Medford will seek federal funds for facilities expansion

The Medford School District is hoping to tap into Federal Emergency Management Agency (FEMA) funds to gain more space at the high school.

Board members at Monday night’s meeting approved hiring Jordan Buss of JBAD Solutions of Spencer to prepare a FEMA grant request for a 13,000 square foot storm shelter structure.

Once built, the district would be able to use the shelter for any purpose it chose so long as it could continue to be used as a tornado shelter for about 1,000 people in the case of an emergency. District administrator Pat Sullivan, noted that other districts have used these federally funded structures for sports practice facilities and even theaters.

Buss got involved with the grant process as a member of the Spencer School Board and wrote the grant getting a dome for Spencer. He has since worked with several other school districts to secure funding for the federal grant. He noted that while domes are the most cost effective when it comes to larger free-span buildings, the final structure doesn’t have to be a dome as long as it meets federal storm shelter requirements. He noted that one of the schools he is working with plans to use precast concrete for the walls and ceiling of their structure, which will be used as a gym most of the time.

“First and foremost it gives the community a safe room,” Sullivan said. Secondarily, because the federal grant covers 75% of the eligible construction costs, it would allow the district to get a $3 million facility for $1 million in local investment. In addition to the 25% grant match, the district would also have costs of furnishing and maintaining the structure.

“It is a way to provide something that we need,” Sullivan said.

Buss said one of the major benefits of the grant program is the ability of the district to change its mind up until construction is set to begin. He said that until the district submits to get reimbursement for grant funds spent, they can reject the proposal. If approved, the district will have three years to spend the money.

The proposal includes having the structure near the high school which would allow the grant to include the building capacities for the high school and elementary school buildings as well as any businesses or homes within a half-mile radius of the structure to count toward the grant. This would give the district a more competitive advantage for it.

The consultant’s fee for the grant application is $9,500 up front. If the district is successful in getting the grant, Buss would also received 1.5% of what was awarded, minus the $9,500.

The motion to move ahead with the grant application passed unanimously.

Borrowing funds

School board members unanimously approved issuing $805,600 in promissory notes to pay for needed upgrades to the high school including replacement of decaying galvanized pipes, roof sections, blacktop and sidewalks.

These were all immediate project needs identified in the school referendum that failed when presented to voters last fall and again in April. State law allows school boards to issue up to $1 million in debt without direct approval of voters. This main difference is that the debt service payments must be paid within the existing revenue cap for the district rather than being in addition to the revenue cap. The district previously used some of that borrowing capacity to purchase a parcel near the elementary school for future district needs.

The aggregate interest rate for the money borrowed is 1.5%.

Finance director Audra Brooks noted that when it was previously discussed by the board, the projected interest rate was 3%. The lower interest rate reduces the overall cost of the borrowing.

Insurance

After reviewing the end of year health insurance claims and what has been paid out in the first quarter of 2021, the school district’s insurance consultants advised not going out on bids this year and seeing what Aspirus comes in for renewal rates.

Cory Toth-LaPointe a senior employee benefits consultant with Spectrum and Tony Hallgren of Spectrum’s Medford offi ce, updated the board on how insurance spending looked for the current year.

She said that for the year-end under Security Health Plan, the district came in with a member loss ratio of 121.8% which means that payouts significantly exceeded premiums paid. The district switched insurance providers on January 1. For the first quarter of 2021, under Aspirus they have had a loss ratio of 89.4% which, if it carried through to renewal, would allow the district to be in the guaranteed renewal of 7%.

However, Brian Hallgren raised doubts that the usage rate would remain that low anticipating that it probably would be over 100% by this time. He especially noted what he viewed as a substantial amount paid out for subscription drugs. “It strikes me as a lot,” he said questioning if the projections should be giving the board heart palpitations.

As with most insurance, it is a relatively small handful of extremely high claims that is driving the loss rates. In 2020, the top claim that was paid out was $787,458 for a member with cancer. Cancer was also the cause of claims of $292,448 and $203,141 rounding out the top three. There were 10 claims that were over $100,000 for the year. Cancers as well as a case of bacteria in the bloodstream accounted for three claims over $100,000 so far in 2021.

Fleegel said what he was seeing is that it was not that members were overusing the plan, because the statistics show usage rates at or below average, but that it is major health issues that are beyond people’s control to get.

Toth-LaPointe said going out on the market for bids now would be disadvantageous because it would include the large number of claims that came in at the end of 2020. She said that depending on what Aspirus brings forward for a premium increase, the district should look at premium changes which would shift more costs to the members as a way to lower district premium expenses. For example, she suggested the district could look at increasing the family deductibles and not increase the amount the district pays into the health savings accounts. This, she said, would make employees have more “skin in the game.”

In the end, board members took no action and instead will wait to see what the premiums bring this fall.

In other business, board members:

_ Discussed the start of year plans. Sullivan said that as of right now the district is making no plans to include any sort of COVID restrictions. “We are planning to come back to a regular day,” he said.

This includes not having any sort of virtual option beyond what is offered through the Rural Virtual Academy. Last year the district offered the option for students to do virtual instruction due to COVID, but found this was not successful for many students as far as grades.

Sullivan said that they would proceed with plans to open as a normal year unless they received direction from the state or other entity with the authority to tell them otherwise.

Fleegel said he put the item on the agenda to ensure that board feelings on the school opening were heard.

_ Approved hiring an additional high school English teacher. English is one of the few core subjects that all students are required to take each year. High School principal Jill Lybert noted that with the large classes at the high school now and projected for future years, they are looking at 30 students per section, which they said gets to be high. She also noted that they had to cut two college-level English classes despite having enough students signed up for them, because they simply did not have the English staff time for them.

She noted that these were the only two English electives offered in the district after the others were cut to trim the budget years ago. “We are very bare bones in English,” she said.

The current enrollment trend for the district projects large class sizes for the next decade with the next smaller class coming with the current third-graders.

Brian Hallgren opposed hiring an additional English teacher. “We are not too far away from being in the position here where we will be cutting,” he said.

Fleegel disagreed. “I am hearing we have to have an English teacher,” he said.

This led Brian Hallgren to question at what point do they cut. He suggested there are probably other high-level classes that could be cut to increase staff time for other things.

“We have to move forward,” Fleegel said, noting that it is important to make sure the district’s core is solid.

_ Received an update on a physical education playground upgrade at the Medford Area Middle School. Principal Al Leonard noted MAMS has not had new equipment since before the new building opened 20 years ago. The project to upgrade the equipment has gotten signifi cant community support with about $123,000 donated for the project, covering over half of the project cost. Leonard noted that in addition to it being available for physical education and recess, the playground will be also open to community use when the school is not in session.

_ Approved a change in the truancy policy for the coming school year to remove wording regarding the number of days a parent may allow a student to be absent. Previously the policy stated parents could allow students to be out for 10 days with a parent’s note. The policy then listed specific reasons why students could miss school for up to 10 days. The district was finding that families were interpreting this to be in addition to rather than inclusive of the 10 days allowed. The new policy eliminates the language allowing parents to sign off on up to 10 days of absences.