SPECIAL MEETING
OF THE BOARD OF TRUSTEES
HOUSTON COMMUNITY COLLEGE SYSTEM
August 17, 2006
The Board of Trustees of the Houston Community College System held a Special Board Meeting
on Thursday, August 17, 2006 at the System Administration Building, Second Floor Seminar
Room A, 3100 Main, Houston, Texas.
BOARD MEMBERS PRESENT
Jay Aiyer, Board Chair
Yolanda Navarro-Flores Vice-Chair
Diane Olmos-Guzman, Secretary
Bruce Austin, Deputy Secretary
Abel Davila
James Murphy
Richard Schechter
ADMINISTRATION
Norman Nielsen, Interim Chancellor
Doretha Eason, Deputy to the Chancellor
Miles LeBlanc, General Counsel
Charles Cook, Vice Chancellor, Instruction
Irene Porcarello, Vice Chancellor, Student Success
Gloria Walker, Vice Chancellor, Finance and Administration
Winston Dahse, Interim President, Southwest College
Margaret Ford, President, Northeast College
Fena Garza, President, Southeast College
William Harmon, President, Central College
Zach Hodges, President, Northwest College
Marsal Stoll, President, Coleman College
Carole Keeney, Interim Associate Vice Chancellor, Communications
William Mack, Associate Vice Chancellor, Facilities and Construction
Willie Williams, Associate Vice Chancellor, Human Resources
Remmele Young, Executive Director, Government Relations
Becky Giot, Executive Director, Budget Control
Mike Kyme, Executive Director, Procurement
OTHERS PRESENT
Jarvis Hollingsworth, System Counsel, Bracewell & Giuliani
David Wilcox, President, Faculty Senate
Borris Miles, Insurance Agent, Borris L. Miles
Other administrators, citizens, and representatives of the news media
Houston Community College System
Special Meeting – August 17, 2006 – Page 2
CALL TO ORDER
Mr. Jay Aiyer, Board Chair called the meeting to order at 3:22 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.
APPROVE THE OPERATING BUDGET FOR FISCAL YEAR 2006-2007
The Board concluded to proceed with discussion of specific questions relating to the proposed
budget as opposed to formal presentations from the staff. Mr. Aiyer polled each Trustee to present
their questions and/or comments. The following items were discussed as it relates to the operating
budget for fiscal year 2006-2007:
(Mr. Davila arrived at 3:34 p.m.)
1. Expand College Connections and expand College programs: Mr. Schechter asked for
clarification between expand college connections and expand college programs. Mrs. Walker
informed that College Connections is an outreach and recruitment pilot program at the high
schools which began in the Fall. She noted that the purpose of the program is to connect with
the parents and student in efforts of guaranteeing the students preparation for college in such
areas as financial aid and counseling. Mrs. Walker noted that the expand college programs is
related to the regular on-going programs such as academic workforce, CTCE, etc. Dr. Cook
noted that the expansion of college programs would include expanding specific workforce
programs to all of the colleges to include at least the introductory certificate program.
2. Salary increases referencing new positions: Mr. Murphy asked for clarification as to whether
the referenced across the board salary increases include new positions. Mrs. Walker concurred
that the salary increases do include new positions.
3. Tax Rate: Mr. Murphy noted that HCC tax rate is the 42nd lowest in comparison to other
districts in Texas; however, the tax revenues are the fourth highest which means more is
received from the taxpayers. He noted that there is a huge amount of property value in terms of
the structure.
4. In-district and Out-of-district comparison: Mr. Murphy asked about the in-district versus the
out-of-district. He asked for clarification on HCC calculation and noted that the model which
depicts approximately $34 per semester credit hour is not offset which is misleading. Mr.
Austin noted that the model is not the best in terms of fiscal comprehensiveness because when
most governmental bodies’ annual financial statements are reviewed, there is a statistical
analysis which considers the weighted average of the industrial infrastructure.
Mr. Davila asked for a market analysis of the out-of-district to review how it will affect
enrollment. Dr. Cook noted that a report was presented at the March workshop. He noted that
enrollment has declined throughout the college as it relates to out-of-district.
Mrs. Walker informed that information was presented with various scenarios to see the effect
on enrollment such as if the tuition is lower and noted that there are a number of variables. Dr.
Nielsen noted that if enrollment can be grown, several areas will be filled by adjunct faculty
which will still be profitable.
Houston Community College System
Special Meeting – August 17, 2006 – Page 3
Mrs. Flores noted some type of gauge must be developed to provide data in order to make
reasonable decisions.
The Board concluded that administration should develop a model to be used for setting tuition
in the future.
5. Revenue Generation: Mr. Austin noted that he was concerned with revenue generation that
could be caused by the career clusters and the strategic impact on the implementation of dual
credit throughout the district. He also recommended that HCC consider suggesting an
agreement to HISD to provide CTE and other services. He noted that contract training should
be expanded to match with industry cluster and expanding leisure learning/continuing
education classes.
6. Employment Benefits Increase: Mrs. Guzman asked if there has been an adjustment between
salary increases and benefits cost. Mrs. Walker noted that employee benefits increase is caused
by the State rate increase. She also informed that the College must carry the cost of benefits for
new hires for the first three months since the State no longer pays new employee benefits for
the first three months.
7. Early College for HISD: Mrs. Flores mentioned that there is a crisis with some of HISD High
Schools and recommended that HCC review possibilities to partner with HISD to provide
assistance for these schools. Mr. Aiyer requested that Administration discuss opportunities for
the next budget cycle on how HCC can assist those HISD schools with serious problems.
8. Detail listing of System personnel for each division: Mr. Aiyer requested the number of staff
persons supporting each of the System divisions. Mrs. Walker noted that the expense is
truncated such as the Chancellor’s Office which consists of Board Services, Human Resources,
Finance, and General Counsel.
Mr. Aiyer stated that he would like for as many divisions as possible to be College driven. Mr.
Austin noted that there must be a function analysis. Mr. Aiyer noted that this has been done
with the College to Standards model and that there needs to be one fundamental model where
the dollars can be driven to students; however, if this cannot be completed for this budget then
it should be determined for the future budget.
Mr. Schechter mentioned concerns that the staff budget is almost equal to the faculty budget.
He stated that in reviewing the amount per student based on enrollment, there seems to be a
discrepancy and recommended that the College to Standards issue is addressed.
9. Contract Services: Mrs. Guzman asked whether maintenance contracted services have been
reviewed in consideration of bringing the services in-house since the cost is just as much as the
cost for utilities. Mrs. Walker stated that they have been in-house and the cost was much less.
Mr. Austin suggested that contracted services are analyzed. Mr. Davila requested that the
bookstore is included as well in the analysis.
Houston Community College System
Special Meeting – August 17, 2006 – Page 4
Mr. Davila requested a one page breakdown which displays the profit received from these
companies.
10. Utilities: Mr. Aiyer mentioned that utility is the single largest increase and requested an
overview of the energy saving items this year. Mrs. Walker stated there is not one other than
the automatic system for the air and lighting at the System building. Mrs. Walker noted that a
measurement has not been completed. Mr. Aiyer requested a review of the management of
water and power at the various buildings.
Dr. Nielsen asked Mike Kyme to address this concern who deferred the question to Tim
Rychlec. Mr. Rychlec stated that there was a TA retrofit on all the buildings owned. He noted
that the College is currently working on the lighting as well as automation for the air condition.
He stated that the automation would allow the equipment to go into sleep mode as opposed to
cutting off.
Mr. Aiyer requested a comprehensive approach on operation management for future review.
Mr. Schechter stated that the College should review whether it can continue to operate the
smaller buildings. Mr. Austin stated that the engineers should be involved because most of the
cost deals with energy loss at the older facilities.
Mr. Murphy recommended utilizing the base study used several years ago.
11. Workforce Budget: Mrs. Flores asked if the workforce budget increased. Dr. Cook noted that
the budget for workforce is $969,000 which is going directly to the colleges and informed that
eleven workforce programs have been identified.
12. Risk Management Insurance: Insurance Agents, Mr. Borris Miles, Dekyle Davis, and Terry
Cook with Borris Miles Insurance informed that they were able to identify savings on all
insurance coverage except in the area of property. They informed that there are only three
carriers in the nation and possibly the world that will insure HCC and noted that the primary
drivers were hurricanes Katrina and Rita. The carriers were concerned with the wind and flood
coverage and HCC capacity. Mr. Morris noted that although there was a 160% increase, they
were able to save in other areas.
ADJOURNMENT
With no further actions coming before the Board, the meeting adjourned at 5:15 p.m.
Minutes Recorded, transcribed, and submitted by:
Sharon Wright, Executive Administrative Assistant, Board Services
Minutes Approved as Submitted:
________________________