Creswell School Board

Business Manager Report

June 4, 2007

 

      Seismic Study

o        The state recently released the study on seismic issues with public buildings. All three of our schools are included in the study. Creslane is rated low on collapse potential for all the buildings with the exception of the cafeteria. That building is rated high. Creswell High School is rated moderate to low for all buildings. The interesting rating is Creswell Middle School which is rated very high on the old sections and high on the cafeteria and moderate on the band/health room. It is fortunate that all these buildings are in the process of being replaced.

o        The perspective on seismic risk is that the USGS predicts a 15% chance of a Cascadia Subduction Zone earthquake in the next 50 years. This suggests that Oregonians have a manageable amount of time available to mitigate this risk over the next few decades. Oregon Department of Geology and Mineral Industries, Oregon Seismic Needs Assessment, May 2005.

 

      Budget

o        Thank you to the budget committee for their work on the budget and for approving the budget for board review. The budget hearing is scheduled for 7:00 p.m. on June 13, 2007. The budget resolution is included in the board packet.

 

      Kiosk

o        After a meeting with the students, a Booster representative, high school staff, a place has been located for the student store. I am working with Monty and Johnny to put a Dutch door on the room, to paint it, install shelving and other items required by the students to operate. I sincerely hope this is the win-win for everyone involved.

 

      Nutrition Services

o        The board is being asked to raise prices $.20 per full paid meal. This is necessitated by the program needing additional revenue to maintain a break even status. Prices were last raised in 2002-2003 while costs of food and staff have increased steadily during this time.

o        All nutrition service staff will work two less days next year and be reduced hour each day and one employee will be reduced 1 hour a day. This year a 2 hour per day position was cut at the high school and another hour per day was cut from another employee.

o        The program has had a substantial carry over balance. Some has been used for one time purchased such as:

         75% of a new water heater

         $5,000 deductible on the freezer malfunction

         New tables and booths at the middle school almost $7,000

         Milk cooler $4,300

o        Additional changes will be:

         Prepare middle school food at Creslane to reduce the transportation time and costs

         Reduce number of entrees prepared each day and to eliminate two entrees for adult meals

         Change food vendor

 

      Insurance rates for next year

o        The workers compensation premium is estimated to be $46,642 for 2007-2008. This is an increase of approximately 2% which is related to increased payroll costs.

o        OEA Choice is estimating their overall premiums will increase 10.98%. Leslie Higdon will include the specific rates in the packet if she receives them.

o        Providence rates are also on the way and will be included when they are received.

o        Property and Casualty insurance will be $67,916 next year. This is $1,487 higher than last year but with increased property values of a little less than $2.5 million. I have included a comparison sheet for your review. In addition, I have included a legal opinion on the coverage that is included in the PACE plan that can eliminate the additional bonding of the Superintendent and Business Manager if the board should choose. The crime coverage meets the statutory bonding requirements and would save the district the additional $700 per year that is paid currently for bonds.

o        In conversation with Tammy Fitch, Wilson Heirgood Insurance, she assured me that should the district choose to waive the liability insurance requirement on any group using district facilities that the district would be covered for liability. She suggested that participants sign a form indicating that they are aware that they are participating in whatever event at their own risk and that the district is only held to liability should the district be negligent. Tammy will send some language that another district is using should the board wish to use it.