The School Board of Escambia County, Florida, convened in Special Meeting at 8:00 a.m. in the Board Room at the Administrative Building, 215 West Garden Street, Pensacola, Florida, with the following present:

Chairman: Mrs. Cary Stidham Vice Chairman: Dr. John DeWitt

Members: Dr. Elmer Jenkins

Dr. Hal Mason

Mrs. Vanette Webb (entered the meeting at 8:06 a.m.)

School Board Attorney: Mr. Francisco Negron (entered the meeting at 8:10 a.m.)

Superintendent of Schools: Mr. Jim May

I. CALL TO ORDER

Chairman Stidham called the meeting to order at 8:00 a.m.

II. FINANCE

2000-2001 BUDGET

Ms. Patricia Wascom, Assistant Superintendent for Finance and Business Affairs, provided an update on the capital outlay fund. Ms. Barbara Linker, Director of Budgeting, reviewed a handout entitled "School District of Escambia County Budget Meeting - July 17, 2000" (Supplementary Minute Book, Exhibit A). Ms. Linker advised that changes had been made as directed at the last Board Meeting, including removal of 33 reserve units, 50% reduction in travel, departmental cuts, and reduction in other areas including life insurance funds, temporary employment, and the high school/ college student work force. Mrs. Webb requested additional information concerning travel expenditures, assigned vehicles, student assignments, and cell phone useage. Dr. Mason inquired concerning computer query capabilities, and Mr. Bill Bush, Director, Technological Systems & Management Information, advised that staff is focusing primarily on student data. Ms. Linker noted the budget deficit is presently $1,400,000. Discussion was held regarding four possible scenarios to cut the health plan and thereby reduce the deficit. Upon request of Dr. Mason, Ms. Wascom provided information concerning life insurance reserves. Joseph Bernard, Director of Risk Management, provided copies of spreadsheets (Supplementary Minute Book, Exhibit B) related to Escambia County School District Group Health Insurance Plan options. It was noted that the proposal options do not increase the employee contribution rate. Mr. Bernard advised that staff is analyzing data from last year to determine what caused health plan cost projections to increase.

The Board recognized the following speaker:

1) Robert Husbands, Executive Director, Escambia NEA UniServ, advised that "open enrollment" was recommended to the Board by the Insurance Committee based on data from other districts and agencies that had "open enrollment" health plans.

Mrs. Webb requested copies of the minutes of the Insurance Committee, and she asked if the meetings were advertised in compliance with the Sunshine Law. Mr. Bernard noted that the committee makes recommendations to the Superintendent, and the Superintendent brings those recommendations to the Board. Dr. Mason asked if the Superintendent would be willing to allow a representative from the insurance field to serve on the committee, and Mr. May responded that he would.

The Board recognized the following speaker:

1) Robert Husbands, Executive Director, Escambia NEA UniServ, requested that the association be allowed to provide input concerning selection of a representative (from the insurance field) to serve on the Insurance Committee.

Concerning the employee health plan, Mr. Bernard advised that the district contributes $230, and funding would have to be increased to $345 to meet current projections.

The Board recognized the following speaker:

1) Robert Husbands, Executive Director, Escambia NEA UniServ, commented concerning the employee health plan.

Mr. Bernard advised that AON Consultants will provide options to consider a health "choice" plan, similar to a Health Maintenance Organization (HMO), Preferred Provider Organization (PPO), or Point of Service (POS) program, in order to offer a higher discount.

The Board recognized the following speaker:

1) Robert Husbands, Executive Director, Escambia NEA UniServ, commented that concerns had been expressed in the past regarding the HMO concept.

Mrs. Webb left the Board Room at 9:30 a.m. and returned at 9:40 a.m.

After discussion, a motion was made by Dr. Mason that the Board direct Mr. Bernard to convey to the Insurance Committee that the Board has a need for a recommendation based on data for a cafeteria approach to an insurance plan. Chairman Stidham offered a friendly amendment to specify an HMO rather than a cafeteria plan. Dr. Mason accepted the friendly amendment, and he restated the motion as amended that the Board direct Mr. Bernard to convey to the Insurance Committee that the Board has a need for a recommendation based on data which would include an HMO, and that Mr. Bernard be directed to determine the minimum amount of time to conclude the existing contract with United Healthcare. The amended motion was seconded by Dr. DeWitt. Dr. DeWitt offered a friendly amendment to add that ...for budgeting purposes, however, if we do not get a favorable client, we are going to go with Option Number 4. Dr. Mason did not accept the friendly amendment. The Board Attorney stated that since the Insurance Committee would be developing recommendations to be brought to the Board, the committee meetings would have to be advertised (with meetings open to the public) in order to comply with the Sunshine Law.

After discussion, Chairman Stidham called for the vote and the motion was approved 4-0 with Mrs. Webb absent for the vote.

Motion was made by Dr. DeWitt that for budgeting purposes that the staff be allowed to consider that the district would budget (regardless of what plan comes out) that we are most comfortable with the $266 figure (as presented in the health plan options). Dr. Mason seconded the motion.

The Board recognized the following speaker:

1) Robert Husbands, Executive Director, Escambia NEA UniServ, asked that the Board consider the $279 figure rather than $266.

Dr. DeWitt stated that he would amend the motion to change the amount from $266 to $272 with all of the caveats implied for budgeting purposes. Dr. Mason asked if teacher input would be provided.

The Board recognized the following speaker:

1) Robert Husbands, Executive Director, Escambia NEA UniServ, commented that the $272 figure (proposed in the motion as amended) would be workable and input would be sought from teachers.

Chairman Stidham called for the vote on the original motion and said motion failed 4-0 with Dr. DeWitt, Dr. Jenkins, Dr. Mason, and Mrs. Stidham voting NO, and with Mrs. Webb temporarily absent. Motion was made by Dr. DeWitt that for purposes of budgeting to use the $272 figure. Dr. Jenkins seconded the motion. Said motion was approved 3-1 with Dr. Mason voting NO and Mrs. Webb was absent for the vote. Ms. Linker verified that this action would allow for the budget to be balanced. Chairman Stidham asked if the Board wished to make any further cuts to the budget.

Motion was made by Dr. DeWitt that the Board not pay the $19,000 (in dues) to the Florida School Boards Association because of the budget crisis. Chairman Stidham relinquished the gavel to Dr. DeWitt and seconded the motion for purposes of discussion. Dr. Mason asked if the motion should include the Florida Association of District School Superintendents (FADSS). Mr. May stated that he wished to maintain membership in FADSS. Dr. DeWitt expressed concern that FSBA can no longer provide attorney representation services. Mrs. Webb spoke in favor of negotiating with FSBA to reduce the amount of the dues. Dr. Mason expressed that the Board should reconsider a number of memberships to professional organizations and not only FSBA. After discussion, Dr. DeWitt called for the vote and the motion failed 3-2 with Dr. Jenkins, Dr. Mason, and Mrs. Webb voting NO. Dr. DeWitt returned the gavel to Mrs. Stidham.

Motion was made by Mrs. Webb and seconded by Dr. DeWitt, to have Mr. Negron approach Dr.Wayne Blanton, Executive Director, Florida School Boards Association, to negotiate a reduction (in dues) based on decreased services offered by FSBA. No vote was taken on this motion. An amended motion was made by Dr. Jenkins to direct the Chairman to write a letter to Dr. Blanton and let him present any proposed changes to the FSBA Board of Directors. The amended motion was seconded by Dr. Mason. Chairman Stidham called for the vote and the motion (as amended) was unanimously approved.

Chairman Stidham relinquished the gavel to Dr. DeWitt and made a motion that the Board further cut out-of-county travel (to zero) for School Board Members. Dr. DeWitt seconded the motion. After discussion, the motion failed 3-2 with Dr. Jenkins, Dr. Mason, and Mrs. Webb voting NO.

Motion was made by Dr. Jenkins to cut the local travel budget for Board Members and maintain the out-of-county travel. Chairman Stidham advised that the local travel budget for Board Members had already been reduced. After discussion, Dr. Jenkins withdrew the motion.

Dr. Mason inquired concerning the total amount of out-of-county travel budgeted this year. Ms. Wascom replied that the amount budgeted in the 1999-2000 budget (including carry over dollars and categorial dollars) was $668,329.70.

Dr. Mason provided information (Supplementary Minute Book, Exhibit C) dealing with recommendations from the MGT Management/Organizational Study of Escambia County School District. He noted this information dealt with 15 out of 174 recommendations presented by MGT and could save up to $4,000,000. Motion was made by Dr. Mason that the Board direct that those items which were aproved by the Board (which have not been implemented) be implemented immediately. Mrs. Webb seconded the motion for purposes of discussion. No vote was taken on this motion. After discussion, motion by Dr. DeWitt, second by Dr. Jenkins, to table Dr. Mason's previous motion until more information can be provided, was approved 3-2 with Dr. Mason and Mrs. Webb voting NO.

Ms. Wascom advised that the total expenditure for cell phones for this year was $58,943.63 and $21,844.13 for pagers. Mrs. Webb commented concerning confidentiality as to the breakdown of cell phone and pager users and usage, and she indicated that she would like to see district policy monitoring that.

III. ADJOURNMENT

Motion by Dr. DeWitt, second by Mrs. Webb to adjourn the meeting at 10:08 a.m., was unanimously approved.