MEETING OF THE COMMITTEE OF THE WHOLE
OF THE BOARD OF TRUSTEES
HOUSTON COMMUNITY COLLEGE SYSTEM
January 20, 2005
Minutes
The Board of Trustees of the Houston Community College System met as a Committee Of The
Whole on Thursday, January 20, 2005, at the System Administration Building, Seminar Room A,
Second Floor, 3100 Main, Houston, Texas.
BOARD MEMBERS PRESENT
Herman Litt, Chair
Michael P. Williams, D.Min., Vice Chairman
Yolanda Navarro Flores, Secretary
Diane Olmos Guzman, Deputy Secretary
Jay K. Aiyer
Bruce A. Austin
Abel Davila
James R. Murphy
Christopher W. Oliver
ADMINISTRATION
Bruce H. Leslie, Chancellor
Doretha Eason, Interim Deputy to the Chancellor
Charles Cook, Vice Chancellor, Educational Development
Irene Porcarello, Interim Vice Chancellor, Institutional Development
Jose Villarreal, Vice Chancellor, Economic Development
Gloria Walker, Vice Chancellor, Finance and Administration
Sue Cox, President, Southwest College
Margaret Ford, President, Northeast College
Fena Garza, President, Southeast College
Zach Hodges, President, Northwest College
Patricia Williamson, Interim President, Central College
Rosie Barrera, Associate Vice Chancellor, Communications
Miles LeBlanc, General Counsel
Willie Williams, Interim Executive Director, Human Resources
OTHERS PRESENT
Jarvis Hollingsworth, System Counsel, Bracewell & Patterson
Mike Edwards, President, Faculty Association
Other administrators, citizens and representatives from the news media
CALL TO ORDER
Mr. Litt called the meeting to order at 4:40 p.m. and declared the Board convened to consider
matters pertaining to the Houston Community College System as listed on the duly posted
meeting notice.
ELECTION OF OFFICERS FOR 2005
Houston Community College System
Committee of the Whole – January 20, 2005 – Page 2
Dr. Michael P. Williams Elected Chairman
Motion — Mr. Litt nominated Dr. Michael P. Williams for Chairman. Mr. Aiyer seconded the
nomination.
Motion — Mr. Aiyer moved that nominations cease. Second was inaudible. Motion carried 8-0.
(Mr. Oliver had not yet arrived)
Dr. Williams was elected Chairman 8-0.
(Dr. Williams took the chair)
Yolanda Navarro Flores Elected Vice-Chairman
Motion — Mr. Davila nominated Yolanda Navarro Flores for Vice-Chairman. Ms. Olmos
Guzman seconded the nomination.
Motion — Mr. Aiyer moved that nominations cease. Second was inaudible. Motion carried 8-0.
Ms. Navarro Flores was elected Vice-Chairman 8-0.
Diane Olmos Guzman Elected Secretary
Motion — Ms. Navarro Flores nominated Diane Olmos Guzman for Secretary. Mr. Murphy
seconded the nomination.
Motion — Mr. Aiyer moved that nominations cease. Second was inaudible. Motion carried 8-0.
Ms. Olmos Guzman was elected Secretary 8-0.
Bruce Austin Elected Deputy Secretary
Motion — Mr. Davila nominated Bruce Austin for Secretary. Mr. Aiyer seconded the
nomination.
Motion — Mr. Aiyer moved that nominations cease. Second was inaudible. Motion carried 8-0.
Mr. Austin was elected Deputy Secretary 8-0.
RECESS CALLED
Chairman Williams called a recess at 4:43 p.m. The meeting was reconvened at
4:45 p.m.
PRESENTATIONS FROM FINANCIAL ADVISORY FIRMS
Gloria Walker explained that HCC solicited requests for proposals for a firm to provide financial
advisory services. The following responded to the RFP and were selected to make presentations
to the Board. Each firm was given five minutes to present their proposal, following by a
question and answer session.
1.
RBC Dain Rauscher
Houston Community College System
Committee of the Whole – January 20, 2005 – Page 3
2.
3.
4.
Coastal Securities, Estrada Hinojosa & Company
First Southwest Company/Ramirez & Co., Inc.
Southwest Securities
(Mr. Oliver arrived at 5:20 p.m.)
(Mr. Austin left at 5:25 p.m.)
Following the presentation, Ms. Walker was asked to give a recommendation from
administration. She stated that if the Board wished to rotate professional services contracts, she
would recommend Dain Rauscher. However, she stated that she valued the relationship
established with Coastal Securities who had served as financial advisor for several years.
MOTION TO RECOMMEND APPROVAL OF COASTAL SECURITIES AS
FINANCIAL ADVISORS FAILED
Motion: Ms. Navarro Flores made a motion to place the following item on the Consent Agenda
for approval at the Regular Board Meeting of January 27, 2005: Approve Coastal Securities to
provide financial advisory services for HCC. Mr. Murphy seconded the motion.
Motion failed 2-6, with Trustees Murphy and Navarro Flores voting in support; and Trustees
Aiyer, Davila, Litt, Oliver, Olmos Guzman, Williams opposed.
RECOMMEND APPROVAL OF DAIN RAUSCHER AS FINANCIAL ADVISORS
Motion – Mr. Oliver made a motion to place the following item on the Consent Agenda for
approval at the Regular Board Meeting of January 27, 2005: Approve Dain Rauscher to
provide financial advisory services for HCC and authorize the Chancellor to negotiate and
exe cute a contract for financial advisory services with the firm. The contract will be for
one year with renewal options.
Motion carried 6-1, with Trustees Aiyer, Litt, Murphy, Oliver, Olmos Guzman, and Williams
voting in support. Trustee Navarro Flores voted against the motion and Trustee Davila
abstained.
RECOMMENDATIONS FOR CONSENT AGENDA OF JANUARY 27, 2005
Motion – Mr. Aiyer made a motion to place the following recommendations on the Consent
Agenda for approval at the Regular Board Meeting of January 27, 2005. Ms. Navarro Flores
seconded the motion. Motion carried 8-0.
•
Sub recipient Agreement between HCCS and HEB to provide training and job placement to
new and/or incumbent workers;
•
Purchase of Diesel Fuel and Unleaded Gasoline for the Northeast College Truck Driving
Training Program;
•
Transportation services for students at the Katy Mills facility;
•
Ratification of expenditures for Smarthinking (on-line tutoring);
•
Investment Report for the month of November 2004; and
•
West Loop Center Build-Out
RECESS CALLED
Houston Community College System
Committee of the Whole – January 20, 2005 – Page 4
Chairman Williams called a recess at 6:00 p.m. The meeting was reconvened at 6:10 p.m.
PRESENTATIONS FROM CONSTRUCTION FIRMS
The Trustees heard presentations from the three top-ranked firms to provide the design-build
construction of Phase 1 of the Public Safety Institute. Firms making presentations included:
1.
2.
3.
Pepper-Lawson Construction, L. P. (recommended by the evaluation team)
Constructors & Associates, Inc.
J. E. Dunn Construction
(Mr. Austin returned at 6:45 p.m.)
RECOMMEND APPROVAL OF PEPPER-LAWSON CONSTRUCTION TO PROVIDE
DESIGN-BUILD SERVICES FOR THE PUBLIC SAFETY INSTITUTE
Motion – Mr. Murphy made a motion to place the following item on the Consent Agenda for
approval at the Regular Board Meeting of January 27, 2005: Authorize the Chancellor to
negotiate a Design Build Contract with Pepper-Lawson Construction to provide for the
design-build construction of Phase 1 of the Public Safety Institute that includes the burn
building, firing range and training tower structures.
Ms. Navarro Flores seconded the motion. Terry Haymond was called upon to advise the Board
on the qualifications of the three teams. Motion carried 9-0.
PROCEDURAL ISSUES DISCUSSED BY THE TRUSTEES
The Board discussed procedural issues concerning items considered by the Committee of the
Whole and what constitutes final action. The matter was referred to the Board Operations
Committee for development of a policy.
RECOMMEND APPROVAL OF LOAN AND REIMBURSEMENT RESOLUTION
Motion – Mr. Murphy made a motion to place the following item on the Consent Agenda for
approval at the Regular Board Meeting of January 27, 2005:
Authorize the Chancellor to negotiate a loan and execute all necessary loan documents with
the financial institution approved by the Board to finance the following items and ratify
any prior actions taken regarding same. The items to be financed are as follows:
ÿ Westgate Atrium building - $7,785,000
ÿ 24.2636 acres of land adjacent to the Westgate Atrium building - $3,170,000
ÿ 89.0567 acres of land adjacent to the Northeast Campus - $3,640,803
and to authorize and take necessary action on a Resolution expressing intent to finance
expenditures to be incurred in acquiring the facility and land identified above, which will
enable the System to be reimbursed for those expenditures made from the public facility
corporation bond proceeds.
Ms. Navarro seconded the motion.
Jorge Rodriguez, financial advisor, with Coastal Securities explained the financing for
acquisition of the facility and land and responded to questions from the Board. The Chancellor
acknowledged a request from Trustee Davila for a master plan for the Southeast College that
would ensure that financing mechanisms were in place for future expansion and programs, for
discussion at the February Board Meeting.
Houston Community College System
Committee of the Whole – January 20, 2005 – Page 5
Motion carried 8-0 (Mr. Aiyer was out of the room).
Mr. Rodriguez expressed appreciation for the opportunity of serving as financial advisor for the
past several years and looked forward to the opportunity to work with HCC in the future.
ADJOURNMENT TO CLOSED OR EXECUTIVE SESSION
Chairman Williams adjourned the meeting to Executive Session at 7:35 p.m., notice having
previously been given and reiterated by her in accordance with Sections 551.071 of the Open
Meetings Law. He stated that any final action, vote or decision on any item discussed in
Executive Session would be taken up in Open Session or in a subsequent Public Meeting. He
reconvened the meeting in Open Session at 7:55 p.m. and entertained motions on pending
matters.
RESOLUTION AND SETTLEMENT APPROVED IN THE MATTER OF
DIBENS ENTERPRISES, LLC.
Motion – Ms. Navarro Flores made a motion to place the following recommendation on the
Consent Agenda for approval at the Regular Board Meeting of January 27, 2005: Approve the
Original Plan of Reorganization filed on October 15, 2004, as amended by that First
Modification of Debtor’s Original Plan of Reorganization, filed December 21, 2004, in the
case styled In Re Dibens Enterprises, LLC, Case No. 04-40418-H1-11 in the United States
Bankruptcy Court for the Southern District of Texas (Houston Division).
Motion carried 6-0 (Present were Trustees Austin, Litt, Navarro Flores, Oliver, Olmos Guzman
and Williams).
RECOMMEND APPROVAL OF CONTRACT TO LEASE PROPERTY AT
811 DALLAS FOR HCCS CORPORATE TRAINING FACILITIES
Motion – Mr. Litt made a motion to place the following recommendation on the Consent Agenda
for approval at the Regular Board Meeting of January 27, 2005: Authorize the Chancellor to
negotiate and approve a contract to lease property located at 811 Dallas to serve as HCCS’
Corporate Training facilities for the Central College Continuing Education Division.
Mr. Oliver seconded the motion. Motion carried 6-0.
NEXT REGULAR MEETING
Chairman Williams announced that the Regular Board Meeting of January 27, 2005 would begin
at 2:00 p.m., instead of 4:00 p.m.
ADJOURNMENT
With no further business, the meeting was adjourned at 7:55 p.m.
Minutes Prepared by:
Linda Gray, Board Services
Reviewed and Submitted by:
Yolanda Navarro Flores, Secretary
Board of Trustees
Minutes Approved as Submitted:
February 24, 2005