December 6, 2017 CUSD Board of Trustees Meeting: INFORMATION/DISCUSSION/ACTION

AGENDA ITEM #1  REORGANIZATION OF BOARD – ELECTION OF PRESIDENT

Board Agenda: No Documentation

Board Audio at 9:38

The 2018-19 Officers are:

President Trustee McNicholas

Vice President Trustee Jones

Clerk Trustee Holloway

Motion passes 5-1-1 (Trustee Jones absent) (Trustee Hanacek votes No)

Superintendent Vital thanked out going Trustee McNicholas for her service in 2017-18. 

at 11:09 No Blue Cards

at 11:18 Nominations for Board President 

Trustee Hanacek nominated Trustee Pritchard

2nd by Trustee Holloway

12:29 Trustee Bullockus makes a substitute motion to retain the current Board Officers:

Trustee McNicholas as President

Trustee Jones as Vice President

Trustee Holloway as Clerk

Consistency and stability is necessary.

2nd by Trustee Reardon

14:40 Trustee Hanacek does not feel that the Board President should be running for election and serving as President at the same time.

16:10 Trustee McNicholas- I can handle both.

16:26 Trustee Pritchard is happy to accept the nomination and would be happy to return to a leadership position.

17:08 Trustee Reardon supports Trustee Bullockus motion. The main issue we have is unity at this district. 

18:50 Superintendent Vital asks for a vote on the substitute motion ignoring the first motion:

The substitute motion passes 5-1-1 (Trustee Jones absent) (Trustee Hanacek votes No)

The 2018-19 Officers are:

Trustee McNicholas as President

Trustee Jones as Vice President

Trustee Holloway as Clerk

AGENDA ITEM #2  REORGANIZATION OF BOARD – ELECTION OF VICE-PRESIDENT 

Board Agenda: No Documentation

Board Audio at 9:38

Trustee Jones was elected Vice President (See Agenda Item #1)

Since the re-election of the entire Board was not on the Agenda the Trustees had to go back and re-elect the Vice- President separately.

Board Audio at 4:19:47

Trustee Bullockus made a motion to elect Trustee Jones as Vice President.

2nd by Trustee Holloway

Trustees did not actually vote on this Motion.

AGENDA ITEM #3  REORGANIZATION OF BOARD – ELECTION OF CLERK 

Board Agenda: No Documentation

Board Audio at 9:38

Trustee Holloway was elected as Clerk (See Agenda Item #1)

Board Audio at 4:20:10

Trustee Bullockus made a motion to elect Trustee Holloway as Clerk

2nd by Trustee Pritchard

Motion Passed 5-0-2 (Trustee Jones and Trustee Reardon were absent)

Trustee Holloway was re- elected as Clerk 

 Board Audio at 20:03

Board Audio at 27:40

Board Audio at 47:11 Superintendent Vital 

Board Audio at 48:20 Trustee Amy Hanacek 

Board Audio at 53:04 Trustee Patricia Holloway

Trustee Holloway is suggesting that CUSD appoint a Trustee to be a liaison with each union. She would like to be that person.

Board Audio at 53:04 Trustee McNicholas

Endorses Delain Easton for Governor on education testing she stated "You don't fatten the hog by weighing it more often"

Delaine Eastin was State Superintendent of Public Education 1995 - 2003. She is currently running for Governor.

 

AGENDA ITEM #4  SELECTION OF TRUSTEE PARTICIPATION ON VARIOUS COMMITTEES

Trustees moved this Item to the end of the Agenda

Board Audio at 4:20:31

Board Agenda at page 1

Nominating Committee of the Orange County Committee on School District Organization

Trustee Reardon

Trustee McNicholas (Alternate)

OCSBA Political Action Group Effort

Trustee McNicholas

Trustee Jones

Instructional Review Committee

Trustee Holloway asked to step down- no one wanted to replace her.

Trustee Holloway

Ad Hoc Committees:

City of Aliso Viejo:

Trustee Pritchard

Trustee McNicholas

City of Dana Point

Trustee Hanacek

Trustee McNicholas

City of Laguna Niguel

Trustee Jones

Trustee McNicholas

City of Mission Viejo

Trustee Bullockus

Trustee Jones

City of Rancho Santa Margarita

Trustee Reardon

Trustee Bullockus

City of San Clemente

Trustee Holloway

Trustee Hanacek

City of San Juan Capistrano

Trustee Jones

Trustee Reardon

Trustee Hanacek

Ladera Ranch Civic Council

Trustee Bullockus

Trustee Holloway

Trustee Hanacek

CUSD Foundation

Trustee Bullockus asked to be a second Trustee on this committee

Trustee McNicholas

Trustee Bullockus

College and Career advantage

Trustee McNicholas

California School Board Association (CSBA)

Trustee Jones asked to step down from this Committee and Trustee Holloway asked to replace her.

Trustee McNicholas

Trustee Holloway

Board Policy Sub-Committee

Trustee Holloway

Trustee McNicholas

Trustee Reardon

Motion to Approve appointments was made by Trustee Bullockus.

Second by Trustee Holloway

Motion passed 5-0-2 (Trustee Reardon and Trustee Jones were absent

 

 

 

 

 

AGENDA ITEM #5  RESOLUTION NO. 1718-30, ROLE OF THE BOARD: POWERS AND RESPONSIBILITIES 

Trustees moved this Item to the end of the Agenda

Board Agenda at page 3

AGENDA ITEM #6  BUDGET UPDATE IN SUPPORT OF THE 2017-2018 FIRST INTERIM REPORT AND ADOPTION OF RESOLUTION NO. 1718-26, 2017-2018 REVENUE AND EXPENDITURE INCREASES/ DECREASES 

Board Agenda at page 4

Board Audio at 56:58 

State Economic Outlook: Continued Revenue Growth.

No increase in Base Funding Grant, but Funding may be increased to 2007-08 levels _ inflation by 2018-19 instead of the projected 2021.

The State's LCFF limits per pupil funding to 2007-08 levels + inflation. CUSD has had flat funding of less than $8,500 per student for the past 10 years while expenses have increased annually.

The only increased revenue in the future is COLA which will not be sufficient to cover increased CalSTRS and CalPERS contributions.

90% of CUSD's budget is employee compensation. CalSTRS and CalPERS contributions will be 11.7% of CUSD budget for a total of 101.7%

Employment contracts are not settled and any increased compensation is not included in this budget.

CUSD is stating that the Budget reflects a Positive Certification... meaning CUSD will be able to meet its financial obligations for the current and subsequent two fiscal years.

CUSD is NOT FAIRLY FUNDED under the new LCFF

Funding Per Pupil:

Laguna Beach $16,836 

Newport- Mesa $11,587

Santa Ana $10,350

Garden Grove $9,658

Orange Unified $8,548

Placentia-Yorba Linda $8,279

Saddleback $8,260

Brea Olinda $8,251

Capistrano $8,087

Irvine $8,045

Los Alamitos $7,955

Plus the State has passed CalSTRS and CalPERS cost down to Districts

Retirement Cost increases will represent 11.7% of CUSD's budget by 2020-21 

Employee Compensation will be over 100% of CUSD's budget with -0- money for anything else 

Board Audio at 1:11:56

BLUE CARD Dawn Urbanek

In Dec 2006 the State commissioned a study to determine the minimum Cost to educate a student in California $8,900.00

By setting the LCFF base funding grant at $6,500.00, The State is INTENTIONALLY Under Funding Wealthy Suburban School Districts.

Since 2007-08 CA has accumulated $77 billion in excess revenue by stealing $2,500 per pupil from wealthy suburban school districts... $1.56 Billion from CUSD alone.

If funding is to be limited to 2007-08 levels + inflation then there is NO MONEY to increase expenses above that level.

CUSD has given 4- consecutive years of across the board compensation increases totaling over $120 million, and to pay for those increases, CUSD has:

Increased Class sizes 

Deferred Maintenance

Cut Staff to student ratios

Cut programs such as Gate and other accelerated programming for high achieving students.

CUSD has $200 million dollars in EMERGENCY repairs and maintenance.

Williams Complaints have been filed.

CUSD does not fund Art - Music or Science, and fails to provide the minimum PE requirement.

If CUSD were to fund all of these from it's current budget rather than fundraising and donations, CUSD would be bankrupt.

CUD should file a NEGATIVE CERTIFICATION.

Contracts with employee groups are not settled and compensation increases are not included in this budget.

See Slide Presentations:

Fundraising for Core Educational Programs

and 

Invidious Discrimination

Board Audio at 1:11:56

Trustee Hanacek- We need to attack PERS and STRS at Sacramento

Board Audio at 1:16:36 

Trustee McNicholas- every cent towards increased PERS and STRS is less money for anything else.

AGENDA ITEM #29  THIRD READING – BOARD POLICY 5142, DRESS AND GROOMING

Board Agenda at page 445

Board Audio at 1:57:15

Motion to adopt CBSA version with some language changes so that tank tops are allowed - strapless is not- to be defined in Administrative Regulations passes 4-1-2 (Against ? inaudible) (Absent Trustee Reardon and Trustee Jones)

The Board is reviewing 2 Versions of this Policy:

The First is CUSD's current Policy with Changes based on Committee Feedback and Board meeting discussions

The second Board policy draft is the California School Board Association version with added language on gender neutrality, safety and inclusion.

BLUE CARDS 

Board Audio at 1:58:39

Michelle Paso Campbell (Parent/Not PTA) -Supports Less Strict Gender Neutral Policy

Board Audio at 2:01:42

Brindley Hawkins (Senior) Supports Stricter Dress Code

Board Audio at 2:04:10

Haley Port (Junior) Supports Stricter Dress Code

Board Audio at 2:05:26

Maddy Kelley (Senior) Supports a Stricter Dress Code

Board Audio at 2:08:18

Karen Walsh (Parent of 2 students) Supports a Less Strict Dress Code.

Board Audio at 2:09:30 

Sabina Green (Junior)  Supports a Less Strict Dress Code.

Board Audio at 2:11:09

Sole' Salimento (Junior) Supports a less strict dress code. 

Board Audio at 2:13:20

Alison Dover (Parent of 2 Girls/ Teacher CalState Fullerton) supports a less strict dress code.

Board Audio at 2:16:34

Vanessa Santos (Parent of 2 Boys) supports a less strict dress code.

Board Audio at 2:19:29

Maddie Dover (Student) Supports a stricter dress code

TRUSTEE COMMENTS

Board Audio at 2:21:20

Max Student Representative on the Board: Raise your hand if your her for Solar? Keep your hands raised if you are also in an AP class? Ah Ha I see you guys... get that extra credit AP Environmental Science.

IT IS INAPPROPRIATE FOR STUDENTS TO RECEIVE EXTRA CREDIT FOR ATTENDING BOARD MEETINGS TO ADVOCATE FOR A SPECIFIC AGENDA ITEM- Solar Power

Supports a uniform dress code across the district. Equitable Code enforcement.

Board Audio at 2:25:21

Trustee Bullockus supports a stricter dress code. Gender Neutral.  Does not support strapless for men or women.

Board Audio at 2:29:59

Trustee Holloway the current code is not specific so enforcement of the dress code is different at each school site. She has received over 50 emails about the dress code. 11 General neutral. 20 want a more modest code. Trustee Holloway supports a uniformly enforced stricter dress code. Tank tops OK - strapless is not

Board Audio at 2:37:04 

Trustee Hanacek we do not have a dress code problem. We have an enforcement problem.

Board Audio at 2:40:05

Explain AR.

Superintendent Vital explains using AR's to implement dress code enforcement. Dr. Susan Holiday gives example.

Board Audio at 2:43:11 

Trustee Nicholas - likes CSBA version as a policy - then have detail enforcement in Administrative Regulations. 

Board Audio at 2:48:00

Motion by Trustee Holloway to adopt CSBA version with an amendment re: language Gangs/school uniforms.

Second by Trustee Hanacek

Vote to adopt CBSA version with some language changes so that tank tops are allowed - strapless is not to be defined in Administrative Regulations. 

Motion passes 4-1-2 (Against ? inaudible) (Absent Trustee Reardon and Trustee Jones)

AGENDA ITEM #30  BIOTECHNOLOGY COLLEGE AND CAREER ACCESS PATHWAYS PARTNERSHIP AGREEMENT WITH SOUTH ORANGE COUNTY COMMUNITY COLLEGE DISTRICT, 2016-2018 

Board Agenda at page 462 

Board Audio at 3:39:00

This Item deals with a MOU between the South Orange County Community College District and CUSD which formed a partnership between Irvine Valley Community College and Dana Hills High School to Pilot a Biotechnology College and Career Pathway.

During mandatory state reporting on College and Career Access Pathways agreements, Irvine Valley College discovered that there had been no mandatory first reading of the College and Career Access Pathways by the District Board prior to approval. Therefore, a cure and correct is requested in the form of a Public Hearing followed by a second reading and re-approval/vote on the current College and Career Access Pathways partnership agreement.

Approval of the Biotechnology College and Career Access Pathways Partnership Agreement will enable DHHS students who take Biotechnology to receive college credit for the course and qualify to apply to receive the Biotechnology Lab Assistant Certificate of Achievement at Irvine Valley College.

This is the second reading and makes receiving College Credit retro-active.

The Item was moved by Trustee Hanacek

Second by Trustee Pritchard

The Item passes 5-0-2 (Trustee Jones and Trustee Reardon absent)

 

AGENDA ITEM #31  BOND MEASURE CONSIDERATION 

Board Agenda at page 474 

Board Audio at 3:39:22

Presentation by Clark- "Facilities Condition Assessment" vs "Master Plan"

Facilities Condition Assessment: Kitchell study establishes what the basic facilities needs are at every school. The study helps with deferred maintenance by giving a time line based on the following:

1 - Currently Critical

2- Potentially Critical

3- Necessary - not yet Critical

4- Recommended

5- Deferred

In addition to these basic facility needs listed above, we looked at California Department of Education Standards and 21st Century Education Facilities Standards. Some schools are over capacity and have 2 X the number of students for which the facility was built. We also looked at replacing portable buildings.

The deferred maintenance (Items #1-5) + bringing facilities up to 21st century learning standards (Item #6) is what CUSD refers to as the "Facilities Master Plan".

Priority 6: New facility needs including systems (HVAC, technology, etc) and new buildings per CDE Standards, replace portables, 21st century learning facilities, etc. theaters and sports facilities.

CUSD has $8.00 per $100,000 of assessed value.

Facility Needs Assessment All Sites by High School Boundary

San Clemente High School Family $70.9 milliom

San Juan Hills High School Family $80.8 million

Dana Hills High School Boundary $59.9 million

Tesoro High School Boundary $53.2 million

Capistrano Valley High School Boundary $59.5 million

Aliso Viejo High School Boundary $57.8 million

Timeframe for new bond measure June 2018 and November 2018

 

Note:

CUSD is trying to claim that aging mechanical systems such as HVAC are not part of deferred maintenance. CUSD has NO mechanical systems on its 5-year deferred maintenance plan. 

Note:

CUSD is setting the stage to have the San Clemente High School Boundary do a Bond to $79 Million dollar bond that would exclude Talega Mello Roos Tax payers (Vista Del Mar ES and MS and include Capistrano Beach. The cost to taxpayers would be $26 per $100,000 of Assessed value. On a Million Dollar home that would be a tax increase of $260.00 per home per year.

Note:

CUSD wants to exclude Talega because the District has over collected millions in taxes and has misused those funds. 

Because CUSD has misused Mello Roos funds, taxpayers no longer Trust CUSD to properly spend bond money which is why Measure M failed.

Note:

If San Clemente taxpayers are going to have to fund facilities through a new bond measure and core curriculum (art- music- science - PE) through fundraising and donations, it may be in San Clemente's best interest to break away from CUSD and form its own school district. San Clemente has opened those conversations up with CUSD and Kristen Vital said those efforts would be vigorously fought.

Board Audio at 3:55:50

BLUE CARD Ron (inaudible)

Chairperson for CUSD Facilities and Finance Advisory Committee. We submitted a report yesterday but was informed that it was to late to include that report in this agenda item.

Board Audio at 3:58:04

BLUE CARD Marilyn Amatto

Facilities and Finance Advisory Committee developed an Ad Hoc Committee to look at why Measure M failed. We have been meeting since November of last year and compiled a 5 page report on how to get a successful bond measure passed.

TRUSTEE COMMENTS 

Board Audio at 4:00:48

Trustee Hanacek was  disappointed that Trustees did not receive the report in time for this Item.

Board Audio at 4:01:48

Superintendent Vital clarified that the information would be presented to Trustees, but it could not be part of the Agenda because it would not meet the Brown Act.

This Item was for information and discussion only. No action was taken.

AGENDA ITEM #32  RESOLUTION NO. 1718-27, RESOLUTION OF THE CAPISTRANO UNIFIED SCHOOL DISTRICT TO AUTHORIZE CONVEYANCE OF AN EASEMENT TO THE SANTA MARGARITA WATER DISTRICT FOR PURPOSES OF PROVIDING NECESSARY WATER SERVICES TO ESENCIA K-8 SCHOOL

AGENDA ITEM #33  UPDATE ON SOLAR ENERGY PROJECTS AND REQUEST FOR PROPOSALS RESULTS

Board Agenda at page 520

Board Audio at 2:51:30

Presentation by Clark Hampton- Open Transparent Process.

Board Audio at 2:52:05

Presentation by Russell Driver regarding selection process.

The District received thirteen proposals in response to the RFP from the following vendors:

  • Baker Electric
  • Borrego Solar
  • Cenergy Power
  • ForeFront Power
  • Namaste Solar
  • NEXTera Energy
  • OpTerra
  • PFMG
  • REC Solar
  • Stronghold Engineering 
  • SunPower
  • Sunworks
  • Tesla

5 Companies were interviewed after an evaluation of all 13. 

REC Solar is recommended contract winner.

Annual Costs and Revenues:

Total Capacity 6,793.74 kW

Capital Cost $17,563,660

Performance Guarantee Cost (10 years) $95,184

Soft Costs $2,963,281

which include:

DSA Plan/Review $224,000

DSA IOR $228,328

Testing/Insp $333,710

Consultants $280,000

Contingency 5% $878,183

Module Trade case contingency ($.15/W) $1,19,061

Grand Total Costs $20,622,124

Savings over 26 years $21,231,863

Notes:

* Energy, rate, savings, and O&M figures as per ARC Alternatives.

* Project cost based on REC proposal.

* Project assumed to be phased in over 2 years.

* Based on interest rates as of November 16, 2017.

* Includes estimated upfront financing costs

This Item was for Information only- no action was taken

Board Audio at 2:59:23

Regarding the Contingencies:

Construction 5%

Federal Trade Case - Tariffs on Solar Panels - recommended 5 cents per Watt - won't apply to all countries. We should not need to use this at all depending on how tariffs are applied.

Board Audio at 3:02:17

3 campus to be done in summer 2018

District Office in winter 2018

3 campus to be done in summer 2019

BROWN ACT VIOLATION

CUSD added a Hand Out at the meeting: Annual Costs and Revenues which refers to "other financeable costs shown on the following slide (there is no other page).

OF NOTE: CUSD has spent money to obtain CREB financing BEFORE approving the Solar project.

Sounds like Audio was cut out

PUBLIC COMMENTS

Board Audio at 3:06:38 Student Jack Heartzing - Tesoro HS Overview of the project.

Board Audio at 3:09:39 Melod Chofrie - Dana Hills Co-founder Investing Club. Spoke about the financing of the Project - CUSD will own the panels

Board Audio at 3:12:10 Alley Navalles - Working on this project for 3 years. 

Board Audio at 3:15:26 Declain Hayworth - Ecology Action Team SJHS - Talked about Trees.

Board Audio at 3:18:18 Deanne Lee - Conservation Club Tesoro spoke about Ecology and Endangered Species and her trip to China.

Board Audio at 3:21:26 Erica Hunting - Founder and President of SCHS Blue Oceans Club. Spoke about the 3 year journey to get approval of the solar project.

Board Audio at 3:24:08 Kyle Krieger President Tesoro Conservation Club - CREBS expire Jan 2018 - so we need approval today.

TRUSTEE COMMENTS

Board Audio at 3:27:40 Amy Hannacek- this project would have made a great documentary. 

Board Audio at 3:28:46 Judy Bullockus - Excellent job of Public Speaking. 

Board Audio at 3:29:27 Student Advisor to the Board - So impressed that Students will have made a lasting change to CUSD. 

Board Audio at 3:30:37 Trustee Holloway - thank you for the care you are taking in replacing and considering the trees.

Board Audio at 3:32:55 Trustee McNicholas Thank you for sticking with this process. I loved the project but was very concerned about the financing.

This is an Information only Item. No Action was taken.

AGENDA ITEM #34  RESOLUTION NO. 1718-28, RESOLUTION TO ENTER INTO ENERGY SERVICE CONTRACT

Board Agenda at page 534

Board Audio at 3:34:27

Presentation by Clark Hampton- Open Transparent Process.

If approved CUSD would sell CREB Bonds tomorrow Dec 7, 2017

Students saw total transparency in the process as opposed to power purchase agreements that other districts do.

Board Audio at 3:35:45 

TRUSTEE COMMENTS

None.

Motion to Approve Resolution by Trustee Hanacek

Second by Trustee Bullockus

The Resolution 1718-28 was approved 5-0-2 (Trustee Reardon and Jones absent)

The Resolutions stated Costs do not match what was presented:

Annual Costs excluding O & M State that total costs are $20,662,281  see Board Agenda page 528 

O & M is stated in the Resolution to be $713,788 

Total Purchase Cost in the Resolution should be: $21,376,069 however, the Resolution that was approved states that Total Purchase cost is $18,372,631.

Note: if the real cost is $21,376,069 then savings of $21,231,863 is NO SAVINGS!

That is a discrepancy of $3,003,438 million dollars.

PUBLIC  RECORDS REQUEST

CUSD explain the difference in cost reflected in the Resolution and what was presented in the Item?

 

 

 

 

 

AGENDA ITEM #35  CERTIFICATION OF THE 2017-2018 FIRST INTERIM REPORT AND ADOPTION OF RESOLUTION NO. 1718-26, 2017-2018 REVENUE AND EXPENDITURE INCREASES/DECREASES