Pearland Independent School District

Pearland Independent School District Regular Meeting Tuesday, June 12, 2018 5:00 PM

Agenda of REGULAR MEETING The Board of Trustees PEARLAND INDEPENDENT SCHOOL DISTRICT Notice is hereby given that a Regular Meeting of the Board of Trustees of the Pearland Independent School District will be held on June 12, 2018, beginning at 5:00 PM at 1928 North Main, Pearland, Texas. The subjects to be discussed, considered, or upon which any formal action may be taken are listed below. The items listed in this notice may be taken in any order at the discretion of the Board. 1. Call to Order 2. Establishment of a Quorum 3. Public Comment [Length of time of each not to exceed five(5) minutes] 4. Closed Meeting as Authorized by Section 551.001 et seq.of the Government Code A. 551.071 - Private Consultation with the Board's Attorney Regarding any Item on the Agenda B. 551.072 - Discussing Purchase, Exchange, Lease or Value of Real Property C. 551.074 - Personnel Discussion 1. Employment of Professional and Instructional Personnel 2. Review Resignations D. 551.076 Considering the Deployment, Specific Occasions for, or Implementation of, Security Personnel or Devices E. 551.082 -Consider Discipline of a Public School Child, or Complaint or Charge Against Personnel 5. Reconvene in Open Session 6. Introductory Remarks - Trustee Jeff Barry A. Such remarks by an individual board member are entirely his or her own and do not necessarily reflect the views or judgment of the Board of Trustees as a whole or the school district. No other members of the board or employees of the school district, or any other person in attendance at the meeting is expected or required to participate in any introductory remarks that are presented. 7. Consider Action on Items Discussed in Closed Session as Listed Under Closed Meeting in this Notice 8. Public Hearing A. Discuss the 2018-2019 Budget and Proposed Tax Rate 5 B. Public Comment 9. Board Recognition [6:15 p.m.] 10. New Business - Consideration of and Possible Action on the Following Consent Agenda: All items under the Consent Agenda are acted upon by one motion. Upon a board member's request, any item on the Consent Agenda shall be moved to the Regular Agenda. A. Consent Agenda

1. Approve Minutes of Regular Board Meeting May 22, 2018 and Special Board Meetings May 3, 2018, May 10, 2018 and May 15, 2018 2. Approve Budget Amendment Number Two 55 3. Approve Revisions to Local Policy EHBB 58 4. Approve Utilization of BuyBoard Contract RFP 531-17 for Library Books, Used Books, and Other Books with Follett for the Purchase of Textbooks 5. Approve Ratification of Expenditures for the Utilization of Texas Education Agency (TEA) Proprietary Contract 2939 with The College Board for Advance Placement (AP) Examinations 6. Approve Contract Award RFP 18-0510-16 for Student Athletic Insurance Coverage and Catastrophic Student Athletic Coverage with Greater East Texas Insurance Associates 7. Approve to Utilize Region 5 Southeast Texas Purchasing Cooperative Contract RFP 20180504 for HVAC Capital Equipment, Supplies and/or Services with Unify Energy Solutions, LLC, for the Purchase of Building Automation and Energy Management System Maintenance 8. Approve Construction Manager at Risk (CMAR) Contract for Package E of the 2016 Bond Projects B. Regular Agenda 1. Consider to Approve the 2018-2019 Annual Budget 98 2. Consider Adoption of Resolution Setting Ad Valorem Tax Rate for 2018 99 3. Consider to Approve the Selection of Architect Firm to Provide Architectural Services for the 2016 Bond Package E 4. Designate Delegate and Alternate to the 2018 TASB Delegate Assembly 105 5. Consider Board of Trustee Appointment to Pearland ISD Education Foundation Board 6. Consider New Public/Student Workshops for 2018-2019 108 11. Administrative Reports 12. Adjournment 39 62 69 78 85 92 103 106 If, during the course of the meeting covered by this Notice, the Board of Trustees should determine that a closed meeting or session of the Board of Trustees is required, then such closed meeting or session as authorized by the Texas Open Meetings Act, Texas Government Code Section 551.001 et seq., will be held by the School Board at the date, hour and place given in this Notice or as soon after the commencement of the meeting covered by this Notice as the School Board may conveniently meet in such closed meeting or session concerning any and all purposes permitted by the Act, including, but not limited to the following sections and purposes: Texas Government Code Section: 551.071 Private consultation with the Board's attorney 551.072 Discussing purchase, exchange, lease or value of real property 551.073 Discussing negotiated contracts for prospective gifts or donations 551.074 Discussing personnel or to hear complaints against personnel 551.076 Considering the deployment, specific occasions for, or implementation of, security personnel or devices

551.082 Considering discipline of a public school child, or complaint or charge against personnel 551.083 Considering the standards, guidelines, terms or conditions the Board will follow, or will instruct its representative to follow, in consultation with representative of employee groups 551.084 Excluding witnesses from a hearing Should any final action, final decision, or final vote be required in the opinion of the School Board with regard to any matter considered in such closed meeting or session, then the final action, final decision, or final vote shall be either: (a) (b) in the open meeting covered by the Notice upon the reconvening of the public meeting; or at a subsequent public meeting of the School Board upon notice thereof; as the School Board shall determine Certificate of Posting On the 7th day of June, 2018, this notice was made available to the public on the district website and an original copy of this notice was posted at the school district education support center at 11:00 a.m. on said date. Secretary to Board of Trustees

NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE The PEARLAND INDEPENDENT SCHOOL DISTRICT will hold a public meeting at 6:00pm, May 12, 2018 in the District Board Room located at 1928 N Main Street in Pearland, Texas 77581. The purpose of this meeting is to discuss the school district's budget that will determine the tax rate that will be adopted. Public participation in the discussion is invited. The tax rate that is ultimately adopted at this meeting or at a separate meeting at a later date may not exceed the proposed rate shown below unless the district publishes a revised notice containing the same information and comparisons set out below and holds another public meeting to discuss the revised notice. Maintenance Tax $1.040000/$100 (proposed rate for maintenance and operations) School Debt Service Tax Approved by Local Voters $0.375600/$100 (proposed rate to pay bonded indebtedness) Comparison of Proposed Budget with Last Year's Budget The applicable percentage increase or decrease (or difference) in the amount budgeted in the preceding fiscal year and the amount budgeted for the fiscal year that begins during the current tax year is indicated for each of the following expenditure categories. Maintenance and operations Debt Service -1.07 % decrease 6.76 % increase Total expenditures 0.05 % increase Total Appraised Value and Total Taxable Value (as calculated under Section 26.04, Tax Code) Preceding Tax Year Current Tax Year Total appraised value* of all property $10,051,668,042 $9,671,728,474 Total appraised value* of new property** $194,004,526 $181,453,546 Total taxable value*** of all property $7,794,181,766 $8,113,211,135 Total taxable value*** of new property** $184,653,322 $145,902,438 *Appraised value is the amount shown on the appraisal roll and defined by Section 1.04(8), Tax Code. ** "New property" is defined by Section 26.012(17), Tax Code. *** "Taxable value" is defined by Section 1.04(10), Tax Code. *Outstanding principal. Bonded Indebtedness Total amount of outstanding and unpaid bonded indebtedness* $467,580,000 Comparison of Proposed Rates with Last Year's Rates Maintenance & Operations Interest & Sinking Fund* Total Local Revenue Per Student Last Year's Rate $1.040000 $0.375600* $1.415600 $5,044 $3,966 Rate to Maintain Same Level of Maintenance & Operations Revenue & Pay Debt Service $1.137050 $0.442990* $1.580040 $5,366 $3,874 Proposed Rate $1.040000 $0.375600* $1.415600 $5,194 $3,749 *The Interest & Sinking Fund tax revenue is used to pay for bonded indebtedness on construction, equipment, or both. The bonds, and the tax rate necessary to pay those bonds, were approved by the voters of this district. Comparison of Proposed Levy with Last Year's Levy on Average Residence Last Year This Year Average Market Value of Residences $228,675 $232,406 Average Taxable Value of Residences $188,824 $196,795 Last Year's Rate Versus Proposed Rate per $100 Value $1.415600 $1.415600 Taxes Due on Average Residence $2,672.99 $2,785.83 Increase (Decrease) in Taxes $112.84 State Revenue Per Student Under state law, the dollar amount of school taxes imposed on the residence homestead of a person 65 years of age or older or of the surviving spouse of such a person, if the surviving spouse was 55 years of age or older when the person died, may not be increased above the amount paid in the first year after the person turned 65, regardless of changes in tax rate or property value. Notice of Rollback Rate: The highest tax rate the district can adopt before requiring voter approval at an election is $1.4156. This election will be automatically held if the district adopts a rate in excess of the rollback rate of $1.4156. Fund Balances The following estimated balances will remain at the end of the current fiscal year and are not encumbered with or by a corresponding debt obligation, less estimated funds necessary for operating the district before receipt of the first state aid payment. Maintenance and Operations Fund Balance(s) $28,684,274 Interest & Sinking Fund Balance(s) $13,580,751 6

Independent School District 2018-2019 Proposed Annual Budget Pearland Independent School District 1928 N. Main St. Pearland, Texas 77581 www.pearlandisd.org 7

Pearland Independent School District Pearland, Texas 2018-2019 Proposed Annual Budget For Fiscal Year July 1, 2018 June 30, 2019 Issued by: Dr. John Kelly Superintendent Jorgannie Carter, CPA, RTSBA Chief Financial Officer Yvette Rogers Budget and Compliance Director 8

TABLE OF CONTENTS INTRODUCTORY SECTION Proposed Budget Summary... 1 District Officials & Administration... 14 FINANCIAL SECTION Summary of District Funds... 15 Combined Proposed Budget Summary... 16 General Operating Fund Statement of Revenues, Expenses and Changes in Fund Balance... 17 Comparison of Statement of Revenues, Expenses and Changes in Fund Balance... 18 Summary of Estimated Revenues... 19 Expenditures by Major Object... 20 Expenditures by Major Object within Function... 21-24 Debt Service Fund Statement of Revenues, Expenses and Changes in Fund Balance... 25 Food Service Special Revenue Fund Statement of Revenues, Expenses and Changes in Fund Balance... 26 9

Introductory Section 10

2018-2019 Proposed Budget Summary June 5, 2018 Members of the Board of Trustees Pearland Independent School District 1928 N. Main Pearland, TX 77581 Dear Trustees: We are pleased to submit the Pearland Independent School District s Proposed Annual Budget for fiscal year 2018-2019. This budget document seeks to improve the quality of information provided about the District s financial and operations plan. BUDGET OVERVIEW & HIGHLIGHTS Federal, state and local guidelines guide the budget development process. The overall priorities for the Pearland Independent School District are as follows: We will strategically and collaboratively manage all PISD resources and funding to maximize the educational outcomes for every student. We will provide technological opportunities to facilitate learning. We will engage students and parents through our diverse community s strengths, resources, and talents. We will capitalize on the resources and talents of our business community to increase collaboration and expand opportunities for students to gain real world experiences. We will develop a system where student learning will be measured through application and transference from one discipline to another. We will address (meet) the social and emotional needs of all students. This budget proposal seeks to achieve these goals. It includes a general pay increase of 3% for all staff and a starting teacher pay of $54,750, seeking to retain and recruit highly qualified staff. In addition, it adds personnel to increase the mental health services provided to our students. SUMMARY OF PROPOSED BUDGETS The District s fund structure is comprised of Governmental Funds, consisting of General Funds, Special Revenue Funds, Debt Service Funds, and Capital Projects Funds. It is important to note that the District approves annual budgets for the General Fund, Food Service Special Revenue Fund and Debt Service Fund. Special Revenue Funds 1 11

and Capital Projects Funds adopt project length budgets which do not correspond to the District s fiscal year end and are not subject to Board approval; hence, this budget does not include information on such funds. The following table presents a summary of total projected revenues and other financing sources and total proposed expenditures and other financing uses for all appropriated funds for fiscal year 2018 19. GENERAL FUND DEBT SERVICE FUND FOOD SERVICE FUND TOTAL APPROPRIATED FUNDS Revenues and Other Financing Sources $167,373,111 $30,937,316 $9,850,000 $208,160,427 Expenditures and Other Financing Uses 175,413,422 30,937,316 9,850,000 216,200,738 Excess/(Deficiency) of Revenues Over/(Under) Expenditures ($8,040,311) $0 $0 ($8,040,311) GENERAL OPERATING FUND In order to prepare the annual budget, the District develops projections for enrollment, property values, collection rates, state funding, and expenditure levels. In this summary, you will find the District s budgetary highlights which provide a general overview of the basis of our assumptions and projections for the coming 2018 19 fiscal year. Revenues for fiscal year 2018 19 are expected to increase by $1.6 million or 1% over 2017 18 amended revenues. Fiscal year 2018 19 proposed budget expenditures total $175.4 million; 0.5% below 2017 18 amended budget expenditures. Although proposed expenditures exceed projected revenues by $8 million, our budget is considered balanced because we are using a portion of our reserved fund balance to cover the deficit; the remaining fund balance will be sufficient to provide a minimum of two moths of operations. General Operating Fund Summary 2016 2017 ACTUAL 2017 2018 AMENDED BUDGET 2018 2019 PROPOSED BUDGET Revenues 168,773,473 165,771,124 167,373,111 Expenditures 165,665,699 176,306,943 175,413,422 Revenues Over/(Under) Expenditures 3,107,774 (10,535,819) (8,040,311) Other Financing Sources/(Uses) (1,985,039) 0 0 Net Change in Fund Balance 1,122,735 (10,535,819) (8,040,311) Fund Balance, Beginning 49,614,047 50,736,782 48,272,782 Fund Balance, Ending $50,736,782 $48,272,782 * $40,232,471 Projected Fund Balance We are projecting to end fiscal year 2018 19 with a fund balance of $40.2 million; $8 million or 16.7% decrease from projected 2017 18 ending fund balance. This represents an 84 day operating reserve; which is slightly lower than the 90 day operating fund balance that administration strives to maintain. 2 12

It is essential for school districts to maintain an adequate fund balance level to mitigate current and future risks, such as revenue shortfalls as we are experiencing this fiscal year, or unanticipated expenditures. The Government Finance Officers Association recommends that school districts maintain a fund balance level of no less than two months of regular general fund operating expenditures. Pearland ISD s projected 2018-19 general fund ending balance includes 2.75 months of expenditures and is in compliance with this recommendation. GENERAL OPERATING FUND EXPENDITURE LEVELS The proposed expenditures budget for fiscal year 2018-19 is $175,413,422; 85.8% of the budget is for salary and benefits while the remaining 14.2% is budgeted for contracted services, supplies and materials, capital outlay and other operating costs. PAYROLL EXPENDITURES Payroll expenditures for fiscal year 2018-19 comprise 85.8% of the general fund proposed budget. Total payroll is $150.5 million or 2% over the fiscal year 2017-18 amended payroll budget. The chart below portrays the breakdown of budgeted expenditures by object. 2018-19 Proposed Budget Breakdown Supplies & Materials 4.35% Payroll 85.83% Non-Payroll 14.17% Other Op. Costs 2.03% Contracted Services 7.58% Capital Outlay 0.22% The following list describes each object code: Payroll Costs (85.83%) includes salary and benefits for all District employees other than food service, teaching incentives, student tutorials, stipends, and any other employee-related cost. Contracted services (7.58%) consist of utilities (electricity, gas, water, telephone, etc.), school resource officers, copier leases, audit and legal services, etc. Supplies & Materials (4.35%) is comprised of general instructional supplies and resources, technology equipment (computers, servers, laptops, printers, carts, etc.), janitorial supplies, software licensing, fuel, etc. Other Operating Costs (2.03%) include property and casualty insurance, flood insurance, automobile insurance, liability insurance, employee and student travel, and other operating costs. Capital Outlay (0.22%) includes the cost to replace buses, large maintenance equipment and vehicles, furniture, and other capital items with a unit value at or above $5,000. 3 13

Staff Salary Increase The proposed budget includes a district-wide 3% general pay increase approved by the District s Board of Trustees during the May 22, 2018 board meeting. The increase totals $3.9 million plus related benefit costs. Employee Classification Salary Increase Teachers and Librarians $2,344,995 Administrative - Business & Operations 131,651 Administrative - Educational 680,057 Administrative Support 165,128 Instructional Support 137,003 Auxiliary 436,779 Total $3,895,613 Additional Personnel - In addition to the 3% general pay increase, the board approved the addition of eleven positions, including six counselors and special education personnel aimed at the mental health needs of students. The minimum salary for these positions total $771,195; however, the District budgeted $900,000 (to include benefits and additional pay for more experienced hires). POSITION CAMPUS/DEPARTMENT FTE Minimum Salary Student Support Counselors High Schools 4.0 $306,208 Student Support Counselors Junior High Schools 2.0 146,074 ARD Facilitator High Schools - Special Ed. 3.0 189,306 Licensed Spec School Psychology Administration - Special Ed. 1.0 68,683 School Nurse Dawson High Schools 1.0 60,924 11.0 $771,195 NON-PAYROLL EXPENDITURES Non-payroll expenditures were reduced from $28,765,216 for fiscal year 2017-18 to $24,863,319 for fiscal year 2018-19 or 14.2% in order to reduce the deficit caused by slowed growth in enrollment, a reduction in State funding and increased payroll costs to cover the 3% general pay increase and additional positions added. Campus and department budgets were reduced by 10% across the board and district-wide budgeted items were thoroughly analyzed and reduced. Campus Allocations Campus budget allocations were reduced by 10% for a total of $250,000 as follows: Campus Allocations Fiscal Year 2017-18 Fiscal Year 2018-19 Elementary Schools $99.00 $89.10 Middle Schools $99.00 $89.10 Junior High Schools $111.27 $100.14 PACE $126.60 $113.94 High Schools $143.00 $128.70 4 14

Matrix of Projected Expenditures by Function and Object - The District s projected budget is geared toward ensuring the continued success of our students and meeting the goals established by our Board of Trustees and Superintendent. The following matrix summarizes the 2018-2019 proposed budget expenditures at the functional level as well as by the object types described above. The District s payroll expenditures for direct student instruction (function 11) is projected at 65.26% of the total payroll budget. 6200 Contracted Services 6300 Supplies & Materials 6400 Other Op. Costs 6600 Capital Outlay Function/Object 6100 Payroll Total by Function Percent of Total 11 - Instruction 98,250,541 862,549 1,903,375 464,069 67,000 101,547,534 57.89% 12 - Instructional Res. and Media Svcs. 1,497,532 35,410 235,726 2,410-1,771,078 1.01% 13 - Curriculum and Staff Development 4,517,296 66,990 133,500 162,624-4,880,410 2.78% 21 - Instructional Leadership 2,116,863 31,247 202,686 50,480 2,401,276 1.37% 23 - School Leadership 11,073,761 26,100 200,361 100,980 11,401,202 6.50% 31 - Guidance, Couns. and Eval. Svcs. 6,572,540 28,470 108,487 19,255 6,728,752 3.84% 32 - Social Work Services 411,802 150,300 40,003 8,143-610,248 0.35% 33 - Health Services 1,547,685 5,080 31,658 10,355 1,594,778 0.91% 34 - Student Transportation 5,299,782 166,500 1,350,648 257,500 107,000 7,181,430 4.09% 36 - Extracurricular Activities 2,734,820 466,357 434,734 545,882-4,181,793 2.38% 41 - General Administration 3,679,129 435,687 171,225 272,884-4,558,925 2.60% 51 - Plant Maintenance and Ops. 10,626,756 7,881,567 1,362,442 1,605,924 145,000 21,621,689 12.33% 52 - Security and Monitoring Svcs. 56,811 1,926,276 87,000 4,250 5,000 2,079,337 1.19% 53 - Data Processing Services 2,153,581 428,574 1,368,871 52,040 59,900 4,062,966 2.32% 61 - Community Services 11,204-11,204 0.01% 95 - JJAEP Payments 53,672 53,672 0.03% 99 - Other Intergovernmental Charges 727,128 727,128 0.41% Total by Object 150,550,103 13,291,907 7,630,716 3,556,796 383,900 175,413,422 Percent of Total 85.83% 7.58% 4.35% 2.03% 0.22% 2018-2019 GENERAL OPERATING FUND REVENUES Revenue estimates are based upon a variety of demographic and tax information. Estimating revenue from the two major sources, state funding from the Foundation School Program (FSP) and local property taxes, are critical to the budget. The District estimates total General Operating Fund revenues of $167,373,111 for the 2018-19 fiscal year. The state sources of revenue that support the General Operating Fund budget represent 50.23% of all available sources of funding. Local sources of revenue constitute 48.51% and federal sources 1.26%. The recommended budget includes a total increase of $1.6 million or 1% over fiscal year 2017-18 amended revenue levels. The following table provides a comparison of revenues by source for the 2016-17 actual, 2017-18 amended and the 2018-19 proposed budget years. 2017-18 Amended Budget 2018-19 Proposed Budget Revenues 2016-17 Actual Percent Change Local Sources $74,821,454 $78,609,248 $81,190,400 3.3% State Sources 91,588,072 85,795,876 84,076,711-2.0% Federal Sources 2,363,947 1,366,000 2,106,000 54.2% Total $168,773,473 $165,771,124 $167,373,111 1.0% 5 15

LOCAL REVENUES Total revenues from local sources are projected to increase by 3.3%. Revenues from current year taxes are expected to increase by 2.8% from an amended $76,081,248 for fiscal year 2017-18 to a projected $78,232,400 for fiscal year 2018-19 due to an estimated increase in District s property values of 2.75% and a 98% tax collection rate. Prior year tax collections are projected at $800,000 and penalty and interest on past due taxes at $368,000. Earnings on investments is projected at $560,000 (an increase of $450,000 from amended revenues due to diversification of funds as well as rising interest rates) and other revenues including tuition and fees, rent, gate receipts, and other local sources are projected at $1,218,000. Tax Rate Based on the taxable value, the District must project the level of taxation that will generate adequate funds to maximize state aid and provide for funds to meet district obligations while keeping in mind the ability of local taxpayers to pay their taxes. As mandated in H.B. 1 in 2006-07, the general fund tax rate (Maintenance & Operations or M&O ) was first compressed from $1.50 to $1.33. The Board then approved using the additional $0.04 pennies available to balance the budget and the tax rate was set at $1.37 for 2006-07. In 2007-08, the tax rate was compressed to $1.04 as required by H.B. 1. During the budget workshops held in May, the Board of Trustees were advised that an increase of two cents to the M&O tax rate would produce an additional $5.5 million in local and state funding and was provided with the amount of additional revenue generated at various M&O rates. The Board of Trustees expressed no interest in raising the M&O tax rate for fiscal year 2018-19 at the May 22, 2018, board meeting but rather wait one more year to see if the legislature makes any changes to its funding elements to increase State aid. The general fund tax rate will remain at $1.04 for 2018-19; which is one of the lowest amongst Region 4 districts. The following table presents the District s historical tax rates since fiscal year 2006-2007. Rate Per $100 Valuation Historical Tax Rates $1.80 $1.60 $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 I&S $0.292 $0.387 $0.379 $0.379 $0.379 $0.379 $0.379 $0.375 $0.375 $0.375 $0.375 $0.375 M&O $1.3700 $1.0400 $1.0400 $1.0400 $1.0400 $1.0400 $1.0400 $1.0400 $1.0400 $1.0400 $1.0400 $1.0400 6 16

Taxable Property Values Property values impact both State and local revenue estimates since the revenue received from the State is dependent upon the amount that can be raised locally. The Harris County Appraisal District (HCAD) 2018 Certified Estimates are $188.8 million (a 2.41% increase over prior year values) and the Brazoria County Appraisal District s (BCAD) 2018 Certificate of Estimated Values for Pearland ISD is $7.9 billion (an increase of 3.99% over prior year values). Although this is good news on the wake of Harvey, the appraisal district estimates that the 12,000 county-wide protests will end up lowering this estimated value significantly. The 2018-19 proposed budget is being based off a 2.75% increase from the 2017 Tax Year, which is more conservative than the initial 3.95% combined estimated increase provided by BCAD and HCAD. The District estimates its property values to increase to a total of $8 billion for fiscal year 2018-19 (2018 tax year). The District projects moderate growth of 2.75% for the next several years beyond 2018-19. It is important to note that changes in property value do not have a huge impact on total revenue since increases in local revenue are offset by decreases in State revenue in the following year. Local Property Values - Last 10 Fiscal Years $8.50 $8.00 7.80 8.02 $7.50 7.24 $7.00 $6.50 $6.00 5.73 5.69 5.68 5.73 5.84 6.18 6.44 $5.50 $5.00 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19* STATE REVENUES The 2018-19 state revenue projections are based on an estimated average daily attendance (ADA) of 20,692 students. The District projects to receive a total of $77,118,684 in State Aid; which is comprised of $67,888,769 from the Foundation School Fund (FSF) and $9,229,915 from the Available School Fund (ASF). It is important to note that ASF funding is not received in addition to the funding making up the District s FSP state aid, but as a part of the funding making up that state aid. Although State funding formulas are rather complex, the breakdown below seeks to explain in simplistic detail the basic elements and standard calculations used by each component. The table below presents historical ADA and WADA projections. The spike to WADA during fiscal years 2017-18 and 2018-19 are due to an increased ADA reported for State Compensatory. Total enrollment was coded as Free and 7 17

Reduced during the months of September and October 2017 due to Texas Department of Agriculture reporting for Hurricane Harvey. 28,000 26,000 24,000 22,000 20,000 18,000 ADA & WADA - 10 Year History 24,892 23,719 24,212 22,773 21,790 21,958 21,246 20,200 19,597 19,136 18,698 18,344 17,825 17,320 25,422 26,038 26,091 20,596 20,640 20,692 16,000 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 ADA WADA Tier I State Aid Basic Allotment Tier I of the funding formula allots an amount per student ($5,140 for 2017-18 and 2018-19) to each school district based on average daily attendance (ADA) with additional weight given for special programs. From the total Tier I allotment, a deduction is made for the local district s share based on the individual district s property tax base multiplied by a constant tax levy of $1.00 (or the compressed rate if the compressed rate is not $1.00) per $100 of assessed taxable property value. The remainder represents the State s share of Tier I funding. Under this methodology, a district s wealth factors significantly into its share of state funding. The higher the wealth per student, the higher the proportional deduction from the Tier I total. The total cost of Tier I for 2018-19 is $144,052,185. With prior year (2017) State Certified Property Values of $7,550,037,471, the District s local share for Tier I funding is $75,500,375, with the remaining $68,551,810 share to be funded by the State. The following table compares the State and Local share of Tier I funding for the last three years. Tax Year 2015 2016 2017 Fiscal Year 2016-17 2017-18 2018-19 District Property Values $6,334,851,051 $7,037,231,349 $7,550,037,471 Total Cost of Tier I $140,419,076 $143,754,307 $144,052,185 Less: Local Share of Tier I 63,348,511 70,372,313 75,500,375 State Share of Tier I $77,070,565 $73,381,994 $68,551,810 8 18

The chart below illustrates how an increase in local revenues are causing a decrease to State funding. Millions $80 $75 $70 $65 $60 Tier I Revenues 2016-17 2017-18 2018-19 Local State Tier II State Aid Basic Program Enrichment Tier II of the formula rewards the tax effort of a district by guaranteeing that tax effort in the current year, beyond the required local share of Tier I, will yield a minimum amount of money per weighted student in average daily attendance (WADA). In Tier II, for the first six cents of tax above the compressed rate (referred to as golden pennies ), the State subsidizes tax receipts as needed to produce a guaranteed level of revenue per student per penny of property tax levy. The guaranteed yield for those golden pennies is $99.41 for 2017-18 and is increasing to $106.28 for 2018-19. The guaranteed yield on any additional pennies above the compressed rate plus six cents (up to the maximum rate of $1.17) is fixed at $31.95 for all years. The District s M&O rate of $1.04, which is four cents, or golden pennies, above the District s compressed rate of $1.00 will generate Tier II State Aid of $8,112,314 for fiscal year 2018-19. Staff Allotment The District also receives funding known as Additional State Aid for Staff Salary Increases. School districts receive $500 for each full-time employee ($250 for each part time employees) who is not an administrator or subject to the minimum salary schedule. For fiscal year 2018-19, the District projects to receive $454,560 of this State allotment. State Funding Summary - State formula funding is projected to decrease by $4,593,350 from 2017-18 to 2018-19. Minor increases in the Tier II yield are more than offset by the increase in the local fund assignment (due to increases in property values). The following table summarizes State aid. 2016-17 2017-18 2018-19 Tier I Share of State Funding $77,070,565 $73,381,994 $68,551,810 Tier II State Aid 5,883,995 7,915,624 8,112,314 Staff Allotment 449,661 414,416 454,560 Less: Available School Fund (7,884,019) (4,254,481) (9,229,915) Total Foundation School Fund $75,520,202 $77,457,553 $67,888,769 Foundation School Fund $75,520,202 $77,457,553 $67,888,769 Available School Fund 7,884,019 4,254,481 9,229,915 Total State Revenues $83,404,221 $81,712,034 $77,118,684 9 19

On-Behalf TRS Payments This revenue source is a non-cash transaction that the District is required to record in its books to account for the amount of retirement payments (contributions) made by the State on behalf of the District for all of its employees. The intent of this transaction is to account for the entire cost of providing school services in the State of Texas. For fiscal year 2018-19, the projected amount is $6,958,027 (offset by expenditures). State Funding Lag As required by a new indicator in the Financial Integrity Rating System of Texas (Schools FIRST), the state funding lag was discussed at the May 3, 2018 budget workshop. In short, prior year property values are used in the formulas to calculate State revenues causing a one year funding lag if the local revenue decreases in the year of the property value decline, the State does not recognize that decline until the subsequent year. Hypothetically, if the District s actual property values for tax year 2018 were to decrease, the District would receive decreased State funding during fiscal year 2018-19 (since it uses 2017 tax values in its calculations) and then the funding would increase for fiscal year 2019-20 (since it would use 2018 property values that experienced a decrease). FEDERAL SOURCES OF REVENUES The District projects a minor increase in federal sources of revenue for fiscal year 2018-19. Revenue sources are mainly comprised of Medicaid reimbursements (MAC) and School Health and Related Services (SHARS) reimbursements. Total federal revenues are projected at $2,106,000. STUDENT ENROLLMENT Student enrollment projections influence State revenue estimates, staffing decisions, per-pupil allocations, facility needs, debt issuance requirements and many other budgetary decisions. The District experienced fairly significant increases in enrollment during the last ten years; approximately 400-700 students per year. The 2017-18 budget was developed based on a 307 increase in enrollment; however, actual enrollment increase was 52 students or 0.25%. The following table provides a historic projected enrollment versus actual enrollment. 23,000 22,000 21,000 20,000 19,000 18,000 17,000 16,000 15,000 10-Year Enrollment Projection vs. Actual Enrollment 18,311 18,769 19,166 19,586 20,054 20,574 21,137 21,610 21,662 21,662 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 Actual Projected 10 20

The District s enrollment for school year 2018-2019 is projected to remain flat. District administration will continue to monitor enrollment on a regular basis to implement adjustments due to possible fluctuations. Future enrollment is projected to vary by +/- 0.25% each year. These enrollment fluctuations are attributable to large graduating classes and smaller incoming kindergarten class sizes as well as housing availability, house pricing for new families, and slowed rate of moving for families who no longer have children in school. The table below shows the number of graduating students versus incoming kindergarteners and the increasing gap. 1,700 1,600 1,500 1,400 1,300 1,200 1,100 1,000 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 Kindergarten Grade 12 LEGISLATIVE ISSUES We are now entering the second year of the biennium. The Legislature has not been in session during this budget development process so the formulas to determine State funding were in place prior to beginning the budget development process. House Bill 21 of the 85 th Texas Legislature, 1st Called Special Session (2017) created the Texas Commission on Public School Finance and charged the 13-member group to develop recommendations by December 31, 2018, to address issues related to the public school finance system, including (1) its purpose and the relationship between state and local funding in that system, (2) the appropriate levels of maintenance and operations and interest and sinking fund tax effort necessary to implement a system that complies with the requirements under the Texas Constitution, and (3) policy changes to the finance system necessary to adjust for student demographics and the geographic diversity of the state. Governor Abbott s goals for the Commission are to (1) change our defective structure of school finance, (2) to create a system that fosters innovation to modernize our education system for the next generation and (3) to explore alternatives to the burdensome and inefficient property tax upon which our system far too heavily relies. So far, the Commission s consensus is that while Texas is booming economically, the revenue available for public education (and other publicly financed programs and services) is limited and generating additional revenue will be challenging. They have also discussed general revenue being the key source of education funding. For education expenses specifically, the Foundation School Program sources 89% of its revenue from general revenue and 11% from occupation taxes. Most of the general revenue is derived from sales tax revenue, accounting for ⅔ of it. 11 21

Although sales tax revenues have been up in recent months, the State has already dedicated these funds to other programs, including Medicaid, to transfer money back to HHSC that had been used to fund TRS and TEA, and Harvey relief for affected areas. In addition, there are known general revenue dedications for the next biennium, such as the State Highway Fund, the reduction on sales tax on internet services (the Internet Tax Freedom Act will prohibit such a tax beginning in 2020), and shortfalls faced by the Texas Guaranteed Tuition Plan. The pressure to fund the education system is unfortunately falling on property taxpayers, whose property tax dollars fund the other source of education funding: local M&O and I&S tax revenue. DEBT SERVICE FUND Fiscal year 2018-19 Debt Service Fund revenues are projected at $29.1 million, a slight increase of $152,000 over estimated 2017-18 revenues primarily due to an increase in local property taxes offset by a decrease in projected State funding. Local sources of revenue for 2018-19 comprise 99% of debt service revenues and include property tax collections as well as earnings on investments. The expenditures budget is increasing to meet debt service requirements from the partial issuance of the $220 million 2016 Bond during July 2017 and the remaining sale slated for February 2019. The 2018-19 proposed debt service budget is balanced as shown below. 2016-2017 ACTUAL 2017-2018 AMENDED BUDGET 2018-2019 PROPOSED BUDGET Revenues 29,347,541 28,985,466 29,137,316 Expenditures 26,943,433 29,369,750 30,937,316 Revenues Over/(Under) Expenditures 2,404,108 (384,284) (1,800,000) Other Financing Sources/(Uses) (98,760) 3,224,284 1,800,000 Net Change in Fund Balance 2,305,348 2,840,000 0 Fund Balance, Beginning 16,847,686 19,153,034 21,993,034 Fund Balance, Ending $19,153,034 $21,993,034 $21,993,034 FOOD SERVICE SPECIAL REVENUE FUND The 2018-19 Food Service Special Revenue Fund budget is balanced with revenues equaling expenditures of $9,850,000. Revenues and expenditures are projected to increase by $85,800 over the amended 2017-18 budget. Local revenue consists of 53.1% of all revenue sources and are generated primarily from student and staff payments for meals. Implementation of new programs, scheduling, and student demographics play a large role in the determination of meal revenues. State revenue comprises 2.2% of total revenues and is generated from School Lunch Matching and TRS on behalf (offset by expenditures). Federal revenue makes up 44.7% of revenues and is received from the U.S. Department of Agriculture under the National School Lunch Program, the School Breakfast Program and the Food Distribution Program. 12 22

2016-2017 ACTUAL 2017-2018 AMENDED BUDGET 2018-2019 PROPOSED BUDGET Revenues 9,288,890 9,764,200 9,850,000 Expenditures 8,894,463 9,764,200 9,850,000 Revenues Over/(Under) Expenditures 394,427 0 0 Other Financing Sources/(Uses) 0 0 Net Change in Fund Balance 394,427 0 0 Fund Balance, Beginning 2,147,488 2,541,915 2,541,915 Fund Balance, Ending $2,541,915 $2,541,915 $2,541,915 FINAL COMMENTS Budget Overview The preparation of the District s 2018-19 proposed budget is a coordination of many efforts from campuses, departments, administration, and the Business Office. This process began in November 2017 by studying trends and projecting enrollment as it is the main driving force of our budget. During January 2018, the Business Office kicked off the site-based decision budget process at a meeting held with all campus and department administrators in which they received budget direction and individual allocations. After the budgets were submitted, numerous meetings were held in March and April with each department to review their individual programs, budgets, requests for additional funds and expenditure trends. Two budget workshops were held with the Board during the month of May and salary decisions were made at the May 22, 2018 board meeting. As discussed during the budget workshops held in May, fiscal year 2017-2018 has brought several challenges (including Hurricane Harvey and lower than expected enrollment) for which the District has been able to cope and adjust thanks to the accumulation of a healthy fund balance. Fiscal year 2018-19 will be an even more difficult year as enrollment is not expected to increase and State funding will diminish even further due to growth in local property values. Closing Remarks The 2018-19 budget was developed according to the goals and guidance of the Board of Trustees and the Superintendent. Resources were allocated to meet these goals in an effort to continue being one of the best school districts in Texas. We are proud of our District and ready to adapt to the challenges of the upcoming fiscal. We commend our school board for their commitment in maintaining our mission of preparing students to perform at their highest potential and produce global citizens of tomorrow while ensuring a safe and secure environment for all students and staff. Pearland ISD continues to receive statewide acclaim for its combination of high student achievement and low per student costs. In May 2018, Pearland ISD was cited as one of only 24 public school districts in Texas to receive a 5 Star rating from Texas Smart Schools for this combination of low spending and high achievement. We give special thanks to the Human Resources and Technology departments for assisting us in providing the information and reports necessary to prepare this budget. And lastly, we thank the Budget Team that prepared the wealth of information provided to you during the budget workshops as well as this report which seeks to increase our financial transparency approach to budgeting. The information contained in this report strives to comply with the requirements set forth by the Government Finance Officers Association (GFOA) and Association of School Business Officials (ASBO) budget award programs. 13 23

PEARLAND INDEPENDENT SCHOOL DISTRICT BOARD OF TRUSTEES AND ADMINISTRATION BOARD OF TRUSTEES Rebecca Decker, President Charles Gooden Jr., Vice President Jeff Barry, Secretary Lance Botkin, Member Crystal Carbone, Member Mikael Floyd, Member Sean Murphy, Member ADMINISTRATION Dr. John Kelly, Superintendent of Schools Nanette Weimer, Deputy Superintendent Jorgannie Carter, Chief Financial Officer Cary Partin, Senior Assistant Superintendent for Support Services Sonia Serrano, Senior Assistant Superintendent for Intermediate Education Dr. Brenda Waters, Senior Assistant Superintendent for Elementary Education Dr. Nyla Watson, Senior Assistant Superintendent of Instructional Programs David Moody, Assistant Superintendent for Human Resource Services Kim Hocott, Executive Director of Communications Tanya Dawson, General Counsel Greg Bartay, Chief Technology Officer Dr. Lisa Nixon, Executive Director of Special Programs Don Tillis, Director of Facilities and Planning 14 24

Financial Section 25

SUMMARY OF DISTRICT FUNDS Governmental Fund Types Governmental fund types for Texas school districts consist of four governmental fund groups (General, Special Revenue, Capital Projects and Debt Service) that account for the acquisition, use and balances of expendable financial resources and related liabilities as required by law or rule. These funds follow the modified accrual basis of accounting method. Under this method, revenues are recognized when they become both measurable and available to finance expenditures of the current period. Expenditures are recognized when the related fund liability is incurred. The following are the District s governmental funds: General Fund The general fund typically serves as the chief operating fund of a government. The general fund is used to account for all financial resources except those required to be accounted for in another fund. Special Revenue Fund A governmental fund type used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. Debt Service Fund Governmental fund type used to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest. Capital Projects Fund Fund type used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds and trust funds.) The District is required to approve annual budgets for the General Operating Fund, the Debt Service Fund and the Food Service Special Revenue Fund for which information is included in this section. Special Revenue Funds and Capital Projects Funds adopt project-length budgets which do not correspond to the District s fiscal year and are nor subject to Board approval. 15 26

PEARLAND INDEPENDENT SCHOOL DISTRICT COMBINED PROPOSED BUDGET SUMMARY GENERAL OPERATING FUND, DEBTS SERVICE FUND, AND FOOD SERVICE SPECIAL REVENUE FUND FOR THE FISCAL YEAR ENDING JUNE 30, 2019 GENERAL FUND DEBT SERVICE FUND FOOD SERVICE FUND 2018 2019 TOTAL Revenues 5700 Local and Intermediate Sources $81,190,400 $28,868,932 $5,232,000 $115,291,332 5800 State Program Revenue 84,076,711 268,384 218,000 84,563,095 5900 Federal Program Revenue 2,106,000 0 4,400,000 6,506,000 Total Revenues 167,373,111 29,137,316 9,850,000 206,360,427 Expenditures 11 Instruction 101,547,534 101,547,534 12 Instructional Res. & Media Svcs. 1,771,078 1,771,078 13 Curriculum & Staff Development 4,880,410 4,880,410 21 Instructional Leadership 2,401,276 2,401,276 23 School Leadership 11,401,202 11,401,202 31 Guidance & Counseling 6,728,752 6,728,752 32 Social Work Services 610,248 610,248 33 Health Services 1,594,778 1,594,778 34 Student Transportation 7,181,430 7,181,430 35 Food Service 9,850,000 9,850,000 36 Extra Curricular Activities 4,181,793 4,181,793 41 General Administration 4,558,925 4,558,925 51 Plant Maintenance & Operations 21,621,689 21,621,689 52 Security & Monitoring Services 2,079,337 2,079,337 53 Data Processing Services 4,062,966 4,062,966 61 Community Service 11,204 11,204 71 Debt Service 30,937,316 30,937,316 95 Pymt. to Juvenile Justice Alt. Ed. 53,672 53,672 99 Other Intergovernmental Charges 727,128 727,128 Total Expenditures 175,413,422 30,937,316 9,850,000 216,200,738 Revenues Over/(Under) Expenditures (8,040,311) (1,800,000) 0 (9,840,311) Other Financing Sources/(Uses) 0 1,800,000 1,800,000 Net Change in Fund Balance (8,040,311) 0 0 (8,040,311) Fund Balance, Beginning 48,272,782 21,993,034 2,541,915 72,807,731 Fund Balance, Ending $40,232,471 $21,993,034 $2,541,915 $64,767,420 16 27

28 PEARLAND INDEPENDENT SCHOOL DISTRICT STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE GENERAL OPERATING FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2019, WITH COMPARATIVE DATA FOR PRIOR YEARS 2016-2017 ACTUAL 2017-2018 AMENDED BUDGET 2018-2019 PROPOSED BUDGET Revenues 5700 Local and Intermediate Sources $74,821,454 $78,609,248 $81,190,400 5800 State Program Revenue 91,588,072 85,795,876 84,076,711 5900 Federal Program Revenue 2,363,947 1,366,000 2,106,000 Total Revenues 168,773,473 165,771,124 167,373,111 Expenditures 11 Instruction 97,446,045 100,903,746 101,547,534 12 Instructional Res. & Media Svcs. 1,714,034 1,840,093 1,771,078 13 Curriculum & Staff Development 4,674,984 5,089,455 4,880,410 21 Instructional Leadership 1,996,364 2,210,793 2,401,276 23 School Leadership 10,477,348 11,273,647 11,401,202 31 Guidance & Counseling 5,541,739 5,684,013 6,728,752 32 Social Work Services 530,827 606,566 610,248 33 Health Services 1,418,337 1,489,665 1,594,778 34 Student Transportation 6,807,783 7,982,276 7,181,430 36 Extra-Curricular Activities 3,969,913 4,532,781 4,181,793 41 General Administration 4,265,087 4,736,375 4,558,925 51 Plant Maintenance & Operations 20,294,006 22,557,528 21,621,689 52 Security & Monitoring Services 1,824,948 2,118,163 2,079,337 53 Data Processing Services 4,048,916 4,466,895 4,062,966 61 Community Service 10,453 12,856 11,204 95 Pymt. to Juvenile Justice Alt. Education 17,600 123,672 53,672 99 Other Intergovernmental Charges 627,315 678,420 727,128 Total Expenditures 165,665,699 176,306,943 175,413,422 Revenues Over/(Under) Expenditures 3,107,774 (10,535,819) (8,040,311) Other Financing Sources/(Uses) (1,985,039) 0 0 Net Change in Fund Balance 1,122,735 (10,535,819) (8,040,311) Fund Balance, Beginning 49,614,047 50,736,782 48,272,782 Fund Balance, Ending $50,736,782 $48,272,782 * $40,232,471 *Note - Although fiscal year 2017-2018 amended budget shows a deficit of $10.5 million, it is currently estimated to end with a $2.5 million deficit due to higher than anticipated revenues and cost savings. 17

PEARLAND INDEPENDENT SCHOOL DISTRICT COMPARISON OF STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE GENERAL OPERATING FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2018 JUNE 30, 2019 (BUDGET) 2017 2018 AMENDED BUDGET 2018 2019 PROPOSED BUDGET PROPOSED BUDGET VARIANCE PERCENT VARIANCE Revenues 5700 Local and Intermediate Sources $78,609,248 $81,190,400 $2,581,152 3.3% 5800 State Program Revenue 85,795,876 84,076,711 (1,719,165) 2.0% 5900 Federal Program Revenue 1,366,000 2,106,000 740,000 54.2% Total Revenues 165,771,124 167,373,111 1,601,987 1.0% Expenditures 11 Instruction 100,903,746 101,547,534 643,788 0.6% 12 Inst. Resources, Media Svcs. 1,840,093 1,771,078 (69,015) 3.8% 13 Curriculum & Staff Development 5,089,455 4,880,410 (209,045) 4.1% 21 Instructional Leadership 2,210,793 2,401,276 190,483 8.6% 23 School Leadership 11,273,647 11,401,202 127,555 1.1% 31 Guidance & Counseling 5,684,013 6,728,752 1,044,739 18.4% 32 Social Work Services 606,566 610,248 3,682 0.6% 33 Health Services 1,489,665 1,594,778 105,113 7.1% 34 Student Transportation 7,982,276 7,181,430 (800,846) 10.0% 36 Extra Curricular Activities 4,532,781 4,181,793 (350,988) 7.7% 41 General Administration 4,736,375 4,558,925 (177,450) 3.7% 51 Plant Maintenance & Operations 22,557,528 21,621,689 (935,839) 4.1% 52 Security & Monitoring Services 2,118,163 2,079,337 (38,826) 1.8% 53 Data Processing Services 4,466,895 4,062,966 (403,929) 9.0% 61 Community Service 12,856 11,204 (1,652) 12.9% 95 Payment to JJAEP 123,672 53,672 (70,000) 56.6% 99 Other Intergovernmental Charges 678,420 727,128 48,708 7.2% Total Expenditures 176,306,943 175,413,422 (893,521) 0.5% Revenues Over/(Under) Expenditures (10,535,819) (8,040,311) Other Financing Sources/(Uses) 0 0 0 Net Change in Fund Balance (10,535,819) (8,040,311) Fund Balance, Beginning 50,736,782 48,272,782 Fund Balance, Ending $48,272,782 * $40,232,471 ($8,040,311) 16.7% *Note Although fiscal year 2017 2018 amended budget shows a deficit of $10.5 million, it is currently estimated to end with a $2.5 million deficit due to higher than anticipated revenues and cost savings. 18 29

30 PEARLAND INDEPENDENT SCHOOL DISTRICT ESTIMATED REVENUES GENERAL OPERATING FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2019, WITH COMPARATIVE DATA FOR PRIOR YEARS 2016-2017 ACTUAL 2017-2018 AMENDED BUDGET 2018-2019 PROPOSED BUDGET Local Sources Current Year Taxes $71,693,061 $76,081,248 $78,232,400 Delinquent Taxes, Penalty & Interest 1,161,344 1,080,000 1,180,000 Investment Earnings 250,484 110,000 560,000 Miscellaneous Local Revenue 1,493,349 1,338,000 1,218,000 Total Local Sources 74,598,238 78,609,248 81,190,400 State Sources Foundation School Fund 84,989,975 78,861,105 77,118,684 Instructional Res. & Media Svcs. 6,573,277 6,911,546 6,958,027 Other State Sources 24,820 23,225 - Total State Soures 91,588,072 85,795,876 84,076,711 Federal Sources Miscellaneous Federal Sources 2,363,947 1,366,000 2,106,000 Total Revenues $168,550,257 $165,771,124 $167,373,111 19

PEARLAND INDEPENDENT SCHOOL DISTRICT EXPENDITURES BY MAJOR OBJECT GENERAL OPERATING FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2019, WITH COMPARATIVE DATA FOR PRIOR YEARS 2016 2017 ACTUAL 2017 2018 AMENDED BUDGET 2018 2019 PROPOSED BUDGET 6100 Payroll $140,865,939 $147,541,727 $150,550,103 6200 Contracted Services 13,168,945 14,331,259 13,291,907 6300 Supplies and Materials 7,386,563 8,747,217 7,630,716 6400 Other Operating Expenses 3,227,895 4,365,565 3,556,796 6600 Capital Outlay 1,011,906 1,321,174 383,900 Total Expenditures $165,661,248 $176,306,943 $175,413,422 20 31

PEARLAND INDEPENDENT SCHOOL DISTRICT EXPENDITURES BY MAJOR OBJECT WITHIN FUNCTION GENERAL OPERATING FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2019, WITH COMPARATIVE DATA FOR PRIOR YEARS 2016-2017 ACTUAL 2017-2018 AMENDED BUDGET 2018-2019 PROPOSED BUDGET 11 - Instruction 6100 Payroll $92,838,199 $96,823,780 $98,250,541 6200 Contracted Services 849,225 1,146,039 862,549 6300 Supplies and Materials 3,296,617 2,296,470 1,903,375 6400 Other Operating Expenses 397,500 562,457 464,069 6600 Capital Outlay 60,055 75,000 67,000 Function 11 Total 97,441,595 100,899,211 101,547,534 12 - Instructional Resources, Media Services 6100 Payroll 1,443,305 1,567,109 1,497,532 6200 Contracted Services 25,594 35,954 35,410 6300 Supplies and Materials 243,023 234,430 235,726 6400 Other Operating Expenses 2,112 2,600 2,410 Function 12 Total 1,714,034 1,840,093 1,771,078 13 - Curriculum & Staff Development 6100 Payroll 4,351,738 4,601,505 4,517,296 6200 Contracted Services 68,273 148,360 66,990 6300 Supplies and Materials 84,389 133,435 133,500 6400 Other Operating Expenses 170,583 206,155 162,624 Function 13 Total 4,674,984 5,089,455 4,880,410 21 - Instructional Leadership 6100 Payroll 1,785,519 1,945,451 2,116,863 6200 Contracted Services 21,808 30,454 31,247 6300 Supplies and Materials 151,087 183,776 202,686 6400 Other Operating Expenses 37,950 51,112 50,480 Function 21 Total 1,996,364 2,210,793 2,401,276 23 - School Leadership 6100 Payroll 10,150,743 10,911,172 11,073,761 6200 Contracted Services 21,553 20,390 26,100 6300 Supplies and Materials 225,419 227,360 200,361 6400 Other Operating Expenses 79,632 114,725 100,980 Function 23 Total 10,477,348 11,273,647 11,401,202 21 32

PEARLAND INDEPENDENT SCHOOL DISTRICT EXPENDITURES BY MAJOR OBJECT WITHIN FUNCTION (CONTINUED) GENERAL OPERATING FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2019, WITH COMPARATIVE DATA FOR PRIOR YEARS 2016-2017 ACTUAL 2017-2018 AMENDED BUDGET 2018-2019 PROPOSED BUDGET 31 - Guidance & Counseling 6100 Payroll 5,320,537 5,496,360 6,572,540 6200 Contracted Services 90,053 48,728 28,470 6300 Supplies and Materials 114,692 119,920 108,487 6400 Other Operating Expenses 16,457 19,005 19,255 Function 31 Total 5,541,739 5,684,013 6,728,752 32 - Social Work Services 6100 Payroll 395,859 406,626 411,802 6200 Contracted Services 120,013 150,300 150,300 6300 Supplies and Materials 5,395 40,897 40,003 6400 Other Operating Expenses 9,559 8,743 8,143 Function 32 Total 530,827 606,566 610,248 33 - Health Services 6100 Payroll 1,380,881 1,439,836 1,547,685 6200 Contracted Services 4,568 4,956 5,080 6300 Supplies and Materials 24,184 33,343 31,658 6400 Other Operating Expenses 8,703 11,530 10,355 Function 33 Total 1,418,337 1,489,665 1,594,778 34 - Student Transportation 6100 Payroll 5,141,028 5,388,558 5,299,782 6200 Contracted Services 179,187 115,500 166,500 6300 Supplies and Materials 479,158 1,449,948 1,350,648 6400 Other Operating Expenses 305,654 258,270 257,500 6600 Capital Outlay 702,756 770,000 107,000 Function 34 Total 6,807,783 7,982,276 7,181,430 36 - Extra-Curricular Activities 6100 Payroll 2,411,398 2,648,665 2,734,820 6200 Contracted Services 403,339 529,381 466,357 6300 Supplies and Materials 608,822 667,370 434,734 6400 Other Operating Expenses 546,354 687,365 545,882 Function 36 Total 3,969,913 4,532,781 4,181,793 22 33

PEARLAND INDEPENDENT SCHOOL DISTRICT EXPENDITURES BY MAJOR OBJECT WITHIN FUNCTION (CONTINUED) GENERAL OPERATING FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2019, WITH COMPARATIVE DATA FOR PRIOR YEARS 2016-2017 ACTUAL 2017-2018 AMENDED BUDGET 2018-2019 PROPOSED BUDGET 41 - General Administration 6100 Payroll 3,478,140 3,663,112 3,679,129 6200 Contracted Services 438,192 694,636 435,687 6300 Supplies and Materials 101,371 114,136 171,225 6400 Other Operating Expenses 247,385 264,491 272,884 Function 41 Total 4,265,087 4,736,375 4,558,925 51 - Plant Maintenance & Operations 6100 Payroll 10,063,709 10,394,266 10,626,756 6200 Contracted Services 7,099,386 8,015,129 7,881,567 6300 Supplies and Materials 1,580,898 1,632,035 1,362,442 6400 Other Operating Expenses 1,343,727 2,104,924 1,605,924 6600 Capital Outlay 206,286 411,174 145,000 Function 51 Total 20,294,006 22,557,528 21,621,689 52 - Security & Monitoring Services 6100 Payroll 89,433 83,097 56,811 6200 Contracted Services 1,681,158 1,934,486 1,926,276 6300 Supplies and Materials 52,357 91,080 87,000 6400 Other Operating Expenses 2,000 4,500 4,250 6600 Capital Outlay 0 5,000 5,000 Function 52 Total 1,824,948 2,118,163 2,079,337 53 - Data Processing Services 6100 Payroll 2,004,997 2,159,334 2,153,581 6200 Contracted Services 1,521,680 654,855 428,574 6300 Supplies and Materials 419,150 1,523,018 1,368,871 6400 Other Operating Expenses 60,280 69,688 52,040 6600 Capital Outlay 42,810 60,000 59,900 Function 53 Total 4,048,916 4,466,895 4,062,966 61 - Community Service 6100 Payroll 10,453 12,856 11,204 Function 61 Total 10,453 12,856 11,204 23 34

PEARLAND INDEPENDENT SCHOOL DISTRICT STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE DEBT SERVICE FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2019, WITH COMPARATIVE DATA FOR PRIOR YEARS 2016 2017 ACTUAL 2017 2018 AMENDED BUDGET 2018 2019 PROPOSED BUDGET Revenues 5700 Local and Intermediate Sources $26,386,290 $27,725,568 $28,868,932 5800 State Program Revenue 2,961,251 1,259,898 268,384 5900 Federal Program Revenue 0 0 0 Total Revenues 29,347,541 28,985,466 29,137,316 Expenditures 71 Debt Service 26,943,433 29,369,750 30,937,316 Total Expenditures 26,943,433 29,369,750 30,937,316 Revenues Over/(Under) Expenditures 2,404,108 (384,284) (1,800,000) Other Financing Sources/(Uses) (98,760) 3,224,284 1,800,000 Net Change in Fund Balance 2,305,348 2,840,000 0 Fund Balance, Beginning 16,847,686 19,153,034 21,993,034 Fund Balance, Ending $19,153,034 $21,993,034 $21,993,034 25 36

PEARLAND INDEPENDENT SCHOOL DISTRICT STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE FOOD SERVICE SPECIAL REVENUE FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2019, WITH COMPARATIVE DATA FOR PRIOR YEARS 2016-2017 ACTUAL 2017-2018 AMENDED BUDGET 2018-2019 PROPOSED BUDGET Revenues 5700 Local and Intermediate Sources $4,971,701 $5,394,500 $5,232,000 5800 State Program Revenue 209,116 205,000 218,000 5900 Federal Program Revenue 4,108,073 4,164,700 4,400,000 Total Revenues 9,288,890 9,764,200 9,850,000 Expenditures 35 Food Service 8,894,463 9,764,200 9,850,000 Total Expenditures 8,894,463 9,764,200 9,850,000 Revenues Over/(Under) Expenditures 394,427 0 0 Other Financing Sources/(Uses) 0 0 Net Change in Fund Balance 394,427 0 0 Fund Balance, Beginning 2,147,488 2,541,915 2,541,915 Fund Balance, Ending $2,541,915 $2,541,915 $2,541,915 26 37

Independent School District Virgil Gant Education Support Center 1928 N. Main St. Pearland, Texas 77581 Phone: 281.485.3203 Fax: 281.412.1306 www.pearlandisd.org 38

Board of Trustees Agenda Item Information Meeting Date June 12, 2018 Meeting Type Regular Meeting Special Meeting/Workshop Hearing Date Submitted: May 31, 2018 Agenda Placement Public Hearing Open Session Executive Session Recognition Administrative Report Consent Agenda Regular Agenda Information/Discussion Subject: Approve Minutes of the May 22, 2018 Regular Board Meeting and Special Board Meeting of May 3, 2018, May 10, 2018, and May 15, 2018 Executive Summary: Minutes for the May 22, 2018 Regular Board Meeting and Special Board Meeting of May 3, 2018, May 10, 2018, and May 15, 2018 are submitted for your review. Fiscal Impact: Cost: Recurring One-Time No Fiscal Impact Funding Source: General Fund Grant Funds Other Funds (Specify) Fiscal Year: Amendment Required Yes No Superintendent Recommendation: That the minutes for the May 22, 2018 Regular Board Meeting and Special Board Meeting of May 3, 2018, May 10, 2018, and May 15, 2018 be approved as presented. Department Submitting: Superintendent s Office Requested By: John P. Kelly, Ph.D. Cabinet Member s Approval: John Kelly, Ph.D. Board Approval Required: Yes No 39

Pearland Independent School District Training/Workshop of the Board of Trustees May 3, 2018 The Board of Trustees of the Pearland Independent School District conducted a training/workshop on Wednesday, May 3, 2018 at 3:30 p.m. in the Board Room of the Administrative Offices located at 1928 North Main Street, Pearland, Texas in accordance with Chapter 551 of the Government Code. Opening Establishment of a Quorum Members Absent Executive Council Present 1.0 After noting that a quorum was present, President Decker opened the training/workshop at 3:35 p.m. 2.0 President Rebecca Decker Vice-President Charles Gooden Jr. (arrived to the meeting at 3:45 pm) Secretary Jeff Barry Trustee Pam Boegler Trustee Sean Murphy Trustee Lance Botkin Trustee Mikael Floyd Superintendent Dr. John Kelly CFO Jorgannie Carter Senior Superintendent Cary Partin Senior Superintendent Dr. Nyla Watson Assistant Superintendent David Moody District administrators/staff and community members were also present. Overview of 2018-2019 Budget Workshop 3.0 - Property Values and Funding Lag (School FIRST Indicator): A new financial indicator requires school board members to discuss the district s property values and the funding lag at a board meeting taking place within 120 days of the District adopting its budget. The required information was presented by CFO Jorgannie Carter. Prior year property values are used in the formulas to calculate State revenues causing a one year funding lag a decrease in local revenues in the year of the property value decline is not recognized by the State until the subsequent year. CFO Carter presented information and training regarding the proposed 2018-2019 budget. A discussion followed with May 3, 2018 Special Board Meeting 40

Superintendent John Kelly and Assistant Superintendent David Moody also providing input. Mr. John Robuck, representing BOK Financial and the district s Financial Advisor in connection with Bond Issuance, provided input regarding the I&S tax rate necessary to service debt. Mr. Dan Martinez, Bond Counsel with Winstead PC, offered insight into the TRE process. Adjournment 4. 0 -The training/workshop adjourned at 5:38 pm. We affirm that these minutes are official, complete and correct. Rebecca Decker President Jeff Barry Secretary Date Minutes Approved Date Signed by Officers May 3, 2018 Special Board Meeting 41

Pearland Independent School District Training/Workshop of the Board of Trustees May 10, 2018 The Board of Trustees of the Pearland Independent School District conducted a training/workshop on Thursday, May 10, 2018 at 4:00 p.m. in the Board Room of the Administrative Offices located at 1928 North Main Street, Pearland, Texas in accordance with Chapter 551 of the Government Code. Opening Establishment of a Quorum Members Absent Executive Council Present 1.0 After noting that a quorum was present, President Decker opened the training/workshop at 4:10 p.m. 2.0 President Rebecca Decker Vice-President Charles Gooden Jr. Secretary Jeff Barry Trustee Pam Boegler Trustee Lance Botkin (arrived to the meeting at 4:33 pm) Trustee Mikael Floyd (arrived to the meeting at 4:25 pm) Trustee Sean Murphy All Present Superintendent Dr. John Kelly CFO Jorgannie Carter Senior Superintendent Cary Partin Senior Superintendent Dr. Nyla Watson Assistant Superintendent David Moody District administrators/staff and community members were also present. Overview of 2018-2019 Budget Workshop 3.0 - CFO Carter presented information and training regarding the proposed 2018-2019 budget. A discussion followed with Superintendent John Kelly and Assistant Superintendent David Moody also providing input. Mr. John Robuck, representing BOK Financial and the district s Financial Advisor in connection with Bond Issuance, provided input regarding the I&S tax rate necessary to service debt. Adjournment 4. 0 -The training/workshop adjourned at 6:10 pm. We affirm that these minutes are official, complete and correct. May 10, 2018 Special Board Meeting 42

Rebecca Decker President Jeff Barry Secretary Date Minutes Approved Date Signed by Officers May 10, 2018 Special Board Meeting 43

Pearland Independent School District Special Meeting of the Board of Trustees May 15, 2018 The Board of Trustees of the Pearland Independent School District met in regular session on Tuesday, May 15, 2018 at 8:30 a.m. in the Board Room of the Administrative Offices located at 1928 North Main Street, Pearland, Texas in accordance with Chapter 551 of the Government Code. Opening 1.0 President Decker opened the meeting at 8:30 a.m. Establishment of a Quorum 2.0 Trustee Rebecca Decker, President Trustee Charles Gooden, Jr., Vice-President Trustee Sean Murphy Members Absent Executive Council Present Recording Secretary Canvass Votes/Adopt Order Declaring Results of Election Trustee Jeff Barry, Secretary Trustee Pam Boegler Trustee Lance Botkin Trustee Mikael Floyd Superintendent Dr. John Kelly Bobbie Dawson 3.0 - After canvassing the election results a motion was made by Vice President Gooden Jr. and seconded by Trustee Murphy that the order declaring the results of the Trustee Election held May 5, 2018 electing Crystal L Carbone, Position Three and Sean P. Murphy, Position Four be adopted as amended to reflect totals provided by Brazoria County Election Division. Motion carried 3-0. FOR: President Decker, Vice President Gooden Jr. and Trustee Murphy ABSENT: Trustees Barry, Boegler, Botkin and Floyd Adjournment 4. 0 -The meeting adjourned at 8:31 a.m. We affirm that these minutes are official, complete and correct. May 15, 2018 Special Board Meeting 44

Rebecca Decker President Charles Gooden Jr. Vice-President Date Minutes Approved Date Signed by Officers May 15, 2018 Special Board Meeting 45

Pearland Independent School District Regular Meeting of the Board of Trustees May 22, 2018 The Board of Trustees of the Pearland Independent School District met in regular session on Tuesday, May 22, 2018 at 5:00 p.m. in the Board Room of the Administrative Offices located at 1928 North Main Street, Pearland, Texas in accordance with Chapter 551 of the Government Code. Opening Establishment of a Quorum 1.0 After noting that a quorum was present, President Decker opened the meeting at 5:04 p.m. 2.0 Trustee Rebecca Decker, President Trustee Charles Gooden Jr, Vice-President.(arrived to the meeting at 5:10 pm) Trustee Jeff Barry, Secretary Trustee Lance Botkin Trustee Pam Boegler. Trustee Mikael Floyd Trustee. Sean Murphy Members Absent Recognition of Outgoing Board Member Administering Oath of Office 3.0 The board of trustees and Dr. Kelly presented Trustee Pam Boegler with a plaque in appreciation for her dedication and service to the district. 3.0 - Ms. Dawson administered the oath of office to the newly elected board member Ms. Crystal Carbone and incumbent Mr. Sean Murphy. Ms. Carbone then formally began duties with the board at 5:10 p.m. Public Comment 4.0 Ms. Maylis Vachette, parent, spoke on safety, security and bullying. Mr. Andrew Miller, representing Keep Pearland Beautiful and as a parent, presented an update on KPB s involvement with Pearland ISD and the impact the programs have in the schools. He also spoke in support of the early school time survey. Ms. Lori Healy, parent and district PTA president, presented the year-end District PTA Council report. She also commented on the results of the early school start time survey and expressed gratitude to PHS for keeping her student safe. May 22, 2018 Regular Board Meeting 46

Ms. Kathleen Robinson, parent, addressed the early school start time survey, student safety, teacher/student interaction and teacher rights. Mr. Thomas Pfeiffer, parent, thanked the board and the district for the work they do and thanked the Pearland Police Department for lending their officers to the district for the remainder of the school year. He expressed thanks for school safety, the early school start time survey and he asked the board to consider allowing firearms on campus. He also appreciates the stance the district has taken regarding the transgender issue. Mr. Charles Buck Stevens, parent, expressed his support of the early start time survey and encouraged the board to act accordingly based on the survey results. Closed Session 5.0 President Decker reconvened the board in Closed Session at 5:45 p.m. in accordance with Section 551.001 A. Section 551.071 - Private Consultation with the Board's Attorney Regarding any Item Listed on the Agenda B. Section 551.072 Discussing purchase, exchange, lease or value of real property C. Section 551.074 - Personnel Discussion 1. Employment of Professional and Instructional Personnel 2. Review Resignations 3. Nominations for Board Officers D. Section 551.076 Considering the Deployment, Specific Occasions for, or Implementation of, Security Personnel or Devices E. 551.082 Consider Discipline of a Public School Child, or Complaint or Charge Against Personnel Superintendent Dr. John Kelly participated in closed session with board in regard to all items except 5.C.3. Assistant Superintendent David Moody participated in closed session with the board in regard to all items except 5.C.3. Open Session Executive Council Present 6.0 - The board reconvened in open session at 6:23 p.m. Superintendent Dr. John Kelly Chief Financial Officer Ms. Jorgannie Carter Deputy Superintendent Ms. Nan Weimer Senior Assistant Superintendent Mr. Cary Partin Senior Assistant Superintendent Ms. Sonia Serrano Senior Assistant Superintendent Dr. Brenda Waters Senior Assistant Superintendent Dr. Nyla Watson Assistant Superintendent Mr. David Moody May 22, 2018 Regular Board Meeting 47

Recording Secretary Introductory Remarks Pledge to American and Texas Flags Action on Closed Session Ms. Bobbie Dawson 8.0 President Decker led the Pledge of Allegiance to the American and Texas Flags. She asked for a moment of silence for the victims, families and staff of Santa Fe ISD. President Decker loves to see Pearland work together to build positive relationships and results for our students. 7.0 Personnel: A motion was made by Trustee Floyd and seconded by Trustee Botkin that the board accepts and approves the superintendent s recommendation for Employment of Personnel as presented Vice President Gooden Jr. stated he would recuse himself from voting due to his cousin being hired at Dawson High School. Motion carried 6-0 FOR: Trustees Carbone, Murphy, Barry, Floyd, Botkin and Decker RECUSED: Trustees Gooden Jr. A motion was made by Trustee Floyd and seconded by Trustee Botkin that the board accept as a slate of officers for the 2018-2019 elected year: President Trustee Rebecca Decker Vice-president Trustee Charles Gooden Jr Secretary Trustee Jeff Barry No other nominations were received. Motion carried 7-0. Dr. Kelly introduced Ms. Autumn Maddox newly hired AP at Dawson High School Board Recognition 9.0 - The board of trustees recognized the following Students: Dawson High School: HOSA State Winner and International Qualifier DECA State Winner/International Qualifiers Perfect ACT Score (two students) State VASE Gold ACE Mentorship Competition Start ProStart Competition Culinary Arts Management Team UIL Academic State Meet Pearland High School Skills USA State Competition DECA State Winner/International Winner ACE Mentorship Competition May 22, 2018 Regular Board Meeting 48

ACE Mentorship Competition and Michael G. Hyers Design Challenge Honorable Mention Turner Career and College High School Skills USA State Competition HOSA State Winner/International Qualifier ACE Mentorship Competition Michael G. Myers Design Challenge Honorable Mention PJH West Jr. VASE Platinum Medal Berry Miller JH Jr. VASE Platinum Medal Duke TIP Grand Recognition Rogers Middle School Jr. VASE Platinum Medal Alexander Middle School Jr. VASE Platinum Medal Sablatura Middle School Jr. VASE Platinum Medal COMMUNITY MEMBERS AND STAFF Pearland Lions Club Above and Beyond Continued Support of Pearland ISD Susan Paling, athletic director at Lutheran South Academy, presented Ben Pardo a Certificate of Appreciation for his assistance during Hurricane Harvey Board Member Activities Budget/Tax and Salary/Benefits for 2018-2019 10.0 No activities were shared. Regular Agenda 11.B.1 Dr. Kelly stated based on the training/workshops in May, the administration seeks approval for a 3% raise to employees for the 2018/19 school year. There are three ways to accomplish this goal: One way is to institute the cuts as included in the agenda, thereby reducing the use of fund balance during 2018-2019 with the hope that the funding situation will improve via state/local circumstances prior to the 2019-2020 school year. Another way is to seek voter permission to increase the M&O Tax rate through a tax ratification election (TRE) or through a one year temporary increase as allowed by law for Hurricane Harvey affected areas. During the May 10 workshop various salary options and their costs were presented. These included raises of 3%, 2%, and a combination of a raise and a mid-year (one-time) pay supplement depending on the size of the reserve fund at the mid-year point. May 22, 2018 Regular Board Meeting 49

Without an increase to the M&O Tax Rate, the total budget deficit for fiscal year 2018-19 is projected at approximately $5.5 million and $6.8 million based on a 2% or 3% salary increase; respectively. A discussion followed with the board s number one priority being to take care of our educators. Consensus of the board is to support the 3% raise; no immediate TRE; several members indicated they would be willing to discuss a TRE in 2019-2020; and no to the two cents increase for one year based on Hurricane Harvey affected areas. Based on feedback from individual board members, the first option (use of fund balance) appears preferred and a discussion/decision to hold a TRE would be delayed until 2019-2020. A motion was made by Vice President Gooden Jr. and seconded by Trustee Murphy that the board approve a 3% raise for employees effective the 2018-2019 school year. Motion carried 7-0. Public Meeting Date to Discuss Budget 11.B.3 Under the Truth-in-Taxation guidelines prepared by the Texas Comptroller s Office, school districts are required to have a meeting of the governing body to decide on a date to hold a public meeting to discuss the 2018-2019 budget and proposed tax rate. A motion was made by Secretary Barry and seconded by Vice-President Gooden Jr. that the board approves Tuesday, June 12, 2018 as the date to hold a public meeting to discuss the 2018-2019 budget and to publish the required notice with a proposed tax rate of $1.4156 per $100 valuation. Motion carried 7-0 Secretary Barry left the meeting at 7:40 pm. Administration Reports School Start Times 12.A - PISD conducted a School Start Time Survey in response to some community requests to investigate the possibility of changing start times for high school students. Eligible survey participants included one per Pearland ISD family (from 13,525 possible participants), students currently in the 8-12 th grades, and district employees. The survey window was April 17-May 17 th. There were a total of over 8,000 responses. Percentage results for preferences expressed were similar across the 3 different groups (parents, students and staff) - in favor of maintaining the current start times. May 22, 2018 Regular Board Meeting 50

Dr. Ellen Akers, director of testing and evaluation, presented an overview of the survey results. A very lengthy discussion followed. Participating in the discussion with the board were Dr. Akers and high school principals Mr. Palombo, Ms. Holt and Mr. Bouchard. Principals representing elementary, middle and junior high campuses were also present. The board took no action on the item but will continue to discuss through workshop settings. No change to school start times will be implemented for the 2018-2019 school year. Consent Agenda President Decker asked if members of the board would like to remove an item from the consent agenda. Trustee Carbone requested to pull Agenda Item 11.A.9 for discussion. A motion was made by Vice President Gooden Jr. and seconded by Trustee Botkin that the consent agenda consisting of items 11.A.1 11.A.8 and items 11.A.10 11.A.11 be approved as presented. Approval of Minutes Use of Current Signature Plate Policy Manual Update 110 Purchase of Furniture for TCCHS Computer Labs Purchase of Furniture for the Dawson HS Cafeteria Purchase of Dell Desktop Computers for TCCHS Computer Labs 11.A.1 That the minutes for the Regular Board Meeting held on April 10, 2018 be approved as presented. 11.A.2 That administration be authorized to use the current signature plate until one with the signatures of the new board officers can be obtained. 11.A.3 - That the board add, revise, or delete (LOCAL) policies as recommended by TASB Policy Service and according to the Instruction Sheet for TASB Localized Policy Manual Update 110. 11.A.4 That the board of trustees approve the utilization of NIPA/TCPN Contract #R141608 School Supplies with School Specialty for the purchase of furniture for the Turner High School computer labs in an amount not to exceed $82,103.91. 11.A.5 - That the board of trustees approve the utilization of NIPA/TCPN Contract #R141608 School Supplies with School Specialty for the purchase of furniture for the Dawson High School cafeteria in an amount not to exceed $112,008.75. 11.A.6 - That the board of trustees approve the utilization of DIR- TSO-3763 Dell Branded Manufacturer Hardware, Software and Related Services with Dell, Inc for the purchase of Dell desktop computers for the Turner High School computer labs in an amount not to exceed $102,757.50. May 22, 2018 Regular Board Meeting 51

Purchase of Dell OptiPlex Teacher Computers Purchase of Dell Interactive Short Throw Projectors Extension of Contract for Credit Recovery Courseware Extension of Contract for Workers Compensation Insurance Coverage 11.A.7 That the board of trustees approve the utilization of DIR contract DIR-TSO-3763 Dell Branded Manufacturer Hardware, Software, and Related Services with Dell for the purchase of 737 Dell OptiPlex 5250 AIO Computers in the total amount of $538,010 to support the bond teacher computer upgrade project. 11.A.8 That the board of trustees approve the utilization of DIR Contract DIR TSO-3763 Dell Branded Manufacturer Hardware, Software and Related Services for the purchase 711 Interactive Short Throw Projectors for a total amount of $908,288.28 to support the bond student projector upgrade project. 11.A.10 - That the Board of Trustees approve a contract extension of RFCSP 15-0507-15 for Credit Recovery Courseware with Edgenuity Inc, effective July 1, 2018 through June 30, 2019 in the amount of $114,600. 11.A.11 - That the Board of Trustees approve a one year contract extension with Texas Mutual Insurance Company through Frost Insurance Agency for Workers Compensation insurance coverage effective July 1, 2018 through June 30, 2019 for an estimated amount $605,554. Motion on the consent agenda as presented carried 5-2 - Trustee Floyd was not present in the boardroom when the vote was taken. ABSENT Secretary Barry The meeting recessed at 8:50 pm and reconvened at 8:59 pm Purchase of Security Cameras 11.A.9 Trustee Carbone pulled this item in light of the recent incident at Santa Fe ISD to bring public awareness to the community that the district is doing many things to keep the students safe. Questions presented by members of the board were answered by Dr. Kelly and Director of Bond Program Construction John Posch. A motion was made by Trustee Carbone and seconded by Trustee Botkin that the board of trustees approve the utilization of DIR contract DIR-TSO-3632 Hardware, Software and Related Services for Surveillance, Security and Monitoring with Preferred Technologies, LLC for the purchase of security cameras related to the 2016 bond program in an amount not to exceed $795,781.60. Motion carried 6-0 ABSENT Secretary Barry May 22, 2018 Regular Board Meeting 52

Additional Personnel Regular Agenda 11.B.2 Based on the need to address student mental health concerns, campus medical safety and increased special education caseloads, District administration recommends the approval of five Student Support Counselors, one Guidance Counselor, one School Nurse, three ARD Facilitators and one Licensed Specialist in School Psychology (LSSP). As stipulated by the board, the needs for additional mental health services and associated special education staff for students are paramount at present. Ms. Chenda Moore, coordinator for guidance and counseling responded to questions presented by members of the board. A motion was made by Trustee Murphy and seconded by Trustee Botkin that the board of trustees approve the recommendation of additional personnel for the 2018-2019 school year and subsequent years. Motion carried 6-0. ABSENT Secretary Barry Revisions to Local Policy CH and Resolution 11.B.4 - The District s purchasing department will begin utilizing an electronic bidding system that will allow us to save time and money in the preparation of bids and procurement solicitations, enhance our vendor collaboration, efficiently manage our suppliers, streamline the vendor registration process, automate supplier notification, increase supplier participation, and monitor supplier activity, amongst other benefits. This resolution sets forth the parameters for accepting electronic bids or proposals. The revised policy CH(LOCAL) creates procurement efficiencies by granting the Superintendent or designee the authority to award contracts resulting from procurement solicitations and exercise the option to execute contract renewals. The revised policy will benefit campuses and departments by having immediate access to multiple awarded vendors for small dollar purchases. Purchases over $75,000 will continue to require board approval before the transaction takes place per policy CH (LOCAL). A motion was made by Trustee Murphy and seconded by Trustee Floyd that the board of trustees approve the resolution establishing criteria for accepting electronic bids or proposals and the revised local policy CH. Motion carried 6-0 ABSENT Secretary Barry Administration Reports GPA Waiver and Other Assistance 12.B Included in the report presented to the board: New Elective Pass/Fail Option May 22, 2018 Regular Board Meeting 53

Additional Support and Opportunities Beginning in the 2018-2019 School Year Support and Opportunities Already in Place Explanation of Advanced Placement/Dual Credit Student Enrollment Data Campus Summaries of Advanced Placement/Dual Credit Student Enrollment Additional Information from Advanced Academics Deputy Superintendent Nan Weimer, Dawson HS Lead Counselor Kori Spruce and Director of Advanced Academics Margo Gigee answered questions presented by members of the board. A discussion followed. Quarterly Investment Report 12.C - A copy of the Quarterly Investment Report was included in the agenda in order to comply with Chapter 2256 of the Texas Government Code, which is commonly referred to as the Public Funds Investment Act. Ms. Carter responded to questions presented by the board. 2018 SHAC Report 12.D The Annual Student Health Advisory Council Report was included in the agenda for review. Dr. Nyla Watson responded to questions presented by members of the board. Trustee Floyd requested more student representation on the committee. Adjournment 13. 0 -The meeting adjourned at 10:12 p.m. We affirm that these minutes are official, complete and correct. Rebecca Decker President Jeff Barry Secretary Date Minutes Approved Date Signed by Officers May 22, 2018 Regular Board Meeting 54

Board of Trustees Agenda Item Information Meeting Date: June 12, 2018 Meeting Type Regular Meeting Special Meeting/Workshop Hearing Date Submitted: June 4, 2018 Agenda Placement Public Hearing Open Session Executive Session Recognition Administrative Report Consent Agenda Regular Agenda Information/Discussion Subject: Approve Budget Amendment Number Two Executive Summary: The purpose of this budget amendment is to increase revenues and make expenditure adjustments at the functional level for the General Fund. Additionally, a Food Service Fund amendment is proposed to decrease revenues by $194,500. General Fund (Revenues) The amendment to the general fund is to make adjustments to local, state and federal revenues. These adjustments net to an overall increase of $3,388,000 (see attached breakdown). Included in this amendment is an increase of $3.3 million in State revenue for State Compensatory Education funding as a result of submitting full enrollment as free and reduced for September to the Texas Department of Agriculture due to Hurricane Harvey. General Fund (Expenditures) The amendment to the general fund expenditures is to make adjustments within functions after eleven months of actual operations. The amendment does not add any additional appropriations to the budget of the General Fund. Food Service Fund (Revenues) The amendment to the Food Service Fund is to account for an overall decrease in revenues. A decrease in local food sales occurred due to the introduction of Mega-lunch at PHS (which offers students a one-hour block to eat lunch, have tutorials, or participate in club activities). Additionally, free breakfast and lunches were provided during September and October due to Hurricane Harvey. However, federal revenues increased as an offset to local revenues from Hurricane Harvey assistance. Fiscal Impact: Cost: Recurring One-Time No Fiscal Impact Funding Source: General Fund Grant Funds Other Funds (Specify) Food Service Fund Fiscal Year: Amendment Required? Yes No Superintendent s Recommendation: That the board approves Budget Amendment Number Two as presented. Department Submitting: Business Office Requested By: Jorgannie Carter Cabinet Member s Approval: Jorgannie Carter Board Approval Required: Yes No 55

PEARLAND INDEPENDENT SCHOOL DISTRICT BUDGET AMENDMENT No. 2 JUNE 12, 2018 The Business Office requests the Board of Trustees to approve the following budget amendment to the General Operating Fund: General Operating Increase/(Decrease) in Revenues: 5711 Local Current Year Tax Levy ($1,000,000) 5712 Local Prior Year Tax Levy $135,000 5742 Local Earnings from Investments $550,000 5811 State Available School Fund ($500,000) 5812 State Foundation School Fund $3,300,000 5929 Misc. Federal Indirect Costs $28,000 5931 Federal Sch. Health & Related Services $875,000 Total Net Increase/(Decrease) in Revenues $3,388,000 Increase/(Decrease) in Expenditures: 23 School Leadership $80,000 31 Guidance / Counseling $120,000 33 Health Services $40,000 51 Maintenance & Operations ($240,000) Total Net Increase/(Decrease) in Expenditures $0.00 56

PEARLAND INDEPENDENT SCHOOL DISTRICT BUDGET AMENDMENT No. 2 JUNE 12, 2018 The Business Office requests the Board of Trustees to approve the following budget amendment to the Food Service Fund: Food Service Increase/(Decrease) in Revenues 57XX Local Sources ($1,094,500) 59XX Federal Sources $900,000 Total Net Increase/(Decrease) in Revenues ($194,500) Impact on Fund Balance $ -0-, 57

Board of Trustees Agenda Item Information Meeting Date June 12, 2018 Meeting Type Regular Meeting Special Meeting/Workshop Hearing Date Submitted: May 10, 2018 Subject: Approve Revisions to Local Policy EHBB Agenda Placement Public Hearing Open Session Executive Session Recognition Administrative Report Consent Agenda Regular Agenda Information/Discussion Executive Summary: Revisions to EHBB local policy for the GT program are for the purpose of clarity in accordance with established district procedures. Fiscal Impact: Cost: Recurring One-Time No Fiscal Impact Funding Source: General Fund Grant Funds Other Funds (Specify) Fiscal Year: Amendment Required? Yes No Superintendent s Recommendation: That the board approve the revision of EHBB (LOCAL) as recommended by the Director of Advanced Academics and approved by the Superintendent. Department Submitting: Advanced Academics Cabinet Member s Approval: Cary Partin Requested By: Margo Gigee Board Approval Required: Yes No 58

Pearland ISD 020908 SPECIAL PROGRAMS GIFTED AND TALENTED STUDENTS EHBB (LOCAL) Nomination / Referral Screening and Identification Process Parental Consent Identification Criteria Assessments Selection Notification No Reassessment PROPOSED REVISIONS Students may be nominated/referred for the gifted and talented program at any time by teachers, counselors, parents, or other interested persons. The District shall provide assessment opportunities to complete the screening and identification process for nominated/referred students at least once per school year. The District shall obtain written or electronic parental consent before any special testing or individual assessment is conducted as part of the screening and identification process. All student information collected during the screening and identification process shall be an educational record, subject to the protections set out in policies at FL. The Board-approved program for the gifted and talented shall establish criteria to identify gifted and talented students. The criteria shall be specific to the state definition of gifted and talented and shall ensure the fair assessment of students with special needs, such as the culturally different, the economically disadvantaged, and students with disabilities. Data collected through both objective and subjective assessments shall be measured against the criteria approved by the Board to determine individual eligibility for the program. Assessment tools may include, but are not limited to, the following: achievement tests, intelligence tests, creativity tests, behavioral checklists completed by teachers and parents, student/parent conferences, and available student work products. A selection committee shall evaluate each nominated/referred student according to the established criteria and shall identify those students for whom placement in the gifted and talented program is the most appropriate educational setting. The committee shall be composed of at least three professional educators who have received training in the nature and needs of gifted students, as required by law, and shall be established for the District. The District shall provide written or electronic notification to parents of students who qualify for services through the District s gifted and talented program. Participation in any program or services provided for gifted students shall be voluntary, and the District shall obtain written permission from the parents before placing a student in a gifted program. The District shall not perform routine reassessments. EHBB(LOCAL)-X, proposed revisions 5.9.18 1 of 3 59

Pearland ISD 020908 SPECIAL PROGRAMS GIFTED AND TALENTED STUDENTS EHBB (LOCAL) Transfer Students Interdistrict Intradistrict Furloughs Exit Provisions Appeals When a student identified as gifted by a previous school district enrolls in the District, the selection committee shall review the student s records and follow the District s screening and identification process to determine if placement in the District s program for gifted and talented students is appropriate. The selection committee shall make a determination within six weeks of the student s enrollment in the District and shall base the decision on the transferred records and the District s screening and identification process and established criteria. [See FDD(LEGAL) for information regarding transfer students and the Interstate Compact on Educational Opportunities for Military Children] When a student identified as gifted by a previous school district enrolls in the District, the District shall place the student in the District s program for gifted and talented students. A student who transfers from one campus in the District to the same grade level at another District campus shall continue to receive services in the District s gifted and talented program. The District may place on a furlough any student who is unable to maintain satisfactory performance or whose educational needs are not being met within the structure of the gifted and talented program. A furlough may be initiated by the District, the parent, or the student. In accordance with administrative regulations, a furlough shall be granted for specified reasons and for a specified period of time. At the end of a furlough, the student may reenter the gifted program, be placed on another furlough, or be exited from the program. The District shall monitor student performance in the program. If at any time the selection committee determines it is in the best interest of the student and his or her educational needs, the committee may exit a student from the program. If a student or parent requests removal from the program, the selection committee shall meet with the parent and student before honoring the request. A parent or student may appeal any final decision of the selection committee regarding selection for or exit from the gifted program. Appeals shall be made first to the Level One GT appeals committee, composed of a member of the District s selection committee, a campus administrator, and a campus counselor or GT teacher. selection committee. Any subsequent appeals shall be made in accordance with FNG(LOCAL) beginning at Level Two. EHBB(LOCAL)-X, proposed revisions 5.9.18 2 of 3 60

Pearland ISD 020908 SPECIAL PROGRAMS GIFTED AND TALENTED STUDENTS EHBB (LOCAL) Program Evaluation Community Awareness The District shall annually evaluate the effectiveness of the District s gifted program, and the results of the evaluation shall be used to modify and update the District and campus improvement plans. The District shall include parents in the evaluation process and shall share the information with Board members, administrators, teachers, counselors, students in the gifted and talented program, and the community. The District shall ensure that information about the District s gifted and talented program is available to parents and community members and that they have an opportunity to develop an understanding of and support for the program. EHBB(LOCAL)-X, proposed revisions 5.9.18 3 of 3 61

Board of Trustees Agenda Item Information Meeting Date: June 12, 2018 Meeting Type Regular Meeting Special Meeting/Workshop Hearing Agenda Placement Public Hearing Open Session Executive Session Recognition Administrative Report Consent Agenda Regular Agenda Information/Discussion Date Submitted: June 4, 2018 Subject: Approve Ratification of Expenditures for the Utilization of Texas Education Agency (TEA) Proprietary Contract 2939 with The College Board for 2017-2018 Advanced Placement (AP) Examinations Executive Summary: The district utilized Texas Education Agency s proprietary contract with The College Board for Advanced Placement examinations in the amount of $436,094. The expectation is that 90 percent of enrolled students in Pearland ISD will take the AP exam and that most students will take multiple exams. Advanced Placement programs are part of the District s vision for World Class Schools. Contributions for examinations are paid with student contribution funds and district funds as follows: Student Share of Examination Fees $254,189 Pearland ISD Share of Examination Fees $181,905 Total Expenditures $436,094 This contract is in accordance with Texas Education Code 44.031 Purchasing Contracts. Fiscal Impact: Cost: Recurring One-Time No Fiscal Impact Funding Source: General Fund Grant Funds 410 IMA (Instructional Materials Allotment) Funds Fiscal Year: Amendment Required? Yes No Superintendent s Recommendation: That the board of trustees ratifies the utilization of Texas Education Agency s proprietary contract 2936 with The College Board for 2017-2018 Advanced Placement examination fees in the total amount of $436,094. Department Submitting: Purchasing - Enrique Kladis Requested By: Margo Gigee Cabinet Member s Approval: Jorgannie Carter Board Approval Required: Yes No 69

Board of Trustees Agenda Item Information Meeting Date June 12, 2018 Meeting Type Regular Meeting Special Meeting/Workshop Hearing Date Submitted: June 4, 2018 Agenda Placement Public Hearing Open Session Executive Session Recognition Administrative Report Consent Agenda Regular Agenda Information/Discussion Subject: Approve Contract Award RFP 18-0510-16 for Student Athletic Insurance Coverage and Catastrophic Student Athletic Coverage with Greater East Texas Insurance Associates. Executive Summary: The district received six proposals from vendors for the procurement of student athletic insurance coverage and catastrophic student athletic coverage. Based on the price and other evaluation criteria, administration is recommending Greater East Texas Insurance Associates as the vendor offering the best value to the district with an effective date of August 1, 2018 through July 31, 2019 in the amount of $77,824 with an option to renew annually up to four additional renewal years. The cost for this insurance coverage is funded by student participation fees. Students participating in athletics, cheerleading and drill teams pay a fee of $40 per individual with a maximum of $60 per family. Contract Summary: Recommended Award Term August 1, 2018 through July 31, 2019 Option to renew annually for up to four Contract Extensions additional years Annualized Estimated Expenditures $77,824 Guaranteed premium for two years, Please see the accompanying recap and evaluation of the proposals received. This contract is in accordance with Texas Education Code 44.031 Purchasing Contracts. Fiscal Impact: Cost: Recurring One-Time No Fiscal Impact Funding Source: General Fund Grant Funds Other Funds (Specify) Fiscal Year: Amendment Required? Yes No Superintendent s Recommendation: That the board of trustees approve contract award RFP 18-0510- 16 for Student Athletic Insurance Coverage and Catastrophic Student Athletic Coverage with Greater East Texas Insurance Associates in the amount of $77,824 for the period of August 1, 2018 through July 31, 2019. Department Submitting: Purchasing/Enrique Kladis Requested By: Ben Pardo Cabinet Member s Approval: Jorgannie Carter Board Approval Required: Yes No 78

PEARLAND ISD REQUEST FOR PROPOSAL #18-0510-16 STUDENT ATHLETIC INSURANCE COVERAGE AND CATASTROPHIC STUDENT ATHLETIC COVERAGE RECAP Proposal encircled with dark outline represents recommended proposal. COVERAGE DESCRIPTION Achieve Financial Group Dallas, TX Greater East Texas Insurance Associates Hearne, TX Health Special Risk, Inc. Carrolton, TX Student Insurance Plans Frisco, TX The Brokerage Store Shavano Park, TX Section I - Voluntary Coverage - 24 - Hour Term One Year X X X X Coverage Up to $25,000 X X X X Deductible None X X X Primary X X Full Assignment X PPO X X X X Other Premium 79 $195 premier $127 economy $80 $150 premier $98 economy $35 - $100 Extended dental $8 premier; $7 economy $105 no UIL coverage $195 with UIL coverage Section II - Voluntary Coverage - at School Term One Year X X X X Coverage up to $25,000 X X X X Deductible None X X X Primary X X Full Assignment X PPO X X X X Other Premium $93 premier $64 economy $30 $72 premier $49 economy $20 - $50 Extended dental premier & economy $7 $25 no UIL coverage $115 with UIL coverage Section III - Varsity Football Only Term One Year X X X X Coverage up to $25,000 X X X X Deductible None X X X Primary X X 1

PEARLAND ISD REQUEST FOR PROPOSAL #18-0510-16 STUDENT ATHLETIC INSURANCE COVERAGE AND CATASTROPHIC STUDENT ATHLETIC COVERAGE RECAP COVERAGE DESCRIPTION Achieve Financial Group Dallas, TX Greater East Texas Insurance Associates Hearne, TX Health Special Risk, Inc. Carrolton, TX Student Insurance Plans Frisco, TX The Brokerage Store Shavano Park, TX Full Assignment X PPO X X X X Other Premium $288 premier $187 economy $325 $247premier $161 economy $275 $325 Extended dental premier & economy $8 * No ACA Compliant plans Section IV - Student Health Plan available Renewable One Year Term X Coverage up to $100,000 Deductible None Premium N/A N/A N/A Varies - BCBS No Bid 80 Section V - Discount Prescription Card Does Member receive discounts on both generics and Name-Brand Prescriptions? Yes or No Yes Premium N/A N/A N/A Included N/A Section VI - Catastrophic Maximum Coverage $7.5 million $10 million $7.5 million $7.5 million $7.5 million 2-yr period to meet deductible X X X X Deductible $25,000 X X X X Benefits Payable for X X 10 years X Full Assignment X X X PPO X X X Other Premium $5,100 $4,324 $5,214 $3,931 $5,495 Cat only $2,480 Optional 2

PEARLAND ISD REQUEST FOR PROPOSAL #18-0510-16 STUDENT ATHLETIC INSURANCE COVERAGE AND CATASTROPHIC STUDENT ATHLETIC COVERAGE RECAP COVERAGE DESCRIPTION Achieve Financial Group Dallas, TX Greater East Texas Insurance Associates Hearne, TX Health Special Risk, Inc. Carrolton, TX Student Insurance Plans Frisco, TX The Brokerage Store Shavano Park, TX Section VII - Blanket Coverage - Interscholastic Sports & Activities per specifications herein Term One Year X X X X Coverage up to $25,000 X X X X Deductible None X X X Primary X Full Assignment X X X PPO X X X X Other 81 Premium $80,616 $73,500 Premier Plus Plan $77,000 Premier Plus Plan ( including PE/ Intramural) $84,700 Premier Plan $61,500 Premier Plan (including PE/ Intramural) $67,650 $79,000 Section VIII - Special Risk Term One Year X X Coverage up to $25,000 X X Deductible None X X Primary Full Assignment X X PPO X Other Premium Upon request Per request $75,050 Houston Plan $79,000 Value Plan $55,300 Star Plan Special Olympics $10 per participant Special Education Classes $4.25 per participant* Included $3 per person Section IX - HIPAA & FERPA Compliance Term One Year Coverage up to $25,000 Deductible None X X X 3

PEARLAND ISD REQUEST FOR PROPOSAL #18-0510-16 STUDENT ATHLETIC INSURANCE COVERAGE AND CATASTROPHIC STUDENT ATHLETIC COVERAGE RECAP COVERAGE DESCRIPTION Achieve Financial Group Dallas, TX Greater East Texas Insurance Associates Hearne, TX Health Special Risk, Inc. Carrolton, TX Student Insurance Plans Frisco, TX The Brokerage Store Shavano Park, TX Primary Full Assignment X PPO X Other Premium Included Included See deviations below Included Included 82 Deviations to Specifications No No *Special Risk premium could be reduced with confirmation of # of participants, ages, sport and dates. Policies and procedures are in place to comply with HIPAA and FERPA and any amendments to the Act as they become effective The Houstonian Plan was developed for the Houston market and is accepted all network providers listed when used. The Texas value plan is comparable to your existing plan. *Optional plans are the Texas Star and Texas Value 4

Pearland Independent School District RFCSP 18-0510-16 Student Athletic Insurance Coverage Evaluation Rubric EVALUATION CRITERIA: Evaluation Points Achive Financial Group, LLC Brokerage Store, Inc Greater East Texas Insurance Health Special Risk Inc Student Insurance Plans, LLC Purchase price 45 40.00 40.00 45.00 42.00 42.00 Reputation of the vendor and of the vendor's goods or services; 10 10.00 10.00 10.00 10.00 10.00 Quality of vendor's goods or services; 10 10.00 10.00 10.00 10.00 10.00 Extent to which the good or service meets the district needs; 15 15.00 15.00 15.00 15.00 15.00 Vendors past relationship with the District or District of similar size; 10 10.00 10.00 10.00 10.00 10.00 Long term costs to the District to acquire the vendor's goods or services 10 8.00 9.00 10.00 8.00 8.00 Total Score 100 93.00 94.00 100.00 95.00 95.00 83 NOTE: Although all factors shall be considered by the District, the District reserves the right to assign a weight to each evaluation criteria. If one or more factors do not have any weight on the evaluation process of a specific request for bid or proposal, the District may assign a weight of zero 0 to said irrelevant factors.

Board of Trustees Agenda Item Information Meeting Date June 12, 2018 Meeting Type Regular Meeting Special Meeting/Workshop Hearing Date Submitted: June 5, 2018 Agenda Placement Public Hearing Open Session Executive Session Recognition Administrative Report Consent Agenda Regular Agenda Information/Discussion Subject: Approval Utilization of Region 5 Southeast Texas Purchasing Cooperative Contract RFP 20180504 for HVAC Capital Equipment, Supplies and/or Services with Unify Energy Solutions, LLC, for the Purchase of Building Automation and Energy Management System Maintenance Executive Summary: The maintenance and operations department wishes to utilize the Region 5 Southeast Texas Purchasing Cooperative contract RFP 20180504 for HVAC Capital Equipment, Supplies and/or Services with Unify Energy Solutions LLC, during the 2018-2019 school year for the purchase of Building Automation and Energy Management System Maintenance in the amount of $85,000. The installation and use of building automated system equipment in our buildings began in 1988 and is currently installed, integrated into our district network, and used in all of our buildings. Maintenance and warranty has been performed by Automated Logic since its inception. Response to new construction and service needs has prompted a change of service provider. Unify Energy Solutions LLC is a provider of building automation and energy management systems that parallels our current buildings systems. The only exception is Dawson High School that functions off Johnson Controls. This maintenance agreement is inclusive of labor, service, controllers, sensors, and other end devices necessary to maintain the existing BAS. Please see the attached proposed agreement from Unify Energy Solutions LLC per the Region 5 Southeast Texas Purchasing Cooperative contract. This contract is in accordance with Texas Education Code 44.031 Purchasing Contracts (a) (4), Interlocal Contracts. Fiscal Impact: Cost: Recurring One-Time No Fiscal Impact Funding Source: General Fund Grant Funds Others Fiscal Year: Amendment Required? Yes No Superintendent s Recommendation: That the board of trustees approve the utilization of Region 5 Southeast Texas Purchasing Cooperative Contract RFP 20180504 for HVAC Capital Equipment, Supplies and/or Services with Unify Energy Solutions, LLC, for the purchase of Building Automation and Energy Management System Maintenance for an amount of $85,000 effective July 1, 2018 through June 30, 2019. Department Submitting: Enrique Kladis Cabinet Member s Approval: Jorgannie Carter Board Approval Required: Yes No Requested By: Larry Berger 85

PROJECT: PEARLAND ISD SERVICE AGREEMENT YEAR 1 SPECIFICATION: Building Automation and Controls ADDENDUM RECEIVED: QUOTED BY: Jimmy Martin QUOTE DATE: June 6, 2018 CONTACT NUMBER: 281-900-0580 CONTACT E-MAIL: jimmymm@unifyes.com ESC5 Purchasing CO-OP Contract # 20180504 Unify Energy Solutions will provide planned preventative maintenance and service for (24) facilities at Pearland ISD, valid for (1) calendar year from date of an executed contract. This maintenance agreement is inclusive of labor, service, controllers, sensors, and other end devices necessary to maintain the existing BAS. The following Automated Logic facilities are covered by the scope described below: FACILITIES Admin Building (1928 Main) Massey Ranch Elementary Alexander Middle School Turner Junior High South Berry Miller Junior High PACE Institute Carleston Elementary Pearland High School South Challenger Elementary Rogers Middle School CJ Harris Elementary Rustic Oak Elementary Cockrell Elementary Sablatura Middle School Jamison Middle School Shadycrest Elementary Pearland Junior High West Sheryl Searcy 9 th Grade Pearland Junior High East Silvercrest Elementary Lawhon Elementary Silverlake Elementary Magnolia Elementary Transportation Center SCOPE CLARIFICATIONS Preventive Maintenance - Providing Proactive Maintenance for Pearland ISD to include parts and labor for specified equipment. Unify shall verify proper operation of the system. Technicians shall check system operating parameters, schedules, and present system operation. Technicians shall make field inspections of control modules, checking for loose connections, manually overridden equipment, adjust temperature, humidity, and pressure devices as required. (See EMS System Support Agreement Overview) Parts and Labor specified parts and repair labor included at no charge. This service proposal covers all ALC DDC control and communications modules as well as control devices provided and installed by Unify Energy Solutions. This proposal does not apply to control valves or mechanical dampers, although damper and valve actuators are covered. 20% off time and material contracts. o Controllers Exec. 4 and older Unify will replace with refurbished modules (where available). If module cannot be replaced, Unify will provide new Reliable controller and tie into existing BACnet network. If no BACnet network currently exists, Unify will provide a Reliable controls BACnet network accessible via WebView. 770 BRADFIELD RD. SUITE 585 - HOUSTON, TEXAS 77060 Tel: 281-447-0777 FAX 281-447-0778 WWW.UNIFYES.COM 86

System Support - Unify will provide phone and on-line support of the control system. This benefit is not intended to be a monitoring service but is intended to aid onsite personal in troubleshooting EMS issues. Software Unify will coordinate and provide services for all software updates. Pearland ISD will be responsible for purchasing all ALC software, updates, and required devices to perform the updates. WARRANTY ITEMS Unify Energy Solutions is providing preventative maintenance and full service for Pearland ISD. This scope of work includes, but not limited to: ALC Controllers End Devices (thermistors, actuators, sensors, relays, etc.) The proposed warranty EXCLUDES the follow items: All software and firmware upgrades to ALC system. All software upgrades and patches must be coordinated with Automated Logic, however Unify will provide system support and upgrades where possible. Valve bodies, dampers, VFDs/Starters, or any mechanical equipment. The following price is valid for 60 days from date of quotation. All pricing excludes sales tax, bonding, or purchasing agent fees unless otherwise noted. TOTAL PRICE FOR (1) YEAR SERVICE CONTRACT, PAID MONTHLY OR QUARTERLY: $85,000.00 The attached Exhibit A Terms and Conditions are a part hereof. In witness whereof, the parties hereto have executed this agreement on day of, 20. Signature: Jimmy Martin, Unify Energy Solutions Signature: Jorgannie Carter, Pearland ISD Date: Date: Regards, JIMMY MARTIN Account Executive 770 BRADFIELD RD. SUITE 585 - HOUSTON, TEXAS 77060 Tel: 281-447-0777 FAX 281-447-0778 WWW.UNIFYES.COM 87

General Provisions Exhibit A TERMS AND CONDITIONS 1.1 Unify Energy Solutions, is referred to herein as Unify or Our and the person, firm or other entity purchasing as indicated on the front hereof is referred to herein as the Client, You, or Your. All services described in this agreement are referred to herein as the Services. 1.2 The Services shall be provided during our normal working hours, Monday through Friday inclusive, excluding holidays, unless otherwise stated in this agreement. 1.3 This agreement, when accepted in writing by you and approved by an authorized Unify representative, shall constitute the entire agreement between the two parties. 1.4 Either party may terminate this agreement on the anniversary date of the original or any extended term by giving the other party, at least 30 days written notice. Termination rights for breach of contract if not cured 30 days after notice, as well. 1.5 If in the event, during the term of this agreement or within 90 days thereafter, You hire or in any way engage, any UNIFY employee who is presently performing services under this agreement, compensation equal to the current annual salary of said employee will be paid by You to Unify, notwithstanding the foregoing; this provision does not apply to any individual hired as a result of a general solicitation by You. 1.6 Limitations on Assignment. Client shall not assign all or any portion of its rights hereunder, or delegate or subcontract all or any portion of its obligations hereunder, without the prior written consent of UNIFY, except that such consent shall not be required in connection with a merger or sale of all or substantially all of client s assets. 1.7 Waiver. No failure on the part of UNIFY to exercise, and no delay by UNIFY in exercising any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or remedy by UNIFY preclude any other or further exercise thereof or the exercise of any other right, power or remedy. No express waiver or assent by UNIFY to any breach of or default in any term or condition of this Agreement shall constitute a waiver of or an assent to any succeeding breach of or default in the same or any other term or condition hereof. 1.8 Governing Law. This document and all amendments, modifications, alterations or supplements hereto, and all rights of the parties hereunder shall be governed by and construed and enforced in accordance with the laws of the State of Texas, without regard to its principles of conflicts of law. 1.9 Headings. The headings describing the contents of particular paragraphs are inserted only for convenience and shall not be construed as a part hereof or as a limitation on or enlargement of the scope of any of the terms or provisions contained herein. 1.10 Entire Agreement. These Terms and Conditions supersede all prior discussions and agreements between the parties with respect to the subject matter hereof, and contains the sole and entire agreement between the parties with respect to the matters covered hereby. By way of illustration and not by way of limitation, all orders submitted by Client shall be deemed to incorporate without exception all of the Terms and Conditions contained herein notwithstanding any additional or contrary terms and conditions contained therein. Unless UNIFY shall expressly advise Client to the contrary in writing apart from the provisions of such order, no acknowledgment by UNIFY of or reference by UNIFY to or performance by UNIFY under any such order form shall be deemed to be an acceptance by UNIFY of any terms or conditions contained therein which are additional to or contrary to the Terms and Conditions contained herein. The Terms and Condition contained herein may not be modified or amended except by an instrument in writing signed by one of UNIFY s duly authorized officers. Initial Inspection and Permits, Approvals and Licenses 2.1 All equipment provided for UNIFY s use shall be in satisfactory working condition. During the first 30 days of this agreement or at first seasonal startup, UNIFY will inspect the equipment covered under this agreement. If UNIFY finds the equipment in need of repair or replacement, UNIFY will notify you in writing of the deficiency and the proposed correction. UNIFY will not be responsible for the repair or replacement of the equipment until the equipment is restored to a condition acceptable to us. If no corrective action is taken within 30 days of our notice to you of deficiency, UNIFY will remove the equipment from coverage and adjust the agreement price accordingly. 2.2 The Client is responsible for securing all work permits and/or local approvals and licenses where applicable, and for paying the costs thereof. 770 BRADFIELD RD. SUITE 585 - HOUSTON, TEXAS 77060 Tel: 281-447-0777 FAX 281-447-0778 WWW.UNIFYES.COM 88

Charges and payments 3.1 Invoices are due and payable within 30 days of date of invoice. If payment is not received when due, the agreement may be considered to be breached, and UNIFY may take whatever actions are available through law, including but not limited to suspension or termination of services and acceleration of payment. 3.2 If emergency service is performed at your request and inspection does not reveal any defect for which UNIFY is liable under this agreement, you shall be charged at our prevailing rates. 3.3 Service that is performed with your authorization on equipment not covered by this agreement shall be charged and paid by you at our prevailing rates. 3.4 Any amounts payable to UNIFY hereunder which are not paid when due shall thereafter bear interest at the rate of eighteen percent (18%) per month or the maximum amount permitted by applicable law, whichever is less. Time is of the essence of all payments due hereunder, and if any payment due UNIFY is collected at law, or through an attorneyat-law or under advice therefrom, or through a collection agency, Client agrees to pay all costs of collection, including, without limitation, all court costs and reasonable attorney s fees. 3.5 You shall be responsible to pay any present or future sales, use, occupancy, excise or other federal, provincial, or local tax owed with respect to the services and material covered by this agreement, other than tax based on Unify s income. Warranty 4.1 UNIFY warrants that all equipment manufactured by Reliable Controls sold hereunder shall be free from defects in workmanship and material for a period of one year from the date of delivery. In the event that any such equipment (or component thereof) sold hereunder proves to be defective during the warranty period, Client s sole obligation, and Client s sole remedy, shall be the repair or replacement of the defective equipment (or component), at Client s option. Unify shall bear costs of transporting the replacement Product (or component). Under no circumstances may Client return any equipment or component to UNIFY without prior written permission from UNIFY. EXCEPT AS EXPRESSLY PROVIDED IN THIS PARAGRAPH, UNIFY MAKES NO REPRESENTATIONS OR WARRANTIES REGARDING THE EQUIPMENT OF ANY KIND, NATURE OR DESCRIPTION, EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY OR FITNESS OF ANY OF THE PRODUCTS FOR ANY PARTICULAR PURPOSE, AND UNIFY HEREBY DISCLAIMS THE SAME. 4.2 For materials furnished but not manufactured by us nor bearing our nameplate, UNIFY will extend the same warranty UNIFY received from the manufacturer. 4.3 UNIFY warrants that the labor for all Services provided in this agreement is guaranteed for 90 days after the work is performed. 4.4 This express warranty is in lieu of and excludes all other warranties, guarantees, or representations, expressed, or implied including warranties of merchantability or of fitness for a particular purpose. Safety and Hazardous materials 5.1 It is our intent to perform all work in a clean, safe and professional manner, causing no hazards to your staff, facility, and the environment or to our service personnel. 5.2 UNIFY shall not be required to make safety tests, install new devices or make modifications to any equipment beyond the scope of the original agreement in order to comply with recommendations or directives of insurance companies, government bodies, or for other reasons. 5.3 This agreement pre-supposes hazardous materials are not present at the jobsite, including but not limited to asbestos. If in providing service, UNIFY discovers or suspects the presence of hazardous material, UNIFY will notify you. You shall be responsible for the cost and performance of testing, abating, encapsulating, cleaning up, removing, or rendering such materials non-hazardous. UNIFY has the right to stop work until the jobsite is free from hazardous materials. 5.4 You agree to notify us in writing of any hazardous materials on the jobsite and any jobsite safety policies including but not limited to lock-out and tag procedures, laboratory procedures, biological hazards and other items covered by right to know regulations or which may pose a hazard to our employees or equipment. Client responsibilities 6.1 Operate equipment according to the manufacturer s recommendations. 770 BRADFIELD RD. SUITE 585 - HOUSTON, TEXAS 77060 Tel: 281-447-0777 FAX 281-447-0778 WWW.UNIFYES.COM 89

6.2 Promptly notify us of any unusual operating conditions. 6.3 Provide reasonable means of access to the equipment being serviced. You shall be responsible for any removal, replacement, or refinishing of the building structure, if required, to gain access to the equipment. UNIFY shall be permitted to control and/or operate all equipment necessary to perform the services herein described as arranged with your representative. 6.4 Properly dispose of used oil, filters, contaminated absorbents and contaminated refrigerant unless otherwise stated in this agreement. Disposition will be performed according to applicable laws. 6.5 If on-line service via the internet is included in this agreement, client will provide, bear the cost of, and maintain a broadband connection. Exclusions and limitations of liability 7.1 UNIFY shall not be responsible for repair or replacement of non-maintainable or non-moving parts of the system such as ductwork, shell and tubes, heat exchangers, unit cabinets, casings, refractory material, electrical wiring, water and pneumatic piping, structural supports, cooling tower fill, slats and basins, etc. unless otherwise stated in this agreement. 7.2 UNIFY shall not be responsible for repairs, replacement, or services necessitated by reason of negligence, abuse, misuse, improper or inadequate repairs or modifications, improper operation, lack of operator maintenance or skill, or other reasons beyond our control. UNIFY assumes no responsibility for service on equipment unless performed by our employees or persons authorized by us. 7.3 UNIFY shall not be responsible for repairs, replacements or services to equipment due to corrosion, erosion, improper or inadequate water treatment by others, electrolytic action, chemical action or other reasons beyond our control. 7.4 UNIFY shall not be responsible for loss, delay, injury or damage that may be caused by circumstances beyond Our control including, but not restricted to acts of God, war, civil commotion, acts of government, fire, theft, corrosion, floods, water damage, lightning, freeze-ups, strikes, lockouts, differences with workmen, riots, explosions, quarantine restrictions, delays in transportation, shortage of vehicles, fuel, labor or materials, or malicious mischief. IN NO EVENT SHALL UNIFY BE LIABLE FOR BUSINESS INTERRUPTION LOSSES OR CONSEQUENTIAL OR SPECULATIVE DAMAGES, but this sentence shall not relieve UNIFY of liability for damage to property or injury to persons resulting from accidents caused directly by its negligence in performance or failure to perform its obligations under this agreement. 7.5 If the equipment or software included under this agreement is altered, modified, or changed by a party other than UNIFY, You agree that the appropriate changes to the scope and/or price will be made to this agreement in writing signed by you and us. 7.6 At initial inspection or following 12 months of service, if individual item(s) cannot, in our opinion, be properly repaired, due to obsolescence, lack of availability of standard parts, excessive wear or deterioration, UNIFY may withdraw the item(s) from coverage and adjust charges accordingly with ninety (90) days prior written notice. 7.7 Repairs and replacement of equipment parts and components is limited to restoring proper working condition. UNIFY shall not be obligated to provide replacement equipment that represents significant betterment or capital improvement. Exchanged parts and components become the property of UNIFY. Force Majeure 8.1 Neither party shall be liable for any default or delay in the performance of any of its obligations hereunder (excluding payment obligations) if such default or delay is caused, directly or indirectly, by fire, flood, earthquake, the elements, or other such occurrences; labor disputes, strikes or lockouts; wars (declared or undeclared), rebellions or revolutions in any country; riots or civil disorder; terrorist attacks; accidents or unavoidable casualties; interruptions of transportation or communications facilities or delays in transit or communication; supply shortages or the failure of any third party to perform any commitment to such party relative to the production or delivery of any equipment or material required by such party to perform its obligations hereunder; laws, rulings, regulations, decisions or requirements, whether valid, invalid, formal or informal, of any government, tribunal or governmental agency, board or official; or any other cause, whether similar or dissimilar to those enumerated herein, beyond such party s reasonable control. The affected party shall notify the other party of the happening of any such contingency within a reasonable period of time. If due to an excusable delay, performance cannot be completed within the original period for performance, the period for performance shall be extended for a reasonable period of time to allow for completion of performance. 770 BRADFIELD RD. SUITE 585 - HOUSTON, TEXAS 77060 Tel: 281-447-0777 FAX 281-447-0778 WWW.UNIFYES.COM 90

Board of Trustees Agenda Item Information Meeting Date June 12, 2018 Meeting Type Regular Meeting Special Meeting/Workshop Hearing Agenda Placement Public Hearing Open Session Executive Session Recognition Administrative Report Consent Agenda Regular Agenda Information/Discussion Date Submitted: June 4, 2018 Subject: Approve Construction Manager-at-Risk (CMAR) Contract for Package E of the 2016 Bond Projects Executive Summary: At the December 2016 regular meeting, the board of trustees approved the use of the CMAR method for procuring construction services for all bond projects as set out in Texas Government Code 2269.251. These services are procured through a two-step process. The first step identifies the top firms based purely on qualifications, resulting in the highest-ranking firms being invited to participate in the second step, an interview and cost proposal. At the March 2017 regular meeting, after the above two-step process was complete, the board approved three (3) firms to provide CMAR services for bond Packages A, B, C, D, and F. Those project packages are currently under construction. During April and May 2018 a two-step process was conducted to select a CMAR firm for the remaining bond package, Package E. This package consists of: New gyms and addressing facility items at Rustic Oak, Challenger, C. J. Harris, and Sliverlake Elementaries New building entrance and addressing facility items at Shadycrest Elementary Cafeteria and gym addition at Lawhon Elementary In the first step of the selection process the district received statements of qualifications from seven (7) firms, which were scored by four Pearland ISD administrators. The top three (3) scoring firms were selected for interviews and to submit cost proposals. During part two of the two-step process, interviews were conducted, cost proposals were received, and the committee scored the results. Anslow Bryant Construction Ltd. received the highest overall score and is recommended to provide CMAR services for Package E. Please see attached documentation for detailed results. The contract amount will be determined by the Guaranteed Maximum Price (GMP) which will be presented to the board in early 2019. Fiscal Impact: Cost: Recurring One-Time No Fiscal Impact Funding Source: General Fund Grant Funds 2016 Bond Funds Fiscal Year: Amendment Required? Yes No Superintendent s Recommendation: That the board of trustees approve the ranking of the proposals recommended by administration and the selection of Anslow Bryant Construction Ltd. to provide CMAR 92

services for the 2016 Bond Package E, and that the Superintendent or his designee be authorized to execute the final contract and any other necessary documents on behalf of the school district. Department Submitting: Purchasing/Enrique Kladis Requested By: Don Tillis and John Posch Cabinet Member s Approval: Jorgannie Carter and Cary Partin Board Approval Required: Yes No 93

Pearland Independent School District Request for Qualifications for Construction Manager at Risk Services Proposal Date: May 10, 2018 Package E Proposal Time: 2:00 PM Proposal Tabulation - Step 1 PROPOSAL ON: Construction Management at Risk PEARLAND I.S.D. Durotech Stewart Anslow Bryant Gamma Teal Turner Comex Acknowledgement Form Addendum #1 EVALUATION CRITERIA 1. The Contractors experience & Reputation 2. The Quality of the Contractors work Experience and reputation with remodels and small buildings in K-12 market. Excellent = 18-20 points. Very good = 16-18 points. Average = 13-15 points.poor = 1-12 points High quality - 17 to 20 points. Average quality - 13 to 16 points. Low quality or insufficient info: 1 to 12 points Weight 20 / 20 19.0 18.8 18.0 16.0 14.8 11.8 13.0 20 / 20 19.0 19.0 17.7 16.5 15.5 12.5 13.5 94 3. The Contactor's safety record 4. The Contractor's proposed personnel 5. Is the Contractor's financial capacity appropriate to the size and scope of the project(s) 6. The Contractor's prior history in executing construction work for Pearland ISD. 7. The offeror's presentation of a Management Plan EMR <.7 = 5 points EMR between.71 and.99: 3 or 4 points. EMR 1.0 or greater - 1 or 2 points Significant personnel experience in $16M SCHOOL projects: 13-15 points. Some experience: 7 to 12 points. Little or no experience: 1 to 7 points. Significant experience in $16M projects: 8-10 points. Some experience: 5 to 7 points. Little or no experience: 1 to 4 points. Positive experience = 6 to 10 points. Neutral or no experience = 5 points. Negative experience = 1-4 points Well thought-out: 18-20 points. Some thought - 14-17 points. Little or no thought or effort: 1-13 points 5 / 5 5.0 5.0 4.3 3.0 3.8 3.8 3.0 15 / 15 14.3 13.8 13.5 13.0 12.3 11.8 11.0 10 / 10 10.0 10.0 10.0 9.5 8.0 10.0 7.0 10 / 10 9.3 9.5 5.0 5.0 5.0 5.0 4.8 20 / 20 18.5 17.3 18.3 16.5 13.5 15.0 14.8 TOTAL 95.1 93.4 86.8 79.5 72.9 69.9 67.1 RANKING 1 2 3 4 5 6 7

Pearland Independent School District Request for Qualifications for Construction Manager at Risk Services Package E Evaluation Ranking - Step 1 95 PACKAGE E Contractor Step 1 Rank Step 1 Score Score converted to 60 Durotech 1 95.1 57.1 Stewart 2 93.4 56.0 Anslow Bryant 3 86.8 52.1 Gamma 4 79.5 47.7 Teal 5 72.9 43.7 Turner 6 69.9 41.9 Comex 7 67.1 40.3

Board of Trustees Agenda Item Information Meeting Date: June 12, 2018 Meeting Type Regular Meeting Special Meeting/Workshop Hearing Agenda Placement Public Hearing Open Session Executive Session Recognition Date Submitted: June 5, 2018 Subject: Consider to Approve the 2018-2019 Budget Administrative Report Consent Agenda Regular Agenda Information/Discussion Executive Summary: The District s Proposed Annual Budget Report for fiscal year 2018-19 detailing the financial and operations plan of the District is attached to the Public Hearing Agenda item. As presented, the proposed budget covers all estimated revenues and proposed expenditures of the District s General Fund, Food Service Fund and Debt Service Fund for the fiscal year starting July 1, 2018, in accordance with Section 44.002 of the Texas Education Code. Fiscal Impact: Cost: Recurring One-Time No Fiscal Impact Funding Source: General Fund Grant Funds Other Funds (Specify) Food Service & Debt Service Fiscal Year: Amendment Required? Yes No Superintendent s Recommendation: That the board approves the operating budget for the district s General Fund, Food Service Fund and Debt Service Fund as presented for the 2018-2019 school year. Department Submitting: Administration Requested By: Jorgannie Carter Cabinet Member s Approval: Dr. John Kelly Board Approval Required: Yes No 98

Board of Trustees Agenda Item Information Meeting Date: June 12, 2018 Meeting Type Regular Meeting Special Meeting/Workshop Hearing Date Submitted: June 5, 2018 Agenda Placement Public Hearing Open Session Executive Session Recognition Administrative Report Consent Agenda Regular Agenda Information/Discussion Subject: Consider to Adopt the Resolution Setting Ad Valorem Tax Rate for 2018 Executive Summary: After holding a public meeting to discuss the budget and proposed tax rate on June 12, 2018, all legal requirements have been met to adopt the 2018 ad valorem tax rate. The 2018 proposed tax rate of $1.4156 per $100 valuation is same rate adopted in 2017. School Year M & O I & S Total 2018-2019 $ 1.04 $ 0.3756 $ 1.4156 2017-2018 1.04 0.3756 1.4156 Increase/(Decrease) $ 0.00 $ 0.00 $ 0.00 The language in the Superintendent s Recommendation regarding an increase in the tax rate is specifically required by Section 26.05(b) of the Texas Property Tax Code. Such language is required although the tax rate is NOT being increased. In fact, the tax rate has not increased in the past ten years. The rate has slightly decreased over the years from $1.4294 in 2007 to the proposed rate of $1.4156 in 2018. The required wording in the recommendation is intended to show taxpayers that, due to new construction and increased property values, additional local tax revenue is collected at a tax rate that is the same as last year s tax rate. However, the State s language does not reflect that as local revenues increases, state aid decreases to offset the local gains. The language required by the state also does not disclose the changes in student enrollment, inflationary pressures, salary considerations, and other cost drivers. Maintaining the same tax rate rather than asking voters to approve an increase is only possible because of the large scale cuts to Pearland ISD s budget over the past several years along with strong financial management by the school board and administration. Per Section 26.05(b) of the Texas Property Tax Code, at least sixty percent (60%) of the governing body must vote in favor of the motion if a proposed tax rate exceeds the sum of the effective M&O rate and I&S rate. The proposed tax rate of $1.4156 exceeds the calculated effective total tax rate of $1.380602, therefore sixty percent of the voting board members must be in favor for the motion to pass. Fiscal Impact: 99

Cost: Recurring One-Time No Fiscal Impact Funding Source: General Fund Grant Funds Other Funds (Debt Service) Fiscal Year: Amendment Required? Yes No Superintendent s Recommendation: In using the appropriate language as prescribed by the Property Tax Code to approve the resolution levying an annual ad valorem tax, I move that the property tax rate be increased by the adoption of a tax rate of $1.4156 per $100.00 valuation which is effectively a 2.53 percent increase in the tax rate. Furthermore it is noted that the actual school tax paid on a $100,000 house, for example, remains the same as the amount of tax paid last year. Department Submitting: Business Office Requested By: Jorgannie Carter Cabinet Member s Approval: Dr. John Kelly Board Approval Required: Yes No 100

RESOLUTION PEARLAND INDEPENDENT SCHOOL DISTRICT A RESOLUTION LEVYING AN ANNUAL AD VALOREM TAX FOR THE YEAR 2018 SETTING SPECIFIC TAX RATES, APPLICABLE TO ALL REAL, PERSONAL AND MIXED PROPERTY SITUATED WITHIN PEARLAND INDEPENDENT SCHOOL DISTRICT, SETTING DUE DATE AND PROVIDING FOR PENALTIES AND INTEREST ON DELINQUENT TAXES. BE IT RESOLVED by the Board of Trustees of Pearland Independent School District of Brazoria County, Texas: 1. That an ad valorem tax rate of $1.4156 per $100.00 cash valuation and assessment ratio of 100 percent of market value, as said values are fixed by the Appraisal Review Board and certified by the Chief Appraiser of the Brazoria County Appraisal District, be and the same is hereby levied for the year 2018 on all real property, personal property and mixed property located and situated with confines and boundaries of the Pearland Independent School District. 2. That the above specified ad valorem tax rate is for the purpose of and to be distributed as follows: A. $1.04 rate for general operating funds B. $0.3756 rate for debt service, bonded indebtedness, interest and sinking fund 3. Any person failing to pay their taxes on or before January 31, 2019, shall be subject to the maximum penalties thereon allowed by law to be collected on delinquent taxes. All delinquent taxes shall bear interest at the highest per annum interest rate allowed by law to be collected on delinquent taxes and shall bear interest from date of delinquency until paid. THIS TAX RATE WILL RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR S TAX RATE. THE TAX RATE WILL EFFECTIVELY BE RAISED BY 2.53 PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY APPROXIMATELY $0.00. 101

PASSED AND APPROVED AND EFFECTIVE this the 12th day of June, 2018. ATTEST: Rebecca Decker, President Board of Trustees Jeff Barry, Secretary Board of Trustees 102

Board of Trustees Agenda Item Information Meeting Date June 12, 2018 Meeting Type Regular Meeting Special Meeting/Workshop Hearing Agenda Placement Public Hearing Open Session Executive Session Recognition Administrative Report Consent Agenda Regular Agenda Information/Discussion Date Submitted: May 30, 2018 Subject: Consider to Approve the Selection of Architecture Firm to Provide Architectural Services for 2016 Bond Package E of the 2016 Bond Projects Executive Summary: At the December 2015 regular meeting the board of trustees approved PBK and Stantec as the most highly qualified providers of architectural services on the basis of demonstrated competence and qualifications. The two firms received the highest scores in a twostep evaluation process. PBK was awarded Package A, B, and F, and Stantec was awarded Packages C and D. Both firms have provided excellent architectural services on their respective project packages. PBK is now recommended to provide architectural services for the remaining bond package, Package E. PBK was the highest scoring firm in the 2015 evaluation process, and continues to provide excellent service to the district. In particular, PBK s lead Architect Jeff Chapman has provided excellent advice and insight to the administration and board during design presentations. Fiscal Impact: Cost: Recurring One-Time No Fiscal Impact Funding Source: General Fund Grant Funds 2016 Bond Funds Fiscal Year: Amendment Required? Yes No Superintendent s Recommendation: That the board of trustees approve the selection of PBK Architects to provide architectural services for 2016 bond Package E and that the Superintendent or his designee be authorized to execute the final contract and any other necessary documents on behalf of the school district. Department Submitting: Purchasing/Enrique Kladis Cabinet Member s Approval: Jorgannie Carter and Cary Partin Requested By: Don Tillis and John Posch Board Approval Required: Yes No 103

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Board of Trustees Agenda Item Information Meeting Date: June 12, 2018 Meeting Type Regular Meeting Special Meeting/Workshop Hearing Date Submitted: May 31, 2018 Agenda Placement Public Hearing Open Session Executive Session Recognition Administrative Report Consent Agenda Regular Agenda Information/Discussion Subject: Designate Delegate/Alternate to the 2018 TASB Delegate Assembly Executive Summary: TASB s Delegate Assembly, composed of school district trustees from across Texas, is a crucial component of its governance structure. During the assembly delegates cast votes on resolutions that provide direction to the TASB Board and staff in representing school district interests before state and national policy makers. The 2018 Delegate Assembly will meet in conjunction with the TASB/TASA Convention in Austin, Texas, September 28-30, 2018. At the assembly PISD s representative will hear reports from the TASB Board and its committees, elect association officers and trustees, and consider resolutions submitted by member districts. Delegates play a pivotal role in guiding TASB as they consider a comprehensive list of relevant issues during the annual assembly. Ultimately the strength of TASB s advocacy and voice rests in the involvement and input from board members from every district in Texas. The following chart has been prepared for a historical perspective. Fiscal Impact: YEAR DELEGATE ALTERNATE 2014 Rebecca Decker Lance Botkin 2015 Rebecca Decker Pam Boegler 2016 Rebecca Decker Lance Botkin 2017 Sean Murphy Jeff Barry Cost: Recurring One-Time No Fiscal Impact Funding Source: General Fund Grant Funds Other Funds (Specify) Fiscal Year: Amendment Required Yes No Superintendent Recommendation: That the board appoint a delegate and alternate for the 2018 TASB Delegate Assembly. Department Submitting: Superintendent Requested By: Dr. John Kelly Cabinet Member s Approval: Dr. John Kelly Board Approval Required: Yes No 105

Board of Trustees Agenda Item Information Meeting Date: June 12, 2018 Meeting Type Regular Meeting Special Meeting/Workshop Hearing Date Submitted: June 4, 2018 Agenda Placement Public Hearing Open Session Executive Session Recognition Administrative Report Consent Agenda Regular Agenda Information/Discussion Subject: Consider Board of Trustee Appointment to Pearland ISD Education Foundation Board Executive Summary: Annually, a member of the board of trustees is asked to serve as a voting member on the Pearland ISD Education Foundation Board of Directors. Foundation board directors play a vital role in the success of the education foundation, a 501(c)(3) nonprofit organization with the purpose to provide resources to Pearland ISD students and staff. Foundation directors carry out the mission and goals of the organization and have the willingness to use their time, influence and specialized or professional knowledge for the benefit of the students and staff that will be supported through the foundation s work. Responsibilities of a foundation director include: 1. Attend monthly board meetings (4pm, 3 rd Wednesday of each month at District ESC) 2. Serve on at least one standing committee, including Nominations and Board Development 3. Provide leadership to insure the foundation s present and future success 4. Serve as ambassador of goodwill for the foundation, represent the school district at Foundation activities, share mission to groups and individuals 5. Cultivate and solicit prospects for charitable giving within the mission and goals established for the foundation 6. Assist in the recruitment of volunteers as needed to carry out the work of the foundation Rebecca Decker currently serves as the Pearland ISD Trustee serving on the Foundation Board. She has indicated her willingness to continue serving in that role if appointed by the Board. Fiscal Impact: Cost: Recurring One-Time No Fiscal Impact Funding Source: General Fund Grant Funds Other Funds (Specify) Fiscal Year: Amendment Required? Yes No Superintendent s Recommendation: That the Board appoints a trustee to serve on Pearland ISD Education Foundation Board of Directors Department Submitting: Superintendent Requested By: Foundation President 106

Cabinet Member s Approval: N/A Board Approval Required: Yes No 107

Board of Trustees Agenda Item Information Meeting Date June 12, 2018 Meeting Type Agenda Placement Regular Meeting Public Hearing Special Meeting/Workshop Open Session Hearing Executive Session Recognition Date Submitted: May 30, 2018 Subject: Consider New Public/Student Workshops for 2018-2019 Administrative Report Consent Agenda Regular Agenda Information/Discussion Executive Summary: Individual trustees have expressed a desire for greater interaction with the public. The following two ideas have been put forth: A workshop/public participation opportunity focused on daily school start times and other issues of general interest to the public. Student advisory meetings whereby high school and junior high students give their perspective to trustees/administration on relevant board level policies. The superintendent recommends that such meetings be held no earlier than mid-september 2018 in order to launch the new school year first. At least two trustees have expressed that any decision to change school start times for the 2019-2020 school year must be made no later than January 2019. Therefore, in addition to regular Board meetings, TASB convention, Special meetings, etc., the Board may wish to schedule one student advisory committee meeting and two workshops in fall 2018. The workshops may consist of information dissemination to the public on the issue(s) being discussed combined with an opportunity for the public to join the conversation and to pose questions. The student advisory meetings may be comprised of representatives from the three high school student councils plus one student from each of the four junior high schools. In advance of the meetings, the students could meet and decide on issues they would like to discuss ensuring that such issues involve board level discussions of policy rather than day-to-day management of the district. Fiscal Impact: Cost: Recurring One-Time No Fiscal Impact Funding Source: General Fund Grant Funds Other Funds (Specify) Fiscal Year: Amendment Required? Yes No 108