BOARD OF EDUCATION WORK SESSION AGENDA. February 8, 2012

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1 BOARD OF EDUCATION WORK SESSION AGENDA February 8, South Taft Avenue, Loveland, Colorado The Thompson School District will be a school district that empowers, challenges and inspires students, faculty, staff, parents, school leaders and community members to learn, achieve, and excel. Empower to Learn Challenge to Achieve Inspire to Excel

2 Lola Johnson 2473 Chama Court Loveland, CO Bob Kerrigan 2028 Elmwood Street Berthoud, CO BOARD OF EDUCATION Director District A Term Expires 2015 Director District G Term Expires 2015 Janice Marchman (Vice President) 1118 Centennial Drive Loveland, CO janice.marchman@thompsonschools.org Denise Montagu 1735 Horseshoe Drive Loveland, CO denise.montagu@thompsonschools.org Sharon Olson (President) 904 West 5 th Street Loveland, CO sharon.olson@thompsonschools.org Leonard Sherman (Treasurer) 600 Crescent Drive Loveland, CO leonard.sherman@thompsonschools.org Leslie Young (Secretary) 800 South Taft Avenue Loveland, CO leslie.young@thompsonschools.org Director District B Term Expires 2013 Director District C Term Expires 2015 Director District E Term Expires 2013 Director District F Term Expires 2013 Director District D Term Expires 2015 Ron Cabrera, Ph.D. ron.cabrera@thompsonschools.org Judy Skupa, Ph.D. judy.skupa@thompsonschools.org ADMINISTRATION Superintendent of Schools Deputy Superintendent Michael Jones michael.jones@thompsonschools.org Steve Towne stephen.towne@thompsonschools.org Wes Fothergill wes.fothergill@thompsonschools.org Shana Garcia shana.garcia@thompsonschools.org Assistant Superintendent of Human Resources/School Support Chief Financial Officer Director of Communication and Community Resources Executive Assistant to Superintendent/BOE

3 Board of Education 800 S. Taft Avenue Loveland, Co THOMPSON SCHOOL DISTRICT R2-J Board of Education Special Meeting Work Session II February 8, :00 P.M. 9:00 P.M. Board Room Agenda Items 1. Call to Order, Roll Call, Adoption of Agenda 2. Executive Session Superintendent s Evaluation 30 Minutes Pursuant to CRS (4)(f) 3. Potential Refinancing of 2005 Bonds 10 Minutes 4. District Accountability Committee Mid-Year Report 15 Minutes Materials and Procurement Department Annual Report 15 Minutes 6. Transportation Cost Saving Ideas 45 Minutes Development Process Update 50 Minutes 8. District Delayed Start Discussion 15 Minutes 9. Other 5 Minutes 10. Adjournment

4 Date: February 8, 2012 AGENDA ITEM 3.0 Potential Refinancing of 2005 Bonds Submitted by: Consideration: Ronald G. Cabrera, Ph.D., Superintendent of Schools Stephen Towne, CFO Does the Board have any questions or need additional information regarding the attached resolution to prepare for a possible 2005 Bond refunding? George K. (GK) Baum & Company representatives have approached the district with a bond refunding opportunity (Series 2005 bond issue) that could save the district taxpayers a considerable amount of interest cost by refinancing select maturities at lower rates. The attached memo (dated January 13, 2012) provides a brief overview of the opportunity. Also attached is an outline of a proposed Board resolution prepared by district bond counsel Kutak-Rock that would authorize a person(s) of the Board s choosing to act on behalf of the district in conjunction with GK Baum representatives to complete the transaction within authorized parameters outlined in the resolution. Michael Persichitte, GK Baum representative, and Steve Towne, district CFO, will be in attendance to provide a brief overview of the proposed transaction and to answer questions.

5 Colorado Public Finance Phone DATE: January 13, 2012 MEMO TO: RE: FROM: Mr. Steve Towne, Chief Financial Officer and Board of Education of Thompson School District R2-J Refunding of Series 2005 General Obligation Bonds Todd Snidow, Senior Vice President The purpose of this memo is to update you on the potential for the refinancing of the District s Series 2005 bond issue. With the recent historically low municipal bond rates, a refinancing could save the District s taxpayers a considerable amount of interest cost by refinancing select maturities at lower rates. The Government Finance Officers Association (GFOA) recommends that a presentvalue savings of 3% should be an issuer s target to make a refinancing worthwhile. As of today, a refinancing of the 2005 bonds would save about $3,546,000 which is 4.68% in present-value terms. To summarize how the process works, currently low interest rates would allow the District to refinance the a portion of the 2005 bonds, which bear interest rates of 5.00%, with new bonds that range from 0.40% to 2.95%. We would sell new bonds for the District, and the proceeds of the new bond issue would be placed in an escrow account, which would be invested in U.S. Government securities that would make payments on the old bonds until their call date in December At that point, the old bonds would be paid off, leaving the District with just the lower payments on the refinancing bonds. The District would have several options of how to structure the savings taking a bit in each year or taking the bulk of the savings in the final maturity of the new bonds, which would be We could also place the bulk of the savings in , which would help to drop the bond mill levy and provide an offset to the mill needed to support a mill levy override that you might pursue in This opportunity has popped up because long term tax exempt interest rates have dropped to all time lows in the last few weeks. Partly because of the lack of other Colorado municipal bond issuance and partly because of the very low rates on US Treasury bonds, this is an environment that may continue to improve, or could reverse course very quickly. I expect that the refunding can be completed by the end of March, as the document preparation and presentation to credit rating agencies and eventual sale to investors to lock in the savings would take approximately 5-6 weeks. All the savings figures described above are NET of fees and expenses, and all costs involved in putting the bond issue together are paid from the sale of the bonds, resulting in no out of pocket cost to the district. If interest rates rise before we can complete the refunding, we sit back and monitor the market until such time that the rates improve. I am happy to attend a future board meeting and can answer your questions at that time, or can be reached in my office before then.

6 CERTIFIED RECORD OF PROCEEDINGS OF THE BOARD OF EDUCATION OF THOMPSON SCHOOL DISTRICT NO. R2-J (LARIMER, WELD AND BOULDER COUNTIES, COLORADO) RELATING TO A RESOLUTION AUTHORIZING THE ISSUANCE OF ITS GENERAL OBLIGATION REFUNDING BONDS IN THE AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $89,215,

7 STATE OF COLORADO ] COUNTY OF LARIMER ] ss. THOMPSON SCHOOL DISTRICT NO. R2-J ] The Board of Education (the Board ) of Thompson School District No. R2-J (Larimer, Weld and Boulder Counties, Colorado) (the District ), met in a regular session on Wednesday, February 15, 2012, at the District s Administration Building, 800 South Taft Avenue, Loveland, Colorado, at the hour of 6:00 p.m. The following members of the Board were present, constituting a quorum: Name Sharon Olson Janice Marchman Leslie Young Leonard Sherman Lola Johnson Bob Kerrigan Denise Montagu Title President Vice President Secretary Treasurer Director Director Director Absent: Also present: Dr. Ron Cabrera Steve Towne Todd Snidow Superintendent Chief Financial Officer George K. Baum & Company The President called the meeting to order. Thereupon the following proceedings, among others, were had and taken. The following Resolution was introduced and read by title only, copies of the Resolution having been made available to the Board and to those members of the general public in attendance at the meeting

8 A RESOLUTION AUTHORIZING THE ISSUANCE BY THOMPSON SCHOOL DISTRICT NO. R2-J (LARIMER, WELD AND BOULDER COUNTIES, COLORADO), OF ONE OR MORE SERIES OF ITS GENERAL OBLIGATION REFUNDING BONDS, IN THE AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $89,215,000; PROVIDING FOR THE FORM AND OTHER DETAILS IN CONNECTION WITH SAID BONDS, FIXING THE MAXIMUM NET EFFECTIVE INTEREST RATE ON SAID BONDS; PROVIDING FOR THE LEVY OF AD VALOREM TAXES FOR THE PAYMENT OF SAID BONDS; AUTHORIZING, APPROVING AND DIRECTING THE EXECUTION AND DELIVERY OF ONE OR MORE BOND PURCHASE AGREEMENTS, ONE OR MORE REGISTRATION AND PAYING AGENCY AGREEMENTS, ONE OR MORE ESCROW AGREEMENTS, ONE OR MORE OFFICIAL STATEMENTS, ONE OR MORE CONTINUING DISCLOSURE UNDERTAKINGS AND CERTAIN OTHER DOCUMENTS AND INSTRUMENTS IN CONNECTION WITH THE ISSUANCE OF THE BONDS; CREATING CERTAIN FUNDS AND ACCOUNTS; RATIFYING ACTIONS PREVIOUSLY TAKEN IN CONNECTION WITH THE ISSUANCE OF THE BONDS; AND PROVIDING OTHER MATTERS PROPERLY RELATING THERETO WHEREAS, Thompson School District No. R2-J (Larimer, Weld and Boulder Counties, Colorado) (the District ) is a school district, political subdivision and body corporate duly organized and existing under the laws of the State of Colorado; and WHEREAS, pursuant to the authorization granted to the District at the election held on November 1, 2005, the District has heretofore issued its General Obligation Bonds, Series 2005, in the aggregate principal amount of $89,215,000, and which are currently outstanding in the aggregate principal amount of $88,805,000 (the Series 2005 Bonds ); and WHEREAS, under the provisions of article 56 of title 11, Colorado Revised Statutes, (the Refunding Act ), the District is authorized to issue its general obligation refunding bonds for the purpose of refunding, paying and discharging outstanding obligations and for one or more other purposes, including but not limited to (a) reducing the net effective interest rate payable by the District with respect to such obligations, (b) reducing the total interest payable by the District over the life of such obligations, (c) reducing the total principal and interest payable on such obligations or the principal and interest payable thereon in any particular year or years or effecting other economies, or (d) postponing the maturity of all or any portion of said obligations to a later date, subject to the limitations of the Refunding Act; and WHEREAS, the Board of Education of the District (the Board ) has determined and does hereby determine that it is in the best interest of the District and its residents and taxpayers to effect one or more refundings in advance of maturity of all or any part of the Series 2005 Bonds maturing in the years 2012 through 2025 (the Refunded Bonds ) for one or more of the purposes set forth in the Refunding Act and referred to above; and WHEREAS, George K. Baum & Company (the Underwriter ), has provided certain disclosures to the District in connection with its proposed underwriting of general obligation refunding bonds of the District in the manner contemplated by Section of the Refunding Act; and

9 WHEREAS, the Board has determined and hereby determines that the issuance of the District s General Obligation Refunding Bonds, in one or more series, in the aggregate principal amount not to exceed $89,215,000 (the Bonds ), for the purpose of providing funds for the refunding of the Refunded Bonds, as set forth above, will be in the best interests of the District and the residents and taxpayers thereof; and WHEREAS, there has been presented to the Board at this meeting the proposed forms of (a) a Registration and Paying Agency Agreement (a Paying Agency Agreement ), between the District and UMB Bank, n.a., as paying agent, transfer agent and bond registrar (the Paying Agent ), (b) an Escrow Agreement (an Escrow Agreement ), between the District and UMB Bank, n.a., as escrow agent (the Escrow Agent ), (c) a Continuing Disclosure Undertaking (a Continuing Disclosure Undertaking ), to be executed by the District, and (d) a Bond Purchase Agreement (the Bond Purchase Agreement ), between the District and the Underwriter, for the purchase of the Bonds; and WHEREAS, there has also been presented to the Board at this meeting the proposed form of a Preliminary Official Statement (a Preliminary Official Statement ), prepared for use in connection with the offering and sale of the Bonds; and WHEREAS, the Board does hereby determine to accept the proposal of the Underwriter, as will be set forth more completely in each Bond Purchase Agreement, to purchase the Bonds, and desires to authorize the issuance, sale and delivery of the Bonds and the execution of the foregoing documents, all in the manner hereinafter set forth. THEREFORE, BE IT RESOLVED BY THE BOARD OF EDUCATION OF THOMPSON SCHOOL DISTRICT NO. R2-J (LARIMER, WELD AND BOULDER COUNTIES, COLORADO): Section 1. Ratification of Prior Actions; Definitions. All actions heretofore taken (not inconsistent with the provisions of this Resolution or the Refunding Act) by the Board or by the officers, employees or agents of the District directed toward the issuance of the Bonds for the purposes herein set forth are hereby ratified, approved and confirmed. The distribution and use of a Preliminary Official Statement by the Underwriter in connection with the offering and sale of each series of the Bonds are hereby authorized and approved. Defined terms used herein shall have the meanings ascribed to them herein or in the preambles to this Resolution, and the following defined terms have the following meanings: Bond Details Certificate means a certificate executed by the Superintendent or the Chief Financial Officer of the District, dated on or before the date of delivery of each series of the Bonds to the Underwriter, setting forth (a) the rate or rates of interest on the Bonds of such series, (b) the conditions and prices at which the Bonds of such series may be redeemed before the maturities thereof, (c) the price at which the Bonds of such series will be sold to the Underwriter, (d) the total principal amount of the Bonds of such series, (e) the amount of principal maturing in each year, (f) the dates on which the principal of and interest on the Bonds of such series shall be paid, (g) the amount and maturities (or portions thereof) of the Series 2005 Bonds to be refunded, and (h) whether the principal of and interest on the Bonds of such series

10 (or any portion thereof) will be insured by a policy of insurance and the terms of any such policy of insurance, as authorized by the Supplemental Act and this Resolution, all of which shall be subject to the parameters and restrictions contained in this Resolution. Supplemental Act means the Supplemental Public Securities Act, constituting part 2 of article 57 of title 11, Colorado Revised Statutes, as amended. Section 2. Issuance of the Bonds. In order to provide funds for the purpose of refunding the Refunded Bonds in advance of the maturity thereof and paying costs of issuance of each series of the Bonds, the District shall issue its General Obligation Refunding Bonds, in one or more series, in the aggregate principal amount not to exceed $89,215,000 (the Bonds ). The Bonds shall be issued as fully registered bonds in the denomination of $5,000 or any integral multiple thereof. The Bonds initially shall be issued in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York ( DTC ), as registered owner of the Bonds, and immobilized in the custody of DTC. A single certificate for each maturity date of each series of the Bonds will be issued and delivered to DTC for the total principal amount due on each maturity date of each series of the Bonds. Beneficial owners of the Bonds will not receive physical delivery of Bond certificates, except in the event that replacements are issued therefor as provided in the Paying Agency Agreement. All subsequent transfers of ownership interests, after immobilization of the original Bond certificates as provided above, will be made by book entry only, and no investor or other party purchasing, selling or otherwise transferring Bonds is to receive, hold or deliver any Bond certificate as long as DTC or any successor depository holds the immobilized Bond certificates. The President and all other members of the Board and the Superintendent and the Chief Financial Officer of the District are hereby authorized to take any and all actions as may be necessary and not inconsistent with this Resolution in order to qualify the Bonds for DTC s book entry system, including the execution of DTC s Blanket Letter of Representations, and payments to DTC by the Paying Agent shall be made in accordance with such Letter of Representations. Section 3. Terms and Provisions of the Bonds. The Bonds shall be dated the date of their authentication. Bonds authenticated prior to the first interest payment date, as determined in the applicable Bond Details Certificate, shall bear interest from the date determined in such Bond Details Certificate. Bonds authenticated on the first interest payment date, as determined in the applicable Bond Details Certificate, shall bear interest from that date, and Bonds authenticated on any later date shall bear interest from the June 15 or December 15 next preceding their date of authentication, or if authenticated on a June 15 or December 15, shall bear interest from that date; provided, however, that if interest on the Bonds shall be in default, Bonds authenticated in exchange for Bonds surrendered for transfer or exchange shall bear interest from the date to which interest has been paid in full on the Bonds surrendered. The Bonds of each series shall be numbered consecutively from 1 upward and shall bear interest until the principal amount thereof shall be paid in full, at the rates designated in the Bond Details Certificate of such series, such interest being payable semiannually on June 15 and December 15 in each year (each an Interest Payment Date ) commencing on the date determined in the Bond Details Certificate of such series

11 Pursuant to Section of the Supplemental Act, the Board hereby delegates to the Superintendent or the Chief Financial Officer of the District the authority to sign the Bond Purchase Agreement applicable to each series of the Bonds and the authority to determine the details of the Bonds of such series identified in the definition of Bond Details Certificate in Section 1 of this Resolution. Each series of the Bonds shall bear interest at the rate or rates determined by the Superintendent or the Chief Financial Officer of the District in the Bond Details Certificate applicable to such series, calculated on the basis of a 360 day year consisting of twelve 30 day months; provided, however, that the net effective interest rate of any series of the Bonds shall not exceed 3.25% and the net present value savings to the District from refunding any of the Refunded Bonds shall not be less than 3.0% of the par amount of the Refunded Bonds being refunded. Each series of the Bonds shall mature within thirty years of its issue date, on December 15 in the years and in the principal amounts determined by the Superintendent or the Chief Financial Officer of the District in the Bond Details Certificate applicable to such series. The principal of, premium, if any, and interest on the Bonds shall be payable in lawful money of the United States of America, without deduction for exchange or collection charges. The principal of and premium, if any, on each Bond shall be payable upon surrender thereof at the principal operations office of the Paying Agent or at the principal operations office of any successor Paying Agent appointed by the District. Interest on each Bond shall be paid by the Paying Agent on behalf of the District to the registered owner thereof by check or draft mailed to such registered owner at the address of such registered owner as it appears on the registration books of the District maintained by the Paying Agent, or by wire transfer as described in the applicable Paying Agency Agreement. In the event that the date upon which any payment of interest on or principal of the Bonds shall be due is not a Business Day (as defined in the applicable Paying Agency Agreement) then such payment shall be payable on the next succeeding Business Day without additional interest. The District shall cause, pursuant to the applicable Paying Agency Agreement, books for the registration and for the transfer of Bonds to be kept by the Paying Agent. UMB Bank, n.a., is hereby constituted and appointed the paying agent, transfer agent and bond registrar of the District with respect to the Bonds; however, the District may, in its discretion, appoint any one or more successor or additional paying agents for any series of the Bonds in accordance with the applicable Paying Agency Agreement. The Bonds shall be subject to registration, transfer and exchange in the manner, and subject to the terms and conditions, set forth in the applicable Paying Agency Agreement, which is hereby incorporated herein by this reference. Section 4. Redemption of the Bonds. Each series of the Bonds or any part thereof may be callable for redemption, at the option of the District, prior to the final maturity thereof, at the price or prices (expressed as a percentage of the principal amount) and on the redemption date or dates as determined by the Superintendent or the Chief Financial Officer of the District in the Bond Details Certificate applicable to such series. Each series of the Bonds or any part thereof may be callable for mandatory sinking fund redemption at a price (expressed as a percentage of principal amount) of 100%, plus accrued interest to the redemption date, as determined by the Superintendent or the Chief Financial Officer of the District in the Bond Details Certificate applicable to such series

12 If less than all of the Bonds within a maturity of a series are to be redeemed on any prior redemption date, the Bonds to be redeemed shall be selected by lot prior to the date fixed for redemption in such manner as the Paying Agent shall determine. The Bonds shall be redeemed only in integral multiples of $5,000. In the event a Bond is of a denomination larger than $5,000, a portion of such Bond may be redeemed, but only in the principal amount of $5,000 or any integral multiple thereof. Such Bond shall be treated for the purpose of redemption as that number of Bonds which results from dividing the principal amount of such Bond by $5,000. In the event a portion of any Bond is redeemed, the Paying Agent shall, without charge to the registered owner of such Bond, authenticate and deliver a replacement Bond or Bonds, as the case may be, of the same series as the Bond being redeemed in part, for the unredeemed portion thereof. Section 5. Notice and Effect of Redemption. Notice of any redemption of any of the Bonds shall be given by the Paying Agent in the name of the District by sending a copy of the redemption notice by first-class mail or by electronic means to the registered owners of the Bonds to be redeemed at the addresses of such registered owners shown on the registration books maintained by the Paying Agent pursuant to the Paying Agency Agreement, not more than 60 nor less than 30 days prior to the redemption date. Failure to mail notice to the registered owner of any Bond designated for redemption, or any defect in any notice given, shall not affect the validity of any proceedings for the redemption of the Bonds as to which no such failure shall have occurred. Any notice mailed as provided herein shall be conclusively presumed to have been duly given, whether or not the registered owner actually receives the notice. Each notice of redemption shall specify the date fixed for redemption, the redemption price, the place or places of payment, that payment will be made upon presentation and surrender of the Bonds to be redeemed, that interest accrued to the date fixed for redemption will be paid as specified in said notice, and that on and after said date interest thereon will cease to accrue. If less than all the outstanding Bonds are to be redeemed, the notice of redemption shall specify the series and the numbers of the Bonds (or portions of Bonds issued in a principal amount in excess of $5,000) to be redeemed. On or prior to the date fixed for redemption, funds sufficient to pay the Bonds or portions of the Bonds called for redemption, together with the premium, if any, and the accrued interest to the redemption date, are to be deposited with the Paying Agent. The giving of notice and the deposit of funds for redemption shall cause interest on any Bond or portion thereof called for redemption to cease to accrue from and after the date fixed for redemption. Section 6. Execution of the Bonds. The Bonds shall be executed in the name of the District, shall be signed by the manual or facsimile signature of the President or Vice President of the Board, shall bear the impression or the facsimile of the seal of the District, shall be attested and subscribed by the manual or facsimile signature of the Secretary or Assistant Secretary of the Board, and shall be authenticated by the manual signature of the Paying Agent in the manner set forth in the applicable Paying Agency Agreement. The President or Vice President and Secretary or Assistant Secretary of the Board, respectively, by the execution of a signature certificate relating to the applicable series of the Bonds, shall adopt or approve the facsimiles appearing on the Bonds. The Bonds bearing the signatures of the officers in office at the time of the signing thereof shall be the valid and binding obligations of the District, notwithstanding that

13 before the delivery thereof and payment therefor, any or all of the persons whose signatures appear thereon shall have ceased to fill their respective offices. Title to any Bond is fully negotiable. The registered owners of the Bonds shall possess all rights enjoyed by the holders of negotiable instruments under the provisions of the Uniform Commercial Code of the State of Colorado. Section 7. Determination of Net Effective Interest Rate. The net effective interest rate with respect to any series of the Bonds shall be less than the net effective interest rate on the Refunded Bonds being refunded by such series of the Bonds. Section 8. Form of Bonds. The Bonds shall recite that they are issued pursuant to the Refunding Act and the Supplemental Act. The President or Vice President and Secretary or Assistant Secretary of the Board shall prepare, execute and issue to the Underwriter one or more series of the Bonds in substantially the following form:

14 (Form of Bond) UNITED STATES OF AMERICA STATE OF COLORADO COUNTIES OF LARIMER, WELD AND BOULDER THOMPSON SCHOOL DISTRICT NO. R2-J GENERAL OBLIGATION REFUNDING BOND SERIES No. R- $ INTEREST RATE: MATURITY DATE: DATE OF ORIGINAL ISSUE: CUSIP: % December 15,, REGISTERED OWNER: Cede & Co. PRINCIPAL SUM: DOLLARS KNOW ALL PERSONS BY THESE PRESENTS, that Thompson School District No. R2-J (Larimer, Weld and Boulder Counties, Colorado) (the District ), for value received, promises to pay to the Registered Owner (named above), or registered assigns, in the manner hereinafter provided, the Principal Sum (stated above) on the Maturity Date (stated above), together with interest on said Principal Sum at the Interest Rate (stated above) per annum, payable semiannually on June 15 and December 15 of each year, commencing, * until the Principal Sum of this Bond shall be paid in full. Interest on this Bond shall be calculated on the basis of a 360 day year consisting of twelve 30 day months. The principal of, premium, if any, and interest on this Bond are payable in any coin or currency which on the date of payment is legal tender for the payment of debts due to the United States of America without deduction for exchange or collection charges. The principal of and premium, if any, on this Bond are payable to the Registered Owner, upon surrender hereof, at the principal operations office of UMB Bank, n.a., or its successor, as paying agent, transfer agent and bond registrar (the Paying Agent ). Interest on this Bond shall be paid by the Paying Agent on behalf of the District by check or draft mailed to the Registered Owner at the address of such Registered Owner as it appears on the registration books of the Paying Agent or by wire transfer, all in the manner set forth in the hereinafter described Paying Agency Agreement. In the event that the date upon which any payment of interest on or principal of this Bond shall be due is not a Business Day (as defined in the Paying Agency Agreement) then such interest or principal (or both, as the case may be) shall be payable on the next succeeding Business Day without additional interest. * To be determined by Superintendent or Chief Financial Officer

15 This Bond is one of a series of general obligation refunding bonds of the District, denominated as Thompson School District No. R2-J (Larimer, Weld and Boulder Counties, Colorado), General Obligation Refunding Bonds, Series and issued in the aggregate principal amount of $ * (the Bonds ). The Bonds are being issued by the District for the purpose of refunding certain general obligations of the District in advance of maturity. The Bonds which mature on or before December 15, * are not subject to redemption prior to their maturity. The Bonds maturing on or after December 15, * are callable for redemption at the option of the District, in whole or in part, and if in part in such order of maturity as the District shall determine and by lot within any maturity in such manner as the Paying Agent shall determine, on December 15,, * and on any date thereafter, at the redemption price (expressed as a percentage of principal amount) of * %, plus accrued interest to the redemption date. The Bonds maturing on December 15,, * are subject to mandatory sinking fund redemption, prior to maturity, in part, by lot in such manner as the Paying Agent shall determine, at a price (expressed as a percentage of principal amount) of 100%, plus accrued interest to the date of redemption, without premium, on the following dates and in the following principal amounts: Sinking Fund Redemption Date (December 15) * Principal Amount * ** ** Maturity. The Bonds are issuable solely in the form of fully registered bonds in the denomination of $5,000 or any integral multiple thereof. This Bond is transferable by the Registered Owner hereof, or by the attorney of such Registered Owner duly authorized in writing, at the principal operations office of the Paying Agent, but only in the manner, subject to the limitations and upon payment of the transfer fee or charges provided in the Registration and Paying Agency Agreement (the Paying Agency Agreement ) between the District and the Paying Agent, and upon surrender and cancellation of this Bond. Upon such transfer a new Bond or Bonds of the same series, maturity and of authorized denomination or denominations, for the same aggregate principal amount and bearing interest at the rate per annum set forth in this Bond, will be issued to the transferee in exchange therefor. The District and the Paying Agent may deem and treat the Registered Owner hereof (whether or not any payment of principal or interest on this Bond shall be overdue) as the * To be determined by Superintendent or Chief Financial Officer

16 absolute owner of this Bond for the purpose of receiving payment of or on account of the principal hereof and premium, if any, and interest due hereon and for all other purposes, and neither the District nor the Paying Agent shall be affected by any notice to the contrary. The District and the Paying Agent shall not be required (a) to issue, register, transfer or exchange any Bond during a period beginning at the opening of business on the first day of the calendar month during which any interest payment date occurs or on any date of selection of Bonds to be redeemed, and ending at the close of business on the interest payment date or date on which the applicable notice of redemption is given; or (b) to register, transfer or exchange any Bond selected or called for redemption in whole or in part. This Bond has been issued pursuant to, under the authority of, and in full conformity with, the Constitution and the laws of the State of Colorado, including, in particular, article 56 of title 11, Colorado Revised Statutes (the Refunding Act ), and part 2 of article 57 of title 11, Colorado Revised Statutes (the Supplemental Public Securities Act ), and pursuant to a resolution (the Resolution ) adopted by the Board of Education of the District. Pursuant to Section (6) of the Refunding Act and Section of the Supplemental Public Securities Act, the above recital conclusively imparts full compliance with all of the provisions of said statutes and is conclusive evidence of the validity and the regularity of the issuance of the Bonds and makes this Bond incontestable for any cause whatsoever after its delivery for value. It is hereby certified and recited that all the requirements of law, including the provisions and limitations of the Refunding Act, have been fully complied with by the proper District officials in the issuance of this Bond, that the total indebtedness of the District, including that of this Bond, does not exceed any limit of indebtedness prescribed by resolutions of the District or by the Constitution or laws of the State of Colorado, and that provision has been made for the levy and collection of a general ad valorem tax, without limitation as to rate or amount, on all of the taxable property within the District sufficient to pay the principal of and interest on this Bond when the same become due. The full faith and credit of the District are hereby pledged for the punctual payment of the principal of, premium, if any, and the interest on this Bond. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the proceedings of the District authorizing the issuance of the Bonds until the Certificate of Authentication hereon shall be signed by the Paying Agent

17 IN WITNESS WHEREOF, the Board of Education of the District has caused this Bond to be executed with the facsimile signature of its President and attested by the facsimile signature of its Secretary, and has caused the facsimile of the seal of the District to be impressed or imprinted hereon, all as of the date set forth below. THOMPSON SCHOOL DISTRICT NO. R2-J By [Facsimile Signature] President of the Board of Education [FACSIMILE SEAL] Attest: By [Facsimile Signature] Secretary of the Board of Education CERTIFICATE OF AUTHENTICATION This Bond is one of the Bonds of the issue described in the within mentioned Resolution. Dated: UMB BANK, n.a., as Paying Agent By [Manual Signature] Authorized Representative

18 STATEMENT OF INSURANCE [To be provided by Bond Insurer, if any]

19 ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto (Please print or typewrite name and address of Transferee) (Tax Identification or Social Security No. ) the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints attorney to transfer the within Bond on the books kept for registration thereof, with full power of substitution in the premises. Dated: Signature Guaranteed: NOTICE: The signature to this Assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or enlargement or any change whatever. Signature(s) must be guaranteed by a national bank or trust company or by a brokerage firm having a membership in one of the major stock exchanges. TRANSFER FEE MAY BE REQUIRED [End Form of Bond]

20 Section 9. Delivery of the Bonds. Each series of the Bonds, when executed as provided by this Resolution, shall be delivered by any one of the officers of the District to the Underwriter, upon payment to the District of the purchase price therefor in accordance with the applicable Bond Purchase Agreement. The proceeds derived from the sale of each series of the Bonds shall be used exclusively for the purposes stated herein; provided, however, that any portion of the proceeds of any series of the Bonds may be temporarily invested pending such use in securities or obligations which are lawful investments for the District, with such temporary investment to be made consistent with the covenant hereinafter made concerning arbitrage bonds and the exclusion of interest on such series of the Bonds from gross income for purposes of federal income taxation. Neither the Underwriter, the Paying Agent nor any registered owner of any Bond shall be in any way responsible for application of the proceeds of the Bonds by the District or any of its officials. Section 10. Execution and Delivery of Paying Agency Agreement. The President or Vice President of the Board is hereby authorized to execute and deliver, for and on behalf of the District, a Paying Agency Agreement, for each series of the Bonds, in substantially the form presented to the Board at this meeting, but with such modifications thereof as are consistent with the terms and provisions of this Resolution and which the President or Vice President of the Board shall approve, the execution of a Paying Agency Agreement by the President or any Vice President of the Board being conclusive evidence of the approval on behalf of the District of the terms and provisions thereof. Section 11. Execution and Delivery of Escrow Agreement. The President or Vice President of the Board is hereby authorized to execute and deliver, for and on behalf of the District, an Escrow Agreement, for each series of the Bonds, in substantially the form presented to the Board at this meeting, but with such modifications thereof as are consistent with the terms and provisions of this Resolution and which the President or Vice President of the Board shall approve, the execution of an Escrow Agreement by the President or Vice President of the Board being conclusive evidence of the approval on behalf of the District of any modifications thereof. The deposit and investment of Bond proceeds and other moneys in accordance with each Escrow Agreement, and the refunding of any of the Refunded Bonds in advance of maturity as set forth in each Escrow Agreement, are hereby authorized and directed. The District hereby authorizes and directs the redemption of any of the Refunded Bonds on the date or dates, in the amount or amounts and at the price as will be set forth in each Escrow Agreement, and, in order to cause any of the Refunded Bonds to be redeemed in the manner set forth in each Escrow Agreement, UMB Bank, n.a., as paying agent for the Refunded Bonds, is hereby authorized and directed to give notice or notices of redemption of any of the Refunded Bonds at the time or times and in the manner required by the Resolution of the Board authorizing the issuance of the Refunded Bonds. Section 12. Establishment of Escrow Fund With Escrow Agent. The District shall establish with the Escrow Agent, for each series of the Bonds, pursuant to each Escrow Agreement, the Thompson School District No. R2-J, General Obligation Refunding Bonds, Escrow Fund (the Escrow Fund ), to be used solely for the payment of the principal of, premium, if any, and interest on any of the Refunded Bonds in accordance with the terms and provisions of such Escrow Agreement. The District shall deposit with the Escrow Agent in such

21 Escrow Fund upon the issuance, sale and delivery of a series of the Bonds the amount set forth in such Escrow Agreement from the proceeds of the Bonds and any amount from the Bond Redemption Fund of the District determined by the Chief Financial Officer of the District, which amount or amounts are hereby appropriated from the Bond Redemption Fund of the District. Such moneys shall be sufficient to pay the principal of, premium and interest on the Refunded Bonds being refunded by the applicable series of the Bonds upon maturity or prior redemption, as set forth in such Escrow Agreement. If, for any reason, at any time, the funds on hand in an Escrow Fund shall be insufficient to meet such payments, as the same shall be about to become due and payable, the District shall forthwith deposit in such Escrow Fund such additional funds as may be required fully to meet the amount about to become due and payable. The Escrow Agent is authorized from time to time to redeem at maturity all or a portion of the securities in such Escrow Fund, in sufficient amounts so that the proceeds therefrom and the interest thereon, as the same accrues, will be sufficient to pay the principal of, premium, if any, and interest on the Refunded Bonds being refunded by the applicable series of the Bonds as hereinabove set forth. Section 13. Execution and Delivery of Continuing Disclosure Undertaking. The President or Vice President of the Board is hereby authorized to execute and deliver, for and on behalf of the District, a Continuing Disclosure Undertaking, for each series of the Bonds, in substantially the form presented to the Board at this meeting, but with such modifications thereof as are consistent with the terms and provisions of this Resolution and which the President or Vice President of the Board shall approve, the execution of such Continuing Disclosure Undertaking by the President or Vice President of the Board being conclusive evidence of the approval on behalf of the District of the terms and provisions thereof. Section 14. Establishment of Bond Fund. The District hereby establishes with the Paying Agent, for each series of the Bonds, the Thompson School District No. R2-J (Larimer, Weld and Boulder Counties, Colorado), General Obligation Refunding Bonds, Bond Fund (the Bond Fund ), to be used solely for the payment of principal of, premium, if any, and interest on such series of the Bonds, into which there shall be deposited by the District at the times required by the applicable Paying Agency Agreement and this Resolution, moneys sufficient to pay the principal of, premium, if any, and interest due, whether at maturity or upon earlier redemption, on the applicable series of the Bonds on the next principal or interest payment date. Accrued interest, if any, received with respect to a series of the Bonds shall be paid to the District and shall be deposited or caused to be deposited in the applicable Bond Fund on or prior to the first interest payment date for a series of the Bonds. Each such Bond Fund shall be maintained with the Paying Agent as set forth in the applicable Paying Agency Agreement. Funds on deposit in each Bond Fund shall be invested and reinvested in the manner set forth in the applicable Paying Agency Agreement, and the income from such investment and reinvestment shall remain on deposit in each such Bond Fund. Section 15. Establishment of Rebate Fund. The District hereby creates and establishes, for each series of the Bonds, the Thompson School District No. R2-J, General Obligation Refunding Bonds, Rebate Fund (a Rebate Fund ) as a separate fund within the funds of the District. Each such Rebate Fund shall be expended in accordance with the provisions hereof and the letter of instructions provided to the District by nationally recognized

22 municipal bond counsel on the date of issuance of such series of the Bonds (the Investment Instructions ). The District shall make deposits and disbursements from each such Rebate Fund in accordance with the Investment Instructions, shall invest each such Rebate Fund pursuant to the Investment Instructions and shall deposit income from said investments immediately upon receipt thereof in each such Rebate Fund, all as set forth in the Investment Instructions. The District shall employ, at its expense, a person or firm with recognized expertise in the area of rebate calculations, which person or firm shall make such calculations as may be required by the Investment Instructions. The Investment Instructions may be superseded or amended by new Investment Instructions drafted by, and accompanied by an opinion of, nationally recognized municipal bond counsel addressed to the District to the effect that following such new Investment Instructions will not cause interest on the applicable series of the Bonds to become includible in gross income for the purposes of federal income taxation. Section 16. Rebate Deposits. The District shall periodically make the rebate deposit described in the Investment Instructions. If a withdrawal from any Rebate Fund is permitted as a result of the computations required by the applicable Investment Instructions, the amounts withdrawn, unless for payment to the United States of America pursuant to Section 17 below, shall be deposited in the Bond Fund applicable to the related series of Bonds or used for any other lawful purpose if the District shall receive an opinion of nationally recognized municipal bond counsel approving such use. Record of the determinations required by this Section 16 and the Investment Instructions shall be retained by the District until six (6) years after the final retirement of the applicable series of the Bonds. Section 17. Rebate Disbursements. Except as may be provided in the Investment Instructions applicable to each series of the Bonds, not later than sixty (60) days after the end of the fifth Bond Year (as defined in the Investment Instructions) and every five (5) years thereafter, the District shall pay to the United States of America ninety percent (90%) of the amount required to be on deposit in the Rebate Fund applicable to each series of the Bonds and not later than sixty (60) days after the final retirement of the applicable series of the Bonds, the District shall pay to the United States of America one hundred percent (100%) of the amount required to be on deposit in such Rebate Fund, which shall remain in effect for such period of time as is necessary for such final payment to be made. Each payment required to be paid to the United States of America pursuant to this Section 17 shall be filed with the Internal Revenue Service Center, Ogden Submission Processing Center, Ogden, Utah Each payment shall be accompanied by a copy of the Internal Revenue Form 8038-T and a statement summarizing the determination of the amount to be paid to the United States of America. Section 18. Pledge of Security for the Bonds. Each series of the Bonds shall be general obligations of the District and the full faith and credit of the District are pledged for the punctual payment of the principal of, premium, if any, and interest on each series of the Bonds. Each series of the Bonds will not constitute a debt or indebtedness of Larimer, Weld or Boulder Counties, Colorado, the State of Colorado or any political subdivision thereof other than the District. For the purpose of paying the principal of, premium, if any, and interest on each series of the Bonds as the same become due and payable, respectively, the Board shall annually determine, fix and certify to the Board of County Commissioners of Larimer County, Weld

23 County and Boulder County, respectively, a rate of levy for general ad valorem taxes, without limitation as to rate or amount, on all of the taxable property in the District, which will be sufficient to pay the principal of and interest on each series of the Bonds as the same become due and payable, respectively, whether at maturity or upon earlier redemption. Such general ad valorem taxes, when collected, shall be applied solely to the payment of the principal of and interest on the applicable series of the Bonds and for no other purpose whatever until all Bonds of such series, including principal, premium, if any, and interest, are fully paid, satisfied and discharged. Nothing contained herein shall be so construed to prevent the District from applying any other funds that may be in the treasury of the District and available for that purpose, to the payment of said principal or interest as the same become due and payable, and upon the application of such other funds as aforesaid, the levy or levies herein provided may thereupon to that extent be diminished. The sums produced by the levies hereinabove provided to pay the principal of and interest on each series of the Bonds when due, respectively, are hereby appropriated for that purpose, and said amounts for each year shall be included in the annual budget and appropriation resolution to be adopted and passed by the Board in each year, respectively, while any of the Bonds of the applicable series of Bonds herein authorized, either as to principal or interest, are unpaid. The foregoing provisions of this Resolution are hereby declared to be a certificate from the Board to the Board of County Commissioners of Larimer County, Weld County and Boulder County, respectively, showing the aggregate amount of ad valorem taxes to be levied by such Boards of County Commissioners from time to time, as required by law, for the purpose of paying the principal of and interest on each series of the Bonds as the same shall hereafter become due and payable. Such ad valorem taxes, when collected, shall be deposited in the Bond Fund applicable to each series of the Bonds issued hereunder prior to each principal or interest payment date with respect to such series of the Bonds, as required by the applicable Paying Agency Agreement, in amounts sufficient to pay the principal of and interest on such series of Bonds when due. No provision of any constitution, statute, resolution or other order or measure enacted or becoming effective after the issuance of any series of the Bonds shall in any manner be construed as limiting or impairing the obligation of the District to levy general ad valorem taxes, without limitation as to rate or amount, or as limiting or impairing the obligation of the District to levy, administer, enforce and collect general ad valorem taxes sufficient for the payment of the principal of and interest on such series of the Bonds as they become due or on any bonds issued by the District to refund all or any of the Bonds of such series. Section 19. Covenants Concerning Compliance With the Code. The District covenants that it shall not use or permit the use of any proceeds of the Bonds (and amounts treated as proceeds of the Bonds for federal income tax purposes, including moneys reasonably expected to be used to pay the principal of or interest on the Bonds) or any other funds of the District from whatever source derived, directly or indirectly, to acquire any securities or obligations and shall not take or permit to be taken any other action or actions, which would cause any of the Bonds to be an arbitrage bond within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended (the Code ), or would otherwise cause interest on

24 any of the Bonds to be includible in gross income for purposes of federal income taxation. The District covenants that it shall at all times do and perform all acts and things permitted by law and which are necessary or desirable in order to assure that interest paid by the District on the Bonds shall, for purposes of federal income taxation, not be includible in gross income under the Code or any other valid provision of law. In particular, but without limitation, the District further represents, warrants and covenants to comply with the following restrictions of the Code, unless the District receives an opinion of nationally recognized municipal bond counsel substantially to the effect that noncompliance with such requirements will not adversely affect the exclusion from gross income for purposes of federal income taxation of interest on the Bonds: (a) Facilities originally financed with proceeds of the Refunded Bonds, and gross proceeds of the Bonds, shall not be used in a manner which will cause the Bonds to be considered private activity bonds within the meaning of the Code. (b) The Bonds are not and shall not become directly or indirectly federally guaranteed. A Bond will be considered to be federally guaranteed if the payment of principal or interest with respect to such Bond is guaranteed (in whole or in part) by the United States of America (or any agency or instrumentality thereof) or if 5% or more of the proceeds of the series of Bonds of which such Bond is one are used in making loans the payment of principal or interest with respect to which is guaranteed (in whole or in part) by the United States of America (or any agency or instrumentality thereof) or if invested (directly or indirectly) in federally insured deposits or accounts. (c) The District shall timely file Internal Revenue Form 8038-G pursuant to Section 149(e) of the Code with respect to the issuance of each series of the Bonds. (d) The District shall not sell any other obligations within 15 days of the sale of any series of the Bonds pursuant to the same plan of financing with such series of the Bonds and payable from the same source of funds or having substantially the same claim to the same source of funds used to pay such series of the Bonds. (e) The District shall not, without an opinion of nationally recognized municipal bond counsel, advance refund (as that term is defined in the Code) any of the Bonds with the proceeds of other tax-exempt obligations. Section 20. Ability of the District to Incur Additional Indebtedness. Any provision of this Resolution to the contrary notwithstanding, the District may issue additional notes, bonds or other securities payable from general ad valorem taxes having a lien on said taxes on a parity with or subordinate to, but not prior or superior to, the lien thereon of the Bonds authorized herein. Section 21. Preliminary Official Statement and Official Statement. The President or Vice President of the Board is authorized and directed to execute and deliver, on behalf of the District, a final Official Statement for each series of the Bonds in substantially the form of the Preliminary Official Statement prepared for each series of the Bonds, but with such modifications thereof as are consistent with the terms and provisions of this Resolution and the

25 Bond Details Certificate applicable to such series of the Bonds and which the President or Vice President of the Board shall approve. The execution of a final Official Statement applicable to a series of the Bonds by the President or Vice President of the Board shall be conclusively deemed to evidence the approval of the form and contents thereof by the District. Section 22. Further Action. The President and all other members of the Board, the Superintendent, the Chief Financial Officer and all other officers, employees and agents of the District are hereby authorized and directed to take all other action necessary or appropriate to effectuate the provisions of this Resolution, and to comply with the requirements of law, including, without limiting the generality of the foregoing: (a) The printing of the Bonds authorized herein; (b) The execution of a Tax Compliance Certificate in connection with the issuance of each series of the Bonds; (c) The execution of (i) such other certificates and documents as may reasonably be required by the Underwriter as set forth in the Bond Purchase Agreement for a series of the Bonds to be issued hereunder or by bond counsel in connection with the issuance of such series of the Bonds, (ii) other contracts, agreements and certificates in connection with the investment of the proceeds of the Bonds and the purchase of securities that mature more than five years from the date of their purchase by the District, and (iii) any commitment from an insurance company offering to guaranty the payment of the principal of and interest on any series of the Bonds when due; and (d) The making of various statements, recitals, certifications and warranties provided in the form of the Bonds set forth in this Resolution. Section 23. Temporary Bonds. Until Bonds of any series to be issued hereunder in definitive form are ready for delivery, the District may execute, and upon the request of the District, the Paying Agent shall authenticate and deliver, subject to the provisions, limitations and conditions set forth above, one or more Bonds of such series in temporary form, whether printed, typewritten, lithographed or otherwise produced, substantially in the form of the definitive Bonds of such series, with appropriate omissions, variations and insertions, and in authorized denominations. Until exchanged for Bonds of such series in definitive form such Bonds of such series in temporary form shall be entitled to the benefits and security of this Resolution. Upon the presentation and surrender of any Bond in temporary form, the District shall, without unreasonable delay, prepare, execute and deliver to the Paying Agent and the Paying Agent shall authenticate and deliver, in exchange therefor, a Bond or Bonds of the same series in definitive form. Such exchange shall be made by the Paying Agent without making any charge therefor to the registered owner of such Bond in temporary form. Section 24. Covenants. The Board, having been fully informed of and having considered all the pertinent facts and circumstances, does hereby find, determine and declare that: (a) The total aggregate amount of general obligation indebtedness of the District does not now, nor upon the issuance of the Bonds shall, exceed any applicable

26 limit prescribed by the Constitution or laws of the State of Colorado, including the Refunding Act; (b) The issuance of the Bonds and all procedures undertaken incident thereto are in full compliance and conformity with all applicable requirements, provisions and limitations prescribed by the Constitution and laws of the State of Colorado, including the Refunding Act and the Supplemental Act; and (c) All covenants, statements, representations and agreements contained in the Bonds are hereby approved and adopted as the covenants, statements, representations and agreements of the District. Section 25. Request for Registration. Pursuant to Section (7) of the Refunding Act and Section , Colorado Revised Statutes, it is hereby ordered that, before delivery of each series of the Bonds to the Underwriter, the Bonds of such series shall be forwarded by the Secretary of the Board to the County Clerk and Recorder of Larimer County, Colorado (the Clerk and Recorder ), which is the county wherein the headquarters of the District are located, and that the Clerk and Recorder shall be requested to register such series of the Bonds in a book kept for that purpose. When so registered, the legality thereof shall not be open to contest by the District, or by any person whomsoever, for any reason whatever, and a certified copy of this Resolution and a Certificate requesting registration of such series of the Bonds shall be furnished to the Clerk and Recorder as authority for such registration. For each series of the Bonds, the sum of $26.00 is hereby appropriated out of any funds of the District available for that purpose, as the registration fee, which shall be paid to the Clerk and Recorder. Section 26. Defeasance. When all principal, interest and premium, if any, in connection with the Bonds of any series issued hereunder have been duly paid, the pledge and lien and all obligations applicable to such series of the Bonds hereunder shall thereby be discharged, and the Bonds of such series issued hereunder shall no longer be deemed to be outstanding within the meaning of this Resolution. Payment of any Bond shall be deemed made when the District has placed in escrow and in trust with a commercial bank located within or without the State of Colorado, and exercising trust powers, cash or Defeasance Securities (as defined below) that are, at the time of investment, lawful investments for moneys of the District under the laws of the State of Colorado, in an amount sufficient (including the known minimum yield from cash or Defeasance Securities in which such amount may be initially invested) to meet all requirements of principal, interest and premium, if any, on such Bond, as the same become due to the final maturity of such Bond or upon any prior redemption date as of which the District shall have exercised or shall have obligated itself to exercise its prior redemption option by a call of such Bond for payment. The Defeasance Securities shall become due at or prior to the respective times on which the proceeds thereof shall be needed in accordance with a schedule established and agreed upon between the District and such bank at the time of the creation of the escrow, or the Defeasance Securities shall be subject to redemption at the option of the holder thereof to assure such availability as so needed to meet such schedule. Defeasance Securities means direct noncallable obligations of the United States of America and securities fully and unconditionally guaranteed as to the timely payment of principal and interest by the United States of America, to which direct obligation or guarantee the full faith and credit of the United States of America has been pledged, Refcorp interest strips (only the interest component of

27 Refcorp strips which have been stripped by request to the Federal Reserve Bank of New York in book entry form are acceptable), STRPS, or defeased municipal bonds rated AAA by Standard & Poor s Ratings Services or Aaa by Moody s Investors Service (or any combination thereof). Section 27. Election to Apply Provisions of Supplemental Act. The District elects to apply all of the provisions of the Supplemental Act to the issuance of each series of the Bonds. Section 28. Repealer. All acts, orders or resolutions, or parts thereof, by the District in conflict with this Resolution are hereby repealed, except that this repealer shall not be construed so as to revive any act, order or resolution, or part thereof, heretofore repealed. Section 29. Resolution to Constitute a Contract. This Resolution is, and shall constitute, a legislative measure of the District authorizing the issuance and sale of the Bonds, in one or more series, which Bonds shall constitute general obligation indebtedness of the District, and after each series of the Bonds hereby authorized are issued, sold and are outstanding, this Resolution shall constitute a contract between the District and the registered owners of such series of the Bonds, and shall be and remain irrepealable until all Bonds issued hereunder, any premium, and the interest accruing thereon shall have been fully paid, satisfied and discharged. This Resolution may be amended with the consent of the insurance company, if any, that guarantees the payment of the principal of and interest on any series of the Bonds when due (the Insurer ) and, if such amendment does not materially adversely affect the interests of any registered owner of any Bond, without the consent of or notice to the registered owners of the Bonds; provided, however, that if the municipal bond insurance policy (the Policy ) issued by the Insurer and applicable to any series of the Bonds is no longer in full force and effect or if the Insurer is in default under the Policy, this Resolution may be amended without the consent of the Insurer and, if such amendment does not materially adversely affect the interests of any registered owner of any Bond, without the consent of or notice to the registered owners of the Bonds. Section 30. Captions. The captions set forth as part of this Resolution are for convenience of reference only, and shall not be deemed or interpreted as defining, limiting or describing the scope or intent of any provision or section of this Resolution. Section 31. Severability. If any paragraph, clause or provision of this Resolution is judicially adjudged invalid or unenforceable, such judgment shall not affect, impair or invalidate the remaining paragraphs, clauses or provisions hereof, the intention being that the various paragraphs, clauses or provisions hereof are severable. Section 32. Recording and Execution. This Resolution, after its final passage, shall be recorded in a book of the District kept for that purpose and shall be executed and authenticated by the official signatures of the President or Vice President of the Board and the Secretary or Assistant Secretary of the Board, respectively. Section 33. Fulfillment of Requirements of Refunding Act. The Board hereby finds and determines that any provisions or limitations contained in the Refunding Act with respect to the Bonds, and any other applicable law imposed upon the issuance of bonds by the District or relating to the issuance of the Bonds, have been met

28 Section 34. Effective Date. This Resolution shall be in effect immediately upon its adoption by the Board

29 ADOPTED AND APPROVED this 15 th day of February, THOMPSON SCHOOL DISTRICT NO. R2-J [SEAL] Attest: By President, Board of Education By Secretary, Board of Education

30 Director moved that the foregoing Resolution heretofore introduced and read by title be approved and adopted. Director seconded the motion. The question being the approval and adoption of the Resolution, the roll was called with the following results: Those voting YES: Those voting NO: Those absent: Thereupon the President declared the motion carried and the Resolution duly approved and adopted. After consideration of other business to come before the Board, the meeting was adjourned. By President, Board of Education [DISTRICT SEAL] ATTEST: By Secretary, Board of Education

31 STATE OF COLORADO ] COUNTY OF LARIMER ] ss. THOMPSON SCHOOL DISTRICT NO. R2-J ] I, Leslie Young, the Secretary of the Board of Education of Thompson School District No. R2-J (Larimer, Weld and Boulder Counties, Colorado) (the District ), do hereby certify that the foregoing pages numbered 1 through 23, inclusive, constitute a true and correct copy of the record of proceedings of the Board of Education of the District relating to the issuance of the District s General Obligation Refunding Bonds, adopted at a regular meeting of the Board held at the District s Administration Building, 800 South Taft Avenue, Loveland, Colorado, in said District, on February 15, 2012, at the hour of 6:00 p.m., as recorded in the official record of proceedings of the District kept in my office; that the proceedings were duly had and taken, the meeting was duly held and the persons therein named were present at said meeting as shown therein. Notice of such meeting was posted in a public place within the boundaries of the District designated by the Board for the posting of notices of meetings of the Board no less than 24 hours prior to the holding of the meeting. Notice was properly given for the meeting at which the Resolution was adopted, and all proceedings relating to the adoption of the Resolution were conducted in accordance with all applicable bylaws, rules, regulations and resolutions of the District, in accordance with the normal procedures of the District relating to such matters, and in accordance with applicable constitutional provisions and statutes of the State of Colorado and in accordance with all other applicable laws. [SEAL] WITNESS my hand and the seal of the District affixed this day of February, By Secretary, Board of Education

32 AGENDA ITEM 4.0 District Accountability Committee (DAC) Mid-Year Report Date: February 8, 2012 Submitted by: Consideration: Ronald G. Cabrera, Ph.D., Superintendent of Schools Judy Skupa, Ph.D., Deputy Superintendent Does the Board have questions or require additional information regarding the District Accountability Committee (DAC) mid-year report? Over the past eight months (June 2011 January 2012), the District Accountability Committee (DAC) has addressed the Board of Education (BOE) defined charges (excluding charge #2 regarding funding priorities) and reviewed school and district improvement plans in accordance with the Education Accountability Act of 2009 (Senate Bill ). DAC continues to work with the district school-level accountability committees to fully integrate Senate Bill 163 policy in defining local School Accountability Committee (SAC) policy and practice. In addition, DAC has been examining more metrics related to the BOE defined charges which are summarized below. Jody Shadduck-McNally, DAC chair, and Liz Rayment, DAC vice-chair, will be in attendance to answer questions DAC Charges: 1. Continuous improvement of SAC and DAC capacity to provide school and district accountability 2. Provide feedback to Board of Education regarding funding priorities 3. Oversee accreditation processes for , ensuring alignment with Senate Bill (Education Accountability Act of 2009) 4. Provide accountability for implementing district strategic plan (Vision 2020) 5. Provide accountability for ensuring equity access across district programs 6. Provide accountability for RtI implementation Mid-Year DAC Accomplishments and Reflections Significant accomplishments in executing BOE charges and accompanying reflections are highlighted below. Revision continues to the structure of DAC meetings to engage the members and provide more opportunities for deeper conversations. A one-page School Improvement Process and Timeline document was created collaboratively with district administrators to guide DAC work through the year (Exhibit 1). This timeline was reviewed with 73% of principals and SAC representatives during the summer. For wider dissemination, DAC policies, meeting schedules with agendas and minutes, along with other relevant information have been made available online on the district website. Three training sessions (05/31/2011, 06/06/2011, and 08/09/2011) were provided for DAC members and principals to understand how to Use Means with Meaning and how means relate to purposeful goal setting in school and district unified improvement plans.

33 Small steps continue in increasing SAC membership efforts to better reflect student demographics. The goal is to be proportional with the district student demographics. The table below indicates current membership of 381 and the DAC membership target. Exploration continues in finding ways to increase broader representation in SAC and DAC to reflect student demographics SAC Membership Demographics Target 77% female 50% 23% male 50% 92% white 77% 2% Asian 1% 5% Hispanic 18% 1% other race/ethnicity categories 4% 29% represent students with disabilities 12% DAC Charge #1: Continuous improvement of SAC and DAC capacity to provide school and district accountability When asked to reflect on how DAC has worked this year (Charge #1), twenty-one DAC members provided feedback on January 10, Listed below is statistical data for those who responded to the nine items (Exhibit 2): 80% took information to SAC from DAC 81% had increased understanding and thinking about equity in access 83% believed they had deeper conversations this year 90% had an increased understanding and thinking about RtI 95% believed they are getting their questions answered at DAC 95% believe they have a better understanding of the school improvement process and accreditation 100% believe DAC has improved, and 100% have enjoyed the revised structure and conversations at DAC this year DAC Charge #2: Provide feedback to the Board of Education regarding funding priorities This charge will be addressed at the February and April meetings. DAC Charge #3: Oversee accreditation processes for , ensuring alignment with Senate Bill (Education Accountability Act of 2009) To accredit schools in alignment with Senate Bill (Education Accountability Act of 2009), the school improvement review process was modeled at the September 13, 2011 DAC meeting. A DAC subcommittee spent numerous hours reviewing the application of a newly proposed Red Rock Academy charter school throughout fall The BOE approved the DAC membership during their meeting on October 5, DAC completed the review of school improvement plans on October 11, 2011 and the BOE approved the accreditation categories on October 19, 2011.

34 Principal feedback on the review process, reviewer feedback on the review process, and feedback to principals and school improvement teams were summarized and shared with principals and DAC in October and November 2011 to inform continuous improvement efforts. DAC Charge #4: Provide accountability for implementing district strategic plan (Vision 2020) DAC continues to provide accountability for implementing the district s strategic plan. During the January 10, 2012 DAC meeting, more feedback was obtained from stakeholders regarding the district improvement plan and how it ties in with Vision DAC Charge #5: Provide accountability for ensuring equity in access across district programs Using quantifiable measures, DAC examined and analyzed student achievement data through the lens of equity during the November 8, 2011 DAC meeting. This was intended to provide accountability for ensuring equity in access across district programs. DAC had a better understanding of achievement gaps at elementary, middle, and high schools by reviewing CSAP and Acuity A data in reading and math. Early successes in reducing the achievement gap during the school year were noted. To quote a DAC member, shared a lot data from the equity in access meeting with our SAC. Many times I have taken information from DAC, back to SAC this year. DAC Charge #6: Provide accountability for RtI implementation Using quantifiable measures, DAC examined and analyzed student achievement data through the lens of Response to Intervention (RtI) during the December 13, 2011 DAC meeting. Principals from three elementary schools, two middle schools, and one high school shared good RtI practices at the meeting. As one DAC member reflected, The RtI meeting was a good meeting.

35 Exhibit 1: DAC Charges & School Improvement Process & Timeline AA Director Training Principal & Elementary Share Submission Review of confer with Elementary SAC Rep. & Secondary Sample of School School DAC Chairs & Secondary confer with Principal Exemplar Improvement Improvement re SIPs Principals DAC Chairs Training SIPs at DAC Plans to AA Plans (#3) May May 31, 2011 Jun Aug. 1, 2011 Aug. 9, 2011 Sep. 9, 2011 Oct. 11, 2011 June 6, 2011 at Office of CSAP 2011 Training DAC Model Review at MVHS Half day Director of Results on Using Process at 5:00 9:00pm Data Retreat Accountability embargoed Means with DAC Dinner at 6:00 Using Means Accreditation for publication Meaning, Meeting 1: 5:00 5:30 with on in any form Recap of UIPs, Sep. 13, : 6:30 7:00 Meaning School until noon & Additional 3: 7:30 8:00 Improvement of Wednesday Metrics on How has the Three interview Plans (SIPs) Aug. 3, 2011 School Climate, budget impacted session times District/School your school/ indicated above Assessments, the district? (Plans reviewed, et. al. by Parents in Teams of 3) Timeline does not show online training modules on Interpreting Means with Meaning, Reviewing School Improvement Plans et. al. Essential Questions the District Accountability Committee (DAC) will Reflect on as we address the BOE charges: What measures did the school/district take to have SAC/DAC reflect student demographics? How has the budget impacted your school/the district? How is SAC/DAC working (#1)? How might parents lead SAC/DAC effectively to make recommendations to Principal/BOE? Making Making Making How does Safety & Submission Mid Year meaning of meaning of meaning of what has Belonging Results of Principal Report Student Student Student worked and Acuity A, B, Mid Year Joint D/SAC Achievement Achievement Achievement inform the & C Trajectory Report to AA Feedback to Data through the lens of to Principals for feedback by SAC by the Equity (#5) RtI (#6) Vision 2020 (#4)? (#2) & SAC Walkthrough Team (WT) WT & DAC Nov. 8, 2011 Dec. 13, 2011 Jan. 10, 2012 Feb. 7, 2012 Feb. 10, 2011 Mar. 9, 2012 Mar. 13, DAC Charges: 1. Continuous improvement of SAC and DAC capacity to provide school and district accountability; 2. Provide feedback to Board of Education regarding funding priorities; 3. Oversee accreditation processes for , ensuring alignment with Senate Bill (Education Accountability Act of 2009); 4. Provide accountability for implementing district strategic plan (Vision 2020); 5. Provide accountability for ensuring equity access across district programs; 6. Provide accountability for RtI implementation.

36 Exhibit 2: January 2012 DAC Survey Feedback Results Feedback on DAC Charge #1 January 10, 2012 Response Status: Completes Filter: No filter applied Jan 11, :57 AM PST 1. Do you believe you have a better understanding of the school improvement process and accreditation? Yes 20 95% No 1 5% Total % 2. Do you believe DAC has improved this year and provided more accountability and voice to its members? Yes % No 0 0% Total % 3. Do you believe you have increased your understanding and thinking about Equity in Access? Yes 17 81% No 4 19% Total % 4. Do you believe you have increased your understanding and thinking about RtI? Yes 19 90% No 2 10% Total %

37 5. Do you believe DAC has had deeper conversations regarding our charges this year, compared to years past? Yes 10 83% No 2 17% Total % 6. Do you believe your questions are getting answered at the DAC meetings this year? Yes 19 95% No 1 5% Total % 7. Have you enjoyed the revised structure and conversations at DAC this year? Yes % No 0 0% Total % 8. Have you taken information from DAC, back to the SAC this year? Yes 16 80% No 4 20% Total % 9. Do you have other comments or concerns regarding the DAC meetings this year? 12 Responses

38 9. Do you have other comments or concerns regarding the DAC meetings this year? Respondent # Response 1 Why aren't more people here? 2No comments 3 Shared a lot of the "Equity in Access" meeting w/ out SAC. Many times :) I have taken information from DAC, back to the SAC this year. I use a lot of Jodi's openings and do them at our SAC Meetings! Thanks! Looking forward to joint SAC/DAC meeting. 4 Nice job! 5I would suggest beginning the meetings at 5:00pm. 6 Jody's leadership is awesome! 7 Great job 8 Our SAC is a month away we speak informally. 9 The RtI meeting was a good meeting. More conversations would be nice. Maybe address what DAC priority charges we are covering at the beginning of the meeting. I lost track of our charges as the year goes on This is my first year. There has been a lot of terms used that is educational jargon that makes it difficult to understand what's being referred to at times. 11 Already informed well. 12 No prior experience to comment about deeper conversations.

39 AGENDA ITEM Materials & Procurement (M&P) Department Report Date: February 8, 2012 Submitted By: Consideration: Ronald G. Cabrera, Ph.D., Superintendent of Schools Stephen Towne, CFO Does the Board have any questions regarding the M&P department annual report? This annual report provides information to the Board regarding key functions and efficiencies in the M&P department. The M&P department provides buying and contracting services in support of all district schools and departments. This is our opportunity to demonstrate the value of services provided to the district as shown through purchasing cost savings data, purchasing card spending activity, customer satisfaction survey results and strategies toward continuous improvement. Purchasing Cost Savings: The cost savings report (Attachment A) is a summary of the competitive bid activity completed by the procurement staff during The spreadsheet details total purchases and contracts of $2,988,458 reflecting total cost savings of $456,025. This is a 15% savings rate over all purchases. The cost savings rationale (Attachment B) explains the processes used to complete the report. The bottom line is that procurement is a value-added service that makes every effort to receive optimum value for the dollars spent through sound Board approved purchasing policies and procedures. Purchasing Card (P-card) Activity: Attachment C provides the total purchase volume of district and purchasing staff p-card users in The volume of spending increased from $1.77 million during to $1.92 million or 9% during The procurement staff processed transactions totaling $312,470 through multiple funding sources. Customer Satisfaction Survey Results: Attachment D provides customer satisfaction survey results to inform the Board of the high quality customer service the department provides customer feedback results are provided from a total of 101 customer surveys ed out to stakeholders using an online survey process. The department utilized an annual public agency satisfaction survey hosted by the National Institute of Governmental Purchasing (NIGP) to provide the 2007 through 2009 historical survey results, and the NIGP K-12 comparison report. NIGP discontinued the program in Strategy for Operational Efficiency: The scope of services provided by the M&P department includes the materials warehouse operation. This operation provides a full-service mail room that coordinates the retrieval and delivery of surplus property, technology equipment, corporate donations, event equipment, and instructional science resource kits. It also provides expendable supplies order processing managed with the Poudre School District warehouse. M&P continues to research best practices to improve processes including measuring the cost effectiveness of buying expendable supplies through the warehouse, enhancing the district p-card program, and streamlining surplus property disposal processes. Traci Burtnett, materials & procurement director, will be in attendance to answer questions.

40 Attachment B Purchasing Cost Savings Rationale The attached cost savings report is a summary by category of a spreadsheet detailing every purchase and contract award that the procurement staff managed in fiscal year The spreadsheet, as well as purchase orders, bid documents and quote sheets are public record. The NIGP provides standardized guidelines for cost savings reports that the district follows. Informal Bid/Quote Process: The majority of purchase cost savings in this category are a result of bid solicitations and quote requests obtained for equipment above a $1,500 unit cost. Three telephone or written quotes are obtained for supplies orders at a cumulative total above $3,000. Vendors from the approved bidder s list are solicited for pricing and the vendor who meets specifications with the lowest cost is awarded the contract. The cost savings on these transactions are computed as the difference between the high bid and the low bid. Formal Bid Process: The formal bid solicitations cost savings are computed differently. This category reports savings from major project contract award actions. In these cases, the cost savings are reported as the difference between the total amount of the awarded bid proposal and the average cost of all the other submitted bid proposals. The summary below reflects historical data from annual reports to the Board: Fiscal Year PO Value (Millions) $2.90 $4.64 $15.9 $6.37 $21.8 $7.59 $2.99 Cost Saving Generated $361,109 $493,900 $939,415 $676,034 $1.01M $690,612 $456,025 Savings Rate Overall 12% 11% 6% 11% 5% 9% 15% M&P $319,146 $325,494 $368,971 $394,599 $411, ,131 $420,292 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 Cost Savings M&P Processes Where No Cost Savings Reported: Procurement staff review and process all district purchase orders. The vast majority of the purchase orders are not subject to bidding requirements and have no savings reported. Purchases made with p-cards, under educational pricing contracts, state bid awards and cooperative purchasing agreements are not reported as cost savings when these agreements can be accessed without procurement staff member direct involvement. No cost savings are reported for these purchases so our report is not inflated and truly represents only savings generated through the efforts of the procurement staff.

41 The report does not reflect cost savings from service and term contract solicitations completed by the procurement staff. Contracts include establishing pricing agreements with ranked standing order contractors that provide maintenance and repair services in the areas of asphalt, concrete, plumbing, electrical, fence materials, pest control, and HVAC preventative maintenance. The purpose of these contracts is to support the facilities project manager and technicians with small remodel and repair projects estimated under $25,000 each, and in support of the district s project proposal process. The district s objectives are to reduce costs by eliminating repetitive bidding requirements for each project that leads to improved flow of information between the contractor and the district. The procurement staff facilitated 21 formal bid and request for proposal (RFP) solicitations; however, several were created and released where no cost savings can be measured. The value procurement brings is ensuring the integrity of the process that all interested suppliers are treated fairly and encouraged to compete. Procurement staff facilitated the process to select qualified contractors to provide trash hauling & recycling services, custodial laundry, a transport natural gas provider, and a sustainability management consultant firm. The RFP solicitations for renovation of an early childhood center, standing order construction contractor, and back-to-school publication resulted in no contract award due to the proposed costs exceeding budget allocations.

42 Attachment C Purchasing Card Activity Small dollar purchases are recommended to be processed as a purchasing card (p-card) transaction as no competitive bidding is required. M&P shares administration of the purchasing card program with business services. M&P provides district staff training on p-card use, guidelines and procedures. The program began as a pilot in 2001 with 14 card holders. The program has expanded to staff district-wide, including the procurement staff, using the p-card to purchase supplies and materials instead of generating small dollar or blanket purchase orders. The summary below reflects historical purchase order volume and p-card activity of the district. Fiscal Year # PO s Processed 6,530 6,084 5,798 4,838 3,500 3,537 2,623 # P-Card Users M&P Staff P-card Purchases $59,981 $83,075 $118,162 $189,503 $302,151 $304,577 $312,470 Dist. Total P-card Purchases $831,622 $891,211 $1.01M $1.36M $1.58M $1.77M $1.92M Purchase Orders Processed ,530 6,084 5,798 4,838 3,500 3,537 2,623 District-wide Total P-Card Purchases $831,622 $891,211 $1,010,000 $1,920,000 $1,770,000 $1,580,000 $1,360,000

43 Attachment D Customer Satisfaction Survey Results We continue to analyze the labor and operating costs of the entire M&P operation to ensure we are, at a minimum, a cost-effective use of district resources. At the request of the Board, the M&P department released an annual survey to gather valuable customer feedback. This no cost survey tool assists the department to set measurable goals and gauge performance improvement. We wish to provide the Board our historical survey results and the highlights of how the district compares to the NIGP K-12 comparison report results. Quality of Products: Rate Quality of Products & Services Procured for Sites NIGP (K-12) Very High Quality 38% 37% 10% 14% 13% Good Quality 47% 49% 67% 66% 56% Neutral 11% 11% 15% 17% 22% Poor Quality 4% 3% 8% 0% 8% Very Poor Quality 0% 0% 0% 3% 1% NIGP Very High Quality Good Quality Neutral Poor Quality Very Poor Quality 0% 20% 40% 60% 80% 100% Responsiveness: Rate Timely Response of Requests and Needs NIGP (K-12) Very Responsive 61% 57% 39% 35% 14% Responsive 32% 34% 51% 41% 43% Neutral 5% 0% 5% 7% 12% Occasionally Responsive 2% 9% 5% 14% 26% Not At All Responsive 0% 0% 0% 3% 5% NIGP Very Responsive Responsive Neutral Occasionally Responsive Not At All Responsive 0% 20% 40% 60% 80% 100%

44 Overall Satisfaction: Rate Overall Satisfaction with Quality of Service NIGP (K-12) Extremely Satisfied 58% 54% 38% 21% 12% Satisfied 38% 40% 46% 52% 50% Neutral 2% 0% 5% 14% 19% Dissatisfied 2% 3% 8% 10% 17% Extremely Dissatisfied 0% 3% 3% 3% 2% NIGP Extremely Satisfied Satisfied Neutral Dissatisfied Extremely Dissatisfied 0% 20% 40% 60% 80% 100% In 2011, M&P received 45 responses from the 101 people invited to take the survey (45% response rate). NIGP indicates a 15% or higher response rate means that the results are indicative of the average customer s opinion of the department. On the overall satisfaction question, 96% of the respondents indicated that they were satisfied and or very satisfied with the service received from the M&P department much higher than the national comparison report average for K-12 of 62% and a 2% increase over 2009 results of 94%. Strategy for Operational Efficiency: To ensure the district is utilizing the best resources, we continue to look for ways to improve processes that gain efficiencies in the services we provide the district. We are in process of measuring the cost effectiveness of utilizing the Poudre School District s warehouse for acquiring expendable supplies and materials, enhancing the purchasing card program and streamlining the surplus disposal process. The arrangement with Poudre warehouse is a vendor/customer relationship to address many district expendable supply needs without a direct responsibility for warehouse labor and overhead costs. However, we are seeking opportunties to measure cost savings benefits to buy expendable supplies and materials directly from alternative supply sources. In October, 2010, the district joined a p-card consortium group that offers a higher rebate level based on the total of all qualified sales of the participating member agencies in the consortium. We believe there is opportunity to enhance the program by designating large dollar transactions into the annual spend activity. The benefits to the district are not only cost savings, but increased rebate potential (2012 projected), payment processing efficiencies, and more effective use of staff time.

45 Purchasing Card Rebate Comparison $65,000 $10,578 $14,036 $26, Projected The materials warehouse staff are reorganizing work tasks and defining standard operating procedures. They are currently working on efficiencies within the surplus disposal process to include enhancing surplus sales revenue, and a process for quicker turn around to offer surplus property to sites. They are seeking non-financial sources, such as corporate donations, for acquiring essential items that many schools are in need of and which budget resources are not available for.

46 Attachment A Materials and Procurement Cost Savings Report July 2010-June 2011 INFORMAL BID/QUOTE PROCESS: Bid Total Total Category Amount P.O. Value Savings Equipment $978,879 $923,771 $55,108 Supplies / Materials $662,450 $584,665 $77,785 TOTAL: $1,641,329 $1,508,436 $132,893 FORMAL BID PROCESS: # Average Bid Contract Non-Bond Bond Project Description Bids Allocation Amount Award Savings Savings CWP Playground 3 $18,500 $49,425 $18,500 $30,925 CWP Retaining Wall 2 $41,333 $62,312 $41,333 $20,979 TVHS Gym Sound Sys 3 $25,000 $30,501 $24,846 $5,655 EC Playground Addn 5 $91,788 $108,986 $91,778 $17,208 Lincoln EC Bldg Demo 11 $10,000 $15,623 $8,580 $7,043 Namaqua Roof 10 $688,700 $425,018 $342,420 $82,598 MV Pool Boiler 5 $83,600 $101,962 $83,600 $18,362 TMS Fire Alarm 3 $70,000 $40,421 $33,705 $6,716 TMS & Truscott Roof 12 $97,500 $79,075 $56,400 $22,675 Irrigation Systems 4 $40,000 $38,734 $32,543 $6,191 CR Classroom Expansion 7 $825,000 $804,917 $716,800 $88,117 LHS Practice Field 3 $53,675 $46,180 $29,517 $16,663 TOTAL: $2,045,096 $1,803,154 $1,480,022 $210,764 $112,368 Bid/ Contract Non-Bond Bond Total Amount P.O. Value Savings Savings Savings TOTAL ALL AREAS: $3,444,483 $2,988,458 $343,657 $112,368 $456,025 Savings realized over total contract value: 15% Formal Bid Process Overall Results / Market / Contract / Savings AllocationAvg Bid Costs Contract Award Savings Return $2,045,096 $1,803,154 $1,480,022 $323,132 $2,045,096 $1,803,154 $1,480,022 $323,132 Allocation Avg Bid Costs Contract Award Savings Return

47 Date: February 8, 2012 AGENDA ITEM 6.0 Transportation Cost Saving Ideas Submitted by: Consideration: Ronald G. Cabrera, Ph.D., Superintendent of Schools Michael Jones, Assistant Superintendent of HR and School Support Does the Board have any questions regarding the transportation cost saving ideas? At the January 11, 2012 Board work session, the Board of Education decided not to seek an outsourcing program for district transportation. They asked staff to create a list of cost saving ideas to generate a potential $500,000 in savings from the transportation budget. To accomplish this task, several steps were taken. Nansi Crom, director of transportation, held a voluntary informational meeting on Wednesday, January 18, for all transportation staff members. The purpose of this meeting was to provide details regarding the budget reduction task, provide an update on the Board s decision to not outsource transportation services, and to provide the staff with an opportunity to offer input for potential reduction strategies. Following this meeting, a list of potential cuts was developed to address the charge by the Board. The list of potential cost savings includes a reduction of transportation services, the potential to increase extracurricular transportation fees to cover the actual costs relating to trips, and incorporating a fee for daily transportation services. The dollar amounts are inclusive of driver salary, fuel, and maintenance cost savings. The total cost savings reflect the 22.5% deduct for CDE reimbursement of student transportation. The attached services and items listed are cost saving suggestions that can be implemented by the beginning of the school year. Included is information regarding a major reduction of all secondary (middle and high school) student busing and/or the potential for eliminating high school transportation services only. Eliminating high school student busing would involve elementary and middle school students riding on the same bus. This option would require some consideration of the wide range of ages and maturity levels among these students. However, this is an option staff would further investigate at the Board s direction.

48 TRANSPORTATION SERVICES TARGET $1M COST REDUCTION Estimated financial impact Target Area Action Impact $178,250 FEE FOR TRANSPORTATION Charge a fee of $10/month for 10 months for a flat fee of $10/student rider. Students qualifying for free/reduced meals and any students receiving mandated transportation would not be charged. Offset transportation costs. Potential of lost ridership. Would entail hiring a clerical employee to track payments. $53,475 FRCC SHUTTLE Eliminate daily FRCC bus service between high schools and FRCC campuses. This includes the reduction of 1 fate. Equity in Access questions, students driving/sharing rides $33,325 SUMMER SCHOOL BUSING Eliminate busing for summer school programs. This is inclusive of driver time and summer dispatch hours. Equity in Access questions, programming options for our most impacted students $7,750 SPACE AVAILABLE BUSING Would eliminate unnecessary route stops where no eligible riders are present. Minimal impact $15,500 ECH BUSSING Align elementary ESS and ECH program times to combine routes, reduce route mileage and driver time. Impact to start times, minor impact to supervision needs $46,500 ATHLETIC/EXTRACURRICULAR TRAVEL Eliminate busing for weekend athletic and extracurricular activities. Could be cost neutral by increasing the fee of trips. Students would need to provide own transportation or an increase of costs that reflects actual transportation costs. $94,550 EXTRACURRICULAR TRAVEL Limit extracurricular travel to educational trips; limit distances and frequency; limit travel times between 8:45 am - 2:15 pm to eliminate need for sub driver route coverage. This is inclusive of the reduction of 6 sub driver positions. Could be cost neutral by increasing the fee for trips. Less flexibility in scheduling of trips, fewer opportunities for field trips $15,500 ESS TRANSPORTATION Enforce strict requirements for identifying mandated transportation services on student IEPs. Review of IEP's for determination of need $46,500 BELL TIMES $7,750 ATTENDANCE BOUNDARIES Eliminate three p.m. only routes by aligning bell times between BHS and TVHS feeder schools sharing route packages. This is inclusive of a.75 fate reduction and 3 buses on routes. Reconfigure attendance boundaries into more compact areas for selected schools to reduce the number of routes, route mileage and driver time. Minimal impact by changing start/stop times of the school schedule Minimal impacts for "pockets" of students $499,100 This amount is reflective of the 22.5% deduct for the CDE reimbursement Additional Consideration $995,000 Elimination of secondary busing Eliminate all middle school/high school bus service $995,000 Elimination of high school transportation Move to a one tier system, combining elementary and middle school routes. Special consideration should be given to combing these age groups on buses given the wide age difference and, more importantly, the maturity level of students.

49 TSD TRANSPORTATION BUDGET FOR FY11/12 SUMMARY INFORMATION CATEGORY $ 1 SALARIES ,219,303 2 BENEFITS 877,649 3 FOCUS BUDGET WHITE FLEET + 178,000 4 FOCUS BUDGET YELLOW FLEET + 765,136 5 FOCUS BUDGET TRANSPORTATION ADMIN + 101,523 6 DEPARTMENT BUDGET TRANSPORTATION + 17,960 7 FOCUS BUDGET TRANSPORTATION UTILITIES + 61,446 8 TRANSPORTATION SUBSTITUTES 140,000 9 TRANSPORTATION FIELD TRIP REVENUES (275,000) 10 STATE FUNDED REIMBURSEMENT (903,055) 11 TOTALS 3,182,962 SUPPORTING DETAIL 3.1 DIAGNOSTIC SOFTWARE 1, OUTSIDE VENDOR REPAIRS 6, FUEL 120, TIRES/TUBES 10, VEHICLE PARTS 36, EQUIENT 5,000 WHITE FLEET 178, EXTRA HOURS 1, OUTSIDE VENDOR REPAIR 5, FASTER FLEET SOFTWARE 8, STAFF DEVELOENT 2, FUEL 486, TIRES/TUBES 44, LUBRICANTS 14, VEHICLE PARTS 184, DISOSABLES 2, CLEANING PRODUCTS 2, TECHNOLOGY EQUIENT 6, EQUIENT UNDER $5k 5, PRINTING GENERAL SUPPLIES 3, WAREHOUSE YELLOW FLEET 765,136

50 5.1 EXTRA HOURS 69, EDULOG SOFTWARE 14, KRONOS SOFTWARE 2, WEATHERSENTRY LICENSE 2, SCHOOL DUDE TRIP DIRECT 5.6 STUDENT TRANSPORT/SPED 10, TWO WAY RADIOS STUDENT/EMPLOYEE AWARDS 2,400 TRANSPORTATION FOCUS 101, STAFF DEVELOENT 2, MILEAGE REIMBURSEMENT GENERAL SUPPLIES 5, WAREHOUSE SUPPLIES 6.5 DUES/SUBSCRIPTIONS EQUIENT UNDER $5,000 5, PRINTING/DUPLICATING 3, ADVERTISING TRANSPORTATION DEPT BUDGET 17, UTILITY SERVICES 6, WATER/SEWAGE 4, NATURAL GAS 20, ELECTRICITY 29,943 UTILITIES TRANSPORTATION 61,446

51 AGENDA ITEM Development Process Update Date: February 8, 2012 Submitted by: Consideration: Ronald G. Cabrera, Ph.D., Superintendent of Schools Stephen Towne, CFO Does the Board have any questions or need additional information regarding the budget development process? Process Update The majority of Board members are familiar with the basic budget development process the district has used the last two years and currently plans to employ for this year. A single page overview of the process and key activities for each month is attached. The Board is also aware that staff comments from the recently completed Listening Tour have resulted in a commitment to make staffing decisions no later than mid-march if possible. As a reminder, the recently implemented voluntary exit incentive will remain open until February 21. The commitment to provide staffing information by mid March injects a new challenge to the existing process that could result in timeline modifications. Proposal Team The district remains committed to transparency and inclusion in the budget development process. The Proposal Team (BPT) in particular exists to achieve these goals. The composition of last year s BPT by stakeholder group is attached. We ve recently completed confirmation of returning participants, added several new members, and are working to coordinate appropriate meeting times. Matters (New General Fund Format) We are also finishing an update to TSD Matters an area of the district website dedicated to providing budget development information to all interested community members. Central to that updated web page will be a new general fund budget format with several supporting documents that will provide greater clarity and understanding. Basic documents will be in place on the website for review and discussion with the Board on February 8. IFAS Tracker Attached are summary copies of budget to actual reports for each of the three employee groups (Licensed, Classified, APT). The bottom of each summary report reflects that the district currently employs fewer than budgeted for the school year, and in some cases significantly so. This is not a surprise. Rather, it s a confirmation of what was suspected for several years but remained unconfirmed due to the limited assessment tools available. The newly developed IFAS tracker now allows us to compile this data. Also included is a sample detail report for the APT group. This version details who is assigned to each particular host along with their job title. APT was selected because it was the smallest group. The licensed and classified reports are much larger.

52 This tracking tool will be a useful and impactful for tracking district progress versus the budget, predicting year-end totals, and forecasting possibilities for This is a brand new tool and few staff members have actually seen these reports. The initial purpose of the tracking module was to create efficiency for the accountant in financial services responsible for tracking staff hires against budget. We re now engaged in systems alignment activities that will put this tool to productive use beyond the initial vision. A sister tool being developed will leverage the tracker and also allow for forecasting of yearend deviation of salaries and benefits versus original projections. The sister tool should be ready in time to assist in budget development. These documents are provided for advance review. Stephen Towne, CFO, will be in attendance to provide a detailed explanation of the many nuances within the attached reports.

53 TSD Development Process Overview March Proposal Team 1. TSD budget education 2. BPT transparency notebook 3. Survey results 4. Discussion, challenge 5. Preliminary draft(s) April Community Forums 1. 4 nights, 4 locations 2. Review draft budget(s) 3. Discussion 4. Solicit feedback/input 5. Adjust draft budgets as needed February Managers Work 1. Staff/community survey 2. Managers propose individual budgets 3. Manager proposals reviewed, adjusted by division head & Financial Services as necessary May Proposed 1. BPT presents to BOE 2. BOE discussion 3. BOE directs staff to prepare proposed budget per statute November - January Pre- Process 1. Funding/Cost estimates 2. Stakeholder concerns 3. Time sensitive decisions 4. Broad brush scenarios 5. BOE Guidance 6. 1 of 4 monthly financial update letters to staff June Adopted 1. Public hearing 2. Changes if any 3. BOE adopts budget

54