On Thursday, August 18 the Board of the SDUHSD held a special board meeting followed by a regularly scheduled board meeting.
In the Special Board Meeting:
1. The Board Approved the District joining a class action lawsuit against distributors of opioids and others associated with the opioid crisis to recover costs borne by the District from the crisis.
2. Capital projects were discussed and the Board provided additional guidance on the prioritization of capital spending throughout the District.
3. An updated timeline for the search for a superintendent was approved by the Board.
In the General Board Meeting:
4. The Board received a presentation from a member of Congressman Mike Levin’s staff on US Military Academies.
5. The Board received a presentation from staff on the Social and Emotional Support services offered by the District.
6. Members of the public provided some interesting comments on non-Agenda items.
7. The Consent Agenda was approved, with discussion on one item related to staff professional development in the field of Diversity, Equity, and Inclusion.
8. The Board approved a sublease of agreement between the Boys and Girls Club and Cedar Cove school.
9. The Board approved the employment contract for Dr. Olga West, the District’s new Associate Superintendent of Human Resources.
10. The Board approved an increase in the pay for Substitute Teachers
11. The Board adopted a new target for our financial reserves of 15% of our annual budget
12. The Board discussed offering COVID testing at some District sites.
13. The Board was provided an update on the potential to provide middle school bus routes.
14. Superintendent Lynch provided an update on COVID and how it is affecting our schools.
Superintendent Lynch provided an update on COVID and how it is affecting our schools.
Staff is working very hard to ensure that we are following all the State and County mandates regarding COVID protocols such as testing, masking, quarantining, etc. Board Meeting 2021.08.19
The Board was updated on the potential to provide middle school bus routes.
Many parents find it a burden to transport their kids to and from middle school. The prior Board decided, primarily for economic reasons, to cancel all bus service (except for Special Ed students).
At my request, District administration is conducting an economic analysis and parent survey to determine if there is enough demand to sustain any bus routes, at least in the higher-demand areas, and what the cost would be to parents.
I’ll expect another update at an upcoming meeting.
The Board adopted a new target for our financial reserves of 15% of our annual budget.
Our District is in an interesting fiscal position. We are “Capital Funding Long” and “Operating Funding Short.” By that I mean that we have a somewhat large amount of money available for capital projects (Over $80 million as described above), but on an operating basis we are spending more than our revenues each year.
In rough numbers (considering the impact of one-off expenditures, etc.), we are running an annual operating deficit of about $5 million. If this continues, we will be below the State required minimum reserves within a year or two, and out of money within three years.
Recognizing this situation, the Board adopted a policy to target a 18% reserve balance, with a plan to get there within five years. Unless we see a substantial increase in property tax revenues, this will be a heavy lift.
The Board approved a sublease agreement between the Boys and Girls Club and Cedar Cove school.
After months of negotiations, the Board was presented with a proposed sublease of District property at Oak Crest Middle School, currently leased by the Boys and Girls club. The sublease is between the Boys and Girls Club and the Cedar Cove school for a couple of classrooms during school hours. Per the terms of the primary lease with the Boys and Girls Club, the District must approve any sublease of the property.
This truly a “multi-win” for all constituents.
The Boys and Girls Club receives needed revenue to help fill their budget gaps. They have agreed to push some of these funds into building repairs for the benefit of the District.
The Cedar Cove school has a home for their students at a location they are happy with and under terms acceptable to the school. Parents, their children, and the Cedar Cove school are ecstatic.
Our SDHUSD District keeps 10% of the sublease revenue, which will go into our general fund to offset other expenses. We also receive the benefit of the Boys and Girls Club building improvements.
Our District legal counsel vetted the contract to ensure that appropriate insurance and indemnities exist to protect our District from potential liabilities.
There are no losers in this transaction.
I was surprised that the vote was not unanimous (which means 4-0.) The vote was 3-1 with Trustee Katrina Young voting no. I asked Ms. Young if she would like to explain her vote given that I cannot find a single constituent that would be disadvantaged from this arrangement.
She said she felt Tina Douglas spent too much time drafting the contract (although most of Ms. Douglas’ time was spent on the Boys and Girls Club lease contract, not the sublease) and that our existing schools are good so Cedar Cove is unnecessary.
I compare that to the video I received from a parent that I wish I could show you, but I did not ask for permission to post it, so I will describe it to you.
Imagine two girls, perhaps 7 and 5 years old, dressed in very bright and colorful tutus, standing on their couch in their living room. The older one says “I’m [name] and this is my little sister [name]. Thank you Mr. Allman for allowing us to go to school.” The younger one says something similar, and then they start jumping up and down on the couch, “thank you, thank you, thank you” with the biggest smiles on their faces. My heart just melted. Thank you to the parent who sent me that--you made my day and my week!
The Consent Agenda was approved, with discussion on one item related to staff professional development in the field of Diversity, Equity, and Inclusion.
Many constituents have asked that the District provide details on any instructional materials used in staff professional development or student classes that relate to Diversity, Equity, and Inclusion, ethnic studies, and similar subjects. I asked staff to provide these materials as they become available.
Members of the public provided some interesting comments on non-Agenda items.
Ten members of the public were randomly chosen to speak on items not listed on the agenda. I was surprised and humbled that 6 of these speakers called in specifically to support me as a Trustee, and to denounce the recall efforts against me, sponsored by the teachers union.
I will address some of the mistruths and rumors spread by the Teachers Union in another post, but for now I want to thank everyone who spoke on my behalf. I also recognize that many other supporters asked to speak but were not selected. To all of you I thank you from the bottom of my heart. I will always put the interests of parents and students first.
The Board received a presentation from staff on the Social and Emotional Support services offered by the District.
This comprehensive overview of the framework in place at each campus described personnel and services available to students. We have layers of support with increasing levels of intervention as needed. The framework seemed thoughtful and was presented well by the District staff. It is my hope that students who need these services know that they are available and find them helpful.
The Board received a presentation from a member of Congressman Mike Levin’s staff on US Military Academies.
I’m not fully versed in this subject, but members of Congress can nominate students into our military academies. The Board approved having this program publicized at our school through site visits, presentations, etc.
More on this as I learn more.
Superintendent Search Process
District staff proposed a suggested timeline with various milestones in the process of hiring a new Superintendent to replace interim Superintendent Lucile Lynch.
The current schedule, which is subject to change, is to hire a search firm, identify candidates, interview them, make a selection, and appoint a new superintendent by October. This seems impossibly aggressive to me unless there are known and local candidates available.
Capital projects were discussed, and the Board provided additional guidance on the prioritization of capital spending throughout the District.
As a reminder, years ago voters approved the issuance of bonds to fund capital projects in the District, known as “Prop AA Bonds.” The amount of funds allowed to be raised by the District was capped at the lower of 1) A maximum total dollar amount, 2) a maximum amount to be paid in property taxes per $100,000 of assessed property value.
For several years the constraint against additional borrowing was #2 – taxpayers were paying the maximum allowed of $25 per $100,000 of assessed value. The District did not anticipate having the ability to borrow additional funds for perhaps 10 or more years.
However, the recent decline in interest rates allowed the District to refinance the outstanding obligations and lower the cost of borrowing, such that the cap of $25 per $100,000 is no longer a constraint. The District sold the remainder of the authorized bonds earlier this year.
The bottom line is that the District now has +/- $80 million of funds available for capital projects, well ahead of the prior plan. This allows us to conduct much needed modernization of our facilities and build new facilities, such as swimming pools. By law, these funds cannot be held indefinitely, and must be spent at a reasonably prudent pace. Think 3-5 years for most of the funds to be expended.
The Board was asked to opine on priorities for this spending. My issue is that I, and I’m sure the rest of the Board as well, do not have a good understating of the details of the proposed expenditures. For example, it’s difficult to weigh the costs, benefits, and priorities of, say, building a new Oak Crest Middle School Multi-Purpose Athletic Building for $3.65 million vs. a new weight room building at La Costa Canyon for $1.72 million.
As such, my comments and questions during the meeting focused mainly on process. I suggested that each District site should create its own list of priorities, and present what it would do with, for example, $5 million, $10 million, or $20 million of capital. The District should seek community input, and the Board should review these proposed projects at greater level of detail that could include renderings and site visits. Only then would I, personally, be prepared to have a meaningful discussion of priorities.
Having said that, the Board did provide some direction to staff. Specifically:
1. Projects to improve safety and bring district assets up to current Code should be given priority,
2. Aquatic facilities should be given priority, and
3. The renovation of the existing District Office should take place expeditiously with an expanded modernization to bring the building up to code and provide a long-term home to district administration.
The Board Approved the District joining a class action lawsuit against distributors of opioids and others associated with the opioid crisis to recover costs borne by the District from the crisis.
The Board heard in closed session from an attorney representing plaintiffs in a class-action lawsuit against various parties related to the opioid crisis. After a discussion, the Board voted unanimously to join the lawsuit.
Tens of Billions of dollars are being sought by various plaintiffs to recover their costs associated with the epidemic.
Joining the lawsuit will not cost the District any money. All direct legal and other fees are being covered by the plaintiffs’ attorneys, who are working on a contingency fee basis, under a “discounted” fee arrangement.
Much like the lawsuit against the vaping company Juul, the District can potentially recover a portion of any settlement or judgment. The plaintiffs current ask is in the Billions of dollars, but there is no estimate yet what SDUHSD might recover.