The School Board of Escambia County, Florida, convened in Special Meeting at 5:30 p.m. in Room 160, Hall Center, 30 East Texar Drive, 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

School Board Attorney: Mr. Francisco Negron

Superintendent of Schools: Mr. Jim May

I. ADOPTION OF THE AGENDA

Mrs. Webb left the Board Room at 5:32 p.m. and returned at 5:37 p.m.

Motion by Dr. DeWitt, second by Dr. Jenkins, to adopt the agenda, was approved 4-0 with Mrs. Webb absent for the vote.

II. FINANCE

2000-2001 BUDGET

Ms. Patricia Wascom, Assistant Superintendent for Finance and Business Affairs, presented the Tentative Millage Rate and Budget for Fiscal Year 2000/2001 for Board approval for advertising purposes. Ms. Barbara Linker, Director of Budgeting, reviewed the School District Summary Budget (Supplementary Minute Book, Exhibit A). Ms. Linker noted the rollback rate and presented the proposed district millage levies for 2000-2001 as follows:

Required Local Effort 6.489

Discretionary - Basic 0.510

Discretionary - Supplemental 0.250

Total Operating 7.249

Capital Improvement 2.000

Total Millage 9.249

Motion was made by Dr. Mason and seconded by Dr. DeWitt, to authorize the Superintendent to advertise the budget. Chairman Stidham noted this would approve the 2000/2001 Tentative Millage and Budget for advertising purposes, with the public hearing to be held on July 31, 2000, at 5:30 p.m. at the Hall Educational Services Center. Mrs. Webb suggested posting the budget documents on the School District web page. After discussion, Chairman Stidham called for the vote and the motion was unanimously approved.

III. MODIFICATION OF CHARTER FOR INTERNAL AUDITING AND INTERNAL AUDITOR'S CONTRACT - DR. HAL MASON (TABLED FROM REGULAR BOARD MEETING OF 7/18/00)

Dr. Mason stated that he had previously provided a packet of information on proposed changes to the Internal Auditing Charter (Supplementary Minute Book, Exhibit B). Motion was made by Dr. Mason that the Internal Auditing Charter, page 3, section entitled "Apportionment - Removal of the Director of Internal Auditing" be amended (as set forth in the backup information submitted in support of this item) as follows: The appointment of the Director of Internal Auditing shall be based on a non-binding recommendation of the Audit Planning and Review Committee subject to confirmation by the School Board. In addition, the Committee shall annually make a non-binding recommendation for the length of contract for the Director of Internal Auditing. The Audit Planning and Review Committee shall concur with the appointment or removal of the Director of Internal Auditing based on recommendations of the Superintendent. Dr. DeWitt seconded the motion. Dr. Jenkins obtained clarification that the proposed amendment would remove the Internal Auditor (operationally) from the Superintendent in order to come under the purview of the School Board. Mr. May expressed concerns that cooperation had diminished, and he suggested going back to the original Internal Auditing program. Mrs. Webb noted that the proposed changes were supported by the Internal Audit Committee.

The Board recognized the following speaker:

1) Mr. Michael Adkins, Chairman, Internal Audit Committee, spoke in support of the proposed changes to the Internal Auditing Charter.

Chairman Stidham called for the vote and the motion was approved 4-1 with Dr. Jenkins voting NO.

Motion was made by Dr. Mason and seconded by Mrs. Webb, that the contract appointment of Mr. Sam Scallan (Director of Internal Auditing) be extended through June 30, 2002. Mr. May stated that recommendations concerning the length of contract should come from the Superintendent. Chairman Stidham commented that she agreed that the Internal Auditor should be under the purview of the Board; however, she expressed that she had concerns with some of the practices of the Internal Auditor. After discussion, Chairman Stidham called for the vote and the motion was approved 4-1 with Mrs. Stidham voting NO.

IV. ITEMS FROM THE SUPERINTENDENT

1) PROPOSAL TO ABOLISH RESOLUTION AND CHARTER FOR INTERNAL AUDITOR AND CHANGE STATUS FROM BOARD TO DISTRICT EMPLOYMENT AND SUPERVISION

The Superintendent pulled this item.

2) REPORT ON EXCEPTIONAL STUDENT EDUCATION (ESE) OPPORTUNITY SCHOLARSHIP PROGRAM

Mr. May presented a packet of information (Supplementary Minute Book, Exhibit C) concerning the ESE Opportunity Scholarship Program which was recently approved by the Governor. Dr. DeWitt asked if any Special Education child could go to any public or private school. Ms. Yvonne Gray, Director of Exceptional Student Education (ESE), advised that the program allows a choice for parents (who feel that their child is not progressing), to request that their child go to a private school or another public school (that is graded "C" or higher) within the district. Ms. Gray discussed the implementation plan noting that a letter will be sent out to inform parents about this program. Mr. Gene Pettis, Assistant Superintendent for Curriculum and Instruction, advised that the state must approve any private schools accepted for the program, and no private schools have applied to date. Dr. Mason requested information concerning due process and was advised that the district would carry out due process procedures. After discussion, Mr. Pettis advised that no Board action was required concerning this program.

Mr. May left the meeting at 6:30 p.m.

V. ITEMS FROM THE ATTORNEY

Backup Filed in Supplementary Minute Book, Exhibit D

1) CONTRACT WITH DON PARTINGTON - WEBB FEE APPEAL

Mr. Negron noted that the Board had previously retained Attorneys Leo Thomas and Clay Mitchell to represent the Board on this case. Motion was made by Dr. DeWitt and seconded by Dr. Jenkins, to approve the contract with Don Partington. Dr. Mason stated that the firm is conflicted, and he stated that he could not support the contract. Mrs. Webb asked if the other clients had indicated their willingness to waive conflicts. The Board Attorney advised that no waivers were required. Chairman Stidham called for the vote and the motion was approved 3-2 with Dr. Mason and Mrs. Webb voting NO.

2) INFORMATION ITEM ONLY: CONTRACT WITH CHANGES AS PER APPROVAL AT THE JULY 18, 2000, SCHOOL BOARD MEETING

Mr. Negron advised that this item (Contract for Legal Services with Donald H. Partington, Attorney, in Case Number 99-0148-CA-01 Webb v. School Board), was for information only and codifies what the Board passed at the last School Board meeting.

3) EMERGENCY ADD ITEM: CONTRACT WITH ROBERT HEATH (BID PROTEST MATTER)

Motion was made by Dr. Jenkins to accept the contract with Robert Heath, Attorney, to represent the School Board in a bid protest filed by Mocar Oil Company. Chairman Stidham relinquished the gavel to Dr. DeWitt and seconded the motion. Upon inquiry from Dr. Mason, the Board Attorney stated that he had not yet represented the School Board in court. Mrs. Webb commented that the in-house attorney was hired in order to reduce legal fees. Mr. Negron noted that a bid protest is an expedited matter and must be handled on a priority basis by his office. After discussion, Dr. DeWitt called for the vote and the motion failed 4-1 with Dr. DeWitt, Dr. Jenkins, Dr. Mason, and Mrs. Webb voting NO. Dr. DeWitt returned the gavel to Mrs. Stidham.

VI. BUDGET WORK SESSION

The Board recognized the following speakers:

1) Ms. Kathy Terrell, 2850 Nagle Drive, Pensacola, Florida, spoke in support of increasing salaries for teachers.

2) Mr. Robert Husbands, Executive Director, Escambia NEA UniServ, expressed the need to develop a plan to deal with budget issues based on a long-term commitment to work together and move forward in the best interests of employees.

3) Mr. Michael Varner, Tate High School teacher, commented that teacher salaries should not be sacrificed to absorb the budget shortfall. He asked that the Board address the reasons why medical fees increased.

4) Mr. Marvin Pauliss, Pensacola, Florida, spoke in support of increasing pay for teachers.

5) Ms. Arlene Costello, President, Escambia Education Association, inquired as to when a decision will be made conccerning year-round school, and she expressed that issues and suggestions could be addressed through the bargaining team.

Motion was made by Mrs. Webb to direct the Superintendent to put together a team of staff and others as appropriate to explore doing away with Civil Service so that those monies could go toward salary increases. Dr. Jenkins seconded the motion for purposes of discussion.

The Board recognized the following speakers:

1) Mr. Robert Husbands, Executive Director, Escambia NEA UniServ, advised that there is a requirement (by the Legislative Delegation) that employees voice their opinions concerning the Civil Service issue.

2) Dr. Douglas Garber, Director, Employee Services, stated that the Legislative Delegation would act on behalf of the School District and the Board if they had the input of employees. He added that extensive balloting of employees was done on two previous occasions to consider withdrawal from Civil Service, and the employees voted that down on both occasions.

After discussion, Chairman Stidham called for the vote and the motion was unanimously approved.

Mrs. Webb commented that the MGT Management/Organizational Study of Escambia County School District included a recommendation for automatic deposit of payroll checks as a cost-saving measure. Motion was made by Mrs. Webb that the money saved with automatic deposit (of employee payroll checks) would go toward salaries. There was no second to the motion.

The Board recognized the following speakers:

1) Dr. Douglas Garber, Director of Employee Services, commented that the MGT recommendation was based on information from another county; however, this district has not determined that there would be an $800,000 savings resulting from mandatory check deposits.

2) Ms. Gail Husbands, 1055 Farmington Place, Pensacola, Florida, stated that issues such as withdrawal from Civil Service and automatic check deposits should go to the bargaining table.

3) Mr. Larry Bowman, Pensacola, Florida, expressed that employees deserve the opportunity to provide input on issues related to job security, and the Board should not give to legislators the decision concerning withdrawal from Civil Service.

The Board Attorney stated that legislation under Chapter 83 - 405 Laws of Florida has no provision for the School Board to voluntarily withdraw from Civil Service. He stated that the Legislature would have to rescind or repeal the act, which would require drafting legislation to be introduced at the next Legislative Session.

Motion was made by Dr. Jenkins to rescind the previous motion. Dr. DeWitt noted that the previous motion was to explore opportunities and that any savings would go back to employees. Said motion died for lack of second.

Dr. Mason commented that the budget for student workers, cell phones, and pagers could be reduced. He noted that $1,600,000 was budgeted this year for schools buses in capital outlay, and he suggested looking at outsourcing transportation.

The Board recognized the following speakers:

1) Mr. Robert Husbands, Executive Director, Escambia NEA UniServ, commented that costs for a 1% raise for teachers would be $1,500,000, and a 5% raise would cost $7,500,000 for teachers only. He spoke in favor of taking proposals to the bargaining committee in order to bring a recommendation back to the Board.

Mrs. Webb asked that the proposal include at least a 2% annual increase in salaries.

2) Dr. Douglas Garber, Director, Employee Services, stated that data has been gathered in the collaborative process and recommendations will be brought back to the Board.

Dr. Jenkins suggested that the proposal include a long-range plan over several years that as people in key positions retire, consider eliminating or downgrading those positions and hire persons with perhaps less training at a lower salary. Dr. Mason commented that over the past several months, the Superintendent has not had a Deputy Superintendent, and Dr. Mason moved that we eliminate one of the six Assistant Superintendent positions from the Superintendent's Office, which would provide flexibility for the Superintendent to cover the upcoming middle school appointment (related to a recommendation for an Assistant Principal to be promoted to Principal at Brownsville). He stated that an immediate savings should be realized of $125,000 to $150,000. Dr. Jenkins expressed concern that this was not the proper format to recommend abolishing a position. After discussion, Chairman Stidham asked Dr. Mason to restate the motion. Dr. Mason moved "that we eliminate one of the six Assistant Superintendent positions selected by the Superintendent and encourage the Superintendent to use this as an attrition process to staff the middle school vacancy that is coming up." Mrs. Webb seconded the motion. Discussion was held regarding holding this item in abeyance until next week, and Dr. Mason withdrew the motion. Mrs. Webb withdrew the second.

Dr. DeWitt discussed the possibility of saving monies if the district transported fewer children by bus (in compliance with State guidelines). He added that the district could keep the same bus drivers. Ms. Linker advised that the current budget is $15,000,000 each year out of the General Fund, which includes all sources of transportation. Ms. Wascom stated that magnet programs and the Eastern Corridor have to be included.

The Board recognized the following speaker:

1) Elizabeth Burk, Bus Operator in Escambia County School District, commented concerning transportation requirements for special programs.

Motion was made by Mrs. Webb that we take a look at our transportation policy that would prohibit such exercise as what was just explained to us, and do it immediately. Dr. DeWitt seconded the motion. No vote was taken on the motion. Dr. Mason asked that Mrs. Webb make the motion more specific. After discussion, Mrs. Webb restated the motion to update the Transportation Policy that would minimize the General Fund contributions to the transportation program. Dr. Mason seconded the motion.

The Board recognized the following speaker:

1) Elizabeth Burk, Bus Operator, stated that a firm comitment will be needed if the new policy is undertaken due to complaints by parents.

After discussion, Chairman Stidham called for the vote and the motion was unanimously approved.

Dr. DeWitt commented that schools which were graded as "A" schools (according to the formula in the Governor's A+ Educational Plan) will get additional funding ($100 per child). He suggested the possibility of encouraging those schools to use the funding for teacher raises at those schools. Dr. Mason raised concerns that it would constitute an unfair labor practice.

The Board recognized the following speakers:

1) Mr. Marvin Pauliss, Pensacola, Florida, commented that it is up to the schools to decide how to use those monies.

2) Ms. Kathy Breakall, teacher at Jim Bailey Middle School, expressed concern regarding the proposal.

After discussion Dr. DeWitt withdrew his suggestion.

Mrs. Webb requested a detailed list of expenditures from the Risk Management Department. Ms. Linker advised that the District Summary Budget includes the $32,400,000 Trust Fund Budget ($3,900,000 of that is the Risk Management Trust Fund and $28,351,000 is the Employee Benefit Trust Fund). Ms. Wascom added that the source of funds for the Employee Benefit Trust Fund and the Risk Management Trust Fund come from the General Fund, Food Service, and Other Special Revenue.

The Board recognized the following speakers:

1) Mr. Joseph Bernard, Director of Risk Management, commented that the employee health insurance plan will be bid out this year. Dr. Mason asked if that could result in a reduction of staff. Mr. Bernard stated that he anticipated no reduction in staff.

2) Dr. Douglas Garber, Director of Employee Services, stated that the contract provides full health insurance for employees.

3) Ms. Arlene Costello, President, Escambia Education Association, discussed concerns regarding employee health benefits.

Dr. Mason asked how much was budgeted for the coming year and the current year for completion of the N. B. Cook School. Ms. Wascom stated that is a Capital Project Fund, and she will provide that information. Mr. Ted Kirchharr, Director of Facilities Planning, advised that there was potential for litigation contingent upon claims made by the contractor and ultimately against the architect.

Dr. Mason suggested that the Board consider reassignment of visiting teachers to the classroom to provide additional savings. Dr. DeWitt spoke in support of retaining the visiting teachers.

The Board recognized the following speakers:

1) Mr. Robert Husbands, Executive Director, Escambia NEA UniServ, commented that the district has no visiting teachers, and he clarified that they are actually School Social Workers by State Statute. He spoke concerning the importance of their job roles noting that one of their primary functions is to find out why children are not in school and return them to school as quickly as possible.

2) Dr. Douglas Garber, Director, Employee Services, commented that eliminating a group of employees would have contract implications; however, transfer or reassignment would be an option.

Motion was made by Dr. Mason that the student positions be put on the employee grid in order that we can keep track of how many students we have, where they are assigned, and the number of hours they work. Mrs. Webb seconded the motion.

The Board recognized the following speakers:

1) Ms. Barbara Linker, Director of Budgeting, advised that $225,000 had already been eliminated out of the budget for student workers.

2) Ms. Gail Husbands, 1055 Farmington Place, Pensacola, Florida, asked that the Board look carefully at the value and functions of the job.

Chairman Stidham requested clarification from staff. Ms. Ella Sims, Assistant Superintendent for Human Resources, advised that a separate grid would need to be developed to account for the students. Mr. Gene Pettis, Assistant Superintendent for Curriculum and Instruction, clarified that many student workers impact teacher workloads and it would be helpful to clarify if they directly relate to instructional programs. After discussion, Dr. Mason called for the question and the vote on the question was unanimously approved. Dr. Mason modified the motion to develop a student grid. Mrs. Webb seconded the amendment. Chairman Stidham called for the vote and the motion (as amended) was unanimously approved.

VII. ADJOURNMENT

Motion by Dr. DeWitt, second by Dr. Mason, to adjourn the meeting at 8:40 p.m., was unanimously approved.