HARFORD COMMUNITY COLLEGE
Board of Trustees Work Session
September 7, 2012
The Board of Trustees of Harford Community College met on Friday, September 7, 2012, at
9:00 a.m. in the Chesapeake Center Board Room.
Trustees present: Mrs. Doris Carey (excused from the meeting at 11 a.m.); Mrs. April L. Fritts
(arrived at 9:50 a.m.); Mr. John F. Haggerty; Rev. Cordell E. Hunter, Sr.; Mr. Richard D.
Norling; Dr. James J. Valdes; and, Dr. Dennis Golladay as Secretary-Treasurer
Trustees absent: Mr. Bryan E. Kelly and Mr. Bradley R. Stover
Staff present: D. Cruise, G. Deal, V. Dodson, A. Haggray, R. Johnson, B. Morrison, A. Pagura,
and C. Sherman
Call to Order. J. Valdes called the work session to order.
Roll Call. Carol Sherman called the roll; quorum was present.
Incremental Tuition Scenarios. To ensure that the College remains fiscally sound, it is important
to look to the future and consider and plan for an incremental modulated schedule of tuition
increases. In recent years, the College has balanced the budget by allocating funds from the fund
balance. While this has met the immediate need, continuing this trend could lead to potential
financial issues in years ahead.
R. Johnson provided background information and shared scenarios of incremental tuition
increases. He discussed higher education funding sources – federal, state, county, foundations,
contracts and grants, tuition, fees, and auxiliary enterprises. Some general discussion followed on
the reduction in state funding for community colleges, a nationwide trend, efforts to return to the
Cade formula for funding Maryland community colleges, and revenue shortfalls at the state
level.
Tuition and fee drivers were also identified. These include:
 Cost shift from public funding to the individual funding education.
 Decrease in both state and county appropriations.
 Enrollment, revenue/expense gaps, i.e., last year expenses rose 3.5-4% while revenue
increased 2%.
 Philanthropic shifts.
 Tuition waivers (some mandated by law) which take cash from the operating budget.
 Technology – Recognition of student need for current technology during the educational
experience and recognition that technology is constantly changing.
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Deferred maintenance – Currently Harford’s list of deferred maintenance items totals $5-6M
some of which are smaller maintenance items while others are larger projects. List will be
shared with the Board at a future meeting. For the first time, this year’s audit will include a
footnote referencing deferred maintenance.
Shifting employee benefit cost – The State is gradually shifting retirement costs to the
County; full implementation will be completed by 2016. This will affect the funding stream
for the County.
Workforce competition – The College needs to remain competitive to retain a high quality
workforce.
In response to a question on review of benefits the College offers, B. Morrison and R. Johnson
explained that a review of offerings occurs throughout the year to identify options for potential
cost savings.
Information on transfers into the operating budget from the fund balance for the period FY 2007
through FY 2013 was shared. Credit hours for that same period were also reviewed. During this
period, there have been steady increases in credit hours, however, for FY 2013 enrollment is
projected to be relatively flat. This means that more will be required from the reserve to cover
the deficit. It is estimated that this year the loss will be $2.1-3.1M dependent on enrollment.
Scenarios projecting impact on the undesignated fund balance were shared. The scenarios
include models on differing enrollment projections, tuition increases of $5/year FY 2014 through
FY 2020, and $5 tuition increase plus $5 computing fee in FY 2014. Information on Maryland
community colleges tuition and fees for FY 2010 through FY 2013 was also shared.
Additional discussion concerned the cash reserve that needs to be maintained to address cash
flow issues. Some Maryland community colleges have a policy on the reserve to be maintained
while others have no written policy. A general practice for senior institutions is to maintain a 2025% cash reserve. R. Johnson suggested that a 15-20% reserve is appropriate for Harford.
Other discussion related to activities related to strategies to maintain and increase enrollment,
marketing opportunities, identification of under-represented groups (i.e., returning veterans,
students ages 25-30), academic offerings, and use of the website as a marketing tool.
Capital Projects Update.
Susquehanna Center. Phase 1 of the Susquehanna Center renovation/expansion project is nearly
complete. Fall semester classes are being offered in the building; some furniture is still to be
received. The renovation to the pool is behind schedule; when the new tile was to be laid on the
pool floor, the original concrete had disintegrated which was unexpected and new concrete had
to be poured. Originally the pool was scheduled to open October 1; that has been delayed until
November 1. Credit classes scheduled for the pool for the fall semester have been canceled.
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APG-FCU Arena. Phase 2 of the Susquehanna Center renovation/expansion project (the arena) is
on schedule to be finished November 15. There have been some issues with the wood floor.
Ribbon cutting opening event is tentatively scheduled for December 4. Remarks will be offered
by APG-FCU, the College, and elected officials. Tours of the building will be offered. Doubleheader basketball games are scheduled that evening (women’s basketball at 5 p.m.; men’s
basketball at 7 p.m.). First major event in the arena will be the Harlem Globetrotters on
December 30 at 2 p.m. Ticket prices will range from $25-65. On January 12, a community open
house is planned.
G. Pizzuto, arena coordinator, is marketing the facility. Fliers promoting opportunities for rental
of the facility were distributed. Also distributed was a chart of events scheduled; it lists both
confirmed and unconfirmed engagements.
B. Morrison shared information related to serving alcohol at arena events. Current options
include applying for a one-day permit through the Foundation for a College-sponsored event. For
an individual or organization renting the facility, a third-party caterer could be used. The third
option would require legislation for the College to hold a liquor license. The cost of the license is
high and there would also be a cost for additional insurance coverage.
R. Johnson advised that financial information for events in the arena will be tracked individually
to monitor profit and loss. Over time the data will provide guidance for events planning.
Nursing and Allied Health Building. Design team is approaching completion of the design. The
architects and nursing and allied health personnel have toured other state-of-the art nursing
facilities and have observed technology enhancements to be incorporated into the building. A
consultant will be employed to assist with the integration of specialized technology tools. It is
anticipated that the architectural design will be completed in October or November and then bids
for construction will be sought. Construction should begin in March 2013 with completion by
August 2014.
J. Valdes reminded staff that the Board appointed a committee to be involved throughout the
process. In addition to the Trustees serving on the committee, other trustees are welcome to
attend meetings with the architect.
Exclusive agreement. The College recently issued an RFP for an exclusivity contract related for
products sold on campus. Both Coca-Cola and Pepsi responded. Coca-Cola presented the best
offer and the College is moving forward with a five-year agreement. At the conclusion of the
first five years, there is the option to renew for an additional five years. As part of the agreement,
Coca-Cola will make a donation to the Foundation and Coca-Cola will own and operate the
vending machines. This latter provision creates additional cost savings to the College on parttime positions currently having responsibilities for the College’s vending operations.
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Risk Management. Human resources staff have talked to consultants about risk management
needs. Currently, a consultant is working with the College specifically with regard to health care,
health care reserves, and modeling trends.
Board Goals 2012-2013. By consensus, the Board agreed to table this item was until the next
Board work session.
Motion was made by A. Fritts, seconded by R. Norling and the work session adjourned at
11:15 a.m.
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Dennis Golladay
Secretary-Treasurer
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James J. Valdes
Vice Chair