MINUTES
Regular
Meeting – Board of Trustees
August 6, 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, August 6, 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
[arrived at 6:07 p.m.]; Mr. James W. McGuffee, Board Secretary; Dr. Lillian J.
Davis; Mr. Allen H. Kaplan; Ms. Dr. Barbara P. Mink; Mr. Jeffrey Richard
[arrived at 6:10 p.m.]; and Ms. Veronica Rivera.
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 – Ms. Gerry Tucker, Associate Vice
President, Human Resources, introduced Mr. Gary Madsen, new Director of P16
Initiatives.
·
Student Profile – There was no profile presented.
·
Report on Achievements and Recognitions – Ms. Linda
Young, Special Assistant to the President, Governmental and Community Relations presented the Kudos Report
and called attention to recent awards/recognitions received by
faculty/programs, staff, students, and
Citizens
Communication
The following persons
addressed the Board of Trustees:
·
Mr. Mark Goodrich, ACC/AFT, spoke regarding servant leadership at ACC
and testing/remediation of the Rio Grande Campus.
·
Mr. Peck Young, Director, Center for Public Policy and Political
Studies, spoke regarding the success of funding paid interns in the ACC
government program.
·
Reports from
Associations
·
Adjunct Faculty Association – Ms. Mary Gilmer, President, Adjunct
Faculty Association, expressed appreciation for having had the opportunity to work
with the Board of Trustees during the past year; stated the Adjunct Faculty
Association would be involved in the Rio Grande Campus renovation; and advised
that Mr. Jim Nelson will become President of the Adjunct Faculty Association.
·
Classified Employees Association – Ms. Kathy Judge, President,
expressed appreciation for the four percent cost-of-living increase for
employees in Fiscal Year 2008. She also
expressed appreciation for having had the opportunity to serve as the President
of the Classified Employees Association during Fiscal Year 2007, and stated Ms.
Lisa Buck would become President of the Association for Fiscal Year 2008.
·
Full-Time Faculty Senate – Ms. Linda Welsh, President, expressed
appreciation to the Board for their service to the College. She also spoke regarding health benefits.
·
Professional-Technical Employees– Ms. Judy Van Cleve,
President, distributed information and expressed appreciation for the four
percent cost-of-living increase. She
also spoke regarding the possible reinstatement of the Governor’s cut and
suggested that the returned funds might be used to eliminate the $5 per credit
hour General Fee increase and for deferred maintenance purposes.
·
Student Government Association – Mr.
Josh Whitcomb, President, spoke regarding an upcoming Student Government
Association Retreat in
President’s
Report
Dr. Stephen B.
Kinslow, College President, stated that no report would be presented.
Reports to the Board
·
Facilities Update – Mr. Bill Mullane, Director of
Facilities and Construction, provided a report on current construction and
renovation projects, GO Tax Bond Projects, Usage of Interest Earnings, Status
of District-Wide Renovations and Other Projects. He responded to questions from Trustees.
·
Financial Report – June 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 $6.2 million increase in Unrestricted Net
Assets, and a $6.9 million increase in Total Net Assets; (2) Fall and Spring
enrollments were up about 4.2%. Summer enrollments were up 3.2%. This equates to a combined annual increase of
4.0%. This exceeds the original projections of 2% growth, and therefore,
tuition revenues were projected to exceed budget by $1.9 million; and (3) As
for expenses, Adjunct Faculty and 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 over
budget by about $0.8 million.
In summary,
adjusting revenues by $6.3 million and expenses by $0.1 million, Net Revenues
over Expenses projected a budget surplus of about $6.2 million and an increase
in Total Net Assets of about $6.9 million.
Cash and investments were in line at approximately $85 million,
including $39 million in bond proceeds.
Mr. Ferrell
responded to questions from Trustees.
CONSENT ITEM(S)
Mr. Hernandez
introduced the items:
Agenda Item 8353
Board Policy G-10, Economic Analyses
Recommendation: That the Board of Trustees approve the value
statement added to Board Policy G-10, Auxiliary Analyses (formerly Board Policy
E-3).
G-10. ECONOMIC
ANALYSES
Value Statement
The College is
committed to the responsible use of public resources, and will perform
appropriate economic analyses as part of its planning, evaluation, and decision
making.
ACC's decisions are
fundamentally driven by pursuit of its mission of community service rather than
of financial gain for itself. Many of its activities of great value to the
community do not generate a net profit to the College, and many others are
close enough to breakeven that their finances have little strategic impact. But
careful attention to the financial implications of College operations is still
necessary to identify possibilities for improvement and expansion, to ensure
allocation of limited resources in accordance with planned priorities, and to
avoid waste. Accordingly:
[1] The
President shall ensure that the economic analyses needed for planning and evaluation
are conducted according to reasonable, clearly-stated principles that are
applied in a consistent manner.
[2] These
principles shall make appropriate provision for matching costs with revenues,
for recognition and allocation of indirect and capital costs, and for using
appropriate methodologies for valuation and projection of cost and revenue
elements in long term business analyses.
[3] The level of detail and
sophistication of analyses may be adapted to the size and economic sensitivity
of the topics.
[4] Analyses or projections
provided to the Board shall report the sources of the information and the
assumptions on which the analysis is based.
[5] Economic
analyses are required for items involving total expenditures of $500,000 or
more, or where otherwise specified in policy.
Agenda Item 8354
Board Policy G-12. Auxiliary Enterprises
Recommendation: That the Board of Trustees approve the value
statement added to Board Policy G-12, Auxiliary Enterprises (formerly Board
Policy E-8)
G-12. AUXILIARY ENTERPRISES
Value Statement
The College will provide quality services to its students that
support their learning in a manner that maximizes the students’ time
convenience and financial resources.
[1] General
student-service enterprises: Services run or contracted for by the College
whose primary function is to provide general services to students (e.g.,
food-service providers) should be awarded and/or operated under terms which
maximize the value of those services to students, rather than maximizing the
economic return to the College. Allocation of facilities and other resources in
support of such enterprises should reflect an analysis of student demand.
[2] Specialized
student-service enterprises: Student-oriented services whose benefits are
limited to a small fraction of students should generally be operated at
approximately breakeven, unless a planned subsidy has been allocated as part of
the budget process.
[3] Other
enterprises: Activities not primarily oriented to serving students (e.g., a
public golf course) should be operated so as to yield maximal sustained gain
for the College. For any such activities whose gross revenues exceed $500,000
per year, the administration shall, during the master-planning process, provide
the Board an analysis showing its plans for achieving this objective.
[4] Provision of
space: Allocation for more than two years of significant College facilities
to the use of external entities requires a cost/benefit analysis and Board
approval.
[5] Annual Report: An
annual report shall be provided to the Board as part of the annual budget
process.
Trustees Veronica Rivera moved and
MOTION: The Board of
Trustees approve Agenda Item 8353, Board Policy G-10, Economic Analyses, and
Agenda Item 8354, Board Policy G-12, Auxiliary Enterprises, as presented.
VOTE: The motion
passed on a unanimous vote of 9-0.
FOR: Lillian J.
Davis, John F. Hernandez, Allen H. Kaplan, James W. McGuffee, Nan McRaven,
Barbara P. Mink, Rafael Quintanilla, Jeffrey Richard, and Veronica Rivera.
AGAINST: None.
ABSENT: None.
DISUSSION AND POSSIBLE ACTION
Agenda Item 8355
Proposed 2007 Property Tax Rate, 2007 Property Tax Rate
Planning Calendar, and Scheduling of Two Public Hearings for Proposed 2007
Property Tax Rate
Chair Hernandez introduced the item and Mr. Ben Ferrell
provided information on the proposed 2007 Property Tax Rate, 2007 Property Tax
Rate Planning Calendar, and Scheduling of Two Public Hearings for Proposed 2007
Property Tax Rate.
Trustees
MOTION: The Board of Trustees vote to place the
proposed 2007 Property Tax Rate of $0.0958 ($0.0900 for Maintenance &
Operations and $0.0058 for Debt Service) per $100 of valuation on the agenda of
a future meeting for adoption, and schedule two public hearings on the proposed
2007 Property Tax Rate on August 23, 2007, and September 4, 2007.
VOTE: The motion passed on a unanimous vote of 9-0.
FOR: Lillian J.
Davis, John F. Hernandez, Allen H. Kaplan, James W. McGuffee, Nan McRaven,
Barbara P. Mink, Rafael Quintanilla, Jeffrey Richard, and Veronica Rivera.
AGAINST: None.
ABSENT: None.
Agenda Item 8356
Selection of Architect/Engineer for the
Chair Hernandez
introduced the item. Trustee Allen
Kaplan recused himself from discussion
and vote on the item.
Trustees Veronica Rivera moved and Barbara Mink seconded
that:
MOTION: The Board of
Trustees select BLGY, Inc, as the Architect/Engineer for the
Trustee Rafael Quintanilla moved that:
SUBSTITUTE MOTION:
The Board of Trustees select ARCHITEXAS as the Architect/Engineer for
the
There was no second to the Substitute Motion.
FOR: Lillian J.
Davis, John F. Hernandez, James W. McGuffee,
AGAINST: None.
ABSENT: None.
Trustee Allen Kaplan recused himself from vote.
Trustees
expressed appreciation to the Administration for bringing forward three firms
who were very qualified.
Agenda Item 8357
Selection of Construction Manager-at-Risk for the
Chair Hernandez
introduced the item and Mr.
Ben Ferrell provided information on the project.
Trustees
Allen Kaplan moved and Veronica Rivera seconded that;
MOTION: The Board of Trustees select
Trustees
Rafael Quintanilla moved and James McGuffee seconded that:
SUBSTITUTE
MOTION: The Board of Trustees select
SpawGlass Contractors, Inc., as the Construction Manager-at-Risk for the
VOTE
on SUBSTITUTE MOTION: The motion failed
on a vote of 2-6-1.
FOR: Rafael Quintanilla and James McGuffee.
AGAINST: Lillian J. Davis, John Hernandez, Allen
Kaplan,
ABSTAIN: Jeffrey Richard.
ABSENT: None.
FOR: Lillian J.
Davis, John F. Hernandez, Allen H. Kaplan, James W. McGuffee, Nan McRaven,
Barbara P. Mink, Rafael Quintanilla, Jeffrey Richard, and Veronica Rivera.
AGAINST: None.
ABSENT: None.
Trustees expressed appreciation to the
Administration for bringing forward three firms who were very well qualified.
Agenda Item 8358
Selection of Construction Manager-at-Risk for the
Chair Hernandez
introduced the item and Mr.
Ben Ferrell provided information on the project.
Trustees
Allen Kaplan moved and Barbara Mink seconded that:
MOTION: The Board of Trustees select SpawGlass
Contractors, Inc., as the Construction Manager-at-Risk for the Rio Grande
Campus New Parking Garage.
Trustees discussed the need for a close
relationship regarding HUB participation and stated they would be looking for
it; the four firms on the Rio Grande Campus projects must work well together
within the same space; and the need for everyone in the neighborhood to be kept
well informed. Dr. Stephen B. Kinslow,
College President, expressed appreciation to the Board for their leadership on
improvements for the Rio Grande Campus.
Trustees stated the need to point out some of the issues at the Rio
Grande Campus and the need to improve the whole Campus.
VOTE: The motion passed on a unanimous vote of 9-0.
FOR: Lillian J.
Davis, John F. Hernandez, Allen H. Kaplan, James W. McGuffee, Nan McRaven,
Barbara P. Mink, Rafael Quintanilla, Jeffrey Richard, and Veronica Rivera.
AGAINST: None.
ABSENT: None.
Agenda Item 8359
Interlocal Agreement for Bus Services with
Chair Hernandez
introduced the item and Mr.
Ben Ferrell provided information on the need to enter into an Interlocal
Agreement with Leander ISD to provide bus service and parking for ACC during
site development for new ACC facilities at the Cypress Creek Campus. The bus services would be provided to and
from the Elizabeth Milburn Park Parking Area, the High School Parking Area, and
the ACC Cypress Creek Campus during the term of the Agreement. The site development project would have an
estimated completion date of February 28, 2008.
Mr. Ferrell and Mr. Bill Mullane, Director, Facilities and Construction,
responded to questions from Trustees.
Trustees
Allen Kaplan moved and Veronica Rivera seconded that:
MOTION: The Board of Trustees enter into an
Interlocal Agreement with
VOTE: The motion passed on a unanimous vote of 9-0.
FOR: Lillian J.
Davis, John F. Hernandez, Allen H. Kaplan, James W. McGuffee, Nan McRaven,
Barbara P. Mink, Rafael Quintanilla, Jeffrey Richard, and Veronica Rivera.
AGAINST: None.
ABSENT: None.
Agenda Item 8360
Board Policy G-4, Capitalization and Depreciation
Chair Hernandez
introduced the item and Mr.
Ben Ferrell provided information concerning the proposed revisions to Board
Policy G-4, Capitalization and Depreciation, including addition of a Value Statement;
elimination of the requirement to depreciate facilities by components; and
increase the capitalization threshold from $500 to $5,000. Mr. Ferrell responded to questions from
Trustees.
This item will be included on the agenda
for the August 23, 2007, Special Meeting.
Agenda Item 8361
Board Policy G-7, Property Taxes
Chair Hernandez
introduced the item and Mr.
Ben Ferrell provided information concerning the proposed revisions to allow
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 Austin Community College District.
Board Secretary James McGuffee stated this
item was tabled at the July 9, 2007, Board meeting; therefore, the following
Motion made by Trustee Kaplan at the July 9, 2007, meeting, remained on the
floor for action. Trustees suggested
that it might be helpful to break the original motion into two separate
motions.
Trustees
Kaplan and McGuffee agreed with the suggestion to have two separate votes.
The
original motion was amended to:
MOTION: The Board of Trustees delete the following
from Board Policy G-7, Property Taxes:
[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:
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Trustees asked for a breakdown between
residential and commercial properties.
VOTE: The motion failed on a vote of 4-5.
FOR: Allen Kaplan, James McGuffee, Rafael
Quintanilla, and Jeffrey Richard.
AGAINST: Lillian Davis, John Hernandez,
ABSENT: None.
Trustees
Rafael Quintanilla moved and Veronica Rivera seconded that:
MOTION: The Board of Trustees approve a revision to
Board Policy G-7, Property Taxes, to increase 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.
The
Motion passed on a vote of 7-2.
FOR: Lillian Davis, John Hernandez, James
McGuffee,
AGAINST: Allen Kaplan, Jeffrey Richard.
ABSENT: None.
**********
Board Policy G-7. PROPERTY TAXES
Value Statement
The College recognizes that
an adequate tax base and tax rate are critical factors which impact the College’s
tuition rate.
The College
President, as the Chief Executive Officer, shall use the following principles
in planning and budgeting for local property tax rates:
[1]
To maintain a fair balance between financial support from taxes and from
tuition, the rate shall be that which makes the fraction of revenues derived
from taxes approximately match the average for Texas metropolitan-area
community colleges, or a lower rate as needed to stay under the level which
would require a tax election or keep the annual increase from exceeding one
cent per $100 (or two cents per $100 if there has been no increase in the
previous two years).
[2]
The homestead exemption for the Austin Community College District could be the
greater of $5000 or 1% of the assessed individual-property value.
[3] The additional homestead exemption
for elderly or disabled shall be $75,000 calculated annually to
maintain a goal of at least 60% of the median home value of senior or disabled
taxpayers. The annual increase shall be
in $5,000 increments, not to exceed $10,000 per year.
[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% |
**********
Agenda Item 8362
Annual Evaluation and Contract of College President
Chair Hernandez
introduced the item.
Executive Session
The Board of Trustees recessed into Executive Session at 7:30 p.m. to consult with legal counsel regarding Texas Government Code 551.074, pursuant to personnel matters, including the annual evaluation and contract of the College President, Dr. Stephen B. Kinslow.
[Trustee Jeffrey Richard left the meeting.]
Reconvene
The Austin Community College District Board
of Trustees reconvened in public session at 9:25 p.m. pursuant to Texas
Government Code 551.
Agenda Item 8362
Annual Evaluation and Contract of College President
(continued)
Trustees Allen Kaplan moved and Lillian Davis seconded
that:
MOTION: The
President be given a 4% cost of living raise on the President’s contract; a
market adjustment to increase the base compensation to $235,000; and to make
other changes to the employment agreement provided that they not exceed a
compensation value of $290,000; and an extension of the current contract to
June 2010.
VOTE: The motion
passed on a vote of 8-0.
FOR: Lillian Davis,
John Hernandez, Allen Kaplan, James McGuffee,
AGAINST: None.
ABSENT FOR THE VOTE:
Trustee Jeffrey Richard
Trustees
discussed the total compensation for the President of the Austin Community
College District and where the President’s compensation would rank among
Announcements
There were no
announcements.
Adjournment
Having no motion before the Board, the
August 6, 2007, Regular Meeting of the Austin Community College District Board
of Trustees was adjourned at 9:27 p.m.
Approved By
James
W. McGuffee, Board Secretary