Additional Details

Finance Committee Meeting

 

AGENDA

 

This meeting will begin at 7:40 a.m. or immediately following the Audit Committee meeting.

Monday, April 16, 2012

7:40 AM

DeLayo Martin Community Room, Alice and Bruce King Educational Complex, 6400 Uptown NE

Albuquerque, New Mexico

 

I.	Call to Order
A.		The Finance Committee meeting will begin at 7:40 a.m. or immediately following the Audit Committee meeting.
B.		Approval of the April 16, 2012, Finance Committee Agenda and Minutes of the March 20, 2012, Finance Committee Meeting (Discussion/Action)
II.	Consideration for Approval of Budget Adjustments for Grant Management (Discussion/Action) Presenter: Al Sanchez
A.		IDEA-B, $771,481
B.		Title III, $74,271
C.		IDEA-B-Redistribution, $31,220
D.		IDEA-B-Preschool, $24,047
E.		Dual Credits, $15,989
F.		Carl Perkins, $10,146
G.		APS Foundation, $10,145
H.		Carl Perkins-High Schools That Work, $915
I.		JAG-Jobs for America's Graduates, $410
J.		Title II, ($106,320.00)
III.	Consideration for Approval of Grant Management Inter-Function Transfers for March 2012  (Discussion/Action) Presenter: Al Sanchez
IV.	Consideration for Approval of Grant Management Intra-Function Transfers for March 2012 (Discussion/Action) Presenter: Al Sanchez
V.	Consideration for Approval of Final Transportation Charter School Allocation 2011-12 (Discussion/Action) Presenter: Brad Winter and Roger Garcia
VI.	Consideration for Approval of Charter School Transportation Administrative Fee 2011-12 (Discussion/Action) Presenter: Brad Winter and Roger Garcia
VII.	Consideration for Approval of USDA Mandated Price Increase for School Lunches Presenter: Brad Winter and Mary Swift
VIII.	Consideration for Approval of Operational Fund Intra-Function Transfers (Discussion/Action) Presenter: Ruben Hendrickson
IX.	Consideration for Approval of Gifts, Grants and Donations of More than $5,000 (Discussion/Action) Presenter: Brenda Yager
A.		Car Talk Vehicle Donation Program Check for KANW
X.	Consideration for Approval of CDWG Purchase Order for LANDesk Annual Licensing (Discussion/Action) Presenter: Lynn Harris
XI.	Consideration for Approval of Indoor Bleacher Preventative Maintenance and Repair Bid #12-046MM-SL (Discussion/Action) Presenter: Mark Heckart
XII.	Consideration for Approval of Telecommunications and VoIP Installation Services on Demand Bid #12-050SC-SL (Discussion/Action) Presenter: Mark Heckart
XIII.	Consideration for Approval of Communication Services RFP Bid #12-045GR-MC (Discussion/Action) Presenter: Mark Heckart
XIV.	Consideration for Approval of Statement of Equipment Taken out of Service March 1-31, 2012 Discussion/Action) Presenter: Tami Coleman
XV.	Consideration for Approval of Assets Missing Greater than Two Years (Discussion/Action) Presenter: Don Moya
XVI.	Consideration for Approval of Cash Disbursements for March 2012 (Discussion/Action) Presenter: Tami Coleman
XVII.	Consideration for Approval of Disposal of CATA Fixed Assets (Discussion/Action) Presenter: Tami Coleman
XVIII.	Presentation of CATA Financial Reports for March 2012 (Discussion) Presenter: Tami Coleman
XIX.	Presentation of General Obligation Refunding Bonds and Educational Technology Notes (Discussion) Presenter: Don Moya
XX.	Presentation of Alignment of the GO Bond Election with 2 Mill Levy Election in 2013 (Discussion) Presenter: Don Moya
XXI.	Presentation of FY13 Strategic Budget Look Ahead Update (Discussion) Presenter: Don Moya and Ruben Hendrickson
XXII.	Future Agenda Items
A.		None at this time.
XXIII.	Adjournment
A.		The next Finance Committee meeting will be held on Monday, May 21, 2012, at 7:30 a.m., at the Alice and Bruce King Educational Complex in the DeLayo-Martin Community Room.

Albuquerque Public Schools

Finance Committee Meeting

April 16, 2012

Roll Call Attendance: Chairman, Martin Esquivel-present (via telephone), Lorenzo Garcia-present, Kathy Korte-present (via telephone), Paula Maes-absent, Analee Maestas-present, David Peercy-present and David Robbins-present (via telephone)

 

Participating Were: Don Moya, Tami Coleman, Al Sanchez, Ruben Hendrickson, Mark Heckart, Brad Winter, Linda Sink, Mark Tolley, Kizito Wijenje, Brenda Yager, Lynn Harris, Paul Cassidy

 

1. 1. Call to Order

Dr. Peercy called the meeting to order at 7:49 a.m.  Mr. Garcia made a motion to approve the April 16, 2012, agenda and to approve the minutes of March 20, 2012, with Dr. Maestas seconding the motion in the affirmative.  Motion carried.

 

1. 2. Consideration for Approval of Budget Adjustments for Grant Management
   1. IDEA-B, $771,481
   2. Title III, $74,271
   3. IDEA-B -Redistribution, $31,220
   4. IDEA-B-Preschool, $24,047
   5. Dual Credits, $15,989
   6. Carl Perkins, $10,146
   7. APS Foundation, $10,145
   8. Carl Perkins-High Schools That Work, $915
   9. JAG-Jobs for America’s Graduates, $410
   10. Title II, ($106,320)

Mr. Sanchez presented several adjustments—with the exception of the Carl Perkins grants, these adjustments are from projected allocations to final allocations.

 

Mr. Garcia motioned for approval of the Budget Adjustments for Grant Management items A, C-J (requesting additional information on item B) with Dr. Maestas seconding the motion in the affirmative.  Motion carried

1. 3. Consideration for Approval of Grant Management Inter-Function Transfers

Mr. Sanchez presented routine transfers, which will provide adjustments to close out the year.

 

Dr. Maestas motioned for approval of the Grant Management Inter-function Transfers with Dr. Peercy seconding the motion in the affirmative.  Motion carried.

 

1. 4. Consideration for Approval of Grant Management Intra-Function Transfers

 

Dr. Maestas motioned for approval of the Grant Management Intra-Function Transfers with Mr. Garcia seconding the motion in the affirmative.  Motion carried.

1. 5. Consideration for Approval of Final Transportation Charter School Allocation 2011-12

Dr. Winter presented a budget adjustment to the final transportation charter school budget in the amount of $12,139.

 

Mr. Garcia motioned for approval of the Final Transportation Charter School Allocation 2011-12 with Dr. Maestas seconding the motion in the affirmative.  Motion carried.

1. 6. Consideration for Approval of Charter School Transportation Administrative Fee 2011-12

Dr. Winter presented an adjustment to increase the District’s budget by $4,139.  This amount represents a fee charged to charter schools for APS providing transportation.  Transportation is contracted to three charter schools.

 

Mr. Garcia motioned for approval of the Charter School Transportation Administrative Fee 2011-12 with Dr. Maestas seconding the motion in the affirmative.  Motion carried.

1. 7. Consideration for Approval of USDA Mandated Price Increase for School Lunches

Dr. Winter presented an increase of 10 cents to student paid lunches for the 2012-13 school year.  The Health and Hunger Kids Act of 2010 requires that school districts increase pay meal prices each year until the price is aligned with the USDA reimbursement rate.  Currently that rate is $2.72.  Elementary lunch price would be $1.95 and $2.20 for middle and high school (lunches only).  The increase is necessary so that difference would not be taken out of the operational budget.  Increase can happen in 10 cent increments until USDA amount is reached.

 

Mr. Garcia motioned for approval of USDA Mandated Price Increase for School Lunches with Dr. Maestas seconding the motion in the affirmative.  Motion carried (under protest).

 

1. 8. Consideration for Approval of Operational Fund Intra-Function Transfers

Mr. Hendrickson presented routine transfers.

Dr. Maestas motioned for approval of Operational Fund Intra-Function Transfers with Mr. Garcia seconding the motion in the affirmative.  Motion carried.

1. 9. Consideration for Approval of Gifts, Grants and Donations of More than $5,000

Ms. Yager presented a donation made to the Car Talk Program.  The vehicle donations totaled $10,062.99—specifically a Mercedes Benz donation in the amount of $9,541.69.

 

Dr. Maestas motioned for approval of the Gifts, Grants and Donations of More than $5,000, with Mr. Garcia seconding the motion in the affirmative.  Motion carried.

1. 10. Consideration for Approval of CDWG Purchase Order for LANDesk Annual Licensing

Ms. Lynn Harris requested approval for the licensing fees for software applications for LANDesk, which is used to support remote computer support and computer asset management.  Over the next year, Ms. Harris will be working with LANDesk to reduce annual licensing fees to be aligned with industry standards.

 

Mr. Garcia motioned for approval of the CDWG Purchase Order for LANDesk Annual Licensing with Dr. Maestas seconding the motion in the affirmative.  Motion carried.

1. 11. Consideration for Approval of Indoor Bleacher Preventative Maintenance and Repair Bid #12-046MM-SL

Mr. Heckart presented a bid for maintenance and repair of specific locations as listed in the bid document.  Two awards are being recommended due to the volume.

 

Mr. Garcia motioned for approval of the Indoor Bleacher Preventative Maintenance and Repair Bid #12-046MM-SL with Dr. Maestas seconding the motion in the affirmative.  Motion carried.

1. 12. Consideration for Approval of Telecommunications and VoIP Installation Services on Demand Bid #12-050SC-SL

Mr. Heckart discussed that this particular bid was done in accordance with SLD requirements so it is eligible for E-Rate reimbursement.  Two responses were received—one of the bidders did not have their certifications up to date.  The other respondent has done work for the district in the past and has worked very well.  The award is being recommended to NACR (North American Communication Resources).

Dr. Maestas motioned for approval of the Telecommunications and VoIP Installation Services on Demand Bid #12-050SC-SL with Dr. Peercy seconding the motion in the affirmative.  Motion carried.

 

1. 13. Consideration for Approval of Communication Services RFP Bid #12-045GR-MC

Mr. Heckart discussed that this bid is also eligible for E-Rate reimbursement.  The award is recommended for Time Warner Telecom and Century Link.

 

Dr. Maestas motioned for approval of Communication Services RFP Bid #12-045GR-MC with Mr. Garcia seconding the motion in the affirmative.  Motion carried.

1. 14. Consideration for Approval of Statement of Equipment Taken out of Service March 1-31, 2012

Ms. Coleman presented equipment taken out of service for the month of March—most is computer equipment and other technology, which is probably obsolete.

 

Mr. Garcia motioned for approval of the Statement of Equipment Taken out of Service March 1-31, 2012, with Dr. Maestas seconding the motion in the affirmative.  Motion carried.

1. 15. Consideration for Approval of Assets Missing Greater than Two Years

Mr. Moya presented assets that have been missing for more than two years.  To Mr. Moya’s knowledge, this is the first time this request has been brought to this committee.  Fixed asset procedural directives were revised in June 2010 to reflect the new thresholds.  Prior procedural directives did not have a method for addressing missing assets.  Capital Fiscal Services does perform annual physical inventories conducted at sites.  During inventories, assets were not physically identified resulting in the missing items on this report.  Missing assets reports have been provided to all sites.  The leadership team and the associates have worked diligently with principals and directors to try and locate any missing items over the last couple of years. In March 2011, site personnel conducted a search for the missing pending assets at their sites.  There are 5,429 items with a book basis of $10.5M; the depreciation is $8.6M; the current book value is $1.8M.  Mr. Krezan asked the committee to note that the assets reported go back to 2003—cleaning up several years.

 

Dr. Maestas motioned for approval of Assets Missing Greater than Two Years with Mr. Garcia seconding the motion in the affirmative.  Motion carried.

1. 16. Consideration for Approval of Cash Disbursements for March 2012

Ms. Coleman presented the cash disbursement for March 2012.

 

Mr. Garcia motioned for approval of the Cash Disbursements for March 2012 with Dr. Maestas seconding the motioned in the affirmative.  Motion carried.

 

1. 17. Consideration for Approval of Disposal of CATA Fixed Assets

Ms. Coleman presented a list of assets (small and large).  This inventory was taken by the APS Fixed Asset department in October—about the time APS took over this particular charter school.  Before any school can dispose of equipment, the list needs to be presented for Board approval.  The items over $5,000 must go to the State Auditor’s office for approval prior to disposal.  Mr. Mark Tolley informed the committee that the administration has begun discussions regarding items purchased with Federal Stimulus funds—up to the district how to disburse.  Some items may go to school police, keeping furniture at the school site for another authorized charter school negotiating to move into the location, other departments will assess where items might be best used.

 

Mr. Garcia motioned for approval of Disposal of CATA Fixed Assets with Dr. Maestas seconding the motion in the affirmative.  Motion carried.

 

1. 18. Presentation of CATA Financial Reports for March 2012

Ms. Coleman presented CATA’s budget expenditure report as of March 31.  All previous budget adjustments have been entered.  At this time, CATA has a little over $100K of unencumbered budget—they should have enough to finish the year.  Mr. Garcia asked what the plan is in transitioning CATA’s students.  Mr. Tolley informed the committee that an open house was held with alternatives and magnet schools at CATA.  Information has been provided from other charter schools.  At this time CATA has 89 students of which 28 are seniors.  We are looking at a minimal number of transition students.  School staff has been meeting with these students; alternatives have been provided; Mr. Toby Herrera has been kind in helping these students with their APS district school information and how to register.  Staff has been placed on a priority list with the APS Human Resources department.

 

Mr. Garcia motioned for approval of presentation of CATA Financial Reports for March 2012 with Dr. Maestas seconding the motion in the affirmative.  Motion carried.

 

1. 19. Presentation of General Obligation Refunding Bonds and Education Technology Notes

Mr. Moya began discussion by saying that the Series 2004, 2005, 2006C bonds are currently callable and the remaining un-refunded portion can be funded.  This savings would generate a present value savings of approximately $2.5M.  The intent is to move forward and sell $13M worth of Ed Tech Notes.  In March 2011, the APS Board approved a resolution to issue Educational Technology Notes for maintenance and support of technology, which are not found in HB, SB or GO sources.  The Tech Notes are part of the current master plan—they do not increase taxes and would not change the current capital master plan strategy.  A resolution for both the refunding and the tech notes would be brought forward for Board approval on May 25.  Mr. Paul Cassidy stated that the interest rate savings are anticipated to be higher if the bonds were sold today.  The sale is planned for the third week in June and close in August—savings could be as large as $3M under current market rates.  Mr. Moya stated that the net savings would give the district additional capacity, which the plan is then to use tech notes to fund the new student information system.

 

1. 20. Presentation of Alignment of the GO Bond Election with 2 Mill Levy Election in 2013

Mr. Moya stated that a recommendation is being made to align the planned GO Bond Election that is scheduled for 2014 with the 2 Mill Levy Election in February 2013—both done at the same time in February 2013.  There is considerable savings with respect to holding the elections in the same year—approximately $250,000 on the operational budget.  It also helps better align the funding sources for the District’s capital master plan.  When the capital master plan reconciliation was done—projects were pushed out about a year.  By bringing the election forward a year; this should help in getting projects caught up and staying on schedule.  Mr. Kizito Wijenje stated that the same rules that apply to HB33 will apply to the mill levy election.  The issue of how charter schools (State or District) are prioritized will be discussed with administration and the Board some time in November.  Mr. Cassidy added that there is no tax rate increase.  Mr. Wijenje stated that a poll will be conducted four months before the election; results will be brought to the administration.

 

1. 21. Presentation of FY13 Strategic Budget Look Ahead Update

Mr. Hendrickson referred the committee to the FY13 Budget Update document and stated that the District is looking at a $4.7M shortfall relative to next year’s project revenues.  Rather than have cuts to the classroom, the shortfall will be funded through a combination of cash reserves and/or identify operational efficiencies—have identified some opportunities and possible leads—no hard numbers yet—in the middle of union negotiations regarding the 184^th day.  In a worst case scenario the district would draw down $4.7M in operating budget cash reserves.  In a better case scenario, identify $2.7M and minimize the amount of draw down to cash reserves.  Mr. Moya added that this is an update; more details will be brought forward about the budget task force when the budget is rolled up.  The entire process will be shared for your review.  Dr. Maestas asked in regards to Title I, was there any savings in the SES program.  Ms. Linda Sink responded by saying that this is part of the waiver—won’t be used for providers.  The district will find out soon how PED will require spending $5M—sent to priority and focus schools—won’t be used for providers due to waiver.

 

26.       Future Agenda Items

1. None

Dr. Peercy adjourned the Finance Committee meeting at 8:46 a.m.  The next Finance Committee meeting will be held on Monday, May 21, 2012, at 7:30 a.m., in the DeLayo-Martin Community Room.