MINUTES OF THE MARGARETTA BOARD OF EDUCATION (BOE) REGULAR MEETING OF JANUARY 31, 2022 (Rescheduled from January 24, due to inclement weather).

The Margaretta Board of Education met in regular session at 6:30 p.m. on Monday, January 31, 2022 at the Margaretta Board of Education, 305 S. Washington Street, Castalia, Ohio.

Mr. Sutorius, Board President, called the regular meeting to order at 6:30 p.m. requesting roll call by Mrs. Keegan:

Mr. Hula:
Mr. Schoenegge: Mrs. Tucker: Mr. Warner:
Mr. Sutorius:

Present. Present Present Present Present

The Pledge of Allegiance was then recited after roll call.

Approval of the Minutes

Motion by Mr. Warner seconded by Mr. Schoenegge, to approve the minutes from the Organizational Meeting, Budget Hearing, and Special Board Meeting held on Wednesday, January 5, 2022; Roll Call: Mr. Schoenegge: aye, Mrs. Tucker: aye, Mr. Warner: aye, Mr. Hula: aye, Mr. Sutorius: aye.

January School Board Recognition - Current School Board Members

Mr. Kurt acknowledged that Ohio School Board Association (OSBA) recognizes January as Board Appreciation Month and as such, OSBA sent certificates of thanks for each board member and their community service. Mr. Kurt presented them with the certificate and thanked them for their service.

Board and Staff Reports

Townsend Community School’s (TCS) Report and TCS Margaretta Sponsor’s Report

Mr. Ryan Bohn, TCS Principal and Superintendent, and Mr. Steve Keller, TCS Compliance Officer, were excused from the meeting, therefore Mr. Kurt performed the report out. Mr. Kurt reviewed Mr. Bohn’s report that reflected the current TCS student enrollment as of January 31, 2022 at 528 students and 30 graduates for the 2021-2022 school year. Mr. Kurt reminded the board that TCS will graduate students all during the year as they obtain the necessary credentials for graduation. Mr. Kurt also informed the board that ODE recently informed TCS that they will begin receiving 100% funding for all students based on the language in Senate Bill 229 and that the upcoming FTE ODE audit has been cancelled. Mr. Kurt then stated that the highest student enrollment numbers are coming from Fremont with 76, Sandusky City Schools with 54, Norwalk with 53, and Clyde with 40. Mrs. Keegan also mentioned that Margaretta is at 38 students which has been a very consist number over the years. Mr. Kurt also stated that TCS is in a much stronger position than even one year ago, both financially and has been very successful getting students to actively participate in educational opportunities in the TCS building. Mr. Kurt also mentioned that we have been continuing to hold our monthly TCS/MLSD monthly meetings and are continuing to work on the extensive uploads that are due into Epicenter in the spring.

Public Participation

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Mrs. Beth Burkett stated that she was very proud of the high school band's performance at Severance Hall, the home of the Cleveland Orchestra. She stated that their uniforms and their presentation was excellent and very professional. In her words, “They did Margaretta Proud!!”

Then Ms. Barb Weyer asked about the ongoing traffic study and stated her concern if the study is recommending a three-way stop at the corner of St. Route 101 and 269. Mr. Kurt and Mrs. Keegan both stated that nothing has been decided yet and that the traffic counts and the preliminary report has been reviewed through conference calls, but currently the study is on pause, along with the overall project, until an outcome of the Nexus appeal that is to be heard beginning February 7, 2022.

Mrs. Weyer then stated her disappointment in the Erie County Commissioners for not approving and dragging their feet on the Payment In Lieu Of Taxes (PILOT) program for the solar project that will have significant benefits for the Margaretta District. She stated that the tax payers need to voice their concerns and their support of the PILOT program to their county commissioners. Mrs. Keegan gave some background on the PILOT and stated that Mr. Kurt and Mrs. Keegan both have attended three separate Commissioner Meetings voicing the school districts support of the PILOT and the approval of the program. Mrs. Keegan stated that the solar project is going forward regardless if the commissioners’ vote in favor or against the PILOT program, so it is not a vote for the installation of the solar panels, that has already been approved and the project is going forward. They also reminded the board that the PILOT is a win-win for the school district, given it is a locked in total tax value that is guaranteed for the life of the solar panels functioning and will not depreciate in value, nor can they appeal any of the tax amounts going forward (unlike what Nexus is doing currently). The PILOT, if approved, is estimated to generate approximately $778K in annual tax revenue for Margaretta Schools. Mrs. Keegan also stated that not only having a guaranteed locked in value as a positive for the district, but it also does not affect the district’s state foundation formula and will not affect how much received from the state of Ohio Department of Education (ODE). As the Nexus payments begin, the amount that the state will fund per student will be decreasing due to more local share. Mr. Kurt and Mrs. Keegan encourage all board meeting participants to contact the commissioners on their support and need to approve this PILOT program and vote in favor for the Wheatborro Solar PILOT program. This project is currently approved for twenty years with the ability to do a ten year extension.

Mrs. Weyer also brought up the issue of the County Treasurer, Caleb Stidham, recommending to the commissioners and requesting the approval of an additional fee of 5% (the maximum allowed by law) of delinquent taxes to be held (i.e., deducted from the schools and townships delinquent tax revenue) for the purpose of funding the Land Bank. It was stated that the commissioners approved the additional 5% Land Bank fee at a special commissioner’s meeting. Mrs. Weyer stated that this hold back of the tax money from delinquencies will not at all help the Margaretta district and stated her concern over this being approved. She also asked what impact the additional 5% fee would have on the amount of money that Nexus has short paid on their taxes (as it relates to the appealed amounts). Mrs. Keegan assured her that after discussions with the county and receiving an opinion letter from the Prosecuting Attorney’s office, that Nexus short paid taxes are not considered delinquent taxes given the legal right that Nexus can short pay or Tender Pay their taxes while the appeal is ongoing.

Nexus appeal issues were also discussed as it relates to the impact on fixed tax levies and the higher tax valuation that Nexus is appealing and not paying. Mr. Kurt and Mrs. Keegan stated that IF Nexus were to

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win their appeal and only pay approximately 42% of their taxable valuation bill, then Margaretta will have lost revenue that will not be able to be recouped that is in addition to the lost Nexus taxes if they win their appeal. Mrs. Keegan reminded the audience that Nexus had communicated that Margaretta was projected to receive $6.2M in year one of operation (with it declining in following years for depreciation) and when the final tax bill was published it reflected that Nexus was to pay Margaretta $8.3M in taxes annually, which they immediately appealed it ultimately to only 42% and is paying at the 42% level. It was also stated that ODE foundation formula is using the higher Nexus valuation that the tax commissioner gives them (that is based on the $8.3M amount). Therefore the ODE formula, by law, will be using the higher tax values that were billed to Nexus, even though we are only receiving approximately 42% of that valuation. So the formula is assuming more local share then we are receiving, thus we lose money from the state level even though we haven’t been receiving that level for the Nexus local tax share.

The other issue, related to the fixed tax levy was discussed, where the Margaretta homeowners’ effective tax rate has gone down and thus reducing the residential tax payers bills, because of the $8.3M Nexus tax basis that is paying a large portion of the fixed tax rate levy. If Nexus wins and only has to pay the 42% of the tax bill at the lower valuation, Margaretta will lose approximately $200,000 to $300,000 of the fixed tax levy that is supposed to collect to the max cap at the $1.2 million level.

Introduction of Additional Items to the Agenda

Mr. Kurt introduced a new personnel item for section X.D.Classified.5. Motion to approve Tammy Easterwood as Substitute Custodian and Substitute Bus Aide.

The Financial Report and Schedule of Bills

Mrs. Keegan presented the schedule of bills, bank reconciliations, fund balances, etc., that were included in the Board’s packages for review. Mrs. Keegan reminded the board that we are reviewing December’s Fiscal Year To Date (FYTD) results (the sixth month of the 2022 fiscal year). She stated that the fiscal year to date revenue is a total of $8.2M and expenses of $9.1M resulting in a decrease to the general fund balance of $(846,581). The beginning cash balance (excluding the General Fund Reserve that was created from the incremental Nexus dollars) on July 1, 2021 was $630K and the first six months negative deficit generated a final General Fund cash balance of $(217)K (without the general fund reserve of $944K). She also mentioned that the year to date over year to date variances are slightly screwed due to tax advances that were received last year, which was not needed this December. She also mentioned that the general fund balance has traditionally been in a deficit balance in December and January due to the timing of the next tax payments that are due in February.

Mrs. Keegan also stated that the monthly state foundation formula payments are starting to reflect the new HB110 funding formula with the first January state funding payment. She stated that ODE has attempted to true up the year to date funding payments in January and has stated that there is still additional cleanup work needed which should be reflected in the February payments. Some issues have been uncovered in the literal interpretation of the House Bill and ODE is taking that back to the representation for possible HB language corrections also. Mrs. Keegan stated that all the new funding formula calculations will make year over year comparisons very difficult.

Mrs. Keegan also covered the following Informational Items:

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1. New Facility Reserve account details and current balance. She stated that she will begin bringing the report of the reserve for the new school building to the board meetings. This report out will reflect the amounts we are setting aside in the reserve (i.e., 50% of the Nexus payments) and where we are spending the dollars for the new school.

2. Additional review of the ESSER uses of funds and restart plans. Mrs. Keegan again reviewed the current uses of funds for the ESSER federal programs and made it available to the audience as well and stated it is also accessible on our Margaretta website for review and comments.

3. Excess Costs billed to resident districts for open enrolled students into Margaretta Schools. Mrs. Keegan reported out the amount of dollars billed to other school districts ($288K) for open enrolled in students. Mrs. Keegan explained that excess costs is a way to charge the other schools for their students that are being educated at Margaretta schools. It compares the base funding amount for the child versus our actual cost to educate that child and bills the residential school for any additional costs that Margaretta incurs. She stated that Mrs. Kathy Hall does an excellent job of tracking all IEP students costs and education plans, which allows us to be able to bill the accurate amount of our out of pocket expenses for these nonresident students. She recognized Mrs. Hall assistance in being able to bill this amount back.

Mrs. Keegan also informed the board that she will be submitting application for the bus procurement federal grant for $45,000 towards three buses, which will total $135,000 to help offset a portion of the three busses costs. She reminded the board that a traditional bus costs approximately $90K and handicapped buses are approximately $105K per bus.

Treasurer’s Report New Business
Motion by Mr. Warner seconded by Mr. Hula, on Resolution number 21-22-47, authorizing the Treasurer to make Inter-Fund Transfers for the current fiscal year of 2022 (Washington D.C. trip). This is the funds that were raised for the eighth grade D.C. trip that was canceled for the freshman and sophomore class due to Covid. Mrs. Keegan stated that the class advisors are being asked to come up with ideas of things that will benefit all the grade level students and not just the students that attend the class sponsored dances; Roll call: Mrs. Tucker: aye, Mr. Warner: aye, Mr. Hula: aye, Mr. Schoenegge: aye, Mr. Sutorius: aye.

Superintendent’s Report New Business
Motion by Mr. Schoenegge seconded by Mr. Warner, on Resolution number 21-22-48, to approve the original Master Sponsorship Agreement between Firelands Regional Medical Center and Margaretta Local School Board of Education, for the advertisement in the new gymnasium and the subsequent amendment to this original agreement; Roll Call: Mr. Warner: aye, Mr. Hula: aye, Mr. Schoenegge: aye, Mrs. Tucker: aye, Mr. Sutorius: aye.

Motion by Mr. Warner seconded by Mrs. Tucker, on Resolution number 21-22-49, to approve the original Athletic Training Agreement between Firelands Regional Medical Center and Margaretta Local School Board of Education to enter into a training agreement and the subsequent amendment to this original agreement; Roll Call: Mr. Hula: aye, Mr. Schoenegge: aye, Mrs. Tucker: aye, Mr. Warner: aye, Mr.

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Sutorius: aye.

Motion by Mr. Warner seconded by Mrs. Tucker, on Resolution number 21-22-50, to authorize the continued membership in the Ohio High School Athletic Association (OHSAA) for the 2022-2023 School Year; Roll Call: Mr. Schoenegge: aye, Mrs. Tucker: aye, Mr. Warner: aye, Mr. Hula: aye, Mr. Sutorius: aye.

First Reading of the Neola Policies Volume 40 #1: Po0169.1-Public Participation at Board Meetings, po1530-Evaluation of Principals and Other Administrators, po1617-Weapons, po2271-College Credit Plus Program, po2413- Career Advising, po3217-Weapons, po4217-Weapons, po5111-Eligibility of Resident/ Nonresident Students, po5111.02-Educational Opportunity For Military Children, po5200-Attendance, po5350-Student Mental Health and Suicide Prevention, po5464-Early High School Graduation, po5516-Student Hazing, po5630.01-Positive Behavior Intervention and Supports and Limited Use of Restraint and Seclusion, po6114-Cost Principles- Spending Federal Funds, po7300-Disposition of Real Property/Personal Property, po7450-Property Inventory, po8330-Student Records, po8400- School Safety, po8462-Student Abuse and Neglect, po8600-Ttansportation, po8651- Non-routine Use of School Buses. Mr. Kurt reminded the board that they can electronically review the policies through the link that Mrs. Carrie Keller sent to the board.

Old Business:

New Facilities Update. Mr. Kurt reminded the board of the upcoming Nexus Appeal at the BTA that starts February 6, 2022. He also mentioned that Mr. Sutorius, Mrs. Keegan and Mr. Kurt attended the annual Erie County Auditors meeting that gave us an update of the Nexus situation, the Land Bank issue, their new website redesign, etc.

Informational Items

1. Middle School Masonry Structure. Mr. Kurt informed the board that we are having our roofing contractor, Damschroder Roofing to inspect the masonry work at the top of the Middle School building for potential repairs.
2. School Calendars for 2023/2024 and 2024/2025. Mr. Kurt introduced that he will be working with Vicki, MTA union president, on the two additional school years calendars and be bringing that back to the board at future meetings.
3. April Newsletter. Mr. Kurt stated that we are planning to publish a community newsletter again in the April timeframe and that he will begin to collect information for that newsletter and will hopefully have the outcome of the Nexus appeal to report and the status of our new facility.

Personnel Actions

Motion by Mr. Warner seconded by Mr. Hula, to approve the FMLA and unpaid leave requests, (list included in Board package for review); Roll Call: Mrs. Tucker: aye, Mr. Warner: aye, Mr. Hula: aye, Mr. Schoenegge: aye, Mr. Sutorius: aye.

Motion by Mrs. Tucker seconded by Mr. Warner, to approve Megan Olds - Volunteer Assistant Track Coach for the 2022 Spring Season; Roll Call: Mr. Warner: aye, Mr. Hula: aye, Mr. Schoenegge: aye, Mrs. Tucker: aye, Mr. Sutorius: aye.

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Motion by Mr. Schoenegge seconded by Mr. Hula, to approve Abigail Dresser, School Psychologist for the 2022-2023 school year, pending completion of all pre-employment requirements. Mr. Kurt informed the board that she will be our fulltime School Psych and replacing our two part-time retired school pyschs that have been covering the position for us this year; Roll Call: Mr. Hula: aye, Mr. Schoenegge: aye, Mrs. Tucker: aye, Mr. Warner: aye, Mr. Sutorius: aye.

Certified:

Motion by Mr. Hula seconded by Mr. Warner, to approve Gary Quisno, Head Football Coach for the 2022-2023 School Year, pending completion of all pre-employment requirements; Roll Call: Mr. Schoenegge: aye, Mrs. Tucker: aye, Mr. Warner: aye, Mr. Hula: aye, Mr. Sutorius: aye.

Motion by Mrs. Tucker seconded by Mr. Schoenegge, to approve Gary Quisno, Substitute teacher effective immediately pending completion of all pre-employment requirements; Roll Call: Mrs. Tucker: aye, Mr. Warner: aye, Mr. Hula: aye, Mr. Schoenegge: aye, Mr. Sutorius: aye.

Motion by Mr. Warner seconded by Mrs. Tucker, to approve the following Spring Supplementals for 2022: Track: Todd Pooch - Boys Varsity Coach, Steve Gravenhorst – Boys Assistant Varsity Coach, Maddy Mullins - Girls Assistant Varsity Coach, Luke Weyer - Girls JH Assistant Track Coach. Baseball: Chris Cullen - 50% Varsity Assistant Baseball Coach; Roll Call: Mr. Warner: aye, Mr. Hula: aye, Mr. Schoenegge: aye, Mrs. Tucker: aye, Mr. Sutorius: aye.

Motion by Mrs. Tucker seconded by Mr. Warner, to approve Julie Ruck as a tutor for the MES After-School Reading Program for second semester 2022 (paid through Title I Federal Funds); Roll Call: Mr. Hula: aye, Mr. Schoenegge: aye, Mrs. Tucker: aye, Mr. Warner: aye, Mr. Sutorius: aye.

Classified:

Motion by Mr. Hula seconded by Mr. Warner, to approve the following Spring Supplementals for 2022, pending completion of all pre-employment requirements: Track: Kasey Parkhurst - Girls Varsity Coach, Kory Herman - Boys JH, Track Coach, Tanya Dvorsky - Girls JH Track Coach, Kade Gravenhorst -Boys JH Assistant Track Coach. Softball: Jason Caponi - Varsity Assistant Softball Coach, Mike Williamson - JV Softball Coach, Baseball: Ray Neill - Head Baseball Coach, Jeff Todd - 50% Varsity, Assistant Baseball Coach, Matt Gundlach - 50% JV Baseball Coach, Tom Link - 50% JV Baseball Coach; Roll Call: Mr. Schoenegge: aye, Mrs. Tucker: aye, Mr. Warner: aye, Mr. Hula: aye, Mr. Sutorius: aye.

Motion by Mr. Schoenegge seconded by Mr. Warner, to approve the following Substitutes for the 2021-2022 School Year, pending completion of pre-employment requirements: Sub Bus Aide: Jennifer Kuns, Laura Martin. Sub Kitchen: Laura Martin, Jenna Green, Stephanie Johnson. Sub Custodian: Laura Martin; Roll Call: Mrs. Tucker: aye, Mr. Warner: aye, Mr. Hula: aye, Mr. Schoenegge: aye, Mr. Sutorius: aye.

Motion by Mrs. Tucker and seconded by Mr. Schoenegge, to approve the following Volunteers for the 2022 Indoor and Spring Sports: Ted Patrick - Volunteer Indoor Track Coach, Brian Stimmel and Ted Patrick - Volunteer HS Outdoor Spring Track Coach, Taylor Parkhurst - Volunteer JH Track Coach, Walt Snyder and Ashley Elber - Volunteer Assistant Softball Coach, Rodd Lane - Volunteer Assistant Baseball

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Coach; Roll Call: Mr. Warner: aye, Mr. Hula: aye, Mr. Schoenegge: aye, Mrs. Tucker: aye, Mr. Sutorius: aye.

Motion by Mr. Warner and seconded by Mrs. Tucker, to approve Connie Todd, Jackie Henline, Natasha Mccowan, and Sheri Ross as a Special Educational Aides supporting the MES After-School Reading Program for second semester 2022 (paid through Title I Federal Funds); Roll Call: Mr. Hula: aye, Mr. Schoenegge: aye, Mrs. Tucker: aye, Mr. Warner: aye, Mr. Sutorius: aye.

Motion by Mr. Hula and seconded by Mr. Warner, to approve Tammy Easterwood as Substitute Custodian and Substitute Bus Aide for the current school year; Roll Call: Mr. Schoenegge: aye, Mrs. Tucker: aye, Mr. Warner: aye, Mr. Hula: aye, Mr. Sutorius: aye.

Motion by Mr. Warner and seconded by Mr. Hula, to enter Executive Session to discuss the appointment, employment, dismissal, discipline, promotion or compensation of public employees; Roll Call: Mrs. Tucker: aye, Mr. Warner: aye, Mr. Hula: aye, Mr. Schoenegge: aye, Mr. Sutorius: aye.

The Board entered Executive Session at 7:27 p.m. with Mrs. Keegan and Mr. Kurt remaining in the Executive Session until 8:50 p.m. at which time Mrs. Keegan and Mr. Kurt left the Executive Session, with all five board members remaining.

Motion by Mr. Hula and seconded by Mr. Warner, to adjourn the meeting having no further business to come before the Board; Roll Call: Mr. Warner: aye, Mr. Hula: aye, Mr. Schoenegge: aye, Mrs. Tucker: aye, Mr. Sutorius: aye.

The board adjourned at 10:05 p.m.

The next regular BOE meeting will be Monday, February 14, 2022 at 6:30 p.m. at the Margaretta Board of Education, 305 S. Washington Street, Castalia, Ohio

Respectfully Submitted

_________________________ Brian Sutorius
Board President

______________________ Diane Keegan
Treasurer

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