January 11, 2016 Board Minutes Page 1 of 7

January 11, 2016 Board Minutes Page 1 of 7 MINUTES OF THE ANNUAL ORGANIZATIONAL MEETING AND WORK SESSION OF THE MARSHALL BOARD OF EDUCATION HELD ON MONDAY, JANUARY 11, 2016 AT 7:00 PM, IN THE MIDDLE SCHOOL MEDIA CENTER LRC PRESENT: LINDSEY, DESMET, CAMPAU, POTTER, MCCOMB, MIDDLETON, DAVIS, SEIFERT JOINED AT 7:48 PM ABSENT: NONE The meeting was called to order by President Lindsey. The pledge of allegiance was led by Trustee Middleton. CALL TO ORDER PLEDGE OF ALLEGIANCE APPROVAL OF THE AGENDA Moved Potter, supported DeSmet, that the agenda be approved as presented. A roll-call vote unanimously carried the motion. PUBLIC COMMENT Jerry Clifton (Marshall) asked that the people of Marshall be allowed to vote as he believes the decision to annex is the biggest decision that Marshall will make. He cautioned that annexation will take away all that everyone enjoys about Marshall; that the Board is taking the rights away from the people; and that everyone should evaluate the situation and think of what past generations preserved and would do. SPECIAL ORDER OF BUSINESS ELECTION OF OFFICERS FOR JANUARY 2016-DECEMBER 2016 Superintendent Davis shared that at the December 22, 2015 Special Board Session President Lindsey assembled a Nominating Committee. The committee included Vic Potter, Chris McComb and Lisa Middleton. Vic Potter served as Chair. He indicated the committee met and recommended officer assignments as follows: President Richard Lindsey, Jr. Vice President Bill DeSmet Secretary Annette Campau Treasurer Vic Potter Moved Potter, supported by DeSmet, that the Board of Education approve the election of officers for January December 2016 as presented. A roll-call vote carried the motion unanimously. Elected officers assumed their chairs. ELECTED OFFICERS ASSUME CHAIRS

January 11, 2016 Board Minutes Page 2 of 7 BOARD TOPICS: CALHOUN AREA SCHOOL BOARD MEMBERS ASSOCIATION (CASBMA) 2016 AWARD NOMINATIONS: Superintendent Davis asked the Board if there were any individuals they would like to support nominating for a CASBMA Award. None were offered. ECONOMICALLY DISADVANTAGE AND ACHIEVEMENT GAP ANALYSIS: Superintendent Davis provided a PowerPoint presentation comparing MEAP data for Marshall Public Schools (MPS) in comparison to neighboring school districts in the area; with specifics related to economically disadvantage and the achievement gap. He indicated that regionally MPS is doing a better job of educating all of its students. President Lindsey asked if results were available based on race to which Superintendent Davis responded they were not as there was not enough data to make good comparisons. Further, any data for groups smaller than 30 could violate FERPA laws so it will not be shared. DETAILED 22g GRANT REQUEST: Superintendent Davis indicated there is a line item in the state s budget of $5M which is referred to as 22g; these funds designated specifically for assisting annexing or consolidating school districts in the transition of that act and implementation of that act. The definition of what those dollars can be used for is fairly broad so it is left up to interpretation. These dollars could be used to pay-down operational deficits of an annexed district. The competitive grant was due on December 22 nd ; MPS submitted a grant request, is qualified and considered to be eligible for it. The Michigan Department of Education is responsible for pulling together a committee to conduca grant review of the submissions to determine who is the highest qualified and what portion of those dollars will be awarded. The district hopes to hear by the first week of February. $6.2M was tracked in total package expenditures. Even though only $5M is available MPS wanted to make sure the full $5M was asked for and that MPS had a demonstrated case to argue and to support future grant requests should the district be able to go back and request funds in the future. Three grant requests were received by the state with one of which appears to not qualify. A copy of the grant was provided to each member of the Board. He reviewed a few things in the narrative of the grant that he felt were essential to know. He introduced Director of Business Operations Becky Jones to provide further information regarding the grant. Mrs. Jones reviewed with a broad stroke what the model would be that was submitted in the grant including subtotals for expenditures included. Of the $6.2M requested in the grant $3.6M would go toward paying down the debt in Albion with $123,000 allocated toward costs leading up to annexation. Superintendent Davis explained if a community-centered school is planned for Albion it would have to have a student population of at least 330 students, grades K-5, for the business model to work. At this time Albion Public Schools (APS) has 350 students in grades K-5, so enrollment will be monitored throughout the process both at semester and at the end of the school year.

January 11, 2016 Board Minutes Page 3 of 7 President Lindsey asked about the projected costs for raising buildings in APS s district to which Superintendent Davis responded it would be a community decision as to which buildings would be raised. The expenditures were included in the grant request based on current estimates for doing so. Trustee Middleton asked what happens if there are not 330 K-5 students since the goal is to keep a community-centered elementary school in Albion. Superintendent Davis responded the K-5 community-centered school is based on MPS s current model of two teachers per grade level then attention would be focused on what could be provided that would be equal to and is a quality education like what MPS provides in its current elementary schools. Partnerships with Albion College and others would be explored as well to find ways to sustain an elementary school. MPS s could not provide a community-centered elementary school if enrollment does not support it. Superintendent Davis indicated the 22g grant proposal will be released to APS s board and Albion s City Council as well as it will be released through a FOIA request that has been submitted. Trustee Middleton asked if the 22g grant proposal, should it be funded, will help the district reach the 5% fund balance required by the state. Mrs. Jones responded that she does not see it taking the district to the 5% as the grant funds would go toward paying APS s debt and providing services. That increased enrollment is what the district needs to help in reaching the 5% threshold. Superintendent Davis explained that whatever kids may come in due to the expanded cooperative agreement that the district will need those students to continue their education with MPS and the hope is that more students would enroll since transportation to and from Albion will be provided. Since the district has its staffing model established no changes would be needed and an increase in enrollment would only benefit the district. President Lindsey thanked Representative David Maturen and from the Legislative Director Greg Moore for their help in Lansing. APPROVAL OF THE CONSENT AGENDA Item on the consent agenda was contracted services with Linda Bennink to provide interim administrative services for the curriculum office for the remainder of the 2015-2016 school year; the contract amount is to not exceed $41,000. Moved by Potter, supported by Campau, that the Board of Education approve the Consent Agenda as presented. A roll-call vote carried the motion unanimously. ANNUAL ORGANIZATION FEBRUARY 2016 JANUARY 2016 SETTING THE MEETING DATE, PLACE AND TIME: Set work and business sessions for the Marshall Board of Education on the 2 nd and 4 th Mondays of each month at 7:00 p.m. in the

January 11, 2016 Board Minutes Page 4 of 7 Community Room excluding July, September, and December when one combined work/business session will be held. The following schedule was recommended: Work Sessions Business Sessions February 8, 2016 February 22, 2016 March 14, 2016 March 28, 2016 April 11, 2016 April 25, 2016 May 9, 2016 May 23, 2016 June 13, 2016 June 27, 2016 July 25, 2016 Combined Work/Business Session August 8, 2016 August 22, 2016 September 26, 2016 Combined Work/Business Session October 10, 2016 October 24, 2016 November 14, 2016 November 28, 2016 December 12, 2016 Combined Work/Business Session January 9, 2017 January 23, 2017 (Annual Organizational Meeting & combined work session) DESIGNATE BANK DEPOSITORIES FOR THE 2016 CALENDAR YEAR: Designate as banks of depositories as follows: Institution Institution Institution Bank of America First National Bank of Howell Northern MI Bank & Trust Baybank of Gladstone Flagstar Bank Omni Comm Credit Union CASE Credit Union Hastings City Bank Paramount Bank Chelsea State Bank Homestead Savings Bank Post Comm Credit Union Chemical Bank Independent Bank PrivateBank Citizens Bank Isabella Select Bank Clarkston State Bank Kalsee Credit Union Southern MI Bank & Trust Community State Bank Kellogg Comm Fed Credit Union SSB Bank County National Bank Keystone Community Bank Traverse City State Bank Davison State Bank Marshall Community Credit Union United Bank & Trust Eaton Federal Savings Bank mbank United Educational Credit Union First Community Federal Credit Union Mercantile Bank of Michigan Urban Partnership Bank (formerly Shore Bank) First Community Bank Monroe Bank & Trust DESIGNATION OF BROKERS FOR THE 2016 CALENDAR YEAR: Designate as brokers Chemical Bank, Comerica Bank, Fifth Third Bank, MBIA Municipal Investors Service Corporation, PFM Asset Management, LLC, PNC, Bank of America, Citizens Bank, Southern Michigan Bank and Trust, and Marshall Community Credit Union. DESIGNATION OF LAW FIRMS FOR THE 2016 CALENDAR YEAR: Designate as law firms Thrun Law Firm, P.C. and Schroeder, DeGraw, Kendall, Mayhall, DeGraw & Dickerson, PLC. APPOINTMENTS TO THE CASBMA BOARD OF DIRECTORS FOR THE 2016 CALENDAR YEAR: Appoint Richard Lindsey, Jr. as delegate and George Seifert as alternate delegate to the Calhoun Area School Board Members Association Board of Directors to represent MPS. Moved Campau, supported DeSmet, that the Board of Education approve Action Items Annual Organization as presented with the deletion of Monarch Community Bank as a

January 11, 2016 Board Minutes Page 5 of 7 bank of depository and as a broker as the bank no longer exists. A roll-call vote carried the motion unanimously. APPROVAL OF ACTION ITEM OTHER APPROVE RESOLUTION TO ANNEX ALBION PUBLIC SCHOOLS: Approve a resolution approving to annex Albion Public Schools. Superintendent Davis read the resolution aloud. Treasurer Potter asked Superintendent Davis to explain what would happen if annexation were to not go through. Superintendent Davis explained annexation maintains Marshall Public Schools and its Board and affords the opportunity, should the grant be approved, for funds to be allowed to reduce APS s debt. If annexation were not to go through then APS voters would be liable for the debt with no grant funds to help. Dissolution of the district would occur resulting in no public school system. The Calhoun Intermediate School District would be responsible for dividing up APS s district between Mar Lee, Marshall and Homer school districts, it could go to one district or divided between two or all three districts; whatever would be assigned proportionately each district would inherit the liabilities and assets of such. Board members asked questions and shared thoughts as follows: With annexation MPS would retain some control and could receive resources to assist. MPS has until February 8, 2016 to rescind the resolution to annex should the Board to approve it. Moving forward toward annexation would likely be stopped if the 22g grant is not approved. If 22g funds exist in the states next budget the district would be eligible to apply for more funds. How do we maintain what we have over the next 5-10 years if we do not increase enrollment? Every district is experiencing declining enrollment due to the states decline. The district would need to increase enrollment through School of Choice. MPS would have experienced a deficit if high school cooperative agreement had not been in place. Whatever is decided it has to be a win win as weakening MPS to help a struggling district will not be recommended. The resolution to annex needs to be considered within 120 days of an election in order to provide the state time to review it. A period of time and assurance have to be made otherwise both communities would be set up for upheaval. While it is not firm the state has indicated MPS should here whether the 22g grant request has been approved and if so for how much by February 1, 2016. If annexation does not go through then the cooperative agreement between MPS and APS ceases to exist.

January 11, 2016 Board Minutes Page 6 of 7 Will elementary students be made to move involuntarily to the communitycentered elementary school located in Albion? No students will be moved involuntarily. The hope is that some parents will want their children to attend it and will request to be enrolled there. Is APS s debt continually being reviewed so there are no surprises? Yes, APS has to still manage their budget; Treasury in Lansing is looking at helping MPS with this. So there is no radical difference in APS s debt at this point? No, there is not. No matter what happens APS s parents need to be invested with the school system that is in place for their children. Marshall School District taxes will not increase regardless of what happens, correct? Yes, that is a correct statement. The bonded indebtedness remains with each district regardless of what occurs. Say we only get half the grant dollars requested; when is it beneficial, at what point, is our cut off point? This has not been looked at. The belief is that annexation will be best for MPS. If the support is not there the Superintendent will bring it back to the Board for consideration. If APS is dissolved and not annexed then the debt is put upon MPS if Albion s School District were assigned to MPS? Yes, that is correct. If Albion School District voters vote annexation down then the district will be dissolved? Yes. Should the Board consider setting a special meeting now for early February to receive an update and to consider appropriate action? No, it would be better to wait until the Board s next meeting on January 25, 2016 to call a special meeting if it is needed. Moved Potter, supported DeSmet, that the Board of Education approve Action Item Other as presented. A roll-call vote carried the motion unanimously. PUBLIC COMMENTS State Representative David Maturen shared he has full faith and supports the annexation of Albion Public Schools to Marshall Public Schools; and that he will do what he can at the state level with Senator Mike Nofs to help make this happen. BOARD MEMBER COMMENTS FOR WHICH NO ACTION MAY BE TAKEN AT THIS MEETING Vice President DeSmet thanked Superintendent Davis and Ms. Jones for all the effort they have put into the details related to annexation as well as administrators. Superintendent Davis indicated that he and Mrs. Jones will be presenting the Economically Disadvantage and the Achievement Gap Analysis and the Detailed 22g Grant Request to APS Board of Education Tuesday, January 12, 2016. President Lindsey thanked specific individuals in the audience for supporting the district and for attending the meeting; included were: Albion Board of Education Members Kevin Metz and Vivian Davis, also Kevin Metz s son, Albion City Manager Sheryl Mitchell, State Representative David Maturen, Legislative Director Greg Moore.

January 11, 2016 Board Minutes Page 7 of 7 Superintendent Davis announced the upcoming Skill Trades and Engineering Partnership (STEP) Luncheon Reception on Friday, January 22 nd. Between70-80 individuals have been invited. Those in attendance will start by touring the applied arts area and have the students that are in the STEP Club demonstrate skills, 10 seniors have committed to participating in the program. He listed the business partners that applied and have partnered with the district to be a part of the program. The companies include: Autocam, BorgWarner, Caster Concepts, Team1 Plastics and Tenneco. The meeting adjourned at 8:26 p.m. ADJOURNMENT ANNETTE CAMPAU, SECRETARY KIMBERLY VANWORMER, RECORDING SECRETARY