A complete listing of all students recognized at the May Board meeting is attached to this issue of the Highlights.

Texas Economic Development Act Participation Agreement with the BASF Corporation
After holding a public hearing to solicit input from the public, the Board of Trustees unanimously approved a Texas Economic Development Act Participation Agreement with BASF Corporation.  The Texas Economic Development Act (the Act) allows owners of qualified manufacturing projects to apply to local school districts for property tax relief.  The agreement benefits BASF by setting a limitation on the taxable value of the project and benefits the District by reducing future “Robin Hood” payments to the State.  The agreement requires BASF to create new, high-paying jobs in connection with the project and to compensate the District for any revenue loss resulting from the agreement.  Additionally, BASF must maintain a viable presence in the District through 2018.  The agreement was reviewed and recommended by the State Comptroller, as well as the school finance consulting firm of Moak, Casey & Associates, LLP.  The Board of Trustees had previously approved a resolution in support of the Act in June 2002.

Student Drug Testing Programs
The Board of Trustees received a report on student drug testing programs from Dr. Harvey Graves, with Pinnacle Medical Management (Pinnacle).  Pinnacle is currently the largest provider of drug testing services in Texas and Dr. Graves has personally authored several “how to” books on drug testing.  Dr. Graves reviewed legal considerations associated with implementing a drug testing program and described how a typical school program is administered.  Dr. Graves explained that the purpose of a successful drug testing program is to act as a deterrent against student drug use, not to “catch students using drugs.”  Dr. Graves explained that, typically, students voluntarily agree to participate in a random drug testing program as a condition for their participation in extracurricular activities or to qualify for parking privileges.  Dr. Graves responded to numerous questions from Board members regarding the cost of the program, numbers of students tested, testing procedures, legal considerations, and other schools participating in similar programs.  Dr. Graves stated that, as a starting point, the Board should first consider if it’s a program they would like to implement, and then develop policies for the program’s successful implementation.  Board members thanked Dr. Graves for his informative presentation.

Student Code of Conduct Revisions for 2005-2006
Executive Director of Administrative Services, Ron Speir, presented Board members with recommended revisions to the Student Code of Conduct for the 2005-2006 school year.  Highlighted additions and revisions include:

Board members questioned Mr. Speir at length regarding student clothing and grooming issues before voting unanimously to approve the recommended changes.  Board members also emphasized the importance of applying the Code of Conduct consistently across the District and instructed Mr. Speir to review the Code of Conduct with campus principals and their staffs.

Approval of Oil, Gas, and Mineral Lease
The Board of Trustees approved an oil, gas, and mineral lease with Wagner & Brown, Ltd., covering property owned by the District as part of the S. F. Austin Elementary School campus.  Under the terms of the agreement, the District will receive a one-time payment of $150 per net mineral acre (approximately $1,023) and a 20% royalty interest.  An addendum to the lease specifies that the agreement applies to subsurface use only, with no surface use permitted.

Extension of Depository Contract
The Board of Trustees approved a resolution to extend the District’s existing depository contract with Texas Gulf Bank through August 31, 2007.  Texas law allows a two-year extension of a depository contract between a school district and the district’s depository.  Under the terms of the extension, Texas Gulf Bank will continue to pay interest on the District’s funds based on the 91-day Treasury Bill rate and will make short-term loans to the District at the existing prime rate.

Ney & Roberts Elementary Attendance Zones
The Board of Trustees received an informational report from Ron Speir, Executive Director of Administrative Services, concerning strategies being considered to relieve student overcrowding at Elisabet Ney Elementary School.  Mr. Speir reviewed existing attendance zone maps with Board members and identified an area west of Highway 332, bordered by Oak Drive South and Medical Drive, that could be redesignated as part of the O. M. Roberts Elementary School attendance zone.  Mr. Speir estimated that approximately 49 students would be affected by the boundary change, and explained that the District could transition the change in over a multi-year period.  Board members generally expressed their approval with the change and invited Mr. Speir to present them with a formal recommendation for their consideration at a future meeting.

Other Actions
In other actions, the Board approved the official minutes of the April 1, April 5, and April 15, 2005, Board meetings; approved the financial statements for March 2005; awarded bid contracts for district-wide improvements and asbestos abatement services; approved a Special Revenue Fund budget amendment for 2004-2005; approved non-resident student transfer requests for the 2005-2006 school year; and reviewed a timetable for the sale of Qualified Zone Academy Bonds (QZABs).