humble independent school district “focus on …...independent school district with jpmorgan chase...

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, March 10, 2009 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

Hearing – 5:00 p.m. Section 551. 082 School District Disciplinary Matter and Information

About a Public School Student

• Hear and deliberate appeal involving expulsion of Humble ISD student - A

Hearing –5:30 p.m. Section 551. 082 School District Disciplinary Matter and Information

About a Public School Student

• Hear and deliberate appeal involving expulsion of Humble ISD student - B

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. Section 551.082 Student Expulsions 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

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• Salute to the Texas flag • Moment of Silence • 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

(Recognitions, thanks, and personal comments) • Comments by the Administration

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

• Elementary School #25 Boundaries Update • Bond Projects – Bond Sale Update

• Cabinet members

Cecilia Hawkins: Deputy Superintendent (HHS Vertical Team, KPHS Vertical Team International Baccalaureate)

Paula Almond: Associate Superintendent (AHS Vertical Team, KHS Vertical Team, AVID, High Schools of the Future Task Force)

Janet Orth Learning Support Services (Academics, Professional Development, Instructional Coaching, Science Grant, Kingwood College partnership planning)

Jim Parsons: Accountability (Curriculum Based Assessments, CWT, SWIS Data Analysis, Demographic Study Update, Needs Assessment, Process Mapping and Systems Review)

Janet Griffin: Human Resources (Employee Retention and Recruitment, Retire-Rehire program) Lynn Lynn: Finance Services (Budget Development, Process Mapping and Systems Review, FIRST Accountability)

Martha Buckner: Support Services (Facilities planning and maintenance, Transportation services, Safety, and Child Nutrition services)

Mike Drachenberg: Technology Services (Process Mapping and Systems Review, Instructional Technology training and enhancements)

Karen Perkins: Community Development (Learning support resources)

Karen Collier: Public Information (Communications and Teacher of the Year program)

Stephanie Rosenberg: General Counsel, (Contract Review, Legal Counsel)

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BOARD ACTION AGENDA

Action: Closed session

Consideration of and action on items addressed in closed session a) Approval of personnel recommendations b) Consideration student expulsions

c) Consideration of appeal involving expulsion of Humble ISD student-A d) Consideration of appeal involving expulsion of Humble ISD student-B

Action: Minutes

Consideration of minutes for the regular Board meeting held on February 3, 2009.

Action: Consent agenda

Consideration of items placed on the consent agenda

1. LEARNING REPORTS, CONSIDERATIONS AND PURCHASES

A. Action: Deaf Education Services

Consideration of Deaf Education Services ADMINISTRATION RECOMMENDATION

The Superintendent recommends that the Board of Trustees approve the Shared Services Arrangement for Deaf Education Services between Humble ISD and New Caney ISD.

2. GOVERNANCE REPORTS AND CONSIDERATIONS

A. Action: Calendar 2009-2010

Consideration of the School Calendar for 2009-2010

ADMINISTRATION RECOMMENDATION

The Superintendent recommends that the Board of Trustees approve Calendar Option A for the 2009-2010 school year.

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B. Action: Elementary School No. 25

Consideration of Naming Elementary School No. 25


The Superintendent recommends that the Board of Trustees approve Lakeshore Elementary School as the name for Elementary School No. 25.

C. Action: Middle School No. 8

Consideration of Naming Middle School No. 8


The Superintendent recommends that the Board of Trustees approve Woodcreek Middle School as the name for Middle School No. 8.

D. Action: Policy CV (LOCAL) Revisions

Consideration of Revisions to CV (LOCAL) Policy Regarding Purchasing Methods for Construction Projects


The Superintendent recommends that the Board of Trustees adopt the proposed revisions to policy CV ( LOCAL) regarding purchasing methods for construction projects.

3. FINANCIAL SERVICES REPORTS, CONSIDERATIONS AND PURCHASES

A. Action: Tax Refunds

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

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

B. Action: Waiver of P & I

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

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

C. Action: Extension of Bank Depository Contract

Consideration of Board Resolution Extending Bank Depository Contract for an Additional Two Year Term


The Superintendent recommends that the Board of Trustees approve the attached resolution extending the depository contract for funds of the Humble Independent School District with JPMorgan Chase Bank, N.A. for an additional two years beginning July 1, 2009 and ending June 30, 2011.

D. Action: Policy CDA (LOCAL)

Consideration of Changes to Investment Strategies, the Certification by Financial Counter-Parties and Sources of Training, and Adoption of the Written Statement Related to Policy CDA (LOCAL) ADMINISTRATION RECOMMENDATION

The Superintendent recommends that the Board of Trustees approve the recommended changes to the Investment Strategies, the Certification by Financial Counter-Parties, Sources of Training, and Adoption of the Written Statement related to Policy CDA (LOCAL).

E. Action: Budgetary Amendments

Consideration of Budgetary Amendments ADMINISTRATION RECOMMENDATION

The Superintendent recommends that the Board of Trustees approve budgetary amendments.

F. Action: Health Care Administration Service Provider

Consideration of Health Care Administration Service Provider


The Superintendent recommends that the Board of Trustees approve the selection of United Healthcare to provide Health Care Administration Services for the District’s Health Care Program.

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G. Report: Financial Services Reports:

Tax Collection – Information Only Cash & Investment – Information Only Revenue & Expenditures – Information Only 2009-10 Budget Development – Information Only

4. SUPPORT SERVICES REPORTS. CONSIDERATIONS AND PURCHASES

A. Action: Fall Creek Elementary Close Out

Consideration of Close Out and Final Payment Gamma Construction Company


The Superintendent recommends that the Board of Trustees approve the final payment of $547,611.00 for a total project cost of $10,937,115.00 to Gamma Construction Company for the construction of Fall Creek Elementary.

B. Action: CLC Renovations and Additions – CM at Risk

Consideration of Community Learning Center Renovations and Additions Construction Manager at Risk

ADMINISTRATION RECOMMENDATION The Superintendent recommends that the Board of Trustees approve the selection of Durotech, LP, as the Construction Manager at Risk for the renovations and additions at the Community Learning Center.

C. Action: Elementary School No. 26 – Building Commissioning

Consideration of Elementary #26 Building Commissioning


The Superintendent recommends that the Board of Trustees approve the selection of Bath Commissioning Corporation as the Building Commissioning Agent for Elementary #26.

D. Action: Turner Stadium Renovation – CM at Risk

Consideration of Approval of Braeburn Construction Company Ltd., LLP, as the Construction Manager at Risk for the Turner Stadium Renovation project

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The Superintendent recommends that the Board of Trustees approve the selection of Brae Burn Construction Company Ltd., LLP, as the Construction Manager at Risk for the renovations at Turner Stadium.

E. Action: MUD No. 342 Tap Fees

Consideration of Harris County Municipal Utility District No. 342 Tap Fees for Middle School No. 8

ADMINISTRATION RECOMMENDATION The Superintendent recommends that the Board of Trustees approve the payment of $535,795.75 to Harris County Municipal Utility District No. 342 for tap fees related to Middle School No. 8

5. BOARD REPORTS, CONSIDERATIONS AND PURCHASES

A. Discussion: Secondary Class Size

B. Update: Legislative Issues

C. Update: Associations and Committees

D. 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: March 5, 2009 S/_____________________________________

Keith 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 REGULAR MEETING OF THE BOARD OF TRUSTEES

The Humble Board of Trustees held the regular meeting on February 3, 2009 at 7:00 p.m. in the Board Room, 20200 Eastway Village Drive, Humble, Texas. Board Members Present: Dave Martin Dan Huberty Keith Lapeze Bonnie Longnion Charles Cunningham Brent Engelage Robert Scarfo Staff Members Present: Guy Sconzo, Peggy Young, Cecilia Hawkins, Paula Almond, Karen Collier, Janet Orth, Lynn Lynn, Martha Buckner, Jim Parsons, Mike Drachenberg, Janet Griffin, Karen Perkins, Stephanie Rosenberg, Shelley Vineyard, Kevin Yandell, Donna Boyd, Janice Himpele, Marilyn Farrell, Ida Schultz, Jennifer Eaton, Robin Young, Allen Miller, John Kripple Mike Townsend, Deborah Yocham, Carol Atwood, Nancy Morrison, Terre McKinney, Troy Kite, Krista Malstrom, Solomon Cook The Board met at 6:00 p.m. and adjourned to hear items posted for closed session at 6:00 p.m. The regular meeting was called back to order at 7:00 by Mr. Martin. QUESTIONS AND COMMENTS BY PATRONS OR EMPLOYEES OF THE DISTRICT

R. Sitton & J. Sitton – Update on Coach David Sitton – 40th Anniversary of Baseball Program at Humble High School K. Smith – Athletic Suspension of G. Smith G. Smith – Suspension of Athlete C. Wilson – E.S. #25 Boundaries L. Twomey & R. Morris – E.S. #25 Boundaries COMMENTS BY INDIVIDUAL BOARD MEMBERS

The Trustees expressed their gratitude for the continued celebration of “Board Appreciation” by students and staff. The Trustees thanked all patrons/employees attending the meeting and for bringing their ideas/concerns to their attention regarding boundaries.

Student

Approved

COMMENTS BY THE SUPERINTENDENT

Dr. Sconzo had no comments at this time. He stated he would save his comments for when board agenda items were discussed. ACTION ITEMS FROM CLOSED SESSION

Personnel - A motion was made by Dr. Longnion to approve the personnel recommendations as presented by administration as amended. The motion was seconded by Mr. Lapeze. The motion passed unanimously. Please see Personnel Recommendations on the following pages.

HUMBLE INDEPENDENT SCHOOL DISTRICT AMMENDED PERSONNEL RECOMMENDATIONS

February 3, 2009

RESIGNATIONS Campus Assignment Reason Eff. Date Carbuccia-Meister Michelle North Belt Elementary 4th grade Bilingual Health January 16, 2009 Countryman Randy Kingwood Park HS Band Personal January 16, 2009 Deck David Ross Sterling MS Special Education Higher Pay January 15, 2009 Gauthier Andrea Jack Fields Elementary 4th grade teacher Health January 28, 2009 Jackson Attaché Humble HS Algebra Health January 30, 2009 Lott Stacie Atascocita MS Assistant Principal Work closer to home January 23, 2009 Morrison Maria Summerwood Elementary Art Stay home with newborn baby January 9, 2009 Zelenske (Parker) Danielle Ross Sterling MS Science Certification Issues January 28, 2009 Parker Melanie Humble MS Math Personal January 23, 2009 Shcolnik Scott Humble HS Science Personal December 19, 2008 Tejeda Randolph River Pines Elementary 4th grade Bilingual Personal and Family reasons January 16, 2009 Thrower Kathleen ISC Bilingual Coach Moving to North Carolina February 27, 2009 Williams Karen Ross Sterling MS Nurse Personal January 15, 2009 RECOMMENDATIONS FOR PROFESSIONAL EMPLOYMENT Degree Certification Assignment Exp. Eff. Date Previous Emp. Humble High 001 Bouanane, Jislaine B.S./University of Houston ACP – Science (8-12) Environmental Science 4 years Jan. 12, 2009 Private Industry Harrison, Bennie Associate’s Degree/Troy University Non-certified position JR-ROTC 12 years Jan. 5, 2009 Private Industry Kingwood High 002 Erben, Laura B.S./Texas A&M University Math/Science (4-8) Math None Jan. 23, 2009 Recent Graduate Garcia, Regina B.A./University of Texas Secondary English (6-12) English 15 years Jan. 20, 2009 Private Industry Greer, Reagan B.A./Angelo State University Social Studies (4-8) Social Studies None Feb. 2, 2009 Recent Graduate Jackson, Tamara M.Ed./Prairie View A&M University Ed. Diagnostician (PK-12) Diagnostician 6 years Feb. 2, 2009 Houston ISD Johnson, Amy B.B.A./Texas A&M University Business Education (6-12) Technology Application 2 years Jan. 27, 2009 Spring ISD Humble Middle 041 Love, Pamela B.A./Sam Houston State University Eng/LA/Reading (4-8) ESL 2 years Jan. 8, 2009 Humble ISD Stephens, Bradford M.A./Prairie View A&M Special Education (EC-12) Special Education None Jan. 20, 2009 Private School Zavala, Daniel B.M./University of Houston Music (EC-12) Assistant Band Director None Jan. 12, 2009 Recent Graduate Kingwood Middle 042 Creech, Heather B.S./Lamar University Theatre Arts (6-12) Theatre Arts 4 years Jan. 30, 2009 Santa Fe ISD

Ross Sterling MS 048 Moser, Michael B.A./College of William and Mary Social Studies (4-8) Social Studies 1 year Jan. 22, 2009 Private Industry Lakeland Elementary 102 Guevara, Andrea B.S./Sam Houston State University Generalist (EC-4) Kindergarten 1 year Jan. 14, 2009 Private School Foster Elementary 104 Kowalis, Julieanne B.S./Univ. of TX Health Science Ctr. Registered Nurse Nurse None Jan. 30, 2009 Private Industry River Pines Elementary 123 Frank, Rashida B.S./McNeese State University Early Childhood Ed (PK-KG) Kindergarten 9 years Jan. 14, 2009 Denton ISD Itinerant Riojas, Eva M.S./Texas A&M University Ed. Diagnostician (EC-12) Diagnostician 3 years Feb. 2, 2009 Private Industry Stansbury, Tonya M.S.W./University of Texas-Arlington LSSP LSSP None Feb. 2, 2009 Private Industry RECOMMENDATION It is recommended that Brenda Murdock be appointed to the position of Technology Acquisition Specialist, effective February 2, 2009. Ms. Murdock is currently the owner of Humble Technology Services. University of Houston – M.Ed. (Educational Technology) Experience: 11 years

STUDENT EXPULSIONS A motion was made by Dr, Longnion to accept the student placement in an alternative education program as presented by the Superintendent as follows: A.Z., effective: 01-09-09; B.G., effective: 01-09-09; D.A., effective: 01-28-09 and L.L., effective: 01-28-09. Rescinded placement in an alternative education program as follows: A.L, effective 12-03-08. The motion was seconded by Mr. Cunningham. The motion passed unanimously. Cause No. C.A. 08-CV-01557; Global Data Systems v. Humble Independent School District A motion was made by Dr. Longnion that the Board of Trustees approve and execute the proposed settlement agreement as present in closed session. The motion was seconded by Mr. Lapeze. The motion passed unanimously. MINUTES FROM THE PREVIOUS MEETINGS

A motion was made by Mr. Lapeze to approve the minutes for the special Board meeting held on December 2, 2008. The motion was seconded by Mr. Cunningham. The motion passed with the vote six (6) for and one (1) abstention. Dr. Longnion abstained. A motion was made by Mr. Engelage to approve the minutes for the regular Board meeting held on December 9, 2008. The motion was seconded by Mr. Scarfo. The motion passed with the vote six (6) for and one (1) abstention. Mr. Lapeze abstained. A motion was made by Dr. Longnion to approve the minutes for the special Board meeting held on December 19, 2008. The motion was seconded by Mr. Engelage. The motion passed with the vote four (4) for and three (3) abstentions. Mr. Huberty, Mr. Lapeze and Mr. Scarfo abstained.

A motion was made by Dr. Longnion to approve the minutes for the regular Board meeting held on January 13, 2009. The motion was seconded by Mr. Lapeze. The motion passed unanimously. CONSENT AGENDA

After review, a motion was made by Dr. Longnion to approve the following board items by consent: Learning: A, B and C; Governance: A, B, C, D and E; Financial Services: A, B and C; Support Services: A and B. The motion was seconded by Mr. Cunningham. The motion passed unanimously. 1. LEARNING REPORTS, CONSIDERATIONS AND PURCHASES

A. Speech Therapy Services

Consideration of Speech Therapy Services The Superintendent recommends that the Board of Trustees approve the selection of Darlene Murrell to provide speech therapy services. Approved by consent.

B. Transcription Services

Consideration of Transcription Services

The Superintendent recommends that the Board of Trustees approve the selection of Visual Communication to provide transcription services. Approved by consent.

C. Textbook Waiver

Consideration of Textbook Waiver

The Superintendent recommends that the Board of Trustees approve the Textbook Waiver which will allow the District to purchase instructional materials and obtain reimbursement up to the State maximum cost for American Sign Language (ASL) textbooks. Approved by consent.

2. GOVERNANCE REPORTS, CONSIDERATIONS AND PURCHASES A. Election for Board of Trustees

Consideration of Calling an Election for Board of Trustees The Superintendent recommends that the Board of Trustees approve the Order calling for a Board of Trustees Election for Positions #1. #2 and #3 on May 9, 2009 as described in the Election Order For and Notice of Trustee Election. Approved by consent.

B. Policy FM (LOCAL)

Consideration of Revisions to Board Policy FM (Local) for No Pass / No Play

The Superintendent Recommends that the Board of Trustees approve revisions to Board policy FM (Local) to align the District’s student eligibility rules for extracurricular activities with the Student Handbook adopted from year to year. Approved by consent.

C. FDA (LOCAL) and FDB (LOCAL) Board Policy Amendments

Consideration of amending FDA (LOCAL) and FDB (LOCAL) Board Policy on General Transfers and Schools of Choice programs The Superintendent recommends that the Board of Trustees approve the amendments to FDA (LOCAL) and FDB (LOCAL) Board Policy on General Transfers and Schools of Choice Programs. Approved by consent.

D. Update 84

Consideration of Texas Association of School Boards (TASB) Policy Update #84

The Superintendent recommends that the Board of Trustees review updated (Legal) policies and act on (Local) policies as recommended in TASB Update #84, with the exception of local policy FDB. Approved by consent.

E. Local Board Complaint Policies Revisions

Consideration of Proposed Revisions to Local Board Complaint Policies DGBA, FNG, and GF The Superintendent recommends that the Board adopt the proposed revisions to Board policies DGBA (LOCAL), FNG (LOCAL) and GF (LOCAL). Approved by consent.

F. Policy CV (LOCAL) Revisions

This was an information item only and there was no discussion of the revisions to CV (Local) Policy regarding purchasing methods for construction projects.

G. Elementary Boundaries

Mr. Widmier reviewed Option 4 (the CBAC’s recommendation) Boundaries for Elementary School #25 with the Trustees. Following discussion, the Board of Trustees directed the CBAC/Administration to meet with a representative group of parents and patrons from Summerwood to try and develop a compromise boundary option for the attendance zone for ES#25.

3. FINANCIAL 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 petitions for tax refunds. Approved by consent.

B. Waiver of P & I

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

The Superintendent recommends that the Board of Trustees approve the request for waiver of penalty and interest on delinquent tax accounts. Approved by consent.

C. Budgetary Amendments

Consideration of Budgetary Amendments

The Superintendent recommends that the Board of Trustees approve budgetary amendments. Approved by consent.

4. SUPPORT SERVICES REPORTS, CONSIDERATIONS AND PURCHASES A. AHS Addition Close Out

Consideration of Close Out and Final Payment for the Atascocita High School Addition Project

The Superintendent recommends that the Board of Trustees approve the final payment of $430,719.02, for a total project cost of $8,614,380.42 to Prime Contractors, Inc., for the construction of the Atascocita High School addition. Approved by consent.

B. Emergency Management Technology Consultant

Consideration of Consultant for Emergency Management Technology Projects

The Superintendent recommends that the Board of Trustees approve the selection of Combs Consulting Group to provide consulting services for District-wide emergency management planning and technology projects.

Approved by consent.

5. BOARD REPORTS, CONSIDERATIONS AND PURCHASES A. Conduct for Students Involved in Extracurricular or Co-Curricular Activities

A motion was made by Mr. Lapeze for the Board of Trustees to consider the suspension of or revisions to Board Policy on "Conduct for Students Involved in Extracurricular or Co-Curricular Activities" for Non-School Related Incidents/Behaviors. The motion was seconded by Mr. Engelage. Following a lengthy discussion, the motion failed with the vote zero (0) for and seven (7) opposed. Mr. Martin, Mr. Huberty, Mr. Lapeze, Dr. Longnion, Mr. Cunningham, Mr. Engelage and Mr. Scarfo opposed.

B. Disclosure of Board of Trustee Training Hours

As required by law in calling the Trustee Election at this meeting, Mr. Martin presented the Board Training Report as follows:

• All seven Humble ISD Board members have completed the three hour of

team-building with their Superintendent.

• All seven Humble ISD Board members have completed the required orientation to the Texas Education Code.

• Mr. Brent Engelage and Mr. Robert Scarfo our newest Board members, have

received the required orientation to local procedures, Open Meetings Training and Public Information Act Training. Mr. Brent Engelage has completed the additional ten hours of continuing education required of all first-year Board members. Mr. Scarfo has not.

• One Humble ISD Board member has met or exceeded the requirement for an additional five hours of continuing education. Mr. Martin, Mr. Huberty, Mr. Lapeze and Dr. Longnion have not.

Mr. Martin, Mr. Huberty, Mr. Lapeze, Dr. Longnion and Mr. Scarfo intended to meet this requirement but due to Hurricane Ike, requirement was not met. They have until the second Saturday in May to fulfill this requirement.

C. Legislative Issues

• February 10, 2009 – Humble Area Chamber of Commerce trip to Austin to meet with elected officials regarding area concerns including school finance.

• February 12, 2009 – 6:00 p.m. – Next District Legislative Committee meeting in the Board Room.

• February 26, 2009 – PTA Council at the Capital – will meet with elected officials regarding school finance. This event is sponsored by local businesses.

D. Associations and Committees - There were no updates at this time.

E. Future Board business

• Re-Naming Humble High School’s Baseball Field • Class Size • Data Storage • March 26, 2009 – Special Board Workshop

There being no further business, the meeting was adjourned at 9:35 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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Meeting Date: March 10, 2009 Occasion:

Regular Meeting

Special Meeting /Workshop

Agenda Placement Learning Considerations Governance Considerations Financial Svcs. Considerations Support Svcs. Considerations

Agenda Item Type Administrative Report Action Item Information

/ Discussion Item

District Target References (Check all that apply): Achieve Academic Excellence Number of Board Meetings item Plan for Our Future is planned to be presented: Maximize Our Financial Resources This Agenda Only Develop and Retain Our People Other, Explain:

Title: Deaf Education Services

Consideration of Deaf Education Services

Superintendent’s Recommendation: The Superintendent recommends that the Board of Trustees approve the Shared Services Arrangement for Deaf Education Services between Humble ISD and New Caney ISD. Background /Impact Information: TEA has mandated that districts now be part of a Shared Services Arrangement (SSA) for Deaf Education (AI) Services which include 2 or more school districts. It is our plan to become the fiscal agent for Humble Regional Day School Program for the Deaf which will now include Humble ISD and New Caney ISD. Other options considered were to join an existing SSA and transport our students out of district. This option may have resulted in a changed delivery of service which would have limited the inclusion of Humble ISD students in the general education setting. The SSA has been developed and reviewed by Humble ISD legal counsel as well as Thompson & Horton LLP. This arrangement will be in effect starting July 1, 2009. Fiscal Impact Statement: No increase in operating costs for this service arrangement. Cost: Budgetary Codes:

Recurring Fund Func Object Sub-Object Org PIC One-Time - - - - -

- - - - - Funding Source:

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

Attachments: Shared Services Arrangement Campus/Department Submitting Form: Educational Support Services Date Submitted: February 16, 2009

Board of Trustees Agenda Item

Student

Approved

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Resource Personnel: Mindy LaCour, 281-641-8404, [email protected] Sally LaRue, 281-641-8402, [email protected] Janet Orth, 281-641-8115, [email protected]

1


Regular Meeting




/ Discussion Item

District Target References (Check all that apply): Achieve Academic Excellence Number of Board Meetings item Plan for Our Future is planned to be presented: Maximize Our Financial Resources This Agenda Only Develop and Retain Our People Other, explain:

Title: Calendar 2009-2010

Consideration of the School Calendar for 2009-2010

Superintendent’s Recommendation: The Superintendent recommends that the Board of Trustees approve Calendar Option A for the 2009-2010 school year. Background/Impact Information: The Texas Legislature requires school districts to begin the school year no earlier than the fourth Monday in August. Community preferences are gathered in a survey every year. Over the years, the results consistently show a clear preference for a week-long Spring Break, a two week Winter Break, and for the end of the first semester to be before classes are dismissed for Winter Break. Calendar Option A was preferred by 80% of the approximately 3,000 who responded to the survey. This calendar includes a three day Thanksgiving Break, a two week Winter Break, a one week Spring Break, as well as holidays for Labor Day, Martin Luther King Day, Good Friday, Memorial Day and Independence Day. This option ends the first semester before Winter Break. Calendar Option A includes: *177 student days *187 teacher work days including 10 professional growth days Fiscal Impact Statement: Cost: Budgetary Codes:



General Fund


Student

Approved

2

Grant Funds (Specify): Fiscal Year: Bond Funds (Specify): Amendment Required? Yes No Other Funds ( Specify):

Attachments: Calendar Option A Campus/Department Submitting Form: Public Information Date Submitted:February 12, 2009 Resource Personnel: Karen Collier, 281-641-8200, [email protected]

July ‘09 S M Tu W Th F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

September S M Tu W Th F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

October S M Tu W Th F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

November S M Tu W Th F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

December S M Tu W Th F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

March S M Tu W Th F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

May S M Tu W Th F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

April S M Tu W Th F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

June S M Tu W Th F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

July 1 2 3 4 5 6 7 8 9 10

January S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

February S M Tu W Th F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

2009

2010

August S M Tu W Th F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

Humble ISD2009-10 Calendar

School ClosingsIn the event school must be cancelled due to inclement weather, information will be posted on the district website, with local radio/TV stations, and notices will be sent via Your Schools email system. Register for Your Schools announcements and alerts at www.humble.k12.us.tx.

Calendar KeyHoliday Beginning/End Semester State-mandated testing-TBA

Professional Growth Day, Student Holiday

Check our website at www.humble.k12.tx.us

Early Dismissal

Elementary Schools

To be announced.....

Middle Schools


High Schools


School HoursTo be announced.....

Important Dates Option A

Grading PeriodsSemester 1 .........Aug. 24- Dec. 18.........80 days/87 teachersSemester 2 .........Jan. 5 - June 2 .............97 days/100 teachers

9 week grading periods (elementary)To be announced.....

6 week grading periods (secondary)


State Mandated Testing DatesTo be announced.....

Staff Professional Growth / WorkdaysAugust 17-21 January 4 April 5October 12 February 15 June 3

Holidays Independence Day (celebrated) .................... July 3, 2009Labor Day ................................................... Sept.7Thanksgiving ............................................. Nov. 25-27Winter Break ................................................... Dec. 21-Jan. 3MLK Day ..................................................Jan. 18Spring Break ............................................... March 15-19Good Friday ................................................ April 2Memorial Day ............................................. May 31Independence Day (celebrated) ................... July 5, 2010

option a

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Regular Meeting




/ Discussion Item

District Target References (Check all that apply): Achieve Academic Excellence Number of Board Meetings item Plan for Our Future is planned to be presented: Maximize Our Financial Resources this agenda only Develop and Retain Our People other, explain:

Title: Elementary School #25

Consideration of Naming Elementary School #25

Superintendent’s Recommendation: The Superintendent recommends that the Board of Trustees approve Lakeshore Elementary as the name for the Elementary #25 Background/Impact Information: A website was created to gather input from students, parents and community to name Elementary School #25. After all suggestions were reviewed the favored name for Elementary #25 is Lakeshore Elementary. The architect, PBK Architects will be able to use the actual name for Elementary #25 in planning documents as well as ordering signage for the school. Additionally, Elementary #25 principals will be able to open bank accounts and set up activity funds for the school. Fiscal Impact Statement: Cost: Budgetary Codes:

Recurring Fund Func Object Sub-Object Org PIC

One-Time - - - - - - - - - - Funding Source:

General Fund Grant Funds (Specify): Fiscal Year:

Bond Funds (Specify): Amendment Required? Yes No

Other Funds ( Specify):


Student

Approved

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Attachments: Elementary School #25 Naming of School Results - Attachment 1 Campus/Department Submitting Form: Deputy Superintendent's Office Date Submitted: March 2, 2009 Resource Personnel: Paula Almond, Associate Superintendent 281-641-8110 [email protected]

Here are the three choices for the name of Elementary #25. Choose your favorite!

Total Number of Responses for this Item: 641

Attachment 1 1 of 2 pages

Now you can choose the mascot you like best! Lemur Leopard

Total Number of Responses for this Item: 641

Attachment 12 of 2 pages

1


Regular Meeting




/ Discussion Item


Title: Middle School #8

Consideration of Naming of Middle School #8

Superintendent’s Recommendation: The Superintendent recommends that the Board of Trustees approve Woodcreek Middle School as the name for Middle School #8. Background/Impact Information: A website was created to gather input from students, parents and community to name Middle School #8. After all suggestions were reviewed the favored name for Middle School #8 is Woodcreek Middle School. The architect, Joiner Partnership, Inc. will be able to use the actual name for Middle School #8 in planning documents as well as ordering signage for the school. Additionally, Middle School #8 Principals and district staff will be able to open bank accounts and set up activity funds for the school. Fiscal Impact Statement: Cost: Budgetary Codes:







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Attachments: Middle School #8 Naming of School Results - Attachment 1 Campus/Department Submitting Form: Deputy Superintendent's Office Date Submitted: March 2, 2009 Resource Personnel: Paula Almond, Associate Superintendent 281-641-8110 [email protected]

Choose the MASCOT you would like for Middle School #8

LIONS 255

HAWKS 234

RAVENS 225

Choose the COLOR SCHEME you like best.

Choose your favorite NAME for Middle School #8

WOODCREEK 334

LAKEWAY 203

PINE RIDGE 177RED/BLACK 265

BLACK/GOLD 243

GREEN/GOLD 206

WEB SURVEY RESULTS - MIDDLE SCHOOL #8TOTAL # of RESPONSES, 714

Attachment 1

1


Regular Meeting




/ Discussion Item


Title: Revisions to Policy CV (LOCAL)

Consideration of Revisions to Policy CV (LOCAL) Regarding Purchasing Methods for Construction Projects Superintendent’s Recommendation: The Superintendent recommends that the Board adopt the proposed revisions to Policy CV (LOCAL) regarding purchasing methods for Construction Projects. Background/Impact Information: The Texas Education Code requires school districts to use one of seven purchasing methods when awarding a contract valued at $25,000 or more. These purchasing methods are: (1) competitive bidding; (2) competitive sealed proposals; (3) an interlocal contract; (4) a design / build contract; (5) a construction manager agent or at-risk for contracts to construct, rehabilitate, alter, or repair facilities; (6) a job order contract for the minor construct, rehabilitate, alter, or repair facilities; or (7) the reverse auction procedure. The Education Code also provides that when a school district awards a construction contract, it must determine the purchasing method that provides the best value for the district before advertising on the project. The Board previously determined that the competitive sealed proposal process was the delivery/contract award process that provided the best value to the district in awarding construction contracts valued at $25,000 or more. The Board made this determination through the CV (LOCAL) policy. According to that policy, the Board may adopt another project delivery/contract award method only if, prior to advertising, the Superintendent recommends and the Board approves a different method that is believed to provide a better value to the District in that particular case. The recommended revisions to policy CV (LOCAL) maintain the competitive sealed proposal method as the preferred method for construction projects valued between $25,000 and $999,999. However, the Superintendent recommends a policy revision to reflect the District's current experiences on larger construction projects valued at $1,000,000 or more. The District has used the construction


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manager at-risk method on its four most recent large construction projects. The administration believes that this method provides the best value to the District for a variety of reasons. The CM At-Risk method allows the district to select a general contractor early in the design phase of the project, which in turn permits the participation of the general contractor as part of the project team from design through construction. The contractor's early participation has the benefit of the contractor assisting the architect and district in cost effective scheduling and/or construction recommendations, which may increase District savings derived through value engineering and preconstruction design decisions, and allows the contractor to develop a guaranteed maximum price for the project. The District believes that the CM At-Risk method provides the best value for the district on larger scale construction projects. Furthermore, the Superintendent recommends a revision to the CV (LOCAL) policy that will clarify that the practice of using a job order contract, particularly through a cooperate purchasing arrangement such as TCPN, provides the best value for the District on minor, recurrent contracts to construct, alter, repair or rehabilitate district facilities. The proposed revisions are redlined on that Attachment to this agenda item. Fiscal Impact Statement: Cost: Budgetary Codes:




Attachments: Revised CV (LOCAL) (Redlined) Campus/Department Submitting Form: Support Services Date Submitted: February 20, 2009 Resource Personnel: Martha Buckner 281.641.8712 [email protected] Stephanie Rosenberg 281.641.8008 [email protected]

Humble ISD 101913 FACILITIES CONSTRUCTION CV (LOCAL)

DATE ISSUED: 8/8/2005 1 of 2 LDU-32-05 CV(LOCAL)-X

The Superintendent shall be responsible for establishing proce-dures that ensure that all school facilities within the District comply with applicable laws and local building codes.

For each construction project that is estimated to cost $2 million or more, the Board shall approve the selection of the architect.

For construction projects that are estimated to cost less than $2 million, the Superintendent shall approve the selection of the archi-tect from within the pool of architects that have been previously approved by the Board.

The competitive sealed proposal process is deemed the project delivery/contract award method providing the best value to the Dis-trict on construction projects costing between $25,000 and $999,999, except that job order contracts, including job order con-tracts through cooperative purchasing arrangements, are deemed the project delivery / contract award method providing the best value to the District for the minor construction, repair, rehabilitation, or alteration of a district facility where such work is recurring in na-ture, but the delivery times are indefinite and indefinite quantities. The construction manager at-risk process is deemed the project delivery / contract award method providing the best value to the District on construction projects costing $1,000,000 or more. The Board may adopt another project delivery/contract award method only if, prior to advertising, the Superintendent recommends and the Board approves a different method that is believed to provide a better value to the District in that particular case.

The Superintendent or designee shall administer all construction projects.

The Superintendent shall keep the Board informed concerning construction projects and also shall provide information to the gen-eral public.

Change orders costing $25,000 or more, in the aggregate, shall be approved by the Board prior to any changes being made in the ap-proved plans or the actual construction of the facility. If the Super-intendent, however, determines that such prior approval unrea-sonably delays construction, the change orders shall be ratified by the Board at the earliest opportunity.

Change orders costing less than $25,000, in the aggregate, shall be approved by the Superintendent or designee prior to any changes being made in the approved plans or the actual construc-tion of the facility.

On construction work and/or supervision of such work costing $2 million or more, final payment shall not be made until the work is

COMPLIANCE WITH LAW

SELECTION OF ARCHITECTS

CONSTRUCTION CONTRACTS

PROJECT ADMINISTRATION

CHANGE ORDERS

FINAL PAYMENT

Deleted: or more.

Deleted:

Humble ISD 101913 FACILITIES CONSTRUCTION CV (LOCAL)

DATE ISSUED: 8/8/2005 2 of 2 LDU-32-05 CV(LOCAL)-X

ADOPTED:

substantially completed, accepted by the Superintendent or desig-nee, and ratified by the Board.

On construction work and/or supervision of such work costing less than $2 million, final payment shall not be made until the work is substantially completed and accepted by the Superintendent or designee.

Whenever $100,000 or more has been expended from the owner’s contingency, final payment for construction work shall not be made until it is reviewed by the District’s internal auditor and ratified by the Board.

Whenever less than $100,000 has been expended from the owner’s contingency, final payment for construction work shall not be made until it is reviewed by the District’s bond accountant, con-struction staff and architect, and ratified by the Superintendent.

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Regular Meeting




/ Discussion Item


Title: Tax Refunds

Consideration of Petitions for Refunds in Excess of $500

Superintendent’s Recommendation: The Superintendent recommends that the Board of Trustees approve the petitions for tax refunds. Background /Impact Information: 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. If the Board does not approve this consideration, the District will not be in compliance. If approved, the total effect of the refund(s) will result in a reduction of total collections received of $198,304.96. Overpayments are recorded as a liability on the general ledger upon receipt and, therefore, do not cause a decrease in recorded revenue when refunded.


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Fiscal Impact Statement: Cost:

Recurring One-Time

Funding Source:


Attachments: Summary of Petitions for Refunds Campus/Department Submitting Form: Tax Office/Financial Services Date Submitted: February 27, 2009 Resource Personnel: Janice Himpele 281-641-8185 [email protected] Lynn Lynn 281-641-8014 [email protected]

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

Reason for Refund Year Property Description Account No. Refund Amount

Overpayment (3) 2008 TR 11B-4 040-158-090-0264 $677.37ABST 2 V BLANCO

Overpayment (3) 2008 TR 17 040-228-000-0070 $1,507.91ABST 26 D HARRIS

Overpayment (3) 2008 TR 4P 040-228-000-0597 $64,450.66ABST 26 D HARRIS

Overpayment (3) 2008 TR 4P-1 040-228-000-0602 $1,791.36ABST 26 D HARRIS


Overpayment (3) 2008 TR 4P-3 040-228-000-0604 $856.34ABST 26 D HARRIS




Overpayment (3) 2008 TRS 1A & 2A 061-069-000-0077 $868.65WOODLAWN ACRES

Overpayment (1) 2008 LT 36 BLK 4 096-436-000-0036 $881.60FOREST COVE SEC 7 U/R

Overpayment (1) 2008 LT 2 IN RES B BLK 2 107-788-002-0002 $2,942.93KINGWOOD LAKE VLG 1 U/R R/P

Overpayment (1) 2008 LT 32 BLK 46 108-522-000-0032 $1,806.98WOODLAND HILLS VILLAGE SEC 8

Overpayment (1) 2008 UNIT 1A BLDG 10 105-567-010-0001 $867.56INTERCONTINENTAL VILLAGE T/H

Overpayment (3) 2008 LT 12 BLK 15 109-759-000-0012 $670.94PINEHURST OF ATASCOCITA SEC 4

Overpayment (1) 2008 LT 44 BLK 58 110-536-000-0044 $3,298.99BEAR BRANCH VILLAGE SEC 5

Overpayment (1) 2008 LT 23 BLK 16 110-818-000-0023 $2,320.86PINEHURST OF ATASCOCITA SEC 5

Overpayment (1) 2008 LT 28 BLK 8 112-653-000-0028 $1,457.98ATASCOCITA SOUTH SEC 1

Overpayment (1) 2008 LT 2 BLK 13 114-350-013-0002 $1,285.45OAKS OF ATASCOCITA SEC 3

Overpayment (1) 2008 LT 65 BLK 18 114-946-018-0065 $1,438.83ATASCOCITA FOREST SEC 8 R/P

Overpayment (1) 2008 LT 4 BLK 21 OLYMPIC VILLAGE 115-236-021-004 $2,637.20WALDEN ON LAKE HOUSTON PH 2

Overpayment (1) 2008 LT 15 BLK 3 116-764-003-0015 $1,775.31ATASCOCITA TIMBERS SEC 1

Overpayment (2) 2008 LT 28 AMENDED R/P 117-709-000-0028 $2,088.95BROWNSTONE SQUARE-KINGWOOD

Overpayment (3) 2008 LT 7 BLK 3 118-642-003-0007 $526.17PARK AT ATASCOCITA FOREST SEC 1

Overpayment (1) 2008 LT 16 BLK 3 124-207-003-0016 $1,414.54FALL CREEK SEC 8


Overpayment (1) 2008 LT 36 BLK 2 124-330-002-0036 $5,852.00EAGLE SPRINGS SEC 9

Overpayment (2) 05-08 LT 13 BLK 1 124-491-001-0013 $25,077.22FALL CREEK SEC 10

Overpayment (1) 2007 LT 25 BLK 2 124-842-002-0025 $749.44BARRINGTON SEC 1

Overpayment (1) 2008 LT 4 BLK 4 125-528-004-0004 $2,964.00SUMMERWOOD SEC 22


Overpayment (1) 2008 LT 51 BLK 4 126-449-004-0051 $506.07SUMMERWOOD SEC 24 AMEND

Overpayment (1) 2008 LT 51 BLK 1 127-904-001-0051 $976.03LAUREL PLACE SEC 2

Overpayment (1) 2008 LT 3 BLK 3 128-394-003-0003 $4,301.66SUMMERWOOD SEC 29

Overpayment (1) 2008 LT 1 BLK 1 128-401-001-0001 $1,900.84WOODLAND PINES SEC 7 AMEND

Overpayment (1) 2008 LT 20 BLK 2 128-680-002-0020 $3,377.70WATERS EDGE SEC 2

Overpayment (1) 2008 LT 18 BLK 1 128-681-001-0018 $925.13WATERS EDGE SEC 3

Overpayment (1) 2008 LT 22 BLK 1 128-681-001-0022 $925.13WATERS EDGE SEC 3

Overpayment (1) 2008 LT 28 BLK 1 128-681-001-0028 $576.40

Attachment - Refund Over $500

February 28, 2009

Refunds 2-28-09.xls 1 2/26/20091:24 PM

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

Reason for Refund Year Property Description Account No. Refund Amount

Attachment - Refund Over $500

February 28, 2009

WATERS EDGE SEC 3Overpayment (1) 2008 LT 12 BLK 12 128-681-002-0012 $616.74

WATERS EDGE SEC 3Overpayment (1) 2008 LT 19 BLK 2 128-879-002-0019 $631.96

SUMMERWOOD SEC 26Overpayment (1) 2008 LT 14 BLK 1 129-815-001-0014 $1,384.43

FALL CREEK SEC 29Overpayment (3) 2008 LT 7 BLK 1 129-723-001-0007 $2,019.66

SUNSET RIDGE SEC 4Overpayment (1) 2008 2002 SILVERCREEK 28X54 BGE/BRN 600-000-103-8623 $732.53

SER #SCH01026302A/BOverpayment (2) 2008 PAID WRONG TAX ENTITY 999-999-999-9993 $1,609.38

Overpayment (2) 2008 PAID WRONG TAX ENTITY 999-999-999-9999 $658.74

Totals $198,304.96

(1) Double payment: two payments made on the same account.(2) Payment made in error by property owner or mortgage company.(3) Taxpayer paid incorrect amount.

Refunds 2-28-09.xls 2 2/26/20091:24 PM

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Regular Meeting




/ Discussion Item


Title: Waiver of P & I

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

Superintendent’s Recommendation: The Superintendent recommends that the Board of Trustees approve the requests for waiver of penalty & interest on delinquent tax accounts. Background /Impact Information: 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 waiver of penalties and interest. The taxpayers on the attached schedule 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 these waivers 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). If the Board does not approve the recommendation to grant the requests for waiver of penalty and interest, the District will not be in compliance. If approved, the total effect of the requests for waiver of penalty and interest results in a loss of $2,302.53. Fiscal Impact Statement: Cost:

Recurring One-Time


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

Attachments: Summary of Requests for Waiver of Penalty and Interest on Delinquent Taxes Campus/Department Submitting Form: Tax Office/Financial Services Date Submitted: February 27, 2009 Resource Personnel: Janice Himpele 281-641-8185 [email protected] Lynn Lynn 281-641-8014 [email protected]

Attachment - Waiver of P&IHumble Independent School District

Summary of Requests for Waiver of Penalty and Interest on Delinquent TaxesFebruary 28, 2009

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

Sec. 1.08 Timeliness of Action A 083-307-000-0005 3548 01/31/09 02/24/09 Sworn Affidavit 17.98$

Sec. 1.08 Timeliness of Action B 083-307-000-0007 3549 01/31/09 02/24/09 Sworn Affdavit 13.74$

Sec.1.08 Timeliness of Action C 114-568-019-0024 6742 01/22/09 02/20/09 Sworn Affidavit 33.45$

Sec. 1.08 Timeliness of Action D 114-957-020-0002 8544 12/31/08 02/20/09 Sworn Affidavit 405.14$

Sec. 33.011 Waiver of P&I E 115-465-000-0148 01/06/09 HCAD 38.78$

Sec. 1.08 Timeliness of Action F 115-985-029-0092 1513 01/22/09 02/25/09 Sworn Affidavit 426.18$

Sec. 33.011 Waiver of P&I G 116-055-000-0010 02/04/09 HCAD 1,082.52$

Sec. 1.08 Timeliness of Action H 117-871-001-0015 5502 01/26/09 02/13/09 Sworn Affidavit 161.90$

Sec. 1.08 Timeliness of Action I 125-115-002-0025 1431 01/31/09 02/20/09 Sworn Affidavit 122.84$

Total 2,302.53$

Waiver of P&I 2-28-09.xls 1 2/26/20091:28 PM

1

Meeting Date: March 10, 2009

Occasion: Regular Meeting


Agenda PlacementLearning Considerations Governance Considerations Financial Svcs. Considerations Support Svcs. Considerations


/ Discussion Item

District Target References (Check all that apply): Achieve Academic Excellence Number of Board Meetings itemPlan for Our Future is planned to be presented: Maximize Our Financial Resources This Agenda Only Develop and Retain Our People Other, Explain:

Title: Extension of Bank Depository Contract

Consideration of Board Resolution Extending Bank Depository Contract for an

Additional Two Year Term

Superintendent’s Recommendation: The Superintendent recommends that the

Board of Trustees approve the attached resolution extending the depository contract for funds of the Humble Independent School District with JPMorgan Chase Bank, N.A. for an additional two years beginning July 1, 2009 and ending June 30, 2011.

Background /Impact Information: The Texas Education Code, Section 45.205 states: “…the depository bank when selected shall serve for a term of two years and until its successor is selected and has qualified. A school district and the district’s depository bank may agree to extend a depository contract for two additional two-year terms…The contract term and any extension must coincide with the school district’s fiscal year.”

The bid for depository services for the 2005-2007 biennium was awarded to JPMorgan Chase Bank at the regular board meeting on April 12, 2005. The objectives for selection of the depository service were based on the following criteria: banking services; electronic banking services offered; financial strength of the institution; earnings potential in different account structures; terms and capabilities for services; experience in providing depository services to similar clients; implementation and conversion costs; internet capabilities; and customer service. The Board of Trustees approved a resolution extending this contract for another two years (July 2007 to June 30, 2009) at the regular February 13, 2007 meeting.

The Finance Department continues to be very pleased with the increased levels of control and operating efficiencies achieved since implementation of the JPMorgan Chase ACCESS internet banking products under the current contract. Additionally, JPMorgan Chase continues to effectively assist the District in implementation of new products such as Payroll processing and Lockbox Services which are allowing us to achieve additional efficiencies.


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Fiscal Impact Statement:Cost: Budgetary Codes:

Recurring Fund Func Object Sub-Object Org PICOne-Time - - - - -



Attachments: Board Resolution

Campus/Department Submitting Form: Financial Services

Date Submitted: February 16, 2009

Resource Personnel: Kevin Yandell 281-641-8084 [email protected] Lynn Lynn 281-641-8014 [email protected]

1


Regular Meeting




/ Discussion Item


Title: Policy CDA LOCAL

Consideration of: Changes to Investment Strategies, Certification by Financial Counter-Parties, Sources of Training, and Adoption of Written Statement related to Policy CDA LOCAL

Superintendent’s Recommendation: The Superintendent recommends that the Board of Trustees approve the recommended changes to the Investment Strategies, Certification by Financial Counter-Parties, Sources of Training and Adoption of the Written Statement related to Policy CDA LOCAL. Background /Impact Information: 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 – Attachment 1 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 list of qualified brokers that are authorized to engage in investment transactions with the District at least annually. During the annual review of our Investment Policy we noted no changes to Policy CDA LOCAL. Upon review of our Investment Strategies (Attachment 3), we noted only one change with regard to the “Other Comments” section for the Internal Service Fund – the name TriSurant has been replaced by Health First and Broadspire. As required by the changes adopted in Update 84 at the regular February board meeting, we have revised the Certification by Financial Counter Parties (Attachment 4) to identify the firms that are still eligible because they are in good standing with the Financial Industry Regulatory Authority (FINRA), those that are not eligible for various reasons, and those who did not respond to our request for certification in 2008. All of the investment options listed as still active are identifiable on the FINRA website. The only change deemed necessary during the current year review was to delete one of the names from the Certification by Financial Counter-Parties because the entity is now a subsidiary of JPMorgan Chase and we no longer


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execute transactions with Banc One. Approval of these changes and adoption of the written statement will allow the District to remain in compliance with State and local policy. Fiscal Impact Statement: Cost:

Recurring One-Time

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

Attachments: Policy CDA LEGAL - Attachment 1 Policy CDA LOCAL - Attachment 2 Investment Strategies - Attachment 3 Certification by Financial Counter-Parties and Sources of Training – Attachment 4 Glossary - Attachment 5 Written Statement - Attachment 6 Campus/Department Submitting Form: Finance Department Date Submitted: February 2, 2009 Resource Personnel: Kevin Yandell 281-641-8084 [email protected] Lynn Lynn 281-641-8014 [email protected]

Humble ISD 101913 Attachment 1OTHER REVENUES CDAINVESTMENTS (LEGAL)

DATE ISSUED: 11/5/2008 1 of 11UPDATE 84 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 ap-proved by the Board. The investment policies must primarily em-phasize safety of principal and liquidity and must address invest-ment 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 Dis-trict’s funds may be invested;

2. The maximum allowable stated maturity of any individual in-vestment owned by the District;

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

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

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

Gov’t Code 2256.005(b)

The Board shall review its investment policy and investment strate-gies not less than annually. The Board shall adopt a written in-strument stating that it has reviewed the investment policy and in-vestment 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 con-trols 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 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 finan-cial requirements of the District;

WRITTEN POLICIES

ANNUAL REVIEW

ANNUAL AUDIT

INVESTMENT STRATEGIES



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 af-fairs, 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 man-ner the funds of the investing entity. Authority granted to a person to invest the District’s funds is effective until rescinded by the Dis-trict 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 offi-cer 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 treas-urer or chief financial officer and the investment officer of the Dis-trict shall attend at least one training session from an independent source approved either by the Board or by a designated invest-ment committee advising the investment officer. This initial training must contain at least ten hours of instruction relating to their re-spective responsibilities under the Public Funds Investment Act. Gov’t Code 2256.008(a)

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 and receive not less than ten hours of instruc-tion relating to investment responsibilities under the Public Funds Investment Act from an independent source approved by the Board

INVESTMENT OFFICER

INVESTMENT TRAINING

INITIAL

WITHIN A TWO-YEAR PERIOD



or a designated investment committee advising the investment offi-cer. If the District has contracted with another investing entity to invest the District’s funds, this training requirement may be satis-fied by having a Board officer attend four hours of appropriate in-struction in a two-year period. Gov’t Code 2256.008(a), (b)

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

Investments shall be made with judgment and care, under prevail-ing circumstances that a person of prudence, discretion, and intel-ligence would exercise in the management of his or her own af-fairs, 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 pru-dence 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 relation-ship with a business organization offering to engage in an invest-ment transaction with the District shall file a statement disclosing that personal business interest. An investment officer who is re-lated within the second degree by affinity or consanguinity, as de-termined by Government Code Chapter 573, to an individual seek-ing 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 busi-ness relationship with a business organization if:

STANDARD OF CARE

PERSONAL INTEREST



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 or-ganization during the previous year investments with a book value of $2,500 or more for the personal account of the in-vestment 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 offi-cers.

3. Contain a summary statement for each pooled fund group (i.e., each internally created fund in which one or more ac-counts are combined for investing purposes). The report must be prepared in compliance with generally accepted ac-counting principles and must state:

a. Beginning market value for the reporting period;

b. Additions and changes to the market value during the period;

c. Ending market value for the period; and

d. Fully accrued interest for the reporting period.

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

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.

QUARTERLY REPORTS



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, in-vestment 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 re-ported 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 Dis-trict. Gov’t Code 2256.025

The Board may purchase, sell, and invest its funds and funds un-der 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 Ad-visers Act of 1940 (15 U.S.C. Section 80b-1 et seq.) or with the State Securities Board to provide for the investment and manage-ment 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; collateral-ized mortgage obligations directly issued by a 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; ob-

SELECTION OF BROKER

AUTHORIZED INVESTMENTS



ligations of states, agencies, counties, cities, and other politi-cal 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 pay-ments on the outstanding principal balance of the under-lying 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 fi-nal 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 de-pository institution that has its main office or a branch office in Texas that is guaranteed or insured by the FDIC or its suc-cessor 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 en-tity. Gov’t Code 2256.010(a)

In addition to the authority to invest funds in certificates of de-posit 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 deposi-tory institution that has its main office or a branch office in this state and that is selected by the District;

b. The depository institution selected by the District ar-ranges for the deposit of the funds in certificates of de-



posit in one or more federally insured depository institu-tions, 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;

d. The depository institution selected by the District acts as custodian for the District with respect to the certificates of deposit issued for the account of the District entity; and

e. At the same time that the funds are deposited and the certificates of deposit are issued for the account of the District, the depository institution selected by the District receives an amount of deposits from customers of other federally insured depository institutions, wherever lo-cated, that is equal to or greater than the amount of the funds invested by the District through the depository in-stitution.


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 de-fined termination date, are secured by obligations of the United States or its agencies and instrumentalities, are pledged to the District, held in the District’s name, and depos-ited with the District or a third party selected and approved by the Board, and placed through a primary government securi-ties 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 deliv-ered. Money received by the District under the terms of a re-verse security repurchase agreement shall be used to acquire additional authorized investments, but the term of the author-ized investments acquired must mature not later than the ex-piration 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 per-cent 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 continu-ously rated by at least one nationally recognized in-vestment rating firm at not less than A or its equiva-lent; 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 securi-ties 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 recog-nized 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 or-ganized 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 informa-tion 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 Com-mission;

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, regard-ing authorized investments (Public Funds Investment Act);

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

e. Conform to the requirements in Government Code Sec-tion 2256.016(b) and (c) relating to the eligibility of in-vestment 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 Section 2256.009(a)(1), excluding those obliga-



tions described by Section 2256.009(b), in an amount at least equal to the amount of bond proceeds invested un-der the contract.

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

Bond proceeds, other than bond proceeds representing re-serves 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 in-vestment 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 sepa-rate providers with no material financial interest in the bonds from which proceeds were received.

c. The District must purchase the highest yielding guaran-teed investment contract for which a qualifying bid is re-ceived.

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 rea-sonably expected to be paid to third parties in connec-tion 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 au-thorizes the investment in the particular pool by resolution. Gov’t Code 2256.016, 2256.019

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

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

CHANGE IN LAW

SELLERS OF INVESTMENTS



the District to invest or manage the District’s investment portfolio. For purposes of this section, a business organization includes in-vestment pools and an investment management firm under con-tract 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 Dis-trict and the business organization substantially to the effect that the business organization has:

1. Received and thoroughly reviewed the District investment pol-icy; and

2. Acknowledged that the business organization has imple-mented reasonable procedures and controls in an effort to preclude investment transactions conducted between the Dis-trict and the organization that are not authorized by the Dis-trict’s policy, except to the extent that this authorization is de-pendent 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 au-thorized 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 un-der terms of use specified by the donor are not subject to the re-quirements 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 101913 Attachment 2OTHER REVENUES CDAINVESTMENTS (LOCAL)

DATE ISSUED: 11/5/2008 1 of 7UPDATE 84 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, maintain liquidity, and optimize inter-est earnings.

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

1. Operating Funds

2. Trust & Agency Funds

3. Internal Service Funds

4. Debt Service and Reserve Funds

5. Capital Projects Funds

The purpose of this investment policy is to comply with the Public Funds Investment Act Chapter 2256 of the Texas Government Code, which requires that the District annually adopt a written in-vestment 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 judi-cious 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 pol-icy is to ensure that District financial assets are properly safe-guarded, 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 vola-tility. 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 con-taining operating funds) shall have as their primary objectives safety, assurance that anticipated liabilities are matched and ade-quate investment liquidity provided. This may be accomplished by

POLICY

PURPOSE

STRATEGY / FUNDS

OPERATING, TRUST AND AGENCY, AND INTERNAL SERVICE FUNDS



purchasing high quality, short- to medium-term maturity securities which 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 succes-sive 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 indi-vidual 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 objec-tives 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 is recognized as essential to good fis-cal management and investment interest serves 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 Public Funds In-vestment Act (the “PFIA”) (Texas Government Code 2256), the Public Funds Collateral Act (Texas Government Code 2257), fed-eral and state laws. This investment policy applies to all assets of the District.

DEBT SERVICE AND DEBT SERVICE RESERVE

CAPITAL PROJECTS

INVESTMENT MANAGEMENT



Investments shall be made with judgment and care, under circum-stances then prevailing, that a person of prudence, discretion and intelligence would exercise in the management of their 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 assistant superintendent for financial services and the director of finance to serve as the investment offi-cers of the District. The investment officers shall recommend ap-propriate legally authorized and adequately secured investments, and shall invest District funds as directed by the Board and in ac-cordance with the District’s adopted investment policy, generally accepted accounting procedures, and meeting 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 or-der 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 which could impair their ability to make impartial investment de-cisions. All investment officers shall complete disclosure related to potential conflicts of interest annually or as conditions change. In-vestment officers must file a disclosure statement with the Texas Ethics Commission and the District if:

1. The officer has a personal business relationship with a busi-ness organization offering to engage in an investment trans-action 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 in-vestment 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 re-purchase 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 strate-

INVESTMENT AUTHORITY

TRAINING

ETHICS AND DISCLOSURE OF CONFLICTS OF INTEREST

BONDING

AUTHORIZED INVESTMENTS



gies and maturities defined in this policy and in compliance with the maturity and diversification levels outlined:

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 comple-tion 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 six months 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)

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. 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)

Monitoring market prices for determining market values shall be done monthly and more often as economic conditions warrant by using independent and recognized sources such as reports, indi-ces, or benchmarks. The investment officers shall keep the Board informed of significant changes in the market values.

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:

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

2. Certifies that the firm has implemented reasonable proce-dures and controls in an effort to preclude investment transac-tions conducted between the District and the organization that are not authorized by the District’s investment policy, except

MONITORING MARKET PRICES

AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS



to the extent that this authorization is dependent on an analy-sis 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 in-formation on each counter-party transacting business with the Dis-trict. Requirements shall include registration with the Texas Securi-ties 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 re-viewed 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 assure 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 safekeep-ing 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 is re-quired at 110 percent margin.

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 inde-pendent 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

SOLICITING BIDS / COMPETITIVE BIDDING

DELIVERY VERSUS PAYMENT

SAFEKEEPING AND CUSTODY

COLLATERALIZATION



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 is granted with prior District ap-proval.

To reduce exposure to changes in interest rates that could ad-versely 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 trans-actions 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 finan-cial 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 re-cordkeeping 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 in-vestments and adherence to this policy as well as a review of the monthly reports sent to the Board.

An investment report shall be prepared monthly by the investment officers 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. At a minimum, the re-port shall contain the following:

INTEREST RATE RISK

INTERNAL CONTROLS

REPORTING



ADOPTED:

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 port-folio for the period reported.

3. Additions and changes to the market value during the period.

4. Fully accrued interest and earnings for the period.

5. The weighted average maturity for the portfolio.

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

Investment Policy - Attachment 3HUMBLE INDEPENDENT SCHOOL DISTRICT

INVESTMENT STRATEGIES2008

Fund Type General Special Revenue Debt Service Capital Projects Internal Service Trust & AgencyWeekly payments to vendors Weekly payments to vendors Semi-annual debt payments Weekly payments to vendors Daily payments to employees Daily payments for activity funds

Cash Flow Requirements Semi-monthly payroll Semi-monthly payroll Annual TIRZ payment Some wire transfers & medical providersRequiring liquidity buffer Requiring liquidity buffer Requiring liquidity buffer Requiring liquidity buffer Requiring liquidity buffer Semi-annual payments for scholarshipsAny allowable by policy Idle cash combined with Any allowable by policy Any allowable by policy Any allowable by policy C.D.s, overnight sweeps, and investment pools

general fund for major activity funds. Combine scholarship withSuitable 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 statedMaximum Maturity * maturity maturity maturity (except for SLGS) expenditure plan or estimated maturity maturity

completion date.Period average of Period average of Period average of Period average of Period average of Period average of

Benchmark ** six month Treasury Bill six month Treasury Bill six month Treasury Bill one year Treasury Bill six month Treasury Bill six month Treasury BillPrimary 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 analysisLiquidity Weekly and semi-monthly Weekly and semi-monthly Semi-annual and annual Weekly Daily liquidity required Daily and semi-annually

Yes Yes Yes Risk of principal on longer Overnight investment or total Yes; early withdrawal penalty for certificates Marketability Before Marketability achieved with Marketability achieved with Marketability achieved with securities lessened with cash liquidity options used to of deposit Maturity high credit quaility and high credit quaility and high credit quaility and flow analysis and clear matches assure liquidity - extensions

matches to liabilities matches to liabilities matches to liabilities to known liabilities with clear cash flow needDiversified through pools, through varying maturity dates, and through varied investment instruments. Diversified through general fund and through

Diversification varying maturity datesMeasured 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 All debt service payments Bond proceeds, other than Payments to employees C.D. investments of activity funds are madeOther Comments vendors, and for received monthly on a are by wire transfer bond proceeds representing and medical providers are by campus principals.

scholarships are issued reimbursement basis (after reserves and funds maintained issued by the HealthFirst and Collateralization assured by monitoring from by appropriate fund. expenditures are for debt service purposes, Broadspire TPA's. administration.

reported). Food service may not be invested in a Payments to HealthFirst andmaintains a separate guaranteed investment Broadspire are issued by theinvestment account with contract with a term of longer District.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: February 2007* 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 at the 6-month and 1-year T-Bill.

insurance.Note: In the changes highlighted in red above, the words "HealthFirst and Broadspire" have been used to replace "TriSurant". HealthFirst is the TPA for our health insurance and Broadspire is the TPA for our workers compensation

Investment Strategies 02-09.xls 2/26/20093:46 PM

Investment Policy – Attachment 4

2008 Certification by Financial Counter-Parties

All of these firms were on the 2008 list: Still Active Options: Investment/Broker FINRA Listed Brokerage Firm Lone Star Investment Pool First Public, LLC JPMorgan Chase Bank J.P. Morgan Securities Inc. Smith Barney CitiGroup Global Markets Inc. TexasTerm & TexasDaily PFM Fund Distributors, Inc. TexPool Federated Securities Corp. Wells Fargo Wells Fargo Investments, LLC No Longer an Investment Option: Banc One Capital Markets, Inc. – now part of JPMorgan Chase Patterson & Associates – only provide advisory services State of Texas Treasury Pool – no longer available Texas Daily – no longer in existence Did Not Respond to 2008 Certification Requests: Merrill Lynch – no response at all Morgan Stanley/Dean Witter – responded as “not interested”

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 Government Treasurers Organization of Texas (GTOT) Harris County Department of Education (HCDE) Lone Star Investment Pool (LSIP) 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 5

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 pools 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 principle sum where the interest rate is applied to the original principle and any accumulated interest. CONSTANT DOLLAR FUND: a short term money market fund whose objective is to offer safety, liquidity and always strives to maintains 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 US 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 $100,000 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 the Federal Reserve’s role with commercial banks. The Federal Home Loan Bank System is made up of 12 regional FHLB’s. 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. Investor in this bond receives 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 y 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 invest 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 sells 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, deducts expenses and divides 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. Theses dealers must make the market (buy Treasuries if offered therefore providing the liquidity) in US Treasuries. PRIME RATE: rate of interest at which a commercial bank offers t 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 governmetnal 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 REDEEMPTION 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 US 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 hand (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 principle 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 US 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 a longer than 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 US Government debt security issued at a discount from par value auctioned by the US Treasury with maturities of 91 days, 180 days or 365 days. TREASURY BOND: the bellwether Treasury security. A thirty year US 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 US 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 US 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.

Investment Policy – Attachment 6

We, the undersigned members of the Humble Independent School District Board of Trustees, have reviewed the Investment Policy and the Investment Strategies of the Humble Independent School District as presented in the board agenda and board package for the regularly scheduled meeting held on March 10, 2009. No changes were made to Policy CDA LOCAL. Minor changes were made to the Investment Strategies with regard to the other comments for the Internal Service Fund. One name was deleted from the Certification by Financial Counter-parties (Banc One Capital Markets) and no changes were made to the Listing of Independent Sources of Instruction Relating to the Investment Responsibility. Board of Trustees: Mr. Dave Martin, President Mr. Dan Huberty, Vice President Mr. Keith Lapeze, Secretary Dr. Bonnie Longnion, Parliamentarian Mr. Charles Cunningham, Board Member Mr. Robert Scarfo, Board Member Mr. Brent Engelage, Board Member

1


Regular Meeting




/ Discussion Item


Title: Budgetary Amendments Consideration of Budgetary Amendments

Superintendent’s Recommendation: The Superintendent recommends that the Board of Trustees approve the budgetary amendments as described in the accompanying attachments. Background/Impact Information: The Texas Education Code Section 44.006, the Texas Education Agency Resource Guide Sections 2.10.5 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, Food Service 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. Upon approval, there is no change to the General Fund Balance, Food Service Fund Balance or the Debt Service Fund Balance. Fiscal Impact Statement: Cost:

Recurring One-Time

Funding Source:


Attachments: Budgetary Amendments Detail Campus/Department Submitting Form: Budget Department Date Submitted: March 3, 2009 Resource Personnel: Marilyn Farrell 281-641-8014 [email protected]

Lynn Lynn 281-641-8014 [email protected]


Student

Approved

Humble I.S.D.Budgetary Amendments Detail

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

General Fund Effect Reserves/ Estimated Out Instruction Svcs Develop Leadershp Leadershp Counsel Svcs Svcs Transp Extracurr Admin Operation Svcs Process Svcs Svc Acquisit Justice TIRZ Other

Explanation of Amendment on F/B Designations Revenues 00 11 12 13 21 23 31 32 33 34 36 41 51 52 53 61 71 81 95 97 99

Items Affecting Fund Balance/Reserves:

Items Affecting Revenues and Functional Categories:Adjust TRS On-Behalf revenues and expenditures per latest 747,693 534,340 13,751 7,095 6,875 48,127 34,830 3,438 6,875 20,172 10,313 13,751 34,376 3,438 6,875 3,437

estimates.

Revenues received by Athletics Dept. from tournament fees 30,763 21,947 8,816

charged for the partial funding of maintenance and othercocurricular expenditures.

Transfers Between Functional Categories:Transfers between functional categories for proper coding of 0 (74,009) (168) 13,727 (5,944) 76,179 (610) 0 0 0 (27,463) (1,198) 13,961 5,525 0 0 0 0 0 0 0

substitute wages, stipends, salaries, overtime, otherprofessional svcs, contracted maintenance, telephones,operating leases, misc contracted svcs, O&M supplies, library &media, general supplies, employee travel, student travel, fieldtrips, dues, academic awards, misc operating expenses andcapital outlay. Totals 0 0 778,456 0 460,331 13,583 20,822 931 124,306 34,220 3,438 6,875 20,172 4,797 12,553 57,153 8,963 6,875 3,437 0 0 0 0 0

Net Change

Food Service Effect in Estimated Out Service Operation Svcs Service

Explanation of Amendment on F/B Reserves Revenues 00 35 51 52 71


Items Affecting Revenues and Functional Categories:

Transfers Between Functional Categories:

Totals 0 0 0 0 0 0 0 0

Net Change Change in Transfers Debt

Debt Service Effect in Estimated Out Svc TIRZ

Explanation of Amendment on F/B Reserves Revenues 00 71 97


Items Affecting Revenues and Functional Categories:

Transfers Between Functional Categories:

Totals 0 0 0 0 0 0

March 10, 2009

Budget Amendments - Detail 09-0310.xls 3/5/20099:10 AM

1


Regular Meeting




/ Discussion Item


Title: Health Care Administration Service Provider

Consideration of Health Care Administration Service Provider

Superintendent’s Recommendation: The Superintendent recommends the selection of United Healthcare (UHC) to provide Health Care Administration Services for the District’s Health Care Program. Background /Impact Information: At the October 14, 2008, board meeting the Board of Trustees approved the selection of Hewitt and Associates to provide Employee Benefits Consulting Services to assist the District with a complete review of the current Health Care Program. During November, the Director of Benefits and Risk Management worked with Hewitt to develop a Request for Proposals (RFP) to obtain bids from Health Care Providers for administration services. These services include medical and dental claims administration, pharmacy benefits management, and flexible spending account and COBRA administration. At the January 13, 2009, board meeting an information item was presented related to the RFP process and the evaluation criteria for selection of a new Health Care Administration Provider. The evaluation process was based on weighted scoring of the responses in four key areas: Financial Offer 50% Network Access 20% Clinical Programs 15% Administration 15% The weighting of these key areas was performed by Hewitt in accordance with their best practices of evaluation. The objective of the scoring was to determine the administrator that offered the overall best value to the District. The District received a total of seven bids in accordance with the RFP deadline: Aetna, BlueCross BlueShield of Texas, CIGNA, HealthFirst (formerly TriSurant), Humana, Memorial


Student

Approved

2

Hermann Health Network Providers, and United Healthcare. An additional bid was received from TML Governmental Employee Benefits Pool but was disqualified for not meeting the RFP deadline. The evaluation process resulted in three finalists with the overall highest scoring: Aetna, Cigna, and United Healthcare. The Director of Benefits and Risk Management along with representatives from Hewitt conducted an on site facility visit with each finalist. Concurrent to the process each finalist was asked to provide their best and final offer. The site visits resulted in finalists being further evaluated based upon their demonstrated ability to provide best in class service and administration. The final scoring (summarized in the attached Exhibit) resulted in the selection of United Healthcare (UHC) as offering the overall best value to the District. This change in Health Care Administration Services is projected to save the District approximately $12.4 million over the next three years. The majority of the savings can be directly attributed to lower medical costs (doctors and treatments) due to higher negotiated discounts with providers. Approximately $300,000 of the above referenced amount represents savings in dental costs. The UHC proposal offers a 6 year pricing structure for administration fees of both medical and dental claims with the first 3 years at a guaranteed basic fee. The second three years are guaranteed not to exceed more than 4% annually. The proposal also includes administration of COBRA Benefits that are currently being administered in-house and Flexible Spending Account Administration which is currently being outsourced. Additionally, the proposal provides the District with a full-time UHC employee to assist not only during the transition phase, but also to support the day-to-day needs of our employees. This person will be critical to the success of the District moving toward a more sophisticated approach to the deliver of benefits including wellness initiatives and communications with campuses and departments. We believe that all of the above will help to insure compliance and generate efficiencies for both employees and the District. Approval of this recommendation will allow the District to finalize contract negotiations with United Healthcare. The District will immediately begin to work with UHC on the transition and implementation process. The effective date of the change will be July 1, 2009. The District and UHC will develop a process for working with a District committee and employee groups on plan design changes for the 2009-10 fiscal year. Fiscal Impact Statement: The average annual savings overall for the Health Care Program is estimated at $4 million. Cost: Budgetary Codes:




Attachments: Executive Summary Scorecard

3

Campus/Department Submitting Form: Benefits and Risk Management Date Submitted: February 27, 2009 Resource Personnel: Roger Westwood 281-641-8049 [email protected] Lynn Lynn 281-641-8012 [email protected]

6Humble ISD Health Care Procurement BAFO FC.PPT/04-J8-41527 2/2009

Executive Summary—Scorecard

UHC has the best overall score, with top scores in administration and clinical

programs

CIGNA also scores well, especially with their financial offer

Highest score

Lowest score

Category Weight

Possible

Score Aetna CIGNA UHC

Financial Offer 50% 100 68.0 87.0 77.0

Network Access 20% 40 40.0 25.0 37.0

Clinical Programs 15% 30 25.0 26.0 27.0

Administration 15% 31 24.0 17.0 28.0

Overall Score 100% 201 157.0 155.0 169.0

Rank 2 3 1

1


Regular Meeting




/ Discussion Item


Title: Financial Services Reports

Background /Impact Information: 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 February 28, 2009, has been provided for information. Cash and Investment Reports along with the Schedule of Revenues and Expenditures as of February 28, 2009, 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 February is on file in the Accounts Payable Department. Checks issued on the Medical and Workers’ Compensation funds for the month of February are on file in the Benefits and Risk Management Department. The District began meeting with the Board Finance Committee on January 13, 2009, as part of the 2009-10 Budget Development Process. The attached Budget Planning document for 2009-10 has been provided for information and/or discussion. Fiscal Impact Statement: Cost: Budgetary Codes:





Student

Information Only

2

Attachments: Tax Collection Report - Information Only Cash & Investment Reports – Information Only Revenues & Expenditures Report – Information Only 2009-10 Budget Planning – Information and/or Discussion Campus/Department Submitting Form: Tax Office Finance Department Budget Department Date Submitted: March 3, 2009 Resource Personnel: Janice Himpele (Tax) 281-641-8185 [email protected] Kevin Yandell (Finance) 281-641-8084 [email protected] Marilyn Farrell (Budget) 281-641-8012 [email protected] Lynn Lynn (Financial Svcs.) 281-641-8014 [email protected]

Humble I.S.D.Tax Collection Report

2/28/09

Maintenance & Operations Interest & Sinking Total CollectionsCurrent Month Year To Date Current Month Year To Date Current Month Year To Date

Current Taxes 14,615,931.10$ 107,842,888.55$ 4,372,289.46$ 32,260,700.55$ 18,988,220.56$ 140,103,589.10$ Delinquent Taxes 265,398.20 3,180,089.71 63,433.83 784,785.96 328,832.03 3,964,875.67 Penalties & Interest 147,587.34 608,097.89 39,893.34 149,442.62 187,480.68 757,540.51 Tax Certificates / NSF Fees 1,148.81 4,813.85 1,148.81 4,813.85 Total Tax Collections 15,030,065.45 111,635,890.00 4,475,616.63 33,194,929.13 19,505,682.08 144,830,819.13 Attorney Fees 36,142.18 421,844.01 36,142.18 421,844.01 HCAD Penalty Fees 8,767.11 43,735.66 8,767.11 43,735.66 Overpayments 363,392.26 907,788.54 363,392.26 907,788.54 Total Collections 15,438,367.00 113,009,258.21 4,475,616.63 33,194,929.13 19,913,983.63 146,204,187.34 Refunds Due to Roll Corrections (29,667.64) (273,698.98) (7,659.24) (66,224.14) (37,326.88) (339,923.12) Refunds Due to Overpayments (1) (31,888.29) (194,586.82) (31,888.29) (194,586.82) Returned Checks (44,520.58) (95,689.55) (13,235.14) (25,401.95) (57,755.72) (121,091.50) HCAD Penalty Fees (8,767.11) (43,735.66) (8,767.11) (43,735.66) Attorney Fees (36,142.18) (421,844.01) (36,142.18) (421,844.01) Net Collections 15,287,381.20$ 111,979,703.19$ 4,454,722.25$ 33,103,303.04$ 19,742,103.45$ 145,083,006.23$

Current Taxes Final Delinquent TaxesTax Year 2008 Tax Year 2007 Tax Year 2007 As of 2/28/09 As of 2/29/08

Total Market Value as of Certification Date 10,628,789,756$ 9,881,195,041$ 9,881,195,041$ -$ -$ Certified Taxable Value 8,990,219,474 8,289,296,825 8,289,296,825 Year To Date Supplementals 1,339,253,273 1,200,492,555 1,289,033,894 Year To Date Corrections (15,223,811) (14,743,919) (39,729,130) Year To Date Adjustments (Timber) 5,332,843 2,927,965 9,993,839 Adjusted Taxable Value (3) 10,319,581,779 9,481,973,426 9,548,595,428 Proposed Tax Rate/Tax Rate 1.52 1.31 1.31

Beginning Tax Levy 136,651,336 108,589,788 108,589,788 8,361,331 9,157,410 Adjust Delinquent Taxes Due to Statute of Limitations (169,866) (125,540) Adjusted Delinquent Tax Roll 8,191,465 9,031,870 Year-To-Date Adjustments 20,206,309 15,619,174 16,496,812 Adjusted Tax Levy 156,857,645 124,208,962 125,086,600 8,191,465 9,031,870 Levy Lost Due to Frozen Accounts (4,463,107) (2,508,026) (2,531,880) Current Levy 152,394,538 121,700,936 122,554,720

Net Collections (2) 139,989,212.59$ 111,024,312.03$ 118,507,143.25$ 3,942,003.08$ 4,857,477.02$

% Collected 91.86% 91.23% 96.70% 48.12% 53.78%

(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 non-certified value of $166,782,392.

Humble Independent School DistrictStatement Of Position By Fund

February 28, 2009

Lone Star U.S. TotalFund Description Checking Investment TexPool CD's Gov't / By

Pool Agencies Fund Operating Accounts General Fund 1,770,638.72$ 71,101,864.99$ 38,141,008.90$ -$ -$ 111,013,512.61$ Food Service Fund 2,003,961.23 556,716.85 2,560,678.08 Special Revenue Funds 2,467,167.60 131,856.04 2,599,023.64 Capital Projects Fund 430,762.60 82,259,695.84 82,690,458.44 Private Purpose Trust 14,699.90 1,104,134.65 1,118,834.55 Student Activity Fund 513,876.47 513,876.47

Total 7,201,106.52 155,154,268.37 38,141,008.90 - - 200,496,383.79 Debt Service Fund 876,743.77 8,094,871.10 18,826,426.65 2,822,813.88 30,620,855.40 Internal Service Fund 240,158.73 15,219,272.24 15,459,430.97

8,318,009.02$ 178,468,411.71$ 56,967,435.55$ -$ 2,822,813.88$ 246,576,670.16$

Page 1

Balance Balance

Operating Account - Chase FUND 01/31/09 Receipts Disbursements 02/28/09 Total Operating Account Various 37,833,896.86$ 29,485,699.19$ 60,118,489.53$ 7,201,106.52$ Comparative Total -2/29/08 3,136,690.33$

Debt Service Fund - Chase 5999 3,778,622.94$ 6,830,338.99$ 9,732,218.16$ 876,743.77$ Comparative Total -2/29/08 195,661.50$

Internal Service Fund - Chase Self-funded - Medical 7999 (134,714.23)$ 1,631,661.41$ 1,256,788.45$ 240,158.73$ Self-funded - Workers' Comp 7999 73,573.15 - 73,573.15 - Total Internal Service Fund (61,141.08)$ 1,631,661.41$ 1,330,361.60$ 240,158.73$ Comparative Total -2/29/08 (82,826.56)$

Chase Avg. Rate 2/28/09 ** Comparative Avg. Rate 2/29/08 4.03%** Rate not available at time of report

Humble Independent School DistrictCash Report

February 28, 2009

Page 2

Balance Balance01/31/09 Deposits Withdrawals 02/28/09

LSIP Liquidity Plus Fund (Avg. Rates: 2/28/09-.6468% ; LSIP Liquidity Plus 2/29/08-3.45%) General Fund 1999 42,220,964.06$ 39,591,661.40$ 10,710,760.47$ 71,101,864.99$ Comparative Total 2/29/08 80,142,409.23 Campus Activity (Coca Cola) 4619 66,346.55 39.36 0.00 66,385.91 Comparative Total 2/29/08 107,236.12 Food Service 2409 1,527,444.24 0.00 970,727.39 556,716.85 Comparative Total 2/29/08 2,749,439.86 Livestock Show Activity 4829 39,300.80 19.37 20,988.21 18,331.96 Comparative Total 2/29/08 233,183.20 Athletic Activity 4839 51,239.79 29.37 4,130.99 47,138.17 Comparative Total 2/29/08 22,620.58 Debt Service Fund 5999 19,451,474.28 19,590,527.18 31,051,725.63 7,990,275.83 Comparative Total 2/29/08 1,880,242.22 Debt Refunding Reserve 5999 104,533.25 62.02 0.00 104,595.27 Comparative Total 2/29/08 102,455.35 Capital Projects-2005 6305 - 0.00 0.00 - Comparative Total 2/29/08 - - Capital Projects-6406 6406 2,745.27 0.83 2,594.58 151.52 Comparative Total 2/29/08 9,129,097.42 Capital Projects-2005B 6515 20,856.69 11.91 7,556.02 13,312.58 Comparative Total 2/29/08 3,799,148.09 Capital Projects-2006 6526 2,349.76 555.79 999.81 1,905.74 Comparative Total 2/29/08 14,594,572.18 Capital Projects-2007 6537 13,077,383.17 5,311.87 1,252,162.69 11,830,532.35 Comparative Total 2/29/08 59,937,301.01 Capital Projects-2007 II 6547 11,884,774.52 3,708.93 2,332,120.80 9,556,362.65 Comparative Total 2/29/08 19,034,531.00 Capital Projects-2008 6558 60,595,859.42 5,325.08 1,373,269.20 59,227,915.30 Comparative Total 2/29/08 Capital Outlay - 2006 6916 28,708.29 11.03 15,008.83 13,710.49 Comparative Total 2/29/08 1,851,094.13 Capital Outlay - 2008 6918 1,774,093.14 1,017.75 159,305.68 1,615,805.21 Comparative Total 2/29/08 Self Funded Workers' Comp 7999 11,801,793.18 252,336.18 0.00 12,054,129.36 Comparative Total 2/29/08 10,117,702.16 Medical Fund 7999 3,851,036.88 1,568,653.82 2,254,547.82 3,165,142.88 Comparative Total 2/29/08 2,512,945.12 Trust Fund - Expendable 8299 270,757.34 154.18 16,200.00 254,711.52 Comparative Total 2/29/08 264,064.81 Trust Fund - KVFD 8299 858,917.67 505.46 10,000.00 849,423.13 Comparative Total 2/29/08 857,630.64

. .TexPool (Avg. Rates: 2/28/09- .6690% , 2/28/08-3.44% ) General Fund 1999 37,244,174.09$ 896,834.81 0.00 38,141,008.90$ Comparative Total 2/29/08 11,749,601.80$ Debt Service Fund 5999 13,160,662.10$ 8,765,764.55 3,100,000.00 18,826,426.65$ Comparative Total 2/29/08 24,230,050.55$

90 Day U.S. Treasury Bill Rate 0.304%

Investment Report by Pooled Fund Group 1/31/09-2/28/09

Humble Independent School District

Page 3

Humble Independent School DistrictSummary of Individual Investments By Fund

As of February 28, 2009

Campus Activity FundsPurchase/ Type Beginning Ending Change Days Yield Interest (Sorted By) Weighted

Sale Trade CUSIP # of Par Market Market in Book To To Accrued Maturity AverageDate Ticket # Investment Value Value Value MV Value Maturity Maturity For Period Date Maturity

0 $0.0000

$0.00 $0.00 $0.00

Debt Service FundPurchase/ Type Beginning Ending Change Days Yield Interest (Sorted By) Weighted


6/20/2000 SZR08702T 2000-02659 SLGS Time 2,740,596.00 2,822,813.88 336 6.00% 13,702.98 02/01/102,740,596.00$ 2,822,813.88$ 13,702.98$ 336.0

Student Activity FundsPurchase/ Type Beginning Ending Change Days Yield Interest (Sorted By) Weighted


CD $0.00

$0.00 $0.00 $0.00 0.0

Page 4

Humble Independent School DistrictInvestment Report - Glossary

February 28, 2009

BA Banker's Acceptances are short-term, noninterest-bearing notes sold at a discount andredeemed by the accepting banks at maturity for face value. Banker's acceptancesgenerally are created based on a letter of credit issued in a foreign trade transaction. Banker's acceptances are essentially checks. They represent a bank's promise and ability to pay the face or principal amount on the banker's acceptance on the stipulatedmaturity date. Maturities for banker's acceptances are generally less than three months.Any banker's acceptance purchased by a public entity must have a stated maturityof 270 days or less, must be accepted by a bank organized and existing under federallaw, and the short-term obligations of the bank must be rated not less than A1/P1. Similar to a treasury bill, a banker's acceptance typically does not have a coupon, isissued at a discount, and matures at par (face) value.

CP Commercial Paper, an unsecured promissory note issued by a corporation with a fixed maturity of no more than 270 days. Most commercial paper is non-interest bearing and sold at a discount from par.

FFCB Federal Farm Credit Bank System provides credit and related services to farmers, ranchers, producers and harvesters of aquatic products, farm related businesses, agricultural cooperatives and rural utilities. FFCB System institutions are federallychartered under the Farm Credit Act of 1971 and are subject to regulation by a federalagency, the Farm Credit Administration.

FHLB Federal Home Loan Bank System, established in 1932, includes twelve Federal Home Loan Banks and their member institutions. The Federal Home Loan Banks are instrumentalitiesof the United States and operate under the supervision on the Federal Housing FinanceBoard.

FHLMC Federal Home Loan Mortgage Corporation (Freddie Mac) is a publicly held governmentsponsored enterprise created pursuant to the Federal Home Loan Mortgage CorporationAct of 1970. Freddie Mac's statutory mission is to provide stability in the secondarymarket for home mortgages, to respond appropriately to the private capital market andto provide on going assistance to the home mortgage secondary market.

FNMA Federal National Mortgage Association (Fannie Mae), a federally chartered and stockholder owned corporation, is the largest investor in home mortgages in the United States.FNMA provides funds to the mortgage market by purchasing mortgage loans from lenders.FNMA was originally incorporated in 1938 as a wholly owned government corporationbut the Housing and Development Act of 1968 changed FNMA to a federally charteredcorporation.

Page 5


February 28, 2009

GIC A Guaranteed Investment Contract is a fixed-rate, fixed-maturity contract that is similarto a bond. However, unlike a bond, a GIC is always valued at par (face) value. This occurs because the company issuing the GIC usually is an insurance company that guarantees the investment by agreeing to pay the difference between the market valueand the book value for the issue if the investor decides to sell it. A guaranteed investmentcontract may be structured in a manner similar to a flexible repurchase agreement, whereby the investor is able to draw down the balance upon written request throughoutthe life of the contract.

MARKET Market Value is the current value of a security, which is determined by multiplying itsVALUE par (face) value by the current market price. The unrealized gain or loss on a security

can be calculated by subtracting the book value from the market value.

PURCHASE The date of the initial purchase / investment.DATE

MATURITY The date when the principal amount of a security or debt becomes due and payable.DATE

MMMF Money Market Mutual Funds are a specific type of mutual fund that invests onlyin money market instruments (i.e., short-term debt instruments such as treasurybills, commercial paper, banker's acceptances, repurchase agreements, and federal funds) as defined and registered with the Securities and ExchangeCommission. Money market mutual funds are regulated by the InvestmentCompany Act of 1940 as 2a-7 funds. They strive to maintain a $1 net assetvalue (NAV) for participants. There are three types of money market mutualfunds: treasury, governmental and prime. Money market mutual funds aredesigned to provide both safety and liquidity.

REPO A Repurchase Agreement is an investment agreement involving the purchaseof a security with a simultaneous agreement to repurchase that security at a specified price and date. Repurchase agreements may be used to earn incomeon idle cash at or near the federal funds market rate. A holder of securities sellsthem to an investor with a repurchase agreement. The buyer is in effect lendingthe seller money for the period of the agreement. The terms of the repurchaseagreement are structured to compensate the buyer. Dealers often use repurchaseagreements to finance their positions. The exception occurs when the Fed is said to be doing repurchase agreements, in this instance it is lending money, i.e., increasing bank reserves. Repurchase agreements should always be governedby an executed PSA Master Repurchase Agreement between the investor andthe dealer to reduce collateral risk.

Page 6


February 28, 2009

SLMA Student Loan Marketing Association ( Sallie Mae) is a stockholder-owned corporation established by an Act of Congress in 1972. Sallie Mae is the largest source of financing and servicing for education loans in the U.S.

SLGS State and Local Government Series securities are generally used in escrow accountsfor advanced refund of bond issues and for certain other funds. Yield is restricted by the Internal Revenue Service's arbitrage regulations. SLGS are non-marketablesecurities 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 dailyby the U.S. Treasury. This allows the purchaser to structure an overall rate of returnon the escrow that is less than or equal to the yield on the bond issue so that there isno violation of arbitrage restrictions. The most frequent use of SLGS is in advancerefunding transactions in which the yield on the escrow being created to defease oldbonds must not be greater than the yield on the refunding bonds sold to fund the escrow. By using SLGS, the bond issuer can structure an optimal structure in anescrow that yields less than the bond yield.

Page 7

Humble Independent School DistrictInvestment Report - Compliance Statement

February 28, 2009

We, the approved Investment Officers of Humble ISD, hereby certify that the following Investment Reportrepresents the investment position of the District as of February, 2009 in compliance withthe Board approved Investment Policy, the Public Funds Investment Act (Texas Government Code 2256 ),and Generally Accepted Accounting Principles (GAAP).

Kevin Yandell , Finance Director

Lynn Lynn , Assistant Superintendent for Financial Services

Page 8

Ratio of Actual ToOriginal Amended Actual Amounts Amended Budget

REVENUES:General Fund RevenueLocal Taxes 112,877,190$ 112,877,190$ 111,286,626$ Local Other 3,339,295 3,731,451 2,008,229 State 115,659,524 115,659,524 54,647,465 TRS-On-Behalf 10,190,220 10,190,220 4,956,963Federal 135,000 135,000 50,335 Other Resources/Transfers - - 104,730

Total Revenue 242,201,229 242,593,385 173,054,348 71%

EXPENDITURES:Current:Instruction 150,362,628 151,341,404 72,315,641 48%Instructional Resources & Media Services 2,697,261 2,883,097 1,332,204 46%Curriculum and Staff Development 2,294,589 2,262,831 1,206,199 53%Instructional Leadership 2,310,812 2,211,233 1,243,336 56%School Leadership 15,824,018 15,808,270 9,048,493 57%Guidance, Counseling & Evaluation Services 13,279,001 10,429,683 5,575,838 53%Social Work Services 245,825 308,295 161,677 52%Health Services 2,454,954 2,380,289 1,176,313 49%Student (Pupil) Transportation 9,224,973 9,168,170 4,387,154 48%Cocurricular/Extracurricular Activities 2,745,164 5,480,384 2,962,647 54%General Administration 5,734,500 5,851,609 3,735,694 64%Plant Maintenance and Operations 24,167,184 24,166,541 14,899,728 62%Security and Monitoring Services 1,849,412 1,873,187 1,170,574 62%Data Processing Services 1,619,220 1,899,258 1,119,863 59%Community Services 635,711 638,356 393,529 62%Debt Service - - - 0%Payments to Juvenile Justice Alt. Ed. Prg. 277,000 277,000 268,560 97%Payments to Tax Increment Fund 5,329,852 5,329,852 - 0%Other Intergov Charges 1,149,125 1,149,125 530,165 46%

Total Expenditures 242,201,229 243,458,584 121,527,615 50%

Excess (Deficiency) of Revenues Over (Under) Expenditures - (865,199) 51,526,732

Transfers Out/Other Uses 69,620

Net Change in Fund Balances -$ (865,199) 51,457,112$

6/30/08 Unreserved, Undesignated Fund Balance 34,666,605

6/30/08 Released Reserves/Designations 865,199

Partial Release of Prior Year Designation for Compensation -

Unreserved, Undesignated General Fund Balance as of December 2008 34,666,605 Unreserved, Undesignated General Fund Balance as a % of Total Budgeted Expenditures 14%

Current Fund Balance Reserves/Designations: Reserve for Inventory 457,023 Reserve for Encumbrances - Designated for Capital Outlay - Designated for E-Rate - Designated for Compensation - Designated for Medical Plan Benefits - Designated for Special Education 996,911 Designated for Opening New Campuses 17,479,239 Total Fund Balance Reserves/Designations 18,933,173

Total General Fund Balance as of February 2009 53,599,778$

Budgeted Amounts


Humble Independent School DistrictSchedule of Revenues and Expenditures

Budget and Actual - General Fund

Page 1

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

BUDGETED FUNDS: In Dollars

Food Service Fund Revenue:Local 7,555,877$ 3,907,329$ (3,648,547.51)$ State 65,000 - (65,000)Federal 4,616,335 2,623,719 (1,992,616)Other Resources/Transfers - - -

Total 12,237,212 6,531,048 (5,706,164) 53%

Food Service Fund Expenditures 13,374,010 6,793,808 6,580,202 51%

Net Change in Fund Balance (1,136,798) (262,760) 874,038

6/30/08 Unreserved, Undesignated Fund Balance 2,992,461 - - 6/30/08 Reserved for Inventory 167,373 - - 6/30/08 Reserved for Encumbrances - - - 6/30/08 Released Reserves and Designations 22,962 - -

Debt Service Fund Revenue:Local Taxes 34,444,569$ 33,119,893$ (1,324,676)$ Local TIRZ 5,890,472 - (5,890,472) Local Other 1,300,000 433,094 (866,906)State 6,358,661 7,803,280 1,444,619 Other Resources/Transfers 4,700,000 1,371,227 (3,328,773)

Total 52,693,702 42,727,494 (9,966,208) 81%

Debt Service Fund Expenditures 52,693,702 43,135,479 9,558,223 82%

Net Change in Fund Balance - (407,985) (407,985)

6/30/08 Fund Balance 30,959,357

Total Debt Service Fund Bal as of Feb 2009 30,959,357$ - -

Internal Service Fund Revenue:Medical 18,968,683$ 11,695,094$ (7,273,589)$ 62%Workers' Comp 2,580,000 1,886,145 (693,855) 73%

Total 21,548,683 13,581,238 (7,967,445)

Internal Service Fund Expenditures:Medical 20,362,183 11,660,251 8,701,932 57%Workers' Comp 2,580,000 386,121 2,193,879 15%

Total 22,942,183 12,046,372 10,895,811

Net Change in Medical Net Assets (1,393,500) 34,843 1,428,343Net Change in Workers' Comp Net Assets - 1,500,024 1,500,024

Total (1,393,500) 1,534,867 2,928,367

6/30/08 Medical Net Assets 597,551 6/30/08 Workers' Comp Net Assets 4,882,721

Total 5,480,272

Medical Net Assets as of Feb 2009 (795,949) Workers' Comp Net Assets as of Feb 2009 4,882,721

Total 4,086,772

Humble Independent School DistrictSchedule of Revenues and Expenditures


Total Food Service Fund Balance as of February 2009 2,045,998$ - -

Budget and Actual - Other

Page 2

Total Remaining Authorization/ 2003 2004 2005 2006 2007 2008 2009 Expenditures Budget

Fund Budget Expenditures Expenditures Expenditures Expenditures Expenditures Expenditures Expenditures To Date Encumbrances Balance2002 - $229,984,624

Capital Projects:Phase 1 - 6203 52,075,000$ 14,533,929$ 29,880,159$ 6,829,169$ 799,356$ 32,387$ -$ -$ 52,075,000$ -$ -$ Phase 2 - 6303 89,767,579 149,701 8,896,951 40,902,331 38,080,617 1,737,979 - - 89,767,579 - - Phase 3 - 6305 42,764,488 - - 7,289,025 24,474,931 8,665,311 2,335,221 - 42,764,488 - - Phase 4 - 6406 25,646,718 - - - 2,450,325 12,184,560 5,288,246 5,722,171 25,645,302 1,410 6

Capital Outlay:Phase 1 - 6913 3,700,000 1,389,250 1,026,841 1,174,390 100,819 8,700 - - 3,700,000 - - Phase 2 - 6914 1,932,421 - 692,089 731,588 502,402 6,342 - - 1,932,421 - - Phase 3 - 6915 2,105,512 - - 319,968 787,270 798,812 199,462 - 2,105,512 - -

Phase 4 - 6916, 6917 3,612,906 - - - 236,011 775,805 1,323,086 1,256,341 3,591,243 19,662 2,001

Debt Service:Phase 1-4 - 599x 8,380,000 8,175,000 - 130,000 75,000 - - - 8,380,000 - -

- - Total 2002 229,984,624 24,247,880 40,496,040 57,376,471 67,506,731 24,209,896 9,146,015 6,978,512 229,961,545 21,072 2,007

2005 - $342,030,000

Capital Projects:Phase 1 - 6515 42,300,000 - - 2,373,314 22,836,142 13,190,851 3,855,773 - 42,256,080 14,954 28,966 Phase 2 - 6526 98,410,000 - - - 6,513,690 55,615,960 32,281,924 3,996,537 98,408,111 - 1,889 Phase 3 - 6537 85,000,000 - - - - 5,878,277 48,718,189 18,692,391 73,288,857 9,848,524 1,862,619 Phase 4 - 6547 25,000,000 - - - - 552,416 11,763,245 2,722,424 15,038,085 8,012,097 1,949,818 Phase 5 - 6558 74,248,125 - - - - - 957,925 15,101,331 16,059,256 37,756,506 20,432,363

Capital Outlay:Phase 5 - 6918 2,151,875 - - - - - 15,876 526,977 542,853 206,038 1,402,984

Total 2005 327,110,000 - - 2,373,314 29,349,832 75,237,504 97,592,932 41,039,660 245,593,242 55,838,119 25,678,639

Total-all funds 557,094,624$ 24,247,880$ 40,496,040$ 59,749,785$ 96,856,563$ 99,447,400$ 106,738,947$ 48,018,172$ 475,554,787$ 55,859,191$ 25,680,646$

Humble Independent School DistrictCapital Projects Expenditure Summary

Inception to February 28, 2009

Page 3

Humble Independent School District

Fiscal Year 2009-10

Budget Planning

Budget Goals

To adopt a budget that is consistent with the District’s mission, vision, and strategic plan and…..

Provide adequate levels of funding for improved student achievement to attain and sustain Recognized status

Use financial assessment review for informed decision making to generate efficiencies and improved effectiveness

Provide a competitive compensation package (salaries, stipends, and benefits) for all employees

Implement a long-term district-wide plan to address projected staffing needs at all levels

Budget Assumptions

Manage District resources efficiently and effectively Accommodate capacity and growth needs Work toward yearly minimum unreserved, undesignated general fund

balance of 90 days of total operating expenditures Maintain Schools Financial Integrity Rating System of Texas (FIRST)

Superior Rating Maintain strong financial assessment ratings from bond rating agencies Comply with all federal and state mandates

Budget Risks / Uncertainties

Legislative changes to the state educational finance system Unfunded state and federal mandates Changing economic conditions

Weakening economy

Continuation of housing market declines

Financial/credit crisis

Increasing unemployment rates

Rising energy and construction costs

Increasing salary, health care, and pension costs Growing student population with high needs Changing demographics Impact of credit crisis on future bond sales and property values

Humble ISD

2009-10 Budget Calendar Summary

Date Time Meeting Budget Topics

November/December 2009-10 Budget Planning

January 13, 2009 4:30 PM Board Finance Committee Meeting Budget Calendar & Budget Priority Discussions

February 3, 2009 2:00 PM Budget Development Committee Meeting Budget Calendar & Budget Priority Discussions

February 17, 2009 2:00 PM Budget Development Committee Meeting Data Analysis & Financial Projections

February 24, 2009 5:00 PM Board Finance Committee Meeting Budget Priority Discussions & Financial Projections

March 3, 2009 2:00 PM Budget Development Committee Meeting Financial Projections & Preliminary Compensation Plan

March 10, 2009 7:00 PM Regular Board Meeting

2009-10 Budget Planning Information; Board Finance

Committee Update

March 12, 2009 2:00 PM Budget Development Committee Meeting Preliminary Compensation & Staffing Plans; Data Analysis

March 31, 2009 2:00 PM Budget Development Committee Meeting

Preliminary Compensation & Staffing Plans; Financial

Projections

March 31, 2009 4:30 PM Board Finance Committee Meeting

Data Analysis; Preliminary Compensation & Staffing

Plans; & Financial Projections

April 7, 2009 2:00 PM Budget Development Committee Meeting

Preliminary Compensation & Staffing Plan

Recommendations

April 14, 2009 7:00 PM Regular Board Meeting Board Finance Committee Update

April 16, 2009 4:30 PM Board Finance Committee Meeting Review Compensation & Staffing Plan Recommendations

April 21, 2009 2:00 PM Budget Development Committee Meeting

Finalize 2009-10 Compensation & Staffing Plan

Recommendations

April 21, 2009 6:00 PM Budget Workshop

Board Finance Committee Update; Financial Projections;

& 2009-10 Compensation & Staffing Recommendations

April 28, 2009 6:00 PM Special Board Meeting

Approve Salary/Stipend Schedules (Including Retention

and Recruitment Stipends); Benefits Plan & Staffing Plan

May 5, 2009 2:00 PM Budget Development Committee Meeting Review/Refine 2009-10 Proposed Budget

May 19, 2009 2:00 PM Budget Development Committee Meeting Review/Refine 2009-10 Proposed Budget

May 19, 2009 4:30 PM Board Finance Committee Meeting 2009-10 Proposed Budget

May 26, 2009 6:00 PM Budget Workshop Board Finance Committee Update

June 2, 2009 2:00 PM Budget Development Committee Meeting Finalize 2009-10 Proposed Budget

June 7, 2009 Preliminary 2009 Certified Appraisal Values from HCAD

June 17, 2009 Notice of Public Meeting to Discuss Budget & Tax Rate

June 16, 2009 2:00 PM Budget Development Committee Meeting Final Draft of 2009-10 Proposed Budget

June 16, 2009 4:30 PM Board Finance Committee Meeting Final Budget Overview

June 19, 2009 2009-10 Budget Must Be Prepared by This Date

June 23, 2009 6:00 PM Tentative Budget Workshop Proposed 2009-10 Budget

June 30, 2009 6:00 PM Special Board Meeting

Budget Hearing, Agenda Items, & Adoption of 2009-10

Budget

September 2009 Certified Appraisal Values from HCAD

October 13, 2009 Adoption of 2009 Tax Rate & Tax Roll

2009-10 Budget Calendar Summary 3-4-09.xls 3/4/20095:15 PM

1


Regular Meeting




/ Discussion Item


Title: Fall Creek Elementary Close Out

Consideration of Close Out and Final Payment to Gamma Construction

Superintendent’s Recommendation: The Superintendent recommends that the Board of Trustees approve the final payment of $547,611.00, for a total project cost of $10,937,115.00, to Gamma Construction for the construction of Fall Creek Elementary. Background/Impact Information: At its July 11, 2006 meeting, the Humble ISD Board of Trustees approved Joiner Partnership as the architect for what was then Elementary #24. Subsequently, at its May 8, 2007 meeting, the Board approved a construction contract in the amount of $11,021,000 with Gamma Construction Company for the construction of Elementary #24. The scope of the project included an 80,000 square foot facility serving grades pre K – 5, similar in design and floor plan to River Pines Elementary. Elementary #24 was officially named Fall Creek Elementary and opened in August 2008. On August 20, 2008, representatives of the Architect, HISD Construction Department, and HISD Support Services function determined the project was substantially complete. Since that time, all punch list items have been completed to Humble’s and the architect’s satisfaction; all close out documents have been submitted by the contractor, reviewed by the Architect, and reviewed by HISD’s internal auditor with no findings; and the warranty period has commenced. Funding for this project was available from bonds sold in Phase 3 and 4 of the 2005 Bond Program. The project was completed $83,985 under the contracted amount. Fiscal Impact Statement:


Student

Approved

2

Cost: Budgetary Codes: Recurring Fund Func Object Sub-Object Org

PIC One-Time - - - - -





Attachments: Attachment No. 1 - Final Application for Payment Attachment No. 2 - Final Change Order Campus/Department Submitting Form: Facility Planning and Construction Date Submitted: February 20, 2009 Resource Personnel: Martha Buckner 281-641-8712 [email protected] Deborah Yocham 281-641-8702 [email protected] Debbie Smith 281-641-8713 [email protected]

1


Regular Meeting




/ Discussion Item


Title: CLC Renovations & Additions - Construction Manager at Risk

Consideration of Approval of Durotech, Inc. as Construction Manager at Risk for the CLC Renovations & Additions project Superintendent’s Recommendation: The Superintendent recommends that the Board of Trustees approve the selection of Durotech, Inc. as the Construction Manager at Risk for the renovations and additions at the Community Learning Center. Background/Impact Information: The construction phase of the Community Learning Center Additions and Renovation Project is scheduled to begin in June 2009 with the movement of seventeen (17) t-bldgs from behind the campus. The Project includes the addition of 2 new wings, approximately 39,000 square feet -- 20 indoor classrooms, administrative offices, resource areas, and restrooms, as well as outdoor learning spaces. Currently the Community Learning Center provides services to a diverse group of students including

♦ Secondary Long Term Discipline Program, ♦ Elementary Short Term Discipline Programs, ♦ PACE and Pre-PACE Programs, ♦ Family/Adult Literacy Program, ♦ Behavior Training Center, ♦ Credit Recovery Program, ♦ Life Skills for Student Parents Program, and ♦ Childcare facilities and services for these programs.

The additional square footage will accommodate those students who have previously been housed in t-buildings plus space for a Post-Expulsion program, an Employee Childcare


Student

Approved

2

program and a PreSchool Program for Children with Disabilities (PPCD) assessment team and their appropriate learning environment. Bond funds from Phase 6 of the 2005 Bond Program and Phase 1 of the 2008 Bond Program will be used for this project. Construction cost for this project is estimated to be less than $8 million. At the January 13, 2009 Board of Trustees Meeting, the Board approved SHW as the architect and Construction Manager at Risk as the delivery method for the CLC Renovation project. On February 17, 2009, sealed proposals were received from fourteen (14) general contractors answering a Request for Competitive Sealed Proposal(RfCSP) for the CLC project. All 14 proposals were opened and read publicly. From those general contractors, a selection committee including HISD Construction and Purchasing personnel and SHW representatives reviewed all proposals based on the selection criteria published with the RFP. Based on the proposal tabulations, 5 contractors were selected for interviews. Interviews were held on February 19, 2009. At that time it was determined that Durotech, Inc represented the best value to the District scoring highest on the interview selection criteria. Based on the interviews, Durotech was considered the best value for the following reasons:

• experience with the CM @ Risk delivery method • extensive experience with educational facilities of same/similar scope and size • proven track record of “on-time” or early completions • exemplary safety record • prior successful experience in Humble ISD with new construction and renovation

projects Details of all proposals and references, including company financial information is available in the CM at Risk Proposal received at the interview. SHW, Humble ISD, and Durotech will work collaboratively to arrive at a Guaranteed Maximum Price (GMP). At that time, the proposed price will be presented to the Board for approval. Fiscal Impact Statement: Cost: Budgetary Codes:






3

Attachments: Campus/Department Submitting Form: Facility Date Submitted: February Resource Personnel: Martha Buckner 281-641-8712 [email protected] Deborah Yocham 281-641-8702 [email protected] Debbie Smith 281-641-8713 [email protected] Catherine Dalles 281-641-8994 [email protected]

1


Regular Meeting




/ Discussion Item


Title: Elementary School #26 - Building Commissioning

Consideration of Approval of Bath Commissioning as the Commissioning Agent for Elementary #26 Superintendent’s Recommendation: The Superintendent recommends that the Board of Trustees approve the selection of Bath Commissioning as the Building Commissioning Agent for Elementary #26. Background/Impact Information: Elementary School No. 26 is scheduled to open in August, 2010. It will be located in the southern section of Eagle Springs, Terrabrook Development and will provide relief for Eagle Springs Elementary. Approximately 100,000 square feet, the school will accommodate 950 students in grades PreKindergarten through Grade 5. It is our intent to design Elementary No. 26 as the district’s first sustainable school facility that meets Leadership in Environmental and Energy Design (LEED) or Collaborative for High Performance Schools (CHPS) standards. These “green” building design and construction standards consider aspects such as daylighting, indoor air quality, and energy efficiency to build a school that runs efficiently, saves money, protects natural resources, and provides superior visual, acoustical, and thermal comfort. At its December 9, 2008 meeting, the HISD Board of Trustees approved PBK as Architect and Tellepsen as Construction Manager at Risk for the Elementary #26 project. To complement and complete the team of professionals needed for this benchmark project, a professional building commissioning agent was recommended. The commissioning agent provides a multitude of services related to the facility’s operating systems, particularly MEP and HVAC, including but not limited to: review of design documents, scheduling recommendations, specification reviews and recommendations, pre-operation testing and balancing, start-up testing with verification of system’s efficiency, problem detection and correction, and post operation training.


Student

Approved

2

On February 16, 2009 sealed statements were received from fourteen (14) professional firms answering a Request for Qualifications(RFQ)) for professional building commissioning services for the Elementary #26 project. All 14 statements were opened and read publicly. From those firms, a selection committee including HISD Construction, Maintenance, and Purchasing, and PBK representatives reviewed all statements based on the criteria published with the RFQ. Based on the statement tabulations, three (3) contractors were selected for interviews. Interviews were held on February 18, 2009. At that time it was determined that Bath Commissioning represented the best value to the District scoring highest on the interview selection criteria. Based on the interviews, Bath was considered the best value for the following reasons:

• extensive experience with educational facilities of same/similar scope and size including LEED certified facilities

• extensive “hands-on” testing and verification experience • proven track record of “on-time” completions • references including value added findings as a result of services provided • exemplary safety record • experienced professional engineer staff including LEED AP certifications

Details of all proposals and references, including company financial information is available in the Commissioning Agent Proposal received at the interview. Fiscal Impact Statement: Cost: Budgetary Codes:






Attachments: Campus/Department Submitting Form: Facility Planning & Construction Date Submitted: February 20, 2009 Resource Personnel: Martha Buckner 281-641-8712 [email protected] Deborah Yocham 281-641-8702 [email protected] Debbie Smith 281-641-8713 [email protected]

1


Regular Meeting




/ Discussion Item


Title: Turner Stadium Renovation - Construction Manager at Risk

Consideration of Approval of Braeburn Construction Company Ltd, LLP as the Construction Manager at Risk for the Turner Stadium Renovation project Superintendent’s Recommendation: The Superintendent recommends that the Board of Trustees approve the selection of Brae Burn Construction Company Ltd, LLP as the Construction Manager at Risk for the additions and renovations at Turner Stadium. Background/Impact Information: The Turner Stadium Renovation is scheduled to begin in March 2009 concurrent with the sale of Phase 1 of the 2008 Bond Program. Construction cost for this project is estimated to be $12.8 million and will be provided with funding from the proceeds of Phase 1 of the 2008 Bond program. It is our intent to create a design for the completed stadium which will allow the stadium to be a showcase facility for the district. At the December 9, 2008 Board of Trustees meeting, the Board approved PBK as the architect and Construction Manager at Risk as the delivery method for the Turner Stadium project. On February 2, 2009 sealed proposals were received from fourteen (14) general contractors answering a Request for Competitive Sealed Proposal(RfCSP) for the Turner Stadium project. All 14 proposals were opened and read publicly. From those general contractors, a selection committee including HISD Construction, Purchasing, and Athletic personnel and PBK representatives reviewed all proposals based on the selection criteria published with the CSP. Based on the proposal tabulations, four (4) contractors were selected for interviews. Interviews were held on February 4, 2009. At that time it was determined that Brae Burn Construction Company Ltd, LLP represented the best value to the District scoring highest on the interview selection criteria.


Student

Approved

2

Based on the interviews, Brae Burn was considered the best value for the following reasons: • experience with the CM @ Risk delivery method • extensive experience with athletic facilities • proven track record of “on-time” or early completions • exemplary safety record • prior successful experience in Humble ISD with new construction and renovation

projects Details of all proposals and references, including company financial information is available in the CM at Risk Proposal received at the interview. PBK, Humble ISD, and Brae Burn will work collaboratively to arrive at a Guaranteed Maximum Price (GMP). At that time, the proposed price will be presented to the Board for approval. Fiscal Impact Statement: Cost: Budgetary Codes:






Attachments: Campus/Department Submitting Form: Facility Planning & Construction Date Submitted: February 20, 2009 Resource Personnel: Martha Buckner 281-641-8712 [email protected] Deborah Yocham 281-641-8702 [email protected] Jody Doebele 281-641-8738 [email protected] Catherine Dalles 281-641-8994 [email protected]

1


Regular Meeting




/ Discussion Item


Title: MUD No. 342 Tap Fees

Consideration of Harris County Municipal Utility District No. 342 Tap Fees for Middle School No. 8 Superintendent’s Recommendation: The Superintendent recommends that the Board of Trustees approve the payment of $535,795.75 to Harris County Municipal Utility District No. 342 for tap fees related to Middle School No. 8. Background/Impact Information: In preparation for a November 2008 project start date, the Board of Trustees approved Durotech LP as the Construction Manager at Risk (CM At-Risk) for Middle School No. 8 at the February 12, 2008 Board of Trustees meeting. Subsequently, at the October 14, 2008 meeting, the Board approved a Guaranteed Maximum Price (GMP) of $24,431,924 for construction costs. Joiner Partnerships is the architect on the project. Water and sewer utilities are provided to the Middle School No. 8 site by Harris County Municipal Utility District No. 342. Municipal utility districts may charge non-taxable entities certain fees to provide services. Specifically, Chapter 49, section 212(d)(ii), of the Water Code authorizes MUDS to charge non-taxable entities a fee that does not exceed the actual costs to the MUD for the construction, installation, or inspection of a tap or connection to water, sanitary sewer, or drainage facilities, including all necessary service lines and meters, or for wholesale facilities that serve such water, sanitary sewer, or drainage facilities to the extent necessary to provide services to the non-taxable entity if financed in whole or in part by tax-supported or revenue bonds of the MUD. These costs are not deemed to be an impact fee under Chapter 395, Local Government Code. Humble ISD’s share of the construction and installation costs for these infrastructure facilities totals $535,795.75 and include Humble's use of: (1) water and wastewater treatment plants,


Student

Approved

2

(2) storm water detention ponds and pump stations, (3) sanitary sewer lift stations and (4) water, sanitary sewers and storm sewers. Humble ISD’s pro-rata share of MUD No. 342’s infrastructure costs was calculated based on Middle School No. 8’s proposed daily usage of sewer/water and calculated drainage/run-off requirements. MUD No. 342 has provided Humble ISD with detailed project cost documentation and general site plans to verify the actual construction and installation costs of the infrastructure facilities. Funding for the land acquisition and related site preparation costs for Middle School No. 8, including MUD fees, is within Phase 3 of the 2005 Bond Program. Fiscal Impact Statement: Cost: Budgetary Codes:






Attachments: None Campus/Department Submitting Form: Facility Date Submitted: February Resource Personnel: Martha Buckner 281-641-8712 [email protected] Deborah Yocham 281-641-8702 [email protected] Stephanie 281-641-8008 stephanie.rosenberg@humble,k12.tx.us Rosenberg Elise Putnam 281-641-8013 [email protected] Debbie Smith 281-641-8713 [email protected]

humble independent school district “focus on …...independent school district with jpmorgan chase...

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