THE SCHOOL BOARD OF VOLUSIA COUNTY, FLORIDA

THE SCHOOL BOARD OF VOLUSIA COUNTY, FLORIDA MINUTES - REGULAR SESSION JULY 29, 2008 Call to Order, Pledge and District Vision Statement The regular meeting of the School Board of Volusia County, Florida was called to order by Chairman Judy Conte at 4:00 p.m. Tuesday, July 29, 2008, at the DeLand Administrative Complex, 200 North Clara Avenue, DeLand, Florida, and opened with the Pledge of Allegiance to the Flag. Ms. Conte recognized Ms. Judy Andersen, former school board member, in attendance. Mr. Schmidt recited the district Vision Statement and commented that it would take all contributing to succeed through these difficult times. Present: Dr. Margaret A. Smith, superintendent; Mr. Ted Doran, school board attorney; and the following board members: Ms. Judy Conte, District 4, Chairman Mrs. Diane Smith, District 5, Vice Chairman Dr. Al Williams, District 2 Ms. Candace Lankford, District 1 Mr. Stan Schmidt, District 3 Approval of the Minutes Action: Approval of June 24, 2008, Regular School Board Meeting minutes. Motion: Moved by Dr. Williams, seconded by Mrs. Smith and carried unanimously. Approval of the Volusia County School Board Leasing Corporation Minutes Chairman Conte recessed the Regular Meeting of the Volusia County School Board and convened a meeting of the Volusia County School Board Leasing Corporation for the purpose of approving the minutes. Action: Approval of June 24, 2008, Leasing Corporation Meeting minutes. Motion: Moved by Ms. Lankford, seconded by Mr. Schmidt and carried unanimously. Chairman Conte adjourned the meeting of the Volusia County School Board Leasing Corporation and reconvened the Regular Meeting of the Volusia County School Board. Agenda Changes 1. Added Consent Agenda Item 2-e-17 Facilities Services, The superintendent recommends approval of Change Order Number 2 (add) to the construction contract for HVAC Renovation, Phase 2 at Sugar Mill Elementary, Port Orange, Florida, (Sabiston Engineering Group), (LCIF fund balance). The information was not available when the agenda was printed. 2. Deleted Consent Agenda Item 2-g-1 Administrative Services-School Way Café, The superintendent recommends approval to enter into a contract between the School Board of Volusia County and the Basilica School of St. Paul, to provide lunches, effective August 18, 2008, through June 5, 2009. The school is not participating in the National School Lunch/Breakfast programs this year. 3. Added Agenda Item 10 Consideration of Proposed Settlement in D.J. Haycook Construction Company v. The School Board of Volusia County, Florida, et. al., Case No. 2004-10968-CIDL. The school board will consider the proposed settlement reached in mediation in D.J. Haycook Construction Company v. The School Board of Volusia County, Florida, et. al., Case No. 2004-10968-CIDL. Presented by Mr. Richard Kizma, Chief Counsel, and Mr. Ted Doran, School Board Attorney. The information was not available when the agenda was printed. 4. Added Agenda Item 22.a. Approval for Emergency, Temporary Adoption and Approval to Advertise Amendments to School Board Policy 210 Admission of Students in a Home Education Program. a. The superintendent recommends approval of emergency,

July 29, 2008 Page 2 temporary adoption of amendments to School Board Policy 210 Admission of Students in a Home Education Program, which is included in the district s Policy and Procedures Manual. This emergency adoption will expire on October 27, 2008. b. The superintendent recommends approval to advertise amendments to School Board Policy 210 Admission of Students in a Home Education Program, which is included in the district s Policy and Procedures Manual. Presented by Mr. Richard Kizma, Chief Counsel. The information was not available when the agenda was printed. The chairman found the changes were for good cause. Public Participation for Approval Items The following each expressed appreciation to Superintendent Smith for her leadership, decisiveness, support of innovation, collaborative style and personal commitment and integrity: Dr. Rick Inge, principal of Sugar Mill Elementary and president of the Volusia Association of School Administrators; Dr. Carol Kelley, principal of New Smyrna Beach High; and Ms. Vickie Presley, principal of Campbell Middle. Consent Agenda Action: Approval of the school board agenda in its entirety as well as all proposed actions within the consent agenda, as follows. Motion: Moved by Ms. Lankford, seconded by Mr. Schmidt and carried unanimously. Curriculum and School Improvement Services 1. The 2007-2008 School Advisory Council Membership change from Burns Oak Hill Elementary. 2. Agreement between the School Board of Volusia County, Master Professional Services and FACTS Management Company to collect fees for the fee based prekindergarten program and forward them to the school board, recorded as Supplemental Minute Book (SMB) No. 4394. There is a $38.00 fee for each family in the program but no cost to the school district. 3. Agreement with the University of Central Florida (UCF) to provide for an internship program in the school district for UCF students in the Communicative Disorders program at no cost to the district. 4. Agreement with Seminole County to act as the data manager and data processor for the School Board of Volusia County for the Medicaid Administrative Claiming reimbursement process, recorded as SMB No. 4395. 5. Agreement with the University of Central Florida to provide social work internship positions in the school district at no cost to the district. 6. Agreement with Behavior Change Artists, Inc. to provide behavior services for students with disabilities, including students with autism, and their professional staff, recorded as SMB No. 4396. The cost of $1,571,544.60 will be paid from IDEA funds. 7. Agreement with the University of Central Florida to provide two psychology internship positions in the school district at a cost to the district of $42,818.00, recorded as SMB No. 4397. 8. Agreement with Behavior Change Artists, Inc. to provide a behavior technician for a high school student with disabilities at a cost to the district of $37,125.00, recorded as SMB No. 4398. Programs/Grants Development Services 1. Submittal to the American Water Resources Association Florida Chapter a J.B. Butler Science Grant application benefiting students participating in the Volusia County Schools Environmental Science Learning Program for the 2008-2009 school year in the amount of $500.00 and authorized necessary budget amendments. 2. Contract with A+ Tutoring, Inc. of 617 South Yonge Street, Ormond Beach, Florida, whereby A+ Tutoring will provide tutoring services to non-public school students for the

July 29, 2008 Page 3 2008-2009 school year in the amount not to exceed $117,072.10, recorded as SMB No. 4399. 3. Contract with Academic Resource Center of 610 Newton Road, Port Orange, Florida, whereby Academic Resource Center will provide tutorial services to public school-aged children at Children s Home Society for the 2008-2009 school year in an amount not to exceed $18,000.00, recorded as SMB No. 4400. Personnel Services The following as recorded in the Supplemental Minute Book for Personnel: 1. Listed instructional, support and managerial/non-bargaining personnel appointments, transfers, leaves of absence, suspension, resignations and separation. All vacant positions outside of the classroom and not directly related to student health and safety are subject to intensive review prior to being filled. 2. Reappointment of the listed school-based non-bargaining personnel. 3. Reappointment of the listed annual contract teachers. 4. Reappointment of the listed annual contract American Federation of State, County and Municipal Employees (AFSCME) personnel. 5. Reappointment of the listed annual contract Volusia Educational Support Association (VESA) personnel. 6. Appointment of the listed summer school personnel. 7. The 2008-09 Volusia County Teacher Assessment System Handbook, recorded as SMB No. 4401. Financial Services 1. RFP No.: S-894FIN Financial Advisory Services, recorded in the Supplemental Minute Book for Bids, and to negotiate and enter into a contract with Public Financial Management, Inc. for Financial Advisory Services. 2. Correction to Consent Agenda Item 2-d-4 dated June 24, 2008: The superintendent recommends approval of the asset retirement for June representing fixed assets assigned a final disposition between February 1, 2008 and April 30, 2008. The Scrapped, Sold, and Used for Parts categories are from information provided by Surplus Warehouse, MIS, PC Warehouse and Transportation. Disposition Acquisition Cost Depreciated Value Donation 2,465 226 Missing 107,176 24,780 Scrapped 680,717 25,759 Sold 3,776,062 92,622 Stolen 19,925 3,062 Traded In 182,158 7,141 Used for Parts 50,261 6,110 Total Cost $ 4,818,764 $ 159,700 Included in the sold category are computers, computer peripherals, vehicles and miscellaneous obsolete equipment at an acquisition cost of $3,776,062 with a depreciated value of $92,622; $208,310 has been received from sale of a portion of these items. Facilities Services 1. Distribution Easement to Progress Energy for the electrical service to T.D. Taylor Middle- High, Pierson, Florida, recorded as SMB No. 4402. 2. Amendment No. 1 to establish the Guaranteed Maximum Price for the replacement facility project at Daytona Transportation, Daytona Beach, Florida, as submitted by Wharton-Smith, Inc., Sanford, Florida, (drawings and specifications by Borrelli & Partners), (June 28, 2006 board meeting), (LCIF), recorded as SMB No. 4403.

July 29, 2008 Page 4 3. Agreement with Welbro Building Corporation, Maitland, Florida, for construction management services for the eleven classroom addition at Indian River Elementary, Edgewater, Florida, recorded as SMB No. 4404. 4. Agreements with the following firms to provide engineering testing services and environmental phase I audits for various projects that occur over a one-year period in accordance with School Board Policy No. 602, recorded as SMB No. 4405. a. Ardaman & Associates, Inc., Orlando, Florida; b. Nodarse & Associates, Inc., Ormond Beach, Florida; c. Universal Engineering Sciences, South Daytona, Florida. 5. Declared an emergency for the following projects, in accordance with State Requirements for Educational Facilities, Section 4.1(4): a. Gym ceiling moisture remediation at New Smyrna Beach High, New Smyrna Beach, Florida. The estimated cost for this project is $55,000; b. Site work/storm water management at Ortona Elementary, Daytona Beach, Florida. The estimated cost for this project is $50,000. 6. Renewal of agreements for the following firms to provide professional services for various projects, countywide in accordance with School Board Policy No. 602. a. Bay to Bay Balancing, Inc., Lutz, Florida, to provide test and balance services for heating, ventilation, and air conditioning systems; b. Simes & Rosch, LLC, Jacksonville, Florida, to provide electrical engineering services. 7. Certificate of Qualification, in accordance with the Consultants Competitive Negotiation Act, for Air Balance Unlimited, Inc., Altamonte Springs, Florida, to provide test and balance engineering services. 8. Renewal of the following Certificates of Qualification, in accordance with the Consultants Competitive Negotiation Act: a. BRPH Architects-Engineers, Inc., Melbourne, Florida, to provide structural, civil, mechanical and electrical engineering and architectural services; b. CPH Engineers, Inc., Orlando, Florida, to provide civil engineering, structural engineering, environmental engineering, architectural and land surveying services; c. Simes & Rosch, LLC, Jacksonville, Florida, to provide mechanical engineering and electrical engineering services; d. TLC Engineering for Architecture, Cocoa, Florida, to provide structural, mechanical and electrical engineering services; e. WBQ Design and Engineering, Inc., Orlando, Florida, to provide civil engineering services. 9. Renewal of the following Certificates of Prequalification, in accordance with School Board Policy No. 604: a. Ajax Building Corporation, Clermont, Florida, for general construction projects; b. Ajax Construction, Inc., Ocala, Florida, for general construction projects; c. Bel-Mac Roofing, Inc., Rockledge, Florida, for roofing projects; d. Cheesbro Roofing, Inc., Ormond Beach, Florida, for roofing projects; e. Clancy & Theys Construction Company, Orlando, Florida, for general construction projects; f. Coastal Mechanical Services, LLC, Melbourne, Florida, for mechanical projects; g. Collis Roofing, Inc., Longwood, Florida, for roofing projects; h. Gulfstates Industries, Inc., New Port Richey, Florida, for roofing projects; i. Hensel Phelps Construction Company, Orlando, Florida, for general construction projects; j. James A. Cummings, Inc., Orlando, Florida, for general construction projects; k. Lake Mechanical Contractors, Inc., Eustis, Florida, for mechanical projects; l. Marbek Construction Company, Clermont, Florida, for general construction projects; m. R.F. Lusa & Sons Sheetmetal, Inc., Lakeland, Florida, for roofing projects; n. Weathershield Coatings, Inc., Longwood, Florida, for roofing projects; o. Welbro Building Corporation, Maitland, Florida, for general construction projects; p. Wharton-Smith, Inc., Lake Monroe, Florida, for general construction projects.

July 29, 2008 Page 5 10. Final construction documents (phase III) drawings and specifications for the following construction projects: a. Roof replacement at Central Warehouse, DeLand, Florida, (Gale Associates), (LCIF). Current construction cost estimate is $75,000 and available funds are $72,190. A budget amendment may be required for award of contract from the capital fund balance; b. Classroom addition at Forest Lake Elementary, Deltona, Florida, (Hawkins, Hall & Ogle Architects), (classroom for kids). Current construction cost estimate is $2,350,000 and available funds are $2,278,976. A budget amendment may be required for award of contract from the capital fund balance. 11. Acknowledgment of administratively approved Proposal No. 2CQ-815, shingle roof replacement at McInnis Elementary, DeLeon Springs, Florida, (Gale Associates), (LCIF), (drawings and specifications approved by the school board on May 27, 2008), recorded in the SMB for Bids. 12. Presentation of tabulation and recommendation of Bid No. 2C-816, shingle roof replacement at George Marks Elementary, DeLand, Florida, (Gale Associates), (LCIF), (drawings and specifications approved by the school board on May 27, 2008), recorded in the SMB for Bids. (Bid was awarded to one local contractor for a total value of $126,950.00). 13. Acknowledgment of the following administratively approved Change Orders, in accordance with School Board Policy No. 608: a. Change Order Number 9 (add) to the construction contract for 9 classroom addition at Chisholm Elementary, New Smyrna Beach, Florida, (BRPH Architects-Engineers), (classroom for kids), which was administratively approved July 8, 2008; b. Change Order Number 21 (add) to the construction contract for new construction at High School DDD, Orange City, Florida, (Schenkel Shultz Architecture), (COPS), which was administratively approved June 25, 2008; c. Change Order Number 39 (add) to the construction contract for replacement school at New Smyrna Beach High, New Smyrna Beach, Florida, (Schenkel Shultz Architecture), (sales tax revenue bond fund balance), which was administratively approved June 25, 2008; d. Change Order Number 6 (add) to the construction contract for 9 classroom addition at Spruce Creek Elementary, Port Orange, Florida, (Hawkins, Hall & Ogle Architects), (classroom for kids fund balance), which was administratively approved June 16, 2008; e. Change Order Number 7 (add) to the construction contract for 9 classroom addition at Spruce Creek Elementary, Port Orange, Florida, (Hawkins, Hall & Ogle Architects), (classroom for kids fund balance), which was administratively approved June 16, 2008; f. Change Order Number 1 (add) to the construction contract for fire sprinkler additions at Woodward Elementary, DeLand, Florida, (Parker Stephens, Inc.), (LCIF fund balance), which was administratively approved June 25, 2008. 14. The following Change Orders: a. Change Order Number 15 (add) to the construction contract for master plan, phase IV at DeLand High, DeLand, Florida, (sales tax/sales tax revenue bond fund balance); b. Change Order Number 3 (add) to the construction contract for new agriculture buildings at Deltona Middle and Deltona High, Deltona, Florida, (LCIF fund balance); c. Change Order Number 23 (add) to the construction contract for new construction at High School DDD, Orange City, Florida, (COPS fund balance); d. Change Order Number 17 (add) to the construction contract for new construction at Middle School DD, Orange City, Florida, (COPS fund balance); e. Change Order Number 2 (add) to the construction contract for HVAC upgrade, phase 1 at Sugar Mill Elementary, Port Orange, Florida, (Sabiston Engineering Group), (LCIF fund balance);

July 29, 2008 Page 6 f. Change Order Number 3 (add) to the construction contract for HVAC upgrade, phase 1 at Sugar Mill Elementary, Port Orange, Florida, (Sabiston Engineering Group), (LCIF fund balance). 15. Certificates of Substantial Completion for the following construction projects: a. Replace locks at Deltona High, Deltona, Florida, (Facilities Architectural Services), (LCIF); b. Site improvements at Enterprise Elementary, Enterprise, Florida, (Klima Weeks Civil Engineering), (sales tax); c. HVAC renovation at McInnis Elementary, DeLeon Springs, Florida, (Parker Stephens, Inc.), (LCIF); d. Additions & renovations at South Daytona Elementary, South Daytona, Florida, (Daimwood Derryberry Pavelchak Architects), (sales tax); e. Track renovations at Spruce Creek High, Port Orange, Florida, (Hawkins, Hall & Ogle Architects), (LCIF); f. Campus replacement, building 10 at T.D. Taylor Middle/High, Pierson, Florida, (BRPH Architects-Engineers), (sales tax). 16. Certificates of Final Inspection for the following construction projects: a. Campus wide renovations at Blue Lake Elementary, DeLand, Florida, (Strollo Architects), (sales tax revenue bonds); b. Additions & renovations at South Daytona Elementary, South Daytona, Florida, (Daimwood Derryberry Pavelchak Architects), (sales tax). 17. Change Order Number 2 (add) to the construction contract for HVAC Renovation, Phase 2 at Sugar Mill Elementary, Port Orange, Florida, (Sabiston Engineering Group), (LCIF fund balance). Management Information Services 1. Renewal of the Trend Micro license and maintenance support with ICN Security & Networking. This suite of products provides anti-virus, anti-spam, anti-spyware, antiadware, anti-grayware (imbedded internet based control mechanisms) protection. This is an enterprise-wide suite of products that provides these protections for all workstations and servers. This is a 2008-2009 renewal of a General Fund expense in the amount of $73,500.00. 2. Renewal of the existing Student System software maintenance agreement with CrossPointe, LLC effective August 1, 2008 thru July 31, 2009. This is a renewal of a General Fund expense in the amount of $171,800.00. 3. Renewal of the existing Application and Human Resources Management software maintenance agreement with CrossPointe, LLC effective September 1, 2008 thru August 31, 2009. This is a renewal of a General Fund expense in the amount of $180,890.00. 4. Renewal of the agreement with Scholastic Inc. for Read 180 Basic Building Technical Support and Maintenance. This product is utilized in middle schools, high schools and alternative school sites. This is a renewal of a General Fund expense in the amount of $25,500.00. 5. Renewal of the software service and support agreement with Follett Software Company for school year 2008-2009. This circulation software is utilized in every school library to catalog, inventory and check-out/in library books/material. This is a renewal of a General Fund expense in the amount of $27,489.00. 6. Renewal of the Internal Accounts Software System agreement with Blue Bear Software for school year 2008-2009. This system is utilized by Financial Services Site Accounting to manage, monitor and audit the schools use of internal accounts. This is a renewal of a General Fund expense in the amount of $35,108.63. 7. Renewal of the software license agreement with Scantron Corporation for the Achievement Series System. This system is utilized by classroom teachers and district level curriculum specialists to create, score and analyze subject area tests. Likewise, school and district level administrators have access to individual classroom analytics. The system complements individual course curriculum maps, end of course exams, and

July 29, 2008 Page 7 is an essential element in development formative assessments to guide individual student development. This is a renewal of a General Fund expense in the amount of $290,250.00 for school year 2008-2009. 8. Agreement with TMT Software to acquire their Transman for Windows product to provide fleet maintenance software support for the Transportation Department, recorded as SMB No. 4406. This product will replace the existing ELKE system. This is a Capital Fund expense and provides both software and conversion assistance. Estimated cost is $124,088.00 plus travel expenses. 9. Renewal of the agreement with Follett Software Company for the Destiny Textbook Manager licenses. This product provides an automated centralized textbook management solution for the middle and high schools through July 31, 2009. This is a renewal of a General Fund expense in the amount of $10,050.00. 10. Software agreement with Follett Software Company for their Destiny Resource Management Solution, recorded as SMB No. 4407. This product will support the media center collection and circulation activities for the new Pride Elementary and River Springs Middle School. This is a Capital Fund expenditure in the amount of $8,910.00. 11. Agreement with CompassLearning Inc. for a compass lab for River Springs Middle, recorded as SMB No. 4408. These labs are utilized in all middle and high schools for credit retrieval purposes. This is a Capital Fund expense in the amount of $14,195.00. Administrative Services School Way Café: 1. Contracts with the following effective August 18, 2008 through June 5, 2009, recorded as SMB No. 4409: a. Daytona Beach Leisure Services Cypress After-School Program, to provide snacks; b. Easter Seal Society of Volusia and Flagler Counties, Inc., to provide meals to the children not enrolled in the charter school; c. Volusia County Marine Institute to provide meals. Purchasing: The following bids, as recorded in the Supplemental Minute Book for Bids: 1. Bid Renewal: Bid No. 2S-702KP, Printer Repair Services, for Management Information Services. 2. Piggyback Bids: Bid No. 08-024/BP, Bulk Commodity Processing, and Bid No. 2007-06, Commodity Processing, both for School Way Café. 3. Bid No. 2CL-813KP, Toner Cartridges, for District-wide. 4. Bid No. 2S-814AB, HVAC Water Treatment Services & Products, for Facilities Services/Maintenance Department. Office of the Superintendent Donations Listed by donation amount, purpose of donation, and donor: Atlantic High $549.95 Band Program Boston Market, Golden, CO Discovery Elementary $750.00 Various School Needs Discovery Elementary PTA, Deltona, FL Enterprise Elementary $4,297.00 Various School Needs Enterprise Elementary PTA, Deltona, FL Heritage Middle $500.00 Media Center Terry Hirt, Osteen, FL Horizon Elementary $500.00 Activboard Elks Lodge No. 2723, Port Orange, FL New Smyrna Beach Middle $600.00 School-wide Reading Ladies Elks Club, Edgewater, FL

July 29, 2008 Page 8 Pathways Elementary $8,000.00 Copy Center Expenses Pathways Elementary PTA, Ormond Beach, FL $1,000.00 Teacher Planning Days Pathways Elementary PTA, Ormond Beach, FL $3,985.27 Campus Needs Pathways Elementary PTA, Ormond Beach, FL South Daytona Elementary $645.00 5th Grade End of Year South Daytona Elementary PTA, South Daytona, FL Spruce Creek Elementary $3,500.00 Various School Needs Spruce Creek Elementary PTA, Port Orange, FL Sunrise Elementary $2,567.72 General Fund Sunrise Elementary PTO, Deltona, FL Taylor High $500.00 Athletic Department Youth Sports Marketing, LLC, Jacksonville, FL Woodward Avenue Elementary $1,217.76 Gifted Program Woodward Avenue PTA, DeLand, FL Office of Chief Counsel for Labor Relations, Contract Services & Policy Development 1. Renewal of consulting contracts with the following law firms, recorded as SMB No. 4410: a. Booker & Associates, P.A. - real estate matters; b. Broad and Cassel - eminent domain and related real property matters; c. Dow, Lohnes & Albertson, PLLC - Federal Communications Commission matters; d. Gray Robinson, P.A. - complex construction matters; e. Holland & Knight LLP - complex land use matters with other governmental entities; f. Landis, Graham, French, P.A. - real estate matters; g. Lowndes, Drosdick, Doster, Kantor & Reed, P.A. - complex construction matters; h. Smith, Hood, Perkins, et. al - workers compensation issues and personnel matters; i. Smith & Schoder - liability and workers compensation matters; j. Thomas, Andrew B. - complex special education matters; k. Thompson, Sizemore & Gonzalez - personnel matters. 2. Amendments to the charter for the Easter Seal Society of Volusia and Flagler Counties, Inc., recorded as SMB No. 4411. The only amendment is to change the name of the charter from Easter Seals Educational Services, Inc., to Easter Seal Society of Volusia and Flagler Counties, Inc. Superintendent s Announcements Back to School Meeting with Dr. Smith: July 30, 8:00 a.m.-12:00 p.m., Mainland High Auditorium. 2008-2009 School Year Begins: August 12-preplanning/teachers report; August 18-first day of school for students. Prize Patrol: August 12, 8:00 a.m., EDC. Schools and District Offices Closed on Fridays: August 1 and August 8. Next Regular School Board Meeting: August 12, 4:00 p.m., DAC-Board Room. Superintendent s Presentations Dr. Margaret A. Smith, superintendent, stated she would be reviewing information presented at last evening s workshop, and began that as preparation for development of the 2008-2009 school year: budget workshops were conducted April 22, May 6, May 27, June 3 and July 28; capital building workshops were conducted January 29 and February 12; and information presented on the financial status of the State and the financial status of the school district at every regular school board meeting. Dr. Smith stated the past two years has been

July 29, 2008 Page 9 unprecedented and unpredictable and provided specific factors leading to our school district budget crisis: Major State revenue shortfall impact on Volusia $17.5 million is the highest percentage reduction of larger school districts. Unprecedented student enrollment decline (2007-2008 = 1,400; 2008-2009 = 1,250+) and the highest percentage of student enrollment decline of the largest districts. Dr. Smith stated student enrollment decline is trending upward and is now at 1,550. Significant change in State funding formula, District Cost Differential, (DCD); the district receives.958 cents on $1.00. Approval of Property Tax Amendment One projected loss of $3.6 million the first year and $32.1 million through 2012. Dr. Smith stated that the State revenue shortfall continues at an alarming rate; the district has been notified by the Commissioner of Education to expect and prepare for yet another reduction of revenue for the 2008-2009 budget and has been informed by Tallahassee officials that the revenue shortfall will be even worse for the 2009-2010 school year. Dr. Smith stated that during budget development the numbers change considerably due to continual changes in revenue, beginning with the initial State allocation, additional State reductions to our budget (reductions occurred two times in 2007-2008), student enrollment changes over the school year and summer, and staff attrition (retirements and resignations) at the end of the school year and over the summer. Dr. Smith stated that budget development is a work in progress and numbers may change from adoption of the tentative budget to adoption of the final budget in September. Administrative Appointments Ms. Peromnia Grant, assistant superintendent for personnel services, presented the superintendent s recommendations for the following appointments, as recorded in the Supplemental Minute Book for Personnel: Action: Approval of the following assistant principal appointments: Kevin Flassig to Turie T. Small Elementary from teacher, Pathways Elementary; Elizabeth Johnson to Heritage Middle from teacher, Heritage Middle. Motion: Moved by Mrs. Smith, seconded by Ms. Lankford and carried unanimously. Action: Approval of the following administrative appointments: Dr. Barbara Bush to Director for Exceptional Student Education (ESE) and Student Services from assistant director for ESE and Student Services; Ms. Nancy Redmond to Assistant Director for ESE and Student Services from coordinator for ESE and Student Services. Motion: Moved by Mr. Schmidt, seconded by Dr. Williams and carried unanimously. mylunchmoney On-line Prepayment Program Ms. Joan Young, director for School Way Café, Mrs. Valerie Hansen, School Way Café coordinator, and Mr. Bill Tindall, executive director for management information services, presented an overview of the mylunchmoney (mlm) program. Presentation points included: parents may create secure accounts by logging onto the mylunchmoney.com website or by phone (parents may create an account for monitoring purposes only); use of the program is optional-schools will continue to accept cash or checks for prepayment; parents will be charged a $1.95 transaction fee (which may include several students in the same school); parents can set daily and weekly spending limits and can set meal control selection for meals only and/or ala carte items; parents can view a seven day spending history that includes the actual items purchased; mlm data is secure and compliant with Child Online Privacy Protection Act (COPPA) rules; students may only be registered by their parent or guardian; mlm will reduce the amount of money handled by School Way Café employees, increase speed of serving lines, decrease insufficient checks and negative balances, encourage use of the Parent Portal and more families buying school meals; the pilot program includes ten schools with full implementation scheduled for December 2008. Board discussion ensued and included appreciation to staff.

July 29, 2008 Page 10 Action: Approval to enter into an agreement with School-Link Technologies, Inc. for services necessary to support on-line credit card payments for school lunches, recorded as SMB No. 4412. Motion: Moved by Ms. Lankford, seconded by Mrs. Smith and carried unanimously. D.J. Haycook Construction Company v. The School Board of Volusia County, Florida Mr. Rich Kizma, chief counsel, presented the proposed settlement reached in mediation in the D.J. Haycook Construction Company v. The School Board of Volusia County, Florida, et. al., Case No. 2004-10968-CIDL and stated board action was necessary on the proposed settlement. On July 28, 2008, Mr. Ted Doran, school board attorney, presented an overview to board members of the case regarding the bidding process for Elementary X (Manatee Cove), after which the board recessed into an executive session to deliberate. Action: Approval of the mediated settlement agreement of $130,000.00 to D.J. Haycook Construction Company for Case No. 2004-10968-CIDL, recorded as SMB No. 4413. Motion: Moved by Dr. Williams, seconded by Mrs. Smith and carried unanimously. School Board Policy 417 Leave, Terminal Pay, and Holiday Provisions Mr. Rich Kizma, chief counsel, stated the proposed amendment was made to ensure employees affected by the two percent salary reduction and reduction of work days from 260 to 255 or from 216 to 212 do not have loss of annual leave or loss of holiday pay; the proposed amendment is completion of action taken for the reduction. The emergency to the public welfare exists due to the budget crisis being faced by the School District of Volusia County. Emergency adoption will enable the district to immediately put in place the salary reduction and corresponding reduction in the length of the work year for certain nonbargaining unit employees, effective July 1, 2008. Action: Approval of emergency, temporary adoption of amendments to School Board Policy 417 Leave, Terminal Pay and Holiday Provisions, which will expire on October 27, 2008, recorded as SMB No. 4414 and approval to advertise amendments to School Board Policy 417, which is included in the district s Policy and Procedures Manual. Motion: Moved by Dr. Williams, seconded by Mrs. Smith and carried unanimously. Presentation of the 2008-09 Tentative Volusia County Schools Operating Budget and the Tentative District Tax Levy Dr. Robert Moll, deputy superintendent for financial and business services, stated he would be reviewing information presented at last evening s workshop, and presented the following information: budget calendar; Florida Constitution Article 9, Section 1 paramount duty of the State to make adequate provision for the education of all children residing within its border a constitutional requirement; budget adjustments following September 2007; review of the Fiscal Year (FY) budget outlook on May 27, 2008 remaining shortfall is $4,236,136; FY09 general fund budget update adjusted shortfall increased to $15,060,582; projected revenue/transfer adjustments total $6,200,000; appropriation adjustments total $8,860,582; contingency units based on formula reductions contingency fund balance is $1,330,641; FY09 general fund summary; significant considerations; 2008-09 budget information memo from Commissioner of Education Eric Smith dated June 23 regarding contingency funding plans impact to Volusia is $7.9 million; Florida Department of Education memo dated July 15, 2008, regarding the reducing the authorization from 2.0 mills down to 1.75 mills; definition of a mill one thousandth of a dollar; tax increase over rolledback rate the proposed rate of 7.459 is 5.64% lower than the rolled back rate; millage levy comparison -.008 less than prior year; FY09 tax calculation based on 7.459 mills; FY09 operating budget taxing authority showing non-discretionary and board authority; district summary budget FY09 tentative budget is $1,097,203,061; general operating revenues FY09 tentative budget is $477,788,377; general operating appropriations; FY09

July 29, 2008 Page 11 appropriations by function; and FY09 appropriations by object. Board discussion ensued. Dr. Moll s presentation was interrupted for the public hearings and public participation. Public Hearing for School Board Policy 307 Student Progression Plan No one addressed the board at this public hearing. The chairman recessed the meeting for a short break; the meeting resumed at 6:05 p.m. Public Hearing 2008-09 Tentative Volusia County Schools Operating Budget and the Tentative District Tax Levy The following expressed appreciation to the board and Dr. Smith for their leadership through the very difficult revenue shortfalls and stated their support of the direction the district was taking: Charlie Lydecker, FUTURES Foundation past president; Paula Gregory, Project Oversight Committee member and FUTURES Foundation board member; Joe Perez, Kathy Fletcher, FUTURES Foundation past president; Jim Cameron, vice president of governmental relations, Daytona Beach/Halifax Area Chamber of Commerce; Dennis Raposa, Education Committee Chairman, Daytona Beach/Halifax Area Chamber of Commerce; and Judy Andersen, former school board member. Andrew Spar, president of the Volusia Teachers Organization (VTO) distributed a handout and shared concerns regarding the budget and personnel reductions. Tanner Andrews shared concerns regarding the budget and administrative salaries. Public Participation Marla and Olivia Singletary addressed the board regarding a variance issue. Andrew Spar, VTO president, recited a poem regarding teachers. Daniel Hunt, president of the IBEW Local 756, and Stacey Stepanovich, president of the Volusia Flagler Chapter of the Central Florida AFLCIO, shared concerns regarding the litigation between Superintendent Smith and Andrew Spar. Tim Wilcutt shared concerns regarding audit procedures and assistance for those with disabilities. Resolution No. 08-22 Levying the Tentative Millage Rates for 2008-2009 Dr. Robert Moll, deputy superintendent for financial and business services, read Resolution No. 08-22 of the School Board of Volusia County, Florida, levying the tentative ad-valorem property tax millage rate of 7.459 mills for 2008-2009 local required effort, basic discretionary, supplemental discretionary for the General Fund and for Capital Outlay for the Capital Improvement Fund, and Debt Service for the Interest Sinking Fund on all taxable property within Volusia County, Florida, for the fiscal year beginning July 1, 2008, and ending June 30, 2009 Action: Approval of Resolution No. 08-22, recorded in the SMB for Resolutions. Motion: Moved by Ms. Lankford, seconded by Mr. Schmidt and carried unanimously. Resolution 08-23 Adopting the Tentative Volusia County Schools Annual Budget for 2008-2009 Dr. Robert Moll, deputy superintendent for financial and business services, read Resolution No. 08-23 of the School Board of Volusia County, Florida, adopting the tentative budget of $1,097,203,061.00 for the fiscal year 2008-2009 for the General Fund, Capital Projects Fund, Debt Service Fund, Special Revenue Fund-Food Service Fund, Special Revenue Fund-Other Fund and Internal Service Fund. Action: Approval of Resolution No. 08-23, recorded in the SMB for Resolutions. Motion: Moved by Mrs. Smith, seconded by Dr. Williams and carried unanimously. The chairman recessed the meeting for a short break; the meeting resumed at 7:50 p.m.

July 29, 2008 Page 12 Resolution No. 08-24 Authorizing the Flexibility to Expend Funds urgently needed to Maintain School Board Specified Academic Classroom Instruction Dr. Robert Moll, deputy superintendent for financial and business services, presented Resolution No. 08-24 pursuant to Florida Statute 1011.62(6)(b), which enables the District School Board the authority to exercise the flexibility to expend funds allocated to the school district from the funds received for student transportation, safe schools, supplemental academic instruction, research-based reading instruction and instructional materials; these funds are urgently needed to maintain school board specified academic classroom instruction. Dr. Moll stated this was normal action of the district, but the State now requires a resolution. Action: Approval of Resolution No. 08-24, recorded in the SMB for Resolutions. Motion: Moved by Dr. Williams, seconded by Mrs. Smith and carried unanimously. Amendments to School Board Policy 307 Student Progression Plan Mr. Rich Kizma, chief counsel, stating he and Dr. Chris Colwell, deputy superintendent for instructional services, reviewed policy changes made due to State regulations at the June 24 school board meeting, highlighted changes made due to district initiatives, which included: promotions, dual enrollment, career credit, and valedictorian/salutatorian requirements. Action: Approval to adopt amendments to School Board Policy 307, which is included in the district s Policy and Procedure Manual, recorded as SMB No.4415. Motion: Moved by Mrs. Smith, seconded by Dr. Williams and carried unanimously. School Board Attorney Contract Mr. Rich Kizma, chief counsel, presented the contract between the School Board and Doran, Wolfe, Ansay & Kundid for services as school board attorney; there were no changes in the agreement. Action: Approval of the Agreement for Legal Services between the School Board of Volusia County and Doran, Wolfe, Ansay & Kundid, recorded as SMB No. 4416. Motion: Moved by Ms. Lankford, seconded by Mr. Schmidt and carried unanimously. Superintendent s 2007-2008 Performance Evaluation Mr. Ted Doran, school board attorney, presented the superintendent s 2007-08 performance evaluation for action by the board. Mr. Doran stated he and Chairman Conte met and consolidated the evaluations submitted individually by each board member into one document. Board members expressed appreciation to Superintendent Smith for her vision and leadership through challenging and difficult times and expressed that it was a pleasure and honor to have her working for the school district. Action: Approval of the superintendent s 2007-08 performance evaluation. Motion: Moved by Dr. Williams, seconded by Mrs. Smith and carried unanimously. Items from School Board Members, Superintendent or Board Attorney for Discussion, Announcement or Approval Dr. Smith: Introduced Mr. Rich Kizma who presented information regarding the emergency adoption of amendments to School Board Policy 210 Admission of Students in a Home Education Program. Mr. Kizma stated the changes would expand the partial enrollment program from kindergarten through twelfth grade. The emergency to the public welfare exists due to the budget crisis being faced by the School District of Volusia County. The emergency adoption of the policy will enable the district to partially enroll students previously denied enrollment, thereby increasing the district s revenue. Dr. Smith stated one reason to expand the policy to include elementary was in response to a new State statute that amended the virtual school requirements for school districts to make it optional to have a K-8 virtual school program this year and a requirement for an elementary virtual school program next year; the expansion will enable the district to partner with parents who are home schooling their students currently approximately 1,500 students are being home schooled in Volusia County. Board discussion ensued.

July 29, 2008 Page 13 Action: Approval of emergency, temporary adoption of amendments to School Board Policy 210 Admission of Students in a Home Education Program, which will expire on October 27, 2008, recorded as SMB No. 4417, and approval to advertise amendments to School Board Policy 210, which is included in the district s Policy and Procedures Manual. Motion: Moved by Mrs. Smith, seconded by Mr. Schmidt and carried unanimously. Mrs. Smith: Represented the school board at the Deltona Library expansion celebration; the expansion, made possible by the partnership of the School Board, Volusia County and the City of Deltona, will double the size of the facility, add an education center with Lyonia Preserve and an amphitheater. Mr. Schmidt: Attended the educational forum sponsored by Morgan Gilreath, Volusia County property appraiser. Ms. Lankford: Appointed to the Florida School Boards Association s Buy Board; a consortium investigating joining with the Texas School Boards Association s Buy Board to coordinate purchasing power. Attended the retirement party for Marlene Hughes and expressed appreciation for her service as a principal. Ms. Conte: Expressed appreciation to the administrators, stating they are hardworking and work long hours, and wanted to make sure they knew the board valued them even though administrators received a reduced percentage of pay increase in 2007-08 and have already been reduced another two percent this year. Stated the administrators stepped up to the plate and she wanted to keep the situation in mind and do better by them when it becomes possible to do so. Dr. Williams: Agreed with Chairman Conte s remarks and stated the district s administrators are dedicated and are some of the best he has seen in education. Dr. Smith: Stated from her heart and her mind she truly appreciated the school board for the confidence in her and the administrative team and most of all because each member truly puts children first individually and as a school board. Mr. Doran: Expressed appreciation to board members for the opportunity to serve as school board attorney for another year and stated he was honored to do so. Meeting adjourned at 8:20 p.m. APPROVED BY THE SCHOOL BOARD IN OPEN SESSION August 12, 2008 Chairman Secretary