The attached document lists the contracts executed by the Superintendent or designee for the month of April 2022.

• Atkinson, Andelson, Loya, Ruud & Romo
• Burke, Williams & Sorensen
  
• Fagen Friedman & Fulfrost
• Liebert Cassidy Whitmore
• Lozano Smith
• Orbach Huff & Henderson
• The County of Santa Clara 

Having a variety of legal firms allows the District flexibility to select the firm with the most expertise and experience for a particular matter. Since these firms represent many clients in the education field the possibility of conflict of interest could arise, the District will have the option to easily select alternative counsel.

The funds received from these tax measures are deposited into the Education Protection Account (EPA) and there are several accountability measures on these funds including:

• Requires school governing boards to make spending determinations at an open session of a public meeting
• Prohibits funds from being used for administrative costs
• Requires districts to annually publish accounting of funds on its website
• Inclusion of Proposition 30 and Proposition 55 revenues and expenditures in annual financial audits

For Fiscal Year 2022-23, it is estimated the District will receive $1,558,635 in funding as a result of the passage of Proposition 55.  Staff recommends that the Board approve the attached allocations.

Per the Governmental Accounting Standards Board (GASB) Statement 54, districts may continue to use Fund 11 and 14, if formal action is taken, to commit the funds for the purposes for which they were originally intended. By passing this resolution, the Board is committing the fund balances in Fund 11 for the purpose of Adult Education and Fund 14 for the purpose of Deferred Maintenance. These funds may be uncommitted at any time by Board action.

The District has determined that participation in the following cooperative purchasing programs is essential to ensure the District receives the lowest price while using Staff’s time efficiently:

The annual cost to provide services for Fiscal Services and Technology Support Services are as follows:

Staff recommends approving Memorandum of Understanding with Santa Clara County Office of Education for 2022-23 Annual Technical Services.

Staff researched the most cost effective and simplest way to update this critical system. Three possible solutions are available:

• Upgrading the current phone system software to the latest version and keeping the vast majority of the phones
• Switching to a new internally hosted phone system and replacing all phones
• Switching to a cloud based phone system and replacing all phones

When evaluating these solutions, the following three key areas were taken into account: cost, implementation/down time, and time to learn/teach a brand new system to Staff. It was determined that upgrading the current system to the latest version was the most responsible and effective solution.

Staff vetted multiple vendors to supply the necessary software/hardware as well as to handle the implementation of this large system upgrade. Staff is recommending that the Board the approve the contract with IT Management in the amount of $384,514.92 to complete this project. This includes a 10% contingency.

• Inform the public concerning the District’s expenditure of Measure G bond proceeds;
• Review expenditure reports produced by the District to ensure that Measure G bond proceeds were expended only for the purposes set forth in Measure G; and
• Present to the Board of Education in public session, an annual written report outlining their activities and conclusions regarding the expenditure of Measure G bond proceeds.

On June 19, 2018, Dr. Frank Serrano was approved as a member of the Committee representing the position of “Parent/Guardian of a child enrolled in the District.”  Dr. Serrano has been a valuable member of the Committee serving as the Committee Chair. Staff is requesting Board approval for an extension of his appointment to the Committee for an additional term, expiring June of 2024.

Since CSMH does not have a full-service transportation department, there are some functions and tasks that could be provided in a more efficient manner by the District. This agreement allows CSMH to procure, at their discretion, services such as fueling, parking, mechanic, and field trips. 

Staff reviewed the renewal agreement and recommend approval of continual transportation services.

In accordance with State law, the report has been available for public review and notice of the public hearing has been advertised along with being posted in the regular locations for meeting notices in the School District.  

The Level 1 rates are adjusted by the SAB every two years to account for increases in school construction costs. The SAB approved the 2022 rates in February 2022.  

A second action item and resolution will be presented to the board following this item to consider the imposition of the justified fees.

In accordance with State law, this resolution will authorize the District to impose the newly justified fees. 

Upon approval of the resolution, the updated Level 1 rates will go into effect in 60 days.

An election was held in the Morgan Hill Unified School District on November 6, 2012 for the issuance and sale of general obligation bonds of the District for various school improvements in the maximum amount of $198,250,000 (the “Measure G”).  The District has previously issued two series of bonds under Measure G.  The schedule for issuing the final series of bonds in an amount not to exceed $63,250,000 authorized under Measure G (the “Bonds”) currently anticipates selling such Bonds after the time that the Auditor-Controller calculates the taxes to be levied for District bonded debt during fiscal year 2022-23.  Therefore, this Resolution is being brought before the Board of Education now to formally request that, pursuant to Education Code Sections 15252-15254, the Board of Supervisors of the County adopt a tax rate and levy a tax for the Bonds.  The tax rate will be based upon an estimated debt service schedule prepared by the District.  The Resolution further authorizes the District officials to file a certified copy of the Resolution with the Board of Supervisors of the County and to deliver copies of the Resolution to the Auditor-Controller and Treasurer and Tax Collector of the County. 

Adoption of this Resolution is necessary to ensure that property taxes are levied during fiscal year 2022-23 for the payment of the Bonds.  The Bonds are expected to be sold during fiscal year 2022-23.

As required by Education Code section 42103, 42127, and 52062, the Governing Board of the Morgan Hill Unified School District will hold a public hearing to solicit public comment on the 2022-23 proposed budget of the District, prior to final adoption. The proposed budget was available for public inspection at the District Office beginning June 2, 2022 during regular office hours as well as on the District's website.

Final action to approve the 2022-23 budget will be taken at the June 21, 2022 Board of Education meeting.

The Adopted Budget will be presented for final approval at the June 21, 2022 Board meeting.

In accordance with SB 858 and Education Code 42127, school districts are required to include the following information for review and discussion with their adopted and revised budgets:

• The minimum recommended reserve for economic uncertainties for each fiscal year identified in the budget
• The combined assigned and unassigned ending fund balances that are in excess of the minimum recommended reserve for economic uncertainties for each fiscal year identified in the budget, pursuant to Education Code Section 33128(a). The fund balances included are Fund 01, General Fund, and Fund 17, Special Reserve Fund for Other Than Capital Outlay Projects.
• A statement of reasons that substantiates the need for an assigned and unassigned ending fund balance in excess of the minimum recommended reserve for economic uncertainties for each fiscal year

Beginning in 2015-16, school districts must include this information each time it files an adopted or revised budget with the County Superintendent of Schools. The County Superintendent of Schools shall determine whether a school district’s adopted or revised budget complied with these requirements.

SB 858 also includes provisions for reserve caps or limits if four State revenue conditions are met. For 2021-22, it is anticipated that all of the conditions will be met and the reserve limits will be activated the following fiscal year (2022-23).

As amended by Senate Bill (SB) 751 in September 2017, the reserve limit only applies in a fiscal year immediately following a fiscal year in which the State makes a deposit of at least three percent (3%) of the Proposition 98 funding into the State’s Public School System Stabilization Account (the reserve that was created by Proposition 2).  If the reserve cap is activated, a district with an ADA of 400,000 or less would be limited to a combined assigned or unassigned ending balance of ten percent (10%) in the General Fund and Special Reserve Fund for Other Than Capital Outlay. The County Superintendent of Schools may grant an exemption of this requirement for up to two consecutive fiscal years within a three year period to any district that documents extraordinary fiscal circumstances that substantiate the need for a reserve in excess of the limit.