1701 North Congress Ave. Austin,Texas FAX

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1 1701 North Congress Ave. Austin,Texas FAX April 6, Dr, Carroll Thomas, Superintendent Beaumont Independent School District 3395 Harrison Avenue Beaumont, Texas Subject: Final Investigative Report Dear Dr. Thomas: Enclosed is the final investigative report from Rita Chase, Director of Financial Audits, detailing the findings and required actions resulting from an investigation of Beaumont Independent School District (ISO). On January 18, 2011, the Texas Education Agency (TEA or agency) issued correspondence and a preliminary investigative report (preliminary report). You were given the opportunity to file a written response to the findings and required actions detailed in the preliminary report within 20 business days from the January 18, 2011, date of the TEA correspondence. Beaumont ISD responded to the correspondence and preliminary report in correspondence dated January 21, 2011, January 24, 2011, and February 3, Beaumont ISO correspondence dated January 21, 2011, and January 24, 2011, addressed questions raised in agency correspondence dated January 18, 2011, related to the construction of a hotel and events center by Beaumont ISD. The February 3, 2011 correspondence provided the district's official response to the findings reflected in the preliminary report. The agency has reviewed the district's response to the preliminary report and is issuing a final report. Please note that the enclosed copy of the final investigative report incorporates information from the district's written response to the preliminary report. The agency will continue to monitor the actions of the district with regard to the use of public and/or bond funds. Should you have any questions, please contact Rita Chase in the Division of Financial Audits at (512) Sincerely, Robert Scott Commissioner of Education RS/rc/da Enclosure cc: Beaumont ISD Board of Trustees Members

2 M EMORANDU M TO: THROUGH: THROUGH: FROM: Robert Scott, Commissioner of Education Ray Glynn, Deputy Commissioner School District Leadership & Educator Quality Laura Taylor, Associate Commissioner of Accreditation 3^ Rita Chase, Director of Financial Audits DATE: April 6, 2011 SUBJECT: Investigation of Beaumont Independent School District # Auditors from the Division of Financial Audits reviewed documentation provided by the Beaumont Independent School District (BISD) in response to a complaint received by the Texas Education Agency. This report details the auditors' findings resulting from this review. The exhibits in this report contain illustrations of investigative findings and are not allinclusive. The district's response to the preliminary report is incorporated into this report. This report supersedes the prior report dated January 14, 2011, and reflects the TEA auditors' analysis of BISD's response to the original findings. The auditors ascertained, through verbal inquiries and examination of BISD records, the following: 1. Concern: BISD violated the competitive procurement requirements found in of the Texas Education Code (TEC) when contracting with Walker's Electric Company for work on BISD's construction projects Original Finding: The Financial Audits Division requested that the district provide all competitive procurement documentation for construction projects for which Walker's Electric Company was contracted to perform electrical work. A review of the documentation provided by BISD disclosed that the district sought proposals in 2008 for a job order contract and subsequently awarded Walker's Electric Company to perform electrical work on both new and existing facilities. This contract was renewed in In 2010, a new request for proposal was issued by the district, and a new contract was awarded to Walker's Electric Company. Expenditures paid by BISD as of February 26, 2010, to Walker's Electric Company are summarized in the table below. Based on our review, for the expenditures shaded in the table below, the use of the job order contract method appears to not

3 Rita Chase Aprils, 2011 Page 2 of 5 meet the definition of a job order contract as stated in TEC in that these projects were for major new facilities. Amelia Elementary School Blanchette Elementary School Fletcher Elementary School Westbrook High School Central High School Martin Elementary School King Middle School Regina Elementary School Southpark Middle School Dunbar Elementary School Fehl Elementary School Total $17, $2, $33, $27, $39, $16, $10, $1,459, $1,452, $138, $160, $3,358, In addition, the auditors identified concerns regarding the validity of Walker's Electric Company's license to do electrical work during the construction period involved. Analysis of the district's response to the original finding The district stated that it reorganized its purchasing department in 2010 to allow for more oversight over their procurement process. Additional training will be provided to the director of purchasing to address the use of job order contracts. The district did not address the finding regarding the violation of TEC relating to job order contracts. The district also noted that while Walker's Electric performed work at BISD T a licensed master electrician was employed by the company at all times. Although Walker's Electric claimed that the company had a valid master electrician's license, there is still a question as to whether the master electrician's license was valid. The Texas Department of Licensing and Regulation is investigating this issue. 2. Concern: BISD violated the competitive procurement requirements found in TEC by utilizing the exemptions allowed under TEC (h), which states, "If school equipment, a school facility, or a portion of a school facility is destroyed, severely damaged, or experiences a major unforeseen operational or structural failure, and the board of trustees determines that the delay posed by the contract methods required by this section would prevent or substantially impair the conduct of classes or other essential school activities, then contracts for the replacement or repair of the equipment, school facility, or portion of the school facility may be made by a method other than the methods required by this section."

4 Rita Chase April 6, 2011 Page 3 of 5 Original Findings: 1. On September 13, 2008, Hurricane Ike struck the Beaumont area causing damages to several BISD campuses. On September 25, 2008, the board approved emergency procurement status for the district, which allowed the superintendent to "enter into such expedited procedures necessary to repair damages caused by Hurricane Ike" based on the 'Resolution and Declaration of Official State of Emergency' document signed by the board president and secretary. On February 19, 2009 (see Exhibit A, page 5), the board voted to declare another emergency status and approved the construction contracts for the following projects: a. BISD approved the contract with Healthy Resources Enterprises, Inc., on February 19, 2009, to repair damages at Smith Middle School resulting from Hurricane Ike. The contract was separated into Phase I and Phase II, with construction costs totaling $18,790, and $433, respectively. Analysis of the district's response to the original finding The district responded with an explanation that the contract with Healthy Resources Enterprises, Inc. (HRE) was executed with BISD's interlocal agreement with Choice Facility Partners, a division of Harris County Department of Education (HCDE). The Agency determined that the contract between the district and HRE was classified as a job order contract and expired February 26, The district did not provide verification that this contract was renewed by HCDE. Based on the documentation reviewed by auditors, it is our opinion that the total contract value of $19,224, is beyond the level that would be allowable under a job order contract process, which according to TEC is for "minor construction, repair, rehabilitation, or alteration of a facility if the work is of a recurring nature..." b. On February 19, 2009, the district approved contracts with A&E Electric and Walker's Electric Company for repairs at the Ozen High School football field. The documentation provided by the district disclosed that the district already had plans to replace the light poles at this facility and had approved a contract with A&E Electric to replace them in February According to the district, the replacement was not completed initially because the wrong parts were sent by the manufacturer. The district also indicated that, as a result of damage caused by Hurricane Ike, the original contract with A&E Electric was increased from $95,014 to $786,008. The district also approved a contract with Walker's Electric Company in the amount of $1,236,000 for additional electrical work at the football field. Analysis of the district's response to the original finding

5 Rita Chase Aprils, 2011 Page 4 of 5 The district stated that contracts were executed with A&E Electric and Walker's Electric in August 2008 prior to Hurricane Ike hitting the area in September The district states that the increase in expenditures for services provided by A&E Electric was accomplished by approval of a change order by the board. In accordance with Local Governmental Code , a change order only allows an increase of up to 25% of the project cost, which would allow an increase of up to $118,768 for the contract. The change order far exceeded that amount. The district did not provide verification of the proposal for the additional work by Walker's Electric, and this remains a finding. c. On February 19, 2009, the board approved a contract with SeTex Construction Corporation in the amount of $5,372,896 for Hurricane Ikerelated damages to Martin Luther King Middle School. It appears that, given the time lapse between when Hurricane Ike struck the Beaumont area on September 13, 2008, and the approval of the contracts on February 19, 2009, there would have been sufficient time for the district to utilize one of the competitive construction methodologies found in TEC Analysis of the district's response to the original finding The district reported that it entered into a contract with SeTex for "Phase I - Hurricane Ike Repairs" totaling $1,520,000 in December 2008 for cleanup, repairs, and damage mitigation to prevent further loss and damage to the district. The district stated that it entered into an additional contract with SeTex for additional repairs in February 2009 totaling $5,372,896. Auditors agree that the contract entered into during December 2008 would be allowable under emergency procurement status. However, it is our opinion that the district should not have used the emergency procurement status to bypass the procurement methods outlined in TEC for the work performed under the contract entered into in February It was requested that the district provide competitive procurement documentation in regard to the expenditures made to CMM Construction totaling $57,349 at Lucas Elementary School. In response to this request, the district only provided the following explanation (see Exhibit B) with no additional support, "Lucas: Emergency procurement- Education Code (h) The District received notification from the Fire Department a fire lane was needed on the campus parking lot or the operation would have to cease. It posed a threat to students and public safety and was procured under an emergency." The district did not provide documentation that this expenditure resulted from a board-declared emergency. Additionally, the district's response was not clear as to whether the operation that would have to cease was the construction of the

6 Rita Chase AprilG, 2011 Page 5 of 5 parking lot or the operation of the campus. This expenditure appeared to be the result of a failure of the district to ensure that plans for the parking lot at the Lucas Elementary campus met all local city code requirements. Analysis of the district's response to the original finding In response to the finding, the district stated that, a balance due to CMM Construction of $36,746 was carried forward to Fiscal Year 2009 and $20,603 of the invoice was paid to CMM Construction in FY In this case, the district states that the contract would not fall under the procurement methods outlined in TEC Because, by law, the contract threshold increased from $25,000 to $50,000 effective June 19, However, it appears from the district's response that the contract with CMM Construction was valued at $57,349, which is in excess of the $50,000 threshold. Making payments under a contract in different fiscal years does not exempt the district from the procurement requirements outlined in TEC Also, the change in TEC applies only to contracts executed on or after June 19, 2009; therefore the change in law would not apply to this contract. Required Actions: 1. The district must take the necessary steps to comply with the local, state and federal competitive procurement policies and regulations. In addition, school officials responsible for the procurement process should receive additional training in the area of state and federal procurement rules and regulations. 2. The district should consult its legal counsel concerning the construction activities completed by Walker's Electric Company in light of recent concerns raised relating to the validity of the company's license issued by the Texas Department of Licensing and Regulation. 3. The district must review and update, as necessary, its policies and procedures for procurement and submit them to the agency by April 31, 2011

7 BEAUMONT INDEPENDENT SCHOOL DISTRICT BOARD OF EDUCATION Regular Meeting - February 19, 2009 The Board of Education of the Beaumont Independent School District met in regular public (open) session on Thursday, February 19, 2009 at 7:15 p.m. in the Board Room of the Administration Building of the District located at 3395 Harrison Avenue in Beaumont, Jefferson County, Texas. The meeting was called to order by President Woodrow Reece. It was found and determined that in accordance with the policies and orders of the Board, the Notice of this meeting was posted in the Administration Building of the District in accordance with the terms and provisions of Section and Section , V.T.C.S.. and that all of the terms and provisions of those sections have been fully complied with and that the 72 hour notice required by said sections has been properly and correctly given. ROLL CALL Present: Absent: Woodrow Reece, President Janice Brassard, Vice President Terry Williams, Secretary Martha Hicks, Member (came in at 7:43 p.m.) Dr. William Nantz, Member Howard J. Trahan, Jr., Member Bishop Ollis E. Whitaker, Member School Officials Present: Superintendent, Dr. Carrol A. Thomas; Assistant Superintendents, Mr. Terry Ingram, Dr. Shirley Bonton, Mr. David Harris; Executive Director of Special Education, Dr. Susan Alfred; Executive Director of Personnel, Ms. Sybil Comeaux; Chief Financial Officer, Ms. Jane Kingsley; Executive Director of Communications, Ms. Jolene Ortego; Special Assistant to the Superintendent, Jessie Haynes and Attorney, Melody Chappell Absent: ESTABLISHMENT OF A QUORUM President Woodrow Reece declared a quorum. PLEDGE OF ALLEGIANCE The colors were presented by the Ozen High School NJROTC. The pledges to the United States of America flag and Texas flag were led by Hurbert Briggs, a 5 th grade student at Martin Elementary School. INVOCATION Jennifer Neely, a senior at Ozen High School, gave the invocation. APPROVAL OF THE MINUTES

8 Bishop Ollis Whitaker moved, seconded by Dr. William Nantz to approve the minutes of the special meetings December 8, 2008, January 24, 2009 and the regular meeting January 15, President Reece called for additions or corrections to the minutes, there being none, he called for a vote. NAYS: Mr. Reece, Ms. Brassard, Mr. Williams, Dr. Nantz, Mr. Trahan and Bishop Whitaker REPORTS 1. Status of State Comp Ed Funds Report- submitted electronically REPORT OF THE SUPERINTENDENT OF SCHOOLS 1. Bond 2007 Update - Dr. William Nantz, chairman of the building and grounds committee, reported on the meeting held Monday, February 16, Dr. Thomas updated Trustees on Smith Middle School, King Middle School, Ozen High School track, Ozen High School light poles, proposed recommendations for construction managers at risk for the last set of 3 prototypical elementary schools, and the classroom additions and laboratories at Austin, Marshall, Vincent and Homer Drive. Dr. Thomas also proposed for consideration the combining of Bingman Elementary School and Blanchette Elementary School as one school beginning the school year and moving Fehl Elementary School to the Blanchette "portable" Campus beginning the school year. Also reported to Trustees was the fact that auditoriums were not a part of the construction design for the prototypical elementary schools; however, each school would have a gymnasium with a stage design with adequate chairs stored at each site. Dr. Thomas shared the transition of students' procedures for Martin Elementary, Blanchette Elementary, and South Park Middle School. REPORT OF THE PRESIDENT OF THE BOARD Mr. Woodrow Reece, president of the board, asked Dr. Thomas to explain the information about the educational stimulus the district is expected to receive. Dr. Thomas explained the projected $9 million would be scheduled to be appropriated to Title I and special education- President Reece read the State Board of Education rule that mandates school boards across Texas report to the public the number of continuing education hours accumulated and any deficiencies that might exist by a single member. Each member reported personally accrued hours: Woodrow Reece 10.0 hrs Janice Brassard hrs. Terry Williams 10.0 hrs. Martha Hicks 10.0 hrs. Dr. William Nantz 10.0 hrs. Howard J. Trahan, Jr hrs. Bishop O. E. Whitaker 10.0 hrs. There were no deficiencies to report. COMMUNICATIONS

9 1. LaTye Hatcher, 2350 Kings Court, spoke to Trustees about the West Brook High School basketball program and his opinion that the coach is not doing an acceptable job and students do not have the role model they need. SIGN-UP NONE ACTION ITEMS APPROVAL OF EXHIBITS "A.1", "A.2", A.3", "B", "C", and "D" Dr. William Nantz moved, seconded by Mr. Terry Williams, to approve Exhibits "A.1", "A.2", "A.3", "B", J C", and "D". Tax Collection Report Exhibit "A.1") - Administration recommended acceptance of the Tax Collection Report in the amount of $67,580, including certification of tax collection for the month of January 2008 tax collector monthly report of January 2008; and deposit distribution of January (Copy of Certification of Tax Collection Report attached and made a part of these minutes.) Business Office Report (Exhibit "A.2") - Administration recommended approval of the Business Office Report, including the general fund reports, January 2008, debt service reports, January 2008, capital projects report, January 2008, internal service funds January 2008; scholarship fund report, January 2008; investment report, January Amendments to Budget (Exhibit "A.3") - Administration recommended approval of amendments to the following budgets: 199/9 General Fund # /9 ESEA Title IV Safe and Drug Free Schools # /9 ESEA Title I Part A Improving Basic Programs # /9 ESEA Title II Part A TPTR # /0 State Supplemental Visually Impaired # /9 Optional Extended Year Program # /9 Texas Fitness Now # /9 High School Allotment -Ozen #062 Approved the Schedule of Events for the Beaumont Independent, School District Unlimited Tax School Building Bonds. Series 2009 (Exhibit "B") - Administration recommended approval tentative schedule of events in the preliminary amount of $116,570,000 prepared by the district's financial advisors, RBC Dain Rauscher. Approved Bids for School Leaders Errors & Omissions Insurance and Law Enforcement Liability Insurance Coverage (Exhibit "C") - Request for proposals were distributed to twelve (12) companies in addition to the appropriate advertisements. There were three (3) responses. Administration recommended acceptance of the proposal from USI/National Union Fire in the amount of $47,421for School Leaders Errors & Omissions Insurance and USI/Lexington in the amount of $20,881 for Law Enforcement Liability Insurance Coverage. Approved Submission of E-Rate Cycle 12 Application (Exhibit "D") - Administration recommended approval of submission in a total estimate of $1,361,400 and the discounted amount that Beaumont ISO will pay at approximately $172,980. President Reece called for additions or corrections to the motion, there being none, he called fora vote. Mr. Reece, Ms. E3rassard, Mr. Williams. Dr. Nantz, Ms. Hicks, Mr. Trahan and Bishop Whitaker

10 NAYS: APPROVAL OF EXHIBITS "E", "F", "G", "H", "I", "J", and "K" Dr. William Nantz moved, seconded by Mr. Terry Williams, to approve Exhibits "E", "F", "G", "H", "1", "J", and "K". Approved Bids for Term Contract for Paper - Print Shop (Exhibit "E") - Bid packets were distributed to Two (2) companies in addition to the appropriate advertisements. There were two (2) responses. Administration recommended acceptance of the bids from Olmsted Kirk and Bosworth Paper charged to various appropriated funds. {Bids are on file in the Purchase Department.) Approved Bid for Term Contract for Paint (Exhibit "F") - Bid packets were distributed to six (6) companies in addition to the appropriate advertisements. There were four (4) responses. Administration recommended acceptance of the bid from McCown Paint charged to the Maintenance Department. (Bids are on file in the Purchase Department.) Approved Bids for Term Contract for Janitorial Supplies (Exhibit "G") - Bid packets were distributed to thirty-one (31) companies in addition to the appropriate advertisements. There were nineteen (19) responses. Administration recommended acceptance of the bids from Quest Cleaning and Sanitary Supply charged to the Maintenance Department. (Bids are on file in the Purchase Department.) Approved Bids for Term Contract for Doors and Hardware Supplies (Exhibit "H^} - Bid packets were distributed to five (5) companies in addition to the appropriate advertisements. There were nineteen (19) responses. Administration recommended acceptance of the bids from IDN Acme, Acme Architectural Hardware and Beaumont Architectural charged to the maintenance Department. (Bids are on file in the Purchase Department.) Approved Re-Advertise for Bids T for Term Contract for Roofing Products (Exhibit I") - Bids were solicited for roofing products, no bids were received. Approved Bids for Term Contract for Ballasts and Fixtures (Exhibit "J") - Bid packets were distributed to six (6) companies in addition to the appropriate advertisements. There were four (4) responses. Administration recommended acceptance of the bids from Voss Lighting and Grainger Industrial Supply charged to the Maintenance Department. (Bids are on file in the Purchase Department.) Approved Bids for Term Contract for Audio Visuaj (Exhibit"K") - Bid packets were distributed to seventeen (17) companies in addition to the appropriate advertisements. There were nine (9) responses. Administration recommended acceptance of the bids from Voss Lighting and VSA, Inc. charged to current Media Department and current Maintenance Department appropriated funds. (Bids are on file in the Purchase Department.) President Reece called for additions or corrections to the motion, there being none, he called for a vote. NAYS: Mr. Reece, Ms. Brassard, Mr. Williams, Dr. Nantz, Ms. Hicks, Mr. Trahan and Bishop Whitaker APPROVAL OF EXHIBITS "L.1", L.2", "L.3", "M.1", "M.2", "M.3", "N.1", "N.2" and "O"

11 Dr. William Nantz moved, seconded by Mr. Terry Williams, to approve Exhibits "L.1", L.2", "L.3", "M.1", "M.2", "M.3", "N.1". "N.2" and "O" Approved Bid for Received from Interlocal Cooperative Agreement Purchase No for Scoreboard, through TASB BuvBoard (Exhibit "L.1"l - Administration recommended acceptance of bid from Olen Williams Inc/FairPlay in accordance with Texas Education Code Chapter (b) funded by insurance, FEMA and district funds. (Bids are on file in the Purchase Department.) Approved Bid for Received from Interlocal Cooperative Agreement Purchase No. 2QQ9-1Q1 for Windscreen, through TASB BuvBoard (Exhibit "L.2"l - Administration recommended acceptance of bid from Lisco, LLP in accordance with Texas Education Code Chapter (b) funded by insurance, FEMA and district funds. (Bids are on file in the Purchase Department.) Approved Bid Received from Interlocal Cooperative Agreement Purchase No Janitorial Equipment, through the TASB BuvBoard {Exhibit "L3"l - Administration recommended acceptance of bid from Sanitary Supply Company in accordance with Texas Education Code Chapter (b) funded by Maintenance Department appropriated funds. (Bids are on file in the Purchase Department.} Approved a^revision of Contract f'or the Running Track alqzen High School (Exhibit "M.1"l - Administration recommended approving change order to contract approved at the December 15, 2009 at a cost of $118,700 plus $30,000 for jump pits in the amount of $166,300 with Defargo Sports Surfaces for additional work required for the sub-surface which was found to be in need of replacement. Declared an Emergency to Apj3 oye Jhe Rep acem Ozen High School Athletic Fields Doe to Hurricane Damage (Exhibit "M.2" - Administration recommended approval of proposal from Walker Electric for replacement of Softball and baseball lights in the total amount of $1,236,000 and the proposal from A & A Electric for additional repair work in the amount of $690,994. Declared Emergency Status for Actions Taken as a Result of Hurricane Ike (Exhibit "M,3" 1 - Administration recommended approval of emergency measures instituted in order to control and mitigate damages: Cotton Scaffolding Charges $192, Hampshire Roofing Outdoor Ed Roof Replacement $ 33, A-1 Acoustics Guess Porch Ceiling Replacement $ 79, Approved the Contract for Repairs to MartjnJ-uthej^Klng Middle Schpgl Due to Hurricane Damage(Exhibit "N.1") - Administration recommended approval of the contract for repairs to Martin Luther King Middle School for Hurricane!ke damages in the total amount of $5, with SeTex Construction Corporation funded by insurance, FEMA and district funds. Approved the Contract for Repairs to Willie Ray Smith Middle School Due to Hurricane Damage (Exhibit "N.2") - Administration recommended approval of contract for repairs to Willie Ray Smith Middle School for Hurricane Ike damages in the total amount of $19,224, funded by insurance proceeds, FEMA and district funds. Approved Bid Received from Interlocal Cooperative Agreement Purchase No for Tractor, through HGAC (Exhibit "O") - Administration recommended acceptance of bid from Eastex Farm & Home in accordance with Texas Education Code Chapter (b) funded by budgeted departmental funds. (Bids are on file in the Purchase Department.)

12 President Reece called for additions or corrections to the motion, there being none, he called for a vote. NAYS: Mr. Reece, Ms. Brassard, Mr. Williams, Dr. Nantz, Ms. Hicks, Mr. Trahan and Bishop Whitaker APPROVAL OF EXHIBITS "P", "Q", "R.1", "R.2", and "S" Dr. William Nantz moved, seconded by Bishop Ollis Whitaker, to approve Exhibits "P","Q", "R.1", "R.2" and "S". Approved the InterlocaLQpoperative Agreement Purchase for a Fuel Service Contract (Exhibit "P"l - Administration recommended approval of agreement as pilot program with Comdata Corporation and TransMontaigne Services available through the State Council on Competitive Government (CCG). Approved the Proposed Recommendation for the Construction Manager at Risk for the New Classrooms and Laboratories for Three^xjstinq Middle Schools and One Elementary School at Austin Middle School. Marshall Middle School. Vincent Middle School and Homer Drive Elementary RFP 090Q2B (Exhibit "Q"l - Administration recommended approval of Fibrebond Corporation based on the evaluation by the selection committee through the RFP process and interview conducted December 11, Approved Combining Bingman Elementary School and Blanchette Elementary School as One School Beginning the 2Q School Year (Exhibit "R.1"l - Administration recommended combining the two schools as one school beginning the school year.. Approved Moving Fehl Elementary School Campus to the Blanchette "Portable" Campus Beginning in the School Year (Exhibit "R.2") - Administration recommended moving Fehl Elementary School campus to the Blanchette "portable" campus beginning the school year. President Reece called for additions or corrections to the motion, there being none, he called for a vote. Approved the Academic Excellence Indicator System faeisl Report, the Campus Comparison Improvement Reports, the Campus Performance Objectives, the Student Performance in Postsecgndarv Institutions Report: the Accountability for Safe Schools Report, the Violent and Criminal Incidents Report: and the School Report Cards (Exhibit "S") - Administration recommended approval of all reports submitted electronically. President Reece called for additions or corrections to the motion, there being none, he called for a vote. NAYS: Mr. Reece, Ms. Brassard, Mr. Williams, Dr. Nantz, Ms. Hicks, Mr. Trahan and Bishop Whitaker APPROVAL OF EXHIBIT "T" Dr. William Nantz moved, seconded by Bishop Ollis Whitaker to approve Exhibit "T". Approved the Purchase of an internet Protocol (IP) Phone Support Maintenance Contract with Calence Insight Networking Solutions (Exhibit "T") - Administration recommended approval of request to purchase contract with Calence Insight Networking Solutions for the period of February 1, 2009 through EXHIBIT A, PAGE 6

13 June 30, 2009 at a cost of $47, funded by the general fund phone maintenance budget. President Reece called for additions or corrections to the motion, there being none, he called for a vote. NAYS: Mr. Reece, Ms. Brassard, Mr. Williams, Dr. Nante, Ms. Hicks, Mr. Trahan and Bishop Whitaker APPROVAL OF EXHIBIT "U" Dr. William Nantz moved, seconded by Mr. Terry Williams to approve Exhibit "U". Approved Proposed Recommendation of Daniel's Construction as Construction Manager at Risk (SMAR1 for Three New Elementary School Prototypes, pending Agreement on Contract Terms and Approval of Subcontractors (RFPL i fexhibit "U") - Administration recommended approval to authorize the Superintendent to begin contract negotiations awarding contract for three (3) Elementary School Prototypes (as listed in the RFP) to Daniels Construction pending agreement contract terms and approval of subcontractors. President Reece called for additions or corrections to the motion, there being none, he called for a vote. NAYS: Mr. Reece, Ms. Brassard, Mr. Williams, Dr. Nantz, Ms. Hicks, Mr. Trahan and Bishop Whitaker APPROVAL OF EXHIBIT "V", "W.1", "W.2" and "X" Dr. William Nantz moved, seconded by Ms. Martha Hicks to approve Exhibit "V", "W.r, "W.2" and "X". Approved Building of M\ Elementary Schools According to Prototypical Design (Exhibit "V"l - Administration recommended construction of all elementary school prototypes as designed, which means schools will not have auditorium; instead, they will have a gymnasium with a stage design and sufficient chairs available at each campus. Approved Resolution -_Joint Election city of Beaumont grid Beaumont ISP Trustee {Exhibit "W.1") - Administration recommended approval of resolution for a May 9, 2009 election for Trustee Districts IV, VI, and VII Approved Election Order and Notice for May School Trustee Election {Exhibit "W.2"l - Administration recommended approval of order and notice for the May 9, 2009 election for Trustee Districts IV, VI and VII. Approved the Request for Maximum Class Size Waiver (Exhibit Administration recommended approval of waiver request for Caldwood Elementary, Level 1 and Price Elementary, Level 1 as required by Texas Education Agency (TEA). PERSONNEL President Reece announced in the public (open) meeting at 8:00 p.m. that the Board would go into executive (closed) session to discuss matters of the sort described in Section (1}(2), and Section (a) (1) of Texas Government Code, therefore, and action taken by the Board would be in public (open) session.

14 In open session at 8:10 p.m. Mr. Terry Williams motioned, seconded by Bishop Ollis Whitaker to accept the following personnel recommendations: 1. Retirements Jolene Ortego, Administration Building, Executive Director of Communications, effective January 30, 2009; Marian Strode, Guess Elementary, Level 1, effective June 6, 2009; Joyce L. Young, Dunbar Elementary, Reading Interventionist, effective June 6, Resignations Kandyce Ashworth, English, Central High, effective February 13, 2009; William R. Atwell, Sign Language, West Brook High, effective June 6, 2009; Sebrena Dollar, Level 3, Regina Howell Elementary, effective June 6, 2009; Bruce B. Edwards, health and Physical Education, Odom Academy, effective January 30, 2009; JoAnne Eugene, Science. Austin Middle, effective January 27, 2009; Donald Stowers, Health and Physical Education, Campus Coordinator, Central High, effective January 30, 2009; Todd Waiters, Business, central High, effective January 30, New Employee Contract Recommendations Letasha Brachett, Business, Brown, effective January 14, 2009 and ending June 6, 2009; Alton Buxton, Physical Education, Amelia Elementary, effective January 13, 2009 and ending June 6, 2009; Alicia Harding, Level 1, Ogden Elementary, effective January 26, 2009 and ending June 6, 2009; Wade Merendino, Social Studies, Odom Academy, effective February 10, 2009 and ending June 6, 2009; Trinidad Paniaqua, Spanish, Odom Academy, effective January 13, 2009 and ending June 6, 2009; Christopher Pirnie, Social Studies, Ozen High, effective February 10, 2009 and ending June 6, 2009; Veronica Ramsey, Pre-kindergarten, Dunbar Elementary, effective January 26, 2009 and ending June 6, 2009; Christopher Woodall, Mathematics, West Brook High, effective January 26, 2009 and ending June 6, President Reece called for additions or corrections to the motion, there being none, he called for a vote. Mr. Reece, Ms. Brassard, Mr. Williams, Dr. Nantz, Mr. Trahan and Bishop Whitaker EXHIBIT A, PAGE

15 NAYS: 4. Administrative Contract Recommendations Bishop Ollis Whitaker, seconded by Mr. Terry Williams to accept the following administrative contract recommendation: Head Coach/Campus Coordinator - Central High School - Mr. Andrew Washington President Reece called for additions or corrections to the motion, there being none, he called for a vote. NAYS: Mr. Reece, Ms. Brassard, Mr. Williams, Dr. Nantz, Mr. Trahan and Bishop Whitaker ADJOURNMENT President Reece asked if there was any other business to come before the board; there being none, the meeting was adjourned at 8:14 p.m. February 19, Woodrow Reece, President Beaumont ISO Board of Trustees Terry D. Williams, Secretary Beaumont ISO Board of Trustees

16 BEAUMONT INDEPENDENT SCHOOL DISTRICT Beaumont, Texas CMM Construction Bingham Notes: Informal quotes (3) three were received for asphalt parking lot Lucas: Emergency procurement- Education Code (h) The District received notification from the Fire Department a fire lane was needed on the campus parking lot or the operation would have to cease. It posed a threat to students and public safety and was procured under an emergency.. EXHIBIT B