School District of the City of Muskegon Heights

Receivership Transition Advisory Board Meeting

Wednesday, May 19, 2021

Virtual Meeting via Microsoft Teams

MINUTES

1. Call to Order
   1. Chair Jessica Thomas called the meeting to order at 4:03 p.m.
   2. At an open meeting on April 6, 2021, the Muskegon County Board of Commissioners consented to the Declaration of the Local State of Emergency through December 31, 2021.as a result this meeting will be held by remote participation. 
2. Roll Call

Members Present-3

• Dr. Dale K. Nesbary - Muskegon, MI
• Jessica Thomas - Birmingham, MI
• Dr. Patrice Johnson - Wayne County

Members Absent - 2

• John Schrier
• Clinton Todd

A quorum was present.

3. Approval of RTAB Minutes
   1. Motion made by Dr. Nesbary and seconded by Dr. Johnson to approve the draft minutes of the RTAB April 21, 2021 meeting. The RTAB members unanimously approved the meeting minutes as presented.
4. Communications
   1. Chair Thomas informed the meeting that communication was received from Muskegon Heights Public School Academy  after the submission deadline and as a courtesy, that communication was forwarded to the RTAB board in advance of the meeting.
5. Old Business
   1. Presentation on RTAB status and Dissolution Process
      1. Chair Thomas invited the Board's legal counsel, Leonard Wolfe, to provide a response to the questions posed regarding the status of the RTAB board.
      2. Mr. Wolfe gave an overview of the status of the RTAB board and the dissolution process noting that the RTAB board serves at the pleasure of the Governor.
      3. Chair Thomas invited the members of the RTAB board to pose any questions pertaining to dissolution process and the contract.
      4. Dr. Nesbary stated that the presentation was a concise description of what is needed to dissolve the RTAB board.
      5. Chair Thomas asked legal counsel to elaborate on the 2 conditions that must be satisfied before the district is removed from receivership and the dissolution of the RTAB board.
      6. Legal Counsel, Mr. Wolfe, provided clarification on the 2 conditions that must be satisfied before the District is removed from receivership.
   2. Presentation on District Financial Status
      1. Chair Thomas provided an overview of the memorandum regarding the financial status of the School District of the City of Muskegon Heights which noted the accomplishments of the School District since the appointment of the RTAB board.
      2. Chair Thomas invited the RTAB board members to pose any questions pertaining to the District's financial status.
6. New Business
   1. District Financial Update.
      1. The Schools Districts Business Manager, Mr. Lewis provided an overview of the memorandum regarding the monthly financial status report.
   2. April Financial Status Report
      1. Budget to Actual Revenue and Expenditure Report
         1. Mr. Lewis reported that there is nothing significant to report in terms of revenues and noted that the revenues will likely be the same as April and believes the district will receive delinquent tax payments in June.  He also reported that the cost categories looked much better, and the budget was changed to reflect the budget amendment approved last month. He further informed the meeting that if there are substantial changes with the projections, another budget amendment could come to the RTAB board in June.
         2. Chair Thomas queried the current and projected fund balance.  Mr. Lewis reported they are budgeting to add approximately $43,000 to the fund balance.
   3. Cash Flow Statements
      1. Mr. Lewis reported that cash flow continues to remain stable for the coming year. He also reported that final payment to the QZAB bonds will be made in 2022, which will add an additional $182,000 to the budget annually after 2022.
   4. Liabilities Report
      1. Mr. Lewis reported that interest payments were made on the district's 2016 refunding bonds and the debt schedule has been adjusted to reflect those payments. 
      2. Mr. Lewis provided an update on the 2016 refunding bonds.  He stated that he contacted the refunding bond attorney and found out the Series A bonds will mature in 2029 and the mandatory repayment date is 2035. 
      3. Chair Thomas invited the RTAB board to pose questions relating to the April Financial Status Report as presented.
      4. Dr. Johnson asked queried the date of the next financial statement audit.
      5. Dr. Nesbary asked Mr. Lewis to share how cash flows through the district in the current fiscal year. 
      6. Chair Thomas asked what the district's plans are for the additional $182,000. 
   5. Comments from the Muskegon Heights Public School Academy and the School Board of the City of Muskegon Heights
      1. Chair Thomas invited the representative from Muskegon Heights Public School Academy to make their presentation
         1. Celeste Parker, Board member, made a presentation on behalf of the academy, noting that their duty and responsibility is to ensure that policies and procedures are adhered to and also to evaluate the superintendent.  In her presentation she highlighted the academy's accomplishments.  
         2. Chair Thomas requested more information regarding the $1.6 million loan that was mentioned in the presentation. 
   6. Chair Thomas invited the representative from the School Board of the City of Muskegon Heights to make their presentation
      1. Trinell Scott, President of Muskegon Heights Public School Board made the presentation on behalf of the School Board, noting that they are the elected officials that have been mandated to be the oversight of the PSA.  She stated that they are not trying to dismantle or disrupt anything that is currently in place but are trying to execute the role of the authorizer, which includes ensuring that the children are afforded the best education possible, and the PSA is following best practices.  
      2. Chair Thomas invited the RTAB board to pose questions to representatives in relation to both presentations.
      3. Dr. Johnson asked If the RTAB board is dissolved what does the public-school board prescribed as the next steps?
      4. Dr. Nesbary asked what would be the one ask of the RTAB board?
      5. Dr. Johnson asked the status of a meeting between the PSA Board and the District.
   7. Board Discussion on RTAB Status and Dissolution Process
      1. Chair Thomas restated the options available to the RTAB Board based upon legal counsels presentation and requested a roll call vote.
      2. Motion made by Dr. Johnson and seconded by Chair Thomas to approve a resolution to dissolve the RTAB board.  The members of the RTAB board voted and the vote was approved to dissolve the RTAB board.
         1. Dr. P Johnson - Yes
         2. Chair Thomas - Yes
         3. Dr. D Nesbary - No
         4. Mr. Schrier - Absent
         5. Mr. Todd - Absent
   8. Chair Thomas invited the members of the RTAB board to make comments.
      1. Dr. Nesbary provided comment regarding the disconnect and the discord between the academy and the elected board that has been present over a number of years.  
      2. Dr. Johnson commented on the responsibility of the RTAB board in regard to the district's oversight financial obligations the school board financial strategy at this.
7. Public Comment

• Mary Valentine
• Joseph Warren
• Jen Saylor
• Sonja Edlendis
• Kellie Kitchen
• Leann Szymanski
• Rachael Clarke
• Shameika Johnson
• Renee Bothea
• Trinell Scott
• Kim Purnell
• Kevin Cummings
• Troy Bell
• Sophoria Johnson-Pierce
• Garland Kilgore
• Mark Glover
• Tamals Briggs
• Carmela Elom
• Tracy French
• Jim Gunner
• Ms. Rebecca
• Linda Tuarez
• Dawn Coster
• Trinnell Scott
• Mary Valentine
• Rachel Clark
• Brianna Scott
• Renee Bothea,
• Sonja Edlendis

8. Board Comment
   1. Dr. Nesbary provided comment on the decision for his vote.
   2. Dr. Johnson provided comment on the decision for her vote.
   3. Chair Thomas provided comment on the decision for her vote.
9. Adjournment
   1. There being no further business, Chair Thomas adjourned the meeting at 6:24 pm.