well you have 2 choices, actually 3, but the 1st one is you can have php code in there and name the file a .phtml ( some servers have problems with this configuration) regualr.html files won't process php. has to be either .php or .phtml or php3.

or you can use this.
<script language="php" runat="server">

you code here
(not sure if you need the <? ?> tags)
</script>

or take the php out and do it normally. I would also have to agree with josh, what's your bosses reasoning?