LINCOLN PARISH SCHOOL BOARD
Ruston, Louisiana
REGULAR SESSION
Tuesday, December 7, 2004 6:00 p.m.
The Lincoln Parish School Board met in Regular Session on Tuesday, December 7, 2004 at 6:00 p.m. at the Lincoln Parish School Board, 410 South Farmerville Street, Ruston, Louisiana. Members present were Mr. Otha Anders, Ms. Lisa Best, Ms. Mattie Harrison, Ms. Lynda Henderson, Mr. Jim Kessler, Mr. Flynn Ludley, Mr. George Mack, Mr. Ted McKinney, Mr. Joe Mitcham, and Ms. Jo Tatum.
President Rob Shadoin and Mr. Curtis Dowling were absent.
Vice president Anders called the meeting to order, gave the invocation and led in the Pledge of Allegiance to the American flag. He welcomed board members, staff, and visitors to the meeting.
Upon a motion by Ms. Tatum, seconded by Mr. Ludley, the Board unanimously voted to adopt the agenda as presented.
Upon a motion by Mr. Mack, seconded by Mr. Mitcham, the Board unanimously voted to approve the minutes of the Regular Session held on November 9, 2004 as distributed.
Chris Baker was introduced to the Board by Secondary Supervisor Ricky Edmiston for coaching the Choudrant High School boys who recently won state in Class B, cross country for the second year in a row. He was presented with a plaque on behalf of the superintendent and the Board. Coach Baker introduced his assistant coach, Shannon Lee, and the runners who were in attendance. His principal, Doug Postel, expressed his pride in the coaches and the team for their dedication and hard work.
Making history as the first in seventy-seven years from Louisiana to do so, Choudrant High School FFA member Laura Hogan was recognized as the national champion in extemporaneous speaking. Mr. Edmiston shared interesting background information about Laura and presented her with a plaque in recognition of this outstanding accomplishment. He introduced her ag leaders, Steve Baker and Marty Cantrell, to the Board. Principal Postel said a brief word about the gifted and hardworking student who is a wonderful representative of the school.
Mr. Anders also expressed the Board's pride in all of the above-mentioned Choudrant High School students.
The Board served as a Committee of the Whole and the following Personnel Committee agenda items were considered after Director of Curriculum and Instruction, Danny Bell, presented 1. - 3.; Brenda Theodos, School Food Service Supervisor, presented 4.-5.; and Director of Auxiliary Services, Charles Owens, presented 6.:
1. The first personnel item to be considered was the naming of a Special Education Supervisor because of Gloria Roebuck's imminent retirement. Mr. Bell presented background information on the selection process. He reported that he chaired an Interview Committee consisting of Donna Doss, David Ferguson, Patrice Hay, Mary Null, and Charles Owens. They interviewed two qualified applicants on November 30, 2004 and are unanimously recommending, along with Superintendent Charles Scriber, that Kathy Shipp be promoted from IEP Facilitator/Monitor to Supervisor of Special Education effective January 1, 2005.
Upon a motion by Ms. Best, seconded by Mr. McKinney, the Board unanimously voted to accept the administration's recommendation of Kathy Shipp for the position of Supervisor of Special Education effective January 1, 2005.
2. Medical sabbatical leave request for Easter Mayfield, elementary teacher at Lincoln Center, effective January 6, 2005 and for the remainder of the 04-05 school year.
3. Point of Reference/Transfer of Kathy Sims from teacher at Simsboro School to a new curriculum strategist/teacher position at Cypress Springs effective January 1, 2005.
4. Resignation of Jennifer Hawkins, school food service manager/clerk at Dubach effective December 2, 2004.
5. Employment, because of higher meal participation, of the following school food service technicians effective January 1, 2005:
Hong Cross at Glen View.
Bonnie Jackson at Ruston High.
6. Resignation of Robert Davis, custodian at Ruston High, effective November 30, 2004.
Upon a motion by Mr. Mitcham, seconded by Ms. Henderson, the Board unanimously voted to approve the 2. - 6. personnel recommendations.
Jack Boyd, Business Manager, reported that for the second straight month November 2004 saw decreased sales tax collections which fell 1.83% below the same month last year. Year-to-date collections are still up 2.72%. He told the Board that $361,662 was collected in the '67 and '79 fund and $216,997 in the '93 and '00 funds. Audit recoveries were also down $16,602 or 62.96% compared to November 2003 with $9,769 being collected.
A financial report for the month ending October 2004 was presented by Mr. Boyd. He called attention to the fact that the General Fund balance appears to have increased. However, he will be making the usual transfers from that fund to the 5 mill maintenance fund and the Simsboro district and Dubach district maintenance and operating funds in order to prevent deficit balances in those accounts.
Mr. Boyd also presented a self-insured health benefits program update. He indicated that the number of participants in the health plan have varied during the calendar year from a low of 1,064 in June 2004 to a high of 1,089 in April 2004. Total costs, including administrative, reinsurance, and medical and pharmacy claims have increased by $290,906 or 5.96% year-to-date for the period of January 1 through September 30, 2004. Total contributions and interest collected-to-date of $4,578,256, combined with aggregate and specific reimbursements of $42,660, have fallen short of the total costs of $4,869,162. This reduced the cash balance in the health plan from $314,996 at the beginning of the year to $66,751 in September 2004. During the same calendar year, the dental participants varied from a low of 646 in July to a high of 675 in April. Total costs, including administrative and claims, have increased by $87,854 year-to-date for the period January 1 through September 30, 2004 which is an increase of 13.33%. Total contributions and interest collected to date of $274,670 have fallen short of the total costs to date of $362,524.
He mentioned that the problem of rising insurance costs is not unique to Lincoln Parish School Board but is industry wide. He has been working closely with the third party administrators to make positive changes in the options of coverage and benefits offered to employees, changes in premiums paid by the board, and changes in premiums paid by the employees in an attempt to lower the rising costs. Mr. Boyd introduced vice president of sales for Benesys, Stephen Cali; Charles Platt, vice president of pharmacy programs for Covenant Administrators; and Dan Younth, manager for Walgreens Health Initiatives; who have all been working hand in hand to present the best options for combating the increased insurance costs. These will be presented to the Board for consideration later in the meeting.
According to Mr. Boyd, because Act 778 of 2004 requires that all Boards increase salaries of classroom teachers by an amount prescribed the legislature, $52,463 must be distributed in Lincoln Parish. He plans to distribute a one-time check (called Gayle Pay) in the amount of $117 for fiscal year 04-05 at the time of the regular payroll distribution on December 22, 2004. The law further mandates that 04-05 teacher salary schedules be revised to reflect this increase in salaries. Therefore, he has added the annual increase of $117 to those applicable schedules. No Board action was required. He presented this report for information only.
Because of the Board's request to look at the school calendar earlier in the year, the Superintendent's Advisory Council met on November 15, 2004 for the purpose of reviewing three proposed 05-06 school calendars, Dr. Scriber communicated. Calendar Option 1 most closely resembled the 04-05 calendar with midterm before the Christmas holidays. Option 2 was similar to Option 1 with a slight change in the Christmas/New Year's holidays. Option 3 had a combined spring and Easter break. Schools' faculty and staff, bus drivers, central office, food service, special education, and Title I personnel were polled. The majority, 56%, voted for Option 2, 37% preferred Option 1, and 7% selected Option 3. Dr. Scriber requested approval of the proposed Option 2 calendar.
Upon a motion by Mr. Mitcham, seconded by Mr. Mack, the Board by acclamation decided to change the wording of the parish's holiday entitled Martin Luther King, Jr./Great Americans' Day to Martin Luther King, Jr. Day with the addition of a separate Presidents' Day in February.
Upon a motion by Mr. Kessler, seconded by Ms. Best, the Board unanimously voted to adopt the proposed Option 2 calendar as amended for the 05-06 school year as follows:
Lincoln Parish 2005 - 2006 School Calendar
Instructional Staff Workday August 15, 2005
All Staff Workday August 16, 2005
Labor Day Holiday September 5, 2005
Thanksgiving Holiday November 21-25, 2005
End of First Semester December 22, 2005
Christmas/New Year's Holidays Dec. 23, 2005-Jan. 6, 2006
Martin Luther King, Jr. January 16, 2006
All Staff Workday/Staff Development January 17, 2006
Presidents' Day February 20, 2006
Spring Break April 3-7, 2006
Easter Holiday April 14 & April 17, 2006
Last Day of School for Students May 26, 2006
Instructional Staff Workday (½ day) May 29, 2006
At this point in the meeting, Jack Boyd presented the administration's annual proposed self-insurance benefits plan renewal to become effective January 1, 2005. He said the system must use a pro-active approach in meeting its two primary objectives pertaining to the self-insured health/dental/life insurance plan: providing benefits which meet the needs of employees and ensuring that such benefits are consistent with and comparable to those offered by other school boards and parish governments and curtailing the rising cost of the self-insurance program to both the Board and to its employees. In an effort to achieve these goals, options of changing benefits coverage, increasing the amount of the premium paid by the employee, and changing insurance providers have been considered.
He reminded the Board that the self-insurance plan's third party administrator, Benesys, Inc., was recently purchased by Covenant Administrators. He anticipates several changes being made in the processing of claims, benefits offered, and long-term savings in administrative costs over the increased fixed costs projected prior to the purchase of Benesys by Covenant.
Mr. Boyd reiterated that the self-insurance benefits plan has experienced a 5.96% increase in the health program's costs and a 13.33% increase in the dental program's costs over the first nine months of 2004. However, over the previous few years, program costs have risen significantly at a rate in excess of 12% in both the health and dental programs. These increases have occurred despite having put in place several plan changes and premium increases in 2003. The Board is presently funding the increased costs from the General Fund without an increase in premiums to the employees. For the year 2005, medical/prescription claims are projected to increase an additional 7.5% and dental claims are projected to increase another 7%. This will require even more funding.
The best of the proposals received for renewal of the health insurance plan was from the present carrier, Pan American Life, according to Mr. Boyd. He recommended renewal with them with the changes proposed for the self-insured programs for 2005 as follows:
1. Raise specific reinsurance from $100,000 stop loss limit to $110,000.
2. Lower specific reinsurance for a single claimant from $14.95 to $14.86 and for family coverage from $42.20 to $41.27.
3. Increase aggregate reinsurance from $2.00 per member per month to $2.31.
4. Raise Benesys/Covenant's annual administrative fees from $229,614.00 to $246,430.80.
5. Increase aggregate limit on claims from $8,032,821.96 to $8.255,835.72.
6. Raise a single's total monthly fixed costs from $34.70 to $36.22 and a family's total monthly from $61.95 to $62.63.
7. Increase a single's total monthly claims costs from $360.25 to $369.15 and a family's total monthly claims costs from $784.16 to $806.62.
In addition Mr. Boyd said, based on available figures, the total cost of both fixed costs and claims coverage would change from $394.95 to $405.37 (an increase of 2.64%) and the total cost per month for family coverage would change from $846.11 to $869.25 (an increase of 2.73%).
A recommendation to increase members' health and dental premiums by 5% for 2005 in order to cover to increase in claims costs was also proposed by the administration. This will affect current employees and retiree premiums. Active single employees' premiums were $40 in 2004 and would jump to $42.00 (+$2.00). Active employees with a spouse have been paying $100.40 but would pay $105.42 (+$5.02) and active employees with family coverage will begin paying $161.32 instead of $153.64 (+$7.68).
Covenant has its own in-house Pharmacy Management Program through Walgreens Pharmacy. This allows them to provide additional services at a reduced cost to the Lincoln Parish School Board. Their proposal was the best of those received for renewal of the Prescription Drug Insurance Plan. The present carrier is NMHC Rx. Because savings of 13.34% or $192,599 are projected by using the Walgreens Pharmacy Plan offered through Covenant Prescription Initiatives (CPI) over NMHC Rx based on 2004 claims, Mr. Boyd recommended Walgreens Pharmacy/CPI as the new pharmacy plan for 2005.
Regarding group life insurance, the Business Manager communicated that the Board is entering the third year of a three year policy with MetLife Insurance through Covenant. Rates are to remain the same as currently in force. He recommended renewal of the life insurance program.
Mr. Boyd asked for approval of his recommendations for group health, dental, pharmacy and life insurance plan changes and premium increases to be effective for coverage beginning January 1, 2005. A brief period of questions with answers provided by Mr. Boyd and the insurance guests followed. Upon a motion by Mr. Mack, seconded by Mr. McKinney, the Board unanimously voted to approve the recommended group health, dental, life insurance and pharmacy changes and premium increases to become effective January 1, 2005.
The Lincoln Parish School Board currently offers basic life insurance and basic accidental death and dismemberment insurance to all employees for whom the Board pays the entire premium. Coverage is based on the employee's salary and is available only as long as the individual remains an employee of the system. Coverage ceases at the time of termination, resignation or retirement.
Mr. Boyd indicated that quotes were compared from the current company, Standard Insurance, and two others. The existing coverage with Standard costs .25 per thousand dollars of coverage. Both quotes received from the two other insurance companies were lower than this figure with the lowest, MetLife Basic Life/AD&D, proposing a total cost of .17 per thousand dollars. Changing from Standard to MetLife is projected to save the Board, who pays the entire premium, approximately $25,000 annually.
In addition to the Board-paid basic life and AD&D coverage quoted above, MetLife offers coverage through the MetLife Enhanced Optional Life/AD&D plan. The employee chooses whether to participate and is responsible for paying the premium for this optional coverage.
Currently vision insurance is not offered to the employees of the Lincoln Parish School Board. An independent agent, The Clinton Agency, who is already authorized for payroll deduction, was asked to obtain quoters on vision insurance from at least three companies and present the best proposal to the Insurance Committee for consideration.
The plan offered by Always Vision Insurance Company, underwritten by Starmount Life Insurance Company in Baton Rouge, will provide this optional coverage at no cost to the Board.
Jack Boyd recommended that the Board: 1) approve changing the Board-paid basic life and basic AD&D insurance to MetLife Insurance Company at a total cost of .17 per thousand dollars of coverage and 2) approve the offering of optional vision insurance coverage to active employees of the Board through Always Vision Insurance Company.
Mr. Larry Clinton and Mr. Scott Walker with The Clinton Agency provided additional printed information and answered several questions from the Board and the public.
Upon a motion by Mr. Kessler, seconded by Mr. Ludley, the Board unanimously voted to approve the recommended Board-paid basic life and basic AD&D and vision insurance changes to become effective for coverage beginning January 1, 2005.
After vice-president Anders personally thanked the Board, the staff, and the entire Lincoln Parish system for prayers and support through the recent situations and deaths of his brother and father, the meeting adjourned at 7:33 p.m.
____________________________ __________________________
Charles R. Scriber, Secretary Robert E. Shadoin, President