June, 2018

Faulkton Area School District 24-4 Board of Education

Monday, June 11, 2018

6:00 p.m.

The regular meeting of the Faulkton Area Schools 24-4 Board of Education was called to order by Chairman Ryan Nelson at 6:00 p.m. in the Faulkton School Lunchroom.

Roll call of members present were Kelly Aesoph, BJ Kalkman, Scott McCloud, Ryan Nelson and Jerry Weyand. Also present were Superintendent Derek Barrios, Secondary Principal Craig Cassens, Business Official Lisa Hushka, staff members: Jeremy Demery, Alicia Hammond, Janet Reed, Val Ramsdell from the Faulk Co. Record, Toby Morris from Dougherty & Company, and the following district patrons: CW Bauhs, Gloria Bode, Tim Bowar, Michelle Brand, Trevor Cramer, Carrie Deiter, Troy & Stacy Hadrick, Paul Niederbaumer, Barb Schilder, Tom Strasburg, Carol Walker, and Corrine Weyand. The pledge of allegiance was recited.

2017-18.171. Agenda Approval. Motion by Kalkman, second by Aesoph, to approve the proposed agenda with the addition of “Early Childhood Education” at 7.2 on the agenda. Unanimous.

Acknowledgements. Chairman Nelson thanked Superintendent Barrios, on behalf of the board. Nelson said they appreciated the time and effort he has put into Faulkton. Nelson stated Barrios has been an asset to our teachers, students and the community. Nelson wished Barrios much happiness and prosperity in his future endeavors. Barrios then acknowledged both the Track and Golf teams on a successful season. Barrios stated the following golfers made it to state: Brooke Niederbaumer, Taylor Machtemes, Sydney Campbell, Taylor Cramer, Noah Cunningham, Tyler Ogle, Bennett Cassens, and Trevor Boss. Barrios said the following track athletics placed at state: Peyton Melius 4^th in the high jump, Abby Vetch 8^th in the 300-meter Hurdles, medley relay 8^th (James Bowar, Derek Heitmann, Gannon Martinmaas, Andrew Sorenson), 800-meter relay 7^th (James Bowar, Derek Heitmann, Kaden Lee, Gannon Martinmaas) and Kaden Lee placed 4^th in the 300-meter hurdles and 3^rd in the 100-meter hurdles.

Conflict of Interest. No conflict of interest waivers were presented.

Open Forum Time. 1. Paul Niederbaumer asked the board if they consulted with anyone when they decided to build a school. Niederbaumer stated he was pretty sure no one here knew how. Niederbaumer also said it’s really too bad about the hostility we have had towards the board but he stated he thought everyone just wanted to have a voice in the process of building or renovation. He thought in order to kill that hostility it needed to be put to a vote. Niederbaumer also questioned why the board was looking at funding this through the capital outlay fund instead of a long term bond. He expressed concerns about decreasing bean prices and the tariffs that may go into place. Chairman Nelson said the board has been consulting people and Toby Morris, Dougherty & Company, was here to help answer some of those financial questions. Niederbaumer stated he thought the building committee should have been developed 3 years ago and that’s why he assumes the board hasn’t consulted with anyone yet.

2. Carol Walker stated after last month’s meeting, and listening to the way this board was chastised for trying to move forward, and even though that motion was rescinded, she would like to commend this board for trying to take action and move forward with the remodel project. Walker stated she wondered why previous boards and superintendents didn’t have a 5-10 year strategic plan already in place and why updates and improvements weren’t done as needed so we weren’t in this position today. Walker said that now this board has taken on the monumental task of putting that in place and moving forward with the best economical plan. Walker spoke about how the majority rules in a democracy and at no time will everyone agree. She stated it is then the job of the minority to work with the majority for the best possible outcome. She said they shouldn’t be stomping their feet, whining, crying, and trying to impede progress as much as possible. She stated if the vote is 3-2, the 2 should either get on board or get off. Walker said the district already paid one architectural firm $43,000 and now owe HKG $17,000 and we don’t need another firm to tell us the same thing. She said if there are questions about the soundness of the existing building, go back to the structural engineer’s report and then move on. Walker said it’s not up to the architect whether we remodel or build new, they will do as they are instructed. Walker said that decision is up to the people the taxpayers elected to this board. In closing, Walker said you aren’t going to satisfy even half of the people, and you certainly can’t listen to them all, so form your building committee and keep the plan generic. Walker then talked about once the business committee is done the board will then be able to make their motion again and move forward.

2017-18.172. Minutes & Financial Approvals. Motion by Aesoph, second by Kalkman, to approve the following consensus agenda: minutes of the May 14, 2018 meeting, May 2018 Financial Statement, May 2018 Imprest Report, and May 2018 Trust and Agency Fund Report; and payment of the presented bills for June 11, 2018. Unanimous.

May 2018 Imprest Fund: Travel: Chad Spicer $110.34,Chase Casper $28.56, Shae Stephenson $298.62, Dacotah Bank $1,098.

Fees: Howard Wood $50, Eureka Golf Course $30.90, HIllsview $360, Highmore School $128.73, SDSSA $150, Cattail Crossing $80, Prairie Winds $80.

Supplies: Shayne Geditz $34.92, Aberdeen Awards $78, Carol Schilder $240, Faulkton Drug $20.06.

Repairs: Rosene Royce $6.

Refunds: Jamie Hustead $250.

June 11, 2018 Bill Payment: A&B Business $918 Equipment, Aberdeen Awards $45 Supplies, Ace Refrigeration $1,693.20 Repairs, Agtegra Coop. $159.55 Gas, American Legion $225 Fees, Bantz Gosch, Cremer , Peterson $1,585.56 Services, Bauer’s Super Valu $409.43 Supplies, BerMac $71 Repairs, Cardmember Services $10,461.07 Supplies & Equipment, Century Business $587 Services, City of Faulkton $224.65 Water/Sewer, Cole Papers $12,409.69 Supplies, Dakota Bank $98.45 Supplies, Daktronics $11,582 Equipment, Delta Dental $2,817.98 Insurance, Distributed Website Corp. $250 Fees, DustTex $258.60 Services, Faulk Co. Record $507.68 Supplies & Publishing, FAMC $1,256.25 Services, Faulkton Football $910 Board Wage Donation, Faulkton School $3,794.13 Reimb. Imprest Fund & Board Wage Donation, Faulkton Wrestling $1,560 Board Wage Donation, Follett School Solutions $575.67 Books, Guesthouse Inn & Suites $356 Travel, Hanson Construction $114.80 Services, Hillyard Floor Care $5,512.78 Supplies, Homan Ace Hardware $422.51 Supplies, Equip. & Repairs, House of Glass $403.55 Supplies & Repairs, JW Pepper $17.99 Supplies, K&D Busing $17,710.39 Bus Contract, KC Lumber $419.30 Supplies, Michele Latt $59.34 Travel, Marc $4,005.97 Supplies, McCrossan Boys Ranch $5,219.93 Tuition & Residential Services, Menards $1,102.68 Equip. & Supplies, Northern Plains $1,462.50 Fuel, Northwestern Energy $2,707.41 Electricity, Pauer Sound & Music $3,943.99 Equip., Reading Warehouse $289.09 Books, Reliastar Life $23.40 Insurance, Reuer Sanitation $585.00 Services, Nancy Ryman $786.85 Services, School Specialty $265.82 Supplies, SHI $2,125.86 Software, Spero $1,399 Equip., Taylor Music $280 Supplies, Technology & Innovations $1,790 Fees, Thrive Nutrition $8,489.69 Food Service Contract, Time Management Systems $43.29 Services, Toennies Plumbing $75.93 Repairs, Venture Communications $492.50 Phone/Fax/Internet, Zaner-Bloser $26.52 Workbooks, Wellmark $29,559.73 Health Insurance; June 2018 Payroll: General Fund: $194,075.69 w/ benefits, Special Ed. $23,280.41 w/ benefits, Food Service $2,540.10 w/ benefits, Pre-K & Driver’s Ed. $6,574.77 w/ benefits.

HKG Building Discussion/Committee Formation. Toby Morris, Dougherty & Company, spoke and caught up everyone up to speed with what the board has been reviewing, financially, since the last meeting. Morris stated there was questions about paying for the project all at once and his job was to look at the financial impact of that. He said sometimes you don’t want to add an additional tax but then when you work with what’s already in place, you can make that work without a significant burden on the taxpayer. He said the legislature has imposed some restrictions on smaller districts like us that make the process more difficult. Morris said our district has been very fortunate with great community support for the opt-out and that is very important to the school. Morris said in his opinion we have 2 really good ideas (renovate or build new) out there. He said he knows our history and he was here a couple years ago when TSP was here and some numbers were spit out that he suggests everyone erases from their minds because they aren’t realistic and from a financial view aren’t even close. Morris talked about scaling back the project to fit with our current finances and how we preserve the opt-out. He talked about the ag economy and that there is never a good time for another tax but there is also always a time when you need to invest. Morris said one of the biggest fears he sees right now is the rate of inflation and construction costs. Morris stated you can never out-save inflation so the answer to the question about paying for it all at once is yes but in order to do so you would have to triple the request for capital outlay. Morris explained that what is financially correct, is generally politically incorrect so the board had asked him to come up with a strategy. Morris stated he told the board the first thing was that all board members needed to agree on the project because if not, it’s dead upon arrival. The vote needs 60% to pass. Morris stated he thought the best time for the vote would be the November general election because a lot people show up to vote at that. He said the “no” people never forget to vote and that’s hard when you need 60%. Morris said the question would be whether it could get done by then. Morris said from what he and Hushka calculated, this GO bond that covers the remodel and a new high school and commons area, would have a very minimal impact on the taxpayer. This is due to the HVAC debt being paid off this fiscal year which would lower the capital outlay request, as well as, the capital outlay cap imposed by the state. He stated our scenario is way different than Redfield School where they had to raise an additional $2.00 levy. Morris stated he feels this board can do it for a very minimal impact to the taxpayer. Morris said inflation will be the bigger impact, but he’s not saying run out and do it because the only thing that happens fast is an accident. But at the same time, Morris said if you don’t start now you will be in the same place a year from now. His advice to the board, is that consensus has to happen, and the building committee needs to be formed. He said we can fit it in economically so you won’t see the $2 impact that Redfield had, but a minor one. Morris said by minor you may see $10-15 on a $100,000 home, or $150 on a $1,000,000 farm property. Morris stated within a $0.10-$0.20 levy increase. There were questions asked about a timeline. Morris stated he would see the building committee meeting in June, July and August and then come back to the board in August. At that time the board would decide to roll it out to the community. Morris said if the board receives a severe backlash the first 2 weeks of September they know they need to go back to the drawing board. If not the election process for November would start. Morris said this is definitely a compressed cycle but it could be done. Morris stated if all goes well he would then ask the building committee to be the promotion committee to promote and sell the plan to the community. When the vote passes then bids could be opened in March-April 2019 with construction to start in June. Morris said first the board needed to decide on 1 or 2 projects. Morris’ recommendation would be the 2 projects together because he didn’t believe, after spending a lot of time in Faulkton, that separately they would pass. Weyand asked about the impact on a $7 million project. Morris explained again that the overall impact would be minimal after lowering the capital outlay levy. Kalkman asked Morris’ suggestion on building committee members. Morris stated you like to have a lot of teacher input because they are the ones that live it and breathe it, but you also want a financial input as well as strong community members because they are the ones that will have to go out and sell it to the community. Kalkman asked if the board needed to agree with all the members. Morris stated the board needs to take the input from these people and they are the ones selling it to the community. If they can’t the project is dead on arrival.

Aesoph asked Morris’ recommendation on paying off the project in 2 years. Morris stated you could do that but by tripling taxes like that you can probably plan on no one here after the 2 years. Morris said you just can’t mess with taxes that hard and the rule is to spread it out so several different generations pay for it. Aesoph voiced her concern that she thinks the top priority should be the opt-out. Weyand said he didn’t want to take the chance of the opt-out failing. Weyand and Morris both stated if the GO Bond passed it really wouldn’t make any sense that the community wouldn’t pass the opt-out. A November GO bond election wouldn’t have to be decided until mid-September. Weyand stated he would like to put both projects together and vote on it. Weyand asked Morris how much money should be set aside in the capital outlay fund. Morris stated he would recommend putting a couple hundred thousand ($250,000-$400,000) aside just in case. He stated if the money isn’t used at the end of the project, the board could transfer the funds to the general fund and lower the opt put request. Morris said inflation is about 5% of total costs. The board was in consensus to try to bring a general obligation bond to a vote in November after committee work is done and presented. The GO bond would be for a new high school and commons building and the elementary remodel. Building Committee. Nelson stating the following people were assigned to the building committee: Scott Lepke, BJ Kalkman, Scott McCloud, Melissa Geditz, Vanessa Bowman, Craig Cassens, Jeremy Demery, Michele Latt, Janet Reed, Dwight Hossle, Mike Grunewaldt, Gloria Bode, Tammy McCloud, Steve Roseland, and Gary Holsing. Barrios will talk with Mr. Lepke and plan for him to move forward. This committee will work with the plans that are in place, visit other schools, and report back to the board. The building committee will work with HKG and what the board is currently working on. Kalkman asked what happens if a community member is not on board with what the board is working on. Nelson stated the committee will be working on what the board has decided. Barrios stated that the board can’t be afraid of getting feedback from the building committee. He stated the board should not take the feedback as being attacked. McCloud didn’t want the committee separated in groups but working together as a whole.

Budget Discussion. Capital Outlay- Hushka presented the board with the current capital outlay budget and stated there are still a few line items that are preliminary but for the most part it is complete. The board decided to put $95,000 in the budget to repair/replace the elementary roof if the GO bond vote fails. Hushka stated she will contact HKG to see what dollar amount should be added for architect fees. The board decided to put $150,000 in the budget for a building set aside. Hushka stated from what she is being working on so far, she expects the general fund opt-out request to be similar, or a little higher, than last year but will know more in the next couple weeks. She stated the budget will be published on June 27^th and the hearing will be at the next meeting, July 9^th, in the community center.

2017-18.173. Lunch & Breakfast Prices. Motion was made by Weyand, seconded by Kalkman, to raise lunch prices $0.10 as required by the state and $0.05 on breakfast. They will be as follows. Breakfast: K-12 $1.95, Adult $2.25. Lunch: K-5 $2.60, 6-12 $2.85. Unanimous. Hushka stated the state will set the adult lunch price in July.

2017-18.174. Surplus Declared- Withdrawn Library Books. The following registered voters of the district were chosen to appraise the surplus property: Ryan Nelson, Scott McCloud and Craig Cassens. The appraisal value was $0.00. Motion by McCloud, second by Aesoph, to declare the 2017-18 withdrawn library books as surplus property. The board’s intent is to dispose of said items. Unanimous.

2017-18.175. Surplus Declared- Milk Vending Machine. The following registered voters of the district were chosen to appraise the surplus property: Ryan Nelson, BJ Kalkman, and Jerry Weyand. The appraisal value was $485. Motion by Kalkman, second by Weyand, to declare the Milk Vending Machine as surplus property. The board’s intent is to sell said item by private sale. Unanimous.

End of Fiscal Year Meeting and July Regular Meeting. It was decided to set an end of fiscal year board meeting on June 28^th at 1 p.m. in the superintendent’s office and the regular meeting on July 9^th at 6:00 p.m. in the community center. The budget hearing will be first, followed by the regular meeting.

2017-18.176. Restraint & Seclusion Policy. Mr. Barrios read the restraint and seclusion policy for a first reading. Motion by Aesoph, second by Kalkman, to have the second reading at the June 28^th special meeting. Unanimous.

2017-18.177. Early Childhood Handbook Policy. Mr. Barrios read the early childhood handbook policy for a first reading. Motion by Kalkman, second by McCloud, to have the second reading at the June 28^th special meeting. Unanimous.

2017-18.178. Special Education Comprehensive Plan. Mr. Barrios stated the Special Education Comprehensive Plan did not have any changes from last year but needed to be adopted every year. Motion by Aesoph, second by Kalkman, to adopt the Special Education comprehensive plan. Unanimous.

Open Forum. 1. Carol Walker stated that people need to be aware that a former school board member took it upon himself to make an intimidating visit to a colony and told them that since their children don’t attend school in Faulkton that they should not be bringing their people in to vote on school issues and elections because it doesn’t concern them. Walker hopes our good neighbors choose to ignore the ignorant ass and continue to exercise their right to vote on how their tax dollars are spent.

2. Paul Niederbaumber wanted to know if the board had a backup plan if the elementary roof leaking is too bad, or black mold or asbestos is found. He wanted the board to be prepared for the worst case scenario.

2017-18.179. Executive Session-Personnel. Motion by McCloud, second by Kalkman, to go into executive session at 7:10 p.m. for the purpose of discussing the qualifications, competence, performance, character or fitness of any public officer or employee or prospective public officer or employee. The term "employee" does not include any independent contractor, as set forth in SDCL 1-25-2(1). Out of executive session at 7:15 p.m. No action taken.

2017-18.180. Adjournment. Motion by Aesop, second by Aesoph, to adjourn at 7:16 p.m. All in favor, motion carried.

_______________________________________ _________________________________________

Board Chairman, Ryan Nelson Business Official, Lisa Hushka