1 Business Operations October 27, 2011 HOUSTON INDEPENDENT SCHOOL DISTRICT Construction and Facility Services Transportation Food Services Police Business Assistance Leo Bobadilla, Chief Operating Officer

2 Business Operations- Overview 5,000 employees supporting the work of our schools everyday. $230 million annual operating budget 30 million sq. ft. of space in over 300 locations Serve over 240,000 meals a day Drive over 12 million miles annually transporting 29,000 students Protect students/staff with a fully accredited police force with almost 200 sworn officers. $1.1 billion capital building program Insure over $3.2 billion in assets Process over 17,000 warehouse purchase orders Maintain a fleet of over 2000 vehicles

3 What drives us… Customer-Focused (exceed expectations) Innovative-Thinking (continuous improvement) Team-Work (together we can) Solution-Driven (no excuses) Relationship-Building (engage our stakeholders) Safety and Integrity in everything we do

4 Data Driven…Of course Metrics Custodial Cost per Square Foot% of work orders completed annually Custodial Workload (Sq. Ft. Per Custodian)Number of building code and fire marshal violations M&O Expenditures as % of General Fund Expenditures % of employees participating in > or = 40 hrs. of job specific professional development Maintenance Cost Per Sq. Ft.% of open positions unfilled in > 90 days Work Order Completion Time (in Days)Customer service survey results Custodial Supply Costs per Square Foot% of projects completed at or under budget Utility Usage per Square Foot% of projects completed on schedule Response time for priority 1 work orders% Minority/Women Owned Business Enterprises Participation Average completion time for priority 1 and 2 work orders Preventable versus non-preventable accidents. On-time performanceAverage Age of Fleet Miles Between AccidentsCost per District-Operated Bus Average Daily Ride TimeBus accidents per 100,000 miles

5 More Metrics Metrics Annual hours of training for each driver Bus operator attendance per route Route riders per mile – regular / magnet Food Services Total Costs per Revenue Route riders per mile – special educationFood Costs per Revenue Route riders per bus – regular / magnetFood Services Labor Costs per Revenue Route riders per bus – special educationFund Balance as a Percent of Revenue Miles between road calls or breakdownsAverage meals per labor hour Maximum rider trip timeBreakfast and Lunch participation rates Turnover time per bus repair% of campuses receiving 2 required site visits by City of Houston Health Inspectors Cost per route%of campuses receiving 2 documented visits by Quality Control Department Cost per student rider% of internal warehouse orders filled accurately % of state reimbursementAverage response time for priority 1 calls-Police Transportation costs as a percent of general fundSupplier On-time Delivery performance %preventive maintenance completed on time# of Campus Safety Inspections, Fire Safety Inspections, and Intruder Drills conducted Between CGCS KPI work and our local metrics we have over 200 metrics to gauge our performance.

Highlights- By the numbers Maintenance overtime reduced by over 60%...productivity increased. ($4.3M savings) Preventative maintenance teams inputting more than 50% of all work orders. Painting cycle cut by over 50% while reducing costs. EPA Tools for Schools implementation –saving over $100k by proactively managing Indoor Air Quality. Transportation costs as a percentage of the general fund is 2.90% which is below state average of 3.32% Crime in and around schools is down by 7.8% Whole grains at lunch increased by 71% Dark green/orange vegetable servings increased by 9%

Highlights- By the numbers Bond Work: Keeping our Promises – Planning Phase:32 projects – Design Phase:51 projects – Bid-Award Phase:20 projects – Construction Phase:61 projects – Warranty Phase:14 projects TOTAL178 projects 8 new schools opened (built to Leadership in Energy and Environmental Design (LEED) Standards) Over 8000 security cameras installed in schools. Overall M/WBE Participation (Bond): 31%

Highlights- By the numbers

Highlights-In Pictures Central production facility- improved quality control and ingredient control (less fat, sugar, and salt with more whole grains) Working with local farmers to bring more fresh fruits/vegetables to students New dining concept lines-more fresh, healthy choices Breakfast in the classroom- All ES and MS implementation

10 Grant for salad bars in schools Highlights-In Pictures

11 Multi-million dollar grant for propane buses Highlights-In Pictures Cost-effective, efficient and environmentally responsible operations Only school district recognized in the 100 Best Fleets in the nation

Highlights-In Pictures Stakeholder Engagement

Highlights-In Pictures Bus Advertising- New Revenue Source Teamwork and Employee Recognition University Of Houston, Cullen College Of Engineering/ HISD Partnership To Test Emerging Technology On Reducing Diesel Emissions

Highlights-In Pictures New Schools/Renovations/Additions- spaces conducive to learning providing, among other features, safety enhancements, state-of-the-art technology, improved indoor air quality and energy/resource conservation.

15 Thank you Our students are counting on us everyday!