MEETING OF THE COMMITTEE OF THE WHOLE
OF THE BOARD OF TRUSTEES
HOUSTON COMMUNITY COLLEGE SYSTEM
January 17, 2008
Minutes
The Board of Trustees of the Houston Community College System met as a Committee of the
Whole on Thursday, January 17, 2008, at the System Administration Building, Second Floor
Auditorium, 3100 Main, Houston, Texas.
BOARD MEMBERS PRESENT
Yolanda Navarro Flores, Chair
Bruce A. Austin, Vice Chair
Diane Olmos Guzman, Secretary
Abel Davila
Neeta Sane
Richard M. Schechter
ADMINISTRATION
Mary Spangler, Chancellor
Art Tyler, Deputy Chancellor
Doretha Eason, Executive Assistant to the Chancellor
William Carter, Vice Chancellor, Information Technology
Charles Cook, Vice Chancellor for Instruction
Irene Porcarello, Vice Chancellor, Student Success
Gloria Walker, Vice Chancellor, Finance & Administration
Fena Garza, President, Southeast College
Margaret Ford, President, Northeast College
William Harmon, President, Central College
Zachary Hodges, President, Northwest College
Marsal Stoll, President, Coleman College
Willie Williams, Associate Vice Chancellor, Human Resources
Dan Arguijo, Jr., Associate Vice Chancellor, Communications
Dan Seymour, Associate Vice Chancellor, CTCE
Mike Kyme, Executive Director, Procurement
OTHERS PRESENT
Jarvis Hollingsworth, System Counsel, Bracewell & Giuliani
Linda Koffel, President, Faculty Senate
Sherry Howell, President, COPA
Dwight Boykins, Consultant, dBoykins
Other administrators, citizens, and representatives of the news media
Houston Community College System
Committee of the Whole – January 17, 2008 – Page 2
CALL TO ORDER
Mrs. Yolanda Navarro Flores, Chair, called the meeting to order at 4:53 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.
Mrs. Flores asked the Chancellor to elaborate on the revised agenda format.
Dr. Spangler explained the new brand standards so that the cover sheet for the Committee of
the Whole would be white and the cover for the Regular meeting will be blue. She noted that
the inside front cover lists the mission, vision, and goals the Board approved. Agenda items on
yellow sheet indicate that no action is required (information or report item), white items are
action items requesting the Board’s approval. A green sheet item indicates a revision (of any
kind) to the final copy. She noted that the information format on each item includes brief
discussion or recommendation, strategic goal alignment (one of the six approved goals and the
strategy seeking to advance). Dr. Spangler also apprised that the full strategic plan has been
added as an appendix to the agenda book for reference purposes.
TOPIC FOR DISCUSSION AND/OR ACTION
Mrs. Flores recommended treating the agenda as a consent agenda. Dr. Spangler
recommended that items C.4, C.6, C.11, and C.12 be addressed in conjunction with the CIP
presentation.
Mrs. Guzman requested to pull items C.7 for discussion. Mr. Schechter requested to pull item
C.10 for discussion in closed session.
Motion – Mr. Austin motioned and Mr. Schechter seconded to move the following items to the
consent agenda:
1. Articulation Agreement in Aviation Science between HCC and Texas Southern
University
2. Digital Microscope and Related Equipment (Projected 08-04)
3. PeopleSoft V9.0 Student Administration System Upgrade Project
4. Investment Report for the Month of November 2007
Mrs. Guzman asked if there is any dual credit transfer information as it relates to the
articulation agreement with four-year institutions in the HCC catalog that include career path
information to allow students or career counselors to go on-line and plan their career paths as
early as the ninth grade. Dr. Cook informed that there is a website specifically dedicated to
articulation/transfer agreements that contain the type of information listed in the agreement.
Mrs. Guzman also asked when the joint meeting with HISD is scheduled. Dr. Spangler
informed that discussion has taken place with Dr. Saavedra and she noted that HISD will host
the meeting, which is anticipated for early spring.
Vote – The items passed to the consent agenda with a vote of 6-0.
Houston Community College System
Committee of the Whole – January 17, 2008 – Page 3
CIP STATUS REPORT AND FUNDING STRATEGIES
Dr. Spangler referred to Dr. Tyler and Gloria Walker to address issues that the Board has asked
about as it relates to the Capital Improvement Plan (CIP) status.
Dr. Tyler provided a historical overview of funds the Board has provided for the District’s CIP
since December 2001 as follows:
Year
Funding
Amount
(in Millions)
2001
2003
2005
2005
2006
2006
2006
2007
Student Revenue and Refunding Bonds
Limited Tax Bonds (G.O.)
Public Facilities Corporation (PFC) Lease Revenue
Bonds (Public Safety Institute)
PFC Lease Revenue Bonds (Westgate)
Maintenance Tax Notes (Central –HVAC Plant)
Junior Lien Student Fee Revenue and Refunding
Bonds, Series (including $30 million for CIP and $17
million for IT development and instruction equipment)
PFC Lease Revenue Bonds (Hayes Road)
PFC Lease Revenue Bonds (Northline Mall)
$30
$151.8
$19.5
$11
$12
$47
$36.9
$58.8
Dr. Tyler provided information relating the Board approved priorities and noted that priority
one projects totaled $93.7 million. A 2003 review showed a significant growth in the
estimated constructions dollars from $93 million to $113 million with many factors involved.
Dr. Tyler apprised that in 2006 there was a review of the project and noted that some of the
projects had expanded in terms of scope and some items had been combined to economy scale.
He further elaborated that the estimated cost as of January 1, 2006 had escalated over a period
of twenty-five months to $130.5 million and noted that during this period, the cost of
construction was escalating at approximately $700,000 monthly each time there was a change
and challenges of the market.
Dr. Tyler apprised that in March 2006, there was a discussion to review what could be
accomplished. It was estimated that the funds needed to complete the CIP and Central Plant
HVAC was approximately $253 million and the San Jacinto building was placed on hold.
However, the cost of $81 million for site and IT infrastructure and equipment was omitted.
Dr. Tyler apprised that the cost to complete projects through December 2009 is $86.53 million;
however, the cost to complete the projects coming out of the ground is approximately $56
million, which is the obligation if the Board decides not to create any more debt.
Mr. Schechter stated that he thought that the amount needed was $39 million to finish the out
of ground projects.
Houston Community College System
Committee of the Whole – January 17, 2008 – Page 4
Dr. Tyler noted that there were a couple of other projects that have been completed through the
CIP and noted that most of them have been completed with the exception of Hayes Road.
There is an approximate $3.9 million unfunded requirement to complete Hayes Road, which is
roughly ninety-nine percent complete.
Dr. Tyler apprised that the various scenarios for funding the debt will be discussed later in the
presentation. He apprised that the current debt outstanding is $481.4 million principal only,
which is not unreasonable in comparison with many colleges in Texas. He noted that the
General Obligation Bond is the largest component.
Mr. Schechter asked how much the cost would be if interest is included. Mrs. Walker stated
that she was not prepared to recite from memory; however, she believed that the data included
interest and principal.
Mr. Schechter asked if we were a publicly held corporation, filing an annual report with the
SEC, would the $481 million be the debt reported. Mrs. Walker apprised that the debt is
reported in the audited financials as the outstanding debt.
Dr. Tyler provided an overview of the current picture on the various projects and the
percentage of completion.
Mr. Davila asked for the cost to fast-track projects. Dr. Tyler informed that the cost can
become significant. He noted that there was not a concrete master plan for all the buildings;
however, the projects need to be expedited as quickly as possible so that the cost is minimized.
Mrs. Guzman noted that the initial review depicts that the Southeast project has not been a
priority. She asked if the project management team has a cost-change control system and if
there is a performance measurement analysis on every deliverable and milestone that needs to
be met. Dr. Tyler apprised that the project management team and member of the campus
teams met on regular monthly basis.
Mr. Schechter asked if there were any incentives to the contractors for completing the project
earlier than anticipated. Dr. Tyler informed that there are no incentives built into the contract.
Dr. Tyler apprised that Trustee Schechter has submitted several questions, which will be
answered and submitted to the entire board.
Mrs. Flores stated that there should be some form of penalty for not completing a contract on
time and noted that goals that are within our control need to be completed on time as well as
those set for persons involved in the planning, architect, etc.
Mrs. Sane asked for clarification on the Southwest projects especially the Learning
HUB/Classrooms for May and June 2007. Mr. Sahni noted that the delays were because of
difficulty with permitting.
Houston Community College System
Committee of the Whole – January 17, 2008 – Page 5
Mrs. Sane asked if there are plans to institute internal controls on future contracts. Mr. Sahni
noted that there are Guaranteed Maximum Price contracts with a penalty if projects are not
completed on time. Dr. Tyler noted that there are such controls in terms of incentives;
however, a proposal could be prepared as a recommendation for the Board to review.
Mr. Austin noted that the problem is sequencing of actions previously taken. Mr. Austin
suggested that counsel provide matrixes that include alternatives the Board can make that show
the benefits and burdens of the choices.
Mr. Schechter referenced Mr. Sahni’s comment of the GMP contracts currently with penalties.
Mrs. Walker noted that all the general contracts are GMP contracts and have to delivery the
construction at that price. Mr. Schechter asked if this is the case, why we have to pay more
money. Mrs. Walker noted that at the beginning of every contract before price is negotiated,
the method of constructions must be determined. She noted this CIP has a construction
management at risk and noted that the GMP does not take effect until all the planning is
completed.
Mrs. Guzman noted that there must be internal controls. She asked for the deliverables relating
to the small business participation. Mrs. Guzman referenced the payment to Blake and
Williamson for deliverables, which is listed on the CIP Small Business Summary as an
example.
Dr. Tyler referred the question to Mr. L. J. Vincik with PGAL. Mr. Vincik informed that the
whole management team is a management team and Blake and Williamson are furnishing
management personnel. He apprised that Blake and Williamson are furnishing a project
manager for the northeast college projects with the exception of the Northline campus. He
informed that there is one project manager for each campus and each one is furnished to PGAL
management team by a small business representative.
Mrs. Guzman requested an organizational chart with deliverables and Mrs. Flores requested the
breakdown. Mrs. Flores asked the Trustees to submit their questions to Dr. Tyler for response
and clarification.
(Mr. Davila stepped out at 5:56 p.m.)
CIP FUNDING ALTERNATIVES
Mrs. Walker provided the summary of financing alternatives.
(Mr. Davila returned at 5:58 p.m.)
Mrs. Walker noted that the objective is to complete the CIP and noted that the Maintenance
Tax Notes (MTN) are the best alternative but noted that all the construction can not be
completed under the MTN; however, infrastructure can be completed under the MTN. She
presented a summary of cash position of existing CIP in three phases.
Houston Community College System
Committee of the Whole – January 17, 2008 – Page 6
Mr. Schechter asked when the extra money would be needed. Mrs. Walker apprised that the
funds would be needed before March 2008 but realistically by May 2008. Mr. Schechter asked
that the question is included with his list of questions presented. Mrs. Walker apprised that a
draw down schedule would be presented to the Board.
Mr. Austin asked what is the bottom line needed. Dr. Tyler noted that the bottom line is $86.5
million, which includes $55 million in maintenance tax notes for Phase I and $31 million is
needed for Phase II and III.
(Mr. Austin stepped out at 6:20 p.m.)
(Mrs. Sane stepped out at 6:20 p.m. and returned at 6:23 p.m.)
Mr. Schechter noted that $40 million is needed to complete the CIP; however, Drennan and
Southeast Workforce projects have started. He asked whether these projects are factored into
the equation. Mrs. Walker apprised that both projects are factored in as a mid-construction
period.
(Mr. Austin returned at 6:26 p.m.)
The Board discussed the Summary of Cash Position of Existing CIP and the Maintenance Tax
Notes funding options for Phases I, II, and III.
Mr. Schechter requested a review of the possibility of G.O. Bond for at least one project, which
is a parking garage alternative at Southeast. He also requested a review of the programming
plan for the Southeast Workforce building.
Mr. Schechter recommended establishing a smaller facilities committee to interface with
administration on building projects.
Mr. Hollingsworth noted that the board could vote to change the committee structure.
Mr. Schechter recommended reviewing the options of expanding the Southeast Workforce
building. Mr. Davila stated that it is a good suggestion to expand the Southeast building to
maximize what we could get for the dollar now. Mr. Schechter stated that this was his reason
for asking the question for the programming planning for Southeast and Drennan projects.
(Mr. Davila left at 6:38 p.m.)
EXTENSION OF CONSTRUCTION PROGRAM MANAGEMENT SERVICES WITH
PGAL
Recommendation - Authorize the Chancellor to extend the contract with PGAL for
construction program management services (CPMS). Extension should go to December 2009
or the completion of the CIP Phase I and other associated projects, whichever occurs first.
Motion - Mr. Austin moved to approve and Mr. Schechter seconded.
Houston Community College System
Committee of the Whole – January 17, 2008 – Page 7
Mr. Schechter asked for the start date of the PGAL contract. Mr. Kyme informed that the
effective date was August 2004.
Vote – 4-0-1 with Mrs. Guzman abstaining.
The Board recessed at 6:45 p.m. and reconvened the meeting at 6:50 p.m.
(Present: Trustees Austin, Flores, Guzman, Sane, and Schechter)
Motion - Mrs. Guzman moved to reconsider the Extension of Construction Program
Management Services with PGAL. Mr. Austin seconded the motion.
Vote on Motion to Reconsider – The motion passed with a vote of 5-0.
Mrs. Guzman requested the following information be provided to the board prior to the
Regular Board meeting scheduled for January 24, 2008:
•
•
•
Small business certification
Small business deliverable thus far
Organization Chart
Motion – Mr. Austin moved to approve the Extension of Construction Program Management
Services with PGAL. Mr. Schechter seconded the motion. The motion passed 5-0.
AMENDMENT TO HCC AND FT BEND COUNTY LIBRARY COST
SHARING/JOINT USE AGREEMENT
Motion – Mrs. Sane moved and Mr. Austin seconded to approve.
Mr. Schechter asked if the library has been completed. Dr. Tyler apprised that the building has
not been completed.
Mrs. Sane asked who is causing the delay and recommended that a liaison is appointed.
Mr. Austin recommended that the item is approved with a caveat that no additional funds will
be provided for the project.
Mrs. Flores asked if there is any idea of the construction cost. Dr. Tyler informed that the cost
is appropriately $10 million.
Mr. Hollingsworth apprised that the original contract is a not-to-exceed; however,
administration is asking for authority to extend the contract.
Vote – The motion passed 5-0.
Houston Community College System
Committee of the Whole – January 17, 2008 – Page 8
TAX INCREMENT REINVESTMENT ZONE (TIRZ) – SIENNA PLANTATION,
MISSOURI CITY, TEXAS
Motion – Mrs. Sane moved and Mr. Austin seconded to approve.
Mrs. Guzman recommended that the item is amended for consideration that a Trustee from that
district is considered to serve on the TIRZ board.
Mr. Hollingsworth noted that this should be a recommendation for administration to pursue as
opposed to making it a part of the motion, which could jeopardize the board’s participation.
Mr. Schechter noted that the college may be better served if someone from administration
represents the college on the TIRZ board.
Mrs. Guzman noted that she would like to see similar possible duplications of TIRZ efforts in
the other districts.
Vote – motion passed with vote of 5-0.
RATIFICATION OF ARAMARK CONTRACT
Motion – Mr. Austin moved and Mrs. Guzman seconded.
Dr. Spangler noted that the contract with Aramark has been renegotiated for a cost savings
measure.
Mr. Hollingsworth asked if there is a provision to renew in the original contract.
Mrs. Flores asked if there is a revision or a new contract because the contract was terminated.
Dr. Spangler noted that the contract was never terminated. She reiterated that the Board was
informed in June that negotiations were under way to reduce the cost.
Mrs. Flores asked how much more savings could be realized if some services are handled
internally and outsource those services that we are not able to handle internally and if there are
any performance issues on the contract. Dr. Tyler informed that he has received reporting from
staff that the contract has increased substantially.
Dr. Spangler noted that it is a three year contract with an annual renewal. Dr. Tyler noted that
the contract will be brought back to the Board for consideration of an extension beyond the
one-year term.
Mrs. Flores requested a study to show what services can be handled in-house and the cost
savings. Mr. Walker informed that the study was completed and noted that the cost was
estimated at least a million dollar increase.
Vote – The motion passed 5-0.
The Board reviewed the new 10 second commercials for HCC.
Houston Community College System
Committee of the Whole – January 17, 2008 – Page 9
ADJOURNMENT
With no further actions coming before the Board, the meeting adjourned at 7:28 p.m.
Minutes recorded, transcribed, & submitted by:
Sharon Wright, Executive Administrative Assistant, Board Services
Minutes Approved as Submitted: