humble independent school district special ......education code 44.0312 all district contracts for...

HUMBLE INDEPENDENT SCHOOL DISTRICT

SPECIAL MEETING AND WORKSHOP

OF THE BOARD OF TRUSTEES Notice is hereby given that a special meeting of the Board of Trustees will be held on Tuesday, May 29, 2012 for a Special Meeting at 6:00 p.m. followed by a Board Budget Workshop of the Board of Trustees. The meeting will be held in the Board Room at 20200 Eastway Village, Humble, Texas. The subjects to be discussed are as follows: Call to Order – 6:00 p.m. Adjourn to Closed Session Closed Session

Section 551.074 Personnel – Deliberate appointment, employment, evaluation, re-assignment, duties, discipline or dismissal of a public employee.

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

Reconvene to Open Session

BOARD ACTION AGENDA

Action: Closed session

Consideration of and action on items addressed in closed session

a) Approval of personnel recommendations Action: Consent Agenda

Consideration of items placed on the consent agenda

1. GOVERNANCE REPORTS AND CONSIDERATIONS

Consideration of Proposed Revisions to Policy CH (LOCAL)

ADMINISTRATION RECOMMENDATION The Superintendent recommends that the Board of Trustees approve the proposed revisions to Policy CH (LOCAL)/

2. FINANCIAL SERVICES REPORTS, CONSIDERATIONS AND PURCHASES

A. Action: Budgetary Amendments

Consideration of Budgetary Amendments

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

B. Action: Property and Casualty Insurance Program

Consideration of Property and Casualty Insurance Program

ADMINISTRATION RECOMMENDATION The Superintendent recommends that the Board of Trustees approve the selection of various vendors to provide insurance coverage for the 2012-13 fiscal year.

C. Report: Property and Casualty Insurance Consulting Services

Report on Property and Casualty Insurance Consulting Services 3. SUPPORT SERVICES REPORTS. CONSIDERATIONS AND PURCHASES

A. Action: Road at Summer Creek High School

Consideration of Road at Summer Creek High School

ADMINISTRATION RECOMMENDATION

The Superintendent recommends that the Board of Trustees approve the Superintendent entering into an agreement with Trillium Development Company to complete a road at Summer Creek High School.

WORKSHOP AGENDA

1. 2012-2013 Budget Development

Adjourn This Notice is given pursuant to Section 551.001 et. seq. of the Government Code. Dated: May 23, 2012 S/ _____________________________________ Brent Engelage, Secretary

1

Meeting Date: May 29, 2012

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, Please Explain:

Title: Policy CH (LOCAL)

Consideration of Proposed Revisions to Policy CH (LOCAL)

Superintendent’s Recommendation: The Superintendent recommends that the Board of Trustees approve the proposed revisions to Policy CH (LOCAL). Background/Impact Information: Board Policy CH (LOCAL) sets forth District policy regarding purchases of personal property and services. Purchases of construction-related services and real property are covered under other policies. Policy CH (REGULATION) documents the directives to District employees from the Superintendent's Office regarding the contract and purchasing process. Policy CH (LOCAL) was updated in May of 2008 to clarify and further define the Board's delegation of purchasing and contract authority to the Superintendent and to streamline the contract and purchasing process in light of the addition of the General Counsel position. During the 81st Legislative Session, House Bill 987 amended the provision of the Texas Education Code relating to school district contracts, other than the purchase of produce or vehicle fuel, to increase from $25,000 to $50,000 the aggregate 12-month threshold value equal to or above which contracts must be made by the method that provides the best value for the District. It repealed provisions governing a school district's purchase of personal property and services valued between $10,000 and $25,000. These changes were incorporated into Policy CH (LOCAL) and submitted for Board approval on November 10, 2009. On May 10, 2011, the Board of Trustees approved a revision to Policy CH (LOCAL) regarding the Superintendent's signature authority related to contracts for naming rights of District facilities.

Board of Trustees Agenda Item

StudentApproved

2

On September 13, 2011, Policy CH (LOCAL) was once again updated with additional provisions for Procurement Restriction and Small Purchases and language changes for Purchase Commitments and Responsibility for Debts. Policy CH (REGULATION) and CH (EXHIBIT) were also presented as information. The proposed changes to CH (LOCAL) are captured in Attachment 2 and clarified in Policy CH (REGULATION) (Attachment 3). The overall intent of these changes is to further streamline the contract and purchasing process as a result of the new organizational structure. The Purchasing Card Program will be fully implemented by fiscal year end. As discussed with the Board of Trustees on September 13, 2011, the District will strictly enforce violations of the purchasing policy and the use of blanket purchase orders will be eliminated. Fiscal Impact Statement: N/A Budgetary Codes: Cost :

Recurring One-Time

Funding Source:

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

Fund

Func Object Sub-Obj.

Org Prog. Activity Source Project

Attachments: Policy CH (LEGAL) – Attachment 1 Proposed Revisions to Policy CH (LOCAL) – Attachment 2 Policy CH (LOCAL) Regulation – Attachment 3 Campus/Department Submitting Form: Purchasing Department and General Counsel Date Submitted: May 29, 2012 Resource Personnel: Shelley Vineyard 281-641-8990 [email protected] Stephanie Rosenberg 281-641-8101 [email protected] Lynn Lynn 281-641-8014 [email protected] Guy Sconzo 281-641-8001 [email protected]

Humble ISD 101913 PURCHASING AND ACQUISITION CH (LEGAL)

DATE ISSUED: 10/7/2011 1 of 14 UPDATE 91 CH(LEGAL)-P

The Board may adopt rules and procedures for the acquisition of goods and services. Education Code 44.031(d)

The Board may delegate its authority regarding an action autho-rized or required to be taken by the District by Education Code Chapter 44, Subchapter B, to a designated person, representative, or committee.

The Board may not delegate the authority to act regarding an ac-tion authorized or required to be taken by the Board by Education Code Chapter 44, Subchapter B.

Notwithstanding any other provision of the Education Code, in the event of a catastrophe, emergency, or natural disaster affecting the District, the Board may delegate to the Superintendent or desig-nated person the authority to contract for the replacement or repair of school equipment under Education Code Chapter 44, Subchap-ter B if emergency replacement or repair is necessary for the health and safety of District students and staff.

Education Code 44.0312

All District contracts for the purchase of goods and services, except contracts for the purchase of produce or vehicle fuel, valued at $50,000 or more in the aggregate for each 12-month period, shall be made by the method that provides the best value for the District:

1. Competitive bidding for services other than construction ser-vices.

2. Competitive sealed proposals for services other than con-struction services.

3. A request for proposals for services other than construction services.

4. An interlocal contract.

5. The reverse auction procedure as defined by Government Code 2155.062(d).

6. The formation of a political subdivision corporation under Lo-cal Government Code 304.001.

Education Code 44.031(a)

BOARD AUTHORITY

DELEGATION OF AUTHORITY

DISASTER EXCEPTION

PURCHASES VALUED AT OR ABOVE $50,000



Note: Regarding construction of school facilities, see CV gen-erally; CVA for competitive bidding; CVB for competitive sealed proposals; CVC and CVD for contracts using a construction manager; CVE for design/build contracts; and CVF for job order contracts for minor re-pairs/alterations.

In awarding a contract, the District shall consider:

1. Purchase price.

2. The reputation of the vendor and of the vendor’s goods and services.

3. The quality of the vendor’s goods or services.

4. The extent to which the goods or services meet the District’s needs.

5. The vendor’s past relationship with the District.

6. The impact on the ability of the District to comply with laws relating to historically underutilized businesses.

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

8. For a contract that is not for goods and services related to tel-ecommunications and information services, building construc-tion and maintenance, or instructional materials, whether the vendor or the vendor’s ultimate parent company or majority owner has its principal place of business in this state or em-ploys at least 500 persons in this state.

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

Education Code 44.031(b)

In awarding a contract by competitive sealed bid under Education Code 44.031, a district that has its central administrative office lo-cated in a municipality with a population of less than 250,000 may consider a bidder’s principal place of business in the manner pro-vided by Local Government Code 271.9051. This section does not apply to the purchase of telecommunications services or informa-tion services, as those terms are defined by 47 U.S.C. Section 153. Education Code 44.031(b-1)

The factors listed above are the only criteria that may be consi-dered by the District in its decision to award a contract. R.G.V.

FACTORS



Vending v. Weslaco Indep. Sch. Dist., 995 S.W.2d 897 (Tex. App.—Corpus Christi 1999, no pet.).

The Board shall not award a contract for services or for purchase of supplies, materials, or equipment to a bidder whose principal place of business is not in this state, unless the nonresident under-bids the lowest bid submitted by a responsible resident bidder by an amount that is not less than the amount by which a resident bidder would be required to underbid a nonresident bidder to ob-tain a comparable contract in the state in which the nonresident’s principal place of business is located. Gov’t Code 2252.001–.002

This requirement shall not apply to a contract involving federal funds. The District shall rely on information published by the comptroller in evaluating the bids of a nonresident bidder. Gov’t Code 2252.003–.004

The Board may, by resolution, establish regulations permitting the District to refuse to enter into a contract or other transaction with a person indebted to the District. The District may refuse to award a contract to or enter into a transaction with an apparent low bidder or successful proposer that is indebted to the District.

The term “person” includes an individual, sole proprietorship, cor-poration, nonprofit corporation, partnership, joint venture, limited liability company, and any other entity that seeks to enter into a contract or other transaction with the District requiring Board ap-proval.


Notice of when and where bids or proposals or the responses to a request for qualifications will be received and opened shall be pub-lished in the county where the District’s central administrative office is located, once a week for at least two weeks prior to the deadline for receiving bids, proposals, or responses to a request for qualifi-cations. If there is no newspaper in that county, the advertising shall be published in a newspaper in the county nearest the county seat of the county in which the District’s central administrative of-fice is located. In a two-step procurement process, the time and place where the second-step bids, proposals, or responses will be received are not required to be published separately. Education Code 44.031(g)

The District may receive bids or proposals through electronic transmission if the Board adopts rules to ensure the identification, security, and confidentiality of electronic bids or proposals and to ensure that the electronic bids or proposals remain effectively un-opened until the proper time.

OUT-OF-STATE BIDDERS

CONTRACT WITH PERSON INDEBTED TO DISTRICT

NOTICE PUBLICATION

ELECTRONIC BIDS OR PROPOSALS



An electronic bid or proposal is not required to be sealed. A provi-sion of Education Code Chapter 44 that applies to a sealed bid or proposal applies to a bid or proposal received through electronic transmission in accordance with the rules adopted by the Board.


The purchasing requirements of Education Code 44.031 do not apply to a contract for professional services rendered, including the services of an architect, attorney, certified public accountant, engi-neer, or fiscal agent.

The District may contract for professional services rendered by a financial consultant or a technology consultant in the manner pro-vided by Government Code 2254.003, in lieu of the methods pro-vided by Education Code 44.031.

Education Code 44.031(f)

Competitive bids shall not be solicited for professional services of any licensed or registered certified public accountant, architect, landscape architect, land surveyor, physician, optometrist, profes-sional engineer, state-certified or state-licensed real estate ap-praiser, or registered nurse. Contracts for these professional ser-vices shall be made on the basis of demonstrated competence and qualifications to perform the services and for a fair and reasonable price. Gov’t Code 2254.002, .003(a)

An interlocal contract between the District and a purchasing coop-erative may not be used to purchase engineering or architectural services. Gov’t Code 791.011(h)

[See also CV]

If school equipment, a school facility, or a part of a school facility or personal property is destroyed or severely damaged or, as a result of an unforeseen catastrophe or emergency, undergoes major op-erational or structural failure, and the Board determines that the delay posed by the methods provided for in Education Code 44.031 would prevent or substantially impair the conduct of classes or other essential school activities, then contracts for the replace-ment or repair of the equipment, school facility, or the part of the school facility may be made by methods other than those required by Education Code 44.031. Education Code 44.031(h)

The District may acquire computers and computer-related equip-ment, including computer software, through the Department of In-formation Resources (DIR) under contracts with the DIR in accor-dance with Government Code Chapter 2054 or 2157. Education Code 44.031(i)

PROFESSIONAL SERVICES

EMERGENCY DAMAGE OR DESTRUCTION

COMPUTERS



The District may purchase an automated information system using the purchasing method described by Government Code 2157.068 for commodity items or a purchasing method designated by the comptroller to obtain the best value for the state, including a re-quest for offers method. A district that purchases an item using a method listed above satisfies any state law requiring the district to seek competitive bids for the purchase of the item. Gov’t Code 2157.006; 34 TAC 20.391

A school that purchases or leases an automated external defibrilla-tor, as defined by Health and Safety Code 779.001, shall ensure that the defibrillator meets standards established by the federal Food and Drug Administration. Education Code 44.047

Compliance with Education Code 44.031 is not required for pur-chases that are available from only one source, including:

1. An item for which competition is precluded because of a pa-tent, copyright, secret process, or monopoly.

2. A film, manuscript, or book.

3. A utility service, including electricity, gas, or water.

4. A captive replacement part or component for equipment.

The sole source exception shall not apply to mainframe data processing equipment and peripheral attachments with a single-item purchase price in excess of $15,000.

Education Code 44.031(j)–(k)

A contract for the purchase of insurance is a contract for the pur-chase of personal property and shall be made in accordance with Education Code 44.031. Education Code 44.031; Atty. Gen. Op. DM-347 (1995)

The District may execute an insurance contract for a period longer than 12 months, if the contract contains either or both of the provi-sions described at COMMITMENT OF CURRENT REVENUE, be-low. If the District executes a multiyear insurance contract, it need not advertise for insurance vendors until the 12-month period dur-ing which the District will be executing a new insurance contract. Atty. Gen. Op. DM-418 (1996)

Except to the extent prohibited by other law and to the extent con-sistent with Education Code Chapter 44, Subchapter B, the District may use competitive bidding to select a vendor as authorized by Education Code 44.031(a)(1).

AUTOMATED INFORMATION SYSTEM

AUTOMATED EXTERNAL DEFIBRILLATORS

SOLE SOURCE

INSURANCE

MULTIYEAR CONTRACTS

COMPETITIVE BIDDING



The District shall award a competitively bid contract at the bid amount to the bidder offering the best value for the District. In de-termining the best value for the District, the District is not restricted to considering price alone but may consider any other factors stated in the selection criteria. The selection criteria may include the factors listed in Education Code 44.031(b) [see FACTORS, above].

Except as provided below, Local Government Code Chapter 271, Subchapter B does not apply to a competitive bidding process un-der this policy.


Bids may be opened only by the Board at a public meeting or by an officer or employee of the District at or in an office of the District. A bid that has been opened may not be changed for the purpose of correcting an error in the bid price. Local Gov’t Code 271.026

The Board shall have the right to reject any and all bids. Local Gov’t Code 271.027(a)

In determining who is a responsible bidder, the Board may take into account the safety record of the bidder; of the firm, corporation, partnership, or institution represented by the bidder; or of anyone acting for such firm, corporation, partnership, or institution, pro-vided that:

1. The Board has adopted a written definition and criteria for ac-curately determining the safety record of the bidder.

2. The Board has given notice in the bid specifications that the safety record of a bidder may be considered in determining the bidder’s responsibility.

3. The determinations are not arbitrary and capricious.

Local Gov’t Code 271.0275

If the District receives two or more bids from responsible bidders that are identical, in nature and amount, as the lowest and best bids, it shall select only one bidder from the identical bids.

If only one of the bidders submitting identical bids is a resident of the District, that bidder shall be selected. If two or more such bid-ders are residents of the District, one shall be selected by the cast-ing of lots. In all other cases, one of the identical bids shall be se-lected by the casting of lots.

OPENING BIDS

SAFETY RECORD

IDENTICAL BIDS



The Board shall prescribe the manner of casting lots and shall be present when the lots are cast. All qualified bidders or their repre-sentatives may be present at the casting of lots.


In selecting a vendor through competitive sealed proposals as au-thorized by Education Code 44.031(a)(2), the District shall follow the procedures prescribed below.

The District shall prepare a request for competitive sealed propos-als that includes information that vendors may require to respond to the request. The District shall state in the request for proposals the selection criteria that will be used in selecting the successful offeror.

The District shall receive, publicly open, and read aloud the names of the offerors and, if any are required to be stated, all prices stated in each proposal. Not later than the 45th day after the date on which the proposals are opened, the District shall evaluate and rank each proposal submitted in relation to the published selection criteria.

The District shall select the offeror that offers the best value for the District based on the published selection criteria and on its ranking evaluation. The District shall first attempt to negotiate a contract with the selected offeror. The District may discuss with the se-lected offeror options for a scope or time modification and any price change associated with the modification. If the District is unable to negotiate a satisfactory contract with the selected offeror, the Dis-trict shall, formally and in writing, end negotiations with that offeror and proceed to the next offeror in the order of the selection ranking until a contract is reached or all proposals are rejected.

In determining the best value for the District, the District is not re-stricted to considering price alone but may consider any other fac-tors stated in the selection criteria.


To increase efficiency and effectiveness, the District may contract or agree with other local governments and with state agencies, in-cluding the comptroller, to perform some of its purchasing func-tions. Gov’t Code 791.001, .011, .025

An interlocal contract must be authorized by the Board and the go-verning body of each contracting party; must state the purpose, terms, rights, and duties of the contracting parties; and must speci-fy that each party paying for the performance of governmental

COMPETITIVE SEALED PROPOSALS

REQUEST FOR PROPOSALS

OPENING PROPOSALS

SELECTION

BEST VALUE DETERMINATION

INTERLOCAL AGREEMENTS



functions or services shall make those payments from current rev-enues available to the paying party.

An interlocal contractual payment must be in an amount that fairly compensates the performing party for the services or functions per-formed under the contract. The contract may be renewed annually.

Gov’t Code 791.011(d)–(f)

The District may agree with another local government, including a nonprofit corporation that is created and operated to provide one or more governmental functions and services, or with the state or a state agency, including the comptroller, to purchase goods and services reasonably required for the installation, operation, or maintenance of the goods. Such an agreement may not, however, apply to services provided by firefighters, police officers, or emer-gency medical personnel.

A district that purchases goods and services by agreement with another local government or with the state or state agency satisfies the requirement to seek competitive bids for the purchase of goods and services.

Gov’t Code 791.025(b)–(c); Atty. Gen. Op. JC-37 (1999)

Purchasing services performed for the District by the comptroller shall include:

1. The extension of state contract prices to the District when the comptroller considers it feasible.

2. Solicitation of bids on items desired by the District if the solici-tation is considered feasible by the comptroller and is desired by the District.

3. Provision of information and technical assistance to the Dis-trict about the purchasing program.

The comptroller may charge the District its actual costs in providing purchasing services.


The District may participate in the purchasing program, including participation in purchases that use the reverse auction procedure, by filing with the comptroller a resolution adopted by the Board re-questing that the District be allowed to participate on a voluntary basis, to the extent the comptroller deems feasible, and stating that the Board shall:

STATE PURCHASING PROGRAM

DISTRICT REQUIREMENTS



1. Designate an official to act for the District in all matters relat-ing to the program, including the purchase of items from the vendor under any contract.

2. Direct the decisions of its representative.

3. Be responsible for:

a. Submitting requisitions to the commission under con-tract(s) and for payment directly to the vendor; and

b. Electronically sending purchase orders directly to ven-dors, or complying with procedures governing a reverse auction purchase, and electronically sending the comptroller reports on actual purchases.

4. Be responsible for the vendor’s compliance with all conditions of delivery and quality of the purchased item.

A purchase made through participation in this program meets any state requirement to seek competitive bids for the purchase of the item.


The comptroller shall develop a schedule of multiple award con-tracts that have been previously awarded using a competitive process by the federal government or any other governmental enti-ty in any state.

The District may purchase goods or services directly from a vendor under a contract listed on a schedule. An authorized purchase sa-tisfies any requirement of state law relating to competitive bids or proposals and satisfies any applicable requirements of Govern-ment Code 2157.

The price listed for a good or service under a multiple award con-tract is a maximum price. The District may negotiate a lower price for goods or services under a contract listed on a schedule.

Gov’t Code 2155, Subch. I

The District may participate in a cooperative purchasing program with another local government or a local cooperative organization. If the District does so, it may sign an agreement with another par-ticipating local government or a local cooperative stating that the District will:

1. Designate a person to act on behalf of the District in all mat-ters relating to the program.

2. Make payments to another participating local government or local cooperative organization or directly under a contract, as provided in the agreement.

MULTIPLE AWARD CONTRACT SCHEDULE

COOPERATIVE PURCHASING PROGRAM



3. Be responsible for the vendor’s compliance.

If the District participates in a cooperative purchasing program, it satisfies any law requiring it to seek competitive bids.

Local Gov’t Code 271.102; Atty. Gen. Op. JC-37 (1999)

A district that enters into a purchasing contract valued at $25,000 or more under Education Code 44.031(a)(5) (interlocal contract), under Local Government Code Chapter 271, Subchapter F (coop-erative purchasing program), or under any other cooperative pur-chasing program authorized for school districts by law shall docu-ment any contract-related fee, including any management fee, and the purpose of each fee under the contract.

The amount, purpose, and disposition of any fee described above must be presented in a written report and submitted annually in an open meeting of the Board. The written report must appear as an agenda item. The Commissioner may audit the written report.


As approved by the State Council on Competitive Government, the District may voluntarily participate in a contract awarded by the council or a state agency under Government Code 2162. A district that purchases goods or services under this type of contract is considered to have satisfied any state law requiring competitive purchasing. Gov’t Code 2162.102(d)

A district that uses the reverse auction procedure must include in the procedure a notice provision and other provisions necessary to produce a method of purchasing that is advantageous to the Dis-trict and fair to vendors. Local Gov’t Code 271.906(b)

Reverse auction procedure means:

1. A real-time bidding process usually lasting less than one hour and taking place at a previously scheduled time and Internet location, in which multiple suppliers, anonymous to each oth-er, submit bids to provide the designated goods or services; or

2. A bidding process usually lasting less than two weeks and taking place during a previously scheduled period and at a previously scheduled Internet location, in which multiple sup-pliers, anonymous to each other, submit bids to provide the designated goods or services.

Gov’t Code 2155.062(d)

CONTRACT-RELATED FEE

STATE COUNCIL ON COMPETITIVE GOVERNMENT

REVERSE AUCTION



A contract for the acquisition, including lease, of real or personal property is a commitment of the District’s current revenue only, provided the contract contains either or both of the following provi-sions:

1. Retains to the Board the continuing right to terminate the con-tract at the expiration of each budget period during the term of the contract.

2. Is conditioned on a best efforts attempt by the Board to obtain and appropriate funds for payment of the contract.


If a change in plans or specifications is necessary after the perfor-mance of a contract is begun or if it is necessary to decrease or increase the quantity of work to be performed or of materials, equipment, or supplies to be furnished, the District may approve change orders making the changes. The District may grant gener-al authority to an administrative official to approve the change or-ders.

The total contract price may not be increased because of the changes unless additional money for increased costs is approved for that purpose from available money or is provided for by the au-thorization of the issuance of time warrants.

A contract with an original contract price of $1 million or more may not be increased by more than 25 percent. If a change order for a contract with an original contract price of less than $1 million in-creases the contract amount to $1 million or more, the total of the subsequent change orders may not increase the revised contract amount by more than 25 percent of the original contract price.


The District may contract for energy or water conservation meas-ures. Such a contract shall be let according to the procedures es-tablished for professional services by Government Code 2254.004.

The Board shall establish a long-range energy plan to reduce the District’s annual electric consumption by five percent beginning with the 2008 state fiscal year and consume electricity in subse-quent fiscal years in accordance with the District’s energy plan.

Education Code 44.901–.902 [See policy CL for legal require-ments pertaining to such contracts and plans]

The District shall give preference in purchasing to products made of recycled materials if the products meet applicable specifications as to quantity and quality. The District shall regularly review and

COMMITMENT OF CURRENT REVENUE

CHANGE ORDERS

ENERGY OR WATER CONSERVATION MEASURES

RECYCLED PRODUCTS



revise its purchasing procedures and specifications for purchase of goods, supplies, equipment, and materials in order to:

1. Eliminate procedures and specifications that explicitly discri-minate against products made of recycled materials.

2. Encourage the use of products made of recycled materials.

3. Ensure to the maximum extent economically feasible that the District purchase products that may be recycled when they have served their intended use.

The District may seek an exemption from compliance if it has a population of less than 5,000 within its geographic boundaries and demonstrates to the Water Commission that compliance would work a hardship on the District.

Health and Safety Code 361.426

If the cost and quality are equal, the District shall give preference in purchasing to agricultural products, including textiles and other similar products that are produced, processed, or grown in Texas. “Processed” means canning, freezing, drying, juicing, preserving, or any other act that changes the form of a good from its natural state to another form. If Texas agricultural products are not equal in cost and quality to other agricultural products, the District shall give preference in purchasing to agricultural products produced, processed, or grown in the United States, if the cost and quality of the U.S. and foreign products are equal.

The District may not adopt product purchasing specifications that unnecessarily exclude agricultural products produced, processed, or grown in Texas.

If cost is equal and the quality is not inferior, the District shall give preference to Texas vegetation when it purchases vegetation for landscaping purposes.


Each contract proposed for the purchase or lease of one or more school buses, including a lease with an option to purchase, shall be submitted to competitive bidding when the contract is valued at $20,000 or more. Education Code 44.031(l) [See CNB]

While engaged in procuring goods and services or awarding a con-tract, the District:

1. May not consider whether a vendor is a member of or has another relationship with any organization; and

AGRICULTURAL PRODUCTS

VEGETATION FOR LANDSCAPING

BUS PURCHASE OR LEASE

RIGHT TO WORK



2. Shall ensure that its bid specifications and any subsequent contract or other agreement do not deny or diminish the right of a person to work because of the person’s membership or other relationship status with respect to any organization.


The District may not spend grant funds it receives from the Perma-nent Fund for Tobacco Education and Enforcement to pay:

1. Lobbying expenses incurred by the District;

2. A person or entity that is required under Government Code Chapter 305 to register as a lobbyist with the Texas Ethics Commission;

3. Any partner, employee, employer, relative, contractor, consul-tant, or related entity of a person or entity of a registered lob-byist (as described in item 2); or

4. A person or entity who has been hired to represent associa-tions or other entities for the purpose of affecting the outcome of legislation, agency rules, ordinances, or other government policies.

Gov’t Code 403.1067

For provisions pertaining to criminal history record information on contractors, see CJA(LEGAL).

A Board member, employee, or agent shall not, with criminal negli-gence, make or authorize separate, sequential, or component pur-chases to avoid the purchasing requirements set out in Education Code 44.031. An officer or employee shall not knowingly violate Education Code 44.031 in any other manner.

“Component purchases” means purchases of the component parts of an item that in normal purchasing practices would be made in one purchase. “Separate purchases” means purchases, made separately, of items that in normal purchasing practices would be made in one purchase. “Sequential purchases” means purchases, over a period, of items that in normal purchasing practices would be made in one purchase.

Violation of this provision is a Class B misdemeanor and an of-fense involving moral turpitude, conviction of which shall result in removal from office or dismissal from employment. A Board mem-ber who is convicted of a violation of this provision is considered to have committed official misconduct and for four years after the date of final conviction, the removed person is ineligible to be appointed or elected to public office in Texas, is ineligible to be employed by

LOBBYING RESTRICTION: TOBACCO EDUCATION GRANT FUNDS

CRIMINAL HISTORY

IMPERMISSIBLE PRACTICES



or act as an agent for the state or a political subdivision, and is in-eligible to receive any compensation through a contract with the state or a political subdivision. [See BBC]


A court may enjoin performance of a contract made in violation of Education Code Chapter 44, Subchapter B. A county attorney, dis-trict attorney, criminal district attorney, citizen of the county in which the District is located, or any interested party may bring an action for an injunction. A party who prevails in an action brought under this subsection is entitled to reasonable attorney’s fees as ap-proved by the court. Education Code 44.032(f)

INJUNCTION

Humble ISD 101913 PURCHASING AND ACQUISITION CH (LOCAL)

DATE ISSUED: 11/4/2011 1 of 8 LDU 2011.04 CH(LOCAL)-X

The Board authorizes the purchasing director, under the supervi-sion of the assistant superintendent for financial services, to plan for procurement of equipment and supplies, request quotations, investigate vendors, negotiate contracts (with the assistance of le-gal counsel, as necessary), sign purchase orders, assist in the de-velopment of specifications, and request and publicly open bids and proposals.

The Board delegates to the Superintendent or designee the author-ity to determine the method of purchasing, in accordance with this policy and applicable law, and to make budgeted purchases.

The Board shall approve all contracts for purchases of personal property that aggregate to a value of $50,000 or higher in a fiscal year and all single purchases of personal property that are valued at $25,000 or greater except as otherwise provided in this policy.

The Board shall approve all contracts for purchases of services valued at $25,000 or higher except as provided in this policy.

This policy shall apply to the purchase of tangible personal prop-erty or services, except it shall not apply to the purchase of con-struction-related services. [For construction of school facilities, see Board policies CV generally, CVA for competitive bidding, CVB for competitive sealed proposals; CVC for design/build contracts, CVD and CVE for contracts using a construction manager, CVF for job order contracts for minor repairs/alterations, and CHG regarding purchases of real property.]

No District employee with purchasing authority may authorize the purchase of goods or services from any individual(s) related within the second degree by blood or marriage to that employee or from any entity that is controlled, owned, or operated by that employee or by a relative within the second degree by blood or marriage to the employee. [See BBFB(LEGAL) for Board members]

A District employee shall not be permitted to purchase supplies or equipment for personal use through the District’s purchasing de-partment or via special discounts and arrangements made between the District and its qualified vendors.

All purchase commitments shall be made by the Superintendent or designee on a properly drawn and issued purchase order or such other purchase mechanism as approved by the Board, in accor-dance with administrative regulations. [See CH(REGULATION)]

The Board shall assume responsibility for debts incurred in the name of the District so long as those debts are for purchases made in accordance with adopted Board policy and current administrative procedures. The Board shall not be responsible for debts incurred

PURCHASING AGENT

PURCHASING AUTHORITY

PROCUREMENT RESTRICTION

PERSONAL PURCHASES

PURCHASE COMMITMENTS

RESPONSIBILITY FOR DEBTS

Deleted: for



by persons or organizations not directly under Board control or debts incurred in contradiction to applicable Board policies or cur-rent administrative regulations; persons making unauthorized pur-chases shall assume full responsibility for all such debts.

No other employee other than the Superintendent, or the assistant superintendent for financial services in the Superintendent’s ab-sence, shall be authorized to sign contracts that obligate the Dis-trict, except as otherwise provided in this policy. The Superinten-dent shall develop administrative procedures for contract review and negotiation by legal counsel as follows:

1. The Superintendent may sign contracts for the purchase of goods or services that are not required to be approved by the Board.

2. The Superintendent may designate, by administrative regula-tion, a representative of the District to execute contracts for academic and curricular/co-curricular purchases valued below $25,000.

3. The Superintendent may designate, by administrative regula-tion, a representative of the District to execute contracts for construction, including change orders, valued below $25,000.

4. The Superintendent may designate, by administrative regula-tion, a class of representatives of the District to sign contracts for goods and services valued below $2,500 that have been pre-approved by legal counsel.

In addition to the above, the Superintendent may negotiate and execute the following types of agreements on behalf of the District without seeking Board approval:

1. Utility easements necessary for the provision of utility services to District property.

2. Right of way easements valued below $25,000.

3. Agreements or memoranda of understanding related to in-structional programs or services that do not have a foresee-able monetary budgetary impact above $25,000.

4. Grant agreements valued below $50,000 in a fiscal year unless Board approval is otherwise required by law or the grantor.

5. Vendor- and employee-related settlement agreements valued below $50,000 when no previous Board action has been taken.

CONTRACT SIGNATURES

Formatted: Bullets and Numbering


Deleted:

Deleted: , or the Superintendent’s designee



6. Special education-related settlement agreements below $25,000 in a fiscal year.

7. Agreements for the use of District facilities valued below $25,000 in a fiscal year.

8. Agreements for the generation of revenue to the District pro-jected to be less than $50,000 in a fiscal year, provided, how-ever, that agreements related to the naming of District facili-ties or substantial components of District facilities (such as athletic fields, stadiums, or other areas of substantial public exposure) must be approved by the Board regardless of the amount of projected revenue in a fiscal year.

Principals and other administrators have authority over budget ex-penditures but may not execute contracts related to those expendi-tures unless authorized by the Superintendent under the require-ments of this policy.

All contracts must be finalized and signed prior to purchase order commitments. All purchase commitments shall be made by the Superintendent or designee on a properly drawn and issued pur-chase order or such other purchase mechanism as approved by the Board, in accordance with administrative regulations.

Each item or service to be purchased must be selected in accor-dance with one of the identified purchase methodologies in this policy or the corresponding administrative regulations, as appropri-ate, with documentation provided to the purchasing department.

The Board delegates to the Superintendent the authority to de-velop administrative regulations for procedures to contract for pur-chases of personal property valued below $50,000 in the aggre-gate and services valued below $25,000 in the aggregate in a given fiscal year. The administrative regulations shall be available to the public in electronic format.

Except as otherwise allowed by applicable law or this policy, all purchases of personal property that aggregate in a given fiscal year to $50,000 or higher and all purchases of services that aggre-gate in a given fiscal year to $25,000 or higher must be made by one of the following methods appropriate to the purchase/service needs that provides the best value for the District:

1. Request for proposal.

2. Competitive bidding.

VENDOR SELECTION PROCESSES

ADMINISTRATIVE REQUIREMENTS

PURCHASES OF PERSONAL PROPERTY VALUED BELOW $50,000 AND SERVICES VALUED BELOW $25,000

PURCHASES OF PERSONAL PROPERTY VALUED AT $50,000 AND HIGHER OR SERVICES VALUED AT $25,000 AND HIGHER




3. Competitive sealed proposals.

4. Interlocal agreement.

In awarding a contract, the District shall consider:

1. Purchase price.

2. The reputation of the vendor and of the vendor’s goods and services.

3. The quality of the vendor’s goods and services.

4. The extent to which the goods and services meet the District’s needs.

5. The vendor’s past relationship with the District.

6. The impact on the stability of the District to comply with laws relating to historically underutilized businesses.

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

8. For a contract that is not for goods and services related to telecommunications and information services, building con-struction and maintenance, or instructional materials, whether the vendor or the vendor’s ultimate parent company or major-ity owner has its principal place of business in this state or employs at least 500 persons in the state.

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

A request for proposal may be used as the vendor selection meth-odology when the District has identified a generic or broad view of a purchasing need and where it is determined by the purchasing department that negotiation with submitters will secure the best value for the District.

The process shall be used:

1. To qualify more than one vendor to provide services District-wide, such as a temporary agency or travel agency;

2. To identify and review professional key support services, such as audit, depository bank, and outsourced training providers; and

3. To purchase equipment that requires service, customization, support, and/or maintenance.

The purchasing department shall be authorized to develop specifi-cations for the RFP in consultation with users and to identify an appropriate process to evaluate and negotiate with vendors.

VENDOR SELECTION CRITERIA

REQUEST FOR PROPOSAL (RFP)





The purchasing department shall notify qualified vendors of the RFP and shall identify a date and location by which all the identi-fied components of the RFP must be submitted. RFP submissions not received by the date shall not be reconsidered unless the RFP is reissued for new submissions.

RFP submissions shall not be opened in a public meeting nor may submitters learn the details of other submitters’ proposals until after an award has been made. Supplemental requests for additional or different specifications must be provided to each submitter re-sponding to the RFP.

RFPs may be negotiated with one or more submitters who re-sponded to the RFP in a timely manner, but usually negotiations shall be conducted with one submitter at a time. The District re-serves the right to reject any and all proposals.

If competitive bidding is chosen as the purchasing method, the purchasing department, in consultation with the users, shall pre-pare bid specifications. The specifications and quantity of the goods or services desired to be purchased shall be clearly defined in the bid documents. The bid packets shall identify that all bids shall be submitted to the purchasing department in sealed enve-lopes, plainly marked with the name of the bidder and the time of opening.

The purchasing department shall be authorized to waive technicali-ties in the bid process for awards that are less than $50,000. The purchasing department may permit a bid to be withdrawn prior to the scheduled time for opening and to reject bids received after the specified time. Late bids shall not be opened or considered. The District may reject any and all bids.

Whenever competitive bidding is used, price shall not be the sole award criteria in determining the best value for the District. The District purchasing department shall work with users of services or tangible personal property to identify the appropriate criteria to be used to award the bid, and all such criteria shall be identified in the bid documents. Changes may not be made to the bid specifica-tions nor may additional criteria be added to the consideration unless all bidders are advised in writing of the revisions to criteria and are permitted equal time to submit conforming information.

The purchasing department may consider the safety record of bid-ders in determining the lowest responsible bidder for projects by considering a bidder’s OSHA (Office of Health and Safety Admini-stration) inspection logs for the last three years, lack of appropriate in-place insurance, a loss analysis from a bidder’s insurance car-rier, and a loss history covering all lines of insurance coverage car-

COMPETITIVE BIDDING



ried by the contractor. The bid notice shall indicate it will consider OSHA records and loss history for each project at the time bid specifications are established.

The purchasing department shall be authorized to request users to review the submission and to evaluate which submission repre-sents the best value for the District.

The District may, at the discretion of the purchasing department, require surety and performance bonds for work or purchases of less than $25,000. Bid surety shall be returned to all bidders ex-cept the successful bidder at the time the award is made. The surety of the successful bidder shall be retained until the merchan-dise has been delivered and inspected for quality and other impor-tant requirements. All bids shall be conducted through the pur-chasing department unless specific authorization is granted otherwise.

Bid openings shall be public and those submitting bids should be invited to attend. A tabulation of the bids should be furnished to each bidder. A file of all bids shall be kept for a period of three years and shall be open for public inspection.

If competitive sealed proposals are chosen as the purchasing method, the purchasing department shall prepare the request for proposals and/or specifications for items or services to be pur-chased. All proposals shall be submitted in sealed envelopes, plainly marked with the name of the proposer and the time of open-ing. Proposals received after the specified time shall not be con-sidered. Proposals shall be opened at the time specified, and all proposers shall be invited to attend the proposal opening. Propos-als may be withdrawn prior to the scheduled time for opening. Changes in the content of a proposal, and in prices, may be nego-tiated after proposals are opened. The District may reject any and all proposals.

The District may enter into an interlocal purchase agreement or a cooperative purchasing program agreement to purchase specific or nonspecific goods or services. Once the interlocal or cooperative purchasing agreement has been approved by the Board, pur-chases or contracts, pursuant to such agreements, shall not re-quire additional Board approval.

An interlocal contract between the District and a purchasing coop-erative agreement may not be used to purchase engineering or architectural services.

In addition to other purchasing options described in this policy and allowed by law, the District may acquire computers and computer-

COMPETITIVE SEALED PROPOSALS

INTERLOCAL AGREEMENTS / COOPERATIVE PURCHASING PROGRAMS

COMPUTERS AND RELATED PURCHASES



related equipment, including computer software, through the De-partment of Information Resources (DIR) in accordance with CH(LEGAL). Computer and computer-related equipment pur-chases pursuant to a DIR contract shall not require Board ap-proval.

The District may purchase automated information systems (as de-fined by law) using the purchasing method described by Govern-ment Code 2157.006. Such purchases shall not require Board ap-proval.

If school equipment, a school facility, or a part of a school facility or personal property is destroyed or severely damaged or, as a result of an unforeseen catastrophe or emergency, undergoes major op-erational or structural failure, and the Board determines that the delay posed by the methods provided for in this policy would pre-vent or substantially impair the conduct of classes or other essen-tial school activities, then contracts or purchases for the replace-ment or repair of the equipment, school facility, or the part of the school facility may be made by methods other than those required by Education Code 44.031 and this policy.

In the event that a small, infrequent purchase of $150 or less is re-quired on short notice in order to conduct a group meeting or simi-lar District-related activity, such a purchase may be made by a Dis-trict employee using his or her personal funds. Such a purchase, properly receipted and authorized by the immediate supervisor, shall be reimbursed by the accounts payable department. Under no circumstances may these exceptional procedures be used to circumvent normal purchasing procedures and practice.

The following items shall not be required to be purchased through a competitive procurement process:

1. An item for which competition is absent because of a patent, copyright, secret process, or monopoly.

2. A specific film, manuscript, or book.

3. A utility service, including electricity, gas, or water.

4. A captive replacement part or component for equipment.

The Superintendent will establish administrative regulations for the identification and purchase of sole source items. Contracts for properly documented sole source purchases shall not require Board approval.

Purchases of professional services, as defined by statutory or common law, may not be selected through competitive methods. Professional services shall include the services of attorneys, fiscal

AUTOMATED INFORMATION SYSTEMS

EMERGENCY PURCHASES

SMALL PURCHASES

SOLE SOURCE PURCHASES





ADOPTED:

agents, and architectural, accounting, investigation, and technical computer consulting or similar services of a professional nature where specific knowledge, skill, and experience shall be used to select service providers. The Superintendent shall develop admin-istrative regulations for the identification and qualification of profes-sional services in accordance with applicable laws. The Board shall approve all contracts for the purchase of professional services valued at $25,000 or greater. [See CH (REGULATION)]

The District shall require vendors to provide proof of appropriate levels of insurance in order to contract with the District for the pro-vision of goods or services. The Superintendent or designee shall determine the levels and types of insurance that vendors will be required to provide, including when insurance is not required or may be waived.

INSURANCE

Humble ISD 101913 PURCHASING AND ACQUISITION CH (REGULATION)

DATE ISSUED: 11/4/2011 1 of 4LDU 2011.04 CH(REGULATION)-X

The Superintendent has designated the Director of Purchasing and Risk Management as the Purchasing Agent for purposes of this regulation and corresponding policy. Policy CH outlines the District’s purchasing policy for goods and services that are not otherwise described in policies CV, CVA, CVB, CVC, CVD, CVE or CVF. In the event that there is a conflict or question about interpretation of the District’s purchasing policies or regulations, the District’s Purchasing Agent shall resolve the conflict or determine the appropriate method of purchasing. The Purchasing Agent will develop forms, requirements and other criterion to assist the District in evaluating compliance with the District's purchasing policies.

A sole source purchase can be made without the benefit of a competitive process when there are no other items available in the marketplace that have the same fit, form, and function of the items being purchased, except for purchases of mainframe data-processing equipment and peripheral attachments with a single-item purchase price in excess of $15,000.

In order to qualify as a sole source purchase, the vendor must first complete an Humble ISD Sole Source Affidavit Form. The vendor may also provide the District with an affidavit verifying it to be the sole source of the goods to be purchased, but the affidavit must be accepted by the Purchasing Agent.

Properly qualified professional services do not have to be selected on a competitive basis. There are two types of professional services that are exempted from the competitive purchasing process: Professional services as defined by law and professional services under common law.

When the District seeks the following services (to perform services within the scope of their practice as defined by state law) it must qualify the professionals as provided in the Texas Professional Services Procurement Act, Chapter 2254 of the Texas Government Code, which includes considering the service provider’s competency and qualifications before negotiating a fee or considering a price for the services:

1. Accounting 2. Architecture 3. Landscape Architecture 4. Land Surveying 5. Medicine 6. Optometry 7. Professional Engineering 8. Real Estate Appraising 9. Professional Nursing

AUTHORITY OF PURCHASING AGENT

SOLE SOURCE PURCHASES


DEFINED BY LAW



When the District seeks the following services it will first qualify the services by considering the service provider’s certifications, good standing in the field, reputation, and, if the District does not have personal knowledge of the quality of the services, references. In order to qualify, the service providers may provide the District with promotional materials, a copy of their certification, a resume or curriculum vitae, a reference list or samples of work product.

1. Attorneys 2. Fiscal Agents 3. Financial Consultants 4. Technology Consultants

Professional services also include services of consultants that are not specifically listed in Texas law, but still may qualify as professional services for purposes of the procurement policy. If the District seeks to procure a consultant for services that are not listed above, it must consider the services of the consultant on a case-by-case basis to determine whether to apply the competitive procurement process. The purpose of this Regulation is to provide the factors that the District should consider when considering whether a consultant is a professional consultant.

Factors:

1. Do the services require predominantly mental or intellectual (rather than physical or manual) labor and skill to perform the work?

2. Does the service provider work in a profession that requires years of education and services for one to obtain competence and which calls for a high order of intelligence, skill, and learning?

3. Does the service provider work in a profession where there are technical or ethical standards set by the industry?

4. Does the service provider have to maintain a certain type of license or certification in order to perform the services?

When the District seeks to hire a vendor who meets the definition of professional services under the common law, it will first qualify the services by considering the service provider’s certifications, good standing in the field, reputation, and, if the District does not have personal

DEFINED IN EDUCATION CODE

COMMON LAW

QUALIFYING COMMON LAW PROFESSIONAL SERVICES



knowledge of the quality of the services, references. In order to qualify, the service providers may provide the District with promotional materials, a copy of their certification, a resume or curriculum vitae, a reference list or samples of work product.

The District has determined that the following categories of services meet the requirements to be considered professional services for the purposes of policy CH (Local):

1. Licensed Auditory Therapists

2. Licensed Speech Therapists

3. Licensed Specialist in School Psychology

4. Experts in Autism Spectrum Disorders

5. American Sign Language Interpreters

6. Certified Bilingual Interpreters

The originator of a contract or purchase order for services must complete the Independent Contractor Questionnaire, which is to be signed by the appropriate Division or Department Head prior to requesting a purchase order.

The Superintendent is the only representative of the District who is authorized to sign contracts for purchases of goods or services on behalf of the District. The Superintendent is authorized to sign contracts for purchases that are made in accordance with Board policy.

Policy CH (LOCAL) provides that the Superintendent may authorize certain representatives to sign contracts for purchases of goods or services under $2,500 that have been pre-approved by legal counsel. The Superintendent authorizes the following categories of employees to sign contracts for the purchase of goods or services below $2,500:

1. Division Leaders where the purchase will be made from budgets under their authority.

2. Campus Principals where the purchase will be made from the campus or activity fund budget under their authority.

The Board authorizes the use of the purchasing card as an alternate purchasing mechanism in lieu of a properly drawn

EXAMPLES OF COMMON LAW PROFESSIONAL SERVICES

DETERMINING INDEPENDENT CONTRACTOR STATUS FOR SERVICES

SIGNATURE AUTHORITY

PURCHASING CARD



REVIEWED:

and issued purchase order. In the absence of encum-brance accounting, the amount of each authorized card limit will be reduced from the appropriate budgetary account and set aside in a designated budgetary account as a means of ensuring funds availability.

Employees who intentionally or recklessly attempt to bind the District for the purchase of goods or services in violation of Board policy or this administrative regulation may be held personally responsible for the purchase. The employee may also be considered for reprimand, probation, suspension, or termination.

CONSEQUENCES FOR PURCHASES OF GOODS OR SERVICES MADE OUTSIDE BOARD POLICY OR CH (REGULATION)

1

Meeting Date: May 29, 2012 Occasion:

Regular Meeting

Special Meeting /Workshop

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: Budgetary Amendments

Consideration of Budgetary Amendments

Superintendent’s Recommendation: The Superintendent recommends that the Board of Trustees approve the budgetary amendments described in the accompanying attachments.

Background/Impact Information: The Texas Education Code Section 44.006, the Texas Education Agency Resource Guide Sections 2.10.6 and 5.3.4 and Humble ISD Board Policy CE (LOCAL), page 2, require that certain budgetary amendments be approved by the Board of Trustees. Changes to budgetary accounts in the General Fund, National School Breakfast and Lunch Program and Debt Service Fund that affect functional expenditure categories must be approved by the Board of Trustees according to TEA regulations. By approving these amendments, Humble ISD will be in compliance with both state law and local policy regarding approval of budgetary amendments. Fiscal Impact Statement: There is no change to the General Fund or the National School Breakfast and Lunch Program Fund Balance. The Debt Service Fund Balance will decrease by $1,447,859.

Budgetary Codes:Cost :

RecurringOne-Time

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

Fund Func Object Sub-Obj.

Org Prog. Activity Source Project


StudentApproved

2

Attachments: Budgetary Amendments Detail - Attachment 1 Budget Summary - Attachment 2

Campus/Department Submitting Form: Budget DepartmentDate Submitted: May 22, 2012Resource Personnel: Marilyn Farrell 281-641-8012 [email protected]

Jennifer Eaton 281-641-8024 [email protected] Lynn Lynn 281-641-8014 [email protected]

Humble Independent School District Budgetary Amendments Detail

May 29, 2012

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

General Fund on Estimated Out Instruction Svcs Develop Leadershp Leadershp Counsel Svcs Svcs Transp Extracurr Admin Operation Svcs Process Svcs Svc Acquisit Justice TIRZ OtherExplanation of Amendment Fund Bal 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:

Items Affecting Revenues and Functional Categories:

Transfers Between Functional Categories:Transfers between functional categories to repurpose unemployment insurance for campus needs that were not bond eligible, building modifications and furniture & equipment due to reorganization

0 0 (211,046) (6,291) (3,148) (3,148) (21,043) (15,731) (1,573) (3,148) (9,436) 11,488 (7,392) 276,275 (1,073) (2,392) (2,342) 0 0 0 0 0

Totals 0 0 0 (211,046) (6,291) (3,148) (3,148) (21,043) (15,731) (1,573) (3,148) (9,436) 11,488 (7,392) 276,275 (1,073) (2,392) (2,342) 0 0 0 0 0

Net Effect Change in Transfers Food Maint & Security Data Facility

National School Breakfast & Lunch Program on Estimated Out Service Operation Svcs Process AcquisitExplanation of Amendment Fund Bal Revenues 00 35 51 52 53 81

Items Affecting Fund Balance:


Transfers Between Functional Categories:

Totals 0 0 0 0 0 0 0 0

Net Effect Change in Transfers Debt

Debt Service on Estimated Out Svc TIRZExplanation of Amendment Fund Bal Revenues 00 71 97

Items Affecting Fund Balance:Amend Instructional Facilities Allotment (IFA) and Existing Debt Allotment (EDA) per latest estimates (1,447,859) (1,447,859)


Transfers Between Functional Categories:

Totals (1,447,859) (1,447,859) 0 0 0

Attachment 1

Budget Amendments - Detail 2012-05-29.xls 5/22/20124:45 PM

Attachment 2Humble I.S.D.

2011-2012 Budget SummaryMay 29, 2012

Adopted AmendedGENERAL FUND Budget July August September October November December January February March April May June BudgetRevenues Local Taxes $121,860,881 $121,860,881 Local Other $1,025,000 $9,858 $182,975 $72,874 $1,290,707 State $106,757,313 $8,416,183 $590,694 $115,764,190 TRS On-Behalf $12,662,001 $12,662,001 Federal $45,000 $45,000 Total Revenues $242,350,195 $0 $0 $9,858 $8,599,158 $0 $0 $72,874 $0 $0 $0 $590,694 $0 $251,622,779

Expenditures 11-Instruction $151,424,599 ($39,830) $496,547 $2,522,758 ($199,545) $125,433 $71,568 ($5,528) ($27,244) ($4,872) ($200,043) $154,163,843 12-Instructional Resources & Media Svcs. $2,761,729 $0 $12,595 $56,701 $17,802 ($6,963) ($19,294) ($62) $954 ($6,765) $2,816,697 13-Curriculum Dev. & Instructional Staff Dev. $2,887,998 $18,200 $131,692 $12,844 $122,569 $8,390 $110 $12,583 ($28,576) ($8,437) ($1,269) $3,156,104 21-Instructional Leadership $2,025,096 $29,451 $6,758 $19,704 ($13,153) $700 ($7,721) ($4,201) $293 ($8,648) $2,048,279 23-School Leadership $16,620,045 $0 $4,191 $214,601 $62,464 $318,053 $1,110 ($18,180) $12,629 ($7,913) ($18,106) $17,188,894 31-Guidance, Counseling & Evaluation Svcs. $11,691,878 $300 $35,714 $200,470 $283 ($124,252) ($338) $11,284 $4,350 $1,510 ($11,899) $11,809,300 32-Social Work Services $128,970 $0 $5,912 $276 $2,884 $0 $0 $0 $0 ($1,573) $136,469 33-Health Services $2,624,155 $0 $378 $42,979 ($92) $72,968 $0 $0 $4,100 $0 ($3,068) $2,741,420 34-Student (Pupil) Transportation $8,549,512 ($24,000) $94,534 $88,759 $10,740 $37,126 $1,386 $5,871 ($5,438) $560 ($2,907) $8,756,143 36-Cocurricular / Extracurricular Activities $6,874,725 $6,229 $103,509 $14,341 ($8,100) ($95,348) ($1,186) $10,525 ($1,523) $8,035 ($17,403) $6,893,804 41-General Administration $6,431,250 ($2,777) $86,502 $95,002 $2,000 $90,796 $16,255 $23,744 $6,600 ($1,000) ($13,663) $6,734,709 51-Plant Maintenance & Operations $25,850,694 $3,477 $96,678 $259,104 ($3) $264,554 $0 ($13,266) $89,011 ($55,008) $257,714 $26,752,955 52-Security & Monitoring Svcs. $2,380,936 $9,000 $25,437 $37,682 $9,684 ($19,634) ($68) ($18) ($9,646) $2,478 $32,235 $2,468,086 53-Data Processing Svcs. $2,204,634 $0 $248,986 $206,128 ($15,910) $0 $0 ($40,000) $62,400 ($2,263) $2,663,975 61-Community Svcs. $623,079 ($50) $638 $7,604 $6,850 $0 $0 $0 $1,000 ($2,342) $636,779 71-Debt Service $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 81-Facilities Acquisition & Construction $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 95-Payments to Juvenile Justice Prg. $95,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $95,000 97-Payments to Tax Increment Fund $5,548,355 $0 $0 $0 $0 $0 $0 $0 $0 $456,584 $6,004,939 99-Other Intergovernmental Charges $1,335,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,335,000 Total Expenditures $250,057,655 $0 $0 $1,350,071 $3,778,953 $0 $676,559 $82,574 $0 $0 $0 $456,584 $0 $256,402,396Excess / (Deficiency) of Revenues Over / (Under) Expenditures ($7,707,460) $0 $0 ($1,340,213) $4,820,205 $0 ($676,559) ($9,700) $0 $0 $0 $134,110 $0 ($4,779,617)

Other Financing Sources and Uses Other Resources (Transfer In) $0 $0 Other Uses (Transfers Out) $0 $0Net Other Financing Sources and Uses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $006/30/11 Released Assignments Included Above $0 $0 $0 $1,340,213 $125,000 $0 $100,000 $9,700 $0 $0 $0 $0 $0 $1,574,91306/30/11 Unassigned Fund Balance $67,335,790 $67,335,790Current Unassigned Fund Balance $59,628,330 $64,131,086Note: The District shall target a yearly unassigned general fund balance between 17% (60 days) and 25% (90 days) of total operating expenditures. 91 days/25%

Fund Balance Assignments:Assigned-Building Rentals $36,685 ($36,685) $0Assigned-Capital Outlay $221,676 ($221,676) $0Assigned-Contingency $100,000 ($60,000) ($9,700) $30,300Assigned-Contracted Services (Campus Safety Issues) $125,000 ($125,000) $0Assigned-Curriculum Audit $300,000 ($300,000) $0Assigned-Encumbrances $634,455 ($634,455) $0Assigned-Erate $147,397 ($147,397) $0Assigned-Insurance Deductibles $200,000 $200,000Assigned-Legal Services $200,000 ($40,000) $160,000Assigned-Special Education $1,162,500 $1,162,500Total Fund Balance Assignments $3,127,713 $0 $0 ($1,340,213) ($125,000) $0 ($100,000) ($9,700) $0 $0 $0 $0 $0 $1,552,800Total General Fund Balance $62,756,043 $0 $0 ($1,340,213) ($125,000) $0 ($100,000) ($9,700) $0 $0 $0 $0 $0 $65,683,886

Summary by Function 2012-05-29.xls 5/22/20124:46 PM



Adopted AmendedNATIONAL SCHOOL BREAKFAST AND LUNCH PROGRAM Budget July August September October November December January February March April May June BudgetRevenues Local Revenue $8,136,020 $8,136,020 State $75,000 $75,000 Federal $6,205,728 $6,205,728 Total Revenues $14,416,748 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $14,416,748

Expenditures 35-Food Services $13,726,242 $195,850 $82,228 $128,635 $92,394 ($22,151) $14,203,198 51-Plant Maintenance & Operations $601,001 $4,597 $500 $0 $606,098 52-Security & Monitoring Services $53,505 $1,300 $0 $54,805 53-Data Processing Svcs. $0 $1,548 $0 $1,548 81-Facilities Acquisition/Construction $0 $572,071 $1,556,567 $196,719 $2,325,357 Total Expenditures $14,380,748 $0 $0 $769,469 $88,125 $0 $129,135 $1,648,961 $0 $0 $0 $174,568 $0 $17,191,006Excess / (Deficiency) of Revenues Over / (Under) Expenditures $36,000 $0 $0 ($769,469) ($88,125) $0 ($129,135) ($1,648,961) $0 $0 $0 ($174,568) $0 ($2,774,258)

Other Financing Sources and Uses Other Resources (Transfer In) $0 $0 Other Uses (Transfers Out) ($36,000) $34,995 ($1,005)Net Other Financing Sources and Uses ($36,000) $0 $0 $0 $0 $0 $34,995 $0 $0 $0 $0 $0 $0 ($1,005)06/30/11 Restricted Fund Balance $5,203,247 $5,203,247Current Restricted Fund Balance $5,203,247 $2,427,984Note: Federal guidelines restrict fund balance to no greater than the total of three months of operating expenditures (or approximately 25%). 14%

Adopted AmendedDEBT SERVICE FUND Budget July August September October November December January February March April May June BudgetRevenues Local Taxes $36,454,110 ($1,745,622) ($314,071) $34,394,417 Local - TIRZ $6,795,684 $1,745,622 $2,781,303 $11,322,609 Local Other $40,000 ($11,000) $29,000 State $6,394,263 ($992,926) $5,401,337 Total Revenues $49,684,057 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,463,306 $0 $51,147,363

Expenditures 71-Debt Service $48,133,415 $48,133,415 97-Payments to Tax Increment Fund $1,564,796 $231,554 $1,796,350 Total Expenditures $49,698,211 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $231,554 $0 $49,929,765Excess / (Deficiency) of Revenues Over / (Under) Expenditures ($14,154) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,231,752 $0 $1,217,598

Other Financing Sources and Uses Other Resources (Transfer In) $50,000 $50,000 Sale of Bonds $0 $0 Premium/Discount-Bonds $0 $0 Prepaid Interest $0 $0 Other Uses (Transfers Out) $0 $0Net Other Financing Sources and Uses $50,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $50,00006/30/11 Restricted Fund Balance $35,141,232 $35,141,232Current Restricted Fund Balance $35,177,078 $36,408,830Note: The District shall target a yearly minimum restricted fund balance of 25% of annual debt service requirements on all outstanding debt issuance. 73%




INTERNAL SERVICE FUNDS: Original AmendedSELF-FUNDED INSURANCE Budget July August September October November December January February March April May June BudgetRevenues Local - Interest $1,250 $4,750 $6,000 Total Revenues $1,250 $0 $0 $0 $0 $0 $0 $4,750 $0 $0 $0 $0 $0 $6,000

Expenditures Medical/Dental - Administrative Fees $175,000 $175,000 Medical/Dental - Claims $0 $800,000 $800,000 Worker's Compensation - Administrative Fees $36,500 $36,500 Short Term Disability - Claims $0 $4,000 $4,000 Unemployment - Claims $1,174,550 $1,174,550 Unemployment - Administrative Fees $2,400 $2,600 $5,000 Total Expenditures $1,388,450 $0 $0 $0 $0 $0 $0 $806,600 $0 $0 $0 $0 $0 $2,195,050Excess / (Deficiency) of Revenues Over / (Under) Expenditures ($1,387,200) $0 $0 $0 $0 $0 $0 ($801,850) $0 $0 $0 $0 $0 ($2,189,050)

Other Financing Sources and Uses Other Resources (Transfer In) $0 $0 Other Uses (Transfers Out) $0 $0Net Other Financing Sources and Uses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $006/30/11 Net Assets $8,780,509 $8,780,509Current Net Assets $7,393,309 $6,591,459

Original AmendedPUBLIC ENTITY RISK POOL Budget July August September October November December January February March April May June BudgetRevenues Local - Interest $0 $0 Interfund Services Medical - District $10,127,940 $10,127,940 Medical - Employee $6,994,686 $6,994,686 Workers' Comp. (District) $1,246,414 $1,246,414 Total Revenues $18,369,040 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $18,369,040

Expenditures Salaries & Related Benefits $160,800 $160,800 Insurance Premiums - Medical $17,122,626 $17,122,626 Insurance Premiums - Worker's Comp $1,489,573 $1,489,573 Total Expenditures $18,772,999 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $18,772,999Excess / (Deficiency) of Revenues Over / (Under) Expenditures ($403,959) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 ($403,959)

Other Financing Sources and Uses Other Resources (Transfer In) $0 $0 Other Uses (Transfers Out) $0 $0Net Other Financing Sources and Uses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $006/30/11 Net Assets $8,817,390 $8,817,390Current Net Assets $8,413,431 $8,413,431




INTERNAL SERVICE FUNDS (con't): Original AmendedPRINT SHOP Budget July August September October November December January February March April May June BudgetRevenues Interfund Services - User Fees $296,473 $296,473 Total Revenues $296,473 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $296,473

Expenditures Salaries/Benefits $105,023 $105,023 Rentals-Operating Leases $118,500 $118,500 Contracted Services $2,350 $2,500 $4,850 General Supplies $70,600 ($2,500) $68,100 Total Expenditures $296,473 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $296,473Excess / (Deficiency) of Revenues Over / (Under) Expenditures $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other Financing Sources and Uses Other Resources (Transfer In) $0 $0 Other Uses (Transfers Out) $0 $0Net Other Financing Sources and Uses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $006/30/11 Net Assets $0 $0Current Net Assets $0 $0

Original AmendedEMPLOYEE CHILD CARE Budget July August September October November December January February March April May June BudgetRevenues Interfund Services - User Fees $246,007 $90,000 $336,007 Total Revenues $246,007 $0 $0 $0 $0 $0 $0 $90,000 $0 $0 $0 $0 $0 $336,007

Expenditures Salaries/Benefits $219,707 $60,793 $280,500 General Supplies $3,800 ($842) $500 $5,562 $9,020 Miscellaneous Operating Costs $22,500 ($500) $12,145 $34,145 Capital Outlay $0 $842 $11,500 $12,342 Total Expenditures $246,007 $0 $0 $0 $0 $0 $0 $90,000 $0 $0 $0 $0 $0 $336,007Excess / (Deficiency) of Revenues Over / (Under) Expenditures $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other Financing Sources and Uses Other Resources (Transfer In) $0 $0 Other Uses (Transfers Out) $0 $0Net Other Financing Sources and Uses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $006/30/11 Net Assets $36,812 $36,812Current Net Assets $36,812 $36,812


1

Meeting Date: May 29, 2012

Occasion: Regular Meeting

Special Meeting

/Workshop

Agenda Placement Learning 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 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: Property and Casualty Insurance Program Consideration of Property and Casualty Insurance Program Superintendent’s Recommendation: The Superintendent recommends that the Board of Trustees approve the selection of the following vendors to provide insurance coverage for the 2012-13 school year: Property Lexington Insurance Company – $300M All Risks, $35M Named Windstorm Colony Specialty Insurance, James River Insurance, Maiden Specialty Insurance, Arch Specialty Group Insurance, Aspen Specialty Insurance, RSUI Indemnity Company, Westchester Insurance Company, Lloyd’s of London, and Liberty Insurance Corporation – All other levels Named Windstorm General Liability Including Police and Employed Lawyers’ Liability TASB (Texas Association of School Boards) Risk Management Fund Auto TASB Risk Management Fund Crime Traveler’s Insurance Company Pollution Liberty Mutual Student Facility Healthcare AON (dba Affinity Insurance Services) Student Catastrophic Accident Insurance Chartis Workers’ Compensation Program TASB Risk Management Fund


StudentApproved

2

Background/Impact Information: The Humble ISD Property and Casualty Insurance Program is comprised of the following coverage: Property, General Liability, Police Professional Liability, Employed Lawyers' Liability, Public Officials' Liability, Employment Practices Liability, Sexual Abuse Liability, Auto, Crime, Pollution Liability, Student Facility Healthcare Liability, Student Catastrophic Accident Insurance, and Workers' Compensation. The Risk Management Department worked with consultants from Willis to review data and market coverage for the District's property at risk and other casualty lines of coverage with interested underwriters with the exception of the Workers' Compensation Program. The Board of Trustees approved the transition of the District's Workers' Compensation Program from that of a self-funded program to a fixed premium program with TASB (Texas Association of School Boards) Risk Management Fund beginning with the 2011-12 school year. Property The largest premium in the program is for property coverage which represents approximately 75% of the total premium or $1,718,911(including surplus lines taxes) for the current fiscal year. While the District maintains an excellent property claims history, the implementation of the Risk Management Services (RMS) version 11 software across the property insurance industry has yielded increases in premium rates for entities with hurricane exposed portfolios. RMS is the modeling software that assists insurance underwriters in assessing risk of catastrophic events. Included in RMS version 11 is an update of the U.S. Hurricane Model. Wind exposed portfolios in Harris County have seen the most adverse impact on their property insurance premiums. Tier 1 and Tier 2 ISDs have seen renewal rate increases between 36% and 45% to maintain previous limits and deductibles. Willis reviewed various options to provide for Humble ISD property insurance coverage including layered programs, quota share programs, as well as limits that differed from the current program to determine the most appropriate strategy for Humble ISD's curr

humble independent school district special ......education code 44.0312 all district contracts for...

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