REGULAR MEETING
OF THE BOARD OF TRUSTEES
HOUSTON COMMUNITY COLLEGE SYSTEM
February 28, 2008
Minutes
The Board of Trustees of the Houston Community College System held a Regular
Meeting on Thursday, February 28, 2008 at the System Administration Building, Second
Floor Auditorium, 3100 Main, Houston, Texas.
BOARD MEMBERS PRESENT
Yolanda Navarro Flores, Chairman
Bruce A. Austin, Vice Chair
Diane Olmos Guzman, Secretary
Abel Davila
Christopher Oliver
Neeta Sane
Richard M. Schechter
Dr. Michael P. Williams
Mills Worsham
ADMINISTRATION
Mary Spangler, Chancellor
Art Tyler, Deputy Chancellor/COO
Charles Cook, Vice Chancellor for Instruction
William Carter, Vice Chancellor, Information Technology
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
Zachary Hodges, President, Northwest College
Marsal Stoll, President, Coleman College of Health Science
Willie Williams, Associate Vice Chancellor, Human Resources
Dan Seymour, Associate Vice Chancellor, CTCE
Dan Arguijo, Associate Vice Chancellor, Communications
Mike Kyme, Executive Director, Purchasing and Procurement
Kelly Zuniga, Executive Director, HCC Foundation
OTHERS PRESENT
Jarvis Hollingsworth, System Counsel, Bracewell & Giuliani
Linda Koffel, President, Faculty Senate Association
Houston Community College System
Regular Meeting – February 28, 2008 – Page 2
Other administrators, citizens and representatives from the news media
CALL TO ORDER
Mrs. Flores, Chair, called the meeting to order at 3:38 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.
PRAYER AND PLEDGE OF ALLEGIANCE
Mr. Oliver led the prayer and pledge of allegiance to the flag.
HEARING OF CITIZENS
Mrs. Flores gave preface to the Hearing of Citizens and asked if there were any
registered speakers to come forward. There were no Citizens signed up to speak before
the Board.
APPROVAL OF MINUTES
Approval of Minutes from the Special Meeting of January 4, 2008, Committee of the
Whole Meeting of January 17, 2008, and Regular Meeting of January 24, 2008.
Motion – Mr. Davila moved approval of the minutes as presented. Mr. Oliver seconded
the motion. The motion carried 8-0.
CHAIRMAN’S REPORT
Mrs. Flores provided the following reports:
•
In honor of Black History month, HCC held its first Legacy Award Series on
Friday, February 22, 2008. HCC received a certificate of Congressional
Recognition signed by Congressmember Sheila Jackson-Lee and a Black
History Resolution presented by Congressmember Al Green.
•
Mrs. Flores announced that Trustee Mills Worsham was not in attendance
due to a death in his family. She asked that everyone pause for a moment of
silence.
•
Mrs. Flores recognized Trustee Neeta Sane who provided information for
consideration on behalf of the institution. Mrs. Sane apprised that there is an
opportunity to submit an additional appropriation request to Congressman
Lampson for approximately $200,000 to $400,000; however, the request must
be submitted by Monday, March 3, 2008. Trustee Sane apprised that she
has discussed the request with the Federal Team and Government Relations
as it relates to the paperwork. She requested the Board support on the effort
and noted that the Congressman is in support of the request.
Mr. Austin noted that the Chancellor was empowered to put together the
legislative program and requested that the request by Trustee Sane be
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Regular Meeting – February 28, 2008 – Page 3
included as a part of the legislative program since the Chancellor has the
discretion to include the item as a part of the legislative agenda.
Mr. Davila noted that he is in support of the effort.
•
Resignation of Gloria Walker – Mrs. Flores announced that Gloria Walker,
Vice Chancellor for Finance and Administration is leaving HCC to join Texas
Southern University as Vice President/COO. The Board expressed their
appreciation to Mrs. Walker for her work ethics and contribution to HCC.
CHANCELLOR’S REPORT
Dr. Spangler’s report consists of the following:
•
Thank you to Trustee Mills Worsham for offering testimony in Austin, Texas
on behalf of HCC to the Select Committee on Higher and Public Education
Funding.
•
HCC’s Association of Women Administration raised approximately $2,200 at
the Men of Distinction Lunch for student scholarships.
•
The HCC Foundation received $150,000 from Direct Energy for student
scholarships.
•
Ten honor students who are enrolled in History 2389 will be visiting Spain
during the Spring Break as a part of a curriculum linked to the study abroad
program.
CONSENT AGENDA
Motion – Mr. Davila moved approval on the consent agenda. Mr. Oliver seconded. The
motion passed with a vote of 8-0.
1. Approve Renewal of Blackboard/WebCT Site License and Service Provider
2. Approve Extension of General Counsel Consulting Services with Feldman,
Rogers, Morris, & Grover, LLP
3. Approve Investment Report for the Month of December 2007
4. Approve Donation of Cisco Equipment to the Cisco Academy
5. Approve PeopleSoft V9.0 Student Administration Upgrade Project
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APPROVE RESTRICTIONS OF CREDIT CARD MARKETING ON COLLEGE
CAMPUSES
Motion – Mr. Schechter moved approval and Mr. Oliver seconded.
Dr. Tyler apprised that the lender banks have been diligent about offering classes in
terms of financial awareness and apprised that this practice will be continued.
Mr. Schechter asked if the companies housed in HCC facilities are allowed to house
credit card marketing in their facilities such as the bookstore. Mrs. Walker apprised that
the bookstore is owned by the college and is housed in HCC space to provide a specific
service.
Vote – The motion passed with a vote of 8-0.
APPROVE CHANGE ORDERS TO GENERAL MAXIMUM PRICE CONTRACTS FOR
CIP PROJECTS
Motion - Mr. Austin moved approval. Mr. Davila seconded the motion.
Mr. Austin noted that the backup material recite reduction to the original GMP was due
to the removal of IT cable allowance. Mrs. Walker noted that there is a separate
contract approved by the board.
Vote – The motion passed with a vote of 8-0.
APPROVE CHANGE IN INVESTMENT POLICY
Motion – Mr. Austin moved and Mrs. Sane seconded.
Mr. Austin apprised that his concern in the change in the investment policy is the impact
of inflation and unemployment on the depreciation of investments. He noted that there
was not enough time allocated for review of long-term versus short-term investments as
it relates to describing the kind of liquidity referenced. He noted that there was not a
good analysis of risk of the investments.
Mr. Austin suggested a review of default market and liquidity risks in the future. He
suggested staying away from mortgage investments and restricting to non-speculative
type investments given the economy’s condition. Dr. Tyler apprised that is the purpose
for making the change in the policy, which speaks to the changes in the market. He
noted that as much detail as needed will be provided as requested. He noted that the
change reduces the risks significantly.
Mr. Austin referenced the disclosure statement published by the Government Financial
Office Association (GFOA) and suggested that administration review to compare with
the investment strategy. Mrs. Walker apprised that the college received an award from
the GFOA and noted that administration is in constant contact with GFOA. She noted
that the policy change was brought to the Board because of the volatility in sub-prime
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Regular Meeting – February 28, 2008 – Page 5
and wanted to limit the exposure. She noted that the coverage was decreased from
110% to 107% to instruments that have full faith in credit of the government.
Dr. Tyler commended Mrs. Walker and her team as it relates to investments and
evaluation of data. He noted that the team has out performed the market continuously.
Mr. Schechter noted that the entire team deserves a tremendous amount of credit for
their investment decisions. He asked if there are any investments that will need to be
disposed of because they no longer fall into what was previously allowed. Mrs. Walker
noted that there is no debt falling on exposure at this time. She noted that the
investment team meets weekly for discussion and reviews. She apprised that there is
collateral coverage on investments.
Mr. Austin requested that the following be defined at the beginning of the next
investment report: U.S. Treasury Bill, U.S. Government Agency Securities, U.S.
Government Sponsored Corporation Bonds, Municipal Bonds, Bank and Other Financial
Institution Debt, Repurchase Agreements, Corporate Securities, and Commercial
Papers, Real Estate Mortgages and Foreign Government Securities.
Vote – The motion passed with a vote of 8-0.
TOPIC FOR DISCUSSION AND/OR ACTION
Motion - Dr. Williams moved and Mr. Austin seconded to approve the following items:
1.
Resolution for Bank Account Changes
2.
Payment to Bracewell & Giuliani LLP for Professional Services (January
2008)
3.
Personnel Agenda for February 2008
Vote – The motion passed with a vote of 8-0.
ADJOURNED TO CLOSED SESSION
Mrs. Flores adjourned the meeting to Executive Session at 4:31 p.m., notice having
previously been given and reiterated in accordance with Sections 551.071, 551.072,
and/or 551.074 of the Open Meetings Law. Mrs. Flores 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.
(Mr. Worsham arrived during closed session at 6:30 p.m.)
Mrs. Flores reconvened the meeting in Open Session at 7:05 p.m. and entertained
motions on pending matters.
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(Present: Trustees Austin, Flores, Guzman, Sane, Schechter, Oliver, Williams, and
Worsham)
Motion – Mr. Schechter moved to approve the revised Chancellor Goals for 2008. Dr.
Williams seconded. The motion passed with a vote of 8-0.
APPROVE NETWORK EQUIPMENT FOR CIP PROJECTS
The item is pulled by the Chancellor pending an opinion from legal counsel.
ADJOURNMENT
With no further business coming before the Board, the meeting adjourned at 7:07 p.m.
DINNER
Following adjournment, the Board of Trustees met for dinner in the Chancellor’s
Conference Room on the 12th floor, where they may discuss System business but will
not take action on such business.
Minutes recorded, transcribed & submitted by:
Sharon Wright, Executive Administrative Assistant, Board Services
Minutes Approved as Submitted: