AMPHITHEATER
PUBLIC SCHOOLS
Tucson,
Arizona
MINUTES OF
SPECIAL PUBLIC MEETING OF THE GOVERNING BOARD
Place, Date and Time
of Meeting
Wetmore Center, 701 West Wetmore Road, February
17, 2004, 6:00 p.m.
Board Members Present
Nancy Young Wright,
President
Dr. Kent Barrabee, Vice President/Clerk
Patty Clymer, Member
Mike Prout, Member
Board Member Absent
Jeff Grant, Member
Central
Administrators Present
Dr. Vicki McLeod
Balentine, Superintendent
Todd A. Jaeger, J.D.,
Associate to Superintendent and General Counsel
Patrick Nelson,
Associate Superintendent
OPENING OF MEETING
Call to Order
and Signing of Visitors’ Register
Ms. Nancy Young Wright called the meeting to order at 6:10
p.m. and asked members of the audience to sign the visitors’ register.
She announced that the business under Executive Session
(Item #1) would be moved to follow the Action (Item #2) and Consent Agenda (A
and B) items.
Pledge
of Allegiance
PUBLIC COMMENT
There were no public comments.
2. Approval of Post-Retirement Employment Opportunities through Educational Services, Inc. (ESI), as Service Provider
Board book
information: This matter was
previously discussed by the Board on January 27, 2004 and is presented this
evening for action.
As the
Board last discussed, there are increasing pressures on Arizona school
districts to retain highly qualified personnel:
§
The
federal NCLB Act demands that instruction be provided by teachers and
paraprofessionals meeting rigorous qualifications.
§
Student
achievement goals under state and federal law depend upon placement and
retention of skilled staff.
§
Fifty
percent of all teachers in the profession today are expected to retire in the
next ten years.
§
Arizona
state retirement contribution rates for employees have increased and will
continue to do so, unfortunately pressuring some people to consider retiring
sooner due to financial considerations.
§
The
private sector continues to attract personnel from hard to fill classified,
certificated and administrative positions.
The loss
of staff to retirement is therefore counterproductive to the efforts of school
districts to overcome these pressures.
School districts are consequently searching for new ways to attract and
retain personnel.
Many
personnel who retire from school districts do pursue “second careers” in
another field. Often, they would prefer
to remain in the field of education or other public service, but state
retirement rules preclude them from doing so.
ESI is a
professional employment organization, established in
March of 1999, which provides schools throughout Arizona with temporary and long-term staffing. ESI assists school districts by hiring teachers, administrators
and classified employees, and then placing those employees with districts –
even those districts from which the employees may have just retired. In this way, those employees whose valued
skills might have otherwise been lost can continue their contributions. Additionally, these personnel may earn
substantial post-retirement incomes without violating state retirement rules.
At present, approximately fifty-three Arizona school districts
take advantage of the ESI services. ESI
is a service provider under the Mohave Educational Services contract, under an
Amphitheater District bid, and is an active member of the Arizona Association
of School Business Officials.
The legality
of retaining retired teachers and other employees through third party organizations
such as ESI is addressed in A.R.S. § 15-502.
It reads in relevant part:
The governing board may
obtain the services of any employee, including teachers, substitute teachers
and administrators, by contracting with a private entity that employs personnel
required by the school district.
Districts
that use ESI in this manner typically negotiate a standard contract with
ESI. The contract sets a fee for the
service to be provided by the retiree based on a percentage of the retiree’s
former salary as a district employee. ESI assumes all responsibilities for billing the district
and paying the retiree, who is then an employee of ESI. Like any employer is required, ESI makes
appropriate withholdings and payments of all applicable taxes and the issues
W-2 forms. ESI also offers a benefit
plan that its employees may purchase.
The district saves the difference between the cost of the
employee’s pre-retirement salary (and employee related costs) and the fee paid
to ESI. The employee earns income both as a state retiree and as an employee
ESI placed with the district.
The
Administration recommends offering current Amphitheater employees the
opportunity to continue their public service even after retirement through the ESI
option. Specifically, the
recommendation is that retiring Amphitheater employees be retained through ESI
to fill their pre-retirement positions following their retirement, on the
following terms and conditions:
1.
The ESI option will be offered for the remainder of
the 2003-2004 (current) fiscal year, allowing the retiree’s retention through
ESI begin in either the 2003-2004 (current) or the 2004-2005 fiscal years.
2.
The position from which the retiree takes retirement
cannot be one which is being reduced or eliminated by a reduction in force or
similar budget actions following the retirement. This does not preclude the District from identifying other
positions within the District for which the retiring employee is qualified and
may be retained through ESI to fill.
3.
The terms of the retiree’s employment with ESI are
determined by ESI, and the retiree must acknowledge their agreement to ESI’s
terms prior to placement with the District.
4.
ESI will compensate former employees of the District
at the rate of eighty percent (80%) of the salary paid to the employee by the
District prior to retirement. Career
Ladder compensation and other addenda or stipends paid prior to retirement are
not included in this salary calculation.
This shall not preclude, however, an ESI participant from being retained
to fill an addendum position, such as coaching, for additional compensation
from ESI.
5.
For former Amphitheater employees who are retained
through ESI to fill positions which they did not hold prior to retirement,
compensation through ESI shall be eighty percent (80%) of the commensurate wage
or salary paid to current district employees of the same experience.
6.
ESI will make and/or pay all appropriate payroll
deductions and taxes. The District will
pay a service fee to ESI of nine percent (9%) based on the same salary used to
calculate the compensation paid to the retiree by ESI.
7.
Personnel placed with the District by ESI must meet
all district, state and federal qualification standards, including but not
limited to, fingerprint/background clearance, certification, endorsement,
education level, and licensure.
8.
Pursuant to the terms and conditions of the
District’s Early Retirement Program (ERP) and Early Retirement Phase Out
Program (ERPOP), participants in those programs are ineligible to participate
in the ESI option. ERPOP participants
who resign from that program may be eligible to participate in the ESI option
provided ESI compensation is adjusted to a rate that offsets previous ERPOP
compensation.
9.
Regardless of their status as employees of ESI rather
than the District, all personnel placed with the District by ESI must comply
with district, state and federal laws, policies, regulations, directives as
well as school improvement plans of the Amphitheater District.
Dr. Balentine stated that this item had received extensive
discussion at the January 27, 2004 meeting.
She invited Mr. Jaeger to review the proposal.
Mr. Jaeger stated that this proposal is being considered as
an alternative option for District employees following their retirement. More District staff are reaching retirement
age and the Early Retirement Program has limited funds. There is also a need to retain highly qualified personnel
to satisfy accountability measures and student achievement goals. Current District employees would be able to
retire from the District and immediately return to service to the District
through the third-party provider – ESI.
The (District’s former) employee would be employed through
ESI and would work under ESI’s terms and conditions and would provide service
in the same manner (teacher, etc.) to the District prior to their
retirement. However, there is nothing
to preclude them from filling another post that is available and for which they
are qualified. The District
would compensate ESI at the rate of eighty percent (80%) of that employee’s
pre-retirement salary. The District
would also pay a service fee (9%) to ESI.
A savings of the cost of benefits would be realized (approximately
18-20%). All state and federal
requirements (as listed above) would be in effect. Participants in the ERP would be ineligible for this option for
the following reasons: this classification of retirees have received a
substantial cash buy-out or benefit (150-175% of the pre-retirement salary)
with the stipulation that if they elected to return to active status, would do
so at less than half-time and at a “starting wage.” Regarding the ERPOP classification (which has a limited capacity
of enrollees), the options available are premised upon a cash benefit, which is
based upon years of service. The buy-out program, in part, is funded by the
savings accrued between the retiring employee’s wage and the “replacement”
employee’s (starting) wage. Current
District employees, who entered the Option A program in the last two fiscal
years, have received a salary increase of 10% and upon retirement, are to
fulfill the post-retirement service obligation (15 days for each of 7 years
following retirement). Those Option A employees are eligible to terminate
(ERPOP) and retire prior to providing those service days; however, the District
would have already spent 10% of additional salary without consideration for
that service. If they do elect to
participate in the ESI option, an adjustment would be made by deducting the
extra (ERPOP) funds already received from their first year’s compensation
through ESI.
Mr. Jaeger responded to Board Member questions and provided additional
information. All retiring District
employees – that fulfill the employment terms established by ESI (as stated
above) – will be offered employment for available positions for which they are
(technically) qualified. Retirement
could occur this school year (2003-04), to coincide with the ESI option,
resulting in a seamless transition.
This option is a pilot program for the remainder of this 2003-04 year
and 2004-05 (if retirement is taken this year) and will be evaluated by the
Board for approval again next year for any ensuing years. It is an “at will” employment status with an
understanding of a 30-day termination policy.
Once retired, those employees no longer have an employment relationship
with the District, but a contractual relationship with ESI (reference The
Administration’s Proposal, # 3, as stated above).
PUBLIC COMMENT
Mr. John Lewandowsi addressed the Governing Board; Mr.
Jaeger and Dr. Balentine provided additional clarification. Sick leave would be paid at time of
retirement, as is currently in effect.
Retirement criteria would follow the normal/current ASRS (Arizona State
Retirement System) process, i.e., minimum of 80 points, etc. Regarding ERPOP retirees who have already
benefited from their added salary benefits and subsequently elect to
participate in the ESI option, thereby terminating their ERPOP participation,
will realize a full adjustment of compensation in their first year’s
compensation with ESI. This option’s
enrollment opportunity is only available in the 2003-04 school year, with
post-retirement service to begin either in the current (2003-04), or next,
(2004-05) year. It is at the discretion
of the retiring employee to evaluate the value of benefits between the two
options the District is offering. Mr.
Lewandowski expressed appreciation for the time already dedicated to the
dialogue concerning this issue and reiterated the need for mutual trust to
avoid employee misunderstandings and misinformation.
Ms. Young Wright suggested that anyone interested in
learning more about experiences with ESI might contact members of the Sunnyside
Education Association; she has had positive feedback from SEA members.
Following some further discussion regarding the contractual
implications by the District to the retiree, Mr. Prout moved to adopt the
policy as written; seconded by Mrs. Clymer.
Ms. Young Wright added that she is comfortable supporting this proposal
due to the understanding that this is a pilot program. She added her appreciation for the concerns
expressed and the consideration dedicated to this issue. There being no further discussion, Ms. Young
Wright called the question; the motion passed unanimously, 4-0.
A motion was made by Mrs. Clymer to approve consent agenda
items A and B. The motion was seconded
by Dr. Barrabee and passed
unanimously, 4-0.
Board book information: From time to
time, staff of the District is requested to perform certain duties which fall
outside their job descriptions, contracts, or assignments. In those situations, the District has
established rates for extra assignments and inservice compensation. An increase in these rates is proposed for
the Board’s consideration.
Presentation
of Staff Inservice $25
per class hour $150 per day
Extended
School Year/Summer Classroom Teacher $25 per hour $17 per hour
Curriculum
Writing $20 per hour $10 per hour
AIMS Preparation/Tutoring Children – Certified Staff $20
per class hour $17 per hour
Currently,
some of these assignments are hard to fill, particularly during the summer
months. The increases proposed, the Administration believes, will make these
extra assignments more appealing to more employees.
The Governing Board approved the proposed rates for Extra Assignments
and Inservices, as presented.
EXECUTIVE SESSION
1. Motion to Recess Open Meeting and Hold an
Executive Session
Ms. Nancy Young Wright announced that Item E was removed
from this motion/agenda and that the Board would recess open meeting and hold
an executive session for:
A. Discussion
and Consultation with Legal Counsel for the Purpose of Obtaining Legal Advice
Regarding Expulsion Time Periods, Pursuant to A.R.S. §38-431.03(A)(3);
B. Consideration and Decision Upon Expulsion Hearing Officer’s Recommendation, Pursuant to A.R.S. §15-843(F)(2);
C. Consideration
and Determination of Appeal of Long-term Suspension Hearing Officer’s Decision,
Pursuant to A.R.S. §15-843(A); Determination of Whether to Hold an Expulsion
Hearing and Designate a Hearing Officer to Hear Evidence, Prepare a Record and
Bring a Recommendation to the Board, Pursuant to A.R.S. §15-843(F)(2);
D. Consideration
and Determination of Appeal of Long-term Suspension Hearing Officer’s Decision,
Pursuant to A.R.S. §15-843(A); Determination of Whether to Hold an Expulsion
Hearing and Designate a Hearing Officer to Hear Evidence, Prepare a Record and
Bring a Recommendation to the Board, Pursuant to A.R.S. §15-843(F)(2);
E. Consideration
and Decision Upon Expulsion Hearing Officer’s Recommendation, Pursuant to
A.R.S. §15-843(F)(2); [removed from
this evening’s agenda]
F. Consideration
and Decision Upon Expulsion Hearing Officer’s Recommendation, Pursuant to
A.R.S. §15-843(F)(2); and
G. Consideration
and Decision Upon Expulsion Hearing Officer’s Recommendation, Pursuant to
A.R.S. §15-843(F)(2).
A motion was made by Mr. Prout, seconded by Mrs. Clymer that the Board recess into executive session. The motion passed 4-0. The time was 6:45 p.m.
There were no
Board Members requests for future agenda items.
There were no public comments.
ADJOURNMENT
Following
executive session, a motion was made by Mr. Prout, seconded by Dr. Barrabee to
adjourn the meeting. The motion passed 4-0 and the time was 8:40 p.m.
_________________________________
Respectfully submitted,
Margaret Harris
_________________________________ __________
Ms. Nancy Young Wright, President
Date