WHEREAS, The Board of Education of Montgomery County is authorized by the Education Article and State Government Article of the Annotated Code of Maryland to conduct certain meetings or portions of its meetings in closed sessions; now therefore be it
Resolved, That the Board of Education of Montgomery County conduct a closed session on July 28, 2014, in Room 120 of the Carver Educational Services Center,
850 Hungerford Drive, Rockville, Maryland, from 4:30 p.m. to approximately 6:00 p.m.; and be it further
Resolved, That the Board receive legal advice as the Board adjudicates appeals, which is a quasi-judicial function outside the purview of the Open Meetings Act and as permitted under Section 10-508(a)(7) of the State Government Article; and be it further
Resolved, That the Board receive legal advice concerning the work of the Ad Hoc Committee for Review of Board Processes and Guidelines on Board Expenditures, as permitted under Section 10-508(a)(7) of the State Government Article; and be it further
Resolved, That the Board receive legal advice and consult with staff concerning litigation relating to an unsuccessful bid, as permitted under Section 10-508(a)(7) and Section 10-508(a)(8) of the State Government Article; and be it further
Resolved, That the superintendent of schools brief the Board on the Human Resources Appointment with a subsequent vote in open session, which is an administrative function outside the purview of the Open Meetings Act and, to the extent any individual employee is discussed, as permitted under Section 1-508(a)(1) of the State Government Article; and be it further
Resolved, That the superintendent of schools provide the Equal Employment Opportunities Report and Sexual Harassment Quarterly Report to the Board, which is an administrative function and outside the purview of the Open Meetings Act; and be it further
Resolved, That the meeting continue in closed session until the completion of business.
WHEREAS, It is necessary to appoint an architectural firm to provide professional and technical services during the design and construction phases for the Lucy V. Barnsley Elementary School addition project; and
WHEREAS, The preliminary construction cost estimate for this work is approximately $11,009,000; and
WHEREAS, Funds for architectural planning were programmed as part of the Fiscal Year 2015 Capital Budget; and
WHEREAS, An Architect Selection Committee, in accordance with procedures adopted by the Board of Education on April 20, 2006, identified Walton, Madden, Cooper, Robinson, Poness, Inc. as the most qualified firm to provide the necessary professional architectural and engineering services; and
WHEREAS, Staff in the Department of Facilities Management has negotiated a fee for the necessary architectural and engineering services; now therefore be it
Resolved, That the Montgomery County Board of Education enters into a contractual agreement with the architectural firm of Walton, Madden, Cooper, Robinson, Poness, Inc. to provide professional architectural and engineering services for the Lucy V. Barnsley Elementary School addition project for a fee of $724,500.
WHEREAS, It is necessary to appoint an architectural firm to provide professional and technical services during the design and construction phases for the North Bethesda Middle School addition project; and
WHEREAS, The preliminary construction cost estimate for this work is approximately $16,098,000; and
WHEREAS, Funds for architectural planning were programmed as part of the Fiscal Year 2015 Capital Budget; and
WHEREAS, An Architect Selection Committee, in accordance with procedures adopted by the Board of Education on April 20, 2006, identified Samaha Associates, P.C. as the most qualified firm to provide the necessary professional architectural and engineering services; and
WHEREAS, Staff in the Department of Facilities Management has negotiated a fee for the necessary architectural and engineering services; now therefore be it
Resolved, That the Montgomery County Board of Education enters into a contractual agreement with the architectural firm of Samaha Associates, P.C. to provide professional architectural and engineering services for the North Bethesda Middle School addition project for a fee of $1,082,178.
WHEREAS, It is necessary to appoint an architectural firm to provide professional and technical services during the design and construction phases for the Kensington Parkwood Elementary School addition project; and
WHEREAS, The preliminary construction cost estimate for this work is approximately $9,497,000; and
WHEREAS, Funds for architectural planning were programmed as part of the Fiscal Year 2015 Capital Budget; and
WHEREAS, An Architect Selection Committee, in accordance with procedures adopted by the Montgomery County Board of Education on April 20, 2006, identified Grieves, Worrall, Wright & O’Hatnick, Inc. as the most qualified firm to provide the necessary professional architectural and engineering services; and
WHEREAS, Staff in the Department of Facilities Management has negotiated a fee for the necessary architectural and engineering services; now therefore be it
Resolved, That the Montgomery County Board of Education enters into a contractual agreement with the architectural firm of Grieves, Worrall, Wright & O’Hatnick, Inc. to provide professional architectural and engineering services for the Kensington Parkwood Elementary School addition project for a fee of $598,050.
WHEREAS, It is necessary to appoint a professional firm to provide civil engineering services related to the installation of artificial turf at Winston Churchill High School; and
WHEREAS, A Consultant Selection Committee, in accordance with procedures adopted by the Board of Education on April 20, 2006, identified Nobis Engineering, Inc. as the most qualified firm to provide the necessary professional services; and
WHEREAS, Staff in the Department of Facilities Management has negotiated a fee for the necessary civil engineering services for this project; now therefore be it
Resolved, That the Montgomery County Board of Education enters into a contractual agreement with Nobis Engineering, Inc. to provide professional civil engineering services for the installation of artificial turf at Winston Churchill High School for a fee of $49,840; and be it further
Resolved, That the consultant appointment is contingent upon Montgomery County Council approval of a Fiscal Year 2015 supplemental appropriation and amendment to the Fiscal Year 2015–2020 Capital Improvements Program for the artificial turf installation at Winston Churchill High School.
WHEREAS, The Fiscal Year 2014 Capital Budget and Amendments to the Fiscal Year 2013–2018 Capital Improvements Program includes planning funds for the Wood Acres Elementary School addition project; and
WHEREAS, The design phase of this project is commencing with the construction phase anticipated to begin in January 2015 and be completed by August 2016; and
WHEREAS, Staff in the Department of Facilities Management has recommended that this project be completed using a construction management delivery system due to its complexities and scope of work; and
WHEREAS, A Consultant Selection Committee, utilizing procedures adopted by the Board of Education on April 20, 2006, identified Hess Construction + Engineering Services as the most qualified firm to provide the necessary management services; and
WHEREAS, The management services will be implemented in two phases; and
WHEREAS, The initial phase will consist of preconstruction services for cost estimating, value engineering, constructability reviews, and the development of the construction implementation schedule; and
WHEREAS, Staff in the Department of Facilities Management has negotiated a fee for the preconstruction services; and
WHEREAS, The second phase will consist of general construction management services, and a fee for this phase will be negotiated once the preconstruction services are completed; now therefore be it
Resolved, That the Montgomery County Board of Education enters into a contractual agreement with Hess Construction + Engineering Services to provide preconstruction services for cost estimating, value engineering, constructability reviews, and the development of the construction implementation schedule for the Wood Acres Elementary School addition project for a fee of $38,500.
Montgomery County Public Schools (MCPS) is required to request transfers among state categories to align budgeted appropriation with actual expenditures. Categorical transfers are subject to approval by the County Council. Fiscal Year (FY) 2014 categorical transfers total $5,725,000, which is 0.3 percent of the total operating budget.
Overall, the FY 2014 MCPS Operating Budget ended with an expenditure surplus of $13,464,198. There were surpluses in Category 1, Administration; Category 2, Mid-level Administration; Category 3, Instructional Salaries; Category 4, Textbooks and Instructional Supplies; Category 5, Other Instructional Costs; Category 7, Student Personnel Services; Category 8, Health Services; and Category 11, Maintenance of Plant. Category 6, Special Education; Category 9, Student Transportation; Category 10, Operation of Plant and Equipment; and Category 12, Fixed Charges ended the year in deficit. Revenues had an FY 2014 end-of-year surplus of $3,577,531.
As a result of cumulative savings in FY 2011, FY 2012, and FY 2013, and after the County Council appropriated $27.0 million of the fund balance to fund the FY 2014 Operating Budget, the FY 2014 beginning fund balance as of July 1, 2013, was $22.2 million. Based on the overall end-of-year expenditure and revenue surplus of $17,041,729, the FY 2014 end-of-year fund balance is $39.34 million. On May 22, 2014, the County Council approved the use of $38.2 million from the fund balance to fund the FY 2015 MCPS Operating Budget.
During the past fiscal year, staff closely monitored revenues and expenditures. Coordinated by the Office of the Chief Operating Officer, monitoring was led by the Department of Management, Budget, and Planning (DMBP) and the Department of Financial Services. This financial monitoring process is extremely careful, comprehensive, and detailed. Primary and secondary account managers reviewed each of their accounts on a monthly basis and reported expenditure projections for the rest of the fiscal year. DMBP staff reviewed and analyzed these projections using quantitative models, as well as knowledge of previous expenditure patterns and changing circumstances. The Financial Management System, a comprehensive financial system integrated with the Human Resources Information System, provided data that enabled staff to monitor and control expenditures.
The Board of Education (Board) received detailed financial status reports throughout the past year. Each month, beginning in November 2013, the Board discussed the financial status report at its public meetings. These reports were transmitted to the county executive, the county’s Office of Management and Budget, and the County Council. Final FY 2014 expenditures are consistent with the trends indicated in the monthly reports. The following summary presents the results for both revenues and expenditures and how the end-of-year results differ from the appropriation.
REVENUE
Total revenue for FY 2014 was $2,245,722,068, which was $3,577,531 more than the revised budget of $2,242,144,537. Actual revenue by source is described below.
County
Revenue from the county was $1,448,250,594. This is the same as the amount budgeted for
FY 2014.
State
Revenue from the state was $608,506,403. This was $3,516,788 more than the $604,989,615 budgeted for FY 2014. The surplus revenue was related to funds that MCPS received for special education students who attended nonpublic schools. Early in the fiscal year, the state informed MCPS of a change in the calculation of the local contribution that is based on 300 percent of the average per-pupil cost, plus 30 percent of the cost that exceeds the 300 percent amount. As the 300 percent amount is lower, the MCPS share of the cost is lower and the state’s share is higher. The additional revenue is related to the higher amount the state provided per student and for additional students who were served in nonpublic schools during FY 2014.
Federal
Revenue from Impact Aid was $193,173. This was $206,827 less than the $400,000 budgeted for FY 2014. The impact of sequestration resulted in less support for federally connected students.
Other
Revenue from other sources was $3,993,278, which was $267,570 more than the amount budgeted for FY 2014. Most of the additional revenue was from summer school fees.
Appropriated Fund Balance
The revenue from the appropriated fund balance was $32,450,617. This amount included $5,478,166 from prior-year encumbrances. The amount does not include any changes in fund balance that resulted from changes in revenue and expenditures during FY 2014.
Enterprise Funds and Supported Projects
Pending final closeout, actual revenue from enterprise funds is projected to be $60,421,436, and revenue from supported projects is projected to be $91,906,567.
EXPENDITURES
There was an end-of-year net expenditure surplus of $14,015,683 for FY 2014. An explanation of the results by state category is provided below.
Category 1, Administration, reflected a surplus of $847,537. There is no significant change from the amount reported to the Board in the April 30, 2014, financial report. There was a position salary surplus of $1,249,489 and a surplus of $406,744 for temporary part-time salaries. This was offset by a deficit of $1,042,261 for contractual services. This deficit, which was projected to be $900,000 in the April financial report, was due to the greater than budgeted costs for legal services and the hiring of outside contractors for technology services as a result of vacant positions. There was a net surplus of $233,565 for supplies and materials, equipment, and local travel mileage reimbursement. Savings in Category 1 were 2.2 percent of budgeted expenditures.
Category 2, Mid-level Administration, reflected a surplus of $2,344,308. This is an increase of $144,308 from the amount reported to the Board in the April 30, 2014, financial report. Most of the surplus ($2,073,331) was a result of greater than budgeted lapse and turnover savings. There was a deficit in temporary part-time salaries of $112,590 resulting from the 2 days of school added on April 21, 2014, and June 13, 2014, to make up for snow days; and a net surplus of $383,567 for contractual services, supplies and materials, and local travel mileage reimbursement. Savings in Category 2 were 1.7 percent of budgeted expenditures.
Category 3, Instructional Salaries, reflected a surplus of $13,223,243, which is $276,757 less than the projected surplus reported in the April 30, 2014, financial report. Most of the surplus ($10,330,573) was related to position salaries. The surplus of $2,892,670 in temporary part-time salaries was primarily a result of less than anticipated substitute usage, stipend pay, and workers’ compensation payments. Savings in Category 3 were 1.6 percent of budgeted expenditures.
Category 4, Textbooks and Instructional Supplies, reflected a surplus of $1,129,281. This is $129,281 more than the amount that was reported to the Board in the April 30, 2014, financial report. The surplus was a result of unspent funds for textbooks, instructional supplies and materials, and media materials. Savings in Category 4 were 4.8 percent of budgeted expenditures.
Category 5, Other Instructional Costs, reflected a surplus $749,378, which was $549,378 more than the amount projected in the April 30, 2014, financial report. There was less spending than projected for instructional computer maintenance, local travel mileage reimbursement, and school furniture and equipment. Savings in Category 5 were 6.1 percent of budgeted expenditures. Savings in general instruction program costs in Categories 3, 4, and 5 were 1.7 percent of budgeted expenditures.
Category 6, Special Education, reflected a deficit of $857,029, which was $457,029 more than the $400,000 deficit reported in the April 30, 2014, financial report. There was a surplus of $1,050,470 in position salaries, approximately the same amount as reported in the April financial report. The $777,137 deficit for temporary part-time salaries was $277,137 more than the $500,000 reported in the April 30, 2014, financial report. Actual expenses were higher than projected for interpreters, long-term leave, and overtime resulting from services provided during the two additional days added to the school calendar to make up for snow days. There was a deficit of $321,962 in contractual services, which was partially offset by a surplus of $303,856 in textbooks and instructional materials from unspent school allocations, equipment, and other expenditures.
The deficit of $1,112,256 for tuition for students with disabilities in nonpublic schools was $87,744 lower than the $1.2 million deficit projected in the April 30, 2014, financial report. The overall deficit was due to a higher than anticipated number of students that were enrolled in school-age day programs during the year. The deficit also was attributable to the fact that the approved FY 2014 Operating Budget included an assumption of a 2.0 percent tuition rate increase, and the final state-approved rate increase was 2.5 percent. The deficit in Category 6 was 0.3 percent of budgeted expenditures.
Category 7, Student Personnel Services, reflected a surplus of $217,542, which is the same as projected in the April 30, 2014, financial report. The net surplus consisted of a $423,156 surplus in position salaries and a deficit of $233,395 in temporary part-time salaries, due primarily to higher than budgeted costs for long-term leave. There was an end-of-year surplus of $27,781 in this category for local travel mileage reimbursement. Savings in Category 7 were 2.1 percent of budgeted expenditures.
Category 8, Health Services, reflected a surplus of $21,014 due to lower than anticipated program needs.
Category 9, Student Transportation, reflected a deficit of $205,513. This category was projected to end the year on budget. There was a position salary surplus of $2,668,543 related to approximately 63 vacant Full-time Equivalent bus operator positions. There was a deficit of $3,808,832 for temporary part-time school bus operator salaries, including costs for overtime incurred during the two additional days added to the school calendar to make up for snow days. There was a net surplus of $934,776 for contractual services, bus fuel, bus parts and supplies, and other operating expenses. This amount is $334,776 more than the surplus projected in the April 30, 2014, financial report. The deficit in Category 9 was 0.2 percent of budgeted expenditures.
Category 10, Operation of Plant and Equipment, reflected an end-of-year deficit of $3,953,883, which was $246,117 less than the $4,200,000 projected in the April 30, 2014, financial report. The actual position surplus was $685,315 rather than the $500,000 that was projected in the April financial report. Actual temporary part-time salaries reflected a deficit of $2,009,360, which was $190,640 less than the $2.2 million projected. The deficit was attributable to the use of building services substitutes to fill vacancies, overtime expenses that were incurred during the 10 days that schools were closed due to weather emergencies, and the costs associated with the two additional days added to the school calendar to make up for snow days.
There was a net surplus of $80,481 in contractual services, supplies and materials, and equipment. The actual expenditure deficit for utilities was $2,710,319, which is $210,319 more than the deficit projected in the April financial report. The overall deficit was a result of cold weather through March that resulted in an increase in the consumption of electricity, natural gas, and fuel oil. In addition, rates increased due to the imbalance between supply and demand. While the price for the majority of MCPS’ anticipated electricity and natural gas requirements was fixed through contracts, a portion is purchased at market rates. The deficit was in contrast to the last several years when large surpluses were based on moderate weather, decreasing energy rates, and increased energy conservation. The deficit in Category 9 was 3.4 percent of budgeted expenditures.
Category 11, Maintenance of Plant, reflected an end-of-year surplus of $493,734. In the April 30, 2014, financial report, the category was projected to end the year on budget. There was an actual position and temporary part-time salary balance of $1,135,200, which was $235,200 more than the $900,000 surplus projected in the April 30, 2014, financial report. Actual end-of-year expenditures for contractual equipment repairs resulted in a surplus of $128,444. This is $278,444 more than the $150,000 deficit projected in the April financial report. Expenditures for equipment repairs were less than anticipated. The actual amount spent for maintenance and grounds care supplies ended the year with a deficit of $404,532 rather than a deficit of $260,000, which was projected. The actual end-of-year deficit for vehicle operating costs was $365,378 rather than $490,000, which was projected in the April financial report. The deficits in supplies and vehicle operating costs were primarily a result of snow removal activities that occurred during the winter months. The deficit in Category 11 was 1.4 percent of budgeted expenditures.
Category 12, Fixed Charges, reflected a deficit of $545,413. The category was projected to end the year on budget. Based on actual end-of-year billings, the deficit for tuition expenses was $849,663, which was $149,660 more than the $700,000 deficit projected in the April 30, 2014, financial report. Also, there was a deficit of $298,503 in the Federal Insurance Contribution Act tax. Offsetting this deficit was a surplus of $328,581 for the administrative retirement fee that is paid to the state; a surplus of $256,705 for workers’ compensation; and a net surplus of $17,467 for unemployment, other insurance, and other items.
Category 14, Community Services, ended the year on budget as projected in the April 30, 2014, financial report.
I recommend the Board of Education approves the following resolution regarding categorical transfers:
WHEREAS, Category 6, Special Education, reflected a deficit as of June 30, 2014, primarily related to a higher than anticipated number of students who enrolled in nonpublic school-age day programs and higher than budgeted costs for tuition; and
WHEREAS, Category 9, Student Transportation, reflected a deficit as of June 30, 2104, primarily related to costs associated with two days of school added on April 21, 2014, and June 13, 2014, to make up for snow days; and
WHEREAS, Category 10, Operation of Plant and Equipment, reflected a deficit as of June 30, 2014, as a result of higher than anticipated costs for utilities and temporary part-time costs due to colder than normal winter temperatures and 10 days that schools were closed due to weather emergencies; and
WHEREAS, The required funds are available for transfer from Category 3, Instructional Salaries; now therefore be it
Resolved, That the superintendent of schools be authorized, subject to the approval of the County Council, to effect the following categorical transfers:
|
Category |
Description |
To |
From |
|
|
|
|
|
|
3 |
Instructional Salaries |
|
$5,725,000 |
|
6 |
Special Education |
$900,000 |
|
|
9 |
Student Transportation |
225,000 |
|
|
10 |
Operation of Plant and Equipment |
4,000,000 |
|
|
12 |
Fixed Charges |
600,000 |
________ |
|
|
|
|
|
|
Total |
|
$5,725,000 |
$5,725,000 |
and be it further
Resolved, That a copy of this resolution be sent to the county executive and the County Council; and be it further
Resolved, That the county executive be requested to recommend approval of the categorical transfers to the County Council.
The following resolution is offered for the Board’s consideration:
WHEREAS, The Board of Education President formed an Ad Hoc Committee for Review of Board Processes and Guidelines on Board Expenditures (Ad Hoc Committee); and
WHEREAS, The Ad Hoc Committee has made recommendations regarding changes to the Board of Education Handbook’s section on Board Member Compensation and Expense Standards, as reflected in Attachment A; and
WHEREAS, The Ad Hoc Committee has made recommendations concerning utilization of forms to facilitate Board members’ compliance with the revised Board Member Compensation and Expense Standards and their exercise of prudent fiscal stewardship; and
WHEREAS, The Ad Hoc Committee has made recommendations concerning the adoption of an annual conference/meeting list for 2014-2015, as reflected in Attachment C; now therefore be it
Resolved, That the Board of Education adopt the Ad Hoc Committee’s recommendations regarding changes to the Board of Education Handbook’s section on Board Member Compensation and Expense Standards, as reflected in Attachment A; and be it further
Resolved, That the Board of Education adopt the Ad Hoc Committee’s recommendations concerning utilization of forms, based on the templates provided in Attachment B, which may need to be updated or revised periodically by Board staff with input from Board members; and be it further
Resolved, That the Board of Education adopt the Ad Hoc Committee’s recommendations concerning the adoption of an annual conference/meeting list for 2014-2015, as reflected in Attachment C.
WHEREAS, The Board of Education of Montgomery County is authorized by the Education Article and State Government Article of the Annotated Code of Maryland to conduct certain meetings or portions of its meetings in closed sessions; now therefore be it
Resolved, That the Board of Education of Montgomery County conduct a closed session on August 21, 2014, from 9:00 to approximately 11:30 a.m. and from 12:30 to approximately 1:30 p.m. in Room 120 of the Carver Educational Services Center, 850 Hungerford Drive, Rockville, Maryland; and be it further
Resolved, That the Board of Education anticipates that the closed session will include a discussion of personnel matters, as permitted under Section 10-508(a)(1) of the State Government Article and Section 4-107(d) of the Education Article; the review and adjudication of appeals in its quasi-judicial capacity; consultation with counsel to obtain legal advice on those appeals, as permitted under Section 10-508(a)(7) of the State Government Article; a discussion of matters constituting an administrative function outside the purview of the Open Meetings Act (Section 10-502(b) of the State Government Article); and the Board will publish more detailed Resolutions for Closed Session when particular topics for discussion are identified; and be it further
Resolved, That this meeting shall continue in closed session until the completion of business.
On July 15, 2014, the Board of Education voted unanimously among those present to conduct a closed session, as permitted under the Education Article Section 4-107(d) and State Government Article Section 10-508(a), et seq., of the Annotated Code of Maryland.
The Board of Education of Montgomery County met in closed session on July 15, 2014, from 9:08 a.m. to 10:13 a.m. in Room 120 of the Carver Educational Services Center, 850 Hungerford Drive, Rockville, Maryland, and:
In attendance at the 9:08 a.m. closed session were Christopher Barclay, Shirley Brandman, Judith Docca, Michael Durso, Dahlia Huh, Philip Kauffman, Patricia O’Neill, Rebecca Smondrowski, Suzann King, Kathy Yorro, and Patrick Clancy. At 10:11 a.m., Mr. Clancy left the meeting and the following staff joined the meeting: Larry Bowers, Joshua Civin, Maria Navarro, Kimberly Statham, Joshua Starr, Karalee Turner-Little, and Andrew Zuckerman.
WHEREAS, The Board of Education has met in closed session and deliberated on appeals brought before its members acting in its quasi-judicial capacity under Section 10-508(a) of the State Government Article of the Annotated Code of Maryland; now therefore be it
Resolved, That the Board of Education hereby decides the following appeals reflective of the Board members’ votes in closed session, the dispositions of which will be recorded in the minutes of today’s meeting:
Appeal Number Type
NEC-2014-37 Placement
T-2014-49 Transfer
T-2014-52 Transfer
T-2014-53 Transfer
T-2014-54 Transfer
DCC-2014-55 Placement
T-2014-56 Transfer
T-2014-57 Transfer
2014-14 Magnet
2014-29 Dismissal