MINUTES

Regular Meeting – Board of Trustees

May 3, 2004

 

 

In accordance with the terms and provisions of the Texas Open Meetings Act, Chapter 551 of Texas Government Code, the Board of Trustees of the Austin Community College District convened in public session on Tuesday, May 3, 2004, at 6:05 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 P. Mink, Board Vice Chair; Allen H. Kaplan, Secretary; Lillian Davis; John Hernandez; Nan McRaven [arrived at 6:15 p.m.]; and John Worley.  Trustee Beverly Silas was absent from the meeting.  Trustee Beverly Watts Davis resigned 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.

 

Recognitions

·        Mike Dellens, Math Instructor, and Stephanie Diina Dempsey, ACC Foundation, recognized student winners of the national math competition sponsored by the Math Association of 2-Year Colleges.  Mr. Dellens stated students compete in individual rounds in the Spring and Fall of each year.  Mr. Dellens expressed appreciation to the Austin Community College Foundation, Holt Rinehart & Winston Publishing Company, and the Math faculty for contributions to the awards.  Out of the 158 community colleges which participated in the competition, the Math students from Austin Community College finished in 14th place, and in first place in the sixteen community colleges within the Southwest Region.  Five of the eleven ACC winners this Spring were in attendance and introduced:

·     Tim Tennant, home-schooled student from Austin

·        Misoran Chang from  South Korea

·        Joon Chung from South Korea

·        Hoon Park of South Korea was the third highest scoring student at ACC in Spring 2004

·        Charles Medford of Austin was fifth in the Nation overall, out of approximately 6,000 students competing; first in the Region; and received a check from the Texas affiliate of the national association for finishing first last year.

 

Awards were presented to the students by Board Chair Rafael Quintanilla.  Trustees extended congratulations and expressed appreciation for the excellent representation of Austin Community College in the competition.

 

·        Gail Miller, Executive Director, Literacy Coalition of Central Texas, provided information regarding the Literacy Coalition concerning scholarships, an available hotline, networking luncheons, a provider directory, and website.  She expressed appreciation to the Board of Trustees for continuing support and introduced Rhetta Kelley, Chair, of the Literacy Coalition Board.  Ms. Kelley expressed appreciation to Dr. Mary Hensley, ACC Associate Vice President, and Mary Harris, Executive Director of Adult Education at ACC for participation in activities of the Coalition.  Ms. Kelley expressed appreciation to the Board of Trustees and ACC and presented a plaque created by Ben Sargent.  Mr. Quintanilla expressed appreciation for the plaque and the recognition.

 

[Trustee Nan McRaven arrived.]

                                                                            

Citizens Communication

·        Mark Goodrich, President of ACC/AFT, spoke regarding the Southern Association of Colleges and Schools (SACS) findings and provided suggestions.

·        James Yawz, student, spoke regarding the ACC upholstery program and classes.

·        Mary Porter, student, spoke regarding the ACC upholstery program and classes.

·        John Cise, ACC faculty, spoke regarding compensation.

·        Judith Riney, student, spoke regarding the ACC upholstery program and classes.

·        Noreen Hardwick, student, spoke regarding the ACC upholstery program and classes.

·        Betty Edgemond, South Austin citizen, spoke regarding the ACC Summer 2004 Course Schedule.

 

Reports from Associations

·        Adjunct Faculty Association – Don Becker, President, spoke regarding employee target compensation, health benefits, proposed the new position of Lecturer, and Senate Bill 1370 funding for health benefits.

·        Classified Employees Association – Judy Green, President, spoke regarding a joint forum for candidates for the ACC Board of Trustees; requested additional positions for the new campuses; compensation; and proposed changing the market value funding of positions from 95 percent to 100 percent.

·        Full-Time Faculty Senate – Daniel Traverso, President, distributed information and stated that the Faculty Senate voted on April 30, 2004, to support the request of Dr. Stephen B. Kinslow, Interim President, for twenty-six  additional full-time faculty members; faculty compensation; and SACS.

·        Professional-Technical Employees Association – John Kennie, President, spoke regarding compensation; master planning; staffing; and invited participation in the Association’s May 7 meeting at Highland Business Center.

·        Student Government AssociationScott Stewart, President, advised that this was his last meeting as President and spoke regarding a recent Retreat; Campus Student Activities; Board activities of ACC Student Life; Association’s upcoming elections; and the May 7 “Passing of the Gavel” program and dinner.  Trustee Allen Kaplan recognized Scott for his many accomplishments as Association President and the exemplary assistance he provided to the College, students, and community.

 

Reports to the Board

·        Report on Achievements and Recognitions – Bill Carter, Associate Vice President for Informational Technology, distributed the Kudos Report and called attention to recent awards/recognitions received by faculty/programs, staff, students, and Austin Community College.

·        Financial Report – March 2004 – Ben Ferrell, Vice President for Business Services, called attention to the March 2004 financial report noting that the College will have a positive balance of revenues versus expenditures for the current fiscal year and will meet the expectations of the Minimum Reserves Level policy (G-6) or the corrective action plan requirements.  Mr. Ferrell stated enrollments remain below expectations for the year.

 

CONSENT AGENDA

 

Agenda Item 7911

Minutes of March 22, 2004, Board Work Session; March 24, 2004, Special Meeting; March 25, 2004, April 6, 2004, Regular Meeting; and April 19, 2004, Board Work Session of the Austin Community College Board of Trustees

Recommendation:  That the Board of Trustees approve the minutes as presented.

 

Agenda Item 7912

Proposed Revisions to Board Policy G-1, College Budget

Recommendation:  That the Board of Trustees approve the proposed Revisions to Board Policy G-1, College Budget.

 

G-1.  COLLEGE BUDGET

                The President shall, prior to the end of June each year, develop and submit to the Board and for public review a proposed annual budget that:

 

                [1] Demonstrates compliance with all existing budget-related policy provisions and with debt obligations.

 

[2] Describes all expected fiscal activity of the District in an integrated form consistent with generally accepted accounting practices, showing what values are predicted for the main financial statements for the budget year based on the proposed budget targets and the most recent estimates for current-year performance.

 

[3].Provides adequate support for the educational programs of the College, based on efficient opera­tion of both direct and support services.

 

[4] Distributes resources primarily on objective criteria based on student enrollment and program needs, and provides a justification or plan for correction of any substantial disparities in the resources supplied to serve students in similar programs at different campuses.

 

[5] Budgets revenues and expenses for each category listed in the budget summary based on actual expected performance, with comparisons to both budget and current estimates for the previous year.  When there is substantial uncertainty about performance in an area, the associated budget project should be moderately conservative; in such cases, the administration should describe its targets for the area and the budget effects of the range of plausible outcomes.

 

[6] Budgets total revenue from recurring sources at least equal to total budgeted  expense, including appropriate capital-asset depreciation.  Nonrecurring expenses may be budgeted to be funded from prior-year surpluses to the extent that the ratio of net assets to total expenses exceeds the standard declared in the current master plan (or the prior five-year average if no standard has been declared).

 

[7] Budgets appropriate capital-equipment purchases and facilities development  for the year, consistent with a multi-year master plan developed in compliance with policy E-1 on Master Planning, in amounts at least equal to projected depreciation.

 

[8] Provides a recent history and (to the extent feasible) a three-year plan for tuition/fee levels, enrollment, overall revenues and expenses, principal and interest payments, capital-asset expenditures, net-asset levels, and minimum unrestricted-cash levels, with a description of planning assumptions and significant changes.

 

When deemed appropriate by the administration, capital items in an annual budget may be purchased during the period after budget approval but prior to the start of the fiscal year.

 

The President shall inform the Board whenever the actual performance of the College differs significantly from the approved budget, and shall propose corrective budget amendments if projected performance differs from the budget target for increase in net assets by more than ˝% of total revenues.

 

The President shall provide the Board a monthly financial report detailing year-to-date expenditures and revenues against the budget and a monthly revised fiscal-year projection of revenues, expenses, capital transactions, and cash levels.  The external auditor shall annually review the availability of timely data under the reporting system and make any recommendations to the President and Board of any improvement in the monthly reporting system that may be necessary.  The format of monthly statements shall include reports that match that of the annual budget and the audited annual statement to the extent feasible.

 

Agenda Item 7913

Proposed Revisions to Board Policy G-6, Cash Reserves (Minimum Reserve Levels)

Recommendation:  That the Board of Trustees approve the proposed revisions to Board Policy G-6, Cash Reserves (Minimum Reserve Levels).

 

Agenda Item 7914

Proposed Deletion of Board Policies G-4, Facilities Improvement and Maintenance, and G-5, Capital Equipment Projects

Recommendation:  That the Board of Trustees approve the proposed deletion of Board Policies G-4, Facilities Improvement and Maintenance, and G-5, Capital Equipment Projects.

 

G-4.  FACILITIES IMPROVEMENT & MAINTENANCE

                Each annual budget shall make transfers to Plant Funds sufficient to meet all bond debt payments, main­tain the debt payment reserve levels required by the bond agreements, and meet the year's install­ment of the current multi-year master plan for facilities improve­ments and maintenance.  The building fee charged by the college per credit hour shall be budgeted at the level which, together with any other funding sources dedicated to these uses, is sufficient to generate the needed funds.

G-5.  CAPITAL EQUIPMENT PROJECTS

        Each annual budget shall transfer not less than 4% or more than 6% of projected annual rev­enues to a fund from which Education and General Fund capital expenditures are made.  The full amount budgeted each year shall be based on the projected multi-year average budget for capital expenditures.  In those years in which the increase in annual revenue for the Education and General fund is projected to be below 4%, the annual transfer may be less than 4%.

 

Agenda Item 7915

Proposed New Policy, Capitalization and Depreciation

Recommendation:  That the Board of Trustees approve the proposed new Board Policy, Capitalization and Depreciation.

 

Capitalization and Depreciation

Capitalization and depreciation practices shall comply with generally accepted accounting practices, and shall provide information about the useful lives of physical assets for use in financial planning.  Appropriate bond financing shall be used to approximately match depreciation to reinvestment.

 

All assets with useful lives of more than one year and cost more than $500 shall be capitalized.  Assets shall be depreciated over their estimated useful lives using the straight-line method.  Facilities shall be depreciated based on industry-recognized major categories of building components, rather than by the facility as a whole.

 

Agenda Item 7916

Proposed Approval of Rio Grande Campus Redevelopment Analysis

Recommendation:  That the Board of Trustees authorize staff to hire an architectural/engineering firm to conduct an analysis of redevelopment options for the Rio Grande Campus.  The cost of the study will not exceed $75,000.  Funding for the project is included in the 2003 General Obligation Bonds.

 

Agenda Item 7917

Proposed Approval of Austin Community College Service Center Upgrades

Recommendation:  That the Board of Trustees approve a contract with Bartlett Cocke, LLP, in the amount of $131,700 for construction of code-required and safety upgrades for the Austin Community College Service Center.  Funding for the Service Center Safety Upgrades is to be provided from the remaining Revenue Bonds.

 

Trustee John Worley requested that Agenda Item 7813, Proposed Revisions to Board Policy G-6, Cash Reserves (Minimum Reserve Levels) be pulled from the Consent Agenda for discussion.

 

Trustees Nan McRaven moved and Lillian Davis seconded that:

MOTION:  The Board of Trustees approve Consent Agenda items 7911 - Minutes of March 22, 2004, Board Work Session; March 24, 2004, Special Meeting; March 25, 2004, Special Meeting; April 6, 2004, Regular Meeting; and April 19, 2004 Board Work Session; 7912 – Proposed Revisions to Board Policy G-1, College Budget; 7914 – Proposed Deletion of Board Policies G-4, Facilities Improvement and Maintenance, and G-5, Capital Equipment Projects; 7915 – Proposed New Board Policy, Capitalization and Depreciation; 7916 – Proposed Approval of Rio Grande Campus Redevelopment Analysis; and 7917 – Proposed Approval of ACC Service Center Upgrades as presented.

VOTE:  The Motion passed on a vote of 7-0.

FOR:  Lillian Davis, John Hernandez, Allen Kaplan, Nan McRaven, Barbara Mink, Rafael Quintanilla, and John Worley

AGAINST:  None.

ABSTAINING:  Mr. Kaplan abstained from the vote on Agenda Item 7917 -Proposed Approval of ACC Service Center Upgrades.

ABSENT:  Trustee Beverly Silas

 

Agenda Item 7913

Proposed Revisions to Board Policy G-6, Cash Reserves (Minimum Reserve Levels)

Trustee John Worley inquired regarding the proposed deletion of the second paragraph of the current policy.  Ben Ferrell, Vice President for Business Services and liaison to the Advisory Committee for Finance and Budget, provided information.

 

Trustees John Worley moved and Allen Kaplan seconded that:

MOTION: That the Board of Trustees approve the proposed revisions to Board Policy G-6, Cash Reserves (Minimum Reserve Levels) as presented.

VOTE:  The Motion passed on a vote of 7-0.

FOR:  Lillian Davis, John Hernandez, Allen Kaplan, Nan McRaven, Barbara Mink, Rafael Quintanilla, and John Worley

AGAINST:  None.

ABSENT:  Trustee Beverly Silas

 

 

G-6.  Cash Reserves

Austin Community College annual budgets shall seek to maintain throughout each fiscal year, unrestricted and unallocated cash levels of at least 8% of budgeted total annual expenses plus total accounts payable.  If unrestricted cash falls below this level, the President shall present a corrective plan to the Board of Trustees that will fully correct the shortfall within one year.

 

 

Items for Discussion/Possible Action

 

Agenda Item 7918

Matters Related to Conduct of May 15, 2004, Board of Trustees Election

Mr. Quintanilla introduced the item and Linda Young provided information regarding the proposed amendments to the Order setting the polling places and election officials for the May 15, 2004, general election.

 

Allen Kaplan moved and Nan McRaven seconded that:

MOTION:  That the Board of Trustees approve the proposed amendments to the Order setting the polling places and election officials for the May 15, 2004, general election.

VOTE:  The Motion passed on a vote of 7-0.

FOR:  Lillian Davis, John Hernandez, Allen Kaplan, Nan McRaven, Barbara Mink, Rafael Quintanilla, and John Worley

AGAINST:  None.

ABSENT:  Trustee Beverly Silas.

 

Ms. Young called attention to subsequent information provided by Travis County regarding the anticipated cost for providing voting services for a runoff election.  She stated that the cost was earlier estimated at approximately $200,000.  Travis County has since revised the estimated cost to be $391,000 for runoff election services.  Trustees discussed the possibility of the College conducting the June 19 runoff election.

 

Allen Kaplan moved and John Worley seconded that:

MOTION:  The Board of Trustees authorize Austin Community College to conduct the June 19, 2004, runoff election.

VOTE:  The Motion passed on a vote of 7-0.

FOR:  Lillian Davis, John Hernandez, Allen Kaplan, Nan McRaven, Barbara Mink, Rafael Quintanilla, and John Worley

AGAINST:  None.

ABSENT:  Trustee Beverly Silas.

 

Agenda Item 7919

FY2005 Full-Time Faculty Positions

Mr. Quintanilla introduced the item and Dr. Steve Kinslow provided information concerning the Administration’s request to hire additional full-time faculty to ensure that Fall 2004 sections remain as planned.  The additional full-time faculty would help ensure that ACC would not reduce the number of sections offered and it would also respond to a long-standing SACS suggestion that ACC should increase full-time faculty and decrease reliance on adjunct faculty.

 

Allen Kaplan moved and Nan McRaven seconded that:

MOTION:  The Board of Trustees authorize the Administration to begin the hiring process for full-time faculty, including 26 additional positions, for Fiscal Year 2005.

Trustees discussed the SACS credentials issue, advertising process, class sections, and diversity opportunities.

VOTE:  The Motion passed on a vote of 7-0.

FOR:  Lillian Davis, John Hernandez, Allen Kaplan, Nan McRaven, Barbara Mink, Rafael Quintanilla, and John Worley

AGAINST:  None.

ABSENT:  Trustee Beverly Silas.

 

The agenda was re-ordered.

 

Agenda Item 7921

Consideration and Action Approving a Resolution Authorizing the Appointment of Underwriters and the Approval and Use of the Preliminary Official Statement in Connection with the Issuance of $24,000,000 Austin Community College District Limited Tax Bonds, Series 2004

Mr. Quintanilla introduced the item and Ben Ferrell introduced Jorge Rodriguez of Coastal Securities and College Financial Adviser.  Mr. Rodriguez presented information regarding a handout on Limited Tax Bonds Series 2004 and spoke regarding interest rates, bond index, and cost of funds.  He stated the recommended syndicate was JPMorgan as Senior Manager; Estrada Hinojosa, Co-Senior Manager; and RBC Dain Rauscher, as Co-Manager.  Mr. Rodriguez provided a financing timeline including: 

·        May 3 – Board Action:  Appointment of Underwriters, Approval of Reimbursement Resolution, and Approval of Financing and Preliminary Official Statement

·        May 9 – Del Valle Election

·        May 20 – Send documents to rating agencies and insurance companies

·        June 1 – Ratings and insurance bids due

·        June 3 – Pricing

·        June 7 – Board Action:  Execution of Bond Purchase Agreement; Approval of Bond Resolution

·        June 30 – Closing and Delivery of Funds

 

Mr. Rodriguez expressed the need for early discussion and Board action due to recent movements in interest rates and responded to questions from Trustees.

 

Allen Kaplan moved and Nan McRaven seconded that:

MOTION:  The Board of Trustees approve the Resolution Authorizing the Appointment of Underwriters and the Approval and Use of the Preliminary Official Statement in Connection with the Issuance of $24,000,000 Austin Community College District Limited Tax Bonds, Series 2004, as presented.

VOTE:  The Motion passed on a vote of 7-0.

FOR:  Lillian Davis, John Hernandez, Allen Kaplan, Nan McRaven, Barbara Mink, Rafael Quintanilla, and John Worley

AGAINST:  None.

ABSENT:  Trustee Beverly Silas.

 

Agenda Item 7920

Presidential Contract

Mr. Quintanilla introduced the item and stated this would be discussed in Executive Session.

 

Executive Session

The Austin Community College Board of Trustees recessed into Executive Session at 8:10 p.m. pursuant to Government Code 551.074, related to personnel matters including terms of the College President’s contract.

 

Reconvene

The Austin Community College Board of Trustees reconvened in Public Session at 8:34 p.m. pursuant to Government Code 551. 

 

Agenda Item 7920

Presidential Contract

Nan McRaven moved and Allen Kaplan seconded:

MOTION:  That the Board Chair continue negotiations on the Presidential Contract along the parameters as discussed in Executive Session.

VOTE:  The Motion passed on a vote of 7-0.

FOR:  Lillian Davis, John Hernandez, Allen Kaplan, Nan McRaven, Barbara Mink, Rafael Quintanilla, and John Worley

AGAINST:  None.

ABSENT:  Trustee Beverly Silas.

 

[Trustee Nan McRaven left the meeting.]

 

NEW BUSINESS:

 

Agenda Item 7922

Master Plan – Annual Update

Mr. Quintanilla introduced the item and Dr. Kinslow stated the item was an overview of the process and additional information would be presented at the June meeting.  He called attention to changes in the process and expressed appreciation to Ron Brey for the leadership role in the Master Planning Process; Andrew Christie and Bill Carter and staff for programming activities; Richard Smith and Elizabeth Fararr in Instructional Resources Technology for assistance.

 

Ron Brey, Associate Vice President for Instructional Resources and Technology, presented an ACC Master Plan overview; guiding principles, strategic priorities and key objectives; Master Plan initiatives/objectives/measurable outcomes/web site/on-line data, initiative level; shared governance cluster groups; FY05 initiative funding; funds requested; positions requested; Institutional Planning Committee prioritization of 486 initiative objectives recommended; South Austin Campus; impact on facilities; criteria to prioritize initiatives; initiative objectives; and criteria for all initiative objectives. 

 

Ben Ferrell provided information regarding funding implications for the Master Plan.  Mr. Ferrell and Mr. Brey responded to questions from Trustees

 

Agenda Item 7923

Review of Fiscal Year 2005 Projected Expenses

Mr. Quintanilla introduced the item and Ben Ferrell.  He called attention to the format and stated the  College’s 2005 budget would be presented in that format, including revenues and expenditures.  Mr. Ferrell responded to questions from Trustees.

 

Announcements

·        Vice Chair Barbara Mink stated that a reception would be held on May 17 to honor Trustee Beverly Silas who was not seeking re-election. 

·        Dr. Mink provided Trustees with the self-assessment document.

·        Dr. Mink expressed appreciation for the recent College art festival and the incredible professionalism within the arts community at Austin Community College.  In terms of the quality of the theatre and performance, it was excellent.

·        Trustee John Hernandez reminded Trustees of the Del Valle election on May 15.

 

Meeting Review

Trustees commented regarding the meeting: 

What we did well:  very good meeting, appreciated report on Master Plan, it is good to see the pieces pulling together, did very well and actually took some actions; very good meeting, I think how we started with students getting the Math awards and how well they are doing competing against other institutions speaks well of the institution, we should keep that in mind that it is how are our students doing, that’s what we should keep track of; liked the way we stayed on the macro perspective on revising the policies, looking through financing of bonds; particularly like the report on the Master plan, it didn’t just repeat what was in our agenda materials, it told us something new and helped us understand what was in the materials; good meeting; good meeting, was well planned and we worked through our topics sufficiently.

What we can do better:  at the beginning of the meeting we need to remind the speakers of the three-minute and five-minute and remind them of what the red light means.

 

Adjournment

Having no motion before the Board, the May 3, 2004, Regular Meeting of the Austin Community College Board of Trustees was adjourned at 9:25 p.m.

 

Approved By          

Allen H. Kaplan, Secretary