MEETING OF THE COMMITTEE OF THE WHOLE
OF THE BOARD OF TRUSTEES
HOUSTON COMMUNITY COLLEGE SYSTEM
June 15, 2006
Minutes
The Board of Trustees of the Houston Community College System met as a Committee of the
Whole on Thursday, June 15, 2006, at the System Administration Building, Seminar Room A,
Second Floor, 3100 Main, Houston, Texas.
BOARD MEMBERS PRESENT
Jay K. Aiyer – Chair
Yolanda Navarro Flores, Vice Chair
Diane Olmos Guzman, Secretary
Bruce A. Austin, Deputy Secretary
Abel Davila
James R. Murphy
Christopher W. Oliver
Richard M. Schechter
ADMINISTRATION
Gloria Walker, Acting Chancellor/Vice Chancellor, Finance & Administration
Doretha Eason, Deputy to the Chancellor
Charles Cook, Vice Chancellor, Instruction
Irene Porcarello, Vice Chancellor, Student Success
Jose Villarreal, Vice Chancellor, College Advancement & Performance
Winston Dahse, Interim President, Southwest College
Margaret Ford, President, Northeast College
Fena Garza, President, Southeast College
William Harmon, President, Central College
Zachary Hodges, President, Northwest College
Marsal Stoll, President, Coleman College
Carole Keeney Harrington, Interim Associate Vice Chancellor, Communications
William Mack, Associate Vice Chancellor, Facilities and Construction
Willie Williams, Associate Vice Chancellor, Human Resources
Becky Giot, Executive Director, Budget Control
Mike Kyme, Executive Director, Procurement
Remmele Young, Executive Director, Government Relations
Miles LeBlanc, General Counsel
OTHERS PRESENT
Maureen Singleton, System Counsel, Bracewell & Giuliani
Dwight Boykins, Federal Government Relations Consultant, Boykins & Schneider
David Wilcox, President, Faculty Senate
Other administrators, citizens, and representatives of the news media
Houston Community College System
Committee of the Whole – June 15, 2006 – Page 2
CALL TO ORDER
Mr. Jay Aiyer, Chairman, called the meeting to order at 4:12 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.
FACILITIES
Mrs. Guzman called the Facility meeting to order at 4:13 p.m.
REVIEW 2004 CIP AND OTHER PROJECTS PROGRESS REPORT
Mrs. Guzman provided a report on the CIP progress report. The Facilities director and Mike
Kyme met on June 14, 2006. The report includes a Gantt chart with the projects progress. She
noted that the launch of the Drennan project is underway; however, if any projects require fast
track, there is a premium cost associated. The SE Workforce building is complete and ready for
advertisement; however, the Board must recommend a method of construction.
Bill Mack presented the different types of methods and provided clarification on why CMAR is
used as default. The competitive bid is used for renovation. The CMAR includes more complex
projects. The staff recommends the CMAR for the SE Workforce. Mrs. Flores asked what the
first phase consists of. Mr. Mack reiterated the process for the CMAR. He mentioned that the
last stage is to train the staff; however, a different role is used for the contract. Mrs. Flores
volunteered to meet with Mr. Mack one on one.
Mrs. Guzman requested that the CMAR on the SE Workforce should be placed on the regular
board agenda for approval.
(Mr. Oliver arrived at 4:24 pm.)
AUTHORIZE THE CHANCELLOR TO NEGOTIATE A CONSTRUCTION MANAGER
AT RISK CONTRACT FOR NORTHEAST COLLEGE-NORTHLINE CAMPUS –
PROJECT #06-24
Motion – Mr. Murphy motioned to approve Gilbane Building Company as the CMAR. Mr.
Davila seconded the motion. Motion passed 7-0-1 with Mrs. Flores abstaining.
Mr. Aiyer recommended that the item is brought back to the Board if administration is unable to
negotiate a contract with the firm selected.
Motion - Mr. Schechter motioned to allow Administration (in respect to this project) to proceed
with the next firm on the list if a contract is not negotiated with Gilbane Building. Mr. Davila
seconded. The motion failed with a vote 4-4 (In favor: Guzman, Flores, Schechter, Davila;
Opposing: Murphy, Oliver, Austin, and Aiyer).
Mr. Aiyer stated he objected to this motion because this would mean that one firm could be
constructing at least 40% of the CIP projects; therefore, it should be factored in the capacity of
each of the firms. Mr. Austin asked whether this should be a normal part of the firm's
evaluation. Mr. Murphy would be in opposition because staff should bring back the reason why
not getting a satisfactory contract.
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Committee of the Whole – June 15, 2006 – Page 3
Mrs. Guzman commended the staff for their efforts and commitment as it relates to the budgetary
concerns on the cost saving measures relating to the CIP. She also presented the newest staff
person on the HCC facilities team.
Mr. Aiyer commended everyone for their efforts.
FINANCE
Mr. Oliver called the Finance Committee meeting to order at 4:40 p.m.
APPROVE THE OPERATING BUDGET FOR FISCAL YEAR 2006-2007
Mr. Oliver asked Administration to provide a presentation on the budget status.
Mr. Aiyer recommended that budget discussion is tabled along with others items that effect the
operating budget such as items Finance 4 and 5.
Mr. Schechter recommended administration setup a budget workshop to allow for an in depth
discussion. He also asked if administration is recommending proceeding with discussion on
items 4 and 5. Mr. Williams (Human Resources) mentioned that the college is on an extremely
tight schedule with respect to the Performance Management System which is scheduled for
implementation for September 1, 2006. Mr. Oliver stated that he feels the budget should be
digested first. Mr. Austin asked if there has to be a budget before reviewing the performance
management. Mr. Aiyer stated that his concern is that the compensation correlates with the
budget since it deals with expenditure and therefore recommends discussing them together.
Mr. Murphy referred to the report from Fox Lawson and stated that it is important to set
parameters in the budget first. Mrs. Flores asked for clarification of Phase III as referenced in the
action item. Mr. Willie Williams informed the plan would be implemented in September 1,
2006; however, the expected pay out would not be until September 1, 2007.
Motion – Mr. Aiyer motioned and Mrs. Flores seconded to table the following items until the
Regular Board meeting. The motion passed 8-0:
3. Approval of the operating budget for fiscal year 2006-2007
4. Approve recommendations from the system compensation redesign committee
5. Approve recommendations from the system performance management advisory committee
APPROVE INTERLOCAL COOPERATIVE AGREEMENT FOR COLLECTION OF
TAXES FOR HCCS’ FT. BEND COUNTY BOUNDARIES
Motion- Mr. Aiyer motioned to approve. Mr. Murphy seconded the motion. The motion passed
8-0.
Ms. Walker stated the item was approved by the Board in the form of a resolution; however, the
statue has changed requiring that the agreement be an Interlocal Agreement.
Houston Community College System
Committee of the Whole – June 15, 2006 – Page 4
APPROVE INTERLOCAL AGREEMENT WITH CITY OF HOUSTON FOR MASS
PROPHYLAXIS (COMMUNITY EMERGENCY MEDICATION CENTER)
Motion – Mr. Aiyer motioned to approve. Mrs. Guzman seconded. The motion passed 8-0.
Ms. Walker stated that the City of Houston is requesting to use two of HCC is larger locations in
the event of an emergency to distribute medicine.
Mr. Murphy asked if there are any liabilities to HCC. Ms. Walker stated that HCC is in
discussion with the City of Houston. The Board requested that legal counsel review the contract.
Mrs. Singleton noted that counsel has reviewed the contract and noted there are a few changes.
Motion - Mr. Austin motioned to approve subject to legal counsel review and approval. Mr.
Murphy seconded the motion. Motion passed 8-0.
Mr. Austin recommended a preliminary disaster recovery plan is put in place for areas such as
IT. Mrs. Walker mentioned that a communication plan is being developed. Mrs. Flores
recommended that the insurance is reviewed as it relates to wind storm damage.
APPROVE AMENDED INTERLOCAL AGREEMENT WITH CITY OF STAFFORD,
TEXAS
Motion – Mr. Aiyer motioned to approve. Mr. Murphy seconded the motion. The motion passed
8-0.
APPROVE RENEWAL OF INVESTMENT MANAGEMENT SERVICES WITH SMITH,
GRAHAM & CO. INVESTMENT ADVISORS, L.P.
Motion – Mr. Aiyer motioned to approve. Mrs. Flores seconded the motion.
Mr. Schechter asked if Smith Graham follows the same investment practices as HCC. Ms.
Walker noted that they have to follow HCC policies. Mr. Schechter asked for an evaluation to
determine if the investment vehicles selected by Smith Graham have produced more in revenues
than it costs to have them as an investment management firm. He also requested an analysis of
the cash flow, average maturity, and end capital appreciation will be in order to determine if
there is actually a benefit.
Mr. Aiyer recommended that the item is tabled until internal return on investment is determined.
Mrs. Walker noted that Smith Graham did more long-term. Mr. Murphy verified that the request
is for staff to compare their performance with 3.2% rate of return achieved by Smith Graham.
Item was pulled to allow Administration to provide an analysis of the internal rate of return.
APPROVE PURCHASE OF EQUIPMENT FOR WEB MANAGEMENT PROJECT
Motion – Mr. Aiyer motioned to approve. Mr. Davila seconded the motion. The motion passed
8-0.
The Technology Committee deferred discussion of the scope of work for IT Business
Transformation Services to the Committee of the Whole.
Houston Community College System
Committee of the Whole – June 15, 2006 – Page 5
ADJOURNMENT TO CLOSED OR EXECUTIVE SESSION
Mr. Oliver adjourned the meeting to Executive Session at 5:10 p.m., notice having previously
been given and reiterated by him 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.
The meeting reconvened to open session at 5:34 p.m.
(Present: Trustees Aiyer, Austin, Davila, Flores, Guzman, Murphy, and Oliver)
APPROVE PAYMENT TO BRACEWELL & GIULIANI FOR PROFESSIONAL
SERVICES
Motion – Mrs. Flores moved approval. Mrs. Guzman seconded the motion. The motion passed
7-0.
APPROVE INVESTMENT REPORT FOR MAY 2006
Motion - Mr. Austin motioned to approve with the change that the report is restructured to reflect
internal and external investment productivity. Mr. Aiyer seconded the motion. The motion
passed 7-0.
APPROVE STUDENT EMAIL SYSTEM – PROJECT 06-31
Mr. Aiyer motioned to approve. Mrs. Flores seconded the motion. There was no vote on the
item since it was pulled to be discussed at the next Board meeting.
Mrs. Walker elaborated that an RFP was completed on the student email system. She noted that
during a financial aid assessment, it was noted that there were no tools for communicating with
the students. She noted that the RFP was written for two types of systems one that resides inhouse versus one that is considered a web-based type system.
Mr. Murphy asked for clarification on the decision to have internal or externally hosted;
however, it was his understanding that a firm offered to provide the system at no cost. Ms.
Walker informed that three companies presented proposals for light type systems; however, these
company evaluations did not meet the evaluation team review.
Mrs. Guzman asked for the clarification on the statement that the recommended vendor has met
the twenty-five percent small business goal. Ms. Porcarello stated that a goal is set in the scope
of work and in this case the vendor (MiraPoint) is complete ten percent on small business
assignments. Mr. Larry Wright informed that MiraPoint partnered with a local business that is a
HUB and note that seventy percent of the business is going to the HUB. Mrs. Guzman asked if
the HUB is a joint venture. Ms. Porcarello noted that it will be a joint venture. Mrs. Guzman
noted that a joint venture is not considered for the small business goal; the joint venture still has
to complete the percentage of the goal with other small businesses.
Mr. Davila recommended pulling the item to give administration an opportunity to clarify
concerns at the next board meeting.
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Committee of the Whole – June 15, 2006 – Page 6
Mr. Oliver stated that he recalls that the student email was to be provide at no cost; therefore, he
inquired how that the project move from no cost to a cost of $1.3 million.
Mr. Austin asked if it would be cheaper to buy a server for email to be maintained in-house; he
also asked if a cost analysis was conducted. Mr. Larry Wright stated that a cost analysis has
been completed.
Board concluded pulling the item until administration can provide clarification.
DISCUSS AND APPROVE FINANCIAL ASPECTS OF THE MARKETING/BRANDING
CAMPAIGN
Mrs. Flores informed that the Marketing Committee has been discussing the cost for in-house
marketing in comparison to external firms completing the items. Mrs. Flores asked that Mrs.
Keeney present the four items the Marketing Committee discussed. She noted there are issues
and concerns as it relates to the PR firm hired such as not including all ethnic groups when
conducting the marketing survey as well as not showing up to the meetings.
Ms. Catherine Campbell was present; however, Mr. Brad Deutser was not present due to
schedule conflicts.
Ms. Carole Keeney provided the Board with tag line and branding campaign completed by HCC.
The results showed that the Yaffe/Deutser tag line “Own Your Tomorrow” resonated as the
preferred tag line. The package also included the media timeline. She also presented various
concepts and ideas using portions of Yaffe/Deutser’s information.
ADJOURNMENT TO CLOSED OR EXECUTIVE SESSION
Mrs. Flores adjourned the meeting to Executive Session at 6:05 p.m., notice having previously
been given and reiterated by him in accordance with Sections 551.071 of the Open Meetings
Law. She 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.
The meeting reconvened to open session at 6:42 p.m.
(Present Trustees Aiyer, Austin, Davila, Flores, Guzman, and Oliver)
The Board discussed the strategic plan and Mrs. Flores will discuss the plan with
Communications.
REPORTS FROM APPOINTED COMMITTEES
BOARD GOVERNANCE
Ms. Singleton informed that conflict of interest policy was discussed in the Board Governance &
Operations Committee meeting which was tabled until Bracewell & Giuliani provide samples of
other institutions’ conflict of interest policies.
(Mr. Davila left at 6:45 p.m.)
Houston Community College System
Committee of the Whole – June 15, 2006 – Page 7
LEGAL/LEGISLATIVE
State Report
Mr. Young provided the state report:
Legislative Budget Board mandated that all public funded institutions provide budgets for
upcoming biannual. He noted that there is recommended ten percent reduction across the board.
Mr. Austin asked if the stated passed a bill on tax relief items. Mr. Young clarified that this is in
relation to the Public School Finance bill which just passed. He mentioned that the bill is a
property tax reduction bill and not so much as funding educational institutions; several entities
that were not paying taxes are now paying as a result of the new bill.
Federal Report
Mr. Young mentioned the approved budget by the President would zero out several programs
administered by HCC. He noted that the Senate provided $2.77 trillion dollars; however, line
items to receive the funding were not outlined. The House and Senate must reconcile their
differences in the bill they have provided.
Mr. Young reported that the Small Business Program received $50,000 as a result of the request
submitted to Congresswoman Sheila Jackson Lee in February 2005.
Mr. Dwight Boykins reported that the request referenced by Mr. Young was the request placed
before Congresswoman Sheila Jackson in the amount of $100,000 in 2005 for the small business
program. He noted that the funding was from the second appropriations.
Mr. Boykins informed that the request submitted this year has made it through the subcommittee
on the LaborHAS and the full committee. Mr. Boykins noted that the request has been
forwarded to the Senate for approved. He further stated that the request to Congresswoman
Sheila Jackson Lee has been submitted for $100,000 and it has been proposed that fifty percent
of the request will be received. Mr. Boykins reported that we are currently waiting on earmark
allocation for the Public Safety Institute and stated that the consultants are very optimistic that
the $1.5 million request will be funded.
ADJOURNMENT
There being no further business to come before the Mr. Aiyer declared the meeting adjourned at
6:55 p.m.
Minutes recorded, transcribed, & submitted by:
Sharon Wright, Executive Administrative Assistant, Board Services
Minutes Approved as Submitted: