001This conference will now be recorded. >> All right, I'll call the meeting to order. I'm Mike Ziggler, chair. And if we could go around the table, >> uh Bo Gibbs, vice chair. >> Connie Sassy, trustee. >> Frank C, trustee. Alex Rivas, trustee. >> Tessa Hopper, trustee. >> Stephan Sty, superintendent. Josh Kryless, trustee. Okay. Fail on trustee. Okay. Takes us to consent agenda. Everyone's had a chance to look at that. We've been having a motion in a second. >> I'll make a motion to approve the consent agenda. >> I'll second. >> It's been moved and seconded. Any further comment or discussion required? If not, all in favor say I. >> I. Any opposed? Motion carries. That takes us to communication. Is there any public comment that is not an action item? >> Does anybody make public
002comment? No, Mike. Doesn't look like it. >> Okay. Uh that takes us to board uh reports. Uh Sean's had a chance to look at those. Uh if there's any questions or if admin wants to expound on anything. Anybody have any to add to their report? I >> think we're all good unless someone has questions for us. >> Okay. That takes us to reports, discussions, and policies. building updates. >> Seems like it's only like five days from the last World War. It does seem fast. >> Um, locker room stuff, as you know, is kind of wrapping up. Um, HVAC project is still going and going good. Um, as I try to get caught up on stuff, trying to shift gears and get going on the next items on the bond list. So, um, for next summer,
003next summer will be another busy summer if everything goes well. So, have three or three or four projects going on at the high school, but we got to get that lined up time to be able to do it next summer. So, other than that, does anybody have any questions? All right. Yeah, if there's no questions there. Uh Stefan, uh you want to try giving Phil a quick call or >> I think he might be. >> Yeah, I think he is right now. >> Okay. the one and only. [Music] >> All right, I have Phil on the line for us >> so that we have a everyone present. Phil, are you you there for everyone to hear you? >> Yeah, I'm here. Thank you. Okay, thank you for joining us. All right, Mike, we're ready for
004action item A. >> Okay, action item A. Hire Jason Sassy for substitute bus driver per policy 1512, which basically I guess I guess I didn't read it before this, but Tonnie can't vote, has to abstain, and all board members are now present and it has to be unanimous. So, I guess with that, it does require a motion and a second. I'll make the motion. Go ahead. Whoever is making it. There you go. >> I'll make the motion. >> I'll second it. >> It's been moved and seconded. Any discussion or comment? If not, all in favor say I. >> I. >> Any opposed? Motion carries. Uh, thanks everybody. Thanks Phil. >> Thanks Phil for joining us. Appreciate it. Cheers to you guys. Bye-bye. >> Okay, that uh takes us to action item B 2425 trustees financial
005report. >> Okay, we'll hand this out. >> I miss you. >> Well, thank you, sir. Hey, >> it might the one online is um the same thing, I think, but maybe a little bit extra, but >> same thing for everyone online. >> So, everything I looked at earlier is the same as this. >> Yeah. Yeah. >> It's got to be easier to easier. It's >> nice to see the paper. So Bob couldn't be here tonight. He had a prior conflict. So he just kind of went through everything with me and told me what to highlight to you guys and then we will do our best to answer any questions you guys might have and anything we don't know and we will ask Bob and get back to you guys really. And then we will start
006with the elementary. >> We just didn't want to wait till October cuz he didn't make it this meeting and we were like let's get this thing >> through. I think I think we got it handled. I think we got it. >> And if you want to kind of flip to page 15, that's where >> on the elementary one. >> Yeah, on the elementary one. And then that's where it kind of starts in the different funds. And I'll just kind of go through and highlight some of the stuff we said to point out to you guys. Um you can see it has the 24 and 25 values so if you compare them. >> One second, Jackie. So, for those of you online, um I don't know if it has the pages on the bottom or not.
007Does it online one too? >> I'm seeing it. >> Yeah, it it did. >> I just want to make sure it had the page numbers cuz like that would be really difficult if you didn't have the page number. So, um so yeah, 15. It's right after all the tables start off with. Okay. Sorry. >> That's fine. Um, so, uh, one of the things he said to point out to you is I don't know if it's shows it on here, the deferred inflows that 18,000 and here >> um, it is on the balance sheet though and if you look at that and question it. It's just the money um because we had payroll like right at the beginning of July, but it was acred in June because that's when our staff actually worked. So, it was
008the same thing last year. Those of you that are on the board from last year remember um the auditors require us to show that as already incurred funds because it was incurred in June and then that carries over into the next fiscal year because they don't actually get paid until July 5th, but they've worked it in June. So that's what the deferred inflows are >> and we used to do it differently. >> Yeah. >> And then our auditors did not like the way that we did it and so they changed it and it gets more confusing this way but and more will work for us but that's it allows us it's going to allow us to eventually get one of our audit findings out of there by doing it this way. >> That's the hope.
009>> Yeah. >> Sounds good. >> And then um pretty much that was about it that he went through on the general fund. He says pretty basic. uh if there's huge differences. One of the things that we've been really working on over the last couple years is to clean up um some of the funds uh getting everything coded correctly. So the general fund is basically your salaries and um like your supplies and stuff that's what all comes out of the general fund. So the differences in salaries will be just because you know benefits changes from last year to this from 24 25 um increases in any salaries and then a lot of it we're just cleaning up coding and getting everybody in the correct positions. We've been working on it for the last two years. So
010hopefully going forward everything will start to even out now and you won't see those differences in some of those you know between last year and this year on those funds. And typically it's been about 88 to 94% of our general fund is salaries and benefits. So it doesn't leave a lot a lot of room for everything else. Um and uh and so like Jackie was saying any fluctuations. It's just when you have uh someone retire, their salaries are going to be different than the person replacing. Um you know uh most likely. Um and then um sometimes we someone else leaves that's on the low end and we have to pay someone higher when they come in at a higher uh wage and so those fluctuate quite a bit. It's hard to keep those things the
011same. >> Um so the next thing we move to on page 19 would be the transportation fund. And you'll see that there's quite a bit of difference between fiscal year 24 and 25. Uh part of that has to do with the shortage of bus drivers. We actually saved a lot of money because Charles drove almost every single day unfortunately and then we had to cancel a couple routes. So that has a lot to do with the huge difference in the money there. Um so we didn't spend as much through our transportation fund. And this is elementary. Another thing that we did too is we worked on splitting it more. Um we do a split of 7030 for the transportation fund between high school and elementary because the high school doesn't use as obviously they don't
012have as many students riding the bus and stuff. So this last year we really worked on getting that split out so more of it goes towards elementary than high school because that's where more of our riders are at is on the elementary side of the transportation. I think you're going typically we would do this before the budget and so you would went over this and what you would have saw next doing the budget is you would see that we didn't um have to levy as much in transportation because of this. So you know the problem with not getting bus drivers actually did help us not have to levy as much uh this year in that. So that helped um ease some things with other areas. Well, in another thing Bob said too to point out
013um and I guess the next one too, the bus depreciation fund. >> Um he said you'll see that if something comes up and we need to buy a bus, we obviously have quite a bit of money in there, so it wouldn't be an issue because we have the funds in transportation right now. Um Charles was thinking about wanting to get like a 12 passenger van. Um if you have something smaller, you don't have to have certain drivers to drive it. um you can have the teachers or the coaches drive it and it would make more sense than taking a big cruiser to go out of town on trips and stuff like that. So, he's thinking about that and he's looking at it, but right now we don't have anything that he's found, but we have
014more than enough money in there to purchase that if something happens and we need to. We've been talking about that for a lot of years because um because we don't have something like that now we're having to like um you know, let's just say golf or something when they're only sending a couple kids, you know. um we all we probably take a school vehicle but there's times where you don't need to send a whole bus a whole cruiser with them and so can we get something that's going to save us money in the the long run. Um we wouldn't right away but um but it's been something we've been discussing for a long time trying to figure that out. It's difficult because the state has different rules on that and what kind of vehicle you
015have to get because after a certain amount of u passengers and you have to have a CDL and so trying to get it to where we can even have people that don't have a CDL because that's been our problem is trying to find people um that have CDLs that can have the school passenger piece on there. So, >> and you have to be careful with the vehicles too that you buy out of that fund because it has to be for transportation students. So, we couldn't buy it and use it for like staff to go to meetings or stuff like that. So, you got it's kind of a tricky situation with the transportation money because it needs to be the majority of the use has to be for transportation of students, not other people in addition.
016>> Otherwise, we would have to split it out the cost into the general fund, which we don't want to do. >> It's already full enough. Um the next one if you go to our school food service fund. So the high school and elementary is one fund 22. >> Yep. I'm sorry. It's not separated out. Um if you know elementary and high school is all one fund and um school food service is kind of a tricky one because the money that's generated in there comes from um the payments that we collect from the students and the staff that eat part of the lunch program. But you can see our 24 value to our 25 value. It's a little bit more. I think part of helping with our fund balance is that Val's been really good about
017getting a lot more kids signed up for the free and reduced program than what they were in the past. Um I think it's maybe a little bit easier to get them on it, too. So, she's really been about making sure we get those kids on there so we get that money from the government to help pay for it so we're not getting stuck as bad as what we used to with a lot of those things. And even with the cost of food going up the way it has, it's it's pretty good that we have the fund where it's at right now. So >> if you look at line one at the bottom here, beginning fund balance, you can see it was negative. That was a it wasn't a it was an auto financ that's not
018something that, you know, you want to have. Um we had to, you know, replenish that. Luckily, it was only, you know, $164. It wasn't a big thing. The list of schools, we were not the only one by any There was quite a bit of schools that that falls into because it's really difficult to um to do a this because I mean you can imagine sometimes you have a you don't you can't really get accurate numbers all the time, how many students are going to be eating and so forth because people just do it whenever they want to and so they they try to do their best. Um but you can see that our end balance was you know 1300ish which was good was good. Um the next thing we move to page 23 is our
019tuition fund. And you can see there was a huge huge increase on that. Um the legislature passed last year so that we have to start paying our kids that are residents of Dawson County and are going out of district to different schools. We have to start paying those schools tuition. And in the past that was never they never mandated it. We never had to do it. And it's the same thing for um the kids coming in. rebuild those districts of residents. So, it's based on where the kids live as to who has to pay the tuition. Um, and this also goes toward paying for group home, any kids that we have in group homes. It pays for our one-on-one aids. Um, so we had to bump it up quite a bit last year. So, we
020made sure we had the money in there to cover what we're going to have to pay out. And I think um our out of district, our kids that are traveling out of district this year, we have to pay about $70,000 for that. And then the kids coming in was like at 45 or 50 that we'll be able to collect. So that's why there's such a huge increase on our tuition fund. And then we also had um quite a bit of reserves in there. So I think we didn't levy that this year. >> No, there wasn't. I don't think there was much at all. >> Yeah, because we had so much money in there. But next year hopefully it'll get to the point where it starts to even out and we might have to take a
021look at it again. And it might take us a couple years to bring it down where we'll have to start legging again. But um I think that's why there's so much money in there too as part of that. So >> the district has always um since I've been here until the state did what they did has always um just basically said if hey if someone out of district's going to come we're not going to charge them tuition. So there was no charge. Um, and a lot of people would say, "Oh, they need to be paying something." But the dis basically we would get the A and B from them. So, we'd get money from the state for them. Um, if you, it was kind of like this this thing if you charge tuition, you might
022not get them to come and then we wouldn't get the A and B. And so, it was this decision that we just didn't charge tuition. They could just come in freely. But when the state changed it to basically now everyone's depends on what district they're coming from and then there's this formula they put as to how much the tuition is going to be. Um now it's not a choice by the districts. It's just they tell us how much it is. We have to collect that from it's it's a lot work for Jackie and everyone and we're still learning the process. There's a lot of pieces to it. I think they they tried to make something better but it it made a lot of problems. So >> I think part of it too has to do
023like with the bigger towns like Billings and all of the kids that are crossing over >> like Lockwood. >> Yeah. In town but into a different district and they were trying to get a way to make that better. But I think it what it did is it affected all of us rural areas more than it did those places. So >> yeah. >> And and you're not you're never going to get away from that. You're always going to have students going back and forth and and trying to choose that. So it's just now it's just a lot of paperwork. Okay, page 24 is our retirement fund. Um, we bumped that up last year, too. What we put in there because we were in the middle of a TRS audit and we just wanted to make sure
024we had extra funds in there to cover what we were going to have to pay out. Um, that doesn't the county pays for TRS. That doesn't come from our taxpayers. So, well, in a way it does, but >> but it's not a levy that we are collecting on for the school. So, we bumped it up to help cover what we're in and plus anticipation of who we might have retiring. So, we take a look at what where they're at and you know what potential we could have so that we have money in there to cover to pay for their buyouts for their retirements. >> It's also a very difficult thing to figure out if you don't know >> and they don't have to tell us um until I think it's February now. I think we
025had that changed in the CPA, but it used to be like March. And so it was so you're doing this at the beginning of the year not knowing because they're not going to be able to tell you. I mean, they don't tell you till the last minute that they're going to retire in. Um so it's difficult to to know how much um to budget for for that, but that's just paying out all the all their retirement stuff. And the next one, our fund 15 starts on page 26. So this is our miscellaneous program funds. A lot of it is the grant money we get. You can see there's the state Medicaid, um, county grants, title funds. Um, these are a lot of these funds are more high school. Well, some of them are more elementary,
026too. These are all the elementary ones, but um the just list it again here. The county grants, that's like the private donors. Um the Masonic stuff they get, Mid Rivers gave some money, different funds like that. Um a lot of the title stuff is going towards salaries. And don't panic if you see a negative on here. I'm trying to find where it's at. >> Is that on page 29 on the project? >> Yep. So, if you go to page 29, you'll see that there's a huge negative on there. Part of that is because like the um title grants and stuff, we put in the final reports at the end of the year, like in June or July, but the state doesn't fund it until August or September. So, we don't get that money given to
027us until after the end of our year is over. So, we show it as debt um funds due from other government sources and stuff. So, it's not coming in until later, but in the end, we actually were about 143,000 positive on that fund once we receive all that money in from those outside sources. So, it's always probably going to be like that where it'll show a negative at the end of the year just because we have to wait for those funds. And the state, you know, they tell you you have to have it all these reports in, but then they take two months to approve them and send you the money. So, it's just kind of tricky. And that kind of holds up our budget and stuff too when we're doing it because we have
028like at the end of July they give us one week to get stuff done and they give us the information and we have a week to turn around and get the budget stuff done. So it's just kind of >> and we're waiting on them most of the time >> though and I don't know how they change it because we've talked about this before even in board meetings. I don't know how what the solution is because it there was they would have done this a while ago but it's just just really busy. That's why it's always really difficult by our second Monday in August to get everything done. Um it's just almost impossible to do that. Um but the miscellaneous fund in my perception is one of the most crazy funds because you have all this
029stuff coming in and out constantly because of the different grants. So if you've seen on my board reports and stuff, um egrants, um if you looked at that, e-grants is like our federal money and our state money that we get. And so we have to always apply for that every year. Um that's all comes out of the miscellaneous funds. So all of these that are listed, the title one, title five, IDEIDA, um you know, all of those um you know, come in there that we have to apply for every year and get those and that we would not we would not survive without all that money coming in. So it's it's a big deal. And Bob wanted me to point out too that you notice there's a huge difference between 24 and 25. 24 we
030had esser funds. We didn't have those anymore in 25. So that was where the drop off came with all that extra funding was through er that that all went away in 24. So that's where that was at. Um >> I'm very glad we don't have to report on that anymore. Um page 30 is our lease rental fund. This is rent for renting out the buildings for different things like we coach the basketball tournaments and um different things like that. So you see um what we took in our ending fund balance was $10,000. So um we don't really have a whole lot of rental things for elementary. Just basically that is all there is for there. Do we separate the uh expenses for rentals >> like putting janitor? You have extra hours, extra service from janitors
031and stuff. Is that separated out? >> So I don't know how it's booked. I would assume >> we we um this year we build them separately for the janitors salaries for their overtime. >> Okay. >> So yeah, it's not I don't think it shows up on here, but we did build it's part of the bill that we sent to them for like Makoska. Okay. We took what the anything for overtime for that weekend for the janitors we build to them in that bill. We need to pay that. >> That's good. >> And I don't think we've done that before. >> Well, the tracking was also difficult. So, it was very >> we Yeah. Well, we we talked about that last year. I think when we were doing the well, the building reserve stuff. >> We
032had this discussion. So, I was just checking. >> Yeah. >> Last year we did. >> Yeah. I'll take the opportunity to throw some props to the business office because they were the ones that were able to be able to track that and have it in the >> Oh, that's not easy. I know about it. >> So, yeah, it was really good when they did that for this year. >> Yeah. Oh, that's that's good. >> Next, page 30 is our technology fund. And Bob talked about that a little bit when we did the budget. Um, we have a $20,000 levy for every year and we don't want to change that right now because if we do, there's a chance it'll go away and we won't even have that anymore. So, it's kind of a pretty tight
033fund. There's not a lot we can spend out of there and most of it comes out of the general fund just because $20,000 doesn't go any far when you're buying technology anymore. So, >> and that's what we talked about in the budget, you know. Yeah, >> might have to one day do something about that. Um, and probably sooner than later, but it's anything that's done to schools in order to get any more money, the place you have to go to is the taxpayers. That is one of the hardest things is they are already overt taxed in my opinion. But it's how we get money. So, >> next one is our flex fund and that's just kind of um like our advanced opportunity fund we get from the state go into there. Um and I honestly
034am not super familiar with the flex fund. >> Yeah. So the flex fund um it's it's that it's a flexibility fund for us that um it's not really it doesn't really have any there's only certain grants that go into it like advanced opportunities we had transformational learning when we had that um went into it. um at times oil and gas money goes in there, but that has been shifted. And so, um it's just really another place where we can spend some things out of, but it's not something you budget for because you don't know how much money is coming in. Um and so, um there's it's it's kind of a a fund that if we need something um and we can't do it in the general fund, we will try to see if we can
035do it out of a flex fund. But it h there's the state has certain criteria that it has to meet um to be able to pay out of there. But um so you know there's there's not a ton of money in that. But um but we've been doing a better job of spending our advanced opportunities money for a while. It was building up because we weren't there were so many requirements for advanced opportunities money. We weren't really exactly sure how to spend it. And then once we figured that out then I mean I can't I can't believe I'm saying that because I can spend money but um the requirements were and now it's like 7525 is Amy 7525 um 75% of the money to come in has to go directly to students and parents u
036for programs that we are charging for. So like if there's a class fee or something like that, we can we can pay for the parents thing if we are and that that was really difficult because we tried not to charge our families for extra fees as much as we could. And so it was really difficult right away until we we figured it out. And so now we uh we've done some pretty good really cool things with the advanced opportunities money. Um, some of the like if you look at the art show stuff, some of that like their posters and banners and business cards and things like that um have have been that's been utilized in there and there's other cool things that they've been doing. Um, other programs have been doing as well. So, >>
037okay, page 34 is our building fund. This isn't the same thing as the building reserve. Um the building fund is just kind of what we spend stuff for miscellaneous repairs. We're trying to build it up right now. Um some of the money that goes into there is like the custodians do a lot of recycling anymore and just different miscellaneous amounts that we get in for different stuff we put into that building fund. And then we can um once we get it built up, we can spend that money for different buildings maintenance things instead of having to constantly go to our building reserve fund for that. and then our building reserve. So, we have the $400,000 voting levy and then our police levy for our modulars as part of our building reserve fund. Um, so this
038last year some of our expenditures that came out of the building reserve was for the land purchase, the Highland Park land purchase. Um, we have a lot more expenses because of the sewer project at WMS last year. Uh, loan payments on the modulars comes out of that fund. So, we try to really keep track of everything on there because we have to remember that we have to keep so much in there twice a year to pay those interest payments on those modulars to get that that stuff taken care of. So, um, but that's where a lot of our right now our maintenance stuff is coming out of that. If we could get through a year without a sewer project, it would be awesome. >> I I tell Rat all the time. >> Yeah. The only
039time he comes to our office is when he wants more money. So, >> yeah. So, >> tell him that he'll send you a nice email. >> That's right. >> Yeah. It's It's tough. you you see money in there, but that money is not very much in terms of what we like when you're looking at three buildings and at any time any of them could have an emergency project. >> So, so we we do a we try really hard not to spend any money, but >> we can't like we don't have enough money in the general fund to pay for some of this stuff. So, this is really where all of our building stuff is happening and and it really still is not enough, especially with some of the money that has to come out for
040the modulars and different things that they were talking about. And so, it it's constantly a a work in progress. It's a lot better now than it was. Like, we used to have $200,000 coming instead of $400,000 coming in. Um, but if you remember with the modulars, you know, part of that payment, you know, part of that $400,000 is going to that plus the permissive levy that's there for building reserve. And so majority of that comes so it really does get us back to about $200,000 for a year for repairs in the three buildings. Besides that is really what it gets us back to >> and what we don't spend rolls over. So the, you know, if we can keep it the SP expenditure as low as possible, that will roll into next year and then
041add to that $400,000. So you know, the less we spend this year, the more we'll have to carry into next year, too. So >> So fortunately, we're still in break fix and we're going to be that way forever until we do something about it. But we're also in critical needs. So sometimes things break and we need to fix it, but it might not get fixed >> because we still have to manage that money. Um because we also know there's more things that's going to start breaking. So >> it take a lot more money to get out of the reactive to the proactive stage. >> That's exactly right. >> Um 38 is our extracurricular activities fund. So this is just elementary. This is not the high school fund. Um so this shows you, you know, where
042the fund balance is on there. Um mostly it's a middle school. We don't have a lot of stuff in the elementary for extracurricular. just a few things here and there, but um that's where our fund balance is for our extracurricular activities. It's pretty close to even with 24. So, there wasn't a whole lot of extra stuff spent on it this last year. And then the last few pages, let's kind of go through the detailed expenditures. And you can see a lot of our general fund is it's all teacher salaries, staff salaries. bond. Like Stephan said, about 90% of our general fund goes towards salaries. The rest of it pays for our utilities and just supplies and that's pretty much wipes it all out after that. So we don't have a lot of extra breathing room
043in there. I haven't calculated this year but one year a couple years ago it was 90 the elementary was 94% salaries and benefits of all our staff and then it was like another 2% I think almost 2% for utilities and so we were we were operating everything else of a little over 4% so um and it fluctuates every year right like we talked about before in the general fund depending on where people's salaries and stuff falls But um but that is that's that's been something that's been happening for years. This isn't anything new. Um you know with salaries and benefits becoming such a big um piece of everything. I mean it's not just us. This is this is everywhere. Costs are going up. We need to pay people more to keep them. So it's just
044something that we live with and have to understand that you know that's where we want. And one of the things I say all the time, you heard me say this last time in the budget meeting. uh the number one indicator of success in students is highly effective teachers or highly effective staff. And so sometimes we get like oh I wish we had more money here and that's true but really what affects a student is our staff you know you know are we you know recruiting and training and retaining highly effective people. That's that's really what it is and in order to do that you need to put money to that. So, you guys have any questions on the elementary side of it? You can look at the high school. Um, it's kind of pretty much
045the same thing. I'll just go through and highlight a few things that are a little bit different. Um, general common is basically the same thing. salary and supplies that go in there. >> Page 15 doing that. >> Yeah, sorry. 15 >> and page 15 just starts the details before that is just it's the same information just in table form just more high level. >> Yeah. >> Um page 19 is our transportation fund. Again, the elementary's transportation fund, like I said, because we figure only about 30% of our high school students um are on the bus routes and and using buses. It's more elementary. So, we separated out 7030 to the two. So, that high school is uses less of it. And then our bus depreciation kind of the same thing. We do have some funds
046left in there yet, too. So, we didn't levy anything extra for the buses this next year because we have money in the fund. So, we didn't think we needed to we lowered the levy on that. So, we wouldn't collect as much because we didn't need it for that fund. So, it saved our taxpayers some money in there. That's one of the things that we really try like we talked about this with the budget, but we really try hard to to minimize the effect overall of our levies, you know. So if we have to go up in one, we try to find another place to go down so it evens it out over all. And so I think that's that's something the district has done before I even got in in here. They really try hard
047to to u manage that manageable level. But again, like we talked about um all school funding comes from our our taxpayers. I mean, in a sense, you know, also comes from other people's taxpayers depend on if it's coming from the state or if it's from our local, but it's ultimately taxpayers. >> Um, page 22 is our tuition fund. >> Um, it's kind of the same thing as elementary. A lot of it goes towards our out of districts, anyone that's in group homes. Um the majority of our elementary is made up of like our incoming kids or outgoing kids because the kids go to Deer Creek um Lindsay or those places. The high school we don't have so much out of district because the high school district covers a larger area. So we don't have more
048as much money coming in either because those kids were the only high school in the county. So we don't get that from them. Um but basically it's the same thing. It pays for that and our 10 on our 101 aids which we don't have as many in the high school as elementary. So we don't need as much in that fund to cover all that stuff. >> This is a place we wish that we could pay more things out of. Um and so we try to maximize what they they allow us to. But um we're hoping that one day they open it up a little bit more with our special education because really it's just for tuitions, but they've opened it up for special education but only certain things. And so I would love for it
049to open up a little bit more because that's a huge need um not only in our district but everywhere. Um spent populations are increasing all over the country. So >> page 23 is the retirement fund. Again the same thing um that goes towards paying out for our teachers retirements. Um, same thing if we have paras or any of the you know staff retiring we have to pay in a certain portion to TRS or PERS for their retirement. So that's to help pay out that stuff if we have anybody. And again we just kind of look at who could potentially be retiring for the year is make sure we have enough money in there to cover any of those buyouts if we have to buy people out. Um this year it dropped back down. Last year
050they did the $10,000 buy well 8,000 2,000. This year it's back down to 6,500. So, um, if we do have teachers retiring this year, they won't get as much of a buyout as the ones last year did. Um, and then on to our fun, kind of the same thing as elementary. Um, we just sit and wait for the money to come in from the state and then so it might show a negative in there because we haven't received some of that funds yet. Um, we should be getting we got quite a bit of it a couple weeks ago, so we should be getting the rest of it here. And then that'll bring our balance on that fund back up to a positive, but there's nothing we can do about it until the state sends us
051the money. So, we just show it as money owing from other governments at the end of the year. So, it shows us money that we are owed, but we haven't received it yet. and and that won't ever change either because of how they um the timelines and everything that are on there and then how long it takes once we do get that done to >> and a lot of that money in that fund is from Kirkens and then the CTE funds we get from the state they designate for um there five different areas I think it's like agriculture um business they give us a certain amount of money each year that we can spend on those programs and each one's probably about $4,000 I think >> period. >> Yeah. >> Not all of them are
052that much but some are would probably average out. >> So that helps buy some supplies in like the >> we bought some textbooks last year. Yeah. We didn't have to general >> and and Perkins is one of the So the miscellaneous again is what stuff we have to apply for um usually. I mean, majority of them you have to apply for. Um, Perkins is one that Mrs. Re has to do a lot of work on. It's probably the the hardest one out of all of them in all honesty to do. They There's a lot of work that goes into that to try to get the money. Sometimes I I'm like, is it worth the money that we to do all the work that she does? But it is because it really does help our CTE
053kids. Um and uh but you can see that not not as much money comes through this as it does in the elementary. All of our high school like title and all that money from the feds goes through the elementary program. And so here you just have some of the ones very specific to high school. But the hardest one for you tonight. >> U page 28 or adult education fund. We really don't do anything with that. That would be like if I taught you, you know, my classes in the evening for computer stuff or whatever type of classes, but I don't even know when the last time was I did any type of adult ed. So, that money just kind of sits there year after year waiting for something to happen with it. >> Um, traffic
054education fund, we haven't done anything to that for several years either. So, it just kind of is sitting there growing. If at some point we ever have traffic education program again, all that money sitting there available to use for that. [Laughter] Uh the lease rental fund again that's our facility use. It's not as much um because this last year they didn't use the gym. I don't think they used it all from Aoska, did they? Because we had the sewer issues going on. So, we don't have that. We didn't have that rental income coming in like we would have. >> Yeah, we did negotiate it, but not anything else through the summer. >> Yeah. So, and you'll see it next year probably a little bit more because we didn't have Miss Montana here this summer because
055there was no water and stuff in the building. So, but that's what again that's the lease rentals when we lease the facilities out. That's what that money is coming in there. our compensated absence fund. So, that is what we would anticipate we'd have to pay out if somebody were to leave and we got to pay out their full benefits to them. Um, slowly trying to we were trying to put a little bit of money in there and build that fund up because you have to anticipate and that was one of our audit findings too, I think, wasn't it? >> Yeah, we talk about it every year. So, the amount that we would have to pay out is way more. There's there's no way we'll ever be able to. No, >> but it would be if
056every single person walked out the door the same day. >> Like it's just like this. I mean, I get it. I get what they're saying, but I'm also like it's impossible. >> So, we just we do our best and we're going to keep trying to grow it. >> Keep going. >> Um, our technology fund, it's kind of the same thing again. We just have that levy. Um, we don't want to change it at this point because we don't want to risk losing it. But at some point we'll have to take a look at that and decide what we need to do because the cost of our technology is just every year gets higher and higher. So we'll just have to figure that out and try and keep up with it the best we can. And
057then our flex fund again that's where kind of our miscellaneous where stuff goes in our oil and gas revenue and stuff goes in there. Um didn't change a whole lot from 24 to 25. >> Yeah. The majority of this one is the advanced opportunities. Yeah. Um, so the high school's a little bit different because we have the debt service fund. That's our bond fund. Um, so and you'll see when we get to the building fund, too. They merge them together on the trustees annual, but we keep them separate in our books so we can track stuff better. But the debt service fund is kind of where our interest is coming through. and we have our bond money um invested in a stip fund instead of just in the regular treasures account. That way it's just
058our money and it's not mingled with other people's like the colleges or any of the other schools in the district. It's specifically just our money that's in that fund and it keeps it cleaner for us and it's our interest and we don't have to share it with anybody else. So that's kind of what our um debt service fund is. And then that's where we also will pay out. Um you see on page 35 about halfway down that 310,000 and the 467 in the agent fees that 779 that's what we paid out last year for our bond for the principal and interest on those bonds and then the agents fees for that handling our bond and stuff. So that's where those monies go through is that debt service fund. And then our building fund. Again, this
059is not the same thing as our building reserve. This is just our building fund where we try and put money in there just to hold it safe for miscellaneous stuff. But the high school, we also have the bond money in there. So, you see it has the 6.9 million. That's what we still have left that we haven't expended yet. um that was at the end of of June, what we hadn't expended yet, but with the HVAC project moving the way it is, we've been paying out quite a bit more lately into that stuff, but >> it's been going down pretty quickly. >> Yeah, it goes up pretty quick when you get >> as you on my board report, if you look at the bond thing, you can see that we're like in the HVAC section,
060>> we update that every month for everyone. um were quite a bit negative. But if you remember, I think I put a note on there this time showing that, you know, we've kind of combined the Bay track and the electrical into one. And so eventually I'm going to I'm going to figure out how to do that in a way that makes sense to start showing that or I might just keep it. I don't know. But right now it looks like we're negative, which we kind of are, but we've combined those two areas. But we we knew that after doing the HVAC that it was going to take even more than what we had budgeted for HVAC and electrical. So, we're trying to figure out how still to pay for the rest when it's all said
061and done so that we can still try to get some of the other projects done. But that's why we've been kind of holding on some of the other projects because we've got to make sure that we have enough. And you know, ultimately it'd be nice to say, hey, this community, this is what we're going to do. And then we give them the exact same thing. Um, and if it wasn't for inflation and everything that happened with uh, you know, everything raising from when we went when we preliminary did everything, it was like what was it like one and a half years from the time we preliminary did it to when we got not even when we got the money when we got it finally approved that April. Um, it was just that's just that's crazy.
062>> And that one and a half years was absolutely >> it was crazy. >> Insane. That's not normal. >> So, we're still we're still trying to figure out how to >> I don't even know what you >> do. But, >> but that's what that document is. >> Stock up, I suppose. >> I Yeah, it's crazy. >> But everyone can look at that document anytime they want. It's on our uh website. It's on my board report every single month and they can see the progress each month as to what was done and what wasn't and there'll be a record there forever. >> Yeah. >> Great. Um, page 38 is our building reserve fund. Kind of the same thing as the elementary. Um, we have the the $400,000 in there. This one shows a lot more going
063out emergency project. Um, and then we also are going to have to start paying interest and principal on that loan. So, that will come out of this fund. Um, again, anything that doesn't get used at the end of the year rolls over to the next year. So, we had um like $53,000 at a roll over, but that'll be taken up for the payments on the loan for the sewer project. So, >> we will get another 400 into that. >> Yeah. >> But, um it goes back to what we were talking about before about um you think about the high school in this aspect of it, there's more there's more square footage in this building than there is in all of our other three buildings, all the elementary district. So there's a lot of building and
064so um that's one of the reasons why it used to be just $100,000 for the high school. We were like that is not enough with how big this building is. And so that's why we bumped it up to the 400,000 when we went to our community. But because of the sewer project, just like Jackie was saying, and other things that are are happening, um you know, we have we have to be careful with how we spend that money. Um, and so we're still in, you know, just like the elementary district break fix, but sometimes not being able to fix because, um, we make sure that there's money for the critical needs that end up coming up. >> Well, you just you can't spend it all because you don't know what's going to happen in January.
065>> So, you just kind of have to be really careful about what you spend at the beginning of year hoping you can get through to it's like holding your breath until April and then you're like, "Okay, almost there." Right? So, uh, the next one, page 39, is our high school extracurricular activities fund. Um, just kind of see it's not that much more than what the year before was. Um, >> and this one you get a monthly accounting every board meeting. So, this is one that you can every month you guys see the comingings and the goings of what's happening in that. >> Yeah. and all of their I mean they collect the money from their activities cards, their um their gate fees, all of that stuff all goes into that fund to help pay for
066all of their expenses out of there. So, and that also pays for our salaries for our coaches and um transportation cost and all of that comes out of that fund. >> But not all cost sex recurriculars come out of that. A big chunk still comes out of >> our general fund. So, it's just it's really important to note that because um to like a lot of people get frustrated with fundraisers and things like that. There's just there's no way that we can do our extracurricular justice um with what we have. We do our best, but it is is getting harder and harder because of you think about going back to the salaries and benefits and having x amount. And so so we we still have a good plan in place to try to um to
067help with that. And it is it was we saw a really good um really good year this year in the fact of some of the the the things that we've been doing um has been really leveling out. But we're hoping that in the next couple years we're going to get back to a place where um we're not super struggling all the time with some of the things. And I just want to point out on page 40, if you look at your 2024 values and your 25 values, like the teacher salaries and stuff, you'll see that there's quite a bit of difference. Um, that again is part of us moving stuff around and getting people coded correctly so their salaries are coming out of the correct funds and it's not all coming out of the because
068before it was kind of coming out of the same place so it evens out in the end. Um, and then your major construction services that is your bond projects. So that's what the huge difference is there in that. So that's what that big jump was. But so yeah, when you see the difference between 24 and 25, we really worked hard in the business office to get everything fixed to code it to where it needs to come out of and stuff. So hopefully in the next year or two it'll start to be back where it should be. So and that's the high school. questions do you guys have for Jackie for or this Well, if there's no questions, we can uh I think we've had a motion in a second for this. Sorry, it took me
069a while. I zoomed I zoomed out and I couldn't figure out how to find my microphone button. So, >> and I don't know if you have to approve this one. It's just, you know, your trusty's annual, but you absolutely could. It's more of just a report than anything else. This is what's happened. There's nothing to be changed. So, >> that's true. It's up to you guys. >> I think it's just more information >> you can you can not approve it. It doesn't change anything. >> Yeah. Okay. Well, uh, that we can move on to action item C, resolution to declare property undesirable and intente to dispose. >> Yeah. So, um when we got approached, um for this land, um you know, there was a couple things that, you know, was part of that and one
070of them was trying to get a agreement um with the Mahers um to um I don't know straighten out the um property line and so to do a lot line adjustment. So, in our options agreement and our um purchase uh agreement um that was kind of set at approximately 2.21 8 acres total for them. It ended up being about 83 acres of our um I don't know 39 point something. I can't remember how much it was when when we got it but um to try to do that. So, we've gone through the process. It's taken us quite a long time just because trying to figure things out, trying to make sure that we are dotting our eyes and crossing our tees. Um lots of conversations with multiple lawyers um different entities just to make sure
071that we are doing this correctly. we were able to finally figure out what this needed what needed to happen and that is this process um to declare undesirable this83 acres which then um allows for us to make good on what we had talked about in the options agreement and the purchase agreement um with the mahers and uh and and kind of move forward. So you can see the resolution um you know there is basically what you guys would be um you know approving is that resolution to declare that um there's certain things that we have to do as a district um for very similar to obsolete um items whenever sometimes when we do an obsolete item um you guys approve it in the consent agenda but there's a process that we have to do on
072the back end of it every single time. And so that same process is is done with um this land. And then once the certain amount of days, there's 14 days um end um then and then then the district can do um basically what you will, but what we what we said in this resolution is you guys are declaring what you are going to do with it, which is going to be um to sell that land. 83 acres to the mahers um and for the same price that we purchased it for. That's been kind of the um thing since day one. And so what questions do you guys have on this? We also put your the public notice so you could see that. Um I thought that was good. And then um because of the situation
073where that is um Jamaher wrote a letter just showing the board and and everyone else that if if there you know we weren't exactly sure where the pivot that's on there now was to go just in case there was overlap that he would allow for that pivot to continue to operate as long as the current le is is there. So what questions do you guys have? So, this was all I mean and I'm just I know the answer to this, but this was all laid out in our original purchase agreement >> in the options agreement and the purchase agreement. Yeah. And so, we follow the legal process. You checked with >> MCA code. You checked with our lawyers. Everything's all kosher on it. >> Yep. We checked with the county. So, after this basically has
074to be >> is it'll go to um the county planner and then he there's a process that they have to do um to make this thing go. I think there's two different ways that they can go about doing it. They got to decide what they're going to end up doing, but um but they're after talking to them, they did not see any issues with us um going through this process. So, >> yeah. So moved. >> Second you, Mike. >> Oh, it was moved and seconded. >> Yep. pretty fast. >> Oh, I didn't hear that. Sorry. >> I had >> moved. And then who is the second? >> Alex. >> Oh, okay. Uh, yeah. Sorry. It's been moved and seconded. Is there any public comment for this? If not, uh, any more discussion? Uh, okay. All
075in favor say I. Hold on. Hold on, Mike. Sound like Josh was gonna say something. >> Oh, okay. Sorry. Go ahead. Yeah, my mic was muted, I guess, when I was talking. Um, this that was a desire of the original owner that this uh this amount land goes. >> Yeah. So, yeah, correct. When we talked with them, they were already having conversations with them about it, and that was something that uh we did. We we wrote it in there in the options agreement and the purchase agreement to uh protect protect the district just in case you guys decided to say no. Um but but that that was um that was what we had talked about in the beginning. So we wrote it into the options agreement first. Then it went to the voters. Now that
076piece wasn't in the voters um you know but it was at public board meetings um that that was there. the documents were there. Um, and then in the purchase and sell agreement, it was also in there. So, >> and it's been zoned. We've had it zoned to the 383 acres. >> So, not zoned, I don't think. Um, >> a lot adjustments. Yeah. The pictures that I think the Do we have the picture on? >> Yeah. Okay. >> That was the last thing I was waiting for and I'm like, did we put it in there? Um but that yes that picture is what the 083 acres would end up being. So you can see the actual uh the new line >> um there which comes out to be that. So once this is approved that will
077be one of the steps is to get that finalized and go through the steps there. >> Right. >> And then the zoning and lot adjustment stuff is handled by the county. >> Correct. >> Anything else I missed? >> No. I mean, yeah, it's yeah, pretty all straightforward at that point. >> All right. >> One thing to note, too, um on this since this is all elementary and I've already notified Jay and Josh, but um they won't be able to vote on this because they're on in the high school district. So, just for the next two action items since they're in they're in the high school district and this is all elementary. Not very many things that we do all just all elementary, but this is one of them. >> All right. Uh yeah, any more
078questions or comment? If not, all in favor say I. >> I. >> Any opposed? Motion motion carries. That takes us to action item D, resolution to solicit bids for the lease of a agricultural land. >> Yeah. So, uh the other um piece to this when um we were purchasing the land was um there was a current lease on the land um that was there and um so when we went through the options agreement, the purchase um we did not go out for bids um for that. We just made a lease agreement um with uh Scott Bulwit who was the current lease and um and we just tried to move forward as quickly as we could. I'd been approached um by multiple board members to ask to draw up um solicit like to solicit bids um
079to go for that since we've had some time now um and to go out and you if you look at the resolution um there's there's a resolution that's there's quite a bit of information on we we put the bid form on there the invitation to bid that will go out uh we even put a sample lease agreement um there so people, you know, could see that what that would look like. Um then then legal also had us um originally I thought it would be good just to go out for bid and and then depending on who gets the bid, then we would um terminate the current lease if it was someone else that ended up getting the bid. But legal um wanted us to do a termination letter right away um to make sure that
080we met timelines that was in our current lease. And so you'll see in the resolution um and in the termination letter uh us encouraging the current lease to put him for bid if he so chooses. And so um but you can see all the different things that you guys will be um you know approving basically if you guys so deem to go this route. >> What's the length of that that lease? What would that be? >> Um it probably just be a year like we would at this this juncture is what I would suggest but you guys I mean you guys could do something different. you you're suggesting to reopen it every year. >> Um, possibly either that or just to renew it with the person who bids. I don't know if you want to
081go through a formal bid process, but it's it's kind of like our put in terms of this too, but um it's kind of, you know, every year you guys are approving our employees. >> Like we only give them a year employment unless they're tenured. There's only certain people in our district that get tenured um past that. And so you have to renew them every single year. To me, it'd be similar to that to where um to protect the district just to make sure that it is what the district deems necessary. I mean, we didn't to me, I don't think there's anybody in this room that got into this to be a a person who's going to be leasing land. That's not the reason why we purchased this land. that land is there to eventually one
082day um do something for our our students and our staff um for that. But in the meantime, having someone on there to lease that land to take care of it um while this happens, it it makes total sense um to be able to do that. So, um but but that can be what you guys deem necessary as to I mean, you could make it a three-year lease if you want to. It depends on what you guys want to do. But basically what we would do is just like the process says we'd go out for bid. Um there's a date I can't remember what the date is on there. >> I think it's like it's like uh October or something, right? >> Um that we would open the bids and then um and then move forward
083that way. So see a date >> the uh it was my understanding that >> it was also wishes of the previous owner that uh the current leasey be allowed to lease that until other actions were taken with the land was with the Mars. Is that not the case here? So, I I called them um and they said that they um there there was they said it's our our stuff. You guys can do what you want with it. That's that's what the phone >> actually originally the the first uh let's say buy sale that we received from them actually had the current owner having to remove the pivot and be gone in 30 days. at conclusion and we didn't think that was right. I mean why why just move a pivot before you know we figured
084that made no sense. So it was actually us that kept the current uh EC here till now. >> That's correct. >> Is so just to give uh clarity to that. So they they actually were the ones that gave the first document to us and then that that's what Mike was saying and we adjusted that was one of our counters back >> there there was no intention of of keeping the current leasey on the owners you mean >> in the when we bought the land like like we did with the mahers there was >> yeah no there wasn't any there wasn't any documents or anything like that that um had that in there about the currently seeing not like in the um the 83 acres to get them to 2.21 that would those two items were
085in the options agreement and the um buy. >> Is there a benefit financially for us receiving more money if it's a longer term release lease? ask a farmer. >> I think there's a balance. I think there's a there's a balance to be struck, you know, depending on when we're able to >> we're able to get something actionable done where we actually want to use that land for something. Um >> Well, there's there's that clause to put in there with the with the reasonable notice, right? >> Yeah. Yeah. So, there's that 30 days. Um >> I mean, maybe you'd want to lengthen that. Do we do we have to have a motion on the table to have a system? >> I think you could could I don't know. Is it up to Mike? I mean, sometimes
086we've been talking before you have a motion. >> Yeah, that's what we've been doing it. We checked with legal that Yeah, the way we've been doing it is fine. We don't need a motion. We're not pure rules of robbery. We're kind of hybrid. >> Just making sure. >> Um, yeah, there's a benefit financially as long as it's a we can give someone a war, you know, a fair enough warning. I mean, even the point comes where we do do something with the land, it's not going to happen overnight. >> I mean, you still got a year. >> Well, I mean, >> you know, so you're >> even if we had an approved bond, just a time frame. >> Yes. Absolutely. And we know how long that takes. >> Yeah. I mean, and then design something
087and construct it is probably well enough time for somebody to adjust. >> Yeah. And 30 days. If we make it a longer term, will we in in return probably get more money? I mean, is it it makes it more valuable to >> I think the price per acre is going to remain this the value of the land's going to remain the same for the lease whether it's a year lease or unless there was infrastructure put into it, but there's not going to be any of that. >> Well, there's crop rotation and stuff like that that takes effect, too. >> I see value in >> long term. Yeah. Yeah, I mean a state state lands are 10 years when he lease from them um before it goes up for public bid again. And so I think
088that's too long for our situation. >> Um so kind of in the interest of entertaining the idea, a two to fiveyear lease would give somebody longevity. So, the other thing to think about >> is, you know, um, and I don't know what this looks like, just to throw this into there, though, is the purpose of the land that we have is not to lease, >> is to hopefully put something on. And I would hate to have a lease. >> Well, you you would have to write the lease agreement where there's a clause in there for that. I mean, ultimately, you would have to have >> as long as that I I think anything we do, we that clause is in whatever we do. But we also we're in we find ourselves in this situation. So
089we're it's in our best interest to do what we can to make it make the best opportunity for ourselves. Right. >> Yeah. >> So >> I think there's a balance to be struck between um I'm just kind of just talking here so it could be crap ideas but the there could be a balance to be struck like as far as having a program on that land. >> Yes. And that's what I'm looking at is like I think that increases the value. So then that somebody could be interested in in like a two to three year lease. Five years >> I really hope that we don't have this conversation in five years. So that's probably too long. Um is there any value in having somebody shorter term where someone gets another chance to bid? Um, so
090for like four years out, is it two two-year terms or just have a maybe a a minimum of a two-year lease or something like that, provided the tenant is or the leie is that's, you know, takes care of the land or whatnot. >> So, I don't know. I see value in a two to three is kind of where >> I I to the three. I think >> is that something we would want to agree to now or is it is a clause we could write >> um maybe the people who submit a bid submit a a dollar amount and a preferred number of years to lease it. Maybe they only want it for >> long. >> That makes sense to me. >> That we can leave it up leave it up to the bid biders.
091>> Absolutely. >> Yeah, I think that's the best idea. I like it. >> I guess I'll still move. >> Second. >> Okay. >> Do I need to clarify that motion? Are you guys good? >> Well, I think I think you guys recorded >> and then it just was um you basically just said that it would be up to the lease to determine if they wanted a longer term or not. >> Yeah. And so we could either >> Yeah. So I guess I I have some conflicting. Um, so we could either have it as something that is submitted along with the bid as a or it could be just something that they negotiate once we choose the if it's if the bidding is just by amount then it's something that the winning bidder can negotiate with
092us as a part of the >> Yeah. And there's and I've just been looking through it. I don't think there's anything in the documents that we have that even says anything about terms. >> Okay. That's that's I want to make sure that that wasn't in the motion >> part of the negotiate. So basically, but but it it can be part of the motion as to um what you know because we're the ones that do do a lot of the leg work. So it would be that would be kind of a this is the board would like us to look for if they want a longer not just a one year, right? I mean that's what I heard. >> Should we put a cap on the end though? >> Like no no longer no longer than
093three. >> I think anybody that is going to bid on this is going to understand the situation. and the bids will represent that. >> Yeah, I think that it's something that they they can negotiate with us for term. Um, so I guess I guess my motion >> term's negotiable. >> Yeah. >> So now I'm going to now I'm going to ask Mike. >> Yeah. Because I think I'm modifying my motion which is >> because it is a hybrid, you know, how we do things. But I mean to me your motion was so moved was what we had. >> Yeah. >> Correct. >> I guess. Yeah. So I would try to offer some clarification >> because you guys kind of went in the circle and then and then you were like okay that's fine. That motion
094down. >> So there really wasn't anything about terms. We didn't really put anything in. So >> I mean right now you to me you have a motion on the table to accept what is there. >> Yeah. I mean, >> Yeah. I I think if we pass what's there, uh, what we're talking about isn't specified. So, you know, the direction of the board by our conversations to where I I think the the motion I think we can pass it as it is and then leave it to admin to uh >> Well, number four says this. Number four says this. The board affirms that the lease agreement template has been reviewed and approved in form and authorized the superintendent and board chair to complete the final lease agreement with the selected bidder including ins insertion of the
095lease's name, bid amount and effective date and I think you know that would also include you know the term >> as well Mike and me >> finalizing doing that negotiation process I Yeah. >> Okay. And then >> part of covers that part. >> Will this have to be passed by the board as well once we find again once somebody bids? Will the board will it require board approval? >> Um there was um let me see. It be finally resolved that this resolution shall take effect immediately upon passage and shall guide all actions related to the solicitation, selection of finalization of a new lease agreement for the subject property. Um I thought there was something in here um that stated it. Hold on. I'm looking. I've read this a ton of times, but I don't have
096it memorized. >> It's harder when someone else writes it. Legal wrote this, so When I read it, it didn't look like that. It looked like it once it was approved here, then it was up to you and Mike. >> That's that's I think that's number four. >> That's what I just read. >> Yeah. >> Then we would go into negotiations with that. >> And that would be Yeah, that's when I read it. That's what I got out of it. up. I've screwed up before >> that one time. >> Well, I think you know with our understanding that you know uh we would like to keep it around three three or less 34 or less. Uh, I would say we can pass this resolution if that's if that's that was the intent will of the board
097and we now know the will of the board. I'd say we can we don't have to necessarily put it in writing uh because it we can put it in action uh between Stephan and myself. >> And that current form leaves that option for you >> because it's not specified. Yeah. >> Uh, so I guess there was a motion and a second. Are we I guess we don't need another motion in a second. I guess. Are we all any more questions or >> I guess >> there's an entertainment. Did the board have a question? >> Yeah. Is there do we need to talk about it more or are we ready to vote? >> I'll just make sure. Yeah. Well, you have to do public comment still. >> Oh, yeah. Yeah. Is there any public comment for
098this? >> Lots. >> So, Scott would like to talk. So, you might want to just state your name and >> My name is Scott Bwood. Um, I've had the lease on this property since 2008, for almost 20 years. So, there's going to be a lot of history here. Um, way more than the school board has had with the property. But um first of all to the idea of the uh public bid that conversation was brought up amongst the Scapens family, myself and Redcoon even before the final purchase was made. The Scapens's family conveyed to me their intent that as long as I maintain a marketable lease with the property that their intent was that until a school is actually built or funded that they care to have me maintain the lease on the property. a
099pro a uh another supporting evidence of this is and I don't know I haven't heard any discussion about this with the board in regards to um the previous resolution with the uh um the egg covenant that the scapens family put on the property. They literally surveyed that property for that egg covenant around the pivot that I had already on that property at the time that the the school board purchased the property. So they had every intent of that property staying in agricultural production and for me to maintain agricultural production until a school is put into process. All this there is probably some of it that is uh gonna be hearsay. I can probably find some proof in some of it too just because some of it was text that I could probably go back on.
100Some of it was conversation that probably wasn't recorded. Uh problem is is I really find an issue with the fact that you've the board here has had the time to have legal draw up a process for a public bid process and all this stuff that was told that wasn't needed when I when uh I was given the initial lease on the property and now all of a sudden I was only given notice on Friday night that there was a resolution going before the board that on Monday and there's a the possibility of my lease of down there 20 years now is gonna be gone in a matter of two days. I I find a lot of issue with that. Um and I guess I have a question for you Stephan when you say you contacted
101the Scapens family and received notice from them that they say it's your property do with do with it what you want. When was that conversation? last couple weeks >> because I had a I have a text message if I need to go out to my vehicle and get it. I actually have a text message from the Scapens family that says that they were never given notice that the school board is looking to go out to public bid. And so for somebody to say that they were given permission by the SC not permission but given the consent of the Scapens family to go out for public bid. Uh I I think I probably could provide some uh some information to the contrary on that. Um, in response to I I I do or uh have good
102uh thoughts on the conversation here, especially when you guys are asking about long-term security and long-term plan on the property. Um, I am the only one on the property that or only one that owns the pivot that is on that property. That is infrastructure that as long as I maintain the lease, it stays on it. It gives me reason to treat that property fairly and it gives me reason to give you guys a marketable lease. I was not given any notice as far as uh the reason why the the marketable um value of the lease that I am giving is is being questioned. If you guys want to do a study as far as is my uh lease totally undervalued because I I I was given uh instructions by Mr. to provide an offer of
103a fair lease. I just because of the fact like I say I have not had the time to have the conversations with the area producers that uh I've talked to and I consulted with when it comes to what a fair value of the lease is. it comes out to um just out of I mean I'll I'll rattle off some numbers here just to put some uh meat to the bone here, but if the property if the school board owned the uh the pivot that is on the property and is leasing it out, $200 an acre is a fair uh lease. uh flood irrigated ground if the owners own all the infrastructure to flood irrigate it properly $150. problem is is the property has been sold off of all the gated pipe to irrigate the property
104flood irrigated and so without the pivot that I own that pro that property cannot be irrigated unless the other producer is going to bring their own gated pipe or some other or invest in the infrastructure of a pivot like I am which I cannot see a reasonable uh lease doing on a one-year lease or even a two or threeear lease. I've had this pivot in place since 2018. So, I have trouble believing that on any future lease that you guys are going to give that anybody's going to put the investment that I have put into the property and have the reason to uh invest themselves in that property. So I do not find it responsible of of the board to basically throw damn near two years of infrastructure and investment into that property away over
105the idea that you might make a little bit extra money on a public bid that I was already informed was not needed. And so, uh, I, um, I don't, like I said, I was given awful short notice here to put up any kind of a an argument against this. Um, but I given proper time, I would uh reason have reasonable belief that I could find some legal counsel that would uh back me and uh be looking to uh have a have a word with you guys as a board as to why you guys terminated a lease. And I mean if you guys does anybody here have the lease? Can we put the lease up there with the information that states that I am allowed to continue the annual lease as long as uh I I
106maintain a a respectful relationship with the school board in such terms. I guess um I guess if you guys are looking to terminate a lease, I'd hope at least brought it to the board. And another thing is my copy of it is I maintain it in a safety deposit box, which given the short notice I have and with prior commitments I had for today, I was not able to go to that safety deposit box to grab that lease myself, but I'd hope you guys have a copy of that signed lease. >> Mike, I'm going to put it up. >> Okay. >> So, I'll I'll just read it. This lease agreement is entered into as of December 20th, 2024 by and between Glenn Public Schools leaser and Scott Bullet lease lease property. Leer lease agrees to
107lease to the lease approximately 27.5 acres of agriculture land referred to herein as the lease property situated within the newly acquired land located in section blah blah blah. Um term of the lease initial term the term of this lease will begin on December 20th, 2024 and end on December 19th, 2025. Renewal the lease will automatically renewal renew for successive one-year terms unless either party provides written notice of nonrenewal at least 30 days prior to the end of the current term. uh payment. The lease agrees to pay the less over uh 3450 annually with payment due no later than December 20th. Initial term payment is due on December 20th, but the lease shall have a 30-day grace period to make the payment provided is received no later than January 19th. For any subsequent renewal terms, a
108payment must be made by December 20th of the corresponding year without a grace period. Use of property. The lease shall use the property exclusively for agriculture purposes. Any non-aggriculture use must be provided in writing by the lassor lease property rights. The lease is granted the right to maintain personal property on the lease uh premises provided such property does not interfere with the lease's reasonable use and enjoyment of the premises. The lease agrees that personal property stored on the premises will not be ex excessive, hazardous, or in violation of local ordinances. Excessive personal property shall be defined as items that occupy an unreasonable amount of space, impedes access to necessary facilities or areas of the premises, or create an unsightly, unsafe or unclean environment. Um, the lease retains a right to request removal or relocation of
109any personal property deemed excessive or obstructive with such requests to be addressed within a reasonable time frame. The lease may install or have installed a pivot irrigation system and fencing on the lease premises as deemed necessary by the lease provided such installations do not unreasonably interfere with the lease sor's use and enjoyment of the premises. In the event that the this lease is terminated or this lease is terminated or not renewed, the lease C shall have a period of 30 days from the termination or non-renewal date to remove all personal property including but not limited to the pivot irrigation system and fencing. If additional time is needed due to unforeseen circumstances, the lease may request an extension which shall not be unreasonably denied by the lesser termination. Either party may terminate the lease at the
110end of the current term by providing at least 30 days written notice. In the event the lease or decides to terminate the lease, the lease shall have the rights outlined in section 5 regarding the removal of personal property. Modifications and assignments. This agreement may not be modified or assigned without written consents by both parties. Leans. The le agrees that they shall not permit or cause any leans including but not limited to mechanics. uh material men's or other claims to be filed fulfilled or imposed against the lease property as a result of any work activity or obligations undertaken by the lease. In the event a lean is filed, the lease shall take immediate action at their sole expense to discharge or bond over such lean within 90 days of notice. The lease further agrees to identify
111and hold the lease harmless for any cost, damages or liabilities arising from any leans associated with the lease's actions or inactions. Uh right of access the lease agrees to grant the leaseor or the lease's author authorized agents or representatives responsible access to the lease property for purposes of inspection, maintenance, planning or other necessary activities related to the property. Authorized school personnel may access the property without prior notice for inspections or planning purposes. Contractors or other third parties hired by the leaseor may access the property for purposes such as yield technical soil sample sampling land surveying or other related activities provide the lease is given reasonable notice in advance. The lease is authorized to restrict access to the lease property by the general public and may deny entry to individuals not explicitly authorized by the lease
112or lease except as required by law. Any disputes or challenges regarding access should be promptly communicated to the lease. uh limitation of liability. The lease or shall not be liable for any injury, damage or loss of lease to the lease. Lease's personal property or any occupants, guests or entities on the lease property except to the extent such injury damage or loss is caused by the gross negligence or willful misconduct of lease such as failure to address known hazards or deliberate property damage. The lease assumes all risks associated with their use of the property and agrees to identify and hold the lease or harmless from any claims, liabilities, or expenses arising from the lease's use, occupancy, or actions on the lease premise. Says the lease shall not be liable for interruptions in utility service, acts of
113nature, vandalism, or other circumstances beyond the leaseor's reasonable control. The lease agrees that the lease's total liability under the lease shall not exceed the total rent paid by the lease for the annual lease term. And then there's the signatures. Basically the same thing with little modifications. Um same lease that was that you're looking at moving forward if you go forward with this. So I guess um what I I just I'm the biggest part of that was the initial part where you read that I was and unless I provided a reason why I cannot maintain an annual renewal. I I I have a lot of heartache wondering why I'm being muted. >> Mike, can I speak? >> Yeah, go ahead. Frank, >> well, it said at the beginning of the lease. You want to scroll back
114up to that if you can, Steph initial term right there. And then right there, renewal, unless either party provides written or not, it's a non-renewal. So that negates that part of the argument. And in your own statements, you said that I mean market value is 200 bucks. Right now it's at what 126. So, I mean, >> $200 was if the if the school board owned the pivot and was uh and was leasing the lee, the pivot and everything. I own the pivot, the school board. >> So, well, and and and in interest of that, I mean, if your lease is a good market value and you have in uh in invested infrastructure on the property, then we look forward to seeing your bid. >> Problem. It should be it should be you should be have
115no problem being very competitive. I mean we're sitting here we have all these problems with our schools. How is it not in the best interest for us to do whatever is best financially for us >> because who said that the the the bid process is going to be competitive? Somebody could have it have some and that's brings up another point. I'd like to know what program or if there's some information that the school board has that thinks that the the actual value of this property is uh that much more. >> Is it not is it not in our b best interest to explore that option? >> Like I said, if you want to do a study with uh credible producers in the area to see if that lease is credible, fine. But don't throw me
116out to a bunch of people that maybe think a community garden that wants to come in and do it and is gonna be able to I mean put 20 years worth of uh work into the property on a one-year notice. I've got I'm the one that has the investment into the property. Nobody else does. >> And and and that's a business business decision on your end, but I also look at this as a business decision on our end. The way I see this, if we get $3,500 for it, it's a win for the district. And so, nothing personal. I get your your view on this, okay? But our view is is we have to do what is best for our taxpayers and our school district. And putting this out to bid is I I don't
117see another option. I think it was great. It worked out. You haven't invested interest in it, but that's a decision you made when you're releasing property. That's a risk you take in that situation. No, I apologize that it works out this way, but I don't see how from a business standpoint, we could choose to do anything else. I mean, what's the >> there's no there's nothing we can confirm there's nothing in the original purchase agreement that extends the lease and that's proven by Scott signature on this lease, >> right? Because all this was stated out in this lease. I mean, I'm reading this lease, this right here. Otherwise, there'd be adjustments on this. I if I was in your situation and I had that interest and that investment in that property, I probably wouldn't have
118signed this. I would have had something done before this. I mean, just looking at this, I could see like, hey, you know, I guess from my start, I would say, hey, for $126 an acre, I'm getting a heck of a deal. >> But here we are. So, I mean, if we get $200 an acre, I think it's another two grand a year for us. We're we're obligated to just move forward with putting it out for a bid and if we don't get more, we don't. But I mean, and you're welcome to bid on it. >> Well, like Stephan even said, it's like it's the whole purpose is not to have a have a lease property as a business entity. The property, the purpose of the property is to maintain the property until a school can
119be built on it. But in this situation, we have to make the best of >> I think uh I think our positions are clear. >> Uh board meetings aren't designed for a back and forth kind of kind of let it let it play out a bit, you know, but I think I think I don't I don't think there's going to be anything new given from us nor from Scott. Uh so Scott, if you'd like to make a say a concise uh quick say twominut uh com public comment which is kind of the intent and design. Uh feel free and then I think we'll progress. >> That's what I just spent the last 10 minutes or however many minutes here it's been doing is stating my case. Why do we need to restate it here? And
120that's all recorded, isn't it? >> Oh, yeah. Yeah, everything's recorded. Okay. So, uh, public com >> public comment has been made. Uh, we have a motion and a second or do we need more? >> You just need to go back to your board members and see if they have any questions or discussions. >> That's correct. We did have a motion in a second. Uh does anybody else have any comments or sorry uh discussion? If not, all in favor? >> Mike, you want to might want to ask if anybody else has public comments? >> Okay. Anybody else have public comment? >> Okay. If not, >> sorry, what's that? I just want to make sure everything was kosher and say they didn't get a chance to speak. >> Yep. All right. Uh so yeah, no more public
121comment. No more board discussion. All in favor say I. >> I. I. >> Any any oppose? >> Motion carries. Uh takes us back to one sec, I lost my agenda. Uh yeah, that takes us to no action other upcoming no upcoming events. Uh Vulker and Wagaser, do we have anything for that? >> We do. We have two of them and it will be in close. I'm sorry. with. >> Okay. So, >> I like him. >> We'll go to close session for Vulker and Megas that came by. Thanks. Thanks for coming. >> So, just hoping to eat dinner before 10:00. Sorry. I apologize. >> Apologize. >> All right, Mike. I am >> shutting off the um camera right now. Give me a second. We still have lots of people leaving. I think we can see him,
122but >> this conference will now be recorded. >> All right. Uh we're back in open session on the first Vulker and Waggas. Do we have a motion and a second? >> Motion to approve. >> I'll second. >> Okay, it's been mo motion and seconded. Any further discussion or comments? If not, all in favor say I. >> I. >> Any opposed? >> Motion carries. That takes us to the second. Vulker and Waser, do we have a motion and a second? >> I'll make the motion to approve. I'll second. >> It's been moved and seconded. Any further comments or discussion? If not, all in favor say I. >> I. >> Any opposed? Motion carries. And guess with that, uh, adjourn the meeting. Thanks everybody. >> Thank you. >> Thanks.