Initiation of litigation pursuant to subdivision (c) of section 54956.9: (Number of Cases: One)

Title: Administrative Assignments

(Education Code 54957.6) District Negotiator: Debra M. Hendricks and Sharon Roddick
 Employee Organizations: One (1) Group, CSEA

(Education Code 35149, 48918(c), 72122) Administrative Hearing Officer: Dawn Allen, Director of Student Services

The Board of Trustees shall vote on the existing litigation: Claim 2016/2017 - #4.

It is recommended the Board of Trustees approve the recommendations of the Administrative Hearing Panel in the matter of Student 2016/2017 - AH# 67.

The Board of Trustees received a letter from the Stanislaus County Clerk of the Board of Supervisors regarding Hickman Community Charter District's request to move to even numbered year elections.

The Board of Trustees to be presented with an End of Year update on the 2016-2017 Governance Goals.

During the 2016 California Legislative Session, the Legislature enacted Senate Bill 1029. The purpose of Senate Bill 1029 is to enhance transparency and accountability.  Senate Bill 1029 was signed by Governor Brown on September 12, 2016.  It became effective on January 1, 2017.  Senate Bill 1029 requires school districts to certify to the California Debt and Investment Advisory Commission (CDIAC) that they have adopted local debt management policies prior to issuing debt, and to certify that the debt is consistent with the adopted policies.  CDIAC acts a statistical clearing house for all state and local debt issuance.  In addition to adopting local debt management policies, the District will be required to provide CDIAC with annual transparency reports.  The proposed policy conforms to the requirements of Senate Bill 1029 and reflects generally accepted practices and existing requirements that apply to debt issuance.

The Board of Trustees to conduct a "first reading" of Board Policy 3470: Debt Management.

There is no significant impact on the District’s General Fund.  The District will be required to file annual reports with CDIAC. 

During the 2016-17 fiscal year, the district was assessed an unused site fee by the Office of Public School Construction in the amount of $29,118 for the Tivoli property.  This was the first year that the fee was assessed.  Ed Code Sections 17219 through 17224 states:

 “Whenever a school district acquires or has acquired a site for school purposes, as determined by the State Allocaiton Board, and does not use the sithe within (1) five years of the date of acquisition for kindergarten, if any, and any of grades 1 to 8, inclusive, maintained by an elementary school district or a unified school district, or , (2) seven years of the date of acquisition for any of grades 7 to 12, inclusive maintained by a high school district or a unified school district, or if a school district has a site at any grade level that has previously been used but has not been used for school purposes within the preceding five years, the school district shall be subject to nonuse payments…”

A school district can request that the fee be waived but only under certain conditions.  (See page 2 the attached form “Modification of Unused Site Status”.)

The Board of Trustees will review information regarding the Unused Site Fee.

General Fund:  Annual Penalty

The Board of Trustees is required to adopt a Local Control and Accountability Plan (LCAP) for the 2017-2020 school years on or before July 1, 2017.  The purpose of the LCAP is to provide information on services and programs planned by the District to support positive student outcomes across a broad spectrum of areas.  The LCAP is not required to state details about specific actions or tasks; rather focuses on strategic goals, progression of outcomes, and services and related expenditures based on local needs.

The LCAP and the proposed budget are presented to the Board of Trustees at the same meeting for adoption.  The documents are then forwarded together to the Stanislaus County Office of Education (SCOE) for review.

It is recommended the Board of Trustees adopt the 2017-2018 through 2019-2020 Local Control and Accountability Plan (LCAP) for the Sylvan Union School District. 

The Board of Trustees to adopt the 2017-2020 Local Control and Accountability Plan (LCAP) for the Sylvan Union School District.

The Board of Trustees is required to adopt an annual budget by July 1 each year.  Beginning with the 2014-15 fiscal year, the budget cannot be adopted until the Local Control Accountability Plan (LCAP) is adopted and only after a public hearing for each has been held.  The District held a public hearing for the 2017-2020 Local Control Accountability Plan and 2017-2018 Budget on May 30, 2017.  Recommendation from the public hearing was to proceed with the LCAP and budget as proposed.

Beginning with the 2015-16 fiscal year, the budget, at its public hearing, must include a statement of reasons that substantiates the need for a combined assigned and unassigned ending fund balance that is above the minimum recommended reserve for economic uncertainties for the budget year.  The statement of reasons, 2017-18 Fund Balance Reserves, was provided at the May 30, 2017, public hearing and is attached below.

The Governor’s May Revise Budget was released May 11, 2017.  Overall, the May Revise promises more funding for Proposition 98 compared to the proposed budget in January.   Proposition 98 2017-18 funding is up $1.1 billion to $74.6 billion from the January proposal.   Local Control Funding Formula (LCFF) increased to $1.4 billion.   The proposed 2016-17 deferral is eliminated and replaced by settle-up payment. The May Revise adds almost $750 million to the one-time discretionary funding, from $287 million ($48 per ADA) to $1.04 billion ($170 per ADA).  However, the revenue will not be received, until May 2019, in two (2) years.

A few changes from the Governor’s Proposed Budget in January to the May Revise are listed below:
    - COLA had increased from 1.48% to 1.56%
    - LCFF base grants for each grade span increased by $5 to $6:
         o Grades K-3: from $7,188 to $7,193
         o Grades 4-6: from $7,295 to $7,301
         o Grades 7-8: from $7,513 to $7,518
    - Department of Finance gap funding percentage for LCFF were updated
         o 2016-17: from 55.28% to 55.03%
         o 2017-18: from 23.67% to 43.97%
         o 2018-19: from 53.85% to 71.53%
         o 2019-20: from 68.94% to 73.51%
         o 2020-21: expected 100% implementation (no change)
    - The estimated LCFF revenue for 2017-18 had increased by $583,202 from $64,408,450 at second interim to $64,991,652 for 2017-18 budget development.

The District's average daily attendance (ADA) for the second period (P-2) was reported in April and is the attendance period utilized for the LCFF revenue calculation.  Second period attendance is reported at 7,760.61, a decrease of 104.83 over 2015-16 P-2 ADA of 7,865.44.

Presented to the Board of Trustees for review and adoption is the District budget developed with the information proposed by the Governor in his May Revise and Board of Trustees approved recommendations.  As the State Budget is to be adopted by June 30, 2017, the District budget along with the Local Control and Accountability Plan will be adjusted as needed at that time.

Please find attached the following budget documents:
    - 2017-18 Fiscal Year Budget packet which includes:
         o Budget Certification
         o Workers’ Compensation Certification
         o Official State Financial Reports (SACS-Standardized Account Code Structure forms) for all funds the District operates
         o SACS Form ADA
         o SACS Form MYP
         o SACS Criteria and Standards Review
         o SACS Technical Review Checks
    - 2017-18 Budget MYP
    - 2017-18 Adopted Budget Assumptions
    - 2017-18 Fund Balance Reserves (Statement of reasons in excess of minimum recommended reserves)

The Board of Trustees will be taking action on the State Financial Report inclusive of the Criteria and Standards Review. 

It is recommended the Board of Trustees approve the 2017-2018 Governance Goals.

It is recommended the Board of Trustees approve the 2017-2018 Governance Goals for the Superintendent's evaluation.

The Sylvan Child Care Program is funded by charging fees for students who participate in the program. The program would like to start accepting credit card payments to reduce handling fees, avoid late receipt of payments, bounced checks, and reduce or possibly eliminate non-payments.  In order to start receiving credit card payments, the Child Care program needs to open a checking account so that the credit card receipts can be deposited into the checking account.

Every month, the account will be reconciled by office staff and a manager, and reviewed by a supervisor/administrator.  A check will be issued in the amount of the credit card payments received for the month.   Each check will require two (2) authorized signatures.  Three (3) district employees will be authorized signers, Director of Child Care, Lisa Lobao; Director of Fiscal Services, Cheryl Phan; and Assistant Superintendent of Business Services, Yvonne Perez.   The accounting department will deposit the check with the county office and the funds will be credited to the Child Care revenue account.

Staff has researched various banking institutions nearby and has a possible option.   BBVA Compass offers free checking with no monthly or annual fees, and has no minimum fund balance requirement.  They only require a $100 deposit when opening the account.   Staff will continue to research for other banking institutions and options.

It is recommended the Board of Trustees adopt Resolution 2016/2017 - #22: Child Care Account.

Since approval of Proposition 30, Education Protection Account (EPA), increasing sales tax and income tax for upper-income tax payers, each school district is required to report the use of these funds.   EPA revenue funds are deposited into resource 1400.  The estimated EPA for fiscal year 2017-18 is $9,405,638.   EPA revenue is expended entirely on school site employee salaries and benefits.  For 2017-18, EPA is budgeted for salaries and benefits for middle school teachers and counselors.   Attached is an exhibit of the spending determinations for EPA showing that the majority of the funds are allocated for instruction (certificated teachers salaries and benefits) and a portion for guidance and counseling services (counselors salaries and benefits).  The accounting of EPA will be posted on the District’s website with the adopted budget documents and updated with final receipt amount and expenditures at the end of each fiscal year.

Proposition 30, The Schools and Local Public Safety Protection Act of 2012, approved by the voters on November 6, 2012, temporarily increases the states sales tax rate for all taxpayers and the personal income tax rates for upper-income taxpayers.  The revenues generated from Proposition 30 are deposited into a state account called the Education Protection Account (EPA).

Despite implementation of the Local Control Funding Formula (LCFF) in fiscal year 2013–14, EPA entitlements continue to be calculated based on adjusted revenue limits.  The funding amounts continue as components of the LCFF as part of an LEA's (local educational agency) floor calculation.  The California Department Education (CDE) calculates EPA entitlements based on the statewide total of revenue limits and charter school block grant funding.  Each LEA's EPA entitlement is then reduced so that funding from local revenue and the EPA combined do not exceed the LEA's adjusted LCFF.  The CDE will allocate EPA revenues on a quarterly basis (September, December, March, and June) through the 2030–31 fiscal year.*

*Proposition 55 (2016), the ballot measure to continue the increased personal income taxes for an additional 12 years—not the increased sales taxes—contained in Proposition 30 (2012), continues the use of the EPA as the fund into which the increased revenues are deposited for the purpose of distributing to California school agencies.

Proposition 55 continues the requirement that the funds received from the EPA cannot be used for salaries or benefits of administrators or any other administrative costs.  Therefore, the following requirements still apply to local school or community college agencies with respect to funds received from the EPA:
    • Adopt a spending plan in the public session of a meeting of the Governing Board before the fiscal year begins
    • Post a report on the website of the amount of EPA funds received and how the funds were spent
    • Make the necessary information available for the external auditor to confirm compliance during the annual financial audit

Proposition 55 takes effect on January 1, 2019, and remains in effect through December 31, 2030. 

It is recommended the Board of Trustees adopt Resolution 2016/2017 - #23: 2017-18 Education Protection Account.

In order for the Stanislaus County Superintendent of Schools (SCOE) to have authority to complete all the year-end accruals and state aid accrual, a resolution Authorizing End-Of-Year Transfers is recommended.  Education Code 42601 states that at the close of any school year a school district may, with the approval of the governing board, identify and request the county superintendent of schools to make the transfers between the designated fund balance or the unappropriated fund balance and any expenditure classification or classifications, or balance any expenditure classifications of the budget of the district for that school year as necessary to permit the payment of obligations of the district incurred during that school year.

It is recommended that the Board of Trustees adopt Resolution 2016/2017 - #24: Authorizing of End-Of-Year Transfers.

Below are three (3) transfers between funds for formal approval by the Board of Trustees.  The first two (2) are transfers adopted with the 2016-17 original budget.  The third transfer is required in order to use Childcare funds for the playground upgrade during the 2017-18 fiscal year.

1. From General Fund to Special Reserve for Other Post-Employment Benefits:

The Board of Trustees had requested following the final payments of Golden Handshake an equal amount of the annual installment will be transferred to the Special Reserve Fund for Other Post-Employment Benefits.  The amount of the transfer for 2016-2017 is $337,000.

2. From General Fund to Special Reserve for Capital Outlay:

During the 2016-2017 budget development process, the Board of Trustees approved the annual transfer of $200,000 to the Special Reserve for Capital Projects in order to set aside funds for replacement of school buses in anticipation of new bus requirements.

Also during the 2016-2017 budget development process, the Board of Trustees approved the annual transfer of $25,000 to the Special Reserve for Capital Outlay for replacement of capitalized equipment, items over $5,000, such as copy machines.

3. From Childcare to Special Reserve for Capital Outlay:

The Childcare play area is in need of new playground equipment and fall surface replacement.   The purchase of the playground equipment and replacement of the fall surface material for the play area were discussed and approved by the governing board at the May 30, 2017, Board meeting.  In order to purchase said items with Childcare funds, the funds has to first be transferred from Childcare to the Special Reserve for Capital Outlay Fund.   The Standardized Account Code Structure (SACS) does not allow the use of the capital outlay object code, 6000s, in fund 63 which is an Enterprise fund.  Therefore, it is required to the transfer the funds estimated at $150,000 during 2017-18 fiscal year.     Any unused funds will be transferred back to the Childcare fund after the improvement projects are complete. 

It is recommended the Board of Trustees approve the transfers of funds between the General Fund and Special Reserve for Other Post-Employment Benefits and Special Reserve for Capital Outlay for the 2016-17 fiscal year.

Additionally, it is recommended the Board of Trustees approve the transfers of funds between the Childcare fund and Special Reserve for Capital Outlay for the 2017-18 fiscal year. 

Staff recommends the Board of Trustees approval of the agreement/invoice with Varsity Tutors.

The IEP team determined that an 8th grade student's services had not been fully met.  In order to meet the required services, approval of this agreement/invoice to engage Varsity Tutors is being requested.

Staff solicited informal bids from three (3) contractors and received the following written bids to pain the exterior of Sylvan Elementary School.

Staff recommends approval to award a contract to paint the exterior of Sylvan Elementary School to Paz Painting based on their low price bid.

Staff recommends the Board of Trustees approve the recommendation to award a contract to Paz Painting in the amount of $20,000 to paint the exterior of Sylvan Elementary School.

The Board of Trustees to consider approval to award a contract to paint the exterior of Sylvan Elementary School to Paz Painting.

Routine Repair and Maintenance: $20,000

Deeds or grants that convey an interest in real property to a government agency for public purposes may only be recorded with consent of the public agency, which is typically evidenced by a "Certificate of Acceptance" in a form prescribed by the Government Code and that is recorded with a grant deed after execution.  In order to receive the property from NHC Holdings, LLC, the Board of Trustees must consent to the acceptance of the property.

The Board of Trustees will consider approval of a Certificate of Acceptance for Grant Deed/NHC Holdings. 

The fire alarm system at the District Office is old and needs to be replaced with capability to expand to the additional buildings on site.  A Siemens Fire Alarm System will be installed and comply with all current fire safety codes and monitoring capabilities.

Quotes were solicited from four (4) vendors.  Control Systems Services was the only vendor that submitted a quote.

Staff recommends approval of a contract with Control Systems Services in the amount of $36,403.26 to replace and upgrade the fire alarm system at the District Office.

The Board of Trustees will consider approval to award a bid to Control Systems Services to replace and expand the fire alarm system at the District Office.

Routine Repair and Maintenance:  $36,403.26

It is recommended that Board of Trustees approve the minutes of the May 30, 2017, Regular Board Meeting.

The attached is a continuance from the 2015-16 school year.  The identified student continues to require medical assistance as identified in his IEP in order to access their education.  The student is served off site and has severe, multiple medical conditions which require LVN services throughout the school day including during the time they are transported to school and home.

Staff recommends the Board of Trustees ratify the service agreement with Interim HealthCare for LVN Services.

Financial Impact:  2017-2018 to include Extended School Year (ESY): $55,160.

NOT TO EXCEED $61,000.

Education Code 17546 allows districts to sell or dispose of obsolete property if the value of the item is less than $2,500.00 and the sale/disposal is approved by a unanimous vote of the Board of Trustees.

School Services of California, Inc. is a consulting firm which provides an array of fiscal services to school districts. The services include:

1. Their Fiscal Report containing information on issues of school finance, budgets, or practices that impact school district policy.

2.Access to website with fiscal tools and resources.

3.Analysis of all major school finance legislation and reporting.

4.Revenue calculation tools.

5.Participation at School Services of California conferences at client rate.

Staff recommends approval of the Agreement for Special Services with School Services of California, Inc. for the period of July 1, 2017, through June 30, 2018.

The Board of Trustees to consider approving the Agreement with School Services of California, Inc. for the 2017-18 fiscal year.

General Fund:  $3,120  (an increase of $180 from the prior year)

The Sylvan Union School District Food Service Department has contracted with the Central California Child Development Services to provide student meals for their program operating at the Riverbank Child Development Center.  The contract period is June 1, 2017, through May 31, 2018.  Service for this program is scheduled to start June 15, 2017.  This will be a revenue source for the Food Service Department.

It is recommended the Board of Trustees approve the contract with Central California Child Development Services and the Sylvan Union School District Food Services Department to provide student meals for their program.

The Board of Trustees to consider approving the contract with Central California Child Development Services and the Sylvan Union School District Food Services Department to provide student meals for their program.

Estimated Net Revenue over Expenses: $5,000

Academic achievement of students is the top priority of the education system in California.  California Education Code sections 41507, 41572, and 64001 and the federal Elementary and Secondary Education Act (ESEA) require each school to consolidate all school plan programs into the Single Plan for Student Achievement.  Education Code Section 35256 mandates all elementary and secondary school districts in California annually prepare for each school within the district a School Accountability Report Card that contains items described in Education Code Section 33126.

Document Tracking Services provides an online system to complete our Single Plans for Student Achievement (SPSA) and School Accountability Report Cards (SARCS).  These must be completed annually.

Staff recommends the approval of the license agreement with Document Tracking Services to complete the 2016-17 School Accountability Report Cards and 2017-18 Single Plans for Student Achievement.

Staff recommends the Board of Trustees approve the license agreement with Document Tracking Services to complete the 2016-17 School Accountability Report Cards and the 2017-18 Single Plans for Student Achievement.

General Fund: $3,500

It is recommended the Board of Trustees approve the continued use of Burke Williams and Sorensen; Dannis Woliver Kelley; and Lozano Smith as legal firms providing professional services for the 2017-2018 fiscal year.

Staff recommends the Board of Trustees approve the Memorandum of Understanding and Agreements to provide support to teacher interns and student teachers.

It is recommended the Board of Trustees ratify the Portrait and Yearbook Agreements for C.F. Brown Elementary, Crossroads Elementary, Orchard Elementary, Sherwood Elementary, Standiford Elementary, Stockard Coffee Elementary, Sylvan Elementary, and Ustach Middle School with Shoob Photography and Banks & Co. Photography for the 2017-2018 school year.

It is recommended the Board of Trustees ratify the Portrait and Yearbook Agreements for C.F. Brown Elementary, Crossroads Elementary, Orchard Elementary, Sherwood Elementary, Standiford Elementary, Stockard Coffee Elementary, Sylvan Elementary, and Ustach Middle School with Shoob Photography and Banks & Co. Photography for the 2017-2018 school year.

1. The donation of $248.46 from Ryan Gutierrez to Crossroads Elementary School for student recognition and supplies.

2. The donation of $10.00 from YourCause Corporate Employee Giving Programs to Freedom Elementary School for student recognition and supplies.

3. The donation of $5,105.42 from Freedom Elementary PTA to Freedom Elementary School for perfect attendance metals, Physical Education equipment, chromebooks, and office supplies.

4. The donation of $100.00 from Jose Jimenez to Mary Ann Sanders Elementary School for supplies for students.

5. The donation of $58.64 from Raley's to Sherwood Elementary School for student recognition and supplies.

6. The donation of $1,022.33 from Sherwood Parent Teacher Club to Sherwood Elementary for playground equipment.

7. The donation of $20.00 from YourCause Corporate Employee Giving Programs to Stockard Coffee Elementary School for student recognition and supplies.

8. The donation of $26.58 from The Kula Foundation to Stockard Coffee Elementary School for school recognition and supplies.