SPECIAL MEETING
OF THE BOARD OF TRUSTEES
HOUSTON COMMUNITY COLLEGE SYSTEM
September 24, 2008
Minutes
The Board of Trustees of the Houston Community College System held a Special
Meeting on Wednesday, September 24, 2008 at the HCC West Loop Campus, 5601
West Loop South, Auditorium, Houston, Texas.
Board of Trustees Present:
Bruce A. Austin, Vice Chair
Diane Olmos Guzman, Secretary
Mills Worsham, Deputy Secretary
Neeta Sane
Richard M. Schechter
Dr. Michael P. Williams
Administration Present:
Mary Spangler, Chancellor
Art Tyler, Deputy Chancellor/COO
Renee Byas, General Counsel
William Carter, Vice Chancellor, Information Technology
Charles Cook, Vice Chancellor for Instruction
Dan Seymour, Vice Chancellor, Planning and Institution Effectiveness
Cheryl Sterling, Interim Vice Chancellor, Student Success
Fena Garza, President, Southwest College
Margaret Ford-Fisher, President, Northeast College
William Harmon, President, Central College/Interim President, Colman College
Zachary Hodges, President, Northwest College
Irene Porcarello, Interim President, Southeast College
Willie Williams, Associate Vice Chancellor, Human Resources
Others Present:
Jarvis Hollingsworth, Counsel, Bracewell & Giuliani
Gene Locke, Counsel,
Brad Deutser, Consultant, Yaffee|Deutser
Catherine Campbell, Consultant, Yaffee|Deutser
Mary Page, President, Faculty Senate
Other administrators, citizens, and representatives of the news media
CALL TO ORDER
Mr. Austin, Vice Chair, called the meeting to order at 3:25 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.
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Special Meeting – September 24, 2008 – Page 2
RESOLUTION PUBLISHING AND ADOPTING A REVISED SERVICE PLAN FOR
ALL OF THE TERRITORY WITHIN THE ALIEF INDEPENDENT SCHOOL
DISTRICT AFTER PUBLIC HEARINGS AND MATTERS RELATED THERETO
Mr. Austin asked administration to elaborate on the Effective Rollback and Debt
Service proposed tax rate.
Dr. Tyler advised that the code requires that the notice has been published to the
public to proposed tax rate. He described the current tax rate, and debt service tax
.092433 per $100 tax value. He noted that last year the average home in the HCC
service area was valued at $190,000; however, the taxable value has increased
approximately six percent, therefore, average today is $201,664. Dr. Tyler apprised
that the utilizing the effective rate would allow for the same amount of funds
generated last year; he also noted that there was an increase in the debt.
Dr. Williams mentioned that there are normally estimations as a part of the
calculation. Dr. Tyler mentioned that the estimation will be completed; however, it is
not available at this moment.
Mrs. Sane noted that the proposed rate is less than the rollback and asked if there
will be a lock-in rate. Dr. Tyler noted that we have been committed to the tax rate
and it would be locked-in. He noted that a commitment has been made to the Alief
community as a part of the service plan.
Mr. Austin asked if counsel has opined to provide an official analysis. Dr. Williams
asked which counsel should opine. Mr. Austin stated that it should be Mr.
Hollingsworth since he is the counsel who advises the Board.
Mr. Austin noted that this opine should be a part of the package presented to the
Board and therefore, the Board’s decision would be based on the advice provided by
counsel.
Motion – Dr. Williams moved and Sane seconded that the Board consider adopting
the proposed rate of $.092489 per $100 assessed valuation as the total tax rate for
the tax year 2008. The motion passed with vote of 5-0.
Vote:
Mills Worsham – Yes
Neeta Sane – Yes
Bruce Austin – Yes
Michael Williams – Yes
Richard Schechter – Yes
(Mrs. Guzman arrived at 3:44 p.m.)
UPDATE ON STATUS OF FACILITIES
Dr. Spangler thanked those instrumental in assisting relating to Hurricane Ike.
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Dr. Tyler provided an overview of the status of the facilities and entertained
questions from the Board.
Bill Carter, Vice Chancellor for Information Technology, provided an update of
information technology functionality in regards to disaster recovery site. He noted
that one of the major issues was the phone system at 3100 Main.
Mr. Austin mentioned that there has been previous discussion of identifying a
disaster recovery site that is outside the City of Houston. Mr. Carter mentioned that
the data was secured and the record retention items were safely stored off-site at a
secure location.
Mr. Austin asked about an email blast that could be sent to the students and staff.
Mr. Carter noted that most of the city was without power; therefore, email blast
would not benefit in this instance. He noted that there are efforts to review options
that would allow for better preparation.
Dr. Williams asked if there is a written disaster recovery plan. Mr. Carter mentioned
that the plan is available in written format.
Mrs. Sane asked if there are other functionalities that must be implemented for the
future and if these functions will be added. Mr. Carter noted that they are reviewing
what worked and what did not. He noted that the major item is the phone system,
which is in review and advised that voice-over capabilities are available. He noted
that the biggest issue as it relates to IT is power.
Mrs. Guzman asked if there is a repository of what worked and what did not. Dr.
Tyler mentioned that he asked staff to provide a report on pros and cons. He
mentioned that the major issue was not having any power.
Mr. Worsham commended Dr. Tyler and the staff for getting the facilities back online and noted that the pros and cons as well as lessons learned should be
reviewed.
Mr. Austin recommended that the disaster recovery plan is posted on the website
similar to other institutions.
Dr. Tyler provided a report with estimated damages of $14,434,167 and noted that
the report was provided to the Governor’s office as requested. He noted that
anticipated loss of revenues is estimated at $6.4 million; however, he noted that
some of the funds may be recouped from insurance.
Mr. Austin noted that the county emergency operation center has up to the minute
information and mentioned that a person from the college should be stationed at the
center and noted that the opportunity should not be lost.
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Special Meeting – September 24, 2008 – Page 4
Mrs. Guzman noted that there is an agreement that could be entered into with
TransStar. Mr. Austin mentioned that an agreement is not necessary. Mrs. Guzman
mentioned that this is an area that should be explored so that a person from the
college could also be stationed at TransStar. She also mentioned that Points of
Distribution (POD) should have been located at each of HCC campuses.
Dr. Tyler mentioned that the Police Chief would be the person who would be
stationed at the Emergency Operation Center. He noted that this is necessary and
part of the problem was not having enough staff. He mentioned that the college was
in constant contact with the major entities to provide updates.
Dr. Williams asked if the essential personnel could provide comments of lessons
learned. Dr. Tyler noted that there is not enough manpower to man all the locations.
Chief Cunningham informed that a major effort was made to distribute necessary
items to the HCC police staff. He noted that there were a few campuses that were
inaccessible and apprised that an on-going assessment will be made for
improvement.
Mrs. Guzman mentioned that she had to leave town; therefore her home was
unsecure. She asked if possible, consideration could be given to provide security for
the Trustees.
Mr. Schechter stated that for the record, he does not want HCC police securing his
home. Mr. Hollingsworth mentioned that the request would need to be reviewed by
counsel.
Mr. Schechter commended administration on their efforts during the hurricane and
the recovery. He mentioned that he had a lengthy meeting with Dr. Tyler on the
sinking fund issue and this recent disaster displays the need to revisit the allocation
for the reserve.
Dr. Williams noted that the Board is not given the responsibility of crafting and
recommended that administration provide the assumptions.
RATIFICATION OF EMERGENCY EXPENSES UP TO $15 MILLION
Dr. Tyler apprised that counsel was consulted as it relates to spending for
emergency expenses. He was informed that the Board would need to ratify the
spending.
Mr. Austin recommended giving the Chancellor the ability to take action in
emergency situations. Dr. Williams stated that this should be included in the bylaws.
He mentioned that it must be determined if her authority would be unlimited such as
the current situation.
Dr. Tyler mentioned that there is approximately $8.16 million in expenses and
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Special Meeting – September 24, 2008 – Page 5
apprised that efforts are being taken to ensure safety and that there is no further
damage to the facilities.
Mr. Austin stated that he reviewed the FEMA definition of emergency and
recommended that the legal definition should be used.
Mrs. Sane asked of the source of funding if the funds are not coming from the fund
balance. Dr. Tyler mentioned that he attempted to provide the worst case scenario.
He noted that the insurance deductible is two percent (2%).
Mrs. Guzman asked if the $15 million is coming directly from the reserve. Dr. Tyler
apprised that any expense outside of the insurance coverage must come from the
sinking funds.
Mr. Worsham asked what chances are there to recoup some of the expenditure
through federal appropriations. Dr. Tyler mentioned that there is a possibility that
some of the expenses would be recouped but he is not able to determine how much
would be received.
Mr. Schechter asked for clarification on the ratification. Dr. Tyler apprised that the
Chancellor needs authority to enter contracts that are in place as it relates to
damages from Hurricane Ike and noted that the Chancellor needs authority to enter
contracts based on the emergency expenses.
Dr. Williams asked that if the building is operational, would this be considered an
emergency. Mrs. Byas stated that if there is a major concern that has caused
damage to the building, then expending funds to repair could be utilized.
Dr. Williams mentioned that there has to be some definition of what is considered an
emergency. Dr. Tyler noted that the purpose is to define the Chancellor’s authority in
relations to an emergency and noted that the Board could declare that there is an
emergency.
Mr. Austin mentioned that the Board must first declare that there is an emergency
and then determine the amount.
Motion - Dr. Williams moved that there was an emergency as declared by the
Governor of the State of Texas and President of United States as it relates to
Hurricane Ike. Mrs. Guzman seconded. The motion passed with a vote of 6-0.
Motion - Mrs. Guzman moved that the Board approve expending of emergency
funds up to $15 million for the use of the emergencies related to Hurricane Ike. Mrs.
Sane seconded.
Amended Motion - Dr. Williams made a friendly amended to approve the emergency
funds up to $7.5 million with further consideration by the Board. Mrs. Guzman
accepted the amendment and seconded the motion.
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Special Meeting – September 24, 2008 – Page 6
Vote – Motion passed with vote of 6-0.
UPDATE OF HCC EMPLOYEES’ PAYROLL
Dr. Tyler mentioned that there is an option of paying hourly pay employees who did
not work during the hurricane.
Mr. Austin recommended that counsel opine the issue and provide comments on the
practice of what other entities have done.
Mr. Schechter recommended that a special meeting is held once Counsel has
reviewed and provided an opinion on the issue.
ADJOURNMENT
With no further business coming before the Board, the meeting adjourned at 5:29
p.m.
Minutes recorded and submitted by:
Sharon Wright, Executive Administrative Assistant, Board Services
Minutes Approved as Submitted: