SPECIAL MEETING
OF THE BOARD OF TRUSTEES
HOUSTON COMMUNITY COLLEGE
June 22, 2012
Minutes
The Board of Trustees of Houston Community College held a Special Meeting (Board
Retreat) on Friday, June 22, 2012 at The Houstonian, 111 North Post Oak Lane,
Camelia Room, 3rd Floor, Houston, Texas.
BOARD MEMBERS PRESENT
Mary Ann Perez, Chair
Bruce Austin, Vice Chair
Neeta Sane, Secretary
Sandie Mullins
Christopher W. Oliver
Carroll G. Robinson
Richard Schechter
ADMINISTRATION
Mary Spangler, Chancellor
Art Tyler, Deputy Chancellor/COO
Shantay Grays, Interim Executive Officer to the Chancellor
OTHERS PRESENT
Jarvis Hollingsworth, System Counsel, Bracewell & Giuliani
Karun Sreerama, ESPA Corp
Gene Locke, Bond Counsel, Andrews Kurth
Tom Sage, Bond Counsel, Andrews Kurth
Clarence Grier, Financial Advisor, RBC Capital
Stephanie Hennings, Financial Advisor, RBC Capital
Jeff Hockaday, Facilitator
CALL TO ORDER
Ms. Perez, Chair, called the meeting to order at 10:14 a.m. and declared the Board
convened to consider matters pertaining to Houston Community College as listed on the
duly posted Meeting Notice.
GOOD TRUSTEESHIP
Dr. Jeff Hockaday provided a presentation on Good Trusteeship that included:
(1) Ten Truisms of Trusteeship and
(2) Nine Commandments for Trustees
STRATEGIC PLAN 2012-2015
Motion – Mr. Robinson moved and Ms. Mullins seconded.
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Dr. Spangler provided an overview of the strategic plan.
Mr. Robinson suggested moving action 1.5 to 1.1. He recommended moving the item
that is currently 1.1 down and include language relating to enhancing dual credit. He
also recommended making completion one of the critical indicator major initiatives. He
also recommended that the benchmarks included in the document serve as the
measurement for progress reports to the Board.
Dr. Spangler apprised that the critical indicators would include measurement and
possibly tie it into the biennium so that it is on target with the funding cycle.
Ms. Mullins noted that the indicator measures should be timed with the academic year.
She stated that degrees, certificates and transfers should measure the completion. She
noted that the job link may be more difficult and should not be linked to the budget year.
Dr. Spangler apprised that there are multiple ways to measure and informed that
specific training should be included. Ms. Mullins agreed that specific training should be
included in the measure.
Mr. Robinson noted that there should be some conversation with administration
regarding the progress with persistence so that there is an internal notation of the
status.
Mr. Austin recommended that the preference of the indicators should include what is the
definition of success and embed it in the document. He noted that there must be
instruction as to the definition of the critical indicators.
Mr. Schechter associated with Mr. Austin that the definition of success should be
included in the document. He noted that there was a breakdown regarding the
percentage of students receiving degrees, workforce certificates, and transfers to fouryear institutions. He informed that he understands the Chancellor’s concern regarding
the year-to-year evaluation. He associated with Mr. Robinson that there could be an
internal review annually but the actual evaluation should be held in the third year at the
end of the plan.
Mr. Austin mentioned that the reviews could be in the form of reports to the Academic
Affairs Committee. Mr. Robinson noted that his notion is that administration is reviewing
the numbers to determine when a report will be presented to the Board and apprised
that administration should be reviewing the benchmarks regularly.
Mr. Austin noted that a quarterly review would assist the Board regarding the
responsibility of educating and benefiting the students. He informed that the key is to
view efficiency in all areas.
Dr. Spangler apprised that development of an annual search agenda would be an effort
for the Board to review some of the indicators. She noted that this would allow the
Board to provide input on the indicators.
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Mr. Austin noted that the Chancellor recommended to the Board last year that the
Institutional Research Office should be enhanced, which is one form of improving the
measurements.
Ms. Mullins informed that there needs to be a depository of facts.
Mr. Schechter apprised that if there is an agreement regarding the measurement of
success, it would assist with the efforts.
Mr. Schechter noted that improved outreach to high schools was one of his concerns.
He apprised that emphasis should be placed on the high schools so that the services
are at least being offered.
Mr. Robinson informed that the progression as it is currently presented is sufficient and
requested that the two recommendations regarding dual credit should be added.
Mrs. Sane referenced action 1.3 regarding the revamping of developmental education to
ensure greater success and commented that the critical areas are math, reading and
writing. She noted that the language should be changed to focus on moving students to
completion. She inquired if there needs to be more emphasis on math, reading, and
writing; the current wording gives the impression that it is lumped together.
Mr. Schechter recommended adding reading, writing and math in the first bullet under
action 1.3.
Ms. Mullins recommended changing 1.5 to read, “increase student completion through
advancing educational opportunities” to provide more clarity.
Mr. Schechter recommended adding efforts to create alternatives for pathway. He
suggested developing a process to identify a way to place developmental students in a
pathway to earn a two-year degree or leave HCC better than when they entered. He
noted that the request is possibly already included in Action 2.3 and requested minor
tweaking of the wording.
Mr. Austin recommended reviewing the Kentucky Charting a Pathway program and
Oregon Career Path initiative as part of 2.3.
Vote – The motion passed 6-0 with the noted modifications.
DETERMINE METHOD OF FUNDING FOR PHASE I OF LONG-RANGE FACILITIES
AND FINANCE PLAN
Motion – Mrs. Sane moved and Ms. Mullins seconded.
Dr. Tyler noted that there was a legal question proposed by the Board regarding the
balance of the Capital Improvement Plan (CIP). He asked Mr. Tom Sage, Bond
Counsel, Andrews and Kurth to address the concern regarding the CIP.
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Mr. Sage apprised that the short answer to the inquiry is that the CIP is complete. He
informed that one project, San Jacinto campus had an environmental issue as well as a
project budgetary; however, the funding has been identified to complete the project. He
noted that it would be accurate to inform the public that the CIP has been completed.
Mr. Robinson inquired if the college is legally allowed to use commercial paper. Mr.
Sage apprised that the college can utilize multiple transactions to accomplish the
financing and accessing the capital markets.
Mr. Austin inquired of the various commercial papers available and if identifiable
revenues are necessary. Mr. Sage noted that identifiable revenues are not necessary
and that the plan is to utilize bonds for new facilities and transfer revenue bonds to the
General Obligation (GO) bonds. He noted that no action would take place until after a
bond measure has been passed. Dr. Tyler noted that once a bond has been
successfully passed and in place, there will need to be the flexibility of other financing
options. He apprised that discussion will need to be held between the financial advisors
and bond counsel regarding the options.
(Mr. Oliver joined the meeting at 11:46 a.m.)
Mr. Sage noted that the three purposes regarding the possible bond include:
(1) Funding of new facilities,
(2) Refinancing existing debt, and
(3) Maintenance of facilities
Mr. Sage inquired if it is the Board’s desire to have multiple propositions on the ballot or
one proposition and noted currently, he is working with the Attorney General’s office
regarding the number of propositions.
Mr. Robinson apprised that if the Board decides to go for a bond, he would like to see
one language.
Mr. Gene Locke noted that the most conservative route is to go with three languages;
however, the current effort is to get the Attorney General to approve one language; if it
is not possible to get one language, then three languages will have to be used.
Mr. Oliver inquired if the Board is still brainstorming regarding the amount. Ms. Perez
apprised that the discussion regarding the amount has not taken place.
Mr. Oliver requested that the amount determined should be sufficient to cover the
needs.
Mr. Schechter inquired if the refinancing is passed for $130 million and the building
package does not pass, would free up the capacity to utilize the $130 as a backup. Mr.
Sage apprised that it would if there is passage of the refinancing piece.
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Mr. Robinson inquired if there is capacity to build without bond. Dr. Tyler informed that
the Board has the ability to issue maintenance tax notes; however, new buildings and
land purchases are not permitted.
Mr. Locke noted that the decision is upon the Board and reviewed the timeline. He
informed that the election must be called before August 20, 2012. He apprised that the
decision is not a straightforward answer but there is sufficient time to hold discussions
and make a decision. Mr. Locke provided an overview of concerns that the Board
should consider as follows.
•
•
•
Decisions to be Made
Practical Realities
Policy Matters for Board to Consider
Mr. Locke informed that there are advantages for approving ethics policies prior to
determining whether to call a bond election. He noted that the members of the Greater
Houston Partnership are concerned with adequate controls being in place by the
college.
Mr. Locke reviewed the timeline and recommended that the Board hold a Special
Meeting between August 9th and August 17, 2012 to call the election.
Ms. Perez recessed the meeting at 12:24 p.m. and reconvened at 12:37 p.m.
(Trustees Present: Austin, Mullins, Oliver, Perez, Robinson, Sane and Schechter)
Ms. Perez polled the Board regarding presenting a bond measure in November 2012
versus May 2013.
Mr. Oliver stated that the position is possible at the moment and should press forward.
He noted that the Board should ask for the amount that is reasonable and prevent the
need of going back to the voters continuously.
Ms. Perez apprised that the Board should keep in mind that what is asked for would not
be received for another one to two years. Mr. Locke informed that as soon as the bond
is authorized and Attorney General approves, the college can proceed with utilizing the
funds; however, the funds would not be expended all at once.
Mr. Austin informed that there was not proper planning regarding the previous bond
request. He noted that the public must be kept informed. He inquired if the college is
telling the story its success.
Dr. Tyler informed that there is approximately $750,000 for education of the public. He
noted that Mr. Locke has agreed to assist with formatting information to educate the
public.
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Mr. Schechter inquired if it is the consensus of the Board that the college needs to go
out for a bond. The consensus of the Board conferred is that a bond is necessary. Ms.
Mullins noted that her concern is the timing and building all at once.
Mr. Schechter inquired if part of the deal should be refinancing of debt. He informed that
the refinancing of the $135 million will save the taxpayers money. Dr. Tyler apprised
that there is another major issue in that Wall Street has noted that there must be
confidence that the voters support the college.
Mr. Robinson informed that the phrase this measure will save the voters money should
not be used if not going to reduce the tax rate.
Ms. Mullins inquired the need for voters’ approval to refinance debt. Mr. Sage informed
that the desire is to refinance with GO bonds, which require the voters’ approval. Mr.
Clarence Grier informed that the Board could increase the maintenance tax notes to
raise enough funds to repay the debt; however, this is an involuntary tax versus taking it
to the voters.
Mr. Sage informed that revenue bonds could not be paid from taxes; however, the
difference could be made up with general funds.
Mrs. Sane noted that refinancing without a bond would increase operating cost and
inquired if there would be a savings. Mr. Grier informed that there would be a savings of
$5 to $6 million; taxes would have to be increased to cover capacity.
Mr. Oliver informed that a message needs to be developed to inform the public of the
benefit received such as transforming lives. He inquired about informing the public of
the plans and what support can be anticipated.
Mr. Robinson noted that he did not receive information that was disseminated over 18
months ago informing the public of the status of the Capital Improvement Plan (CIP). He
inquired of the enrollment projection for the next five years. He noted that the sell should
be on what is already being done. He informed that he is not certain if should go for
bond this year or next; however, if the consensus is to go out this year, he would like to
see a simple campaign that addresses the needs of the public that talks to neighbors
and to educators.
(Trustee Perez stepped out at 1:11 p.m.)
Mr. Robinson apprised that a bond should be advocated for supporters of the college.
(Trustee Perez returned at 1:13 p.m.)
Mr. Austin noted that debt refinancing and facilities maintenance need to be considered
and inquired as to how the $750 was determined.
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Mrs. Sane informed the conversation needs to focus on the decision if a bond is needed
and how much to ask for.
Dr. Spangler apprised that the book includes Phase I and the entire plan has been
distributed for review. Mr. Robinson noted that any excess funds from a bond could
begin funding for Phase II.
(Mr. Robinson stepped out at 1:33 p.m.)
Mr. Oliver inquired if the buildings will be technological able to grow. Dr. Tyler informed
that there is ability to upgrade and maintain for the next five years.
(Mr. Robinson returned at 1:34 p.m.)
Mr. Schechter recommended taking the $60 million for facilities maintenance and using
maintenance tax notes.
Ms. Perez informed that maintenance tax notes will increase taxes, and that at some
point entrepreneurial activities will be necessary.
Ms. Mullins noted she favors three propositions, as it will come across as more
transparent.
Mr. Robinson informed that Coleman has the highest turn away rate in the system. He
noted that Coleman has the potential to subsidize by tripling enrollment and utilizing
differential tuition.
Mr. Schechter apprised that Coleman is an important component and that there is an
unmet need in Houston for nurses. He requested the administration to develop a plan
for Coleman and bring it to the Board for consideration to include in a bond election.
Mr. Schechter provided the following summary: $425 million dollars for new facilities
and the $60 million for facilities maintenance and $130 million for refinancing of debt will
be pulled and financed with maintenance tax notes over three years. Mr. Schechter
requested a schedule for the levy of $190 million over three-four years.
Mrs. Sane noted that the master planner should prioritize needs to add up to $425
million.
(Mr. Oliver stepped out at 2:01 p.m. and returned at 2:03 p.m.)
Motion – Mr. Schechter moved and Mr. Robinson seconded to approve the following:
(1) sending to the voters, at a date to be determined, a bond proposal of $425 million
consisting of $295 for new facilities as noted in the Phase I analysis to include an
additional $60 million for Coleman College increasing the total for Coleman to $120
million and $70 million for additional projects to be selected from the global list by the
Master Planner in order of need and priority, in consultation with the presidents, and (2)
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debt retirement issuance of $130 million and facilities maintenance of $60 million over a
three year period to be completed through the budget. The motion passed with vote of
6-1 with Ms. Mullins opposing.
Ms. Perez polled the Board as to whether the bond date should be for November 2012
or May 2013. Trustees Austin, Oliver, Perez, Sane and Schechter prefer November
2012 and Trustee Mullins selected May 2013. Trustee Robinson informed he would like
to see more information before determining date.
Mr. Schechter inquired of what action(s) the Board needs to take to allow the Political
Action Committee (PAC) to begin fundraising. Mr. Locke informed that the Board could
pass a non-binding resolution indicating the Board’s intent or not take a vote with a
consensus of going forward with a bond. Mr. Locke noted the best plan is for the Board
to take action.
The meeting recessed at 2:13 p.m. and reconvened at 2:19 p.m.
Ms. Mullins inquired as to when the Board would vote on the maintenance and
operations items. Mr. Schechter apprised that it would not be until late 2012 or early
2013.
Motion - Mr. Schechter moved and Mr. Austin seconded that the Board expresses intent
to call an election for November 2012 for authorization of $425 million in bonding
authority for projects approved in Phase I of the Long-range Facilities and Finance Plan
and additional projects as discussed, subject to further Board review and input from the
Master Planner and Legal Counsel. The motion passed with vote of 6-1 with Ms. Mullins
opposing.
CONSIDERATION OF AND POSSIBLE ACTION ON HOUSTON COMMUNITY
COLLEGE JOINING AN AMICUS BRIEF IN FISHER V. UNIVERSITY OF TEXAS AT
AUSTIN IN THE UNITED STATES SUPREME COURT
Motion – Mr. Oliver moved and Mr. Austin seconded.
Mr. Locke provided and overview of the landmark case and informed that Andrews
Kurth will prepare the brief at no cost.
(Ms. Mullins stepped out at 2:33 p.m.)
Vote – The motion passed with a vote of 6-0.
Ms. Perez recessed the meeting at 2:34 p.m. and reconvened at 2:45 p.m.
(Trustees Present: Austin, Mullins, Oliver, Perez, Robinson, Sane and Schechter)
BOARD SELF-ASSESSMENT
Motion – Mr. Oliver motioned and Ms. Mullins seconded.
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Special Meeting – June 22, 2012 - Page 9
Mr. Hockaday provided the Board with the Self-Assessment form for completion and
informed that he will provide an evaluation of the assessments.
The Board completed the self-assessment form.
CHANCELLOR’S OBJECTIVES 2012-2013
Motion – Mr. Austin moved and Mr. Oliver seconded.
Mr. Hollingsworth informed that the Chancellor would provide an overview of the
objectives approved for 2011-2012. He noted that the 2012-2013 objectives would be
presented and discussed after the evaluation period.
Mr. Oliver inquired why the goals are covering 2008-2013. Dr. Spangler informed that
when Mr. Davila was the Board Chair, he recommended that the goals cover a longer
period of time because accomplishments are not necessarily completed in one year.
She apprised that the information provided covers the accomplishments over the time.
Mr. Oliver apprised that previous evaluations should be available for review to see
progress or regression.
Dr. Spangler provided an overview of her objectives and the methodology used to
complete the document.
Mr. Hollingsworth provided the Chancellor’s goals for 2011 prepared March 21, 2011.
Mr. Robinson inquired of crime statistics. Dr. Spangler will provide report to the Board.
ADJOURNED TO CLOSED SESSION
Ms. Perez adjourned the meeting to Executive Session at 3:30 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. Ms. Perez 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.
Ms. Perez reconvened the meeting in Open Session at 5:51 p.m. and entertained
motions on pending matters.
(Present: Trustees Austin, Oliver, Perez, Mullins, Robinson, Sane and Schechter)
CHANCELLOR’S OBJECTIVES 2012-2013
Motion – Mr. Schechter moved to adopt the year one strategic plan as the Chancellor’s
goals for 2012-2013 including the first bullet point under Years 2 and 3, and those
actions within the legality and authority of educating the public regarding the proposed
bond measure.
(Mr. Schechter and Mr. Oliver stepped out at 5:55 p.m.)
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Dr. Spangler apprised that she confers with the Board’s directives; however, she noted
that in addition there is the need to complete the reorganization of the district office.
Mr. Austin noted that there may be other things that the Chancellor would be expected
to complete without it being a part of the goal of the Chancellor.
(Mr. Schechter and Mr. Oliver returned at 5:57 p.m.)
Dr. Spangler requested clarification regarding the period for the accomplishment of the
goals.
Vote – The motion passed with a vote of 7-0.
CONSIDER BUDGET RECOMMENDATIONS FOR FISCAL YEAR 2012-2013
Motion – Mr. Oliver moved and Mr. Austin seconded.
Mr. Oliver noted that the Budget Committee will hold a budget workshop in July 2012.
Mr. Schechter informed that there were some issues raised by Mr. Locke such as a
program manager and inquired if there will be a discussion on those issues. Ms. Perez
apprised that these items will be discussed at a Special Meeting scheduled for July
2012.
Mr. Robinson noted that the construction account should be audited to remove those
issues off the table which is why was attempting to get the construction audit included
as a part of the internal audit plan.
Dr. Tyler provided a budget overview of the operating budget that was presented at the
Budget Workshop held on June 14, 2012. He provided a summary of the following:
Board and Administration projected issues for 2012-2014
• Momentum Point /Performance Based Funding
• Program Growth and Development
• STEM/QEP
Dr. Tyler noted that the STEM/QEP was added since the budget recommendations
presented June 14, 2012. He noted the request would be for an increase of $500,000 to
imbed knowledge and skill development into the STEM piece.
(Mr. Oliver stepped out at 6:12 p.m.)
(Mr. Oliver returned at 6:14 p.m.)
(Ms. Mullins left at 6:14 p.m.)
Dr. Tyler presented the following recommendations, which have been added:
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Special Meeting – June 22, 2012 - Page 11
Additional Recommendations to FY 2012-2013 Budget
• New Advisors - $800,000
• Salary Increase – All Full-time Faculty & Staff (2%)
• Increase Adjunct Faculty Rate – Masters & PhD (3%, $50)
• Increase Waivers (In-district Students):
• Developmental Education for Level 1 & 2 - $450,000
• Dual Credit and Early College - $600,000
• Initiation of additional Dual Credit for North Forest
• New class of Seniors for Alief
• Additional sections for HISD, Missouri City, Stafford
• Create a Trust Fund to Endow Dual Credit
• 10 year development
• Recommend 1st installment of $5M at 9/1/2012 (fund balance)
• Board will determine future installments annually during the budget
process
• Estimated Fund Balance Year-end (08/31/2012) $48.1M
• Required Fund Balance $32.6M
Mr. Schechter asked if the staff and faculty pay are not increased would HCC be
competitive with our neighbors. Dr. Tyler responded that HCC currently is not
competitive.
Mr. Oliver inquired how many student advisors could be added with the additional
$800,000. Dr. Tyler estimated 12 new advisors, depending on their salary ranges.
Mr. Robinson noted that because of the counseling change there should be consistent
improvement regarding persistent and completion rates.
Dr. Tyler informed that he and Dr. Pino will provide a report that documents persistent
and retention. He noted that the number of certificates and degrees awarded has
increased significantly.
Trustee Austin inquired, what has been done in respect to technology for assessment
and faster evaluation?
Dr. Tyler shared that the college requested a new system that allows case
management, track students, move students to counselor/advisor. The system is in the
process of being secured. Dr. Tyler noted that the counseling changes would be
monitored.
(Trustee Sane stepped out at 6:33 p.m.)
Dr. Tyler informed that the recommendation is for the Board to make a decision to allow
Accounting and Human Resources to upload increase in salary, hire new Advisors and
increased Adjunct Faculty rate into the budget.
(Trustee Sane returned at 6:43 p.m.)
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(Trustee Sane stepped out at 6:44 p.m.)
(Trustee Sane returned at 6:47 p.m.)
Trustee Robinson recommended administration investigate enterprise opportunities.
Motion – Mr. Oliver moved to approve and Ms. Perez the first three items (1) new
advisors, (2) 2% salary increase for all faculty and staff and (3) 3% increase for Adjunct
Faculty rate for Masters & PhD The motion passed with a vote of 6-0.
Mr. Oliver requested Dr. Tyler to discuss why ad volurem taxes are lower at the Special
Meeting in July.
ADJOURNMENT
With no further business coming before the Board, the meeting adjourned at 6:51 p.m.
Minutes recorded, transcribed & submitted by:
Sharon Wright, Manager, Board Services
Minutes Approved as Submitted: