WHEREAS, The educators and others who are employed by Montgomery County Public Schools are key partners in the important work and achievements of the school system; now therefore be it

Resolved, That the Board of Education approves the monthly Human Resources and Development Report with its listings identifying new employees, employee resignations, and other employee status updates; and be it further

Resolved, That this resolution be made a part of the minutes of this meeting.

WHEREAS, The Board of Education of Montgomery County is authorized by the Education Article and General Provisions 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 December 9, 2014, in Room 120 of the Carver Educational Services Center 850 Hungerford Drive, Rockville, Maryland,  from  12:50 p.m. to approximately 2:30 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
3-305(b)(7) of the General Provisions Article; and be it further

Resolved, That the superintendent of schools brief the Board on the Human Resources Monthly Report, 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 3-305(b)(1) of the General Provisions Article; and be it further

Resolved, That the superintendent of schools brief the Board on an appointment with a subsequent vote in open session, as permitted under Section 3-305(b)(1) of the General Provisions Article; and be it further

Resolved, That the Board of Education discuss appointments to the Board of Education committees, 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 is discussed, as permitted under Section
3-305(b)(1) of the General Provisions Article; and be it further

  Resolved, That the meeting continue in closed session until the completion of business.

REVISED

WHEREAS, Funds have been budgeted for the purchase of equipment, supplies, and contractual services; and

WHEREAS, Funds have been budgeted for the purchase and financing of  56 Kubota tractors awarded through Bid No. 7112.5 in the amount of $728,672 to be financed through the Master Lease/Purchase Agreement; and

WHEREAS, The acquisition of 56 Kubota tractors through financing agreements has been reviewed by legal counsel; now therefore be it

Resolved, That the 56 Kubota tractors in the amount of $728,672 be purchased and financed for a
five-year term under the Master Lease/Purchase Agreement with Banc of America Public Capital Corporation; and be it further

Resolved, That the proceeds from the aforementioned financing be used to reimburse
Montgomery County Public Schools accounts to the extent that such vehicles have been or will be acquired before closing; and be it further

Resolved, That the president of the Board of Education and the superintendent of schools be authorized to execute the documents necessary for these transactions; and be it further

Resolved, That having been duly advertised, the following contracts will be awarded to the low bidders meeting specifications as follows:        

* Denotes Minority-, Female-, or Disabled-owned Business

**Planned Life-cycle Asset Replacement (PLAR)

Note:  Contract amounts will be based on individual requirements.

Formal bids and requests for proposals (RFPs) were obtained and evaluated by the Procurement Unit, Department of Materials Management, in consultation with the users.  The tabulations, cost comparisons, and budget account verifications are available in Procurement’s files.

WHEREAS, On behalf of the Board of Education, Board Member Rebecca Smondrowski inspected the Gaithersburg High School Revitalization/Expansion project (building and stadium field only) on Wednesday, August 20, 2014; and

WHEREAS, On behalf of the Board of Education, Board Member Rebecca Smondrowski inspected the Gaithersburg High School Revitalization/Expansion project (remaining sitework) on Monday, November 3, 2014; now therefore be it

Resolved, That the Board of Education accepts the Gaithersburg High School Revitalization/Expansion project (remaining sitework) and that the official date of completion is that date when formal notice is received from the architect that this project has been completed in accordance with the drawings and specifications, and all contract requirements have been met; and be it further

Resolved, That a copy of this resolution be transmitted to the Community Use of Public Facilities in the Montgomery County Interagency Coordinating Board to permit community use of Gaithersburg High School facilities.

WHEREAS, It is necessary to appoint an architectural firm to provide professional and technical services to perform a feasibility study for the Downcounty Consortium Elementary School Comprehensive Capacity Study project; and

WHEREAS, Funds for conducting feasibility studies 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 The Lukmire Partnership, 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, The Lukmire Partnership, Inc., to provide feasibility study services for the Downcounty Consortium Elementary School Comprehensive Capacity Study project for a fee of $93,900.

WHEREAS, It is necessary to appoint an architectural firm to provide professional and technical services to perform a feasibility study for the Gaithersburg Cluster Elementary School Comprehensive Capacity Study project; and

WHEREAS, Funds for conducting feasibility studies 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 Moseley Architects, 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 Board of Education enters into a contractual agreement with the architectural firm of Moseley Architects, P.C. to provide feasibility study services for the Gaithersburg Cluster Elementary School Comprehensive Capacity Study project for a fee of $84,300.

WHEREAS, On June 28, 2011, the County Council passed Expedited Bill 17-11 to amend the county’s Retiree Health Benefits Trust to fund Other Post-Employment Benefits for Montgomery County Public Schools and Montgomery College retirees; and

WHEREAS, Expedited Bill 17-11 provided for three trustees to represent the interests of Montgomery County Public Schools, nominated by the Board of Education, appointed by the county executive, and confirmed by the County Council; and

WHEREAS, On August 24, 2011, the Board of Education approved Mr. Charles J. Overly, business administrator at Gaithersburg High School, as a nominee, whose name was subsequently submitted to and approved by the county executive and appointed by the County Council; and

WHEREAS, Mr. Charles J. Overly submitted his resignation from the Consolidated Retiree Health Benefits Trust as of December 1, 2014; now therefore be it

Resolved, That on the recommendation of the Service Employees International Union Local 500, the Montgomery County Education Association, and the Montgomery County Association of Administrators and Principals, the Board of Education nominates Mr. Philip J. McGaughey, Jr., payroll specialist, Montgomery County Public Schools Division of Controller, to the Consolidated Retiree Health Benefits Trust as the bargaining units’ designee; and be it further

Resolved, That a copy of this resolution be sent to the county executive and the County Council.

The Montgomery County Board of Education (Board) maintains certain programs to provide post-employment health and welfare benefits for eligible employees and retirees of Montgomery County Public Schools (MCPS) and their beneficiaries (collectively, the Retiree Benefit Plan).

The Board previously established trusts to hold, invest, and administer the assets of the Retiree Benefit Plan pursuant to (i) the Amended and Restated Trust Agreement for the MCPS Other Post-employment Benefits (OPEB) Plan Trust, as amended and restated effective July 1, 2008, and as subsequently amended (the OPEB Trust, which refers to the Retiree Benefit Plan as the OPEB Plan), and (ii) the Montgomery County Board of Education Employee Benefit Trust Fund (the EBP Trust).

We recommend that the Board authorizes transfers of funds from the OPEB Trust to the EBP Trust so that the transferred funds will be distributed from the EBP Trust to pay benefits under the Retiree Benefit Plan by the end of the fiscal year in which the transfer occurs. This recommendation was shared with the members of the Board of Education’s Fiscal Management Committee at its November 18, 2014, meeting.

WHEREAS, The Board of Education maintains certain programs to provide post-employment health and welfare benefits for eligible employees and retirees of Montgomery County Public Schools and their beneficiaries; and

WHEREAS, The Board of Education previously established trusts to hold, invest, and administer the assets of the Other Post-Employment Benefits Plan pursuant to (i) an Amended and Restated Trust Agreement for the Montgomery County Public Schools Other Post-Employment Benefits Plan Trust, as amended and restated effective July 1, 2008, and as subsequently amended the Other Post-Employment Benefits Trust, and (ii) the Board of Education Employee Benefit Trust Fund; and

WHEREAS, The Board of Education now finds it desirable to transfer funds from the Other Post-Employment Benefits Trust to the Employee Benefit Trust Fund so that the transferred funds will be distributed from the Employee Benefit Trust Fund to pay benefits under the Other Post-Employment Benefits Plan by the end of the fiscal year in which the transfer occurs; and

WHEREAS, Section 7.2 of the Other Post-Employment Benefits Trust and Article IV of the Employee Benefit Trust Fund provide that the Board of Education may amend each of the trust agreements; and

WHEREAS, The Fiscal Management Committee has reviewed this recommendation and determined that it is advisable and in the best interests of the Board of Education to adopt this recommendation; now therefore be it

Resolved, That the Board of Education hereby approves, authorizes, and directs that $27.2 million be transferred from the Other Post-Employment Benefits Trust to the Employee Benefit Trust Fund in the current 2015 fiscal year to be distributed from the Employee Benefit Trust Fund to pay benefits under the Other Post-Employment Benefits Plan, so that the transferred funds will be used up entirely to pay benefits under the Other Post-Employment Benefits Plan by the end of Fiscal Year 2015; and be it further

Resolved, That the Board of Education hereby approves, authorizes, and directs that the remaining funds in the Other Post-Employment Benefits Trust, after the Fiscal Year 2015 transfer, be transferred from the Other Post-Employment Benefits Trust to the Employee Benefit Trust Fund in subsequent fiscal years to be distributed from the Employee Benefit Trust Fund to pay benefits under the Other Post-Employment Benefits Plan, so that the funds transferred in a fiscal year will be used up entirely to pay benefits under the Other Post-Employment Benefits Plan by the end of that fiscal year; and be it further

Resolved, That the superintendent of schools or his/her designee is hereby authorized and directed to (i) determine the amount of the transfers in subsequent fiscal years based on financial projections with the intention that the Other Post-Employment Benefits Trust assets be depleted as soon as practicable; and (ii) take such further actions and execute such documents as may be necessary or advisable to effect these resolutions; and be it further

Resolved, That upon transfer of all assets from the Other Post-Employment Benefits Trust to the Employee Benefit Trust Fund, the Other Post-Employment Benefits Trust shall terminate automatically; and be it further

Resolved, That the Other Post-Employment Benefits Trust is hereby amended to provide for:

(i) a transfer of $27.2 million from the Other Post-Employment Benefits Trust to the Employee Benefit Trust Fund in Fiscal Year 2015 to be distributed from the Employee Benefit Trust Fund to pay benefits under the Other Post-Employment Benefits Plan, so that the transferred funds will be used up entirely to pay benefits under the Other
Post-Employment Benefits Plan by the end of Fiscal Year 2015, and in all cases will be used for the exclusive benefit of Other Post-Employment Benefits Plan participants or their beneficiaries;

(ii) transfers of remaining funds in the Other Post-Employment Benefits Trust, after Fiscal Year 2015, from the Other Post-Employment Benefits Trust to the Employee Benefit Trust Fund, as directed by the superintendent of schools or his/her designee, to be distributed from the Employee Benefit Trust Fund to pay benefits under the Other Post-Employment Benefits Plan, so that the funds transferred in a fiscal year will be used up entirely to pay benefits under the Other Post-Employment Benefits Plan by the end of that fiscal year and in all cases will be used for the exclusive benefit of Other Post-Employment Benefits Plan participants or their beneficiaries; and

(iii) automatic termination of the Other Post-Employment Benefits Trust upon transfer of all assets from the Other Post-Employment Benefits Trust to the Employee Benefit Trust Fund; and be it further

Resolved, That the Employee Benefit Trust Fund is hereby amended to provide that it may accept transfers of assets from the Other Post-Employment Benefits Trust, and such transfers shall be distributed from the Employee Benefit Trust Fund to pay benefits under the Other Post-Employment Benefits Plan, so that the funds transferred in a fiscal year will be used up entirely to pay benefits under the Other Post-Employment Benefits Plan by the end of that fiscal year and in all cases will be used for the exclusive benefit of Other Post-Employment Benefits Plan participants or their beneficiaries; and be it further

Resolved, That the appropriate individuals are hereby authorized and directed to take such further actions and execute such documents as may be necessary or advisable to effect these resolutions, including notifying the Other Post-Employment Benefits Trust trustees.

On March 8, 2011, the Board of Education appointed CliftonLarsonAllen LLP to a two-year contract to perform auditing services for Montgomery County Public Schools for fiscal years 2011 and 2012, with two optional two-year extensions.  Since that time, CliftonLarsonAllen LLP has successfully completed the original audits and one of the two-year extension periods in the desired timeframe.  Based on its performance, I am recommending that the Board of Education extends the appointment of CliftonLarsonAllen LLP as the independent auditor for the third and final two-year period of the contract to perform the audits for fiscal years 2015 and 2016.

I am pleased to recommend the following resolution:

WHEREAS, CliftonLarsonAllen LLP has agreed to complete the audit for Fiscal Year 2015 for $136,000 and the Fiscal Year 2016 audit for $139,000 within the required timeframe; now therefore be it

Resolved, That the Board of Education continues the appointment of CliftonLarsonAllen LLP as the auditor for the Fiscal Year 2015 Montgomery County Public Schools audit for a fee of $136,000.

WHEREAS, On February 14, 2012, the Montgomery County Board of Education authorized staff in the Department of Facilities Management to utilize a construction management process for the William H. Farquhar Middle School Revitalization/Expansion project and awarded a contract for preconstruction services to Dustin Construction, Inc.; and

WHEREAS, On November 11, 2014, the Montgomery County Board of Education awarded the contract for the sitework package for the William H. Farquhar Middle School Revitalization/Expansion project; and

WHEREAS, The following low bids were received on October 30, 2014, for the William H. Farquhar Middle School Revitalization/Expansion project:

                Low Bidders                                                                              Amounts                 

and

WHEREAS, On October 30, 2014, Dustin Construction, Inc. received bid proposals for the remaining trade contracts for the project, which will be included in the guaranteed maximum price; and

WHEREAS, Detailed information on other bid proposals are available for review in the Department of Facilities Management; and

WHEREAS, The construction management contract contains provisions that permit Montgomery County Public Schools to assign the awarded trade contracts to Dustin Construction, Inc. as part of a guaranteed price agreement to complete the William H. Farquhar Middle School Revitalization/Expansion project; and

WHEREAS, Staff in the Department of Facilities Management has negotiated and recommends approval of a guaranteed price contract with Dustin Construction, Inc. for the completion of the William H. Farquhar Middle School Revitalization/Expansion project that includes the assignment of trade work awarded by Montgomery County Public Schools, along with all management and general conditions costs; and

WHEREAS, Dustin Construction, Inc. has agreed to accept the assignment of the William H. Farquhar Middle School Revitalization/Expansion project trade contracts awarded on November 11, 2014, and December 9, 2014, and complete the project for the guaranteed price; and

WHEREAS, The aggregate goal for Maryland Department of Transportation-certified Minority Business Enterprise participation established for this project was 17 percent; and

WHEREAS, The aggregate Minority Business Enterprise participation submitted is 23.17 percent Maryland Department of Transportation-certified, of which 5.19 percent is African American-owned; 14.74 percent is women-owned; 0.18 percent Asian American-owned; and 3.06 percent is other minority-owned; now therefore be it

Resolved, That the following trade contract packages be awarded to the low bidders for the construction of the William H. Farquhar Middle School Revitalization/Expansion project:

              Low Bidders                                                                                            Amounts

and be it further

Resolved, That the trade contracts awarded for the William H. Farquhar Middle School Revitalization/Expansion project be assigned to Dustin Construction, Inc.; and be it further

Resolved, That a contract in the amount of $41,821,186, to include the assignment of the trade contract awards, be awarded to Dustin Construction, Inc. for the William H. Farquhar Middle School Revitalization/Expansion project, in accordance with drawings and specifications prepared by Hord Coplan Macht, Inc.

WHEREAS, The original lease for 37 relocatable classrooms owned by Williams Scotsman, Inc. expired on June 30, 2014; and

WHEREAS, There is a continuing need for all 37 units to accommodate the student enrollment at various schools; and

WHEREAS, Staff in the Department of Facilities Management has negotiated a one-year renewal lease cost for the 37 relocatable classrooms at an annual cost of $211,584, or an average cost of $5,718.49 per relocatable classroom, which has not changed from last year; and

WHEREAS, The funds for the lease renewal cost are programmed in the Fiscal Year 2015 Operating Budget; now therefore be it

Resolved, That the Board of Education authorizes the superintendent of schools to execute renewal of the lease with Williams Scotsman, Inc. for 37 relocatable classrooms for a total     one-year cost of $211,584.

This financial report reflects the actual financial condition of Montgomery County Public Schools (MCPS) as of October 31, 2014, and projections through June 30, 2015, based on program requirements and estimates made by primary and secondary account managers.  At this time, revenues have a projected surplus of $1.8 million, and expenses have a projected surplus of $13.0 million.   There are no changes from the prior month’s projections.

The County Council appropriated $38,172,451 of fund balance for the Fiscal Year (FY) 2015 Operating Budget.  As a result of additional savings realized at the end of FY 2014, the FY 2015 beginning fund balance is $1,182,633. Based on revenue and expenditure projections as of October 31, 2014, the FY 2015 fund balance at year end will be $16.0 million.  This amount will be used to help fund the FY 2016 Operating Budget.

Three potential uncertainties could result in category deficits and/or a reduction of the $13.0 million projected surplus in expenditures.  First, if weather conditions are similar to or worse than last year, usage, as well as the price for the portion of electricity and natural gas that is purchased at market rates, will result in increased utilities costs. 

The second concern relates to the projected cost of additional students with disabilities placed in nonpublic school-age day programs.  Last year, the number of students enrolled in nonpublic school-age day programs increased significantly from the prior year.  Because the increase occurred during a period of several months, and after the FY 2015 Operating Budget was developed, the current FY 2015 projection for Category 6 includes a deficit for nonpublic placements.  If there is an increase in the number of students placed in nonpublic programs from the number of students currently projected, costs will increase and Category 6 may end the year in deficit. 

The third matter is related to projected active employee and retiree health care costs.  Based on the County Council’s final action on the FY 2015 Operating Budget, we are projecting a reduction of the reserve in the Employee Benefit Plan trust funds to approximately 1 percent of annual expenditures.  If claims for the remaining months of the year are higher than currently projected, there may be an insufficient balance in the trust fund to cover costs.  These potential concerns are discussed in depth in the explanations of the projections for Categories 6, 10, and 12.

Attachment 1 presents a chart displaying budgeted and projected revenues as reflected in this report.  Attachment 2 is a chart detailing expenditure information by state category. The chart illustrates authorized (budgeted) expenditures, actual year-to-date expenditures and encumbrances, projected expenditures for the remainder of the fiscal year, and the projected year-end balance as reflected in this report. 

REVENUE

Total revenue is projected to be $2,289,088,298, which is $1,800,000 more than the current budget of $2,287,288,298.  There is no change from last month’s projection.

County

The projected revenue from the county is $1,476,855,309.  This is the same as the amount budgeted for FY 2015, and the same as projected last month.

State

The projected revenue from the state is $620,765,933.  This is $2.0 million more than the amount budgeted. There is no change from last month’s projection. The surplus revenue is related to the projected amount that MCPS will receive for special education students who attend nonpublic schools.  There are more students projected to attend nonpublic school-age day programs than was anticipated when the FY 2015 Operating Budget was developed.   MCPS is required to pay 300 percent of the average per pupil cost plus 30 percent of the tuition amount that exceeds the 300 percent amount.  The state pays 70 percent of the amount that exceeds the 300 percent amount.  If total tuition costs are higher, state revenue will be higher.

Federal

The projected revenue from Impact Aid is $200,000, which is the same as the amount projected last month.  This is $200,000 less than the $400,000 budgeted.   

Other

The projected revenue from other sources is $3,875,708, which is the same as the amount budgeted.  There is no change in the projection from last month.

Appropriated Fund Balance

The projected revenue from appropriated fund balance remains at $40,682,985. This amount includes $2,510,534 for prior-year encumbrances.

Enterprise Funds

The projected revenue from enterprise funds is $60,818,601.

Supported Projects

The anticipated revenue of $85,889,763 for supported projects has not changed from last month. This estimate includes $7,985,829 carried forward from FY 2014.  Projects approved through October 31, 2014, have been assigned $79,700,314.

EXPENDITURES

There is a projected surplus of $13,000,000. There are projected surpluses in Category 1, Administration; Category 2, Mid-level Administration; Category 3, Instructional Salaries; and Category 4, Textbooks and Instructional Supplies. At this time, expenditures for all other categories are projected to be on budget by the end of the fiscal year. The following provides an explanation of the projections for each category.

Category 1—Administration

There is a projected end-of-year surplus of $500,000 in Category 1, Administration, and the projection remains the same as last month.  As of October 31, 2014, almost 90 percent of the funds budgeted in this category have been spent or encumbered.  It is projected that an additional $4.1 million, or 9.3 percent, of budgeted funds will be spent during the remainder of the year. There currently are 13.1 vacant Full-time Equivalent (FTE) positions.  The balances associated with these vacancies are partially offset by the estimated amount that will be needed to fill the vacancies, resulting in an overall projected position salary surplus of $1.0 million. Temporary part-time salaries are projected to be on budget.  There is a projected deficit of $500,000 for contractual services largely due to a projected deficit in the legal fees accounts and the hiring of outside contractors for technology services as a result of vacant positions.  

Category 2—Mid-level Administration

The projected end-of-year surplus in Category 2, Mid-level Administration, of
$2.5 million remains the same as reported last month. As of October 31, 2014, 95.5 percent of the funds budgeted in this category have been spent or encumbered, and it is anticipated that an additional $3.8 million, or 2.7 percent, of budgeted funds will be expended during the remaining months of the year.  Currently, there are 26.3 vacant FTE positions, the same as reported last month, and most of the surplus ($2.4 million) is related to position salary balances.  In addition, there is a projected surplus of $100,000 in contractual services, supplies and materials, and for mileage reimbursement for local travel.

Category 3—Instructional Salaries

Category 3, Instructional Salaries, is projected to end the year with a surplus of $9.0 million.  There is no change from last month’s projection.  As of October 31, 2014, approximately 95.8 percent of the funds budgeted in this category have been spent or encumbered.  It is projected that an additional $27.4 million, or 3.1 percent, of the budgeted amount will be spent during the remainder of the year.  There is a $7.0 million surplus projected for position salaries based on 166.2 vacant FTE positions. The balance, which is $500,000 higher than last month, includes salaries for long-term teacher substitutes who fill vacant teacher positions.  There is a $2.4 million surplus projected in temporary part-time salaries, which is $500,000 less than reported last month.  The surplus in temporary part-time salaries is primarily due to projected surpluses for short-term substitute salaries, expenditures for long-term leave, and costs for sick and annual leave payments to employees.  

Category 4—Textbooks and Instructional Supplies

Expenditures in Category 4, Textbooks and Instructional Supplies, are projected to have a surplus of $1.0 million, and there is no change in the projection reported last month.  As of October 31, 2014, approximately 50.5 percent of the funds budgeted in this category have been spent or encumbered.  It is projected that an additional $13.1 million, or 46.0 percent, of the budgeted amount will be spent during the remainder of the year.  Remaining funds are projected to be spent throughout the rest of the fiscal year for textbooks, instructional supplies and materials, media materials, and school equipment purchases that cost less than $1,000.

Category 5—Other Instructional Costs

As reported last month, expenditures in Category 5, Other Instructional Costs, are projected to be on budget.  As of October 31, 2014, approximately 52.4 percent of the funds budgeted in this category have been spent or encumbered.  It is projected that $5.1 million will be spent during the year to cover a variety of expenditures, including costs for interscholastic sports, replacement of school furniture and equipment, and maintenance of duplicating equipment.

Category 6—Special Education

Expenditures for Category 6, Special Education, are projected to be on budget, and there is no change in the projection from last month.  As of October 31, 2014, 95.1 percent of the funds budgeted in this category have been spent or encumbered.  Currently, there are 68.3 vacant FTE positions.  Position salary balances resulting from vacant FTE positions are offset by long-term substitutes for classroom coverage and temporary part-time salaries and contractual services to provide services to students with disabilities as prescribed on their Individualized Education Program.  This results in an overall surplus of $1.4 million.  Offsetting this surplus is a $1.4 million projected deficit for tuition for students with disabilities served in nonpublic programs.  This deficit is based on costs associated with additional students that enrolled in nonpublic day programs in FY 2014 after the FY 2015 Operating Budget was developed, and additional students projected for FY 2015.  The Office of Special Education and Student Services has been experiencing an increasing number of referrals for nonpublic programs for elementary and high school students with emotional disabilities, and elementary students with autism.  If the actual number of students placed this year exceeds the current projected numberof  students, the associated costs could result in an overall deficit in Category 6.

Category 7—Student Personnel Services

As reported last month, expenditures for Category 7, Student Personnel Services, are projected to be on budget. As of October 31, 2014, approximately 96.3 percent of all budgeted funds in this category have been spent or encumbered.  There are 2.0 vacant FTE positions.   The position salary balance has increased by $10,000, from $65,000 reported last month to $75,000. It is expected that this balance will be offset by expenditures for part-time salaries and operating expenses that will continue to be made throughout the year.

Category 9—Student Transportation

The projection for Category 9, Student Transportation, is expected to be on budget, and there is no change from last month’s projection.  As of October 31, 2014, approximately 81.0 percent of all budgeted funds in this category have been spent or encumbered.  There are 60.4 position vacancies, 46.8 fewer than reported last month.  The associated position salary surplus of $1.8 million remains the same since the projection last month assumed that positions would be filled.  The FY 2015 Operating Budget included too much lapse and turnover savings in this category since the savings in position salaries normally offsets costs for temporary part-time bus operators and attendants who cover bus routes when positions are vacant. Temporary part-time salaries are projected to have a deficit of $2.3 million.  Although the market is volatile, at this time there is no change in the projected surplus of $500,000 in bus fuel.

Category 10—Operation of Plant and Equipment

Expenditures for Category 10, Operation of Plant and Equipment, are projected to be on budget.  As of October 31, 2014, approximately 74.8 percent of all budgeted funds in this category have been spent or encumbered, and the remaining budgeted funds are expected to be spent throughout the remainder of the year.  Currently, there are 51.7 FTE position vacancies, primarily building service positions.  This is 4.3 fewer vacancies than reported last month.  The projected position salary surplus of $1.4 million and a projected deficit of $500,000 for building service substitute salaries and long-term leave remains the same as reported last month.  Also, there is no change in the deficit of $400,000 reported last month for vehicle operating costs in the Department of Materials Management.  The projected deficit of $500,000 for utilities
also remains unchanged.  Consumption and rates for electricity, and rates for natural gas, are projected to be slightly higher than budgeted.  If winter temperatures are colder than normal, as was the case last year, additional expenditures for electricity and natural gas may result in a deficit in Category 10.

Category 11—Maintenance of Plant

Expenditures in Category 11, Maintenance of Plant, are projected to be on budget, and there is no change from last month.  Approximately 81.4 percent of budgeted funds have been spent or encumbered as of October 31, 2014, and all funds are expected to be spent by year end.  There are currently 23.0 FTE position vacancies, and the projected position salary savings from lapse and turnover remains at $700,000.  This amount is offset by projected deficits of $50,000 for long-term leave, $400,000 for maintenance and grounds care supplies and equipment, and $250,000 for vehicle operating costs.

Category 12—Fixed Charges

At this time, expenditures for Category 12, Fixed Charges, are projected to be on budget.  Approximately 43.6 percent of budgeted funds have been spent as of October 31, 2014.  Last spring, as part of final action on the FY 2015 Operating Budget, the County Council reduced the budget for Category 12 by $40.5 million by using reserve funds from our health care trust funds. Of the $40.5 million, $27.2 million of the $51.1 million in the MCPS Other Post-Employment Benefits Trust Fund was shifted to the Employee Benefit Plan Retiree Trust Fund to pay for retiree health costs.  In addition, $13.3 million was cut with the intention of bringing down the Employee Benefit Plan Retiree Trust Fund balance of $18.5 million for retirees to $5.2 million beginning in FY 2015.  Based on actual FY 2014 experience and current projections for FY 2015 (based on three months of actual data), the fund balance for both active employees and retirees is projected to be below $4 million, or less than 1 percent of annual expenditures.  If claims are higher than currently projected, the trust fund balance will be insufficient, resulting in a deficit in Category 12.

Background

By law, minutes must be prepared for the business meetings of the Board of Education (Board).  Before the advent of modern technology, the meeting minutes were the sole official record of what transpired at a meeting. Due to advances in technology, Board meetings are videotaped and posted as webcasts on the Board’s web page, and all meeting materials are posted on BoardDocs.  The way in which meeting minutes are prepared, however, has not taken full advantage of this available technology.  Board meeting minutes are very voluminous and take an extraordinary amount of staff time to draft, given the need to provide a summary of the Board’s discussion.  However, more often than not, when there are questions about what occurred at a business meeting, individuals tend to review the webcast of the meeting, instead of relying solely on the meeting minutes.  Furthermore, the webcast of the meeting provides the most accurate information and contains an index so that one may go directly to the agenda item of interest.

State law contains flexibility concerning the content of meeting minutes, including the ability to designate the live video streaming and archived video recordings of meetings to be the official minutes.  Other entities have adopted this approach and prepare an informational written summary of Board actions containing only the items considered by the Board, actions taken, and a record of Board members’ votes. 

The Policy Management Committee (Committee) met and reviewed this issue at its meeting on November 13, 2014.  After consulting with staff and legal counsel, the Committee recommends that the section of the Board of Education Handbook regarding minutes be amended to designate the live video streaming and archived video recordings of Board meetings to be the official minutes, and that an informational summary of the meeting be prepared that would contain only the actions taken by the Board.

Current Language of the Board of Education Handbook

Starting on page 20, the Board of Education Handbook provides for the following:

Record of Board Meetings

The Board of Education maintains records of meetings as follows:

1. Records of the Board’s business meetings and hearings are retained in the Board Office and online. All Board business meetings are televised and are available online via webcast.

2. The minutes of all public meetings contain actions taken by the Board and a summary of the Board’s discussion. A Board member may specifi­cally request that a statement on a subject be reflected in the minutes. Although the student’s vote does not count on some issues, the minutes will reflect the student’s voting preference.

3.  Minutes of closed sessions include a list of each item considered, the action taken, and each recorded vote.

4. Recordings and minutes of meetings open to the public are available as a matter of public record on the Board’s website, as well as in the Board Office.

Recommended Substitute Language for Handbook

The Committee recommends the following substitute language for Item #2:

2.  The Board designates its live, recorded, archived video/audio streaming of its meetings to be the Board’s official minutes, in accordance with applicable law, for meetings with such streamings/recordings.  The Board also may prepare a written summary of the motions made and votes taken at the meeting, which is for informational purposes only.  If there is any discrepancy between the video/audio and this summary, the video/audio, which constitutes the minutes of the meeting, shall control.  If there is no video/audio streaming/recordings of the meeting, the written summary shall be designated as the official minutes.  Although the student member of the Board’s vote does not count on some issues, the written summary will reflect the student member of the Board’s voting preference, if such a preference is expressed.

Such a practice is in conformity with the practices of at least four other entities and applicable State law.

Benchmark of Other Entities

As noted below, there are a few school boards in Maryland that post their materials on BoardDocs and have either designated their video/audio recordings to be the official record of the meetings and/or have minutes that reflect only the actions of the entity (i.e. action minutes):

1.      The Board of Education of Howard County has its meeting materials posted on BoardDocs and has designated the video/audio recordings of its meetings as the official record of the meetings.  Howard County then prepares a meeting summary that includes information about the date, time, and location of the meeting; the Board members in attendance; and a summary of the motions made and the votes taken at the meeting.  (Attachment A)

2.      Based upon Robert’s Rules of Order, the minutes for the Board of Education for Frederick County are action minutes given that they reflect only the actions of the Board and encourage individuals to review the meeting on the web for more details.  This Board also uses BoardDocs for its meeting materials.  (Attachment B)

3.      Similarly, the Prince George’s County Board of Education posts its materials on BoardDocs and provides action minutes given that they include information about the date, time, and location of the meeting; the Board members in attendance; and a summary of the motions made and the votes taken at the meeting.  (Attachment C)

4.      Similarly, the County Council for Montgomery County, Maryland also uses action minutes.  (Attachment D)

Relevant Statutes, Policies, and Governing Rules

Designating the live video streaming and archived video recordings of meetings to be the official minutes of the Board and preparing a written informational summary of the Board’s actions would comply with relevant statutes, policies, and governing rules.

1.      The Open Meetings Act (OMA) specifies the content of minutes.[1] Minutes must contain each item considered and the action taken and the vote recorded.  Thus, it does not require details of the discussion, etc.  The OMA expressly permits the use of live and archived video recording to serve as the minutes. Thus, under the OMA, the Board could dispense with written minutes altogether, or, as Howard County did, declare the video recording to be the minutes and prepare a written summary (which can be streamlined or contain as much detail as the Board prefers). 

2.      Section 4-107(d) of the Education Article of the Annotated Code of Maryland requires that “The minutes of the meeting shall be available to the public.” It does not define minutes.

3.      Robert’s Rules defines minutes as follows:

60. The Minutes. The record of the proceedings of a deliberative assembly is usually called the Minutes, or the Record, or the Journal. The essentials of the record are as follows: (a) the kind of meeting, "regular" (or stated) or "special," or "adjourned regular" or "adjourned special"; (b) name of the assembly; (c) date of meeting and place, when it is not always the same; (d) the fact of the presence of the regular chairman and secretary, or in their absence the names of their substitutes, (e) whether the minutes of the previous meeting were approved, or their reading dispensed with, the dates of the meetings being given when it is customary to occasionally transact business at other than the regular business meetings; (f) all the main motions (except such as were withdrawn) and points of order and appeals, whether sustained or lost, and all other motions that were not lost or withdrawn; (g) and usually the hours of meeting and adjournment, when the meeting is solely for business. Generally the name is recorded of the member who introduced a main motion, but not of the seconder.

4.      There are no other adopted Board policies concerning this matter.

Given the current language of the Board’s Handbook, benchmark of other entities, and review of relevant law and governing rules, the following resolution is recommended for your consideration:

WHEREAS, Before the advent of modern technology, the Board of Education (Board) meeting minutes were the sole official record of what transpired at a meeting; and

WHEREAS, Due to advances in technology, Board meetings are videotaped and posted as webcasts on the Board’s web page, and all Board materials are available on BoardDocs; and

WHEREAS, The way in which meeting minutes are prepared, however, has not taken full advantage of this available technology, and the way Board meeting minutes are currently prepared are very voluminous and take an extraordinary amount of staff time to draft; and

WHEREAS, State law contains flexibility concerning the content of meeting minutes, including the ability to designate the live video streaming and archived video recordings of meetings to be the official minutes, which is an approach adopted by other entities; and

WHEREAS, The Policy Management Committee (Committee) met and reviewed this issue at its meeting on November 13, 2014; now therefore be it

Resolved, That the Board of Education designate the video/audio recordings of the Board of Education meetings as the official record of the meetings, for those meetings that have such recordings, and that a written summary of the meeting be prepared for informational purposes that would contain only the actions taken by the Board; and be it further

Resolved, That the language in the Board of Education Handbook be revised as follows:

Record of Board Meetings

The Board of Education maintains records of meetings as follows:

1. Records of the Board’s business meetings and hearings are retained in the Board Office and online. All Board business meetings are televised and are available online via webcast.

2. The Board designates its live, recorded, archived video/audio streaming of its meetings to be the Board’s official minutes, in accordance with applicable law, for meetings with such streamings/recordings.  The Board also may prepare a written summary of the motions made and votes taken at the meeting, which is for informational purposes only.  If there is any discrepancy between the video/audio and this summary, the video/audio, which constitutes the minutes of the meeting, shall control.  If there is no video/audio streaming/recording of the meeting, the written summary shall be designated as the official minutes.  Although the student member of the Board’s vote does not count on some issues, the written summary will reflect the student member of the Board’s voting preference, if such a preference is expressed.

3.  Minutes of closed sessions include a list of each item considered, the action taken, and each recorded vote.

4. Recordings and minutes of meetings open to the public are available as a matter of public record on the Board’s website, as well as in the Board Office.

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In our District Implementation Plan for Building Our Future Together: Students, Staff, and Community, we established five core strategies—Academic Rigor and Culturally Proficient Instruction; Equitable Funding and Support; Human Capital Management; Community Engagement; Operational Excellence and Continuous Improvement—that will help us fulfill the mission, values, and core purpose of the Strategic Planning Framework. Under each core strategy, we enumerated our key focus areas for this school year. 

Core Strategy III, Human Capital Management, entails recruiting, retaining, and developing the best workforce in public education.  In our plan, we emphasized specifically: “We must build a workforce that enhances the diversity of our schools and holds the collective belief that all students can learn at high levels and thrive in their future.”  That is why our first focus area of our human capital management strategy is to increase the diversity of our teacher workforce.  Specifically, we indicated in our plan that we will revise and refocus our recruitment, selection, and retention processes to prioritize workforce diversity, and that we will expand and redesign local teacher pipeline programs that develop the internal talent within MCPS. 

The attached Teacher Workforce Diversity Strategic Plan presents in detail our work to increase the diversity of our teacher workforce and address this critical focus area of our overall human capital strategy.  We look forward to discussing this plan with the Board of Education.

WHEREAS, The Board of Education of Montgomery County is authorized by the Education Article and General Provisions 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
January 13, 2015, from 9:00 a.m. to approximately 10:00 a.m. and from 12:00 p.m. to 1:00 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 3-305(b)(1) of the General Provisions 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 3-305(b)(7) of the General Provisions Article; a discussion of matters constituting an administrative function outside the purview of the Open Meetings Act (Section 3-103(a) of the General Provisions 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 November 11, 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 General Provisions Article Section 3-305(b) et seq., of the Annotated Code of Maryland. 

The Board of Education of Montgomery County met in closed session on November 11, 2014, from 10:39 a.m. to 11:38 a.m. in Room 120 of the Carver Educational Services Center,
850 Hungerford Drive, Rockville, Maryland, and:

1.       The superintendent of schools briefed the Board on the Human Resources Monthly Report 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 was discussed, as permitted under Section 3-305(b)(1) of the General Provisions Article.

2.       The Board received legal advice concerning the school calendar, as permitted under Section
3-305(b)(7) of the General Provisions Article.

3.       The superintendent of schools briefed the Board on a school safety incident which is an administrative function outside the purview of the Open Meetings Act and, the Board received legal advice about a school safety incident, as permitted under Section 3-305(b)(7) of the General Provisions Article.

In attendance at the 10:39 a.m. closed session were Shirley Brandman, Judith Docca, Michael Durso, Dahlia Huh, Philip Kauffman, Patricia O’Neill, Rebecca Smondrowski, Ikhide Roland Ikheloa, Laura Steinberg, Suzann King, and Joanne Causey.  At 10:41 a.m. the following staff joined the meeting: Larry Bowers, Joshua Civin, Brian Edwards, Maria Navarro, Kimberly Statham, and Joshua Starr. Andrew Zuckerman joined the meeting at 10:54 a.m., and Christopher Barclay joined the meeting at 10:56 a.m.  Dana Tofig joined the meeting at 11:00 a.m., and Karalee Turner-Little arrived at 11:21 a.m.  Closed session adjourned at 11:38 a.m.  There was no continuation of closed session in the afternoon. 

The Montgomery County Region of the Maryland Association of Student Councils submits for your review a calendar of major events for the election of the student member of the Board of Education.

CALENDAR OF MAJOR EVENTS

Advertising period                  January 5–22, 2015

Filing period                           January 7–22, 2015

Nominating convention            February 26, 2015

Town meeting*                        February 26, 2015

General campaign period        February 27–April 29, 2015

General election                      April 29, 2015

*In the event that no more than two eligible students file for the office, a town meeting will be held in place of the nominating convention.

The following resolution is presented for your consideration regarding the calendar of events for the election of the student member of the Board of Education.

WHEREAS, The Montgomery County Region of the Maryland Association of Student Councils submits a yearly calendar of the major events surrounding the election of the student member of the Board of Education for review and approval; now therefore be it

Resolved, That the Montgomery County Board of Education approves the calendar of major events for the election of the 38^th student member of the Board of Education as proposed by the Montgomery County Region of the Maryland Association of Student Councils.

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 3-305(b)(7) of the General Provisions 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 disposition of which will be recorded in the minutes of today’s meeting:

         Appeal Number                                                 Type              

            T-2014-82                                                      Transfer

            2014-34                                                         Complaint from the Public    

This item provides you with information regarding proposed local legislation. Each bill has been analyzed to determine any potential impact on Montgomery County Public Schools (MCPS) and the Board of Education, as well as whether or not it is consistent with the legislative platform that was adopted by the Board on November 11, 2014.

Below is a summary and analysis of each bill. The full text of each bill is also attached below. I will continue to monitor proposed legislation throughout the 2015 legislative session and bring to you recommended positions on those bills that will impact MCPS or the Montgomery County Board of Education.

Bills Not Covered by Platform 

MC 6-15    Montgomery County – Board of Education – Primary Election Ballots

Requested by Delegate Charles Barkley

This bill requires that the name of each candidate seeking election to the Montgomery County Board of Education appear on the primary election ballot regardless of the number of candidates seeking election to the county board. Currently, only if more than two candidates are running in the primary do names appear on the primary election ballot.

Bills Consistent with Platform 

MC 7-15   Montgomery County Board of Education - Student Member - Voting

Requested by Delegates Kaiser, Barkley, Barve, Cullison, Gutiérrez, Kelly, Luedtke, Reznik, Robinson & Waldstreicher and Delegates-elect Moon, Morales and Smith

The position of student member of the Board of Education (SMOB) is established by the Annotated Code of Maryland, with rights varying from jurisdiction to jurisdiction. Some jurisdictions have SMOBs with extremely limited powers, while in at least one instance the SMOB has the same powers as the adult elected member of the Board. 

This bill expands the Montgomery County SMOB’s authority to vote on matters relating to collective bargaining, capital and operating budgets, as well as school closings, reopenings, and boundaries. The Montgomery County Board of Education has previously expressed support for expanding the SMOB’s voting rights to be equal to those of adult Board members, except for voting on negative personnel matters.

Attached is the Construction Progress Report for the period ending November 30, 2014.

This report details expenditures for outside counsel legal fees for Fiscal Year 2015 through the month of September 2014.  A complete set of bills submitted and paid to each firm is available for your review in the Office of the Superintendent of Schools. The charts in Attachment A compare current expenses with those from the same period last year and provide information by month on the following:

• Non-special education legal expenses by firm
• Special education expenses for outside counsel, parent attorney fees, and other miscellaneous charges
• Special education expenses by firm

Attachment B is a list of the categories that reflect the type of legal advice and litigation services being provided to Montgomery County Public Schools by outside law firms for non-special education matters.  The categories in Attachment B are defined as follows:

• Personnel: Equal Employment Opportunity complaints, appeals by personnel
• Facilities:  construction, capital projects, use of facilities
• Procurement:  contracts, bids
• Student:  appeals
• Policy:  development, implementation, interpretation (includes regulations), subpoenas
• Financial:  expenditures, state aid
• Collective bargaining: negotiations, arbitration hearings, grievances
• Miscellaneous:  many categories grouped together under one charge

Non-special Education Legal Expenses

The total charges for non-special education legal expenses in September 2014 were $60,215. The year-to-date total of $247,108 is $24,379 (8.9 percent) lower than the same period in the previous year. 

The Carney Kelehan bill for September 2014 totaled $45,240.  The largest amount was for policy matters ($14,238), the largest part of which related to student records requests ($3,075).  The next largest amount was for student matters ($13,038), the largest part of which related to a student appeal matter ($8,930).  Facilities matters (charged to the capital budget) totaled $12,350, the largest part of which was related to facility general advice ($6,628).  The next largest amount was for personnel matters ($2,182), the largest part of which related to a dismissal matter ($1,261).  The amount for financial matters totaled $730, procurement matters totaled $256, and miscellaneous matters totaled $2,446.

The Venable bill for September 2014 totaled $12,125. The largest amount was for policy matters ($11,752), all of which related to general legal advice.  The amount for financial matters totaled $173, and collective bargaining matters totaled $114. Facilities matters (charged to the capital budget) totaled $86.

The Clancy bill for September 2014 totaled $2,850.  The largest amount was for student matters ($2,025), the largest part of which related to student appeals ($1,725).  The amount for policy matters totaled $825.

Special Education Legal Expenses

Special education legal fees for outside counsel for September 2014 totaled $33,794. The year-to-date total of $63,677 is $41,828 (191.4 percent) more than the same period in the previous year.  In addition, total year-to-date special education legal costs of $63,677 are $56,611 (47.1 percent) less than the budgeted amount of $120,288 for this time period. 

The Jeffrey A. Krew bill for September 2014 totaled $33,794, all of which related to six administrative hearing matters.