Minutes of Special Board Meeting - Telephone Conference
August 30, 2017

The Board of Trustees
Texas City Independent School District

Members Present:	 Hal Biery, President
Melba Anderson
Dickey Campbell          
Nakisha Paul
Mable Pratt
Bryan Thompson

Absent:		David Moss, Vice President

Also Present:		Dr. Rodney Cavness, Superintendent
Susan Myers, Deputy Superintendent of Education
Margaret Lee, Assistant Superintendent for Business & 
Operations

Dr. Terri Burchfield, Executive Director of Support Services
Patricia Collins, Tax Assessor/Collector
Marion Godeaux, Executive Director of Maintenance
Jack Haralson, Director of Facilities
Marcus Higgs, Executive Director of Human Resources
David Hodgins, TCISD Attorney
Melissa Tortorici, Director of Communication

A Special Board Meeting - Telephone Conference of the Board of Trustees of Texas City Independent School District was held Wednesday, August 30, 2017, beginning at 6:30 PM in the Simpson Education Support Center Board Room.

1.	Call to Order		
2.	First Order of Business		
A.	 Announcement by the President whether a quorum is present, that the meeting has been duly called and notice of the meeting has been posted for the time and manner required by law

Mr. Hal Biery, President, called the meeting to order at 6:34 p.m. Mr. Biery announced that a quorum was present, that the meeting had been duly called, and notice of the meeting had been posted in the time and manner required by law.

B.	Declaration of an emergency or public necessity within the meaning of Texas Education Code 551.045 including impact of Hurricane/Tropical Storm Harvey, legal necessity to adopt a budget by September 1, 2017, and related actions

Mr. Bryan Thompson, Board Member, made a motion to accept the Declaration of an emergency or public necessity within the meaning of Texas Education Code 551.045 including the impact of Hurricane/Tropical Storm Harvey, legal necessity to adopt a budget by September 1, 2017, and related actions. The. Mrs. Mable Pratt, Board Member, seconded the motion. The motion carried 6/0.
		
3.	Consider public hearing on proposed budget (Phone number for public to call in and participate in the hearing is 1 (646) 749-3131 Access Code: 743-434-517)

Mrs. Margaret Lee, Assistant Superintendent for Business & Operations, began the Public Hearing at 6:34 p.m. Mrs. Lee reviewed three Expenditure Budgets and Two Tax Rates (Maintenance and Operations Tax Rate is $1.17. Debt Service Rate is .2649). With revenues of $91.8 million and expenditures of $84.1 million, the resulting budget is a $7.7 million surplus. The surplus is attributed to an additional $18.1 million of funding received under TEC k13.054 and is not derived from regular operating revenues. The Maintenance and Operations budget reflects a $9 million deficit without consideration of the $18.1 million local fund assignment adjustment. TCISD will end the 2016‐2017 fiscal year with an estimated $30.6 million in the maintenance and operations fund balance.

Revenue
The revenue to fund the budget is based on a Maintenance and Operations tax rate of $1.17 and estimated current year tax collections of $50.4 million. The State revenue reflected in object code 5812 includes an $18.1 million adjustment to the local fund assignment and funding generated under published finance formulas. The Texas Legislature passed HB 21, which provides hardship grants to certain school districts. Texas City ISD qualifies for the hardship grant in light of the loss of ASATR funding. The Legislative estimate of the hardship grant is $1 million, but Moak Casey calculations using data provided by TCISD indicate $3 million. The additional funding to be provided by the hardship grant has not been included in the budget presented for adoption. Early student counts show a significant drop from this time last year. This drop, this could cause our estimated revenue (including the hardship grant) to decrease by more $2 million (assuming all students were enrolled in the basic education program). Funds received through the hardship grant will be combined with the student adjustment in a budget amendment after student numbers have stabilized.

Expenditures
The expenditure budget presented for approval is $84,100,631 and will fully fund the operations of the district. This budget does not include salary increases. All budgets with the exception of personnel were cut by five percent, and specific categories 

including utilities and gasoline were reviewed and budgeted based on 2016‐2017 actual expenditures. This includes $500K for technology refresh and increases to several shared services arrangements. The Public Meeting ended at 7:02 p.m.
		
A.	Review of 2017-2018 Expenditure Budgets		
B.	Review of 2017-2018 Proposed Tax Rates
		
4.	Action		
A.	Consider declaration of pubic emergency and urgent public necessity to amend meeting notice

Mr. David Hodgins, TCISD Attorney, reviewed the necessity to amend the meeting notice for a public emergency. Mr. Dickey Campbell, Board Member, made a motion to approve the declaration of public emergency and urgent public necessity to amend meeting notice. The. Mr. Bryan Thompson, Board Member, seconded the motion. The motion carried 6/0.
		
B.	Consider retention of public adjuster to assist with insurance claims

Dr. Rodney Cavness, Superintendent, presented the urgency to retention of a public adjuster to assist with insurance claims for TCISD. Mr. Dickey Campbell, Board Member, made a motion to that the Board, pursuant to Texas Education Code 44.031(h), authorize the Superintendent of Schools, as appropriate, to enter into contracts for the replacement or repair of the equipment, school facility, or portion of the school that is destroyed, severely damaged, or experiences a major unforeseen operational or structural failure.  This action is based upon the Board of Trustees of the Texas City Independent School District’s determination that the delay posed by the regular contract methods required by Chapter 44 of the Texas Education Code would prevent or substantially impair the conduct of classes or other essential school activities.  I further move that the Superintendent be authorized to retain a public adjuster to assist with insurance claims and to retain/contract with contractor(s) to remediate and mitigate damage to district property and facilities, as appropriate. This motion encompasses Item 4B and Item 4C. Mr. Bryan Thompson, Board Member, seconded the motion. The motion carried 6/0.
		
C.	Consider retention of contractor(s) to remediate and mitigate damage to district property and facilities
		
D.	Consider approval of resolution related to bad weather days

Dr. Rodney Cavness, Superintendent, reviewed the resolution related to bad weather days. Dr. Cavness stated that the commissioner has given us five weather days for the current bad weather days. Ms. Melba Anderson, Board Member, made a motion to approve the resolution related to bad weather days. The. Ms. Nakisha Paul, Board Member, seconded the motion. The motion carried 6/0.
		
E.	Consider adoption of the following budgets:

Mrs. Margaret Lee, Assistant Superintendent for Business & Operations, presented the following budgets:
		
1.	Local Maintenance – Funds 1XX		
2.	Nutrition Services – Fund 240		
3.	Debt Services – Fund 599

Mr. Dickey Campbell, Board Member, made a motion to adopt the Local Maintenance, Nutrition Services, and Debt Services Funds. The. Mr. Bryan Thompson, Board Member, seconded the motion. The motion carried 6/0.
		
F.	Consider adoption of the 2017 maintenance and operations tax rate and the 2017 interest and sinking tax rate

Mr. Bryan Thompson, Board Member, made a motion to adopt the 2017 maintenance and operation tax rate and 2017 interest and sinking tax rate. Mr. Melba Anderson, Board Member, seconded the motion. The motion carried 6/0.
		
5.	Information		
A.	Consider and discuss status of TCISD and the City of Texas City and plans for moving forward

Dr. Rodney Cavness, Superintendent, presented plans for TCISD and the City of Texas City to move forward. Mr. Marion Godeaux, Executive of Maintenance, gave an update of TCISD campuses. Mrs. Susan Myers, Deputy Superintendent of Education, updated the Board with needs to the district, registration process, the relocation of teachers due to the devastation of La Marque campuses, and start date for students of September 11th. 
		
B.	Review final budget amendment for 2016-2017

Mrs. Margaret Lee, Assistant Superintendent for Business & Operations, reviewed final budget amendments. Mrs. Lee explained that Trustees have been made aware that spending in all functions have been within budget through the month of July. As a result, the amendment is primarily to ensure enough funds are available for audit adjustments including payroll accruals, accounts payable accruals, reclassified transportation, workers compensation accrual, and other expenditure recognition entries. These are year‐end entries that are not posted in the regular course of business but are necessary for financial statement revenue and expenditure recognition as of August 31st. All of these entries will have a net
effect of zero either within the 2016‐2017 budget or between the 2016‐2017 and 2017‐2018 fiscal years. The amendment will ensure that there are adequate budgeted funds to cover any audit entry that could
be made between now and the issuance of our financial statements.		
C.	Review assignment of maintenance and operations fund balance

    Mrs. Margaret Lee, Assistant Superintendent for Business & Operations, 
    recommended the following assignment of fund balance for the fiscal year end  
   August 31, 2017:

•	Catastrophic Event (Insurance Deductible)                       $ (7,000,000.00)
•	Reserve for MTN & SECO Loan Payments                        $ (4,289,420.00)
•	Campus Fund Balance (Estimated; actual amount to 
     be determined by CFO after financial audit)                     $ (400,000.00)
•	Inventories and Prepaid Items (Estimated; actual amount to be
determined by CFO after financial audit)                           $ (665,000.00)

   After consideration of these assignments, TCISD will hold approximately $18   
   million in undesignated fund balance. With monthly operations of $6.7 million,  
  TCISD will have unassigned fund balance adequate to cover approximately 2.7  
  months of operations.
		
D.	Review 2017-2018 Compensation Plan

Mr. Marcus Higgs, Executive Director of Human Resources, proposed the 2017-2018 Compensation Plan for TCISD. The proposed plan would take effect September 2017 if additional unbudgeted funds become available, the Board may then consider salary increases or retention incentives. 
		
6.	Business/Legal/Finance Consent Agenda

Mr. Bryan Thompson, Board Member, moved to approve items A, B, and C. Ms. Melba Anderson, Board Member, seconded the motion. The motion carried 6/0.
		
A.	Consider approval of final budget amendment for 2016-2017		
B.	Consider approval of fund balance assignment		
C.	Consider approval of 2017-2018 Compensation Plan
		
7.	Closed Meeting  - Closed meeting will be held for the purposes authorized by the Texas Open Meetings Act, Texas Government Code Section 551.071 - 551.087 

concerning any and all purposes permitted by the Act, including but not limited to the following sections and purposes: Texas Government Code Sections:

There was not a Closed Meeting at this time. 
		
A.	551.071  For the purpose of a private consultation with the Board's attorney on all subjects or matter authorized by law		
1.	when the governmental body seeks the advice of its attorney about:		
a.	Pending or contemplated litigation or		
b.	A settlement offer; or		
B.	551.076  For the purpose of considering the deployment, specific occasions for, or implementation of, security personnel or devices		
8.	Reconvene from Closed Meeting		
9.	Adjournment		
 
Mrs. Mable Pratt, Board Member, moved to adjourn the meeting at 7:55 p.m. Mr. Bryan Thompson, Board Member, seconded the motion. The motion carried 6/0.

Approved: 
	
__________________________ 		_____________________ 
Hal Biery		    	 		Date 
TCISD Board of Trustees 

__________________________ 		_____________________ 
Adriana Lyle, Secretary 			Date 
TCISD Board of Trustees