MINUTES

Work Session – Board of Trustees

October 18, 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 Monday, October 18, 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: Dr. Barbara P. Mink, Chair/Presiding Officer; Mr. John F. Hernandez, Board Vice Chair; Dr. Lillian J. Davis; Mr. Allen H. Kaplan; Ms. Nan McRaven; Mr. Rafael Quintanilla; Ms. Veronica Rivera; and Dr. John Worley.  Mr. Jeffrey Richard, Board Secretary, was absent from 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 7985

Discussion:  Property Insurance Contract for Fiscal Year 2005

Chair Mink introduced the item and Mr. Ben Ferrell, Vice President for Business Services, presented information concerning the recommendation to award the property insurance contract to Travelers Insurance through USI Holdings Corporation.  He stated the current insurance policy would expire on December 4, 2004, and a Request for Proposal (RFP) process was followed to provide property insurance coverage.  An assessment of the bids was performed and a selection was made based on best value in accordance with Texas Education Code.  Cost, coverage and rating of the insurance carrier were used as the criteria for selection.  Mr. Ferrell stated the recommended carrier would result in a savings to Austin Community College in the amount of $146,118 from current costs for property insurance.  Trustees reviewed the 2005 property proposal results and the property insurance contract recommendations including the limit, deductible, FY04 premium, and the RFQ FY05 Premium.  Mr. Robert Reim, Insurance Consultant, and Mr. Ferrell responded to questions from Trustees.

 

Dr. Mink stated this item would be included on the agenda for possible action at the November 1, 2004, Board meeting.

 

Agenda Item 7986

Report on Building Use Fees

Dr. Mink introduced the item and Mr. Ben Ferrell provided information regarding the uses of the building fees.  The FY05 Budget projects $7,600,435 in Building Fee revenue.  The Revenue Bond Debt Service payment for FY05 is $3,061,041.  He stated the building fee is the largest fee assessed, and $9 of the $13 building fee was currently pledged to debt service on revenue bonds.  He said the remaining was budgeted for facilities improvement and maintenance.  Mr. Ferrell discussed debt service for revenue bonds and facilities improvements and maintenance.  He provided information on the documents provided in the agenda including:  Building Use Fee - 5-Year History & 5-Year Project; Survey of In-District Student Tuition & Fees at Urban Community College Districts; ACC Out-of-District Tuition versus Other Institutions; Texas State Required Fees (assumption:  required fees for a 3-hour History course); and The University of Texas at Austin Required Fees (assumption:  required fees for a 3-hour History course).  Mr. Ferrell and Mr. Neil Vickers, Director of Budget and Finance, responded to questions from Trustees.

 

[Trustee Nan McRaven left the meeting at 7:35 p.m.]

 

Trustees discussed a possible need to develop a Board policy to clarify or rename tuition/building use fees to address use of funds for maintenance and operations. 

Agenda Item 7987

Service Area Report

Chair Mink introduced the item and Dr. Stephen B. Kinslow, Executive Vice President, provided information concerning in-district and out-of-district students.  By State law Austin Community College is designated to serve all or parts of an eight county service area in which residents are designated as in-district (paying taxes to ACC) or out-of-district (non-taxpayers to ACC).  As the regional importance of ACC continues to grow, challenges related to accessibility to higher education and training, student cost of education, and funding challenges to ACC grow and require strategic focus.  Dr. Kinslow reviewed the service area and provided a summary of the ACC campus and centers; out-of-district demographics; out-of-district enrollments; a cost analysis of ACC centers; an overview of joining ACC, including Del Valle’s joining the ACC District in 2004 and efforts currently underway in San Marcos and at the Round Rock Higher Education Center; and a summary of Master Plan recommendations.

 

Ms. Soon Merz, Associate Vice President for Institutional Effectiveness, provided information regarding the independent school district (ISD) growth (total students), 1995-2003; ISD growth, 1995-2003 (non-white students, economically disadvantaged students, and a summation of high-growth student types).  She also provided information regarding high growth areas. 

 

Mr. Ben Ferrell discussed Texas Education Code, Section 130.077l, which allows a community college district to annex a city, by election, if the college district was already within that city.  He stated that College Legal Counsel advised that this option was available to ACC regarding the City of Austin.  This option would not require a petition, would not affect the terms of existing Board members, and would simply require the Board to order the election.  All qualified voters in both the existing district and the new territory, as proposed, may vote.  Passage would require a majority vote of the entire district as proposed.  He stated this could result in an additional $6,000,000 in revenue if the election were successful.  The next city-wide election is May 2005.  The election could be called as early as February 7 and as late as March 18, according to Legal Counsel.

 

Dr. Kinslow; Mr. Ferrell; Ms. Merz; and Dr. Luanne Preston, Director of Early College Start/ACC Centers, responded to questions from Trustees regarding possible locations for additional campuses; city/county annexations; and communications/committee regarding possible College annexations.

 

Dr. Kinslow reviewed Master Planning questions for which Board discussion was desired.  Trustees discussed the interest by districts in joining the Austin Community College District, a possible name change for the District, and single-member districts.  Additional information was requested by the Trustees regarding:  Early College Start waivers; distance education; operating costs and capital costs; possible review by the Advisory Committee for Finance and Budget; and the Round Rock Higher Education Center.

 

Agenda Item 7988

ACC Legislative Agenda Priorities

Chair Mink introduced the item and Dr. Aguero reviewed the statewide proposed priorities from the Texas Association of Community Colleges including appropriations by the 79th Texas Legislature to restore funding to community and technical colleges and funding benefits for community and technical colleges’ faculty and staff. 

 

Ms. Linda Young, Special Assistant to the President on Governmental Relations, presented the Austin Community College Legislative Appropriations:

§         Support the TACC priorities;

§         Broaden the current annexation laws for community college districts;

§         Request adjustment of the community college service area currently included in the Alamo Community College District on the western border of Guadalupe County that is part of the San Marcos Consolidated Independent School District, and move the service area line to include the ISD boundary;

§         Expand options for adjunct faculty health care benefits funding, and redefine the eligibility criteria to better reflect current trends in community colleges; and

§         Explore ways in which funding for two years of operating costs for the South Austin Campus can be included as a line item in the Appropriations budget.

 

Trustees discussed the need for active representation at the legislative hearings by Board members and appropriate staff.  

 

Dr. John Worley requested the following proposed revision to Texas Education Code be added  to ACC’s Legislative Agenda Priorities: 

 

§ 130.0032.  TUITION FOR STUDENTS RESIDING OUTSIDE OF DISTRICT.  
 
  (a)  The governing board of a public junior college 
district may allow a person who resides outside the district and who 
owns property subject to ad valorem taxation by the district, or a 
dependent of the person, to pay tuition at the rate applicable to a 
student who resides in the district.
  (b)  The governing board of a public junior college district 
may allow a person who resides outside the district and in the 
taxing district of a contiguous public junior college district to 
pay tuition and fees at the rate applicable to a student who resides 
in the district.
  (c)  The governing board of a public junior college district 
may allow a person who resides outside the district to pay tuition 
and fees at a rate less than the rate applicable to other persons 
residing outside the district, but not less than the rate 
applicable to a student who resides in the district, if the person:
         (1)  resides within the service area of the district;                         
         (2)  does not reside in an independent school district 
that meets the criteria of the coordinating board for the 
establishment of a junior college district under Section 130.013;  
and
         (32)  demonstrates financial need in accordance with 
rules adopted by the Texas Higher Education Coordinating Board.
 

Trustees discussed the need to prioritize the ACC Legislative Priorities, develop an implementation plan, and also a plan for visiting with legislators.  Trustees discussed communicating with legislators regarding the Legislative Priorities.

 

President’s Administrative Report

No report was presented.

 

Announcements

§         Trustee Kaplan provided a report on the Association of Community College Trustees (ACCT) Leadership Congress held in New Orleans, Louisiana, October 6-9, 2004.  Mr. Kaplan stated Alamo Community College District received a “Best Practices” award for their workforce development programs with the Boeing, Pratt & Whitney and Toyota companies and their Aerospace Academy, an Information Technology and Security Academy and a Manufacturing Academy which offer job training to high school juniors and seniors in partnership with local school districts and businesses.  Mr. Kaplan stated he was elected to a two-year term on the ACCT Nominations Committee from the Western Region.  Trustee Kaplan urged Trustees to attend the 2005 National Community College Legislative Summit to be held in Washington, D.C., February 13-16, 2005, and the Texas Breakfast meeting to be held during the Summit.
§         Trustee John Hernandez provided information regarding the upcoming “Friends of ACC” Golf Tournament to be held on October 23, with an 8 a.m. start, at the Riverside Golf Course and encouraged attendance.  He stated an awards ceremony would be held at noon.
§         Chair Mink stated the Texas Association of Community College Trustees and Administrators would be held on October 25-26, 2004,.at the Hyatt Regency Hotel, Austin.

 

Adjournment

Having no motion before the Board, the October 18, 2004, Work Session of the Austin Community College Board of Trustees was adjourned at 9:30 p.m.

 

Approved By

Jeffrey Richard, Secretary