Steve Herzog, Chief Operating Officer

Operations Department

Meeting Date:

September 15, 2009

Agenda Item:

Monitoring Report Acceptance

Topic:

Protection of Assets - EL 1.7

Cabinet Responsibility

Steve Herzog, Chief Operating Officer

Through:

Jim Christensen, Superintendent

Description:

Annual Report is submitted as scheduled

Summary:

Background Information

The Board of Education (BSL 7.0) requires the

Superintendent to provide an evidentiary report of compliance

with the Executive Limitations categorized under item 1.7 –

Protection of Assets.

There are nine subcategories to this Limitation.

Related Documentation:

Monitoring Report EL 1.7

Staff Recommendation:

The Board of Education finds this interpretation

reasonable

Recommended Board Action:

Reasonable Monitoring Report of EL 1.7

EXECUTIVE LIMITATION 1.0 –

GENERAL EXECUTIVE CONSTRAINT

To: Board of Education

From: Superintendent – Douglas County School District Re. 1 (DCSD)

Re: Internal Monitoring Report – Executive Limitation 1.0: General Executive

Constraint

I hereby present my monitoring report on Executive Limitation 1.7 in accordance with the

monitoring schedule as set forth in board policy. I certify the information in this report is true.

Signed Date: September 15, 2009

Superintendent – DCSD

EXECUTIVE LIMITATION 1.7 PROTECTION OF ASSETS

The Superintendent shall not allow assets of the District to be unprotected, inadequately

maintained, inappropriately used or unnecessarily risked.

Interpretation Executive Limitation 1.7:

I interpret

“assets”

to represent physical and intellectual property of the District with a value

greater than $5,000.

I interpret

“unprotected”

as assets without insurance.

I interpret

“inadequately maintained”

as a lack of preventive maintenance, repair, or

renovation which may cause an asset to deteriorate and experience an accelerated depreciation.

I interpret

“inappropriately used”

as the utilization of assets not in accordance with their

prescribed purpose.

I interpret

“unnecessarily risked”

as exposure of assets to circumstances resulting in a higher

likelihood of theft or otherwise being unavailable for the asset’s intended purpose.

Data Reported

Unprotected

assets

are physical and intellectual property with a value greater than $5,000

without insurance.

The District has in place nine insurance contracts that protect 100% of the property assets.

Insurance coverage amounts meet or exceed prevailing industry standards utilized by

Cherry Creek, Denver and Jefferson County School Districts.

District insurance contracts carried for 2008-2009 include:

Excess Liability

Excess Workers’ Compensation

Crime

Fiduciary

Workers’ Compensation Self-Insurer’s Bond

Public Official Bond for Treasurer

Public Official Bond for Board Secretary

Property/Boiler and Machinery

Master Builder’s Risk

Pollution Liability (Storage Tank)

Insurance coverage for excess liability (general and auto liability) and property protection

indicate adequate coverage to protect District assets.

Coverage

Deductible

Excess Liability

$5,000,000

$150,000

Property $100,000,000

$100,000

The District’s fiduciary coverage insures 100% of all personnel, as required by state statute,

and maintains a current crime insurance policy which includes coverage for employee

dishonesty and theft; theft, disappearance and destruction of money and securities; forgery

or alteration; credit card forgery; and computer fraud/wire transfer. This policy has a limit

of $1,000,000 and a deductible of $25,000. These limits are comparable with similar

Colorado school districts.

During the reporting period, no District assets with a value of over $5,000 were subjected

to unnecessary risk as defined as uninsured.

Inadequately maintained

is when preventive maintenance, repair, or renovation is not

performed, which may cause an asset to deteriorate and experience accelerated depreciation

when compared to industry norms.

All work orders are processed and classified into three priority levels.

Priority I (High) services are provided when required protecting life, health, property and

safety of staff and/or students. During the reporting period, 100 out of 100 high priority

work orders were completed, indicating completion of 100% of the high priority work

orders.

Priority II (Medium) services are required for situations that, if delayed, would interrupt the

educational process. During the reporting period, 18,343 out of 18,926 medium priority

work orders were completed, indicating completion of 96.92% of medium priority work

orders.

Priority III (Low) services are provided for routine maintenance work. During the

reporting period, 15,728 out of 16,144 low priority work orders were completed, indicating

completion of 98.42% of Priority III work orders.

Inappropriately used

is the utilization of assets not in accordance with their prescribed purpose.

Internal audits have been performed to measure compliance with District policies and

procedures. There were no reported instances of assets valued over $5,000 being utilized

for any purpose other than their intended use.

Unnecessarily risked

is exposure of assets to circumstances resulting in a higher likelihood of

theft or otherwise being unavailable for the asset’s intended purpose.

Policies, procedures and risk management training are in place to address theft and

comparable to other large school districts in the Denver metro area. During the reporting

period, the District incurred $50,831 in vandalism/theft losses, while securing

$849,041,543 worth of total assets. The percentage of losses to total assets is less than one

one-hundredth of one percent (0.00006).

Reference

2008-2009 Schedule of Insurance - Addendum “A”

I report compliance.

Accordingly, the Superintendent shall not:

1.7.1. Allow there to be inadequate insurance to protect the District’s assets, including but

not limited to coverage for theft and casualty, institutional liability and Directors and

Officers liability.

Interpretation

I interpret

“inadequate insurance”

to be defined by failure to maintain policy amounts

sufficient to cover replacement costs for physical resource loss or damage, and liability coverage

amounts that are consistent with State law. State law mandates minimum automobile bodily

injury coverage of $25,000, and minimum property damage coverage or $50,000 per incident.

Data Reported

DCSD coverage is similar to comparable Colorado school districts and in conjunction with the

protection granted by the Colorado Governmental Immunity statutes.

The District maintains automobile liability coverage with a limit of $5,000,000. The District

maintains property insurance covering 100% of district owned property. The District maintains a

comprehensive liability policy that includes coverage for automobile liability, general liability,

and educators’ legal liability. This policy provides coverage for Board members, staff members,

and the District to a $5,000,000 per occurrence limit. This amount is considered reasonable as

compared with the Denver, Cherry Creek, and Jefferson County school districts.

Per Occurance Liability Limits

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

Cherry Creek Denver Jefferson

County

Douglas

The District has maintained the required coverage as indicated in the July 1, 2008 Schedule of

Insurance – Addendum “A”. District coverage for the reporting period is:

Limitations Deductible

Commercial General Liability

$5,000,000

$150,000

Auto Liability

$5,000,000

$150,000

Property $100,000,000

$100,000

I report

compliance.

1.7.2. Allow unbonded personnel access to material amounts of funds, or fail to provide

adequate insurance to protect against employee dishonesty and theft.

Interpretation

I interpret this executive limitation as affording the choice of either bonding personnel, or

purchasing insurance.

I interpret

“unbonded personnel”

as all staff excluding the Board Secretary and Board

Treasurer, in accordance with Colorado Revised Statute § 22-32-104(4)(b). “No person shall

enter upon the office of secretary or treasurer, or assistant secretary or assistant treasurer if there

be such offices, until he has given a surety bond, in form satisfactory to the board, in the amount

of five thousand dollars…..”

I interpret

“material amounts of funds”

to represent cash, checks, and securities in amounts

exceeding $5,000.

I interpret

“adequate”

as coverage which is comparable to similar Colorado school districts.

I interpret “

employee dishonesty and theft”

as reportable criminal theft against the District by

an employee.

Data Reported

The District maintains surety bonds for the Board Secretary and Board Treasurer in the amount

of $5,000. The District bonded all personnel as required by state statute and maintained a current

crime insurance policy which includes coverage for employee dishonesty and theft, forgery or

alteration, credit card forgery, and computer fraud/wire transfer. Such policy has a limit of

$1,000,000 and a deductible of $25,000. These limits are comparable with similar Colorado

school districts.

Crime Coverage Limits

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

Cherry Creek Denver Jefferson

County

Douglas

During the reporting period, no criminal theft by an employee was reported.

I report

compliance

1.7.3. Subject facilities and equipment to improper wear and tear or insufficient

maintenance.

Interpretation

I interpret

“facilities”

to be inclusive of buildings and grounds owned or leased by the district.

I interpret

“equipment”

to mean stock, tools, electronic data processing equipment, and

machines that either alone or in combination comprise and/or support operating systems within

these facilities, and tangible property with a value exceeding $5,000, and a useful life greater

than one year.

I interpret

“improper wear and tear”

as failure to sustain the integrity of the asset for the

asset’s intended purpose.

I interpret

“insufficient maintenance”

as not keeping up with preventive and corrective

maintenance as recommended by the manufacturer and/or prevailing industry practice.

Data Reported

Facilities

include all buildings and grounds owned or leased by the district.

During the reporting period, the District owned 77 buildings, comprising 6,137,617

square feet. The District also maintained 1,312 acres of grounds and leased 39,384

square feet in 8

locations. Building renovations and major facility repairs are included in

each bond plan and completed in order of need. During the reporting period, planned

improvements were completed using 2006 bond monies.

Reference

2006 Bond Capital Improvement Schedule - Addendum “B”

Equipment

is stock, tools and machines that either alone or in combination encompasses and/or

supports operating systems within all facilities, and tangible property with a value exceeding

$5,000, and a useful life greater than one year. The District maintains current Property and

Boiler and Machinery insurance, with a limit of $10,000,000, to protect the district’s electronic

data processing equipment, data and media.

During the reporting period, district building stock, tools, furniture and operating systems

were valued at $61,924,693. Property values for machinery and equipment were

$2,772,208. Buses and support vehicles were valued at $12,810,610. Replacements and

repairs to building stock, tools, furniture and operating systems were completed per

warranty expectations.

The District’s Capital Reserve program completed $6,775,415 worth of deferred

maintenance and was used to replace and increase the number of fleet vehicles, purchase

and move portable buildings, and make lease payments. Technology capital

improvements during the reporting period totaled $7,636,025. A computer rotation

schedule is in place. During this reporting period, the new Chief Information Officer

developed an expanded technology replacement schedule that includes switches, servers

and wide area network. Replacement of these electronic tools will be included in the next

bond program initiative.

Improper wear and tear

is the failure to sustain the integrity of the asset for the asset’s

intended purpose.

In 2006, Douglas County School District surveyed the Colorado School Plant Manager

Association and found an average staffing ratio of 80,000 square feet per maintenance

employee to maintain district physical assets. During the reporting period, DCSD’s

maintenance staffing level was 109,600 square feet per employee. Given DCSD’s

maintenance staffing level, a work order completion rate above 90% is reasonable.

During the reporting period, District Operations and Maintenance Department completed

34,171 work orders of the 35,140 work orders submitted. This represents 97.24%

completion of all work orders. The District uses a ranking system to prioritize the

scheduling of preventive and corrective maintenance activities to sustain the integrity of

District assets.

Priority I (High) services are provided when required to the protect life, health, property

and safety of staff and/or students. During the reporting period, 100 out of 100 high

priority work orders were completed, indicating completion of 100% of the high priority

work orders.

Priority II (Medium) services are required for situations that, if delayed, would interrupt

the educational process. During the reporting period, 18,343 out of 18,926 medium

priority work orders were completed, indicating completion of 96.92% of medium

priority work orders.

Priority III (Low) services are provided for routine maintenance work. During the

reporting period, 15,728 out of 16,114 low priority work orders were completed,

indicating completion of 97.42% of Priority III work orders.

During the reporting period, no instances of assets being utilized for other than their

intended purpose were reported.

Insufficient maintenance

is the failure to keep up with preventive and corrective maintenance

as recommended by the manufacturer and/or prevailing industry practice.

Preventive maintenance work orders are generated based upon the manufacturer’s

recommended maintenance schedules. Effective preventive maintenance actions provide

for ongoing review of facilities and equipment. Corrective maintenance work orders are

generated by facility engineers when repairs of equipment or facilities are needed.

During the reporting period, there were 17,404 preventive maintenance work orders

opened and 15,671 preventive maintenance work orders due. Of these, 15,539 preventive

maintenance work orders were completed. This represents 99.16% completion of

preventive maintenance work orders due.

During the reporting period, there were 19,500 corrective work orders opened, and

19,130 corrective work orders were closed. This represents 98.1% completion of all

corrective maintenance work orders due.

During the reporting period, preventive and corrective maintenance work orders were

completed at a rate of 97.24% of all work orders submitted or opened.

I report

compliance

1.7.4. Expose the District, its Board, or staff to unnecessary or excessive claims of liability.

Interpretation

I interpret

“expose”

as potential vulnerability to legal claims.

I interpret “

unnecessary or excessive claims

” as those which would result in the absence of

effective risk management practices.

I interpret

“liability”

as legal judgments and costs.

Data Reported

The measures of this interpretation are the legal boundaries set by federal and/or state laws, and

in accordance with Board of Education and Administrative policies. Frequent, ongoing training

of District employees on how to prevent loss and/or injury are delivered throughout each school

year. Workers’ Compensation claim data is based on a comparison of total dollars of payroll to

total claims incurred. This ratio should not exceed 1%. Liability suits will be measured by

comparing the ratio of suits filed to the number of students, and this ratio should not exceed one

suit per every 10,000 students. These amounts are considered reasonable as compared with the

Denver, Cherry Creek, and Jefferson County school districts

During the reporting period, the District Risk Management Department conducted numerous

training sessions to prevent injury and train employees in proper use of equipment and

maintenance of District facilities.

•

New employees receive Risk Management training at new employee orientation.

•

School Health Room employees receive training on the proper health room

documentation of student accidents and proper environmental disposal techniques.

•

Secondary school science teachers receive Lab Safety Training which includes chemical

safety and proper environmental disposal techniques.

•

All new transportation employees receive on-line training on the District’s federally

mandated Drug and Alcohol program.

•

Coaches receive training on liability exposures and the District’s insurance program.

•

Numerous ergonomic trainings/work station adjustments were provided throughout the

District.

•

All head custodians receive training on the Facility Inspection Checklist which is

required to be completed semi-annually.

•

All head custodians receive training on completion of playground safety checklist which

is to be completed weekly.

•

We have met our federally mandated drug and alcohol testing requirements of

employees who hold Commercial Drivers’ Licenses.

•

Employees receive training on the use of evacuation chairs for evacuating wheel chair

bound students from buildings in fire situations.

•

Updated the District’s asbestos management plan

•

Conducted numerous building indoor air quality tests

•

Continued to maintain our annual compliance requirements with the EPA’s SARA

TITLE III.

The District carries adequate liability coverage as compared to comparable districts, Cherry

Creek, Denver and Jefferson County. The District experienced an increase in workers’

compensation claims and costs from 2005-06 to 2006-07, but a substantial decrease in workers’

compensation claims and costs in 2007-2008.

Per Occurance Liability Limits

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

Cherry Creek Denver Jefferson

County

Douglas

Graph Total Incurred for each Claim Type

Order By Total Incurred Desc

Selection:

Claims where Date Of Loss between 7/1/2008 and 6/30/2009 11:59 PM and Claim Status is Closed or Open and Coverage is 'WC'

Claim Type

Paid

Out Reserve

Recovered

Total Incur

Claim Count

Cost per Claim

Indemnity $548,634.07

$542,548.90

$0.00

$1,091,182.97 68

$16,046.81

Medical

$196,918.26

$56,169.49

$0.00

$253,087.75

192

$1,318.17

Totals:

$745,552.33

$598,718.39

$0.00

$1,344,270.72

260

$5,170.27

Workers' Compensation History

230

235

240

245

250

255

260

265

06/07 07/08 08-09

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

Claims

Total Incurred

There was one documented liability suit filed during this reporting period. Two additional cases

were also in the litigation process during 2008 – 2009, but one of them was withdrawn by the

Plaintiff during the year. Ten other workers’ compensation claims are currently in litigation.

Two documented liability suits for 56,063 students is a ratio of one suit per every 28,032

students, and indicates the District’s success in mitigating issues before they become significant

liabilities. The following table recaps the District’s legal issues during this reporting period.

Category Type

Dispositions

Human Resources

EEOC Claim

2 new claims filed

3 claims closed

Legal

•

Workers’ Compensation claim

Ten claims currently being litigated.

•

Slip and Falls (general liability)

One claim in litigation process was

withdrawn by plaintiff.

Bodily

Injury

No litigation.

•

Auto Liability

No litigation.

•

Constitutional Right Violation

One new case filed in 2008-09 and is in

litigation process, and one other case

continued in the litigation process.

The District reported total payroll for 2008-2009 was $291,634,546 and the amount of workers’

compensation claims were $1,344,271 indicating a ratio of 0.0046. This ratio indicates the

District is performing better than the industry standard of 1%, as reported by Midwest Casualty

Group.

I report

compliance.

1.7.5. Fail to protect intellectual property, information and files from misuse, loss or

significant damage, including intellectual property developed using District resources.

Interpretation

I interpret

“intellectual property”

as DCSD original work

I interpret

“information and files”

to mean the electronic and hardcopy records retained by the

District for District administration and school site level purposes.

I interpret

“misuse”

as damaging the District’s reputation or using the information and/or files

not in accordance with their intended purpose.

I interpret

“loss or significant damage”

as constituting the inability to utilize the resource.

Data Reported

Intellectual property

is DCSD original work.

Work created by District employees while on the job, or as a function of the employee’s

position within the District, becomes an intellectual property right of the District.

Policies outlining District ownership of intellectual property created while on the job are

in place. Specifically, policy GBEE-R, Section I, addresses Proprietary Information. It

states “Any information or material including, without limitation, discoveries, ideas,

inventions, techniques or processes, that an employee discovers or develops as a result of

the employee’s employment with the District, whether with the use of District technology

or otherwise, shall constitute trade secrets of and be the sole property of the District.”

We have had no reported incidents where intellectual property has been misused or sold

for profit. Standard intellectual property copyright trademark language is in place when

appropriate on all contracts. For example, eDCSD curriculum materials have been

copyrighted, as have the Elementary World Language program materials.

Information and files

are electronic and hardcopy records retained by the District for District

administration and school site level purposes.

Information and files include hardcopy and computerized data, databases, spreadsheets,

records, textbooks, end-of-unit assessments, body-of-evidence guides, BOE and District

policies and other similar systems in which the mechanism for recording, storing,

interpreting, or processing the information is developed and/or maintained by District

employees. Physical student records are stored at school sites until transferred to central

site storage. Records are then scanned into electronic form and stored in the District’s

electronic document management system. Following are the primary overall District

Policies governing acceptable use of information files and technology in the District. In

addition, each major computer application (e.g., Infinite Campus) has policies governing

use of specific aspects of that application. A new policy governing electronic signatures

on electronic documents has been added since last year’s report.

Administrative Policies Related to Technology

GBEE – Employee Computer and Internet Use

GBEE-R – Employee Computer and Internet Use Rules

JICJ – Student Use of District Technology

JICJ-R – Student Use of District Technology Rules

Student AUA – Student Acceptable Use of District Information

Technology Agreement (AUA)

Student AUA w/Policies – Student Acceptable Use of District Technology

Agreement (AUA) with District policies JICJ and JICJ-R

EGD -- Use of Electronic Signatures

Misuse

is using the information and/or files not in accordance with their intended purpose and

loss or significant damage

constitutes the inability to utilize the resource.

During the reporting period there were two (down from eight last year) formal

investigations (by ITS) into potential instances of employees violating Administrative

Policy GBEE-R, which resulted in one termination and one letter of concern. This total

number of investigations represents around three hundredths of one percent of all

employees, and a threshold of less than 1% is reasonable for an organization with over

6,300 employees.

During the reporting period, there were disciplinary referrals of 328 students for violation

of District technology use policies, some of which represented additional instances

involving the same students. The nature of these violations included inappropriate cell

phone use, inappropriate language in emails, bringing in flash-drives with inappropriate

content, etc. Less than one percent of students violating District technology use policies is

an acceptable threshold. During the reporting period, 328 students with violations out of

approximately 54,000 students represented only 0.6%.

All files at the District administration level are protected against loss, damage or misuse of

electronic data in the following manner:

•

Backups and off-site storage have been conducted 100% of the time.

•

Virus protection software has been installed on 100% of district computers to

protect the computers and district networks from the damaging effects of viruses,

worms, and other unauthorized intrusions. No such intrusions have affected the

District in the last year.

•

A “firewall” has been erected around the entire district data network to protect

against damage due to unauthorized access. No such unauthorized access is known

to have taken place.

•

Web content filters have been deployed to reasonably guard against misuse of

district computer and network assets.

•

User IDs and passwords are required for 100% of access requests.

The electronic data backup process is summarized in the following table.

Daily

Backups

Incremental backups of all servers

are performed Monday through

Thursday nights between 9:00 p.m.

and 6:00 a.m.

10 days

Offsite storage

Weekly

Backups

Full backups of all servers are

performed each Friday night

between 9:00 p.m. and Saturday

6:00 a.m.

4 weeks

Offsite storage

at Iron

Mountain, Inc.

Monthly

Backups

Full backups of all servers are

performed on the first Friday of

each month

12 months

Offsite storage

Annual

Backups

Last business day of each fiscal year

(preliminary at end of June and final

at end of July)

7 years

Offsite storage

In the event of fire, flood, tornado or any other catastrophic disaster in the data center in

the Wilcox District Administration Building, or in the new data center in the Time

Warner Telecomm co-location facility located in Aurora, District data files can be

restored from backup tapes to a replacement computer system (servers, storage, network),

once such a replacement system can be made available. ITS has periodically restored

data files from these tapes upon request (using existing data center infrastructure), thus

verifying the viability of data recovery in the event of loss or damage.

In early 2008, the ITS Department successfully moved 83% of virtual servers and 45% of

physical District servers and data to a new co-location data center facility located in

Aurora and operated by Time Warner Telecomm. The new co-location data center and

the original data center in the Wilcox building will act as disaster recovery sites for each.

However, the original data center in the Wilcox building is no longer large enough to

install or power all the equipment necessary to fully recover all applications and data now

housed at the Aurora facility. Therefore, until we can lease or build an alternate site, and

until we can fund acquisition of a replacement set of hardware in that site, we would plan

to only recover the most critical applications and data from the Aurora data center to the

Wilcox data center, or vice-versa, should that become necessary. In any case, we plan to

focus initially on only the most critical applications (e.g., email, Infinite Campus, Oracle

EBS) in the event of a disaster.

At the school site level, protection of school level electronic data from loss or damage in

the event of disk hardware failure on the school servers is through the use of backup disks

on each server, and data is backed up locally from the primary disk to the backup disk.

Currently, there are large volumes of non-critical data mixed in with intellectual property

data at each school. These volumes of data cannot be backed up centrally to tape over the

existing wide area network. The planned fiber-optic Wide Area Network, when funded,

will allow ITS to backup critical data from schools to central storage at the district level.

I report

compliance.

1.7.6. Endanger the District’s public image, its credibility, or its ability to accomplish Ends.

Interpretation

I interpret

“public image”

as inclusive of the opinions and perceptions of the taxpaying public at

large, public governmental entities, and private companies of District assets, including facilities

and equipment.

I interpret

“credibility”

as maintaining public trust as ethical stewards for the community.

I interpret the

“ability to accomplish Ends”

as meaning the district’s facilities will not detract

from the system’s ability to meet Ends.

Data Reported

The District’s

public image

is inclusive of the opinions and perceptions of the taxpaying public

at large, public governmental entities, and private companies of District assets, including

facilities and equipment.

Credibility

is maintaining public trust as ethical stewards for the

community. For example, every dollar saved in the Energy Savings Program goes to the

classroom to accomplish the Ends.

During the reporting period the District conducted its own parent survey. In the 2008-09

school year, the survey included 3,398 parent and 7,180 student respondents.

Data results indicated:

•

96% of parents agree or strongly agree District school building and classrooms are

“clean, safe, and well maintained.”

•

81% of students agree or strongly agree District school building and classrooms are

“clean, safe, and well maintained.”

In April and May of 2008, the Harstad Strategic Research, Inc. conducted a community

survey on the District’s behalf to gage the mood of the voters in anticipation of a

November 2008 bond and budget election.

•

68% of the respondents graded the public schools in DCSD as an A or B, with

another 17% grading them as a C.

•

69% of the respondents graded the quality of education program in DCSD as

compared to three years ago an A or B.

•

70% of the respondents graded their neighborhood school an A or B.

While this survey did not specifically grade the facilities and equipment of DCSD schools,

these results indicate maintenance of the public’s trust as ethical stewards for the

community. More precise survey questions related to facilities will be gathered in the

future.

Facility usage rates are another data point related to credibility and maintaining the public

trust as ethical stewards for the community. For the 2008-2009 school year, DCSD

buildings were used for 50,394.25 hours. The following chart breaks out the usage by

types of organizations and provides trend information over the past several years.

Hours of Facility Use

5000

10000

15000

20000

25000

30000

35000

2006/2007 2007/2008 2008/2009

Hours

Non-profit DC Youth

Non-profit Community

Commercial

During the reporting period the District ITS Department provided ongoing maintenance of

the District website based on problems or change requests submitted through an electronic

help desk system. The District web site is the primary communication tool regarding

District programs, operations, facilities and equipment. From July 1, 2008 through June

30, 2009 the Help Desk system recorded 1,076 inquiries from constituents and internal

stakeholders (relating to District-level web services only, not school-level web sites). This

total represents a 46.8% decrease in web services tickets from the prior year. This

decrease is a result of the process improvements that the web services department put in

place during this same timeframe to enable internal stakeholders to maintain and update

their own content.

Ability to accomplish

Ends

means the district’s management of assets will not detract from the

desired outcomes of the organization.

The management of District assets did not detract from the District’s ability to accomplish Ends

as evidenced by having an Aa2 credit rating by Moody’s and an AA by Fitch, which are

nationally recognized bond rating agencies. A successful November 2006 bond election found

District voters approving $200 million for new facilities, renovation of aging facilities, and

unfunded capital improvements. In the spring of 2008, DCSD’s bond rating was reaffirmed Aa2

when we sold the last $50M of the 2006 bond authorization.

The District continued its focus on energy management in 2008-2009 resulting in savings of over

$1,100.000 in electrical expenses alone compared to last year. The District came in over

$2,000,000 under budget for its utilities due to its energy management efforts. Even with an

increase of almost 8% in square footage in the District and the growth of our technology needs,

the District reduced its’ usage per square foot by over 7%.

11.922

11.38

9.89

5,339,682

5,641,366

6,178,638

2007 2008 2009

Kilowatt Hrs/Sq Ft

Sq Ft

The physical design of all District buildings area aligned to Learning Services educational

specifications and therefore do not prohibit accomplishment of Ends. 100% of District facilities

comply with Learning Services educational specifications in place at the time of construction or

when the most recent renovation was completed to allow all students to accomplish Ends.

I report

compliance

Addendum “A”

July 1, 2008

Schedule of Insurance

Douglas County School District RE 1

Limits

Coverage: Excess School Liability

Insurer:

American Alternative Insurance Corporation

Policy Number: N3-A2-RL0000035-01

Policy Term: July 1, 2008 to July 1, 2009

Includes General Liability, Errors & Omissions, Employment Practices Liability, Automobile

Liability (Owned, Non-Owned & Hired), Garagekeepers Legal Liability

General Liability/Auto Per Occurrence/Annual Aggregate

$5,000,000

Educators Legal Per Occurrence/Annual Aggregate

$5,000,000

Self-Insured Retention

$150,000

Coverage: Excess Workers’ Compensation and Employer’s Liability

Insurer:

Midwest Employers Casualty Company

Policy Number: EWC006601

Policy Term: July 1, 2008 to July 1, 2009

Workers’ Compensation

Statutory

Employer’s Liability

$1,000,000

Retention

$400,000

Coverage: Crime

Insurer:

Travelers Casualty & Surety

Policy Number: 104 315780

Policy Term: July 1, 2008 to July 1, 2009

Public Employee Dishonesty/Faithful Performance

$1,000,000

Theft, Disappearance and Destruction of Money and Securities

$50,000

Forgery or Alteration

$1,000,000

Credit Card Forgery

$1,000,000

Computer Fraud/Wire Transfer

$1,000,000

Deductible

$25,000

Coverage: Fiduciary Liability

Insurer:

Travelers Casualty & Surety

Policy Number: 104452884

Policy Term: July 1, 2008 to July 1, 2009

Each Claim

$1,000,000

Deductible

$50,000

Limits

Coverage: Pollution Liability (storage tank)

Insurer:

Zurich American Insurance Company

Policy Number: USC941891202

Policy Term: July 1, 2008 to July 1, 2009

Each Claim

$1,000,000

Total for all Claims

$2,000,000

Deductible Each Claim

$5,000

Coverage: Surety Bond

Insurer: Travelers

Policy Number: 19S103653622BCM

Policy Term: June 21, 2007 to June 21, 2008

Workers’ Compensation Self-Insurance (Colorado)

$1,071,000

Policy Number: 104942380

Policy Term: July 1, 2007 to July 1, 2008

Public Official – David Dale Hart, Treasurer

$5,000

Policy Number: 104889842

Policy Term: February 20, 2007 to February 20, 2011

Public Official – Nona Eichelberger, Secretary to the Board of Education

$5,000

Coverage: Property and Boiler & Machinery

Insurer:

Travelers Insurance Company

Policy Number: KTK-CMB-9032B06-6-08

Policy Term: July 1, 2008 to July 1, 2009

All Risks of Direct Physical Loss or Damage

$100,000,000

Earthquake (Annual Aggregate), except $10,000,000 in Moderate Hazard Counties

(High Hazard Counties Excluded)

$25,000,000

Flood (Annual Aggregate), except $2,500,000 in Flood Zones Prefixed A; excluding

Zone V

$10,000,000

Newly Constructed or Acquired Property (365 Days Reporting)

$5,000,000

Limits

Electronic Data Processing Equipment, Data and Media

$10,000,000

Covered Property At Undescribed Locations

$2,000,000

Ordinance or Law

$10,000,000

Pollutant Cleanup and Removal (Annual Aggregate)

$100,000

Claim Data Expense

$25,000

Business Income (Including Rental Value and Extra Expense); 180 Days Extended

Period of Indemnity

$5,000,000

Ingress/Egress (1 Mile Radius Limitation – 30 Days Limitation)

Included in BI

Interruption by Civil Authority (1 Mile Radius Limitation, 30 Days Limitation)

Included in BI

Leasehold Interest

$1,000,000

Renovation Projects (maximum per renovation site/maximum at all renovation sites) $5,000,000/$10,000,000

Service Interruption – Property Damage & Time Element

$1,000,000

Accounts Receivable

$10,000,000

Valuable Papers and Records

$10,000,000

Contractors Equipment

$3,000,000

Limited Fungus, Wet Rot, Dry Rot and Bacteria (Annual Aggregate at $100,000)

$15,000

Fine Arts

$1,000/$500,000

Auto Physical Damage on Premises (CAT)

$3,000,000

Transit

$500,000

Errors and Omissions In Reporting

$1,000,000

Terrorism

$100,000,000

Deductible

–

All Perils, except as Follows

$100,000

–

Earth Movement and Volcanic Action, 2% except in Moderate Hazard Counties

$100,000

–

Flood in FEMA High Hazard Zones

$500,000

–

Windstorm, except 5% in High Hazard Wind Counties

$250,000

Time Period Limits

–

Automatic Coverage

365 Days

–

Extended Period of Indemnity

180 Days

–

Leasehold Interest

365 Days

Limits

–

Ingress/Egress

30 Days

–

Civil or Military Authority

30 Days

Equipment Breakdown Limit, including Property Damage

$57,500,000

Any One Accident, except:

–

Business Interruption/Extra Expense/Rental Value

Included

–

Services Interruption

$1,000,000

–

Expediting Expenses

$100,000

–

Hazardous Substances

$100,000

–

Ammonia Contamination

$100,000

–

Water Damage

$100,000

–

Consequential Damage

$100,000

Deductible:

–

Direct Coverages

$10,000

–

Indirect Coverages

24 Hours

Coverage: Master Builder’s Risk

Insurer:

ACE Fire Underwriters Insurance Co.

Policy Number: I08531316001

Policy Term: August 1, 2006 to August 1, 2008

All Hard Costs

$40,000,000

Earth Movement (Annual Aggregate)

$10,000,000

Flood (Annual Aggregate) Excludes FEMA Zones A, B, V & D

$10,000,000

Transit

$1,000,000

Off Site Storage

$1,000,000

Debris Removal

$1,000,000

Pollution Clean Up (Aggregate)

$25,000

Fire Department Service Charges

$25,000

Valuable Papers & Records

$100,000

Installed Trees & Shrubs, $250 Per Item

$100,000

Sidewalks, Curbs, Gutters, Streets or Parking Lots

$25,000

Expediting Expense

$100,000

Limits

Deductible

–

Per Occurrence

$25,000

–

Flood Deductible

$100,000

–

Earthquake

$50,000

Projects Currently Insured:

–

High School #9

–

Limits

Douglas County Educational Foundation

Coverage: General Liability,

Hired and Non-Owned Auto

Insurer:

Travelers Indemnity Company of Connecticut

Policy Number: I660764X3315-COF-07

Policy Term: August 26, 2007 to August 26, 2008*

General Aggregate (Other than Products/Completed Operations)

$2,000,000

Products/Completed Operations Aggregate

$2,000,000

Personal and Advertising Injury Limit

$1,000,000

Each Occurrence

$1,000,000

Fire Damage Limit

$100,000

Medical Payments, Any One Person

$5,000

Liquor Liability:

Aggregate Limit

$2,000,000

Each Common Cause Limit

*Policy will be cancelled and rewritten effective August 12, 2008 to coincide with balance of

coverage renewal dates.

$1,000,000

Coverage: Directors and Officers

Insurer: Federal

Insurance

Company

Policy Number: 8141-50-25

Policy Term: August 12, 2007 to August 12, 2008

Each Occurrence/Aggregate

$1,000,000

Deductible – Each Loss

$2,500

Coverage: Crime

Insurer:

Travelers Casualty and Surety Company of America

Policy Number: 104995603

Policy Term: September 15, 2007 to August 12, 2008

Employee Dishonesty

Forgery & Alteration

Money & Securities

Computer Fraud

$100,000

Deductible

$5,000

1550 17

Street, Suite 600

Denver, Colorado 80202-2423

[303] 534-4567; [800] 813-0203

[303] 534-0600 FAX

SCHEDULE OF INSURANCE

AS OF JULY 1, 2009

Limits

Coverage:

Property/Boiler & Machinery

Insurer: Travelers

Indemnity

Company

Policy Number: KTK-CMB-9032B06-6-09

Policy Term: July 1, 2009 to July 1, 2010

♦

All Risk of Direct Physical Loss or Damage Loss Limit – per occurrence

$ 100,000,000

♦

Real and Personal Property

$ 856,535,022

♦

Mobile Classrooms including Personal Property

$ 11,627,487

♦

Business Income

$ 5,000,000

−

Rental Value

Included

−

Extra Expense

Included

−

Ordinary Payroll

Included

−

Extended Business Income or Rental Value

180 Days

−

Civil Authority

30 Days

−

Ordinance or Law – Increased Period of Restoration

$ 250,000

−

Newly Acquired Locations

$ 500,000

−

Undescribed Premises

$ 100,000

−

Claim Data

$ 25,000

♦

Vehicle Damage – excluding over the road exposures

$ 3,000,000

♦

Electronic Data Processing Equipment, Data, and Media – per occurrence

$ 10,000,000

♦

Earthquake – Moderate Hazard Counties

$ 10,000,000

♦

Earthquake – All Other Counties; High Hazard Counties are excluded

$ 25,000,000

♦

Flood – Annual Aggregate; All Flood Zones EXCEPT Zones Prefixed A; Zone V is excluded

$ 10,000,000

SCHEDULE OF INSURANCE

(Continued)

Coverage

Limits

Property/Boiler & Machinery

(continued)

♦

Flood – Annual Aggregate; Zones Prefixed A

$ 2,500,000

♦

Accounts Receivable – per occurrence

$ 10,000,000

♦

Valuable Papers – per occurrence

$ 10,000,000

♦

Personal Property of Others – per occurrence

$ 25,000

♦

Fine Arts

−

Per Occurrence

$ 500,000

−

Maximum per item

$ 5,000

♦

Covered Property at Undescribed Premises – per occurrence

$ 2,000,000

♦

Leasehold Interest – per occurrence

$ 2,000,000

♦

Covered Property in Transit – per occurrence

$ 2,000,000

♦

Claim Data Expense – per occurrence

$ 25,000

♦

Debris Removal – additional limit

$ 250,000

♦

Pollutant Cleanup and Removal – annual aggregate

$ 100,000

♦

Newly Constructed or Acquired Property – at any one building

−

Per Occurrence

$ 10,000,000

−

Number of Days

365

♦

Outdoor Property including Debris Removal

−

Per Occurrence

$ 500,000

−

Maximum per Item – Trees, Shrubs and Plants

$ 1,000

♦

Personal Effects of Officers and Employees

−

Per Employee

$ 5,000

−

Per Occurrence

$ 100,000

SCHEDULE OF INSURANCE

(Continued)

Coverage

Limits

Property/Boiler & Machinery

(continued)

♦

Computer Virus – any one occurrence

$ 25,000

♦

Limited Fungus, Wet Rot and Dry Rot

$ 25,000

−

Per Occurrence

$ 25,000

−

Annual Aggregate

$ 100,000

♦

Ordinance or Law

−

Loss to Undamaged Portion – per occurrence

$ 10,000,000

−

Demolition – per occurrence

Included

Boiler and Machinery

♦

Maximum Limit in any one accident

$ 100,000,000

♦

Property Damage – any one accident

Included

♦

Business Income, Rental Value and Extra Expense – any one accident

Included

♦

Leasehold Interest – any one accident

Included

♦

Ammonia Contamination

$ 100,000

♦

Any Other Hazardous Substance

$ 100,000

♦

Water Damage – any one accident

$ 100,000

♦

Consequential Damage – any one accident

$ 100,000

♦

Expediting Expense

$ 100,000

Renovation Projects

♦

Maximum Limit at any one site

$ 5,000,000

♦

Maximum Limit at all sites

$ 10,000,000

♦

Property at Temporary Storage Location

$ 10,000

♦

Property in Transit

$ 10,000

SCHEDULE OF INSURANCE

(Continued)

Coverage

Limits

Property/Boiler & Machinery

(continued)

♦

Contractors Equipment

−

Per Occurrence

$ 3,000,000

−

Newly Acquired Contractors Equipment

$ 100,000

−

Equipment Rental – per occurrence

$ 100,000

♦

Errors and Omissions – per occurrence

$ 2,500,000

♦

Reimbursement of Mater Key Costs

$ 10,000

♦

Utility Services Combined Direct Damage and Time Element incl. Boiler and Machinery

$ 2,500,000

Deductibles

♦

Earthquake, Volcanic Eruption, Landslide, and Mine Subsidence

−

Moderate Hazard Counties – per occurrence

2%; $100,000 min.

−

All Other Counties EXCEPT High Hazard

$ 100,000

♦

Flood

−

Flood Zones Prefixed A

$ 500,000

−

All Other Flood Zones EXCEPT Zone V

$ 100,000

♦

Windstorm

−

High Hazard Wind Counties

5%; $250,000 min.

−

All Other Location

$ 100,000

♦

Boiler and Machinery

$ 10,000

−

Business Income and Rental Value

24 Hours

−

Extra Expense

24 Hours

♦

Utility Services

$ 100,000

♦

Any Other Covered Loss – per occurrence

$ 100,000

SCHEDULE OF INSURANCE

(Continued)

Coverage

Limits

Coverage:

Excess General Liability, Employment Practices, E & O, Automobile Liability

Insurer:

American Alternative Insurance Corporation

Policy Number: N3A2RL000003502

Policy Term: July 1, 2009 to July 1, 2010

♦

General Liability, Law Enforcement Liability, Fire Legal Liability

−

Per Occurrence

$ 5,000,000

−

Annual Aggregate

$ 5,000,000

−

Self Insured Retention – per occurrence

$ 150,000

♦

Automobile Liability

$ 1,000,000

−

Shares General Liability Limit

−

Self Insured Retention – Per Accident

$ 150,000

♦

Wrongful Acts Liability, Sexual Abuse, Sexual Harassment

−

Per Claim

$ 5,000,000

−

Annual Aggregate

$ 5,000,000

−

Self Insured Retention – per occurrence

$ 150,000

Coverage:

Excess Workers’ Compensation and Employers Liability

Insurer:

Midwest Employers Casualty Company

Policy Number: EWC006601

Policy Term: July 1, 2009 to July 1, 2010

♦

Workers’ Compensation

Statutory

♦

Employers Liability

$ 1,000,000

−

Bodily Injury - Each Accident

$ 1,000,000

−

Bodily Injury – Each Employee

$ 1,000,000

−

Bodily Injury – Policy Limit

$ 1,000,000

−

Self Insured Retention

$ 400,000

SCHEDULE OF INSURANCE

(Continued)

Coverage

Limits

Coverage: Crime

Insurer:

Travelers Casualty & Surety Company of America

Policy Number: 104315780

Policy Term: July 1, 2009 to July 1, 2010

♦

Public Employee Dishonesty

$ 1,000,000

♦

Forgery or Alteration

$ 1,000,000

♦

Money & Securities on Premises

$ 50,000

♦

Money & Securities - Messenger

$ 50,000

♦

Computer Fraud

$ 1,000,000

♦

Credit, Debit or charge Card Forgery

$ 1,000,000

♦

Investigative Costs

$ 100,000

♦

Deductible

$ 25,000

Coverage: Fiduciary

Insurer:

Travelers Casualty and Surety Company of America

Policy Number: 104452885

Policy Term: July 1, 2009 to July 1, 2010

♦

Annual Aggregate Limit of Liability

$ 1,000,000

♦

Deductible – per claim

$ 50,000

Coverage:

Storage Tank Third Party Liability and Cleanup

Insurer:

Zurich American Insurance Company

Policy Number: USC9426075

Policy Term: July 1, 2009 to July 1, 2010

♦

Each Claim

$ 1,000,000

♦

Annual Aggregate

$ 2,000,000

♦

Deductible – each claim

$ 5,000

SCHEDULE OF INSURANCE

(Continued)

Coverage

Limits

Coverage:

Volunteer Blanket Accident Insurance

Insurer:

National Union Fire Insurance Company of Pittsburgh, PA

Policy Number: SRG0009106050

Policy Term: July 1, 2009 to July 1, 2010

♦

Accidental Medical Expense Benefit

$ 10,000

♦

Accidental Death Benefit

$ 10,000

♦

Accidental Dismemberment Benefit

$ 10,000

♦

Annual Aggregate

$ 50,000

♦

Dental Maximum – per tooth

$ 250

♦

Deductible – per accident

$ 500

Coverage: Surety

Bond

Insurer:

Travelers Casualty and Surety Company of America

Policy Number: 104942380

Policy Term: July 2, 2009 to July 1, 2010

♦

Public Official – D. Hart, Treasurer

$ 5,000

Policy Number: 103653622

Policy Term: June 21, 2009 to June 21, 2010

♦

Workers’ Compensation Self-Insurance

$ 651,000

Policy Number: 104889842

Policy Term: February 20, 2007 to February 20, 2011

♦

Public Official – N. Eichelberg, Secretary to the Board of Education

$ 5,000

SCHEDULE OF INSURANCE

AS OF MAY 24, 2009

Coverage

Limits

C2E Building Corporation

Coverage: General

Liability

Insurer:

Mt. Vernon Fire Insurance Company (Surplus Lines)

Policy Number: CL2331903B

Policy Term: May 24, 2009 to May 24, 2010

♦

Each Occurrence

$ 1,000,000

♦

Personal & Advertising Injury

$ 1,000,000

♦

Medical Expense

$ 5,000

♦

Damages to Premises Rented to You

$ 100,000

♦

Products/Completed Operations Aggregate

Included

♦

General Aggregate

$ 2,000,000

Coverage:

Directors’ and Officers’ Liability

Insurer:

American International Specialty Lines (Surplus Lines)

Policy Number: 018800569

Policy Term: May 24, 2009 to May 24, 2010

♦

Annual Aggregate including Defense Costs

$ 1,000,000

♦

Retention

$ 1,000

♦

Continuity Date

May 24, 2004

Addendum "B"

2006 Bond Capital Improvements

Facility

Project

Type

Project

Budget

Complete

Construction

Bear Canyon Elementary

Addition/Remodel $3,530,704

2008

Summit View Elementary

Addition/Remodel

$3,147,862

2008

Fox Creek Elementary

Addition/Remodel

$3,851,263

2009

Coyote Creek Elementary

Addition/Remodel

$4,321,429

2010

Pine Grove Elementary

Addition/Remodel

$4,070,241

2010

Roxborough Elementary

Addition/Remodel

$4,685,230

2010

District Warehouse

Addition/Remodel $3,000,000

2008

Legend HS - F Pod

Addition/Remodel

$8,000,000

2008

Cresthill Middle School

Addition/Remodel

$10,913,331

2009

Douglas County HS

Addition/Remodel

$13,055,440

2011

Rock Canyon HS - F Pod

Addition/Remodel $8,000,000

2011

Chaparral H.S.

Bleachers

$30,000

2009

Cresthill M.S.

Bleachers

$80,000

2009

Sierra M.S.

Bleachers

$80,000

2009

D.C. Stadium

Bleachers

$520,000

2008

Sierra M.S.

Bus Loop

$100,000

2010

Wildcat Mountain

Bus Loop

$100,000

2010

Buffalo Ridge

Carpet

$150,000

2009

Cougar Run

Carpet

$150,000

2009

Iron Horse

Carpet

$150,000

2010

Larkspur

Carpet

$150,000

2008

Mountain View

Carpet

$150,000

2008

Pioneer

Carpet

$150,000

2009

Trailblazer

Carpet

$150,000

2010

Wildcat Mountain

Carpet

$150,000

2010

Acres Green Elementary

Elevator

$200,000

2008

Larkspur Elementary

Elevator

$200,000

2008

South Elementary

Elevator

$200,000

2008

Sierra M.S.

Floor - Gym

$100,000

2009

Larkspur

Floor - Gym

$25,000

2010

Chaparral H.S.

Floors

$100,000

2010

Sedalia

HVAC

$100,000

2010

West Terminal

HVAC

$500,000

2010

RVMS,SWMS,CRMS HVAC

$450,000

2010

Northeast HVAC

$50,000

2010

Mobiles

Life Cycle

Replacement

$1,750,000

2010

Sierra M.S.

Lockers

$50,000

2010

Mechanical Systems

Mechanical Upgrades

$300,000

2008

Special Needs

Modifications

$300,500

2008

CVHS

Parking Lot

$625,000

2007

Cherry Valley

Parking Lot

$30,000

2007

North Terminal

Parking Lot

$175,000

2010

Shea Stadium

Parking Lot

$60,000

2007

Pine Lane Primary

Parking Lot

$5,000

2007

Buffalo Ridge

Parking Lot

$45,000

2009

Chaparral H.S.

Parking Lot

$450,000

2009

Larkspur

Parking Lot

$45,000

2008

Pioneer

Parking Lot

$45,000

2009

Trailblazer

Parking Lot

$100,000

2010

Buffalo Ridge

Playground

$180,000

2007

Eagle Ridge

Playground

$180,000

2007

Sedalia

Playground

$12,000

2007

Ponderosa H.S.

Restroom - Special

Ed $100,000

2010

DCHS - South Building

Roof

$300,000

2009

Larkspur

Roof

$300,000

2009

Mountain View

Roof

$400,000

2007

Pine Lane Intermediate

Roof

$400,000

2007

Sedalia

Roof

$100,000

2008

South

Roof

$400,000

2008

Trailblazer, Buffalo Ridge

Security - Doors

$50,000

2010

West Terminal

Security Gates

$60,000

2007

High Schools

Security Stations

$200,000

2007

DCHS - South Building

Site

$80,000

2009

Chaparral H.S.

Tennis Courts

$150,000

2007

ThunderRidge H.S.

Tennis Courts

$150,000

2007

District Athletics

Title IX Program

$100,000

2010

RCHS,TRHS,CHS,MVHS Windows

$100,000

2010