Mr. Wright led Board member and guests in the Pledge of Allegiance to the United States of America (USA).

No public comments

• State Testing (April Schedule)
  • State testing will begin after spring break
  • Testing dates:
    • April 9–10 (Thursday–Friday)
    • April 13–17 (Monday–Friday)
  • Subjects covered:
    • English Language Arts
    • Math
    • Science
  • Importance:
    • Results contribute to the school’s performance dashboard
  • Actions:
    • Information will be communicated to parents
    • Students are being prepared and reminded about the importance of testing
• Student & Staff Recognition (Drama Program)
  • Recognition given to:
    • Drama students
    • Mrs. Hudson, Mrs. Brennan, and Mr. Thoreau
  • Highlight:
    • Successful “80s Town” theater production
    • Ran for two weeks with strong performances
  • Impact:
    • Positive feedback from the community
    • Served as excellent marketing for the school
• Spring Athletics Update
  • Spring sports are fully underway
  • Recent events:
    • Track meet (held today)
    • Baseball game at El Camino
    • Softball game at Uni High School
  • Overall:
    • Active participation across multiple sports programs
• ROTC & Academic Achievements
  • ROTC
    • Traveling to nationals during spring break
    • Well wishes extended to participants
  • Academic Decathlon
    • Qualified for national competition
    • Competition scheduled for end of next month
• Student Activities & Events
  • ECR Talent Show
    • Scheduled for tonight
    • Showcases student talent across the school
  • Student Council Outreach
    • Visiting Hale and other middle schools
    • Purpose:
      • Distribute flyers during back-to-school night
      • Promote the school despite recruitment restrictions from LAUSD
    • Student Council members volunteered for this effort
• Spring Break
  • Scheduled for next week
  • Message:
    • Appreciation for students and staff
    • Encouragement to enjoy a well-deserved break
• Upcoming Key Events (Post-Spring Break)
  • May
    • AP Testing
    • Senior Awards
    • Prom
  • June
    • Graduation
  • Note:
    • Timeline will move quickly after spring break
    • School is focused on successfully closing out the academic year

• Enrollment Update
  • Reported a net loss of 7 students
  • Current enrollment includes:
    • 2,007 total enrolled students
    • 69 foreign exchange students
  • Emphasis on the importance of closely tracking enrollment trends
• Financial Impact of Enrollment Changes
  • The net loss of students directly affects school funding
  • Declining enrollment may lead to:
    • Reduced revenue allocations
    • Budget adjustments if trends continue
  • Ongoing discussion about how even small enrollment changes can have noticeable financial implications
• Budget & ADA (Average Daily Attendance)
  • Budget is based on a projected enrollment of 795 students
  • Current ADA (Average Daily Attendance): 95.2%
  • ADA is a critical factor in determining:
    • Final LCFF (Local Control Funding Formula) funding
  • Any fluctuation in attendance rates can impact overall funding levels
• Monitoring & Financial Oversight
  • Strong emphasis on:
    • Closely monitoring net enrollment loss
    • Tracking attendance trends consistently
  • Importance increases as the school approaches the final quarter of the academic year
  • Goal:
    • Ensure financial stability
    • Avoid unexpected funding shortfalls

• Total Investment Performance
  • Total investments increased from $41,606,096 (July 2025) to $45,244,040 (February 2026).
  • Represents an overall gain of $3,637,944, or +8.7% year-to-date (YTD).
  • Growth is based on the Month-End Combined Investment balance, reflecting consistent portfolio appreciation.
• OPEB Trust Account (Other Post-Employment Benefits)
  • Beginning balance at start of fiscal year: $33,407,603.
  • Retiree benefit payments totaled $438,502, reducing available funds.
  • Despite distributions, the trust demonstrated strong growth driven by market performance.
  • Ending balance reached approximately $35.98 million, reflecting positive gains.
  • Investment strategy remains aligned with long-term retiree healthcare obligations.
  • Performance:
    • Monthly gain: approximately 1.3%
    • Year-to-date growth: ~7.7% total change
    • Gains/losses contribution: $3,007,257
• Investment Manager Performance
  • Beacon Pointe (OPEB Trust):
    • Reported 10.3% YTD growth, indicating strong portfolio performance.
  • General Fund Investments:
    • Beacon Pointe portfolio achieved 9.6% YTD growth.
    • Demonstrates solid returns across diversified holdings.
• Fixed Income Investments
  • Fixed income instruments yielded returns ranging between:
    • 2.5% to 3.3% across accounts
  • These investments provided stable, lower-risk returns, supporting overall portfolio balance.
• Overall Financial Position
  • Combined investment portfolio achieved:
    • 8.7% total YTD growth
  • Performance reflects:
    • Positive market conditions
    • Effective portfolio management
    • Alignment with long-term financial obligations and strategic goals
  • The investment portfolio continues to show steady growth and strong performance.
  • OPEB Trust remains financially stable and well-positioned to meet future retiree obligations.
  • Diversified investment strategy (equities + fixed income) contributes to balanced risk and return.

• Overall Financial Position
  • Total Year-to-Date (YTD) Revenue: Approximately $29.2 million.
  • YTD expenditures slightly exceed revenues, resulting in a net operating deficit.
  • Projected full-year operating loss: approximately $298,000.
  • Noted that the financial outlook is more nuanced than the deficit alone suggests, due to timing and structural factors.
• Enrollment & ADA
  • Current enrollment estimated at approximately 2,007 students.
  • Enrollment trends directly impact Average Daily Attendance (ADA) and LCFF funding levels.
  • Enrollment softness remains a key financial pressure point moving forward.
• Revenue Overview
  • Primary revenue source:
    • LCFF (Local Control Funding Formula): ~69% of total revenue (~$20.2 million).
  • Other revenue sources include:
    • Federal funding (~3%)
    • State and local sources (including nutrition, lottery, and mandated cost reimbursements)
• Cash Flow Timing & Monthly Variability
  • Monthly financial data reflects uneven cash flow patterns, not structural imbalance.
  • Key monthly observations:
    • July: Large deficit (~-$1.9 million) due to payroll expenses before state apportionments.
    • September & December: Strong positive months due to major state funding apportionments.
    • February: Significant deficit (~-$3.9 million) due to absence of LCFF apportionment.
  • Emphasized that this pattern is normal and expected, as state funding is distributed unevenly throughout the year.
• Expenditure Overview
  • Largest cost drivers:
    • Certificated salaries: approximately $14.3 million YTD
    • Employee benefits: including STRS, PERS, and Medicare
  • Additional expenditures:
    • Instructional consultants (~$1.2 million)
    • Services and operating costs (~$799,000)
  • Spending remains generally aligned with budget expectations.
• Key Financial Trends
  • Year-to-date snapshot may appear concerning in isolation but must be viewed in context of:
    • Timing of revenue receipts
    • Normal state funding cycles
  • Financial position is not structurally imbalanced, but sensitive to key variables.
• Key Risks & Considerations
  • P2 ADA Certification:
    • Identified as the most immediate financial variable affecting final funding levels.
  • Enrollment Trends:
    • Continued softness may reduce future revenue.
  • Labor Negotiations:
    • Outcomes (including broader regional agreements such as UTLA) may significantly impact expenditures.
  • Budget Development:
    • Ongoing planning for the upcoming fiscal year includes staffing and departmental needs.
• Positive Indicators
  • Investment portfolio performance has been strong, contributing additional financial stability.
  • Investment gains help offset operational pressures and support long-term planning.
  • The District is operating with a manageable projected deficit, largely influenced by timing of revenues.
  • Financial health remains stable but requires close monitoring of enrollment, ADA, and labor costs.
  • Strategic planning and strong investment performance position the organization to navigate current fiscal challenges effectively.

• Presenter:
  • Ms. Verduzco, Director of Accounting and Finance
  • Presented the February 2026 Check Registers prior to board vote and addressed questions from the board.
• Disbursement Overview:
  • Report reflects the first check register for the February 2026 accounting period.
  • A total of 132 ACH (Automated Clearing House) payments were issued.
  • Continued transition toward electronic payments (ACH) noted as part of operational improvements.
• Payment Process & Trends
  • The District is gradually increasing ACH usage, reducing reliance on paper checks.
  • Benefits include:
    • Improved efficiency and processing time
    • Enhanced financial controls and audit tracking
    • Streamlined reconciliation processes
• Expenditure Highlights
  • Payments included routine operational expenses, such as:
    • Vendor services
    • Instructional and program-related costs
    • Student activity-related purchases
• Transportation & Equipment Discussion
  • Discussion included allocation of funds for transportation and equipment needs.
  • Focus on lifecycle management of equipment, including:
    • Safety equipment (e.g., helmets) that must be replaced once they reach expiration and are no longer eligible for use or reconditioning.
  • Emphasized need to:
    • Replace expired equipment with new purchases
    • Maintain compliance with safety standards and regulations
  • Continued evaluation of new versus reconditioned assets to balance cost and safety.
• Instructional & Departmental Purchases
  • Funds support educational and classroom-related needs, including:
    • Supplies for teachers and instructional programs
    • Resources to support classroom activities and student engagement
  • Ongoing efforts to ensure departments are adequately resourced while maintaining budget discipline.
• Student Activities & Associated Student Body (ASB) Purchases
  • Expenditures include student-centered activities and programs, such as:
    • Graduation-related expenses
    • Student store purchases (e.g., snacks, items for student use)
    • School events, including dances and class activities

• Presenter:
  • Mrs. Verduzco, Director of Accounting and Finance
  • Presented the February 2026 Credit Card Charges prior to board vote and responded to board inquiries.
• Overview of Credit Card Activity
  • Report summarized authorized district credit card expenditures for the month of February 2026.
  • Charges reflect programmatic, operational, and administrative expenses aligned with district activities and priorities.
  • Emphasis placed on transparency and accountability in reviewing cardholder transactions.
• Cardholder Expenditures
  • David Hussey
    • Total Charges: $57,843.27
    • Major expenditures included:
      • Airfare/Flights for VAPA (Visual and Performing Arts) programs, specifically:
        • Choir
        • Drama
      • Hotel accommodations associated with student travel and program participation
      • Marketing and advertising expenses supporting program visibility and outreach
    • Expenses reflect student program support and extracurricular enrichment activities.
  • Ferdinand Delgado
    • Total Charges: $30,811.86
    • Charges reflect administrative and operational expenditures, consistent with district financial management responsibilities.

• Prior to the Board vote, Mr. Fernando Delgado, Chief Business Officer (CBO), will present an update on the Incoming Freshmen Devices procurement.
• The presentation will include:
  • An explanation of the cancellation of the previously approved purchase order.
  • Updated information on device pricing, vendor quotes, and procurement options.
  • A comparison of revised quotes due to manufacturing delays and increased costs (e.g., chip/memory shortages).
• Quote Comparison Overview
  • The originally approved purchase of 750 Lenovo 300w Gen 5 laptops could not be fulfilled at the initial quoted price.
  • The District returned to market and obtained three competitive quotes for the same device specifications:
    • Mobile IT Force
    • Golden Star Technology (GST)
    • Lenovo Direct
  • Key findings:
    • GST submitted the lowest complete bid, including hardware, warranty, rugged cases, and e-waste fees.
    • GST total: $574,578.47
  • Savings:
    • $53,465.91 less than Mobile IT Force
    • $67.73 less per unit
  • Lenovo Direct quote was incomplete (hardware only) and not viable as a standalone option.
• Contract and Pricing Considerations
  • GST pricing is secured through the NASPO cooperative purchasing contract, ensuring:
    • Procurement compliance
    • Elimination of the need for a separate bid process
  • Additional value from GST:
    • Free shipping included
    • All cost components bundled (hardware, warranty, accessories, disposal)
• Time-Sensitive Factors
  • GST quote expiration: March 27, 2026
  • Immediate Board action or extension request is required.
  • Quote includes a tariff escalation clause:
    • Prices may increase if the purchase order is delayed.
  • All vendor quotes are based on the same hardware SKU, ensuring a fair comparison.
  • GST provides the most comprehensive and cost-effective solution.
  • Delay in decision-making could result in:
    • Loss of current pricing
    • Increased costs due to tariffs or market changes

• Prior to the vote, Mr. David Hussey, Executive Director, will present a resolution regarding the CharterSAFE insurance policy.
• The presentation will include:
  • An overview of the opt-out provision within the CharterSAFE agreement.
  • Clarification of the purpose and intent of the opt-out notice.
  • Opportunity for the Board to ask questions before taking action.
• Purpose of the Resolution
  • The Governing Board is being asked to approve a formal opt-out notice to CharterSAFE.
  • The resolution authorizes:
    • Notification that El Camino Real Charter High School may withdraw from the CharterSAFE JPA.
    • The opt-out to be effective July 1, 2026, if exercised.
  • The resolution serves as a procedural requirement under the CharterSAFE agreement.
• Annual Insurance Review Process:
  • Administration emphasized that:
    • The District annually maintains the option to opt out of its insurance provider.
    • This is a standard practice to ensure fiscal responsibility and competitive pricing.
    • There is no current intention to leave CharterSAFE at this time.
• Rationale for Maintaining Opt-Out Flexibility:
  • The opt-out notice:
    • Preserves the District’s ability to evaluate alternative insurance quotes.
    • Ensures leverage to negotiate the most favorable insurance rates and coverage.
    • Provides protection against unreasonable or excessive premium increases.
  • If future insurance quotes are determined to be cost-prohibitive or not competitive:
    • The District retains the right to decline and seek alternative providers.
  • If quotes remain reasonable:
    • The District may continue with CharterSAFE without disruption.
  • The opt-out letter is precautionary and strategic, not indicative of immediate withdrawal.

Reconvened to open session at 7:23 pm 

No actions to report out from closed session