humble independent school district “focus on …ams, 7th grade a-team - district football...

HUMBLE INDEPENDENT SCHOOL DISTRICT “FOCUS ON LEARNING”

REGULAR MEETING OF THE BOARD OF TRUSTEES

Notice is hereby given that a regular meeting of the Board of Trustees will be held on Tuesday, December 9, 2014 at 5:00 p.m. The meeting will be held in the Board Room at 20200 Eastway Village, Humble, Texas. The subjects to be discussed or considered or upon which any formal action might be taken are as follows: Call to order – 5:00 p.m. Adjourn to Closed Session

Section 551.074 Personnel Matters – To hear a complaint or charge against an officer or employee

Hearing & deliberation of FNG (LOCAL) Level 3 Parent Complaint Appeal

Section 551.071 Consultation with Attorney for legal advice, opinion

and recommendations.

Section 551.071 Consultation with Attorney for legal advice, opinion and recommendations.

Section 551.074 Personnel – Deliberate appointment, employment, evaluation, re-assignment, duties, discipline or dismissal of a public employee. If, during the course of the meeting covered by this notice, the Board should determine that a closed session of the Board should be held or is required in relation to any item included in this notice, then such closed session as authorized by Section 551.001 et. seq. of the Texas Government Code (the Open Meetings Act) will be held by the Board at that date, hour and place given in this notice or as soon after the commencement of the meeting covered by this notice as the Board may conveniently meet in such closed session concerning any and all subjects and for any and all purposes permitted by Sections 551.071 – 551.084, inclusive, of the Open Meetings Act Reconvene Regular Session – 7:00 p.m. Welcome and introduction of Board and administration Pledge of Allegiance Salute to the Texas flag Moment of Silence

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Commendations and Recognitions Questions and comments by patrons or employees of the district regarding agenda

items or any other matters Comments by individual Board Members

(may include, but are not limited to, expressions of thanks, congratulations, or condolence; information regarding holiday schedules; an honorary or salutary recognition of a public official, public employee, or other citizen; reminders about an upcoming event organized or sponsored by the District; and/or information regarding a social, ceremonial, or community event that was attended or is scheduled to be attended by a Trustee or a member of the District)

Comments by the Administration

Superintendent regarding student issues, staff issues, facilities issues, funding issues, safe and secure campus issues and Board and district events

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BOARD ACTION AGENDA

Action: Closed session

Consideration of and action on items addressed in Closed Session a) Consideration of FNG (LOCAL) Level 3 Parent Complaint Appeal b) Approval of personnel recommendations

Action: Minutes

Consideration of minutes for the special Board meeting held on November 6, 2014 Consideration of minutes for the regular Board meeting held on November 11, 2014. Consideration of minutes for the special Board meeting held on November 13, 2014

Update: Board Associations and Committees

Advertising/Marketing Committee Audit Committee Board and Superintendent Evaluation Process & Goals Committee Building and Planning Committee Education Foundation Finance Committee Legislative Committee Program Committee Technology and Data Governance Committee

Action: Consent Agenda

Consideration of items placed on the consent agenda

1. GOVERNANCE REPORTS AND CONSIDERATIONS:

A. Action: Policy CDA (LOCAL)

Consideration of Policy CDA (LOCAL) including Investment Strategies, the Corresponding Resolution, the Listing of Qualified Brokers/Dealers, and Sources of Training

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ADMINISTRATION RECOMMENDATION The Superintendent recommends that the Board of Trustees approve Policy CDA (LOCAL) including Investment Strategies, the corresponding Resolution, the Listing of Brokers/Dealers, and Sources of Training.

B. Action: Policy DCE (LOCAL)

Consideration of Policy DCE (LOCAL) ADMINISTRATION RECOMMENDATION The Superintendent recommends that the Board of Trustees approve Policy DCE (LOCA), Employment Practices and Other Types of Contracts.

C. Action: Resolution in Support of Expanding the State’s Investment in

Pre-K Education

Consideration of the Resolution in Support of Expanding the State’s Investment In Pre-K Education ADMINISTRATION RECOMMENDATION The Superintendent recommends that the Board of Trustees approve the Resolution in Support of Expanding the State’s Investment in Pre-K Education.

2. SUPERINTENDENT’S DIVISION REPORTS, CONSIDERATIONS AND

PURCHASES: There are no items for this title this month.

3. LEARNING DIVISION REPORTS, CONSIDERATIONS AND PURCHASES:

A. Action: Exception to Elementary Class Size Limits Waiver

Consideration of the Exception to Elementary Class Size Limits Waiver

ADMINISTRATION RECOMMENDATION

The Superintendent recommends that the Board of Trustees approve the Exception to Elementary Class Size Limits Waiver with the Texas Education Agency.

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4. FINANCIAL SERVICES DIVISION REPORTS, CONSIDERATIONS AND PURCHASES:

1. Action: Tax Refunds

Consideration of Petitions for Refunds in Excess of $500 ADMINISTRATION RECOMMENDATION

The Superintendent recommends that the Board of Trustees approve the petitions for tax refunds.

2. Action: Waiver of P & I

Consideration of Requests for Waiver of Penalty and Interest on Delinquent Taxes ADMINISTRATION RECOMMENDATION

The Superintendent recommends that the Board of Trustees approve the requests for waiver of penalty and interest on delinquent tax accounts.

3. Action: Budgetary Amendments

Consideration of Budgetary Amendments

ADMINISTRATION RECOMMENDATION The Superintendent recommends that the Board of Trustees approve budgetary amendments. Report for the year ended June 30, 2014.

4. Report: Financial Services Reports

Tax Collection Report Cash & Investment Reports Revenues & Expenditures Report Construction in Progress Summary Report Purchasing Cooperative Fees Report

5. HUMAN RESOURCES REPORTS, CONSIDERATIONS AND PURCHASES:

A. Report: 2014-15 No Child Left Behind Highly Qualified Report

Report on No Child Left Behind, 100% Highly Qualified Staff –Teachers and Title I Paraprofessionals

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6. SUPPORT SERVICES DIVISION REPORTS, CONSIDERATIONS AND

PURCHASES:

A. Action: New Buses for Transportation Department Consideration of New Buses for Transportation Department ADMINISTRATION RECOMMENDATION The Superintendent recommends that the Board of Trustees approve the selection of Longhorn Bus Sales to provide new buses in support of District Operations. By approving the selection of the vendors or consultants included within this agenda item, the Board of Trustees will authorize the Superintendent and Administration to negotiate and execute those contracts and agreements necessary to provide the goods and/or services to the District without the need to return to the Board for any further authorization or approvals.

B. Action: Purchases Exceeding $50,000 in the Aggregate

Consideration of Purchases Exceeding $50,000 in the Aggregate and $25,000 Individually Specifically for Portable Buildings ADMINISTRATION RECOMMENDATION

The Superintendent recommends that the Board of Trustees approve the listing of purchases of goods and/or services that are estimated to aggregate to a value of $50,000 or more for the 2014-15 fiscal year, specifically for Portable Buildings. By approving the selection of the vendors or consultants included within this agenda item, the Board of Trustees will authorize the Superintendent and Administration to negotiate and execute those contracts and agreements necessary to provide the goods and/or services to the District without the need to return to the Board for any further authorization or approvals.

C. Action: Purchases Exceeding $50,000 in the Aggregate Consideration of Purchases Exceeding $50,000 in the Aggregate and $25,000 Individually Specifically for Software ADMINISTRATION RECOMMENDATION

The Superintendent recommends that the Board of Trustees approve the listing of purchases of goods and/or services that are estimated to aggregate to a value of $50,000 or more for the 2014-15 fiscal year, specifically for Software. By approving the selection of the vendors or consultants included within this agenda item, the Board of Trustees will authorize the Superintendent and Administration

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to negotiate and execute those contracts and agreements necessary to provide the goods and/or services to the District without the need to return to the Board for any further authorization or approvals.

7. DISTRICT-WIDE REPORTS, CONSIDERATIONS AND PURCHASES: There are no items for this title this month.

8. FUTURE BOARD BUSINESS:

Consideration of and action on topics for future Board business: a) Posted agenda items requiring Board action b) Posted agenda items for information, with no action required c) Written reports, with no posting or discussion planned d) Appointment of Board committees or representatives

Adjournment This notice is given pursuant to Section 551.001 et.seq.of the Government Code. Dated: December 5, 2014 S/ _______________________________________

Keith W. Lapeze, Board Secretary

Note: Copies of attachments and other documentation may be requested from Peggy Young in the Superintendent’s Office at 281-641-8001. Full documentation of the items considered by the Board may be viewed on the Humble ISD web site on the day following the Board meeting at www.humble.k12.tx.us.

HUMBLE INDEPENDENT SCHOOL DISTRICT SPECIAL MEETING OF THE BOARD OF TRUSTEES

The Humble Board of Trustees held a special meeting on Thursday, November 6, 2014 6:00 p.m. at the Humble ISD Administration Building, Board Room, 20200 Eastway Village, Humble, Texas. Board Members Present: Robert Scarfo Robert Sitton

Angela Conrad Charles Cunningham Heath Rushing Brent Engelage

Board Member Absent: Keith Lapeze

Staff Members Present: Guy Sconzo, Peggy Young Mr. Scarfo called the meeting to order at 6:05 p.m. The Board adjourned to Closed Session at 6:05 p.m. to work on the agenda Item as posted for this meeting:

Superintendent’s Evaluation with the Studer Group The Board reconvened to Open Session at 7:05 p.m. There being no further business, the meeting adjourned at 7:05 p.m. ______________________________ _________________________________ Secretary President Note: Copies of attachments and other documentation may be requested from Peggy Young in the Superintendent’s Office at 281-641-8001. Full documentation of the items considered by the Board may be viewed on the Humble ISD web site on the day following the Board meeting at www.humble.k12.tx.us.

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Approved

HUMBLE INDEPENDENT SCHOOL DISTRICT REGULAR MEETING OF THE BOARD OF TRUSTEES

The Humble Board of Trustees held the regular meeting on November 11, 2014 at 5:00 p.m. in the Board Room, 20200 Eastway Village Drive, Humble, Texas. Board Members Present: Robert Scarfo

Robert Sitton Keith Lapeze Angela Conrad Heath Rushing Charles Cunningham Brent Engelage

Staff Members Present: Guy Sconzo, Peggy Young, Tommy Price, Lynn Lynn, Roger Brown, Leila Sarmacanic, Robin Perez, Carol Atwood, Trey Kraemer, Cathy Airola, Deborah Yocham, Arthur Allen, Shelley Vineyard, Jamie Mount, Jerri Monbaron, Shawn Faciane, Marilyn Farrell, Ida Schultze. Kenny Kendrick, Leigh Ann Montgomery, Yvonne Harris, Linda Cooney, Cheryl Vital, Kashonda Hurst, Lisa Drabbing, Brian Johnson, Gayle Sampley, John Krippel, Marley Morris, Shirley Parker, Robin McAdams, Carla Threadgill, Kakie Palmer, James Paschall, Solomon Cook

The Board met at 5:03 p.m. and adjourned to hear items posted for closed session at 5:04 p.m.

The regular meeting was called back to order at 7:07 by Mr. Scarfo.

COMMENDATIONS AND RECOGNITIONS

Inspiring Moments - presented by: Winna MacLaren, Public Information featuring the Humble ISD school pride and spirit at our games, which includes athletes, cheerleaders, bands and many other groups and organization that defines the term Humble ISD School Spirit.

Stellar Standouts – Stellar Standouts is a new feature at School Board meetings, beginning last month. Stellar Standouts will provide a consolidated spotlight of major achievements from the prior month in the area of academics, sports, fine arts and service-learning. Stellar Standouts occur when students place first in a district contest, advance to or participate in a post-district contest, receive an award from an organization outside of Humble ISD, or complete a major service-learning project.

November Stellar Standout recognized were:

LLE, Service Learning Project - Trick-or-Treat for UNICEF

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Approved

AMS, Abby Andrews - 1st Chair Soprano, UIL Region 19 Choir

AMS, Chris Martin - 1st Chair Tenor, UIL Region 19 Choir

AMS, 7th Grade A-Team - District Football Co-Champs

AMS, 7th Grade A-Team - District Football Co-Champs

KMS, 7th Grade Volleyball B-Team - Undefeated District Champs

RMS, Avary Hartung, 8th grade - 1st place- All-Region Mixed Choir Alto

RMS, Aidan Hartung, 8th grade - 2nd place- All-Region Mixed Choir Tenor

RMS, All-Region Choir: Ashley McMurray, 8th grade, Soprano Abigail Smith, 7th grade, Soprano Sydney Svagerko, 8th grade, Alto Camryn Creech, 7th grade, Soprano Avary Gleason, 7th grade, Soprano Charda Smith, 7th grade, Soprano Addie Wemyss, 7th grade, Alto Maddisen LeCompte, 7th grade, Alto Edie Shanahan, 8th grade, Alto

RMS, 7th Grade Football B-Team - Undefeated District Champions

RMS, 8th Grade Football B-Team - District Champions

RMS, 8th Grade Football C-Team - District Champions

RMS, 7th Grade A-Team Volleyball - Undefeated District Champs

RMS, 7th Grade B-Team Volleyball Humble ISD Super Staffers - The following Super Staffers received a sponsored prize of a $200 gift card to Pappas Restaurant. This month’s prize sponsor is, Education Foundation. The Super Staffers recognized were: Cathy Whitaker, Humble Elementary, Intervention Jessica Mata, Kingwood Middle School, Head Custodian Lenora Zaweski, Eggers Instructional Support Center, Receptionist Award of Commendation Insperity – For outstanding achievement in developing partnerships with Humble ISD that benefit students. Accepting the award from Insperity, Corrin Price, Robert Scarfo and Angela Conrad.

QUESTIONS AND COMMENTS BY PATRONS OR EMPLOYEES OF THE DISTRICT

Former Trustee Dr. Al Moore and Gayle Sampley, Teacher – A Special Tribute to Dr. Jane Nelson

COMMENTS BY INDIVIDUAL BOARD MEMBERS

The Trustees thanked Dr. Moore and Ms. Sampley for their wonderful tribute to the late Dr. Jane Nelson. They also recognized the great Veterans’ Day programs on campuses, stating they were proud of the students/staff for their recognition of this special day. They recognized a job well done by the Public Information Department on the new design of the District web page.

COMMENTS BY THE SUPERINTENDENT

No report.

ACTION ITEMS FROM CLOSED SESSION

FNG (LOCAL) Level Three Parent Complaint Appeal

With respect to the FNG Level Three Parent Complaint Appeal, Ms. Conrad made a motion that the Board of Trustees rescind the trespass warning and review the Board’s facilities use policies. The motion was seconded by Mr. Rushing. The motion passed with the vote six (6) for and one (1) opposed. Mr. Cunningham opposed.

PERSONNEL

A motion was made by Ms. Conrad that the Board of Trustees approve the Administration’s Personnel recommendation as presented. The motion was seconded by Mr. Sitton. The motion passed unanimously.

Please see the next page for Personnel Agenda.

HUMBLE INDEPENDENT SCHOOL DISTRICT PERSONNEL RECOMMENDATIONS

November 11, 2014

RECOMMENDATIONS FOR PROFESSIONAL EMPLOYMENT It is recommended that Irlanda Cassidy be appointed to the position of Special Revenue Accountant effective November 10, 2014. Ms. Cassidy holds a Bachelor of Business Administration degree from University of Houston‐Downtown and previously held the position of Director of Accounting for Huffman ISD.

RETIREMENTS Campus Assignment Eff. Date

Nielsen, John Kingwood Park High School Lead Band Director December 19, 2014 Robinson, Regena Kingwood Middle School Social Studies Teacher December 19, 2014

RESIGNATIONS Campus Assignment Reason Eff. Date

Cape, Katherine Creekwood Middle School Special Ed Teacher Health Reasons October 31, 2014 Gardner, Barbara Greentree Elementary Art Teacher Health Reasons October 27, 2014 Grice, Charles Summer Creek High School Physics Teacher Dissatisfied with Supervisor November 7, 2014 Robinson, Lori Instructional Support Center District 504 Coordinator Moving December 19, 2014 Williams, Christine Ross Sterling Middle School Science Teacher Leaving Profession November 21, 2014

RECOMMENDATIONS FOR PROFESSIONAL EMPLOYMENT Degree Certification Assignment Exp. Eff. Date Previous Emp.

Atascocita High School 008 Maune, Daryl B.S./Oklahoma State University Agricultural Science and Technology 6-12 Ag Teacher 5 years Oct. 14, 2014 Humble ISD-Current Sub

Summer Creek High School 014 Huber, Caitlin B.S./Texas A&M University Life Science 7-12 (ACP) Biology Teacher None Oct. 27, 2014 Private Industry

Woodcreek Middle School 048 Barber, Megan B.B.A./University of North Texas Generalist 4-8 (ACP) 7th Grade History Teacher None Oct. 20, 2014 Private Industry Earles, Travis B.B.A./Texas A&M University-Kingsville PE EC-12 (ACP) PE Teacher/Coach 1 year Nov. 10, 2014 Westbury Christian

PROPOSED TERMINATION OF PROBATIONARY EMPLOYMENT CONTRACT OF EDUARDO VARGAS A motion was made by Ms. Conrad that the Board of Trustees propose the termination of the probationary employment contract of Eduardo Vargas for good cause in accordance with the Texas Education Code Section 21.211(a)(1) and Board Policy DFBA (LEGAL). The motion was seconded by Mr. Lapeze. The motion passed unanimously. STUDENT PLACEMENTS A motion was made by Ms. Conrad that the Board of Trustees approve the student placements in alternative education program as presented by the Superintendent as follows: S.A., effective: 10-21-2014 and S.A.N., effective: 10-17-2014. The motion was seconded by Mr. Lapeze. The motion passed unanimously. MINUTES FROM THE PREVIOUS MEETING

A motion was made by Ms. Conrad to approve the minutes for the regular Board Meeting held on October 14, 2014. The motion was seconded by Mr. Rushing. The motion passed unanimously. Board Associations and Committees

Advertising/Marketing Committee – No report. Audit Committee – The Committee met prior to this evening’s meeting and

reviewed the Comprehensive Annual Financial Report. Board and Superintendent Evaluation Process & Goals Committee – No report. Building and Planning Committee – The Committee met last week and will meet again

on December 15th to discuss future plans. Education Foundation – The Golf Tournament date was changed to

December 11th due to bad weather. Finance Committee – No report. Legislative Committee – The Committee will meet at Atascocita High School

on November 13th, 7 p.m. with the District-Wide Legislative Committee. Program Committee – The Committee has held its first set of meetings with

program staff and plans to have an executive summary out to the full Board soon.

Technology and Data Governance Committee – The Committee met and discussed Financial Models, Pilot Program and Student data collecting information to see where the data lives.

CONSENT AGENDA

After review, a motion was made by Ms. Conrad to approve the following Board items by consent: Governance: A & B; Learning Division: A; Financial Services Division: A, B, C, D, E, & G; Support Services Division: A, B & C; District-Wide: A. The motion was seconded by Mr. Sitton. The motion passed unanimously. 1. GOVERNANCE REPORTS AND CONSIDERATIONS

A. District Goals, Performance Measures and the Superintendent Evaluation Instrument

Consideration of District Goals, Performance Measures and the Superintendent Evaluation Instrument

The Board and the Superintendent Evaluation Committee recommend that the Board of Trustees approve the District Goals, Performance Measures and the Superintendent Evaluation Instrument as developed in collaboration with the Studer Group. Approved by consent.

B. Board Policy DH (LOCAL) Employee Standards of Conduct Consideration of Board Policy DH (LOCAL): Employee Standards of Conduct The Superintendent recommends that the Board of Trustees approve and adopt the recommended revisions to Board Policy DH (LOCAL): Employee Standards of Conduct. Approved by consent.

C. Board Policy DCE (LOCAL) Employment Practices: Other Types of

Contracts There was no discussion regarding Board Policy DCE (LOCAL): Employment Practices: Other Types of Contracts.

2. SUPERINTENDENT’S DIVISION REPORTS, CONSIDERATIONS AND PURCHASES

There were no items for this Division this month.

3. LEARNING DIVISION REPORTS, CONSIDERATIONS AND PURCHASES

A. Purchases Exceeding $50,000 in the Aggregate

Consideration of Purchases Exceeding $50,000 in the Aggregate Specifically For Technology Services Purchases – EST Group, LLC The Superintendent recommends that the Board of Trustees approve the listing of purchases of goods and/or services that are estimated to aggregate to a value of $50,000 or more for the 2014-15 fiscal year specifically for Technology Services Purchases from EST Group, LLC. By approving the selection of vendors or consultants included within this agenda item, the Board of Trustees will authorize the Superintendent and Administration to negotiate and execute those contracts and agreements necessary to provide the goods and/or services to the District without the need to return to the Board for any further authorization or approvals. Approved by consent.

B. Student Support Services Report There was no discussion regarding the report on Services Offered and Data from 2013-2014 by the Department of Student Support Services.

4. FINANCIAL SERVICES DIVISION REPORTS, CONSIDERATIONS AND

PURCHASES

A. Tax Refunds

Consideration of Petitions for Refunds in Excess of $500

The Superintendent recommends that the Board of Trustees approve the petitions for tax refunds. Approved by consent.

B. Waiver of P & I

Consideration of Requests for Waiver of Penalty and Interest on Delinquent Taxes

The Superintendent recommends that the Board of Trustees approve the requests for waiver of penalty and interest on delinquent tax accounts.

Approved by consent.

C. Budgetary Amendments and Resolution for Commitments of Fund Balance

Consideration of Budgetary Amendments and Resolution for Commitments of Fund Balance The Superintendent recommends that the Board of Trustees approve budgetary amendments and the Resolution for Commitments of Fund Balance. Approved by consent.

D. Independent Auditors’ Report Consideration of the Independent Auditors’ Report for the Year Ended June 30, 2014

The Superintendent recommends that the Board of Trustees approve the Independent Auditors’ Report by Whitley Penn included in the Comprehensive Annual Financial Report for the year ended June 30, 2014. Approved by consent.

E. Independent Registered Municipal Advisor Certificate Consideration of the Independent Registered Municipal Advisor Certificate

The Superintendent recommends that the Board of Trustees approve the Independent Registered Municipal Advisor Certificate designating First Southwest Company as the independent registered municipal advisor for the Humble Independent School District. Approved by consent.

F. Purchases Exceeding $25,000 Individually

Consideration of Purchases Exceeding $25,000 Individually, Specifically for the Purchase of a Warehouse Load Truck The Superintendent recommends that the Board of Trustees approve the purchase of a Warehouse load truck to support District Operations. By approving the selection of vendors or consultants included within this agenda item, the Board of Trustees will authorize the Superintendent and Administration to negotiate and execute those contracts and agreements necessary to provide the goods and/or services to the District without the need to return to the Board for any further authorization or approvals. Approved by consent.

G. Financial Services Reports

There was no discussion regarding the following reports. Tax Collection Report Cash & Investment Reports Revenues & Expenditures Report Construction in Progress Summary Report 2015-16 Budget Development Process and Calendar

5. HUMAN RESOURCES REPORTS, CONSIDERATIONS AND PURCHASES There were no items for this Division this month. 6. SUPPORT SERVICES DIVISION REPORTS, CONSIDERATIONS AND

PURCHASES

A. Smart Snack Chicken Slider Sandwiches Consideration of Purchases Exceeding $50,000 in the Aggregate Specifically For Delivered Smart Snack Chicken Sliders provided by Chick-Fil-A The Superintendent recommends that the Board of Trustees approve the listing of purchases of goods and/or services that are estimated to aggregate to a value of $50,000 or more for the 2014-15 fiscal year specifically for Smart Snack Chicken Slider Sandwiches provided by Chick-Fil-A. By approving the selection of the vendors or consultants included within this agenda item, the Board of Trustees will authorize the Superintendent and Administration to negotiate and execute those contracts and agreements necessary to provide the goods and/or services to the District without the need to return to the Board for any further authorization or approvals. Approved by consent.

B. Purchases Exceeding $25,000 Individually

Consideration of purchases exceeding $25,000 Individually Specifically For a Walk-in Freezer and Walk-in Refrigeration Electronic On-Line Monitoring System The Superintendent recommends that the Board of Trustees approve the listing of purchases of goods and/or services that are estimated at $25,000 or more for the 2014-15 fiscal year specifically for Walk-in Freezer and a Walk-in Refrigeration Electronic On-Line Monitoring System. By approving the selection of the vendors or consultants included within this agenda item, the Board of Trustees will authorize the Superintendent and Administration to negotiate and execute those contracts

and agreements necessary to provide the goods and/or services to the District without the need to return to the Board for any further authorization or approvals. Approved by consent.

C. Purchases Exceeding $50,000 in the Aggregate Consideration of purchases exceeding $50,000 in the Aggregate Specifically For Contracts for Various Goods and Services related to the operations of the Maintenance and Grounds Departments The Superintendent recommends that the Board of Trustees approve the listing of purchases of goods and/or services that are estimated to aggregate to a value of $50,000 or more and/or single item purchases estimated at $25,000 or more for the 2014-15 fiscal year specifically for contracts for various goods and services related to operations of the Maintenance and Grounds Departments. By approving the selection of the vendors or consultants included within this agenda item, the Board of Trustees will authorize the Superintendent and Administration to negotiate and execute those contracts and agreements necessary to provide the goods and/or services to the District without the need to return to the Board for any further authorization or approvals. Approved by consent.

7. DISTRICT-WIDE REPORTS, CONSIDERATIONS AND PURCHASES

A. Purchases Exceeding $50,000 in the Aggregate Consideration of Purchases Exceeding $50,000 in the Aggregate, Specifically for Paper Goods and Janitorial Supplies The Superintendent recommends that the Board of Trustees approve the listing of District Wide purchases of goods and/or services that are estimated to aggregate to a value of $50,000 or more for the 2014-15 fiscal year, specifically for paper goods and janitorial supplies. By approving the selection of the vendors or consultants included within this agenda item, the Board of Trustees will authorize the Superintendent and Administration to negotiate and execute those contracts and agreements necessary to provide the goods and/or services to the District without the need to return to the Board for any further authorization or approvals. Approved by consent.

There being no further business, the meeting adjourned at 8:08 p.m.

______________________________ _________________________________ Secretary President Note: Copies of attachments and other documentation may be requested from Peggy Young in the Superintendent’s Office at 281-641-8001. Full documentation of the items considered by the Board may be viewed on the Humble ISD web site on the day following the Board meeting at www.humble.k12.tx.us.

HUMBLE INDEPENDENT SCHOOL DISTRICT SPECIAL MEETING OF THE BOARD OF TRUSTEES

The Humble Board of Trustees held a special meeting on Thursday, November 13, 2014 7:00 p.m. at Atascocita High School, 13300 Will Clayton Parkway, Humble, Texas 77346.

Board Members Present: Robert Scarfo Robert Sitton Angela Conrad Heath Rushing Brent Engelage

Board Member Absent: Keith Lapeze Charles Cunningham

Staff Members Present: Guy Sconzo, Peggy Young, Carol Atwood, Bill McDaniel, Jamie Mount, Marley Morris, Robin McAdams, Michelle Morgan, Gayle Sampley, John O’Brien, Louis Mascolo

Mr. Scarfo called the meeting to order at 7:00 p.m. and welcomed everyone and thanked them for attending the first District Legislative Committee meeting.

The Board Legislative Committee Chair, Mr. Rushing provided the group with a recap and impact of the Texas 83rd Legislative Session. He then introduced State Representative, District 127, Dan Huberty who gave an overview of what to expect in the Texas 84th Legislative Session.

Dr. Sconzo spoke to the District Legislative Committee regarding their working with the Board Legislative Committee on continued advocacy work for Humble ISD students.

The District Legislative Committee will meet again in January 2015.

There being no further business, the meeting adjourned at 8:30 p.m.

______________________________ _________________________________ Secretary President

Note: Copies of attachments and other documentation may be requested from Peggy Young in the Superintendent’s Office at 281-641-8001. Full documentation of the items considered by the Board may be viewed on the Humble ISD web site on the day following the Board meeting at www.humble.k12.tx.us.

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Approved

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Meeting Date: December 9, 2014

Meeting Type Regular Meeting Special Meeting/

Workshop

Agenda Item Type Action Item

Agenda Placement Governance Human Resources Department Superintendent’s Division Support Services Division Learning Division District-Wide Financial Services Division

District Pillars (Check All That Apply): Student Achievement – Prepare Students to be College and Career Ready Service – Provide Quality Service to Internal and External Customers People – Provide a Quality Work Environment So Every Employee can Perform at the

Highest Levels Finance – Create Efficiencies at All Levels of the Organization

Title: Policy CDA LOCAL

Consideration of Policy CDA LOCAL including Investment Strategies, the Corresponding Resolution, the Listing of Qualified Brokers/Dealers, and Sources of Training Superintendent’s Recommendation: The Superintendent recommends that the Board of Trustees approve Policy CDA LOCAL including Investment Strategies, the corresponding Resolution, the Listing of Qualified Brokers/Dealers and Sources of Training. Overview: Texas Government Code Section 2256.005(e) states that “The governing body of an investing entity shall review its investment policy and investment strategies not less than annually. The governing body shall adopt a written instrument by rule, order, ordinance or resolution stating that it has reviewed the investment policy and strategies and that the written instrument so adopted shall record any changes made to either the investment policy or investment strategies.” See Policy CDA LEGAL and LOCAL (Attachments 1 and 2), Investment Strategies (Attachment 3), and the corresponding Resolution (Attachment 4).

During the annual review of the Investment Policy no changes to Policy CDA LOCAL were recommended.

Texas Government Code Section 2256.0008 requires that the Board approve the independent sources of training related to the investment responsibilities, and Section 2256.025 requires that the Board review, revise and adopt a listing of qualified brokers that are authorized to engage in investment transactions with the District at least annually (see Attachment 5). All of the investment options are identifiable on the Financial Industry Regulatory Authority (FINRA) web site.

Fiscal Impact Statement: N/A Cost:

One-Time Multi-Year (Specify):

Board of Trustees Agenda Item

X

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Approved

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Funding Source:

General Fund Bond Funds Fiscal Year: Grant Funds Other Funds Amendment Required? Yes No

Budgetary Codes:

Fund

Func. Object Sub-Obj.

Org. Prog. Activity Source Project

Attachments: Policy CDA LEGAL – Attachment 1 Policy CDA LOCAL – Attachment 2 Investment Strategies – Attachment 3 Resolution Adopting Investment Policy and Strategy – Attachment 4 Listing of Qualified Brokers/Dealers and Sources of Training – Attachment 5 Glossary – Attachment 6 Prepared By: Janice Himpele Approved By: Lynn Lynn Reviewed By: Lynn Lynn Date Submitted: December 2, 2014 11-11-14

Humble ISD Attachment 1 101913 OTHER REVENUES CDAINVESTMENTS (LEGAL)

DATE ISSUED: 10/7/2011 1 of 13UPDATE 91 CDA(LEGAL)-P

All investments made by the District shall comply with the Public Funds Investment Act (Texas Government Code Chapter 2256, Subchapter A) and all federal, state, and local statutes, rules or regulations. Gov’t Code 2256.026

Investments shall be made in accordance with written policies approved by the Board. The investment policies must primarily emphasize safety of principal and liquidity and must address investment diversification, yield, and maturity and the quality and capability of investment management. The policies must include:

1. A list of the types of authorized investments in which the District’s funds may be invested;

2. The maximum allowable stated maturity of any individual investment owned by the District;

3. For pooled fund groups, the maximum dollar-weighted average maturity allowed based on the stated maturity date of the portfolio;

4. Methods to monitor the market price of investments acquired with public funds;

5. A requirement for settlement of all transactions, except investment pool funds and mutual funds, on a delivery versus payment basis; and

6. Procedures to monitor rating changes in investments acquired with public funds and the liquidation of such investments consistent with the provisions of Government Code 2256.021 [see LOSS OF REQUIRED RATING, below].

Gov’t Code 2256.005(b)

The Board shall review its investment policy and investment strategies not less than annually. The Board shall adopt a written instrument stating that it has reviewed the investment policy and investment strategies and that the written instrument so adopted shall record any changes made to either the investment policy or investment strategies. Gov’t Code 2256.005(e)

The District shall perform a compliance audit of management controls on investments and adherence to the District’s established investment policies. The compliance audit shall be performed in conjunction with the annual financial audit. Gov’t Code 2256.005(m)

As part of the investment policy, the Board shall adopt a separate written investment strategy for each of the funds or group of funds under the Board’s control. Each investment strategy must describe

WRITTEN POLICIES

ANNUAL REVIEW

ANNUAL AUDIT

INVESTMENT STRATEGIES



the investment objectives for the particular fund under the following priorities in order of importance:

1. Understanding of the suitability of the investment to the financial requirements of the District;

2. Preservation and safety of principal;

3. Liquidity;

4. Marketability of the investment if the investment needs to be liquidated before maturity;

5. Diversification of the investment portfolio; and

6. Yield.

Gov’t Code 2256.005(d)

The District shall designate one or more officers or employees as investment officer(s) to be responsible for the investment of its funds. If the District has contracted with another investing entity to invest its funds, the investment officer of the other investing entity is considered to be the investment officer of the contracting Board’s District. In the administration of the duties of an investment officer, the person designated as investment officer shall exercise the judgment and care, under prevailing circumstances that a prudent person would exercise in the management of the person’s own affairs, but the Board retains the ultimate responsibility as fiduciaries of the assets of the District. Unless authorized by law, a person may not deposit, withdraw, transfer, or manage in any other manner the funds of the investing entity. Authority granted to a person to invest the District’s funds is effective until rescinded by the District or until termination of the person’s employment by the District, or for an investment management firm, until the expiration of the contract with the District. Gov’t Code 2256.005(f)

A District or investment officer may use the District’s employees or the services of a contractor of the District to aid the investment officer in the execution of the officer’s duties under Government Code, Chapter 2256. Gov’t Code 2256.003(c)

Within 12 months after taking office or assuming duties, the treasurer or chief financial officer and the investment officer of the District shall attend at least one training session from an independent source approved either by the Board or by a designated investment committee advising the investment officer. This initial training must contain at least ten hours of instruction relating to their respective responsibilities under the Public Funds Investment Act. Gov’t Code 2256.008(a)

INVESTMENT OFFICER

INVESTMENT TRAINING

INITIAL



The treasurer or chief financial officer and the investment officer must also attend an investment training session not less than once in a two-year period that begins on the first day of the District’s fiscal year and consists of the two consecutive fiscal years after that date, and receive not less than ten hours of instruction relating to investment responsibilities under the Public Funds Investment Act from an independent source approved by the Board or a designated investment committee advising the investment officer. If the District has contracted with another investing entity to invest the District’s funds, this training requirement may be satisfied by having a Board officer attend four hours of appropriate instruction in a two-year period that begins on the first day of the District’s fiscal year and consists of the two consecutive fiscal years after that date. Gov’t Code 2256.008(a)–(b)

Investment training shall include education in investment controls, security risks, strategy risks, market risks, diversification of investment portfolio, and compliance with the Government Code, Chapter 2256. Gov’t Code 2256.008(c)

Investments shall be made with judgment and care, under prevailing circumstances that a person of prudence, discretion, and intelligence would exercise in the management of his or her own affairs, not for speculation, but for investment, considering the probable safety of capital and the probable income to be derived. Investments shall be governed by the following objectives in order of priority:

1. Preservation and safety of principal;

2. Liquidity; and

3. Yield.

In determining whether an investment officer has exercised prudence with respect to an investment decision, the following shall be taken into consideration:

1. The investment of all funds, rather than the prudence of a single investment, over which the officer had responsibility.

2. Whether the investment decision was consistent with the Board’s written investment policy.

Gov’t Code 2256.006

A District investment officer who has a personal business relationship with a business organization offering to engage in an investment transaction with the District shall file a statement disclosing that personal business interest. An investment officer

ONGOING

STANDARD OF CARE

PERSONAL INTEREST



who is related within the second degree by affinity or consanguinity, as determined by Government Code Chapter 573, to an individual seeking to sell an investment to the investment officer’s District shall file a statement disclosing that relationship. A required statement must be filed with the Board and with the Texas Ethics Commission. For purposes of this policy, an investment officer has a personal business relationship with a business organization if:

1. The investment officer owns ten percent or more of the voting stock or shares of the business organization or owns $5,000 or more of the fair market value of the business organization;

2. Funds received by the investment officer from the business organization exceed ten percent of the investment officer’s gross income for the previous year; or

3. The investment officer has acquired from the business organization during the previous year investments with a book value of $2,500 or more for the personal account of the investment officer.

Gov’t Code 2256.005(i)

Not less than quarterly, the investment officer shall prepare and submit to the Board a written report of investment transactions for all funds covered by the Public Funds Investment Act. This report shall be presented to the Board and the Superintendent not less than quarterly, within a reasonable time after the end of the period. The report must:

1. Contain a detailed description of the investment position of the District on the date of the report.

2. Be prepared jointly and signed by all District investment officers.

3. Contain a summary statement for each pooled fund group (i.e., each internally created fund in which one or more accounts are combined for investing purposes) that states the:

a. Beginning market value for the reporting period;

b. Ending market value for the period; and

c. Fully accrued interest for the reporting period.

4. State the book value and market value of each separately invested asset at the end of the reporting period by the type of asset and fund type invested.

QUARTERLY REPORTS



5. State the maturity date of each separately invested asset that has a maturity date.

6. State the account or fund or pooled group fund in the District for which each individual investment was acquired.

7. State the compliance of the investment portfolio of the District as it relates to the District’s investment strategy expressed in the District’s investment policy and relevant provisions of Government Code, Chapter 2256.

If the District invests in other than money market mutual funds, investment pools or accounts offered by its depository bank in the form of certificates of deposit, or money market accounts or similar accounts, the reports shall be formally reviewed at least annually by an independent auditor, and the result of the review shall be reported to the Board by that auditor.


The Board or a designated investment committee, shall, at least annually, review, revise, and adopt a list of qualified brokers that are authorized to engage in investment transactions with the District. Gov’t Code 2256.025

The Board may purchase, sell, and invest its funds and funds under its control in investments described below, in compliance with its adopted investment policies and according to the standard of care set out in this policy. Investments may be made directly by the Board or by a nonprofit corporation acting on behalf of the Board or an investment pool acting on behalf of two or more local governments, state agencies, or a combination of the two. Gov’t Code 2256.003(a)

In the exercise of these powers, the Board may contract with an investment management firm registered under the Investment Advisers Act of 1940 (15 U.S.C. Section 80b-1 et seq.) or with the State Securities Board to provide for the investment and management of its public funds or other funds under its control. A contract made for such purpose may not be for a term longer than two years. A renewal or extension of the contract must be made by the Board by order, ordinance, or resolution. Gov’t Code 2256.003(b)

The following investments are authorized:

1. Obligations, including letters of credit, of the United States or its agencies and instrumentalities; direct obligations of the state of Texas or its agencies and instrumentalities; collateralized mortgage obligations directly issued by a

SELECTION OF BROKER

AUTHORIZED INVESTMENTS



federal agency or instrumentality of the United States, the underlying security for which is guaranteed by an agency or instrumentality of the United States; other obligations, the principal and interest of which are unconditionally guaranteed or insured by, or backed by the full faith and credit of, the state of Texas, the United States, or their respective agencies and instrumentalities, including obligations that are fully guaranteed or insured by the Federal Deposit Insurance Corporation (FDIC) or by the explicit full faith and credit of the United States; obligations of states, agencies, counties, cities, and other political subdivisions of any state rated as to investment quality by a nationally recognized investment rating firm not less than A or its equivalent; and bonds issued, assumed, or guaranteed by the state of Israel. Gov’t Code 2256.009(a)

The following investments are not authorized:

a. Obligations whose payment represents the coupon payments on the outstanding principal balance of the underlying mortgage-backed security collateral and pays no principal.

b. Obligations whose payment represents the principal stream of cash flow from the underlying mortgage-backed security collateral and bears no interest.

c. Collateralized mortgage obligations that have a stated final maturity date of greater than ten years.

d. Collateralized mortgage obligations the interest rate of which is determined by an index that adjusts opposite to the changes in a market index.


2. Certificates of deposit or share certificates issued by a depository institution that has its main office or a branch office in Texas that is guaranteed or insured by the FDIC or its successor or the National Credit Union Share Insurance Fund or its successor and is secured by obligations described in item 1 above, including mortgage-backed securities directly issued by a federal agency or instrumentality that have a market value of not less than the principal amount of the certificates (but excluding those mortgage-backed securities described in Section 2256.009[b]) or secured in any other manner and amount provided by law for the deposits of the investing entity. Gov’t Code 2256.010(a)



In addition to the authority to invest funds in certificates of deposit under the previous section, an investment in certificates of deposit made in accordance with the following conditions is an authorized investment under Government Code 2256.010:

a. The funds are invested by the District through a broker that has its main office or a branch office in this state and is selected from a list adopted by the District as required by Government Code 2256.025, or a depository institution that has its main office or a branch office in this state and that is selected by the District;

b. The broker or depository institution selected by the District arranges for the deposit of the funds in certificates of deposit in one or more federally insured depository institutions, wherever located, for the account of the District;

c. The full amount of the principal and accrued interest of each of the certificates of deposit is insured by the United States or an instrumentality of the United States; and

d. The District appoints the depository institution selected by the District, an entity described by Government Code 2257.041(d), or a clearing broker-dealer registered with the Securities and Exchange Commission and operating pursuant to Securities and Exchange Commission Rule 15c3-3 (17 C.F.R. Section 240.15c3-3) as custodian for the District with respect to the certificates of deposit issued for the account of the District entity.


The investment policies may provide that bids for certificates of deposit be solicited orally, in writing, electronically, or in any combination of those methods. Gov’t Code 2256.005(c)

3. Fully collateralized repurchase agreements that have a defined termination date; are secured by a combination of cash and obligations of the United States or its agencies and instrumentalities; require the securities being purchased by the District or cash held by the District to be pledged to the District, held in the District’s name, and deposited with the District or a third party selected and approved by the District, and are placed through a primary government securities dealer, as defined by the Federal Reserve or a financial institution doing business in Texas. The term of any reverse



security repurchase agreement may not exceed 90 days after the date the reverse security repurchase agreement is delivered. Money received by the District under the terms of a reverse security repurchase agreement shall be used to acquire additional authorized investments, but the term of the authorized investments acquired must mature not later than the expiration date stated in the reverse security repurchase agreement. Gov’t Code 2256.011

4. A securities lending program if:

a. The value of securities loaned is not less than 100 percent collateralized, including accrued income, and the loan allows for termination at any time;

b. The loan is secured by:

(1) Pledged securities described by Government Code 2256.009;

(2) Pledged irrevocable letters of credit issued by a bank that is organized and existing under the laws of the United States or any other state and continuously rated by at least one nationally recognized investment rating firm at not less than A or its equivalent; or

(3) Cash invested in accordance with Government Code 2256.009, 2256.013, 2256.014, or 2256.016;

c. The terms of the loan require that the securities being held as collateral be pledged to the investing entity, held in the investing entity’s name, and deposited at the time the investment is made with the entity or with a third party selected by or approved by the investing entity; and

d. The loan is placed through a primary government securities dealer or a financial institution doing business in this state.

An agreement to lend securities under a securities lending program must have a term of one year or less.


5. Banker’s acceptance, with a stated maturity of 270 days or fewer from the date of issuance that will be liquidated in full at maturity, which is eligible for collateral for borrowing from a Federal Reserve Bank, and is accepted by a bank meeting



the requirements of Government Code 2256.012(4). Gov’t Code 2256.012

6. Commercial paper that has a stated maturity of 270 days or fewer from the date of issuance and is rated not less than A-1 or P-1 or an equivalent rating by at least two nationally recognized credit rating agencies or by one nationally recognized credit rating agency provided the commercial paper is fully secured by an irrevocable letter of credit issued by a bank organized and existing under United States law or the law of any state. Gov’t Code 2256.013

7. No-load money market mutual funds that:

a. Are registered with and regulated by the Securities and Exchange Commission;

b. Provide the District with a prospectus and other information required by the Securities and Exchange Act of 1934 (15 U.S.C. 78a et seq.) or the Investment Company Act of 1940 (15 U.S.C. 80a-1 et seq.);

c. Have a dollar-weighted average stated maturity of 90 days or fewer; and

d. Include in their investment objectives the maintenance of a stable net asset value of $1 for each share.

However, investments in no-load money market mutual funds shall be limited to the percentages authorized by Government Code 2256.014(c).

8. No-load mutual funds that:

a. Are registered with the Securities and Exchange Commission;

b. Have an average weighted maturity of less than two years;

c. Are invested exclusively in obligations approved by Government Code Chapter 2256, Subchapter A, regarding authorized investments (Public Funds Investment Act);

d. Are continuously rated by at least one nationally recognized investment rating firm of not less than AAA or its equivalent; and

e. Conform to the requirements in Government Code 2256.016(b) and (c) relating to the eligibility of



investment pools to receive and invest funds of investing entities.

Investments in no-load mutual funds shall be limited to the percentages authorized by Government Code 2256.014(c). In addition, the District may not invest any portion of bond proceeds, reserves, and funds held for debt service, in no-load mutual funds described in this item.


9. A guaranteed investment contract, as an investment vehicle for bond proceeds, if the guaranteed investment contract:

a. Has a defined termination date.

b. Is secured by obligations described by Government Code 2256.009(a)(1), excluding those obligations described by Section 2256.009(b), in an amount at least equal to the amount of bond proceeds invested under the contract.

c. Is pledged to the District and deposited with the District or with a third party selected and approved by the District.

Bond proceeds, other than bond proceeds representing reserves and funds maintained for debt service purposes, may not be invested in a guaranteed investment contract with a term longer than five years from the date of issuance of the bonds.

To be eligible as an authorized investment:

a. The Board must specifically authorize guaranteed investment contracts as eligible investments in the order, ordinance, or resolution authorizing the issuance of bonds.

b. The District must receive bids from at least three separate providers with no material financial interest in the bonds from which proceeds were received.

c. The District must purchase the highest yielding guaranteed investment contract for which a qualifying bid is received.

d. The price of the guaranteed investment contract must take into account the reasonably expected drawdown schedule for the bond proceeds to be invested.



e. The provider must certify the administrative costs reasonably expected to be paid to third parties in connection with the guaranteed investment contract.


10. A public funds investment pool meeting the requirements of Government Code 2256.016 and 2256.019, if the Board authorizes the investment in the particular pool by resolution. Gov’t Code 2256.016, .019

11. “Corporate bond” means a senior secured debt obligation issued by a domestic business entity and rated not lower than “AA-” or the equivalent by a nationally recognized investment rating firm. The term does not include a debt obligation that on conversion would result in the holder becoming a stockholder or shareholder in the entity, or any affiliate or subsidiary of the entity, that issued the debt obligation, or is an unsecured debt obligation. Gov’t Code 2256.0204(a)

A district that qualifies as an issuer as defined by Government Code 1371.001 [see CCF] may purchase, sell, and invest its funds and funds under its control in corporate bonds that, at the time of purchase, are rated by a nationally recognized investment rating firm “AA-” or the equivalent and have a stated final maturity that is not later than the third anniversary of the date the corporate bonds were purchased. Gov’t Code 2256.0204(b)–(c)

The District is not authorized to:

a. Invest in the aggregate more than 15 percent of its monthly average fund balance, excluding bond proceeds, reserves, and other funds held for the payment of debt service, in corporate bonds; or

b. Invest more than 25 percent of the funds invested in corporate bonds in any one domestic business entity, including subsidiaries and affiliates of the entity.

Gov’t Code 2256.0204(d)

The District may purchase, sell, and invest its funds and funds under its control in corporate bonds if the Board:

a. Amends its investment policy to authorize corporate bonds as an eligible investment;

b. Adopts procedures to provide for monitoring rating changes in corporate bonds acquired with public funds, and liquidating the investment in corporate bonds; and



c. Identifies the funds eligible to be invested in corporate bonds.

Gov’t Code 2256.0204(e)

The District investment officer, acting on behalf of the District, shall sell corporate bonds in which the District has invested its funds not later than the seventh day after the date a nationally recognized investment rating firm:

a. Issues a release that places the corporate bonds or the domestic business entity that issued the corporate bonds on negative credit watch or the equivalent, if the corporate bonds are rated “AA-” or the equivalent at the time the release is issued; or

b. Changes the rating on the corporate bonds to a rating lower than “AA-” or the equivalent.

Gov’t Code 2256.0204(f)

Corporate bonds are not an eligible investment for a public funds investment pool. Gov’t Code 2256.0204(g)

The District is not required to liquidate investments that were authorized investments at the time of purchase. Gov’t Code 2256.017

An investment that requires a minimum rating does not qualify as an authorized investment during the period the investment does not have the minimum rating. The District shall take all prudent measures that are consistent with its investment policy to liquidate an investment that does not have the minimum rating. Gov’t Code 2256.021

A written copy of the investment policy shall be presented to any person offering to engage in an investment transaction with the District or to an investment management firm under contract with the District to invest or manage the District’s investment portfolio. For purposes of this section, a business organization includes investment pools and an investment management firm under contract with the District to invest or manage the District’s investment portfolio. The qualified representative of the business organization offering to engage in an investment transaction with the District shall execute a written instrument in a form acceptable to the District and the business organization substantially to the effect that the business organization has:

1. Received and thoroughly reviewed the District investment policy; and

CHANGE IN LAW

LOSS OF REQUIRED RATING

SELLERS OF INVESTMENTS



2. Acknowledged that the business organization has implemented reasonable procedures and controls in an effort to preclude investment transactions conducted between the District and the organization that are not authorized by the District’s policy, except to the extent that this authorization is dependent on an analysis of the makeup of the District’s entire portfolio or requires an interpretation of subjective investment standards.

The investment officer may not acquire or otherwise obtain any authorized investment described in the District’s investment policy from a person who has not delivered to the District the instrument described above.

Gov’t Code 2256.005(k)–(l)

A gift, devise, or bequest made to provide college scholarships for District graduates may be invested by the Board as provided in Property Code 117.004, unless otherwise specifically provided by the terms of the gift, devise, or bequest. Education Code 45.107

Investments donated to the District for a particular purpose or under terms of use specified by the donor are not subject to the requirements of Government Code Chapter 2256, Subchapter A. Gov’t Code 2256.004(b)

The District may use electronic means to transfer or invest all funds collected or controlled by the District. Gov’t Code 2256.051

DONATIONS

ELECTRONIC FUNDS TRANSFER

Humble ISD Attachment 2 101913 OTHER REVENUES CDAINVESTMENTS (LOCAL)

DATE ISSUED: 12/21/2012 1 of 7LDU 2012.11 CDA(LOCAL)-X

It is the policy of the District that after allowing for anticipated cash flow requirements of the District and giving due consideration to the safety and risk of investment, all available funds shall be invested in conformity with this investment policy and governing statutes, seeking to safeguard assets, to maintain liquidity, and to optimize interest earnings.

This investment policy shall apply to all financial assets of the District. The financial assets consist of the following funds:

1. Operating Funds;

2. Trust and Agency Funds;

3. Internal Service Funds;

4. Debt Service Funds; and

5. Capital Projects Funds.

The purpose of this investment policy is to comply with the Public Funds Investment Act (PFIA) Chapter 2256 of the Texas Government Code, which requires that the District annually adopt a written investment policy regarding the investment of its funds and funds under its control. This policy addresses the methods, procedures, and practices that must be exercised to ensure effective and judicious fiscal management of the District’s funds.

Investments of the following fund categories shall be consistent with this policy and in accordance with the strategy defined below.

The overall objective of the investment and cash management policy is to ensure that District financial assets are properly safeguarded, provide sufficient liquidity, and produce a reasonable rate of return while enabling the District to react to changes in economic conditions.

The longer the maturity of investments, the greater their price volatility. Therefore, the District concentrates its investment portfolio in short and intermediate term securities to limit market risk caused by changes in interest rates. The District attempts to match its investments with anticipated cash flow requirements. Cash flow requirements generally divide the portfolio into four major parts: liquidity needs, short-term needs, intermediate needs, and longer-term investments.

Investment strategies for operating funds, trust and agency funds, and internal service funds (including any commingled pools containing operating funds) shall have as their primary objectives safety, assurance that anticipated liabilities are matched, and adequate investment liquidity is provided. This may be

POLICY

PURPOSE

STRATEGY / FUNDS

OPERATING, TRUST AND AGENCY, AND INTERNAL SERVICE FUNDS



accomplished by purchasing high quality, short- to medium-term maturity securities that will complement each other in a laddered maturity structure permitting some extension for yield enhancement. The maximum maturity of an individual security shall not exceed two years. The maximum dollar weighted average maturity shall be 270 days or less.

Investment strategies for debt service funds shall have as their primary objective the assurance of available funds adequate to fund the debt service obligations on a timely basis. Each successive debt service payment shall be fully funded before extending maturities beyond that date. With the exception of state and local government securities (SLGS), the maximum maturity of an individual security shall not exceed two years.

Investment strategies for capital projects funds shall have as their objective assurance that anticipated cash flows are matched for adequate liquidity to meet capital project obligations. These objectives shall be accomplished by purchasing high-credit quality, short and intermediate securities with maturities closely matching the projected cash flow schedules. The stated final maturity dates of securities held may not exceed the estimated project completion date.

Effective cash management shall be recognized as essential to good fiscal management and investment interest shall serve as a source of revenue to the District. The District’s investment portfolio shall be designed and managed in a prudent manner to obtain reasonable revenue within the limitations of the District’s cash flow needs, to be responsive to public trust, and to be in compliance with legal requirements and limitations.

Investments shall be made with the following objectives in priority order:

1. Safety and preservation of principal.

2. Maintenance of sufficient liquidity to meet operating needs.

3. Diversification.

4. Optimization of earnings in the portfolio.

All investments shall be in accordance with the PFIA (Texas Government Code 2256), the Public Funds Collateral Act (Texas Government Code 2257), and federal and state laws. This investment policy shall apply to all assets of the District.

Investments shall be made with judgment and care, under circumstances then prevailing, that a person of prudence,

DEBT SERVICE

CAPITAL PROJECTS

INVESTMENT MANAGEMENT



discretion, and intelligence would exercise in the management of his or her own affairs, not for speculation but for investment, considering the probable safety of principal, as well as the probable income to be derived.

The Board designates the chief financial officer and the director of treasury and property tax administration to serve as the investment officers of the District. The investment officers shall recommend appropriate legally authorized and adequately secured investments and shall invest District funds as directed by the Board and in accordance with the District’s adopted investment policy and generally accepted accounting procedures that meet the daily cash flow needs of the District.

The investment officers shall, within 12 months of assuming duties, attend training from a Board authorized source. The required ten hours of additional training shall be obtained each two-year period thereafter.

The investment officers shall observe financial market indicators, study financial trends, and utilize available educational tools in order to maintain appropriate investment managerial expertise.

Investment officers and employees of the District involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program or that could impair their ability to make impartial investment decisions. All investment officers shall complete a disclosure related to potential conflicts of interest annually or as conditions change. An investment officer must file a disclosure statement with the Texas Ethics Commission and the District if:

1. The officer has a personal business relationship with a business organization offering to engage in an investment transaction with the District.

2. The officer is related within the second degree by affinity or consanguinity, as determined by Chapter 537 of the Texas Government Code, to an individual seeking to transact investment business with the District.

The investment officers shall be bonded or shall be covered under a fidelity insurance policy.

From those investments authorized by law and described further in the PFIA, the Board shall prohibit investing in reverse security repurchase agreements and mutual funds other than money market mutual funds. The Board shall permit investment of District funds in only the following investment types, consistent with the

INVESTMENT AUTHORITY

TRAINING

ETHICS AND DISCLOSURE OF CONFLICTS OF INTEREST

BONDING

AUTHORIZED INVESTMENTS



strategies and maturities defined in this policy and in compliance with the maturity and diversification levels outlined as follows:

1. Obligations of, or guaranteed by, the U.S. Government, its agencies and instrumentalities, excluding mortgage-backed securities (MBS) and collateralized mortgage obligations not to exceed two years to stated maturity. For capital project funds, the stated final maturity dates of securities held may not exceed the expenditure plan or estimated project completion date. (2256.009)

2. Fully insured or collateralized certificates of deposit from the District’s depository or a bank doing business in Texas under the terms of a written depository/collateral agreement with that bank, not to exceed one year to stated maturity. (2256.010)

3. Fully collateralized repurchase agreements as defined by the PFIA, with primary dealers, not to exceed one day in maturity, with a 102 percent collateral margin and under the terms of an executed master repurchase agreement. (2256.011) Flex repurchase agreements may be used for capital project funds but may not extend past the projected expenditure plan of the proceeds.

4. Commercial paper rated no less than A1/P1 or its equivalent by two nationally recognized rating agencies, not to exceed three months to stated maturity. (2256.013)

5. AAA rated, SEC registered, money market mutual funds as defined by the PFIA. (2256.014)

6. AAA rated, constant dollar, Texas public funds investment pools as defined by the PFIA. (2256.016-2256.019)

The investment officer(s) or investment advisor shall monitor, on no less than a weekly basis, the credit rating on all authorized investments in the portfolio based upon independent information from a nationally recognized rating agency. If any security falls below the minimum rating required by this policy, the investment officer shall notify the Board of the loss of rating, conditions affecting the rating, and possible loss of principal with liquidation options available within two weeks after the loss of the required rating.

Any investment advisor to the District or any vendor with whom the District makes investment transactions, including brokers, pools, funds, and banks, must review the District’s investment policy and submit a written statement stating:

MONITORING CREDIT RATINGS AND MARKET PRICES

AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS



1. An authorized representative of the firm has received and reviewed the District’s investment policy, and

2. The representative certifies that the firm has implemented reasonable procedures and controls in an effort to preclude investment transactions conducted between the District and the organization that are not authorized by the District’s investment policy, except to the extent that this authorization is dependent on an analysis of the makeup of the District’s entire portfolio or requires an interpretation of subjective investment standards.

The investment officers shall review credentials and maintain information on each counter-party transacting business with the District. Requirements shall include registration with the Texas Securities Commission and registration with the Financial Industry Regulatory Authority (FINRA).

A list of brokers/dealers/institutions authorized to do business with the District shall be prepared by the investment officers and reviewed and adopted by the Board or a committee of the Board on no less than an annual basis.

All investment transactions, including certificates of deposit, shall be purchased or sold after a minimum of three offers/bids are taken to verify that the District is receiving fair market value/price for the investment. In order to get the best return on its investments, the District may solicit bids in writing, by telephone, or electronically. Competitive bids need not be solicited from investment pools. The investment officers shall analyze the pool rates’ relative value to other securities.

All book-entry transactions shall be settled on a delivery versus payment (DVP) basis to a District-approved depository to ensure District control of all its funds and assets. No securities shall be held by the transaction’s counter-party.

All assets, collateral, and investments of the District shall be held by independent third parties with a current District custodial agreement. The District shall receive and retain original safekeeping receipts providing proof of the District’s ownership.

Collateralization shall be required on all District time and demand deposits and repurchase agreements in order to anticipate market changes and provide sufficient security for District funds.

For time and demand deposits, the collateralization level shall be 102 percent of market value of principal and accrued interest. Mortgage-backed collateral for time and demand deposit shall be required at a 110 percent margin.

SOLICITING BIDS / COMPETITIVE BIDDING

DELIVERY VERSUS PAYMENT

SAFEKEEPING AND CUSTODY

COLLATERALIZATION



For repurchase agreements, the collateralization level shall be 102 percent of market value of principal and accrued interest.

Collateral on time and demand deposits shall be held by an independent third party with which the District has a current custodial agreement executed under the terms of the Financial Institution Reform, Recovery, and Enforcement Act (FIRREA) and adopted by the bank board or bank loan committee. An original safekeeping receipt shall be supplied to the District and retained.

The bank or counter-party shall be responsible for monitoring and maintaining the margins at all times.

The right of collateral substitution shall be granted with prior District approval.

To reduce exposure to changes in interest rates that could adversely affect the value of investments, the District shall use final and weighted-average-maturity limits and diversification.

The District shall monitor interest rate risk using weighted average maturity and specific identification.

A system of internal controls shall be established and documented in writing and shall include specific procedures designating who has authority to purchase securities and execute investment transactions for the District. The controls shall be designed to protect against losses of public funds arising from fraud, employee error, misrepresentation by third parties, unanticipated changes in financial markets, or imprudent actions by employees and officers of the District. Controls deemed most important shall include:

1. Separation of transaction authority from accounting and recordkeeping and electronic transfer of funds.

2. Avoidance of collusion.

3. Custodial safekeeping.

4. Clear delegation of authority.

5. Written confirmation of all transactions.

6. Documentation of dealer questionnaires, quotations and bids, evaluations, transactions, and rationale.

In conjunction with the annual financial audit, the District’s auditors shall perform a compliance audit of management controls on investments and adherence to this policy, as well as a review of the monthly reports sent to the Board.

INTEREST RATE RISK

INTERNAL CONTROLS

REPORTING


DATE ISSUED: 12/21/2012 ADOPTED: 7 of 7LDU 2012.11 CDA(LOCAL)-X

An investment report shall be prepared monthly by the investment officers and/or investment officer and a quarterly report prepared in accordance with the PFIA for the Board. The quarterly reports shall be signed and submitted in a timely manner to the Board.

Market prices shall be obtained from an independent source.

At a minimum, the report shall contain the following:

1. The detail of each investment and depository position held including the book and market value of each security held and the stated maturity of each.

2. The beginning and ending market and book value of the portfolio for the period reported.

3. Fully accrued interest and earnings for the period.

4. The weighted average maturity for the portfolio.

5. The period yield of the benchmark(s) and the portfolio.

Investment Policy - Attachment 3HUMBLE INDEPENDENT SCHOOL DISTRICT

INVESTMENT STRATEGIES2014-15

Fund Type General Special Revenue Debt Service Capital Projects Internal Service *** Trust & Agency Payments to vendors twice Payments to vendors twice Semi-annual debt payments Payments to vendors twice Monthly payments to TRS-Active Payments to vendors twice weekly weekly weekly Debt payments in Aug. & weekly Care; quarterly workers' comp. Scholarships payments as requested

Cash Flow Requirements Semi-monthly payroll Semi-monthly payroll Feb. for all but Series 2003; Requiring liquidity buffer premium payments and annual

Requiring liquidity buffer Requiring liquidity buffer Debt payments for Series unemployment comp. premium

2003 in Dec. & June payments to TASB Risk Mgmt.;

Annual TIRZ payment weekly run-off W/C claims-TASB Requiring liquidity buffer Requiring liquidity buffer

Any allowable by policy Idle cash combined with Any allowable by policy Any allowable by policy Any allowable by policy Any allowable by policy

Suitable Investments General Fund

Two (2) years or stated Two (2) years or stated Two (2) years or stated Not to exceed capital project Two (2) years or stated Two (2) years or stated

Maximum Maturity * maturity maturity maturity (except for SLGS) expenditure plan or estimated maturity maturitycompletion date.

Period average of Period average of Period average of Period average of Period average of Period average ofBenchmark ** six month Treasury Bill six month Treasury Bill six month Treasury Bill one year Treasury Bill six month Treasury Bill six month Treasury Bill

Primary objective Primary objective Primary objective Primary objective Primary objective Primary objective

Preservation and met through high credit met through high credit met through high credit met through high credit met through high credit met through high credit Safety of Principal quality & cash flow analysis quality & cash flow analysis quality & cash flow analysis quality & cash flow analysis quality & cash flow analysis quality & cash flow analysis

Twice weekly and semi- Twice weekly and semi- Semi-annual and annual Twice weekly Weekly, monthly and quarterly Twice weeklyLiquidity monthly monthly

Yes Yes Yes Risk of principal on longer Yes Yes

Marketability Before Marketability achieved with Marketability achieved with Marketability achieved with securities lessened with cash Marketability achieved with Marketability achieved with

Maturity high credit quaility and high credit quaility and high credit quaility and flow analysis and clear matches high credit quaility and high credit quaility and matches to liabilities matches to liabilities matches to liabilities to known liabilities matches to liabilities matches to liabilities

Diversification Diversified through pools, through varying maturity dates, and through varied investment instruments.

Measured to benchmark for Measured to benchmark for Subject to possible yield Subject to possible yield Measured to benchmark for Measured to benchmark for

Yield risk & performance measure risk & performance measure restrictions; avoidance of restrictions; avoidance of risk & performance measure risk & performance measurenegative arbitrage critical negative arbitrage critical

All payments to employees, Many grant revenues are Debt Service maintains a Bond proceeds, other than Internal service fund payments All payments are made through the District's

Other Comments vendors, and for received monthly on a separate investment account bond proceeds representing to TRS and TASB are by electronic Accounts Payable Department.

scholarships are issued reimbursement basis (after with daily interest allocation. reserves and funds maintained transfer of funds. Other payments

by appropriate fund. expenditures are All debt service payments for debt service purposes, are made through the District's

reported). Food service are by electronic transfer may not be invested in a Accounts Payable Department.

maintains a separate of funds. guaranteed investment

investment account with contract with a term of longer

daily interest allocation. than five years from the date

of issuance of the bonds.

Commercial paper must have

a stated maturity of 270 days or less from date of issuance.

LAST REVISED: Dec. 2013

* The District's Investment Policy sets the maximum maturity for any investment at two (2) years with the exception of bond funds tailored to the expenditure plan.** The District's Investment Policy sets the maximum weighted average maturity at 270 days. The Policy establishes benchmarks as the 6-month and 1-year T-Bill.

***Note: The District is no longer fully self-funded for employee benefits.

Investment Strategies 12-9-14.xls 12/3/201410:51 AM

Attachment 4

RESOLUTION ADOPTING INVESTMENT POLICY AND STRATEGIES WHEREAS, the Public Funds Investment Act (Texas Government Code, Chapter 2256) governs local government investments; and WHEREAS, the Public Fund Investment Act (Section 2256.005a) requires the District to adopt an investment policy and investment strategies by rule, order, ordinance or resolution governing the investment of funds under its control; and WHEREAS, the Public Fund Investment Act (Section 2256.005e), requires the governing body to review and adopt that investment policy and investment strategies by rule, order, ordinance or resolution not less than annually, recording any changes made thereto; and WHEREAS, the Board has made no changes to the Investment Policy and minor changes to the Investment Strategies as indicated on Attachment 3; NOW, THEREFORE, BE IT RESOLVED That the District has complied with the requirements of the Public Funds Investment Act and the District’s Investment Policy and Strategies, attached hereto as Attachment 2 and Attachment 3 are hereby adopted as the Investment Policy of the District. PASSED, ADOPTED AND APPROVED by the Board of the Humble ISD this the 9th day of December, 2014. APPROVED: _____________________________ Mr. Robert Scarfo, President _____________________________ Mr. Keith Lapeze, Secretary

Investment Policy – Attachment 5

The authorized broker/dealer list for the District is shown below. Each of these firms, and the individual covering the account, are sent the District’s current Investment Policy. In accordance with the Public Funds Investment Act before any financial counterpart transacts business with the District it must certify in writing to a review of the Policy and have certified that procedures are in place to assure compliance with that Policy. When any material changes are made to the Investment Policy the new Policy is sent out for recertification. The list of broker/dealers must be approved by the Board annually (2256.025). The authorized broker/dealers for the District are: Barclays Capital Inc. Citigroup Global Markets Inc. Edward Jones First Public GX Clark

J.P. Morgan Chase J.P. Morgan Securities LLC Mizuho Securities USA Inc.

Morgan Stanley & Co., LLC Wells Fargo Securities Other counterparties include banks for time and demand deposits and local government investment pools and mutual fund families: Lone Star Investment Pool Federated Securities Corp PFM Fund Distributors Texas Term and Texas Daily Pools TexPool Wells Fargo

Listing of Independent Sources of Instruction Relating to the Investment Responsibility

American Institute of Certified Public Accountants (AICPA) Education Service Centers (ESC’s) First Public / Lone Star Investment Pool (LSIP) Government Treasurers Organization of Texas (GTOT) Harris County Department of Education (HCDE) Patterson & Associates Southwestern School of Governmental Finance (SWSGF) Texas Association of School Administrators (TASA) Texas Association of School Boards (TASB) Texas Association of School Business Officials (TASBO) Texas Society of Certified Public Accountants (TSCPA) Texas Higher Education Coordinating Board University of North Texas Center for Public Management

Investments 1

Investment Policy-Attachment 6

INVESTMENT GLOSSARY ACCRETION: the increase in value of an asset toward its redemption price over time as it approaches maturity. The discount amount is accreted to par over the life of the security on a daily basis. ACCRUED INTEREST: the accumulated interest due on a bond as of the last interest payment made by the issuer of the bond. The security is always sold with the accrued interest included. AGENCY SECURITY: a U.S. government-issued security that was not issued by the Treasury Department but that may be backed by the full faith and credit of the United States depending upon the issuing agency. A debt security issued by a federal or federally sponsored agency, for example, the Federal National Mortgage Association (FNMA). AMORTIZATION: the decrease in value of an asset to its redemption price over time as it approaches maturity. On a mortgage backed security, the reduction through periodic repayments of both interest and principal. The premium amount is amortized to par over the life of the security on a daily basis. ARBITRAGE: profiting from the differences in price when the same security, currency, or commodity is traded on two or more markets. ARBITRAGE BONDS: bonds issued by a municipality in the tax exempt markets and reinvested in the taxable markets in order to gain interest rate advantage or the advantage earned by refunding higher-rate bonds in advance of their call date. Proceeds from the lower-rate refunding issue are invested in treasuries until the first call date of the higher-rate issue being refunded. ASK PRICE: the price at which securities are offered by the broker/dealer. The price at which a governmental entity buys a security. ASSET ALLOCATION: the way that investments are distributed and weighted among different types of investment vehicles. The objective of asset allocation is to diversify market and credit risk while obtaining the greatest possible return consistent with the investor’s risk tolerance. BASIS POINT: a unit of measurement used in the valuation of fixed-income securities equal to 1/100 of 1 percent of yield; e.g., 1/4 of 1 percent is equal to 25 basis points. BANKERS ACCEPTANCE (BA): a draft, bill, or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill as well as the issuer. Used primarily in international trade. BEAR MARKET: a prolonged period of falling security prices, usually caused by declining economic conditions and/or rising interest rates. BENCHMARK: the performance of a predetermined group of securities or an individual security for comparative risk and performance purposes. Benchmarks may be based on available indexes such as the Standard and Poors Index or selected for specific investment strategies. BID PRICE: the price offered by the seller of a security. The price at which a governmental entity will sell a security. BOOK VALUE: the value at which a security is carried on an inventory list or other financial records of an investor. Book value reflects the price at which the security was originally bought plus net amortization/accretion to that point in time. The book value will differ significantly from the security’s current market value. BOND: a long-term debt obligation issued by a government, corporation, or municipality that generally pays a stated rate of interest at regular intervals and returns the face value upon maturity.

Investments 2

BROKER: a broker brings buyers and sellers together in return for a commission (fee). The broker takes no position in a trade and does not act as a principal or own securities. BULL MARKET: a period of prolonged rises in the price of stocks, bonds, and/or commodities due to favorable market conditions producing lower interest rates. CALL FEATURE: part of the agreement a bond issuer makes with a buyer, called the indenture, describing the schedule and price of redemption before maturity. A call is an embedded option in the security allowing the seller to “call” (buy) it back at specific times. CALL PRICE: price at which a bond or preferred stock with a call provision or call feature can be redeemed (repurchased) by the issuer. CALL PROVISION: a bond provision that allows the bond issuer to redeem the bond prior to the bond’s maturity date. If the bond states that this provision can be exercised after a given number of years, or at a price greater than the par value, or the bond is not callable, the bond is said to have call protection. CALL RISK: a form of investment risk when a bond may be called or redeemed prior to maturity and the investor will be unable to reinvest the principle for the same or a higher rate of return. This risk increases when interest rates are falling and it becomes more attractive for the bond issuers to call their bonds with the higher interest rates and issue new bonds with a lower interest rate. Most bonds that do have a call provision have some call protection for a specified number of years. CALLABLE BOND: a bond that has an option which can be exercised by the issuer of the bond to redeem the bond prior to its maturity date. The provision will state the times and price that the bond may be called at. CAPITAL GAIN: the profitable result of the sale of a security or asset whereby the net sales price exceeds the book value of the security at the date of purchase. CAPITAL LOSS: the resulting loss on the sale of a security or asset whereby the net sale proceeds is less than the book value of the security at the date of sale. CASH FLOW ANALYSIS: an analysis of changes in revenues and expenditures that affect the cash balance. CERTIFICATE OF DEPOSIT (CD): a time deposit issued by a bank that pays interest periodically or at maturity, a time deposit with a specific maturity evidenced by a certificate. Large denominations CDs are typically negotiable. There is a penalty for early withdrawal of the CD (time deposit). COLLATERAL: securities, evidences of deposit, or other property that a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. COLLATERALIZED MORTAGE OBLIGATION (CMO): a mortgage-backed bond created from a pool of mortgages which creates different classes of securities (tranches) from one pool with different risk profiles. COMMERCIAL PAPER (CP): short-term obligations with maturities ranging from 1 to 270 days issued by banks, corporations and other borrowers to investors with large temporary cash positions. Such instruments are unsecured and usually discounted, but are generally interest bearing. COMPOUND INTEREST: the method of computing interest on a principal sum where the interest rate is applied to the original principal and any accumulated interest. CONSTANT DOLLAR FUND: a short term money market fund whose objective is to offer safety, liquidity and always strives to maintain a $1 dollar share value for all participants. SEC registered funds maintain a limited 90-day WAM. AAA-rated funds usually require a 60-day WAM (weighted average maturity). CONTINUOUS CALL OPTION: a call option on a security under which the issuer maintains the right to repurchase the bond from the investor, on any date, from the time that the bond is first callable until its maturity date.

Investments 3

COUPON RATE: the fixed annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value. A certificate attached to a bond evidencing interest due on a payment date. CREDIT RISK: the risk that the issuer of the bond will default or fail or its credit rating being reduced. This could involve the loss of all or part of the invested principal. DEALER: a dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his or her own account. A dealer maintains a portfolio and can trade from that portfolio. DEBENTURE: a bond secured only by the general credit of the issuer. US government agency notes are debentures. DEFLATION: an economic condition that is characterized by the decline in the prices of goods and services (the reverse of inflation). Also see inflation. DELIVERY VERSUS PAYMENT (DVP): There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment requires the delivery of securities before payment is made securing the assets for the entity. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities and is less secure. DEPOSITORY TRUST COMPANY (DTC): a firm through which members can use a computer to arrange for securities to be delivered to other members without physical delivery of the certificates. The DTC uses computerized debit and credit entries. A member of the Federal Reserve System, the system mirrors the FedWire system and was designed to reduce the load on the FedWire system. DEPRECIATION: the decline in the value of an asset or investment. DERIVATIVE SECURITY: a financial instrument whose value is based on, and determined by, another security or benchmark. Examples include mortgage backed securities as well as Treasury strips, callable securities and floaters. DISCOUNT: the difference between the cost price of a security and its PAR or face value at maturity when quoted at lower than face value. A security selling below the original offering price shortly after sale also is considered to be “at a discount”. DISCOUNT SECURITIES: non-interest bearing money market instruments that are issued at discount and redeemed at maturity for full face value; e.g., U.S. Treasury Bills and U.S. agency discount notes. DISCOUNT ON SECURITIES: the difference between a security’s par value and its price when trading less than par price (100). DISCOUNT RATE: the interest rate member banks pay the Federal Reserve when the banks use securities as collateral. Banks usually set their loan rates one point above the discount rate. DISCRETE CALL OPTION: an option whereby the bondholder has sold the issuer the right to repurchase the bonds back from the investor, only on interest payment dates or dates of the schedule, from the time that the bond is first callable until its maturity date. DIVERSIFICATION: the spreading of an investment over a large number of securities in order to reduce financial risk or the process of using different securities and maturities in a portfolio to reduce market and credit risk. (i.e. not putting all your eggs in one basket.) DURATION: a measure of the price volatility of a bond equal to the weighted average term to maturity of the bond’s cash flows. The weights are the present values of each cash flow as a percentage of the present value of all cash flows. The greater the duration of a bond, the greater its percentage price volatility. The duration of a portfolio will vary from the weighted average maturity because of the cash flows. EQUITY: ownership possessed by shareholders in a corporation.

Investments 4

FAIR MARKET VALUE: the price at which a buyer and seller agree. In investment accounting and GASB, the market value at one point in time, usually the end of the fiscal year. FEDERAL CREDIT AGENCIES: agencies of the federal government that supply credit to various classes of institutions and individuals, e.g., savings and loans, small business firms, students, farmers, farm cooperatives, and exporters. FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): the federal agency that insures bank deposits, currently up to $250,000 per deposit as identified by taxpayer identification code. FEDERAL FUNDS: funds deposited by commercial banks at Federal Reserve Banks, including funds in excess of bank reserve requirements. FEDERAL FUNDS RATE: the rate of interest at which banks with excess reserves charge banks lacking reserves for overnight loans to meet reserve requirements. This rate is currently set by the market to be consistent with the daily reserve requirements and monitored by the Fed. FEDERAL HOME LOAN BANKS (FHLB): the institutions that regulate and lend money to savings and loan associations, cooperative banks, and other mortgage lenders in a manner similar to the Federal Reserve’s role with commercial banks. The Federal Home Loan Bank System is made up of 12 regional FHLBs. It raises money by issuing notes and bonds and lends money to savings and loans and other mortgage lenders based on the amount of collateral the institution can provide. FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) “FREDDIE MAC”: publicly chartered agency that buys qualifying residential mortgages from lenders, packages them into new securities backed by those pooled mortgages, provides certain guarantees, and then resells the securities on the open market. FEDERAL HOUSING ADMINISTRATION (FHA): federally sponsored agency that insures lenders against loss on residential mortgages. FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) “FANNIE MAE”: FNMA is a federal corporation working under the auspices of the U.S. Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. FNMA is a private stockholder-owned corporation, which includes purchases of a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages. FNMA’s securities are also highly liquid and are widely accepted. FEDERAL OPEN MARKET COMMITTEE (FOMC): consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other presidents serve on a rotating basis. The Committee meets eight times per year to set U.S. monetary policy. FINAL MATURITY: the date on which a security is due and payable. The maturity date stated on the face of a security. FINANCIAL INDUSTRY REGULATORY AUTHORITY (FINRA): Created in 2007 through the consolidation of NASD and the member regulation, enforcement, and arbitration functions of the New York Stock Exchange, FINRA is a non-governmental regulator of securities firms. Representatives of brokers/dealers must be in good standing with FINRA in order to handle district investments. FIXED INCOME MARKET: the market defined by securities with set (fixed) coupon rates. FLEXIBLE REPURCHASE AGREEMENT (FLEX REPO): A type of repurchase agreement used primarily for investment of bond proceeds that has a maturity corresponding with the last expected construction draw for the bond project. Flex repos pay a fixed rate of interest and allow for cash withdrawals at the buyer’s discretion during the life of the agreement. FLOATER: a security whose value or coupon is determined from (floats on) an index or other security such as Libor or T-Bills.

Investments 5

GINNIE MAE (GNMA): Government National Mortgage Association. GNMA buys Veterans Administration, Farmers Home Administration and Federal Housing Administration Mortgages, then issues bonds on pools of the mortgages. Investors in this bond receive monthly dividends through the mortgagee’s payments of principal and interest. GNMAs are full faith and credit of the US Government unlike other mortgage based agencies. GOVERNMENT BONDS: a security issued by the U.S. government and backed by its full faith and credit. INFLATION: the effect of generally rising prices of goods and services. INFLATIONARY RISK: a form of investment risk that measures the effect of inflation on an investment. If the after-tax return on an investment is lower than the rate of inflation, the investor will have less purchasing power at the maturity of the investment. The greatest risk to fixed income securities where the fixed rate will be devalued is the rise in inflation. INSTRUMENTALITY: a federal agency whose obligations, while not direct obligations of the U.S. Government, are sponsored or guaranteed by the government and backed by the government. INTEREST RATE: the fixed annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value. INTEREST-RATE RISK: a form of investment risk whereby changes in interest rates adversely affect the value of a security portfolio. For example the value of bond holdings will decline should interest rates increase. INVERTED YIELD CURVE: the economic condition where the yield on short-term issues is greater then the yield on long-term securities. In theory, this scenario could lead to further declines in interest rates and possible recession. ISSUE DATE: the date from which the bond begins to accrue interest. Also known as effective date. LIQUID ASSET: assets that can be converted easily into cash, some examples are money market fund shares, treasury bills, and bank deposits. LIQUIDITY: an asset that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if a buyer can be found easily. The spread between the bid and asked price is narrow because the securities are liquid and usually reflect high credit quality such as T-Bills. LIQUIDITY DIVERSIFICATION: act of investing in bonds, which have different maturities. LIQUIDITY RISK: a type of investment risk whereby an investment may not be able to be sold quickly at a fair market price when cash is needed. Long-term Treasury Bonds for example are publicly traded and have excellent liquidity. Limited partnerships on the other hand are often not publicly traded and typically have poor liquidity. LOCAL GOVERNMENT INVESTMENT POOL (LGIP): professionally managed pool of funds composed of cash deposits from a large group of cities, counties, school districts and local governments. In Texas created under the Local Government Cooperation Act. A portfolio of securities is purchased and each pool participant owns a pro rata share in the pool of investments. MARGIN: the amount of additional collateral pledged to an entity in order to accommodate changes in market prices. Normally set at 102% for treasuries and agencies. MARKET RISK: risk that the price of a typical security can decrease leading to possible principal loss if a sale of the security is required before maturity. MARKET VALUE: the price at which a security is trading in the marketplace and could presumably be purchased or sold.

Investments 6

MASTER REPURCHASE (REPO) AGREEMENT: a written contract covering all repo transactions between two parties to the repurchase or reverse repurchase agreements that establishes each party’s rights in the transactions. A master agreement will often specify among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the seller-borrower. MATURITY: the date upon which the principal or stated value of an investment becomes due and payable. MONEY MARKET ACCOUNT: a savings account which normally earns interest at a higher interest rate than a regular savings account, but with a minimum required balance and other restrictions. MONEY MARKET MUTUAL FUNDS (MMMF): a specific type of mutual fund that invests solely in money market instruments (short-term debt instruments, such as treasury bills, commercial paper, bankers' acceptances, repos and federal funds) as defined and registered with the SEC and regulated by the Investment Company Act of 1940 as 2a-7 funds. They strive to maintain a $1 net share value for participants. Three types of MMMFs are Treasury, Governmental and Prime. MMMFs are designed for safety and liquidity. MUTUAL FUND: The fund pools the resources of investors who buy shares and invests the proceeds in a portfolio of securities designed to achieve the fund's investment objective. All of the owners in the fund shares participate in the gains or losses of the fund. The value of the share is calculated off the market value of the portfolio. These products can only be sold by registered representatives. Mutual funds are also known as an open-end diversified management investment company. Long term investment funds that pool money and can invest in a variety of securities, including fixed-income securities and money market instruments. Mutual funds are designed for yield and involve more risk than money market mutual funds. Mutual funds are regulated by the Investment Company Act of 1940 and must abide by the following Securities and Exchange Commission (SEC) disclosure guidelines: 1. Report standardized performance calculations. 2. Disseminate timely and accurate information regarding the fund's holdings, performance, management and general investment policy. 3. Have the fund's investment policies and activities supervised by a board of trustees, which are independent of the adviser, administrator or

other vendor of the fund. 4. Maintain the daily liquidity of the fund's shares. 5. Value their portfolios on a daily basis. 6. Have all individuals who sell SEC-registered products licensed with a self-regulating organization (SRO)

such as the national Association of Securities Dealers (NASD). 7. Have an investment policy governed by a prospectus which is updated and filed by the SEC annually. MORTGAGE-BACKED SECURITY: a security backed by pools of home loan mortgages. Investors in mortgage-backed certificates receive monthly payments derived from the income stream of interest and principal of the underlying mortgages. MUNICIPAL BONDS: a bond or debt obligation issued by state or local governments to fund general municipal needs or special projects (See also revenue bonds) NATIONAL ASSOCIATION OF SECURITIES DEALERS (NASD): a self-regulating industry organization of brokers and dealers who trade securities in the United States. Designated by the Maloney Act of 1933 to establish rules of fair market practice. NEGATIVE YIELD CURVE: see inverse yield curve. NET ASSET VALUE (NAV): the value of a mutual fund share as determined at the close of each business day. NAV is determined by summing the market value of all securities in the portfolio, deducting expenses and dividing this total by the number of shares outstanding. All shares redeemed on that day are done so at the NAV for that specific day. NET ASSET VALUE FUNDS: a mutual fund seeking to offer a higher yield than the constant dollar funds (money market funds). These funds purchase longer maturing securities, which translate into a higher market and volatility risk as well as longer WAM. These funds experience market fluctuation due to the risk of the

Investments 7

longer securities and will subject the investor to a higher level of market price and volatility risk than a constant dollar fund. NORMAL YIELD CURVE: a yield curve where short-term yields are lower than long-term yields. The slope of the curve rises gradually in the early years and becomes almost flat in latter years. Generally reflects a market in expectation of higher rates. OBLIGATION: Any legal debt. OFFER PRICE: the price asked by a seller of securities. The price at which a security will be sold to a governmental entity. OPEN MARKET OPERATIONS: purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the Federal Open Market Committee (FOMC) in order to influence the volume of money and credit in the economy. OPPORTUNITY COST: the maximum profit an alternative plan of action would provide. PAR VALUE: for bonds, the par value is the face amount and equals the amount of principal due at maturity. The principal amount on which interest is calculated. PLEDGED ASSETS: bank-owned securities used as collateral for government deposits. Authorized collateral is defined by the Public Funds Collateral Act in Texas. POSITIVE YIELD CURVE (NORMAL YIELD CURVE): a yield curve where short-term yields are lower than long-term yields. The slope of the curve rises gradually in the early years and becomes almost flat in latter years. The relationship of time and rates. Generally reflects a market in expectation of higher rates. PREMIUM: 1) the difference in price between the security’s price and par (face amount) if a security is selling above its par value. 2)An amount that must be paid above par in order to call or refund an issue. 3) The price of an option. PREPAYMENT: the risk that changes in interest rates will cause the anticipated maturity of a mortgaged backed security to be shortened. Homeowners prepay all or part of a mortgage when interest rates decline to refinance at lower costs causing money to be returned to the owner of the mortgaged backed security who must reinvest at a lower rate. PRICE/BOOK RATIO: a financial ratio, which relates a company's stock (share price) to its total assets less any intangible assets (goodwill, patents) minus current and long-term liabilities. PRICE/EARNING RATIO: a financial ratio, which is commonly referred to as the P/E ratio or multiple. This is the relationship of a company's stock price divided by earnings per share. It provides stock investors with an indication of how much is being paid (share price) for a company's earnings potential. PRIMARY DEALER: a group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its formal oversight. Primary dealers can include Securities and Exchange Commission (SEC)-registered securities broker-dealers and banks. These dealers must make the market (buy Treasuries if offered therefore providing the liquidity) in U.S. Treasuries. PRIME RATE: rate of interest at which a commercial bank offers to lend money to its most creditworthy customers. PRIVATE ACTIVITY BOND: a taxable municipal bond. PROCEEDS: money received from the sale of a security or from the issuance of a security. PRODUCER PRICE INDEX (PPI): a measure of wholesale prices.

Investments 8

PROMISSORY NOTE: an unconditional signed promise in writing to pay a specified sum in demand at a fixed time. A promise to pay. PRUDENT PERSON RULE: an investment safety standard used by most governmental investors. The Rule states that investments will be made under circumstances then prevailing which persons of discretion and intelligence will purchase not for speculation but for investment recognizing the probable return of principal as well as the return on that investment. PUT: an option that gives the holder of a security the right to sell a portion of the security back to the issuer (or put holder) at a specified time at a specified price. RATE OF RETURN: the yield obtainable on a security based on its purchase price or its current market price. Coupon rate divided by the purchase price. REALIZED GAIN/LOSS: the true gain (profit) or loss of principal resulting from a sale of a security based on the difference between the security’s book value and its market value. See Unrealized gain/loss REDEMPTION PRICE: see Call Price. REGULAR SETTLEMENT: paying for a security one day after the trade date. REINVESTMENT RISK: the risk that funds will have to be reinvested in a lower interest rate security if the original security is called away. REPURCHASE AGREEMENTS (RP or REPO): an investment agreement involving the purchase of a security and a simultaneous agreement to repurchase that security at a specified price and date. Repurchase agreements are used as a way to earn income on idle cash at or near the fed funds market rate. A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security buyer in effect lends the seller money for the period of the agreement and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions. Exception: When the Fed is said to be doing RP, it is lending money, that is, increasing bank reserves. RESET DATE: the date on which a floating security’s rate or value is reset based on an established index and schedule. REVENUE BONDS: securities issued by governmental entities and secured by the revenue stream from the project being built or supported such as water treatment facilities or sewage plants. RISK: a measure of the probability of financial loss. SAFE HARBOR: the shifting of financial assets to less volatile areas to reduce risk. SAFEKEEPING LOCATION: a service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vaults for protection. SALLIE MAE (SLMA): securities issued by the Student Loan Marketing Association, an agency of the U.S. Government. SECONDARY MARKET: a market made for the purchase and sale of outstanding issues following the initial distribution. SECURITIES AND EXCHANGE COMMISSION (SEC): a governmental organization established to regulate the U.S. financial markets. SELF-REFULATORY ORGANIZATION (SRO): a stock exchange, securities, or commodities organization that is registered with Securities and Exchange Commission and that is responsible for making sure that its members obey rules and regulations. SETTLEMENT DATE: the purchase or sale date of a security on which the money changes hands (see also Trade Date).

Investments 9

SHORT: to have sold a security without owning the security in anticipation of subsequently purchasing it at a lower price and making a profit. Not permitted by governmental entities. SIMPLE INTEREST: the method of computing interest on a principal sum where the interest rate is applied only to the original principal amount. SKIP DAY SETTLEMENT: settlement one day after normal settlement i.e. two day settlement. SPREAD: Difference between any two prices or measures. The difference between the current bid and the current ask of a given security or between yields on similar securities. Refers to the additional yield that may be earned on a security over and above a U.S. Treasury obligation with a comparable maturity. STATE AND LOCAL GOVERNMENT SERIES SECURITIES (SLGS): generally used in escrow accounts for advanced refund of bond issues and for certain other funds. Yield is restricted by the Internal Revenue Service’s arbitrage regulations. SLGS are non-marketable securities issued by the U.S. Treasury directly to the issuer as a tool to manage yield-restricted bond proceeds. The interest rate on SLGS is selected by the purchaser (e.g. school district) based upon a maximum rate scale published daily by the U.S. Treasury. This allows the purchaser to structure an overall rate of return on the escrow that is less than or equal to the yield on the bond issue so that there is no violation of arbitrage restrictions. The most frequent use of SLGS is in advance refunding transactions in which the yield on the escrow being created to defease old bonds must not be greater than the yield on the refunding bonds sold to fund escrow. By using SLGS, the bond issuer can structure an optimal structure in an escrow that yields less than the bond yield. STRIP: a security issued by the U.S. Treasury in which the coupons have been removed and only the principal remains leaving a deeply discounted security which pays no interest but returns the principal at maturity. Other agencies and dealers “strip” securities but only the Treasury or an agency can create a “strip”. The others carry unique names such as TIGRS (Receipts) and are structured on a trust receipt. TERM REPURCHASE AGREEMENT: a repurchase agreement that lasts longer than a normal period of time, i.e. more than overnight. TRADE DATE: the date on which the agreement to buy or sell a security is made (see also Settlement Date) TREASURY BILL (TB or T-BILL): a marketable, short-term U.S. Government debt security issued at a discount from par value auctioned by the U.S. Treasury with maturities of 91 days, 180 days or 365 days. TREASURY BOND: the bellwether Treasury security. A thirty year U.S. Government debt security issued at a fixed interest rate with a maturity. The Bond is often used to set mortgage rates. TREASURY NOTE (TN OR T-NOTE): a marketable, medium-term U.S. Government debt security issued at a fixed interest rate with a maturity of one to ten years. TRUST INDENTURE: a trust deed between a borrower and trust holder on the terms of the trust. UNDERWRITER: the firm that agrees to buy an issue of securities on a given date and at a given price who will then usually resell them through a distribution network. UNREALIZED GAIN/LOSS: the amount of gain(profit) or loss that would be reflected on the sale of a security if that security had to be sold in the market at that time calculated on the difference between book value and market value of the security. VARIABLE RATE CD: short term CD with an interest rate that is reset at set intervals on an agreed upon index. VOLATILITY: characteristic of a security, commodity, or market to rise or fall sharply in price within a short-term period.

Investments 10

WEIGHTED AVERAGE MATURITY (WAM): the dollar weighted average remaining term to maturity of all assets in a pool or securities portfolio. The maximum WAM is usually based on an entity’s cash flow analysis. WINDOW: a term for the electronic bulletin board on which U.S. agencies sell their issues. The Agencies “open their window” for the initial offering of a security. YIELD: a financial ratio that measures the earnings on a capital investment. The ratio is generally expressed as a percentage of the current price. YIELD BURNING: a situation in which securities firms artificially raise the prices on the Treasury bonds used when municipalities refinance outstanding debt especially advance escrows. Municipalities are prohibited from making money on their tax-exempt transactions, so underwriters raise the price and “burn down” the yield on the securities to the level that municipalities are allowed to earn. Illegal under IRS regulations. YIELD CURVE: a chart equating time and rates and consisting of the yields of bonds of the same quality but different maturities. This can be used as a gauge to evaluate the future of the interest rates. YIELD TO CALL (YTC): a financial ratio that measures the rate of return on a callable bond. The yield on a bond that assumes redemption of that bond by the issuer at the first possible call date as stated in the indenture agreement. YIELD TO MATURITY (YTM): a financial ratio that measures the rate of return on a bond's acquisition cost and the value at maturity. The ratio accounts for any interest income from the bond and assumes that the bond is held and redeemed at maturity. ZERO COUPON BONDS: a bond that does not make interest payments but is sold at a deep discount. At the maturity of the bond, the full face amount of the bond is payable. The bond does result in a taxable income each year.

1



Workshop Agenda Item Type

Action Item




Title: Board Policy DCE (LOCAL) Employment Practices: Other Types of Contracts

Consideration of Board Policy DCE (LOCAL) Employment Practices: Other Types of Contracts Superintendent’s Recommendation: The Superintendent recommends that the Board of Trustees approve and adopt the recommended revisions to Board Policy DCE (LOCAL) Employment Practices: Other Types of Contracts Overview: As part of Update 100, the administration recommended revisions to Board Policy DCE (LOCAL). In response to concerns expressed by the Board at the October 14, 2014 Board meeting, the administration has revised its recommended revisions to this policy to clarify that the issuance of employment contract to non-Chapter 21 employees is permissive rather than mandatory. The policy has further been revised to clarify that only certain non-Chapter 21 employees shall be issued employment contracts. These revised policy was presented for information at the November Board meeting and the changes are now being recommended for adoption. Fiscal Impact Statement: N/A Cost:


Funding Source:



student

Approved

2

Budgetary Codes:

Fund



Attachments: Board Policy DCE (LOCAL), revised Prepared By: Leila Sarmecanic Approved By: Leila Sarmecanic Reviewed By: Dr. Guy Sconzo Date Submitted: November 17, 2014 11-11-14

Humble ISD 101913 EMPLOYMENT PRACTICES DCEOTHER TYPES OF CONTRACTS (LOCAL)

PROPOSED REVISIONS

DCE(LOCAL) - Proposed Revisions - 11-3-14

Formatted: Tab stops: 2.12", Left

Formatted: Font: 18 pt, Bold

Formatted: Right: -1"

The Board District may employ by written contract personnel not eligible for a contract underon non-Chapter 21 of the Education Code. Such contracts, shall not to be governed by the provisions of Chapter 21 of the Education Code, only those employees em-ployed in the following positions: salary schedule EX (Executive Leadership) director level positions or above for which SBEC certi-fication is not required; salary schedule AM (Administrative Man-agement) director level positions or above for which SBEC certifi-cation is not required, and salary schedule IP (Instructional Program Support) positions for which state licensure is required but SBEC certification is not required..

The District shall provide an employee a letter of reasonable as-surance of employment if a new contract is not issued prior to the last working day of the current contract and the employee is rea-sonably expected to report to work at the beginning of the following academic term.

An employee may appeal discharge during the contract period in accordance with DCE(LEGAL).

An employee whose contract is not reissued at the end of the con-tract period may appeal to the Board in accordance with DGBA(LOCAL).

NON-CHAPTER 21 CONTRACTS

REASONABLE ASSURANCE OF EMPLOYMENT

APPEAL OF EMPLOYMENT ACTIONS

1




Action Item




Title: Resolution to Expand the State’s Investment in Pre-K Education

Consideration of Resolution to Expand the State’s Investment in Pre-K Education Superintendent’s Recommendation: The Superintendent recommends that the Board of Trustees approve the Resolution to Expand the State’s Investment in Pre-K Education. Overview: The Superintendent served on a Greater Houston Partnership endorsed broad based community collaborative steering committee co-chaired by Jim Postl, retired President and CEO of Penzoil-Quaker State Company, Scott McClelland, President Houston Division of HEB, and Carol Shattuck, President and CEO of Collaborative for Children. The group's work is to "raise awareness about the importance of high quality early education and to make a strong case for increased investment in this critical, high return on investment area." As it relates to "increased investment," the group is pursuing support from the Foundation community, the State in the form of possible changes to the state funding formulas (not new or increased taxes), and local public-private partnership initiatives. The Greater Houston Partnership has decided that the Early Matters work will be the Partnership’s #1 legislative priority for the 84th State Legislative Session. All Region 4 School Boards, Chambers, and other entities are being asked to consider and act on resolutions in support of the Early Matters work. Fiscal Impact Statement: N/A Cost:



student

Approved

2

Funding Source: General Fund Bond Funds Fiscal Year: Grant Funds Other Funds Amendment Required? Yes No

Budgetary Codes:

Fund



Attachments: Resolution Prepared By: Dr. Guy Sconzo Approved By: Reviewed By: Date Submitted: November 13, 2014 11-11-14

RESOLUTION

TO EXPAND THE STATE’S INVESTMENT IN PRE-K EDUCATION HUMBLE INDEPENDENT SCHOOL DISTRICT

BOARD OF TRUSTEES WHEREAS, research shows that investment in high-quality, full-day prekindergarten programs yields dividends to schools in the form of reduced remedial education and interventions and their associated costs; WHEREAS, research further indicates that long-term societal benefits of high-quality, full-day prekindergarten programs include reduced long-term costs associated with criminal justice and public assistance and increased high school graduation and college attendance among children who participated in high-quality early education programs; WHEREAS, the State of Texas currently funds a half day of prekindergarten for eligible school children; WHEREAS, approximately 85% of a child’s brain development occurs by age five, yet only 5% of public education dollars are spent on early childhood education; WHEREAS, if students are not reading at grade-level by third grade they are four times more likely to drop out of school; WHEREAS, participation in high-quality prekindergarten has been shown to increase grade-level reading by third grade; WHEREAS, many school districts are providing local school district funds to expand prekindergarten offerings to full-day; WHEREAS, research by the National Institute for Early Education Research indicates that children participating in full-day prekindergarten programs experience greater improvement in kindergarten-readiness assessments than children who participate in half-day programs; WHEREAS, many school districts with limited facility capacity are willing to initiate partnerships with private child-care providers to increase access to high-quality prekindergarten programs; WHEREAS, the Greater Houston Partnership and other leading members of the business community have identified high-quality prekindergarten programs as a top legislative priority and an essential foundation to a skilled workforce; WHEREAS, Texas is the only state that offers prekindergarten programs but does not mandate teacher-to-student- ratios or maximum class sizes for prekindergarten classes;

NOW THEREFORE, BE IT RESOLVED that the Humble Independent School District Board of Trustees calls on the Texas Legislature to expand the state’s investment in prekindergarten education, and to institute quality standards, in order for Texas to realize all of the benefits that high-quality, full-day prekindergarten programs have to offer Texas’ school children. CERTIFICATE FOR RESOLUTION I hereby certify that the foregoing Resolution was presented to the Board of Trustees of the Humble Independent School District during a regularly scheduled meeting on December 9, 2014. A quorum of the Board of Trustees being then present, it was then duly moved and seconded that the Resolution be adopted, and such Resolution was then adopted according to the following vote: Ayes: ____________ Nays: ____________ Abstentions: ____________ To certify which, witness my hand and the official seal of the District this December 9, 2014. ______________________________________ President, Board of Trustees

1




Action Item




Title: Exception to Elementary Class Size Limits Waiver

Consideration of the Exception to Elementary Class Size Limits Waiver

Superintendent’s Recommendation: The Superintendent recommends that the Board of Trustees approve the Exception to Elementary Class Size Limits Waiver with the Texas Education Agency. Overview: The Texas Education Code 25.112 (d)-(e) states that the Commissioner may accept an application from a District to increase the class size limits of 22 students to one teacher, kindergarten through grade 4, if the limit works an undue hardship on the District. Humble ISD requests that student/teacher ratio in the specific schools and grade levels listed below be waived, not to exceed twenty-four (24) students. - Foster Elementary, Kindergarten - Greentree Elementary, Grade 3 - Lakeland, Grade 1 - Oaks Elementary, Kindergarten - Pine Forest Elementary, Grade 2 and Grade 3 Humble ISD is experiencing unexpected growth at the elementary level which has caused the financial hardship due to state-mandated class size limits. Sixty percent (60%) of the elementary schools are currently over 100% of their individual projected enrollment, with 33% of those over 105%. Legal EEB of the District's Board Policy allows the Board of Trustees to approve this exception.


student

Approved

2

Fiscal Impact Statement: N/A Cost:


Funding Source:


Budgetary Codes:

Fund



Attachments: NA Prepared By: Deborah A Yocham, Cathy Airola Approved By: Dr. Thomas Price Reviewed By: Dr. Thomas Price Date Submitted: November 11, 2014 9-01-14

1




Action Item




Title: Tax Refunds

Consideration of Petitions for Refunds Over $500

Superintendent’s Recommendation: The Superintendent recommends that the Board of Trustees approve the petitions for tax refunds. Overview: The Texas Property Tax Code, Section 31.11(c) states "If a taxpayer applies to the tax collector of a taxing unit for a refund of an overpayment or erroneous payment of taxes and the auditor for the unit determines that the payment was erroneous or excessive, the tax collector shall refund the amount of the excessive or erroneous payment from available current tax collections or from funds appropriated by the unit for making refunds. However, the collector may not make the refund unless: (1) in the case of a collector who collects taxes for one taxing unit, the governing body of the taxing unit also determines that the payment was erroneous or excessive and approves the refund if the amount of the refund exceeds….(B) $500 for a refund to be paid by any other taxing unit;…an application for a refund must be made within three years after the date of the payment or the taxpayer waives the right to the refund." Detailed information and rationale for each correction or refund has been documented in the attachment. If the Board approves this consideration, Humble ISD will be in compliance with the Texas Property Tax Code. Fiscal Impact Statement: The total effect of the refund(s) will result in a reduction of total collections received of $1,967.33. Overpayments are recorded as a liability on the general ledger upon receipt and, therefore, do not cause a decrease in recorded revenue when refunded.


student

Approved

2

Cost:


Funding Source:


Budgetary Codes:

Fund



Attachments: Summary of Petitions for Refunds Prepared By: Janice Himpele Approved By: Lynn Lynn Reviewed By: Lynn Lynn Date Submitted: December 1, 2014 11-11-14

Humble Independent School DistrictSummary of Petitions for Refunds in Excess of $500

Reason for Refund Year Property Description Account No. Refund Amount

Overpayment (2) 2014 LT 9 BLK 11 109-694-000-0009 554.35$ ATASCOCITA FOREST SEC 2

Overpayment (2) 2014 LT 64 BLK 13 OLYMPIC VILLAGE 115-236-013-0064 669.21$ WALDEN ON LAKE HOUSTON PH 2

Overpayment (2) 2014 LT 25 BLK 40 MARATHAN VILLAGE 117-775-040-0025 743.77$ WALDEN ON LAKE HOUSTON PH 4

Total 1,967.33$

(1) Payment made in error by property owner or mortgage company.

Attachment - Refunds Over $500

December 9, 2014

(2) Taxpayer paid incorrect amount.

Refunds 12-9-14.xls 1 12/2/20143:15 PM

1




Action Item




Title: Waiver of P & I

Consideration of Request(s) for Waiver of Penalty & Interest on Delinquent Taxes

Superintendent’s Recommendation: The Superintendent recommends that the Board of Trustees approve the request(s) for waiver of penalty & interest on delinquent tax accounts. Overview: Section 1.08, Timeliness of Action by Mail and Section 33.011, Waiver of Penalty and Interest, of the Texas Property Tax Code, provide conditions for timely payments and waivers of penalties and interest. The taxpayer(s) listed on the attached schedule has/have provided satisfactory evidence to meet the requirements of these sections of the Property Tax Code. Documentation is available for review in the Tax Office. If the Board approves the recommendation to grant the request(s) for waiver of penalty and interest, Humble ISD will be in compliance with the Texas Property Tax Code (as well as consistent with treatment of previous requests of this nature). Fiscal Impact Statement: The total effect of the request(s) for waiver of penalty and interest results in a loss of $1,906.93. Cost:


Funding Source:



student

Approved

2

Budgetary Codes:

Fund



Attachments: Summary of Request(s) for Waiver of Penalty & Interest on Delinquent Tax Accounts Prepared By: Janice Himpele Approved By: Lynn Lynn Reviewed By: Lynn Lynn Date Submitted: December 1, 2014 11-11-14

Attachment - Waiver of P&I

Humble Independent School DistrictRequest for Waiver of Penalty and Interest on Delinquent Taxes

November 11, 2014 9-Dec-14

Reason for Property Date Contacted Satisfactory P&IWaiver Request Owner # Account # Check # Mailed HISD Proof Amount

Sec. 33.011(i) Waiver of P&I A 096-457-000-0002 10/30/14 In Tax Office 1,906.93$

Total 1,906.93$

Waiver of P&I 12-9-14.xls 1 12/3/20148:37 AM

1




Action Item




Title: Budgetary Amendments

Consideration of Budgetary Amendments

Superintendent’s Recommendation: The Superintendent recommends that the Board of Trustees approve the budgetary amendments. Overview: The Texas Education Code Section 44.006, the Texas Education Agency Resource Guide Sections 2.10.6 and 5.3.4 and Humble ISD Board Policy CE (LOCAL), page 2, require that certain budgetary amendments be approved by the Board of Trustees. Changes to budgetary accounts in the General Fund, National School Breakfast and Lunch Program Fund and Debt Service Fund that affect functional expenditure categories must be approved by the Board of Trustees according to TEA regulations. By approving these amendments, Humble ISD will be in compliance with both state law and local policy regarding approval of budgetary amendments. Fiscal Impact Statement: There is no change to the General Fund Unassigned Fund Balance. The total General Fund Assigned Fund Balance will decrease by $1.5 million. The National School Breakfast & Lunch Program Restricted Fund Balance will decrease by $385,333. There is no change to the Debt Service Fund Restricted Fund Balance.


student

Approved

2

Cost: One-Time Multi-Year (Specify):

Funding Source:


Budgetary Codes:

Fund



Attachments: Budgetary Amendments Detail – Attachment 1 Budgetary Summary – Attachment 2 Prepared By: Marilyn Farrell Approved By: Lynn Lynn Reviewed By: Lynn Lynn Date Submitted: December 3, 2014 11-11-14

Budgetary Amendments Detail December 9, 2014

Humble Independent School District

Fund Change in Media Staff Instruct School Guidance/ Social Health Pupil Cocurric/ Gen Maint & Security Data Commun Debt Facility Juvenile

General Fund Balance Estimated Instruction Svcs Develop Leadershp Leadershp Counsel Svcs Svcs Transp Extracurr Admin Operation Svcs Process Svcs Svc Acquisit Justice TIRZ Other

Explanation of Amendment Assignments Revenues 11 12 13 21 23 31 32 33 34 36 41 51 52 53 61 71 81 95 97 99

Items Affecting Fund Balance:

Items Affecting Revenues and Functional Categories:Increase revenue and expenditure budgets for current year E-Rate receipts from AT&T.

8,148 8,148

(See explanation - Note 1)

Establish budget for the release of 6/30/14 fund balance assignment for portable buildings at Fall Creek Elementary, Lakeshore Elementary, Atascocita Springs Elementary, North Belt Elementary and Atascocita High School.

(1,500,000) 1,500,000

Transfers Between Functional Categories Detail: Org. 901 (Security) - Transfer from security and monitoring services (extra duty pay) to data processing services (TRS, workers comp., social security and extra duty pay); security and monitoring services (TRS, workers comp, social security and extra duty pay) to plant maintenance and operations (TRS, workers comp and social security) for proper coding of Junior Olympics.

759 (1,332) 573

Org. 727 (Technology Services) - Transfer from data processing services (supplies) to instruction (supplies) for Ipad Otterbox cases.

1,164 (1,164)

Org. 812 (Learning Division) - Transfer from instruction (extra duty pay) to extracurricular (transportation) for shuttle buses at Humble Middle School and Ross Sterling Middle School.

(10,000) 10,000

Orgs. 803, 838, 840 (Reading, Secondary Mathmatics, Academics) - Transfer from instruction (supplies and substitute teacher) to curriculum/staff development (other reading materials, misc. contracted services, employee travel, extra duty pay, substitute support personnel, social security, workers comp and TRS) for curriculum, Lead4ward and Dyslexia expenditures.

(45,445) 45,445

Transfers Between Functional Categories:Transfers between functional categories for proper coding of substitute wages, stipends, overtime, salaries/wages for subs, social security, workers' comp, trs district share, education svc ctr, misc contracted svcs, general supplies, employee travel, field trips and misc operating expenses.

(2,400) 0 1,700 0 0 0 0 0 0 700 0 (480) 480 0 0 0 0 0 0 0

Totals (1,500,000) 8,148 (56,681) 0 47,145 0 0 0 0 0 0 10,700 0 279 (852) 7,557 0 0 1,500,000 0 0 0

1 E-rate funds are discounts to eligible schools and libraries for Telecommunications services, Internet Access, Internal Connections and Basic Maintenance.

The reimbursements are derived from a formula that is based on the level of poverty and urban /rural status of the population served. Funds not fully expended during the prior year are carried over to the current year.

Budget Amendments - Detail 2014-12-09.xls 12/3/20143:04 PM

Budgetary Amendments Detail December 9, 2014

Humble Independent School District

Net Effect Change in Food Maint & Security Data Facility

National School Breakfast & Lunch Program on Estimated Local State Federal Service Operation Svcs Process Acquisit

Explanation of Amendment Fund Bal Revenues 57XX 58XX 59XX 35 51 52 53 81

Items Affecting Fund Balance:

Amend budget for the purchase of freezer equipment and monitor, truck, furniture, carpet, repairs, café lab, lab monitor and data drop.

(385,333) 385,333

Items Affecting Revenues and Functional Categories:

Transfers Between Functional Categories:

Totals (385,333) 0 0 0 0 385,333 0 0 0 0

Revenue

Budget Amendments - Detail 2014-12-09.xls 12/3/20143:04 PM

Attachment 2

Adopted AmendedGENERAL FUND Budget July August September October November December January February March April May June BudgetRevenues Local Taxes $130,826,046 $130,826,046

Local TIRZ $6,895,493 $6,895,493

Local Other $1,025,000 $137,000 $5,000 $194,895 $45,870 $8,148 $1,415,913

State $159,989,428 $1,497 $159,990,925

TRS On-Behalf $14,657,849 $14,657,849 Federal $45,000 $45,000

Total Revenues $313,438,816 $137,000 $5,000 $0 $194,895 $47,367 $8,148 $0 $0 $0 $0 $0 $0 $313,831,226

Expenditures 11-Instruction $184,407,952 ($21,097) $8,465,173 ($119,637) ($887,928) ($56,681) $191,787,782

12-Instructional Resources & Media Svcs. $3,103,073 $2,633 $37,940 $559 $3,144,205

13-Curriculum Dev. & Instructional Staff Dev. $7,126,375 $8,700 $601,375 ($21,626) $2,869,155 $47,145 $10,631,124

21-Instructional Leadership $3,037,657 $1,099 ($6,800) ($71,053) $2,960,903

23-School Leadership $20,080,818 $2,517 $6,152 ($1,792) ($877,638) $19,210,057

31-Guidance, Counseling & Evaluation Svcs. $14,143,543 $88,804 $24,921 ($24,786) $14,232,482

32-Social Work Services $148,437 ($2,760) $145,677

33-Health Services $3,225,614 $2,228 ($128) ($73,553) $3,154,161

34-Student (Pupil) Transportation $11,685,837 ($1,846) $68,586 ($3,092) ($322,976) $11,426,509

36-Cocurricular / Extracurricular Activities $7,165,938 $19,690 $220,940 ($500,294) $10,700 $6,916,974

41-General Administration $7,742,652 $23,941 $346,440 $86,250 $92,990 $8,292,273

51-Plant Maintenance & Operations $30,152,165 $48,640 $1,635 $5,344,307 $335 ($24,537) $279 $35,522,824

52-Security & Monitoring Svcs. $3,288,123 $67,200 $1,628,255 ($529,134) ($49,908) ($852) $4,403,684

53-Data Processing Svcs. $6,835,256 $1,470 $16,000 $567,108 $727,658 ($73,451) $7,557 $8,081,598

61-Community Svcs. $658,907 ($6,453) $652,454

71-Debt Service $0 $0

81-Facilities Acquisition & Construction $0 $1,082,457 $1,500,000 $2,582,457

95-Payments to Juvenile Justice Prg. $96,800 $96,800

97-Payments to Tax Increment Fund $6,937,621 $6,937,621 99-Other Intergovernmental Charges $1,515,000 $1,515,000

Total Expenditures $311,351,768 $137,000 $29,850 $18,425,557 $194,895 $47,367 $1,508,148 $0 $0 $0 $0 $0 $0 $331,694,585Excess / (Deficiency) of Revenues Over / (Under) Expenditures $2,087,048 $0 ($24,850) ($18,425,557) $0 $0 ($1,500,000) $0 $0 $0 $0 $0 $0 ($17,863,359)

Other Financing Sources and Uses Other Resources (Transfer In) / Other Uses (Transfers Out) $0 $0

Net Other Financing Sources and Uses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $006/30/14 Released Assignments Included Above $0 $0 $0 $18,425,557 $0 $0 $1,500,000 $0 $0 $0 $0 $0 $0 $19,925,557Net Impact to Unassigned Fund Balance $2,087,048 $0 ($24,850) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $2,062,19806/30/14 Unassigned General Fund Balance $71,828,188 $71,828,188Current Unassigned General Fund Balance $73,915,236 $73,890,386Note: The District shall target a yearly unassigned general fund balance between 17% (60 days) and 25% (90 days) of total operating expenditures. 81 days/22.3%

Current Fund Balance Assignments:Assigned-Encumbrances $9,964,547 ($9,964,547) $0

Assigned-Capital Expenditures-Campus Carryforwards $58,090 ($58,090) $0

Assigned-E-Rate $91,434 ($91,434) $0

Assigned-Facility Rental $297,170 ($297,170) $0

Assigned-Capital Expenditures $337,652 ($337,652) $0

Assigned-Technology $530,334 ($530,334) $0

Assigned-Insurance Deductibles $500,000 $500,000

Assigned-Legal Services $500,000 $500,000

Assigned-Special Education $5,262,500 $5,262,500

Assigned-Textbooks $227,313 ($227,313) $0

Assigned-Contingency $500,000 ($4,510) $495,490

Assigned-Emergency Preparedness (Hurricane, Fire, Etc.) $4,000,000 $4,000,000

2015-16 Budget Development (One-Time Needs) $2,000,000 $2,000,000

FF&E (Replacement Cycle) $2,619,696 $2,619,696

Technology Plan $7,430,159 $7,430,159

Maintenance Projects $4,000,000 $4,000,000

Portable Buildings $1,500,000 ($1,500,000) $0

Buses $1,200,000 $1,200,000

Safe and Secure Schools $1,000,000 $1,000,000

Assigned-Student Achievement-College/Career Ready (Goal #1) $4,392,355 ($3,305,296) $1,087,059

Assigned-Safe/Nurturing School Environment (Goal #2) $2,791,959 ($2,616,959) $175,000

Assigned-Attract, Develop & Retain Staff (Goal #3) $178,000 ($178,000) $0Assigned-Accountability; Effective/Efficient Operations (Goal #5) $1,020,532 ($814,252) $206,280Total Fund Balance Assignments $50,401,741 $0 $0 ($18,425,557) $0 $0 ($1,500,000) $0 $0 $0 $0 $0 $0 $30,476,184Total General Fund Balance $124,316,977 $0 ($24,850) ($18,425,557) $0 $0 ($1,500,000) $0 $0 $0 $0 $0 $0 $104,366,570

Humble I.S.D.2014-2015 Budget Summary

December 9, 2014

Budgetary Amendments A2.xls 12/3/20143:07 PM

Attachment 2Humble I.S.D.

2014-2015 Budget SummaryDecember 9, 2014

Adopted AmendedNATIONAL SCHOOL BREAKFAST AND LUNCH PROGRAM Budget July August September October November December January February March April May June BudgetRevenues Local Revenue $8,666,190 $8,666,190

State $80,000 $80,000 Federal $7,796,197 $7,796,197

Total Revenues $16,542,387 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $16,542,387

Expenditures 35-Food Services $15,939,032 $121,225 $385,333 $16,445,590

51-Plant Maintenance & Operations $750,624 $43,414 $794,038

52-Security & Monitoring Services $52,212 $52,212

53-Data Processing Svcs. $852 $852 81-Facilities Acquisition/Construction $0 $0

Total Expenditures $16,742,720 $0 $0 $164,639 $0 $0 $385,333 $0 $0 $0 $0 $0 $0 $17,292,692Excess / (Deficiency) of Revenues Over / (Under) Expenditures ($200,333) $0 $0 ($164,639) $0 $0 ($385,333) $0 $0 $0 $0 $0 $0 ($750,305)

Other Financing Sources and Uses Other Resources (Transfer In) $0 $0 Other Uses (Transfers Out) $0 $0 $0

Net Other Financing Sources and Uses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $006/30/14 Restricted Fund Balance $4,911,215 $4,911,215Current Restricted Fund Balance $4,710,882 $4,160,910Note: Federal guidelines restrict fund balance to no greater than the total of three months of operating expenditures (or approximately 25%). 24%

Adopted AmendedDEBT SERVICE FUND Budget July August September October November December January February March April May June BudgetRevenues Local Taxes $41,198,751 $41,198,751

Local - TIRZ $8,933,156 $8,933,156

Local Other $10,000 $10,000 State $6,776,634 $6,776,634

Total Revenues $56,918,541 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $56,918,541

Expenditures 71-Debt Service $54,695,259 $54,695,259 97-Payments to Tax Increment Fund $2,075,356 $2,075,356

Total Expenditures $56,770,615 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $56,770,615Excess / (Deficiency) of Revenues Over / (Under) Expenditures $147,926 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $147,926

Other Financing Sources and Uses Other Resources (Transfer In) $0 $0

Sale of Bonds $0 $0

Premium/Discount-Bonds $0 $0

Prepaid Interest $0 $0 Other Uses (Transfers Out) $0 $0

Net Other Financing Sources and Uses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $006/30/14 Restricted Fund Balance $44,519,813 $44,519,813Current Restricted Fund Balance $44,667,739 $44,667,739Note: The District shall target a yearly minimum restricted fund balance of 25% of annual debt service requirements on all outstanding debt issuance. 79%




INTERNAL SERVICE FUNDS: Original AmendedSELF-FUNDED INSURANCE Budget July August September October November December January February March April May June BudgetRevenues Local - Interest $3,300 $3,300

Total Revenues $3,300 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $3,300

Expenditures Legal Services $0 $0

Medical/Dental - Previous Years $3,350 $59,064 $62,414

Unemployment Claims $0 $35,000 $35,000

Worker's Compensation - Consulting Services $4,500 $4,500

Worker's Compensation - Administrative Fees $4,500 $4,500

Dear Oaks Employee Assistance Program (EAP) $81,600 $81,600 Healthiest You Telehealth Services $198,000 $198,000

Total Expenditures $291,950 $0 $0 $0 $59,064 $35,000 $0 $0 $0 $0 $0 $0 $0 $386,014Excess / (Deficiency) of Revenues Over / (Under) Expenditures ($288,650) $0 $0 $0 ($59,064) ($35,000) $0 $0 $0 $0 $0 $0 $0 ($382,714)

Other Financing Sources and Uses Other Resources (Transfer In) $0 $0 Other Uses (Transfers Out) $0 $0

Net Other Financing Sources and Uses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $006/30/14 Net Position $6,341,010 $6,341,010Current Net Position $6,052,360 $5,958,296

Original AmendedPUBLIC ENTITY RISK POOL Budget July August September October November December January February March April May June BudgetRevenues Local - Interest $3,300 $3,300

Interfund Services Medical - District $12,056,083 $12,056,083

Medical - Employee $8,085,106 $8,085,106 Workers' Comp. (District) $1,239,747 $1,239,747

Total Revenues $21,384,236 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $21,384,236

Expenditures Salaries & Related Benefits $124,087 $124,087

Insurance Premiums - Medical $20,141,189 $20,141,189

Insurance Premiums - Unemployment $193,110 $193,110 Insurance Premiums - Worker's Comp $1,239,747 $1,239,747

Total Expenditures $21,698,133 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $21,698,133Excess / (Deficiency) of Revenues Over / (Under) Expenditures ($313,897) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 ($313,897)


Net Other Financing Sources and Uses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $006/30/14 Net Position $7,842,281 $7,842,281Current Net Position $7,528,384 $7,528,384




INTERNAL SERVICE FUNDS (con't): Original AmendedPRINT SHOP Budget July August September October November December January February March April May June BudgetRevenues Interfund Services - User Fees $286,679 $5,516 $2,737 $294,932

Total Revenues $286,679 $294,932

Expenditures Salaries/Benefits $97,479 $97,479

Rentals-Operating Leases $117,900 $117,900

Contracted Services $8,300 $5,516 $2,737 $16,553 General Supplies $63,000 $63,000

Total Expenditures $286,679 $0 $0 $0 $5,516 $2,737 $0 $0 $0 $0 $0 $0 $0 $294,932Excess / (Deficiency) of Revenues Over / (Under) Expenditures $0 $0 $0 $0 ($5,516) ($2,737) $0 $0 $0 $0 $0 $0 $0 $0


Net Other Financing Sources and Uses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $006/30/14 Net Position $0 $0Current Net Position $0 $0

Original AmendedEMPLOYEE CHILD CARE Budget July August September October November December January February March April May June BudgetRevenues Interfund Services - User Fees $386,771 $386,771 Interfund Services - Donations $0 $0

Total Revenues $386,771 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $386,771

Expenditures Salaries/Benefits $337,806 $337,806

General Supplies $11,725 $11,725

Professional Services $625 $625

Travel $500 $500

Miscellaneous Operating Costs $36,115 $36,115 Capital Outlay $0 $0

Total Expenditures $386,771 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $386,771Excess / (Deficiency) of Revenues Over / (Under) Expenditures $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0


Net Other Financing Sources and Uses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $006/30/14 Net Position $140,633 $140,633Current Net Position $140,633 $140,633


1




Information/ Discussion Item


Number of Board Meetings Item is Planned to be Presented:

This Agenda Only Other, Please Explain:

District Goals (Check All That Apply): Student Achievement – Prepare Students to be College and Career Ready Service – Provide Quality Service to Internal and External Customers People – Provide a Quality Work Environment So Every Employee can Perform at the


Title: Financial Services Reports

Overview: Section 31.10 of the Texas Property Tax Code requires the Tax Collector for a taxing unit to prepare and submit to the governing body a written report accounting for all taxes collected for the unit during the preceding month. In accordance with the Tax Code, the attached Tax Collection Report as of November 30, 2014 has been provided for information. The Cash and Investment Reports, Schedule of Revenues and Expenditures and Construction in Progress Summary Report as of November 30, 2014 are included in the accompanying attachments in accordance with the Texas Education Code, Section 44.007(d). The listing of checks issued for the month of November is on file in the Accounts Payable Department. Additionally, the 2014-15 Comprehensive Annual Budget Report and the 2013-14 Purchasing Cooperative Fees Report have been provided as information. Fiscal Impact Statement: None Cost:


Funding Source:



student

Information Only

2

Attachments: Tax Collection Report - Prepared by Janice Himpele Cash & Investment Reports – (Information To Be Provided To The Board)

Prepared by Ida Schultze Revenues & Expenditures Report – Prepared by Ida Schultze Construction in Progress Summary Report – Prepared by Ida Schultze

2013-14 Cooperative Fees Report – Prepared by Shelley Vineyard

Approved By: Lynn Lynn Reviewed By: Lynn Lynn Date Submitted: December 3, 2014

9-01-14

Humble I.S.D.

Tax Collection Report

11-30-14

Maintenance & Operations Interest & Sinking Total Collections

Current Month Year To Date Current Month Year To Date Current Month Year To Date

Current Year Taxes 7,217,253.41$ 7,946,991.30$ 2,159,007.82$ 2,377,305.47$ 9,376,261.23$ 10,324,296.77$

Prior Year Taxes 123,396.15 1,354,595.19 36,348.09 400,923.63 159,744.24 1,755,518.82

Penalties & Interest 36,850.71 306,471.45 9,863.91 84,388.86 46,714.62 390,860.31

Tax Certificates / Ret. Item Fees 281.68 1,201.56 281.68 1,201.56

Total Tax Collections 7,377,781.95 9,609,259.50 2,205,219.82 2,862,617.96 9,583,001.77 12,471,877.46

Attorney Fees 32,499.77 268,537.23 32,499.77 268,537.23

Rendition Penalties 9,308.02 15,730.69 9,308.02 15,730.69

Overpayments 21,203.13 61,764.96 21,203.13 61,764.96

Mobile Home Escrow - 2,078.47 - 2,078.47

Total Collections 7,440,792.87 9,957,370.85 2,205,219.82 2,862,617.96 9,646,012.69 12,819,988.81

Refunds Due to Roll Corrections (12,144.51) (431,926.83) (3,507.72) (129,010.04) (15,652.23) (560,936.87)

Refunds Due to Overpayments (1) (1,421.46) (116,585.70) (1,421.46) (116,585.70)

Returned Checks (6,525.56) (12,894.08) (1,952.09) (3,583.74) (8,477.65) (16,477.82)

Attorney Fees (32,499.77) (268,537.23) (32,499.77) (268,537.23)

Net Collections 7,388,201.57$ 9,127,427.01$ 2,199,760.01$ 2,730,024.18$ 9,587,961.58$ 11,857,451.19$

Current Taxes Final Prior Year Taxes

Tax Year 2014 Tax Year 2013 Tax Year 2013 As of 11-30-14 As of 11-30-13

Total Appraised Value as of Certification Date 13,147,516,932$ 11,944,586,055$ 11,944,586,055$ -$ -$

Certified Taxable Value 11,405,544,635 10,323,420,729 10,323,420,729

Year To Date Supplementals 1,034,450,730 1,144,341,696 1,196,085,201

Year To Date Corrections (2,958,811) (6,377,014) (40,450,677)

Year To Date Adjustments (Timber) 6,897,526 7,765,965 7,275,322

Adjusted Taxable Value (3) 12,443,934,080 11,469,151,376 11,486,330,575

Tax Rate 1.52 1.52 1.52

Beginning Tax Levy 173,364,278 156,915,995 156,915,995 6,810,678 6,859,361

Adjust Delinquent Taxes Due to Statute of Limitations (250,380) (234,817)

Adjusted Delinquent Tax Roll 6,560,298 6,624,544

Year-To-Date Adjustments 15,783,520 17,415,107 17,676,231

Adjusted Tax Levy 189,147,798 174,331,102 174,592,226 6,560,298 6,624,544

Levy Lost Due to Frozen Accounts (4,631,511) (3,404,423) (3,417,410)

Current Levy 184,516,287 170,926,679 171,174,816

Net Collections (2) 10,313,891.06$ 15,399,780.68$ 168,638,763.00$ 1,750,777.23$ 1,443,288.61$

% Collected 5.59% 9.01% 98.52% 26.69% 21.79%

(1) Overpayments/double payments by taxpayers or mortgage companies.

(2) Net collections equal current collections minus refunds and returned checks.

(3) Amount does not include estimated uncertified value of $431,930,254.

Ratio of Actual ToOriginal Amended Actual Amounts Amended Budget

REVENUES:General Fund RevenueLocal Taxes 137,721,539$ 137,721,539$ 9,136,420$ Local Other 1,025,000 1,361,895 1,427,431 State 159,989,428 160,036,795 69,596,720 TRS-On-Behalf 14,657,849 14,657,849 4,535,564 Federal 45,000 45,000 145,410

Total Revenue 313,438,816 313,823,078 84,841,545 27%

EXPENDITURES:Current:Undistributed - - - Instruction 184,407,952 191,844,463 50,401,766 26%Instructional Resources & Media Services 3,103,073 3,144,205 802,250 26%Curriculum and Staff Development 7,126,375 10,583,979 3,131,308 30%Instructional Leadership 3,037,657 2,960,903 1,103,732 37%School Leadership 20,080,818 19,210,057 6,480,324 34%Guidance, Counseling & Evaluation Services 14,143,543 14,232,482 4,369,934 31%Social Work Services 148,437 145,677 26,401 18%Health Services 3,225,614 3,154,161 828,022 26%Student (Pupil) Transportation 11,685,837 11,426,509 3,030,950 27%Cocurricular/Extracurricular Activities 7,165,938 6,906,274 2,127,455 31%General Administration 7,742,652 8,292,273 3,129,721 38%Plant Maintenance and Operations 30,152,165 35,522,545 13,846,841 39%Security and Monitoring Services 3,288,123 4,404,536 1,374,439 31%Data Processing Services 6,835,256 8,074,041 1,852,192 23%Community Services 658,907 652,454 200,491 31%Debt Service - - - Facilities Acquisition/Construction - 1,082,457 518,571 48%Payments to Juvenile Justice Alt. Ed. Prg. 96,800 96,800 43,650 45%Payments to Tax Increment Fund 6,937,621 6,937,621 - Other Intergov Charges 1,515,000 1,515,000 322,036 21%

Total Expenditures 311,351,768 330,186,437 93,590,083 28%

Excess (Deficiency) of Revenues Over (Under) Expenditures 2,087,048 (16,363,359) (8,748,538)

Transfers In/ Other Resources - - 43,805 Transfers Out/Other Uses - - -

NET CHANGE in FUND BALANCE as of 11/30/2014 2,087,048$ (16,363,359)$ (8,704,733)$

6/30/2014 Unassigned Fund Balance 71,828,188

6/30/2014 Released Assignments 18,425,557

Unassigned General Fund Balance as of 11/30/2014 73,890,386

General Fund Balance as a % of Total Budgeted Expenditures 22%

Current Fund Balance Restrictions/Assignments/Commitments:

Assigned - Insurance Deductibles 500,000 Assigned - Legal Services 500,000 Assigned - Special Education 5,262,500 Assigned - Contingency 495,490 Assigned - Emergency Preparedness (Hurricane, Fire, etc) 4,000,000 Assigned - 2015-16 Budget Development (One-Time Needs) 2,000,000 Assigned - FF&E (Replacement Cycle) 2,619,696 Assigned - Technology Plan 7,430,159 Assigned - Maintenance Projects 4,000,000 Assigned - Portable Buildings 1,500,000 Assigned - Buses 1,200,000 Assigned - Safe and Secure Schools 1,000,000 Assigned - Student Achievement-College/Career Ready (Goal #1) 1,087,059 Assigned - Safe/Nurturing School Environment (Goal #2) 175,000 Assigned - Accountability; Effective/Efficient Operations (Goal #5) 206,280 Total Fund Balance Assignments 31,976,184

Total General Fund Balance as of 11/30/2014 105,866,570$

Humble Independent School DistrictSchedule of Revenues and Expenditures

Budget and Actual - General Fund

Budgeted Amounts

As of November 30, 2014

Page 1

Amended Budget to Actual Ratio of Actual toBudget Actual Variance Amended Budget

BUDGETED FUNDS: In Dollars

Nat'l School Breakfast and Lunch Program Revenue:Local 8,666,190$ 3,263,141$ (5,403,049)$ State 80,000 - (80,000) Federal 7,796,197 1,973,638 (5,822,559)

Total 16,542,387 5,236,779 (11,305,608) 32%

Nat'l School Breakfast and Lunch Program Expenditures 16,907,359 4,076,814 12,830,545 24%

Transfers In/Other Resources - - - Transfers Out/Other Uses - - -

Net CHANGE in Fund Balance (364,972)$ 1,159,965$ 1,524,937$

6/30/2014 Restricted Fund Balance 4,911,215

Debt Service Fund Revenue:Local Taxes 41,198,751$ 2,728,398$ (38,470,353)$ Local TIRZ 8,933,156 - (8,933,156) Local Other 10,000 4,569 (5,431) State 6,776,634 5,863,276 (913,358)

Total 56,918,541 8,596,243 (48,322,298) 15%

Debt Service Fund Expenditures 56,770,615 12,229,129 44,541,486 22%

Transfers In (Interest)/Other Resources (Bond Sale) - 4 4 Transfers Out/Other Uses (Bond Sale) - - -

Net CHANGE in Fund Balance 147,926$ (3,632,882)$ (3,780,808)$

6/30/2014 Restricted Fund Balance 44,519,813

Self-Funded Insurance Program Revenue:Local - Interest 3,300$ 1,496$ (1,804)$

Total 3,300 1,496 (1,804) 45%

Self-Funded Insurance Program Expenditures:Legal Services - - - Unemployment Claims 35,000 33,553 1,447 Medical - Previous Years 62,414 59,064 3,350 Workers' Comp 9,000 - 9,000 Deer Oaks Employee Assistance Program (EAP) 81,600 26,931 54,669 Healthiest You Telehealth Services 198,000 125,340 72,660

Total 386,014 244,888 141,126 63%

Net CHANGE in Net Assets (382,714)$ (243,392)$ 139,322$

6/30/2014 Net Assets 6,341,010

Total Self-Funded Insurance Program Net Assets 5,958,296$

Total Estimate Debt Service Fund Balance as of 11/30/2014

44,667,739$


As of November 30, 2014

Total Nat'l School Breakfast and Lunch Program Fund Balance as of 11/30/2014

4,546,243$

Budget and Actual - Other

Page 2

Amended Budget to Actual Ratio of Actual toBudget Actual Variance Amended Budget

BUDGETED FUNDS: In Dollars

Public Entity Risk Pool Revenue:Local - Interest 3,300$ 1,598$ (1,702)$ 48%Medical - District 20,141,189 8,053,955 (12,087,234) 40%Workers' Comp 1,239,747 587,020 (652,727) 47%Total 21,384,236 8,642,573 (12,741,663)

Public Entity Risk Pool Expenditures:Salaries & Related Benefits 124,087 49,657 74,430 40%Medical 20,141,189 8,053,955 12,087,234 40%Workers' Comp 1,239,747 619,874 619,873 50%Unemployment Compensation 193,110 193,110 - 100%Total 21,698,133 8,916,596 12,781,537

Net CHANGE in Net Assets (313,897)$ (274,023)$ 39,874$

6/30/2014 Net Assets 7,842,281

Total Public Entity Risk Pool Net Assets 7,528,384$

Print Shop Revenue:Interfund Services - User Fees 294,932$ 48,192$ (246,740)$ 16%

Total 294,932 48,192 (246,740)

Print Shop Expenditures 294,932 106,275 188,657 36%

Net CHANGE in Net Assets -$ (58,083)$ (58,083)$

6/30/2014 Net Assets -

Total Print Shop Net Assets -$

Employee Child Care Program Revenues:Interfund Services - User Fees 386,771$ 163,283$ (223,488)$ 42%

Total 386,771 163,283 (223,488)

Employee Child Care Program Expenditures: 386,771 117,950 268,821 30%

Net CHANGE in Net Assets -$ 45,333$ 45,333$

6/30/2014 Net Assets 140,633

Total Employee Child Care Program Net Assets 140,633$


As of November 30, 2014Budget and Actual - Other

Page 3

Total Remaining Authorization/ 2010 2011 2012 2013 2014 2015 Expenditures Budget

Fund Budget Expenditures Expenditures Expenditures Expenditures Expenditures Expenditures To Date Encumbrances Balance2008 - $244,920,000

Capital Projects:Phase 1 - 631 64,000,000 29,163,247 10,980,649 15,443,230 8,412,874 - - 64,000,000 - - Phase 2 - 632 25,000,000 - - 67,125 18,608,719 6,301,729 4,397 24,981,970 13,041 4,989

Total 2008 89,000,000 29,163,247 10,980,649 15,510,355 27,021,593 6,301,729 4,397 88,981,970 13,041 4,989

NOTES:1) The total authorization for the 2002 bond program was $229,984,624. These funds were 100% expended as of 6-30-2009.2) The total authorization for the 2005 bond program was $342,030,000. These funds were 100% expended as of 6-30-2013.

Humble Independent School DistrictConstruction in Progress Summary Report

as of November 30, 2014

1










Title: Purchasing Cooperative Fees Paid by Humble ISD

Report On Purchasing Cooperative Fees Paid by Humble ISD

Overview: The Texas Education Code §44.0331 requires school districts that enter into purchasing contracts valued at $25,000 or more under Section 44.031(a)(5), under Subchapter F, Chapter 271, Local Government Code, or under any other cooperative purchasing program to annually report the amount, purpose, and disposition of any contract related fee, including management fees associated with interlocal/cooperative purchasing agreements. The table below documents the contract-related fees, management fees, and any other fees paid to agencies for which the District had an Interlocal Agreement per Local Government Code 271 during the 2013-14 fiscal year.

Agency Fees Remarks BuyBoard (TASB) $22,826.52* *This is the total of fees

paid by Humble ISD for purchases exceeding the $25,000 threshold from the BuyBoard for 2013-14. The total rebate received by the District from the BuyBoard for 2013-14 was $14,455, resulting in net fees paid of $8,371.52.


2

Department of Information Resources (DIR) $0 Education Service Center IV $0 Education Service Center XI $0 Education Service Center XX $0 Educational and Institutional Cooperative Purchasing (E&I)

$0

Harris County Department of Education (HCDE) $0 Houston-Galveston Area Council (HGAC) $0 Purchasing Solutions Alliance (PSA) $0 The Cooperative Purchasing Network (TCPN) $0 Texas Comptroller for Public Accounts (TxMAS, TPASS, TxSmartBuy)

$100 Annual Membership Fee

Texas Interlocal Purchasing System (TIPS) $0 U.S. Communities Government Purchasing Alliance

$0

Fiscal Impact Statement: Most of the District’s Interlocal Agreements were formerly automatically renewed annually unless canceled by either party. Beginning with the 2015-16 fiscal year, all Interlocal Agreements will be submitted annually for board approval. Fees (if any) are paid from the appropriate fund supporting the purchase. Cost:


Funding Source:


Budgetary Codes:

Fund



Attachments: None Prepared By: Shelley Vineyard Approved By: Lynn Lynn Reviewed By: Lynn Lynn Date Submitted: December 3, 2014 11-11-14

1










Title: No Child Left Behind Highly Qualified Report, 2014-15

Report On: No Child Left Behind, 100% Highly Qualified Staff - Teachers and Title I Paraprofessionals Overview: The Texas Education Agency requires school districts to publicly report annual progress toward meeting the Highly Qualified requirements for all teachers and for certain paraprofessionals employed on Title I campuses under the No Child Left Behind Act. This information must be provided to the public by December 15th of each school year. Beginning with the 2005-06 school year, school districts were expected to achieve 100% Highly Qualified staff. To be considered "Highly Qualified" the teacher must: * Hold full state teacher certification; and * Have a Bachelor's degree (or higher); and * Demonstrate subject area competency by either passing the required content area examination, or having an academic major, or 24 semester hours in the subject area taught. These rules apply to the teacher of record in each of the core content areas of English, Reading or Language Arts, Mathematics, Science, Foreign Languages, Civics and Government, Economics, Fine Arts, History, and Geography. In addition, Special Education teachers who are the teacher of record in core academic areas must show competency in both Special Education and the subject area taught. Paraprofessional employees at Title I campuses must also be "Highly Qualified" as follows: * Hold a high school diploma or GED; and * Have completed 48 semester hours of study at an accredited college or university; or


student

Information Only

2

* Hold an Associate's degree (or higher); or * Meet a rigorous standard of quality as demonstrated through a formal state or local academic assessment. The attachments show that for the 2014-15 school year, Humble ISD meets the requirement of 100% Highly Qualified teachers and Title I paraprofessionals with the exception of Summer Creek HS and Humble HS which are at 99%. Each campus has one teacher needing to pass the required content area examination which both will sit for the exam in December 2014. In addition to this report for the Board of Trustees, each individual campus Highly Qualified Teacher Report will be posted on each campus website for public viewing. Fiscal Impact Statement: N/A Cost:


Funding Source:


Budgetary Codes:

Fund



Attachments: (1) - Highly Qualified Teachers and Paraprofessionals - Secondary Campuses (2) - Highly Qualified Teachers and Paraprofessionals - Elementary Campuses Prepared By: John Krippel Approved By: Rick Gardner Reviewed By: Rick Gardner Date Submitted: November 17, 2014 11-11-14

Attachment #1

English Reading Math Science Forg. Lang Civ & Gov. Econ. Arts History Geo. Total Pct. HQ

Regular Ed # of Classes 125 23 131 131 67 12 11 72 63 29 664 100%

Special Ed # of Classes 11 2 13 2 0 3 0 0 1 5 37 100%



















DAEP Subjects

Subjects

Subjects

Quest

Summer Creek

Subjects

Subjects

High School

Kingwood

Kingwood Park

Atascocita

Humble

Subjects

Subjects

Attachment #1




Title 1 Paras Asso Deg. 48 hrs Col. Assessment

9 4 0 5




Title 1 Paras Asso Deg. 48 hrs Col. Assessment

13 6 1 6

Humble

How Para is Highly Qualified

Subjects

Middle School

Title Campuses

Ross Sterling

Subjects


Attachment #1
















Woodcreek




Subjects

Timberwood

Atascocita

Subjects

Subjects

Middle School

Subjects

Subjects

Subjects

Non Title Campuses

Riverwood

Creekwood

Kingwood

Attachment #2

Classes Title 1 Paras Asso Deg. 48 hrs Col. Assessment Percent HQ

Regular Ed # of Classes 33 7 1 0 6 100%

Special Ed # of Classes 3 100%

























Ridge Creek How Para is Highly Qualified



How Para is Highly QualifiedWhispering Pines





Oaks How Para is Highly Qualified

Elementary

Title Campuses

Park Lakes

River Pines

Lakeland

Northbelt

Humble

Jack Fields

Attachment #2

Lakeshore

Classes Percent HQ Classes Percent HQ

Regular Ed # of Classes 48 100% Regular Ed # of Classes 43 100%

Special Ed # of Classes 2 100% Special Ed # of Classes 5 100%

Maplebrook




Oak Forest




Pineforest




Shadow Forest




Summerwood




Foster Timbers




Greentree Willow Creek




Hidden Hollow Woodland Hills




Fall Creek

Bear Branch

Deerwood

Eagle Springs

Elm Grove

Atascocita Springs

Elementary

Non Title Campuses

1




Action Item




Title: Purchases Exceeding $50,000 in the Aggregate

Consideration of Purchases Exceeding $50,000 in the Aggregate, Specifically for New Buses Superintendent’s Recommendation: The Superintendent recommends that the Board of Trustees approve the listing of purchases of goods and/or services that are estimated to aggregate to a value of $50,000 or more for the 2014-15 fiscal year, specifically for new buses. By approving the selection of the vendors or consultants included within this agenda item, the Board of Trustees will authorize the Superintendent and Administration to negotiate and execute those contracts and agreements necessary to provide the goods and/or services to the District without the need to return to the Board for any further authorization or approvals. Overview: In accordance with Board Policy CH LOCAL, purchases of goods and/or services that are estimated to aggregate to a value of $50,000 or more must be submitted for Board approval before a transaction may take place. This applies to the purchase of goods, professional services, and non-construction services. The request for additional buses was submitted and funded with adoption of the 2014-15 General Operating Budget. The purchase will include 10 new 77 passenger buses and 10 new 53 passenger wheelchair lift buses. In accordance with Policy CH (LOCAL), Humble ISD sought proposals from qualified vendors to provide new buses in support of District operations. A total of three companies submitted bids for new buses. The bids were ranked using eight criteria outlined in the tabulation with the most weight given to price, service, and warranty. Fiscal Impact Statement: Funding for the new buses will be provided from the 2014-15 General Operating Budget and is not anticipated to exceed $1,978,550.


student

Approved

2


Funding Source:

General Fund Bond Funds Fiscal Year: 2014-15 Grant Funds Other Funds Amendment Required? Yes No

Budgetary Codes:

Fund



199 34 6631 00 915 99 0000 915 GF005

199 34 6631 00 916 23 0000 916 GF005

Attachments: Tabulation Summary Prepared By: Jeffrey Prowell Approved By: Dr. Roger Brown Reviewed By: Dr. Guy Sconzo Date Submitted: November 18, 2014 11-11-14

A1, New Buses for Transportation Department

Note: No award for propane buses under this RFP.

Proposals Sent: 5Proposals Received: 3No-proposals received: 2

Selection criteria: (Check all that apply)

Purchase Price

Reputation of the vendor and the vendor's goods and service

Quality of the vendor's goods or services

Extent to which the goods or services meet the District needs

Vendor's past relationship with the district

The total long-term cost to the District to acquire the goods or services

For contracts for goods and services other than technology,

telecommunications, building construction and maintenance, or

instructional materials, whether the vendor or vendor's ultimate parent

company or majority owner

has its principal place of business in this state; or

Any other relevant factor specifically listed in the request for bids or proposals

Term: Award Date through June 30, 2015

Award Basis: Award to Longhorn Bus Sales based on purchase price, vendor's proven ability to provide services that meet the District requirements, and total long-term cost to the District.

New Buses for Transportation DepartmentRFP #2015-033

October 31, 2014

$97,362.00

$110,434.00 $101,752.00

$114,227.00

$121,436.00

$107,447.00

$114,292.00

$103,198.00 $95,821.00

$99,680.00

N/A

N/A

77 Passenger Bus cost with all requested equipment

employs at least 500 persons in this state

Rush Truck Centers of Texas, LP

Thomas Bus Gulf Coast GP,

Inc.Longhorn Bus

Sales

53 Passenger Wheelchair Bus (Propane) cost with all requested equipment

53 Passenger Wheelchair Bus cost with all requested equipment

77 Passenger Bus (Propane) cost with all requested equipment

1




Action Item





Consideration of Purchases Exceeding $50,000 in the Aggregate, Specifically for Portable Buildings Superintendent’s Recommendation: The Superintendent recommends that the Board of Trustees approve the listing of purchases of goods and/or services that are estimated to aggregate to a value of $50,000 or more for the 2014-15 fiscal year, specifically for portable buildings. By approving the selection of the vendors or consultants included within this agenda item, the Board of Trustees will authorize the Superintendent and Administration to negotiate and execute those contracts and agreements necessary to provide the goods and/or services to the District without the need to return to the Board for any further authorization or approvals. Overview: In accordance with Board Policy CH LOCAL, purchases of goods and/or services that are estimated to aggregate to a value of $50,000 or more must be submitted for Board approval before a transaction may take place. This applies to the purchase of goods, professional services, and non-construction services. Based upon the latest Demographic Study and planning for future campuses, the District is projecting the need for 10 additional portable buildings. The estimated cost of $150,000 per building includes, but is not limited to, engineering, ramps, canopies, FFE, technology, electricity, fire alarms, etc. The additional portable buildings are needed for the following campuses: Atascocita Springs Elementary (1), Fall Creek Elementary (3), North Belt Elementary (1), Lakeshore Elementary (1), and Atascocita High School (4).


student

Approved

2

Fiscal Impact Statement: Funding for the portable buildings will be provided from a release of the June 30, 2014 Fund Balance Assignment for Portable Buildings in the amount of $1.5 million. Cost:


Funding Source:


Budgetary Codes:

Fund



199 51 6245 00 126 99 A024 911

199 51 6245 00 124 99 A024 911

199 51 6245 00 103 99 A024 911

199 51 6245 00 125 99 A024 911

199 51 6245 00 008 99 A024 911

Attachments: Listing of Purchases Exceeding the Threshold(s) Prepared By: Kenny Kendrick Approved By: Dr. Roger Brown Reviewed By: Dr. Guy Sconzo Date Submitted: 11-18-2014 11-11-14

Purchases Exceeding $50,000 in the Aggregate A1 - Purchases Over $50K Annually -- Support Services Division

Purchasing Method Type of Purchase Vendor Name Funding SourceBudgetary Code(s)

(Budget Department Use Only)Length of

CommitmentRequesting

Campus/DepartmentAnnual Not to Exceed Amount

Buyboard Contract #335‐10Purchase of Portable Classroom Buildings

Ramtech Building Systems, Inc. General fund

199‐51‐6245‐00‐126‐99‐A024‐911199‐51‐6245‐00‐124‐99‐A024‐911199‐51‐6245‐00‐103‐99‐A024‐911199‐51‐6245‐00‐125‐99‐A024‐911199‐51‐6245‐00‐008‐99‐A024‐911

1 year or less Support Services $ 1,500,000

1

1




Action Item





Consideration of Purchases Exceeding $50,000 in the Aggregate, Specifically for Software Superintendent’s Recommendation: The Superintendent recommends that the Board of Trustees approve the listing of purchases of goods and/or services that are estimated to aggregate to a value of $50,000 or more for the 2014-15 fiscal year, specifically for software. By approving the selection of the vendors or consultants included within this agenda item, the Board of Trustees will authorize the Superintendent and Administration to negotiate and execute those contracts and agreements necessary to provide the goods and/or services to the District without the need to return to the Board for any further authorization or approvals. Overview: In accordance with Board Policy CH LOCAL, purchases of goods and/or services that are estimated to aggregate to a value of $50,000 or more must be submitted for Board approval before a transaction may take place. This applies to the purchase of goods, professional services, and non-construction services. At the September 9, 2014 board meeting the Board of Trustees approved the ongoing maintenance and support of the SchoolDude software program for $40,000. The Maintenance & Operations Department would like to add the Capital Forecasting Direct Module of the SchoolDude Program for an additional $13,000. This module is designed to prioritize maintenance issues and forecast facility needs/requirements along with the estimated costs. Additionally, it will provide trend information and track warranty information for building components and individual equipment items. Fiscal Impact Statement: Funding for addition of the new module will be provided by the Maintenance & Operations departmental budget within the General Operating Fund.


student

Approved

2


Funding Source:


Budgetary Codes:

Fund



199 51 6245 00 905 99 0000 905

199 51 6245 00 910 99 0000 910

199 51 6245 00 912 99 0000 912

Attachments: Listing of Purchases Exceeding the Threshold Prepared By: Kenny Kendrick Approved By: Dr. Roger Brown Reviewed By: Dr. Guy Sconzo Date Submitted: November 18, 2014 11-11-14

Purchases Exceeding $50,000 in the Aggregate A1 - Purchases Over $50K Annually -- Support Services Division

Purchasing Method Type of Purchase Vendor NameFunding Source

Budgetary Code(s) (Budget Department Use Only)

Length of Commitment

Requesting Campus/Department

Annual Not to Exceed Amount

TCPN Purchasing Cooperative (Single Purchase)

Software:Captial Forecast Direct

SchoolDude General Fund199‐51‐6245‐00‐910‐99‐0000‐910199‐51‐6245‐00‐912‐99‐0000‐912199‐51‐6245‐00‐905‐99‐0000‐905

1 year or lessMaintenanceConstructionOperations

$13,000

1

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