On April 2, 2019, the Board approved the award of the project and a contract for the Design and Construction Agreement to Kent Construction (with SVA Architects as the designer) for a contract price not to exceed $8,413,420. As part of the Agreement, the District and Kent Construction agreed to meet and confer in order to arrive at a final lump sum guaranteed maximum price for the Project once design for the Project reached fifty percent (50%) completion of the design document phase. The parties have meet and conferred and the attached Amendment reflects a reduction in the contract value to $8,194,158, clarifications related to the construction contingency, and incorporates various exhibits that were unavailable at the time the original contract was executed.  

Staff recommends the approval of the attached amendment to Kent Construction's Design and Construction Agreement.

The attached document lists the contracts executed by the Superintendent or designee for the month of August 2019.

Senate Bill 1029 (SB 1029), which went into effect on January 1, 2017, revises the Government Code to require additional reporting requirements related to the issuance of debt by a local agency. SB 1029 amends Government Code Section 8855 to place additional reporting obligations on the issuers of public debt in California. As amended, Section 8855(k) now requires state and local debt issuers who have submitted a report of final sale to CDIAC to subsequently submit an annual debt report. The annual debt report must include, at a minimum, the amount of debt authorized, the debt outstanding, and the use of proceeds of the issued debt during the reporting period.

Only Measure G Series B was issued after January 1, 2017 and is under the new requirements. The attached report was submitted to CDIAC and is submitted as information to the Board in accordance with the District’s debt policy adopted on August 1, 2017

Agreement between
Morgan Hill Unified School District and
Morgan Hill Educational Leaders Association (MHELA)
Effective July 1, 2019

The Morgan Hill Educational Leaders Association and the District have met and conferred on topics of interest.  On September 26, 2019, they reached agreement on the following:

• Increase on salary schedule of 1.5% retroactive to July 1, 2019 and an additional 1.5% increase effective July 1, 2020.
• Agreement to review cell phone stipends including standardizing amounts and create (if needed) monthly mileage stipends for various high-use positions. As approved by the Superintendent, any revisions/changes would be itemized in affected employees’ employment offers/contracts.
• Agreement to revise language related to calendar concerns include the ability for classified managers to earn comp time in lieu of vacation days to use at the December break. Clarification for Certificated managers to ensure 5 carryover days and the ability to schedule work on non-student days and weekends with prior approval by Assistant Superintendent of Educational Services.
• All MHELA members will be enrolled in a $10,000 term life insurance policy paid by the District. Each member names their beneficiary.
• Changes to health and welfare benefits as follows:

Cash in Lieu:  This benefit will only apply to members hired and who opted for this benefit prior to October 4, 2019 and who waive medical coverage. Following this date, there will be no new enrollment in the cash in lieu benefit.

• Members taking cash in lieu by the date above will maintain this benefit up to a monthly maximum of $500 through June 30, 2020.
• Effective July 1, 2020 through June 30, 2021, the cash in lieu benefit will be reduced to a monthly maximum of $250 for members continuing to this benefit and who waive a medical plan. Members may choose to move to the new benefit structure may enroll in a medical plan as a qualifying event.
• Effective July 1, 2021, the cash in lieu benefit will be entirely eliminated. Members may choose to move to the new benefit structure and may enroll in a medical plan as a qualifying event. 

Medical, Dental and Vision: Begin a tiered structure with increases in the District contribution toward medical, dental, and vision benefits effective January 1, 2020. The increase in the tiered District contribution is available to all MHELA members and is tied to the member’s selection of medical plan coverage.  MHELA members who waive a medical plan may still use the District contribution to enroll in dental and vision benefits. The tiered contribution is as follows:

• Up to $9,000 annually for employee-only coverage
• Up to $12,000 annually for employee+1 coverage
• Up to $15,000 annually for family coverage

No impact for public hearing (procedural item)

With the passage of Assembly Bill 1200 in 1991, the California State Legislature tasked all county offices of education with fiscal oversight of school districts ensuring that school districts can meet their financial obligations. The Santa Clara County Office of Education has reviewed the collective bargaining disclosure and has determined that as of the fiscal year 2019-20 45-Day Budget Revision, the District’s projected reserves will be at or above the State’s required minimum reserves of 3% through 2021-22. The reserves are expected to remain at or above the threshold after accounting for the impact of this agreement.  The AB 1200 is attached for review.

Following the public hearing, it is recommended that the Board of Education approve the agreement between the Morgan Hill Unified School District and the Morgan Hill Educational Leaders Association.