MINUTES

Regular Meeting – Board of Trustees

October 1, 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, October 1, 2007, at 6:10 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; Dr. James W. McGuffee, Board Secretary; Mr. Allen H. Kaplan; Dr. Barbara P. Mink [arrived at 6:30 p.m.]; and Ms. Veronica Rivera.  Trustees Lillian J. Davis, Rafael Quintanilla, and Jeffrey Richard 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.

 

Agenda Item 8375

Public Hearing on Continuing Taxation of Goods in Transit

Chair Hernandez opened the Public Hearing on continuing the current taxation of goods in transit as authorized by Section 11.253 of the Texas Property Tax Code.  He stated that no one had registered to speak. 

 

Trustees Nan McRaven moved and James McGuffee seconded that:

MOTION:  The Board of Trustees close the Public Hearing on Continuing Taxation of Goods in Transit.

VOTE:  The motion passed on a vote of 5-0.

FOR:  John Hernandez, Allen Kaplan, Dr. James McGuffee, Nan McRaven, Veronica Rivera.

AGAINST:  None.

ABSENT:  Dr. Lillian J. Davis, Dr. Barbara P. Mink, Mr. Rafael Quintanilla, and Mr. Jeffrey Richard.

 

Recognitions

·        New Employees – There were no new employees.

·        Student Profile – Dr. Kathleen Christensen, Vice President for Student Success and Support System introduced Ms. Erica Guajardo, Visual Communications student.  Ms. Guajardo provided information regarding her interest in Graphic Design in high school which led to a move from Port Lavaca to Austin to enroll in Austin Community College because it is recognized as having a good program and because it is affordable.  She stated that she is works part time and is a part-time student and looks forward to a degree in the program.  She hopes to work for a magazine when she graduates next Spring.  She offered praise and appreciation for the instruction and encouragement provided by ACC instructors and stated that she would recommend ACC to any one wishing to enter the field.  Chair Hernandez expressed appreciation to Ms. Guajardo for her remarks.            . 

·        Report on Achievements and Recognitions – Dr. Mary Hensley, Vice President for College Support Systems and ISD Relations, presented the Kudos Report and called attention to recent awards/recognitions received by faculty/programs, staff, students, and Austin Community College.

 

Citizens Communication

The following persons addressed the Board of Trustees:

·        Dr. Mariano Diaz-Miranda, ACC employee, distributed information designed by Graphic Arts student Erica Guajardo regarding A College-wide Hispanic Student Event and expressed appreciation to Mr. Ben Ferrell and staff of the Business Services Department regarding assistance provided for the Tejano Exhibit.  He also expressed appreciation to Trustees and Dr. Stephen B. Kinslow, College President, for their participation in a recent Dies y Seis event at the Riverside Campus and ACC staff for their assistance in organizing the Hispanic Student receptions.

·        Ms. Allison Mosshart, Capital IDEA, spoke regarding a former adjunct who was not rehired.

 

Reports from Associations

·        Adjunct Faculty Association – Mr. James Nelson, President, expressed appreciation to Trustees and Dr. Kinslow for their time and commitment.  He invited attendance at the November 2, 2007, Adjunct Faculty dinner and silent auction for scholarships, 5-7 p.m., Highland Business Center.

·        Classified Employees Association – No report was presented.

·        Full-Time Faculty Senate – Dr. Mariano Diaz-Miranda, President, spoke regarding textbooks and cost and introduced Faculty Senate Officer Devorah Feldman.

·        Professional-Technical Employees– Mr. David Borden, President, spoke regarding the “rule of 6” and comments from Association members.  He stated the Association will review the compensatory time and impact of the rules.  Mr. Borden invited Trustees to attend the upcoming general business meeting lunch to be held on October 31.

·        Student Government AssociationMr. John Whitcomb, President, spoke regarding a recent meeting in Washington with Texas Congress members and participation in recent community college meetings and activities.

 

[Trustee Barbara P. Mink arrived at 6:30 p.m.]

 

President’s Report

Dr. Stephen B. Kinslow, College President, reported on College enrollment of 34,000 credit students; College Connection program; and meetings of the Association of Community College Trustees Summit, Texas Association of Community Colleges; and Texas Higher Education Coordinating Board, and National Hispanic Colleges and Universities.

 

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 including installation of the elevator at the South Austin Campus garage, Usage of Interest Earnings, District-Wide Renovations Details and Other Projects and noted that the District-wide Security Audit was begun in September and ACC is working on the lease for the Truck Driving School parking.  Mr. Mullane responded to questions from Trustees regarding restoration of landscaping at the South Austin Campus, an update regarding the Rio Grande parking garage and Rio Grande offices, and the ACC Fire Academy.

·        Financial Report – August 2007 – Mr. Ben Ferrell, Vice President, Business Services, called attention to the information provided including: 

o       The College’s budget would finish FY2007 with an $8.4 million increase in Unrestricted Net Assets;

o       The FY2007 expense budget tracked the year much as it has for the past several years.  The unusual increases in Unrestricted Net Assets and Total Net Assets were due to:  (a) additional taxable properties and valuation added to the tax rolls by the Travis County Appraisal District ($3.4 million); (b) Interest Income above budget estimates ($1.3 million); (c) Lapsed salaries were no longer budgeted ($3.3 million); and (d) Utilities lower than normal.  While these revenues were due to factors beyond the College’s control, and all were not likely to be repeated in any given year, the budget was structured to take advantage of these factors.  As intended, the College would benefit from these additional funds for land acquisitions and district advancement. 

o       The $3,678,942 appropriated from the State in HB15 for restoration of the College’s 2006-2007 ERS appropriation was received.  The FY06 portion of $1,788,586 would go towards restoring Net Assets which funded the shortfall last year.  The $1,890,356 for FY07 was expected as part of the FY07 budget and, therefore, has no impact on the financial statements. 

o       FY2007 enrollments were up about 4.0%.  This exceeded the original projections of 2% growth and, therefore, tuition revenues were projected to exceed budget by $1.8 million.

o       As for expenses, Adjunct Faculty ad Overloads were projected to exceed original FY07 estimates due to the increased enrollments and vacancies in Full-Time Faculty Salaries.  This would be offset by increased tuition revenues and lapsed salaries in Full-Time Faculty.  Total salaries were projected to be under budget by $1.8 million.

In summary, adjusting revenues by $7.8 million and expenses by $0.6 million, Net Revenues over Expenses projected a budget surplus of about $8.4 million and an increase in Total Net Assets of about $12.4 million.  Cash and investments were in line at approximately $100 million, including $37 million in bond proceeds.

·        ACC Foundation Board Meeting – Trustee Nan McRaven reported on the September 20, 2007, meeting of the ACC Foundation held at the ACC South Austin Campus.  She noted that Mr. Alex Brown is Chair of the Foundation.  Ms. McRaven provided information regarding two reports which were presented at the meeting:  ACC’s new Marketing program and campaign and the ACC Alumni program.  She stated that they participated in a tour of the South Austin Campus following the meeting.

·        2007 ACCT Leadership Congress, San Diego, California – Trustee Allen Kaplan provided information concerning the Leadership Congress activities including PELL grants/funding; reauthorization of higher education; accreditation; and nursing program enrollments.   He provided an update regarding a Texas trustees’ organization including the Texas Caucus, a website for trustees to communicate, a contact list for all Trustees in Texas.  Mr. Kaplan advised that the ACCT National Legislative Summit would be held in Washington, D.C., in February 2008, and ACCT Governance Institute in San Antonio, April 13-15, 2008.  Mr. Kaplan stated he would keep all ACC Trustees informed.

 

CONSENT ITEM(S)

 

Mr. Hernandez introduced the Consent Items:

 

Agenda Item 8376

Proposed Approval of Minutes of August 10-11, 2006, Retreat; August 23, 2007, Special Meeting; September 4, 2007, Special Meeting; September 4, 2007, Special Meeting; and September 10, 2007, Special Meeting of the Austin Community College District Board of Trustees

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

 

Agenda Item 8377

Proposed Approval of the Board/President Priorities 2007-08 and the Board of Trustees Calendar/Work Plan 2007-08

Recommendation:  That the Board of Trustees approve the Board/President Priorities 2007-08 and the Board of Trustees Calendar/Work Plan 2007-08 as presented.

 

Trustee Mink requested that Agenda Item 8377, Proposed Approval of the Board/President Priorities 2007-08 and the Board of Trustees Calendar/Work Plan 2007-08, be pulled for discussion.

 

Agenda Item 8376

Proposed Approval of Minutes of August 10-11, 2006, Retreat; August 23, 2007, Special Meeting; September 4, 2007, Special Meeting; September 4, 2007, Regular Meeting; and September 10, 2007, Special Meeting of the Austin Community College District Board of Trustees

Chair Hernandez introduced the item.

Trustees McRaven moved and McGuffee seconded that:

MOTION:  The Board of Trustees approve Agenda Item 8376, Proposed Approval of Minutes of August 10-11, 2007, Retreat; August 23, 2007, Special Meeting; September 4, 2007, Special Meeting; September 4, 2007, Regular Meeting; and September 10, 2007, Special Meeting of the Austin Community College District Board of Trustees.

Trustees discussed approval of the minutes and abstentions from vote on the minutes of meetings in which Trustees were absent.

Trustee McRaven withdrew the motion.

 

Trustees Nan McRaven moved and James McGuffee seconded that:

MOTION:  The Board of Trustees approve the Minutes of the August 10-11, 2007, Retreat of the Austin Community College District Board of Trustees.

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

FOR:  Mr. John Hernandez, Mr. Allen H. Kaplan, Dr. James W. McGuffee, Ms. Nan McRaven; Dr. Barbara P. Mink, and Ms. Veronica Rivera.

AGAINST:  None.

ABSENT:  Dr. Lillian J. Davis, Mr. Rafael Quintanilla, and Mr. Jeffrey Richard.

 

Trustees Allen Kaplan moved and Veronica Rivera seconded that:

MOTION:  The Board of Trustees approve the Minutes of the August 23, 2007, Special Meeting of the Austin Community College District Board of Trustees.

VOTE:  The motion passed on a vote of 5-0.

FOR:  Mr. John Hernandez, Mr. Allen H. Kaplan, Ms. Nan McRaven; Dr. Barbara P. Mink, and Ms. Veronica Rivera.

AGAINST:  None.

ABSTAIN:  Dr. James W. McGuffee

ABSENT:  Dr. Lillian J. Davis, Mr. Rafael Quintanilla, and Mr. Jeffrey Richard.

 

Chair Hernandez stated that the Minutes of the September 4, 2007, Special Meeting; September 4, 2007, Regular Meeting; and September 10, 2007, Special Meeting of the Austin Community College District Board of Trustees would be included on the agenda for approval at the November 5, 2007, Board meeting.

 

Agenda Item 8377

Proposed Approval of the Board/President Priorities 2007-08 and the Board of Trustees Calendar/Work Plan 2007-08

Trustee Mink called attention to the need for additional information to be provided for Board/President Priorities for 2007-08:  5.  Continue to Increase Diversity of Students, Faculty, and Staff.  She also requested that 7. Institutional Advancement be reviewed and divided. 

 

Trustee Rivera questioned the date for discussion of Environmental Sustainability Practices.  Trustees discussed possible substitute dates.  It was decided that the Board Officers will review the proposed calendar and determine a possible date. 

 

Chair Hernandez stated that these Consent Items would be included on the agenda for the November 5, 2007, Board meeting.

 

Agenda Item 8378

Order Continuing the Taxation of Goods in Transit

Chair Hernandez introduced the item and Mr. Ben Ferrell stated The 80th Texas Legislature passed House Bill 621 allowing a property tax exemption of “goods in transit”, described as an inventory stored in a location not owned by the owner of the goods.  The Act allows governing bodies to adopt a resolution prior to January 1, 2008, to continue taxing these goods as before.  A public hearing must be conducted and an Order adopted to continue taxing these goods.  The order would remain in effect until rescinded by the governing body.  The Travis County Appraisal District has estimated ACC’s tax revenue loss at $2.2 million annually, beginning in FY 2009 if the resolution was not passed by January 1, 2008.

 

Chair Hernandez stated this item would be on the Consent Agenda for the November 5, 2007, Board meeting.

 

Agenda Item 8379

Policy Compliance Report:  E-4, Organizational

Performance Evaluation/Auditing

·        Internal Audit Work Plan

·        Internal Employee Survey (FY07)

Chair Hernandez introduced the item.  Dr. Kinslow provided information regarding the Internal Audit Work Plan.  Ms. Soon Merz, Associate Vice President, Effectiveness and Accountability, provided information and responded to questions from Trustees regarding the Internal Employee Survey.  Trustees requested additional information.  Dr. Kinslow noted that the Board Officers would discuss this item. 

 

Agenda Item 8380

Resolution to Create Public Facilities Corporation

Chair Hernandez introduced the item and Mr. Ben Ferrell provided information regarding the proposed Resolution to authorize the creation of the “Austin Community College District Public Facility Corporation” pursuant to the Public Facility Corporation Act, Chapter 303, Texas Local Government Code.  The PFC would provide additional facility financing options for the District in meeting ACC’s Closing the Gaps goals.  The necessary documents were drafted and provided by ACC’s Legal Counsel.

 

Trustees discussed the documents and suggested changes.  This item will be included on the agenda for the November 5, 2007, Board meeting.

 

[Trustee Nan McRaven left the meeting at 7:45 p.m.]

 

Agenda Item 8381

Selection of a Construction Delivery Method for Proposed

Round Rock Campus

Chair Hernandez introduced the item and Mr. Ben Ferrell provided information and stated that staff recommended the Construction Manager at Risk method as the best value due to the complexity of the project, and the work to be performed.

 

Trustees discussed the construction delivery method for the proposed Round Rock Campus.

Trustees Veronica Rivera moved and Allen Kaplan seconded that:

MOTION:  The Board of Trustees approve the Construction Manager at Risk method for the proposed campus in Round Rock.

VOTE:  The motion passed on a vote of 5-0.

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

AGAINST:  None.

ABSENT:  Trustees Lillian J. Davis, Rafael Quintanilla, and Jeffrey Richard were absent from the meeting and Trustee Nan McRaven was absent for the vote.

 

Executive Session

There was no Executive Session.

 

Adjournment

Having no motion before the Board, the October 1, 2007, Regular Meeting of the Austin Community College District Board of Trustees was adjourned at 7:50 p.m.

 

Approved By

James W. McGuffee, Board Secretary