No announcements.

No public comments.

The board reconvened from closed session at 6:40pm and there were no reportable actions.

Adrienne, CEO reported that a federal delay in issuing required information has prevented auditors and auditors for many other schools and districts from completing their audits by the December 15 deadline, affecting all LEAs undergoing a single audit for federal funding. Extension requests to all four authorizers have been submitted to move the deadline to January 31. She also highlighted several recent and upcoming school activities, including a Trunk-or-Treat event hosted by BJE and RCA, the Ruby Bridges Walk involving all three Richmond schools, an RCA parent information night for next year’s enrollment, and joint walkthroughs by RCA and John Henry for Semester 2 planning. Across all schools, tours, open houses, and enrollment fairs are underway, and RCA is preparing for its LCAP presentation to Contra Costa County in two weeks.

Adrienne, CEO reported that the LCFF calculator has been updated to ensure accurate base revenue for all schools. Although some schools experienced enrollment declines, ADA remains strong at 93% or higher, which helps offset the impact. On the expense side, vacancies led to reduced salary costs and increased substitute spending. Non-capitalized expenses were also lowered because last year’s higher furniture-related purchases are no longer needed. Special education expenses increased significantly due to one student placed in a non-public school and a $267,000 cost from Celebration Speech Group from 2024-25. About $35,000 in Measure G1 carryover funds were not included, but OCA and DCA submitted applications for this funding.

Adrienne reported that BJE is meeting both its enrollment and ADA projections, so revenue is expected to remain stable. Expenses show decreases in salaries and benefits due to vacancies, alongside increases in substitute costs, operations & housekeeping, mainly from insurance and utilities, and facilities related to taxes. Professional and consulting services are decreasing because of lower IT and PR budgets. BJE is projected to end the year with a modest surplus of about $36,000, maintaining a strong fund balance and fully meeting reserve requirements. 

DCA Frist Interims remained the same as when the Material Revision was brought to the board in the previous board meeting. Adrienne explained that the current year’s projected surplus of $36,000 is expected to increase to $111,000 in 2026-27 due to a temporary influx of additional students from OCA due to the merger. After that bubble decreases the following year, staffing adjustments may be needed in 2027-28 or 2028-29, though the projections currently assume the same full staffing used in 2026-27. Enrollment at DCA is expected to stabilize at around 420 students once the bubble passes.

Adrienne explained that although OCA is expected to merge with DCA, a full template was completed for submission. OCA’s enrollment has dropped by about 10 students, resulting in an estimated $160,000 reduction in revenue. Expenses show mixed changes: salaries and benefits are down due to vacancies, operations and housekeeping have decreased, but professional and consulting costs have increased because of legal fees. Overall, this results in roughly a $35,000 reduction in total expenses. Despite projecting a loss this year due to lower enrollment, OCA still maintains a strong fund balance and will continue to meet its reserve requirements.

Board Chair Rodolfo pointed out that the substitute services line increased from $164,000 to $630,000 and questioned whether the organization actually spends that much on substitutes.

Adrienne explained that the large increase in the substitute services line is due to shifting the full cost of vacant salary positions into that line item. It was essentially a one-for-one transfer over $400,000 from certificated salaries was moved to substitute services. She also noted that the Celebration Speech Group expense from last year is included, along with SPED services and a 1:1 aide.

Adrienne explained that although RCA’s initial enrollment data was higher than budgeted, due to the late charter renewal; the budget was revised from 330 down to 320. Actual enrollment is closer to 295. Although ADA is running higher than the model’s projection of 274, the model uses a 93% ADA rate, resulting in an estimated revenue loss of about $310,000. She noted that the final loss may be smaller if ADA remains strong. RCA’s expenses could not be reduced much due to depreciation constraints: salaries were lowered because of vacancies, but costs increased for substitutes, contracted services, insurance, utilities, and real estate taxes. Professional and consulting expenses decreased slightly due to a lower management fee, but overall expenses still increased by about $114,000. RCA is projected to end the year with a $200,000 loss; although the fund balance remains above required authorizer thresholds, staffing and enrollment will need close monitoring for 2026-27.

Board member Davis asked about the minimum fund balance requirement for RCA.

Adrienne said it's 5%.

Adrienne reported that John Henry’s projected enrollment dropped by about 8 students, though ADA remains stable, leading to a slight reduction in revenue of around $169,000. Expenses reflect a salary-to-substitute swap and reduced spending on books and furniture, due to prior large investments, but operations and housekeeping costs increased because of insurance and utilities. Professional and consulting services rose, primarily due to assessments. Overall, expenses increased by $89,000, resulting in a projected single-year loss of $278,000. Despite this, John Henry maintains a strong fund balance and meets minimum reserve requirements, consistent with other schools. The focus is on student and staff improvement and retention.

Board member Peter emphasized agreement with the focus on retention and recruitment and asked for more detail, requesting an overview of the top initiatives planned for retaining and recruiting both staff and students, particularly for the upcoming January through March period.

Adrienne explained that retention and recruitment efforts are already underway. For student enrollment, the schools have added open houses, school tours, advertising campaigns including billboards in Oakland and potentially Richmond, and participation in enrollment fairs. For staffing, they are optimizing job ads to attract qualified candidates and developing teacher residency programs, which are planned to launch in 2027-28, though the work on them has already begun.

Board member Peter asked about current efforts for student recruitment through community outreach, specifically targeting organizations like local community groups and churches as potential channels to connect with and attract students.

Adrienne and Board Chair Rodolfo explained that AMPS has been somewhat disconnected from the community in recent years, and rebuilding those relationships will take time. They highlighted steps already taken, such as joining 5Cs and rejoining FIA, to reconnect with community and parent organizers. Additionally, there is a commitment to assign a dedicated staff person next year to strengthen these community connections.