Aug 07, 2023 School Board

[00:00:01]

GOOD AFTERNOON. WE'LL CALL THIS SPECIAL MEETING OF THE CARROLL ISD BOARD OF TRUSTEES TO ORDER ON AUGUST 7TH, 2023, AT 5 P.M..

[1. CALL TO ORDER AND ESTABLISH QUORUM]

[2. EXECUTIVE SESSION]

ALL RIGHT GOOD AFTERNOON. WE'LL CALL THIS MEETING BACK TO ORDER AT 6 P.M..

OUR NEXT AGENDA ITEM IS THE PLEDGES OF ALLEGIANCE.

[3. PLEDGES OF ALLEGIANCE / MOMENT OF SILENCE]

WILL YOU ALL PLEASE RISE? PLEASE JOIN ME FOR A MOMENT OF SILENCE.

ALL RIGHT. THANK YOU, TRUSTEE YEAGER.

OUR NEXT AGENDA ITEM IS PUBLIC COMMENTS.

[4. PUBLIC COMMENTS]

PLEASE BE REMINDED TODAY'S MEETING OF THE BOARD IS A SPECIAL MEETING AND THEREFORE ALL SPEAKERS ARE REQUIRED TO LIMIT YOUR COMMENTS TO THOSE THAT ARE GERMANE TO AGENDA ITEMS ONLY.

MISS YELTON, WILL YOU PLEASE CALL UP OUR FIRST SPEAKER? OUR FIRST SPEAKER WAS MARISSA MEHAN IF SHE IS HERE.

THE SECOND SPEAKER IS MILES FULTZ.

MAY BEGIN. OKAY.

HI, EVERYBODY.

THANKS FOR HAVING ME.

I'M VERY NEW TO TEXAS, AND I JUST WAS CURIOUS ABOUT YOUR GUYS'S SELLING OF APPROXIMATELY 50 ACRES OF LAND.

I'M NOT SURE HOW THAT, UM.

UH, EXCUSE ME, SIR, REAL QUICK.

YES, ALEX. YEAH.

IT WASN'T GOING, SO THAT'S WHY I WAS WAITING.

SORRY ABOUT THAT. GO AHEAD.

UM, SO I DON'T KNOW HOW SELLING THAT LAND PREPARES OUR STUDENTS FOR TODAY OR IN THE FUTURE, GIVEN THAT THE LANDSCAPE OF A LOT OF PEOPLE LIKE ME ESCAPING COMMUNIST CALIFORNIA FOR TEXAS, I KNOW NEW YORK AS WELL AS A BIG OUTFLUX STATE, AND WE'RE ALL SETTLING IN THIS PLACE.

SO I DON'T I SEE THAT THERE'S GOING TO BE A LOT OF GROWTH HERE.

GETTING RID OF SCHOOL PROPERTY THAT MIGHT BE NEEDED FOR BUILDINGS, FACILITIES, OTHER OPTIONS LATER DOWN THE ROAD.

REMOVING THOSE OPTIONS IN THE FUTURE SEEMS A LITTLE, UH, MAY NOT BE THE RIGHT MOVE.

AND I JUST WANTED TO PROVIDE THAT INFORMATION AND MAKE SURE THAT YOU GUYS WERE COGNIZANT OF THE FUTURE DEVELOPMENTS OF TEXAS.

SO. ALL RIGHT.

THANK YOU. THAT'S IT FOR ME.

ABSOLUTELY. THANK YOU, SIR.

ALL RIGHT. NEXT ITEM ON THE AGENDA IS ITEM NUMBER FIVE CONSIDERATION AND POSSIBLE ACTION ON ANY MATTERS ADDRESSED IN EXECUTIVE SESSION.

[5. CONSIDERATION AND POSSIBLE ACTION ON ANY MATTERS ADDRESSED IN EXECUTIVE SESSION]

YES. PRESIDENT BRIAN FOR 5 A, FIVE B AND FIVE C, I ASK A MOTION TO BE MADE.

I MAKE A MOTION FOR THIS ACTION TO BE TAKEN FOR 5A, CONSIDERATION AND ACTION TO AMEND PUBLIC PRIVATE PARTNERSHIP GUIDELINES FOR FIVE B, CONSIDERATION AND ACTION TO AUTHORIZE THE ADMINISTRATION TO SOLICIT BIDS TO SELL APPROXIMATELY A, 18 ACRES AT THE SOUTHEAST CORNER OF EAST HIGHLAND STREET AND NORTH CARROLL AVENUE.

B 28.29 ACRES AT 2400 NORTH CARROLL AVENUE, THREE, THREE ACRES AT 1301 NORTH CARROLL AVENUE, WHICH IS SOUTH OF JOHNSON ELEMENTARY SCHOOL AND ONE ACRE AT 200 SOUTH CATONSVILLE AVENUE, ALL OF WHICH ARE IN THE CITY OF SOUTHLAKE. AND 5C, ACTION TO AUTHORIZE THE ADMINISTRATION TO SOLICIT PROPOSALS FOR PUBLIC PRIVATE

[00:05:05]

B, 28.29 ACRES AT 2400 NORTH CARROLL AVENUE.

C, THREE ACRES AT 3101 NORTH CARROLL AVENUE, SOUTH OF ELEMENTARY OF JOHNSTON ELEMENTARY SCHOOL AND D, ONE ACRE AT 200 SOUTH PATTONVILLE AVENUE, ALL IN THE CITY OF SOUTH LAKE, TEXAS.

I'LL SECOND THE MOTION.

OKAY. WE HAVE A MOTION AND A SECOND.

IS THERE FURTHER DISCUSSION? PRESIDENT BRIAN, CAN I ASK MR. JOHNSON A QUESTION? YES.

MR. JOHNSON, CAN YOU CONFIRM IF THERE WILL BE LANGUAGE IN THE PROPOSAL THAT ASKS BIDDERS TO PRESERVE THE ORIGINAL SCHOOLHOUSE BUILDING ON CARROLL AND NORTH HIGHLAND? SPECIFICALLY, YES.

WE WILL ASK PROPOSERS TO CONSIDER PRESERVATION OF THAT BUILDING AND IT WILL BE REQUIRED TO BE IN THEIR RESPONSE.

THANK YOU. JUST AS A MATTER OF CLARIFICATION, BECAUSE WE DID HAVE A PUBLIC SPEAKER ASK US A QUESTION.

ALL WE'RE DOING HERE IS EXPLORING WHAT OUR OPTIONS ARE.

WE'RE NOT ACTUALLY SAYING WE'RE EVER GOING TO SELL ANY OF THESE PROPERTIES.

WE'RE JUST EVALUATING WHAT THE OPTIONS ARE FOR THE FUTURE.

YEAH. THANK YOU.

TRUSTEE LANDON AND DR.

LEDBETTER. MAYBE FOR THE BENEFIT OF OUR PUBLIC SPEAKER.

CAN YOU MENTION WHAT OUR DEMOGRAPHER HAS PROJECTED FOR OUR ENROLLMENT IN THE NEXT DECADE? YES, SIR.

SO I CAN'T SPEAK SPECIFIC NUMBERS, BUT I DO KNOW OVER THE NEXT TEN YEARS, OUR PROJECTION IS REALLY TO LOSE STUDENTS, PROBABLY AROUND 150 TO 200 STUDENTS OVER THE NEXT TEN YEARS. SO WE'RE PROJECTED TO REMAIN VERY FLAT FROM A STUDENT ENROLLMENT STANDPOINT WITH SLIGHT DROPS ANYWHERE FROM 25 TO 50 STUDENTS OVER THE NEXT DECADE. SO WE'RE NOT PROJECTED TO GROW IN STUDENT NUMBERS.

AND I THINK WHAT WE'RE SEEING IS THAT PEOPLE AS STUDENTS ARE GRADUATING, INDIVIDUALS ARE CHOOSING TO REMAIN IN THE COMMUNITY.

AND SO WE'RE NOT SEEING THE GROWTH, ESPECIALLY IN AVAILABILITY OF HOMES AND THAT TYPE OF THING.

SO WE'RE NOT WE'RE NOT EXPECTING GROWTH IN STUDENT POPULATION.

ALL RIGHT. THANK YOU, DR. LEDBETTER.

ANY FURTHER DISCUSSION? OKAY. WE HAVE A MOTION IN A SECOND.

ALL IN FAVOR? MOTION CARRIES 5 TO 0.

NEXT ITEM ON THE AGENDA IS OUR INFORMATION SECTION OF THE AGENDA ITEM SIX, A 2023 2024 BUDGET UPDATE.

[6. INFORMATION]

I AM.

THANK YOU, PRESIDENT BRIAN, MEMBERS OF THE BOARD.

TONIGHT WE WILL BE GOING OVER.

WHERE WE ARE ON THE BUDGET. I THINK THE LAST TIME WE SPOKE I INDICATED THAT I WOULD REFRESH THE NUMBERS AND GIVE YOU REALLY CLOSER TO WHAT I EXPECT TO PRESENT NEXT WEEK OR TWO WEEKS.

SO I'M GOING TO GO OVER TONIGHT. I'M GOING TO GO OVER THE 2023-2024 PRELIMINARY TAX RATES.

GIVE YOU A LITTLE BIT OF INFORMATION IN CONTEXT ON THAT, THE 2023-24 GENERAL FUND BUDGET, SAME THING FOR THE DEBT SERVICE FUND, NEXT STEPS AND TIMELINE. SO ON JULY 25TH, AS REQUIRED BY LAW, TEXAS TARRANT APPRAISAL DISTRICT RELEASED THE ASSESSED VALUES FOR CARROLL ISD.

THOSE VALUES GREW ABOUT 16.5%.

AND WHAT THAT ULTIMATELY RESULTS IN AS YOUR VALUES INCREASE, THE STATE HAS A FORMULA THAT REQUIRES YOU TO DECREASE OR COMPRESS YOUR TIER ONE TAX RATE.

AND SO WHAT I'VE GIVEN YOU HERE IS A FEW A COUPLE OF YEARS PRIOR, YOUR HISTORY, THE, THE 21-22, 22-23 AND THEN WHAT WE'VE GOT BASED ON WHAT IS NOW BEEN APPROVED BY TEA FOR THE MAXIMUM COMPRESSED RATE, WHICH INCLUDES THE COMPRESSION THAT HAS BEEN A PART HISTORICALLY OF HOUSE BILL THREE, BUT ALSO OF SENATE BILL TWO THAT WAS WAS APPROVED IN THE RECENT LEGISLATIVE SESSION.

SO THE MAXIMUM COMPRESSED RATE GOES FROM 8288 TO 6225, WHICH IS A 20.63% REDUCTION.

AND THEN THE ENRICHMENT TAX, OUR TIER TWO ENRICHMENT TAX IN 22-23, WE ADOPTED A DISASTER PENNY SINCE WE ARE NOT ADOPTING A DISASTER PENNY IN THE CURRENT YEAR, THAT REVERTS BACK TO THE $0.05.

SO OUR M AND O TAX RATE IS GOING FROM 8888 PER $100 OF VALUATION TO 6725, WHICH IS A 21.63 CENT REDUCTION.

SO ON $1 MILLION, THAT'S ABOUT $2,163 JUST FOR CONTEXT.

SO MR. JOHNSON, JUST TO MAKE SURE THAT WE POINT OUT FOR CLARITY FOR OUR COMMUNITY IS THAT THAT'S A WONDERFUL TAX BREAK THAT OUR LEGISLATURE GAVE THE CITIZENS OF OUR STATE AND ESPECIALLY IN OUR CITY OF SOUTHLAKE.

HOWEVER, AM I CORRECT IN THAT DOES ABSOLUTELY NOTHING TO INCREASE THE AMOUNT OF FUNDING FOR OUR SCHOOL DISTRICT IN YEARS 2425? THAT IS ABSOLUTELY CORRECT PRESIDENT BRIAN, THANK YOU.

[00:10:02]

DOES THIS CHANGE AT ALL? AND I THINK IT'S MAYBE STILL PROPOSED, CORRECT, BECAUSE IT NEEDS TO BE VOTED UPON.

YOU WILL APPROVE THE TAX RATE, BUT BASED ON THE CALCULATIONS THAT I HAD TO SUBMIT TO TEA COUPLED WITH THE TIER TWO RATE, THAT'S WHAT I WILL BRING TO YOU IN TWO WEEKS TO FOR FOR BOARD APPROVAL.

AND THE REASON WHY YOU ARE NOT RECOMMENDING APPROVING A SIX DISASTER IS BECAUSE THAT DOESN'T EXIST ANYMORE.

CORRECT? THERE ARE CERTAIN DISASTERS THAT EXISTED STATEWIDE, BUT THEY DID NOT IMPACT CARROLL ISD AS THE PRIOR YEAR RIGHT DISASTER DID.

AND MR. JOHNSON, DOES THIS HAVE ANY EFFECT EITHER WAY ON THE RECAPTURE OF WHAT HAS BEEN ABOUT $37 MILLION FROM SOUTH LAKE CITIZENS? IT WILL ABSOLUTELY HAVE A BIG IMPACT, AND I'LL GO OVER THAT ON A COUPLE OF SLIDES.

BUT ABSOLUTELY, BECAUSE THIS IS THE TIER ONE.

SO BASICALLY WHAT WE'RE DOING BY COMPRESSING THE TAX RATE IS WE'RE LOWERING TAX COLLECTIONS.

WELL, AS WE LOWER TAX COLLECTIONS ON TIER ONE ON THE MCR, OBVIOUSLY THERE'S LESS TO REMIT TO THE STATE.

SO BUT I'LL GO OVER THAT HERE IN ANOTHER SLIDE HERE IN A COUPLE OF SLIDES.

THE INTEREST IN SINKING TAX RATE RIGHT NOW I'VE PRELIMINARY INCLUDED THE CURRENT RATE AND WILL PRESENT ON THE AUGUST 21ST MEETING A FURTHERANCE OF THE DEBT DEFEASANCE PLAN THAT WE STARTED.

BUT RIGHT NOW WE'RE LEAVING THAT THE SAME.

SO OVERALL, THE TAX RATE IS PROJECTED TO GO DOWN BY ABOUT 17.75.

SO MR. JOHNSON, CAN YOU GO INTO A LITTLE BIT MORE DETAIL? YOU DON'T HAVE TO GO INTO COMPLETE DETAIL ON WHY THE DISTRICT IS RECOMMENDING KEEPING THE INS RATE AT 33 PENNIES.

ABSOLUTELY. SO AS WE COLLECT TAXES AT THAT TAX RATE, WHAT THAT ALLOWS THIS DISTRICT TO DO IS PREPAY DEBT.

IT'S PAYING YOUR MORTGAGE EARLY.

AND SO IF YOU LOOK AT THE ADVANTAGES OF PAYING DEBT EARLY, THE INTEREST COST THAT YOU SAVE OVER THE TERM OF THOSE REMAINING OBLIGATIONS WILL BE INTO THE MILLIONS OF DOLLARS.

AND SO THAT EXTRA MONEY THAT WE COLLECT, WE PUT THAT INTO AN INTEREST BEARING ACCOUNT UNTIL THE NEXT BOND COMES UP FOR CALL.

CALL, AND THEN WE PAY OFF THAT BOND EARLY, CORRECT? EARLIER THAN EXPECTED.

CORRECT. OKAY. AND THEN OUR BOND OUR DEBT TAKES US OUT TO, IF I CAN REMEMBER RIGHT, 2042.

IS THAT OUR LAST YEAR? I BELIEVE THAT IS CORRECT.

OKAY. THANK YOU. AND SO OUR GOAL THEN WOULD BE TO TRY TO DEFEASE AND PAY OFF OUR DEBT PRIOR TO THE 2042 TIME FRAME.

CORRECT? THAT'S THE REASON WHY WE ARE DOING THIS.

OKAY. RIGHT. THANK YOU.

YES, SIR. AND JUST TO KIND OF GIVE YOU A KIND OF A QUICK RECAP, MNO REVENUE AND OTHER SOURCES ASSUMPTIONS.

SO THE CERTIFIED VALUE FROM TARRANT APPRAISAL DISTRICT OR 12.9 BILLION.

THAT'S A 16.5% INCREASE FROM 2022.

WHAT IS UNIQUE TO THIS YEAR, THAT 12.9 BILLION IS BASED ON THE $40,000 HOMESTEAD EXEMPTION.

OF COURSE, WITH THE LEGISLATION THAT PASSED ON JULY 13TH.

WE'VE GOT TWO SETS OF VALUES THIS YEAR.

WE'VE GOT THE VALUES FOR THE INCREASING FROM A 40,000 TO $100,000 HOMESTEAD.

WHAT YOU SEE HERE IS SOLELY ON THE PRE SENATE BILL TWO VERSION OF THE ASSESSED PROPERTY.

SO AS I TALK ABOUT PROPERTY VALUES, IT'S IMPORTANT TO REMEMBER THAT WE HAVE TO DISTINGUISH EACH SETS OF DATA SO THAT WE KNOW WHAT THAT DATA IS COMPARABLE TO IN PRIOR YEARS. SO AGAIN, IF WE LOOKED AT THAT NUMBER BASED ON WHAT IS GOING TO GO TO THE VOTERS ON NOVEMBER 7TH, THAT NUMBER WOULD BE CLOSER TO 12.5 BILLION, 12.4 BILLION BECAUSE OF THE ADDITIONAL HOMESTEAD.

SO JUST REALIZE THAT THERE'S GOING TO BE MULTIPLE SETS OF DATA OUT THERE.

I'LL DO MY BEST TO MAKE SURE THAT THEY'RE CLEAR AND THAT YOU UNDERSTAND THOSE AS WE WALK THROUGH THOSE.

ASSESSED VALUES ALSO, THE CERTIFIED VALUES ALSO INCLUDE VALUES THAT YOU WON'T NECESSARILY COLLECT TAXES ON.

IT INCLUDES THE TAXABLE VALUE OF THE FROZEN PROPERTY FOR THOSE OVER 65 YEARS OLD.

WHAT YOU COLLECT TAXES ON IS DIFFERENT THAN WHAT THE TAXABLE VALUE IS, AND I'LL GO OVER THAT ON A LATER SLIDE AS WELL.

PROPERTY TAX COLLECTIONS PROJECTED AT 99.5%.

YOU KNOW, ONCE UPON A TIME THAT WOULD THAT WAS VIEWED AS CONSERVATIVE AND MAYBE MARGINALLY CONSERVATIVE, BUT WILL NOT REALLY NECESSARILY HAVE AN IMPACT, A LARGE IMPACT ON THE BOTTOM LINE. IT'S MODERATELY CONSERVATIVE AT BEST.

THE PROPOSED TAX RATE FROM THE PREVIOUS SLIDE IS 6725 PER $100 OF VALUATION.

AND THE MCR DECREASE IS IS DUE TO THE HOUSE BILL THREE MANDATED COMPRESSION THAT HAPPENED IN 2019, THE 86 LEGISLATIVE SESSION.

AND THEN WHAT WE JUST RECENTLY EXPERIENCED WAS SENATE BILL TWO AND THE 88TH LEGISLATIVE SESSION, THE ENRICHMENT TAX DECREASE OF ONE PENNY PER $100 OF VALUATION.

AND THEN WE'VE ALSO INCLUDED, AND I'M INCLUDING THE ANTICIPATED SALE OF PROPERTY, WE KNOW THAT WE'VE HAD A LOT OF A LOT OF ACTIVITY ON THE AGENDA ABOUT OVER PROPERTY REALLY STARTING BACK IN FEBRUARY.

SO AS WE LOOK AT OPTIONS TO BALANCE THE BUDGET, THAT'S AN OPTION TO BALANCE THE BUDGET.

BASICALLY BASED ON SOME OF THE INFORMATION WE'VE RECEIVED, WE ANTICIPATE THAT PROPERTY SALE POTENTIALLY TO BE OVER $15 MILLION.

[00:15:07]

IT'S MUCH LESS THAN THAT.

AND SO I PUT $2 MILLION IN THERE FOR BALANCING THE BUDGET.

THE PROJECTED ENROLLMENT OF 8422 IS A LITTLE BIT LESS THAN LAST YEAR.

IT'S ABOUT 50 TO DR.

LEDBETTER'S POINT EARLIER, IT'S ABOUT 50 LESS.

THAT SAID, WE KNOW THAT WE'VE ALLOWED TRANSFERS THAT WE'VE NOT HISTORICALLY ALLOWED.

SO WHAT I CHOSE TO DO IS USE THE ADA THAT WE EXPERIENCED IN THE CURRENT YEAR DUE TO THE UNCERTAINTY.

AGAIN, WE'RE GOING TO EXPERIENCE SOMEWHERE BETWEEN 7939 AND MAYBE 7900.

HISTORICALLY, I WILL ALWAYS GIVE A MID-YEAR EVALUATION ON WHERE WE ARE, SO WE'RE DEFINING OUR STARTING POINT.

WE KNOW THAT IT'S REALLY KIND OF A LITTLE BIT UNUSUAL DUE TO THAT TRANSITION.

I'LL COME BACK, AS I ALWAYS DO IN JANUARY OR FEBRUARY ONCE WE HAVE FIRMER NUMBERS AND CAN PROJECT THAT NUMBER OUT THROUGH THE END OF THE YEAR.

SO, MR. JOHNSON, CAN YOU TALK A LITTLE BIT ABOUT ADA, BECAUSE I KNOW THERE'S MANY IN OUR COMMUNITY THAT DON'T REALLY UNDERSTAND THE DIFFERENCE BETWEEN ENROLLMENT AND ADA.

AND SPECIFICALLY, YOU KNOW, IF YOUR CHILD IS ARRIVES AT SCHOOL AFTER A CERTAIN TIME, THEY'RE NOT COUNTED AS ATTENDING FOR THE DAY, EVEN IF THEY ARE THERE FOR A PORTION OF THE DAY.

YES, SIR. ABSOLUTELY.

SO ENROLLMENT ARE THOSE WHO OBVIOUSLY ENROLL INTO INTO THE SCHOOL.

TEXAS HAS A UNIQUE FUNDING SYSTEM THAT THEY ONLY PAY WHEN STUDENTS SHOW UP.

IT'S CALLED AVERAGE DAILY ATTENDANCE.

AND THAT'S WHAT CHILDREN WHAT THE DISTRICT RECEIVES FUNDING ON.

IT'S ABOUT $50 A DAY.

AND, YOU KNOW, WHEN WE LOOK AT THE OVERALL FUNDING, OF COURSE, OVER THE COURSE OF A YEAR AND I INCLUDE THE TIFF BECAUSE IT'S REALLY DIFFICULT TO SEPARATE, WE GET ABOUT $8,300 PER STUDENT IN ATTENDANCE OVER THE COURSE OF A YEAR.

THE STATE FUNDING FORMULA, WHICH IS DEFINED BY THE STATE, IT'S TAXES, TAX RATE AND ATTENDANCE IS ABOUT $68 MILLION.

THAT'S ABOUT WHAT WE GET.

AND SO 1% OF THAT, IF WE COULD INCREASE THE ATTENDANCE PERCENTAGE BY ONE ONE PERCENTAGE POINT, THAT'S ABOUT $680,000.

WE'RE AT ABOUT 95%, WHICH IS GOOD.

BUT AGAIN, IF WE CAN INCREASE THAT, THAT GETS US TO ABOUT ANOTHER $680,000 PER DAY, APPROXIMATELY $50 PER STUDENT PER DAY.

AND TO YOUR POINT, IF THOSE STUDENTS AREN'T PRESENT AT 1020 FOR THE OFFICIAL ATTENDANCE TAKING TIME IN 20 A.M., 10:20 A.M..

YES, SIR. THEN WE DON'T GET PAID FOR THAT STUDENT FOR THAT DAY.

SO IF THAT STUDENT ARRIVES AT 1030, EVEN IF THAT STUDENT ARRIVES AT 1030.

SO EVEN IF THAT'S AN EXCUSED ABSENCE.

SO IT DOESN'T MATTER, EVEN IF IT'S EVEN IF THE STUDENT IS AT THE DOCTOR, THOSE STUDENTS, THEY'RE NOT COUNTED PRESENT.

SO IT DOES AFFECT US FROM A FUNDING STANDARD? YES, SIR, IT DOES. DOES NOT PLAY ANY ROLE IN OUR FUNDING.

WOULD IT BE FAIR TO SAY, AND I DON'T MEAN TO BE TRITE ABOUT THIS, BUT IF YOU ARE A PARENT AND YOU WANT TO SAY, HOW DO I HOW CAN I HELP HAVING APPOINTMENTS OF ANY TYPE EARLY IN THE MORNING AND NOT HAVING YOUR STUDENT IN THEIR CLASS, BUT YOU KNOW, WOULD BE A DETRIMENT, IS THAT CORRECT? ABSOLUTELY.

OKAY. SO, YEAH, DOCTOR'S APPOINTMENTS, TUTORING, ANYTHING BASICALLY UNDER THE SUN WOULD BE BEST IF YOUR STUDENT CAN BE IN CLASS AND THEN HAVE THAT ANY TIME AFTER 1030.

AND SO AND SO.

SAY THAT AGAIN, MR. JOHNSON WE'RE ABOUT RUNNING AT ABOUT 95%.

ADA. IF WE WERE TO INCREASE THAT BY JUST 1% OF 96%, WHAT WAS THE DOLLAR AMOUNT THAT YOU GAVE US? ABOUT $680,000, $680,000 IN OUR POCKETS.

AND SO, YOU KNOW, GOING BACK TO WHAT DR.

LEDBETTER JUST SAID, YOU TAKE YOUR YOUR CHILDREN ON A VACATION TO DISNEY WORLD FOR THE WEEK.

THAT'S DURING SCHOOL, EVEN THOUGH, I MEAN, THAT'S TOTALLY COUNTS AS NOT ATTENDANCE.

YOU DON'T GET CREDIT FOR THAT.

YOU'RE THERE'S NO $50 A DAY FOR THOSE STUDENTS THAT MISS.

CORRECT? VERY CORRECT.

YES, SIR. LOYAL DRAGON PARENTS LEAVE FOR VACATION AFTER 1030 ON A FRIDAY.

PLEASE, PLEASE, PLEASE, PLEASE, PLEASE, PLEASE OR SCHEDULE YOUR APPOINTMENTS EARLY IN THE MORNING OR LATE LATE IN THE AFTERNOON, BEFORE SCHOOL OR AFTER THEY'RE THERE AT 1030.

ABSOLUTELY. ABSOLUTELY.

EXCELLENT POINTS.

EXCELLENT POINTS. AND MR. JOHNSON, BEFORE YOU MOVE OFF THE SLIDE, I DO HAVE A QUESTION ABOUT ATTENDANCE.

I KNOW WE'VE BEEN OR NOT ATTENDANCE ENROLLMENT.

I KNOW THAT WE'VE BEEN VERY OPTIMISTIC IN THE LAST 2 OR 3 YEARS, AND WE'VE CHOSEN TO PROJECT IN OUR BUDGET HIGHER NUMBERS THAN WE ACTUALLY REALIZED IN ENROLLMENT.

AND I GUESS THE FIRST QUESTION I HAVE IS.

WHAT ARE WE CURRENTLY RUNNING AT IN ENROLLMENT? DO WE HAVE THAT NUMBER RIGHT NOW? I KNOW THAT PEOPLE ARE ENROLLING ALL THE TIME, BUT DO WE KNOW WHERE WE STAND WITH ENROLLMENT RIGHT NOW? I THINK THAT I GOT AN EMAIL EARLIER TODAY, AND I THINK BASED ON THE INFORMATION WE WERE AT ABOUT THERE WERE KNOWNS AND THEN WHAT WE HAD AND I THINK THAT NUMBER WAS ABOUT 84, 15, I BELIEVE. AND SO IT'S SLIGHTLY OVER 8400.

[00:20:03]

SO UNTIL THE STUDENTS SHOW UP, ESPECIALLY AT THE SECONDARY LEVEL, WE WILL KNOW.

WE WILL NOT KNOW FOR SURE PROBABLY UNTIL A FEW DAYS INTO THE.

OKAY, I UNDERSTAND. SO THE 8442, IS THAT WHAT WE FINISHED THE YEAR WITH LAST YEAR? THAT'S WHAT WE PROJECTED.

NO, THAT'S NOT WHAT WE FINISHED THE YEAR.

AND I THINK WHAT WE FINISHED THE YEAR IN IT WAS JUST AROUND 8300.

OKAY. SO WE FINISHED THE YEAR AT 8300.

WE'RE PROJECTING 8000 FOR 22.

AND YOU KNOW, THE REASON I'M ASKING THIS IS BECAUSE AT THE END OF THE LAST COUPLE OF YEARS, WE'VE ALWAYS HAD A HIT BECAUSE WE HAD A HIGHER PROJECTION.

AND SO I GUESS I'M ONCE AGAIN CONCERNED ABOUT BEING TOO OPTIMISTIC, PROJECTING A HIGHER NUMBER AND THEN NOT REALIZING THAT OUR BUDGET IS BASED ON AN OPTIMISTIC PROJECTION, YOU KNOW, UNDERSTANDABLE.

AND SO, AGAIN, I'M GOING TO GO BACK TO SAY WHAT WHAT I BASED THE ADA ON, BECAUSE WE DID DO THINGS A LITTLE BIT DIFFERENT IN THE 2324 CYCLE I USED I USED WHAT I THOUGHT WAS A CONSERVATIVE.

SO IT'S ABOUT 94.2% OF 79.

39 IS ABOUT 84.2.

2% IS ABOUT.

94.2% OF 8422.

SO IT'S A LITTLE BIT BELOW THE 95% THRESHOLD.

AND AGAIN, WE DID ALLOW OR WE ARE ALLOWING FOR OPEN TRANSFERS.

SO I FEEL LIKE IT'S PROBABLY REALLY I WOULD BE HARD PRESSED TO FIND ANOTHER POSITION WHERE I WOULD GO WITH ANYTHING ELSE AT THIS POINT.

I UNDERSTAND. LET ME JUST ASK ONE OTHER QUESTION.

I KNOW THAT EVERYBODY IS WELL AWARE THAT WE APPROVED FOR WESTLAKE VACCARO TO BE ELIGIBLE TO ENROLL IN SCHOOL HERE.

I HEARD A NUMBER A MONTH AGO, AND I DON'T THINK IT WAS A VERY HIGH NUMBER.

I'M JUST CURIOUS, WHERE DO WE STAND WITH THAT NEW POPULATION OF STUDENTS ENROLLING AT THIS POINT? DO WE KNOW WHAT THAT NUMBER IS RIGHT NOW? RIGHT NOW, WE HAVE EXACTLY 25 STUDENTS COMING TO US FROM WESTLAKE.

OKAY. OKAY.

THANK YOU, MR. JOHNSON. YES, SIR.

THANK YOU. AND AGAIN, JUST TO RECAP SOME OF THE ACTUAL CHANGES, ACTUAL REDUCTIONS WE DID IN THE BUDGET IN THE CURRENT CYCLE.

WE STARTED THIS OBVIOUSLY BACK IN IN FEBRUARY, MARCH TIME FRAME.

WE REMOVED VACANCIES, POSITIONS THAT WE HAD WOULD HAVE FILLED OTHERWISE CHOSE NOT TO.

THAT'S ABOUT 600,000.

THE STAFFING EFFICIENCY PLAN.

AGAIN, WHAT WE WENT THROUGH WITH SETTING STANDARDIZATION, USING THE MOAT, USING THE DATA ANALYSIS THAT THOSE FOLKS PERFORM FOR US, WE REDUCED BY 1.6 MILLION AND THEN REMOVING THE PLC AND TIMING PERIODS GRADES FIVE THROUGH EIGHT.

SO WE'VE HAD SOME PRETTY SUBSTANTIAL REDUCTIONS IN THE BUDGET OVER THE COURSE OF THIS LAST BUDGET CYCLE.

MR. JOHNSON. JUST ONE LAST QUESTION.

RELATIVE TO THE ENROLLMENT AND THE NUMBER OF TEACHERS AS IT APPLIES TO VACANCIES.

SO IN THE EVENT THAT WE ARE UNDER OUR PROJECTION AT THE BEGINNING OF THE YEAR BY ANY SIGNIFICANT NUMBER, DOES THAT MEAN THAT ARE THERE STILL POSITIONS THAT AREN'T FILLED THAT WOULDN'T BE FILLED IF WE DON'T HAVE THE ADDITIONAL STUDENTS ENROLLING? I THINK THE CHALLENGE WITH REDUCING THOSE POSITIONS IS THEY'RE NEVER GOING TO HAPPEN WHERE IT'S MOST CONVENIENT.

IN OTHER WORDS, YOU MIGHT HAVE A CLASS OF 17 OR 18 AND MAYBE WE BUDGETED AT 22 TO 1.

SO, YOU KNOW, CLASSES ARE PRETTY MUCH SET AND IT'S REALLY HARD TO WHAT SOME SOME SCHOOL DISTRICTS DO IS THEY CALL LEVELING.

SO IF THEY HAVE 16 AND 15 AND 14, THEY'LL CRUNCH THOSE THREE CLASSES AND ELIMINATE A POSITION.

SOMETIMES THAT HAPPENS.

I DON'T KNOW THAT WE HAVE THE OPPORTUNITY TO HAVE THAT.

WE'VE CERTAINLY NOT DISCUSSED THAT.

BUT EVEN IF YOU FILLED ALL YOUR POSITIONS, YOU DO HAVE SOME ATTRITION THROUGHOUT THE YEAR.

AND IF YOU DIDN'T NEED AS MANY TEACHERS BECAUSE YOU DON'T HAVE AS MANY STUDENTS ENROLLED, THEN YOU COULD BACK OFF OF THE NUMBER OF STAFF THAT YOU HAD.

IF THERE WASN'T ENOUGH STUDENTS, THAT'S ACCURATE.

WE WOULD NOT NECESSARILY HAVE TO FILL POSITIONS.

BUT AT THIS POINT, ANY TEACHER THAT WE HAVE IS UNDER CONTRACT.

SO AT THIS POINT, WE'RE NOT WE WOULD NOT BE ABLE TO REDUCE ONCE WE SEE OUR STUDENT ENROLLMENT JUST BECAUSE OF CONTRACTS.

OKAY. THANK YOU.

AND SO THIS IS THE SLIDE THAT YOU'VE SEEN A COUPLE OF TIMES AT THIS POINT.

WE'VE GOT OUR BUDGET FOR THE CURRENT YEAR, WHICH IS BALANCED.

WE PROJECTED OUT WE TALK A LITTLE BIT ABOUT THE DIFFERENCE.

EVEN THOUGH WE HAVE A DROP IN ADR, WE DO HAVE AN INCREASE IN THE INTEREST EARNINGS, WHICH REALLY KIND OF HELPED US ON THAT.

A LITTLE BIT OF MODERATE CONSERVATIVE BUDGETING ON SOME OF THE OTHER ITEMS. SO WE'RE PROJECTING ABOUT A THREE, THREE AND ONE HALF MILLION DOLLARS DEPENDING ON SOME THINGS THAT THAT HAPPEN THROUGH THE CLOSURE OF THIS YEAR.

WHAT I BROUGHT TO YOU ON THE JULY 24TH AND IT'S IN THE JULY PRELIMINARY COLUMN, IS A $3.3 MILLION BUDGET.

SO WHAT WE'VE SINCE DONE, I'VE WORKED WITH OUR HR TEAM AND WHAT I CALL A REFRESHED DATA REFRESH.

SO AS YOU HAVE PEOPLE LEAVE, YOU HAVE THEM, YOU RECALCULATE BASED ON THE NEW POPULATION THAT THAT REDUCES SOME RIGHT.

[00:25:03]

RIGHT. HISTORICALLY I CAN SAY THAT THAT I'LL, I'LL HAVE 100% STAFFING POOL.

AND THEN AS THAT DATA PERFORMS OVER THE COURSE OF THE YEAR, YOU'LL HAVE VACANCIES, YOU'LL HAVE PEOPLE THAT DON'T SHOW UP, YOU'LL HAVE ALL OF THOSE.

AND SO I DID A 2% DEDUCTION ON THAT BECAUSE THAT I FEEL COMFORTABLE WITH THAT, KNOWING THAT IF WE HAVE AN ISSUE AND THAT WE DO FILL THOSE POSITIONS THAT WILL HAVE A CONVERSATION. AGAIN, I'M TRYING TO ALIGN THE BUDGET WITH EXPECTED OUTCOMES, TRYING NOT TO PAT IT, SO TO SPEAK.

THIS SEEMS TO BE A LITTLE CONSERVATIVE, 2%.

I MEAN, 98%.

IT DOES.

IT'S. STILL PRETTY? IT DOES IN MY MIND. OKAY.

SO AND THEN WE WE GOT THE FINAL DATE OF THE CURRENT PRELIMINARY.

AND SO TRUSTEE YEAGER, TO YOUR POINT, RIGHT NOW, WE'VE GOT RECAPTURE GOING REALLY IN ABOUT HALF.

ABOUT HALF. AND SO AND AGAIN, I THINK IT'S IMPORTANT TO REMEMBER THAT THAT WE IN CALCULATING THAT NUMBER, IF THOSE PROPERTIES ARE UNDER PROTEST, WE REMOVE SOME OF THOSE PROPERTIES FOR REVENUE CALCULATIONS.

THAT'S AS WE GOT THE INFORMATION FROM TARRANT APPRAISAL DISTRICT.

AND SO THAT NUMBER LIKE WE SAW THIS LAST YEAR, IT WENT FROM ONE VALUE IT BUDGET ADOPTION TO TO A DIFFERENT VALUE AT THE MID-YEAR ANALYSIS.

AND SO IT DEPENDS ON A LOT OF MOVING PARTS.

AND SO THAT REALLY MEANS ABSOLUTELY NOTHING TO THE DISTRICT, RIGHT? BECAUSE WE GET MONEY ON A CAP PER STUDENT.

CORRECT. AND ONCE WE REACH THAT IN PROPERTY TAXES, EVERYTHING ABOVE THAT CAP GETS SENT BACK TO THE STATE, CORRECT? RIGHT. OKAY. ABSOLUTELY.

AND SO, MR. JOHNSON, JUST FIRST OF ALL, HUGE COMPLIMENT ON ACTUALLY GOING IN THE LAST TWO WEEKS FROM, YOU KNOW, $3.3 MILLION DEFICIT TO ESSENTIALLY A BALANCED BUDGET.

I UNDERSTAND WHY AND HOW WE DID THAT.

SO JUST THANK YOU FOR THE TEAM WORK YOU'VE DONE TO GET TO THAT POINT.

BUT SINCE WE'RE TALKING ABOUT THE REDUCTION IN THE ROBIN HOOD RECAPTURE NOT HAVING ANY EFFECT, WE STILL BECAUSE THE BASIC ALLOTMENT WAS NOT INCREASED.

IT DOESN'T REALLY CHANGE THE PICTURE FOR NEXT YEAR.

IT MIGHT ALL THE THINGS YOU'VE DONE HELP FOR THE CURRENT SCHOOL YEAR WE'RE FACING, BUT WE'RE STILL GOING TO HAVE A PROBLEM WITH FUNDING AT LEAST A YEAR FROM NOW THAT WE'RE GOING TO HAVE TO DEAL WITH.

THAT IS CORRECT. THAT IS CORRECT.

THANK YOU. AND SO, AGAIN, THE NUMBERS CHANGE.

THERE'S AN ENORMOUS AMOUNT OF CALCULATION CHALLENGES, YOU KNOW, WITH WITH THE HOUSE BILL, WITH THE SENATE BILL TWO, THERE HAVE STILL BEEN SOME CHALLENGES FROM THE INFORMATION THAT WE USE TO CALCULATE THAT.

THAT SAID, GENERALLY SPEAKING, WHAT YOU SEE AS NET OPERATING REVENUE DOESN'T CHANGE.

SO THE NUMBERS ABOVE THAT WILL EBB AND FLOW DEPENDING ON SOME SOME ASSUMPTION CHANGES AND SOME INFORMATION CHANGES, BUT OUR NET OPERATING REVENUE REALLY DOESN'T.

SO, UM, LET'S TALK A LITTLE BIT ABOUT THE DEBT SERVICE FUND REVENUE PROJECTION, THE NET TAX RATE 33, WHICH IS WHAT IT'S BEEN FOR SEVERAL YEARS, PLUS STATE AID FOR HOMESTEAD EXEMPTION OF 268,000.

SO AS AS LEGISLATION HAS INCREASED THE HOMESTEAD EXEMPTION, WE HAVE ISSUED DEBT.

THEY MAKE SURE THAT WE DON'T PENALIZE OR INCREASE HAVE TO INCREASE OUR PROPERTY TAX RATE TO ADJUST FOR WHAT THE LEGISLATURE HAS DONE WITH THE HOMESTEAD EXEMPTIONS.

THAT'S WHAT THE ADDITIONAL ADDITIONAL STATE AID FOR HOMESTEAD EXEMPTIONS IS.

PENALTY AND INTEREST FOR A TOTAL ANTICIPATED REVENUE OF ABOUT 39.6.

THE DEBT OBLIGATIONS ARE 26.7.

THAT DECREASES, AS YOU WELL KNOW, WITH EACH YEAR AS YOU PAY DEBT OFF FOR A TOTAL EXPENDITURE PROJECTION OF 26.8 DEBT DEFEASANCE.

AND I'M STILL WORKING ON DEBT.

DEFEASANCE I'VE WORKED WITH OUR FINANCIAL ADVISORS AND BOND COUNSELORS.

HAVE A LITTLE BIT MORE INFORMATION FOR YOU ON THAT AT OUR NEXT MEETING.

AND THEN OF COURSE WE DON'T GET THE EDA OR THE IFA, WHICH ARE ADDITIONAL SUPPLEMENTAL FUNDING SOURCES FOR OUR DEBT SERVICE, THE PROJECTED TAXABLE VALUE.

NOW TO GO BACK A LITTLE BIT TO THE CERTIFIED VALUES AND TAXABLE VALUES.

SO AGAIN, WITHIN THE DATA SETS WE GET, YOU KNOW, THERE ARE DIFFERING DIFFERING NUMBERS AND BASIS OF COMPARISON FOR THOSE DATA SETS.

SO I SAID CERTIFIED VALUE, WHICH INCLUDES SOME OF THE FROZEN PROPERTY THAT'S NOT 100% TAXABLE.

THIS CONVERTS ALL OF THAT TO TAXABLE.

SO IT'S A LITTLE BIT DIFFERENT DATA SET AND WE USE THEM FOR DIFFERENT PURPOSES, BUT HOPEFULLY THAT THAT HELPS PEOPLE.

THAT SAID, WELL, YOU SAID IT WAS 12.9 ON THE OTHER.

WELL, I DID AND HERE IT'S A LITTLE BIT DIFFERENT BECAUSE OF WHAT I JUST EXPLAINED.

SO WE'VE GOT THE DEBT SERVICE TAX REVENUE, THE ADDITIONAL STATE AID FOR THE HOMESTEAD EXEMPTION, SLASH LEGISLATIVE CHANGES OVER TIME, PENALTIES AND INTEREST FOR JUST UNDER $40 MILLION. RIGHT NOW.

WE'VE GOT WELL, RIGHT NOW IT'S THE ANNUAL PRINCIPAL PAYMENTS.

[00:30:03]

WE HAVE DEBT SERVICE FEES THAT WE PAY OUR PAYING AGENTS.

SO WE'VE GOT ANNUAL DEBT SERVICE OF ABOUT 26.8.

AND RIGHT NOW I'M PROJECTING NET EXCESS REVENUE THAT WE WOULD USE FOR DEBT DEFEASANCE IF THAT IS THE BOARD'S DECISION IN CHOICE AND I WILL WORK WITH WITH BOND, LIKE I SAID, BOND COUNSEL AND OUR FINANCIAL ADVISORS IN COMING UP WITH A PLAN FOR THAT AND PRESENT THAT INFORMATION AT OUR NEXT MEETING, WHICH WILL BE ON ON AUGUST 21ST.

MR. JOHNSON. YES, SIR.

THIS YOU KNOW, WHEN YOU LOOK AT A NET REVENUE OVER EXPENDITURE AND THE PUBLIC UNDERSTANDS THE PLAN, RIGHT, TO PAY DOWN OUR DEBT AT THE NEXT CALL AND TO SAVE US MILLIONS OF DOLLARS, WHAT MIGHT BE LOST HERE, ESPECIALLY FOR PEOPLE WHO MAY BE NEW TO THE COMMUNITY, WHAT IS OUR CURRENT DEBT? I WOULD HAVE TO GET THAT.

DON'T HAVE THAT RIGHT OFF THE TOP OF MY HEAD, TO BE PERFECTLY HONEST.

SORRY. OKAY.

IT'S PRESIDENT BRIAN, DO YOU RECALL THERE WAS A 282, WASN'T IT? 282 MILLION? I'M NOT IT.

I'M NOT SURE RIGHT OFFHAND.

I'LL HAVE THAT INFORMATION FOR THE NEXT.

OKAY. SO AS GOOD AS THIS SOUNDS, THERE'S STILL TWO AROUND $282 MILLION OF DEBT THAT WE HAVE.

THERE'S A SUBSTANTIAL AMOUNT.

YES, SIR. OKAY. DON'T KNOW WHAT TWO OF THE DOLLAR, BUT.

YES, SIR. AND THEN WE'VE GOT THE SUBSTITUTE.

AND I KNOW THAT THAT WE'RE GOING TO COME TO YOU ON ON THAT HERE IN ONE OF THE NEXT AGENDA ITEMS. AND SO WE'VE LOOKED AT THE DATA RATE INCREASE TO TRY TO GET US CURRENT TO NEIGHBORING DISTRICTS TO COMPETE WITH SUBSTITUTES.

WE'RE RECOMMENDING THAT WE GO TO THE $20 A DAY, WHICH IS INCLUDED IN THE BUDGET FIGURES THAT I JUST SHARED WITH YOU.

THE $356,356,000 INCREASE IS IN IS FACTORED IN THAT.

AND SO RIGHT NOW WE'VE GOT ABOUT A 77% FILL RATE.

DR. SMALSKAS'S WILL COME TO YOU WITH A RECOMMENDATION, I BELIEVE, ON THAT HERE IN A MOMENT.

THE ANALYSIS WAS DONE.

I'LL LET HER GO OVER THAT A LITTLE BIT MORE IN DEPTH.

BUT SUFFICE IT TO SAY, WITH THE 77% FILL RATE AND A CHANGE IN SOME OF THE THINGS THAT WE DID STRUCTURALLY WITH THE STAFFING, WE DON'T HAVE THE ABILITY TO FILL FROM WITHIN OUR EXISTING STAFF LIKE WE HAVE HISTORICALLY.

THE NEXT STEPS ARE BUDGET MEETING ON AUGUST 21ST FOR THE PUBLIC HEARING AND BUDGET ADOPTION, AND THEN WE WILL HAVE THE TAX RATE ADOPTION AS WELL.

HAPPY TO ANSWER ANY QUESTIONS.

MR. JOHNSON. I DO WANT MR. BRYANT, IF I COULD CLARIFY ONE POINT.

WE WERE TALKING ABOUT ENROLLMENT.

SO WE FINISHED THE YEAR LAST YEAR WITH 8490.

SO THERE'S, THERE'S SOME QUESTIONS ABOUT WHERE WE WHERE WE ENDED THE YEAR.

SO 8490. RIGHT NOW WE'RE LOOKING A LITTLE BIT OVER A LITTLE BIT OVER 8400, 8415, SOMEWHERE IN THERE.

OF COURSE, THAT IS NOT A THERE'S SO MUCH FLUCTUATION THAT OCCURS BETWEEN NOW AND PROBABLY THE END OF THAT FIRST WEEK OF SCHOOL AS WE GET STUDENTS IN.

HAVE. WE'LL HAVE MORE ACCURATE NUMBERS FOR YOU ON THE AUGUST 21ST MEETING.

SOUNDS GOOD. THANK YOU, DR. LEDBETTER.

ANY OTHER QUESTIONS FOR MR. JOHNSON? THANK YOU, MR. JOHNSON. MOVING ON TO ITEM NUMBER SEVEN OF OUR AGENDA DISCUSSION AND ACTION SECTION 7A, CONSIDER FOR APPROVAL DISTRICT INSURANCE COVERAGE.

[7. DISCUSSION / ACTION]

SORRY.

OKAY. A QUICK RECAP ON WHAT WE'VE DONE.

AGAIN, I THINK IT WAS A VERY ROBUST PROCESS.

WE STARTED WITH A REQUEST FOR PROPOSALS FOR ALL LINES OF INSURANCE THAT WAS STARTED ON MAY.

IT WAS ISSUED MAY 4TH, CLOSED ON JULY 19TH, EVALUATED JULY 20TH.

A NUMBER OF VENDORS WERE REPORTED OR WERE INVITED TO RESPOND, 60 REGISTERED, 35 EXTERNAL INVITES.

NUMBER OF RESPONSES RECEIVED SIX AND NUMBER OF RESPONSES REJECTED ZERO.

AND I THINK IT'S IMPORTANT TO NOTE THAT WITH ALL OF THOSE EXTERNAL INVITES INVITES, WE SPENT A SUBSTANTIAL AMOUNT OF EFFORT TRYING TO REACH OUT TO THOSE WHO GENUINELY PARTICIPATE IN THESE PROCESSES.

SO WE DID NOT GET A HUGE RESPONSE.

BUT I WILL TELL YOU THAT IN TALKING TO NEIGHBORING CFOS, THE INSURANCE MARKET IS TOUGH.

WE JUST SIMPLY DON'T HAVE A LOT OF WHAT A LOT OF RESPONSES.

AND THAT IS CONSISTENT WITH WHAT WE'RE SEEING IN THE MARKET.

AGAIN, I'LL GO BACK TO THE PROCESS, VERY WELL ADVERTISED, VERY WELL SOLICITED, JUST VERY, VERY MUCH WHAT WE'RE SEEING IN THE MARKET AS FAR AS THE RESPONSE IS INDUSTRY WIDE.

I WENT THROUGH AND I HIGHLIGHTED THE PCAT, PROPERTY CASUALTY ALLIANCE OF TEXAS.

THEY WERE THE ONLY ONES TO SUBMIT ON PROPERTY.

WHEN THEY SUBMITTED THEIR PROPOSAL, THEY MADE THEIR PROPOSAL IN A WAY THAT REALLY ELIMINATED THE OPPORTUNITY TO SELECT OTHER COVERAGES THAT THEY WERE PROPOSING ON.

[00:35:10]

SO THE OPTION WAS TO EITHER GO BACK OUT ON THE MARKET AND THERE REALLY ISN'T SUFFICIENT TIME.

THIS IS A VERY LENGTHY, VERY INVOLVED PROCESS WHERE WE CONTACT VENDORS AND YOU REALLY DON'T HAVE A LOT OF TIME TO DO THAT.

AND SO MY RECOMMENDATION ARE THE HIGHLIGHTED COVERAGES UNDER THAT PCAT ACCORDINGLY.

AND THEN ON THE WORKER'S COMP, TASB DID AN ALL OR NONE MUCH LIKE PCAT DID.

THEY BUNDLED THEIRS WITH WORKER'S COMP.

SO YOU'VE GOT TWO COMPETING ENTITIES THAT HAVE ALL OR NONE.

AND SO WHERE I CAN INCLUDE PCAT IN THE WORKER'S COMP COVERAGE, I COULD NOT INCLUDE TASB BY VIRTUE OF THEIR ALL OR NONE PROPOSAL.

IT WAS LEGAL, IT WAS COMPLIANT.

WE HAD WAIVERS OF EVALUATION.

WE GO THROUGH A VERY, VERY RIGOROUS EVALUATION PROCESS THAT SAID, WHEN YOU'RE LIMITED, LIKE WE ARE LIMITED IN THIS INSTANCE, YOU CAN'T CHOOSE WHAT IS NOT ALLOWABLE PER THE TERMS OF THE SUBMISSIONS BY THOSE FOLKS WHO ARE DOING IT.

RH SB WE LANDED ON RH.

SB ON WORKER'S COMP.

I LOOKED AT A SUBSTANTIAL AMOUNT OF ANALYSIS, PERFORMED A SUBSTANTIAL AMOUNT OF ANALYSIS, AND YOU'VE GOT TWO OPTIONS WITH WORKER'S COMP.

YOU'VE GOT A FULLY INSURED AND THEN YOU'VE GOT A COST PLUS.

AND WHAT YOU HAVE TO WEIGH IS YOU CAN BENEFIT FROM THE COST.

PLUS, IF YOU DON'T HAVE A MAJOR CLAIM, IT'S JUST YOU'RE GOING TO PAY AN ADDITIONAL SUPPLEMENTAL ABOVE YOU'RE GOING TO PAY A WHOLE LOT MORE, IF YOU HAVE THAT CLAIM WHERE MAYBE WITH THE FULLY INSURED OPTION, MAYBE YOU PAY A LITTLE BIT MORE, BUT YOUR RISK IS ELIMINATED, YOUR RISK IS ELIMINATED.

AND SO ULTIMATELY, THAT'S WHERE I LANDED ON THAT.

BASED ON THE ANALYSIS, WAS THERE UPSIDE? THERE WAS SOME POTENTIAL UPSIDE.

THE DOWNSIDE, WERE WE NOT ABLE TO ACHIEVE THE UPSIDE WAS FAR MORE COSTLY THAN I THOUGHT.

IT WAS PRUDENT TO RISK, QUITE HONESTLY.

SO DID A LOT OF ANALYSIS ON THAT.

THEN WE'VE GOT WHAT I WOULD CALL THE ONE OFFS, WHICH IS THE MEDICAL STUDENT INTERNS.

WE'VE GOT THE STORAGE TANK LIABILITY, WE'VE GOT CATASTROPHIC ACCIDENT, WHICH IS FOR STUDENT INSURANCE, AND THEN WE'VE GOT VIOLENT ACTS.

SO. SO CAN YOU GO BACK? MR. JOHNSON? YES, SIR.

I MEAN, ALL THE OTHER COSTS SEEM DE MINIMIS COMPARED TO THE PROPERTY AND THE WORKER'S COMP.

AND I JUST WANT TO MAKE SURE THAT WE'RE CLEAR THAT FOR FOR PROPERTY INSURANCE WE USE WE'VE USED PCAT RIGHT.

FOR THE PREVIOUS HOWEVER MANY YEARS.

AND SO THEY PRETTY MUCH HAVE A MONOPOLY, I GUESS, ON THE INSURANCE FOR PROPERTIES.

PROBABLY ONE OF THE REASONS WHY SOME OF THESE INSURANCE COMPANIES WEREN'T ABLE TO.

WELL, LET ME CAN I TALK A LITTLE BIT ABOUT CAN I TALK A LITTLE BIT TO THAT? SO SO I HAVE CONVERSED A LITTLE BIT AND THANKS FOR BRINGING THAT UP BECAUSE PCAT WRITES ABOUT 150 OF THE EXCESS PROPERTY INSURANCE IN TEXAS.

THERE'S ABOUT 1060 DISTRICTS.

THERE ARE MULTIPLE POOLS.

AND WE SOLICITED SOME OF THESE OTHER POOLS IN TRYING TO GET A BID FOR FOR US, WHAT I CAN SAY IS THAT THEY PLACED PROPERTY IN NORTH AMERICA SOLUTIONS, WHICH IS THE AGENT THAT WORKS ON BEHALF OF PCAT PLACES INSURANCE IN SEVERAL MARKETS.

IN EVERY CASE THIS YEAR IN WHICH IT INCLUDES MORE THAN 50 RENEWALS PRIOR TO.

FIRST, PCAT HAD A LOWER PREMIUM AND LOWER WIND AND HAIL DEDUCTIBLE THAN THE OPEN MARKET.

SO I THINK WE'RE GETTING A GOOD PRODUCT.

AND SO THEY DO HAVE A LARGE SHARE, BUT THERE ARE OTHERS THAT WERE ALLOWED AND WE SOLICITED AND WE TRIED TO GET THOSE FOLKS TO TO BID.

BUT, YOU KNOW, AT THE END OF THE DAY, I GUESS, YOU KNOW, THEY CHOSE NOT TO.

WE'RE BENEFITING FROM OUR TENURE WITH PCA.

IF PCA WERE QUOTING 60 AS A NEW MEMBER BECAUSE WE'VE BEEN WITH THEM FOR THREE YEARS, THE WIND AND HAIL DEDUCTIBLE WOULD HAVE BEEN 30% HIGHER AND AT A HIGHER PRICE.

SO I THINK WE'VE BENEFITED FROM THIS.

I THINK WE HAD A ROBUST PROCESS.

I THINK WE GOT A ALTHOUGH WE DIDN'T GET A HUGE RESPONSE, I THINK THAT'S CONSISTENT.

BUT I DO THINK WE DID GET A GOOD RESULT GIVEN THAT.

AND SO IF YOU LOOK AT THE WHOLE PACKAGE, I THINK THAT REALLY WE'RE WE'RE DOING GOOD ON THE INSIDE.

SO YOU CHECKED WITH OTHER DISTRICTS THAT USE PCA FOR PROPERTY, AND THIS IS COMPARABLE TO THEIR PERCENT INCREASE FROM A YEAR AGO, CORRECT? YES. AND I LOOKED AT TWO NEIGHBORING DISTRICTS AT 45% AND 42, 40, 45 AND 47.

OUR OVERALL IS ABOUT 42.

SO WE'RE REALLY IN THE GRAND SCHEME OF THINGS, WE'RE A LITTLE BIT BELOW SOME OF THE PEERS.

BUT YOU KNOW, A LOT OF THE PEERS, NEIGHBORING DISTRICTS DID SEE SUBSTANTIAL INCREASES.

THERE WERE SOME SOME DISTRICTS IN SOUTH TEXAS WHOSE PROPERTY AND LIABILITY DOUBLED.

SO IT'S JUST THE MARKET WITH THE CLAIMS IS JUST, YOU KNOW, THE HAIL CLAIMS THAT ARE THAT ARE PREVALENT IN NORTH TEXAS.

[00:40:01]

RIGHT. AND SO FROM YOUR RISK ANALYSIS, MOVING ON TO WORKER'S COMP, YOU REALLY FELT LIKE GOING WITH THE FIXED COSTS VERSUS THE COST PLUS WAS THE WAY WE SHOULD GO IN TERMS OF RISK.

CAN YOU TALK ABOUT THAT JUST A LITTLE BIT? YES, I'M HAPPY TO COSTS.

YEAH. AND SO THE WAY A COST PLUS PROGRAM WORKS IS WE'RE GOING TO PAY ON THIS ONE.

IF WE CHOSE THE COST PLUS PROGRAM, WE'D PAY $82,704.

YOU'RE GOING TO PAY THAT REGARDLESS OF WHAT YOUR CLAIMS ARE.

BUT THEN THE LOSS FUND IS CLAIMS, CLAIMS YOU ACTUALLY PAY.

SO IF SOMEBODY FALLS, SLIPS AND WE HAVE TO PAY EXPENDITURES ON THEM, THAT'S 320,000.

THE COMBINATION OF THOSE TWO 403,000.

SO A LITTLE BIT LESS THAN TWICE WHAT OUR OUR FULLY INSURED OPTION IS.

AND SO WE WERE A LITTLE BIT BELOW THE $200,000 AS FAR AS AS THE BLENDED PROGRAM HISTORICALLY PROVIDED.

IT'S JUST YOU'VE GOT TO ASK YOURSELF WITH THE EBBS AND FLOWS OVER TIME, ARE YOU WILLING TO RISK MAYBE SAVING 20 OR $30,000 THAT THE POTENTIAL COST OF MAYBE DOUBLING YOUR YOUR WORKER'S COMP EXPENSE AND SO BATTLE WITHOUT A LOT TALK TO OUR OUR INSURANCE CONSULTANT AND LANDED THAT THAT THAT'S WHERE I THAT'S WHERE I LANDED AT THE END OF THE DAY SO MR. JOHNSON I UNDERSTAND THE DIFFERENCE AND JUST FROM A PRIVATE INDUSTRY PERSPECTIVE I'M A LOT MORE COMFORTABLE WITH A FULLY INSURED PACKAGE VERSUS A COST PLUS BECAUSE OF IT'S SO UNPREDICTABLE.

BUT I'M CURIOUS, SINCE I SEE OTHER PROVIDERS ON THE LIST LIKE INSURANCE ONE AT 184 VERSUS 215, WHY GO WITH RSTP? IS IT BUNDLED WITH THE OTHER THINGS? IT'S NOT BUNDLED. AND THANKS FOR BRINGING THAT UP BECAUSE WE HAVE AN EVALUATION METRIC THAT GRADES ALL OF THE COMPONENTS OF THE PROPOSAL.

AND SO THEY'RE GOING TO LOOK AT PRIOR EXPERIENCE, THEY'RE GOING TO LOOK AT INDUSTRY EXPERIENCE, THEY'RE GOING TO LOOK AT A PLETHORA OF CRITERIA THAT WE EVALUATE AGAINST THOSE. SO EVEN THOUGH THAT THE PRICE, WHICH WAS THE PRIMARY DRIVER IN OUR EVALUATION WAS WAS WAS DEFINITELY LOWER THAN THAN WHAT WE'RE SEEING WITH HSB BECAUSE OF THE OTHER COMPONENTS IN THE EVALUATION METRIC OR MATRIX WE CHOSE THE COMMITTEE CHOSE TO GO WITH A HIGHER ONE.

SO YOU'RE SAYING I THINK THAT THE POLICY OR THE PACKAGE THAT WE'RE BUYING IS A BETTER PACKAGE? YES, SIR. AND THAT'S WHY IT MIGHT BE A LITTLE HIGHER PREMIUM.

AND BY COMPARING WHAT'S INCLUDED IN THE LITTLE HIGHER AMOUNT, IT'S A BETTER DEAL FOR US.

YES, SIR. OKAY.

WHILE I WHILE I HAVE YOU, I'M CURIOUS.

FIRST OF ALL, I'M REALLY HAPPY THAT WE'RE BALANCING A BUDGET.

I SEE THAT THE TOTAL COST OF WHAT IS BEING RECOMMENDED HERE IS A LITTLE OVER 2 MILLION.

I KNOW THAT THERE WERE INCREASES IN LOTS OF INSURANCE CATEGORIES FROM LAST YEAR, BUT I DON'T RECALL WHAT THE NUMBER IS THAT WE PAID LAST YEAR FOR ALL THESE SAME COVERAGES. HAS IS IT A SIGNIFICANTLY MORE OR IS IT ABOUT THE SAME? WELL, NO, IT'S UP ABOUT 42%, SO IT'S SUBSTANTIALLY MORE.

BUT AGAIN, THAT'S WHAT WE'RE CONSISTENTLY SEEING ACROSS THE MARKET AND ACROSS THE METROPLEX.

OKAY. AND AGAIN, THIS IS THE 2.057 IS WHAT IS IN THE BUDGET.

YES, SIR, IT IS IN THE BUDGET.

OKAY. THANK YOU. I ALSO APPRECIATE, MR. JOHNSON THE BULLET POINTS AND FOR PEOPLE WHO MAY BE FOLLOWING, JUST AS A REMINDER, BECAUSE THE LAST MEETING WE TALKED ABOUT THIS AND THAT WAS PCAT THAT PROPERTY WHICH WE MUST HAVE, WHICH WE CAN'T WE TALKED ABOUT, WE CAN'T SELF-INSURE.

WE CAN'T FIND SOMEONE ELSE.

BUT EVERYTHING THERE UNDERNEATH THAT GENERAL LIABILITY DOWN TO AUTO THAT.

IS THAT ALL OR NONE? CORRECT. SO IF SOMEONE'S FOLLOWING ALONG AND SAYING, WELL, YOU KNOW, TRUSTEES, WHY DIDN'T YOU PICK SOMETHING FROM ONE OF THESE COLUMNS WE COULDN'T CORRECT? THAT WAS RESTRICTED BY THE PROPOSER? YES, SIR. AND JUST KIND OF A QUICK RECAP.

THREE YEAR INTER-LOCAL AGREEMENT WITH EARLY CANCELLATION PENALTY OF 20% IS $411,000.

IF WE WERE TO CHOOSE TO WITHDRAW.

WE'VE BEEN WITH THEM FOR THREE YEARS AND THEY HAVE HAD THE BEST RATES.

BUT THAT IS SOMETHING THAT WE HAVE TO DEAL WITH.

AGAIN, THEY'VE THEY'VE THEY'VE PROPOSED WELL, AND, YOU KNOW, WE'VE WE'VE BENEFITED FROM OUR PARTICIPATION IN THAT PROGRAM.

PROPERTIES $200 MILLION PER OCCURRENCE LOSS LIMIT.

AND AGAIN I WANTED TO PUT IN THERE THAT THEY HAVE PROVIDED PROPERTY INSURANCE FOR THE DISTRICT FOR THE PAST THREE YEARS, WHICH PROVED FINANCIALLY BENEFICIAL IN THIS LAST CYCLE.

RSSB WORKERS COMP, MEDICAL STUDENT INTERN AND STORAGE TANKS LIABILITY.

THE INTERLOCAL AGREEMENT WITH DEEP EAST TEXAS SELF INSURANCE WORKER'S COMPENSATION FUND.

WE'RE DOING THE FULL YEAR FULLY INSURED TWO YEAR GUARANTEED PREMIUM PAID ANNUALLY, NOT SUBJECT TO AUDIT AND BASED ON CLAIMS HISTORY.

IT REALLY IS. IT'S THE LEAST AMOUNT OF RISK AND I FELT COMFORTABLE AFTER DOING SOME MORE ANALYSIS AND HAVING SOME MORE CONVERSATIONS.

INSURANCE ONE FOR THAT COMPONENT VIOLENT ACTS.

[00:45:01]

ATHLETIC INSURANCE.

SO TONIGHT ASKING FOR APPROVAL FOR THE $2,057,000.

AND THEN WE WILL TOMORROW BEGIN NOTIFYING THOSE AWARDED VENDORS AND TRANSITIONING TO THE VENDORS, BECAUSE THERE'S A LOT OF ACTIVITY, OBVIOUSLY, WHEN YOU CHANGE INSURANCE COMPANIES WITH AN ENTITY OUR SIZE.

HAPPY TO ANSWER ANY QUESTIONS. MOVE TO APPROVE AS PRESENTED.

I SECOND THAT MOTION AND SECOND.

ANY FURTHER DISCUSSION? ALL RIGHT. ALL IN FAVOR.

MOTION CARRIES 5 TO 0.

THANK YOU, MR. JOHNSON.

THANK YOU. NEXT ITEM ON THE AGENDA IS SEVEN BE CONSIDER FOR APPROVAL OF POSITION OF ENERGY MANAGEMENT COORDINATOR.

THIS DR. SMOLSKIS.

GOOD EVENING, PRESIDENT BRIAN AND TRUSTEES.

SO THIS EVENING I'D LIKE TO CONSIDER APPROVAL OF A POSITION OF THE ENERGY MANAGEMENT COORDINATOR.

AND I JUST WANT TO GIVE YOU A LITTLE BIT OF BACKGROUND HERE.

THE MAINTENANCE AND OPERATIONS DEPARTMENT IS DEDICATED TO ENHANCING OUR ENERGY MANAGEMENT ACROSS THE DISTRICT, AIMING TO REDUCE ELECTRICITY EXPENSES SIGNIFICANTLY BY IMPLEMENTING A ROBUST ENERGY MANAGEMENT PROGRAM.

CAROL AIMS TO ACHIEVE A SUBSTANTIAL COST SAVINGS AND ALLEVIATE THE STRAIN ON THE BUDGET.

TAKING THE LEAD ON THIS ENDEAVOR WOULD BE AN ENERGY AND ENERGY MANAGEMENT COORDINATOR WHO WILL OVERSEE AND UPHOLD THE ENERGY PRACTICES THROUGHOUT THE DISTRICT.

THE FUNDING FOR THIS VITAL POSITION WILL BE GENERATED FROM THE COST SAVINGS ACHIEVED THROUGH THE REDUCED UTILITY EXPENDITURES MAKING IN A SUSTAINABLE AND EFFICIENT INITIATIVE FOR CAROL ISD'S FUTURE.

SO WITH THAT SAID, I MAKE A PROPOSAL TO APPROVE THE POSITION AS PRESENTED.

I'LL OPEN IT UP FOR QUESTIONS.

SO, MISS MISS MOSCHUS, HOW MUCH DO WE ANTICIPATE THE SAVINGS TO BE ON THIS OR COST AVOIDANCE? WOULD YOU LIKE TO? I'M GOING TO LET THE OPERATIONS TEAM HANDLE THAT QUESTION.

WHAT I CAN TELL YOU IS IT'S DIFFICULT AND I CAN'T GIVE YOU A DEFINED NUMBER AT THIS POINT IN TIME.

WHAT I CAN GIVE YOU IS MY PERSONAL EXPERIENCE WITH THESE TYPE PROGRAMS. I WAS AT A DISTRICT IN 2008 AND ENERGY HAD KIND OF DONE WHAT IT'S DONE HERE.

IT'S KIND OF CREPT UP AND WE KNOW THAT WE'VE TALKED ABOUT WE WERE, I THINK AT 2 MILLION, 250,018, 19, AND THIS YEAR WE'RE BUMPING CLOSE TO $4 MILLION.

I WAS AT A DISTRICT EXPERIENCE KIND OF THAT SAME SIMILAR RISE.

AND WE INSTITUTED THIS PROGRAM.

WE WENT WITH AN OUTSIDE ENTITY THAT BASICALLY REDUCED THE ENERGY USAGE.

THEY GOT ABOUT HALF OF IT. WE'RE PROPOSING TO USE A SIMILAR PROGRAM.

WE'RE GOING TO DO IT INTERNALLY.

WE'RE NOT CONTRACTING WITH SOMEBODY OUTSIDE.

WE PLAN ON HIRING IT IN.

KYLE MAZAK, WHO IS OUR OUR NEW FACILITIES DIRECTOR.

WE'RE JUST GOING TO TALK A LITTLE BIT ABOUT CAN CAN TALK A LITTLE BIT ABOUT IT IF NEEDED.

HE'S GOT A LOT OF EXPERIENCE WITH IT AS WELL.

MY EXPERIENCE PERSONALLY IS THAT THE DISTRICT THAT I WAS AT AT THE TIME, THEIR UTILITIES WERE ABOUT $2 MILLION.

AND OVER THE COURSE OF FOUR YEARS, AND IT WAS REPORTED TO THE BOARD QUARTERLY AT A MINIMUM, THAT UTILITY BILL OF ABOUT $2 MILLION WENT DOWN TO $1,150,000 OVER THE COURSE OF FOUR YEARS.

AND IT'S AMAZING THAT THAT PROGRAMING, ALL OF THE HVAC UNITS TURNING OFF LIGHTS, BEHAVIORAL MODIFICATIONS, ALL OF THOSE THINGS HAVE PRODUCED SUBSTANTIAL SAVINGS AT THE EXPERIENCE. IN MY PERSONAL EXPERIENCE, AND I'VE OBSERVED IT AT OTHER DISTRICTS THAT I'VE BEEN, AND I KNOW THAT.

WOULD YOU LIKE TO SAY A LITTLE BIT ABOUT BECAUSE THE ENERGY MANAGER IS GOING TO WORK UNDER WOULD WORK UNDER THE DIRECTOR OF OPERATIONS AND LET HIM TALK A LITTLE BIT ABOUT IT.

GOOD EVENING.

LET ME JUST SAY THE SAME THING, THAT IN MY PERSONAL EXPERIENCE, I'VE FOUND THAT HAVING AN ENERGY MANAGEMENT COORDINATOR CAN BRING QUITE SUBSTANTIAL SAVINGS.

I'VE BEEN IN ANOTHER DISTRICT WHERE WE HAD INDIVIDUALS WHO WERE IN CHARGE OF THESE CONTROLS FROM THE SIMPLEST THING OF TURNING A LIGHT SWITCH OFF AUTOMATICALLY TO CONTROLLING OUR HVAC SYSTEMS, AUTOMATICALLY EVERY TIME WE HAVE A REQUEST THAT JUST TURNS SOMETHING UP OR DOWN, THAT CREATES A POWER NEED OR A LOAD, WHICH IN THE END COSTS. SO BY AUTOMATING THAT SYSTEM AND KEEPING TRACK OF THAT SYSTEM, THERE IS A THERE'S A GOOD CHANCE FOR SUBSTANTIAL SAVINGS IN THAT.

AND THAT'S BEEN MY EXPERIENCE ALSO.

DO WE EVER AHEAD? NO.

DO WE HAVE AN AUTOMATED HVAC SYSTEM LIKE A HONEYWELL OR WHATEVER? WE USE ENVIROMATICS RIGHT NOW FOR OUR HVAC SYSTEM.

FOR AUTOMATION? YES, FOR THE FOR THE WHOLE DISTRICT, FOR OUR LIGHTING CONTROLS AND OUR HVAC CONTROLS.

OKAY. SO THAT'S ALREADY IN PLACE.

WE JUST NEED IT IS IN PLACE.

BUT HAVING A PERSON TO MANAGE THAT IS WHAT PART OF THE ISSUE THAT WE'RE LOOKING FOR.

SO ACTUALLY, I WAS GOING TO ASK THAT QUESTION AND IT SOUNDS LIKE YOU JUST ANSWERED IT.

IT'S NOT JUST COMING UP WITH WAYS TO SAVE MONEY.

IT'S ACTUALLY MANAGING ALL THE RECOMMENDATIONS SO THAT THEY'RE IMPLEMENTED OVER TIME.

AND THE REASON I'M ASKING THAT QUESTION IS I KNOW THAT THERE ARE THIRD PARTIES THAT CAN DO ASSESSMENTS AND MAKE RECOMMENDATIONS, BUT THEY DON'T NECESSARILY STICK AROUND TO MAKE

[00:50:07]

MR. JOHNSON, I WONDER, SINCE YOU HAVE ACTUALLY USED A THIRD PARTY BEFORE IN ANOTHER DISTRICT.

YOU KNOW, I HAVE NO WAY TO COMPARE WHAT THE COST OF HIRING A PERSON IS TO HAVING AN OUTSIDE ENTITY DO THE ANALYSIS.

DO YOU RECALL OR HAVE ANY IDEA WHAT IT WAS, WHAT THEY CALL A COST AVOIDANCE? AND THERE WAS A SPLIT, SO THEY GUARANTEED A CERTAIN AMOUNT.

AND IF YOUR UTILITY WENT LET'S JUST SAY IT WENT FROM 2 MILLION TO 1,000,007, SO THEY SAVED 300,000.

SO WE SPLIT THAT WITH THEM.

THEY GOT TO KEEP WE PAID THEM 150,000.

AND WE HAD THE ENERGY MANAGER THAT WAS 70,000.

SO WE HAD SOME COST.

AND SO WHERE THE WHERE THE SAVINGS WERE GREAT.

GIVE ME DON'T GET ME WRONG. NOW, THE SAVINGS COULD HAVE BEEN BETTER IF WE HAD USED OUR OWN INTERNAL PROGRAMS. AND EVEN WHEN WE TALKED WITH TRI COUNTY, WE SHARED THIS INFORMATION WITH THEM.

IT WAS A GOOD DISCUSSION.

THEY GAVE US THEIR THOUGHTS ON IT AND WHAT THEY RECOMMENDED IS EXACTLY WHAT WE'RE RECOMMENDING.

WE HAVE OUR OWN ENERGY MANAGEMENT PROGRAM.

THOSE FOLKS ARE EDUCATED.

WE'VE GOT SOFTWARE PROGRAMS. AND SO YOU MAXIMIZE YOUR SAVINGS AND YOU DON'T SPLIT IT WITH THIS OUTSIDE ENTITY.

WE'RE TRYING TO COST, AVOID, I GUESS, TWICE COST, AVOID ENERGY MANAGEMENT, BUT ALSO THE CONSULTING FEES.

SO IT SOUNDS LIKE IT'S TYPICAL WHEN YOU GO TO A THIRD PARTY AND THEY MAKE RECOMMENDATIONS THAT THEY ALSO WANT TO BUILD IN CONDITIONS THAT THEY GET TO SHARE THOSE SAVINGS.

ABSOLUTELY. OKAY.

AND I GUESS THE OTHER THING I'M CURIOUS ABOUT, I KNOW THAT WE'RE BEING YOU'RE PROPOSING THAT WE HIRE A FULL TIME REGULAR PERSON INTO THIS ROLE TO ALSO MANAGE IT.

IF THE SAVINGS DIDN'T PAY FOR THE PERSON AND ACHIEVE A LOT MORE, I ASSUME WE'LL HAVE ANOTHER DISCUSSION IN A YEAR AND WE'LL DECIDE WHETHER WE KEEP THAT ROLE OR NOT.

IF IT'S NOT, IF IT DOESN'T HAVE AN ROI, ABSOLUTELY, I WOULD HAVE NO OTHER WAY.

SO AT WHAT POINT, MR. JOHNSON, DO WE REALIZE SAVINGS? I MEAN, IS THAT WITHIN 12 MONTHS? IS THAT WITHIN 36 MONTHS? I MEAN, I THINK WHEN CAN YOU REALISTICALLY SEE REALLY SAVINGS IN THE BUDGET? MY EXPERIENCE IS THAT WE SAW IT OVER 12 MONTHS.

IT STARTED PRETTY QUICK.

AND SO, YOU KNOW, THE 1 MILLION, THE 2 MILLION TO 1,000,050, I THINK WAS PRETTY EVEN OVER THE COURSE OF THAT FOUR YEARS.

BUT WE'LL REPORT BACK TO THE BOARD.

I MEAN, WE CAN THE THE GOOD PART ABOUT THIS SOFTWARE IS THEY'VE GOT, YOU KNOW, A CALCULATION THAT SAY THE WAY YOU'VE OPERATED, YOU WOULD HAVE SPENT, LET'S JUST SAY $180,000. AND BECAUSE YOU'VE IMPLEMENTED THESE MEASURES, THEY'VE GOT ALL KINDS OF CALCULATIONS THAT SAY THEY CAN QUANTIFY THE AMOUNT OF SAVINGS THAT YOU'VE GOT.

AND SO WE'LL WE'LL HAVE THAT TYPE OF STUFF.

WE'LL HAVE THAT TYPE OF REPORTING.

SO LOOKING AT THE JOB DUTIES AND RESPONSIBILITIES, IT'S QUITE EXTENSIVE AND IT REALLY DOES REQUIRE SOMEBODY WITH A SKILL SET TO BE ABLE TO PERFORM THESE DUTIES AND RESPONSIBILITIES.

HOW CONFIDENT ARE YOU THAT THERE ARE PEOPLE OUT THERE THAT ARE INTERESTED IN THIS AND THAT ACTUALLY HAVE THE SKILL SETS TO PERFORM THE WAY WE NEED THEM TO? I'M PRETTY CONFIDENT THAT THOSE THOSE SKILL SETS EXIST.

I THINK WE CAN PROBABLY GET THAT PERSON.

I FEEL THAT WE CAN GET THAT PERSON.

MR. JOHNSON I KNOW FROM A PRIOR CONVERSATION I HAD WITH YOU AND I WANT THE PUBLIC TO KNOW AS WELL THAT THE POSITION THAT WE'RE TALKING ABOUT APPROVING HERE.

NOT ONLY DOESN'T NECESSARILY HAVE TO BE A PERMANENT POSITION FOREVER, BUT AS IT PAYS FOR ITSELF, YOU'LL KEEP US UP TO SPEED ON WHAT THE SAVINGS IS.

ABSOLUTELY. WOULD THAT BE JUST SO EXPECTATIONS CAN BE UNDERSTOOD AND MET QUARTERLY OR MONTHLY? OR WHAT DO YOU THINK? I WOULD SAY AT A MINIMUM, QUARTERLY.

AND THEN MAYBE WE CAN GET THINGS TO TO A MONTHLY OR A MORE.

MORE OFTEN. MR. JOHNSON, I THINK IT'S IMPORTANT TO POINT OUT THAT THIS WOULD BE ALMOST THIS THIS ENERGY MANAGEMENT COORDINATOR WOULD BE ON CALL BASICALLY 24 OVER SEVEN.

ALL EVENTS, GAMES, PERFORMANCES, EVERYTHING THAT THE DISTRICT PROVIDES.

VERY. YES, VERY TRUE.

THANK YOU. YEAH, THEY HAVE TO SET THE HEATING AND THE COOLING AND I THINK WE'RE PROBABLY MISSING THAT NOW FOR EACH OF THOSE INDIVIDUAL EVENTS.

AND AGAIN, IT'S A MANAGEMENT, IT'S A VERY INTERACTIVE PROCESS TO MAKE SURE THAT YOU'RE TAKING CARE OF THOSE THINGS.

THERE'S ONE LAST DATA POINT THAT I THINK MIGHT BE WORTH ASKING.

I KNOW YOU'VE ALREADY TALKED ABOUT YOUR PRIOR EXPERIENCE, BUT DR.

LEDBETTER, I THINK IN YOUR PRIOR DISTRICT, MIDLOTHIAN, YOU GUYS HIRED A SIMILAR TYPE OF ROLE AND YOU REALIZED A SIGNIFICANT AMOUNT OF SAVINGS.

I SAW AN ARTICLE WHERE MIDLOTHIAN REPORTED THAT THEY SAVED ABOUT 4.1 MILLION.

AND SO YOU HAVE EXPERIENCE IN HAVING THIS TYPE OF ROLE ON YOUR STAFF AND YOUR PRIOR DISTRICT, TOO?

[00:55:01]

WE HAVE TALKED ABOUT THE NECESSITY TO HAVE SOMEONE MANAGE OUR ENERGY BECAUSE IT'S EVIDENT THAT WE DON'T HAVE WE HAVE NOT HAD AN EMPHASIS ON THAT FOR THE LAST SEVERAL YEARS.

I DID HAVE EXPERIENCE. I INHERITED THAT POSITION WHEN I WENT TO MIDLOTHIAN.

IT HAD BEEN IN PLACE FOR PROBABLY, I DON'T KNOW, FIVE YEARS PRIOR TO MY ARRIVAL.

AND I THINK THEY WENT THROUGH PERHAPS SYNERGISTIC, SYNERGISTIC AS WELL.

AND THEN ONCE THEY THAT CONTRACT ENDED WITH THE COMPANY, THEN THEY JUST KEPT THAT KEPT THAT INDIVIDUAL ON BOARD MANAGING IT.

AND SO THEY THEY THEY WE WERE ABLE TO CONSERVE A SUBSTANTIAL AMOUNT OF MONEY OR SAVE A SUBSTANTIAL AMOUNT OF MONEY THROUGH THAT.

IRONICALLY, EVEN PRIOR TO MY ARRIVAL IN MIDLOTHIAN WHEN I WAS SUPERINTENDENT IN GRAHAM, WE WERE ALSO CONTRACTED WITH SYNERGISTIC AT THE SAME TIME AND WE HAD AN INDIVIDUAL THAT MANAGED THAT. AND SO EACH WE HAD PROBABLY MONTHLY REPORTS.

IF NOT, IT MAY HAVE BEEN QUARTERLY ON THE SAVINGS GENERATED THROUGH THAT PROGRAM.

SO I'M PERSONALLY CONVINCED THAT THIS IS A ROLE THAT'S IMPORTANT, THAT WE COULD SAVE A LOT OF MONEY.

EVERY DIME THAT WE SAVE NOT ONLY PAYS FOR THE ROLE, BUT IT ALSO PAYS FOR US TO DO OTHER THINGS FOR TEACHERS AND FOR STAFF AND FOR PROGRAMS. SO I'LL MOVE TO APPROVE THE ENERGY MANAGEMENT COORDINATOR POSITION.

SECOND MOTION AND SECOND.

ANY FURTHER DISCUSSION? CAN I, CAN I MAKE ONE MORE COMMENT? MR. BRIAN? I APOLOGIZE.

SO I JUST WANT TO BE CLEAR THAT MR. BRIAN I MEAN, MR. JOHNSON CAME TO ME WITH THIS POSITION AND AFTER MR. MAZAK CAME ON BOARD, IT'S SOMETHING WE'D BEEN TALKING ABOUT, BUT THEY REALLY FELT LIKE WE NEEDED TO EMPHASIZE IT.

THIS YEAR. I KNOW THAT WE'RE IN THE MIDST OF LOOKING AT OUR PERSONNEL.

I KNOW THAT WE'VE WE'VE REDUCED AT THE CENTRAL OFFICE CLOSE TO $800,000, PROBABLY MORE THAN THAT.

IT'S PROBABLY CLOSER TO 900,000 AT THIS POINT.

MY MY OBJECTIVE IS NOT TO ADD POSITIONS.

AND I THINK YOU ALL KNOW THAT. WE'VE TRIED TO TRIED TO NOT COME TO YOU WITH ADDITIONAL POSITIONS, BUT I FEEL LIKE THIS POSITION, BECAUSE WE DO NOT HAVE ANYONE IN THAT DEPARTMENT RIGHT NOW THAT CAN FOCUS ON THIS, FELT LIKE IT WAS SOMETHING THAT WE WILL SEE.

WE'RE GOING TO GENERATE MORE SAVINGS THAN WE I REALLY BELIEVE WE'LL GENERATE MORE SAVINGS THAN WHAT WE'RE SPENDING ON THE POSITION ITSELF.

AND CERTAINLY WE'LL EVALUATE THAT AS WE GO.

OBVIOUSLY, IT'S YOUR DECISION, BUT I THINK IT'S SOMETHING THAT WILL PAY OFF IN THE LONG TERM.

YOU'VE ASKED US FOR THE LAST 18 MONTHS TO LOOK AT WAYS THAT WE CAN EITHER INCREASE REVENUE OR DECREASE EXPENDITURES.

AND I FEEL LIKE THIS IS ONE AREA THAT WE HAVE NOT PLACED ENOUGH EMPHASIS ON.

I FEEL LIKE THIS POSITION, SOMEONE THAT'S PAYING ATTENTION TO THAT AND THAT IS THEIR PRIORITY, CAN CERTAINLY GENERATE SOME SAVINGS FOR US AS A DISTRICT.

THANK YOU. DR. LEDBETTER.

OKAY. WE HAVE A MOTION AND A SECOND ALL IN FAVOR.

SO IT GOT ONE MORE.

YOU WANT TO FURTHER DISCUSSION? YEAH, I JUST WANT TO SAY ONE THING THAT I BELIEVE THAT THERE IS MERIT TO THIS.

I MEAN, I KNOW THAT THERE ARE LIGHTS LEFT ON ALL THE TIME, BUT I AM I DO QUESTION WHAT WE CAN GET ON THE RETURN.

I LIKE THE IDEA.

I LIKE THE FACT THAT WE CAN HIRE SOMEONE AND MAYBE PERHAPS PAY FOR THEMSELVES.

BUT I WOULD JUST ENCOURAGE YOU TO LOOK AT THIS CLOSELY.

I MEAN, I'M CURIOUS AS TO HOW WE HAVEN'T HOW WE HAVEN'T BEEN DOING THIS FOR.

FOREVER. RIGHT. SO BUT I WOULD BE CURIOUS IN TERMS OF KEEPING AN EYE ON THIS.

UNDERSTANDING HOW WE USE OUR BUILDING AUTOMATION CONTROLS AND AND THOSE SYSTEMS. AND I WOULD BE CURIOUS TO KNOW IF THIS IS REDUNDANT WITH ANY OTHER CONTRACTS THAT WE HAVE.

I KNOW WE'VE GOT AN MEP, MECHANICAL, ELECTRICAL, PLUMBING, YOU KNOW, THERE MAY BE AN OPPORTUNITY THERE FOR.

SOME SAVINGS POTENTIALLY IF WE ADDED IN BUILDING AUTOMATION CONTROLS? I DON'T KNOW.

I JUST I'M WONDERING IF IT'S A FULL TIME EQUIVALENT OR NOT, YOU KNOW, A FULL RATHER THAN A FRACTIONAL.

SO. SORRY, GO AHEAD.

UNDERSTANDABLY SO, BECAUSE THE BOARD THAT I WORKED FOR AT THE TIME WAS VERY SKEPTICAL OF IT AND IN THE CONCEPT MADE A LOT OF SENSE TO ME.

AND I TELL YOU WHAT, OVER TIME, I CAN TELL YOU THAT TO MISS STACY'S POINT, THAT PERSON WAS AT LOTS OF EVENTS OVER THE COURSE OF THAT FIRST YEAR.

HE WAS EVERYWHERE. IT'S A BEHAVIORAL CHANGE.

IT'S IT'S CONTROLS.

AND WHILE I MEAN, YOU THINK OF GOING FROM $2 MILLION TO A MILLION, 150,000 IS PHENOMENAL.

AND SO IF YOU GOT HALF OF THAT, I MEAN, IT'S PRODUCED GREAT RESULTS.

IT PRODUCED RESULTS THAT MIDLOTHIAN IT'S PRODUCED RESULTS AT GRAHAM BIRDVILLE FORT WORTH ISD HAD THEM.

I CAN TELL YOU THAT THESE PROGRAMS PRODUCE, IF THEY DIDN'T, YOU WOULDN'T SEE THE PARTICIPATION.

IT REALLY IT I FEEL VERY STRONGLY THAT THIS IS A GREAT PROGRAM THAT WE WILL SAVE MONEY ON MORE THAN WHAT THE COST OF THE PROGRAM IS.

AND AGAIN, THEN THAT GIVES YOU GUYS MORE MONEY TO TO RUN THE PROGRAMS THAT YOU WANT TO RUN.

TRUSTEE SEXTON, I APPRECIATE YOUR COMMENTS AND THAT'S WHY I ASKED WHAT MIGHT BE A FAIR EXPECTATION TO HAVE SAVINGS REPORTS.

AND IF MR. JOHNSON SAYS QUARTERLY, THEN I THINK WE SHOULD CERTAINLY HOLD THIS POSITION TO QUARTERLY REPORTS TO SEE THAT.

NO, I APPRECIATE THAT.

YOU KNOW, I THINK THE TOUGHEST PART OF THIS WILL BE THE BEHAVIOR MODIFICATION.

YOU KNOW, EVERY TIME I TRY TO GET MY KIDS TO TURN THE LIGHTS OFF, YOU KNOW, IT JUST DOESN'T WORK.

SO I WISH YOU WELL.

[01:00:01]

OR ARE YOU GOING TO GO OUT TO THE STREET? WE'LL GO OUT. OKAY.

WHAT'S THE TIME FRAME FOR IT? THANK YOU. THANK YOU, TRUSTEE SEXTON, WHAT'S THE TIME FRAME? WE'LL POST IT ONCE THE BOARD.

IF THE BOARD APPROVES, THEN WE'RE GOING TO POST THAT TOMORROW.

AND THEN I JUST REMEMBERED I ASKED EARLIER WHETHER THIS POSITION WAS IN THE BUDGET OR NOT.

IT'S NOT IN THE BUDGET, BUT I THINK YOU SAID YOU CAN FIT IT WITHIN THE BUDGET YOU'VE ALREADY PROPOSED.

WHAT I'LL DO IS I'LL TAKE THE MONEY OUT OF THE UTILITY BUDGET.

SO IT'S NOT ADDING IT'S TAKING OUR EXISTING PROJECTIONS AND WE'RE GOING TO REDUCE IT IMMEDIATELY FOR FOR THE COST OF THIS POSITION.

AND THIS IS AFTER A COORDINATOR POSITION.

SO THIS IS. CORRECT? YEAH. ALL RIGHT. YEAH.

OKAY. ANY FURTHER DISCUSSION? HEARING NONE. ALL IN FAVOR.

MOTION CARRIES 5 TO 0.

THANK YOU, MR. JOHNSON.

NEXT ITEM ON THE AGENDA IS ITEM SEVEN C, CONSIDER PAY ADJUSTMENT FOR SUBSTITUTES.

DR. SMALSKAS, GOOD EVENING.

SO I KNOW MR. JOHNSON SHOWED YOU ON THE BUDGET PRESENTATION THIS EVENING WHAT IT WOULD COST US TO BRING OUR SUBSTITUTE PAY UP TO MARKET STANDARD OF INCREASING ACROSS ALL QUALIFYING CATEGORIES BY $20 PER PER DAY.

OBVIOUSLY WE WANT TO ATTRACT AND RETAIN OUR HIGHLY QUALIFIED SUBSTITUTE TEACHERS, AND IT'S CRUCIAL FOR OUR SCHOOL DISTRICT TO CONSIDER INCREASING THE SUBSTITUTE PAY TO MEET THAT MARKET VALUE.

COMPETING FOR TOP TALENT IN EDUCATOR SECTORS REQUIRE OFFERING COMPETITIVE COMPENSATION AND BASED ON OUR LOCAL DISTRICT SURROUNDING US, THAT'S DEFINITELY WHERE WE NEED TO BE.

AND SO WITH THAT, I'D LIKE TO PROPOSE A RECOMMEND THAT WE APPROVE THE THE PAY ADJUSTMENT FOR OUR SUBSTITUTE AS PRESENTED.

SO DR. SMALSKAS, IF YOU COULD JUST COMMENT ON WHAT THE RATES ARE IN OTHER DISTRICTS THAT WE'RE TRYING TO MATCH.

I'M YOU KNOW, I KNOW WE'VE HEARD THAT THOSE NUMBERS IN THE PAST, BUT I HAVEN'T HEARD THEM RECENTLY.

I KNOW THERE'S BEEN INCREASES IN DIFFERENT DISTRICTS.

AND WHILE SHE'S DOING THAT, I JUST WANT TO REMIND EVERYONE THAT WE HAD A ABOUT A 73% FILL RATE OF SUBSTITUTES LAST YEAR.

AND WE ASKED A LOT OF OUR TEACHERS DURING THEIR POC TIME TO COVER.

NOW, WE DID COMPENSATE THEM FOR THAT GOING INTO THIS YEAR, ESPECIALLY FIVE THROUGH EIGHT, WHERE WE MADE THE DECISION TO ELIMINATE THE PLC TIME.

OUR TEACHERS WILL NOT HAVE TIME TO COVER THOSE.

SO IT'S GOING TO BE MORE OF A CHALLENGE.

WE CAN'T IT'S GOING TO BE MORE OF A CHALLENGE TO FILL IT WITH OUR OWN STAFF.

SO WE REALLY HAVE TO PLACE SOME KIND OF EMPHASIS ON RECRUITING SUBSTITUTES, AND THAT'S WHY WE THINK IT'S IMPORTANT TO INCREASE.

SO JUST COMPARISON MARKET COMPARISON.

WE WERE ONLY AT 80% FOR NON-DEGREED WE WERE AT 79% FOR DEGREED FOR SHORT TERM SUB PLACEMENTS AND FOR DEGREED FOR LONG TERM.

WE WERE DEGREED CERTIFIED AT 84%, AS FAR AS MARKET COMPARISON.

I'VE GOT A WHOLE SCREEN ON OUR COMPARABLE DISTRICTS AND THERE ARE SOME DISTRICTS THAT WE WERE NON-DEGREED, YOU KNOW, WE'RE PAYING 80 AND WE HAVE SOME DISTRICTS VERY CLOSE TO US THAT ARE PAYING 130.

AND OUR RATE RIGHT NOW, I KNOW THAT IT'S BASED ON THE POSITION, BUT CAN YOU GIVE ME AT LEAST ONE BENCHMARK TO KIND OF COMPARE A SINGLE POSITION IN CARROLL TO, LET'S SAY, ANOTHER DISTRICT THAT HAS WHATEVER RATE IT HAS? SO IF WE LOOK AT LONG TERM DEGREED, WE WOULD PROBABLY BE IN THE TOP FIVE OF THE COMPARISON GROUP THAT I RECEIVED THIS DATA FROM.

DOES THAT IS THAT WHAT YOU'RE ASKING FOR? I'M ASKING IF WE PAY 60 AND GRAPEVINE PAYS 80 BY RAISING IT TO 20.

WE'RE EQUAL TO GRAPEVINE.

DO YOU HAVE ANY KIND OF BENCHMARK THAT ACTUALLY ILLUSTRATES WHAT WE'RE DOING? WILL WE BE AT THE SAME RATE, THE AVERAGE RATE, A HIGHER RATE, WHAT WILL WE BE? SO WE WOULD BE COMPETITIVE WITH GRAPEVINE? KELLER, WE'D BE A BIT HIGHER THAN KELLER.

WE WOULD BE IN LINE WITH LEWISVILLE, IN LINE WITH NORTHWEST AND IN LINE WITH COPPELL AND THOSE RATES THAT YOU'RE READING.

I GUESS THAT'S FROM RECENT CALLING THOSE DISTRICTS OR LOOKING AT WHAT THEY'RE POSTING AT? THAT IS CORRECT. WOULD WE BE BEHIND I'M SORRY, I DIDN'T CATCH ANY PARTICULAR DISTRICTS WE'RE BEHIND.

CARROLLTON-FARMERS BRANCH THERE.

THEY'VE GOT A PRETTY SUBSTANTIAL SUB RATE PAY THERE.

WE'D BE BEHIND CARROLLTON-FARMERS BRANCH AND DENTON ISD AND THEN HIGHLAND PARK.

OKAY. SO THE ONES THAT ARE MOST CLOSE TO OUR DISTRICT WOULD BE EQUAL TO OR GREATER.

CORRECT. AND THE ONES THAT WERE BEHIND ARE A SUBSTANTIAL DISTANCE AWAY? THAT IS CORRECT. OKAY.

SO JUST TO CLARIFY, WE'RE WE'RE AT $80 FOR A PROFESSIONAL CERTIFIED TEACHER, RIGHT? $80 PER DAY.

$80 FOR NON DEGREED.

OKAY. FOR DEGREED. WE'RE WE WOULD WE'RE AT 110.

AND SO OBVIOUSLY THIS WOULD TAKE THEM TO 130, WHICH THEN WOULD PUT US ABOVE.

[01:05:02]

HOW MUCH ABOVE KELLER, AND HOW MUCH BEHIND KELLER IS AT 125 FOR DEGREED.

GRAPEVINE IS AT 154.

COPPELL IS AT 170, AND NORTHWEST ISD IS AT 145.

SO IF WE DID A $20 INCREASE THERE, THAT WOULD TAKE US TO A 130 FOR DEGREED.

OKAY. AND MR. JOHNSON, I BELIEVE YOU TOLD US THAT A $20 INCREASE IS INCLUDED IN THE BUDGET YOU JUST PRESENTED.

SO DO WE HAVE ANY IDEA? IS THERE ANY DIFFERENCE OR ARE THERE ANY CLASSROOMS THAT ARE PARTICULARLY DIFFICULT TO FILL FROM A VACANCY STANDPOINT? I DON'T KNOW IF WE'VE DONE ANY ANALYSIS ON THE 27% THAT WEREN'T FILLED.

WHAT DO THOSE CLASSROOMS LOOK LIKE? I DO NOT HAVE THE SPECIFIC DATA AS TO WHAT CLASSES THOSE ARE.

I HAVE JUST AN OVERALL PERCENTAGE.

COULD WE LOOK IN TO SEE IF THERE ARE ANY TRENDS OR IF THERE'S ANY DATA THAT WOULD SUGGEST THAT WE NEED TO.

MS. KHAN CAN YOU WRITE THAT DOWN SO WE CAN DIG INTO THAT? THAT'D BE GREAT. WE CAN DO THAT.

THANK YOU. I THINK IT'S OBVIOUS THAT WE NEED TO DO SOMETHING WITH THE RATES AND I THINK WE'RE RIGHT IN THE MIDDLE, AT LEAST BEING COMPETITIVE WITH THE NEAREST LOCATIONS THAT WE COMPETE FOR TALENT FOR.

SO I'LL MOVE TO APPROVE INCREASING THE SUBSTITUTE TEACHER PAY TO $20 PER DAY ACROSS ALL THE CATEGORIES.

SECOND, ALL RIGHT, WE HAVE A MOTION A SECOND.

ANY FURTHER DISCUSSION? OKAY. ALL IN FAVOR.

MOTION CARRIES 5 TO 0.

THANK YOU, DOCTOR SMALSKAS. THANK YOU VERY MUCH.

NEXT ITEM. AND THE LAST ITEM ON THE AGENDA IS ITEM SEVEN D, CONSIDER APPROVAL OF CONTRACTS FOR MECHANICAL, ELECTRICAL, PLUMBING AND ARCHITECTURAL SERVICES PROJECTS AS RELATED TO FACILITIES ASSESSMENTS ASSOCIATED WITH THE STRATEGIC PLAN.

DR. MR. JOHNSON. THANK YOU.

THANK YOU. I'M GOING TO.

OKAY. I'M GOING TO TURN THIS OVER TO OUR NEW DIRECTOR OF OPERATIONS, BUT I WANTED TO KIND OF GIVE A LITTLE BIT OF BACKGROUND AND CONTEXT.

SO THE STRATEGIC ACTION TEAM THAT I GUESS MET LAST YEAR DETERMINED THAT WE NEEDED TO HAVE A CAPITAL EXPENDITURE PROGRAM AND I COULDN'T AGREE MORE. AND SO THROUGH THAT PROCESS, WE LOOKED AT SOME OF THE MAJOR COMPONENTS FOR THE FACILITY.

WE'VE DONE A CAPITAL EXPENDITURES FOR SOME OF THE THINGS INTERNALLY.

WE HAVE ATHLETICS, WE HAVE AQUATICS, WE HAVE SOME TECHNOLOGY, BUT WE WANTED TO EXPAND THAT AND LOOK REALLY AT OUR LARGEST, WHICH IS OUR FACILITIES.

SO WE DID A REQUEST FOR QUALIFICATIONS, FOR FACILITY ASSESSMENTS FOR THE MECHANICAL ENGINEERING MEP AND THE BUILDING ENVELOPE.

AND SO WE DID THAT.

I THINK WE STARTED THAT IN MARCH.

WE CAME BACK AND I THINK MAY AND I PRESENTED IT TO YOU GUYS ON JUNE 5TH AND SAID THAT THE NEXT STEP ONCE I RECEIVED Y'ALL'S APPROVAL TO BEGIN NEGOTIATION WITH THESE FIRMS AND DEFINING SCOPE THAT I WOULD BRING IT BACK TO YOU.

AND SO THAT'S WHAT WE'RE GOING TO DO TONIGHT.

AND I'M GOING TO TURN IT OVER TO KYLE MAZAK, WHO IS OUR DIRECTOR OF OPERATIONS, WHO WILL NOW DO THE MAJORITY OF THIS WORK.

IS IT TOP BUTTON? OKAY.

ALL RIGHT. GOOD EVENING.

A STRATEGIC ACTION PLAN DEEMED NECESSARY TO ENGAGE CERTIFIED ENGINEERS AND ARCHITECTS TO PERFORM THE CISD FACILITIES ASSESSMENT. THESE ARE QUALIFIED COMPANIES AND WILL GIVE US A GOOD FACILITIES ASSESSMENT FOR OUR LIFE CYCLES REPLACEMENTS THAT WE NEED FOR CISD.

NORMALLY, THESE TYPES OF ASSESSMENTS COME WITH A BOND.

HOWEVER, JUST TO CLARIFY, THIS IS NOT THAT TYPE OF ASSESSMENT.

THE DVR SCOPE WAS THE FIRST ASSESSMENT EVALUATION OF MECHANICAL, ELECTRICAL, PLUMBING AND SECURITY AND TECHNOLOGY.

THERE ARE QUALIFIED ENGINEERING FIRM CHOSEN FOR THIS.

EACH ONE OF THESE SLIDES WILL SHOW A SPECIFIC SCOPE OF WORK FOR OUR FACILITIES, ASSESSMENT FOR OUR LIFE CYCLES, COSTS.

BUILDING MECHANICAL SYSTEMS IS THE FIRST ONE FROM DVR, INCLUDES OUR HEATING OR VENTILATION, OUR AIR CONDITIONING, OTHERWISE KNOWN AS OUR HVAC SYSTEMS. BUILDING ELECTRICAL AND FIRE SYSTEMS IS THE SECOND PART OF THIS SCOPE.

OUR FIRE ALARMS, OUR FIRE PROTECTION, ELECTRICAL SERVICE, OUR ELECTRICAL POWER DISTRIBUTION, OUR INTERIOR, AND EVEN OUR EXTERIOR LIGHTING.

ALSO INCLUDES THE BUILDING PLUMBING SYSTEMS, DOMESTIC PLUMBING SYSTEMS, HOT AND COLD WATER PIPING, SANITARY WASTE AND VENTS, STORM DRAIN PIPING AND EVEN THE NATURAL GAS LINES.

ALSO INCLUDES BUILDING SECURITY AND TECHNOLOGY SYSTEMS. THE AV, THE PA INTRUSION ACCESS CONTROLS, VIDEO SURVEILLANCE, AND EVEN THE STRUCTURED CABLING THAT COMES ALONG WITH THAT.

[01:10:08]

BUT SCOPE NUMBER ONE IS 30,957 FOR THE MECHANICAL SYSTEMS. SCOPE NUMBER TWO, 28, 205 FOR THE BUILDING ELECTRICAL FIRE SYSTEMS. SCOPE NUMBER THREE, 15,545 FOR THE BUILDING PLUMBING SYSTEMS AND SCOPE NUMBER FOUR 13,775 FOR A TOTAL OF $88,500. CORRIGAN IS A PROFESSIONAL ARCHITECTURAL FIRM WITH A LARGE PRESENCE IN TEXAS THAT WILL GIVE US ALSO A FACILITIES ASSESSMENT FOR OUR LIFE CYCLES REPLACEMENT PLAN FOR THE COMPONENTS OF ALL THE BUILDING ITSELF.

EACH ONE OF THESE SLIDES WILL ALSO SHOW A SPECIFIC SCOPE OF WORK FOR OUR FACILITIES, ASSESSMENT FOR OUR LIFE CYCLES, COSTS.

THE BUILDING ENVELOPE IS BASICALLY JUST ANY INTRUSION THAT COULD COME INTO THE BUILDING.

IT INCLUDES THE ROOF CAPS, EXPANSION JOINTS, SKYLIGHTS, EXTERIOR WINDOWS, INTRUSION FROM BELOW GROUND, MASONRY WALLS, EXPANSION JOINTS, THINGS LIKE THAT.

ALSO IN THIS ASSESSMENT, THE BUILDING INTERIOR AND KITCHEN COMPONENTS, THE FLOORING, THE WALLS, WHETHER THEY'RE MOVABLE OR NOT, CEILINGS, TOILET PARTITIONS, THE MILLWORK STAIRS, RAMPS, WINDOWS, KITCHEN FINISHES, KITCHEN EQUIPMENT, POINT OF SALE, SERVICE LINE, COLD AND DRY STORAGE.

ALSO INCLUDED IN THIS ARCHITECT ASSESSMENT IS THE BUILDING CAMPUS STRUCTURAL, THE DRIVEWAYS, THE PARKING, THE PLAY AND EVEN THE ADA ISSUES SIDEWALKS, PEDESTRIAN ACCESS, SITE STAIRS, RAMPS, SIGNAGE, RETAINING WALLS AND ADA ACCESSIBILITY.

WE BROKE THIS DOWN INTO THREE SCOPES, GIVING SOME OPTIONS HERE FROM CORRIGAN BUILDING ENVELOPE WITH 66 EIGHT.

THE BUILDING, INTERIOR AND KITCHEN COMPONENTS WOULD BE 46,200.

THE BUILDING CAMPUS STRUCTURAL DRIVES PARKING PLAYING ADA WAS 21 100 FOR A TOTAL VALUE.

OUR TOTAL COST OF 134 100.

SO THE NEXT STEPS WOULD BE THE BOARD APPROVAL OF PROFESSIONAL FEES AND TO BEGIN WORK.

AND I WOULD BE HAPPY TO ANSWER ANY QUESTIONS THAT YOU WOULD HAVE ON THAT ASSESSMENT.

YEAH, ABSOLUTELY. THANK YOU FOR THE PRESENTATION.

YOU KNOW, I'M A I'M A BIG BELIEVER IN BUILDING A MASTER PLAN.

I'M QUITE SURPRISED THAT A DISTRICT OUR SIZE HAS NEVER HAD A MASTER PLAN THAT LOOKS AT 1 TO 5, 6 TO 10 AND 11 TO 20 YEAR CAPITAL NEEDS OUT THERE.

SO I'M VERY PLEASED THAT YOU ALL WERE ABLE TO GO OUT AND RECEIVE FROM REALLY QUALIFIED FIRMS AT SUCH A SMALL COST. I THOUGHT IT WAS GOING TO COST US A LOT MORE THAN WHAT YOU'RE PRESENTING TODAY.

SO I'M VERY EXCITED ABOUT HAVING A A DISTRICT MASTER PLAN WITH INDIVIDUAL CAPITAL PLANS UNDERNEATH IT THAT'S GOING TO GUIDE US STRATEGICALLY FOR EXPENDITURES, KNOWING THAT WE'RE NOT GOING TO HAVE BOND FUNDS ANYTIME SOON AND WE'RE GOING TO INCORPORATE THIS WITHIN OUR OUR BUDGETS YEAR IN AND YEAR OUT. SO IT SETS EXPECTATIONS.

IT ALLOWS US AS A BOARD TO BE ABLE TO MAKE SMART DECISIONS BASED ON QUALITY ANALYSIS.

SO I APPRECIATE YOU PRESENTING AND I'M TOTALLY EXCITED ABOUT THE POSSIBILITY.

I DON'T HAVE ANY COMMENTS, BUT I'D BE HAPPY TO MAKE A MOTION UNLESS THERE'S MORE DISCUSSION ON THIS.

WELL, I'M A HUGE PROPONENT OF THIS, AND YOU CAN KIND OF SEE HOW THIS WILL AT LEAST IN PART, DEVELOP THE PLAYBOOK FOR THE ENERGY MANAGER.

SO IT'LL BE INTERESTING TO SEE HOW, YOU KNOW, WE WE IMPLEMENT THIS AND IMPLEMENT THE RECOMMENDATIONS THAT ARE PROPOSED.

I DON'T KNOW WHAT TYPE OF MAINTENANCE PHILOSOPHY THEY'RE THEY'RE RECOMMENDING.

I GUESS THEY DON'T EITHER AT THIS POINT SINCE IT'S AN INITIAL CONDITION ASSESSMENT.

RIGHT. BUT I AM EXCITED TO SEE WHERE THIS GOES AND I AM SHOCKED THAT WE DON'T HAVE IT.

RIGHT. EXACTLY.

THAT BEING SAID, I'D MAKE A MOTION.

PRESIDENT BRYANT, THANK YOU.

AND THAT IS TO APPROVE THE CONTRACTS FOR MECHANICAL, ELECTRICAL, PLUMBING AND ARCHITECTURAL SERVICES PROJECTS AS RELATED TO FACILITY ASSESSMENT ASSOCIATED WITH THE STRATEGIC PLAN.

SECOND MOTION AND SECOND.

ALL IN FAVOR. MOTION CARRIES 5 TO 0.

I MAKE A MOTION TO ADJOURN TONIGHT'S MEETING.

SECOND. MOTION AND SECOND.

ALL IN FAVOR? MOTION CARRIES 5 TO 0.

WE ARE ADJOURNED AT 7:14 P.M..

* This transcript was compiled from uncorrected Closed Captioning.