September Minutes
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HOUSTON COMMUNITY COLLEGE SYSTEM
REGULAR MEETING OF
THE BOARD OF TRUSTEES
September 23, 1999
Minutes
The Board of Trustees of the Houston Community College System held a Regular Meeting
on September 23, 1999 at the HCCS Heinen Theatre, 3517 Austin @ Holman, Houston,
Texas.
BOARD MEMBERS PRESENT
Christopher W. Oliver, Chairman
James R. Murphy, Secretary
Bruce A. Austin
John Fonteno
Herlinda Garcia (arrived 4:50 p.m.)
Carol H. Smith
ADMINISTRATION
Ruth Burgos-Sasscer, Chancellor
Sylvia Ramos, President, HCC-Southeast
Sue Cox, President, HCC-Southwest
Jack E. Daniels, President, HCC-Central
Margaret Forde, President, HCC-Northeast
Zachary Hodges, President, HCC-Northwest
Patricia Fairchild, Vice Chancellor, Workforce Development
Charles Cook, Vice Chancellor, Educational Development
Patricia Williamson, Vice Chancellor, Institutional Development
Joseph Fenninger, Chief Financial Officer
Winston Dahse, Executive Director, Materials Management
OTHERS PRESENT
Arturo Michel, Bracewell and Patterson
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Other administrators, staff, representatives of the news media and interested citizens
CALL TO ORDER
Mr. Oliver called the Meeting to order at 4:26 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. Murphy led the audience in the Pledge of Allegiance and offered the prayer.
ANNOUNCEMENTS
There were no announcements.
MINUTES APPROVED
Motion No. 958
Mr. Murphy moved to approve the Minutes from the Special Meeting of August 3, 1999,
the Special Meeting of August 18, 1999, the Special Meeting of August 24, 1999, the
Regular Meeting of August 26, 1999, the Regular Meeting of July 22, 1999, and the
Special Retreat Meeting of July 16-17, 1999. Ms. Smith seconded the motion. Mr. Austin
requested tabling the Minutes from the Special Meeting of August 24, 1999 and returning
for revisions. After discussion, motion carried 5-0 (Mrs. Garcia had not yet arrived).
Mr. Austin recommended delineating the actual questions and comments he made of the
consultant at the Special Meeting of August 24, 1999, which relate to the redistricting
concepts of "fracturing" and "packing".
Mr. Murphy moved to approve the Minutes from the Regular Meeting of June 24, 1999.
Ms. Smith seconded the motion. Motion carried 5-0 (Mrs. Garcia had not yet arrived).
AWARDS AND PRESENTATIONS
●
Faculty Recognition Award- Dr. Burgos commended James C. Neal, a Manufacturing
Processing/Machine Operations Technology Department instructor, at Central
College, for his long record of distinguished service at HCCS. Mr. Neal began with
HISD's Adult Education in 1966, as the evening supervisor of industrial education
and all industrial education instructors. When HCCS was created, he continued his
work at HCCS. In 1988, Mr. Neal taught reading for students with limited English
proficiency and assisted these students with selected vocational programs as an
extension of their language training. Mr. Neal became a full-time instructor in 1990
in the Manufacturing Processing Technology department, teaching math, blueprint
reading and machine shop practices. He also served as department head from 1991
to 1994 and has done important committee work for the institution. He also has
numerous memberships in professional organizations, including the American
Society of Training and Development and the Society of Manufacturing Engineers.
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●
Introduction of Special Guests -- Mr. Oliver recognized special guests in the
audience from the Greater Houston Partnership. He also introduced Mrs. Enetta
Birney, Board of Regents, University of Houston; representatives from the Midtown
Coalition; and, representatives from the Center for Healing of Racism.
HEARING OF CITIZENS
Mr. Oliver gave preface to the Hearing of Citizens and asked if any of the duly registered
speakers were present. Mr. Arturo Michel, HCCS Counsel, cautioned the Board against
responding to statements by the speakers at this meeting, a recommendation he said
was especially important due to changes in the Open Meetings Act, effective September
1, 1999. Mr. Michel noted that issues raised during the Hearing of Citizens could be
placed on a future agenda for discussion, but should not be discussed without special
notice.
a. James Partsch-Galvan. a citizen, addressed the Board concerning its policy
regarding signing up to appear before the Board. Mr. Galvan recommended
amending the policy to agree with the policies of the Harris County Commissioner's
Court and the City of Houston, where you can call in and request to be put on the
speaker's list, thus eliminating the requirement to sign-up in person or fax a
citizen's hearing form into the Board Services Office.
b. (REPRESENTATIVE NORIEGA'S PRESENTATION OCCURRED AFTER THE APPROVAL
OF THE CONSENT AGENDA AND THE SET-ASIDE ITEMS B8 AND B9)
Rick Noriega, State Representative, addressed the Board to discuss resident tuition
on behalf of Mr. Rosendo Ticas. Representative Noriega said this issue also involves
a situation that needs clarification for many other residents here, who originally
resided in other countries. Mr. Ticas, who came to America from El Salvador a
number of years ago, petitioned for legal permanent status in March 1997 under
INS rules. The Representative noted Mr. Ticas' accomplishments since arriving in
the United States. The INS is behind schedule and currently working on January
1997 applications for legal permanent status. Representative Noriega stated that
Mr. Ticas wants to attend HCCS' aviation school but because of his status is
required to pay out-of-state tuition, which he cannot afford. Rep. Noriega asked the
Board to consider waiving its policy for Mr. Ticas.
Mrs. Garcia expressed her appreciation to Representative Noriega for bringing this topic
before the Board to be addressed. She stated this issue represents a challenge for the
Board to address and that she has already discussed the matter with Rep. Noriega. Mrs.
Garcia stated the Chancellor had already contacted the trustees concerning Mr. Ticas,
and asked Mr. Oliver if this issue had been dealt with in terms of the Coordinating Board.
The Board Chair responded by noting that in accordance to the advice of counsel
stemming from changes in the Open Meetings Law as of September 1999, the Board is
restricted from conversation with citizens appearing before the Board. Mr. Michel stated
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that Mr. Ticas' circumstances are complex because they involve state and federal law and
INS regulations. He added that the HCCS administration, in working towards a resolution,
is drawing from other sources that have examined this issue, such as Dallas Community
College, to see how they are handling the matter.
APPROVAL OF CONSENT AGENDA
Motion No. 959- Mr. Austin moved approval of the consent agenda, with the exception of
items B8, B9, D11, D12, D15, which were set aside for further discussion. Ms. Smith
seconded the motion. Motion carried (5-0) (Mrs. Garcia had not yet arrived). The
following items were then approved:
I. Instructional Programs
Approved Health Careers Clinical Affiliation Agreement;
● Approved Ratification of HCCS and the Houston Academy of Medicine-Texas
Medical Center Library Affiliation Agreement;
II. Purchasing of Materials and Services
● Approved Payment to Bracewell and Patterson for Professional Services;
● Approved Payment to Feldman & Rogers for Professional Services;
● Approved Payment to Vinson & Elkins for Professional Services;
● Approved Payment to Coastal Securities for Professional Services;
● Approved Purchase of Training Books and Materials for Independent Electrical
Contractors Apprenticeship Program;
III. Fiscal Matters
● Approved Investment Report for the Month of September 1999;
IV. Other
● Approved Ratification for Acceptance of Gifts and Donations Received to Date;
●
APPROVAL OF CONSENT AGENDA ITEMS
NO. B8 APPROVE HOUSTON AEROS PROMOTIONAL PACKAGE
NO. B9 APPROVE RE-APPOINTMENT OF FIRMS OF BOONE & DELEON AND FREED
ADVERTISING FOR MEDIA SERVICES
Motion No. 960 - Mr. Austin moved to combine approval of consent agenda items No. 8 &
9. Mr. Murphy seconded the motion. After discussion, motion carried 6-0.
Mr. Austin asked to see the current Public Relations plan before we proceed further in
implementing the plan. He noted Board members' concern about the relationship
between the objectives of the Public Relations Plan and the specific tactics and strategies
outlined to accomplish the goals of the plan. Mr. Tom Kennedy, Executive Director of
Public Information, discussed some Aeros-HCCS partnerships. He noted that the Book
Cover Program distributed book covers with the Aeros' and HCCS' logos displayed to
100,000 elementary, junior and senior high school students. In addition, the Summer
Sticks Street Hockey Program held a summer computer camp at Palm Center. This
program trained approximately 120 children, ages 6-16, in basic computer skills and
culminated with a Proclamation Ceremony at the Mayor's Office, with a state-of-the-art
NEC laptop computer presented to the outstanding summer camp participant.
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Mr. Kennedy explained that the Boone & DeLeon and Freed advertising contracts went
out for bids and were approved in October 1998 and were renewable. These media
buying contracts stipulate the purchase, at savings of 15% to 20%, of radio and TV ads
through media. The Administration, Mr. Kennedy, observed, returned to the Board a
month ago and requested to raise the ceiling to give the five colleges the opportunity to
experience, whenever each college plans to target specific areas, the same savings the
system does. Mr. Kennedy stated there had been success with Boone & DeLeon and
Freed during the first year of operation. For instance, HCCS had a media-buy program for
Spring 1999 that resulted in an increase of Hispanic enrollment of 482 students. This
group was specifically targeted with a lot of advertising on Channels 45, 48, and a wide
array of Hispanic stations, both television and radio, using English and Spanish
commercials.
Mr. Austin stated these activities were an excellent example of how we can develop a
correlation between media stimuli and programs, resulting in an increase of contact
hours. He said that this pattern would probably be a boon to our presidents because it
would indicate to them what courses are more effective in their respective communities.
Dr. Burgos referred to the 3-year Marketing Plan recently distributed to Board Members,
and specifically to the enrollment report, as just one approach in response to the
marketing plan. Mr. Austin asked to know what objectives the marketing plan seeks to
accomplish and how these strategies will get the desired results. In response, Dr. Burgos
pointed out and discussed Objective 3 and also referred to five other objectives that the
marketing plan addresses.
APPROVAL OF CONSENT AGENDA ITEM
NO. C11 APPROVE EFFECTIVE TAX RATE AND CERTIFICATION OF 1999
COLLECTION RATE
NO. C12 APPROVE 1999 AD VALOREM TAX RATE
Motion No. 961 Mr. Austin moved to combine approval of consent agenda items No. 11 &
12. Ms. Smith seconded the motion. Mr. Murphy presented an amended motion for the
HCCS 1999 Budget. Mr. Fonteno seconded the motion. After discussion, motion carried 60.
Mr. Joe Fenninger, Chief Financial Officer, first addressed item No. 11, which he described
as a mechanical exercise in calculating the effective tax rate. It sets the platform for
going into calculation for the actual tax rate for the year 1999 and establishes our
baseline.
(AT THIS POINT THE BOARD CHAIR REQUESTED TO INTERRUPT MR. FENNINGER'S
PRESENTATION AND HEAR SENATOR RICK NORIEGA IN THE HEARING OF CITIZENS
PHASE. THIS REQUEST WAS ACCEPTED BY THE BOARD).
Mr. Fenninger distributed handouts and reviewed the 3-4 month process that involved a
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college-wide exercise to plan and coordinate the budget. He noted that the first
consolidation of the budget resulted in a projected expense budget of $163 million, which
was deemed insupportable in light of identified incoming revenues of only $140 million.
There ensued budget review meetings with the budget authorities, both in the colleges
and at the System level. As a result of these meetings, the budget was reduced to $157
million. Peer review of budgets occurred next, the Executive Team met, and the second
revised budget was formulated, which was presented on August 18th at the Budget
Review Meeting with the Board of Trustees and was then approved at the August 26th
Regular Board Meeting. Despite these efforts, it was recognized that the operating
revenue coming in during Fiscal Year 2000 would amount to approximately $141 million,
leaving a budget deficit of $10 million. Due to a projected surplus of approximately $9
million from FY1999 that was requested to be a carry-over, there only remained an
expected shortfall of $800,000. However, the Administration had emphasized that this
surplus should be viewed as a one-time event coming from the fund balance. The budget
shortfall, however, was expected to be recurring unless new revenue sources were
forthcoming.
Mr. Fenninger next discussed several events that posed additional budget problems. First,
the Truth-in-Taxation law dictates that if we increase our taxes by even $1 from 1999 to
2000, there must be public notice and public hearings. If HCCS were to collect the same
dollar amount on the year 2000 taxes as it had in 1999, we would fail to reach the
expected revenue amount cited in the budget, resulting in a loss of $1.4 million. The
other matter affecting the budget was that the projected surplus of $9.1 million had been
predicated upon a $2 million revenue shortfall for August. However, the shortfall turned
out to be $4 million, and this development cut into the $9.1 million projected surplus,
leaving a surplus of $7.1 million to carry over. These two factors, if not addressed, would
result in a cash shortfall of $4.3 million, instead of the anticipated $800,000. Mr.
Fenninger also observed that without new revenue measures, we're expecting in FY 2001
approximately a $13 million shortfall, an increase arising from another plant coming
online in 2001 and from projected increases in staff salaries.
Mrs. Garcia asked what the unexpected extra expenses might be attributed to. Mr.
Fenninger responded there had been more year-end spending than had been forecasted,
and he said he has the pertinent variance information, which he will supply the Board.
Next, in response to a request at the August 26th Board Meeting for cost-reductions and
expenditure-savings data, Mr. Fenninger presented the results of several days of staff
intensive collaboration. He said the most important point is that from April 1998 to
October 1999, a grand total of $11.5 million will have been removed from the budget,
that is taken out of the cash flow, to pay the debt service on the $73.5 million of series
1997 and series 1998 bonds. However, there has been no increase in revenue to offset
that loss of cash flow. As a result, we have had to determine other means to
accommodate that cutback. Mr. Fenninger discussed briefly a number of these costsavings measures, providing an estimate of the savings generated by each: the
cancellation of HISD leases ($2.2 million); an increase in average class size from 16.4 to
18.4 ($1.5 million); a two-year cessation in new full-time faculty hires ($2 million); a
standardization and bulk-purchase of furniture and computers ($3 million). Mr. Fenninger
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stated that future cost-reduction measures are being implemented, while the feasibility of
others is being examined. These involve such items as consolidation of service contracts;
distribution of pay statements by internet instead of through the mail; audit of the
telephone system; conversion of the IBM megalink network; accounting system changes;
implementation of improved building and maintenance systems; and proposals for further
increases in average class size. Mr. Fenninger said that roughly these measures should
create savings of about $3 million per year.
Mr. Fenninger said that HCCS still faces the specter of a budget deficit. He stated that the
administration would now present four alternate strategies to balance the budget. He
outlined these strategies, noting the particular advantages and disadvantages of each. Of
these, Mr. Fenninger identified the administration's recommended solution to the deficit,
which called for a tax rate increase of .02 cents and an increase in the tuition rate by $5
per semester credit hour. These steps would raise ad valorem tax revenue approximately
$10.6 million and raise tuition revenue about $2.3 million for the year 2000. The
advantages of this approach, he noted, are that it more equitably allocates the expense
between the taxpayer and the student, and would balance the budget into 2001 and
beyond.
Mr. Austin stated he had to rely on the Administration's veracity and representations
made to the Board. He stated the worst scenario is for the presidents to lack sufficient
resources to deliver quality educational resources to our students. If this occurred, we
would lose credibility with everyone. He continued, saying that we must work vigilantly
with our Public Relations department so that all the colleges raise enrollments
exponentially, thus achieving the required compensating balances.
Mr. Murphy introduced his revenue proposal for the HCCS 1999 Budget, offering the
Board an alternative approach to that of the Administration's. He said it is composed of
three parts, which try to solve the immediate 1999 problem with 1999 revenues:
increase tuition $5 per semester credit hour, which would produce $2.3 million in
revenue; adopt a tax rate of $.0.069833 per $100 in appraised valuethe maximum rate
that would not trigger the rollback provision and would generate $2.8 million in revenue;
and analyze, over a number of months, cost-savings opportunities to solve the 2000
budget. Mr. Murphy observed that his tax and tuition proposals together would general
$5.1 million, enough to cover the shortfall uncovered in the 1999 budget. Mr. Murphy
stated it is important for HCCS to take no more than what it needs and that the
institution should not tax people in 1999 for programs or deficits projected for 2000. He
said it is critical to protect upcoming votes in reference to the bond issue. Also, there are
the citizens and leaders involved in the annexation process who are watching HCCS
carefully to see what our fiscal policy is. We want them to know that we will be judicious
with their money. He noted that this proposal also gives us a long-term focus and some
time to go through the analysis of some of the proposals presented to the Board over the
last few days.
Mr. Austin stated that his main concern involves the amount of taxation we levy on the
HCCS taxpayers. In the future, there needs to be lot more deliberation about fiscal
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matters. We are giving the wrong message that we're moving into new jurisdictions and
yet do not have enough funds to satisfy the requirements of our existing spheres. Mr.
Oliver concurred with Mr. Austin and stated that both proposals presented are excellent.
Mr. Oliver said he was very much in favor of starting analysis now to prepare for 2000
and to try to reconcile going before the public with the amount we're requesting now and
then having to return with a general obligation bond proposal. Mr. Murphy referred to the
third part of his proposal, which recommends that the Board direct the Administration to
prepare an analysis of cost -savings opportunities for future years' budgets. He
suggested that the study scope be presented by the November Board meeting; a draft
report submitted by the March Board meeting; and Board action on the final report
occurring no later than May 2000.
Mr. Austin stated an examination of past expenditure history reflects an increase from
$127 million to $131 million to $151 million, with additional off-budget expenses of $2.1
million, $15.53 million, etc. This pattern, he continued, can put us in a precarious
situation. He questioned if the Administration's budget proposal was adequate if it aimed
to have us simply break even. Mr. Fenninger responded with two points. First, he
observed that if we settle on less than the $0.02-tax rate and $5-tuition increase, we will
be using the carryover surplus to fund the budget. Mr. Austin noted that the Board has in
the past put away funds for emergency purposes, simply because unfunded mandates
always arise. He added that he feels more secure when basing decisions on the fiscal
officer who actually has to work with the monies. Mr. Murphy stated that his proposal
would keep to the assumptions under which the budget was adopted last month, whereas
the Administration's proposal at this meeting presents some significant and material
changes. Currently, we are an additional $4.5 million in deficit, over and above the
$800,000. His proposal says let us carry forward every recommendation we had before to
address the shortfall, with a half-penny tax increase and a $5 tuition increase added. Mr.
Austin asked Mr. Fenninger if he believed Mr. Murphy's proposal will meet our deficit.
Mr. Fenninger said the bottom line question is do we want to have a balanced budget or
not. If the balanced budget is going to be based on the current operating revenue and be
adequate to cover our current operating expenses, then we need to ask for the $0.02 and
the $5. If, however, we apply the carryover surplus to help subsidize us for 1999, the
Murphy proposal should cover us for the coming fiscal year. Mr. Austin stated that in light
of possible unexpected occurrences, such as natural disasters, he recommended that we
follow the advice of our Chief Financial Officer.
Mrs. Garcia noted the inconsistencies in the information presented by the Administration
to the Board since dialogue began about the budget over a month ago. At the last
Finance Committee meeting, for instance, it was pointed out there would be deficit for FY
2000 of $800,000. In reference to Unrestricted Funds Budget presented last month, it
was stated by the Administration that revenue increases from state appropriations, ad
valorem taxes and annexation could not be realized in the short-term. The Administration
also stated that a recommendation for tuition and fee increases effective January 2000
would be forthcoming. Mrs. Garcia said that numbers are changed too quickly. Mrs.
Garcia asked how much in millions would be required in 2000 in order to balance the
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budget for 2001. Mr. Fenninger replied that approximately $13 million would be needed.
Mrs. Garcia reminded the Board of Mr. Henderson's concerns expressed at the August
Board Meeting about deficit budgets, and she agreed the Board needs to break this
disturbing trend. Mr. Henderson, she noted, had stressed that for a long time there has
been a need for a long-term financial plan that deals with capital needs, operating needs
and needs regarding general obligation bonds. She stated her agreement with Trustees
Austin and Murphy that it is imperative the Board be given a plan to meet deficits ahead
of time. She also stated that the Board should not have to initiate, but instead receive,
options emanating from the Administration. It appears there is a climate of doubt if Mr.
Murphy and Mr. Austin have to do the homework and present proposals to balance the
budget. There should be a lot of accountability from the Administration in presenting
information that will generate the necessary funds for next year, including data on such
topics as enrollment.
Mrs. Garcia recommended that the Board be given a report in November 1999 and March
2000 that will inform it on how the Administration plans to generate needed funds based
on enrollment and contact hours. Also, if we are vacating HISD, we need to be equitable
and fair in the process. We cannot allow one president to keep certain buildings open,
while requiring other presidents to close their facilities that generate continuing education
hours. We must be very careful that this Board gets the truth. We should not always go
for tax and tuition increases year after year. She stated that she is very disturbed and
that as we continue to open facilities, the Administration must see the facility through the
marketing plan and simultaneously start to generate enrollment through effective
preplanning. We cannot be looking at another deficit budget of $3-4 million next year.
Mr. Oliver stated his support of the Administration in its diligence in preparing the
budget. He then suggested proceeding with a vote on the motions before the Board. Mrs.
Garcia asked to continue dialogue on both proposals, and she inquired of Mr. Murphy if
there could be a combining of the two. Mr. Austin suggested caucusing two more minutes
on these issues; he also noted that he wished that the options and some of the other
information presented at this meeting had been available at the last Finance Committee
meeting. Mr. Murphy said his proposal is significantly different from Administration's and
he would not be supportive of theirs because it goes too far and puts us in jeopardy of a
rollback election, as well as hurting us in terms of our electoral processes.
Ms. Smith said the initial problem had been to cover the $800,000 shortfall. Mr. Murphy's
proposal comes up with about $5.1 million, based on an increase in cost to taxpayers and
students. Ms. Smith then referred to Page 5 of Administration's commitment to future
cost reductions of $3.3 million. She noted that adding these two figures together equals
$8.4 million. Mr. Austin said the $3.3 million savings will not be realized until 2001 and
thus would have no effect on the current deficit.
Mr. Murphy stated his proposal would generate $5.1 million in 1999 and about $6.4
million in 2000, reducing substantially the $13-million projected deficit. He added that
the "wiggle room" we had last month when we passed the budget is doubled under his
proposal. Mr. Murphy noted that he had conferred with Mr. Fenninger in writing his
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proposal and that Mr. Fenninger agrees with the accuracy of his figures though not with
his recommendation. Mr. Murphy said that he is more interested in as little taxation this
year as possible so as to preserve HCCS' options in the future, whereas our CFO is
striving to fix the whole problem at once. Mr. Austin said he believes that the Board has
not had ample time to deliberate to make a wise vote. He also feels the Chancellor needs
to make final decision as to what is needed to run the institution. Mr. Oliver noted that
because of the Harris County deadlines, a decision on this matter must be rendered at
this meeting. Dr. Burgos said the recommendation from the Administration came from a
joint staff caucus, which agreed this proposal would address current problems, including
the expenses of new facilities. Mrs. Garcia said she agrees with part of Administration's
proposal for the $3.3 million savings because this aspect sends a message to public that
we are meeting them halfway in addressing our revenue needs. Mrs. Garcia stressed the
need to be very prudent and to be careful not to send message to taxpayers that every
time we have a deficit we go to them for additional funds. Mrs. Garcia said that the 3100
Main building is an enigma, that she does not understand why, if this is such a tight year,
HCCS jumped into making that decision without giving the Board sufficient information to
plan ahead. Mrs. Garcia recommended that Board examine at the next Finance meeting
all the details that apply to the 3100 Main Building. Mr. Oliver said there is no need to
revisit the 3100 Main project because it has been approved and has no impact on these
budget considerations.
APPROVAL OF CONSENT AGENDA ITEM
NO. E15 APPROVE HCCS' PARTICIPATION IN THE CITY OF HOUSTON
REINVESTMENT ZONE
NO. TWO
Motion No. 962 --Mr. Austin moved approval of consent agenda item No. 15 contingent
upon opinion of counsel. Mr. Murphy seconded the motion. After discussion, motion
carried 6-0.
Mr. Austin expressed his total approval of HCCS involvement in economic development
activities in the mid-town area because of its relationship to Central College and the
increased enrollment there that will occur. He noted the importance of receiving the
opinion of counsel concerning this matter. Mr. Fenninger explained the Midtown
Redevelopment Authority is a physical location. He demonstrated how HCCS is the single
largest property owner in a region bounded by the Midtown Tax Increment Reinvestment
Zone No. 2, and we would be owner most likely to benefit from any reinvestment into the
zone, such as street lights, sidewalks, and road repair.
Mrs. Garcia asked Mr. Fenninger about the 3100 Main project, and he answered that
3100 Main is operating within the funds already permitted by Board and is proceeding on
schedule. He stated that 3100 Main has nothing to do with the operating budget and will
be a stand-alone project generating revenue from leased floors within the building. Mrs.
Garcia asked Mr. Fenninger to gather for the next Finance committee meeting all the
3100 Main information -- where we are right now; all that's gone into the purchasing of
that building; the asbestos-related work for the building. Mr. Austin suggested that any
requests by Board members not covered under the present topics should be submitted
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through provisions of the Open Records Act so the Board could return to topic of TIRZ.
The TIRZ area has an established tax base of $155 million, established in 1995. Upon
joining, HCCS would continue to receive taxes on the $155 million base, which translates
to $102,000 yearly. If the base goes beyond the $155 million, our revenue would
increase accordingly. Mr. Fenninger noted that one of the types of projected
improvements involves affordable housing to be built on the Central College campus,
along with a parking garage. A representative from Vinson & Elkins, Ms. Keeling, stated
that HCCS can structure its participation on any terms and conditions and that any
agreement to participate would be subject to an agreement between the City of Houston
and HCCS. Mr. Fenninger said that HCCS, as the largest property owner, would probably
be on the Midtown Board.
CHANCELLOR'S REPORT
●
●
Financial Activity -- Joe Fenninger, Chief Financial Officer, presented the financial
activity report for the period August 1, 1999 to August 31, 1999. He noted the
carryover surplus of $7.095 million, which has been projected last month to be
$9.166 million. He stated that going forward into the next year, we now have
information on a month-to-month basis for the second half of the year, for instance
in regards to the spending patterns by college on a line-by-line basis. As a result,
we will be in a much better position to forecast our spending needs as we progress.
Fall 99 Enrollment Report -- Dr. Burgos discussed a preliminary enrollment report
based on the 12th day of classes, when information is submitted to the
Coordinating Board. Fall 1999, as the 12th Day, shows a very slight increase. She
noted that It does not include flex terms and other opportunities for increases. She
also stated that since this is not a base year, the funding will be based on last
year's enrollment. She said that we are pursuing aggressive marketing strategies
to increase enrollment. She noted that the report also provides the full-time
equivalent numbers by facility to give some idea of the contact hours generated at
various locations. There is also a comparison with credit and noncredit hours and
unduplicated headcount by facility.
Mrs. Garcia asked about how many high school we still operate in. Dr. Burgos said
that in our credit courses, we have pulled out of all our HISD facilities. Mrs. Garcia
asked if there are any high schools where there are any courses, whether credit,
continuing education, ESL, or intensive English. Dr. Burgos responded that we do
have adult basic education courses in the Southwest and Northeast colleges. Mrs.
Garcia said she thought the Board had made a commitment to vacate high schools
entirely, and if we have not, we need to give that option to all the colleges. Mrs.
Garcia asked Mr. Oliver if there was a deadline by which HCCS had to move out of
all HISD facilities. If not, she requested to receive that information enabling her to
determine the cost of remaining in certain HISD facilities, how is HISD meeting our
needs, and if we are in any related negotiations.
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September Minutes
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Mr. Austin stated his concern on tuition and fees with regard to the state funding.
His understanding is that the state responds to us, which means that next year
HCCS must perform real well because the state will look at our student population
as a base for the next two years' funding. He noted that we may ask the state to
help with start-up costs for new facilities. We need to put ourselves in a goal
position to increase our state funding. This is also requiring an initiative on the part
of our Public Relations area to develop strategies in all the geographical regions to
increase the student populations. The Chancellor said we are addressing Mr.
Austin's concerns and this element is part of the Marketing Plan provided to the
Board tonight.
President's Initiative on Race--The President of the United States last year initiated
dialogue on campuses regarding race relations. This year he has particularly asked
colleges and universities around the country to engage in important activities. Dr.
Burgos reported that HCCS has done this, initiating a series of activities, where, for
instance, we will be showing quite a few films over several weeks and will be
having representatives from the Center for the Healing of Racism to lead
discussions after the films are shown. This will be an ongoing project for HCCS, the
activities beginning the week of October 4-8, 1999 nationally. This week the film
"Skin Deep" will be highlighted.
CHAIRMAN'S REPORT
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Mr. Oliver had no report for this month.
Mr. Oliver noted that there were no Ad Hoc Committee reports this month.
ADJOURNMENT TO CLOSED OR EXECUTIVE SESSION
Mr. Oliver adjourned the meeting to Executive Session at 6:40 p.m., notice having
previously been given, and reiterated by him in accordance with the Open Meetings Law.
He 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. Oliver
reconvened the meeting in Open session at 8:10 p.m. and entertained motions on
pending matters.
APPROVAL OF PERSONNEL AGENDA
Motion No. 963
Mrs. Garcia moved approval of the Personnel Agenda, with the exception of the nonrenewals of Mr. Carlos Aya and Mr. Wayne Sitton. Mrs. Smith seconded the motion.
Motion carried 6-0.
APPROVAL OF NON-RENEWAL OF MR. CARLOS AYA AND MR. WAYNE SITTON
SUBJECT TO REVIEW OF LEGAL COUNSEL
Motion No. 964
Mr. Murphy moved approval to accept the non-renewal of Mr. Carlos Aya and Mr. Wayne
Sitton, subject to legal counsel review. Ms. Smith seconded the motion. Motion carried 5file:///D|/system/boardserv.orig/meetings/1999minutes/sept99.html (12 of 13) [3/18/2008 1:56:08 PM]
September Minutes
1. Mrs. Garcia voted against.
APPROVAL OF SETTLEMENT OF LEGAL MATTERS, CAUSE #697869 and EEOC
CHARGE #330972510, DISCUSSED IN EXECUTIVE SESSION
Motion No. 965
Mr. Murphy moved approval of settlement of legal matters, Cause #697869 and EEOC
Charge #330972510, under the terms discussed in executive session. Ms. Smith
seconded the motion. Motion carried 6-0.
ESTABLISHMENT OF NEXT REGULAR MEETING
The next Regular Board Meeting will be held on Thursday, October 28, 1999, at 4:00 p.
m. It is scheduled to be held at the Administrative Center Boardroom, at 22 Waugh
Drive, Houston, Texas.
ADJOURNMENT
With no further business to come before the Board, Mr. Oliver adjourned the Meeting at
8:15 p.m.
Minutes Prepared By:
Carolynne Dudley
Administrative Assistant
Board Services
Reviewed, Finalized and Submitted By: Minutes Approved As Submitted:
__________________________________
James R. Murphy, Secretary
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