MEETING OF THE COMMITTEE OF THE WHOLE
OF THE BOARD OF TRUSTEES
HOUSTON COMMUNITY COLLEGE
August 20, 2009
Minutes
The Board of Trustees of the Houston Community College met as a Committee of the
Whole on Thursday, August 20, 2009, at the HCC Administration Building, 2nd Floor
3100 Main in Seminar Room A, Houston, Texas.
BOARD MEMBERS PRESENT
Abel Davila, Board Chair
Neeta Sane, Vice Chair
Diane Olmos Guzman, Secretary
Bruce A. Austin
Yolanda Navarro Flores
Richard Schechter
Mills Worsham
ADMINISTRATION
Mary S. Spangler, Chancellor
Art Tyler, Deputy Chancellor/COO
Renee Byas, General Counsel
Doretha Eason, Executive Assistant to the Chancellor
Bill Carter, Vice Chancellor, Information Technology
Charles Cook, Vice Chancellor for Instructions
Cheryl Sterling, Interim Vice Chancellor, Student Services
Daniel Seymour, Vice Chancellor, Planning and Institutional Effectiveness
Margaret Ford Fisher, President, Northeast College
Zachary Hodges, President, Northwest College
Irene Porcarello, President, Southeast College
Betty Young, President, Coleman College
Willie Williams, Chief Human Resources Officer
OTHERS PRESENT
Jarvis Hollingsworth, Counsel, Bracewell & Giuliani
Mary Page, President, Faculty Senate
Other administrators, citizens, and representatives of the news media
CALL TO ORDER
Mr. Davila, Board Chair, called the meeting to order at 5:13 p.m. and declared the
Board convened to consider matters pertaining to Houston Community College as
listed on the duly posted meeting notice.
Motion – Mr. Austin moved and Mrs. Sane seconded to approve the items as a
consent agenda. The following items were approved with a vote of 7-0:
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Committee of the Whole – August 20, 2009 – Page 2
1. Financial Collection Services (Project #09-11)
2. Participation in Interlocal Agreement Creating the Texas Investment Provider
Selection Committee (TIPSC)
3. Monthly Finance Report for June and July 2009
4. Payment to Bracewell & Giuliani for Professional Services (June 2009)
5. Investment Report for the Month of June 2009
6. Investment Report for the Month of May 2009
REVISION TO HCC FINANCE AND OPERATIONS POLICIES B:1.6.4 (SIGNATURE
AUTHORITY)
Motion – Dr. Williams moved and Mr. Worsham seconded to approve.
Dr. Williams mentioned that signature authority was originally set at $100,000 under
the previous administration. Mr. Hollingsworth noted that the signature authority was
$100,000; however, it was decreased to $50,000 at the request of the previous
administration.
Vote – The motion passed with a vote of 7-0.
REPORT ON 2006 STUDENT REVENUE BONDS
Mr. Austin asked if the funds between various bonding issuances can be co-mingled.
Dr. Tyler noted that funds are not co-mingled and noted that they are handled
separately on the books. He noted that RBC will distinguish between bond and
maintenance tax notes during their presentation.
Mr. Austin requested that bond counsel opine the usage of residual amounts of bond
funds. Dr. Tyler noted that bond counsel will be present at the next meeting to
address concerns.
Mrs. Flores asked the status of the funds remaining for Northline. Dr. Tyler noted that
the administration is awaiting advice regarding best usage for the funds.
(Mrs. Guzman stepped out at 5:25 p.m.)
PRESENTATION BY RBC ON SINKING FUND AND REVENUES
RBC Capital Markets provided an overview of the factors that drive municipal bonds
ratings for HCC.
Mr. Jodie Jiles noted that HCC has received high quality and high grade ratings. He
expressed appreciation to the Board for their guidance and fiduciary oversight. RBC
provided information on the relevant factors that resulted in the HCC ratings.
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Committee of the Whole – August 20, 2009 – Page 3
(Mrs. Guzman returned at 5:29 p.m.)
Mr. Austin inquired of the liquidity variable due to Ike and asked if there is a formula
set for rainy day funds. He also asked if there is a need for a competitive analysis
regarding
student
population.
RBC noted that the college currently has a rainy day fund of 24% and noted that the
high is 25%; therefore, HCC is on the high end of the spectrum. Dr. Tyler noted that
the 24% was after Hurricane Ike, thereby, if the $6 million is received pertaining to
Hurricane Ike, the college would be well above the 25%.
Mrs. Guzman recommended that the presentation be repeated at the Regular meeting
regarding HCC financial rating.
Dr. Tyler noted that the cash position is higher than last year and noted that although
expenditures have increased, the revenues increased as well. He also noted that
marketing and advertising from the general fund has increased.
Purpose and Uses of 501c3 Services Corporation
Dr. Spangler apprised that a summary was provided on the 501c3. She noted the
thought process is to provide an opportunity for the college to engage resources to
underwrite other innovative activities; however, the entity is not meant to raise funds or
for personal intent.
Dr. Spangler noted that the entity would not compete with the HCC Foundation or
Public Facility Corporation and the Board would be distinct from the HCC Board. She
noted that technical assistance to other entities would be one of the efforts of the
organization.
Dr. Williams inquired of the process for selecting the board for the entity. Dr. Spangler
apprised three options are presented in the in the summary.
Mr. Austin noted that he is a proponent that HCC Board maintains control of the 501c3
since it will carry the name of the college.
Mrs. Flores noted that there is concern that college employees will be utilized for
operating the entity; however, the Board would not be in control. Dr. Spangler noted
that college employees may not be utilized but there could be a RFP to provide
services.
Mrs. Sane asked for the expenditure of funds to be defined. Dr. Williams noted that
they are defined by the Internal Revenue Service.
Mrs. Sane asked what the start up costs would be. Dr. Spangler noted that there are
some revenue streams that could be utilized of expenses.
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Committee of the Whole – August 20, 2009 – Page 4
Mr. Hollingsworth provided a legal opinion that the entity would not provide a legal
liability for the HCC Board. He noted that the Board would only need to declare that
the entity serves a public purpose.
Dr. Williams noted that there must be a decision on how much will be available to
infuse into the entity. Mr. Hollingsworth noted that the Board will not have any
fiduciary responsibility.
Mr. Austin referenced the US Tax Court and requested that legal counsel provide an
opinion.
Mr. Davila inquired on the status of the community colleges that are currently housing
such an entity.
Dr. Williams requested a status on the following: (1) Status of emergency
preparedness plan (2) Risk management status in regards to insurance (3) Campus
security and security at 3100 Main (4) Available counselor services for disturbed
students.
Dr. Tyler noted that a desktop exercise will be held to brief the Presidents regarding
business continuity.
Mrs. Guzman referenced the small business report and noted that there have been
some discrepancies regarding goals. She requested the small business component
for all contracts.
Mrs. Flores noted that the issue continues to come forth but there is no action. Mr.
Austin noted that there must be a small business compliance officer who will make
certain best efforts have been made. Dr. Tyler noted that there is a monitoring
compliance person to assist with moving the CIP forward.
Mr. Davila recommended creating a department that monitors compliance issues. He
requested that administration address the issues within the next 30 days in regards to
Dr. Williams’ concerns as well as a review of the small business compliance policy,
bond counsel opinion, and plan of action for BizConnect recommendation to include
the 501c3 corporation.
ADJOURNMENT
With no further business, the meeting adjourned at 6:31 p.m.
Recorded by:
Sharon R. Wright, Executive Administrative Assistant, Board Services
Transcribed and submitted by:
Sharon Wright, Executive Administrative Assistant, Board Services
Minutes Approved: