MINUTES

Board Work Session - Board of Trustees

January 26, 2004

In accordance with the terms and provisions of the Texas Open Meetings Act, Chapter 551 of the Texas Government Code, the Board of Trustees of the Austin Community College District convened in public session on Monday, January 26, 2004, at 6:00 p.m. in the Board Room (201) of the Highland Business Center of Austin Community College located at 5930 Middle Fiskville Road, Austin, Texas, with the following members present: Rafael Quintanilla, Chair /Presiding Officer; Barbara Mink, Vice Chair; Allen Kaplan, Secretary; Lillian J. Davis; John Hernandez; Nan McRaven [arrived at 6:07 p.m.]; Beverly S. Silas; and John Worley. Trustee Beverly Watts Davis resigned from the Board of Trustees effective October 1, 2003, and, therefore, did not attend the meeting.

It is further found and determined that in accordance with the policies and orders of this Board, the notice of this meeting has been posted and return thereof made pursuant to the terms and provisions of the Texas Open Meetings Act, Chapter 551 of the Texas Government Code, and there has been full compliance with the terms and provisions of said act, including the timely posting of the subjects of this meeting.

Items for Discussion/Possible Action

Agenda Item 7841

Report from Advisory Committee on Finance and Budget

Mr. Quintanilla introduced the item and Kathryn Schwerdtfeger, Committee Chair, introduced other members of the Committee in attendance: Ben Ferrell; Hunter Ellinger; Pete Palazari; and Bob Rutishauser. Summary recommendations from the Committee on Board reserve/budget policies included:

[1] Make its budgets and monthly financial reports better match the format of the audited financial statements, and include all aspects of college finances in an integrated form.

[2] Use a reserves measure more directly related to annual-minimum unallocated cash, lower the minimum permitted for that measure to a level modestly above the greatest historical shortfall, and require correction of future reserves shortfalls within a year.

[3] Use preservation of net-asset levels and ratios as the best measure of financial health, and require that ACC budgets be balanced under such standard accrual-based measures. This entails appropriate use of depreciation in budgeting and planning, which will eliminate the need for arbitrary capital-related budget set-aside percentages.

Policy-amendment language to accomplish these goals was provided.

The Committee also presented a preliminary report on discussions involving tuition and fee waivers for the Early College Start program.

Agenda Item 7842

FY03 External Audit/Management Letter

Mr. Quintanilla introduced the item. Ben Ferrell, Vice President for Business Services, stated the audit was conducted by Garza/Gonzalez & Associates, CPA’s, San Antonio, Texas. He introduced Dora Verde and Richard Galindo of Garza/Gonzalez & Associates. Ms. Verde stated the audit gave ACC an unqualified (“clean”) opinion which assures the Board that the financial statements present fairly in all respects the financial position of the District as of August 31, 2003., and were prepared in conformity with applicable accounting and auditing standards for government colleges and universities in the United States. In addition, the District had included statistical data in the audit as required by the Government Finance Officers Association (GF)S) in order to provide the public with an enhanced understanding of District Finances. She stated that during the course of the audit a problem with recordkeeping of the Culinary Arts program was found, and follow up would occur. Ms. Verde called attention to the need for the District to follow through with the federally-required inventory of fixed assets. She expressed appreciation to Ben Ferrell, Leslie Sabin, Neil Vickers, and other staff for provision of the information needed in a timely manner.

Executive Session

The Austin Community College Board of Trustees recessed into Executive Session at 7:12 p.m. pursuant to Government Code 551.074, related to personnel matters including the Presidential search.

Reconvene

The Board of Trustees reconvened in public session at 8:17 p.m. pursuant to Texas Government Code 551.

Agenda Items 7843

Facility Management Services and Software

Mr. Quintanilla stated that discussion of this item would be postponed due to time and the lengthy agenda.

Agenda Items 7844

Proposed Approval of Owner-Controlled Insurance Program

Mr. Quintanilla stated that discussion of this item would be postponed due to time and the lengthy agenda

Agenda Items 7845

Curriculum Process Overview

Mr. Quintanilla introduced the item and Dr. Donetta Goodall, ACC Associate Vice President for Academic Programs, and Mike Midgley, ACC Interim Associate Vice President for Workforce Education, provided an overview of current ACC programs and program distribution by campus; the Program Review Process which guides which programs are continued; factors which are considered in determining new programs to implement; the process for safeguarding instructional integrity; and the section review and revision process. Dr. Goodall and Mr. Midgley responded to questions from Trustees.

Agenda Item 7846

Rio Grande Campus Facilities Planning

Mr. Quintanilla introduced the item and Bronson Dorsey, ACC Associate Vice President for Facilities and Operations, provided information regarding the proposed facilities planning for the Rio Grande Campus. ACC is scheduled to make a decision regarding the purchase of the Rio Grande Campus from the Austin Independent School District in March 2004. Acquisition of the property would allow the College to begin renovations for deferred maintenance and curricular needs. Four separate items were included in the 2003 bond referendum for the Rio Grande Campus:

· Purchase - $4.75 million

· Renovations - $11.0 million

· Parking Garage - $15.0 million

· Offices over Garage - $3.2 million

He discussed a recent facilities condition audit which highlighted the current deficiencies and projected capital renewal needs for the Rio Grande property:

· Replacement Value - $33,074, 348

· Current Deficiencies - $10, 710, 217

· Facility Condition Index (FCI) – 0.324 (poor)

· 20-year Capital Renewal Cost - $34, 929,000

Mr. Dorsey provided information regarding the critical issues for the Rio Grande Campus including: curricular and functional improvements needed; projected space needs; parking; proposed space allocation; projected capital needs (2003-2010); and a conceptual schedule for construction and renovation.

Mr. Dorsey and Dr. Stephen B. Kinslow, Interim President, responded to questions from Trustees.

Agenda Item 7847

Pinnacle Campus Facilities Planning

Mr. Quintanilla stated discussion of this item would be postponed until a later date.

Agenda Item 7848

In-District Priority Registration

Mr. Quintanilla stated discussion of this item would be postponed until a later date.

Announcements

There were no announcements.

Quick Meeting Evaluation

Trustees commented regarding the meeting:

What we did well: good meeting; good meeting; enjoyed the meeting, particularly the report from the Advisory Committee for Finance and Budget; Advisory Committee for Finance and Budget did an exceptional job; good meeting and want to thank the administration and budget department and the auditors, they did a really, really good job; great meeting, expressed appreciation to Donetta Goodall, Mike Midgley, and Bronson Dorsey for the information presented.

What we can do better: No comments.

Adjournment

Having no motion before the Board, the January 26, 2004, Work Session of the Austin Community College Board of Trustees was adjourned at 10:05 p.m.

Approved By

Allen H. Kaplan, Secretary