McAllen ISD Regular Board Meeting (June 23, 2026)

001A regular meeting of the board of trustees of the Macallen Independent School District will be held Tuesday, June 23rd, 2026, beginning at 5:30 p.m. in the Dr. Dardo Chapa boardroom of the administration building of the Macallen Independent School District, 2000 North 23rd Street, Macallen, Texas 78501. Items listed on this agenda may be taken in an order other than is shown on this agenda unless removed from the consent agenda. Items identified within the consent agenda will be acted on at one time. At this meeting, there may be discussion and action by the board on the items and subjects listed as follows. Number one, call the meeting to order. I've done so at 5:31 p.m. Item number two, a moment of silence. Thank you. Item number three, the pledge of allegiance. >> I pledge algiance to the

002flag of the United States of America and to the flag for it stands for one nation indivisible with liberty and justice for all. >> Number four, public comments. >> I pledge Here are the public comment procedures. >> We're just having trouble with the volume. >> Here are the public comment procedures. Number one, individuals who wish to participate during the portion of the meeting designated for public comment shall sign up at mcllenisd.org at least one hour prior to the start of the scheduled meeting. Number two, an individual's comments to the board shall here are the public comment procedures. Number one, individuals who wish to participate during the portion of the meeting designated for public comment shall sign up at mckllenisd.org at least one hour prior to the start of the scheduled meeting. Number two, an individual's

003comments to the board shall not exceed two minutes per meeting. Number three, the board shall not tolerate disruption of the meeting by members of the audience. Thank you. Mallist. And with that, we will welcome the first speaker tonight, Fran Siller. Uh, good evening. My name is France Siller and I'm I'm here tonight representing a group of parents and student athletes involved in the Nikiro cross country program. First, we want to express our appreciation for the district's commitment to athletics uh student development and academic excellence. We understand that leadership decisions are complex and that district policies and procedures exist for important reasons. However, many parents and athletes have concerns regarding recent changes within the cross-country program and the manner in which those decisions were communicated and implemented. Families have attempted to follow the appropriate channels to

004seek clarification and understanding. While those opportunities have been appreciated, many questions remain unanswered, leaving parents and student athletes with concerns about transparency, consistency, and whether established processes were followed in a manner that prioritize the well-being of students. Our concerns are based primarily on the impact that decisions have had on students morale, team stability, athlete uh preparation, and confidence within the program. For many students, athletics provide not only competition but also mentorship, structure, discipline, and personal growth. We respectfully ask the board and the district leadership to carefully review whether the district procedures and personnel protocols were properly followed, whether all parties were giving fair and appropriate consideration, and whether the best interest of the student athletes were prioritized throughout the process. Families were also disappointed during the recent end of season banquet where the contributions and

005recognitions of those coaches were omitted from the award certificates and attendance. Though those athletes and parents um they felt dismissive with the dedication, accomplishments and leadership that helped build the program. We are not here to com uh create conflict or assign blame. We are here to respectfully advocate for transparency, accountability, and consistent adherence to district policy and process. Most importantly, we ask that the voices and experiences of the students um athletes remain at the center of these discussions as they um are individuals mostly impacted. Thank you. >> Thank you, Miss Siller. Our next speaker is Hershel Patel. Oh boy. All right. Um good evening. Uh Hershel Patel, dad of three Mallist Princesses. Um there's not much I can say anymore that you wouldn't expect me to say. Um today I want to address every stakeholder,

006trustees, admins, every parent, every teacher, every member of the CNP team, every student. Good nutrition starts at home. But at school, ironically, there's a deeducation of nutrition that occurs because grown adults are handing our kids a bunch of junk food. Anyone who tells you that the chicken pancake bites, the chicken sandwiches, the chicken tenders, and even the hash browns are not battered in fried products are lying to you. Anyone who says that federal guidelines require the district to purchase Lucky Charms and hot dogs is lying to you. Anyone who says that silent lunches aren't happening or that fruit juice is a government requirement is lying to you. Moving fruit removing fruit juice from the menu caused a 4% drop in participation alone. Never mind the four other sugary items that were dropped at the same

007time. There were 40 other distinct items served at breakfast in April. When juice was removed, teachers had to bring sliced bread to school to keep kids from going hungry. Our children chose plain sliced bread over 40 other items because there was no fruit juice. What does that tell you about kids' preferences? What does that tell you about a menu that relies entirely on sugar to drive participation? According to the real data that I was able to compile, savory breakfast items, entre outperform every other sweet item on participation rates. And yet, sweet items are offered twice as often. There's a big problem with the food, but there is a really good foundation for improving the food. I just feel like we're refusing to acknowledge either of those facts. I'm not the one that's supposed to be

008telling you all this. Thank you for your time. >> Thank you, Mr. Patel. And lastly, we have George Rice. >> Oh, he's not here. >> Okay. I don't believe Mr. Rice is here. So, that will conclude our public comment. Um, we will now move to item number five, public hearing to discuss the 2026 2027 budget and proposed 2026 tax rate. >> Dr. Luth. >> Yes, we welcome a public hearing. In this hearing, we will be discussing the fiscal year of 2026 2027 budget and propose a 2025 tax rate with Lorena Garcia, deputy superintendent for business and operations. Uh, we'll proceed with a presentation. Go ahead, Miss Barcia. >> Uh, thank you. Uh good evening uh President Regalado, members of the board, and Dr. Gutierrez. Uh before I uh begin, I would like to again express

009my appreciation for your support, our appreciation uh for your support, uh as a board and also our superintendent and in the feedback that we've received in planning this budget. Uh with your input, we have made this a successful budget preparation. Um last week we had our sixth budget workshop where we presented a near final uh report on the proposed 2627 budget. So tonight's public hearing is to bring the final uh budget that's being presented and give the uh public an opportunity to uh provide comments if they so choose to. Um this is uh of course our board um that has been leading the process and in addition we also have our administrative staff that I'd also like to acknowledge and thank for all of their hard work. Um also especially our business office team um

010that has been diligently working since January on this budget process. Uh first I'd like to start off by letting you know that there are some required uh postings that we have to undertake and the district has complied with all of those. Uh the first one is the public notice. This one was published in the newspaper. Um it was published on June 10th, 2026 in compliance with the law. I would also like to provide you with the tax rate history as well as the proposed uh 2627 uh tax year uh tax year 26 um tax rate. We are recommending that we remain again at 93 cents 93.22 cents the same as last year and maintaining that. the district has been lowering the tax rate as you can see since 2020 and actually beyond that and u

011you know that that is great for our public our community. Another required posting this is new is a taxpayer impact statement. The impact statement provides an analysis to our homeowners what their tax bill may look like compared to last year. So in 25 the median value homestead was 122,465 and this year it's actually 98,988. Now at the same tax rate the 9322 um last year they would have paid $1,14162 and this year uh that this coming year it would be $922.77. So this is a a reduction for our taxpayers and this was also posted but this was posted on our website on June 10th of 2026. We also have a budget summary report. This one is also a required posting. It's posted on our website and will remain on there. Uh it's been on there

012since uh June 10th, 2026. It provides a sideby-side comparison of the uh 2526 actual budget to the 2627 proposed budget and it's organized by the different functions. The next uh slide shows our revenues by object code. Uh as you can see the proposed budget uh has uh revenues of approximately $283 million. Um and then we are having two draws. One from the maintenance tax notes. What is happening there is that we had some interest earnings from the maintenance tax note 2011 that was recently paid off and that interest earning can only be used to pay off maintenance tax notes. So, we're utilizing it to make next year's payment. In addition to that, we are making a draw to the 199 general fund in the amount of $2.9 million. And the chart also provides a comparison

013to to the original budget of 2526 so that you can see uh the differences. uh in 2627 we are planning our average daily attendance at 17,522 which uh we know that average daily attendance is one of the key factors in driving our revenue that we receive from the state. We have the same information that is being provided by the different programs uh which are the fund numbers. Um, as you can see, it has the proposed budget for 2627 as well as the original budget of 2526. And then it gives you a difference and you might see some things uh pop out like for example special education. There was an increase from last year's uh original budget in the amount of 2.3 million. And the reason for that is because our special ed services have increased.

014we do have a greater population of students that need services. So that that brings in additional revenue. In addition to that, the uh teacher retention aotment at the time that we prepared last year's budget, we did not have the final say from the legislature in terms of the new funding formulas. So uh we did not have the teacher retention aotment that was brought in by an amendment later on. So that's why you see that not there. Um the appropriations by object code. This gives you an idea how much we are paying by the different category which is our payroll costs, professional and contracted services, supplies and materials, other operating costs, debt service and capital outlay. Again we do bring a comparison to the original budget as well. Um the majority of our budget is spent

015on payroll costs because it is a labor intensive uh education is a labor intensive industry. We're at 82.52% uh of payroll costs. Uh the accelerated instruction funds we are required to provide a report on that. This is funded through state compensatory fund in the amount of 196,517 and that is for our atrisisk students. The budget summary once again um we are providing that information by function. The board approves the budget at the functional level. So we provide a breakdown by the different function. And as you can see, uh, instruction is the driver of most of the expenditures. Um, that's the greater of the amount that's that's appropriated. Uh, the rest [clears throat] is used to pay things such as, uh, transportation, uh, textbooks, utilities, uh, services, insurance, and so forth. Uh, and it's spread out

016in the different uh, functions. Um we have a uh projected fund balance at the end of 2526 of 95 million. This is um are um unassigned. Uh the projected fund balance after the draw that we mentioned of 2.9 uh planned use from the general fund balance would be at 92 million and the projected operational days would still be in compliance with district policy at 132 days and the minimum that we are required to have is 75 days. So we are uh well over that even with the uh the draw on the the um additional funds. So uh at this time I'd like to remind everybody that everything we do is for our students and our budget was prepared with that in mind. Uh also we uh prioritize our employees making sure that we take care

017of our employees and um to [clears throat] continue and uh provide that support for uh our students. Uh we now will open it up for uh questions or comments if anybody has any uh information they would like to share. Do we have anybody in the public that would like to make a comment or ask a question? I don't see anybody. >> That concludes the public hearing. >> Thank you, Miss Garcia. Now, moving on to item number six, consent agenda items 6A. Just Oh, I'm sorry. Consent agenda items. >> I'd like to move to approve items 6A through 68. >> A motion by Trusty Deretta. Is there a second? >> Second. >> That was a second by Trusty Hadad. All in favor? I >> I. >> All opposed. Motion carries. 70. >> Now on to item

018number seven, instructional services, instructional leadership, human resources, business and operations and board of trustees items. 7A, instructional services, instructional leadership items. A one, report regarding the intention to apply for federal grants. Dr. Guettis. >> Yes. For any federal grants, the districts are required to inform the board of trustees of any intention to apply. Dr. Rosalva, Associate Superintendent for Instructional Services will have more information on this item and this item is for information purposes only. >> Good afternoon. U here are the federal grants that we have the intention to apply and um >> okay so we have uh title one part A, title two part A, title four part a title one C and Dr. Cindy Olivates is the grant manager and she's the one that will be applying for these grants. These are grants that

019we regularly apply for and the amount sometimes changes but uh the purpose for each of the grants are listed there and if you have any questions we're here to uh answer those questions or Dr. Oliv will be here too. Um moving on also is Perkins B. Um the CTE 21st century grant um will be managed by Mr. Leo Science and some and the application will be submitted by Mr. Science as well. Then moving on to special education consolidated grant ID formula in the preschool and that will be managed by Marissondo and submitted by Maro as well and she's here also as Mr. Science to answer any questions. And then moving on to u the discretionary for death uh grant miss Lisa Lada will be the grant manager and also the one that will be submitting

020the application. And then we have title three part A for ELA and Miss Rosio Nava will be the one that will be submitting the application and will be the manager. And then we have employment and training administration that that will be Miss Laura Williams. So if you have any questions, we're here to answer them. Uh but these are the grants that we will be applying for this year. >> Uh thank you Dr. Os. One question. Um, how is the administration managing the potential risk of um, cancellation of federal programs or reduction in federal funding? >> Well, we haven't heard of any right now, but really these are supplemental and so if we would need to um, take care of some of the expenses, we will have to take care of them. >> Okay. Thank you.

021>> Does anybody else have any other comments or questions? Thank you, Dr. Doyas. Item 7 A2, report regarding school health and related services program. Dr. Guutz, >> the special education uh will report the department will report on the school health and related services charge program. Miss Alisando, our executive director for special education will have more information on this item. And this item is also for information purposes only. Miss Alisando. Uh good afternoon board president, board trustees, uh superintendent Dr. Gutierrez. I'm going to be presenting on school health and related services as it pertains to special education department. So every year the special education department builds shars for all the services that we provide for the year including special education services, transportation services, and medical services. Um once a year we complete a cost report that

022is completed to determine the annual reimbursement amount for the previous fiscal year. MISD for 2024 had an average of $800,000 for the fiscal year in billing and cost report settlement combined. We received interim payments of 1.4 million for 2024. So we anticipate possibly repaying back 618 394,000 due to overpayment with the law change. But Mallen ISD did file an appeal for 2024 cost report on May 5th, 2026. We're awaiting to hear back from Texas Health and Human Services on next steps for that appeal. So what are we appealing? We're appealing Medicaid eligible student count and one-way trip ratios. Uh appealing Medicaid eligible student count in IEP and one way trip ratios. direct medical service costs, transportation service costs, and Medicaid allowable cost. All of that is for the 2024 appeal. Besides the 24 24 appeal

023that we submitted on May 5th, we also received a response for our 2022 appeal. It was denied and that means it's going to be going to a federal court. And at that time, we'll we'll find out if we're going to receive a settlement or we're going to owe the settlement amount of 391,000. So, next steps is really waiting on Texas uh health and human services to for them to give us a response and assign an attorney to represent the state, assign in a judge, and then Mckllen ISD to hire an attorney to represent us in that appeal. So, here's a quick overview of the past three years for SHARS and the fiscal year's billing. You can clearly see that in 2022, we had a total interim payments that we uh received of $1.6 million. Total

024Medicaid allowable costs that we build for was $1.9 million. Final settlement amount was 391,509. So for 2022, we filed an informal appeal and it got denied. Then we we filed a formal appeal and it got dismissed this year 326. So next steps going to federal court and then really finding out are we going to get repaid that amount additional funds or are we going to have to pay back? So for 2023, we received $1.1 million in interimm payments. We had total Medicaid allowable cost of over 1.8 million. We had a final settlement of 14,779. For 2023, we filed an informal appeal and it was denied. So, next steps, we filed an formal appeal on May 14th of 2025 and we're currently waiting to find out what's going to happen. Are we going to receive additional

025funds? Are we going to have to pay back? So, for fiscal year 2024, that's the one I just finished talking about, we had total interim payments of over $1.4 million. Total Medicaid allowable cost of 1.3 million. Final settlement amount was 618,394. We have already filed an informal appeal and it was denied. So, the next steps, we filed a formal appeal on May 5th, and we're again waiting to receive a to decide if they're gonna we're going to get additional funds or we're going to have to repay. All of these settlement adjustments shown above are currently under appeal and it's subject to change based on the outcome of all of the appeals. So, that concludes my report on Charing. Is there any questions? It's a lot of information. Mando, this is a dilemma that every district

026is going through, right, with denials of some of those uh claims and that just about every district is filing appeals because of loss of funding. >> Correct, sir. Um, every district in the state of Texas is filing informal appeals and then appeals. Our district has decided not only to file the informal, but to file the appeal and take it to federal court. >> And sorry, you might have mentioned it. Is this a federal issue or a state issue or is it >> so what happened was back um they went back all the way to 2018 sir in 2022 they decided Houston not Houston I'm sorry um Texas health services decided to change the way we bill in the state of Texas without getting approval through the federal courts >> and they told >> the feds

027are disallowing at the state level and then they're so so What happens is that they listen. Health and Human Services listens listens and looks at all of our informal appeal. Then they also look at our formal appeal. Then they give us a response based on that. Then we go to federal court, but they did it all after the fact. Districts were already billing the way that we have always been allowed to bill. So that's that's what happened. But they did go back all the way to 2018. The only reason we didn't file a informal appeal or a formal appeal for 2018 is because we were not allowed to. No district in the state of Texas was allowed to. >> And this is after we train our staff with their guidance. >> That's correct. >> Yeah.

028But again, this it's it's important to state that it's every district in the state of Texas. Any other questions? >> Thank you, Mr. >> Okay. Item 73, discussion and possible action for the approval of donation of Dr. Carlos Castanetta Elementary. >> Uh yes, this evening we have a donation by Dr. Carlos Castaneda Elementary. Mrs. Jennet Nino, associate superintendent for instructional leadership will provide more information and we're recommending action on this item. Miss Nino, do you have any information on this item on the >> Yes. Um, thank you, sir. And we recently had a visit from um the Castanada family to our campus and um after that visit um they were generous to give us a $15,000 donation to the campus. Um they did not want to be acknowledged in receipt of that, but um definitely

029want to support uh future student outcomes and goals at that campus. So um that is the information being presented today for the donation on behalf of the Dr. Carlos Castella family. >> This uh is for action. >> I move to approve the donation. [clears throat] Excuse me. Move to approve the donation for Dr. Carlos Elementary. >> Second. >> Have a motion by trusty ad and a second by trusty Pñena. All in favor? I >> any opposed? Motion carries 70. Thank you to the generous family. Absolutely. Thank you. >> Item 74, discussion and possible action on request uh for cooperative quote number 2027-10005, third party Medicaid billing services. Dr. >> Yes. Administration solicited cooperative quotes for third party Medicaid billing services. Miss Marvel, executive director for special education is available to answer questions. The administration is

030recommending action on this item. Uh we are recommending a change in the evaluation scoring sheet. It there was this change is was discovered after the uh scoring sheet was posted to board book. So we could not make any changes. Um there's a section where we require uh three reference letters and uh MSB um did not submit any. So they did not receive any points on that. Onward submitted three uh letters. However, they did not receive the full points uh because they were from two different districts. And in checking with legal counsel, we looked at how the question was worded and we weren't specific enough to say three different districts. So technically, even though it's two districts, uh they should get the full points. So that would put them at the lead at number one, onward

031would be number one, and MSB would be number two. >> Okay. Um, I was looking at that also and I was also noticing the price there which they >> they're lower. Yes, they are lower. >> I don't want to make a motion if anybody wants to discuss. Uh, I move to approve the ranking for request for cooperative quotes number 227-10005 third party Medicaid billing services. And to clarify if I second that motion moving to approve onward. >> Yes sir. >> I have a motion by trustee and a second by trustee Hadad. All in favor say I. >> I. >> All opposed. Motion carries. 70. >> Madam President, I move to approve that administration begin contract negotiations with the highest ranked firm onward. If the district is unable to negotiate a satisfactory contract with the selected

032firm, the district shall formally end in writing and negotiations with that firm and proceed to the next firm in the order of the selection ranking until contract is reached or all submitts are rejected. >> Have a motion by trusted debat. Is there a second? >> Second. >> A second by trust pña. All in favor say I. >> I. >> All opposed. Motion carries 70. Madam President, I move to authorize the superintendent to execute the contract or related documents for a period of one year commencing upon execution of contract with the option to renew for three additional one-year terms. >> Second by trust uh a motion by trust and a second by trust. All in favor say I. >> All opposed. Motion carries 70. >> That takes us to item 7B, human resources item 7B1, discussion

033and possible action of MISD. I believe this this was pulled, right? >> Yes, madame president, the board of trustees, if we may pull out this item and for a further meeting after we come back from the summer break. >> Okay. Yes. That takes us to item 7B2, discussion and possible action by the board of trustees of the Macallen Independent School District to delegate the superintendent authority to hire chapter 1, I'm sorry, chapter 21 contract andor professional at willill employees. Dr. Goetz. >> Yes. As per DC legal policy, the board may delegate final authority for those decisions to the superintendent. Administration is recommending that the board [clears throat] of trustees of the Mckllen Independent School District grant the superintendent authority to hire chapter 21 contract on and on professional Edwell employees. Dr. Canales, our chief human

034resources officer, will have more information on this item. We're recommending action on this item. And just to summarize, during the summer break, since we're not having any meetings uh until uh probably August, the first week of August, we do have vacancies and resignations and we're asking for the board to authorize me to uh hire staff so that we don't lose highly qualified staff to surrounding districts. This is a practice that generally um every district does at this time of the year that allows superintendent the authority to hire. Of course, employee that will be hired under my authority would we would bring a list to the board at our upcoming meeting in the first meeting in August so that the board is aware of all the employees that uh were hired during the time that I

035was authorized to hire those employees. >> This is for action. I move to delegate to the superintendent authority to hire chapter 21 contract and/or professional and at willill employees from June 24th, 2026 through August 11th, 2026. Second. >> I have a motion by trusty adat and a second by trusted. All in favor say I. >> I. All opposed. Motion carries 70. Item 7 C, business and operations items C1, report regarding child nutrition program strategic plan. Dr. Guthus. >> Yes. The child nutrition program is committed to providing nutritious high quality meals that promote student health and academic success. Missia Skiell, our director for child nutrition programs. We'll have more details uh on this plan strategic plan and this item is for information purposes only. Um Mrs. Keel. >> Hi. Uh good afternoon and thank you for

036the opportunity to share with y'all. Uh today uh today's presentation is designed to provide a clear roadmap uh for the department's goals and the action steps that we will take to achieve them. Uh this presentation serves as an overview and is part of a more in-depth plan that I believe uh you've received separately. Um so we'll go ahead and get started. So this slide highlights our mission and vision uh which guides all of our uh work as a department. So our mission is to support the achievement of students uh by expanding access to high quality nutritious meals uh that nourish both the body and mind. We are committed to providing these meals in a safe and welcoming environment while also promoting nutrition education and importance of healthy uh eating. And our vision is to create

037a generation of students who value nutrition and wellness as a lifeline priority. uh together our mission and vision uh serve as our foundation of our goals and the work that we do every day to support uh student success. Um so goal number one is to increase uh scratch cooking um from 17% to 71% which is a 54% increase over three years to improve uh meal freshness, improve nutritional quality and support student health and academic success. This is an increase of 18% uh year after year. And for the purpose of this plan, definition of scratch cooking is meals prepel prepared using whole fresh ingredients while with an emphasis on the use of raw proteins uh whole grains and fresh fruit and vegetables. Um as we roll out our August uh 2026 menu, uh it will reflect

038some improvements to our breakfast uh meal servings. So, we have changed our cereal and there are other uh scratch cook items that will be on the menu. But again, as I've uh presented before um in previous board uh presentations, the new menu rollout uh timeline will be a a gradual um roll out. So, you will see uh in October of 2026 uh two new breakfast items um as well as two side uh entree uh side servings uh either ve vegeties or fruit uh changed. Uh January of 2027, we will introduce uh raw beef entree for lunch. And then March of 2027, uh we will do an additional two to three additional menu items. Uh please note that popular menu items that are willlike by students uh will still continue to be offered as long as

039they are within our nutritional guidelines. Uh these changes support balance um meals uh lowered added added sugars and increased scratch minimally processed items. Uh this phase approach helps us uh manage implementing and monitoring student responses. Um and then the resources needed to implement this plan is staff engagement and training to ensure successful implementation of the new menu. Uh tracking a mechanism to monitor menu development and progress towards goals. Um and this mechanism has already uh been uh started for the year. Uh student acceptance of the new menu to facilitate equipment upgrades. Uh so this is crucial as our funding and ability to remain self sustaining a self-sustaining department relies on student participation. Uh this will ensure that the district will uh will not need to subsidize our program at the end of the school year.

040um improving operational efficiencies to support the expansion of scratch cooking. And then we will also be partnering with the Eat Real organization in the upcoming uh fall cohort. Uh that would make us one of five school districts in Texas who will participate with this program. Um and they provide uh nutritional um child nutrition programs with structured frameworks to make school menus delicious, nutritious, and more uh importantly sustainable. Um we have also submitted an application with the uh chef and organization for a one-year cohort that starts in November. We're pending uh acceptance letter on that and that was done in the in the spring. Uh for goal number two um it is to improve cafeteria equipment and operational efficiencies to support scratch cooking. This is important because we need to ensure that staff have the appropriate

041equipment and facilities needed to perform their job efficiently and responsibly uh responsibly reducing equipment downtime and minimizing the need for additional labor while supporting highquality scratch cooking. Um this will be an ongoing goal as upgrades will need to be gradual as funding allows. Um this [clears throat] is tied closely to goal number one. participation drives our funding which will which will uh drive our ability to continue to provide equipment upgrades. Um this year um we have already started a a comprehensive equipment tracking system which will is being developed to help us plan and budget um more effectively as a department. Goal number three is to strengthen financial stability. Um this goal ensures that the child nutrition program remains a uh stable and sufficient uh fund balance to support daily operations, strategic investment and unaccept uh

042unexpected financial needs while maintaining compliance with all federal, state and local financial guidelines. Uh to remain financially stable, we must face we face some challenges as the district does too, right? So one of the ones that is always a topic is uh decrease in student enrollment. Uh so student enrollment also affects child nutrition as um you know we can only feed students who uh who are potentially you who are at school. Um so creating uh appealing menus that students enjoy will also be monitored as this is crucial for maintaining financial stability. Uh we will closely monitor this um that students are accepting the new menu items uh that we so that we can remain financially sustainable and again uh ensuring that the district would never have to subsidize our program. Other approaches um that we

043are looking at is also uh increasing um all the cart cells uh for the department um and limiting the sales um to only child nutrition uh programs um that is an option to help sustain our program. Um as a district we will remain we will maintain our participation goal of 80% for breakfast and lunch and 11% for dinner. Uh achieving these goals will ensure that our finan uh we remain financially stable. Um this year uh we concluded the year with um our breakfast was at 72.16. Uh we ended at 80 uh7 for lunch and 10.38 for dinner. For goal number four, it is to evaluate um food service um sorry evaluate food service um staff through culinary um elevate sorry elevate food service staff through culinary training and professional development. Um this will be uh

044key because with our um food service staff when they are well equipped uh with the necessary tools and resource they can perform at a h higher level. Um this will be ongoing uh but the kickoff to this will be when they return back from summer break. We already have a half-day culinary training uh planned at our central kitchen uh where they will get um menu demos and um other trainings like knife skills. So that is already um planned out for our staff just to set the tone for as we're um getting all of these goals in place. So just getting our staff uh prepared for that. Um, another part of uh just uh information that I wanted to give you as we consider uh the strategic plan. Um, the I did want to talk about

045um our breakfast menu options. So, and the difference between uh offer versus serve. Um, so as a as a department, we are responsible we are required to offer um for four components. Students must take three. Okay. Um so in this example you will see our entree options. Most of our entre entree options or actually all of our entree options count as two items. That's one food component. We are required to offer one cup of fruit or juice or vegetable. Um and they do have to be different. So that is a requirement. Um milk um is another requirement that we are uh two types of milk are required. Um and so I wanted to kind of just show you what our breakfast would look like. So for this example uh fruit and milk are required components

046uh CMP must offer daily. As shown in the example entree one the total sugars are 43.2 grams of which 41 come from required components. Again, this is offer versus serve. Students are only required to take three. So, they can take their entree and they can the only other requirement is they have to take a half a cup of fruit or juice. Um, so CMP will focus on added sugars while maintaining compliance with required meal components. Um in April we did remove juice from breakfast meal service resulting in a four uh% decrease in participation. Uh after juice was in re reintroduced in May participation returned back the 4% um in the month of May. >> Missa, do you mind if I ask about that? Mhm. >> So, do we know if that's directly attributable to the

047juice? >> That's the only thing we returned. >> We did not return anything else. >> What about removal of the other item, breakfast items, the sugary bars and that kind of thing? >> Well, we didn't. I mean, you would just kind of assume if you brought back the juice and it brought it back up the four points that that could have played a part in the reduction. um the other items that were removed um we just didn't allow it to go much further than that. I don't know what else it would have it would have done. Well, we'll know into the new year because we've already taken those out. And what is do we plan on looking at removing juice in the future or you know >> we're looking at maybe we're looking at maybe

048some uh veggie juices uh that we can bring in. Um you know some of the comments from managers were it's really students want something to drink with their with their taco you know and as much you we do have milk we are one of the other things sorry I should have mentioned is we are taking un uh flavored milk away uh from the breakfast uh menu. So it'll only be unflavored milk. So we are required to do two types. So it will be fat-ree and 1%. Um so that is coming off from our breakfast offerings. >> And what you I guess do you know what and I'm sorry you don't have the numbers if you don't. What percentage of the takings are flavored milk currently? Um, I don't have the percentage in front of me.

049Um, it's it's definitely higher than unflavored milk. >> And do we have um I guess how do we if we see a similar drop in participation? How do we address because I think we all share the same goal of providing our students with >> healthy options, less sugar, >> right? I think the milk is not going to affect it as much. You don't have as much milk drinking in the morning >> as you think. Like you think because you have milk, they're going to take the milk. Um they don't take the milk as often. >> Okay. >> So really, it's like all of us, right? We drink eat some a taco and we want something to kind of wash it down with. And milk is not the choice that they choose. They want a 4

050oz uh juice, but we are looking again, like I said, we are looking at seeing if there's like a veggie option juice because we are allowed to do a veggie. Um, so that's that's something that we're looking into. >> And when we remove the juice, what did we put in its place? >> Another fruit, >> like a apple. >> We have to do two two different types options. So apple, banana, orange, apple which the banana has more sugar than the juice. More sugar. >> 28 grams of sugar. >> What about um on the milk? What about a non-dairy option like an almond milk or something? Is there I mean maybe kids just don't like dairy milk or can't drink dairy. >> Yeah, we're I mean we can we don't get reimbursed for for that. It

051has to be um you know dairy milk. Well, I'm glad you talked about real food and chef. Maybe they have some experience in what we can do to replace juice without >> Yeah. >> you know. >> Yeah. And and like I said, it's something we're already looking into >> um to, you know, because just trying to see if is there a veggie option, you know, that that would be a good option that students wouldn't really realize it's it's veggies. >> Are there veggie juices out there that >> there is one that we currently use uh we use it for dinner. Um but I don't know that the style of it is as great. It looks like a Capri Sun. Um so, you know, we're just looking for something else that maybe doesn't look like that.

052And then the other is uh as we make these changes, we want to be mindful of the upcoming potential uh community eligibility uh change. Um the first um factor is our enrollment decrease. So seeing an uh decrease um a decrease in ecodisk uh numbers as well. So changes to benefit eligibility may change the percentage of students who qualify for uh free meals. So currently our C renewal will expire at the end of the uh school year. Uh we certify every four uh we certified four years ago and we we must renew. So um currently 90.32% of total meals are reimbursed at the free rate. Um, and at this current trend, it shows that we might end up at 77.37 of the total meal reimbursement at the free rate. I did notate on here that while

053there is a could decrease, reimbursement rate could also increase. I just we don't know what that is. Um, and you know, I wouldn't count on it being too too high, but um that that could also uh change some of the numbers that I'm going to show you on the next slide. Um, so we did just uh do what that would look like in the October. We used our actual October claim. Um, and you can see um on the October claim uh we were reimbursed for breakfast and lunch at uh 2.1 million. Um should we see the change in um C go down to the 77.37 of free and 22.62 of paid. Um the reimbursement uh would be at 1.9. Um so that is a total change in revenue of 27,000. Um I ran that across

054uh the 10 minutes using our claim from August to um July uh 2nd and just using again I'm just using numbers that we have at this point. Uh not taking into account that reimbursement could also play a part. Uh it would be at 2.1 million. Um so just making sure that um you know as we're rolling out these menu developments uh it's crucial that we ensure that we are just taking a look at the participation um because that is directly tied to our reimbursement and the ability for us to continue to uh remain uh financially stable. Um and >> we did see that and this might be more of a question for Miss Garcia. We did $2.7 million drop in CMP revenue. What would that mean for a budget or to make up for the

055difference? >> The first maybe the first uh and going into the second year they could cover the difference with their fund balance but after that they were uh it would have to be self- sustainable otherwise we would have to supplement with the general fund. However, we do have some [clears throat] strategies that we're working on like for example uh reducing labor costs, reducing the food costs. The alle cart sales was another one implementing that and of course increasing the participation rate so that reimbursement can be uh greater so that we can uh prepare for that drop that we're going to see next year. Well, the following year. So this would be >> this would be 2728 the drop >> 2728. >> Okay. >> Yes. >> And just a clarification on the change in eligibility. So

056to me it looks like a very big swing from 2526 to 2728. But if I heard you correctly, part of the reason that the swing looks so big is the uh balance between free meals and paid meals in the 2526 school year was actually set four years prior. Correct. So this is four years worth of correct enrollment and demographic shift, not just one year, correct, of enrollment and demographic shift. >> Yes. You certify and then you you kind of lock in your rate and then like let's just say if we were to certify at the 77 that I'm saying, but a year later we look at it and we can actually go higher, we would reertify. >> Okay. And then uh lastly is uh just our central kitchen uh project which will uh help us

057to get towards scratch cooking and this is just an overview. Um estimated cost of 1 million. Uh it includes uh the dishwasher uh implementing a blast chiller which will help central kitchen to prepare uh raw beef and send it out. So we're it's being cooked centralized and being sent out. Uh it would help with labor cost as well because uh ensuring that the food uh reaches temperature at the at the right time in a shorter amount of time uh will reduce labor and then replacing uh brazers. And so we have scheduled uh we're up to um tomorrow or no sorry Thursday where we will meet with half um and then uh the rest of the timeline is on this slide. >> And can I ask on the brazers? Do we currently have brazers or we

058just need extra? You do, but we we included them in here only because of the the cost of replacing three for central kitchen that broke that uh started to have problems. So, we just included it in here for it's going to be a just a drop in play. It's not going to be included with the engineering part of it. And then with the the bond projects in certain campuses seeing, you know, cafeteria remodels, expansions, are we able to use some of those monies, I guess, to purchase equipment or something that would otherwise go to the central kitchen, but we could cook meals at those campuses for the entire district. Is that >> uh inferully said, but do you understand what I'm asking? Yeah, I think uh for the purpose of uh introducing raw beef uh

059to the campus uh our plan is to cook it centrally at central kitchen and then send it out to the campuses that way. So that way there's more control of and less like uh potential hazard out at the campuses as a start, you know, because then you have to create you have to make sure that all your staff is trained and there's more monitoring having to be done with uh raw beef at campuses. >> Um and then I didn't want to interrupt you, but do you mind if we go back to Sure. >> the first goal? So, um, one, I want to thank you for all the time that you have put into this, um, and to the CMP and all your staff. Um, you know, this is extremely important for our kids. You know,

060you are what you eat. And I think more and more studies come out every day, um, about eating, you know, ultrarocessed food and how that's detrimental not only to, uh, mood, anxiety, uh, ability to learn, attention span, you name it. Um, our guts are the, you know, they control a lot more than we think they do. >> Um, and thank you for, you know, moving to increase scratch cooking by 54 percentage points. I think that's great over three years. What I don't see is necessarily definitions and I know you you defined scratch cooking in a previous presentation, but in our strategic plan, I would like to see more definitess that we can measure against. Um, you know, we have, for example, we're talking about introducing two to three items per, you know, in October, then

061again in March. >> What do you mean by items? How are we going to measure that? How are we going to increase to 18% scratch cooking? Uh, by only introducing two or three items. I think more definitess around that so we can measure, >> okay, >> would be really helpful for us. I want to commend you on just from the last presentation I saw to right now. reducing our goal for added sugar from 10% of all calories, which is I think USDA standard to 6.5%. >> Right. >> So, thank you for that. Um, you know, when you add up all the sugar, even if it's added or not added, kids are getting a lot of sugar and I think that's just leading, especially here in the valley with high rates of diabetes, we want to

062see how we can tackle that. >> Um, another issue I would like to see is what is our nutritional plan >> because scratch cooking is strategy, but what what are we trying to do in terms of nutrition? How are we measuring nutrition? >> And I'm not a dietitian. I'm not going to pretend to be one. I'm going to rely on the experts for that, and that's your department. In terms of are we looking at uh what kind of nutrients are we looking? Are we looking at protein levels? Uh how are we defining ultrarocessed versus minimally processed foods, that sort of thing, I guess the overall, >> right? >> And that's, you know, part of the mission vision. So, I know that's there. >> Yes. >> But it would be really helpful for us to look

063at, all right, how are we defining this? How we measuring nutrition value? Because that is the key, right? We're not doing scratch cooking because it's we want to. It's because it's nutritionally >> better for our students. [snorts] >> One thing I guess on nutrition and then this goes back to a couple other presentations. Um, comments have been made that and I know Texas law does not allow us to fry foods, but comments have been made that we may purchase foods that are I think I forget the terminology, but you know, they're bathed in oil or something like that. >> Does that mean we're essentially serving fried food or not? >> Well, no. I mean, all of these uh foods that we get are are approved like vendors through TVA. >> No, I I have no

064I have no I have no doubt we're in compliance, right? >> But I'm asking, is it really fried or not? It's it's they probably do like a parfry on some of the products that we serve and that is the level that at the level that is allowed per uh regulations. >> Okay. >> So again I you know we we buy from approved uh vendors you know through region one. Um can we do better? Of course you know and that's where we're going. Um it's just that's just what we've had available to us. You know what we've been doing. >> I just wanted to kind of get clarity on that. So that I would think that would be part of our nutritional >> Sure. >> our internal nutritional goals and guidelines about what we want to

065feed our kids. >> Yes. >> I don't know if you got the eat real uh handbook as part of the updated strategic plan, >> but a lot the eat real uh program handbook. I don't know if you got that as part of it, but a lot of the what they're going to evaluate on our menu is going to it's going to help us uh hit every single one of uh these these points that that you're bringing up. >> Oh, that's great. >> So everything is uh a point system. Um so like that is one, right? So including uh any like what you would say like fried or par fried or whatever uh gives you a certain amount of points and so the less points you have, the higher score you get. Um, so we we

066sat down with them a couple of times and we went over their program. And so, um, it's it's a good program that will it's kind of like really, uh, aligned with what we're trying to do as as a department. >> That's great. Thank you. If you could send that to me, I'd love to look at that more intent. >> Y, >> that's brilliant. >> Sorry, I didn't mean to hug the mic, but thank you. It's all right. Um, thank you, Miss Vvel and team. So, can you just clarify where are we with the eat real program? We applied to be a part of the cohort. >> They uh we we've sat with them a couple of times. So, they sent us the um the agreement. Uh it is actually with legal right now. So, they're

067reading that and then the idea we have to submit back by July 27th, I believe. Yep. >> And uh the fall, it starts in the fall. I I believe it's August or late August or September. >> Okay. Um, and it would be a one-year cohort, a semester long cohort. >> Um, I believe I'm sorry. I think it's three years of just reviewing uh nutritional. It it start it'll start slowly because it's going to be a lot of us giving them information and they're going to dissect um our menu down to every ingredient and every uh item >> and then they will come back with a scoring system for us and we can decide whether we will certify at that or we were going to shoot for a higher uh certification. and we can always reertify

068um after we've they will recommend uh the if you do these steps you can get move on to the next um level. >> Okay, great. Thank you. That's super helpful. I just wanted to make sure we were sort of prepared to continue to work on this for at least the three-year term of a strategic plan. Sounds like we are. The second thing, and this may be too far into the weeds, but I think there's an important distinction between sugars as a whole and added sugars. Um, and it's sort of called out in the data that you shared. Um, and I'm looking at the eat real matrix right now. And we are actually at the highest level of performance right now. >> Um, based on the eat real recommendations because the added sugars in these options

069at breakfast are so low >> for for Yeah. I think that what they'll do is they'll look at the whole week. >> Yep. Um, so just based on one day we would be, but we would have to >> if we're below six and a half% over the course of the week, we we would get the four points which is the most points maximum on the matrix. I think the larger concern is just the total amount of sugar that is being available to kids at breakfast regardless of whether it's added or not added. Right. >> And it sounds like some of that is by constraint. So we have to have at least two fruit options. We have to have a milk option. So those three items alone, maybe the juice is less than a milk is

070a substantive amount overall. And I would just like to see as we move into defining nutritional standards for children going above and beyond what may be statutoily required and further um reducing total sugars available, not just the added sugar component. I I also want to point out so just remember that natural sugars our bodies are going to just digest them a lot different than any other sugars. >> That's right. But for juice, there's no fiber in juice and so it's going to convert to sugar and be spent by your body much more quickly than a whole fruit would like an apple that has lots of natural fiber in it. Right. >> So there is an important distinction in that regard. >> Yes. >> Okay. Thank you. Um, thank you, Miss Esel. I think I'm just

071echoing and we've had discussions, too. So, thanks to your team for all your work that you're doing on this um, initiative and this new territory. Um, I just kind of want to echo that we continue to work towards defining some uh, definitions like scratchcooked. I know you did that earlier, but to also put it in the um uh strategic plan, minimally processed, ultrarocessed, food waste, added sugars, and I don't mean a general um definition, but like as a district, you know, what what plan are we going to make to either reduce or um add more or you know, something along those lines? Um and then I do have a clarification. So the chefan I know they also offer a three-year that's not the same. >> No because it opens in August and so we are

072on a waiting list to hear back from them. Okay. Um I did talk to the eat real people as well to say okay if we were to do >> the chef and like would there be a conflict and they said that no they've had districts who work on both. >> Okay. >> They don't really do they they would do recommendations but it's not more as in-depth as maybe the chefan would be. >> Okay. But the one that you mentioned that y'all are applying to now is just a one-year cohort. Correct. So tell me more about why y'all chose that. And >> it's just that it became available and so we wanted to apply some >> just to hop on just to see. We don't know if we're going to get >> but I'm hearing even

073you would still apply. >> We're on the waiting list for the other one as well. >> Okay. Got it. Thank you. Um Oh yeah. Okay. Okay. Um, and then I'm going to bring up the juice, too. And I'm not really talking about the juice, but just kind of looking forward as we enter this new territory of trying different things. Um, I'm curious, you know, the twoe period that we saw numbers drop. What was the discussion among your team and um the plan kind of that y'all were going through when that happened to come to the conclusion that okay, let's let's reinstate it. And I guess I asked that because um I'm wondering as we approach newer territory and newer um recipes and approaches and we might remove stuff, add stuff, I think it would be

074really great to have a plan and even that the board is aware of. So if we say if or if you guys tell us, hey, we're going to remove this and try this new thing that then it's not such a you know if it doesn't work out that we know that there's a plan in place um that you guys are working towards right >> to respond to you know >> um and again like I don't mean to harp on juice >> because I know that keeps getting brought up but just like that broader issue of if if we make some changes there's going to be some declines. there's going to be some stagnant >> moves. So, like what what plan does your department have to kind of face some of those potential issues? You know

075what I mean? >> Um to start off the year, I mean, you know, like one of like one of the things that I mentioned was just the removing of like the the cereal, right? So, we're only introducing uh Cheerios and Chex mix um for the whole week. Um that is the only plan that we would have is in like six to eight weeks we can replace it with something else but it would take that long to make a change to that because our orders are already in. We're already going to start receiving in July and we receive up until you know eight weeks out. >> Um so there for that there would be an adjustment that needs to be made. the juice was a little easier because manager the vendors go directly to the campus

076and they're able you know at one point we said okay go ahead and order uh juice so they were able to start ordering directly from the vendor and deliver directly to the campus >> um so the lead time for those are a little bit uh smaller >> in terms of food there is a bigger lead time um and so you know that is where we have to you know um respond a little quicker. You know, as you know, we really don't have a lot of time. We have 180 days to make the revenue that we make. So, waiting a long time, uh will just, you know, either make it worse or or it could just, you know, level out and and we see it just kind of steady. >> Right. Right. >> But it's it

077it's it's tough um to make those calls. Yeah. >> Um, >> and I'm hopeful that we can get approved with Chef Anne and now you have the Eat Real. You have you have different um, organizations to collaborate with who troubleshoot issues like this all the time that you can lean on and be like, well, you know, it's dipping, but people can help. >> At what point are we going to stay like we're going to remain steady and then at what point are we going to make an action? Right. Right. Yes. Yeah. >> Okay, that's all my questions. Anybody else have any other comments or questions? >> Mrs. Skeel, for my part, I think that um there's a real clear consensus that we have, you have the community support as well as the support of the

078board. And so even as we're working through those changes and those periods of ad like us all needing to adapt, especially our kids um just know that you have the support. I think if nothing else to take away, that's the highlight, right? Um and we are here to support you and so um we'll do that. So, thank you. I appreciate it. >> We appreciate everything that you're doing. Thank you. >> Thank you. Our team appreciates it as well. >> Thank you, Mrs. Keith. >> Thank you. >> Um, that takes us to item 7 C3, discussion and possible action of the Oh, I'm sorry. >> 7C2. My notes succeeded my that page. 7C2, the report regarding bond 2026. Dr. Gothis. >> Yes. We will be presenting an overview of the 2026 bond. Miss Lorena Garcia, Deputy

079Superintendent for Business and Operations, will present a report. This item is for information purposes only. Uh just a a reminder, last week we had a a presenter to talk to us about the project managers and and how to proceed with project managers and uh we need direction from the board so that we can start this process of uh the project managers that uh administratively we're proposing. So that way we can uh have a timeline that Miss Garcia is going to talk about and and start putting an RFQ out there as well as advertising for an in-house project manager and and start moving in that direction as soon as we can because the summer is fast approaching and and um we're going to be selling the bonds sometime in late August, September, and we'd like for

080this to be going concurrently so that we can get a project manager on board and hire one inhouse as But I'll leave it to turn it over to Miss Garcia so that she can uh present that report. Miss Garcia. >> Yes. Yes, sir. Um I provided a a timeline uh for a possible RFQ and I left it blank whether it be project manager or architects and engineers because it could possibly be one or the other or even both. We could do that at the same time simultaneously from a bidding perspective. But um as far as the contractual, we did receive the explanation how we would handle that where once we have the um project manager we could uh have a master contract and then have contract addendums as projects are being assigned to the the

081project manager. However, uh we would like to if possible uh go out for a project manager first. Uh and the reason for that is because we have to for the RFQ for the architects and engineers, we actually have to break out the bond into project clusters and we have a uh draft that Mr. Ruben Travin shared with you all at a previous uh board meeting and this is our interpretation of how we can do that. However, it would benefit us to receive guidance and input from a project manager on how to cluster these projects uh if there's a better way to do that and then put that information into the RFQ. So, that's why uh we're recommending that and we would like direction as to which way the board would like to go. Um I

082know that we talked about u changing the evaluation criteria uh uh from 100 points to a thousand point system and then also adding um points for board interviews as part of that. So I don't know if that's something that we would have to bring back that would add an extra board meeting to the timeline if if we need to bring that back to the board or if that's something we can send to you all uh via email if you'd like uh once we have that. So just looking for feedback on what your expectations is on that before I get into the board oversight committee topic. >> My feeling is that we should take into consideration Mr. Hayden Hansen's recommendation >> u going from 100 point my understanding is going from 100 point scale to a

083thousand just provides more nuance. So I guess on paper when you're talking about uh whatever the vendor is and it's 98 points versus 99 this seems like one point like they're almost the same but on a larger scale you'll be able to see that difference. I think that might be worth doing the current the RFQS we looked at what in March and maybe going from 100 to thousand point scale >> and then I I'm not sure what do you have recommendations if we do do board interviews whether it should be a >> 5% of the points or 10%. This is such an important contract that uh I I think it it would warrant the board to get involved in that rather than having the administration do the full evaluation and then bring one firm uh

084for recommendation. >> Yeah, I would appreciate that. Um, I'm a person who sort of goes into the details pretty quickly. And so, just to be super clear what our option is here, or one of many, there is a team led by administration that would run a scoring process. You all would then bring to us, maybe it's the top three, maybe it's the top five. >> Yes. >> Then we would interview on, in this particular case, on the 25th, conduct our own scoring. Um, and then it would be the purview of the board to make a recommendation. Um, my question then is one, does all of that sound right? I've seen nod heads. Two, when the board interviews, are we operating from the same score sheet and scoring on our own or does the board have

085a another type of scoreeet? Um well the what the recommendation was from the presentation is that we add uh a category in the evaluation criteria that we already currently have y >> for interviews and give it a set of points. >> So when we would uh pick up the scoring sheets from the board um you know let's say it was I don't know 400 points or 200 points for interview >> of the thousand >> maximum of the thousand the uh each one of you would provide your own score for the different companies and then we would take the average of that and then add it to the uh larger matrix and then based on the total of the qualifications plus the interview then that would be a new ranking and uh the highest rank from

086that group would be the one that we would recommend contract negotiations with >> I guess did we hear from Mr. Hans or I would I would be interested in knowing what uh large school districts do as far as how how many points the board's interviews would would provide in the waiting of of thousand points. >> I've checked around uh I did some research looking for some samples and they're all different and I I did not find one with a thousand. I mean although I have seen other bids other categories uh commodities and services in the thousand evaluation mark. Uh I have seen that done before. Uh but as far as for project managers, I did not see the samples that I found were very different and some of them we would disagree with uh the

087process that they were using. Like for example, they were qualifying multiple vendors and the law says you have to rank and negotiate with the highest one. So it's only a singular firm. So um it's it's uh >> it's it's a district decision. >> Yeah. >> The interpretation of the legal counsel uh what we can do within the parameters. And I'm sure if you ask different attorneys, you may even get different interpretations. >> I mean I understand 100 versus a thousand, but at the end of the day, like you said, you had a zero or we could take away a zero. I mean it's going to be If it's 990 versus 980, it's still, you know, 900. >> It's in the range when you're giving the points. Uh, you know, you have 100 point uh leeway

088versus just like, uh, you would have to go into decimals like we did. Like for example, the SHs was an example that it was so so close was by like, you know, 0.2 or something like that. >> You would avoid situations like that. we can go out, you know, giving us feedback to go out for the RFQ. When we do that, we can then come back with a recommendation like how many points can the board give based on the interviews. Maybe >> we do 700 and we leave 300 up to the board. I mean, I'm just thinking aloud or could be we do 800 as administratively and leave 200 >> collectively for the board to assign and then we can bring you all a recommendation on the matrix. Well, that's a good point. I mean,

089we saw it tonight in the chars vendors that it was to the decimal. So, maybe the added zero will alleviate some of that >> correct >> close tightness >> in the rankings. >> Yeah. What we like to do is look at this timeline. We can we're okay to proceed so that and then we can work on the matrix and bring that uh point system on on how many can the board wants to give or based on the interviews. But I business of the >> we would have to change that timeline because the advertisement is uh shortly after we come back from break. So that would not give us any uh time to to bring it to the board unless there was a July meeting. But um the earliest we could come back is I believe

090it's August the 8th is is our our next board meeting. >> You want to go out for RFQ before then? Uh, no. I mean, I'm >> I mean, sorry. That's the earliest. Is that the recommended? >> That That would be the earliest that we could could if uh you all wanted us to go out, but like I said, if uh we need to bring it back, then we would need to make room for uh another board meeting, which is fine for us >> to bring to bring the the matrix. >> To bring the matrix. >> Yeah. So that it could be included in the RFQ. Correct. >> To Right. And then we advertise after that. Well, I'm fine for with that as long as it's doing it right. And yes, from the beginning to the

091end of this bond project. >> Go slow to go fast. >> Okay. >> So So then we could look at a meeting sometime in late July just for the spring the matrix and and then allow us to go out for an >> is that >> I think so. Um I did have a question Garcia. Am I understanding correctly that then the the points awarded by the board there is no rubric or we don't plan for there to be a rubric and it's going to be subjective. >> It would be uh subjective the interview. Now the >> but even in the interview process there's we're not going to have a rubric for how we subjectively assign points or >> um we could because there's >> I think we need some >> we need some okay because

092we would uh have a set of questions that you would ask and you would ask the same questions of all the all of the candidates. Um so we could use that as a rubric to break down the points. That kind of gives me pause because that still leaves it to each of us to like an answer or not like an answer versus have objective an objective rubric for how we're scoring the particular answer. Does that make sense? >> And I mean >> tell me what you think. It's all of us. But I just >> Yeah, we need a rubric. Otherwise, it's just >> not just signing to establish a rubric. >> Maybe we can ask Mr. Hansen to help us with that. >> Yes. >> Did we have a rubric when we interviewed legal? >>

093I feel like I remember adding points >> for >> insurance. No, we did add up, right? I remember there was some kind of >> for the third party administrators. We we had a rubric for uh the the ranking that the just the administration did and that had questions and it had a rubric depending on what the answers were it would give you a range of points to give them. >> Okay. Uh well I have your guidance >> one other question here. What procurement method are you recommending for this RFQ and why? Well, the uh procurement method would be a request for qualifications, which is really the only one that we can do that the law allows for. It's considered a professional service. >> Thank you. Just just another for now. Okay. >> And just to

094clarify because there's rumors out in the community, no bond project has been assigned or awarded >> I know. I'm just clarify that. I absolutely know that >> we're months away from that. >> Correct. Okay. And then finally on this uh presentation, I did include multiple versions of the bond oversight committee charter. I did receive uh some changes, recommended changes u from the board. Um and I've incorporated those. Also, the ones that I received that night, I incorporated that as well. So in red you see the strikethroughs, but I also in your SharePoint you and also on the board book for the public to see. I included a clean copy so that it could be easier to read with all those uh strikethroughs. But um this is the uh recommended board bond oversight committee charter and

095we have received uh a set of names from one board member and we do not have any names uh from the other board members. So uh we would uh ask that you please send your names to Norma. That way we can come back and bring you the full list of of who is being recommended by the board members. >> I have a question for names that do get submitted. Um can the board be notified >> of so we don't Right. My fear is that we all coincidentally nominate >> construction people or lawyers or and I just want to make sure there's some diversity in terms of backgrounds. >> Yes. >> Yeah. We can give you an update as we're receiving them. >> Okay. Cool. >> Miss Garcia, I apologize for my um failure to submit

096this earlier, but um in the ineligibility section, um I noticed that we didn't include I mean, we included the employees and family members of employees. But in the same vein, I thought that it might be appropriate to have uh no employees of bond related vendors. No, >> no employees >> like somebody that's employed by somebody one of our bond. >> Would they be considered the vendor? >> I don't know. It depends how we define it. I don't think I saw >> and the definition for the vendor is on there. It's actually on this page. It's uh consistent with the conflict of interest uh statute government code uh 171.002. Um and that that's the the definition that I uh utilize. I believe Mr. Ria was the one that suggested that >> where you receive 10% of

097you get 10% of your gross annual that's >> so so an employee would would uh be disqualified from >> so for example if somebody works for a vendor more than likely 10% of their annual income is coming from that vendor >> by definition they are a vendor >> unless they're a sub for vendor That's true. >> That's a good point. >> Yeah. So, so if you can give us the names uh sometime in the month of now, June or July. >> Yes, we can send them. >> You get them like >> we can send the two that we have tomorrow. >> We'll [clears throat] send you the first two. Yeah, >> the sooner we have them, the the better. so we can organize meetings with them as well and get them involved in the process

098because the process is already starting and >> and we'd like to get this bond oversight committee get get uh get involved right away now. >> Okay. As we promised, >> okay, so you're good with these changes then? >> I do have one clarification. Oh, sorry. >> I'm sorry. Just to clarify on that um on the 10%. Uh if it's a full-time employee, then that would cover it. But if it's a subcontractor for a vendor, then it potentially may not. So >> depending on the size of their contract, >> right? >> So I think maybe we should spell it out a little bit. >> Okay. I can add that as another line item as an employee of a bond related vendor >> or a subontractor or a subcontractor. employee or employee [clears throat] subcontract. >> Okay.

099>> Um before we move forward, we skipped over the um chunking of the projects, I do just want to confirm my takeaway on this. >> Starting on slide four, I believe it is. So, for the purposes of putting this in layman's terms, what I'm reading on this slide, please correct me if I'm wrong, is that project number one will include as a bundle the CTE building at Memorial High and the multi-purpose building at Memorial High and accordingly for the other two comprehensive high schools. >> Yes. >> And that will go out ultimately to bid as a architectural contract. >> Yes. Uh we would uh recommend in this recommendation it would be uh one architectural firm for that group of projects. >> Okay. And then on the next slide project bucket number two has all of

100the projects included in the RFQ or the call for bids on this one. It will also be an architectural project to start and it could be the case >> that the winner of project number one and project number two is the same firm. It's possible. Yeah. >> Um the the only thing is I would like to point out that the green one, the HBAC upgrades, we already have design documents for that project. >> So, um we could possibly well, we should pull it out because we would save money on the design costs and then just give a contract to the the firm that uh designed that project for the rest of the work. >> And those Hback projects really belong to the in-house project manager. But this is an idea that Mr. Ruben Travin put

101together. Uh that's why we like to have a project manager that could assist us if this is a a good layout, a good plan to for architects and engineers or if they have a other ideas that we could consider. Uh but for now, this is a starting point also for us and the board and everyone to to see how the the the jobs could be uh divided by different architects and engineers. Thank you for >> Yes sir. Okay, no further questions. That concludes my presentation. >> Thank you, Miss Garcia. >> Thank you. Thank you. >> Item 7C3 discussion. >> Do we have I apologize. Um given the changes we re do we have to approve the bond over committee charter? >> It's not an action item. That's a report regarding >> but legal counsel I

102mean we would need to bring it back and we could if you'd like I could Would you like for me to bring it back as an action item? >> Well, maybe we do it when we approve the new matrix in late July >> and the names as well. >> We'll bring with a matrix along with the names and the >> and those names will be vetted before that meeting. >> Hopefully we'll have them before >> which which names? >> Committee members. >> Oh, okay. Yes, we should. That's sufficient time. >> Give it to Chief. >> And just to clarify, you said you need our deadline is what date to give you the names. >> Um >> as soon as possible. >> As soon as either June or [laughter] July. >> Okay. >> June or July.

103>> But if we have to wait till vote on this at the end of July, we do. >> Is it? Yeah. Or can or do we need to actually vote on creation of the oversight? >> You you can we don't need to, but if it's a preference of the board, we can. There's no reason why we >> I wouldn't I would prefer if we don't need to legally vote on it to create it and everyone's agreed with the language with the changes that Erica Oh no, sorry, President suggested. I would prefer we just go ahead and create it because I know the community is waiting for it. >> But if we need to actually have a formal vote, >> Mr. Do we need a formal vote? >> Rather see it that way. Personally, would it

104be would it be terminal to the committee if there wasn't a board vote? No, it wouldn't. But for me, I'd rather see the board action myself. So, we could potentially go forward with the oversight committee and then formalize it in a future vote. >> Of course. >> What do you all think about that? >> Formalize the charter and everything that goes with it. You can definitely start with putting it together. >> But what's the objective? >> Objective just to get it up and running because well, I don't know about you, but I've been asked multiple times when's the oversight committee when when you all take action, why hasn't it been started yet? >> So, I know the community is out there >> wanting it. >> And so, the further delays, the more they think we're

105trying not to create it. >> That's my only thinking. I don't think one month really makes that big a difference in things. >> It's just more to show that it is moving forward. >> Well, I mean, I think the delay is only because the district is closed for a month. So, I think I would rather it be approved the same as our matrix. >> Okay. >> And then by then we have a vetted list of community members. That's correct. Then we'll bring in the late July meeting al together. >> Okay. >> Yes. Okay. >> Any other questions or comments? >> Okay. Item 7 C3, discussion and possible action of the Macallen Independent School District May and June budget amendment for fiscal year beginning July 1, 2025 and ending June 30th, 2026. Dr. Guutz. >> Yes.

106We recommend approval of the May and June 2026 budget amendment for the 20 2526 fiscal year. Miss Lorina Garcia, deputy superintendent for business and operations will present more details and we're recommending action on this item. >> Um, this is a routine uh year-end amendment and uh most of the added revenue you see on there is TRS on behalf which is recorded both as a revenue and an expenditure. In addition to that, we did re renew the uh summary of finance using the fifth six weeks information and that's where you see uh the larger part of the revenue coming from the state. In we also on the expenditure side uh for the health insurance remember that we uh were anticipating a $1.2 million shortfall for uh the end of uh 2526. Um so we are making

107an amendment for that. Uh also the 600,000 that was mentioned for the SHs, we are also amending for that. Um athletics, uh we're amending their budget by 325,000. Um and then on the debt service side, that's a separate uh amendment. Uh it does reflect 950,000 of existing debt aotment which was under the home hold harmless and that information we get from the summary finances from TEA. Uh the other thing is the uh leases and uh the SSBas which is the I'm sorry I escaped my mind the but I have it on here uh information technology agreements subscriptionbased information technology agreements um uh Gatsby pronouncement requires that we record it both as an asset and as as a liability so you see that on the amendment. Um, any questions on any of the transactions? >> This

108is an action item. >> Uh, I do just have one question. I want to make sure I'm understanding here. Um, so my read of this, uh, slide one of the amendment is the fund balanced um, was began the year at 152 million and it's slated to end the year at 118 million. Is that correct? >> Yes, sir. >> With the major driver of that being the maintenance tax note payment that we paid this year. >> Yes. >> Okay. Thank you. >> This is for action. >> I move to approve the Macallen Independent School District May and June budget amendment for the general fund debt service and capital projects fund for fiscal year beginning July 1st, 2025 and ending June 30th, 2026. >> Second. >> I have a motion by trusty Hadad and I have a

109second by Trusty Pñena. All in favor? I I >> All opposed. Motion carries 70. >> Item [snorts] 7 C4. Discussion and possible action on the compensation plan for school year 2026 2027. Dr. Guthus. >> Yes. As per board policy DEA local, the superintendent shall recommend an annual compensation plan for all district employees. The compensation plan may include wage and salary structures, stipens, benefits, and incentives. Administration is recommending a general pay increase for all employees for the 2627 school year. Dr. Albert canales our chief human resources officer will have more information and administration is recommending action on this item and I believe we've gone through this for six budget workshops. So >> sir that's correct. >> Anything you want to add Dr. Canalis? >> No just um we do look at a $1,000 raise for teachers

110and then you look at the uh 1% for administrators and a 3% uh for uh all auxiliary staff. The the 1.5% is how much? >> It comes out to $1,000. So the teachers now are getting the uh thousand plus they're getting their increase of the hospital a lotment money as well. Okay. So if you look on that screen right there, it'll kind of tell you there. So if you're a one to two year teacher, it's a thousand. So we're taking the minimum from 553 to 55,000 uh for new teachers starting uh to 56,000, sorry. And then if you look at it up there, you have the 1,00 for one to two year teachers. Uh three years it is the uh 1940 by 1,000 is funded local and the 940 is through the house bill. And

111then you look at the four years same that's $1,000. And then when you get to the fiveyear it's 3500 which is 2500 to cover the other 2500 that was given before and that'll take another thousand as well. So it'll be 3500. If excuse me if House Bill two does not carry over into the next b state bienium are we does this compensation plan obligate us to continue that increase or where does that put us in the next school year? >> As far as I know it doesn't. So we're hoping that when they meet uh this coming year that they're looking at increases but as far as I know we're not we don't keep on increasing. Uh it's just for these for these two years. Um, thank you Dr. Canales for the work here. I would

112just like to confirm that the teacher equity pay adjustments that were presented to us on May 27th um the list of positions are indeed accounted for in this compensation plan. >> Yes, sir. >> Thank you for confirming that. >> Madam President, I have um I have a lot. So, um I asked for everybody's grace with with this. I've been putting together some numbers for a while based on all of our meetings um and compiling our budgets from the last three years that we've been elected. Um I want to thank the staff and the administration for the work in preparing this budget. If you'll allow me the grace to read, my per menopause brain is not the best in the summer, but I keep taking these notes to help me remind myself. I know these decisions

113that we have tonight are not easy. I appreciate the effort to balance the needs of our district while remaining fiscally responsible. However, as I have previously mentioned, I'd like to offer an amendment to the proposed compensation plan. Rather than the recommended 1.5 increase for teachers at a cost of approximately 4.2 million. I move that we approve a 2% salary increase for teachers, the same 3% salary increase for support staff, our bus drivers, janitors, maintenance, crossing guards, and a 1% salary increase for administrators at a total cost of 5.8 million. The difference between the recommended proposed budget tonight and my proposal is 1.6 million. Our Mallen ISD employees are the backbone of this district. Every achievement we celebrate, every student success story, every academic gain, every championship, every scholarship, and every graduation that we all celebrated

114this month begins with the dedicated work of our serving of the people serving our students every day. Since I was elected in 2023, this board has demonstrated that when our priorities require it, we find the solutions. For the 232 24 school year, newly elected, we approved a budget of approximately 266 million. Yet actual expenditures that year totaled approximately 273. We were led to believe by prior administration that there we were only in a 5 million deficit. But when Dr. Guutieres and Miss Garcia came on board, we saw that that true number was closer to 24.5 million deficit. And I attribute all of the financial success that we have had over the last three years to the work of our finance department and what they have achieved under both Dr. Gutierrez and Miss Garcia's leadership. In

1152425, we approved a budget of approximately 253 million. Yet our actual expenditures totaled approximately 279 with a deficiency of 4.5 million. 2526, we approved a budget of 279 million while actual expenditures reached approximately 320 million that we just saw with a $2.2 million deficiency, even accounting for the onetime defe. actual spending still significantly exceeded our adopted budget. A lot of which was due to cuts from the fed in the state, which we can assume will continue as we've seen almost a million almost a million dollar cut in the child nutrition program. The point is that not that we should spend irresponsibly. The point is that this district and this board has repeatedly demonstrated an ability to manage through budget amendments and address financial realities when we when they arise. If we have ways to cover

116expenditures beyond our adopted budget in recent years, then I have faith that we can find a way to invest an additional 1.6 million in the people who directly impact our student success every day. Macallen ISD remains in the stronger position than many districts across Texas across our state. We are not discussing campus closures. We are not imple implementing reductions in force. Through attrition, we've already reduced approximately 66 positions, creating opportunities for savings moving forward. I'd also like to point out the overwhelming support our community recently demonstrated through the approval of the $335 million bond. While bond funds cannot be used for salaries, this will allow our district to address many of our facility and capital improvement needs through the bond process rather than relying solely on our maintenance and operational funds. As these projects move

117forward, we should continue looking for those savings and opportunities to redirect the operational savings to our most valuable asset, our people. We Mckllen ISD are the largest employee in the city of Mckllen by almost more than a thousand people. Our community sent a clear message when they approved this bond. They believe in Mckllen ISD. They believe in investing in our future. And now we have an opportunity to invest in the people who make that future possible. every single day. This amendment also creates accountability for the administration and for us this board. By setting a higher compensation target, we challenge ourselves to continue to identify efficiencies and savings throughout the year while protecting our classrooms. As trustees, we often speak about recruiting and retaining the best employees, but the reality is compensation matters, appreciation matters, and

118demonstrating through action that we value our employees matters. When neighboring districts are facing difficult cuts, campus closures, and staffing reductions, which we've all read about in the headlines, Macallen ISD has the opportunity to distinguish ourselves as a district that prioritizes our employees. Tonight, we have an opportunity to make that statement about our priorities. I believe our teachers deserve 2%. Much more if it was up to us. I believe that our support staff deserve 3%. And I believe our administrators can lead by example with 1%. And I believe that Macau ISD is financially capable of making this investment. We've all heard the saying that a house does not make a home, but the people that are in it. Same goes here. Our buildings don't educate our children. Our people do. And our community just approved 335

119million to invest in our facilities. Tonight, I ask that we make a stronger investment in the teachers and the staff who bring those facilities to life. For those reasons, I respectfully move to approve this amended compensation for the 2% for teachers, 3% for staff, and 1% for administrators. >> I will second that. I have a motion by trustee Salope Lopez and a second by trustee. >> I would like uh >> any discussion? Yeah. >> Um Trusty Dearza, I couldn't agree more with everything you said and I believe our teachers deserve a 35% raise. >> Absolutely. >> Um I do have concerns because a $1.6 million is not a one-year hit. It's a pay raise. It's a structural deficit and we're already at 2.9 million structural deficit. Is that fair to so we'd be going 5

120point whatever it's $5 million structural deficit that we're going to have to make up next year. And if our enrollment continues declining that might become a $6.7 million deficit next year. That's one major concern. I mean that is my major concern about the pay raise. >> If enrollment declines, sorry, if enrollment declines, we know that that means more loss of positions through attrition. So it doesn't necessarily remain a same cost, a flat cost if we're losing students. >> And Miss Garcia, this year the maintenance t notes, maintenance tax notes, we're essentially using the interest earned to make those payments this year. >> Yes. Will that be available next year? >> No, we will have to uh pay the approximately 2 million out of uh 199 general fund. >> So that's another 2 million >> debt.

121>> And then we also have about 2 million that we're setting aside reserving for the health plan. >> Yes. >> Because that's in a deficit. >> So we're looking at, you know, five, six, seven, eight, nine, $9 million potential structural deficit without any changes going into next year. Uh I would like to recommend something before you all take a vote. Um it's my obligation to inform you that we have already uh done all the required postings based on the budget that was built and presented. We've had our public hearing and you know all of the legal requirements that we've met. Uh if uh you all would like to raise the teachers uh salary uh by an additional half a percent which is approximately another $500. we could come back in August and amend this budget

122uh to that way it's cleaner on a legal financial uh uh way otherwise I would like a little bit of time if if you are going to amend this budget today I would like a little bit of time to speak to Kevin O'Hanland staff just to make sure uh because since we've already gone like it's just the timing of this is the last uh presentation on the budget and we've already uh set set everything. So, but a an amendment would accomplish the same thing as well and that's 100% acceptable. We've done that in the past. >> I think it may be through a motion to amend it. And >> I can amend my motion to say that the increase would be done at a later date in August as an amendment. >> Yeah. Right. Because

123the the the teachers will not see this race until their September check. >> So, it would be give us some time, >> but to make it more cleaner. Yeah. To to be able to work with those uh this coming weeks >> that's the way the board wants to go. John, >> I mean, just to take into consideration, I mean, we've seen and I mean, I see it and and just grocery costs. I mean, there's been what we have right now 4% as of um April inflation rate half of that half a percent of that was just since May because we've seen the increase in gasoline and energy cost um you know and that half percent makes makes a difference for families and it's not like it's a one-time retention payment that we do in Christmas

124and maybe that's something that we reconsider and we don't do that but I think that our teachers and our staff need relief now and they need it consistently their paychecks, not just $500 at Christmas. Um, so that's something I think did really something down the road after we had a public hearing based on a budget that was posted public and do something to give them so they speak in favor of one way. So that's really >> John. Uh the board has to vote on the budget tonight because we have a deadline June 30th with a with the understanding of a possible amendment. Is that >> sure it I wouldn't be comfortable with the amendment right now given that we've already gone through the publishing of everything that we've done. We put everything up um in

125terms of having the meeting. If they would like to bring this up, as you said, as a budget amendment down the road and say we want to amend it so that we can change it, I think that that's something that we could do later the way that you were talking about it. Um is is it >> Yeah, I I'm just I'm concerned about >> is it possible or allowable to if I may ask to uh discuss this in close session. Is it possible that so that we can double check what we can do as far as our next steps? >> We can take a few minutes to talk in executive to Mr. O'Han and kind of get >> some guidance from him, then we can certainly come back out and see. So long as we

126have uh O'Han's blessing that >> the posting and everything is good to go. >> God bless everybody. Do whatever you want to do in terms of voting. That's the only Tap the brakes on for a second >> so we can >> So we have a motion right now on the floor and a second. So do we >> resend the motion and table it? >> Sure. Just to resend it and then we can >> I resend my motion and just second um and table the item till after clos. >> Okay. Um item 7 C5 discussion and possible action. >> Would this also go with the table >> that would go together? >> Do we need to vote on the move to table? >> No, because No, she resended her motion. She rescended it. So we're fine.

127>> Okay. >> So then to table, do we need to vote though? >> Yeah. To table it, you would. But she resend if she resended a motion. Then I move to table. >> I second her motion to table item seven C4 >> five four >> four and five >> and five >> five is directly read. >> Okay. So just to clarify trust are also moving to table 7c5. >> 7c4 and 7c5. >> Okay. >> And then a second trust. >> Yep. >> All in favor. >> All opposed. Motion to table carries 70. So that takes us to item 7 C6. Discussion and possible action on approval of an order authorizing the issuance by the Macallen Independent School District of its unlimited tax school building bonds series 2026 levying a continuing direct annual ad advorum tax

128for the payment of the bonds. delegating the authority to the board president and the superintendent to execute certain documents relating to the sale of the bonds and providing an effective date. Dr. Guthis. >> Yes. Uh voters in Mallen ISD approved the district's 335 million bond program in May. Administration recommends that the board of trustees adopt an order authorizing the issuance of Mallen Independent School District of its unlimited tax school building bonds series 2026 pursuant to delegated sale. Mr. Mattley, our bond council with Nordon Rose Fulbright is available for questions and I believe Mr. Madley's in on screen. Uh we're recommending action on this item. But Mr. Lee, is there would you like to uh add to this item for the board before the board takes a vote on it? >> We're happy to. Can you

129hear me? >> Yes, sir. >> All right. I hope it's not too loud. Um happy to answer any questions on this. Um the the purpose of the parameters order is what we called it is that for larger [clears throat] issuers, larger districts that have um you know in this case we're proposing to issue $100 million. So under chapter 1371 of the government code, it authorizes the district to uh go into the market when the time is right. And so it allows the board to authorize the issuance of the bonds that the voters approved um within certain parameters. So the board will meet tonight. They consider this order that's before them and is authorizing the issuance of a of the bonds that will be sold at a later date. Um I think we're projecting sometime in

130August. And so the parameters that the board will set are found on page three within section one of the document. And it basically says you know our pricing officers who the superintendent and the board president at a later date you are authorized to complete the sale of these bonds but you cannot exceed $100 million uh which is the first installment or trunch of the voted authorization. We have a max maturity in there and we have an interest rate that we cannot exceed. So these are each uh each of those parameters are something that your financial advisors and your finance staff and the superintendent will be monitoring closely as property values come in at the end of July and as we monitor market conditions going into the point where we're going to sell bonds and they'll

131use that to size the bonds uh whenever we do go out to the market in August. Um the order does a lot of different things. Um there's a whole packet of documents that are behind it, but the order itself, as you read through all 48 or so sections that are in it, it authorizes, you know, various agreements, etc. You probably notice that there's some blanks in there. That's all perfectly acceptable. Uh we won't know uh the information to fill in those blanks until we price the bonds at a later date. And so at that point in time, the superintendent and the president are authorized to complete this document called the approval certificate which is basically the blanks that are in the order. It's all the finance terms that we'll know on the sale date. So

132it's like a three-page document. It puts in the parties that are involved with the transaction. It puts in the par amounts, the debt service schedule, uh the dates, things like that. And it it basically confirms in it that we're issuing the bonds for 95 million which is less than the 100 million that we're authorized. We are you know the match maturity on this bond is within the parameters set by the board and so on. So, uh that document will allow us to complete the pricing of the bonds and that uh approval certificate will allow us to complete uh the order at the time we sell the bonds um and every other document that's that's ancillary to the order and then our firm is bond council. We take that document that document package to the attorney

133general just as we've done with all all the other bonds that the the district is issued. Um, I guess I'll stop there. I think I've kind of rambled just a little bit. So, happy to answer any questions on the order itself, the process, and I know your financial advisor in the audience as well to the extent you have any questions on uh the amount or the timing of the bond sale. >> Mr. Lee, I just have one question. You said we can or the working with our financial advisors uh will determine the size of the bond uh issuance. However, the order does limit it to 100 million. Is that correct? >> That is correct. And so, I don't want to get too technical or or steal your financial advisor's thunder on it. Um, what you

134know, if the bonds were sold today, we it wouldn't be 100 million par amount. It would probably be something closer to 95, but there would be premium generated on the sale. And so, what that does is it gets you a $100 million for your construction fun. And so the par amount of 95 plus the premium that we're going to allocate to the construction fund, you'll have $100 million in your bank account in the construction fund and that'll be counted against your voted authorization. So in no event will either of those either the PAR amount or the construction fund deposit exceed the $100 million that's in that first parameter on page three of the order. >> Thank you. >> Yes, sir. Any other questions? >> This this um item is for action. >> I move to

135adopt an order authorizing the issuance of Macallen Independent School District of its unlimited tax school building bond series 2026 pursuant to a delegated sale. Second. >> I have a motion by trusty and a second by trustee Ria. All in favor? I >> I. >> All opposed. Motion carries 70. >> Thank you, Mr. Lee, >> thank you all. >> Thank you. >> Item 7 C7, discussion and possible action on competitive sealed proposal number 2027 100004, Doroththia Brown Middle School community track parking lot project. Dr. Gutes, >> administration solicited competitive seal proposals for the community track parking lot project at Dortha Brown Middle School. Mr. Mr. Ruben Trevino, executive director for facilities and maintenance and operations is available to answer questions. Administration is recommending action on this item. >> Um discussion >> anybody have any >> I

136think we all saw that right. So, I move to approve the ranking for selection of general contractor for competitive sealed build uh proposal number 2027-104a brown middle school community track parking lot project. >> Second. >> Have a motion by trusta and a second by trusty cardion. All in favor? I >> I. >> All opposed. Motion carries 6. Madam President, I move to approve that administration begin with negotiations with the highest ranked contractor. If the district is unable to negotiate a satisfactory contract with selected contractor, the district shall formally end in writing and negotiations with that contractor and proceed to the next contractor in the order of the selection ranking until a contract is reached or all proposals are rejected. >> Have a motion by trusted and a second by >> second. >> Trusty Pena. All

137in favor? >> I. All opposed. Motion carries 70. >> Madame President, I move to authorize the superintendent to execute a contract in accordance with the procedure set out in Texas government code section 2269.254 once contractor negotiations have been successfully achieved. >> I'll second. >> I retract my second. >> Second by trustee and a motion by trusted. All in favor? I >> I. >> All opposed. Motion carries 70. Item 7 C8, discussion and possible action on request for qualifications number 2026-1039 bond underwriting services. Dr. Gutis. >> Yes. Administration solicited qualifications for bond underwriting services. Mr. Hoy Garcia, our chief financial officer is available to answer any questions. Administration is recommending action on this item. Before we vote, um I would ask administration because I had some questions based on the fact that four are tied for

138one the various. Can you just for the public's knowledge provide kind of an overview of how this pool would work if we approve it as presented? >> Mr. Marian, >> good evening madam president, trustees. Dr. Gutierz, member of the audience. An Mayanes with TRB uh Capital Markets Estosa U. Yes, the district worked on underwriting pool and these underwriters ultimately are the ones that will go out to the market the and actually sell your bonds to investors. So even though you have a tie of of of I think four underwriters on there, we are projecting to use four underwriters uh for this uh first trunch of 100 million. The reason for that is we work in syndicates or groups. And what that allows you to do is pretty much have a wider wider net of investors

139uh potentially bidding on on your bonds. So you have different companies with different networks, different investors. U that's going to bring more investors in hopefully bring down the interest rate that we ultimately receive when we price your bonds. >> Thank you. And it was y'all's recommendation to include the 75 points and above. Is that correct? >> Correct. and it's a pull ultimately what what has occurred in the last five years um and and really beyond that um there has been some restrictions by the attorney general here in Texas um to ban certain companies to do work in Texas. Um so what we've seen is some some companies have actually that have done underwriting in the past have been banned from doing underwriting here in Texas or um they just completely leave the industry of underwriting.

140So having this this pool of about 15 allows us gives us flexibility because we are going to sell this within uh four tranches within the next four to five years uh for the school district. So that provides us that flexibility in case there is any restrictions that any of these participate. >> So this pool would be in effect for the life of the bond or how does that >> correct for the life of the bond? Yes. >> And that's advisable. >> Yes. >> Okay. Anybody else have any other questions? >> I think you answered mine. I move to approve request for qualifications number 2026-1039 bond underwriting services and approve the firms listed on the attached as qualified vendors for the duration of the 2026 bond program which is currently anticipated be to be through 2031.

141Second. >> I have a motion by trusty and a second by trusted. All in favor? I. >> All opposed. Motion carries 70. Thank you, Mr. Thank you. >> Okay. Item 7D, board of trustees items 71, discussion and possible action to approve board of education meeting minutes for the special board meeting June 2nd, 2026. Dr. Guthas, >> motion to approve this for the minutes. >> I move to approve. >> I second. >> Okay. I have a motion by trustee and a second by trustee Kion. All in favor? I. All opposed. Motion carries. 70. >> Okay. We are at now at item eight, recess to close session. The board of trustees may go into close session pursuant into sections 551.071, 551.072, 551.074, 551.076, and 551.089 of the Texas government code to discuss to discuss the following. A

142discussion of human resources recommendations for the school year 2025 2026. B discussion of human resources recommendations for the school year 2026 2027. C. Discussion of human resources employee resignations and retirees for school year 2025 2026. D. Discussion of the recommendation for the director of employee benefits and safety risk management department for 2026 2027 school year. E. Discussion of the recommendation for the principal of Dr. Bob Lopeettes Elementary for the 2027 I'm sorry 2026 2027 school year. F. Discussion regarding school safety and security FA 2023-2026 District safety and security audit report. G pending and or potential litigation and H possible real estate acquisition. We are now in close. >> What do you have to list that we make that we will reach out to council regarding the budget? >> Thank you, Trusty Hadad. Uh and based

143on the previous motions, we will also be discussing in close session item >> C4, >> 7C4, 7C5. >> Item 7C4 and 7C5. And at 7:39 p.m. we are recessed to closed. It is 9:06 p.m. and we are reconvened in open session. We'll be returning to item 7c4 discussion and possible action on compensation plan for the school year 2026 2027. Dr. Dietetis. >> Yes. As for board policy uh DEA local, the superintendent shall recommend an annual compensation plan for all district employees. The compensation plan may include wage and salary structures, stipens, benefits, and incentives. Administration is recommending a general pay increase for all employees for the 2627 school year. Administration is recommending action on this item. >> Madam Chair, I move that we approve a 2% salary increase for teachers, a 3% salary increase for support

144staff, and a 1% salary increase for administrators at a total cost of approximately 5.8 million. The difference recommendation and this proposal is approximately 1.6 million. >> I have a motion by trustee dear Lopez. Is there a second? >> I'll second a motion by Dear Sopes and second by Trusty Pñena. >> Uh Madame President. Yeah, I'd like to just make a statement here. Um I really appreciate the analysis that you've done. I think we are uh as I said at the end of the last budget workshop in a relatively strong position as a district compared to others across the state. Um it is also the case that we uh have as initially proposed a pay increase for all staff. Um that I am currently comfortable dipping into fund balance to access and to make real for

145this time. I have reservations about increasing the um fund balance access for an additional increase um without clarity for how we will make that sustainable in the long term. And so while now I am not in favor of your amended motion, I can get to that place, if I could see over the course of the next month, the next six weeks, the next eight weeks, some plan that would show how through a reduction through attrition, we may be able to make up the difference of that additional cost in a way that does not encumber the district for the long term. Um, then I could probably get to a place where I could support that. I love the idea. I love the thinking that you put into this. I love the way that you have sparked

146this conversation among us as a way of showing to our staff and our team um, our appreciation. I'm just trying to balance that with the fiduciary responsibility of tight budgets in public school districts and an anticipation that there will likely not be any calvaryary coming out of Austin this year in terms of significant increases to public funding for the future. >> You guys have discussion? >> I I would Yes. Um, as always, Trusty Garion, you're so eloquent and you said it perfectly my thoughts. So, I would like to echo what you just said and I would also like to get clarity from administration. If we did do the 2% sometime in the future, would that 2% pay increase automatically increase the adjustments that we were considering for counselors and librarians? Um, does that include instructional

147I'm going off my memory. I didn't have my iPad. Um, >> we probably have to increase the whole list that was on there. >> It would it would just automatically increase as well. >> Yes. >> Okay. But just sorry, I had a question, but um I echo Trusty Karol's uh points. >> Anybody else? >> Um I also appreciate um the spirit and the thought behind the motion. I think that we all to be able to do more. Um, to trust's points as well, I would like to see a concrete plan with measurables so that we can know that when we make these decisions, we're doing so responsibly. Um, but I'm more than happy to reconsider my thoughts uh in a couple of weeks when we have that plan and I think that an amendment would

148serve that purpose, right? I think that we also need to discuss or at least make known that, you know, trying to get there and give more, which everybody across the board, not just our school board, but every board in the state of Texas right now is trying to do, might mean that we have to tighten our belts come Christmas time, come the future, you know, maybe no raises next here. Um, so you know, I think this entire board is in agreement that everybody works hard. We want to be able to give everybody raises and however or wherever we end up tonight. We'll do our best, but we have to keep in mind that if nothing's coming back to us from the state, we will have to continue to at some point it might be unknown.

149you know, we won't be able to do an increase this year or for the next year or two or three years. So, um I just want to make sure that um everybody knows that we're trying our best. And thank you to the staff. I know running numbers off the cuff like that sometimes, you know, it's hard, but y'all do so much good work and we appreciate that work as well. >> I just had one question. Um you had mentioned that um may have answered this already, but if we were to do the 2% um we would go from 92 to 90 essentially with with our fund balance. Is that correct? >> Um if we were to do the one and a half% was the 92 >> 92, right? Okay. >> So it would be lower

150than that. >> Sure. >> Thank you. Um echoing what everybody here says, I do support the the 2% as it stands right now. I think that administration has done an incredible job. superintendent has done a great job with where we're at uh with what we've done so far. I know that we're going to get to a point where we're, you know, right now it may seem tough because you're trimming, trimming, trimming, but hey, you've done it before and we trust you. Uh this is a great board. We're going to get there as well. Um so, I just want to thank everybody and our staff and if I don't see you guys, I hope you guys have an amazing summer. Thank you. >> I think it's time to vote. >> Okay, there's a motion on the

151floor. by Trusty Laropez and a second by Trusty Pñena. All in favor say I. >> I. Believe that's three eyes. All opposed. >> I >> to four. Motion fails or does not pass. Uh >> Mr. President, I'd like to make a motion to approve the compensation plan as presented for the 2627 school year. >> Okay. And is there a second? >> Second. Have a motion by trusty Gion and a second by trusty Hadad uh to approve the motion as uh as presented by administration. All in favor? >> I I all opposed. Motion carries 70. That takes us to item 7 C5, discussion and possible action of the adoption of the Macallen Independent School District budget for fiscal year beginning July 1, 2026 and ending June 30th, 2027. Dr. Viaz. >> Yes. The Texas Education Code

152and Board Policy CE requires every local education agency to prepare a budget of anticipated expenditures and revenues on or before June the 19th. The budget shall be approved by Macallen Independent School District's Board of Trustees no later than June 30th. Miss Lorena Garcia, Deputy Superintendent for Business and Operations will has already reported on the 2627 budget and we are recommending action on this item. Is there anything you want to add? Uh, Miss Garcia, >> no, sir. >> Okay. >> Um, I move to approve and adopt the accelerated instruction funds budget of $196,517 for fiscal year beginning July 1st, 2026 and ending June 30th, 2020. >> Is there a second? >> Second. I have a motion by trusted red and a second by trusty hidot. All in favor say I. >> I. >> All opposed. Motion

153carries 70. >> And this is a two-part motion. Madam President, I move to approve and adopt um a move for approval and adoption of the general fund budget of 275,245,960 and the debt service fund budget of 12,677,845 for a total budget of 287,923,85 fiscal year beginning July 1st, 2026 and ending June 30th, 2027. >> Is there a second? >> Second. Seconded by Trustee Graion and a motion by Trusty Reetta. All in favor? >> I. All opposed. Motion carries. 70. That takes us now to item number nine. Oh, I'm sorry. Item 10. >> Action on items in close session 10A. Discussion and possible action of the human resources recommendations for the school year 2025 2026. Dr. Good. Yes. >> Human resources submitted a list of recommendations for the 2526 uh school year under separate cover for

154discussion during close session. >> Um do we need a motion on this? >> Yes. >> Move to approve. >> A second. >> Motion by Trusty Pñena, second by trustee card. All in favor? >> All opposed? Motion carries 70. >> 10B. Discussion and possible action of human resources recommendations for the school year 2026 2027. Human Resources submitted a list of recommendations for the 2627 school year under shepherd cover for discussion during close session. We recommend action on this side. Move >> to approve. >> Motion by trusta, second by trusty pñena. All in favor say I. I. >> All opposed. Motion carries. 70. Uh 10 C. Discussion of human resources employee resignations and retirees for school year 2025 2026. Um, human resources submitted a list of resignations and retirees for the 2526 school year on a separate

155cover for discussion during close session. And this item is for information purposes only. >> Item 10D, discussion and possible action on the recommendation of the director of employee benefits and safety risk management department for the 2026 2027 school year. Dr. >> Administration is recommending Miss Karina Perez as director of employee benefits and safety and risk management. Motion to approve uh superintendent's recommendation for director of employee benefits and safety risk management for the 2026 2027 school year. Second >> motion by trusty Hadad and seconded by Trusty. All in favor? I. >> All opposed. Motion carries 70. Congratulations, Miss Bettis. >> Um she's watching. >> Item 10E discussion and possible action of recommendation for the principal at Dr. Pablo Pedis Elementary for 2026 2027 school year. >> Administration is recommending Miss Jennifer Alanise Lopez as principal at

156Dr. Pablo Perez Elementary for the 2627 school year >> to approve. >> Second. >> A motion by trustee deagal Lopez and a second by trustee. >> I think there's >> okay trusty pñena. All in favor? >> I didn't go for it. Uh motion carries 70. Congratulations, Miss Lopez. >> Uh 10F, discussion regarding school safety and security. 10 FA 2023 2026 district safety and security audit report. >> 10 G pending or possible litigation. >> 10 H possible real estate acquisition >> and uh takes us to 11 adjournment. Is there a motion? >> Move to second. >> Motion by Trusty Guard and second by Trusty. All in favor? >> I And motion carries. We are adjourned at 9:19 p.m. >> Thank you.