McHenry Times

Community Unit School District 300 Board Finance Committee met April 14.

Here is the minutes provided by the committee:

Members present virtually: Leslie LaMarca, Dr. David Scarpino, Joseph Stevens, Nancy Zettler, Steve Fiorentino, Fred Heid, Susan Harkin, Jason Emricson, Dan Opels, Eberto Mora, Diane White, Deb Mason, Mike Williamson, Joe Schumacher, Claudette Russell, Chuck Bumbales, Becky Gilliam, Bob Schwab, Robin Randall, Jay Johnson, Brian Kerner, and Chad Alexander

1. Call to Order

Meeting called to order at 4:15 p.m.

1. 1. Pledge of Allegiance

2. Approval of previous meeting minutes

March 2, 2020, Board Finance Meeting Minutes were approved as presented. February 11, 2020, Construction and Facility Oversight Committee Meeting Minutes were approved as presented.

3. Public Participation

Mr. Mike Tennis, Resident of Sleepy Hollow, Il. Submitted a public participation comment. The committee co-chair, Mr. Stevens, requested Ms. Harkin read the comment from verbatim, and are as follows:

New Hampshire Elementary School Initial Thoughts re Architectural Services Contracts Due to COVID-19 Impact and Economic Instability:

Table planning process for two months

Covid could impact:

• Enrollment

• Hoonuit 3 Yr. Enrollment & Location Analytics Service Agreement just approved in February needs time to more clearly define what is really needed post COVID

• EAV in next 2-5 years

Economy could impact:

• Exodus if Graduated Income Tax Passes

Other alternative need to be explored such as better utilization of existing facilities as well as alternative space Spring Hill Mall has huge amount of available space for possible retrofitting and leasing

Financing

• Construction Fund balance $19M

• Cost estimate (excludes land?) $26M

• New debt. $7M

• State Capex. $45M

• Fed Stimulus

• State Credit Rating,

• Probable Loss of Investment Grade Rating to Junk Bond Status

• Referendum on Graduated Income Tax

• Results May Adversely Impact

• School Funding & Pension Contributions by State

4. Items for Discussion

4. 1. BFC-Disposal Items

Ms. Harkin presented the disposal report. The report will be brought to the Board for approval.

4. 2. BFC-Donation - JHS Musical

Ms. Harkin presented the Donation Report. The report will be brought to the Board for approval.

4. 3. BFC-Treasurer's Report

Ms. Harkin reviewed the February Financial report. Our finances are trending as we expected for this time of year. While it is still early, we are looking at some savings on contracts due to COVID. The report will be brought to the Board for approval.

4. 4. CFOC-Building Requests

Mr. Opels reviewed the five proposed building improvement projects. These projects will be funded through building funds or building PTO donations. The committee approved the requests as submitted. 4. 4. 1. Golfview PTO Playground

4. 4. 2. Sleepy Hollow Basketball System

4. 4. 3. Sleepy Hollow Cafeteria Door Covers

4. 4. 4. Sleepy Hollow Signage

4. 4. 5. Wright PTO - Outdoor Tables

4. 5. CFOC-Air Filter Bid

Mr. Opels reviewed the air filter bid results. The scope of work for the air filter bids were developed and released in March 2020 with the bid opening occurring on April 6, 2020. Five (5) companies bid this project. The lowest responsible bidder is Brucker, located in Elk Grove Village, IL. The Administration will bring a recommendation to the Board to award the contract, for an estimated amount of $49,003.69, for the purchase of pleated and bag air filters for all district sites to

Brucker, for the 2020 / 2021 school year. The contract is for one (1) year, with the possibility of two (2) one-year extensions. The funding for Air Filters will come from the Operations and Maintenance fund (20).

4. 6. CFOC-Facility Rental Agreement 2020 - 2021

Jason Emricson reviewed the process used for the annual update of our Facility Rental Program. Every year, the District reviews its Facility Rental Agreement to set the fees for the next school year and to update language as necessary. The District compared its fees to the surrounding school districts to ensure our fees. There are a few proposed changes to the agreement and no changes to the overall fee structure.

Mr. Stevens asked if facilities rentals with outside groups will be impacted by COVID-19 and the reopening of our buildings. Ms. Harkin indicated that they would adhere to the state health department and governor's office protocol once our buildings are open for rental again.

The Administration will bring a recommendation to the Board to approve the 2020- 2021 Facility Rental Agreement as presented.

4. 7. BFC-Transportation Services Contract Addendum

Ms. Harkin provided an overview on the state directive on payment to industries that provide essential services to public school districts have been impacted. These industries include, but are not limited to:

* Private, therapeutic day schools and residential programs that support students as outlined in an individualized education program; 

* Food service providers that ensure students have access to breakfast and lunch on school days regardless of their financial status; 

* Transportation providers that provide bus or van service to all students qualifying for district-provided service to and from school and designated work sites.

In response to these difficult times, the Illinois State Board of Education (ISBE) in partnership with the Governor's Office has strongly encouraged school districts to continue paying all contracted service providers during the time when schools are required to be closed, but would otherwise be open. State Superintendent Dr. Carmen Ayala, shared the following guidance:

"At this time, there are no anticipated changes to the expectation that districts continue to pay everyone on the payroll and that employees continue to work - remotely unless physical presence is absolutely necessary to support remote learning or ensure students have meals. Please see the revised joint statement from ISBE and the IEA, IFT, IASA, IPA regarding expectations of employees on Remote Learning Days. ISBE and the Governor's Office also urge all employers to continue paying third-party contract employees and to make the necessary contract amendments to ensure that these employees continue to be paid. State funding is continuing to flow uninterrupted, so paying all employees, including third-party contract employees, can be budget neutral."

The recommendation from ISBE is based on several considerations, most importantly being the school district's responsibility to return to normalcy as soon as it is deemed appropriate. By continuing to compensate our third-party providers, the dedicated team members that are responsible for providing service to our school district will remain employed with their company and will continue to be compensated for their base salary. They will not be furloughed (temporary leave) or terminated by their employer. As a result of this condition, service providers will be expected to resume normal operations guidance from the Illinois State Board of Education promptly upon our request. This will ensure that all services can be restored as soon as it is deemed appropriate.

To further support their recommendation, ISBE has taken action to pass the following emergency rules and program modifications that impact state reimbursement for different third-party providers as outlined below.

Section 120.30 Pupil Transportation Services Eligible for Reimbursement EMERGENCY (March 30, 2020) - Due to the outbreak of the Coronavirus Disease 2019 (COVID-19), beginning on March 17, 2020, and through the end of the 2019- 2020 school year, to ensure the continuity of education, including the provision of any direct or related service for the health and well-being of all public school students in pre-kindergarten through grade 12, all transportation costs incurred that are beyond transporting students, such as costs related to the distribution of food, distribution and pick-up of student assignments and work, and use of vehicles to provide wi-fi and other similar costs, shall be allowable and reimbursed by the formula under Section 29-5 of the School Code.

Section 226.335 Nonpublic Special Education Placement of Public School Students EMERGENCY (March 25, 2020) - During the mandated suspension of in-person instruction pursuant to the Gubernatorial Disaster Proclamation 2020-038 and Executive Orders 2020-05 and 2020-06, and for the duration of the Gubernatorial Disaster Proclamation, all approved special education private facilities may continue to invoice school districts and school districts shall continue to pay the per diem approved by the Illinois Purchased Care Review Board under Section 14- 7.02 of the School Code. The State Board of Education will reimburse school districts for all approved special education private facility expenditures.

Summer Food Service Program Offering (SFSP) Waiver from USDA to Authorize Grab-and-Go Meal Service - An additional change that has been approved by the United States Department of Agriculture allows schools that do not participate in the National School Lunch Program (such as most Northfield Township schools), to receive reimbursement for approved meals through the Summer Food Service Program offering (SFSP). The SFSP program is designed to encourage schools to offer meals during unanticipated school closures, including breakfast and lunch to all of those families that are experiencing financial hardship. Glenbrook's application was submitted the same day the program was announced and was approved on Wednesday, March 25, 2020.

For our current third-party providers, we have agreed that we will pay all providers based upon existing contracts. Any requests outside of that will be brought forward to the Board for approval, which is a requirement for the continuation of payments that would be wholly or partially reimbursed by ISBE.

As shared in ISBE's guidance, continuing to pay our third-party providers is budget neutral as all annualized expenses have already been budgeted. Furthermore, there are no indications that any targeted revenue streams for these services would be impacted in the next three months. Ms. Harkin shared the joint statement that was released on March 27, 2020.

As of this time, the Administration has worked out an agreement with Durham to continue paying its employees until April 30, 2020. The Administration provided a recommendation to the Board to approve the Transportation Addendum as presented. The Administration will continue working with Durham to develop services they can provide for this payment, which include assistance with student meals and internet connectivity.

4. 8. BFC-Food Service Contract Addendum

In alignment with agenda item 4.7, Ms. Harkin presented an addendum to the Food Service Contract. As D300 implements emergency measures for COVID-19, Aramark understands that many students still rely on their school's food service for daily nourishment. Aramark has fully committed to continuing to serve those students during this challenging period.

At this time, Aramark has requested to pay their employees an additional rate of $5.00 per hour plus tax and benefits for hourly staff during our closure. As we continue to see staff shortages due to fear, personal / family illness, and unemployment concerns, this would be a tremendous incentive for their dedicated team. Based on a continuously growing and changing meal program, D300 would have a net revenue of $4,009 per day after the estimated SFSP reimbursements and employee incentive. Details are as follows:

$16,554 – SFSP reimbursement entitlement based on an average of 4,500 breakfast and lunch and 2,250 snacks served per day· 

$11,795 – Aramark charge to D300 for meals and snacks 

$4,759 sub-total balance 

$ 750 – D300 cost of $5.00 per hour + taxes staff incentive (estimated 125 hours per day for four total days per week)· 

$4,009 ending balance per day

As participation increases, an increase to daily hours may be needed as these are an estimate based on the current program. Due to the COVID19 situation, Aramark has asked that we include an hourly increase for staff that is working under this current situation and the risk. The Administration will bring a recommendation to the Board to approve the addendum.

4. 9. Both-Master Facility Plan Update

Ms. Harkin provided an update on our Master Facility Plan. This plan ensures our buildings are being adequately maintained and providing appropriate instructional space to our students. The Administration provided an overview of the Summer 2020 projects and Summer 2021 proposed projects.

Mr. Opels provided an update on the projects planned for summer 2020 and the buildings that will be closed for the summer to accommodate the projects. He also provided updates on the projects that are currently in process. Plans are moving along, but Mr. Opels indicated this could change based on the stay at home order and return to school date.

Dr. Scarpino asked how we plan to facilitate allowing the reopening of our buildings and for staff and students to retrieve items or pack classroom materials. Ms. Harkin and Mr. Opels explained that the Administration is working on several plans. The Administration's primary concern is the health and safety of our staff and students and to keep exposure to a minimum. We still don't have all the information we need to move forward with an alternative plan. These plans are on hold until further direction and protocols are received from the State.

Ms. Harkin presented the 2021 Proposed Projects, which is part of our 5-year plan. The plan is continuously reviewed to ensure fiduciary and sustainability objectives.

The Summer 2021 Proposed Projects include:

* DCHS fieldhouse and gym floor 

* HMS cafeteria and corridor flooring replacement/abatement 

* HMS athletic field bridge 

* Perry flooring replacement/abatement 

* HHS fieldhouse floor 

* New elementary school 

* DCHS roof repair and replacement

Ms. Harkin reviewed the following items concerning our proposal to build a new elementary school:

* Proposed Development Report 

* Enrollment Projections 

* Potential School Site 

* New Elementary School Project Schedule

* Financing Options 

* Architectural Contract

The overall process of building a new elementary school will take over two years. For that reason, the Administration is proposing to enter into an architectural services agreement for schematic design only. We plan to use the same design as Gilberts and Wright (base building pre additions), as this will be very cost-effective. However, the plans will need to be updated to comply with any new school code requirements and changes to update the current design. As such, the architect has offered a reduced fee for the new building.

Currently, the Administration has looked at an option for the new site in Pingree Gove. Also, we have looked at other locations in Hampshire.

Mr. Stevens recommended including the 8-classroom addition in the new building design. By building now, the District could realize savings through lower financing and building costs. The additional classroom space would also position the District to address future classroom needs. Dr. Scarpino agreed with exploring the costs of adding the classroom additions and possibly looking at enlarging lunchrooms and gyms as well to accommodate more classrooms.

Ms. Zettler felt the options for the additional classrooms need to be considered and agreed they should be included.

Ms. LaMarca asked if our enrollment projections include estimates for future students, inclusive of the charter school students. Ms. LarMarca asked if the new school could handle the student population at the charter school should something happen? Ms. Harkin indicated that all growth was considered in our projections. However, we are still working with our demographer on the details by building.

Ms. Harkin explained the plan for the new additional school is not to replace any school in our District. The need is to add an elementary school, is based on the current and future population growth for the western portion of the District. The charter school serves students throughout the D300 community and not just one village.

Ms. Harkin also explained that we have been in contact with our financial advisors to begin work on various financing options. However, we will continue to stay the course to secure funding from the State Capital Grant to pay for the new school.

The Administration will bring the recommendation to the Board to approve the Schematic Design Phase Contract with Dewberry Architects for approval.

Ms. Harkin will continue to monitor our enrollment projections and State Capital

Grant funding. She will provide further updates and recommendations for the Capital Projects as they are available.

5. Announcements

The next Finance Committee is scheduled for Tuesday, May 12, 2020, at 4:30 p.m. The next CFOC Meeting is scheduled for Tuesday, May 12, 2020 at 5:15 p.m.

6. Adjournment

The meeting adjourned at 5:10 p.m.

https://v3.boardbook.org/Public/PublicItemDownload.aspx?mk=50366324&fn=minutes.pdf