June 1, 2004

Clute Intermediate School Jeannie Corrales was recognized for being an invaluable addition to the Clute Intermediate School family for the past three years. Ms. Corrales has served three years as the Clute Booster Club President, has been active in Band Boosters, has spent countless hours at PTO events, and has provided clerical support.

Freeport Intermediate School Freeport Golf Course employees, Pinkie Hartline, Robbie Nieman, Jason Robles, and Blake Sullivan, were recognized for taking time from their busy schedules to work with students in connection with Freeport Intermediate School’s “Share an Interest Week.” In addition to sharing their love of golf with students, they also instructed them on various aspects of the game and the correct way to grip and swing a golf club.

	President Jay Luce
	Vice President Joel Welch
	Secretary Bobby Sharp
	Assistant Secretary Mario Martinez

2004-2005 Budget Workshop
The Board held a workshop to review and discuss a preliminary budget for the District’s 2004-2005 fiscal year. Michael Abild, Executive Director of Business Services, reported that the District expects to have fewer resources available for 2004-2005, due to an unanticipated decrease in property values of approximately $103 million (resulting in a reduction in General Fund tax revenues of approximately $1.4 million) and a projected increase in “Robin Hood” payments for the upcoming year of approximately $1.3 million. Mr. Abild stated that increased salary and benefit costs represent the largest increase in the 2005 operating budget; including a $1,000 salary increase for teachers and other professional personnel and a corresponding average 2.5% increase in wages for other employee categories, an increase in the beginning teacher salary to $36,000 (currently $35,500), and health insurance and other benefit cost increases totaling approximately $435,000. The preliminary budget also reflects budget reductions, totaling approximately $571,000, primarily the result of lower property insurance costs. Mr. Abild explained that approximately $1.75 million of General Fund reserves will be required to accommodate the $1.4 million loss in tax revenues, the $1.3 million increase in “Robin Hood” costs, and to fund proposed salary and benefit increases for teachers and other staff members. The District’s tax rate will also be increased by five cents ($0.05) to reflect additional debt service requirements associated with the “Primary Bond.” Superintendent Okruhlik closed the workshop by encouraging Board members to contact his office with questions or concerns and by stating that the Board would revisit the 2005 budget at the July 6 meeting.

HIPAA Exemption
The Board renewed its election to be exempt from the requirements of the Health Insurance Portability and Accountability Act of 1996 (HIPAA) for the upcoming plan year. The action exempts the District from many of the requirements of HIPAA, but still requires the District to provide departing employees with certification of prior health insurance coverage.
Joint Use Agreement with the City of Freeport
The Board of Trustees approved a Contract for Joint Athletic Facilities with the City of Freeport; allowing the City’s use of Lion’s Field, the former Freeport Intermediate School football field, and property located behind O. A. Fleming Elementary School for community youth soccer fields and adult softball and baseball fields, and allowing the District’s use of property adjacent to Brazosport High School for a girls’ softball and a boys’ baseball facility. The agreement, which runs for seventy-five years, allows either the City or the School District to access each other’s facilities when not being used by the other party.

Brazoswood High School Parking Improvements
The Board approved awarding a contract to Brazos M&E, totaling $189,702, for staff parking lot improvements at Brazoswood High School. The approved contract will expand the existing staff parking lot to provide a total of 103 parking spaces (including 4 handicapped). Construction of the project is scheduled to begin in June, with completion scheduled by the start of school.

Lanier Middle School Upgrades/Renovations
The Board tabled a recommendation to consider a change order for mechanical system upgrades and interior improvements at Lanier Middle School. Van Franks, with PBK Architects, Inc., explained to Board members and the audience that Drymalla Construction Company has expressed a willingness to incorporate the Lanier Middle School upgrades and improvements into the Velasco Elementary School project, but have not yet completed their cost estimates for the project. Mr. Franks stated that his firm expects the calculations to be completed in time for the Board’s review and consideration at the Board/Administrative Team Workshop on June 15.

New Clute Middle/Intermediate School
Board members voted to approve awarding a contract to Drymalla Construction Company (Drymalla), totaling $19 million, for the construction of a new Clute Middle/Intermediate School. Ron Bailey, with PBK Architects, Inc., reported that his firm, Drymalla, and District representatives had met on several occasions to review cost saving ideas and modifications to the project in response to a budget shortfall, and reviewed a list of proposed savings with Board members that would bring the total cost of the new school within $79,571 of the budget. Board members closely scrutinized the proposed list of changes before voting to award the contract. Construction of the new school will begin with demolition activities this summer, followed by construction of the new school in two phases, with substantial completion scheduled for spring 2007.

District-Wide Improvements – Phase I
The Board of Trustees awarded a contract to Northwestern Mechanical, Inc. (Northwestern) for renovations and improvements at A. P. Beutel, Bess Brannen, T. W. Ogg, Madge Griffith, and Gladys Polk Elementary Schools and Freeport Intermediate School. The extensive package, totaling $3.4 million, will affect all of the campuses in varying degrees, with most of the renovations focusing on plumbing, electrical, and mechanical upgrades, parking/paving improvements, and interior finishes. In approving the contract, Board members expressed their pleasure with Northwestern’s use of local subcontractors for the project. The planned renovations will begin in June, with substantial completion scheduled by the start of school.

Wilson Field/Ney Elementary Change Orders
Board members approved change orders associated with additions and improvements at Wilson Field and Elisabet Ney Elementary School. Board members quizzed the District’s architects, PBK Architects, Inc. (PBK), at length and requested further clarification before voting to accept the cumulative change orders totaling nearly $91,000. The change orders had been requested by PBK in preparation for each project’s upcoming completion (“close-out”).

Enrollment Report
Ron Speir, Executive Director of Student Services, presented Board members with a District enrollment report as of May 21, 2004, reporting a 62-student increase over the equivalent date last year. Mr. Speir also reported that inter-district transfers (transfers from other school districts) are up by 56 students over the same time last year, while intra-district transfers (transfers between campuses) currently total 734.

Personnel Action
Board members named Phil Piper as Principal of Clute Intermediate School for the 2004-2005 school year.

Other Actions
In other actions, the Board of Trustees approved the official minutes for the May 4 and May 24, 2004, Board meetings, approved financial statements for April 2004, approved awarding contracts for groceries and miscellaneous items for the Child Nutrition Program, adopted a recommendation by the Brazoria County Property Tax Resale Committee to sell delinquent tax property held in trust by Brazoria County, and appointed Trustees for the District's Employee Medical Benefits Plan Risk Pool.