MINUTES

Regular Meeting – Board of Trustees

January 18, 2005

 

 

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, January 18, 2005, at 6:04 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 6:08 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

§         Ms. Gerry Tucker, Associate Vice President, introduced new employees in the Student Life Office:  Jessica Pabon, Amy Horridge, Marisa Walden, Jennifer Flowers, Toniette Haynes, and Anna Lamb.

§         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

No one registered to address the Board.

 

Reports from Associations

·        Adjunct Faculty Association – Mr. John Herndon, President, expressed appreciation to Trustee Lillian Davis for her contribution to the Faculty Emergency Fund; stated 150 of 1,045 adjunct faculty are part-time instructors; and provided information regarding the functions of the adjunct faculty; and the three-year compensation plan.

·        Classified Employees Association –Sue Bloodsworth, President, expressed appreciation to President Robert Aguero for his thoughtful consideration of College issues including the closing of Building D at the Riverside Campus; a children-first approach at the Eastview Campus, and his up-front communication with employees.  She called attention to the need for an ATM machine at the Eastview Campus and noted the blood drives to be held on March 2, 9, and 10.

·        Full-Time Faculty Senate – Mr. Larry Willoughby, President, spoke regarding placement of the adjunct faculty on a new placement scale; review of hiring guidelines for faculty; and expansion of community outreach programs.  He stated that Board Chair Barbara Mink would participate in the February 4 Faculty Senate meeting; Daron Butler, Chair of the ACC Foundation Board, would participate in the March meeting; the Faculty Senate would work with the Foundation; meetings would be held with College administration to evaluate travel budgets; and closing of Building D at the Riverside Campus. He expressed appreciation for the move to new classroom space

·        Professional-Technical Employees Association – Ms. Linda Morrison, President, stated the Association’s Holiday Project for Oak Springs Elementary School was a large success; procedure is in place for Emergency Fund for Association of Technical-Professional Employees; and called attention to the Association’s quarterly meeting with Toby Futrell, Austin City Manager, and Board Chair Barbara Mink.  She stated the Association’s officers would meet with College President Robert Aguero on January 20 to discuss compensation.

·        Student Government AssociationMr. James “Levi” Barnes, President, spoke regarding TJCFDA, the Texas student government association, Student Day on February 7 including meeting at the State Capitol at 10 a.m.; Regional IV  Conference on February 25-27 at Blinn College in Brenham; the State Conference to be held in Austin on April 14-17; Student Government projects; working to open lines of communication with administration; providing a listing of all events and fund-raisers for the year in about a month; and  appointing new officers.  Mr. Barnes stated that this would be his last semester as President and as a student at Austin Community College.  He expressed appreciation for the good experiences at ACC, working with the Board and Administration; and the good friends he made while a student at ACC.

 

President’s Administrative Report

Dr. Robert Aguero, College President, stated:

·        The College received official notification from the Southern Association of Colleges and Schools (SACS) that the College was removed from “Warning” and accreditation has been reaffirmed.  As a standard procedure, a five-year report is required.  Dr. Aguero expressed appreciation to Trustees for their work.

·        Enrollment as of January 14 was 28,863 credit students, which was an .8% increase; and Spring-to-Spring contact hours were up 4/10 of a percent.

·        The Board Chair agreed to move the President’s mid-year informal evaluation to the February 7 Board meeting and there would be an executive session at the January 24 Board Work Session to discuss an important issue.

·        Welcomed the new Student Life employees and stated the College looks forward to working with them.

 

Financial Report – November 2004

Mr. Ben Ferrell, Vice President for Business Services, called attention to the November 2004 financial report noting:

·        There were no significant changes in projections from the October report.  Fall semester growth in credit hours was up 1.4 percent. 

·        Based on current information, the College’s budget was on track and projected  approximately $500,000 net revenues over expenses in the operating budget.

·        Based on revenues projected through August  2005, there is approximately $800,000 favorable for budget over projections for salaries and lapsed salaries.

·        There is approximately one-half million dollars of net revenue expenditures projected for the year.

 

Mr. Ferrell also called attention to a new addition to the Financial Report which updates projects approved through Master Plan or otherwise;

 

In response to Sue Bloodworth’s comments, Mr. Ferrell stated an ATM will be added to the Eastview Campus.

 

Mr. Ferrell responded to questions from Trustees concerning shortfall with no change in budget due to Del Valle tax issue; General Obligation Tax Bond Projects—renovation noted at Rio Grande Campus; and compliance with Board policy regarding transfer to Plant Fund by $1.2 million without a budget amendment;

 

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. 

 

Reports to the Board

·        Master Planning Process – Dr. Stephen B. Kinslow, Executive Vice President, discussed what was done as a part of the Master Plan and what was expected to be done during the remainder of Fiscal Year 2005.  He discussed the key components of the Master Planning process, including internal and external, and stated the Master Planning process continues to evolve. 

Ms. Soon Merz, Associate Vice President for Institutional Effectiveness, discussed the Fiscal Year 2006 process and provided the timeline for the process.  She provided information regarding the next iteration of the Master Planning process and facilities Master Planning components.

Dr. Kinslow and Ms. Merz responded to questions from Trustees regarding the cycle for Master Planning versus six-year terms for Trustees.

Trustees requested that this discussion be continued in an upcoming Board Work Session.

·        Monthly Construction Update – Mr. Ferrell provided an update on current construction and renovation projects including a major facilities projects summary, a facilities update regarding Eastview Campus – Health Sciences Building; Eastview Campus – Environmental Testing; South Austin Campus; Cypress Creek Expansion; Northridge Parking Lot; Rio Grande Campus; San Marcos/Hays County; Riverside Zoning; Riverside Renovations; Northridge Student Service Renovations; and a Building and Grounds listing of Holiday Break projects.

Mr. Ferrell responded to questions from Trustees regarding the need for updated information to be included on the Pinnacle Campus Parking Lot; status of project management by O’Connell Robertson regarding the Cypress Creek Expansion; a need for additional information regarding zoning for Riverside property; attendance at neighborhood/City planning meetings; topics for Board’s speaking engagements; City of Austin discussion regarding the Rio Grande Campus; and funding for San Marcos/Hays County project.

 

CONSENT AGENDA

 

Chair Mink introduced the Consent Agenda:

 

Agenda Item 8002

Proposed Approval of Minutes of the December 13, 2004, Regular Meeting of the Austin Community College Board of Trustees

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

 

Agenda Item 8003

Proposed Approval of Amendment to the Austin Community College Money Purchase Plan

Recommendation:  That the Board of Trustees amend the Austin Community College Money Purchase Plan by adding Dr. Robert Aguero, President, as a Trustee of the Plan effective January 1, 2005.

 

Agenda Item 8004

Proposed Adoption of A Board Resolution Authorizing  the Board Chair to Sign Tax Resale Deeds

Recommendation:  That the Board of Trustees approve a resolution to authorize the Board Chair to sign Tax Resale Deeds on behalf of Austin Community College, and that the Board of Trustees records the resolution in its official minutes.

 

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Resolution and Order for the Chairman of the Board of Trustees of Austin Community College to sign Tax Resale Deeds on behalf of Austin Community College

 

 

Whereas, Austin Community College is a taxing entity in Travis and Williamson Counties, Texas, and

 

Whereas, Austin Community College contracts with the Travis County Tax Collector to collect the taxes that it has levied, and

 

Whereas, some property owners become delinquent in paying their property taxes, and

 

Whereas, Travis County does, in the routine course of its business, foreclose on property on which the payment of taxes is delinquent, and

 

Whereas, Travis County publicly sells those properties that it has acquired through foreclosure, and

 

Whereas, the title of foreclosed property is transferred to the purchaser by means of a Tax Resale Deed, and

 

Whereas, Tax Resale Deeds require the signature of the presiding officer of the governing body of each taxing entity having an interest in the property, and

 

Whereas, presiding officers of each respective taxing entity’s governing body are also required to certify that they are acing as duly authorized by resolution and order of their respective governing body that has been recorded in their official minutes, and

 

Whereas, Travis County reasonably expects the expeditious return of properly signed Tax Resale Deeds, and

 

Whereas, creating a resolution by the Board of Trustees for Austin Community College and recording the resolution in its official minutes is a time consuming process that does not accommodate timely return of signed Tax Resale Deeds,

 

Therefore, be it resolved that the Board of Trustees of Austin Community College hereby authorizes its Chair, Dr. Barbara P. Mink, to sign Tax Resale Deeds on behalf of Austin Community College, and

 

Further be it resolved that this Resolution and Order be duly recorded in the official minutes of the Board of Trustees of Austin Community College.

 

Dr. Barbara P. Mink, Chair

Austin Community College Board of Trustees

 

ATTEST:

Mr. Jeffrey Richard, Secretary

Austin Community College Board of Trustees

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Agenda Item 8005

Proposed Approval of PFM Asset Management, LLC, as Austin Community College’s Financial Investment Manager

Recommendation:  That the Board of Trustees approve PFM Asset Management, LLC, as the College’s Financial Investment Manager.

 

Agenda Item 8006

Proposed Approval of Workers Compensation Insurance Contract for Fiscal Year 2005 to Deep East Texas Self Insurance Fund through Frost Insurance

Recommendation:  That the Board of Trustees approve awarding the Workers Compensation insurance contract to Deep East Texas Self Insurance Fund through Frost Insurance.

Trustees Allen Kaplan moved and Lillian Davis seconded that:

MOTION:  The Board of Trustees approve Consent Agenda Item 8002, Proposed Approval of Minutes of the December 13, 2004, Regular Meeting of the Austin Community College Board of Trustees; Agenda Item 8003, Proposed Approval of Amendment to the Austin Community College Money Purchase Plan; Agenda Item 8004, Proposed Adoption of A Board Resolution Authorizing  the Board Chair to Sign Tax Resale Deeds; Agenda Item 8005, Proposed Approval of PFM Asset Management, LLC, as Austin Community College’s Financial Investment Manager; and Agenda Item 8006. Proposed Approval of Workers Compensation Insurance Contract for Fiscal Year 2005 to Deep East Texas Self Insurance Fund through Frost Insurance

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 Richard, Ms. Veronica Rivera, and Dr. John Worley.

AGAINST:  None.

 

ITEMS FOR DISCUSSION/POSSIBLE ACTION

 

Dr. Mink re-ordered the agenda.

 

Agenda Item 8008

Fiscal Year 2004 External Audit Management Letter

Dr. Mink introduced the item and Mr. Ben Ferrell stated the audit was conducted by Garza/Gonzales & Associates, San Antonio, Texas.  Mr. Ferrell introduced Dora Verde of Garza/Gonzalez, CPA’s.  Ms. Verde introduced Mr. Martinez, also of Garza/Gonzalez & Associates, and discussed the results of the audit, including the management letter and report.  She congratulated Austin Community College for receiving a Certificate of Excellence in Financial Reporting.

 

Ms. Verde stated:

·        There were four independent audit reports and she was pleased to report that it was a clean opinion on reports;.

·        There were no material instances in non-compliance in either Federal or State programs;

·        There were no material weaknesses in the District’s internal controls.  Federal programs this year were $16 million.

·        Sixty-one (61) percent of State monies were tested, and there were no material weaknesses

·        On State findings, there were no findings.

·        There were no significant audit adjustments

·        There were no disagreements with management;

·        There were no difficulties encountered in the audit;

·        Last year, there was one Immaterial Instance of Noncompliance noted on Inventory of Capital Assets.  The auditors recommended that the College continue their efforts to verify the existence of capital assets not identified during the physical inventory, reconcile the results to the general ledger, and record adjustments to reflect the completed inventory, as necessary.  Additionally, supporting documentation for deletions should be retained.  Last year’s comments are repeated, and progress is being made;

·        Other Comments and Recommendations from prior year have been satisfactorily resolved.

·        Current Year Comment:  Reconciliation of Employee Retirement System Account.  In reviewing the activity and reconciliation of the Employee Retirement System (ERS) liability account, the audit noted that excess payments were made in the current year to ERS state accounts which resulted in an overpayment of $400,000 as of the year end.  The audit recommended that the College initiate a review and approval process for all ERS, Teacher Retirement System (TRS) and other benefit payments that include approval by both the Payroll and Business Services areas.  The review process should include reconciliation to the invoiced amount and an explanation of any variance in payments to ensure that the budgetary and cash controls of the College function properly and that only amounts due are remitted.

 

Ms. Verde and Mr. Martinez responded to questions from Trustees concerning definition of “no material weaknesses or instances of noncompliance”; amount of unrestricted surplus; Honeywell Energy audit; and decline in net assets by one-half million dollars versus applicable Board policy.

 

[Trustee Jeffrey Richard left the meeting at 8:00 p.m.]

 

Recess

Dr. Mink recessed the January 18, 2005, Regular meeting of the Board of Trustees of Austin Community College at 8:00 p.m. for a short break.

 

Reconvene

The Board of Trustees of Austin Community College reconvened in public session at 8:13 p.m. on January 18, 2005, pursuant to Texas Government Code 551.

 

Agenda Item 8007

Update on South Austin Campus

Dr. Mink introduced the item and Mr. Bill Mullane, Interim Director of Facilities and Construction, stated that documents were submitted for pricing, and the pricing proposals were due on January 20.  The guaranteed pricing would be brought to the Board in February.  The site development permit should be in place by early March.   Mr. Mullane said the design was simplified in shape, grade, and system.  He added that not only is it more economical but it is easier to estimate.  He added that the proposed design and construction would remain within the $21 million approved by the Board for the South Austin Campus. 

 

Renderings by Page Southerland Page Architects were distributed to the Board.  Mr. Mullane and Mr. Ferrell responded to questions from Trustees regarding the brick design, functionality of building, possible delay in opening of Campus in Fall of 2006 if proposed design is changed; possible reduction in programs to stay within the budget; the need for the Board to receive an official recommendation from the South Austin Campus Advisory Committee at the February meeting; and the need for the architects/construction manager to also attend the February 7 meeting. 

 

[Trustee Rafael Quintanilla left the meeting at 8:25 p.m.]

 

Agenda Item 8009

Recommendation of Vendor – Northridge Parking Lot

Dr. Mink introduced the item and Mr. Ferrell and Mr. Mullane stated the Board approved $580,000 for the construction of additional parking at the Northridge Campus as part of the Facilities Master Plan funded by the May 2003 General Obligation bond referendum.   A Request for Proposal (RFP) was issued and a vendor selected in mid-December based on best value as prescribed by State law and Board policy.  The vendor selected was Smith Contacting which was also the lowest bidder at $440,000.  This amount did not include design and other fees.

 

Mr. Ferrell and Mr. Mullane responded to questions from Trustees regarding other fees; size and number of additional spaces (156); and need for additional information regarding the criteria for selection.

 

Agenda Item 8010

Instructional Programs Review and Program Priorities Declaration for FY 2006 (Board Policies E-1 and E-5)

 

Dr. Mink introduced the item and Dr. Stephen B. Kinslow, Executive Vice President, provided information and responded to questions from Trustees. 

 

Dr. Mink stated this item would be included on the agenda of the February 7 Board meeting for possible action.

 

Executive Session

There was no Executive Session.

 

Announcements

·        President Aguero would provide legislative updates as a part of the President’s Administrative Reports.

·        Trustees were available, if needed, to assist in the legislative process.

·        A power point/overhead presentation would be developed for Trustees to use in upcoming speaking engagements with various groups.

·        Trustees Lillian Davis, Nan McRaven, Jeffrey Richard, and John Worley would attend the Association of Community College Trustees Legislative Summit in Washington, D.C., in February.

 

Adjournment

Having no motion before the Board, the January 18, 2005, Regular Meeting of the Austin Community College Board of Trustees was adjourned at 9:10 p.m.

 

Approved By

Jeffrey Richard, Secretary