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2021-09-08 MinutesBOARD OF SUPERVISORS JOINT MEETING WITH SCHOOL BOARD MINUTES SEPTEMBER 8, 2021 School Board Members in Attendance: Mr. Ryan M. Harter, Chair Ms. Ann C. Coker, Vice Chair Ms. Dorothy L. Heffron Ms. Debbie G. Bailey Ms. Kathryn S. Haines Dr. Mervin B. Daugherty Superintendent 1. CALL TO ORDER AND WELCOMING REMARKS Mr. Holland called the Board of Supervisors joint work session to order at 7:00 p.m. Mr. Harter then called the School Board joint work session to order. 2. PLEDGE OF ALLEGIANCE Mr. Matt Harris, Deputy County Administrator, led the Pledge of Allegiance to the Flag of the United States of America. 3. COUNTY ADMINISTRATOR AND SUPERINTENDENT'S OPENING REMARKS Dr. Daugherty thanked both boards and expressed his excitement over the upcoming announcements. Dr. Casey stated he looked forward to continued collaboration between the county and Schools. aw 4. WORK SESSIONS 4.A. CCPS SUPPLEMENTAL RETIREMENT PLAN Mr. Robert Meister, Chief Finance Officer for Schools, provided the boards with an update on Schools' Supplemental Retirement 21-546 9/8/2021 Supervisors in Attendance: Mr. James M. Holland, Chair Mr. Christopher M. Winslow, Vice Chair Mr. James A. Ingle, Jr. Mr. Kevin P. Carroll Ms. Leslie A. T. Haley Dr. Joseph P. Casey County Administrator School Board Members in Attendance: Mr. Ryan M. Harter, Chair Ms. Ann C. Coker, Vice Chair Ms. Dorothy L. Heffron Ms. Debbie G. Bailey Ms. Kathryn S. Haines Dr. Mervin B. Daugherty Superintendent 1. CALL TO ORDER AND WELCOMING REMARKS Mr. Holland called the Board of Supervisors joint work session to order at 7:00 p.m. Mr. Harter then called the School Board joint work session to order. 2. PLEDGE OF ALLEGIANCE Mr. Matt Harris, Deputy County Administrator, led the Pledge of Allegiance to the Flag of the United States of America. 3. COUNTY ADMINISTRATOR AND SUPERINTENDENT'S OPENING REMARKS Dr. Daugherty thanked both boards and expressed his excitement over the upcoming announcements. Dr. Casey stated he looked forward to continued collaboration between the county and Schools. aw 4. WORK SESSIONS 4.A. CCPS SUPPLEMENTAL RETIREMENT PLAN Mr. Robert Meister, Chief Finance Officer for Schools, provided the boards with an update on Schools' Supplemental Retirement 21-546 9/8/2021 Plan (SRP). He stated the full actuarial analysis is under review and, accordingly, all figures are to be considered draft. He further stated excellent progress is being made towards fully funding the SRP, and the funding ratio is expected to increase from 46.4 percent to 64.9 percent. He stated the ratio for a well -funded program would be over 80 percent, and when the ratio reaches 100 percent staff would expect to support the program nearly exclusively from the investment pool. He further stated once the 80 to 100 percent levels are reached, Schools would be able to meaningfully reduce annual contributions to the program, thereby freeing up those monies for other needs. He provided data of fund performance, noting the liability stayed relatively flat last year at approximately $76 million. He stated the assets increased from $35 million to $49 million due to strong investment returns and contribution strategy. He provided a chart showing the change in percent funded ratio from 2016 to the present and the rapid approach to the 80 percent level where many funding requirements would be reduced. He compared SRP funding guidelines when the funding ratio is less than 80 percent versus when the funding ratio is greater than 80 percent. He provided a chart showing the history of SRP contributions from FY2014 to FY2022, noting an FY2022 expected contribution of approximately $13.6 million. He provided details of how making a one-time, upfront investment of $27 million would materially decrease the ongoing annual contribution and free up approximately $11 million in ongoing operating funds that could be used for other priorities. At Ms. Coker's request, Mr. Meister explained what it means for Schools employees to have a fully funded SRP. He stated the continuing contributions to the plan were designed to ensure SRP -eligible employees have a solid asset base behind the SRP that they all bought in to. He further stated getting the funding ratio to 100 percent ensures that funding will be there for those employees who are eligible for the SRP program, and it means there will be a stable source of supplemental retirement for those employees. Mr. Winslow stated it has been a very long journey for the SRP, and he thanked past and present Budget and Management staff for enacting constraints which have yielded accountability and a good, strong result in the present day. He further stated it is remarkable to see what was a severely unfunded liability that was going to impact the county's credit rating turned around in this timeframe. Mr. Holland stated all Schools employees can be pleased to note that resources are there for them when they retire. Ms. Haley expressed appreciation to both county and Schools staff for staying focused on this issue and ensuring the SRP does not regress. Mr. Carroll stated this is a one-time money issue, and the J county is fortunate to have the resources to be able to make this correction. He further stated this investment would free up approximately $11 million in Schools' budget to address other issues. He stated this is a good use of one-time monies. 21-547 9/8/2021 Ms. Bailey, as a recipient of the SRP, expressed her appreciation for the trust that would be earned by fully funding the SRP. She concurred with Mr. Carroll that it is nice to also have a fiscal windfall as a result of being fully funded. 4.B. MIDDLE SCHOOL NEEDS AND FINANCING Mr. Matt Harris provided the boards with an update on middle school needs and financing. He discussed Local Sales Tax Collections Year -over -Year Percent Change (Monthly) and how a county contribution to the SRP has been made possible by a larger -than -normal year-end surplus which resulted from one- time COVID-19 effects. He discussed the referendum that was postponed from 2020 to 2021. He stated the proposal is to take some of the one-time monies and invest them in the SRP, thereby opening up $11 to $12 million of ongoing Schools' budget capacity. He further stated $7 million of that freed -up money would be invested in the capital program for debt service. He stated while the proposal creates an ongoing commitment of that $7 million, it positions the county and Schools for the upcoming referendum and a gap financing, and it leaves a remainder of $4 to $5 million of ongoing money that can be directed toward other priorities. He further stated all of those monies would be there as soon as the SRP payment is submitted this year, which will create some one-time monies this year that could be used as a contingency for risks in construction prices. He acknowledged the specific financing of $130 million in debt for school capital needs may not be enough to cover both proposed facilities, but many sources have already been identified if gap funding is needed. He stated the investment in the SRP would get the county and Schools caught up on referendum work while at the same time taking SRP off the table. He provided details of the process to obtain Virginia Public School Authority (VPSA) gap year financing in the amount of $130 million to support the construction of two facilities. He then discussed the impact on referendum planning and noted the $130 million is in addition to the $300 million contemplated for Schools in the referendum. He stated numbers and projects will be finalized in this Capital Improvement Program (CIP) cycle, which will be approved in April 2022, and by this time next year there will be discussions about what the referendum will look like. He further stated the VPSA financing would support the construction of a new middle school in the western Route 360 area and the rebuilding of Falling Creek Middle School, and both projects are among the referendum priorities previously identified by the School Board and discussed with the Board of Supervisors. He stated StratIS data reinforces the selection of these two projects, and the middle school focus follows the elementary emphasis from the 2013 referendum. Mr. Carroll discussed overcrowding and stated getting two schools built will be phenomenal and will make a difference for the community, students, teachers, and parents. He acknowledged there are needs throughout the county and thanked his fellow Board members for collaborating with the School Board to bring this project to fruition. 21-548 9/8/2021 Ms. Haley empathized with parents and stated she hopes they hear the message that the Board of Supervisors and the School Board are listening and responding with a plan. She further stated this is a positive story and there will continue to be more plans. She thanked the community for its understanding. Ms. Haines expressed appreciation for both boards seeking a win for the whole county and not just one district. She inquired whether the 360 west middle school could provide future relief to some of the development occurring in the Midlothian Middle School area. Dr. Thomas Taylor, Deputy Superintendent, stated currently Midlothian Middle School is not at full capacity; however, any time there is an opportunity to open a new school, boundaries would be adjusted. He further stated boundary adjustments create a domino effect that could have an impact on high-growth areas like Midlothian Village. He stated another project on the list of projects for the near future is the replacement of a 100 -year-old building at Midlothian Middle School. He further stated the next bond referendum would have themes addressing middle and high school needs in a more deliberate way. Dr. Casey stated the month of October kicks off capital planning traditional exercises, and he expressed his desire to have all ten board members on the same page for a deliberative 2022 referendum. Ms. Haines stated the future VPSA bond financing would address growth with buildings and not trailers, which has been an ongoing recommendation of the Citizens' Budget Advisory Committee. Mr. Winslow stated the use of trailers has decreased significantly over the last five years, and it is important to note that accomplishment for both boards. He further stated teachers, staff, and students at Tomahawk Creek Middle School are very interested in the reliever school, and he expressed his hope that it will provide relief to Tomahawk for years to come. Mr. Carroll stated the 150 -acre site in Upper Magnolia identified as the location for the new middle school could also be a future site for an elementary school, a high school, and a public library. He further stated the Otterdale Road improvements will be completed prior to school construction, and this is a unique opportunity in that the infrastructure will be fixed before the schools are in place. Ms. Bailey expressed her excitement and stated now is the right time to give Falling Creek Middle School students and families their 21st century building with additional space. Mr. Holland concurred and stated the replacement middle school is much needed and well deserved. He expressed appreciation to board members and credited their respective staffs for the ingenuity, wisdom, and knowledge of a county that is well planned and well run. 21-549 9/8/2021 Mr. Harter thanked the Board of Supervisors and School Board for listening, and he commended the work that has been done. 4.C. TURF FIELD INITIATIVE Mr. Josh Davis, Chief Operations Officer for Schools, provided the boards with an overview of the synthetic turf field initiative. He provided details of the benefits of turf fields and stated every one of the county's 10 high schools would benefit from this initiative. He further stated Monacan and L.C. Bird high schools have the greatest need for an immediate upgrade with other schools to follow at a cost of approximately $2 million per field. He stated a shared -use memorandum of agreement (MOA) between the county and Schools is complete and, while high school athletics will have first priority, the fields will be available for community use including major tournaments and sports tourism. In response to Ms. Heffron's question relative to the installation timeline, Mr. Davis stated he believes work on Monacan and L.C. Bird fields could begin spring and summer to be ready for next fall. He further stated completion of other fields would be contingent on budget deliberations and estimated a range of two to four years. Ms. Heffron stated having this available for all students across the county demonstrates a commitment to equity and equitable access, and she expressed appreciation for the cooperation between the two boards to make the turf initiative a priority. Ms. Bailey stated investment in turf fields will be a sports tourism windfall, and the fields will pay for themselves in a short amount of time. She stated sports tourism will have a ripple effect on hotels and restaurants. Mr. Winslow stated Ms. Bailey made a good point that turf fields are all-weather fields, and the turf initiative has the capacity to change the football program at every high school. He further stated if the first two fields go well, the intent would be to get all of the high school fields turfed. He noted turf fields require particular cleats and athletes have to be mindful of what they are wearing for safety. He stated this will be a win for the county's high school programs as well as other programs that will use the fields. Dr. Casey stated the quality of turf for football is a standard that is softer than what is used at River City Sportsplex, and the fields will be the best around. He further stated each school can create its own permanent moniker in the middle of the field which generates pride. He stated the lining of the fields for multiple sports saves on labor and maintenance costs. He further stated conversations about completing the other schools could occur in October, but they could easily be packaged together as a part of the referendum. He stated the reason for picking Monacan and L.C. Bird fields first is to meet the needs of the schools, but it is also to get practice on the process, procurement, and shared services. He further stated there could be a rainstorm about two hours before a game 21-550 9/8/2021 and the teams would still be able to play, and home field would always mean home field in Chesterfield County. Mr. Carroll encouraged the community to reach out with any questions about the fields. He stated the softer fields may reduce injuries, and that makes it a worthy investment. He further stated the fields will last a long time, and there would be a maintenance schedule to ensure upkeep. Ms. Haines commended Dr. Casey's suggestion to make the turf initiative part of the bond referendum. 4.D. UPDATES ON SPRING ROCK GREEN, CCPS OFFICES Mr. Harris stated no action was requested at this meeting relative to the turf field initiative. He further stated the funding source would be the one-time surplus on the county side, and action will occur in October or November. He provided a rendering of a potential layout for the Spring Rock Green parcel and discussed the consolidation of Schools' administrative functions on the property. He stated the vision for use of the vacated building on the county campus would be to consolidate the Registrar function into one building which will eliminate two leases, improve operation efficiency, and provide a customer -friendly space for voters. He provided details of a new eastern Midlothian precinct which will be located on the Spring Rock Green site and which will eliminate another lease. He stated many activities can be consolidated on the site which can be used as a catalyst for further redevelopment on eastern Midlothian Turnpike. r1 Dr. Taylor provided the boards with an overview of plans for ./ the Chesterfield Technical Center at Hull Street. He discussed efforts to reduce Schools staff in the facility in order to serve more students. He stated currently there are approximately 1,700 learners in 34 career pathways, and the projection is 2,450 learners in 44 career pathways. He further stated career pathways are matched to the economic footprint of the region, thereby supplying the region with job candidates who match the need. He provided details of current clusters and their corresponding programs at the CTC Hull Center of Innovation. He discussed the footprint of the building and how the upstairs level, currently used for office space, can be reimagined to serve more students in a different way at a low cost of renovation. He also discussed changes to the lower level. He stated transformation of the space into the Center for Innovation with high -impact science, technology, engineering, and mathematics (STEM) programs and high -impact career and technical education (CTE) programs is a dream come true, and it also frees up some capacity with some additional high school seats. Mr. Winslow stated jobs in the region are currently going unfilled due to the lack of skillsets, and these programs are valuable to many students who want to go directly into the workforce after graduation. He further stated the restoration and enhancement of technical programs are an extreme example of the kind of good work being done between the Board of 21-551 9/8/2021 Supervisors and the School Board. He stated he looks forward to seeing the center in action with the enhancements. Ms. Haley stated the Board of Supervisors and the School Board are listening to the community and working together to determine how the community's resources can best be used to serve the citizens and students. She commended the School Board for being open-minded and collaborating on the opportunities. Mr. Ingle expressed appreciation for the dedication of both Le boards and the collaboration between their respective staffs. He stated the opportunities discussed are truly changing Chesterfield County for the better. He further stated Mr. Carroll's earlier remarks about getting infrastructure in place up front rather than on the back end is a positive change going forward. Mr. Harter stated the new School Board administrative hub is essential to being able to free up the space at CTC Hull. He concurred with Mr. Winslow's remarks about meeting the needs of employers in the region by providing students with the necessary skillsets to fill positions. He expressed gratitude for partnerships with local business leaders and cooperation between both boards to bring the opportunities to fruition. 5. CLOSING REMARKS Mr. Holland thanked all board members for coming together. He stated there has been unprecedented success with pay studies being implemented and funded, two new middle schools being built earlier than anticipated, and the SRP being well funded. He further stated he and his colleagues will continue to listen and respond to the needs of citizens. Mr. Harter concurred with Dr. Casey's earlier remark that any one of the four items discussed would have been in and of itself a major story. He stated both boards have been able to come together to deliver on four incredible projects that will pay dividends to the county. He further stated the proposed projects signal a bright future not just for students but for the entire county. He expressed pride in the collaborative efforts between the boards and their staffs. 6. ADJOURNMENT On motion of Mr. Winslow, seconded by Ms. Haley, the Board of Supervisors adjourned at 8:16 p.m. until September 22, 2021, at 2:00 p.m, for a work session to be held in the Public Meeting Room. Ingle: Aye. Carroll: Aye. ftw Haley: Aye. Winslow: Aye. Holland: Aye. 21-552 9/8/2021 On motion of Ms. Bailey, the School Board adjourned at 8:16 p.m. until September 14, 2021, at 4:00 p.m. for a work session to be held in the Public Meeting Room. Heffron: Aye. Bailey: Aye. Haines: Aye. Coker: Aye. Harter: Aye. 21-553 9/8/2021 M J J