No public comments were received for this meeting.

Mr. Fernando Delgado and Ms. Janneyra Verduzco presented the August 2025 Check Registers for the City National Bank accounts and responded to questions from the committee.

Accounts Reviewed

• General Account 1761 (A/P Account) – August 2025
  • Total Expenditures: $409,728.91
• ASB Trust Account #1826 – August 2025
  • Total Expenditures: $244,684.45
• Checking Account 1796 (A/P Account) – August 2025
  • Total Expenditures: $1,118,879.29
• General Account 1761 (A/P Account) – July 2025
  • Total Expenditures: $522,159.90
• ECRCHS KKL/Trust Balance – August 2025
  • Trust Balance: $603,130.21

Discussion

• The check registers were reviewed in detail, with supporting documentation provided for each account, including vendor payments, purchase order numbers, and budget allocations.
• The CBO and Director of Accounting confirmed that all transactions were properly documented, reconciled, and consistent with budget expectations.
• Committee members raised clarifying questions regarding expenditures; staff confirmed that all payments were compliant with financial policies and procedures.

Ms. Janneyra Verduzco presented the review of the August 2025 credit card charges.

• Mr. Hussey’s Credit Card Statement
  • Total activity for the covered period: $19,556.43.
  • The statement included vendor listings, dates, purchase order (PO) numbers, purchase descriptions, requestor details, resource codes, and budget categories.
• Mr. Woods’ Credit Card Statement
  • Total activity: $7,497.50.
  • Details provided included vendors, dates, PO numbers, purchase descriptions, requestor details, resource codes, and budget categories.
• Credits/Returns
  • Highlighted credits from vendors were noted, typically resulting from double billing or returned items.
  • An example cited was the return of an item from a CTE Cooking Class, which was processed and credited back automatically.

Overview of Grants

• AMIM (Block Grant):
  • Established by AB 181 (2022).
  • One-time discretionary grant totaling $2,176,757.
  • Must be fully spent by June 30, 2026.
  • Broad, flexible allowable uses, including standards-aligned PD and materials, professional development, libraries, operational costs (retirement/healthcare), and COVID-19 safety measures.
  • Local control with board approval required; stakeholder engagement (VAPA, staff, students) will inform allocation.
• Prop 28 (Ongoing):
  • Voter initiative (2022); permanent annual allocation (~$4 million).
  • Distribution: 70% based on ADA, 30% on unduplicated pupil count (~1,100 students).
  • Restricted to arts education only: 80% staffing (teachers/assistants), 20% supplies/materials/partnerships.
  • Funds must supplement, not supplant, existing positions.

Flexibility & Accountability

• AMIM provides the most flexibility, allowing funding across staffing, facilities, operations, and technology.
• Prop 28 is more restrictive, requiring strict reporting and ongoing compliance with California Department of Education (CDE) guidelines.

Planned Priorities

• AMIM Goals: Enhance VAPA programs, provide instruments, upgrade theater and multipurpose hall lighting/stage/audio-visual systems, offer professional development, improve facilities, expand programs, and upgrade classroom technology.
• AMIM Plan: Gather input through surveys, ensure equity and alignment with LCAP and school goals, prioritize high-impact uses, and present a finalized plan for October board approval.
• Prop 28 Use: Hiring additional arts staff (band, choir, theater, tech director positions, etc.) and ensuring sufficient resources for program sustainability.

Budget Clarifications

• AMIM funds must be used by June 30, 2026.
• Prop 28 allocations fluctuate annually based on ADA and unduplicated pupil counts.
• Year 1 Prop 28 funds (2023–24: $482,000) may be spent within three years, per CDE guidance.
• Slight budget overages tied to salary scale increases will be addressed through carryover and, if necessary, the general fund.

Board Questions & Clarifications

• Confirmed that AMIM can fund a wide range of needs (e.g., theater flooring, curtains, instruments, technology).
• Prop 28 requires supplementing current staffing, not replacing existing positions.
• Hiring processes involve relevant department faculty to ensure candidate compatibility.
• Clarified reporting requirements: number of teachers, classified staff, students served, and arts education programs must be documented annually.

Background

• ArbiterPay was first explored last year, following its successful use by other local schools.
• The system was piloted at ECRCHS with Athletic Director Richard Russell and has proven effective in streamlining payments to referees and officials.

Functionality

• ArbiterPay functions as an escrow account specifically for referee payments.
• Example: Schools such as Birmingham deposit ~$50,000 per semester to cover officiating costs.
• Athletic directors submit referee payment requests against the balance, and the system reconciles monthly.
• At ECRCHS, the plan is to maintain a smaller balance (approx. $1,000) for flexibility while avoiding overfunding.

Efficiency & Benefits

• ArbiterPay manages the collection of W-9s and tax reporting requirements, reducing administrative workload and compliance risks.
• Payments are made via ACH, eliminating the need for manual check cutting.
• The system ensures referees and umpires are paid promptly, addressing prior complaints of delayed payments.
• Annual subscription cost: $3,060.00 (per contract for 10/01/2025 – 09/30/2026).

Internal Controls

• Clear segregation of duties has been implemented:
  • Only Mr. Delgado and Ms. Verduzco have access to fund transfers.
  • The Athletic Director (Mr. Russell) has authority only to assign referees but cannot initiate or approve payments.
• This prevents unauthorized transfers and maintains financial oversight.

Board Questions & Clarifications

• Trustees inquired whether all referees have been paid and whether the system resolves past issues of delayed payments.
• Administration confirmed referees are now paid up-to-date, and ArbiterPay is functioning as intended.
• Clarification was provided that coaches are not responsible for processing payments; the system automatically handles them once referees complete games.

Mr. Fernando Delgado and Mr. Ryan Guinto presented the request to increase the budget for the Digital Marquee and Front/Corner Monument Project and responded to questions from the committee.

Key Discussion Points

• Project Scope & Design
  • A complete overhaul of the current marquee at Valley Circle is planned, including full removal of the outdated structure.
  • A new digital marquee will be constructed with LED panels, aluminum framing, and composite wood materials designed for long-term durability.
  • A second corner monument will also be installed at Valley Circle, featuring illuminated ECR lettering in the planters.
  • Mock-ups were reviewed, with final design to be refined following issuance of the purchase order.
• Technology & Functionality
  • The digital marquee will be capable of displaying announcements, events, and videos.
  • A centralized management software will be implemented to control the marquee, interior LCD screens, and—eventually—the stadium scoreboard.
  • System access will be strictly controlled, with password protections and oversight by the Director of Technology to ensure content integrity.
• Budget Overview
  • 2023–24 Capitalization Project Budget
    • Kardent Architect/DSA Approval: $28,000
  • 2024–25 Capitalization Project Budget
    • LAUSD Oversight: $75,341
    • Total spent to date: $103,341
  • 2025–26 Capitalization Project Budget
    • Digital Marquee: $176,857
    • Corner Monument & ECR Planter: $73,483.63
    • LAUSD Electrical Work (Estimate): $75,000
    • Total 2025–26 Allocation: $325,341
  • Total Project Cost: $428,682
  • Budget Carry-Over: $219,543.57
  • Proposed Budget Increase: $105,797.06
  • + 20% Contingency: $21,159.41
  • Total Budget Increase Requested: $126,956.47
• Additional Considerations
  • Project approval was delayed due to DSA processes; full approval has now been secured.
  • Possible LAUSD requirements, including geo-testing and soil sampling, may add to costs.
  • Vendor warranties include 10 years on parts; labor coverage will be provided by the installing vendor.

Committee Questions & Responses

• Members asked whether the old marquee could be reused elsewhere on campus; it was clarified that the existing structure is outdated and not functional for redeployment.
• The project timeline anticipates completion by Summer 2026.
• Concerns were raised regarding cost escalation since 2023; staff clarified that increases are tied to tariffs, inflation, and extended project delays.