MINUTES

Regular Meeting – Board of Trustees

July 5, 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, July 5, 2005, 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; Mr. Allen H. Kaplan; Mr. Rafael Quintanilla; Ms. Veronica Rivera; and Dr. John Worley.  Trustees Lillian J. Davis and Nan McRaven were 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.

 

Recognitions

·        New Employees - There were no new employees.

·        Report on Achievements and Recognitions – Mr. Bill Carter, Associate 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. Larry Willoughby, ACC faculty, deferred his allotted time to Mr. Al Purcell, ACC faculty.

·        Mr. Al Purcell, ACC History Department, provided information on the Faculty Senate’s proposal for Fiscal Year 2006 compensation.

·        Mr. Mike Martinez, Fire Fighter and President of the Austin Fire Fighters Association, spoke regarding the Agenda Item 8088, Proposed Move of ACC Fire Academy from Taylor to Pflugerville.

·        Ms. Guadalupe Q. Sosa, South Austin Campus Advisory Committee, spoke regarding Committee resolutions.

 

Reports from Associations

·        Adjunct Faculty Association – Mr. John Herndon, President, spoke regarding adjunct faculty compensation.

·        Classified Employees Association– Ms. Sue Bloodsworth, President, spoke regarding compensation; Board Policy F-10, Employee Compensation; and Board Policy F-5, Placement and Advancement.

·        Full-Time Faculty Senate – Mr. Larry Willoughby, President, spoke regarding Fiscal Year 2006 compensation.

·        Professional-Technical Employees Association – Mr. Jerry North, President-Elect, spoke regarding compensation percentages and Association activities.

·        Student Government AssociationMr. Michael Sanchez, President – No report was presented.

 

President’s Administrative Report

No report was presented.

 

Reports to the Board

·        Monthly Construction Update – Mr. Ferrell provided an update on current construction and renovation projects including a Major Facilities Projects Summary and a facilities update regarding:  Eastview Campus – Health Sciences Building ($15,450,000); Eastview Campus – Environmental Work; South Austin Campus ($21,500,000); Cypress Creek Expansion ($25,000,000); Northridge Parking Lot ($580,000); Status of Expansion of US 290 at Oak Hill; Rio Grande Campus ($33,950,000); San Marcos/Hays County; Riverside Zoning; Riverside Renovations; Northridge Student Service Renovations; and the Facilities Master Plan.

 

Mr. Ferrell and Mr. Bill Mullane, Interim Director of Facilities and Construction, responded to questions from Trustees regarding a breakdown of $3,120 million for district-wide renovations and the permit for parking lot at Eastview.

 

·        Financial Report – April 2005 -- Mr. Ben Ferrell, Vice President for Business Services, called attention to the May 2005 Financial Statement and noted:  Summer enrollments were near completion and were on track and projecting about a 1% decrease from last year; and based on current information, the College’s budget was on track and projecting approximately $300,000 revenues over expenses.

Revenues:  Total revenue was projected at approximately $129 million, or $1.1 million below original projections.

Expenses:  Total expenses were projected at $1.4 million under budget.

Summary:  Revenues were under budget by $1.1 million and expenses were under budget by $1.4 million.  Therefore, the Net Revenues over Expenses projected a surplus of approximately $300,000.  Cash balances were in line at approximately  $110 million, including $78 million in bond proceeds.

 

Mr. Ferrell responded to questions from Trustees and stated that a Grants report would be included in the monthly financial materials.

 

The agenda was re-ordered.

 

Discussion/Possible Action:

 

Old Business:

 

Agenda Item 8092

FY06 Budget Discussion/Approval

Dr. Mink introduced the item and stated that Trustees Lillian Davis and Nan McRaven were absent from the meeting; however, they had provided written comments concerning the FY06 Budget:

  • Dr. Davis agreed with the budget as presented by the Administration with no increase in in-district or out-of-district tuition.
  • Nan McRaven agreed with the budget, as is, with no increase in tuition; but, could agree with a $3 increase in out-of-district tuition.

 

John Hernandez moved and Rafael Quintanilla seconded that:

MOTION:  The Board of Trustees approve the budget as presented by the Administration.

 

Allen Kaplan moved and John Worley seconded that:

AMENDMENT TO ORIGINAL MOTION:  The Board of Trustees raise out of district tuition by $10.

 

Jeffrey Richard moved and Allen Kaplan seconded that:

FRIENDLY AMENDMENT:  The Board of Trustees increase out-of-district tuition by $5 but have a comment regarding revenue that would be generated by the increase to pledge 60% of revenue to decrease our deferred maintenance liabilities and the other 40% of that going to fund balance (savings) with the Administration to determine the exact expenditures for the deferred maintenance process.

Trustees discussed the proposed Friendly Amendment.

Jeffrey Richard withdrew the Friendly Amendment.

 

VOTE ON AMENDMENT TO ORIGINAL MOTION:  The motion failed on a vote of 2-5.

FOR;  Allen Kaplan and John Worley

AGAINST:  John Hernandez, Barbara Mink, Rafael Quintanilla, Jeffrey Richard, Veronica Rivera

ABSTAIN:  None

ABSENT:  Trustees Lillian Davis and Nan McRaven

 

Jeffrey Richard moved and Veronica Rivera seconded that:

AMENDMENT TO ORIGINAL MOTION:  The Board of Trustees increase tuition by $5 for out-of-district students with the revenue derived from such increase to be apportioned at 60% to reduce deferred maintenance expenditures and the remaining 40% to be placed in reserves (or savings) with the specific programmatic reductions in deferred maintenance to be determined by the Administration.

 

John Worley requested a Friendly Amendment to the Amendment to Original Motion: 

FRIENDLY AMENDMENT:  That the Board of Trustees increase tuition by $5 for out-of-district students.

Trustees Richard and Rivera accepted the Friendly Amendment.

VOTE on Friendly Amendment:  The motion passed on a vote of 5-2.

FOR:  Allen Kaplan, Barbara Mink, Jeffrey Richard, Veronica Rivera, and John Worley.

AGAINST:  John Hernandez and Rafael Quintanilla.

ABSTAIN:  None.

ABSENT:  Lillian Davis and Nan McRaven.

 

John Worley moved and Allen Kaplan seconded that:

FRIENDLY AMENDMENT:  The Board of Trustees use the $725,000 generated by the $5 increase in out-of-district tuition to raise the employee minimum wage to the living wage amount of $12.62 which would cost $305,000, and that the remainder ($420,000) go to the deferred maintenance of facilities for health and safety.

 

Trustee Quintanilla moved:

FRIENDLY AMENDMENT:  That the Board of Trustees give every employee an across-the-board 5% pay raise, and increase the amount needed.

John Worley did not accept Mr. Quintanilla’s amendment.

 

Trustee Rivera proposed: 

FRIENDLY AMENDMENT:  That the Board of Trustees approve using the remaining $420,000 to be split with one-half to deferred maintenance for facilities and one-half to reserves.

Trustee Rivera withdrew the Friendly Amendment.

 

VOTE on Dr. Worley’s FRIENDLY AMENDMENT:  The Motion failed on a vote of 3-3-1.

FOR:  Allen Kaplan, Veronica Rivera, John Worley

AGAINST:  Barbara Mink, Rafael Quintanilla, Jeffrey Richard.

ABSTAIN:  John Hernandez.

ABSENT:  Lillian Davis and Nan McRaven.

 

Jeffrey Richard moved and Allen Kaplan seconded that:

FRIENDLY AMENDMENT:  The Board of Trustees use the $725,000 to devote 50% to deferred maintenance costs and the other 50% to cash reserves.

VOTE:  The motion failed on a vote of 4-2-1.

FOR:  Allen Kaplan, Barbara Mink, Jeffrey Richard, Veronica Rivera .

AGAINST:  Rafael Quintanilla, John Worley.

ABSTAIN:  John Hernandez.

ABSENT:  Lillian Davis, Nan McRaven.

 

Veronica Rivera moved and Jeffrey Richard seconded that:

FRIENDLY AMENDMENT:  The Board of Trustees use the $725,000 generated by the $5 increase in out-of-district tuition to bring the minimum wage to the living wage of $12.62 ($305,000) and the remaining $420,000 to be split at 60% to be used facilities/health and safety as determined by the Administration and the remaining 40% of the $420,000 be designated for cash reserves.

VOTE:  The motion failed on a vote of 3-2-2.

FOR:  Allen Kaplan, Veronica Rivera, John Worley.

AGAINST:  Barbara Mink, Rafael Quintanilla.

ABSTAIN:  John Hernandez, Jeffrey Richard.

ABSENT:  Lillian Davis, Nan McRaven.

 

Trustee John Worley moved that:

FRIENDLY AMENDMENT:  The Board of Trustees use the $725,000 to give every employee a 5% pay increase.

VOTE ON FRIENDLY AMENDMENT:  The motion failed on a vote of 4-2-1.

FOR:  Allen Kaplan, Rafael Quintanilla, Veronica Rivera, John Worley.

AGAINST:  Barbara Mink, Jeffrey Richard.

ABSTAIN:  John Hernandez.

ABSENT:  Lillian Davis, Nan McRaven.

 

Rafael Quintanilla moved and Allen Kaplan seconded that:

FRIENDLY AMENDMENT:  The current in-district tuition be lowered by $1 and the balance of the net revenue of $270,000 go to reserves.

VOTE ON FRIENDLY AMENDMENT:  The motion failed on a vote of 3-3-1.

FOR:  John Worley, Rafael Quintanilla, Allen Kaplan

AGAINST:  Barbara Mink, Jeffrey Richard, Veronica Rivera.

ABSTAIN:  John Hernandez.

ABSENT:  Lillian Davis, Nan McRaven.

 

John Worley moved for reconsideration of Mr. Richard’s Friendly Amendment that:

FRIENDLY AMENDMENT:  The Board of Trustees use the $725,000 to, devote 50% to deferred maintenance costs for health and safety issues and the other 50% to cash reserves.

VOTE:  The motion passed on a vote of 5-2-1.

FOR:  Allen Kaplan, Barbara Mink, Jeffrey Richard, Veronica Rivera, John Worley.

AGAINST:  Rafael Quintanilla.

ABSTAIN:  John Hernandez.

ABSENT:  Lillian Davis, Nan McRaven.

 

VOTE on Original Motion as Amended:

MOTION:  That the Board of Trustees approve the budget as presented with the following amendments:  increase out-of-district tuition by $5 and designate the $725,000 generated by the increase in out-of-district tuition to be split with 50% devoted to deferred maintenance costs for health and safety issues and the remaining 50% to cash reserves.

VOTE:  The motion passed on a vote of 6-1-0.

FOR:  Allen Kaplan, Barbara Mink, Rafael Quintanilla, Jeffrey Richard, Veronica Rivera, John Worley.

AGAINST:  John Hernandez. 

ABSTAIN:  None.

ABSENT:  Lillian Davis, Nan McRaven.

 

Agenda Item 8090

Proposed Approval of External Financial Audit Services Contract

Dr. Mink introduced the item and Ben Ferrell, Vice President for Business Services, provided information.

 

Trustees Allen Kaplan moved and Barbara Mink seconded that:

MOTION:  The Board of Trustees select McConnell & Jones LLP as the auditing firm for external financial auditing services for Austin Community College.

Trustees spoke to the Motion.

Mr. Ben Ferrell responded to questions from Trustees

Trustee Jeffrey Richard stated his intention to abstain from the vote.

VOTE:  The motion failed on a vote of 4-2-1.

FOR:  Allen Kaplan, Barbara Mink, Veronica Rivera, and John Worley.

AGAINST:  John Hernandez, Rafael Quintanilla

ABSTAIN:  Jeffrey Richard

ABSENT:  Lillian Davis, Nan McRaven

 

Trustees Rafael Quintanilla moved and John Hernandez seconded that:

MOTION:  The Board of Trustees select R. Mendoza & Co. LLP as the auditing firm for external financial auditing services for Austin Community College.

VOTE:  The motion failed on a vote of 3-3-1.

FOR:  John Hernandez, Veronica Rivera, Rafael Quintanilla

AGAINST:  Allen Kaplan, Barbara Mink, John Worley

ABSTAIN:  Jeffrey Richard

ABSENT:  Lillian Davis, Nan McRaven

 

Trustees John Hernandez moved and Rafael Quintanilla seconded that:

MOTION:  The Board of Trustees select Deloitte-Touche LLP as the auditing firm for external financial auditing services for Austin Community College.

VOTE:  The motion failed on a vote of 2-4-1.

FOR:  John Hernandez, Rafael Quintanilla

AGAINST:  Allen Kaplan, Barbara Mink, Veronica Rivera, John Worley

ABSTAIN:  Jeffrey Richard

ABSENT:  Lillian Davis, Nan McRaven

 

Trustee Jeffrey Richard stated the need for an external audit firm to be selected at this meeting and, therefore, his intent to vote on Mr. Kaplan’s earlier motion.

 

Trustees Allen Kaplan moved and Barbara Mink seconded that:

MOTION:  The Board of Trustees select McConnell & Jones LLP as the auditing firm for external financial auditing services for Austin Community College.

VOTE:  The motion passed on a vote of 5-2.

FOR:  Allen Kaplan, Barbara Mink, Jeffrey Richard, Veronica Rivera, John Worley

AGAINST:  John Hernandez, Rafael Quintanilla

ABSTAIN:  None

ABSENT:  Lillian Davis, Nan McRaven

 

Recess

Dr. Mink recessed the July 5, 2005, Regular meeting of the Board of Trustees of Austin Community College at 7:57 p.m. for a brief break.

 

[Trustee Jeffrey Richard left the meeting at 7:57 p.m.]

 

Reconvene

The Board of Trustees of Austin Community College reconvened in public session at 8:13 p.m. on July 5, 2005, pursuant to Texas Government Code 551.

 

CONSENT AGENDA

 

Chair Mink introduced the Consent Agenda:

 

Agenda Item 8084

Proposed Approval of Minutes of the of the June 6, 2005, Regular Meeting; June 20, 2005, Special Meeting; and June 20, 2005, Work Session of the Austin Community College Board of Trustees

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

 

Agenda Item 8085

Proposed Approval of Interlocal Cooperation Agreement with Austin Independent School District (Education Affiliation Agreement)

Recommendation:  That the Board of Trustees approve the proposed Interlocal Cooperation Agreement (Education Affiliation Agreement) with Austin ISD to allow pediatric clinical placements at Rosedale School for ACC nursing students.  Government Code 791.011 requires Board approval of Interlocal Cooperation Agreements.

 

Agenda Item 8086

Proposed Approval of Associate of Applied Science (AAS) Degree in International Business

Recommendation:  That the Board of Trustees approve an AAS degree in International Business. The degree will provide a course of study specifically designed to prepare students for positions in international business.  Need for the degree is established with both local and national Labor Market Information data. 

 

Agenda Item 8087

Proposed Approval of Continuing Education Medical/Clinical Assisting Certificate

Recommendation:  That the Board of Trustees approve the addition of a Continuing Education Medical/Clinical Assisting Certificate.  This certificate would provide a course of study specifically designed to prepare students for entry-level positions in clinical assisting.  Need for the certificate is established with both local and national Labor Market Information data.

 

Agenda Item 8088

Proposed Approval of Move of ACC Fire Academy from Taylor to Pflugerville

Recommendation:  That the Board of Trustees approve the proposed move of ACC’s Fire Academy from its current location in Taylor to Pflugerville effective Fall 2006.  The proposed move to Pflugerville would:

1.      Locate the academy within ACC’s service area;

2.      Allow an expansion of the program, and address high-demand/turn-aways;

3.      Consolidate our activities at one location (we currently lease the Pflugerville Fire Burn Training facility for all live fire burns);

4.      Eliminate the need for dormitories.

5.      Provide space to add related Continuing Education and credit classes.

 

Agenda Item 8089

Proposed Approval of Vendors for Environmental Services

Recommendation:  That the Board of Trustees approve the selection of Baer Engineering and Environmental Consulting (HUB), Burcham Environmental Services, Geomatrix Consultants, and Zephyr Environmental Corporation (HUB) to provide environmental College services in order to comply with various federal, state, and local environmental considerations and requirements.  Requests for Proposals were sent out by the Departments of Purchasing, and Environmental Health and Safety to solicit firms to provide various environmental services as needs arise.  In accordance with Board Policy and administrative efficiencies, the contract term for each recommended firm would be for two (2) initials years with three (3) one-year renewals.

 

Trustee Veronica Rivera requested Agenda Item 8088, Proposed Approval of Move of ACC Fire Academy from Taylor to Pflugerville, be pulled from the Consent Agenda and the vote postponed until the August 1 Board meeting, or later.

 

Trustees Veronica Rivera moved and Allen Kaplan seconded that:

MOTION:  The Board of Trustees approve the Consent Agenda including:  Agenda Item 8084, Proposed Approval of Minutes of June 6, 2005, Regular Meeting; June 20, 2005, Special Meeting; and June 20, Work Session of the Austin Community College Board of Trustees; Agenda Item 8085, Proposed Approval of Interlocal Cooperation Agreement (Education Affiliation Agreement) with Austin Independent School District; Agenda Item 8086, Proposed Approval of Associate of Applied Science (AAS) Degree in International Business; Agenda Item 8087, Proposed Approval of Continuing Education Medical/Clinical Assisting Certificate; and Agenda Item 8089, Proposed Approval of Vendors for Environmental Services.

The Motion passed on a vote of 6-0.

FOR:  Allen Kaplan, Barbara Mink, Rafael Quintanilla, Veronica Rivera, and John Worley

AGAINST:  None

ABSTAIN:  None

ABSENT:  Lillian Davis, Nan McRaven, Jeffrey Richard. 

Trustee Hernandez was absent for the vote.

 

Agenda Item 8091

Review/Adoption of Master Plan Revisions

Dr. Mink stated that this item would be included on the agenda for possible action at the August 1, 2005, Board meeting.

 

 

Agenda Item 8093

Proposed Approval of Revision to Board Policy G-1, College Budget

Dr. Mink introduced the item and Ben Ferrell, Vice President, provided information concerning the proposed revision.

 

Trustees John Worley moved and Veronica Rivera seconded that:

MOTION:  The Board of Trustees adopt the change to G-1 [6] as presented.

VOTE:  The motion passed on a vote of 6-0.

FOR:  John Hernandez, Allen Kaplan, Barbara Mink, Rafael Quintanilla, Veronica Rivera, and John Worley

AGAINST:  None

ABSTAIN:  None

ABSENT:  Lillian Davis, Nan McRaven, Jeffrey Richard.

 

* * * * * * * * * *

G-1. COLLEGE BUDGET

Value Statement

•               The College will budget limited public funds in an effective manner which is aligned with the mission of the College.

The President shall, no later than the end of May each year, develop and submit to the Board and for public review a proposed comprehensive annual budget, with the intent to have an adopted budget by the first Board meeting in July, such that it:

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 projection 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, except that transient revenue shortfalls due to annexation may be funded from reserves, and the amount funded from reserves restored upon receipt of tax revenues from the annexation.  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 ½% 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.

 

* * * * * * * * *

 

New Business

There was no New Business.

 

Executive Session

There was no Executive Session.

 

Announcements

Dr. Mink stated that no mid-month Work Session was planned for July 2005 unless it was necessary for the Board to discuss the 2005 Tax Rate for Austin Community College.  She stated that the Board would meet on August 1, 2005, for the Regular meeting and August 12-13, 2005, for a Board Retreat.

 

Approved By

Jeffrey Richard, Board Secretary