2015.................................... $19,514.12
CAPITAL PROJECTS 2014 – May 2015.................................. $100,895.96
Bond 2009 Total                                                                $120,410.08

The Board of Education accepted the report as presented. 

11C1.    Contract Awards – Technology Component and Cart Purchase
The Technology Department recommended the purchase of components to extend the useful life of existing desktop and notebook computers across the district.  The recommendation covers 1,800 notebooks and desktops throughout the secondary schools and 900 media center desktops at the elementary schools.  The recommended upgrades include solid state disks for all 2,700 computers to replace mechanical hard drives, batteries for 800 secondary notebook computers, and RAM memory upgrades for the elementary media center computers.

Laptop carts were recommended for the secondary notebook computers that are being purchased this summer. This cart model has been purchased previously by the district and has performed well.
Pricing was obtained via REMC and The Cooperative Purchasing Network (TCPN).

This purchase has been reviewed by the Capital Projects Subcommittee of the Board of Education. Funding is through 22i Technology Readiness Grant funds.

Motion by Krolczyk, support by Prybys, that the Board of Education approve the purchase of components and carts as presented for a total of $273,637.00

Motion carried unanimously.

11C2.   Contract Awards – AdvancePath Educational Pilot and Technology Agreement
This item was removed from the agenda.

11D1.   Authorization for Investment of School District Funds
The Utica Community Schools investment officer is authorized annually to invest school district funds and make fund and wire transfers for investments.  For the 2015-2016 year, the Assistant Superintendent for Business Services was recommended as the investment officer appointment.

Motion by Klida, support by Templeton, that the Assistant Superintendent for Business Services be appointed as the investment officer for the 2015-2016 year.

Motion carried unanimously.

11D2.   Set Bonds for Various Officials
It is recommended on an annual basis that the Board President, Board Treasurer, Superintendent, Assistant Superintendent for Business Services, the Executive Director of Business and Finance, and the Controller are each bonded in the amount of $1,000,000.

Motion by Templeton, support by Krolczyk, that the Board of Education authorize the bonding of the Board President, Board Treasurer, Superintendent, Assistant Superintendent for Business Services, the Executive Director of Business and Finance, and the Controller in the amount of $1,000,000 for the 2015-2016 year.

Motion carried unanimously.

11D3.   Authorization of Banks for Deposit
Annual authorization occurs for banks as depositories for Utica Community Schools.  The following are 2015-2016 banks recommended for authorization of deposits for Utica Community Schools:

Bank of America
Citizens Bank
Comerica Bank
Credit Union One
Fifth Third Bank
Flagstar Bank
Huntington National Bank
J.P. Morgan Chase & Co.
Michigan Schools and Government Credit Union
PFM Asset Management/Michigan School District Liquid Asset Fund

Motion by Klida, support by Templeton, that the Board of Education authorize the recommended banks as depositories for the funds of Utica Community Schools for 2015-2016, as presented.

Motion carried unanimously.

11D4.   Authorization of Firms for Purchase of Commercial Paper Investments
Annual authorization occurs for firms for the purchase of commercial paper investments.  The following firms were recommended for authorization for the purchase of commercial paper in 2015-2016:

Bank of America
CitiGroup Global Markets, Inc.
Comerica Bank
J.P. Morgan Chase Securities, Inc.
Merrill Lynch
PFM Asset Management/Michigan School District Liquid Asset Fund

Motion by Templeton, support by Prybys, that the Board of Education authorize the recommended firms for the purchase of commercial paper investments for 2015-2016 as presented.

Motion carried unanimously.

11D5.   Authorization of Legal Counsel
Annual authorization occurs for firms for the provision of legal counsel and services.  The following firms were recommended for authorization for legal counsel and services in 2015-2106:

Butzel Long
Clark Hill, P.L.C.
Cummings, McClorey, Davis & Acho, P.L.C.
Dickinson, Wright, P.L.C.
Keller Thoma
LaPointe & Associates, P.C.
Lusk & Albertson, P.C.
Miller, Canfield, Paddock and Stone
O’Reilly Rancilo, P.C.
Plunkett Cooney
Thrun Law Firm, P.C.
Secrest, Wardle, Lynch, Hampton, Truex & Morley

Motion by Krolczyk, support by Thomas, that the Board of Education authorize the recommended firms to provide legal counsel and services for Utica Community Schools for 2015-2016, as presented.

Motion carried unanimously.

11D6.   Authorization of Auditing Firm
Annual authorization occurs for a firm to perform the audit.  The firm recommended for the Utica Community Schools 2015-2016 audit was Plante & Moran, PLLC.

Motion by Klida, support by Prybys, that the Board of Education authorize the recommended auditing firm, Plante & Moran, PLLC to perform the 2015-2016 Utica Community Schools audit.

Motion carried unanimously.

11E1.    Change Orders – Technology Infrastructure
Technology Change Order #6 from the 2009 Bond Issue was presented for approval. Recommended changes to current outstanding technology infrastructure contracts were reflected. The changes were reviewed in detail with the Capital Projects Subcommittee of the Board of Education.
Motion by Templeton, support by Thomas, that the Board of Education approve 2009 Bond Issue Technology Change Order #6 as submitted.

Motion carried unanimously.

11E2.   Change Orders – Ring Road Paving, Flooring and Asbestos Abatement
Construction Change Order #38 from the 2009 Bond Issue was presented for approval.  Recommended changes to the current outstanding construction contracts were reflected.  The changes have been reviewed by the Capital Projects Subcommittee of the Board of Education.

Motion by Krolczyk, support by Thomas, that the Board of Education approve 2009 Bond Issue Construction Change Order #38 as submitted.

Motion carried unanimously.

12.        Board Items
There were no board items presented.

13.        Adjournment
Motion by Klida, support by Thomas, to adjourn at 9:23 p.m.

Motion carried unanimously.

 

Respectfully submitted,

 

Mrs. Michele Templeton, Secretary
Utica Community Schools
Board of Education

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