MINUTES

Regular Meeting – Board of Trustees

July 9, 2007

 

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, July 9, 2007, 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: Mr. John F. Hernandez, Chair/Presiding Officer; Ms. Nan McRaven, Board Vice Chair; Mr. James W. McGuffee, Board Secretary; Mr. Allen H. Kaplan; Ms. Nan McRaven; Mr. Barbara P. Mink; Mr. Jeffrey Richard [arrived at 6:07 p.m.]; and Ms. Veronica Rivera.  Trustee Lillian J. Davis 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.

 

Recognitions

·        New Employees – There were no new employees.

·        Student Profile – Mr. Mike Midgley, Vice President for Workforce Education and Business Development, introduced Ms. Chris Ihorn, ACC Real Estate student.  Ms. Ihorn, provided information regarding her career change and her real estate classes at Austin Community College.  She offered praise and appreciation for the instruction provided by ACC instructors and stated that her life has been enriched by her classes.                     . 

·        Report on Achievements and Recognitions – Ms. Brette Lea, Executive Director of Public Information and College Marketing, presented the Kudos Report and called attention to recent awards/recognitions received by faculty/programs, staff, students, and the Austin Community College District.

 

Citizens Communication

The following persons addressed the Board of Trustees:

·        Ms. Marilyn Snipes, citizen/AARP Chapter 2700, spoke regarding tax exemption for seniors.

 

Reports from Associations

·        Adjunct Faculty Association – Ms. Mary Gilmer, President, Adjunct Faculty Association, spoke regarding ACC Fiscal Year 2008 budget cuts; compensation; health benefits; and shared governance.

·        Classified Employees Association – Ms. Kathy Judge, President, spoke regarding the Fiscal Year 2008 ACC budget.

·        Full-Time Faculty Senate – Ms. Linda Welsh, President, distributed information and expressed appreciation for the delay in discussion of Board Policy D-4, Assessment, Placement, & Developmental Courses, and spoke regarding the FY2008 budget; 2008 Master Plan; and facilities.  She expressed appreciation for having had the opportunity to represent the Full-Time Faculty Senate during the past year.

·        Professional-Technical Employees– Ms. Judy Van Cleve, President, spoke regarding Fiscal Year 2008 budget recommendations and expressed appreciation to the Board for their work during the past year.

·        Student Government AssociationMr. Ivan Doyle, Vice President, spoke regarding the Fiscal Year 2008 budget and activities of the Association.

 

President’s Report

Dr. Stephen B. Kinslow, College President, advised that he would postpone his report due to the length of the agenda.

 

Reports to the Board

·        Facilities Update – Mr. Bill Mullane, Director of Facilities and Construction, called attention to current construction and renovation projects, GO Tax Bond Projects, Usage of Interest Earnings, District-Wide Renovations Details and Other Projects.  Mr. Mullane responded to questions from Trustees.

·        Financial Report – May 2007 – Mr. Ben Ferrell, Vice President, Business Services, called attention to the information provided including:  (1) the College’s budget was on track and projecting approximately $5.3 million increase in Unrestricted Net Assets, and a $5.9 million increase in Total Net Assets; (2) Fall & Spring enrollments were up about 4.2%.  Summer enrollments were up 3.2%.  This exceeds original projections of 2% growth; therefore, tuition revenues were projected to exceed budget by $1.8 million.  As for expenses, Adjunct Faculty and Overloads were expected to exceed original FY07 estimates due to the increased enrollments and vacancies in Full-Time Faculty Salaries.  Total salaries were projected to be under budget by about $0.3 million.

 

In summary, adjusting revenues by $5.7 million and expenses by $0.4 million, Net Revenues over Expenses projected a budget surplus of about $5.3 million and an increase in Total Net Assets of about $5.9 million.  Cash and investments were in line at approximately $98 million, including $39 million in bond proceeds.

 

CONSENT ITEM(S)

 

Mr. Hernandez introduced the Consent Items:

 

Agenda Item 8339

Proposed Approval of Minutes of June 4, 2007, Regular Meeting; June 18, 2007, Special Meeting; and June 18, 2007, Work Session of the Austin Community College District Board of Trustees

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

 

Agenda Item 8340

Board Policy D-4, Assessment, Placement, & Developmental Courses

Recommendation:  That the Board of Trustees approve the revised Board Policy D-4, Assessment, Placement, and Developmental Courses.

 

Agenda Item 8341

Renumbering of Board Policies:  A-4, Tuition Rates (move to G-9); E-3, Economic Analysis (move to G-10); E-6, Investments (move to G-11); E-8, Auxiliary Enterprises (move to G-12), and Re-Title Board Policy Group G, Budgeting, to District Finances

Recommendation:  That the Board of Trustees approve the renumbering of Board policies as presented.

 

Agenda Item 8342

Board Policy G-7, Property Taxes

Recommendation:  That the Board of Trustees approve increasing the Elderly or Disabled exemption by $10,000 per year to achieve an exemption goal of 60% of the median home value of a senior or disabled taxpayer in the District.

 

Agenda Item 8343

Adoption of Master Plan 2008-2010

Recommendation:  That the Board of Trustees adopt the Master Plan 2008-2010.

 

Chair John Hernandez stated Agenda Item 8340, Board Policy D-4, Assessment, Placement, & Developmental Courses was pulled from the July 9 agenda and would be included on a future agenda. 

 

Pulled from the Consent agenda: 

·        Trustee Veronica Rivera pulled Agenda Item 8341 for discussion.

·        Trustees Allen Kaplan pulled Agenda Item 8342 for discussion.

·        Trustee Rafael Quintanilla pulled 8343 and requested that vote on this item be delayed until after vote on the FY08 Budget.

 

Agenda Item 8339

Proposed Approval of Minutes of June 4, 2007, Regular Meeting; June 18, 2007, Special Meeting; and June 18, 2007, Work Session of the Austin Community College District Board of Trustees

Trustees Barbara Mink moved and Allen Kaplan seconded that:

MOTION:  The Board of Trustees approve minutes of the June 4, 2007, Regular Meeting; June 18, 2007, Special Meeting; and June 18, 2007, Work Session of the Austin Community College District Board of Trustees

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

FOR:  John Hernandez; Allen Kaplan, James McGuffee, Barbara Mink, Rafael Quintanilla, Jeffrey Richard, and Veronica Rivera.

AGAINST:  None.

ABSENT:  Trustee Lillian J. Davis was absent from the meeting.

Trustee Nan McRaven was absent for the vote.

 

Trustee Rivera requested that Value Statements be added to Board Policies G-10, Economic Analysis, and G-12, Auxiliary Enterprises.

 

Agenda Item 8341

Renumber of Board Policies A-4, Tuition Rates (move to G-9); E-3, Economic Analyses (moved to G-10); E-6, Investments (move to G-11); E-8, Auxiliary Enterprises (move to G-12), and Re-title Policy Group G, Budgeting, to District Finances

Trustees Veronica Rivera moved and Jeffrey Richard seconded that:

MOTION:  The Board of Trustees approve the renumbering of Board Policies A-4, Tuition rates, to G-9; E-3, Economic Analyses, to G-10, with the addition of a Values Statement; E-6, Investments, to G-11; E-8, Auxiliary Enterprises, to G-12, with the addition of a Values Statement; and Re-title of Group G, Budgeting, to District Finances.

Trustee James McGuffee requested a Friendly Amendment:

FRIENDLY AMENDMENT TO MOTION:  That the Board of Trustees direct the Administration to draft Value Statements to be added to Board Policies G-10, Economic Analyses, and G-12, Economic Enterprises.

Trustees Rivera and Richard accepted the Friendly Amendment.

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

FOR:  John Hernandez; Allen Kaplan, James McGuffee, Barbara Mink, Rafael Quintanilla, Jeffrey Richard, and Veronica Rivera.

AGAINST:  None.

ABSENT:  Trustee Lillian J. Davis was absent from the meeting.

Trustee Nan McRaven was absent for the vote.

 

Agenda Item 8342

Board Policy G-7, Property Taxes

Trustees Allen Kaplan moved and James McGuffee seconded that:

MOTION:  The Board of Trustees approve the proposed revisions to Board Policy G-7, Property Taxes, and also delete paragraph [4]:

[4] The Austin Community College District shall participate in the system of tax reductions for properties designated as historical landmarks. The exemption shall be at the following rates:

Type of Use or Owner

Improvements

Land

Owner-occupied Residence / Non-Profit / Government

100%

50%

Commercial Properties

50%

25%

 

Trustees discussed the continuing need for citizens to be aware of possible Board action on this item. 

Trustees Nan McRaven moved and Barbara P. Mink seconded that:

MOTION:  Agenda Item 8342, Board Policy G-7, Property Taxes, be tabled.

The motion passed on a vote of 6-2.

FOR:  John Hernandez, Allen Kaplan, Nan McRaven, Barbara Mink, Rafael Quintanilla, and Veronica Rivera.

AGAINST:  James McGuffee, Jeffrey Richard.

ABSENT:  Trustee Lillian J. Davis was absent from the meeting.

 

DISUSSION AND POSSIBLE ACTION

 

Agenda Item 8344

Acceptance of Land Donation and Approval to Purchase Land for Round Rock Campus

Board Chair John Hernandez introduced the item.

 

Executive Session

The Board of Trustees of the Austin Community College District recessed into Executive Session at 6:50 p.m. to consult with Legal Counsel regarding the purchase, exchange, lease or value of real property pursuant to Texas Government Code 551.072, including land in the vicinity of the Round Rock Higher Education Center.

 

Reconvene

The Board of Trustees of the Austin Community College District reconvened in Public Session at 7:30 p.m. pursuant to Texas Government Code 551.

 

Agenda Item 8344

Acceptance of Land Donation and Approval to Purchase Land for Round Rock Campus

(continued)

Trustees Veronica Rivera moved and Nan McRaven seconded that:

MOTION:  The Board of Trustees approve the Letter of Intent with the renegotiation of  Sections 4b,10, 13, and 14 as discussed with the Administration.

VOTE:  The motion passed unanimously on a vote of 8-0.

FOR:  John Hernandez; Allen Kaplan, James McGuffee, Nan McRaven, Barbara Mink, Rafael Quintanilla, Jeffrey Richard, and Veronica Rivera.

AGAINST:  None.

ABSENT:  Trustee Lillian J. Davis was absent from the meeting.

 

Trustees Jeffrey Richard moved and Nan McRaven seconded that:

MOTION:  The Board of Trustees authorize staff to negotiate a purchase agreement with respect to this real estate matter.

Trustee Rivera requested a Friendly Amendment.

FRIENDLY AMENDMENT:  Negotiations into purchase agreement upon execution of Letter of Intent.

The motion passed on a unanimous vote of 8-0.

FOR:  John Hernandez; Allen Kaplan, James McGuffee, Nan McRaven, Barbara Mink, Rafael Quintanilla, Jeffrey Richard, and Veronica Rivera.

AGAINST:  None.

ABSENT:  Trustee Lillian J. Davis was absent from the meeting.

 

Agenda Item 8345

Proposed Adoption of FY08 Budget

Board Chair John Hernandez introduced the item and Dr. Stephen B. Kinslow, College President, provided information concerning the proposed Fiscal Year 2008 Budget and the Governor’s recent veto of staff benefits for community colleges.

 

Trustees Allen Kaplan moved and Nan McRaven seconded that:

MOTION:  The Board of Trustees adopt the proposed Fiscal Year 2008 Budget with a $5 increase in Student Fee per credit hour.

Trustee Nan McRaven requested a Friendly Amendment.

FRIENDLY AMENDMENT:  To add to the Motion that the Board of Trustees will look at the Student Fee increase in Spring 2008.

Trustee Kaplan accepted the Friendly Amendment.

 

Trustees Rafael Quintanilla moved and Barbara P. Mink seconded that:

SUBSTITUTE MOTION:  The Board of Trustees adopt the budget of June 4, 2007, which was $178.3 million which is a $2 million increase from the May 7 budget, and $1,750,000 for new money requests;  $300,000 for additional Marketing money; $400,000 for Student Success Initiatives; $500,000 of money for Capital Equipment and Technology; $500,000 for Campus Master Planning; $3,000,000 in Institutional Advancement = $178.386,000.  Propose to add $3.5 million to the $178,386,000 = $181.8 million, and also add another $.5 million for the Administration to allocate where they feel is the most need.  This would total $182.3 million.  To pay for that, there was $178,000,000 in projected revenues as of June 4, 2007.  There was $2,000,000 of additional money after June 4, 2007 = $180.3 million.  Plus $1,000,000 from Reserves = $181.3 million. This adds $3.5 million to the Expenses.  The $1 per semester hour in Fees or Tuition, amounts to $700,000 so we would add $1 in semester hour fee and the balance, if necessary, would be $1.3 million out of Reserves.

 

Trustee Jeffrey Richard requested a Friendly Amendment.

FRIENDLY AMENDMENT TO SUBSTITUTE MOTION:  That the Board of Trustees adopt the President’s budget of June 4, 2007, in its entirety of $178.3 million and would entertain any idea to bring it to the floor for the $3.5 if the Board agrees that we should do it.  This would make it $181.8 rather than $182.3.  Mr. Richard stated that he was not proposing this at the moment but that would be the Governor’s veto that killed the benefits.

 

Trustees discussed a possible $2-3 dollar increase in the General Fee and the implications.

 

Trustee McRaven withdrew her support for the original motion and moved that: 

NEW MOTION:  The Board of Trustees approve the July 9, 2007, Fiscal Year 2008 Budget to increase the General Fee by $2 per semester credit hour (from $13 to $15) for all students, and tuition for In-District students - $39 per credit hour; Out-District students - $118 per credit hour; and $276 per credit hour for Out-of-State students.  The Administration was requested to determine how to fund the $2.1 gap, including the $3.8 veto by the Governor. 

Trustee Veronica Rivera seconded the Motion and requested a Friendly Amendment.

FRIENDLY AMENDMENT:  That the proposed fee increase be a $2 increase in the General Fee.

Trustee McRaven accepted the Friendly Amendment.

Trustees discussed the proposed fee increase versus a tuition increase and clarified that this fee increase was for all ACC students.  President Kinslow indicated cuts would be made to Institutional Advancement, Master Plan Initiatives, and Deferred Maintenance.

Trustee Allen Kaplan requested a Friendly Amendment.

FRIENDLY AMENDMENT:  That the Administration not cut Master Plan Initiatives, and look for cuts to Institutional Advancement and Deferred Maintenance.

Trustee McRaven did not accept the Friendly Amendment.

VOTE:  The motion passed on a vote of 6-2.

FOR:  John Hernandez; Nan McRaven, Barbara Mink, Rafael Quintanilla, Jeffrey Richard, and Veronica Rivera.

AGAINST:  Allen Kaplan, James McGuffee.

ABSENT:  Trustee Lillian J. Davis was absent from the meeting.

 

Agenda Item 8343

Adoption of FY08 Master Plan

Board Chair John Hernandez introduced the item and Ms. Soon Merz, Associate Vice President for Effectiveness and Accountability, provided information and responded to questions from Trustees.

 

Trustees Rafael Quintanilla moved and Barbara Mink seconded that:

MOTION:  The Board of Trustees adopt the Fiscal Year 2008 Master Plan.

VOTE:  The motion passed unanimously on a vote of 8-0.

FOR:  John Hernandez; Allen Kaplan, James McGuffee, Nan McRaven, Barbara Mink, Rafael Quintanilla, Jeffrey Richard, and Veronica Rivera.

AGAINST:  None.

ABSENT:  Trustee Lillian J. Davis was absent from the meeting.

  

Agenda Item 8346

Presentations by Architects/Engineers for the Rio Grande Campus Gymnasium Building Renovation

Board Chair John Hernandez introduced the item and Ben Ferrell provided information.  Presentations were made by the architects/engineers finalists for the Rio Grande Campus Gymnasium Building Renovation pursuant to the approved 2003 Facilities Master Plan as amended February 5, 2007:  ERO International, LLP; BLGY, Inc.; and ARCHITEXAS.

 

Trustees expressed appreciation for the presentations.

Agenda Item 8347

Presentations by Architects/Engineer for the Rio Grande Campus New Parking Garage

Board Chair John Hernandez introduced the item and Ben Ferrell provided information.  Presentations were made by the architects/engineers finalists for the Rio Grande Campus New Parking Garage pursuant to the approved 2003 Facilities Master Plan as amended February 5, 2007:  Barnes Gromatzky Kosarek Architects; Tanigchi & Associates (Joint Venture); and PROZIGN Architects.

 

Trustees expressed appreciation for the presentations.

 

Adjournment

Having no motion before the Board, the July 9, 2007, Regular Meeting of the Austin Community College District Board of Trustees was adjourned at 10:35 p.m.

 

Approved By

James W. McGuffee, Board Secretary