April 9, 2025 FPS School Board Meeting

001Sorry everyone. Uh we're a little bit late. Um good good afternoon everyone and welcome to the board of education meeting for uh April 9th, 2025. Um we the meeting has been properly hosted. We have um we have a rollout. Wow. I get it. Dr. is excused for this evening. Mrs. Makowski here. Mrs. Yank here. Mr. Sprag here. Dr. Beer here. Mrs. Serski here. That concludes the Thank you. Um, can we stand for the pledge of allegiance, please? I pledge allegiance to the flag of the United States of America and to the republic for which it stands. One nation under God, indivisible, with liberty and justice for all. I'm looking for a motion to approve the agenda. Second. Motion was made by Mrs. Wowski, seconded by Mrs. Seperski. All in favor? I opposed. Motion carries. Thank

002you. Friends of Franklin recognition, Mr. Bondar, please. All right. I just wanted to recognize I just want to recognize Hillary Ford. Um, basically when I started in Franklin, for those of you that don't know, I'm Alex. I'm now a teacher at Franklin High School. When I started at Franklin 12 years ago, it was a lot of me putting my boots in the door at local businesses and Hiller Ford was very accommodating right away. What can we do to help you? And it was usually me going with how can I help you? So, at this point, um, I just wanted to recognize all the things that they've done over the past 12 years. Um, I've got a whole list of things here. So, some of the things currently and formerly employing many students. Um these may

003be in positions like detail and lot attendance, part department, getting into lube technicians or an automotive technician itself. They've also sponsored quite a few students through the um MATC asset and Ford asset program which is getting the students Ford credentials as they leave MATC gets them what they put in the door kind of taken off running right away when they start their career. Uh they also supply great tuition reimbursement to the students which is a huge benefit. um they've supplied us vehicles, equipment either through donation or even just lending us specialty tools. So some of the tools that's difficult for me with a high school budget to be able to get, they lent me those tools on a short on a short term when I needed them, uh which is a huge help to us.

004Um other things as well, they help out with our tire disposal. So when students do tires, there is a disposal fee usually about $5 per tire that we need to take care of. We don't do enough volume to actually get a pickup set up. Um, but Hiller Ford has been great where they just said, "We'll take all of your tires, building and grounds, takes them over to Hiller Ford, they take care of the disposal for us, which is great. Um, they also send over people to come talk with students about just any career within the automotive industry. It doesn't just need to be a mechanic or a technician. anything within that because I mean they've got anything under the sun whether it's an accountant salesman whatever it may be so they came and talked to

005my students about different career opportunities within the automotive industry u when I've had difficulties diagnosing issues with students on some vehicles they've been a helping hand for us whether it's giving them a phone call hey here's the issue we have they've helped us out with that with talking with technicians they've even sent technicians in to the school to show the students here's how I would go about diagnosing this problem, which is great with them seeing an actual technician come in and here's what we're doing. And what was kind of cool is like we've done all these checks already and those are the same checks that they went to. So it's it's showing like hey the stuff we're doing in class is pertinent to what you're doing off your career as well. Um so these are

006all just things that I wanted to recognize with Pillar Ford over the past 12 years. Um they have been an invaluable asset for us. They're invaluable in the community and they're honestly the biggest help to my program. Cool. Thank you very much. We are really happy to be partnering with Franklin and it's been great and the students that we've got to meet through the program have been wonderful too. So yes, thank you to Alex for connecting us with all these things. Thank you. Thank you very much. You need to have a picture. Nobody leaves without a picture. Thank you. Awesome. Thank you so much. Thank you very much. Thank you. Thank you very much. Those are the types of program these are the types of programs that are so invaluable to our students. Um so

007we really appreciate the community helping out. So thank you very much. All right. Uh community comment. Um we have three teachers who wish to comment. Um and um so I will call you up in no particular order. Three minutes, please. Oh, you got it. Okay, Jonathan Schaefer. Good evening. My name is Jonathan Schaer and I'm the social studies teacher at the high school. First, I want to congratulate Mr. Sprag, Miss Larson on their re-election to the school board. I understand that insurance is a huge cost to the district and so each year requires a new search uh for ways to continue to provide the insurance and benefits that many of us utilize at a price the school district is able to make work. As you work on making these very important decisions, I wanted to

008share some uh some thoughts on how those decisions could impact teachers at an individual level. Last week, the FHS representatives on the Better Place to Work Task Force shared uh with us some of the rough numbers that are being considered for possible salary increases and insurance changes for next year. I fully realize that none of these numbers are finalized yet. However, the proposals worry me. Based on the numbers provided by the Better Place to Work task force, I'm anticipating my salary to increase by roughly $1,000 for next school year. Many of the new insurance options would see our premiums go up hundreds, if not thousands of dollars. If that ends up happening, even with that salary increase, I could see up to $5,000 less in my bank account at the end of next year as

009a result of those newly increased premiums cutting uh coming out of my paychecks. This means that after four years of working in the district, I could effectively be getting a large pay cut. Last year, uh, last year when I attended the board meetings that discussed salaries and insurance, one of the points brought up as contributing to our high health insurance costs were the number of people using plan one, the low deductible plan. I don't remember the exact numbers, but essentially having too many people on plan one that were generally healthy, uh, and therefore did not need such extensive coverage was draining money from the district. I fully admit that I was one of those healthy people who selected plan one. But I would like to share a personal story to illustrate that healthy people may

010have some very valid reasons for making that selection. For the last two school years, my wife and I have been on health plan one with the hopes that it would uh better help cover our costs when we had a baby. Unfortunately, we have not been able to get pregnant yet. But as we continue on our family's journey, the prospect of our insurance premiums going up, so much adds more stress to an already uncertain time. Others have their own unique stories that inform their healthcare decisions. And ultimately, we choose the piece of mind that comes with uh comes from the more robust insurance coverage option. I'm proud to be a teacher at Franklin High School and hope to be working in the district for many more years. But seeing those potential uh these potential changes being

011discussed that could lead to me losing out on thousands of dollars in wages is scary. I'm also worried that there are exceptional FPS employees who will leave the district if those changes are implemented. I'm hoping there are other options we can look into. One idea is to consider pooling uh with other districts to help spread and reduce insurance costs while also keeping premiums lower. That way, we could reduce the district's costs, maintain a similar version of the coverage we have now, and still retain all those amazing staff that FPS is known for. Thank you for your time. Thank you. All the dryer, please. Good evening. I know shocker that I'm here. I'm here to ask one simple question. Why? Why, when it is incredibly difficult to find quality educators, would you consider increasing the cost

012of premiums by as much as 100% and/or raise our deductible by thousands and then offer many of us a salary increase of 1.74%. Yes, Mr. Cromy will tell you that it is a 3.5 3.45% increase, but that again is an aggregate amount. If you did not receive your master's degree or move up to the next five-year level, you receive a little more than 1.7%. I was also wondering if a 35 plus year contract or column will be added to the contract as there are a few of us that have put in that many years of service to Franklin Public Schools. Last year, when this ridiculously unfair salary schedule was imposed, we were promised that it would be revisited this school year. Has this been done? Why am I or any other elective or special ed

013teacher making $2,200 less than a core teacher or specialist? You compare median salaries from neighboring districts, but you don't even account for the fact median salaries for these two area areas are lower because these teachers either leave the profession entirely or they district top to receive higher salaries, thus the lower median. Educators should not be broken into categories. Some of us are not less valuable than others. We are teachers. We come to work every day to help the students of Franklin Public Schools. Perhaps Franklin needs a DOE, a DOF, Department of Franklin efficiency. Perhaps we should take a look at the high number of people working in our schools that have very little daily interaction with students. Why do we need so many coaches, system specialists, and administrators when times are tough? When I began

014my teaching career 34 years ago, there were three people working in the district office, which was located in the large office in the front part of Countrydale Elementary School. Now, we have an entire building full of administrative staff that continues to increase in number every year. We are perfectly willing as educators to talk about reasonable increases to premiums and/or deductibles, but so far we have been left out of the conversation except for the better place to work committee. And there are three high school representatives on that committee. In fact, the road show that we have had last year to educate the staff about the nine options you will be shown tonight has not even been scheduled. So much for a better place to work. Please consider how these changes could impact teacher retention and negatively

015impact the learning of our amazing kids. Thank you, Mary Carol, please. I was joining. Thank you. All right. Those are all the people that signed up. Does anybody else wish to speak? All right. Thank you. Uh, all right. Let's move on to the consent agenda. I'm looking for a motion to approve the consent agenda. I'd like to remove the contract from that to make a motion. We're not going to be voting on one whether I I can hold it or not. Sorry. All right. Linda would like to Do we need to have a second to pull something from the consent agenda? I don't think we do. All right. Um, so I move to approve the consent agenda saved for the CISA contract. Motion's made by Dr. Beer, seconded by Mrs. Larson. All in favor? I

016opposed. Motion carries. Uh, and uh, the CISA contract. Um, Linda, you have something to say? Yes, I do. Um I I don't believe it's appropriate that we would have a contract as part of the consent agenda and um that's why I pulled it. Maybe we're going to have a contract. We should we should be just pulling rolling everything else. We should look at it and make a decision and vote on it separately. So that said, I make a motion to approve the season contract as it was presented. Second. Motion was made by Mrs. Wakowski, seconded by Dr. Beer. Any further discussion? All in favor? I I opposed. Motion carries. Thank you. Uh schoolboard calendar uh key communicators meeting coming up Tuesday, April 15th at Forest Park Middle School at 5:00 pm. Regular board of education

017meeting on Wednesday, April 23rd at the ECC at 6 o'clock. and also uh May 7th um on Wednesday um at the ECC at six o'clock. And the Franklin uh public schools business partner breakfast will be Tuesday, April 29th, 2025 at Ascension uh South Ascension Southeast Wisconsin Hospital, Franklin Campus um at 7:30 a.m. Um district administrator update. Um, you see the flowers on Dr. Bennon's desk. She has uh recently finished uh or is doing some edits, but she has been conferred her doctorate. Um, congratulations, Dr. Bennon. Um, it's a great great honor and we're proud to have you here. Congratulations. Thank you. I appreciate that. Um, so a couple fun things tonight to update us on before we have an agenda with a lot of busy items to talk about, heavy items to talk about. Uh,

018an exciting category, the 2025 Herp Cole Education Foundation teacher fellows were announced just this week. There's 100 teacher fellows in the state. We have been fortunate to have three from Franklin High School. Pat Gane is one of them and he's with us here tonight. So, thank you for being with us, Pat. Grace Bar, our transition 18 to 21 year program leader was another of our uh award winners and also Andy Lavine and I never know if I say his last name right so I apologize if I didn't but he's one of our Thank you. I went back and forth and I appreciate that. Um I'm often Benine so I understand that it's important to try to get names right. Uh so he's a social studies teacher at the high school. So, great honor and recognition

019for our amazing staff at our high schools, especially this year. Uh, so they are recipients of a $6,000 scholarship. Uh, and this scholarship program has been in the state for many years. Uh, so very exciting for us. Uh, last week we had a math night at Forest Park Middle School. So, we want to thank our partners, Mathnasium. We had a 30% increase in the attendance of students with their parents. Uh there were 10 stations to work through, a lot of hands-on math. It was really exciting to see them engaged and then they could turn in a card at the end, win a prize uh for coming out. So it was a great attendance. Uh President Spray, Andy Comey, and I were able to represent the school district and the school board at the joint committee

020on finance at State Fair Park last Friday. Uh they are holding four full day sessions across the state as they are working to identify what the next banual budget will be. So, we spoke on behalf of three areas that we continue to send letters and talk with our legislators about. And those areas are supporting funding for schools so we can better support and retain financially our teachers, um, which what we also heard here tonight. Uh, looking at increased funding reimbursement for special education. We are asking for 60%, that's below 35% right now. Um, and also additional financial support for our career and technical education fields. Uh so there's two more sessions and then we hope that a bannual budget comes out in the next couple months. Um but we hear it may be delayed so

021we will find out. Um our recent newsletters have shared how our FHS child development 2 course is holding Saber preschool for children aged 3 to five uh for three weeks at the beginning of April. So registration still open or through the 17th for families that are interested. Also, as we move into April, a couple exciting events coming up for the Franklin Education Foundation. This Saturday at Forest Park is the consignment sale, one of their bigger fundraisers. Uh the fall pickle ball tournament was a hit, so they're running another pickle ball tournament that is Saturday, April 26th. In addition, they are selling the yard signs for our graduating seniors and soon to be promoted eighth graders. Uh those orders are needed by April 11th, so coming up relatively quick. Forte Theater, also our local partner theater

022company, has their second weekend of their main stage production, The Secret Garden at the Saber Center for Performing Arts. Tickets are still available. It's appropriate for all ages, so we can bring anybody out. And then just a reminder to our families, not that our students usually need the reminder, but we do not have school on Friday, April 18th, and Monday, April 21st. Monday, April 21st is our final professional development day for staff. That's all. Any questions, please let me know. Thank you. Uh reports, presentations, and other board business. Uh Franklin Forward update, Dr. Bennon and Mike Hacker, please. All right. So, we Mike and I Mike Hacker and I are excited to be here tonight to talk about uh Franklin Forward Update. So, as we talked about in January, we will quarterly bring a bigger

023report to the board of just the progress on the work that's taking place with the referendum. Um, our team's obviously meeting on a weekly basis with our consultants, continuing through the process. So, when we were here in January, um, we talked a bit about just getting the committee together, the teams together, getting our meetings on the schedule, kind of organizing the work. Uh, we'll have a continuation of that discussion this evening. So the overview of what we're going to talk about, the biggest things going on the last couple months have been around feedback, right? It takes time in a community this size to gain feedback from a variety of stakeholders. So we'll have some outcomes of that feedback. Um beginning to look at budget. Obviously, we're not breaking ground yet. We're not at bid bid

024package, but we'll talk a little bit about what that looks like at this point in time. Uh capital improvement. What are the referendum projects most immediate coming up? and then also how we've continued to work to build partnership with uh the city of Franklin. Uh we'll always ground in the coherence plan, right? Everything that we're doing is about the three-year coherence plan that we're in our first year. This is the third three-year plan. It's exciting to repeat that as a district that's strategically planning and continuously improving. I think when we look at specifically the coherence plan tonight, we're really looking at the engagement category. A lot of the work the last couple months has been to try to continually um engage different stakeholders, get creative about how we're bringing in different perspectives um and getting

025that feedback to P and to CD Smith as they're working through the design. I think also what you'll hear more about is in the well-being category. Um some of that feedback will come in around safety, college life and career readiness and then obviously fiscal stewardship um is always going to be a part of the backbone of the work going on. When we were together in January, we talked about and shared the design and budget process. And this has been something that's helped me at ground and how does this work go because you have a past referendum referendum and the community and staff and students excited about the growth and you want to go right away. But it's kind of like a hurry up and wait type piece. There's a lot of work that goes into

026it um and a lot of time. So when we were together at that point, we talked about this orange space and this diagram being that schematic design. It's really when we're bringing in a lot of different feedback. We are talking about different ideas. Those drawings that we saw when we were going to referendum and doing listening sessions were the boxes. Now we're starting to look at like do those boxes fit within the budget that we have. Do does that box or those boxes start to fit the needs that we have and how are we getting to more detail within that design. The next phase is the design phase which we're really close to, right? And I would have hoped maybe we would have had some of that tonight already. Uh but we don't have the

027design phase, right? And an example kind of a design phase would be a little bit of what you're seeing in the boards around the room from the CIRC building. We had that groundbreaking today. It's more the specific detail of what's inside um and how is it meeting those needs. We're getting closer to that. We're going to definitely have that by um our next quarterly check-in July 9th, if not before. Uh but we're not quite there yet. Um, I think the exciting part of that is that as we've talked and thought about ideas and brought in different perspectives, uh, P, our architects have been able to put more detail and specificity to potentially what's in those boxes, right? Which gives CD Smith then more to go with when they're going out to vendors or they're going

028out to get ideas of what cost would be. Very different than bid. are not bidding out yet, but we're trying to get as close in our cost estimates at this point going into design phase so that we know through this three to four year build that we're appropriately aligning those funds. So that's kind of the point where we're at right now is that arrows move slightly in the orange box closer to design. Um, but right now it's in CD Smith's hands, taking some of what we've looked at in the design and starting to get costing out to say, does this still fit within those parameters we have of the 140 or 120 millionish for the high school um or not yet. So then we get into the feedback. This has been a lot of work

029for Mark Grunsky and and Chad CFKA and pulling together the the stakeholder feedback from the Qualric survey that was sent out through our newsletters, our different publications, um, and some of the feedback that we've gained by meeting with others. So, we've had over 485 responses. Um, the graph on the screen looks slightly different than the one in the print. It's the same box as the box on the right in the print in front of you. It just moved to the left to make it on one screen. Um but 485 responses from a variety of stakeholders, community members, alumni, students from Forest Park and from the high school since our Forest Park students will be some of the first to take in the new spaces at the high school. Um and then also parents. The questions

030are on this slide, but we'll talk a little more about those as we get into the feedback. So when we're using Qualric and people can put in comments, you get a lot of words, right? It's a very big qualitative study as someone who's just been sitting in qualitative study, right? You're you're starting to look for themes. So Mark Gronky is our data wizard behind the scene who's looking and reading through those and starting to pull those codes or those themes together. And when we look at on the next slides the feedback, you're going to see bigger circles. You can actually go back one J's clicking. Thank you. Um bigger circles means that theme came up more often. um if they get a little smaller, it came up less often. Like usually on the slides, you're

031seeing anywhere from the top five to 10 themes that came through. The coloring is really important to note, too. It's AI generated, right? So, it's not perfect. Um when it says very negative, I really want to define what very negative it is is. It doesn't mean there were angry people giving angry comments. What it means when there's red, that reddish color or that kind of the color close to red uh pinkish is that the comments were around that theme but maybe in a we need more space like this or more of this or we have some of it or it doesn't exist yet but it's something we're looking for. So red means we need to add it or we need to build upon. Green means it's there and it's something that we're really proud of

032already or really um visible already in the spaces that we have. So that's just kind of coding us for the next slides. So our first group we are going to look at is our community alum and non-alum. So basically community members, they don't fall into the family category. Um and the question we were asking them is what ways do you find the most pride in Franklin Public Schools? Right? right? They're going to have a little different perspective because they are maybe choosing when they're in our schools. Maybe it's the rec department, maybe it's going to the performing arts center, maybe it's a grandchild they're going to see, but they're not directly tied to families or students that are here right now. Um, what I what I note in these, and everybody's going to look at

033it and see it a little different, but we're building a building, right? But it's what goes on in that building that's really important. And I think that's the voice that we're starting to hear through the stakeholder feedback. It's not I want this many stations or I need this equipment in the autos lab. It's we need these spaces because we have high standards because we want to progress in the work we're doing. Athletics have been important, right? It's one of those bigger circles. We need the space to accommodate that. Um that we've had a strong student focus, right? There's a lot of green there. We need to continue building with that in mind. Um I think that's encouraging to see from our community. The next slide goes into um our parent feedback themes. So there's two

034questions that we asked our parents. So the first was in the top box, what does being college or career ready mean to you? Having that being one of our specific um strategic priority areas in our coherence plan. Uh it's why we wanted that to come through in the feedback. Also, the second question we asked is basically envisioning what that perfect day looks like for a student at Franklin High School. What does it feel like? what are those interactions um and what what's going on in that space. So again those top themes are shown the bigger circles are the more repeated themes that are coming through um and I think again it's that what's happening in the space is really the important piece. So some of the things that have happened already when we are in

035the core planning team room is we're often talking about um the learning is that's taking place, the challenges that are going on. But then when we flip to the next slide and you now combine this with the student perspective, you're starting to see like where are those spaces that students are identifying this is happening. Um so the bottom box is Forest Park, right? They're coming from across the way. a high school is what they're experiencing currently at the high school. We see some overlap and what spaces and what that feel looks like. Um, and I think what st what stands out and comes out in our core planning team meetings are the commons is a really big circle, right? And if you've been in the high school, that space is busy with students before the

036day starts, at the end of the day, throughout the day. Uh, library, same thing. But it's giving that space where they're coming together, they're working together, and collaborating. We're thinking about that when we're in the schematic phase right now of design of how can we continue to design spaces like that in the addition of the high school or the renovation of the high school where there's other spaces that students can come together um that staff can think about where are our students going out to work and coming back in. Um and so bringing together some of that feedback and the middle school students uh they have that breakout room experience right where we don't really have we have some breakout rooms at the high school right that math space is probably the best example so

037then what that brings to our core team planning meetings is incorporating that with staff feedback and thinking about where else do we want some of those breakout spaces right we've heard some from I know just in conversations I've had I think beginning of the year with world language in particular like how do we have spaces too where we I've been in um Paula's classroom where kids are going out the hall and doing activities. It's like where can we build spaces that um students can go and be independent or be in a small group and kind of start that gradual release in their learning. Um the next slide about is a student feedback slide in regards to pride. So what is the best thing about being a saber? Um I think some of the excitement in

038here is the the people, right? So continuing to have the right people in the space like we may think as we design and get to design phase and referendum work. This doesn't really help with that design but it does right we want to make sure there's opportunity where the flow of students and staff through the building means that we're having those interactions and those opportunities. We want to make sure that we're incorporating in the rooms that are being affected by the renovation or the new building that we're really especially getting that staff feedback there for what helps for your teaching um taking place in those spaces. And then we have a board member insight. So a number of you did videos and I figured you probably didn't want your video showing tonight. Uh so instead,

039Chad and I worked to pull together some of those bigger themes that were coming just from the board table who's been a part of a lot of the learning through the years through different referendums and the continuing forward work. Um and I think that the words that really stood out here as I thought about this was and look through it is being top-notch, meeting the needs of what our our staff, our students, our families, our community are looking for. um making community, creating space for community really seem to come through. Um and then that safety accessibility piece on top of the the learning pathways and increasing those spaces. So, where does that all go from here? We have a couple videos from students that I think just give some good voice to it also that

040we'll play in a minute um and see how the volume comes through. I know we're having some tech glitches this evening that we have repair orders out for, but um where this goes from here is like I said, the core team has looked at this a number of times already to incorporate into our conversations through schematic design. Um and then also handing that directly over to our architects, to our construction company, the P and CD Smith, uh to make sure that they're continuing to think about and be able to explain and articulate where this is coming through in design because they have the expertise. They've been in a lot of schools. Um, they have the education in that design phase to know what that can look like. So, if we can try to play a

041couple of stupid videos. I'm hearing though. We'll see how it works. When I'm at for Sorry. When I'm at Forest Park Middle School, the most productive area for me to learn is in the back of the hallway in the breakout rooms because they're really quiet and they have whiteboards on the wall and I'm the most productive when I have a whiteboard to write on. When I'm at FHS, the most productive area for me to learn is in the north and upper garments. I really like these two spaces because of the comfortable seating as well as the privacy that students are able to get from people traveling in the hallways. I understand that not all classrooms are able to work in these two areas, but it is an opportunity and a treat to be able to

042work in either area. I enjoy these two areas because I'm able to walk in and get my work done, as well as be able to sit more comfortably rather than on a desk chair. My favorite part about being a Saber is being able to get to know staff members and teachers as well as my classmates and who eventually will become my friends. I enjoy going to Franklin because of all the opportunities we are offered. Whether it's through taking rigorous and challenging classes or joining clubs and activities that will help enrich our resume for college and get us more involved within the community. Being a part of national honor society or even organizing big community events such as culture fest as a part of being in multicultural club are super important not only as a student

043but eventually as a person in the real world. So they had the option of doing a video or just voice. So obviously we had a couple that were just voice. Um some next steps or other steps that have happened with stakeholders specific to staff in the building that have their classrooms that are going to be either renovated or completely rebuilt. Um in December was a first round of initial feedback uh where group sat with P um and really again architect firm to really talk about what does that space look like? What do they dream it to look like? had some site visits at that time also to see what it looks like in other districts. Uh Dr. Mo has started working with a group of high school administrators and other staff to talk about like

044what is model high school. So if you have this opportunity to make some renovations to a school, how are we really thinking about how do we brand that? What is that student experience when they walk through the door the first time to when they walk out the door um the last time? And in March, we started to engage with uh work around looking at the equipment that we have in our CTE spaces um and asking for our educators help on that. Obviously, they're using that equipment. So, what do we currently have? What do we aspire to have? And we hope to partner that with um different companies and businesses in our area to understand what equipment do we need as we continue to grow. Um and then April's a second round of feedback that starts

045I think it started last week already if I remember correctly through the month mostly on the 21st to talk with different groups of um educators in our spaces that are being renovated to talk about where are we currently at from the last round of feedback get some initial looks at that nearing the end of schematic phase uh not at design yet not at final but thoughts and feedback um at this round and then May slashjune is when we're hoping to have that design phase work um to share out. The goal is really to not moving too fast that we're not taking the time it needs to be looked at, but also would really like to have all that in front of the high school staff to know what that's going to look like at least

046at this point um before they leave for the summer um and understand what it what's going to look different when we come back um in August. So, budget update. I've done a lot of talking. I'm going to let our owners rep Mike Hacker talk a little bit about where are we currently at with the budgeting? What do those bid packages look like? because that's obviously when the biggest uh expenses and things start to come through with the project. Yeah. So, as was noted, Mike Hacker with Cadence Consulting. Good to see everyone. Um, as was noted earlier, we're kind of coming to the end of schematic design on our timeline and transitioning into design development. And at those gates, we are uh formally going through a process to recost estimate the project in its current state.

047And as you might imagine, as design evolves, that budget just evolves into greater and greater detail. Okay. And so, uh, we're in the process of of those SD drawings, um, kind of been having been handed off to CDSmith. They've been meeting with subcontractors, uh, with a lot of their vendors. Not getting bids yet, but starting to get some realtime cost estimates. And as we all track headlines, right, there's a lot of volatility out there right now around current costs for materials and and kind of lead times to get products. And so they're doing everything they can to have their finger on the pulse of that so that as we're uh making decisions, we're as accurately representing what they believe the budget is uh at any point along the way. And so that's an ongoing process.

048Um in that as as noted, you know, when we think about budgeting, it's really how do we how does the district want to allocate these resources, right? So it's really an exercise of prioritization. So feedback like we're getting, although some of that seems soft or big picture and from parents and students and and board members, it it's critical to be sure uh it's reinforcing the decisions that are made, right? As as we're looking to allocate those resources and apply them to areas of the building. Every square foot is a dollar amount, right? So as we allocate square footage for common spaces or break rooms, that means it may not be able to be allocated somewhere else. And so feedback like that not the only reference point but a really important added layer to be sure

049uh the team that's been charged with giving direction and making those decisions is getting as much feedback as possible. So um I really valued that as another layer of information to support the team's dialogue and and reinforce the work that that is going on. And the hope is to keep building on that as we get further and further into into the project. And then as the architects prepare to present uh to the board and to the community what the vision uh looks like and what these spaces are shaped like uh it will be through the the lens of this voice, right? What they heard here, how that aligns with the original project goals, how that reinforces the coherence plan and all all those pieces. And so uh really important as we layer that into the

050to the budget process. And so we have structured budget uh uh dates on our master schedule and you see that in the first bullet point here. April, June, August, September, January. A project of this complexity has a lot going on simultaneously. Right? So, we are are uh going to have uh right now scheduled three bid packages for a project of this size, which just means we're designing um uh for a project that has this duration, it is advantageous to bid portions of it as soon as possible while we're continuing to design other pieces down the line. So, for instance, the first bid package will focus on uh site work and uh maybe some uh footings and foundations for the building, right? things that uh were going to take multiple months to start demo and start

051moving earth and and uh uh you know setting foundations in those multiple months the team can continue to design other portions of the building right so these these layers start to overlap one another uh and as we're doing that the CD Smith team is charged as construction manager to continue to provide budget updates so every decision that is made uh as uh the the team has options to pick path A or path B are cost evaluating those two paths. So, we're layering that in to this. And as you uh might imagine, we kind of think of it as up front the really big puzzle pieces, right? The big blocks of space, the adjacencies, uh what's near the front door versus what's further back, right? The the big decisions. And then as those lock in, those

052decisions become uh smaller and smaller. Not in not in priority, very important decisions, but they become more granular, right? all the way down to the doors and the locks and the windows and if there are blinds on the windows or not and like all the details, but if we don't have the rooms in the right spot, it's kind of irrelevant if we have blinds on the windows or not, right? Big picture. So, really important to be prioritizing those decisions up front. And so, um uh so this process will continue to evolve. uh we have within the overall uh budget when we say budget obviously there's a referendum budget which includes uh both uh phases of work so the core work at the high school which is the big piece that probably comes to mind first

053and foremost the next slide here in a second we're going to talk a little bit about the capital improvement projects which are critical district-wide investments there are soft costs so we think of construction costs which are bricks and mortar that's going to be what see uh you know when the project's done, but there are a lot of costs that go into getting those that bricks and mortar in place, right? Architectural services, plan approval fees, we're going to have permit fees and inspection fee, all the things that it takes to to get this done. That's a separate section in the budget model where we're we're gathering those as that information is coming forth and we know enough to get insurance quotes and get furniture quotes and so we keep layering that in as as more detail

054is provided. So uh that's um uh building itself as this information comes. Right now we have three contingency buckets. That's generally a question we get is is um you know is there a contingency? How is a contingency managed? In a project like this we think of contingency really as our our tool to manage risk, financial risk to the project, right? So if surprises come up or there's a big cost increase for steel or something and we have to find a way to to afford that as a part of the project. uh the district has an estimating contingency, a construction contingency, and a soft cost contingency all built into different portions of the budget model. Okay? So estimating is just uh you know today we we know uh a lot, right? But we don't know every

055detail, right? We don't know every door handle and whether it blinds or not. So we have to make a lot of assumptions still. It's all included in there, but there a lot of assumptions. As we have fewer and fewer assumptions, that contingency can get reallocated, right? there's less risk, if that makes sense. Okay. The construction contingency is a a pool of money that is maintained over the course of construction. So, that's for things that come up during the construction process. We had bad soils or open a wall and there's a pipe we didn't know about, something like that that uh every project has it. It's just smart to have those dollars set aside and managed and and that is currently built within. And then lastly, a soft cost contingency, which just puts a uh a

056dollar amount aside to help manage all the soft costs that are part of the project uh as well. Okay. And then question I go ahead. Yeah. I'm I'm wondering um you talked about, you know, overall design and we saw those overall pictures and spaces. Has that changed at all as you're moving through? Is there anything I mean you talked about all these decisions being made? Is can you give an example of some of these decisions that are being made and and is that thing changing because we don't is it the same picture or you seeing things differently? Yeah. Yeah. No, it's it's a great question. It's it's certainly evolving. Yes. Uh so examples there being uh instead of just big blocks of space that say CTE or athletics, what you now would see in the

057detailed plans would be uh all of the specific rooms for CTE laid out, meaning woods, metals, autos, storage space to support those. And the dialogues that are occurring with staff now are looking critically at those spaces. Have we forgotten anything? Is it all there? Do we have the right adjacencies? like are the right rooms next to one another? You discover what's out of place or any new adjacencies or every day. Yeah. I mean that but that's design. That's not that's not a negative. That's just successful design is an evolution where you put all the information on paper, look at it, react, take that feedback, keep evolving it, keep reacting and and keep moving forward. So hopefully they are right. Hopefully the the staff is identifying things that we didn't think about. uh we are working

058to create continued strategies for how we get other voices to look at the same plans, right? Experts maybe from outside of the school and from from other industries to help us make sure we're we continue to identify as much as possible. So the plans certainly are evolving further. Um the balance in this is always that uh until there's a firm budget update which is in process it's difficult to say is everything accounted for within that accurately to represent what the project can afford right because as always you get into a project and we want to do as much as possible get as much into this project and and you know successfully complete this uh but to be do that appropriately we have to be sure we can afford all those things and that goes back

059to that prioritization. So if in fact uh something comes in a portion of the building comes in over budget today that's doesn't mean the project's over budget necessarily just means we have to continue to look at those priorities where do we have to refine some of those things what changes have to be made and that's just an evolution that's what's in process right now. Can you generally say what percent you're using for contingencies? Uh sure. Yeah. Uh right now the project uh has uh give me two seconds. So the yeah so right now if we were to as an example look at the estimating and construction contingency bucket that's sitting right around 8%. right now and that fluctuates. Again, the go on most projects when you get to construction on a project of this size,

060you want to be holding somewhere between five and 7%. Okay? And that just depends on the project and the complexity. And then the estimating contingency again uh continues to evolve depending on the uncertainty in the estimating market. Okay? So right now I think it's between 8 and 9% uh for those two as an example. I think construction is another percentage and just another Yep. Mike, we could break those out and and support that as a follow-up as as needed. Thank you. Yep. Uh and then lastly, we uh continue to look for opportunities for additional revenue sources. As always, like we had said, um I think at the first meeting, we have met with focus on energy uh to look at the CIP projects. Focus on energy has two separate programs. One for those types of

061projects, the other is for new build projects. So we have a meeting set up next week with focus energy to talk about the high school project and that'll be more significant uh financially as an opportunity. So again leveraging that and we'll continue to look for for additional opportunities where we see more uh more quantity of grant opportunities tend to come for in terms of equipment and how we outfit space than it is to build physical building. Right? So, I think there as we get further down the line looking at CT equipment or athletics equipment, I think we're going to continue to find more of those that will will bring forth as potential opportunities. Okay. Um the next item is a bit of a a forecast ahead of I think next month uh when Andy Daniels

062will be in front of the board presenting uh his department update and all the work that they're currently is underway as well as what they're planning in the year and years ahead. Uh the summer ahead though, there is a significant effort forthcoming related to the referendums open. So as we've noted, the project has the core high school work and then the CIP work districtwide. Right now this summer, uh almost $12 million worth of investment is planned uh for projects across the district out of the referendum. Okay? And I know that's always tough when when there's a large referendum and there's a lot of excitement around it, yet it takes a long time for it to materialize and start to see, you know, look like something. My high school still has a runway for that to

063come. Immediately this summer, we're going to start to see a lot of improvement at all the elementary schools districtwide. And those are going to be things like exterior doors, building envelope, which just means like tuck pointing and repairing cracks, maybe replacing some windows. Uh certainly roof repairs will be key. Uh there's going to be site improvements. Um both things like not fun things like dumpsters, right? Enclosures around dumpsters, but fun things like playgrounds and and uh recess areas. ADA upgrades at a number of schools will have interior finish updates as well as uh updates to mechanical, electrical, and plumbing systems across those buildings. So, uh, do note, uh, Andy Daniels plans to present a more robust detail of that at which schools and what the game plan is for that, but I wanted to tie

064that into this update that a significant piece of the referendum is coming and by the start of the next school year will be already in place for for the district. Uh, this is a uh just a quick glance at the pre-construction schedule. Mainly, I think the intent here is to uh share that one there is one and it's fairly detailed. There's a lot of things that go on uh between now and starting construction. So, this is as we look at the high school in particular, um a lot of uh approvals, a lot of reviews, a lot of collaboration that goes on to make a project like this come together with the level of complexity that it has. And so, what this looks to do is just take all those entities and put them on the

065same timeline just so we can be sure we're we're tracking. Uh this ties also to district calendar. So we look at start of school uh start of summer when we have windows of time that are are uh uh in terms of like staff engagement and and access to the buildings things like that. Um but I think one of the the key pieces is where we transition next which is is the engagement with the city. So a project of this size has a lot of uh approvals relative to plan commission and and uh you know common council review. uh we're going to have permitting that's got to happen as a part of a project. Um uh so what uh we wanted to cue up was just the fact that the the district has now engaged now

066regularly with the city and uh officials at at the city level, department level to start to begin that collaboration. So Annie, I'll turn it over to you. Sure. Yeah, it's a great segue. So, the the pre-construction schedule you're seeing, uh, like we talked about last meeting in my district administrator update, we had at that point our first meeting with the city. Um, and it was kind of what are you talking about with the city to start out? Well, really, it's these two slides. It's what u Mr. Packer just went through as far as that timeline and construction pre-construction piece to be really forthcoming and the city also with us to understand um what what are the timelines we're hoping to hit because that our goal with that is to advance the conversation with the city

067to understand okay now let's layer in one of your planning meetings, planning commission, one of your city council meetings. What do you need for those meetings so that we know that target and we can do our best to to get a bullseye on that target, right? to bring everything we need to those meetings so that we are keeping on schedule with the work that we're making the best use of uh our taxpayer dollars in this referendum. So this is the construction pre-construction I'm sorry schedule that we shared with the city. The next slide is really just the main people that are at those city meetings. So these are happening uh monthly at the beginning of the month. can meet tomorrow for the second time um with this group just to continue to talk about like

068I said those schedules, what are their sky schedules coming up um and them sharing what are what are the forms they need for just all of our planning that we're doing, what they need bringing forward. So just starting those conversations. Um the next slide talks about our topics of collaboration. So the items that will be on those agendas starting tomorrow and moving forward are the access drive at High View Road. Um so that's a road that just kind of butts up to the property uh school property on the east side at this point. So what is that going to look like to connect that? Having all of those conversations. There's conservation easements on the land. Um so talking about if we're disrupting something, what does that look like from the city's perspective on what we

069need to do? um local approvals, right? We just talked about what are what are the approvals they need. They're kind of in the process, the city of changing that system, too. And so, we're kind of in the middle of their process of changing it. So, that's going to take a lot of conversations to understand what's in the new system, what's in the old system. Uh it involves fire department will eventually be pulling in also as they're looking at uh safety aspects to the property. Anything else to add to that? No. spot of uh water pressure at fire hydrants, how we're getting, you know, water utilities to the building. A lot of uh where the district snow removal starts and stops. So, a lot of things that just in that collaboration come together out of those

070conversations which in the end lead to a successful project. Really important dialogue. So, that kind of gets us to our next step in the quarterly scheduled updates. July 9th would be our next update. Um if we have design phase work before then then I would propose we move it up to June 18th and have those plans in front of the board as as soon as we have them. Um so that would be kind of the next steps and and I guess soft permission to say if it's ready bring it bring it early and don't be set. I know we have some board members out on July 9th too. So June 18th I think we probably have every year and it could be advantageous. Any questions? So the first bids will go out roughly August, September.

071Is that the right now? That's the plan. Yeah, right now that's the plan. The team's still looking at the right targets. Um tariffs is a dialogue right now, a significant dialogue. They're looking closely at are there advantages to getting out ahead on some things, even pulling that forward a little bit further. Um the team is uh one of the benefits of having a construction manager on a project like this is that they are already planning the construction phasing. So they're thinking about where to fence where does the fencing go? How do we keep students safe for multiple school years as this this gets built? How do we get equipment on and off of this site where we have, you know, hundreds of cars coming on off, you know, hundreds of buses it feels like, but

072lots of buses coming on and off of that site, right? A lot's got to happen to keep everybody safe and successfully build that. So, as they're thinking about bid packages, as they're thinking about the design of the building, they're also very closely looking at how they're going to build it. And so, uh they um so that's a part of the the layer there, I think, as well, Mike, is that they're um assessing August is the current target for the first bid package. There may be a potential earlier one, but we'll know a little bit more about that as we get down the line. Perhaps also, and maybe this is maybe Mr. Daniels could help with this as well. There's um we're doing $12 million roughly of work this summer. Um I'm guessing a lot of

073that is going to be done um through the district rather than through CD Smith and is that um what kind of cost savings are we seeing from that? Yeah, I can start with that, Andy, and then you can feel free to continue if you like. So, uh right now that 11.7 million that's proposed for this summer is all going through the district directly. So none of that scope is going through um the architects or the construction managers. Um that was a strategic decision up front uh by the district was to look closely at what scope could the the department manage without hiring additional consultants to support and and oversee. And there are certain projects like replacing a roof or you know updating some windows that you don't necessarily need an architectural set of drawings for.

074And we have vendors already repairing roofs every year. So, we already have folks that we work with regularly. Um, so Andy and I have have uh in a couple categories looked at creating some RFPs so that he can go to multiple vendors and and look at strategies for how best to to align those with um not overwhelming his team, which will be a part of what's coming up next month is how do you manage this much more work on top of what we already are doing, which is a real thing we got to keep an eye on. Um, so what's proposed here is is all through the district. None of this will be through P or uh CD Smith, but as we look forward, there is some scope that will. So, there's some bathroom renovations

075and there's some site work that we have asked uh P to take a look at because it will need an architectural stamp, but that's not within this this core scope. So, so um yeah, we are definitely seeing some savings, but I don't want to make it sound like CD Smith was going to like blow some numbers or anything like that, right? Um but working with like our roofing consultants that we've already had a partnership with that also guides us to competitively bid out roofing. Um we saw a lot of um contractors show up for like pre-bids, submit proposals. Um and I saw significant savings in just roofing alone. Um again those monies will be redirected back into other projects. I have seen a few projects come back a little over bid right um lighting specifically

076at Robinwood. Um so hopefully at the end of this all those dollars will shift to the appropriate places. We'll likely be able to see um some additional projects get done. Um for example, we were targeting those priority one um projects from the facility study. I'm hoping that maybe we'll be able to use some of those funds to start getting some priority two done out of that facility study. Or if we see that we maybe need some additional funds to do some of the great things at the high school, maybe it goes there. That's that we'll we'll know more about that later on. Um, but you know, we've even we've even revisited cost packages and cost labor costs and things like that with our partners that we've already established good relationships with, right? So, a good

077example of that would be um our mechanical contractor. They did surveys for us. They gave us a lot of data around our mechanical systems. So, I didn't want to shut the door on them and have somebody buy out that those projects because they were going to come in low. So, we sat down um Hacker and I sat down with them um had them reook at their labor rates, look at their purchasing programs, um use some of our purchasing programs. So, that's coming in as a very positive number as well. Um but again, there will there will be some some that comes back low and some that's, you know, not so good. And, you know, at the end of it, I think we're going to be in a really good spot. And you'll see some of

078that. I'll share that at my my update. Um but you know really when we get to about 2028 we're really going to know where we land. So yeah, there has been some scope, Mike, just to um at the high school in particular where it was determined that the team felt it be most advantageous to the district to include it in the CD Smith scope, meaning like some flooring and some ceilings that were CIP bucketed things, but it seemed like if we bid them all by themselves versus bid them with all the ceilings, we're going to get a far better cost per square foot for ceilings if it's a part of a much bigger package, right? So, um, that's been very line by line strategy around what should go into which bucket, who's going to manage

079that, and so tracking that very, very closely. So, if you recall, there's $21.9 million for CIP. Um, at the end of the day, we're looking to manage around 17 million of that. The rest of that went back to the CD Smith bucket, not just for the efficiency of doing some of the same work. That is definitely a key factor. But the other factor is at the end of the day when I walk through that high school, I don't want to see like the ceilings I did clashing with the ceilings they did or the flooring that I did clashing with the flooring that they did. Like I want that to be seamless as we walk through the high school so that we don't necessarily fill that older section of the building versus the newer sections. So

080that was another strategy of why we turned some of that over to CD Smith and P. So thanks. Anybody else have questions, comments? All right. Thank you very much. Thank you. Technology reports, please. Good evening. Uh this year's technology report, um I'm going to just highlight a few things. I know you have some things in front of you that you had to preview. Um many of the things kind of stay static, if you will, from year to year. So, I thought I would spend some time on some um two areas that we've been really focusing on this current school year as it relates to technology. Um so, keeping in mind that technology um does both the I call it the nuts and bolts, the technical aspect of it, and then the instructional uh side of

081the house. So going to start with the to the nuts on both side. Uh as we think about uh some of the changes that you're currently seeing, we've been spending a lot of time this year uh re-evaluating our cyber security plans and looking at some of those things as um ever going I just for an example saw yesterday a new word quishing which is about QR code fishing basically and using QR codes to take you to places that you shouldn't as an example. So um some of our work this year as we think about good cyber security plans everything from um you know kind of your network and layers and and some of those technical aspects to user training um to try to mitigate and minimize some of those um users clicking on things that

082hopefully they don't click on. Um as well as um something that I highlighted in our plan you taking that also to the next level uh and that is we don't have a cyber security expert in house. we would never be able to afford to hire someone in a in a school district in that way. Um but we were fortunate enough um Mr. Cromy and I uh to write a grant that was through the state uh to get us some funding to help add that another extra layer um which is called manage detection of the services and response. And so what that does is um working with a company we selected Arctic Ruo similar to a corral strike if you've heard of them and Sentinel One and some other companies. And what they'll be able to

083do is continue to watch our log files, analyze our network, give us feedback. But what I'm most excited about is they have cyber security experts on that we'll get to meet with on a regular basis to help build our strategies and our planning. That's part of that process. Can you just repeat what that area of focus was that we got with the grant? It was some term that I wasn't familiar with. Yeah, manage detection and response. Thank you. And so super excited about that. They can help us do like our instant response plan. So if you do have a fishing attack, how do you respond? If you have a malware, how do you respond? If you have a ransomware, how do you respond? But they'll also work with us on on the the proactive side.

084What can we do to harden our systems, our network, our uh situations to hopefully never be in those situation um where you have a ransomware attack on your network. So that's something we've been spending a lot of time on. um with that uh related to that are that's helped us move forward. We had two retirements also in our uh our department and so having some a new dynamic in our team too to help uh bring in some people who have a little bit different background and expertise um and experience with some of that to help us build that cyber security awareness. So that's something we've been um spending a lot of time on and we'll continue to. It's not going to go away. It's one of those things that's going to be forever changing and

085just trying to stay ahead of the next new thing that's out there that might create risks for us as a as a system. And the second thing I want to highlight um from the report is another hot topic in the industry, AI. And so as we talk about the instructional side of the house and as AI continues to evolve, I shared with you guys last year that we started some work around developing some staff and student guidelines and what that might look like um as it relates to AI and embracing that AI is not going to go away. And so how can we leverage that in the instructional space? Uh so our current um AI team is looking at building some my other um ideas and ways that we can start looking at how can

086we um implement that in an instructional way um with some strate strategy to that. So not just throwing students in AI tools, we know they're using them anyway, right outside of class. Um but how can we teach them about the best uses of them, how to use them, how to leverage them? I I like to equate it to we taught students how to use a calculator. They still are okay with math, right? We've taught them how to use the internet and search things correctly and AI I think is just that next generation of tool that we need to to embrace and uh work toward how we can u use that and leverage that in instruction. So that's some of the work what we're doing um on the instructional side um as we go forward. And

087with that I'm going to just highlight those two things but and oh well I'll highlight one more thing. Um the five-year plan is also here in in that. And so the five-year plan is our hardware replacement cycle specifically uh the things that will be coming up in the next five years that will be ready for replacement. So not only just our traditional computer replacements and such. I I'll just highlight in the next year and a half or so. We'll be looking at Wi-Fi. Our Wi-Fi system is aging out and it won't be supported soon. So, that'll be something where we need to I'll be starting this fall like starting to revisit that with different vendors and start thinking about what that will look like and you'll see that in the in the plans in the

088next within the next two years. Any questions? Yes. I'm wondering um what about storage and our um record retention? I mean, we see all these emails and all this stuff. I mean, we talk about how big storage you got in the back room. Yes. So storage just a big deal as well. Um so legally we have to there's certain records retention laws that we have to follow and and retain for seven years um retaining every incoming outgoing email last some of those pieces. So right now we've not hit those limits. A lot of that email of course is in our Google ecosystem. Uh Google just recently within the last couple of years have now set an upper limit for school districts. Uh I think we're only at about maybe 30% of the total stories that

089are allowing us. So we're we're not there yet. So that's good. Um, and then also, uh, yes, we do have file server storage here as well for some of our older records and things that maybe are not in the Google ecosystem that we continue to manage and and maintain. And Google is no charge, right? It's just uh Google, there's different levels now of Google. So there's free Google and then there's a one cost of Google and another cost of Google and another cost of Google. So those have all changed over time as well especially since since co um so we are paying a a fee right now for our Google space. Thank you. Do we think there what what do we think costs might be for what AI would be going forward or do we

090do we have any idea is that is that too far away? I think it's a little bit too far away and I think it's you know I'm from my perspective and the group has been working on this is AI is just like another any other tool and so we have to decide what things we want to use the free version for if you will and what things we might want to use a paid version for. I think in the AI space um student safety and um safety of our information and data and what kids might put in there is really high. A lot of AI tools are now still standing 18 and older and and certain things like that. So from a data privacy and some of those pieces um walk I guess a little

091more cautiously for that some of those paid services then guarantee some of those things of copa and furpa and some of those other guarantees that we want with other student data privacy aspects. So those are some of the things we would be looking at. Um Google just came out with finally adding Gemini into that agreement space for free now for education which it hadn't been. It was going to be a paid for service. So some of those things are coming and evolving over time. So I think it's just a little too early to know, but also we have to make just like prioritizing everything else. Is this a space where we're going to decide to spend money on an application or a tool um for both keeping students safe and protecting that data piece and

092or because it does that so well. Um and I'm thinking more in terms of like the generative AI where like I said GBT where you're putting stuff in and getting things out. We're seeing across the board even um with our teaching and learning area. So our SAS new ELA curriculum is coming out with some AI embedded features within their curriculum digital curriculum materials. So we're kind of watching that. So those things are embedded all the time now and I think we're going to see that explode and how we leverage those as a a system that's yet to be determined. Thank you. Mary, please. So kind of dovtailing with what Mr. Schaefer said about pooling um resources. I mean, are we kind of on our own with Franklin and we have to budget and we have

093to just maintain our own or is it is there a way to collaborate and communicate and share costs with other districts or how does that work? Yeah, I think there's a couple of pieces that we have done some shared costs with currently. So our fiber infrastructure uh as I had shared previously that previous years um I can highlight again we're part of the uh weekends consortium group right and so sharing resources of fiber and connectivity and and some of those resources to give us that multiple uh ways in and out for our internet access and redundancy and some of those pieces. There's definitely more growth and opportunity I think there too as well as we continue to evolve and have some of those needs that might be shared services. Um also sharing some of the

094instructional side like and even cyber security kind of sharing some of those in planning pieces. Um we have we are fortunate in the state of Wisconsin to have the Wisconsin cyber security team which are all volunteers who have been trained. So if we have an incident, we can contact them and it's a pretty amazing process. Um having the opportunity to get to sit in on some of that is to IT specialists across throwing have you thought about this? Have you thought about this? Have you thought about this? Have you thought about this? These are some things you should consider, these are some things you could do now to mitigate maybe situation, but here are some things you could do in the future to try to harden your systems against those kinds of attacks in the

095future. So definitely a lot of human collaboration as well as um some of the other infrastructure pieces. I think just when I look at the five-year plan though is this like it I mean you just keep re we get this five years done and we just repeat because this is it stuff only lasts five years. So you just replace it all every five years or most things are done on an every five year basis when it comes to hardware. I would say that's an accurate statement. There's other things. This is um because some of this is fund 46 and this is really the hardware replacement pieces. There's going to be software and other um systems and tools that are not represented in this 5-year plan. So, this is mostly our hyper replacement cycle. If I

096can make something last more than five years, we will sometimes it's four years. You know, it really depends on um how fast things change, what our needs are, and how that equipment can handle the um things that we're needing it to do. And do costs go down as stuff gets smaller and faster and that doesn't seem to you just buy more of it. Yeah. I always feel like there's like you get more functionality but the price just kind of sits there on a a very level basis for the most part and we're set with fiber. I mean our backbone is in in the ground and that's no investment needed there. Not at this point. Thank you. What else? All right. Thank you very much. All right, health insurance. Uh, Mr. Cromy, Miss Lancour, please. Excellent.

097Well, thank you very much. I appreciate the opportunity to talk about our health plan, where it is, and provide some options for you. Um, we have a couple of guests here tonight. We have Amanda Elliott, who has been in front of you before from Brown and Brown. Um, she leads our consultant team. Megan Myers is next to her. Megan will be more focused on the clinic portion. So when we talk about our next um particular item, so let's get started. Um we're going to talk about our current health plan structure, our direct contract partners, the current state of Franklin Public Schools healthcare, current financial status review, so just an update from where we were in January and a preview to what'll be coming in May. Um and then some possible options for our July 1

098renewal. It's important to note we are not adjusting dental and vision or at least the plan designs. Dental is entirely paid by the district. Vision is entirely paid by the employee. However, vision premiums to keep that plan will increase by 4.5%. So again, those are just a um statistitian's number calculating the plan out and what it'll take to keep it where it's at. Um dental will see no increase from the district standpoint. Um, our current health plan structures, as you know, we have two health plans. Um, we have our $400,800 deductible health plan, plan one. We have our $5,10,000 deductible plan two. Um, you can go down the list and see the myriad of different um, co-pays or co- insurance. Um, plan one does have a 15.5% premium share that was adjusted with last year.

099So, prior to that, we were at 12. Um, plan two has maintained its 5% um, premium share for employees. Um, and then again, we added Garner last year. So, the Garner reimbursement for plan one was 1,2,000 and for plan two is $4,8,000. And then we did adjust cash in L as well. Um, previously I can't remember exactly what it was, but now it's currently $5,94. I think it was $6,792 before. So um an adjustment to that. We do have four direct contract partners. We have ATI for physical therapy. We have MDI for diagnostic imaging. We have Regenics um again a non-surgical pathway to muscle issues, ligament tears and uh tendons and things like that. And we have Midwest Orthopedic Specialty Hospital. Um, for July of 24th through February of 25, ATI is estimated to have

100saved or I should say reduced our claims by 177,000 and change. So essentially that's taking our contracted amount per episode or 42726 service dates versus what the average market is for um a physical therapy session. Um, going across medical diagnostic imaging, approximately $7,445 in claims reduction. Again, that's taking the actual cost we pay MDI versus estimated cost in the area for that similar procedure. Um, Regenics estimated claims reduction of $22,868. Again, that's taking a repair done through their process versus what would a surgical option be to to do that same repair. Um and then Midwest Orthopedic Hospital um $26,897. Um and you can see the number of procedures for each of those. So um while MDI and Midwest Orthopedics are not like bellowing savings reductions, they're still producing some claims reduction. And one of the

101important pieces to note between kind of claim savings is claims reduction is essentially we are not paying those dollar amounts by not having a direct contract. So, for instance, if we didn't have an ATI direct contract, we would have paid $177,638 more. We just did not pay it for here. We didn't get a coupon that actually provided us a check for $177,000. We just did not have to pay that additional amount or estimated that additional amount. Real quick, these if a person goes to MDI for an MRI, there's no cost to the employee. Correct. ATI, no cost. For GenX, no cost. So, for all of those, it's no cost. But the employee still has the choice. I want my MRI at Aurora versus I'm going to go to MDA. Yep. Um the only difference with

102the MASH as compared to the others, um when you go in for your initial consultation, you're paying your copay deductible, whatever have you. If they determine it is now a surgical procedure from the time you admitted to the hospital through its posttop of a couple days, that is what is considered in the bundle. Um other things are considered regular components of of a visit with a physician. Um but physical therapy is covered both at the MOSH or through ATI. MOSH if you have a surgical procedure we cover that. Physical therapy if you want to continue there or you could go to ATI. Both will work equally well. Um we wanted to provide a Garner update as well. Um so this is updated as of a couple of weeks ago. So I'm going to start in

103the lower left with the bucket. So first of all, we had 300 we have 357 eligible employees. Now that will fluctuate monthly based on the number of employees on the plan, but it's typically around 350 to 360 employees. 69% of that group has engaged with Garner in some fashion. So they've been in the app, they've created account, they might have searched up physician or physicians, but at least they're engaged with the app. 98% of people who um have engaged in the app have received a recommendation for a physician. So they've typed in internist and doctors come up or they've typed in primary care physician and physicians come up. Um Garner will tell you that that is very high for our first year of engagement. So we're happy about that. Um on the upper leftand corner

104you'll see they're estimating a claims reduction of about 385,000 by um choosing a doctor or moving forward with a doctor who happens to be on the garner list. 97% of um people have received some sort of savings from that. So have engaged and um gotten a re or I should say 97% have received a full reimbursement um of that particular usage and uh the average number of specialties recommended per an engaged member is three off on the right hand side in kind of the larger one and again it's very small print um but you will see the top specialties and the um number of relationships or uh engage engagements and then the average savings for those relationships. So overall, Garner is producing some savings for us, producing some cost um avoidance essentially. Um and we're

105hoping to improve that as the years go on, but Garner will tell you for a first year we did very well. Did we have any people um it would be in the plan one model who got more reimbursed than their deductible? 100%. Yep. So, um, your deductible in plan one is 400800. So, health plans are really rated on the single basis is very easy. If I'm a single individual, it's $400. A family plan is rated on two individuals. So, for instance, if it's just you and a spouse, both of you have a deductible of $400. That aggregate is $800. If you have a family of three people, your family aggregate is still $800. So all three of you at some point could total 800 or two specific individuals could total 800 and that would account

106for um but uh along with meeting that deductible there's still co-pays up to that max out of pocket which right now ours sits around 9,000 and 18,000 for a family. So people in plan one are still receiving those deductible uh co-pay reimbursements um or potentially a pharmaceutical reimbursement if that's coming through that um up to that $1,000 or 2,000 for the family. So, some are receiving more dollars than uh I don't have a specific amount, but possible. Um, a couple of important data points as we're going to get into talking about our health plan for the calendar year 2024, so January 1st through December 31st of 2024, 89.1% of our uh individuals on our health plan had less than $1,000 of out-of- pocket health expense. 97.7% had less than $2,000 of out-of- pocket health expense.

107Now, we do not have a breakdown between plan one and plan two. But essentially what that is telling you is that the vast majority of us are not having catastrophic health issues. We're going to the doctor on a yearly basis, maybe semianual. Kids are going to the doctor, spouse is going to the doctor, but it's very routine things, possible urgent care visit, strep throat type of thing. We're not seeing a catastrophic issue going into the hospital. Um, so just providing some data points for that as an overall reference to our current health plan. Our current health plan, these three graphs come directly from um our brown and brown packet that we get every month. So I call it a packet, but it's about 25 to 30 pages or so of data of assorted data. Um,

108in the far left, the only red box you really need to take a look at is the 115.8%. So currently for every dollar in premium we're bringing in we're paying out $116 in order to run our health plan. So as you know that'll go underwater very quick. Um the graph in the upper right hand column uh or upper right side has four components to it. So on the far left is the PO plan 400. So, in there, our average per employee um per month cost for an individual in that plan or sorry, our year-toate cost um for an individual in that plan is $2,282. That second column for our plan 2, $5,10,000, it's $930. Our pre-65 retirees come next at $2384 and our post65 retirees at 138. It's really important to know when we talk

109about those last two columns, the retiree column, they're in plan one. So while they're broken out because we look at them a little bit differently, they're in plan one. So essentially we have three groups hitting that plan one versus the plan two option. Um and then what's coming in the lower portion is percentage of individuals versus cost. The only component that's not in the cost is our fixed cost, which are two things. one um what we pay UMR to adjudicate claims. So we pay them an per employee per month fee. Um and then our stop-loss coverage. So what we're really looking at is true medical cost claims um as compared to our whole plan. So those dark blue bars represent percent of population in the plan. The light blue bars represent um cost, medical cost.

110You'll notice that the light blue bars don't add up to 100%. Again, we're not including stop-loss coverage payment and we're not including um our UMR cost per employee per month. We're just talking what is the straight medical cost portion. Um plan two really only affects 9%. So again, those other three groupings affect about 91% of our medical cost. Our current financial situation, so our preliminary budget, again, when we bring that in January, that's very preliminary. um $1.15 million in the red. Currently, we're sitting at $1,82,000 in the red. Um part of that budget maintains the 2.95% aggregate uh raised to all employees, 3.45% to professional staff. That has not changed. Um 10% healthcare increase, that has not changed either. Um our enrollment projections, we've taken a further look at those um especially now that um

111open enrollment um applications are nearing their end to see how are we fitting in with those at grade levels. Um our department budget 0% uh budgeting process netted reductions and I would like to do a shout out to each of our department member or department heads and I won't do it individually but um in aggregate we're about $250 to $300,000 less. Um, so what that tells me is our departments and in seeing their budget worksheets, I get to see this, too. But really took a fine tooth comb to say this is exactly what I'm going to need for next year and listing things out and approximate costs versus just saying, "Well, last year I had a million dollars. I'm going to need a million dollar million50,000 this year because things are going to go up."

112So really taking a look at each of those. So I thought that was um a really positive thing and again shout out to our directors for doing that. Um, you'll notice the next two bullets have an asterisk by them. So, one is a CIP budget reduction, and I'm going to wrap the next one right up into it so that um we can answer that question right off the bat. Um an addition of an electrician. So, those two items really work together along with Andy Daniels buildings and grounds budget. So, um as you know, last year we added an HVAC technician. Um Andy Daniels will be bringing information to us about how that HVAC HVAC technician has um done cost savings or things coming back online faster. All of that included. Um Andy and I will

113be bringing an electrician kind of that same con uh concept to you in an upcoming board meeting. Um but I ultimately there are things in our CIP project uh CIP projects outlined that we're paying an electrician to do. So we're paying for that service as part of the things that we need to do. So bringing an electrician on board helps solve that. It also helps solve some of Andy's operating budget and things that we would pay for um an electrician do inside of our operating budget. Um on top of that, it also helps with our HVAC technician because there are times where he's working with a paid electrician or someone we're outsourcing side by side as those two things come together. So I don't want us to take a look at well thankfully we pass

114a referendum. We're going to decrease the capital improvement budget. the capital improvement budget is decreasing in dollars, not scope of work, because of bringing on an electrician should the board approve to do that. If the board does not approve the electrician, that million82 is exactly the same. It just gets a portion back into capital improvement budget. It gets a portion back into Andy's buildings and grounds budget. So, it's a net resero. And we'll talk about that at a further board meeting. Um, property and liability insuranceances are increasing. I think I talked about that um back in January, but we did see a pretty good workers comp insurance reduction, meaning people are coming to work faster. We we have as many or more instances as we've had in the past. Um but if you return to

115work within three days or less, only a certain portion of that is counted towards workers comp, injury or no injury. Um a certain portion is counted towards workers comp. So um ultimately we had a great year and we're going to see a reduction in that. Um we do have a few increases in retiree payments since we met in January and those are due to retirements coming in. Um you would have seen those in the consent agenda um employee portion. Um transportation, we talked about our increase back in January that's contractual. Um we have an inclusion of the health clinic cost. So even though we're going to talk about the health clinic, we're going to ask the board um at our next board meeting to approve one. Um I wanted to make sure that that cost

116was in here. So, we're thinking about that holistically, not that that is an add-on after we've talked about the budget, but as a component of it. Um, the only additional revenue from the state is $325 per resident student. Um, so that's the only inclusion we have. Um, as was mentioned in um um Dr. Bennon's report, like we don't know what's coming out from the state. So, better safe than sorry um than relying on something we're not sure is coming. Um, so now we're going to talk about some options. Um, there is a couple of slide adjustments from what I forwarded you. So I I moved two things up that I want to talk about first because they are going to happen and then we'll talk about options one through 10. Um, the very first one,

117we are going to adjust our pharmacy benefit manager for domestic medications. So currently we're working with two vendors. We have a domestic vendor. We have an international vendor. Um, Drexi is our current domestic vendor. we are going to move to EVO. EVO is uh just another domestic vendor who has contracts for medication. Um ultimately there's an uh small increase upfront in procurement costs, but because of how rebates work and how EVO's contract is written to return rebates to the district, we'll see a 219% increase in our rebate back to the district, ultimately saving us about 121,000. That's included in all the things we're going to talk about today. So, I don't want us to think like, oh, okay, well, now we're 121,000 closer. This is included in that. Um, from an employee standpoint, the only

118thing they will notice is a new uh medical card. Nothing else will change behind the scenes from them. The new medical card will come and they'll just have that one when they go to a physician and have to replace that. The second thing we're going to add is the addition of a Samaritan fund. Um, so a Samaritan fund is really used for a high-cost claimant. So, think of an individual who just had maybe one of the worst days of their lives and received a terrible diagnosis. That's when the Samaritan Fund can potentially help them. So, it really helps both sides of the equation. It helps the district, but it also helps the employee. So, I'll start with the employee portion first. Number one, uh, an employee has received again that catastrophic diagnosis and all of

119the things that are going to go with it are medical costs depending on what plan there are. Trying to even route through all of those particular pieces. Moving to the Samaritan fund takes at least the pressure of payment off of them and all things for them and dependent now become costfree because they're part of the Samaritan plan. From the district standpoint, it removes that individual from our health plan for a period of time while they're on the Samaritan plan. We do pay an upfront cost of $55,000 plus $15,000 per dependent. Typically, in all of those cases, we would end up paying a minimum of $125,000 because they're going to hit the stop-loss. And then it's whatever happens to the stop-loss premium future years. So, think car accident, right? you have a car accident, you pay

120your deductible, but for several years, you're paying increased premiums because of a car accident. So, same philosophy here. Um, a couple of notes. This is not going to be for everybody. One, it has to happen at the right time for the district. So, an open enrollment period, a person can opt into the Samaritan Fund. Um, or if there's a loss of insurance, one of those um, uh, family events type of things where you can change insurance at that particular time. Um, so it's not going to be for everybody. Ultimately, this year we have seven people who have hit our stop-loss insurance who could clearly qualify. We have five who are on their way. Um, so while uh it's slightly higher than normal, um, in Brown and Brown's experience with groups our size, similar things, they

121estimate about one person to move forward. It's important to note that the district will never know about that individual receiving that diagnosis until they decide that the Samaritan Fund is for them and they contact the Samaritan Fund and we're notified that that person's now coming off our health plan and they're going to the Samaritan Fund. We'll provide all the information about how to get there and things like that, but it's not something they come apply to us for. That is an individual thing that they apply for. Samaritan Fund will determine if that's right for you. So, a family that has no ailments but just wants to go on the Samaritan fund because there' be zero dollars of out of pocket. Samaritan fund will say you do not qualify. You'd not have a catastrophic health event.

122You're not going to meet the requirements to be on here. So, we are going to add that. Again, it's no cost to us. It can help in the long run both an employee and the district. Again, that estimated savings of 161,000 is wrapped into all the things we're talking about. And just clarifying question on that. the you said they can opt in like during open enrollment. So insurance plan starts a month later you get a catastrophic diagnosis you wait until the next year to get into the Samaritan fund. It's not something you can you wait until the next open enrollment period or if there's a drop in insurance. Okay. So here we're going to start with our 10 options. One of them has two components and I'll kind of explain why the two component pieces.

123What's important to note is all of the options are just options. If there's something you like about one of them, but you'd want to see it different. So, for instance, um you'd want to see a different deductible that's presented or you don't think we should have co- insurance on that particular piece. We won't have an answer for what that would cost tonight, but that's something we can go back and do. Um again, we're a million dollar million87,000 in the red. I'm not thinking about a million87,000 coming from health. There's going to be some other avenues to figure that out as we go through the course of um the uh next four months until we get to the next school year. As you know, last year when um Laura presented our um retention rate of 90%

124that was our highest in like five years. So, we still will have people leave the district regardless of what is decided tonight. People are still going to leave. So, we'll probably see some savings there that we did last year. people might move plans that helps like see overall budget savings. So those things will still happen just as they did last year at this particular time. So the current plan option one is to change nothing about our plan. However, in order to implement that we will have to increase premiums by 27 uh 21%. So what you see on this particular document and these are all very much the same. You're going to see the plan on the side. Plan one single, plan one family, plan two single, plan two family. It's going to have the current

125cost, the new yearly cost, and then the additional employee premium for that particular option. We'll see that all the way through that same style. So, in order to maintain our current health plan just as it is today, starting July 1st, we'd have to increase premiums by 21%. That's increased premiums for employees, increased premiums for the district. So, this changes nothing about how it operates today. Does that all make sense? Okay. If we do that, that will add $76,000 to the current $1 million deficit. So, we'd be at about 1.7 close to $1.8 million. Option two, this is again no change to the plan. We will see that for options one, two, three, and four. No change to the plan. We're going to implement that 20% increased rate because if we're not changing the plan, that's

126what we will need to do to fund the plan. What this option says is we will freeze the district contribution at plan two amounts. So plan two amounts are lower than plan one. So essentially stating plan two is the max the district will pay towards any particular health plan. That's what option two represents. Again, the four plans going down the side. current yearly cost, new yearly cost, additional employee premium. If we don't do anything, but we keep 20 uh we keep plan two rates. I'm sorry. That will add about $40,000 to the budget to do that. I don't know if I understand. What are you doing here? So, we have two plans. We have plan one and plan two. the district provides more funding for plan one than it does for plan two both on

127a single and a family level. So option two is saying the district will continue to provide that plan two funding but for both health plans. There will not be a distinction between plan one and plan two and what the district will provide. So does that cost you? Yes, for plan one employees. You'll notice plan two um premiums are the same. Option three, the same for plan one. Plan two will be exactly the same as it was in plan one. Those dollars wouldn't change. Option three, again, no change to the plan, implementing the new 21% uh rates to keep our plan exactly as it is. So, so far we haven't changed anything there. This is now saying the district would cap its increase at 6%. So currently we're budgeting 10%. So this would cap it at

1286%. You'll see again the plans, the current yearly rate, new rate, additional premium. This would save about $256,000 to the budget because again we're estimating 10% or we're budgeting 10%. This would back that down to six. You prefer we hold our questions. No, I'd rather you ask them as along the way. 6% cap comes within a couple of your proposals. Where does that come from? So that was just working with Brown and Brown to find a number that still provides some increase to the district but provides some decrease in the budgeted amount. Again, everything is flexible. You could say, what does this look like at five? What does it look like at eight? You're seeing in the right hand column, premiums are going up. That's what the yellow column is on the right hand side.

129Those are additional employee premiums on every on every side. That's a bit. So in this case with this situation, a plan one family would now pay 4750 more more every year. Okay. One of the reasons I included that 89.9% paid less than a th000 out of pocket and 97.7% paid less than 2,000 out of pocket is in direct relation to this um what additional premium increases are versus what you might spend out of pocket because a premium a premium increase is automatically coming out. Option four um is no again no change to the plan. So all the things in health plan one all the things in health plan two staying exactly the same. we have to implement 21% increase to rates in order to do that. This would say we're going to cap district contributions

130at what they are today. So, whatever the health plan is being paid for today for plan one or plan two is staying the same as it is today. Again, you'll see the additional employee premium on the right hand side. This would save that 641,000 or $642,000 from um the district budget that's currently budgeted. So options one through four keep the health plan exactly the same. It's just shifting where does the cost to pay for that plan come from in different variances. So I just want to run through this uh piece one more time and I think this is really important uh to understand is plan two only affects 9% of medical costs. So the idea here is we could take the largest swing at plan two and we're going to have very minimal impact on

131the health plan. So you'll see that the adjustments that come through in the next options five through eight focus on health plan one. And again in order to gain any traction that's where those changes will have to come from. Again we do not have to decide I should say the board does not have to decide to do that. That's up to the purview of you. But from an explanation standpoint, that's what will have to happen if those changes are made to provide any savings whatsoever to the health plan. So option five, you're going to see an A and a B for a moment, but option five revolves around these changes. So both A and B. Plan one would change the deductible from 400 800 to 2,000 4,000. You would see a co- insurance from 0%

132move to 15%. The garner reimbursement would increase from the current 1,00 2,000 to the two to 2004,000. And those changes are in red. Um plan two. Again, nothing changes there. This was a big swipe from last year's 2004,000 to 5,000 10,000. So for 5A, in order to run this plan as it's adjusted on the previous screen would cost an additional 7.8% and you'll see those premium adjustments on the side for the employee. This would save $141,000 from the current budgeted amount. 5B says we're just going to cap that district increase to your point at 6%. Again, not necessarily an arbitrary number, but a number that can be easily adjusted. That would save $256,783. Again, the rates still need to go up by 7.8% to run that health plan. So, you would see a slightly higher

133um employee premium change in this one than you will the previous slide, but again, it's reducing the district amount to 6%. Option six is to modify health plan one a little bit further. So as you saw for option five, the $4,800 deductible went to 2,4,000. Option six is to say to take it to 3,600 or 3,6,000. And this is being brought forth just so you can see what a change in that deductible will look like. Um so this would change our health increase from 7.8 to now 6.8. So, it would reduce it a percent. Um, and you'll see the new potential uh employee premiums saves about $25,000 to the overall budget. I didn't run a 6% at this because it's pretty close at 6.8. Option seven, um, and this one came directly from our better

134place to work committee is just to see what does it look like with a single plan option. So we ran it as plan two knowing again 91% of our medical spend is plan one. So that's where we have to make the adjustment to make any headway on it. So you will see we have no plan one premiums up there because plan one would be totally gone. So in order I I wanted to keep this idea of the slides being the same. So just blacked out plan one. You'll see plan two's uh plan two single and plan two families. So you'll see an additional premium increase for those people that are within those plans already. So if I'm a plan two single, my premium would go up $556. If I'm a plan two family, my premium

135would go up $125.78. What's below that is if I'm in plan one single, I'll see a reduction in my premium of $1,45956. And if I'm in a family premium, I would see a reduction of $3,3922. This is increasing the entire plan by 10.6%. So to move to this would still be 10.6%. So um a little bit more than we budgeted at 10%. But you will notice it saves 570,000 from the budget. Why that is is because we're paying significantly more for that premium in plan one. So we'd be shifting all of those people to plan two. That's where that savings come. Even though we've only budgeted 10% overall, we've budgeted on a plan one and a plan two. Shifting to all plan two does save dollars because those premiums are significantly less both from the

136employee and the employer. Option eight um again comes out of better place to work uh moving to a four tier option um a plan one deductible and garner adjustment. So, um, plan one deductible, uh, I'm sorry, the garnered plan one deductible is 2,000 4,000. Um, so you'll see that going along the side. So, you'll notice now there's eight rows. Plan one single, plan one employee plus spouse, plan two employee plus dependence, and plan one family. So, you'll notice the plan one single would see a reduction in their plan uh cost of about $32645. family goes up about $1,200. The reason that is is when you start breaking apart that family into more tiers, so now an employee plus spouse or an employee plus dependent, you're really losing people off of that family plan, which does

137help subsidize the entire plan in general. So that employ that family plan now becomes uh less rich, so to speak, has to be inflated by more premium dollars. The single plan typically um is viewed at as being needed to be lower rated. So they have ratings for all of these particular things. So you'd see a premium reduction there. Both plan one and plan two. Um Garner would increase in the plan one option to meet the $24,000 deductible as well. This has an estimated savings because this option 8 again caps the district increase at 6%. So again, if we want to see a different cap, we could do that. Um, but at 6% we're saving $256,783 from the current budgeted amount. Option nine is a narrow network option. So option nine and 10 are going to

138be narrow network options. Um, the first one being presented to you is called Nexus. Nexus is straight from UMR. The narrow network includes Aurora, Children's, and the Freigher and Medical College of Wisconsin. Garner is not allowed to be on this on this plan. So this is a recon Wisconsin requirement. So it's part of some law that's written somewhere. So we are not able to provide Garner as a reimbursement. We would see a premium increase of 16.7% to all um rates. So both plan one and plan two. You will notice in this one as well, I should my apologies on um plan one and plan two is they show a $3,000 deductible. That should still read 400800. So my apologies for that. So no plan design changes. You'll see a premium increase on the right. And

139again, narrow network. This will add approximately 430,000 as it's currently decided. You could cap that uh premium increase. You could make plan design changes, but is currently designed to keep plan one and plan two in this narrow network would add 430,000 here. Option 10, we talked about Cantivo last year. Um, Centivo would also require a remove uh removal of Garner. Um, there would be two options here. So, this would entirely change our plan one and plan two as they currently exist. We would now have Wisconsin one, Wisconsin two. Um you'll see the plan designs for Wisconsin two on the left, Wisconsin one on the right. So deductibles different primary care physi uh visit copay is different. Uh basic labs and imaging um have some slightly different um variations outpatient or inpatient surgery and then ER

140is different and then drug spend is slightly different for one of those top tier medications. The biggest difference between Wisconsin 1 and Wisconsin 2 is that Wisconsin one would allow Aurora. So again, Wisconsin one plan has more um cost to the employee on it, but it does allow Aurora as well. In order to run this particular plan, we'd have to increase premiums by uh 14.8%. So plan one is really that Wisconsin one, plan two is really that Wisconsin two. So those would be what our premium increases would be to partner with Centivo as it's currently stated. Now again, could we go back and adjust those plans? Sure, we could go back and say, what does it look like at this deductible or whatever have you? Partnering with Cant again, as it's currently presented, would add

141$38,38 to the current deficit that we're already taking a look at. Yep. Feel like last year when you presented Cantivo, it was included in the potential cost savings category. What happened between last year and this year with Centivo? So, our need to increase premiums by so much to run our plans inside of that has increased significantly more than last year. So, last year we were budgeting at 10% to run Centivo was sevenish percent. So, automatic decrease. This year we need to get up to 14.8 with Civo. Yep. Okay. Um, some additional considerations if options 1 through 10 are any variations of 1 through 10 that you'd want to see, you're not interested in potentially eliminating cash and loo again. So, we talked about this last year, right? And we made the one adjustment to cash

142and loo. Um, so 17.5% of our employees receive this. We're currently budgeting $68,000. Um if we entirely eliminate cash and loo we know that not everybody um will stay off the health plan and we just do a straight reduction of cash and loop people will jump on um Brown and Brown has estimated approximately a $228,000 savings with this and that's the net of that $600,000 not paying towards cash and loo and the amount of people coming on the health plan and the premium share we'd be paying for them. Um, another possible consideration, if we do not want to do anything with health, um, we could reduce the, um, salary wage increase, the 2.95% for all employees, 3.45% for, um, our professional staff. Every.1% that would be decided that would be decided to reduce would save

143about $35,500. Um the last piece, this came out of last year and just providing um a couple of data points for health plan comparison. The first thing I'll preface this with is it is really hard to compare district to district and make apples to apples comparisons. We can look at deductible. We can take a look at premium share. We can take a look at co-pays and all of those things. But when you start mixing all of those things together, it's a math problem to a very high exponent to try to actually make it apples to apples. But we did bring a couple of bullet points at the top. One, of our 18 comparison districts who are all neighboring or neighboring neighboring, five have multiple health plan options. So we're we're one of those with a

144multiple health plan option. Um only one of those 18 is fully funded. 17 are self-funded. And I will self-unding is the way to go. We're cutting out. Mike, you asked a question um with Andy Daniels doing the capital improvement project portion of the um Franklin Forward work and does that save dollars? Yes, because we're not paying a fee to the construction manager. We're not paying a fee to the architect. Same thing with self-unding. Being self-unded means we're not paying a fee to an insurance company to run all of those things. We're paying to adjudicate claims, which we would pay whether we're fully funded or not. we're cutting out that whole other portion and saying we need to hire Brown and Brown to really help us manipulate all of these other components to make sure they

145work. Um, six have a narrow network or narrow network option. So like nine and 10 Nexus or the Santivo. 11 have an on-site clinic. 12 have a health risk assessment incentive. So we have a health risk incentive assessment uh incentive. And then six have passed an operational referendum in the past five years. And that does not include anybody that went last week. So, I did not include them in um the graph below just shows what the low, medium, and high premium rates are for both the employee and employer, what the premium share is and what the deductibles are for those. But again, those things are really hard to look at because we might have a different deductible than somebody else and then we add in co insurance and we change all this premium share. Is

146it part of their total packet? Like there's lots of things to consider that make apples to apples really very hard. So, let's start with questions. Before we start, can we um I know there be a lot of questions. Um and and I want to get to the mall. Um I think maybe first we should talk um about cash and Lou since um that was a that was something happened last year and that's sort of separate from the entire discussion. Um, and I don't know, we talked about a two-year um, we talked about a two-year reduction. Um, and and didn't go with that. Um, but last year there was a lot of talk that cash and loo would be um, it'd be sort of silly not to have a cash and loo amount, but we have

147to find the right amount. Um, and I don't know how people feel about cash and loo. there's any um if there's if there's any um any ideas on what people would like to do with the cash cash amount um or if there's any discussion about cash limit please. So the fact that we have savings if we eliminate it leads me to think that I mean we're we're paying the cash alone because it's cheaper to pay that employee than to pay for the plan but we're not really coming out ahead on that obviously because if you eliminate it we're saving money. So isn't that kind of a no-brainer to it's not doing what we thought it was going to do. Am I am I looking at that correctly? We The idea is I'm giving you this

148so that you don't come our plan and then I save money. The difference between what I pay you and what my plan would cost me. But the fact when you take it all away and I can still save 228,000 means that it's not doing the job it's supposed to. Well, I'll answer the first part. The idea of cash and Lou, yes, is to take people from our health plan, move them off of our health plan to some other option. People typically choose it because they have one have another health option. So whether that's a spouse or if they're 26 or under a parent plan, but they have another option. Two, they choose that for a multitude of reasons, but ultimately that's a better option for them financially. So to Linda's point, their money is coming

149into their pocket in some fashion, whether they're paying less in premium than the $5,94 or their total health is less than $5,94. Um, as to whether it's doing its job or not, I guess you could argue that either way. Um, but cash and loot typically takes healthier people off your health plan because they're willing to choose a plan that might not be as rich as our plan. is typically um one of what Brown and Brown will tell you. Um but I will say last year I think I brought this up last year with cash and Lou when we first did our investigation Laura and I like I was all in on eliminating cash and loo and then like 70% of our neighbors have some cash and loo options. So like I will tell you that

150that changed my health that my mind and totally eliminating it. Um, I think with everything there's probably some sort of sweet spot where dropping cash in loo is still a benefit from the cost to the district to where people are at some point going to jump on and now we're switching. What is that value? So there's some price point that meets somewhere in the middle that says this is the optimal cash luma. I don't know what that is like that but kind of like anything that supply and demand crosses at some point right goes down before it starts coming up. So, but it's a benefit that other districts do offer. So, it a significant amount of other districts do offer a different district might be more um you know might look better because a person

151could go there and get that 20% of our employees. That's a large would be going to other districts because you're chasing a cash and l amount. That's it's part of a total compensation package. I mean, I don't think anybody's going to jump just because they've got, you know, better dry erase board markers at a different district either, but it's part of a whole, you know, compensation package. And if I you know if you can go somewhere else and take home more money and work in a district that you think might be better financially and possibly I don't know culturally or whatever else yet somebody might go to a different district because of that. I think some people look at I think many if not most people look at their salary and benefits package as a

152whole and so if so if they aren't um receiving the benefits of participating in the health insurance in the district if the district isn't paying some amount towards their health insurance premium um it just doesn't necessarily they don't come out ahead I'm sorry my words aren't making sense I agree But but it is driven by having options. That's that's drives this decision about cash loss having options because you got to have health insurance. So you're either getting someplace else and that someplace else can be tenuous or be I said there's an age limit on my parents plan. So I know it's going to end. So, and I just doing the math. I don't know. We paid them so we could save money, but we're not saving money. We're paying more. So, it kind of doesn't

153make sense to me what to continue it from the district standpoint because we are not we're leaving that money on the table. You're not trying to convince me. You got to convince the other people. We want to eliminate Captain Lou ent entirely. I think we got to get there. We don't do it all at once. I I'm asking if anyone else feels that way. I know that you do. I I think that there's I think my opinion would be that we would continue the decrease in cash and L um based on you know it's really hard please. Yeah. um that we would that there was a I don't remember the amount, but it was close to $5,000 um after the second year. Um it it was dropping at eight I think this is $888. So

154dropping another 888 and that's because it needs to be divisible by 12 to work with payroll. Like there's no it could be 900 but that doesn't divide by 12. trying to divide it out equally to make payroll come out even at the end of the year is but I I think that I think that um it can be the savings is not necessarily all savings. I agree though Linda that that cash and I would like to see cash and loop use. Are we commensurate with other districts or is there no way to compare that? No, that's actually a pretty easier one. Um, we're above the median, but we're not drastically above the median. So, I'm just calculating how many people in case you ask me what if we move to some number what that would

155be. And because these reduction in cash and L amounts and their potential cost savings aren't sort of an easy calculation, there's some fancy math that involves how many people would shift to the employee plan. Um, I wonder if we could see some estimates of reductions of cash and loo in addition to the elimination of it entirely because I'm not hearing an appetite for the elimination of cash entirely on the board level. But I think I remember talking about this last year and I feel like if there was going to be reduction, it was going to be kind of phased versus just, you know, we make the decision at our next meeting. Yep. It's gone and it's just like cut off. Um there could be some discussion around how much in order to stay, you know,

156even with other districts and give us maybe some savings while also keeping the benefit for staff, but I don't I don't think it I don't think we're at the point now of completely eliminating it. I don't think so either. I just wanted to talk about that first since it's separate from it's it seems like a separate issue from the other. And I and I and I I'd like to I don't I don't want I I don't want to see it um I don't want to see it abandoned, but there was talk there was a a uh something on the table last year to increase it the same amount la uh this year as last year um and phase it over two years. And I think we I'd like to I'd like to reook at that

157number for this year. not not any further thinking, but just that number for this year. Well, in part of it, I know you're saying it's a separate and I can see how it is separate. However, I think it is completely tied into our insurance question because if we decide to change a plan and all of a sudden, you know, deductibles or um premium shares are different, that might, you know, that might impact somebody's decision cashwise based on how much that money is, you know, so that it is all kind of tied together. So just to give you the values. So last year we did off propose a two-year phases. So you'll know you'll notice there's no recommendation coming before the board this year. So that's a little bit different than last year. Um no recommendation

158on cash and lure or any of the other components that we're talking about. But last year we did bring a two-year phasing. Um it was originally $900, but just again to meet that payroll piece. So it's reduction of $888. So, if we follow that same pattern for next year, this would be moving cash and loot to $5,16. Um, I would guess that Brown and Brown would estimate that probably doesn't move anybody on to the health plan. Um, because we're still over $5,000. So, that would save the district 91,464 and reducing it in that same comparison of $888 over sorry, as it was last year. So I mean you see this as the benefit cash is is the benefit to employees or is is it the health insurance that we're trying to give the employees? I'm

159saying you will have employees not a separate benefit. It's they don't want the benefit or off our goal is to offer a health insurance plan. Right? But if a if an employee doesn't need to take our insurance, perhaps they have a spouse or a parent, they're under 26 and that plan still exists. Um they would see this cash and loo as a benefit because they're not taking the health insurance benefit offer money. I'm sorry. Say your question again. We would only offer it if we can save money. That's that should be the point of offering a cash and loop is so the district can save money and provide the health insurance that that's the goal is to give a health insurance plan that employees want right but you have and I'm not saying we have

160to keep it forever but right now we have employees who are here who are taking that as a benefit so the same way we have employees who are paying a lot of attention to what we're doing with our insurance decisions and what those things are going to be we have employees who are going to look and see are we still going to have that cash in L and that might influence their decision. Maybe if we take away cash and loo or reduce it to a certain amount they would decide to be on our insurance or you know I mean there's a lot of pieces. What I'm saying is that they are separate conversations but they are still tied together and so we can't make them they're not individual silos. They're all going to kind of

161go together. This raises a question for me of the idea that we we have a goal of achieving some degree of overall cost savings at the end of our discussion here and the idea that it's probably going to have to be sort of shared across pools. So I think that's another reason that I would like to see a little bit of the cost in LO decreased so that the the pain is shared across you know pools. Do you have a sense of how much savings you would you would recommend we try to achieve by adjusting the health plan versus other areas of the budget correlary? Why are we even looking at the proposals that increase our cost? So the idea is to provide you know wide range of options. So the idea is to provide

162you a wide range of options for you to consider. It's possible that the six of you sitting here do not want to change our health plan whatsoever. So, I'm putting it out there. It's going to cost us an extra 730,000 or whatever it is to run that if that's what we want to do. And if that question comes to me, how are we going to solve that? The answer is I don't know. Right? So, it's out there. But that idea of why have some that are going to cost money is because ultimately this is the health plan that you're providing for its employee, all of its employees, right? Um, so giving you that full range of options to say this is what we want to do and then we figure it out from there. Again,

163I don't have that answer today if you ask me where does that extra 700,000 come from and we would work to find it. I I don't know if we can truthfully do an answer for my question. Yeah. Um, I I mean ultimately I think at the minimum if we could get halfway there would be great. 600,000. But truthfully, if that's not palatable for the school board, like we'll take savings what we can and we work to figure out the rest. What about the idea that was raised during community comment about pooling with other districts? Yep. So that has been I I will say that has been attempted not necessarily at Franklin but at many districts in many different communities and pooling your health plan together typically does not work very well. Pooling stop-loss insurance that's

164gaining some traction and you're start you you see public um they're cooperatives. Is that what they're called? Uh captives. Captives. Thank you. You see public captives for large groups joining with other large groups for stop loss. and we're starting to see some public school captives or groups discussing it. So, for instance, um I think I mentioned back in January that we met with Greenale and Elbrook and we're starting these kind of health conversations and we have a meeting next week uh Wednesday um in this room in the morning with healthcare providers. So, um the idea of pooling stop-loss has been discussed between us. We haven't managed to like fully get around that as districts are trying to. So that idea has been kicked around. Uh but health plans typically do not because you're joining on

165like we'd have to merge with somebody else and they'd either have to accept our health plan or we'd have to accept theirs or we'd have to totally adjust in the middle. Um from a timing standpoint like to actually get that done in a 660301 agreement in place like that's not happening by July one. So, like just timing wise that to cost that all out to come to some sort of agreement that both or multiple districts could take to the school board and have approved like that's just not going to happen. I also think we have to think about more than just one year. We have to have a path here. We're going to be coming at this every year in this 10 options. Got to be some kind of goal in mind. This is doesn't

166seem when I look at your slide number six, which is how you know people don't aren't using the plan because they're healthy. And how do you explain the fact that we have a 20% increase in our cost? That doesn't seem to what am I missing there? Sorry, I'm getting to it. We have a significant amount of people on that plan one and that is a very expensive plan to run. Sorry, this is gonna kick off if we don't stay in the call. It's a very expensive plan to run or it was a very expensive plan to run last year. It's a very expensive plan to run in general whether people are using it or not to hold those benefits where they are. Using it or not, but we're selfinsured, so only paying for the cost

167that we have. So, we're still paying that deductible or that premium in and we have more high cost claimments this year. And we're correct, but that stop loss insurance next year is going up at a minimum 36%. So our best offer was 36%. Wow. So at minimum that's going up to keep that same particular health plan. So that's taking an approximate million dollar spend and moving it to 1.36 million. Just to run that alone. So if I may just to answer that question more specifically 1% of your enrolled population is driving 25% of your health care spend. So yes 89% of the people aren't using a lot of it but 1% are using a lot of it and that adds up very quickly and that impacts stop-loss and that's a big reason why Andy's bringing

168forward the Samaritan fund program as a solution. high-cost claims continue to get very very costly. Yes. Is it fair to say that options one through four which are basically continuing the hybrid model that we have from last year are not sustainable. I don't know that that's fair. I think there's a movement that needs to happen. Not at Franklin. I think across our country um there needs to be a different focus on health in general and I think that's kind of dovetailing into the next part of the conversation with the clinic. Um chronic conditions are plaguing the plan. They're plaguing every plan across the country. Um so it doesn't matter what insurance option you put forward when you've got $1.6 $6 million claim it's hitting a plan. Okay. So, nothing is sustainable because we live in

169the world where we live in. Well, keeping our health plan exactly as it is is sustainable for the district if you shift the cost to the employees. But I I'll just quickly scan through plan one or option one, two, three, and four. Or really two, three, and four, right? We're seeing some large jumps here. Okay. So cascade option four to next year and we keep it at 24 25 amounts and you add another six or seven or eight thousand dollars for an employee standpoint to rent a that's where it starts to become unsustainable. But from the district standpoint if you cap whatever you're providing towards health that's sustainable from the district but are going to keep employees like I would find it hard to believe that we're going to keep employees with a $12,000 employer

170or employee premium share. I have a lot of questions. I want to make sure I'm not interrupted. So f five through seven seem to be going a little bit more again on Garner and I know my hesitation about Garner last year was just that it was sort of an unproven product to me. Can you give me any more information other than that one slide in teal about how that product has performed for us anecdotal or otherwise? Do you have that information? I don't I don't have it with me, but I can follow up with you on how it works. But they are validating that the individuals that are engaging in the program are seeing on average lower costs than those that aren't. Any data on health outcomes, satisfaction, like that kind of stuff? Yeah, I

171can ask for that as a followup. Thank you. And that will be district specific. Yes. So you you do have the clinic in here, but you don't have any impact on the cost side. Those savings are incorporated into correct. We anticipate long-term and we'll talk about this with the clinic, but we anticipate long-term savings with it. We have not built that into the projection for the main reason the board has not approved that. So like I I'm budgeting for it so you can see what the budget impact is with it, but we haven't approved it. Second, it will still be a slow start. So, if we open January 1st, well, we we plan to see those projections that we'll show you in the next slide set. The first six months of that are the last

172six months of our budget year. So, even if we kill it, we're still not going to drastically impact our first or our last six months of health for the for the year. Target, we know where we're going. There's some It's not 10% 10% 10%. Yeah. My target is 2%. Long term this year. No. Can we long term keep healthcare at a 2% increase year-over-year? We plan get past this hump. Andy says 2%. So, um, and it seems to me the only one that is sustainable would be it's got to be higher deductibles. Now, you can like option seven is the best plan on here from the district standpoint. $570,000 savings. eliminates plan one, but the the cost increases to employee bars premium are affordable $55 and that's annual or 125 and if we know 85%

173or 90% of people don't they're not going to be spending more than a thousand and Garner will reimburse them if as potentially they can do I'll put the plan up here more information on sort of our experience with Garner because I agree with you, Linda, and maybe we don't eliminate one and make everybody go to two or we have to get employees to choose the higher deductibles. They're just they could get there on their own or we eliminated and you're going to be there. Those are what that's what I see as our path forward. We can't just be looking at this year to year. We have to know where we're going. because we've gotten two years of 10% increases. You're killing us. Yeah. I what I would add and I spoke to the better place

174to work committee about this. So plan two obviously has the d the higher deductible right 5,000 10,000. So from an individual standpoint looking at that deductible can be scary. So when you think about healthare healthcare is very personal. So it's personal to all of us. It's personal to everybody out there and everybody's going to look at a little bit differently directly how they relate to their family. Right? So, but when we look at numbers as a district, that one slide about the 89.9% the 97.7% what I explained to better place to work is Laura and I work with Brown and Brown to look at that because that the district operates on the whole not on each individual. Now, I we know people that are on the high deductible or have hit the stop loss like

175we know who those are because they come through and need FMOA typically. So, you know who they are. Um, not necessarily what's happened to them, but you know that there's something going on. Um, so I would guess everybody in here can say they know somebody who's had one of those catastrophic illnesses and catastrophic diagnosises, right? But that again that slide of 89.9% and 97.7% so the vast majority of people aren't that individual. And again, healthc care is very personal to me. It's very personal to all of you. It's very personal to everybody out there, but in aggregate, this is what the data tells you if you look at it as a whole. And so when we approach plan design, not necessarily all these options, but when we approach plan design, it's looking at it as

176the whole and taking out all of the specific individuals that could potentially be in that knowing anybody can be in it at any time. But if we look at it individually, it's really hard to make decisions. That's where Laura and I have to look at the aggregate or work with Brown and Brown to say what does the actual data in aggregate say about health plans and this and X Y and Z in each of those particular components. So it's one of the things that makes talking healthcare very hard is we all some of us have been them or some of us know somebody or it's a family member or it's someone we work closely with. um that makes it really hard to talk about. But again, if you focus on the spe the data of

177the whole group, that's where those decisions can be made. Not necessarily palatable, but can be made. So, and to maybe help also move them to plan two and to help with any cost, have we thought about HSA account, split the savings with the employee, start that account for them so they can save that money pre-tax? We have um but unfortunately we cannot pair that with Garner. So it's we were talking about the two. So um actually had sent the health plan design to Chris, but again it eliminates Garner. So it's weighing this option versus that option. There there's pluses and minuses to both. It it actually eliminates all the co-pay options. So it would be HSAs require members to meet a deductible before any health insurance steps in. So, the minimum deductible for HSAs is

178about $1,600 for single coverage. That's an IRS regulation. And they would count the garner reimbursement as potentially having that be. The garner reimbursement can come in afterwards, but that first member responsibility is a requirement. Okay. So, this is all predicated on everybody agreeing to Garner. This plan number two, I'm not What do you mean by that, Mary? Well, because Garner was kind of a tough cell, you know, but it sounds like maybe it's working out, but this would mean everybody just has to sign on to Garner. Nope, you don't you don't have to sign on to Garner, but your deductible is 5 in plan 2 as it currently exists is 5,000 10,000. If you choose not to sign on or not to find a Garner physician, then you're taking that whole $5,000 $10,000 risk on.

179If you choose to, the first 4,000 or first 8,000 of your health plan is reimbured along, you have to follow the Garner path the entire way. But presumably for the vast majority of people who are doing a primary care visit, maybe it's a single specialist visit. long as it's with Garner, they're under that thousand 2,000 kind of range. They're probably going to be deal like fully funded back with Garner. Would it be possible for us to monkey around in the Garner app? I just want to see what it's like. Um, I don't think we can get you an account because we have to upload from it. If you want to play around in my app, Yeah, we can do that. Okay. Get an appointment of a calendar there. I just want to say there's also

180a Garner session for PD day on April 21st. They're joining virtually to walk people through the app if that is more. What time? 9 between there's 9:30 and 11:30. So, two sessions. Okay. That was a request and they can join virtually and like answer questions. Option nine and 10. Does anybody have any um interest in exploring those further? The the centivo option or the that that was immediately dismissed last year. Um no, I more I would actually say we could probably eliminate anything that's going to cost more. Right. Right. I I agree with you. I mean, it's a lot. I'm happy to have 10 options, but it's a lot to look at. And if we're trying to reduce, it seems to me like we're not going to all of a sudden be like, "Well, we

181want to reduce, but let's look at option one that cost us $700,000." Like I think personally I would take those four off the table. You mean one through four and nine and 10? One and two. One and two, nine and 10. That increase our total. I agree with that. Okay. So, focusing on three through uh 8, is there other than a couple of the things that um Mandy's written down, is there any like is there a plan you'd like to see but adjusted a plan design change? see it with a different plan design. So they're they're all kind of in front of you. I gave you those kind of one-page ideas for them. But for instance, like if moving to the single health plan is something that people want to do, and the only reason

182I'm using this one is because it's nice and easy to talk about one health plan versus two, would you want to see this at a different deductible rate or a different garner reimbursement rate? I just like to see it compared to a different to a different deductible rate. Do you have an idea of what you'd like to see that at? Modeling a health plan inside of ours isn't really hard. I don't have the software to do it here. That's done by Bron Brown. But like for them that the guarder reimbursement rate would always trail behind by about $1,000. It is, but if you wanted to see it equal, we could do that. We It's really super catered to what you're wanting to see. So, if we wanted to follow that logic, we could do like

183a 3,0006,000. I'm just kind of trying to find a place in between plan one and two and then do a garner reimbursement if we wanted to follow that logic. Do like a 2,000 4,000. So, the net deductible is 1,002,000. Sure. Start there. Okay. Okay. You're taking these notes? Yep. Okay. I guess how do people feel about capping the the the district's contribution and shifting to the employee? I'm not really a favor of doing that kind of thing. Capping it. I don't see that as sustainable or No, there's no basis. I don't see a basis for other than other than having a number with which to monkey, right? Not to not to make light of it, but a number 100% a variable for us to adjust. You want to keep it clean terms of I guess

18450% for plan one 5% I don't know. Was there anything that you were in addition to this very extensive menu that you were like why aren't they considering fill in the blank? Okay. No, I think you guys have obviously a lot of options presented. Um, I'm eager for you to hear about the clinic piece. I think that's a big part of the equation to Linda, your comment earlier about a multi-year strategy. I think a a clinic strategy is fundamentally important. As I referenced the need for individuals to probably have a different way to access care than they have today. I'm sorry. Go ahead. Well, you know, Andy, you mentioned your goal is 2%. Going forward, so the only tool you're missing is the clinic to make that happen or what? I I think it's a

185large component of it. I I I talked about this last year. It it's where we're accessing healthcare is the largest component in our healthcare cost. Um, and again, Freigher does things really well. Aurora does different things really well. Ascension does some things really well. I have no idea what it's going to cost to any one of those. like I I have no idea. So Brown and Brown can help us understand where cost is going to be efficient. Garner has brought in that component of where the individual provider right this every system is good and bad like every like everything else every system's got really high quality people every system's got lower quality people. So Garner's brought in that what is the actual actual provider not the system I think component that is really helpful. So

186how do we again how do we get people to where's where does cost meet um the best care place because it's going to be different that the cost point for great care is different at Freigher than it is at Aurora than it is ascension. I don't know which one's higher and it's different for everything that you're going to do. So that's the key component is you don't know. Everything else we do we can go shop for. Uh Mike Hacker mentioned RFP process for roofs, right? Well, we an individual is not doing an RFP process for a knee surgery and waiting to do that or god forbid you have like a heart attack like you're not rfping on your way to the hospital in an ambulance. So we just don't know where those are. So I

187steerage and that's where Brown and Brown comes in. That's where the clinic is. One of those components is how do we get people to high quality care that's affordable? That to me that's the largest piece because we just don't know. We as an individual I just don't know where it is. Well, healthare by the healthare costs are just going to keep increasing wherever you're getting care. They do for for sure. I have a question and maybe maybe it's not answerable. Maybe it is. But I I heard a lot that we had a particularly rough year in terms of a lot of people having catastrophic I'm not going to say catastrophic high cost high cost claims. What if this had been last year's last year's numbers, what would the difference have been? Do do I mean

188yeah, I can give you a rough answer on that. So we typically hover around seven to eight high cost claimments. This year we happen to be at 12. So we're off. We're not drastically off. Um, so we're probably looking at probably on average maybe 50 to 60,000 of those four individuals. So probably to$250ish,000 out of pocket that we're paying. We're going to pay some additional stop-loss premium next year because we have some more people approach either hitting it or approaching it, right? But in aggregate, it's not like it's a huge boom if we had a regular year of seven to eight. But we would see I as a percentage instead of that 115.8% 8% that we saw on the one slide spent. Maybe it's 114.8 or Okay. 113.8. It's not like it's not major in

189terms of an $89 million spend. Okay. Thank y do you have a sense and you've been in the better place to work meetings. We have not. Do you have a sense from staff is there more of an appetite to change deductibles? More of an appetite to change premiums? More of an appetite to just stay the same regardless of anything? like what you know what is there is there a a drop deadad like oh my gosh you know the worst thing in the world would be to increase my deductible versus you know what I mean I'm just trying to get a sense of like is because we still have you know all these plans is there something that is just a a breaking point or is it just so individual to each person that it's impossible

190um I I would say from like deductible versus premium I wouldn't be able to say I don't know if you've gotten something from that Laura I think the the biggest thing we like what are you hearing from the biggest thing we got from better place to work is an understanding of where our health plan is and that it's not sustainable in its current form. I think that was the that's at least the biggest thing I've gotten from the group. Not necessarily about our plan design or if they favor one a this change versus this change versus this change. I think it's really just an understanding that we've gotten to that something has to something has to change to keep it sustainable, which would be what any any of these options something not not where it

191currently is, which is of course option option one is where it currently sits. Right. If we if you were to choose option one, that would be staying current with what it is. Still increasing premium by 21. Yeah. Right. It adds a lot to the district. It increases premiums by 21%. So that would be staying exactly where it is. I I think they understand better place to work that that like really staying there isn't an option if we want to maintain our benefit long term. All right. Does anybody have further questions um or clarifications? Um or the next question is if not, do you do Do you Andy and Annalie have enough to so I down from Yeah, I'll try to put it stops. It's eliminate one and two, 9 and 10. So eliminate those right

192off the bat. So now we're between three and eight. Um it's coming back with a single plan option at 3,000 6,000 to see what that looks like. Um it's coming back with um a potential drop in cash and L and to see if we can find where that meets. I I don't know if we're going to be able to, but um we can get some estimates if we drop it down this much or if we drop it down this much what that might actually do to the plan. Um I I think outside of plan one, people didn't want to see anything else. So, it's still kind of keeping that 3 to eight with a couple of adjustments as I mentioned with option seven and cash in L and then kind of evaluating three through eight,

193seeing what that one change potentially does. Does that sound about right? Yes. And if we have more things, we'll we'll let you know and you can respond to Yeah. If you have other thoughts, um if we can have them probably by next week, Wednesday. Sure. We can cost those. I don't know if we'll have like if it comes late Wednesday. I don't know if I'll have a costing by Friday for the board report. We'll have a board report for you and I can update um those numbers via email so you have it ahead of time. I don't know if it would be in the specific board report depending on how late we get them. and we're not looking at the reduced salary wage increase on that. I'll be honest with you, I am not making

194a recommendation at all. So, you should ask the six board members that are sitting here whether that's what you're looking at or not. That again, those are just things that were brought forth. If people did not want a health option, this is another way that budget could be reduced. Same cash is again one of those options. Can I can I ask for consultants what what other what have you been seeing with your other 100 districts? Well, not 100 districts, but what kind of increases are they see are you seeing with that? I mean, ours was 21%. What are you seeing around her area? Uh, we're seeing the high singles, low teens. This one is a high one. We are really uh out this year. You are. And our cost increases is that it's actuality determined

195or is it So I'm wondering how much those one time kind of this is a bad year for that rolls into that or is that So if we were to say it I mean there it's kind of an every five year we see this happen with employers where there's bad swings kind of in the down swing we'll call it. Um I'm not an actuary so I can't say what exactly that math is or what's based what that's based on. Um but it's certainly cyclical. um what's driving it systemically, I don't know. I mean, it I've got other employers that are in your shoes right now as well. Um and then I've have got employers that are coming out of it and they're having a good year right now. So, um I I can tell I

196I I know what the claims are that are driving it, but what's caused them to be so high or what what caused it to get to this point um is probably a culmination of multiple things. Do you see of the options that we have thinking about Helinda said, you know, it seems like every year we're coming back to this and knowing as healthcare is very personal. It's very hard to have a healthcare change. I think we've all been through that. You know, I certainly have. You know, it's it's frustrating and stressful to have a healthcare change. of these different options, do you see any that would be more sustainable long term, especially thinking about potentially having a health clinic as well as a piece of that, but are any of these designed in such a

197way that the increases might not be so much or they might have more longevity or do you just see this as buckle in every year? We're going to have the same conversation. That's a good question. Um, so given so the first thing is your population itself is going to be volatile. you just you're you're a large district, but from a law of large numbers, you're not large enough to create you're going to have peaks and valleys. Um, I think there's a there's a simplicity to a single plan design that creates maybe more buyin from a population. So, I do like that idea, but I also recognize that having dual plans is a part of a recruitment strategy. So, I it's a very sensitive balance of all of these. Um, I think a clinic strategy will

198support just overall population health. That I think, and I keep saying it, is probably systemically going to be the best fight that any employer would have to start to bend that trend because we're all against headwinds of just year, like I think you said it, year-over-year, healthcare just gets more expensive. So, we're up against 8 to 9% increases year-over-year without touching anything. So if if that's what we know to be true, the next thing we have to do is start to figure out how to make our people healthier. And the way to do that is to give them access to care like they haven't had before. And so I think it's not necessarily a plan design, a premium structure, a salary adjustment, a cash and loo. It's it's truly giving people the tools to make

199better healthcare decisions. And Laura, just because this just triggered, is there something that you see when you're doing interviews for new staff like that we offer that other districts don't or you know what I mean? Is there benefit like do you see as you just mentioned like that a two plan is more attractive to staff or a single plan or you know are those decisions just again all part of that whole benefits package and it's hard to pull out one thing or another. It's hard to pull out one thing or another. I wouldn't say I have, you know, the first question that candidates are asking me is do you have one or two health plan options and what do those look like? Some some ask for that upfront. Um, but for the most part, we

200put it as a part of the total compensation package because it's everything, right? It's how many personal days you have the option to select. It's how many sick days do you get? How many of those can you bank long term? You know, what are your options for PD? So, um, obviously people always have a lot of questions about health insurance, but I don't think I've if we only had one plan and I had the opportunity to explain it, it's hard to say whether or not it would be a detriment or less confusing to be honest with you for some staff members because they, you know, have a lot of questions. They I often get the question is which plan is better? Well, I can't answer that because I'm not a part of your family. I

201can only tell you what the differences are. It's hard to predict because we've never I've never been able to compare one plan to two plans in terms of a model. Andy, can you review the slide that just said how many of our compet neighboring districts are one plan versus two plan situation? Yep. 13 are a single plan. Five us being one of them have multiplan. So most or more are a single plan. Can can we see um those that have an on-site clinic? What's been their their history of health insurance increases over the last five years? Are they sharing that with you for the I can I can share what we know in our book. We're not all of those. We don't we don't support all of those 18 compared districts, but we can pull

202what we know to be true. I know Megan and her team have data. I mean what how we validate it oftentimes is clinic users versus non-cl clinic users and what they come to as a paid patient per year, paid member per year and look at what that is and a co we'll call it a cohort group. So it's really the the people that have stuck with the plan year over year so you can see that evolution. I guess I'm also curious about the narrow network. I mean I'm just curious about that. I don't see this too appealing based on this, but I'm wondering how much that impacts their rear planes. I'm sorry. I'm sorry. I thought you were talking to your peers. What was your question? They also have um the six have narrow network

203or or Oh, yes. what the impact of has been on their cost increases also. Sure. Um I can I can pull that anecdotal anecdotally. um that's a cost play. So that really comes down to what those networks are reimbursing those provider systems. So where you see Nexus, they're comp, you know, they've got a really good deal with Aurora. Where you see Santivo, they've got a really good deal with Ascension. So they've negotiated ways to reimburse those provider system. It's a volume play. Come to this network. We'll make sure that you've got more volume coming to you as a provider. Um so is is it going to create savings? Yes, in year one it will. But that just creates your new that's now your new starting place. You're still going to have the claims happening. It's

204just now they're happening at Aurora more or at Ascension more and those networks have just negotiated deeper. Just reset. Correct. I see it as more of a year one strategy like a a one year and then all it's redoing is just setting the baseline. Yep. And now you just go from that new baseline. you stay down there for that year one, but then now you you're still going to have sick patients, right? Um the thing with Cintivo, and I'd argue it's still kind of that philosophy around the clinic model is Centivo is if you remember there was a Wisconsin one, Wisconsin 2, one of them had a richer plan design. What that's trying to drive, if you look at PCP visits, that's primary care visits. They are trying to make it and zero deductible. They're

205trying to re reduce any financial barrier for people going to primary care, which is that same philosophy of let's just get people in to start conversations with their providers to get on the right track for their health. So, they do have a ve a strong value prop in that regard. Um, but then next to that, it's that network play. Like I said, they've they've worked out a better deal with Ascension. But if we have a clinic that negates that I was just going to say then our clinic design would be if people are coming to our clinic to get into for that initial Exactly. point. Yep. That's the same as having a zero. Correct. You would want to remove financial barriers with your clinic. We've done health assessments for what many many years, right? So

206do we are we healthy getting healthier or what have what have we seen over time? Our health assessment is essentially designed as if you don't do it, you'll pay more premium. Like it's not really designed for population health. Um Laura and I have some ideas around how we could utilize the clinic and a health risk assessment to um essentially work towards making our population healthier. Um a simple one is simply your health risk assessment has to be done at the health clinic and you're going to meet with the clinician as part of it. like simply that introduction, that 30 minute conversation of here's all the things that are happening. Here's what we saw from your health risk assessment. That's kind of one just a very easy initial thought. Um other districts will say you have

207a health risk assessment and we're measuring six things, cholesterol, blood pressure, things like that. However many fall into the red zone, that's how many times you have to go to the clinic during the course of the year. So other districts do that. So there are multiple strategies around there. Again, some of that is how much do you want to take on or do you want do you want it to feel forced or do you want it to feel organic? Um, and there's a there's a sweet spot for that. Like anything, there's a sweet spot for that, too. I don't essentially know what that is. Um, but ultimately a clinic, and we'll talk about this a little more in the next slide, that's grassroots. Like, we're going to promote it. We're going to do all of

208those things. more people are going to go if they know somebody has a positive experience and has talked about it that they're friends with or colleagues with or close with at work. I mean that that's just the nature of how it's going to work. Seems like we're getting into clinic. So maybe we can maybe we can move on to we can move on to that. Can I just recap what I've got for for follow-ups really quick? So I'm going to be looking at the different estimates of the reduced cash and loo um I think we were going to do the 88 as first pass. I've already sent the request over to Garner for the additional data. Um, we're going to look at that option seven, which will probably now be like a new option number,

209but option seven, changing that single plan to a 3,6,000 deductible with a back fill of Garner at 20,000 4,000 and then getting the clinic utilizer data that lasts request. Thank you. So, we'll get those in motion. Thank you. Okay, next. Next one. This Okay, this one is actually fun. Um, so, uh, District Health Clinic. So, walk you through a little bit of the process. Um, first of all, we work with Brown and Brown and I'll introduce Megan Myers. Megan was part of our team. Um, her and her partner Katie were, um, spearheading this clinic idea. Um, we received some feedback as it was discussed at Better Place to Work prior to us even engaging with any vendors about what they would like to see in the clinic or questions they had so that we could

210work to answer those. Um, our interview team, um, included Anna Lee, Laura, uh, Megan Ludig, Rebecca's here today. Rebecca Yjakowski. Did I I know I said that wrong. Okay. Um, at Brown and Brown, um, and myself. So, um, a good cohort. We actually did this reverse RFP process, which was kind of cool. Um I I haven't ever done it before, but um essentially uh Megan and Katie worked together to develop a list of things they wanted vendors to come talk about with us and to know about us. So we actually met with vendors before we even received a proposal. Um so we met with four vendors that day. Um following u meeting those four vendors, all of the people that you saw listed in bullet point three had a conversation. We ultimately eliminated one right

211off the bat. um their smallest clinic was for a 25,000 um group um uh group of individuals that they had which we were stepping down to around a thousand um plus our staff who aren't on a health plan. So maybe 1300. We didn't feel totally confident that that 25,000 model was going to scale down. So we said no and we accepted proposals from three of those vendors. What you'll see tonight though is really only two vendors being brought forth. Um the third vendor um while we did like them, we would be the only one in the region and a lot of their model was uh designed around sharing your clinic with other clinics in the area. So we weren't really going to be able to utilize that particular feature, although you would be paying for

212that feature as most of those were around the Green Bay area. um put them really at a cost disadvantage, a model disadvantage that seven, eight years from now, would we look at that as they start merging across the state? Probably a little bit more, but today it just didn't seem like the right fit for us. Ultimately, you're going to see um uh a cost comparison with Proactive MD and Quad Med. Um recommended staffing level, you can see implementation costs, medical equipment, year one, fixed cost staff, all that. I I do want to talk about the recommended staff level before I talk about the fixed cost. Um so both of them nurse practitioner you could fit that with a physician's assistant. It'll be the same. Um you'll see um an LPN. Um the difference here proactive

213is uh wants a patient advocate and I'll explain that in just a moment. Quad medant. So I'll be honest with you um and I'm only going to speak for myself on this one. When they first started talking about this patient advocate, I was like, "We do not need a patient advocate." Over the course of the next hour in meeting with them, I was like, "Oh my gosh, if we don't have a patient advocate, like we are not going to be knowing what to do." So, the patient advocate is really designed around two things. one, it's going to take a look at that health risk assessment data, Linda, that you mentioned before, and it's going to say, "These individuals really need to be seen by the clinician, and it's going to start working towards edging those

214people to come see the clinician or to go see a primary care physician." So, that's the first step of that patient advocate. The second one is I go to the clinic and nurse practitioner says, "You're going to go need to see a specialist for X, Y, and Z." patient advocate is on it working with the Garner app, working with getting you in to see what that next step is. Um, and the the people at Proactive and Beast told this wonderful story about um the patient advocate at multiple clinics driving actually to a physician's office who has said no, they won't see them and waiting until they can get an appointment at the physician's office for like something catastrophic. So, by the end of it, I was like, we have to have a patient advocate. It

215seems like it's like this is going to be something that helps drive and we'll talk a little bit later about what their estimates will tell you the patient advocate will drive. You will see a higher year one fixed cost with Proactive MD of about $80,000. You will however also see a lower annual cost increase. So it is only 3% to 4%. It is slightly lower. over 15 20 years, we might make up that initial $80,000, but off the bat, we're looking at $80,000 more dollars to go with Proactive MD. There are uh essentially pass through costs that will come with both providers. A pass through cost is simply this. It cost them $6 for a medication, they're going to bill us $6 for that medication. It costs them six cents for a tongue depressor, they're

216going to bill us six cents for that tongue depressor. Now, they do that in aggregate on a monthly basis. You'll see that Proactive MD is estimating $70,272 in pass through costs in year one. Quad Med 29,652. I think this is one of the key components about Proactive MD that I do really like. They're basing their estimate off of a 100 plus school district clients that they have. So, they're taking a look at actual school districts and what utilization is like, pairing that out to our about 1,200 people that will be accessible to our clinic and telling us it's going to cost $70,200. Quad Med is taking their 55 total clients who may or may not be school districts and saying it's going to be about $29,652. I will tell you, Quad Med works primarily in

217the manufacturing workspace. So, the clinic needs are going to be different than what we're going to need. Not necessarily that that's good or bad, but their estimates are going to be based off of a little different model than we're going to have. This break even analysis is really where the rubber meets the road when we start comparing Proactive MD to quad. So the top graph is Proactive MD. The lower graph or the lower portion is QuadMed. The two things that we're going to look at are yearly net savings. So that's going to be actual cost versus estimated health savings. And then we're going to look at that estimated cumulative health savings. And that's really where I want us to focus is that estimated cumulative health savings. Those are really estimated cost diversion because we're seeing

218or that person or individuals are being seen in the clinic and having one that clinic cost versus seeing a a physician outside. Two, it's cost aversion because one, we might be managing things better. So, high blood pressure as Mandy mentioned those chronic conditions. Are we managing those chronic conditions better? Um, or are we getting them into Garner into the right app with that patient advocate or is that patient advocate getting things done faster? So, typically in health, the sooner we catch things right, the less chance it is of being catastrophic and we typically can solve it faster, better, and have a much better outcome for the employee. By year three, you'll see with Proactive MD that not only do we have an overall savings, we have an estimated $3 million of health savings by year

219three. And that cascades to year five to about $6.5 million. And again, that's cost diversion or actual savings. So, there's a little bit difference here. We will see actual savings by a person seeing the physician or nurse practitioner at the clinic then versus going to their primary care. Um, Quad Med, we're going to meet that full cumulative savings in year four and by year five, we'll only see a cost aversion cost savings of 4.4 million. So, $2.1 million difference between Proactive and Quad Med. One thing before your question, just so I can finish this slide, you'll see the utilization estimation is different for each group. Proactive MD starts at 35 and increases by 10% by a year by year five. Quad Med starts at 20 and gets up about 30 more% by year five. That

220is directly tied to what they're seeing with the patient advocate and the patient advocate driving people to the clinic finding those next steps should a person need that next step of care outside of that primary care model. And again, that is coming from their book of business based on the 100 plus school districts that they're working with. So those again savings are tied directly to that patient advocate which again was taking back to that like I started off going no way we do not need this to oh my gosh like this is a it seems essential component to the clinic model and that's based on their and that's based on the hundred school districts they that they're working with and what they're seeing. Yep. That's an average roughly local districts or nationwide disease. So they're

221nationwide. Um they do have a clinic in Wacaaw. So we would be their second in Wisconsin. But again, their model is not built on the shared piece. So I I less of a concern about that. Um I will tell you with both models is really if the clinician is sick, what do we do? Um Quad Med had they're more regional, so there's a better chance we're filling that today. Um but Proactive MD gave us pretty good assurance. I won't say it's 100% but a pretty good assurance that they'll still have a they'll have a pool of individuals that could fill in on a daily basis if we needed um nurse practitioner gets sick and just not here today. Um neither one will tell you it's 100% but I feel confident with both that we would

222be able to fill it as much as possible if that happens. Um both of the vendors are willing to put part of their normal fees at risk. Um, Proactive MD is up to 10%. Quad META is at 7%. And those are really based off of ROI. So, um, Linda had sent a question earlier in the week. So, they're going to set a baseline through the course of the first quarter about where population's health at a bunch of different metrics. And those ROIs start building off of what is that initial baseline that they're going to understand about us. Um, that's going to go with experience performance as well. So, everybody that goes is going to have the opportunity to rate how was this and on a series of questions. um chronic condition engagement, chronic condition management.

223So, both of them are going to work essentially off of those four things. They're going to be at different levels, but roughly the same from how they're going to vend uh view them. Some additional considerations. Um Proactive MD talks about employee their employees. So, we're thinking nurse practitioner, their patient advocate, their LPN. Uh part of their raise is going to be tied to our population health improvement. that's going to be set again in that first quarter off of that baseline and how do we um drive improved health. Um marketing proactive MD focuses a lot on people that patient advocates job is out there marketing this. So meeting with staff in their building or um you mentioned gear up sessions so coming to gear up sessions and doing things along with that. Um QuadMed spends uh

224most of their marketing is on print material so things we could email out. Um, both have experience with Garner and direct contract, I'm sorry, direct contracts. Proactive MD does have experience with Garner and navigating that. So, taking an employee who needs to see a specialist, taking them right on their phone, going right into the app. Let's find the specialist. Let's get you that appointment. Now, we're going to do that whole next step with it and get you that appointment right now as well. Um, experience with education, as we mentioned, Proactive MD has 100 plus K12 clients throughout the country. um virtual um Proactive MD does have a virtual option for patient use. Now, I will tell you that your first meeting with Proactive MD is going to be on site. As an employee, as a

225dependent, you're going to go meet with the clinician. If you have some of those more chronic issues at that point, can they do a virtual option for you and meet you on your computer at home, whatever? Yep, that's going to be an option. But your first visit's going to be on site. that clinician is going to want to meet you understand uh we talk about medication dispensing. Proactive MD has a stronger platform for dispensing medications. They have existing contracts to help manage costs. Quad med was a little bit adverse to that at first. They're not as robust in their having an on-site dispensary. So, it's a dispensary, not a pharmacy. So, that's important to note. Medications come prepackaged. They're non-narcotics. So, antibiotics, high blood pressure, high cholesterol, but it comes prepackaged. So your 30, you

226know, your month prescription of um high blood pressure medication is going to come in a pill already prepackaged with 30 pills in it. They're not counting out 30. So dispensary. Um but Quad Meds is not as robust. Their contracts are not as robust. Proactive MD um wide ranging. I will add one more component that we did add up here. Um Proactive MD really is looking to invest in themselves. So, um, while this is not up and running, they have purchased it. They bought their own lab. So, they're sending labs to their own lab company because they want to control the time it takes to get the results back and not be at the uh back and call of somebody else. So, I was like, local. Um, well, they said 24 hours. I don't know if

227it's local or where it's located, but they said if I have my blood drawn, they're sending it. They said they could have results in 24 hours. Where? I I have no idea where that is and I'll say I'll take your 24 hours that what you're telling us can happen. Um so ultimately we're bringing a recommendation for for proactive MD. Um again a higher initial cost. We understand that long term when we think about where do we want healthcare in the long term kind of plateauing long term we think proactive MD um will have a better strategy to do that. Um we felt much better about them as a group. Um I would say less robotic um and more really patient focused is what I got. So um probably everybody's had a physician that's been very

228patient focused and one that's very not patient focused equally good. They're just different ways to approach. Um proactive MD seems to be a little bit more of that um handholding patient focus. Education background too, right? A lot of their clients like you saw on the slide earlier are education based. So they had a really clear understanding to, you know, what does the workday look like for the majority of our staff? What are some of the early hours we'd want to clinic or later hours if people staff are trying to get here before work or after? Um, and just a general understanding of like time in the office compared to getting back to if you have a classroom or students that you're returning to. Um, so I think that was one piece that stood out when

229you talk about it being like a better feel. It was like there's a true understanding of what it looks like to serve educators and people working in an education system. um and having that experience uh and that background right 100 clinics that are running out of education they have people to lean on uh and they were here and very professional um very invested in wanting to make sure that they are here to serve our staff so that advocate that Andy's talked quite a bit about um I think grew on all of us through learning more about it and I think it puts that layer between right healthcare is so personal and we don't want to know what's going on with people individually right that's not our no space but having that individual person that can

230go into buildings and talk at staff meetings. I can advocate for what's going on in the clinic. Um that can be seeing trends in maybe what's going on specific to our employee group to offer even wellness aspects and things like that. That's where Proactive really came through um in their practices and they're like they are going to get you connected with somebody right away. So, if you need to see a specialist or whoever that is, Andy mentioned it, whether it's we have the Garner app or not, depending on the prior decision, they're going to find and get you on the phone if they can or get back to you right away. So, like there is clear advocacy happening. And I think that in our busy lives, what we hear from staff is that that's something

231that we can help through the clinic taking off the plate. And that didn't come through as strong with uh with the other group. Go ahead. Um I just want to clarify that this is all going to be happening in parallel with people's own they're going to keep their own primary care provider. This is sort of a parallel system, right? We're not forcing people to use our clinic instead of their primary if they prefer to go to the it's a very good question. So I again this would be the third clinic that I would be involved in. I will tell you the first two um we pitched as more um acute care but can be your primary care. Um, I think in following up with Proactive and talking with um, Laura and Brown and Brown, I

232think the idea is to pitch us as a primary care clinic that can also do acute. But to your point, yes, you do not have to go to the clinic. You can certainly keep your own primary care physician and use it as acute. But our goal is really to have this individual become primary care for a good portion of our population. Um, it it it's certainly not going to be for everybody. people have wonderful relationships and things like that, but um it it can be that primary care model as well. To that end, this person's personality is going to be very important. And how much um input do we have in the hiring of this person? Yep. So we Yeah. So we will do um Proactive MD or Quad Med. Well, they're going to vet

233the medical component of it. Like I I'm not going to sit here and say I can vet any of that. we will have a chance. They'll bring those clinicians that pass whatever X, Y, and Z interviews they have. They're going to bring them to us and we're going to have the ability to interview them and then say, "Yes, we think that's a good fit. No, we don't think that's a good fit." And then we go from there. So, um, having been a part of those before, I've been through um, in West Dallas, we interviewed four people and I did not like any of them. Our our interview team was like, none of those clinicians are going to work and come to the board with some new ones. um and then went through a whole another

234panel and said, "Yep, we could work with three of these four and then ended up settling on which we thought was the best." But we'll have that same kind of philosophy here of which employee or which which of their clinicians employees do we think is going to work best for us. Just a question on on the management fee of 251,000. How does that compare to other clinics that you our consultants here have been lovely. Yeah. So, that um dollar amount, there's several factors that go into it and the way that it's rolled up under each vendor um has a bunch of different caveats and nuances. So, you can see um even when you look and compare it from like it costs, how much they differentiate amongst the two vendors. So, we can provide you with

235that specific breakout as far as what that management fee kind of all entails, but it it does look different across the board, but that's not uncommon to see that dollar amount. Um, yeah, I just see what's in rolled into there. Can I ask, as long as we're on this slide, can I jump in and ask um related to the staffing level? I guess there's a couple questions, but I the salary that's the salary for just those three people. That staff is their salary and benefits for those three. What time period though? For a year for year one. What hours? That's Yeah, that was going to be part of Are they clinic will be open 40 hours a week? Yep. It'll be 40 hours a week. Hours are not totally decided, but we know there'll be

236morning and after or evening hours, and they're proactive employees. They're not Franklin public school employ. That's maybe I That just seems like a lot of money for those three people knowing. I wonder if does that include their malpractice insurance? Yeah, that that's full comp full benefits. I guess that would if malpractice insurance is tied into their staff um reimbursement rate, then I understand. I mean to some extent. Yeah. But I mean I'll pay a yearly salary. I don't know. Be generous. That's Yeah. as do you want to just I mean I'm an RN so I don't know would you hire an RN and obviously not me but like is it going to be an LPN or is it possible it could be more expensive because you would have an RN instead of an LPN I

237just just seems like a very high amount for those so their model is based on with a patient advocate so I don't know how much money they make in a year but like just in terms of yearly salary that's that's a lot of money um but they are going to be there 40 hours a week so it's not like they're like halftime or something like that. Yep. Um Okay. I I had a couple other questions, but go ahead, Mary. No, no, go ahead. Finish. Well, I just kind of going piggybacking on to Angie's question about having other you know, you might still have your primary care physician or maybe you you know your I don't know whatever specialist or something like that. Does proactive's medical record trend like do they use Epic or something like

238that in my chart? like if I see the clinic here, will my primary care doctor be able to access those records or is it like we'll print them off, you can fax them to your doctor, you know, what's the Yeah, that's a really great question. So, um, Proactive MD utilizes Athena. Um, so while not on Epic, it has the ability to communicate and connect with Epic without any problems. And even health system to health system, even if they're both on Epic, there's still issues across the board. So just being on epic alone wouldn't eliminate you know issues altogether but proactive MD is very comfortable with working with health systems and sending over records as needed. Yeah that's I mean obviously Epic can be different but that aspect of like will the systems interface at all

239with lab results and you know you know if you do see your primary care and you need to let them know what your cholesterol was or whatever else that might be. You have another question. Maybe. Go ahead, Mary. Go ahead. So, I don't see MD up there, but there will be an MD affiliated with the clinic. No. So, every every nurse practitioner, physicians assistant has to work under a um doctor. So, a licensed physician. So, part of the management fee for both of these groups is oversight of a physician. So, that nurse practitioner in this particular case, for both quad and proactive MD, if something is outside of their realm, they can call a doctor and have some oversight. The doctor will not be on site, but it is part of their management fee. But

240the person you're interviewing that you sent would be the nur we'd be interviewing a nurse practitioner, not the doctor, not the over. I was going to say, is the doctor going to be with Garner, but there is no doctor to the doctor is somebody that proactive and quad has on staff. We won't interact with them. Employees going there won't interact with them. They'll interact with the nurse practitioner. Nurse practitioner says, "This is maybe a little bit deeper than I think. I'm going to call the doctor to say, "What are your thoughts? Here's what I'm seeing for X, Y, and Z. What are your thoughts?" What is the mental health aspect to any medicine? I apologize if I've overlooked it. So, as currently provided, there isn't a me mental health specialist with either of the staffing

241models. That would be something that if we wanted to, we'd bring in at a later date. I just envision that being kind of top of mind. We do too. Yeah. Yeah. No, that's a great question. And the patient advocate is actually a bach has a bachelor's in social work. So they have a very broad understanding and strong understanding of what mental health you know equates to the patient experience and journey. There is an opportunity to scale that up to a licensed clinic social worker but obviously that comes at a cost. That's actually thank you for saying that. That's part of my question is like you know patient advocate what are their qualifications? So a patient advocate would have to have a social work degree to be in that role. Correct. That's pretty important. Change careers.

242I was just gonna say we're trying to make career. Mary Mary, your comment though about Garner is important. So if Garner remains as a benefit as it is today and the clinic gets implemented, that clinic will be available and at the top of the Garner app for the patients on the medical plan. So when they do search it, that will so promoting awareness, driving utilization into the clinic, that will always be kind of a continuous reminder to patients or to the members. What? No, they're going to be here 40 hours a week, which is a lot. if they're here until, you know, 5:00 on a Tuesday and my kids, my kids are older now, but somebody's young child gets an ear infection, you know, like whatever after hours, is there any kind of like wraparound

243care to that or would that just be an urgent care visit at that point if you can't wait till the next day? I cannot Megan, you know, a little bit more about that one. Yeah, so there there is a wraparound with virtual care support. Um, so after hours support, I don't have that up. I have the spreadsheet up here, but I'm just looking to see if I can pull if that's um what the additional fee would look like with that. That's amazing. Actually, yeah. Well, I mean, 40 hours a week is amazing as it is. Um and talking about the dispensary, sorry, I'm going to jump over the place now. Um I'm kind of excited about this. The dispensary, those medications, if I need my thyroid medicine and I go to this, you know, I'm

244seeing here, that medication is free to me. So, as Yep. clinic. So, I think like an important distinction if I if a person comes in with high blood pressure and and just wants to go to the clinic to get their high blood pressure medication, that nurse practitioner is going to want to meet with you, have a conversation before they are going to say, "We're going to give you high blood pressure medication." It's possible that over the course of the next five renewals, they're just allowing you to do that or just come in and have your blood pressure read and then you get your medication and then like next year you're back meeting with them again. like following that. Yes, every medication there is free. So, child comes in with sore throat, gets a moxicone and

245they're taking it in the car, right? And they won't have every medication, but no, typically it's like the top 60 to 80 uh formularies that come out of ours and then what they're seeing um from a regional basis will Oh, be dispensed there. You you read my mind. That was my question is do they stock based on what they think we need or just based on it? It's not willy-nilly. It's taking a look at our health plan of what are we using a lot of or what are they seeing that's happening in the area. So, um they'll have that as well. That's part of cost though, right? That's a pass through cost to us and I have been part of clinics where we stock something and all and like that medication expired because nobody came

246in to use it and then the next month it's like oh my gosh we need like five more moxicans because strep throat's climbing through the area and everybody's getting it. So, um, there pluses and minuses to it, but it is a very good benefit from being on site and being able to get my medication right there. Vaccines are expensive. Are vaccinations provided through this clinic? Yes, they keep the vaccine free. And then what's up with the office supplies difference cost between proactive and quad? So, that's something that we have to talk about with them because like I and I joked about it too is like with Katie, I'll buy the paper and the markers, right? And stockholders. So, I like to me that that uh we'll review the startup costs, too. Like, we're going to

247want that list of all the things that we're going to need. Um, from a clinic furniture standpoint, like I'm certain we can go out and buy chairs and things like that. Now, I don't know about the medical table and things like that. They probably have a better vendor for that, but for chairs that are sitting kind of in the lobby or for a computer desk chair for the MA, like we can procure all that stuff. So, like I'm not locked into the medical cost. The biggest thing for us to review is staffing, management fee, it because all of those are coming up. That implementation cost is going to be a non-negotiable to start with, but those startup costs and those uh supply costs like all that like we'll talk about them and if we need

248to just drop off paper in the office, we'll just drop off paper in the office. So yeah, our team is really good about the nice to haves and the need to haves because if you give them a blank check, they're going to make it really bougie and it needs to be it needs to be appealing to an audience, but it needs to be Yeah. Yes. And going back to staffing, you said you would be part of the interview process personalitywise at least, not medical wise, but for all three people or just for the main practitioner? Typically for the main practitioner. Um, I have to be on the patient advocate one. That person's going to make or break. Well, and will that my next my kind of followup question is will the team have voice and

249you know what I mean? Like will the nurse practitioner get to choose who her LPN is? Push that back to Megan. She'll know more about that. How do they do that? Because that function typically, you know, they would recruit for the NPPA and go hard after that. That's going to be the hardest position to recruit um out of the gate. But certainly the Brown and Brown team is involved in all of the hiring and decision-m as well. And we would certainly request that the district is part of all of those interviews if that's the direction that you guys want to go and they wouldn't have any problem with that. Yeah. I just I just think that the inter it's three people in an office, they have to work well together. So it can't just be

250three strangers who are like here you go. But like I feel like there might need to be some and and we've seen success with other clinics too that we're opening up in which we find the NPA and they have their MA that they want to bring along with. So we highly push and advocate for that as well. It's exciting. I think it'll be a huge benefit when you ask about like with Laura. This will be something that she will talk about and hiring. Yeah. Well, because I think you had said it would be for anybody on the health plan, but also employees who work a certain number of hours or something that Yeah, we haven't don't have a specific name for it, but like an employee who has set hours that works with us on

251a regular basis. I was thinking all of our EA's secretary of staff. That's what I was thinking is our our EAS who might not have our health insurance but they was you know they have strep throat or something and they need their or people that take cash and loo that have a health plan somewhere else this would still be an option for them. Does this um does adding a health clinic could it help employees in terms of um if we offer if we go to a single plan? Is this almost a second plan that is zero deductible? It it's not a second plan, but it offers that zero deductible option, right? I can go see my primary care without any cost to me. So, I don't care what your deductible is. keep it at the

2525,000 $10,000 a day going to cost me nothing. So I go there I get my yearly appointment maybe they find something out I can still follow that model all the way through at a zero cost to the employee. Now if they outsource you to a specialist or whatever have you now you fall under the health plan and things like that but anything inside of the four walls of the clinic like that's all free or we are promoting it as all free and that's how we would like to keep it and we would request that the board would keep it that way because truthfully again if we're going to drive users to high quality health care that finding ways to advocate for the patient which is anything that's free is help helps advocate for that is

253how we would request request the board also allow us to move forward with that. Well, and I mean I'll just say as somebody who uses a similar clinic in a different district, the idea of it being free is why we go to I mean that's it's it's a great benefit and we don't have 40 hours a week at my clinic. So it's really huge benefit. Anybody have further questions? I'll just be up though. Could we start smaller and add hours? We can. I don't have the cost for that. We can. It's harder to recruit. For sure. Yeah. Yeah. That's what I was going to say. You certainly can. The challenge is recruiting. When you look at a NP that's coming over, they're going to want to be most likely benefit eligible. So, you're looking at

254a point. 8 in order to hit that benefit eligibility mark. So, it's really challenging to recruit for a 0.5 um in any position across healthcare in general unless obviously they're splitting their time in multiple organizations or facilities. Anybody else? No, I was just going to say thanks for putting all the work into finding this and creating this whole plan. I know it took a lot. All right. Um, thank you everyone. Um, thank you. All right. We're on the homework stretch. Do we want to stop for a few minutes? No. Oh, I didn't get a vote, but I accidentally said no. I could have. All right. Um, let's move on to board of education meeting dates. Oh, hold. We have uh one more item here. Sorry. Recreation department tax levy. We have a few items. Oh,

255sorry. Yes. I was already jumping ahead thinking I was going three in a row. My bad. You get a break. I do not. All right. Board of Education meeting dates. Um so one question came through on this as far as the date that um overlaps with the senior night in May meeting. Um so I said like it's discussion decides to work. Yeah, we can change it. Uh, I would say the biggest thing is you get moving out a week, which makes it June 3rd, which is the week before school is out. Was there a dump truck that like banged it at stars if you were speaking earlier today? I just asked him like 15 minutes. It was like My question with this is could we just move senior night to Tuesday or Thursday that week

256instead of having to move I mean, they set those dates early. I can ask. Absolutely. This conflict came up, I think, two or three years ago and both things were on the same night and they moved the senior night. So, it seems like with a year of advanced notice, the Saber Center probably isn't booked. So, is there a reason senior night has to be on Wednesday? We can move it to I don't care when we our board meeting. I don't have plans a year from now. Is there is there any issue with so is there any issue with um does the board meeting have to be on a Wednesday is what I'm asking. It's going to be if we either change the senior night or we change the board meeting. If we're going to change

257a board meeting, I'd rather move it a week out and keep it on a Wednesday. I think board meeting should stay on a Wednesday. I'm fine with that. I'm just I do. That's that's change senior what we've had. So, how about option one is if senior night can move, let's do that. And if that doesn't work, can we move the board meeting to the following Wednesday? Well, or would we move it to a previous Wednesday to keep it to keep it in two in May? Well, I'm wondering, is this just a one-year issue or is this No, senior night is always the last week of May or generally the last week or two of May. But does the board have to be there? The board is often there. that board. I love it. It would

258be nice if there was I don't think I' ever been here before. Honestly, I've never been to a single night ever. Even when you guys were talking about it, I was like, I've never been. Connection to the board. And oh, see, and I just I guess my point with this is even This is very loud all of a sudden. Did that all start working now? We're not touching very loud. Um, I just think in general there shouldn't be, if they can be avoided, there shouldn't be other major district events like this on a night when there's a school board meeting because for, you know, it might be senior night for, you know, maybe I want to go to that as a board meeting, but m as a board member, maybe it's a concert that Linda

259really wants to go to as a board member. Maybe it's a saber center community event that we all should go to and support. You know what I mean? Like I just don't think as a general rule we should be scheduling things. you know, maybe it's an open house at your elementary school, but you can't go because you have a board meeting. You know, I think in general, and that's a bit maybe a bigger conversation, but if it can be avoided, I think that there shouldn't necessarily be district events on school board meeting nights. So then what do you think we should move? The school events or the board meetings are pretty consistently on Wednesday. This is a larger conversation, but for next year's schedule, the one thing we're talking about is senior day. So, let's

260see if senior night can be moved to a different day of the week. And if not, that shift the board meeting. I'm seeing a lot of nodding. You okay with that? Yeah, that's fine. Or just do it the following week, like leave the board meeting on the 27th and do senior night the following week. Yeah. Any one of those. That's a little harder because you know the end of senior year and that kind of stuff. It's even in the district, it's almost always that last week of May everywhere. Yeah. And the week prior is usually national honors induction like on that Wednesday from the district perspective which is really the cadence is off next year because of where spring break falls. I was just looking back at the calendar because I remember grappling with these

261dates with Darlene and it's the 8th if the ETH was our April dates it would be 8:15 instead of right now it's 1529. The difficulty with that is that packets are going out on the Friday of spring break week, right? So that shifted it to be back like a week back in office, week and a half before you're back at the board table. So that's where the cadence gets off next year. Doesn't change the discussion right now, but it probably falls on the why does it not fall on the same night every year? Like really this falls for spring depends where spring break. Let's see if Mr. Volvo and uh Mr. to it are okay with the Okay, I have another question. Why Why are we putting key communicators on here? We just added them

262on so the board had an idea. It's a board run group, board and district. So, we put it on here just to show where they fall in comparison to board meetings, but it's not I mean, don't we have some legal requirement to set board dates, not key communicative dates? We can take it off if it's a problem. We're just trying to make it for where they are. if you wanted them the same week or opposite weeks because we try to lay them opposite weeks. I kind of personally kind of liked having that to see how they fall and because I mean pee communicators exist because the board asks for it to it could go away also. What? It could go away also. It's not a If it did, we would take it off the calendar.

263Well, are you saying it is a legal problem or or you think you approve board meetings annually, so you're just saying don't put it on there? Right. I think it's perspective. I look at it, right? The whole board's Adam because we run it together, but it doesn't we would have to have to be on there. All right. So, we're But when we approve, we're going to be approving the meeting dates. We're be going to be approving the board meeting dates. But the key communicators could stay on this worksheet so that we know when they're going to be. Well, that would suggest that we're approving them. Don't. Okay. Let's move on. both. You take them off. Is there a consensus to take them off? Yes. I already have them on my calendar. I was going to

264say quick take screenshot. Darlene will in her wonderful way send out meeting invites so we will get them. Is there a motion? It's next week. We don't have All right. Up for ready for now. Okay. All right. This is just for information only and this is coming based off of the conversation with uh Matt Gomez and the recreation department from a couple of board meetings ago and just trying to give you a visual to explain the levy process that I discussed. So again, prior to putting this together, we had a dollar amount. not necessarily any rhyme or reason behind it. Um it's been in place for a significant amount of time. Um was raised in a following a conversation with uh Mr. Millser when I first got here to the 684,000 you saw, but again

265not necessarily a rhyme or reason or exactly what it's tied to. So um and working with Brad because this really stemmed from uh conversations with Brad over the last year and then Matt taking it over in November. Um so really there's a few steps. So, I'm just going to walk through them. Step one is to calculate the anticipated salaries and benefits. Now, when we actually do the levy, we'll know what the salaries and benefits will be, but for the purposes of today, we're calculating the salaries and benefits, and those are straight from this list of individuals who are right here. Can I ask a question real quick? Yep. Is that one of our existing district nurses? Are you hiring a new nurse? That's an existing person who's already being paid for out of recreation. The

266only new addition to this is the CIRC manager and a 0.5 FTE on the custodian level. I'm sorry, just to clarify again with this nurse, we have two district nurses and one of them is paid out of one is considered a community nurse versus Thank you. They always have been. We just correct. Yeah. How did I not know? It wasn't broken down like this. Interesting. Um so again, step one, calculate salaries and benefits for those individuals. Step two um is to calculate estimated utility costs. So um we're working with data wrangler Andy Daniels um really is spearheading this. So we're getting a utility cost for both food service and for all the things associated with recreation. So whether those are events where a person is paying to rent our facilities or their feeder groups being

267used but outside of school hours and not district using them. So when we host the fall play in the Saber Center, that's a district-run event. District is operating the Saber Center. When uh Forte comes in and rents the Saber Center, that's not a district thing. There's a fee associated with that, but we're running utilities to keep it at a certain blah blah blah. So in any case, we have some software. So what this represents is about the first five months estimated cost of utilities. At some point that will transition to all 12 months when we have all 12 months of data. Um you can see that that is 22,500. Again those are tied directly to um recreation events a plus or minus. So taking our prior year net operating actuals. So if we were ahead

268last year revenues outpaced expenses you'll see a reduction. If expenses outpaced revenues we would add. So we have salaries utilities. We had a net positive last year. So, we're reducing that and saying our fixed costs are this $1.172 million. Then we're going to do a fund balance adjustment and we're going to try to maintain 50% of our expenses. So, right now in looking at Matt's budget, he's estimating 1.969 million. So, we would need $984,000 to meet that 50% threshold. Our current fund balance as of the end of the year was or anticipated this year to be 1.896 million. We're going to use or estimated to use a million dollars to finish the CIRC. That was part of the overall CIRC costing. So that would tell us that we would end the year at 8,968,000. We're

26988,000 less than what we would anticipate or what we would like to hold. So we would have to add that 88,000 back in. Now, if we anticipate being higher than 50% at year end, we would subtract because we wouldn't need to hold that. So, that's where the then total 1.17 plus the 88,000 gets us to an estimated tax levy next year of 1.26 million for recreation. So, we'll calculate this all in July after we know where salaries and benefits are, we know where the year end's going to um sit, and we'll come back with a new number. One of the questions is that's quite a bit higher than last year. It is. Last year was 684,000 simply for running this. It's going to take us about a year or two to rightsize till we get

270to whatever that correct number is. My estimation is probably truthfully somewhere around 850 to 900,000 is probably where we would be right sized. I just don't have the exact data to show that. Presumably over the long run like we would be taking off instead of adding 88 probably taking off $300,000 because our fund balance will have exceeded that 50% threshold. So we'll reduce that. So there's a a couple years of a like smoothing out period until we probably come to a pretty consistent amount every year. So basically we're resetting the base. And I guess we have to also think about program revenue. So we're increasing our cost doubling know 684 million too. And what about the increased program fees that were that's why we're building this to offer more programs. Correct. Um so those are

271all built into Matt's estimated budget. So you're not seeing the full estimated budget over here because it we only need the estimated expenses for this to run this particular model. So would that reduce the levy then? Not for next year but presumably for 2627. Yeah. Then that's where that's why we would see that smoothing period because we'd be comparing actuals of 25 26 for the 26 27 school year. So you're anticipating that step three will be more favorable for us going forward. Correct. I guess how does that work though? Because we're running more programs because we're resetting the baseline. So this is the reset year and now we're providing a strategy behind it. Like this is a why. If you ask me where we come up with the 684,000 and what it makes up, I'd

272tell you I have no idea. It was a number that added 40,000 to what it was previously. I don't know how it was. The idea is that the you're covering the cost of the staff with program revenues. Like the nurse, we're not covering the cost of the staff with program revenues. Why aren't we? I mean, certain staff are base staff. I get that. But other staff are connected to PORA. The nurse is connected to nothing. There's no program for the nurse. And why do we have the nurse? You tell me. You've been here way longer than I have. I don't know. That's your answer. The answer is I don't know. Why was that position hired? Then maybe we don't need the I I you you tell me why I was hired. I don't know why

273I was hired. I can tell you we have two nurses for the one for the community aspect. So working with the city, working especially during COVID that time working with the city and then both of them work directly with students and plans with schools to help make sure that our students are safe. Why we hired two initially I don't know what the need was at that particular time. I can only tell you what the need is now. Maybe the question is why is one of them paid for out of the this um um my guess is at that time it was a cost savings measure to hire two because we couldn't afford for it out of fund 10. Once it's in community service we just have to make sure that they're doing community service work

274that meets the threshold of fund 80 recreation which we are but at that time it's probably a cost savings measure to the general operating budget in order to get a second nurse. just put cost over there. I mean, seriously, you're saying that's what they did? Nope. The the question was why do you think? I'm providing a why do you think? I'm not saying that's a for sure. The rules around recreation used to be very loose. They have tightened up from DPI over the last eight years or so. So, you have to provide a much better definition or job description of what that person's actually doing to meet that threshold. But prior to that, it was having the nurse in the recreation department currently meet those rules. Every every position you see up there does is

275required by our needs. Every position you see up there meets the threshold of qualifications to fund under recreation. But none of these things are like she is the nurse for the basketball program. No, there's no program tied to the nurse. She doesn't work with the before and after school. She does, but not directly for them. She works with our school district as well. She works with the community as well. She's not hired because we have a before and after school program. If you were to follow them around all day, they're very little time is spent at the before and after school. Probably what's happening is in the fall, we have a student with needs. She's meeting with the program that's running the before and after care to explain what does this child need to make

276sure they work and then not working with them again till another child meets that threshold. move the nurse to the general fund. We would save tax money here and we would add X Y and Z to the general operating deficit which will there be other state revenues there would be no other state revenues for that it would be part of the overall cost the general fund so increasing the general fund deficit then we would take some money from teacher salaries it would come from somewhere it would be an honest use of the this is honest it still is an honest use of the funds I'm not sure we need the nurse Oh, that's not a conversation for it sounds like it's here because of funding, but it's just not a reason. Again, all of the

277people, the job descriptions for them meet the threshold of why we would have them in community service. I can't explain why they were hired initially. I I was asked for an interpretation, so I provided a potential interpretation, but right now they meet the thresholds of why they're in recreation. Can I see the I'm sure you can. Yes. And why do we need CIRC manager? Because that building is going to have a significant amount of people coming in every day. Those people that are currently working, so Matt, our directors and our coordinators already have other jobs that take up their time full-time. But who sets up this room? A custodian. Well, a custodian's not managing the CIRC. They're not directing people where to go. They're not helping to coordinate events that are happening inside of there.

278Think Tracy at the Saber Center. Like we wouldn't just have a community custodian manage the Tracy community come on in and do what you want with this building. Well, there's good there. I mean all of the uh coordinators are going to be in that building. Correct. Already doing their full-time jobs. Well, who manages the front desk now at the department? They step out and do it. But they don't have community events happening in there. There's nothing to help clean up. There's nothing to help set up. It's an office. But why can't the person setting this up set up because they have a full-time job at the middle school. That custodian that works at the middle school steps out of their job over there to come over here and set this up. This is setting up

279some tables and chairs is different than operating a facility that has multiple studios, a community room, and a pickle ball. Sorry, why are we talking about this at the board table? this specifically the management of I was just the budget for the cir building where it's establishing tax levy for the recreation department. Why would we not be talking about it? He's got a list of there that shows me a circ manager. Why would I talk about that? You asked the question and it was answered. So I I suggest we move on is what I'm saying. I you don't agree with the answer but it was answered. You need the circ manager to manage a building. Does anybody else have further questions about direct rec department I want to be understand though that this is the

280max then it will be going down from there because you're saying no what I'm saying is we're setting the baseline is it possible it goes up it's possible presumably it's going down probably by a pretty good amount but I'm not going to say for certain it's going to go down but if As a betting person, I'd push my chips to the it's going to go down side of the I guess I would like to see what you're proposing for the 25 26 complete budget before I Well, I'm not asking for approval on this. This is just for information at this particular point. Well, do we think we might need a policy to um wrap around this now that we're starting with a new base? And to your point, a job and didn't know why. It's

281really just a procedure. I don't know if we need a policy. This is just a procedure. any anybody should be able to take this over and plug and play and now come up with what step five is. I think this is helpful to see an explanation of how he arrived at his budget request for department. I don't think it's a policy. It's how he's doing his job. Well, we can kind of again this is a base amount that you're saying that these staff are appropriate and these are going to be and you're not taking into account revenue. That's my question. Where is step three is revenue. Revenue that is going to fluctuate depending on how the programs performed the previous year. Net operating actuals. So feeding into that will be revenue minus expenses. The only

282thing expenses are used for the 2526 expenses are used for is for that estimated fund balance hold of 50%. It's helping set that. Well, let me ask you again. I want to see what the operating actuals are going to be. They're actuals. The actual You'll see that all with the budget when that comes. Well, they're estimates. Yeah. When that comes in May, you'll see that all. I think we also need to look at um the fee side of things because you in the email you mentioned about the um because we do this building is funded Not in the city tax role, but just the school. Correct. So that means that 25% of the tax role is not funding this program. Even though they have access to the building, they're not paying for it because they

283live in other districts. How do we account for that as a fairness between taxpayers? As was sent back in the email, they pay a $30 fee up front. I think that needs to be looked at. I don't think that's enough. If you do some basic math of 25% of that million two doesn't come close to a a $30 fee, but you wouldn't expect to make that up in year one either. Well, because that building should presumably stand for a significant period of time, right? So, no business is making up construction costs in year one. A million two is happening every year from the tax levy standpoint. Correct. So 300% of that cost is should be should be coming from districts that residents that are not in our district and that's not $30. I disagree with

284your philosophy that the recreation department should be completely self-funded through fees paid by people participating in the programs. I think philosophically we have a difference in that the recreation and community program is meant to be a service to our community as a benefit of living in this community and not a fee for service experience talking about I fundamentally disagree with that's not what I'm talking about kind of is not it's a tax fairness issue okay a couple of things one we may there may be a time to address the fees but I don't think that's today Um but certainly could be with the budget. Um but secondly, I would wonder I would wonder what that question is. Do do the people that um Oak Creek has a recreation department. Um and I don't know if

285those I don't know those people that live in Franklin but go to the Oak Creek Rec Department. Um they charge a non there's a non-resident fee. So, you pay a fee and a non-resident fee. So, for every program, it's not like a $30 catchall and then you pay the fee or whatever. It's resident, non-resident. So, there may be a time to talk about fees, but I don't think that's today. I would agree. Before we open the doors, that would be an interesting comparison is how other districts handle out of resident participation fees. I think they just have a two-tier structure, don't they? Yeah, most of the time I think they do. If you're in district, you pay this for a program. So, it's it's not hitting everyone. It's hitting the people who choose to do

286a lot of programs. Does anybody else have questions about this? All right. SNC Electric Company donation Mr. Cwley, please. Yeah, sorry. Yeah, it's not going to work. I keep going because like there's a strange smell coming. Look at me like while I'm looking like Sorry. I do smell it. Thank you. I was trying. It smells like electrical burning. Yes. Yes, it does. Thank you. So, I'm monitoring it. Yeah, we'll just unplug it. Um SNC Electric Company has donated $2,500 towards our CP program per board policy. any donation over $1,000 comes to the board for um approval. Um the intention of these funds is to use for scholarships or stipens for internships, job shadow programs, things like that. But again, all related to our CTE programming with thanks to SNC Electric. I move to formally accept

287their donation of $2,500. Second. All right. Motion was made by Dr. Beer, seconded by Mrs. Larson. All in favor? Opposed? Motion carries. Thank you. Uh, all right. WSB board of directors region 11 seat vacancy. Um, everybody should have received this in the mail. Um, there is a we are in region 11 of the WB of 15 regions. Um, uh, Mr. Hyde from U try to raise the screen. Mosquito has been that repres that that person for the last I don't know nine or 12 years. He has retired from the board. Um there will be a um there will be a vacancy and somebody will be appointed until uh November um October I guess when they when that when that new person is voted on. Um, I would like to um I would like to be

288that person. Um, and I I don't think we need board approval. I just wanted to I just wanted to mention it everybody. Good for you. I don't know if I wish to be a nominee. Good for you. Best of luck has said anything. You do a great job. Um, so I I don't know if anybody wants Thank you for volunteering. Yep. Well, he has to be going volunteering to run. There'll be there'll be he's putting himself out there to run. It's not there's Yes, there's no vote. There's no vote now. It' be inter position that will be the WSB will put somebody in place and there will be a vote in October. Um all right. Um we can move on. policies uh 5011 non-discrimination of students on the basis of disability 5420 appropriate use of

289seclusion and restraint 6435 delegation of local education agency representative duties for special education uh Dr. remote. Yeah, it's me. I'm doing all three of them. There is no changes to any of them. If you remember, the seclusion and restraint law changed. I believe it was in 2020. So, Mr. Eman and myself did do some reordering of the administrative rules, but largely there is zero changes in each of the three policies. One doesn't even have minor edits, but there's edits to do. And this is the first read though, right? It is the first read. So, I'm happy to take questions. Um they're we're not really making changes I guess to put it plainly. All right. Does anybody have questions comment? Thank you very much. The treasures report is available at board doc's library. I want to

290say something with that please. Well, there's no link here in the agenda to get there. I never think that that would be if the public is looking at this that they would have options to Is that easy to add voting? It typically was in the past. And also I I would like to ask a question on it although given the time tonight I'm not going to spend any more time but I know that when I looked was at the convention of the conference and there is a WSB does have a program on best practices as far as the uh financial I believe Mike you mentioned you took that and one of the u criteria one of the requirements is that the board looks at the treasury report once a month and I think we we

291can do better with So I will be asking questions will be helpful in reading that and I would expect to ask a few questions in future meeting. Thank you. Uh all right. Um board leazison reports. I went to math night school and I played some of the games and I and I enjoyed myself and I think so did other kids who were there. It was really fun. They were volunteers who seemed mostly sophomores at at the school and they were so engaging and then there a lot of families. So this one I think we had about 15 high school students and volunteer group the SWSA meeting was this week. They largely recapped um and praised participation in people speaking at the joint finance committee. um overall felt that unanimity of message was much stronger this

292year than it has been in the past and they are holding up very little hope for a timely budget. All right. Anybody else or school and community engagement reports? I don't know if it counts. I was I did the music selection night. I was there kind of representing moms and talking about talking up music. Um, so that was fun cuz again lots of families, you know, I mean both parents and siblings and everything. So it's really one of my favorite little things to volunteer at. Mary also was a volunteer usher at our forte. She's an over and as a pole worker. Oh yeah, I have the poll. Yeah, as Dr. Bennon said earlier um she and Mr. Cromy and I were at the joint finance committee um and provided testimony um largely went over the

293largely spoke on the letter that we um sent um was a lot of test. Oh yeah. Oh my gosh. It was tons of people when it started. So what's the Did they have food there? They did not. They told us the first one they had on that Tuesday ended at 4:15 and they were like the legislators were out the legislators were out the door and when they started calling people like 20 at a time they were going like by 4-minute increments. If you checked in at 7:30 these names are coming up. If you checked in at 7:34 it's like oh my gosh we're going to be next. Nope. Nope. Like 7:55 sign. Well, thank you for doing that. That was not an easy ask. I had a conversation with Senator Ward. Um there he was

294joint finance, a couple of other legislators. Representative Rodriguez came and spoke with came and spoke with us um on the floor. Um Senator Bradley um I didn't see Representative Whit there, but I don't know if he was there that day or not. He's not on direct finance. Anyway, um we were there. Um, so anybody else? We did have a groundbreaking today, which is kind of fun to see the community in. Of course, the groundbreaking today. Sorry, seems so long ago. It was like 12 hours ago, but um, well, and also another plug for our first rounds because they did a really nice job serving the refreshments afterwards and that's true. They were very proud of that. Great lemonade. It is good lemonade. Yeah, it is. That's like the new thing this week is very good.

295Yeah, there's two flavors. I think we're getting a little punchy from that electronics if you're ready. Well, you got a All right. Future agenda items. Franklin recognition. Uh Countrydale school uh presentation, Saber Center update 2526 board of education meeting dates, technology report, health insurance and health clinic will be voted on. Neiola board policy administrative rules adoption um potential land development curriculum. What is the development? Is that one item or is it Yeah, it's one item tied together. Uh yeah, so we'll bring more information for first read there and it's looking at potentially how can we better or support our construction class and maybe develop some of the land that the district owns for them to be able to build on. Obviously a lot more information when they come back. But that's the general gist of

296it. we had it on the radar to bring later and then since back it went out Friday one Monday we got an email saying we want to hit certain timelines that when we did the back math then we should bring it for first read in two weeks can I ask where is when land that district owns well is it by the high school or on 92nd right now oh that that land that land Um, okay. It's got no power. The policies we talked about today, 5011 5420 6435. We'll be back for um action and district administrator evaluation. Close session. Uh ceremonial oath of office for newly elected board members. Board office elections. Survey all board members for preferred liaison roles and board self-evaluation discussion. Employee handbook updates. Annual curriculum review adoption. Buildings and grounds annual

297report. Capital improvement 10-year plan and policies 5211 student acceptable use of technology. Policies 512 2110 0 title 9 related policy 6312 student promotion and retention. Looking for a motion to adjourn. So move second. Motion was made and seconded. All in favor? I opposed. Motion carries. We are journed at 95.