MINUTES

Regular Meeting – Board of Trustees

December 13, 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, December 13, 2004, at 6:02 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; Mr. Jeffrey Richard, Secretary; Dr. Lillian J. Davis; Mr. Allen H. Kaplan; Ms. Nan McRaven [arrived at 6:10 p.m.]; Mr. Rafael Quintanilla; Ms. Veronica Rivera; and Dr. John Worley.

 

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

§         A check in the amount of $75,000 was presented to Mr. Daron Butler, Chair of the Austin Community College Foundation Board, from the American Association of University Women.  The check was presented by Pam Plunkett, AAUW President, and Pam Wolfe of the Scholarship Committee.  A $2,500 check was also presented from the AAUW Frances Marburger endowed scholarship. 

 

The following Austin Community College students were recognized for placing in recent math competitions and presented with checks from the Austin Community College Foundation Board by Mr. Butler and Mike Dellens, math instructor at Austin Community College:  Luke Wyman; Dhruv Desai; Lori Kinnard; Kambiz Mokhtari; Geeta Persad; and Time Tennant.

 

Trustees expressed appreciation for the gift from the American Association of University Women and congratulated the math student contest winners.

 

§         Dr. Gerry Tucker, Associate Vice President, introduced new employee Sherry Rodriguez, Compensation Specialist in the Human Resources Office.

 

§         Report on Achievements and Recognitions – Dr. Stephen B. Kinslow, Executive Vice President, presented the Kudos Report and called attention to recent awards/recognitions received by faculty/programs, staff, students, and Austin Community College.

 

Citizens Communication

·        Mr. Mike Haney, Capital IDEA Board member, distributed information and provided an update of the work of Capital IDEA and ACC partnership and planning to provide support services to disadvantaged adults.  He expressed appreciation to Dr. Donetta Goodall, Associate Vice President, and other ACC staff for their assistance to Capital IDEA..

·        Phillis Hanes, Capital IDEA student, spoke regarding the assistance provided by Capital IDEA to enable her to reach her goals and obtain employment in the medical field.

·        Fannie Akingbala, of Austin Interfaith and Capital IDEA Board member, expressed appreciation to Austin Community College and stated her desire for the Capital IDEA enrollment to double  within the next few years.

·        Guadalupe Sosa, South Austin Campus Advisory Committee, distributed information and spoke regarding the South Austin Campus Advisory Committee and the status of the South Austin Campus.

 

Reports from Associations

·        Adjunct Faculty Association – Mr. John Herndon, President, spoke regarding compensation and a possible change of title for adjunct faculty

·        Classified Employees Association – Mr. Tobin Wiegand, President-Elect, expressed appreciation for attendance of several Trustees at the Association’s recent meeting; spoke regarding annexations; and congratulated the Board and College for the recent action by the Southern Association of Colleges and Schools (SACS).

·        Full-Time Faculty Senate – Mr. Larry Willoughby, President, spoke regarding support by the Association for a possible change of title for adjunct faculty; and expressed appreciation for the successful meetings and discussions with the Administration during the Fall semester, the work of the Board of Trustees, and the dedication of faculty and students.

·        Professional-Technical Employees Association – Ms. Linda Morrison, President, expressed appreciation for meetings with College President and his leadership team, called for reinstatement of the tuition vouchers for employee dependents, and stated the Association meeting will meet on January 28 with Toby Futrell, Austin City Manager.  She also expressed appreciation for the College’s response to the Holiday Project.

·        Student Government AssociationMr. James “Levi” Barnes, President, spoke regarding Association activities; expressed appreciation for the opportunity for students to address the Board, recent meetings with administrators; and to all for allowing the Student Government Association to meet its goals for the Fall semester; stated his appreciation for Dr. Aguero’s recent meeting with Austin Community College students with disabilities at the Rio Grande Campus; introduced Nick Nyder, Association Treasurer, and A. J. Bennett, Senator at the Riverside Campus.

 

President’s Administrative Report

Dr. Robert Aguero, College President stated:

·        Recent priorities discussed at the November 15, 2004, Board Retreat would be presented to the Board for review and approval;

·        Board policy review priorities would be placed on the agenda for an upcoming meeting;

·        The breakfast meeting with the legislative delegation would be held on Tuesday, December 14; and

·         The Commission on Colleges from the Southern Association of Colleges and Schools (SACS) recommended that Austin Community College be removed from Warning status and be granted reaffirmation.  He stated official notification from SACS would be sent by letter.

 

Financial Report – October 2004

Mr. Ben Ferrell, Vice President for Business Services, called attention to the October 2004 financial report including details of the revenue summary for the period of September 1-October 31, 2004; expenditures and transfers summary for September 1-October 31, 2004, including salaries and plant transfers.  He noted that the College would have a positive balance of revenues versus expenditures for the Fiscal Year 2005 and would meet the expectations of the Cash Reserves Board Policy G-6 or the corrective action plan requirements. 

 

Mr. Ferrell responded to questions from Trustees regarding the comparison of decreases from Spring 2003 to Spring 2004 and the decrease in Internal Programs enrollment.

 

Reports to the Board

·        Advisory Committee for Finance and Budget – Topics for Review - Mr. Ferrell called attention to the Work Plan for the Board Advisory Committee on Finance and Budget adopted by the Committee on September 16, 2003, and updated information concerning the Committee’s composition.  Mr. Hunter Ellinger, Committee member and former Trustee, stated the Committee would have an analysis on Early College Start in January 2005, as well as out-of-district tuition.  He requested that the Committee be provided with topics to be considered following the January or February Committee meetings.  Mr. Ellinger responded to questions from Trustees.  Appreciation was expressed to Mr. Ellinger for the information presented.

 

CONSENT AGENDA

 

Chair Mink introduced the Consent Agenda:

 

Agenda Item 7995

Minutes of the of the November 1, 2004, Regular Board Meeting, November 15, 2004, Special Board Meeting; and the November 15, 2004, Retreat of the Austin Community College Board of Trustees

 

Trustees Allen Kaplan moved and Nan McRaven seconded that:

MOTION:  The Board of Trustees approve the minutes of the November 1, 2004, Regular Board meeting; November 15, 2004, Special Board meeting; and the November 15, 2004, Retreat of the Austin Community College Board of Trustees

VOTE:  The motion passed on a vote of 9-0.

FOR:  Dr. Lillian J. Davis, Mr. John F. Hernandez, Mr. Allen H. Kaplan, Ms. Nan McRaven, Dr. Barbara P. Mink, Mr. Rafael Quintanilla, Mr. Jeffrey Richards, Ms. Veronica Rivera, and Dr. John Worley.

Trustee Rivera stated she was absent from the November 15, 2004, Special Board meeting and the November 15, 2004, Board Retreat and, therefore, wished to abstain from the vote on the minutes for those meetings.

AGAINST:  None.

 

Agenda Item 7996

Approval at First Reading:  Additional Parking for Eastview Campus Parking Lot

 

Dr. Mink introduced the item and Ben Ferrell provided updated information regarding the need for additional funding in the amount of $250,000 including a contingency amount for the Eastview Campus Parking Lot Project.  He stated delaying action would cause additional expense to the College and, therefore, requested approval at first reading of the item.  

 

The Eastview parking lot was originally approved as a $1.2 million addition to the $14 million Health Sciences Building construction project.  The project total was $15.2 million.  The additional parking was approved by the Board of Trustees  to alleviate the parkign shortage at the campus, and allow full use of the facility being constructed pursuant to City of Austin parking requirements.  Shortly before construction of the parking lot was to begin, an environmental group challenged the project.  It was the understanding of staff that the project would not be allowed to move forward by the City of Austin in time to open the campus for classes in the 2005 Spring semester without the design and construction material changes.  The cost of the changes and additional construction materials resulted in a charge order for $169,873 in construction costs over the original Guaranteed Maximum Price of $1,064,962.  Additionally, design and engineering survey fees of $36,000 were not included as part of the project budget, but were required in the original estimation of project costs and in redesign.  Total funds needed to complete construction were $205,000.

 

Staff requested authorization for approval of $250,000 ($205,000 plus contingency) in order to cover the cost of finishing the parking lot, funding the engineering survey work prior to the establishment of the construction budget, and providing for a contingency.  It was not anticipated that all funds would be used, but staff asked for the additional contingency amount to avoid further delays in construction of the parking lot.  Unused funds would revert to the construction fund.

 

The additional funding requested is available from improved interest earnings on the General Obligation bond funds.

 

Mr. Ferrell introduced Mr. Tommy Cowan of Graeber, Simmons, and Cowan, and representatives from the project’s architectural firm, engineering firm, and construction company.

Mr. Cowan distributed information and the project team discussed the programming, design, and budget; permitting and plan approvals; and recapped the Govalle parking lot construction costs.  Mr. Cowan and the construction team responded to questions from Trustees regarding:  action by the City Planning Commission, neighborhood environmental assessment and friendliness; savings of interest income, zoning changes including effect of changing to “p” for Public zoning, Guaranteed Maximum Price (GMP), change of project scope which resulted in the need for additional parking; other environmental testing at the Eastview Campus, and expenses incurred to date. 

 

Trustees asked the consequences if the additional funds were not approved at first reading.  It was stated that the cost would be approximately $30,000 ($1,000/day plus increasing cost of materials) to delay the project until the January 18, 2005, Board meeting at which second reading could occur.

 

Trustees Rafael Quintanilla moved and Nan McRaven seconded that:

MOTION:  The Board of Trustees approve on first reading the request brought forward by College staff for an additional $250,000 ($205,000 plus contingency) and the staff’s plan for funding the $250,000.

VOTE:  The motion passed on a vote of 8-1.

FOR:  Dr. Lillian J. Davis, Mr. John F. Hernandez, Ms. Nan McRaven, Dr. Barbara P. Mink, Mr. Rafael Quintanilla, Mr. Jeffrey Richards, Ms. Veronica Rivera, and Dr. John Worley.

AGAINST:  Mr. Allen H. Kaplan.

 

Recess

Dr. Mink recessed the December 13, 2004, Regular meeting of the Board of Trustees of Austin Community College at 8:11 p.m. for a short break.

 

Reconvene

Dr. Mink reconvened the December 13, 2004, Regular meeting of the Board of Trustees of Austin Community College in public session pursuant to Texas Government Code 551 at 8:22 p.m.

 

Agenda Item 7997

Adoption at First Reading:  Resolution Regarding Establishment of Tax Increment Reinvestment Zone (TIRZ) by City of Austin at the City’s former Municipal Airport site, Currently known as Mueller, Including Waiver of applicable notices and Waiver of Representation on Zone Board

 

Board Chair Barbara Mink introduced the item.  Dr. Robert Aguero, College President, provided information regarding the City’s request for approval of a resolution regarding the Tax Increment Reinvestment Zone.  He stated the property designated for the Zone was currently owned by the City of Austin.  Dr. Aguero said the City was not requesting participation by Austin Community College as a part of the creation of this Zone.

 

Dr. Aguero introduced Mr. John Stephens, Chief Financial Officer for the City of Austin.  Mr. Stephens presented information regarding the TIRZ presentation outline, the proposed reinvestment zone, the proposed development,  project costs, financial strategies, pro forma assumptions, pro forma base case projection, City’s return, City’s commitments related to debt, Catellus’ financial commitments, goals achieved, and the requested action including waiver of applicable notices and waiver of representation on Zone Board.  He stated there would be no cost to Austin Community College.

 

Mr. Stephens responded to questions from Trustees regarding tax increments and establishment of January 1, 2005, as the base line for taxing, negative land value, and ad valorem taxing.

 

Board Secretary Jeffrey Richard called attention to the Board’s policy regarding two readings on all Board items and inquired regarding the benefit to the College for the proposed resolution to be adopted at first reading.  He stated his concern regarding deviation from the Board process and inquired regarding the date of the City’s public hearing.  Mr. Stephens replied that the City’s public hearing would be held on December 16, 2004.  Dr. Aguero responded that some of the benefits to the College included public relations with the City and potential ad valorem taxing.

 

Trustees John Hernandez moved and Nan McRaven seconded that:

MOTION:  The Board of Trustees adopt, on first reading, the Resolution regarding the Tax Increment Reinvestment Zone.

Trustees discussed the effects if the proposed resolution was not adopted at the current meeting and whether the Board should waive the right to appoint a representative on the Zone board in the future.

Trustee Rivera requested a Friendly Amendment to the Motion:

FRIENDLY AMENDMENT:  Include the name of Austin Community College’s representative, Linda Young.

Mr. Hernandez stated that he did not wish to include the name of a person, and did not accept the Friendly Amendment.

 

Trustee Barbara Mink requested a Friendly Amendment to the Motion:

FRIENDLY AMENDMENT:  Delete the seventh “WHEREAS” paragraph and delete (c) from the last paragraph.

Mr. Hernandez and Ms. McRaven accepted Dr. Mink’s Friendly Amendment to the Motion.

VOTE:  The amended motion passed on a vote of 8-1.

FOR:  Mr. John F. Hernandez, Mr. Allen H. Kaplan, Ms. Nan McRaven, Dr. Barbara P. Mink, Mr. Rafael Quintanilla, Mr. Jeffrey Richards, Ms. Veronica Rivera, and Dr. John Worley.

AGAINST:  Dr. Lillian J. Davis

 

*********

RESOLUTION 7997

(as adopted by the Austin Community College Board of Trustees

on Monday, December 13, 2004)

 

WHEREAS, the City of Austin (City) desires to create a single-entity Tax Increment Reinvestment Zone (Zone) at the City’s former municipal airport site (RMMA currently known as Mueller), under Chapter 311 of the Texas Tax Code (the “Act”); and

 

WHEREAS, State law requires that the City hold a public hearing and adopt and ordinance to create the Zone; and

 

WHEREAS, State law also requires that the City provide 60 days notice to each taxing entity which notice may be waived by such entity; and

 

WHEREAS, the City notified each entity including the Austin Community College (ACC) via certified mail on November 12, 2004 and desires to hold the public hearing on December 16, 2004 in order to create the Zone prior to January 1, 2005; and

 

WHEREAS, in accordance with the Act, ACC has designated a representative to meet with the City to discuss the project plan and the reinvestment zone financing plan for the Zone; and

 

WHEREAS, State law also provides that each taxing entity may appoint a member to the Board of the Zone which right may be waived; and

 

WHEREAS, the City is not requesting that ACC participate in the Zone and as such is respectfully requesting that ACC waive the right to a appoint a Board Member; and

 

NOW, THEREFORE BE IT RESOLVED that the Austin Community College Board of Trustees hereby: a) declares that ACC will not be a participant in nor contribute tax increment to the Zone; and b) waives the requirement that the City of Austin provide a 60 day notification prior to the City conducting a public hearing and adopting an ordinance creating the Zone.; and c) waives the right to appoint a member to the Zone Board.

 

Approved on the 13th day of December, 2004.

 

Dr. Barbara P. Mink, Chair

Austin Community College Board of Trustees

Attest:

Mr. Jeffrey K. Richard, Secretary

Austin Community College Board of Trustees

 

*********

 

Agenda Item 7998

Amendment to the Austin Community College Money Purchase Plan

Dr. Mink introduced the item and Ms. Gerry Tucker, Associate Vice President for Human Resources, stated that it was necessary to include the name of the current College President, Dr. Robert Aguero, on the College’s Money Purchase Plan.

 

Dr. Mink stated this item would be included on the agenda for possible action at the January Board meeting.

 

Agenda Item 7999

Board Resolution Authorizing the Board Chair to Sign Tax Resale Deeds

Dr. Mink introduced the item and Mr. Ben Ferrell advised that the Travis County Tax Assessor/Collector collects property taxes for Austin Community College and for other taxing units.  In accordance with the Tax Code, the Travis County forecloses on properties upon which delinquent taxes are owed, and subsequently sells those properties.  When there are several taxing units, all taxing units must consent to the conveyance, acting through the governing body which givens authority to their presiding officer to execute a deed on behalf of the taxing unit.  He stated adoption of the proposed resolution would authorize the Board Chair to sign the tax resale deeds without bringing every deed to the Board for approval.

 

Mr. Ferrell responded to questions from Trustees regarding the past practice and number of documents which required approval, whether the documents would require that the Board Secretary attest the signature of the Board Chair, and method for distribution of resale proceeds among the various taxing entities.

 

This item will be included on the January 2005 agenda for possible action.

 

Agenda Item 8000

Austin Community College Investment Officer

Dr. Mink introduced the item and Ben Ferrell stated a Request for Proposal (RFP) was issued  for investment manager services in order to obtain expert cash and investment management of College funds.  An assessment of the proposals received was performed and a selection made based on best value.  Two well-qualified firms responded, and the recommended firm was selected based on its lower fee schedule. 

 

Fees are based on amounts under management according to a schedule ranging from 7 to 9 basis points (a basis point is 1/100 percent), and deducted from investment earnings.  Estimated annual expenses are in the $60,000 to $70,000 range due to the large amount of bond proceeds ($80 million) held by the College.  The College currently pays 3 to f basis points for the State’s Texpool fund.

 

Mr. Ferrell requested that the Board consider he staff recommendation of PFM Asset Management, LLC, as the College’s financial investment manager.  Mr. Ferrell introduced Susan Anderson of PFM Asset Management, LLC.  Ms. Anderson, Mr. Ferrell and Gilbert Rodriguez, ACC Director of Purchasing, responded to questions from Trustees concerning the current funds manager, maximization of options, and the length and renewal of the contract for services.  Trustees discussed the need to conduct a review of Board policies concerning contracts and renewal periods.

 

Dr. Mink stated that this item would be included on the agenda for possible action at the January 2005 Board meeting.

 

Agenda Item 8001

Worker’s Compensation Insurance Contract for Fiscal Year 2005

Dr. Mink introduced the item and Rebecca Cole, Environmental Health Safety and Insurance Manager, requested that the Board of Trustees consider the staff recommendation for awarding the Workers Compensation Insurance Contract to Deep East Texas Self Insurance Fund through Frost Insurance. 

 

The current Workers Compensation insurance expires on February5, 2005.  A Request for Proposal (RFP) process was followed to provide insurance coverage.  An assessment of the bids was performed and a selection made based on best value.  Cost, coverage, and rating of insurance carrier were used as the criteria for selection.  Comparative data and bid results were reviewed and the recommended was the lower low bid.

 

Insurance costs are included in the Fiscal Year 2005 budget.  Mr. Bob Reim, Insurance Consultant, stated approval of the recommended carrier would result in a savings to the College in the amount of $78,000 from current costs for Workers Compensation insurance.

 

Dr. Mink stated that this item would be included on the agenda for possible action at the January 2005 Board meeting.

 

Executive Session

Dr Mink stated there would be no Executive Session at the December 13, 2004, Board meeting.  She indicated that an informal evaluation of the College President would be included on the agenda at the January 2005 Board meeting. 

 

Announcements

There were no announcements.

 

Adjournment

Having no motion before the Board, the December 13, 2004, Regular Meeting of the Austin Community College Board of Trustees was adjourned at 9:20 p.m.

 

Approved By

Jeffrey Richard, Secretary