Call to Order. There were approximately 30 people in the audience.

Transcription

1 STUDY SESSION / REGULAR BOARD MEETING Peoria Unified School District No. 11 District Administration Center 6330 W. Thunderbird Road, Glendale, AZ January 26, 2012 Mr. Hal Borhauer, Board President, called the Study Session and Regular Board Meeting to order at 6:04 p.m. in the District Administration Center Board Room. Other Board members present were Mr. Joseph McCord, Board Clerk, Mrs. Kathy Knecht, Mrs. Diane Douglas, and Mr. Eddie Smith. Also present were Dr. Denton Santarelli, Superintendent; Dr. Heather Cruz, Deputy Superintendent, Mr. Michael Finn, Chief Financial Officer; and Mrs. Dana McCarty, Secretary. Call to Order There were approximately 30 people in the audience. Dr. Santarelli stated that the purpose of the Study Session was to continue discussion and gather Board feedback regarding proposed changes to healthcare benefits for current employees, current retirees and future retirees. Study Session The discussion was led by Mr. Finn. The first recommendation presented was to move existing and future retirees to the Arizona State Retirement System s (ASRS) healthcare plan, which is United Healthcare (UHC). This will not be a change of providers for retirees as they are currently on PUSD s UHC plan. There are some minor differences in the two plans and a comparison was presented. The approximate monthly cost of retiree coverage is currently $767, which was compared to the cost of coverage through the ASRS plan at $641 per month. Mr. Finn recommended implementation of this change beginning July 1, Mr. McCord expressed his support of the recommendation. Mr. Borhauer suggested capping the amount the District would commit to pay at $641 and, if that cost rises, retirees could work as a substitute to cover the additional cost of the premium. Mrs. Douglas agreed with Mr. Borhauer that the Board should look into other options that cap the commitment amount. She did not advocate for a change in 2012, but stated that the concept was worthy of consideration as the District moves forward. There was discussion regarding current policy that allows for annual review and adjustments to healthcare benefits if they are deemed necessary. Dr. Santarelli reminded the Board that, per their previous direction, letters were sent to retirees which stated that under this scenario, the District would continue to cover the entire premium cost for existing retirees. He urged the Board to take this into consideration and advised that administration would want to obtain a legal opinion before bringing back additional options that require existing retirees to pay part of their premiums. Administration agreed to provide the Board with information from comparable school districts related to what, if any, healthcare benefits they offer their retirees. Mr. Finn presented four options for design changes to healthcare contributions for future retirees. Those options are summarized as follows: Purple Option Modification of existing policy to include only those hired prior to June 30, 2004 with no changes to the contribution rate. Estimated cost through 2048 is $71 million. Blue Option Modification of existing policy to a multi-year phase-out with declining contributions each passing year for those individuals retiring after June 30, 2013 with 25 or more years of service. Estimated cost through 2028 is $8.3 million. Red Option Modification of existing policy to provide those individuals with at least 10 years of service as of June 30, 2013 with a variable contribution to healthcare benefits depending on years of service. Estimated cost through 2047 is $40.6 million.

2 Minutes Page 2 of 6 1/26/12 Green Option Modification of existing policy to provide those individuals with at least 15 years of service as of June 30, 2013 with a variable contribution to healthcare benefits depending on years of service. Estimated cost through 2041 is $21.4 million. Projected cash flows and variances of the four options were reviewed, and there was one request to speak: Mr. David Snyder, a District parent and representative of the Peoria Principals Association (PPA), urged the Board to consider equity and fairness to long-term, loyal employees when making reductions and funding raises. Mr. Snyder acknowledged the difficult job Dr. Santarelli and Mr. Finn are taxed with. Dr. Santarelli said the Green Option would be the recommendation of administration at this time. The changes necessitate policy revisions which require two separate readings. Direction from the Board is necessary for staff to begin working on policy language. Mr. McCord felt that the Red and Green Options were best. Mr. Borhauer supported the Green Option, but also wanted to see a proposal in which current retirees share in the cost. Mrs. Douglas was interested in a compromise between Green and Blue, but was also supportive of Mr. Borhauer s request for a proposal in which current retirees share in the cost. Mr. Smith said he would like the chance to hear from employees. Mrs. Knecht was interested in more information on the Green Option, but also wanted to hear from employees. Administration will provide more information on the Green Option with some variations, and an option for retirees to share in the cost. Policy language will be drafted, and administration will seek to provide an opportunity for the Board to hear from employees. Dr. Santarelli cautioned that while administration will do their best to provide a reasonable timeline, they will be taxed to complete all healthcare related work prior to June 30, given the new direction. Proposed adjustments to employee healthcare benefits were presented. Currently, the PUSD Employee Benefit Trust is negative $3.2 million. Administration proposes the establishment of the Consumer Driven Health Plan (CDHP), formerly known as the High Deductible Health Plan (HDHP), as the standard plan for employees. The Choice Plus Plan, formerly referred to as the traditional plan, would be offered as a buy-up option. The buy-up cost for the Choice Plus Plan and contributions to the CDHP Health Savings Accounts could be adjusted annually to compensate for changes in health care costs. Mr. Finn recommended an implementation date of July 1, Other considerations include the implementation of a three-tiered premium system. Currently the District has a two-tiered system, which is employee only, and employee plus all dependents. The three-tiered system would be employee only, employee plus one, and employee plus more than one. Also under consideration is an offset to the buy-up cost for the Choice Plus Plan for individuals participating in a District wellness program. The Board directed the administration to move forward with the establishment of the CDHP. The Board took a brief recess at 7:30 p.m. to allow the room to be rearranged into regular meeting format. The Board returned and the Regular Board Meeting commenced at 7:44 p.m. Mr. Borhauer called for a moment of silence and then led those present in the pledge of allegiance. Mrs. Danielle Airey, Director of Communications and Public Relations, and Dr. Santarelli presented Mr. Borhauer with a gavel in recognition of his service as Board President during Recess Regular Board Meeting Opening Exercises Board and Staff Recognitions The following acknowledgements were also made by the Board and Dr. Santarelli:

3 Minutes Page 3 of 6 1/26/12 Mid-Year Goal Reviews with the schools January 25, 2012 Parent Organization Presidents Dinner at Sundance Elementary School Centennial High School for hosting a wrestling tournament in memory of fallen Glendale Police Officer Brad Jones; Freshman wrestler from Chandler who, on receiving his medal, placed it on the neck of Officer Jones three-year-old son PUSD students Sommer Berry and Morgan Moore for scoring in the top 3% of more than 160,000 African Americans who took the 2010 PSAT test Sundance Elementary School s Cheresa Leonard for being named KNIX/Fulton Homes Teacher of the Week Glendale City Council Member Yvonne Knaack for delivering flyers which detail safe routes to school to Copperwood, Heritage, Marshall Ranch and Desert Palms Elementary Schools, and for serving as honorary crossing guard at Sahuaro Ranch Elementary School High school guidance staff who visited the elementary schools to provide scheduling assistance and encouragement to next year s freshman students, and Cactus High School for an informative Future Freshman Night The Public Comment agenda item allows individuals the opportunity to address the Governing Board on any issue within the jurisdiction of the Board. Comments are limited to three minutes per person. There was one request to speak: Mr. Blake Hess, a District parent, addressed the Board regarding the lack of history courses being offered to freshman students at Ironwood High School. Public Comment Mr. Borhauer asked the administration to look into Mr. Hess concern to see if it is unique to Ironwood or District-wide. Mr. Finn shared information gleaned in a webinar presenting the Governor s proposed budget for next fiscal year. During the webinar it was stated that the cuts school districts have experienced should be considered permanent and that school districts should not assume funding will be automatically reinstated. Legislative Report The budget included $100 million for the School Facilities Board (SFB), but with changes to the funding formulas for school renewal and new construction. Also mentioned was onetime monies for capital needs, which have undergone a 100% reduction. The monies come with complicated roll-over and repayment options. If the SFB proposals go through, a Study Session will be needed to discuss the intricate details. There will likely be some surplus monies in the budget, but they will be needed to offset the loss of funding associated with the 1-cent sales tax. Dr. Santarelli recently learned that some of the individuals involved in the collaborative development of an initiative to replace the 1- cent sales tax may have broken away from the core group to develop a competing measure. The competing group gave a presentation earlier in the day to AZ Ready, formerly known as the Governor s P-20 Council. Some of the individuals associated with the new proposal are Rebecca Gau, Paul Bentz, Lisa Graham-Keegan, Jaime Molera and Craig Barrett. Mrs. Douglas requested an update or discussion related to the alternative diploma. Her request was supported by Mr. Borhauer. Mr. Borhauer asked to revisit policy pertaining to the naming of school facilities. This request was supported by Mr. Smith. Also requested by Mr. Borhauer, and supported by Mr. Smith, was discussion and consideration of moving the March 22 meeting to March 29 due to spring break. It was moved by Mr. McCord to approve the items on the consent agenda with the exception of the Minutes of the Special Board Meeting held on January 4, 2012, the Regular Board Meeting held on January 12, 2012, and the Travel Requests. The motion was seconded by Mr. Smith, and carried unanimously. The following items were approved: Requests for Future Agenda Items, Written Reports, Info Consent Agenda Approved

4 Minutes Page 4 of 6 1/26/12 The Human Resource Report containing the hiring of new employees, requests for leave of absence, resignations, retirements and terminations. Human Resource Report The Donations Report containing donations in support of the District from students, parents, staff and community members. The Intergovernmental Agreement (IGA) with the Department of the Air Force for the AFJROTC Program at Peoria High School (PHS) and authorization for District administration to execute the document on behalf of the Governing Board. This agreement shall remain in effect until terminated by one of the parties and is subject to review every five years. The Intergovernmental Agreement (IGA) with the Department of the Air Force for the AFJROTC Program at Cactus High School (CHS) and authorization for District administration to execute the document on behalf of the Governing Board. This agreement shall remain in effect until terminated by one of the parties and is subject to review every five years. The Intergovernmental Agreement (IGA) with Maricopa County Integrated Health System for student clinical observation experience. The agreement is effective upon full execution of the contract and is effective until terminated by one of the parties. Mrs. Douglas pulled the Minutes of the Special Board Meeting held on January 4, 2012 and the Regular Board Meeting held on January 12, 2012 in order to request that her comments pertaining to outsourcing be included in the minutes of the January 4 Special Board Meeting. It was then moved by Mrs. Douglas to approve the minutes of the Special Board Meeting held on January 4, 2012 with corrections, and the minutes of the Regular Board Meeting held on January 12, The motion was seconded by Mr. Smith, and carried unanimously. Mrs. Douglas pulled the Travel Requests to make inquiry into a request for six language arts teachers from Centennial High School to attend the Holocaust Forum in Bel Air, California in March. Dr. Cruz and Mrs. Nan Gillispie, Director of K-12 Curriculum and Instruction, responded to Mrs. Douglas questions regarding how the holocaust is tied to language arts and the total number of language arts teachers at Centennial. Donations Report IGA w/ Air Force for the AFJROTC Program at PHS IGA w/ Air Force for the AFJROTC Program at CHS IGA with Maricopa County Integrated Health System for Student Clinical Observation Experience Minutes Travel Requests It was moved by Mr. McCord to approve the travel requests as presented. The motion was seconded by Mrs. Knecht, and carried with four yes votes. Mrs. Douglas was supportive of all the travel requests with the exception of the Centennial request. She voted no because she felt the costs, as well as the number of teachers requesting permission to travel, were excessive. She stated that she would have had an issue with so many teachers going even in the best of economic times, but certainly not in current challenging times. Mrs. Douglas further stated that she would have been more supportive if the teachers were history teachers. The following travel requests were approved: Dr. Denton Santarelli, Superintendent/DAC to attend a meeting of the Western States Benchmarking Consortium and the American Association of School Administrators National Conference on Education in Houston, Texas on February 15-19, Kris Hawkins, Jennifer Johnson, Janesse Perrotte, Gayle Samuels, Krista Calvano and Jenna Ely, teachers at Centennial High School to attend the Holocaust Forum in Bel Air, California on March 10-13, Julie Chan-Wong, teacher at Centennial High School to attend the Fashion Institute and Design Merchandising Educator Day in Los Angeles, California on March 15, 2012.

5 Minutes Page 5 of 6 1/26/12 Peoria High School Design II students and teacher Kathy Aufdemberge to attend an educational field trip in Los Angeles, California on March 16, Sunrise Mountain High School Band, Choir and Orchestra students and teachers Chris Vail, Tanya Boehme and Jacob Boyd to attend an educational field trip in Los Angeles, California on March 28-April 1, The following informational reports were included in the meeting packet: Budget, Facilities Planning and Construction Report District Enrollment Report for the Month of December 2011, showing a total of 36,425 students Report on Upcoming Meetings and Events Draft of Agenda for February 9, 2012 Regular Board Meeting Mr. Finn responded to questions on the Budget, Facilities Planning and Construction Report related to the fire in the auto technology shop at Cactus High School. Excessive smoke damage was reported in the auto bay, and the car that burned was a complete loss. The bay will be shut down for 1-2 months while repairs are being made. The auto technology classroom was not damaged. Informational Reports Mr. Finn also responded to questions related to the Peoria High School Performing Arts Center HVAC project. The plan is to tap into the school s central unit. Administration will be looking for additional bidders through CM At Risk because the first bid was not acceptable. Dr. Cruz responded to questions regarding the loss of 188 students reflected on the Enrollment Report for the month of December Administration will conduct an analysis and provide the Board with additional information. The list of Upcoming Meeting and Events included in the packet is listed below: January 27, :00 a.m. District Spelling Bee, District Administration Center Board Room January 30, :00 p.m. PUSD Community Legislative Network, District Administration Center Board Room January 31, :30 a.m. Arizona School Boards Association Board Operations and Leadership Training (BOLTS) Workshop, Black Canyon Conference Center February 8, :00 p.m. Special Board Meeting/Study Session on Findings of the AdvancED Quality Assurance Review, District Administration Center Board Room February 9, :00 p.m. Regular Board Meeting, District Administration Center Board Room February 14, :00 p.m. Peoria Educational Enrichment Foundation Board Meeting, District Administration Center West Conference Room February 15, :00 p.m. District Technology Committee, District Administration Center Training Room 1 February 16-17, 2012 Elementary Parent/Teacher Conferences February 20, 2012 Presidents Day Holiday (All schools and District offices closed) February 23, :00 p.m. Regular Board Meeting, District Administration Center Board Room The draft agenda for the February 9, 2012 Regular Board Meeting was briefly discussed. Mr. Borhauer called attention to the 4:30 p.m. start time which is due to a planned Executive Session. The start time for the open session remains 6:00 p.m. Mrs. Douglas asked that future agendas, beginning with February 9, separate Board recognitions from staff recognitions, which will give the Board a place to make notes in Electronic School Board, the District s paperless meeting system. Readdressing Requests for Agenda Items, Written Reports and Information, Mr. McCord asked for a report on the performance of the solar programs at Sundance and Ira A. Murphy Elementary Schools. Readdressing the District Enrollment Report for the Month of December 2011, Mrs. Douglas asked for a report on the December enrollment drop. Further Discussion of Agenda Items

6 Minutes Page 6 of 6 1/26/12 It was moved by Mr. McCord, seconded by Mr. Smith, to adjourn the meeting. The motion Adjournment carried unanimously and the meeting was adjourned at 8:34 p.m. Clerk