H. Beliak participated from Magnolia Science Academy-6, all other board members whom participated attended in person from Magnolia Science Academy- Santa Ana. Chief Executive Officer, C. Young, did not participate. Refer to attendance information above for more details. 

MSA-Santa Ana student lead the Board and attendees in the Pledge of Allegiance.

There were no public comments.

No oral communications were made.

S. Orazov, MPS board member,  arrived at 7:04 pm and begin voting from consent items moving forward. 

J. Simmons, attorney from Young, Minney & Corr, LLP, gave the training to Form 700 filers of Magnolia Science Academy -1, 2, 3, MPS home office, and MPS Board of Directors. This item was a training, no actions required.

U. Yapanel arrived in person at 8:10 p.m.

N. Montijo, Chief Financial Officer, spoke on the policies that are being presented. She explained that these changes would apply to all Magnolia Public Schools (MPS) and they are in alignment with the requirements from Los Angeles County of Education's (LACOE's) Memorandum of Understanding requirements. The policies presented for approval are the following; Bank Account Reconciliation,  Fixed Asset Control and Leased payroll desk policy. N. Montijo explained each policy in depth and addressed all questions. 

A. Rubalcava, Chief External Officer, presented the Anti-Nepotism policy. He explained that legal has worked on and has reviewed these policies. J. Simmons from Young Minney and Corr, LLC (YMC) provided background on this policy.

A. Rubalcava, Chief External Officer, explained the Conflict of Interest Policy for MSA-1, 2, and 3 along with the Conflict of Interest Code. He explained the reason for the changes and explained that this policy aligns with the request in LACOE's MOU. A. Rubalacava He addressed questions. 

A. Rubalcava, Chief External Officer, spoke on the revised Conflict of Interest Code for MSA-1, 2, and 3. This will only impact schools that are authorized by LACOE. By approving this item our Conflict of Interest Code will align with LACOE's MOU requirements. J. Simmons, attorney from YMC, explained the difficulty of having different schools authorized by different authorizers and therefore having schools comply with different conflict on interest codes that include specific language requested by each authorizer. He explained that the organization should get their own Conflict of Interest Code approved by the Fair Political Practice Commission (FPPC), with this, all MPS will be responsibly to comply with only one Conflict of Interest Code. Attorneys and MPS staff addressed all questions. 

N. Montijo, Chief Financial Officer, presented the Investment Policy to the Board. N. Unterburger and S. Orazov, MPS Board Chair and MPS Board Treasurer, presented their concerns of the policy and made suggestions of additions and edits.

K. Dietz, EdTec representative, presented the second interim reports to the Board. She reviewed the positive and negative financials for all MPS. K. Dietz, mentioned the improvement in expense coding and the reduction numbers of uncategorized expenses. O. Revish, Human Resource Director, explained the STRS implementations that are going to be put in place into Paycom to address the reporting needs and streamline the process. S. Acar and E. Acar, Regional Directors, elaborated on the STRS and PERS concerns and explained the steps that have been put in place to ensure that these concerns are addressed. N. Montijo, Chief Financial Officer, informed the Board of the current status with FCMAT.
 

N. Montijo, Chief Financial Officer, explained the loss treatment of MSA Santa Clara due to the closure of the site. The total loss of 1,176,563.13 will be recorded in the MERF books for the current year. She explained that legal's advice is to not distribute the loss to schools, MERF home office should absorb the full loss. K. Dietz, EdTec representative, assisted in explaining the 4 year absorption plan. The Board discussed the comparison of the loss when the closure of PTS- Orangevale took place. All questions were addressed. 

F. Gonzalez, Chief Growth Officer (CGO), updated the board on the MSA-1 Facility and the construction of the new building. He explained the work that has already been done and what work is still needed. He explained the challenges with working with the City of Los Angeles regarding the gymnasium and the project with the LA Kings. S. Acar, Chief Operations Officer, presented more detail on the MSA-1 project. F. Gonzalez, CGO, addressed all questions. 

F. Gonzalez, Chief Growth Officer, gave an update on MSA-San Diego facility. He explained the expected timeline and details of the project. F. Gonzalez, gave details on the demolition of the current building. He explained the cost and the reimbursement procedure of the expenses. S. Acar, Chief Operations Officer, presented details on the time constraints with the construction and the projected opening day of the school. 

The costs will be reimbursed as soon as the Hamlin Bond comes through. The time frame is 30 days to demolish. Hamlin funding would close on April 26.

N. Montijo, Chief Financial Officer, presented the Bridge Financing item. N. Montijo, Chief Financial Officer and N. Huynh, MPS Board Director, presented details on the financing. They explained the projects and the current financial needs. All questions were addressed.

F. Gonzalez, Chief Growth Officer,presented the MSA Santa Ana (MSA-SA) Amended Project Budget and Prop 1D Financing item. He explained the changes to the original plan that came along the way as the construction was in progress. He also elaborated on the past MPS Board approved budget for this project. The project budget and 5% contingency was approved in July of 2015 but the source of this contingency amount was not identified. Staff is requesting and intra-company loan with MSA-Santa Ana to cover this contingency. MSA-SA will payback this loan when its ADA has increased. Staff addressed all questions. 

Closed Session discussion was postponed.

Closed Session discussion was postponed.

Written report was delivered, there was no discussion. 

Discussion of the 2017 Bond Financing item was postponed until the next board meeting.