Culpeper County School Board 6/3/2018 11:39 PM Minutes February 22, 2010 Page 1 of 10

CULPEPER COUNTY SCHOOL BOARD Minutes February 22, 2010

A meeting of the School Board of Culpeper County was held February 22, 2010 at the School Board Office (Colin Owens Conference Room) at 450 Radio Lane at 6 p.m. Present were George Dasher (Stevensburg District); Elizabeth Hutchins (Cedar Mountain District); Robert Beard (East Fairfax District); Robert A. Houck (West Fairfax District); Russell E. Jenkins (Catalpa District); Anne C. Luckinbill (Salem District); Clerk Jeff Shomo, Superintendent Dr. Bobbi Johnson, Director of Curriculum and Instruction James Allen, Director of Human Resources Starr Rowe, Budget Analyst Lauren Thomas, Director of Administrative Services Dr. Russell Houck, and Deputy Clerk Pearl Jamison. Leanne Malulani (Jefferson District) arrived at 6:20 p.m.

At 6 p.m., Mr. Dasher called the meeting to order and Ms. Jamison called the roll.

On motion of Ms. Hutchins seconded by Ms. Luckinbill, the Board went into closed session immediately regarding:

[a] Discussion of Personnel Recommendations and Named Employee A as permitted by the Code of Virginia 2.2-3711 (A) (1)

Motion carried 6-0 by voice vote. (Ms. Malulani was absent.)

On motion of Ms. Hutchins seconded by Ms. Luckinbill, the Board ended the closed session at 6:10 p.m. and certified by the following roll call vote that only public business matters lawfully exempted from open meeting requirements and only the items included in the motion to go into closed session were discussed:

YEAS: 6 Robert Beard George Dasher Robert Houck Elizabeth Hutchins Russell Jenkins Anne Luckinbill

ABSENT: 1 Leanne Malulani

On motion of Ms. Luckinbill seconded by Ms. Hutchins, the School Board considered approving the agenda. Motion carried 6-0 by voice vote. (Ms. Malulani was absent.) Culpeper County School Board 6/3/2018 11:39 PM Minutes February 22, 2010 Page 2 of 10

The board considered the following action items:

(a) Personnel Recommendations On motion of Ms. Luckinbill seconded by Mr. Houck, the School Board approved the personnel recommendations. Motion carried 6-0 by voice vote. (Ms. Malulani was absent.)

(b) Consider sending a letter of support to Fauquier County School Board in support of their effort to change the 2010/2012 Composite Index assumptions relative to the Land Use Tax Deferral Program Mr. Dasher said the Composite Index (CI) is supposed to indicate the county’s ability to pay. He noted that the lower the CI the more funding we receive from the state for public schools.

The current CI for Culpeper is .43. Mr. Dasher noted the 3 factors that are involved in calculating the CI: Assessed value of property in county – 50% Adjusted gross income – 40% Retail sales – 10%

Mr. Dasher said he has spoken with Sally Murray, Fauquier County School Board, the commissioner of revenue, the county treasurer, and the tax assessor, Valeri Lamb, and Frank Bossio about the issue.

Mr. Dasher said the letter from Fauquier County asks the board to join them in an appeal to the state to include the land use value instead of the fair market value in the composite index calculation.

Ms. Malulani joined the meeting.

Mr. Dasher noted the following 2009 tax values: Assessed value of property - $2,677,929,000 Building improvements - $2,754,520,000 Total fair market value - $5,432,449,000 Land use credit - $669,068,000 Total actual tax value - $4,763,381,000

Mr. Dasher said when state computes the composite index it is based on the fair market value instead of the actual tax value.

Mr. Dasher said the highest composite index in the state is .8. He said some counties in the northern end of the state have a composite index of .8. He said those counties would prefer we not do this. Culpeper County School Board 6/3/2018 11:39 PM Minutes February 22, 2010 Page 3 of 10

Mr. Dasher said the Board of Supervisors voted to allow Brad Rosenberger to sign a letter following the lead of the School Board.

Mr. Dasher said based on his conversation with Sally Murray they have received quite a few letters in support of this endeavor.

On motion of Ms. Hutchins seconded by Mr. Jenkins, the School Board considered approving the letter of support.

Mr. Houck said Rappahannock County’s composite index is .8. He said they are in favor of the change. Ms. Hutchins said if their index goes down it helps them. She said Fairfax doesn’t want to lose anything.

Mr. Beard said no one is required to put property in land use. He said Fairfax probably doesn’t have land that would qualify for land use. He said it is important we have this because it is important for Culpeper to have farms and green lands. He said rural counties should not be penalized.

Ms. Hutchins said your ability to pay should be based on the taxes you collect.

Motion carried 7-0 by voice vote.

Budget Work Session

Mr. Jenkins said he has a personal interest in the budget discussion because his spouse is employed in the school system. He noted that he is able to participate in the transaction fairly, objectively, and in the best interest of the public. He said that he filed a copy of his disclosure statement with the clerk on January 25th and will disclose his interest at each meeting where there is discussion pertaining to the budget.

Mr. Dasher noted that Ms. Hutchins, Mr. Houck, Dr. Johnson, and he attended a VSBA Legislative Conference in Richmond last week. He said on Friday they met with Delegate Scott and Senator Houck and spoke about what the impacts of the state funding shortfalls mean to Culpeper County. He said we are in a “wait and see mode” to see what comes out of the general session. He said the Senate and House made their recommendations this morning.

Mr. Dasher said, at this point, the board is looking at a $5.9 million budget shortfall or $7.5 million if we hold employees harmless relative to insurance.

Mr. Beard asked if the $2.3 million shortfall from the local government assumes a zero percent tax increase. Mr. Dasher said yes.

Dr. Johnson shared with the board a retirement incentive program. She said the middle school sports task force did meet and their recommendation is included in the packet this evening. Culpeper County School Board 6/3/2018 11:39 PM Minutes February 22, 2010 Page 4 of 10

Dr. Johnson reviewed the early retirement savings options. She said we are looking at reducing staff and if we could keep more staff because we entice more people to retire, we would have to RIF less. She said another way to recoup money is to not fill positions.

Ms. Thomas said this recommendation mirrors the county’s early retirement program. She briefly reviewed the key elements of the program. She reviewed the VERP calculation.

Ms. Luckinbill asked when an employee would receive the VERP pay out. Ms. Thomas said next fiscal year.

Dr. Johnson said we could put the VERP money into a 401 account so the retirees don’t pay taxes until they draw it out.

Ms. Malulani asked if any consideration has been given to medical benefits. Ms. Thomas said no. Dr. Johnson said the thought was to just give employees a sum of money and let them decide. Dr. Johnson said they can stay on our health care but have to pay for it.

Mr. Shomo said retirees will not be penalized. He said the VERP is based on years of service with VRS, age, and years of service. He noted that employees can PLOP if they work 3 years beyond 30 years.

Mr. Dasher said this program is just a little incentive to encourage staff to retire. He said we are not trying to give them any added benefits.

Mr. Beard asked if the budget includes ESP. Ms. Thomas said yes. He asked if this year’s retirees could participate. Ms. Thomas said yes. Ms. Hutchins said ESP does not provide any extra benefit because the retiree works the days and still pays insurance.

Ms. Luckinbill said one of the eligibility statements indicates you have to have been employed for five years. Ms. Thomas said the county determined that number.

Ms. Malulani asked for clarification on the 45% local savings eligibility statement. Ms. Thomas said that language was also determined by the county. Mr. Shomo said we will control the replacement to find savings. Dr. Johnson said Ms. Thomas ran several scenarios and we are good with that.

Mr. Beard said in previous discussions the pay outs were to come out of this fiscal year. Dr. Johnson said other divisions are paying it out of next year because the official retirement date is July 1st.

Mr. Beard said if enough individuals chose early retirement the board could cut fewer positions. Culpeper County School Board 6/3/2018 11:39 PM Minutes February 22, 2010 Page 5 of 10

Ms. Hutchins said VRS will be reconfigured after July 1st. She stated that the division won’t realize all the savings noted unless all the individuals retire.

Dr. Johnson said staff would like to communicate the VERP plan to employees as soon as possible.

Ms. Rowe said if a retiree is going to PLOP they have to submit their paperwork to VRS by April 1st in order to get their pay by the end of July through the first of August. She said employees can roll their annual leave into a 403B.

Ms. Thomas said of all the options reviewed, this plan rewards the employee based on their years of service.

Ms. Malulani said the employees that could take advantage of this were shorted over the years by the salary scale adjustments.

Mr. Houck stated that if an employee has already decided they are going to retire they are still eligible for this program, if the board approves it.

Mr. Dasher said he would like to pursue the option with the largest number of employees affected.

Ms. Luckinbill suggested changing the five years of service eligibility to three years service in Culpeper.

Mr. Beard asked if the staff recommends the largest savings. Dr. Johnson said yes.

Ms. Malulani asked what the cons are. Dr. Johnson said we lose senior staff and experience and are limited to hiring at the 0-4 level.

Ms. Hutchins asked what would happen if it is a high needs area and we can’t find someone in the 0-4 range. Dr. Johnson said we would have to make an exception and the savings may not be as much.

Dr. Johnson said staff will have to meet with those eligible as soon as possible.

Ms. Malulani said individuals need to be evaluated in a timely and thorough fashion. She said she wanted to make sure as an administration we continue to evaluate all of our employees performance.

Mr. Beard said last year we adopted a RIF policy that includes a performance component. He said we must comply with the policy and can’t change the rules. He said ideally we wouldn’t have to RIF any employees. Culpeper County School Board 6/3/2018 11:39 PM Minutes February 22, 2010 Page 6 of 10

The consensus of the board was to have staff promote the option with the most savings.

Ms. Malulani asked how the employees would be contacted. Dr. Johnson said we have their names and will send letters.

Mr. Houck noted that item 2 under “Application Approval and Submission” needs to be deleted.

Contracted Transportation Services Dr. Houck summarized the information obtained from Roanoke City Public Schools regarding their contracted transportation services. (See handout.)

Ms. Luckinbill asked if Mt. Valley owns the busses. Dr. Houck said yes. Ms. Luckinbill asked if there is a business like this in this area. Dr. Houck said he wasn’t aware of one; however, his understanding is that they want to branch out.

Ms. Malulani asked if we have GPS tracking systems on our busses. Dr. Houck said no.

Ms. Malulani expressed concern with the matrix of offenses and corresponding punishment. She said our principals need to be able to look at a student’s needs and behavior in a larger picture. Dr. Houck said the guidelines minimize discretion.

Ms. Malulani noted the fewer sick days taken. She said that sounds great; however, in the past perhaps some employees were coming to school sick because they didn’t have another option.

Ms. Luckinbill noted the budget for Roanoke City was $7.1 million vs. CCPS budget of $4 million. She said they saved 3.5%.

Ms. Hutchins asked Dr. Houck to obtain a copy of the punishment matrix. She said she is also curious where they get their bus drivers. Dr. Houck noted that our ability to find drivers has improved.

Ms. Malulani said in the past we hired drivers, trained them and then they were gone. She said in this proposal Mt. Valley would train the drivers.

Mr. Shomo said Mt. Valley would purchase the busses. Dr. Houck said it was not clear how the bus purchase transpired.

Mr. Beard said he fails to see how a for profit entity is going to manage things vs. someone who has to just break even. He said he would like to know where Roanoke City will be in five years. He said if it is not working out and they go bust you have to buy busses.

Dr. Houck said perhaps all these questions could be resolved in the contract. Culpeper County School Board 6/3/2018 11:39 PM Minutes February 22, 2010 Page 7 of 10

Dr. Johnson said if this is something we want to get more information on Dr. Houck can pursue this issue further; however, if we really aren’t interested we shouldn’t waste his time.

Ms. Malulani said if our system is already operating at peak efficiency they can’t come in and offer us the same kinds of savings. She asked how many miles and children Roanoke City have compared to Culpeper. Dr. Johnson said they are carrying more children but have less territory. Dr. Johnson said we don’t know if we could even get a bid.

Members agreed to hold off on further discussion until Roanoke City has more experience with the contracted transportation services.

Mr. Jenkins said we are selling ourselves short by placing this on the back burner.

Mr. Dasher said this needs to take a low priority but can be monitored.

Ms. Malulani said she doesn’t believe a contract will help if the company goes belly up.

Middle School Athletics Dr. Johnson said the task force met on Saturday.

Ms. Thomas said all members agreed middle school sports couldn’t exist without a registration fee. She said in order to make this happen they looked at all gate receipts, concessions, etc. She said they typically have $35,000 in revenues and $29,000 in expenditures not including coaching stipends. She said the recommendation is $90 per player per sport. She said middle schools will donate $3,000 from gate receipts to help.

Ms. Hutchins asked what sports are offered at middle school. Ms. Thomas said football, basketball, wrestling, and cheerleading.

Mr. Shomo said the recommendation includes maintaining the current positions. (See page 4.)

Mr. Dasher reiterated that the cost is $90 per sport not per student.

Ms. Malulani asked how hardships would be treated. Dr. Johnson said we have not factored in hardship.

Dr. Johnson said there needs to be an expectation to pay, contract payment plan, or volunteer service to cover the fee(s).

Dr. Houck said there is no blanket exemption. He said everything will be reviewed on a case by case basis.

Ms. Hutchins asked if we are in our legal bounds by providing a payment plan for students who have free and reduced lunch. Dr. Johnson said she believes so but will investigate further. Culpeper County School Board 6/3/2018 11:39 PM Minutes February 22, 2010 Page 8 of 10

Ms. Thomas reviewed the guidelines relative to sports registration fee procedures.

Dr. Johnson said our teachers don’t know who is on free/reduced lunch. She said we clearly can’t have those lists distributed.

Ms. Luckinbill asked if there would be a method of refund if the student is injured or doesn’t have the grades to participate in sports.

Ms. Hutchins asked if we can legally require waiver applicants to contribute in a non-financial manner.

Ms. Malulani said if a student is required to work because of family needs could we expect them to contribute non-financially as well.

Ms. Thomas said community organizations could also volunteer to sponsor students.

High School Athletics Mr. Shomo noted that an increase of $40 would result in an additional $40,000 in revenue. He said with these two adjustments to athletics, we are reducing our budget by $111,651 and $78,821.

Mr. Beard asked if we are getting $60,000 currently in athletic fees. Mr. Shomo said in the past we collected $20,000 because there were no clear guidelines.

Mr. Beard said we are going to ask individual people to collect and account for money in a short period of time. He said for their protection we need to implement a check and balance system on receipting. He said he does not want anyone to be accused of taking a child’s athletic fee. He said we have systems in place but apparently they don’t work. Mr. Shomo said the parents, coaches, and athletic director will know the procedures. Dr. Johnson said our coaches need to know how serious the repercussions are for not following the guidelines.

Ms. Hutchins expressed concern with false accusations against a coach. Dr. Johnson said we need to have written procedures.

Ms. Thomas said page 8 represents the current coaching supplement scale. She noted that page 7 reflects the proposed scale. She said there would be no “years experience differential”.

Ms. Hutchins asked if the coaches have seen the new scale. Ms. Thomas said the athletic directors have reviewed the scale.

Mr. Shomo said salary scales are part of the budget. Culpeper County School Board 6/3/2018 11:39 PM Minutes February 22, 2010 Page 9 of 10

Mr. Beard noted that instructional supplements are not included in the new scale. Dr. Johnson said a lot of the individuals listed in the instructional supplement area will be impacted by the budget.

Ms. Hutchins asked why golf and swimming did not change categories. Ms. Thomas said because of the number of competitions and length of the season. Ms. Thomas noted that they received coaching scales from Madison, Rappahannock, Louisa, Fauquier, and Albemarle. She said for most jurisdictions head coaches are paid a flat 9%.

Ms. Hutchins noted ROTC under the athletic supplements. Ms. Thomas said it doesn’t fall under either the sports or the academic categories.

Dr. Johnson noted that page 10 reflects current athletic costs in the budget. Mr. Shomo said the amount would be reduced by $200,000.

Ms. Hutchins stated middle school sports will be cost neutral and high school sports will realize a savings of $111,651.

Overall Budget Dr. Johnson referred members to page 11 of the packet. She noted there is $500,000 that can be billed for regional special education services. She said this money can go into the general budget.

Dr. Johnson said items in light green were agreed upon last week as actual decreases.

Dr. Johnson said the health insurance committee, in trying to keep costs low, recommended increasing deductibles and doing away with the PPO to eliminate the increase in insurance rates.

Mr. Dasher said, at this point, the budget covers the 2% VRS increase for employees and the employee would not have an increase in insurance but would have to accept a higher deductible.

Mr. Beard said the revenue prediction assumes the composite index is unfrozen; however, if the composite index is frozen we will be further behind. Dr. Johnson said yes, by $845,000.

Ms. Hutchins said one of the latest statements she heard was they may go with the unfrozen but hold counties harmless who were hurt by the unfrozen and everybody would win. She said we won’t lose on the composite index but if they do away with the COLA we will lose about $500,000.

Mr. Beard said we are pretty close if the composite index is unfrozen and nothing else changes.

Mr. Beard said there is still a proposed 4 cent increase in property taxes out there for consideration by the county. He said we need to show where we would use the 4 cent in our budget. He said we need to show our budget with and without 4 cent tax increase. Culpeper County School Board 6/3/2018 11:39 PM Minutes February 22, 2010 Page 10 of 10

Ms. Hutchins said she doesn’t believe the 4 cents is in consideration. Mr. Beard said we still need to show what we are losing. Mr. Dasher said it is people.

Ms. Malulani said there is value in showing what we would do if we had more money.

Mr. Beard noted he has a meeting out of town early tomorrow morning. He asked permission to meet one on one with the superintendent to discuss the issues that are discussed later this evening in closed session.

Mr. Beard left the meeting.

The board observed a 10 minute break at 8:25 p.m.

On motion of Ms. Hutchins seconded by Ms. Malulani, the Board went into closed session at 8:35 p.m.:

[a] Discussion of Personnel relative to budget constraints for FY2011 as permitted by the by the Code of Virginia 2.2-3711 (A) (1)

Motion carried 6-0 by voice vote. (Mr. Beard was absent.)

On motion of Ms. Hutchins seconded by Mr. Houck, the Board ended the closed session at 10:10 p.m. and certified by the following roll call vote that only public business matters lawfully exempted from open meeting requirements and only the items included in the motion to go into closed session were discussed:

YEAS: 6 George Dasher Robert Houck Elizabeth Hutchins Russell Jenkins Anne Luckinbill Leanne Malulani

ABSENT: 1 Robert Beard

On motion of Ms. Malulani seconded by Ms. Hutchins, the School Board voted to adjourn at 10:11 p.m. Motion carried 6-0 by voice vote. (Mr. Beard was absent.)

______JEFFREY R. SHOMO, CLERK GEORGE T. DASHER, CHAIR