MINUTES
Regular
Meeting – Board of Trustees
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 4, 2008, at 6:30 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: Ms.
Nan McRaven, Chair/Presiding Officer; Ms. Veronica Rivera, Board Vice Chair; Dr.
James W. McGuffee, Board Secretary; Mr. Raul Alvarez; Mr. John-Michael Cortez; Mr.
Allen H. Kaplan; Mr. Tim Mahoney, and Dr. Barbara P. Mink. Trustee Jeffrey Richard was absent from the
meeting.
Recognitions
·
Ms. Mary Kohls, ACC Professor and Faculty Advisor to the Alpha
Gamma Pi Chapter of Phi Theta Kappa National Honor Society, introduced Faculty
Advisor Mr. Reed Peoples. Ms. Kohls
stated that Chapter members were awarded many scholarships during the past
year. Ms. Kohls introduced the following
scholarship winners:
o Coca Cola
Scholarships in the amount of $1,000 each were presented to: David Dunkin, Haley Moore, and Corina Oliva;
o Star
Scholarships in the amount of $1,000 each were awarded to: Mike Dorsey and David Dunkin; and
o Leader of
Promise Scholarship in the amount of $1,000 was awarded to Haley Moore.
o Jeremy Dertien
was selected to the All USD Community Colleges Academic Team and received a
medallion and a $6,000 transfer scholarship to the State University of
Colorado. He will graduate from
Ms. Kohls
introduced Mr. Jeremy Dertien, 2007-2008 President of the Alpha Gamma Pi
Chapter of Phi Theta Kappa,
Citizens
Communication
The
following individuals addressed the Board of Trustees:
·
Mr. Mark Goodrich, ACC/AFT, expressed
appreciation for the living wage approved in the FY2009 Budget and spoke
regarding the Rio Grande Campus.
·
Dr. Mariano Diaz-Miranda, ACC Professor, spoke
regarding the Department of Education.
·
Ms. Guadalupe Sosa, citizen, spoke regarding the
outstanding service and leadership of Dr. Donetta Goodall, Vice President for Academic
Transfer, General & Developmental Education.
Reports from
Associations
·
Adjunct Faculty Association – Mr. James Nelson, President,
spoke regarding shared governance. He
expressed appreciation for the increase in compensation for FY09, health
benefits, and thanked the Board of Trustees for their service at ACC.
·
Classified Employees Association – Ms. Lisa
Buck, President, spoke regarding the importance of the 700 classified employees
to ACC.
·
Full-Time Faculty Senate – Dr. Mariano
Diaz-Miranda, President, spoke regarding the upcoming vacancy of Vice President
for Academic Transfer and General/Developmental Education.
·
Professional-Technical Employees
Association – Ms. Susan Thomason, President – No report was presented.
·
Student Government
Association – Mr. Brad Burnett, President, spoke regarding the
Association’s goals and events for the coming year. He introduced Mr. Jose Oran Hinojosa, new SGA
advisor. Mr. Burnet expressed appreciation
to the Board of Trustees, President Stephen B. Kinslow, faculty and staff for
their continuing support and assistance.
President’s
Report
Mr. Stephen B.
Kinslow, College President/CEO, spoke of the success of the recent ACC Golf Scramble
and expressed appreciation for the work of former Board Chair John
Hernandez. The event raised over $22,000
for ACC scholarships. He expressed
appreciation to Trustees Tim Mahoney and Allen Kaplan for their attendance at
the event. Dr. Kinslow called attention
to the upcoming reception for Dr.
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, District-Wide Renovation Projects,
and Detailed Usage of Interest Earnings. Mr. Mullane and Mr. Ferrell responded to
questions from Trustees. He expressed
appreciation to Trustees for continuing to fund facility projects.
·
Financial Report – June 2008 – Mr. Ben
Ferrell, Vice President, Business Services, called attention to the information
provided including:
o The College’s
budget was on track and projecting a positive $4.6 million Net Revenues &
Expenses, and a $9.7 million increase in Total Assets.
o Fall enrollments
were up about 2.3%. Spring enrollments
were up 3.6%, and Summer enrollments were up about 5.0%. This is a combined increase of about 3.3%,
which exceeds the original projections of 2% growth, and, therefore, tuition
revenues are projected to be slightly above budget.
o As for expenses,
Adjunct Faculty and Overloads were projected to slightly exceed original
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 $3.3 million.
In summary, adjusting
revenues up by $3.4 million and expenses down by $1.2 million, Net Revenues
over Expenses projected a budget surplus of about $4.6 million and an increase
in Total Net Assets of about $9.7 million.
Cash and investments were in line at approximately $102 million, including
$33 million in bond proceeds.
Mr. Ferrell
responded to questions from Trustees.
Mr. Ferrell and
Mr. Neil Vickers, Associate Vice President for Finance and Budget, responded to
questions from Trustees.
·
Trustee Reports on Community Engagements
o Trustee Barbara
P. Mink reported on her work with approximately 30 students in The University
of Texas Doctoral Program. She stated
that these students will be future superintendents or college presidents. She called attention to the assistance of Dr.
Stephen B. Kinslow, Dr. Mariano Diaz-Miranda, and Mr. Jeffrey Richard.
o Trustee Allen H.
Kaplan reported on the Community College Association of Texas Trustees
(CCATT). He stated that CCATT is now an
official organization, has an IRS number, and By-Laws have been drafted with
the assistance of Trustee Veronica Rivera.
He stated a letter will be sent to all 50 community colleges inviting
them to join the CCATT. A reception will
be held in October for
CONSENT ITEM(S)
Chair McRaven
introduced the Consent Agenda.
Agenda Item 8481
Minutes of the
Recommendation: That the Board of Trustees approve the
minutes as presented.
Trustees Veronica Rivera moved and James McGuffee seconded
that:
MOTION: The Board of Trustees approve Agenda Item 8481, Minutes
of the July 7, Regular Meeting of the Austin Community College District Board
of Trustees
VOTE: The motion
passed on a vote of 8-0.
FOR: Raul Alvarez,
John-Michael Cortez, Allen H. Kaplan, Tim Mahoney, James McGuffee, Nan McRaven,
Barbara P. Mink, and Veronica Rivera.
AGAINST: None.
ABSENT: Trustee
Jeffrey Richard was absent from the meeting.
Agenda Item 8482
Proposed 2008 Tax Rate for
2008 Property Tax Rate Planning Calendar;
and Schedule Two Public Hearings for
Proposed 2008
Property Tax Rate
Chair McRaven
introduced the item and Mr. Ben Ferrell, Vice President for Business Services,
stated the adopted FY2009 balanced budget requires a $0.0900 Maintenance &
Operations tax rate per $100 assessed value.
The FY2009 tax debt service payment requires a $0.0054 Debt Service tax
rate per $100 assessed value. The
adopted FY2009 Budget includes $83,387,828 of property tax operating revenue
and $5,086,171 of property tax debt service.
Trustees James McGuffee moved and Veronica Rivera seconded
that:
MOTION: The Board of
Trustees vote to place the proposed 2008 Property Tax Rate of $0.954 ($0.0900
for Maintenance & Operations and $0.0054 for Debt Service) per $100 of
valuation on the agenda of a future meeting for adoption, and schedule two
public hearings on the proposed 2008 Property Tax Rate on
VOTE: The motion
passed on a vote of 8-0.
FOR: Raul Alvarez,
John-Michael Cortez, Allen H. Kaplan, Tim Mahoney, James McGuffee,
AGAINST: None.
ABSENT: Trustee Jeffrey
Richard was absent from the meeting.
Agenda Item 8483
Proposed Approval of Resolution
Authorizing the
Execution and Delivery of a Lease
Agreement and
Documents Related to the Lease with an
Option to
Purchase of Certain Educational
Facilities from
the Austin Community College District
Public Facility
Corporation; Consenting to the Execution
and Delivery by the Corporation of a
Mortgage, a
Security Agreement, a Trust Agreement and
a
Bond Purchase Agreement and the Delivery
of
Bonds Pursuant Thereto; Approving the
Distribution of an Official Statement
Pertaining to
the Corporations Bonds, and Containing
Provisions
Necessary and Incidental to the Purposes
Hereof
Chair McRaven
introduced the item and Mr. Ben Ferrell and Mr. Tom Pollan, College Legal Counsel,
provided information.
Section 303.071
of the Local Government Code requires that the Corporation must receive
specific approval by resolution of the Board of Trustees before it may
issue bonds to
finance or refinance public facilities such as the Round Rock Campus. The resolution approves the action of the
Austin Community College District Public Facility Corporation entering into a
lease purchase transaction with the District for the creation of the Round Rock
Campus and the financing thereof using Lease Revenue Bonds. The resolution also authorizes the District
to enter into a lease purchase agreement with the Corporation.
The District
will not be able to levy an ad valorem tax in the newly annexed area in Round
Rock until 2009. Debt service will be
covered for the first year by capitalized interest. After the District levies its tax in 2009,
the debt service will be paid from the operation and maintenance tax levied by
the District, so that the cost of the debt service for the new Round Rock Campus
will be covered by the newly annexed area in Round Rock.
Trustees Allen H. Kaplan moved and Barbara P. Mink seconded
that:
MOTION: The Board of
Trustees approve the Resolution Authorizing
the Execution and Delivery of a Lease Agreement and Documents Related to the
Lease with an Option to Purchase of Certain Educational Facilities from the
Austin Community College District Public Facility Corporation; Consenting to
the Execution and Delivery by the Corporation of a Mortgage, a Security
Agreement, a Trust Agreement and a Bond Purchase Agreement and the Delivery of
Bonds Pursuant Thereto; Approving the Distribution of an Official Statement
Pertaining to the Corporations Bonds, and Containing Provisions Necessary and
Incidental to the Purposes Hereof
VOTE: The motion
passed on a vote of 8-0.
FOR: Raul Alvarez,
John-Michael Cortez, Allen H. Kaplan, Tim Mahoney, James McGuffee,
AGAINST: None.
ABSENT: Trustee Jeffrey
Richard was absent from the meeting.
(Attachment A.)
Agenda Item 8484
Consideration and Action on a Resolution
of the Board
Of Trustees of the Austin Community
College District
Authorizing the President of the College
to Negotiate
And Execute a Contract for the
Acquisition of
Additional Property for a Round Rock
Campus and
Payment of Earnest Money for Such
Property
Chair McRaven
introduced the item.
Recess
The Board of
Trustees of the Austin Community College District recessed at
Reconvene
The Board of
Trustees reconvened in public session at
Agenda Item 8484 (continued)
Consideration and Action on a Resolution
of the Board
Of Trustees of the Austin Community College
District
Authorizing the President of the College
to Negotiate
And Execute a Contract for the
Acquisition of
Additional Property for a Round Rock
Campus and
Payment of Earnest Money for Such
Property
Trustees Veronica Rivera moved and Tim Mahoney seconded
that:
MOTION: The Board of Trustees adopt a Resolution of the
Board of Trustees of the Austin Community College District authorizing the
President of the College to negotiate and execute a Contract for the
acquisition of additional property for a Round Rock Campus and payment of
earnest money for such property in an amount not to exceed the amount discussed
in Executive Session.
VOTE: The motion
passed on a vote of 8-0.
FOR: Raul Alvarez,
John-Michael Cortez, Allen H. Kaplan, Tim Mahoney, James McGuffee, Nan McRaven,
Barbara P. Mink, and Veronica Rivera.
AGAINST: None.
ABSENT: Trustee
Jeffrey Richard was absent from the meeting.
(Attachment B.)
Agenda Item 8485
Authorization for the Prepayment of Lease
Purchase
Agreement with Citicorp Vendor Financing,
Inc.
Chair McRaven
introduced the item and Mr. Ben Ferrell stated ACC entered into an energy
management upgrade agreement with the Honeywell Corporation in FY 2002, and
financed the upgrade through a lease with Citicorp Vendor Financing, Inc., ending
in 2017. As discussed in the FY2009
budget study sessions, staff have determined that it would be beneficial to the
District to prepay this lease, thereby improving cash flows for the District by
$431,106 per year in budgeted principal and interest payments, and providing a
total of $710,316 in interest savings for the District over the remaining life
of the lease. $3,265,407.54 would come
from reserve funds to prepay the lease.
The principal portion of this amount is $3,006,391.82. Annual budget savings of $431,106 for FY2009
were incorporated and approved in the FY 2009 Budget on July 7, 2008.
Trustees Allen H. Kaplan moved and Veronica Rivera seconded
that:
MOTION: The Board of Trustees, by Resolution, authorize the
President, on behalf of the District and without further action by the Board,
to give notice to Citicorp Vendor Financing, Inc., of the District’s intent to
prepay the outstanding amount owed under the Agreement on the next payment date,
October 30, 2008, and that the Board authorize the transfer of a sufficient
amount of funds from the District’s Reserve Fund for the payment of the
outstanding amount owed on the Agreement on October 30, 2008, and authorize the
President to make such payment prior to August 31, 2008.
VOTE: The motion passed
on a vote of 8-0.
FOR: Raul Alvarez,
John-Michael Cortez, Allen H. Kaplan, Tim Mahoney, James McGuffee, Nan McRaven,
Barbara P. Mink, and Veronica Rivera.
AGAINST: None.
ABSENT: Trustee
Jeffrey Richard was absent from the meeting.
(Attachment C.)
Agenda Item 8486
Selection of Delivery Method and
Delegation of
Authority to Enter into a Contract for
Construction
for Site Lighting Improvements at
Chair McRaven
introduced the item and Mr. Ben Ferrell provided information. He said this is a renovation and construction
project approved in the ACC Master Plan and budget. Texas Education Code Chapter 44.035(a)
requires that the Board , in considering a construction contract, must select
the purchase method that provides the best value for the district. Funding for the project is provided in the FY
2008 Facilities Improvement budget.
Trustees James McGuffee moved and Barbara P. Mink seconded
that:
MOTION: The Board of Trustees select the Design/Bid/Build
method and delegate authority to the President to enter into a contract for
Site Lighting Improvements at the
The motion passed on a vote of 8-0.
FOR: Raul Alvarez,
John-Michael Cortez, Allen H. Kaplan, Tim Mahoney, James McGuffee, Nan McRaven,
Barbara P. Mink, and Veronica Rivera.
AGAINST: None.
ABSENT: Trustee
Jeffrey Richard was absent from the meeting.
Agenda Item 8487
Approval of Lease and Facilities Use
Agreement
Between the City of
College District Regarding the Proposed
Move
Of
Chair McRaven
introduced the item. Mr. Mike Midgley,
Vice President for Work Force Education and Business Development, and Mr. Gary
Hampton, Dean of Applied Technologies, Multi-Media, and Public Service,
provided information. The proposed move
to the Austin Fire Department would:
locate the academy within ACC’s service area; allow an expansion of the
program and address high-demand/turn-aways; consolidate ACC activities at one
location (ACC currently leases the AFD Fire Burn training facilities for all
live fire burns); eliminate the need for dormitories; provide space to add
related Continuing Education and credit classes; and would not prevent ACC from
collaborating with other regional fire departments, but would be complementary
to those activities. The cost of
relocating three portable units from Cypress Creek Campus to AFD Training
Facility and construction of required parking was estimated to be
$508,553. This cost was previously
approved by the Board at its February 5, 2007, meeting.
Mr. Midgley
stated the lease was approved by the Austin City Council at an earlier meeting.
Trustees Veronica Rivera moved and Barbara P. Mink seconded
that:
MOTION: The Board of Trustees approve the lease and
facilities agreement with the City of
VOTE: The motion
passed on a vote of 8-0.
FOR: Raul Alvarez,
John-Michael Cortez, Allen H. Kaplan, Tim Mahoney, James McGuffee, Nan McRaven,
Barbara P. Mink, and Veronica Rivera.
AGAINST: None.
ABSENT: Trustee
Jeffrey Richard was absent from the meeting.
(Attachment D.)
Agenda Item 8488
Proposed Revisions to Add Value
Statements to
Board Policy Groups: E, Planning and Evaluation;
F, Personnel; and G, District Finances
Chair McRaven
introduced the item and Dr. James W. McGuffee, Board Secretary, called
attention to the proposed value statements and indicated they were provided for
discussion. He suggested that this item
be included on a future agenda. He
requested that Trustees provide any suggested changes to him.
Agenda Item 8489
Annual Evaluation and Contract of College President
Chair McRaven introduced the item.
Recess
The Board of
Trustees of the Austin Community College District recessed at
Reconvene
The Board of
Trustees reconvened in public session at
Agenda Item 8489 (continued)
Annual Evaluation and Contract of College President
Trustees Veronica Rivera moved and Barbara P. Mink seconded
that:
MOTION: The Board of Trustees authorize the Board Chair to
negotiate with the College President for a one-year extension on his contract
to run through 2011 with the base salary of $245,000 plus benefits.
Chair McRaven
stated that the Board has proposed a one-year extension of the College
President’s contract since they believe that he has done a very good job as CEO
of the College and taking the College to the next level as a community
college. He has been recognized by his
peers on many occasions and with Round Rock joining the district, many, many
things have been positive this year and he has helped to lead this with the
help of the administration, staff, and Board of Trustees. We are excited to be where we are and we are
excited about the next three years. We
are looking forward to Dr. Kinslow’s leadership.
VOTE: The motion
passed on a vote of 8-0.
FOR: Raul Alvarez,
John-Michael Cortez, Allen H. Kaplan, Tim Mahoney, James McGuffee, Nan McRaven,
Barbara P. Mink, and Veronica Rivera.
AGAINST: None.
ABSENT: Trustee
Jeffrey Richard was absent from the meeting.
Dr. Kinslow
expressed his appreciation for the vote of confidence and the working
relationship with the Board of Trustees.
He stated he looked forward to moving the College forward.
Adjournment
Having no motion before the Board, the
Approved By
James
W. McGuffee, Board Secretary