S. Perez, Student Board Member, gave her preferential opinion as a statement of yes for this item.

J. Lara reopened the approval of the agenda to be amended after Closed Session at the request from the board with the following changes: the board will review consent, all action items, and remove information/discussion items IV.A Enrollment and Strategy Update and IV.B Average Daily Attendance (ADA) Update to be discussed at a later time.

F. Del Carpio, Chief People Officer, explained the proposed changes to the teaching positions and the pay raise scale that will help attract talent and contribute to the organizational priority of retaining staff and improving the operational side.

All questions from the Board were addressed by staff.

F. Del Carpio, Chief People Officer, shared that this band rather defines the minimum and maximum ranges for each position and isn't a reflection of the value of every employee. 

All questions for the board were addressed by staff.

F. Del Carpio, Chief People Officer, explained the comprehensive fiscal stabilization process in response to evolving enrollment trends, average daily attendance (ADA) performance, rising operational costs, the expiration of one-time pandemic-era funding sources, and updated state budget assumptions for the 2026–27 fiscal year. MPS leadership worked collaboratively with school principals and department leaders throughout the year to review enrollment trends, ADA performance, staffing allocations, master schedules, and budget assumptions.

F. Del Carpio, Chief People Officer, shared the compensation structure as part of the annual budget development process. 

Based on this analysis, MPS proposes the following compensation adjustments for school site classified employees

effective July 1, 2026: A $1,015 increase for all full-time classified exempt employees; A $0.50 (50 cent) hourly increase for all classified hourly employees, including both part-time and full-time non-exempt employees.

These adjustments reflect MPS’s continued commitment to supporting employees while aligning compensation

decisions with current budget realities and long-term organizational planning.

All board questions were addressed by staff.

A. Rubalcava, CEO & Superintendent, shared that there is a current vacancy in the role of Board Secretary. The interim will serve to temporarily fill the role and sign minutes and execute the duties assigned to the role until it is filled and the Board makes the determination final.

E. Acar, Deputy Superintendent, presented a Board-adopted contingency plan addressing the additional bond issuance debt associated with the MSA-5 facilities project. The plan responds to LACOE's request for a clear framework describing how MERF/MPS would respond if MSA-5 does not meet projected enrollment

or ADA targets, experiences cash-flow pressure, or is otherwise unable to support debt-related obligations solely from site-level resources.

C. Turan, Interim Chief Financial Officer, shared how this restructure would extend existing intra-organization loan arrangements to provide greater financial flexibility, align repayment terms with projected cash flows, and ensure continued operational support across Magnolia Public Schools.

The updated structure includes the following intra-organization loan relationships:

• MSA-8 → MERF → MSA-OC (Pass-through loan structure)

• MSA-8 → MERF → MSA-7 (Pass-through loan structure)

• MSA-6 → MERF → MSA-OC (NEW)

All questions and comments from the Board were addressed by staff.

P. Ontiveros, General Counsel and Director of Facilities, shared that this item is solely to approve the construction change orders and contract amendments associated with the Project. The proposed change orders and contract amendments address additional work required due to site conditions and utility coordination identified during construction. Staff is bringing this item forward to maintain transparency and ensure the Board is informed of project cost adjustments as the Project progresses.

A few items that were modifications mentioned are the sidewalks and modifying the wording on the perforated screen to add "MIDDLE & HIGH SCHOOL."

All questions and comments were addressed by staff.

M. Sahin, Facilities Project Manager, shared information regarding the selection of the Contractor to complete tenant improvements at MSA OC Anaheim campus located at 412 W. Carl Karcher Way, Anaheim, CA 92801.

The scope of tenant improvements includes: Replacement of the existing HVAC system, Roof replacement/repair, and Addition of two staff restrooms. 

All questions from the Board were addressed by staff.